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2012: $7.6 Trillion of Debt To Turnover

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Guess how much debt the worlds leading economies are rolling over this year according to Bloomberg. $7.6 trillion and if you included interest payments its over $8 trillion.

Looks like they will all be competing for the same buyers. Best of luck 😉

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Europe is Warmup, US is Main Event.

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Peter Schiff CEO of Euro Pacific Capital, gave an interview on RT’s Capital Account. Below is the video clip but the main points are as follows:

  • We are in intensive care and zero interest rates prevent the cure.
  • We need higher interest rates, more savings, lower property prices, less government spending and to balance the books.
  • Europe is the warmup and America is the main event.
  • We are where the real sovereign debt crises is going to be and it will be enormous.
  • It was going to happen because of mistakes government made in the past, but it will be worse because of mistakes made in the present.
  • We haven’t had a free market for a long time and is getting less and less free.
  • The more government gets involved in the economy, the more they screw it up.
  • We are going to have an inflationary depression worse than the 1930s. Everything the government is likely to do will exacerbate it.
  • The more government stimulate, the worse it gets.
  • We are a lot sicker than we were in the 1930s. We know what the cure is but we can’t get the politicians to allow the economy to swallow it.
  • We are in a climate where real tyranny can flourish. Look at what happened in Weimar Republic, Germany. After hyper-inflation we got the Nazis.
  • We are going to have civil unrest and rioting.
  • Ultimately we will have price controls even though government currently are denying we have inflation, because prices will be so high.
  • Government may start to silence the voices of people. They can already classify anyone they want as a terrorist.
  • Young people are getting the message now. So there is hope.

Irish PM Lets Mask Slip

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The Irish Taoiseach (Prime Minister) Enda Kenny was in Davos this week and caused a storm back in Ireland by his comments. When asked what caused the crisis in Ireland he responded:

‘What happened was that people simply went mad borrowing

This is unbelievable because just six weeks earlier he said:

‘Let me say this: You are not responsible for the crisis

The real causes of the crisis is the following which he well knows:

1. Low interest rates caused by being in the euro. Especially when Ireland needed to raise them to stop property bubble and high inflation. Of course low-interest rates meant nobody saved. People invested in property as a pension because they got so little in the banks.

2. Government never warned the property bubble was getting out of control, despite been warned repeatedly by its own Dept of Finance (which it ignored) , OECD, IMF, ERSI etc.

3. Media never warned the people, because they made a fortune from advertising.

4. Anyone who spoke out was laughed at. Taoiseach (Prime Minister) Bertie Ahern once famously said these people should “commit suicide”.

5. Banks massively changed their lending policies, where the golden rule was you could only get a maximum of 2.5 times your yearly salary plus 1 times your spouse, it went up to nearly 10 times you salary. In fact there was stories of people be encouraged to make up figures.

6. The opposition political parties (including current Taoiseach Enda Kenny) keeping their mouths shut. Strange that 😉

7. Banking Regulator and Irish Central Bank did NOTHING.

8. Bank auditors DID NOT DO THEIR JOB. Including letting Irish Permanent deposit €7bn overnight in Anglo Irish Bank to cook the books for the audit and then transfer back once audit was over.

9.Governement tax policy was completely wrong. It was setup for property based taxes EVEN THOUGH THEY WERE WARNED. When the property bubble was about to collapse naturally in 2002 they pumped it up with first time buyer grants in invester tax breaks. When over 20% of GDP was based on property they kept going.

10. Guaranteeing the banking system and taking on its debts. What a F**king disaster. WHICH IS THE REAL REASON IRELAND IS FUCKED.

Fianna Fail’s Niall Collins said:

“Where was the Taoiseach’s harsh criticism of European banks which helped flood Ireland with credit for years? He should be standing up for the Irish people and challenging the role of the banks when he has the chance,” he said.

Sinn Fein‘s Padraig Mac Lochlainn said

“This analysis that people in Ireland went drunk with credit, were reckless and they have to now be cleansed by a decade of austerity is very worrying.”

And finally, after paying back €1.25bn to junior bondholders of a bank that DOESN’T EXIST ANYMORE, Enda Kenny had to say about the €30 bn of IOUs (promissory notes) that Ireland has to pay to bondholders of the bank that DOESN’T EXIST ANYMORE.

The Taoiseach said there would be no discussion at next week’s summit on reducing the level of debt associated with Anglo Irish Bank’s bailout.

The European Central Bank is understood to be open to proposals to replace Anglo Irish Bank’s €30bn promissory note or government IOU, for another type of debt repayment.

Finally, Enda enjoy Davos. After all we’re paying for it. 😉

source: Irish Independent

Cashless Society Coming Soon

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There has been warnings for years of the banks moving away from cash to an electronic financial system. In the latest move in Ireland, the National Irish Bank will no longer handle cheques. It announced in 2010 that it wasn’t going to handle cash.

Asked how a customer who needed €5,000 in cash would get it, a spokesman for the bank said that a branch could issue a bank draft if the money was needed urgently. This could be taken to a post office and cashed there.

We have already seen capital controls on Italy with plans to limit withdrawals to €300.  Greece too announced in 2010 that it would limit cash transactions to a max €1500. These are not large amounts.

It’s a disturbing (1984) move which looks to be started with the PIIG nations first. Lets face it, their citizens  have more things to worry about right now. The trend looks to be moving toward an electronic system controlled by the banks of course. More control by the banking system never ends well.

😦

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