SKY News: 60 Banks Robbed By Cyber Attack

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Great excuse to clamp down on the internet. Its also a good cover story for the recent problems banks have been reporting when then have denied customers access to their accounts.  Sky News has reported that up to 60 banks have been robbed via cyber attacks.

Sixty million euro has been stolen from bank accounts in a massive cyber bank raid after fraudsters raided dozens of financial institutions around the world.

According to a joint report by software security firm McAfee and Guardian Analytics, more than 60 firms have suffered from what it has called an “insider level of understanding”.

“The fraudsters’ objective in these attacks is to siphon large amounts from high balance accounts, hence the name chosen for this research – Operation High Roller,” the report said.

“If all of the attempted fraud campaigns were as successful as the Netherlands example we describe in this report, the total attempted fraud could be as high as 2bn euro (£1.6bn).”

The automated malicious software programme was discovered to use servers to process thousands of attempted thefts from both commercial firms and private individuals.

The stolen money was then sent to so-called mule accounts in caches of a few hundreds and 100,000 euro (£80,000) at a time.

Credit unions, large multinational banks and regional banks have all been attacked.

Sky News defence and security editor Sam Kiley said: “It does include British financial institutions and has jumped over to North America and South America.

“What they have done differently from routine attacks is that they have got into the bank servers and constructed software that is automated.

“It can get around some of the mechanisms that alert the banking system to abnormal activity.”

The details of the global fraud come just a day after the MI5 boss warned of the new cyber security threat to UK business.

McAfee researchers have been able to track the global fraud, which still continues, across countries and continents.

“They have identified 60 different servers, many of them in Russia, and they have identified one alone that has been used to steal 60m euro,” Kiley said.

“There are dozens of servers still grinding away at this fraud – in effect stealing money.”

Source: Sky News

JP Morgan’s Trading Loss May Hit $9 Billion

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Back in may when the story broke of JPMorgan’s London Whale costing the company $3 billion in trading losses, there was great shock but asked the question could it be much higher. Today the figure looks to be getting closer to $9 billion. BusinessInsider reports as follows:

JPMorgan’s famous London Whale trading loss could spiral as high as $9 billion according to Jessica Silver-Greenberg and Susanne Craig at Dealbook.

This is a staggering amount, especially since in May people were freaking out at that might be as high as $3 billion.

…..

POLITICO’s Ben White notes astutely that it’s nice timing for JPMorgan to let this news leak on the day the SCOTUS healthcare announcement will be released.

The $9 billion number was actually scooped first by independent journalist Teri Buhl earlier this week.

Losses on JPMorgan Chase’s bungled trade could total as much as $9 billion, far exceeding earlier public estimates, according to people who have been briefed on the situation.

..

The bank’s exit from its money-losing trade is happening faster than many expected. JPMorgan previously said it hoped to clear its position by early next year; now it is already out of more than half of the trade and may be completely free this year.

As JPMorgan has moved rapidly to unwind the position — its most volatile assets in particular — internal models at the bank have recently projected losses of as much as $9 billion. In April, the bank generated an internal report that showed that the losses, assuming worst-case conditions, could reach $8 billion to $9 billion, according to a person who reviewed the report.

With much of the most volatile slice of the position sold, however, regulators are unsure how deep the reported losses will eventually be. Some expect that the red ink will not exceed $6 billion to $7 billion.

CNBC (Andrew Sorkin) is saying he reckons its more likely to be $4-5 billion. Lets wait and see.
There is always MaxKeiser’s view on what is happening.
As we’ve been saying for two years. JPM uses it’s own stock to collateralize naked silver short positions (echoes of Lehman and Enron). My analysis has concluded that liability from a rising silver price vs. loss of collateral value of the stock renders JPM’s balance sheet null and void when JPM’s stock price drops below the price of Silver. We’ve only seen this a couple of times since I made this call two years ago, BUT NEVER ON A SUSTAINED BASIS of more than a day or so. When the price of Silver popped over JPM’s stock price, the London desk quickly fabricated a few billion fresh naked silver shorts to tamp silver’s price down. Given this week’s revelations regarding JPM’s reckless balance sheet incineration the ‘crash jp morgan, buy silver’ trade has never been more important as a way to take down this financial terrorist. The SLA has been winning battles all along. Now we are poised to win the war as well. Bye-bye Jamie. NOTE TO HEDGE FUNDS: Sell JPM’s stock naked to Hell. This is the easiest money you’ll make this year.

 

Societe General in France Experience Technical Problems.

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On June  18th , Banque Postal in France closed its doors due to a technical problem now we hear after the problems in the UK and Ireland with RBS. Nat West and UlsterBank, that Societe Generale has announced today 28th June that it too is experiencing technical problems.

More and more signs that the banking system is extremely stressed.

 

Source: MaxKeiser

Chile Drops Dollar In Trade With China

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Another country joins the growing list of nations to drop the dollar for trading with another nation. In the case of Chile, it has done a deal with China to trade in the growing popular renminbi. Its another kick in the stones for the US dollars reserve status which is losing ground in world trade.

For simplicity’s sake here is the full list of “bilateral” arranagements in the past year as presented previously: “World’s Second (China) And Third Largest (Japan) Economies To Bypass Dollar, Engage In Direct Currency Trade“, “China, Russia Drop Dollar In Bilateral Trade“, “China And Iran To Bypass Dollar, Plan Oil Barter System“, “India and Japan sign new $15bn currency swap agreement“, “Iran, Russia Replace Dollar With Rial, Ruble in Trade, Fars Says“, “India Joins Asian Dollar Exclusion Zone, Will Transact With Iran In Rupees“, “The USD Trap Is Closing: Dollar Exclusion Zone Crosses The Pacific As Brazil Signs China Currency Swap.”

And now the latest: “China, Chile To Establish Strategic Partnership, Boost Trade… Launch Currency Swap and Settle In Renminbi

 China and Chile agreed Tuesday to upgrade their bilateral ties to a strategic partnership, and double trade in three years.

 Chinese Premier Wen Jiabao and Chilean President Sebastian Pinera announced Tuesday the establishment of China-Chile strategic partnership and the completion of negotiations on investment-related supplementary deals to a bilateral free trade agreement.

 China would like to be actively engaged in Chile’s infrastructure construction and work with Chile to promote the development of transportation networks in Latin America, said Wen.

 Meanwhile, Wen suggested that the two sides launch currency swaps and expand settlement in China’s renminbi.

China appears to be getting all its ducks lined up before it makes it final move. The question is, how much of the renminbi will be gold backed?

So to summarize, the list of countries that China is transacting with directly (that we know of), and bypassing the USD entirely, is as follows:

  • Japan
  • Russia
  • Iran
  • India
  • Brazil
  • and now, Chile

In other words, it looks like the BRICs already have their “bilateral” arranagements all sorted out, and are now quietly moving into other suppliers of key resources with swap deals, all without any mention of the word “dollar.”

How soon until China re-dips its toe in Europe with a modest “bailout” nobody can refuse in exchange for a simple caveat: you get paid in renminbi?

Source: ZeroHedge

Fears For More “Technical Glitches” At Banks

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The debacle at RBS/NatWest/Ulster Bank rolls on as the IT systems have not been fully restored. Yesterday anecdotal stories painted a bleak picture by The Slog readers, and in particular business customers who have gotten the run around for months and were not surprised to hear of a “technical glitch”. In the Irish Independent there are further stories from the AIB and NIB who recently have experienced similar technical problems.

FRESH fears have emerged over the safety of bank computer systems after two more banks experienced technical breakdowns.

National Irish Bank and AIB both experienced worrying — if minor — system breakdowns in the past week. And the Central Bank revealed last night that it was now to demand details from all the retail banks on their contingency plans when their IT systems collapse.

….

National Irish Bank confirmed that it had a technical problem yesterday that prevented its customers accessing cash.

And AIB has admitted that a technical glitch meant its systems were down for a number of hours between Thursday night and Friday morning.

Both banks insisted the problems were minor and were quickly rectified. But IT security specialist Brian Honan, of BH Consulting, said a similar IT meltdown to the one at Ulster Bank was likely at other banks.

Then we get damage limitation, with the following:

It comes as experts warn that other banks are vulnerable to similar problems, which have left 150,000 Ulster Bank customers locked out of their bank accounts.

Pressure was increasing on the Central Bank to probe the systems and outline what supports are in place in AIB, Bank of Ireland, EBS, Permanent TSB and National Irish Bank to deal with major malfunctions. Questions were also continuing to mount for bosses at Ulster Bank over their handling of the crisis.

……

Banking and computer experts said last night that other banks were vulnerable to similar collapses.

….

Both banks insisted the problems were minor and were quickly rectified. But IT security specialist Brian Honan, of BH Consulting, said a similar IT meltdown to the one at Ulster Bank was likely at other banks.

 The official line is this could happen to any bank, but common sense tells you that IT systems are backed up at night and weekends so it could easily be rectified. Banks spend a lot of money to get their systems right and we never hear of some many “technical glitches” at the same time. The following line in the article was quite disturbing because it shows that the banks are under a lot of stress worldwide.

And professor of banking at the UCD Quinn School of Business, Eamonn Walsh, said major computer breakdowns had occurred in banks recently in Australia, Japan, Singapore and South Korea.

Source: The Slog, Irish Independent

George Soros: Euro T-Bills Solution

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 George Soros proposes his temporary solution for the euro, until the EU goes for a full fiscal and political union. Of course he uses the dramatic line that the EU has only 3 days before the sky falls in and the whole world will end or words to that affect. He also sees Greece must exit the euro, but then again we all knew that.

What you need is a European fiscal authority that will be composed of the finance ministers but would be in charge of the various rescue mechanisms, the European Stability Mechanism, and the one that preceded it and it would be empowered to issue treasury bills, to set up a debt reduction fund and actually buy up the excess stock of that that has accumulated in the hands of particularly Italy and Spain and finally combine issuing treasury bills. Those treasury bills would yield 1% or less and that would be the relief that those countries need in order to finance their debt.”

Click for full interview on Bloomberg.

Germany’s Plans For Future of EU

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German finance minister Wolfgang Schäuble gave an illuminating interview with Der Speigel on the future plans for the EU. He explains that the euro was a stepping stone to a political union along the lines of the USA, just simply waiting for the right crisis, which many economists said was always going to happen. 

The following are the main points from the interview:

    • Political union along the lines of the United States where each state has a number of representatives.
    • Directly elected President, but unelected Government (president gets to pick).
    • There is to be a full fiscal union with eurobonds. (Nation states giving up jurisdiction of Fiscal policy)
    • Finance Minister responsible for vetoing and approving member states budgets.
    • Bank Union with a European Supervisiory Authority over the banks.
    • A referendum will be needed to decide this.
    • Plans for the proposal to be presented at the EU summit this week.
    • It will happen very quickly, maybe in less the 6 months.

For the full interview check out on Der Speigel.

Max Keiser: The Banks Are Dead

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Enough said 😉

Brazil Signs Currency Swap Deal With China

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There has been many headlines over the last year from countries agreeing to drop the US dollar when trading with each other but ZeroHedge has managed to sum it very well as the latest headline to hit us is the currency swap deal between Brazil and China. This makes Brazil the largest country yet to agree to swap currencies with China.

When the US Dollar is ultimately dethroned as the world’s reserve currency (and finally gets rid of all those ridiculous three letter post-Keynesian economic “theories”) nobody will have seen it coming. Well, nobody except for the following headlines: “”World’s Second (China) And Third Largest (Japan) Economies To Bypass Dollar, Engage In Direct Currency Trade“, “China, Russia Drop Dollar In Bilateral Trade“, “China And Iran To Bypass Dollar, Plan Oil Barter System“, “India and Japan sign new $15bn currency swap agreement“, “Iran, Russia Replace Dollar With Rial, Ruble in Trade, Fars Says“, “India Joins Asian Dollar Exclusion Zone, Will Transact With Iran In Rupees.” And while the expansion of the “dollar exclusion zone” was actually quite glaring to anyone who dared to look, one thing was obvious: it was confined to Asia. No more courtesy of the following FT headline: “Brazil and China agree currency swap.” More: “Brazil has provided a vote of confidence in China’s efforts to promote the renminbi as a reserve currency by becoming the biggest economy yet to agree a swap deal with Beijing. Brazil and China announced the R$60bn (US$29bn) local currency swap after a bilateral meeting between Wen Jiabao, the Chinese premier, and Dilma Rousseff, Brazil’s president, on the sidelines of the Rio+20 environmental summit in Rio de Janeiro.”

How many headlines are needed to get the message, the US Dollar is in decline ?

 

Source: ZeroHedge

Ireland: Independent Politician To Seek Injunction Over ESM Treaty

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When the Irish Constitution was written, it was clear the power was to remain with the Irish people and not the politicians. Now Irish independent TD Thomas Pringle looks to bring an injunction against the Irish government from ratifying the ESM  because it goes against the Irish Constitution and will probably need a referendum.

INDEPENDENT TD Thomas Pringle is to seek an injunction restraining the government completing ratification here early next month of the European Stability Mechanism (ESM) Treaty providing for a conditional permanent bailout fund for the 17 states in the Eurozone.

Mr Pringle will apply for the injunction once the relevant legislation is passed, as expected, by the Dail and Seanad within the next eight to ten days but before it goes to the President to be signed into law, his counsel John Rogers SC told then High Court today.

After the Oireachtas approves the legislation, a five day period must elapse before the President may sign it into law and Mr Pringle will apply for the injunction then, counsel said. If the President signed the Bills into law, there would be “a new situation” and Mr Pringle was contending the legislation was unconstitutional.

Mr Pringle had hoped the injunctions would not be necessary and the State would undertake not to ratify the Treaty pending the outcome of what his side believed would be a reference of issues to the European Court of Justice for determination, counsel said.

It was clear from issues raised in Mr Pringle’s challenge to the ESM Treaty that matters would have to be referred to the ECJ, counsel said.

Michael Cush SC, for the Government and the State, said they envisaged the court would decide the constitutional issue (whether the ESM Treaty breached the Constitution) and that decision on constitutionality did not lend itself to injunctive orders.

An injunction only arose if the court decided to refer issues to the ECJ and the State would be urging the court not to refer, he said. If the court did decide to refer, there would then have to be a debate whether there should be an injunction pending the ECJ’s answer.

He claims it breaches a lot of EU treaties other than the Constitution

In those circumstances, Ms Justice Mary Laffoy has adjourned to Tuesday the continuing hearing of Mr Pringle’s action in which he contends the ESM Treaty breaches the Irish Constitution, EU law and EU Treaties – the Treaty on the Functioning of the EU (TFEU) and the Treaty of the EU (TEU) – on grounds including those treaties do not allow for bailouts.

……….

In his claim of unconstitutionality, Mr Pringle alleges the ESM Treaty breaches the Irish Constitution on grounds including it dilutes the State’s fiscal sovereignty. He claims the ESM Treaty and Fiscal Stability Treaty, approved by a referendum here last month, are interlocked and the ESM Treaty should, and must, be put before the people in a referendum.

In its defence, the Government denies the ESM Treaty is unconstitutional or breaches the EU Treaties and EU law. It also denies the Stability Treaty is dependent on the validity and effect of the ESM Treaty or on the proposed amendment of Article 136 of the TFEU.

Source: Independent

More Bank Holidays – NatWest and Royal Bank of Scotland

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Yesterday it was UlsterBank in Ireland, last friday Banque Postal in France and before that was Bank Network Investments SpA in Italy, now its the same story, “technical difficulties” from NatWest and Royal Bank of Scotland on same network as UlsterBank.

Millions of NatWest and Royal Bank of Scotland customers have been hit by a technical fault which meant salaries were not paid into their accounts – and millions more could be affected tomorrow.

Tax credits and other payments did not go in overnight and people were logging on to find their money had not arrived.

One customer who was supposed to be buying his first house with his pregnant wife will be forced to spend a night without gas or electricity in his old property because of the glitch.

The banking group apologised to its customers for the problems, which began yesterday, and said it was working hard to fix them.

But a spokesman admitted it was possible that the glitch could also affect customers expecting payments to be made into their accounts tonight.

Asked whether it was possible that more account-holders will encounter problems tomorrow, the spokesman replied: ‘Potentially, but hopefully not.’

NatWest could not say exactly how many of their 7.5million personal account customers have been affected but it is understood to be in excess of one million.

Business customers have also been affected.

The group said tonight that the problem was not caused by hacking.

Worrying move was one branch closing its doors.

One branch in West London had closed its doors with only two members of staff outside telling customers that they would not know until tomorrow when services would be restored.

They also said NatWest customers should only use the bank’s own ATMs to guarantee being able to get money out.

Yesterday was a post about UlsterBank in Ireland which is part of the same network.

Around 100,000 UlsterBank customers have also reported difficulties. NatWest, Royal Bank of Scotland and UlsterBank share a number of internal computer systems.

A spokeswoman for UK Payments Administration, which oversees payments, basically said they had no idea what has caused this. What a likely story? Also a spokesman from RBS claims the problem is a delay in updating accounts. As a former software engineer, this sounds like the biggest piece of bullshit I have ever heard.

She said: ‘We don’t know exactly what the issue is yet. We don’t think it is (affecting) all payments.’

A spokesman for Royal Bank of Scotland said: ‘This is a technical problem affecting a large number of NatWest and Ulster Bank customers, and a small number of RBS customers, including some of our business customers.

‘It was caused by a failure of our systems to properly update customers’ balances overnight. The main problem customers are having is that where people have had money go into their accounts overnight, there may be a delay in it showing up on their balance. This is an unacceptable inconvenience for our customers, for which we apologise.

‘We can assure our customers that this problem is strictly of a technical nature and will be fixed as soon as possible. We can also confirm that no customers will be permanently out of pocket as a result of this.

Source: DailyMail

Monsanto To Pay $7.5 Bn to Farmers After Losing Lawsuit

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Probably one of the most hated companies on the planet has just lost a lawsuit taken by 5 million Brazilian farmers and now faces the prospect of having to pay back over $7.5 billion. Ooooh, thats gotta hurt. 

Monsanto may soon be forced to pay as much as 7.5 billion dollars back to the farmers who say that the mega corporation took their rightfully earned income and taxed their small businesses to financial shambles.

It all started with a monumental lawsuit launched by over 5 million farmers against Monsanto looking to recover financial losses from ridiculous seed taxes that bankrupted many families.

Back in April, a Brazilian court ruled that Monsanto absolutely was responsible for paying back the exorbitant amounts of cash to the farmers, ordering the company to issue back all of the taxes collected since 2004 — a minimum of 2 billion dollars. Afterwards, Monsanto appealed the decision and the case is now suspended until a further hearing is initiated by the Justice Tribune of the local court stationed in Rio Grande do Sul.

Recently, however, the Brazilian Supreme Court declared that any decision reached in a local court case should apply nationally. The result? Monsanto now faces even larger charges, due to the larger legal application on a national level. Now, the charges total or exceed 7.5 billion dollars.

“The values involved could total 15 billion reais ($7.5bn),” said the Superior Tribunal of Justice on its website.

Yeah, not a great track record of late 😉

Lawsuits and criminal charges continue to hit Monsanto, scratching away at the financial foundation of the agricultural behemoth.

Monsanto has been found guilty of chemical poisoning in France after their weedkiller product led to neurological problems, and the company has even dished out 93 million to victims of toxic dioxin.

As Monsanto continues to be slammed with lawsuits, many of which are from multitudes of affected farmers and individuals, awareness spreads among the general public regarding the corporation’s true acts.

It was this same corporation that was caught running what has been labeled slave rings, in which workers were forced to work for 14 hours or more per day cultivating the fields, and were not permitted to leave. Monsanto’s crimes are slowly coming to light, and the public is demanding action.

Oh BTW, GM food damages your health.

Source: Activist Post

Nigel Farage: “Barroso is a deluded idiot !”

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Nigel Farage on Fox giving his opinion on Barroso blaming the USA for Europes ills. Interesting, he says EUssr is run by ex communists (Barroso in the past was a communist who supported Chairman Mao), and is moving towards something similar to the USSR.

What Happens When Fiat Currency Dies?

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Nice article on ZeroHedge explaining the steps of a fiat currency dying.Funny ting is, the pattern has remained the same for the last 4000 years. Why would it be any different this time?

 

This is today’s reality. It can happen here, it probably will happen here. And frankly, it’s all unfolding almost exactly as it has so many times before throughout history:

1. A nation rises to greatness and becomes wealthy based on sound principles and the hard work of initial generations.

2. Eventually, being wealthy becomes the natural expectation… an entitlement, rather than a goal to work hard for and achieve.

3. A nation begins living beyond its means to maintain the high life without the hard work, leveraging its credibility to trade tomorrow’s production for today’s consumption.

4. Living beyond its means eventually becomes unsustainable. Government begins to slowly, then staggeringly, devalue its currency.

5. The market (i.e. people) finally wake up to the fraud being perpetrated.

6. Financial repression usually follows– high taxes which steal from the productive, negative real interest rates which steal from the savers, etc.

7. Capital flight comes next. People take their money and run.

8. Governments implement capital controls, border controls, price and wage controls, and anything else they can do to maintain the status quo. People find out who the police are really there to protect and serve.

9. Capitulation (default) is the endgame; the system resets itself and begins anew.

This is nothing new. From the 3rd Dynasty of Ur (2000 BC) to Medieval Venice to the familiar stories of Rome and the Ottoman Empire, the world is full of monuments to the past greatness of failed civilizations.

We’re seeing the same pattern unfolding now. And sure, anything’s possible. Maybe the skies open up and the unicorns come out to play and the whole world manages to fix itself without skipping a beat.

But let’s live in reality: there are consequences when nations go bankrupt. And nearly every western nation on the planet is insolvent. That is a fact.

Certainly, the lies from our political leaders are entertaining. But how many more revolutions, riots, defaults, bank runs, stimulus packages, nationalizations, tax increases, pension grabs, etc. will it take to acknowledge what’s happening?

Can anyone afford to keep ignoring reality? Can you?

€750 Billion To Bailout Spain & Italy

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I’m not sure where the money is going to come from but €750 billion is the figure it looks like to build one of those EU firewalls around Italy and Spain. As the Irish Independent reports

EUROPEAN leaders are poised to announce a €750 billion deal to bail out Spain and Italy, it emerged at the G20 summit on Tuesday night.

Two rescue funds are to be used to buy the debts of the troubled economies, the cost of which have reached record highs in recent weeks.

It is hoped that the move, which represents a substantial shift in policy for Germany’s chancellor, Angela Merkel, will send a strong signal to financial markets that Europe’s biggest economy is finally prepared to back its weaker neighbours.

Mrs Merkel and other European leaders have come under intense pressure at this week’s G20 summit to take radical action to stem the growing euro crisis which has pushed up the cost of Spanish bonds to unsustainable levels. The communiqué issued at the end of the G20 summit, which finished in Mexico last night, said that European leaders had agreed to take action to bring down borrowing rates.

Under the proposed deal, two European rescue funds – the €500 billion European Stability Mechanism (ESM) and the €250? billion European Financial Stability Facility (EFSF) – will buy bonds issued by European countries.

The Slog as usual has his own viewpoint

Worse still, two-thirds of it doesn’t exist

Every penny of it represents completely wasted money. Why?

Because it is a muddle-through hybrid like everything Sprout & Kraut Inc do: it won’t stop the financial forest fire engulfing Europe, and it isn’t a bailout: it’s simply designed to buy up the bond debt for which Spain and Italy are liable.

Because it will do nothing for the EU economy: this is a financial banking mega-play for sure, but once again the bankers are let off the hook of crazy lending policies by…you and me. (Can we have their profits and bonuses back for the last five years please?)

Because it still doesn’t address the problem of derivative obligations associated with both bank and sovereign default. Without money within the next fortnight – a lot of money – Greece will default. When Greece defaults, at least two French banks and one German bank will be blown away.

Wait, isn’t there a slight problem to the G20 plan? The ESM doesn’t exist yet and may not. The German courts in their wisdom ruled against Merkel’s plans to ratify it this week. They said it needs to be debated first rather than being rammed through as Merkel wants. Anyone bother to ask the German people what they want?

It has not been ratified by Germany and Italy…and following yesterday’s Karlsruhe judgement, it must be debated by the full Bundestag. Even when it does come into being, its paid up capital will start at just €22bn. That represents the sum total paid towards the EU’s Steeple Restoration fund.

And remember…one of the signed-up backers is….Italy. Hurrah!

What a farce.

How long more will the euro crisis keep going, as slowly the markets are beginning to see through the bullshit.

The Emporer has no clothes !

Bank Holiday In Ireland ? Ulster Bank Stops Withdrawals Due To Technical Difficulties

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Hot on the heels of previous stories of Banks across the eurozone, whereby banks suddenly experienced difficulty allowing clients to withdraw funds, I was refused to withdraw from my Ulster Bank(Ireland) account. No problem depositing though. I was told this was due to technical difficulties until later. Similar stories have been reported from France (Max Keiser reader reported about Banque Postal) and in Italy with Bank Network Investments

The following announcement was on Ulster Bank’s website.

Spanish Bailout Imminent

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Its been coming a long time, but with rising bond cost a bank bailout and worsening economy it’s just a matter of time now for Spain to formally look for a bailout. It looks as if that has been discussed at the G20 meeting if you read between the lines. Time will tell but I believe Mario Monit’s quote below sums it up. The Slog discusses as follows:

WORDS: “The G20 wishes to express its alarm about the eurozone crisis”

(Opening statement)

“We can see that the markets are not convinced. We must draw up a definitive and clear road map with concrete actions that make the euro more credible.” (Mario Monti)

With Spain perhaps days away from requiring a full sovereign bailout, its bond yields rising above 7%, persistent rumours of a time bomb waiting to go off inside La Caixa, and Slog sources in Madrid of the opinion that “a full bailout is imminent, there is not a chance Rajoy can beat the markets. A total bailout is now unavoidable”, the anodyne quotes from Mexico floated unsteadily about like ethereal gloop on the air.

The Slogs source in Spain commented as follows:

“Spain can only wait another two weeks, unless Rajoy gets some under-the-table money from the [European] Central Bank. That’s possible of course, you never know any more.”

It seems hard to imagine that any money coming from that direction will be real: given that Greece was bailed out with some paper signed by Mario Draghi, the best Madrid could hope for would be some used Frankfurt bus tickets.

Finally, here is one I wasn’t expecting.

Is there any upside? Oddly enough, yes, there is: at long last – with the time at 3 seconds past midnight, Scameron is hinting darkly at moving away from european markets, and re-establishing a strong commonwealth relationship. This tells us just how impossibly bad things are in the eurozone, and that the EU as we know it today is crumbling into dust. For our Prime Minister lacks the courage to back anything that isn’t a certainty. (Except the rapidly disappearing HS2, of course).

 

 

 

Irish Finance Minister Answers Questions On Bilderberg Meeting

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“Nothing to see here Guv, move along”. That was pretty much Michael Noonan’s response when asked what the hell was he doing at a Bilderberg meeting at the start of the month. The questions were put to the Finance Minister in a Dail (Irish Parliment) session. His response can be found on the Dail website from 12 June 2012.

I attended the Bilderberg meeting in Westfield Marriot, Chantilly, Virginia, USA, from 1 to 3 June 2012. I, like a number of my European colleagues (both Ministers and EU Commissioners), was invited to attend given my position as Minister for Finance. I travelled alone and the total cost associated with my travel and accommodation came to €4,358.33. For further information, I would point Deputies to the Bilderberg Meetings website (www.bilderbergmeetings.org), which includes information on the organisation’s governance, steering committee, meetings and associated press releases. At this meeting and its workshops I took the opportunity to set out to my fellow attendees the opportunities that exist in Ireland for investors and multinational companies. I also outlined the significant progress Ireland is making in restoring stability and growth to the economy.

The Government is focussed on encouraging as much investment as possible into Ireland and over recent months we have seen the strong level of inward investment in our economy and have seen the announcement of over 1,000 jobs per month from Foreign Direct Investment so far this year. I would point out to Deputies that a number of the business attendees represent companies which have very significant investments in Ireland that support thousands of Irish jobs.

The Bilderberg (steering committee for the worlds ruling elites), I’m sure would have no interest in a sarcastic fat Irish ex school teacher giving them an update on the economy. I could give them that update (we’re fucked) ;-). Sorry Michael, but you do have a track record for bending the truth. He joins a long list of people from his own party Fine Gael who have attended meetings including Peter Sutherland, Dermot Gleeson, Paul Gallagher, Garett Fitzgerald and Michael McDowell (yes originally in the Fine Gael party).

Go on Michael, what were you really there for ???? Why is there no transparency?

In an attempt to play down the conspiracy theories around Bilderberg, in Ireland the Irish Times newspaper wrote a small article explaining that Michael Noonan simply attended a 3 day conference. Quite significant was the fact that up until this point, the MSM in Ireland had appeared to have a blanket ban on discussing all things Bilderberg.

For further background, listen to following clip from BBC including how they created all major european institutions.

Source: OireachtasDebates, Irish Times, Wikipedia, UCD

Euro Crisis – Technical analysis

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Eurozone, forget the analysis, its a no brainer 😉

Brutal austerity + toxic levels of government debt + rising bond yields + a lack of confidence in the financial system + banks that are massively overleveraged + a massive credit crunch

=

A financial implosion of historic proportions.

!

source: Activist Post

EU To Force Pension Funds To Buy Toxic Sovereign Bonds

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Spanish Bonds this week have hit over 7% for the 10 year and Italy’s bonds have also increased but the EU is looking for new and devious ways to fund them.  They now want to introduce new rule to force your  pension fund to use 20% to buy shite sovereign bonds.The Daily Mail reports on how it will affect UK pension holders.

Millions of people could see the value of their pensions slashed by up to 20 per cent because of new EU rules. Those with a £100,000 pension fund could be more than £1,100 per year worse off in retirement because of the reforms, research has shown.

The Solvency II rules, which are due to come into effect in January 2014, will force pension funds to hold a higher proportion of ‘safe’ Government bonds. As the bonds – called gilts – have such low rates of return it will drive down the returns on retirement fund annuities, which are used to pension income.

The reforms are designed to make pension funds safer and reduce the risk of them going bust. Annuities, which set retirement income for life, have already fallen to historic lows because of the impact of quantitative easing.At present, a p ension annuity fund may invest 20 per cent in low-yield gilts and the rest in riskier corporate bonds which have a higher rate of return.

But under the new EU rules, annuity funds will be forced to hold a higher percentage of gilts.

New research by Deloitte suggests annuity rates will plunge by between five and 20 per cent when the directive comes into force in January 2014. A £100,000 pension pot currently gives an income of £5,837, but once the regulations come into effect they will be between £292 and £1,167 a year worse off.

The return on government bonds has fallen in value because the Bank of England’s quantitative easing programme has involved buying them up to inject an extra £325bn into the economy and investors are moving their funds from risky countries like Greece to Britain. This extra demand drives up their prices but consequently means that interest rate yields plunge.

Yields have fallen to historic lows, and the situation could get worse.

Its bound to have a devastating affect on pension returns as the debt situation can only get worse.

‘The EU rules will make the value of pensions fall further. Its a series of pieces of bad news for British pensioners.’ As a result of these rules everyone will get much less pension out of their fund. We don’t know exactly how much less.’We are anxious that the UK Government should stand up for UK pensioners.’ She added that plunging annuity rates are putting young people off saving for retirement.

In a double-whammy for male pensioners, new rules banning gender discrimination could hit retirement incomes. At present, men get higher annuities because of their shorter life expectancies.

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