For the tiny little town of Loyalton, California, with a population of only 700, a failure of city council members to understand the difference between the calculation a regular everyday pension liability and a “termination liability” has left 4 residents at risk of losing their pensions from Calpers. According to the New York Times, the town of Loyalton decided to drop out of Calpers back in 2012 in order to save some money but what they got instead was a $1.6mm bill which was more than their annual budget.
For those who aren’t familiar with pension accounting, we can shed some light on the issue faced by Loyalton. There are two different ways to calculate the present value of pension liabilities. One methodology applies to “solvent”, fully-functioning pension funds (we call this the “Ponzi Methodology”) and the other applies to pensions that are being terminated (we call this one “Reality”).
Just another bloody coincidence, of course.
Rothschild the sole owner of a very important patent.
The disappearance of four members of a patent semiconductor traveling on Malaysia Airlines MH370 makes the famous billionaire Jacob Rothschild the sole owner of a very important patent.The mystery surrounding the Malaysian Airlines MH-370 is growing as each day passes with more mysterious silence shadowing the disappearance of the airline. More and more theories are beginning to emerge.
We have heard of black holes swallowing the airliner (likely the least intelligent thing ever said on TV), deranged pilots taking it over… But no media outlet has mentioned anything about who was on that plane.
Absolutely nothing! Well, for starters, the people who owned the patent to Freescale Semiconductor’s ARM microcontroller ‘KL-03′ which is a new improvised version of an older microcontroller KL-02 were on the MH-370 flight. Continue reading »
Must-see for my German speaking readers.
Oct 10, 2016
Given the still-subdued economic growth many experts are of the view that the presence of cash has constrained central banks from setting negative rates to stimulate the subdued economic activity. In a future economic or financial crisis, current low rates would restrict the effectiveness of monetary policy, so it is held.
The presence of cash, it is argued, prevents the central banks from lowering policy rates to a level, which is going to meaningfully revive economic activity. What prevents the dramatic lowering of rates is that this is going to severely hurt savers who keep their cash in various bank accounts and so this is seen as politically unacceptable.
The abolition of cash, it is held, is going to enhance the ability of the central banks to use negative rates (perhaps as low as minus 5 percent per year) and this would provide central banks with additional flexibility and tools to deal with a slowdown.
Will We Get More Economic Growth Without Cash? Continue reading »
As the powers-that-be play whack-a-mole with various systemic risk indicators, desperately tamping down contagion concerns, amid no progress in strengthening the world’s most systemically dangerous bank; we warned two weeks ago of yet another canary in the coalmine of Deutsche Bank’s demise (that no one was looking at). This week, that canary… died.
SEOUL, South Korea — Samsung Electronics is terminating production of its troubled Galaxy Note 7 smartphone, according to a person familiar with the decision, in a major and embarrassing about-face for the South Korean electronics giant.
In a statement filed with the country’s stock exchange late Tuesday, Samsung said it had made a “final decision” to stop production. That means the company will no longer produce or market the smartphone, said the person, who spoke on the condition of anonymity because Samsung did not publicly disclose further information about the decision.
Samsung has struggled with reports that the Note 7 could overheat and catch fire because of a manufacturing flaw. Last month, the company said it would recall 2.5 million of the phones, but in recent days, reports that the fixed version could also catch fire began to surface as well.
Less than three months after Turkey’s president Erdogan, in the aftermath of the mid-July “failed coup” visited Putin in Russia in his first and very symbolic foreign trip, Putin has returned the favor with a visit of his own to Turkey, where he promptly confirmed that economic relations between the two nations are on solid footing with the November 2015 downing of a Russian fighter jet over Turkey now largely forgotten, and where Turkey and Russia earlier today signed the strategic Turkish Stream gas pipeline agreement.
As noted previously, once completed the pipeline will carry Russian natural gas to Turkey under the Black Sea, and on to Greece and Europe. The project, with an estimated total cost of $13 billion, was announced in December 2014 during Putin’s visit to Turkey as an alternative to the canceled South Stream pipeline through Bulgaria, which the Bulgarian government killed due to European pressure. Continue reading »
The main reason the US government wants $14 billion in penalties from the German bank is that it is deep in debt. They’ve got a gigantic deficit – they are desperate for money. They’ll try to get it anywhere they can, Jim Rogers, financial commentator and investor, told RT.
Germany’s Deutsche Bank reportedly failed to reach an agreement with the US on settling a massive fine. The bank is facing a $14 billion fine penalty from the US Justice Department for mis-selling mortgage securities in the run-up to the 2008 financial crisis.
RT: Firstly just to make it clear why has the US imposed such an enormous penalty?
Jim Rogers: The main reason is that the US government is deep in debt. They’ve got a gigantic deficit – they are desperate for money. They’ll try to get it anywhere they can. I can’t imagine that Deutsche Bank should be liable for $14 billion, but I’m not involved. Continue reading »
All day the political class will talk down to the American public about how they have the drive to cause an economic turn around inside the U.S. and return prosperity. Wielding their statist solutions to every government created distortion in the economy, the rhetoric from Washington dogmatizes an ongoing “recovery” produced by those that call themselves leaders.
“Anyone claiming that America’s economy is in decline is peddling fiction,” President Obama said in his State of the Union address earlier this year. Continue reading »
H/t reader Squodgy:
“Exactly as explained in John Perkins’ “More Confessions of an Economic Hit,an”, Brazil has succumbed to US pressure/bribery, ensuring the challenge to BRICS by the Rothschilds is real and delaying the death of the Petrodollar.
Putin must respond very carefully if he is to skirt around the already well established Russian tentacles of the Rothschild Empire and achieve ties with China, India & South Africa (which is also under economic Rothschild based attacks).
It does seem BRICS ls under serious economic attack by the institutions, and unless they act soon, the Rothschilds will indeed enslave us all.”
Can Russia Learn From Brazil’s Fate?
Paul Craig Roberts and Michael Hudson
William Engdahl recently explained how Washington used the corrupt Brazilian elite, which answers to Washington, to remove the duly elected President of Brazil, Dilma Rousseff, for representing the Brazilian people rather than the interests of Washington. Unable to see through the propaganda of unproven charges, Brazilians acquiesced in the removal of their protector, thereby providing the world another example of the impotence of democracy. http://www.informationclearinghouse.info/article45561.htm
Everyone should read Engdahl’s article. He reports that part of the attack on Rousseff stemmed from Brazil’s economic problems deliberately created by US credit rating agencies as part of Washington’s attack to down grade Brazilian debt, which set off an attack on the Brazilian currency. Continue reading »
In what may not have been the most opportune time for the presidential candidate, the Atlantic City casino bearing his name – if little else – the Trump Taj Mahal, which Donald Trump opened 26 years ago calling it “the eighth wonder of the world”, officially closed today. To be sure, the now defunct structure had no trace of ownership to Trump, and instead was until yesterday owned by Trump’s friend and fellow billionaire Carl Icahn, who closed the casino on Monday morning, making it the fifth casualty of Atlantic City’s casino crisis. Nearly 3,000 workers lost their jobs, bringing the total jobs lost by Atlantic City casino closings to 11,000 since 2014.
The sprawling Boardwalk casino, with its soaring domes, minarets and towers built to mimic the famed Indian palace, shut down at 5:59 a.m., having failed to reach a deal with its union workers to restore health care and pension benefits that were taken away from them in bankruptcy court. Continue reading »
Back in August, we noted that, for the first time since it’s creation in 1996, the Norwegian government had started raiding its sovereign wealth fund to cover government deficits. Now, as noted by Bloomberg, the Nordic country has revealed plans to massively increase withdrawals by over 25% in 2017, to $15 billion. The money would be used to cover Norway’s budget hole that’s expected to be roughly 8% of GDP.
Of course, Norway’s ultimate GDP potential, and therefore budget deficits, are heavily dependent on oil prices so any further weakening of crude could result in even more withdrawals. Moreover, given the substantial YoY increase, it’s important to recall that there are fiscal limits imposed on fund withdrawals equal to 4% of assets, or roughly $36 billion, which could come into play at some point in the future if oil prices remain “lower for longer.”
“What’s worrying is the enormous pace,” said Torstein Tvedt Solberg, a member of parliament and a finance committee member for Labor. The largest opposition party has asked the fund “about the threshold for when it becomes really problematic for them and the signal they’ve given us is that it’s 150-200 billion kroner. With the pace we’re seeing now, we’re beginning dangerously fast to come close to the critical level.”
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One of the most significant stories of the past year that hasn’t been covered by the mainstream media is the flood of mysterious deaths surrounding those that threaten to expose a truth of some sort. Whether it be government officials, bankers or doctors, a shocking number of individuals from those respective categories have been found dead under suspicious circumstances within the past year or so.
And, yes, the deaths just keep on coming. Continue reading »
Having spiked above $1265 on post-payrolls USD weakness, the European close seems to have been the perfect time for someone to decide to dump $2.25 billion notional gold into the futures markets, busting the precious metal back below the crucial $1250 level…
Silver and US Stocks are also tumbling…
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The stage is set for the collapse of the world’s largest economy – the European Union. The trigger: Italy’s exit from the euro currency.
The Financial Times recently put it this way:
An Italian exit from the single currency would trigger the total collapse of the eurozone within a very short period. It would probably lead to the most violent economic shock in history, dwarfing the Lehman Brothers bankruptcy in 2008 and the 1929 Wall Street crash.
If the FT is even partially right, it means we’re looking at a possible stock market crash of historic proportions. It could devastate anyone with a brokerage account. But it could also present enormous opportunities to profit.
Here’s how it could happen… Continue reading »
A curious group of markets – India, Indonesia, The Philippines and Vietnam – have been identified as the best investing opportunities by a group of leading Asia macro strategists, who think that Asia and the emerging markets will considerably outperform the developed world.
While everyone is focused on the US Presidential election, Real Vision TV recently brought together some Asian market experts, to explain why they have recently turned bullish on the region and why institutional money has been underweight the Asian markets for the past five years. A video compilation of the highlights is shown below:
It features some diverse views around the common theme that there are some good opportunities for investors to get in now ahead of the curve. One common theme in the conversations is that investment flows are set to take off in the region, sparked by positive demographic and infrastructure stories, alongside political reform for growth. Continue reading »
I know that they’ve found an oil field in Alaska (many years ago) that would provide the U.S. easily with enough oil for the next 200 years!!!
A small company just announced that it has made a “world-class” oil discovery in Alaska, which could be the largest find in the state in years.
Caelus Energy LLC, a small company backed by private equity, says that it has discovered oil on Alaska’s northern coast. The field could hold as much as 6 billion barrels of oil, with about 1.8 to 2.4 billion barrels considered to be recoverable. If that is the case, the discovery would instantly raise Alaska’s statewide recoverable oil reserve base by about 80 percent.
But producing the oil will not be easy. Drilling must take place in the winter. To drill the field, the tentative plan would be to build manmade islands to drill through. Oil produced in the shallow water of Smith Bay will need to be moved somehow. Caelus will have to build an $800 million pipeline that travels 125 miles, connecting to an existing pipeline system in Prudhoe Bay. Continue reading »
What was supposed to be a day reserved solely for today’s nonfarm payrolls report as the biggest news, has been upstaged by the overnight flash crash in pound sterling, which as reported previously inexplicably plunged 6% in a sharp move lower ahead of the Asian open, dropping the most since Brexit…
… with liquidity in pound literally evaporating during the two minutes of chaotic selling, pushing the bid-ask spread surging to more than 250 times their median during the past year…
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Billionaire hedge fund manager and political donor George Soros has said Europe must welcome huge numbers of asylum seekers and economic migrants, claiming they will benefit the economy.
Writing in Die Welt, Soros lays out “seven pillars” he beleives should be enacted in order for Germany and Europe to see financial gains from the mass migration of people from the third world.
Calling Britain’s vote to leave the bloc a tragedy, the Hungarian Billionaire warns that the prospect of “xenophobic, nationalist movements” winning elections in France, the Netherlands, and Germany constitutes a massive threat. Continue reading »
Deutsche is way “Tooooooo Big To Save”, thanks to former CEO, Rothschild puppet & Bilderberg Josef Ackermann.
The next several days up to Oct. 12 (Yom Kippur) have a high probability for something “big” to happen.
Prepare for (an epic) collapse.
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