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Cashless Society – BOA Refuse To Accept Cash For Mortgage Payment

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In another example of a cashless society coming, this story was reported by Activist Post about a customer in California being refused to their mortgage with cash in a Bank Of American branch.

Bank of America in California refused to accept cash for a mortgage payment.  The manager of the bank said it was against their policy to accept legal tender physical currency (aka U.S. dollars) as payment for BoA mortgages.

The customer attempting to pay his mortgage, firefighter Robert Somerton, recorded the ordeal in Lakeport branch which made the bank manager so upset that he called the police.  The police detained Somerton for a half hour before releasing him with a warning that he may never return to that BoA branch or he’ll be arrested.

“I was shocked. I had no idea this would happen. Since when does a bank not accept cash?” Robert wrote after the affair.

Check out an earlier post from NIB in Ireland not accepting cash , or capital control in Italy.

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Plunge in Petroleum and Gasoline Usage

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An article submitted by Tim Wallace to Mish’s Global Economic Collapse website discusses today a large drop off in petroleum and gasoline usage. To check out the graphs click on the link to the full article. This ties in a little with a previous post which Chris Cook gave in an interview with Max Keiser in which he said he expects a collapse of oil price in the first 6 months. According to Chris Cook the reason for large oil prices is because of mistrust in the dollar which causes investors to buy oil contracts.

As I have been telling you recently, there is some unprecedented data coming out in petroleum distillates, and they slap me in the face and tell me we have some very bad economic trends going on, totally out of line with such things as the hopium market – I mean stock market.

This past week I actually had to reformat my graphs as the drop off peak exceeded my bottom number for reporting off peak – a drop of ALMOST 4,000,000 BARRELS PER DAY off the peak usage in our past for this week of the year.

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An amazing thing to note is that in two out of the last three weeks gasoline usage has dropped below 8,000,000 barrels per day.

The last time usage fell that low was the week of September 21, 2001! And you know what that week was! Prior to that you have to go back to 1996 to have a time period truly consistently below 8,000. We have done it two out of the last three weeks.

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Looking at these numbers I believe we are about to have a surge in unemployment – by the end of April latest, possibly as early as beginning of March.

 

 

 

To get the BRENT oil price, please enable Javascript.

Large Profits Form EU Carry Trade

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Large profits are being made by European banks through the “carry trade” as a result of borrowing at 1% via LTRO. They are able to buy sovereign bonds at 6%, taking a profit about 5%. The ECB is practically giving away €1 trillion in free cash to enable the banks to rebuild their balance sheets. Of course to enable banks to avail of this facility, they must offer  trash collateral in return. The quality of this collateral is highly debatable and indeed the ECB will worry about this at a later date.

The other main advantage of the “carry trade” is that sovereign bonds are rolled over which enables the can to be kicked further down the road. The losers in all of this are inevitably the european taxpayer that must first subsidize the profits by paying the difference between the bond price and the price borrowed from the ECB. Ultimately by enabling the bonds to be rolled over in this artificial fashion we are only storing up a much larger debt mountain, which eventually will overwhelm the weaker nations abilities to grow and pay off this debt.

Carry trade is a neat idea in the short-term and serves its purpose, but over the long-term will only make things worse.

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