Stock Market Exit Up Ahead

1 Comment

Is it time to exit the stock market now? Soros has dumped 80% of his stock holdings. Well smart money seems to think so. The relationship between earnings and the stock prices suggest that the DOW should be over 200 points lower so maybe it time for and adjustment.

If wonderful times are ahead for U.S. financial markets, then why is so much of the smart money heading for the exits?  Does it make sense for insiders to be getting out of stocks and real estate if prices are just going to continue to go up?  The Dow is up about 17 percent so far this year, and it just keeps setting new record high after new record high.  U.S. home prices have risen about 11 percent from a year ago, and some analysts are projecting that we are on the verge of a brand new housing boom.  Why would the smart money want to leave the party when it is just getting started?  Well, of course the truth is that the “smart money” is regarded as being smart because they usually make better decisions than other people do.  And right now the smart money is screaming that it is time to get out of the markets.  For example, the SentimenTrader Smart/Dumb Money Index is now the lowest that it has been in more than two years.  The smart money is busy selling even as the dumb money is busy buying.  So precisely what does the smart money expect to happen?  Are they anticipating a market “correction” or something bigger than that?

Those are very good questions.  Unfortunately, the smart money rarely divulges their secrets, so we can only watch what they do.  And right now a lot of insiders are making some very interesting moves.

For example, George Soros has been dumping almost all of his financial stocks.  The following is from a recent article by Becket Adams

Everyone’s favorite billionaire investor is back in the spotlight, and this time he has a few people wondering what he’s up to.

George Soros has dumped his position with several major banks including JPMorgan Chase, Capitol One, SunTrust, and Morgan Stanley. He has reduced his exposure to Citigroup and decreased his stake in AIG by two-thirds.

In fact, Soros’ financial stock holdings are down by roughly 80 percent, a massive drop from his position just three months ago, according to SNL Financial.

So exactly what is going on?

Why is Soros doing this?

Well, there is certainly a lot to criticize when it comes to Soros, but you can’t really blame him if he is just taking his profits and running.  Financial stocks have been on a tremendous run and that run is going to end at some point.  Smart investors lock in their profits while they still can.

And without a doubt, stocks have become completely divorced from economic reality in recent months.  For example, there is usually a very close relationship between corporate earnings and stock prices.  But as CNBC recently reported, that relationship has totally broken down lately…

That trend disrupted a formerly symbiotic relationship between earnings and stock prices and is indicating that the bluechip average is in for a substantial pullback, according to Tom Kee, who runs the StockTradersDaily investor web site.

“They’ve been moving in tandem since 2009, until recently. Earnings per share for the Dow Jones industrial average have flatlined and the price has taken off,” Kee said. “There is something happening here that defines a bubble.”

At some point there will be a correction.  If the relationship between earnings and stock prices was where it should be, the Dow would be  around 13,500 right now.  That would be a fall of nearly 2,000 points from where it is at the moment.

And we appear to be entering a time when revenues at many corporate giants are actually declining.  As I noted in a previous article, corporate revenues are falling at Wal-Mart, Proctor and Gamble, Starbucks, AT&T, Safeway, American Express and IBM.

Of course a stock market “correction” can turn into a crash very easily.  Financial markets in Japan are already crashing, and many fear that the escalating problems in the third largest economy on the planet will soon spill over into Europe and North America.

And things in Europe just continue to get steadily worse.  In fact, the New York Times is reporting that the European Central Bank is warning that the risk of a “renewed banking crisis” in Europe is rising…

The European Central Bank warned on Wednesday that the euro zone’s slumping economy and a surge in problem loans were raising the risk of a renewed banking crisis, even as overall stress in the region’s financial markets had receded.In a sober assessment of the state of the zone’s financial system, the E.C.B. said that a prolonged recession had made it harder for many borrowers to repay their loans, burdening banks that had still not finished repairing the damage caused by the 2008 financial crisis.

And there are many financial analysts out there that are warning that their cyclical indicators have peaked and that we are on the verge of a fresh global downturn

“We see building evidence of a cyclical downturn,” said Fredrik Nerbrand, HSBC’s global asset guru. “We find it highly troubling that the eurozone is still marred in a recession at the same time as our cyclical indicators appear to have peaked.”

In the United States, a lot of the smart money has also decided that it is time to bail out of the housing market before this latest housing bubble bursts.  The following is one example of this phenomenon that was discussed in a recent Businessweek article

Hedge fund manager Bruce Rose was among the first investors to coax institutional money into the mom and pop business of single-family home rentals, raising $450 million last year from Oaktree Capital Group LLC.Now, with house prices climbing at the fastest pace in seven years and investors swamping the rental market, Rose says it no longer makes sense to be a buyer.

“We just don’t see the returns there that are adequate to incentivize us to continue to invest,” Rose, 55, chief executive officer of Carrington Holding Co. LLC, said in an interview at his Aliso Viejo, California office. “There’s a lot of — bluntly — stupid money that jumped into the trade without any infrastructure, without any real capabilities and a kind of build-it-as-you-go mentality that we think is somewhat irresponsible.”

So what does all of this mean?

Is there a reason why the smart money is suddenly getting out of stocks and real estate?

It could just be that the insiders are simply responding to market dynamics and that many of them are just seeking to lock in their profits.

Or it could be something much more than that.

What do you think?

Why are so many insiders heading for the exits right now?

IMF “Shock Therapy”

Comments Off on IMF “Shock Therapy”

Great description of how the IMF destroys countries for the purpose of asset stripping.

Bilderberg: Global Tax => Global Governance

Comments Off on Bilderberg: Global Tax => Global Governance

With so much in the media lately regarding multinational corporations avoiding tax, is Bilderberg to propose a Global Tax to the G8 with Global governance to administrate? The Telegraph has already called for such a solution.

The cascade of revelations in recent months showing multinational companies doing a huge amount of business here and yet paying virtually no corporation tax has provoked widespread public demands for something to be done. But people tend to be rather hazier on what that “something” should be.

To define a solution we first need to grasp the nature of the problem: a global tax loophole. In our age of liberalised cross-border trade and free capital flows, multinational companies find themselves with a considerable level of freedom to choose where they pay tax on profits.

……….

The natural solution is to secure an agreement by all the world’s governments to tax the profits of multinational firms collectively and to divide up the revenues fairly between them. This division could be based on the amount of business done by the multinational in their various territories as revealed by their turnover and number of employees.

It sounds complicated, but American states have long operated a system designed along these lines known as “apportionment”. Another name used is “unitary taxation”. Those names are a bit of a turn-off to the layperson. What’s required is a reform banner that the general public can easily understand. I suggest: “Global Profit Tax”. After all, doesn’t it make sense that global companies should be compelled to pay global taxes?

I’m sure under this Hegelian dialect we will hear more of this proposed solution, but this implies that you need a Global Administration to ensure taxes are collected and distributed. The G8 meeting later in June will be closely watched.

Although happy to float such a revolutionary idea in the media in advance of back-to-back Google and Bilderberg summits at the Grove Hotel, and later at the G8, one thing which global taxation advocates fail to mention here is that if you institute a global taxation system then you would then need a global government to administrate it. Yes, you heard that right: global taxation = global government.

It would be naive to think that any tax could be levied without a government standing behind it. That is, after all, part of the definition of a tax. Campaigners will deny it exists, but the reality is that global governing bodies have already been put into place long ago.

UK Column Editor Mike Robinson explains, “I think that the embryonic global institutions are already in place, and we’re going to see them being given more and more real ‘jobs’ to do as time goes on, and collecting corporation tax is clearly going to be one of those”.

Post-Bilderberg: G8 Summit

Following the ratification of Bilderberg’s 2013 agenda in Watford on June 6–9th, the next step is normally to disseminate this same agenda on to the G8 heads of state. Conveniently, this year’s G8 summit will held June 17-18 at the Lough Erne golf resort in Fermanagh, Northern Ireland. David Cameron and George Osborne’s new plan for Google is already expected to be very high on the agenda at the G8 meeting, where world leaders including Barack Obama and Vladimir Putin will be in attendance. Henceforth, ahead of the G8, the UK government is expected to play their key role in promoting the new global tax system, by publically advocating, “new strong international standards to make sure that global companies pay the tax they owe.”

…….

Other recent attempts at a global tax

The financial component of this global tax and government equation is actually already in place, and that is the World Bank. The first administrative working model for a global taxation structure was originally unveiled in 2009 at the United Nations Climate Summit in Copenhagen. Delegates at that event floated their plan for a global carbon tax that would be collected and then deposited into a slush fund which was to be administered by the World Bank. There plan also entailed the poorer, developing nations footing most of the bill for this operation, while the wealthier nations would receive a free pass. The secret plan was thwarted at the last minute thanks to the infamous Danish Text Leak, which were serialized in the Guardian newspaper at the time.

Although popular in socialist circles, few have dared reveal the true picture of a global tax regime for fear of triggering a public backlash. Another such tax proposals have been pushed into the public sphere through the Occupy Movement in 2011, with called for a global tax on financial transactions, or a global “Robin Hood Tax”. As was the case in Copenhagen two years earlier, proponents called for a tax structure without borders, yet few dared mention who would be in charge of administering and distributing the revenues. Such plans pose the very real danger of further centralizing power into the international banking community who would be asked to handle and perhaps hypothecate on these enormous slush funds.

Which brings us back to this latest global ‘google tax’ proposal, which ultimately begs the question: when will their global government structure be unveiled?

Serving the global collective

Plans for erecting an entirely new global tax system should worry anyone who values the concept of national sovereignty because any solution that entails the collection of  tax by way of elite international “collective”  of nations, and where “revenues are to divided up fairly between them” is suggesting a form of global collectivism, or communism. This is also the fundamental problem with EU plans to levy new taxes on member nations – for any citizen it’s simply another master to serve.

Shocking as that may be, these issues are exactly what is being discussed behind closed doors at each of these global summits taking place in May and June of 2013.

What’s worse, is that this entire construct could be ushered in without any vote being cast by an citizen in the individual countries – which is about as undemocratic as it gets. This remains one of the fundamental flaws at the heart of the ultra-liberal utopian ideal which is global government.

Source: The TelegraphGlobalResearch.ca

 

Whistleblower Says World Bank Corruption Centered on Federal Reserve

Comments Off on Whistleblower Says World Bank Corruption Centered on Federal Reserve

Karen Hudes was a former employee of the World Bank and has since turned whistleblower on its activities. Remember Joseph Stiglitz (Chief economist) resigned from the World Bank in protest with its policies. Below is Hudes interview with The New American.

A former insider at the World Bank, ex-Senior Counsel Karen Hudes, says the global financial system is dominated by a small group of corrupt, power-hungry figures centered around the privately owned U.S. Federal Reserve. The network has seized control of the media to cover up its crimes, too, she explained. In an interview with The New American, Hudes said that when she tried to blow the whistle on multiple problems at the World Bank, she was fired for her efforts. Now, along with a network of fellow whistleblowers, Hudes is determined to expose and end the corruption. And she is confident of success. 

Citing an explosive 2011 Swiss study published in the PLOS ONE journal on the “network of global corporate control,” Hudes pointed out that a small group of entities — mostly financial institutions and especially central banks — exert a massive amount of influence over the international economy from behind the scenes. “What is really going on is that the world’s resources are being dominated by this group,” she explained, adding that the “corrupt power grabbers” have managed to dominate the media as well. “They’re being allowed to do it.”

According to the peer-reviewed paper, which presented the first global investigation of ownership architecture in the international economy, transnational corporations form a “giant bow-tie structure.” A large portion of control, meanwhile, “flows to a small tightly-knit core of financial institutions.” The researchers described the core as an “economic ‘super-entity’” that raises important issues for policymakers and researchers. Of course, the implications are enormous for citizens as well.

Hudes, an attorney who spent some two decades working in the World Bank’s legal department, has observed the machinations of the network up close. “I realized we were now dealing with something known as state capture, which is where the institutions of government are co-opted by the group that’s corrupt,” she told The New American in a phone interview. “The pillars of the U.S. government — some of them — are dysfunctional because of state capture; this is a big story, this is a big cover up.”

At the heart of the system are a small number of companies (exposed by the Swiss study) and central banks with massive influence that run the world.

At the heart of the network, Hudes said, are 147 financial institutions and central banks — especially the Federal Reserve, which was created by Congress but is owned by essentially a cartel of private banks. “This is a story about how the international financial system was secretly gamed, mostly by central banks — they’re the ones we are talking about,” she explained. “The central bankers have been gaming the system. I would say that this is a power grab.”

The Fed in particular is at the very center of the network and the coverup, Hudes continued, citing a policy and oversight body that includes top government and Fed officials. Central bankers have also been manipulating gold prices, she added, echoing widespread concerns that The New American has documented extensively. Indeed, even the inaccurate World Bank financial statements that Hudes has been trying to expose are linked to the U.S. central bank, she said. 

“The group that we’re talking about from the Zurich study — that’s the Federal Reserve; it has some other pieces to it, but that’s the Federal Reserve,” Hudes explained. “So the Federal Reserve secretly dominated the world economy using secret, interlocking corporate directorates, and terrorizing anybody who managed to figure out that they were having any kind of role, and putting people in very important positions so that they could get a free pass.”

The Bank of International Settlements acts to coordinate Central Bank policy to dominate and rule the global financial system.

The shadowy but immensely powerful Bank for International Settlements serves as “the club of these private central bankers,” Hudes continued. “Now, are people going to want interest on their country’s debts to continue to be paid to that group when they find out the secret tricks that the group has been doing? Don’t forget how they’ve enriched themselves extraordinarily and how they’ve taken taxpayer money for the bailout.”

As far as intervening in the gold price, Hudes said it was an effort by the powerful network and its central banks to “hold onto its paper currency” — a suspicion shared by many analysts and even senior government officials. The World Bank whistleblower also said that contrary to official claims, she did not believe there was any gold being held in Fort Knox. Even congressmen and foreign governments have tried to find out if the precious metals were still there, but they met with little success. Hudes, however, believes the scam will eventually come undone.

“This is like crooks trying to figure out where they can go hide. It’s a mafia,” she said. “These culprits that have grabbed all this economic power have succeeded in infiltrating both sides of the issue, so you will find people who are supposedly trying to fight corruption who are just there to spread disinformation and as a placeholder to trip up anybody who manages to get their act together.… Those thugs think that if they can keep the world ignorant, they can bleed it longer.”

Of course, the major corruption at the highest levels of government and business is not a new phenomenon. Georgetown University historian and Professor Carroll Quigley, who served as President Bill Clinton’s mentor, for example, wrote about the scheme in his 1966 book Tragedy And Hope: A History Of The World In Our Time. The heavyweight academic, who was allowed to review documents belonging to the top echelons of the global establishment, even explained how the corrupt system would work — remarkably similar to what Hudes describes.

The system has been created to enable private hands to control the global financial and political systems but there is hope that this will be exposed and cleared up.

“The powers of financial capitalism had a far-reaching aim, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole,” wrote Prof. Quigley, who agreed with the goals but not the secrecy. “This system was to be controlled in a feudalist fashion by the central banks of the world acting in concert by secret agreements arrived at in frequent private meetings and conferences. The apex of the system was to be the Bank for International Settlements in Basel, Switzerland, a private bank owned and controlled by the world’s central banks which were themselves private corporations.”

But it is not going to happen, Hudes said — at least not if she has something do to with it. While the media are dominated by the “power grabber” network, Hudes has been working with foreign governments, reporters, U.S. officials, state governments, and a broad coalition of fellow whistleblowers to blow the entire scam wide open. There has been quite a bit of interest, too, particularly among foreign governments and state officials in the United States.

Citing the wisdom of America’s Founding Fathers in creating a federal system of government with multiple layers of checks and balances, Hudes said she was confident that the network would eventually be exposed and subjected to the rule of law, stopping the secret corruption. If and when that happens — even if it may be disorderly — Hudes says precious metals will once again play a role in imposing discipline on the monetary system. The rule of law would also be restored, she said, and the public will demand a proper press to stay informed.

“We’re going to have a cleaned-up financial system, that’s where it is going, but in the meantime, people who didn’t know how the system was gamed are going to find out,” she said. “We’re going to have a different kind of international financial system…. It’ll be a new kind of world where people know what’s going on — no more backroom deals; that’s not going to keep happening. We’re going to have a different kind of media if people don’t want to be dominated and controlled, which I don’t think they do.”

While Hudes sounded upbeat, she recognizes that the world is facing serious danger right now — there are even plans in place to impose martial law in the United States, she said. The next steps will be critical for humanity. As such, Hudes argues, it is crucial that the people of the world find out about the lawlessness, corruption, and thievery that are going on at the highest levels — and put a stop to it once and for all. The consequences of inaction would be disastrous.     

Source: The New American

EURO: Cock-Up or Conspiracy?

Comments Off on EURO: Cock-Up or Conspiracy?

Godfrey Bloom MEP discusses how the Euro was doomed to failure to force fiscal integration. Where is the democratic remit for fiscal integration since nobody was asked?

Karl Albrecht Schachtschneider, Professor of Law at Erlangen-Nurnberg University said of the euro:

The euro will inevitably fail. It was always clear that the euro-project would not succeed. Already in 1993 I have processed the Maastricht law suit that was mostly against the introduction of the monetary union. Without the consent of the nations comprising the EU, the euro is being used as a political lever to make the EU a super state that, for example, goes against Russia, and at the same time, serves as a counterbalance against China, the USA and other economic giants. But this lever was always economically doomed to failure.

 

Christine Lagarde Due To Be Charged In Connection With £270million Fraud and Embezzlement Scam

Comments Off on Christine Lagarde Due To Be Charged In Connection With £270million Fraud and Embezzlement Scam

IMF head Christine Lagarde is to appear in court to hear whether she is to face charges into fraud and embezzlement in relation to allegations that she interfered with a trail. Not just any trail,  Bernard Tapie benefited to the tune of €400millon and the taxpayers had to fork out. Now we know why she is qualified to lead the IMF 😉

A French government  minister last night called on Christine Lagarde, the head of the International Monetary Fund, to resign if she is charged with fraud and embezzlement.

She was questioned by magistrates in Paris yesterday over a £340million payout of public money five years ago to convicted conman Bernard Tapie.

As she appeared in court, there were calls for her to stand down from  her high-profile £305,000-a-year job if she is charged.

Najat Vallaud-Belkacem, the Minister for Women’s Rights, said: ‘Knowing the IMF and the way this type of institution works, I tend to think that if she was placed under investigation, she would without doubt be asked to quit her post.’

Last night the court adjourned after 13 hours sitting but it was widely predicted Mrs Lagarde, 57, would be placed under investigation by the Court of Justice of the Republic, equivalent to a suspect being charged in the UK.

She faces allegations that she stepped in to settle a long- running legal battle in which Tapie claimed he was cheated out of millions by Credit Lyonnais bank over the 1993 sale of his sportswear company Adidas.

Mrs Lagarde ordered a panel of judges to arbitrate and they awarded Tapie 400million euros (£340million) in damages paid from taxpayers’ money. Prosecutors suspect Tapie received favourable treatment in return for supporting ex-president  Nicolas Sarkozy in the 2007 presidential elections.

They have suggested that Mrs Lagarde – who was France’s Finance Minister at the time and the first woman ever to hold the post – was partly responsible for ‘numerous anomalies and irregularities’ which could amount to complicity in fraud and misappropriation of public funds.

There is no suggestion Mrs Lagarde profited personally in any way from the final settlement.
The affair has become a huge embarrassment to France and the IMF.

Dominique Strauss-Kahn was forced to quit the IMF two years ago after being accused of trying to rape a hotel chambermaid in New York, charges which were later dropped.

Her grilling by prosecutors comes after police raided her £1million Paris apartment in March.
Mrs Lagarde’s lawyer, Yves  Repiquet, said the inquiry was ‘in no way incompatible’ with her new job, adding that he expected the case to be dismissed.

She has denied any wrongdoing, saying: ‘If it’s decided to continue with this inquiry it won’t be particularly surprising. Personally, it doesn’t worry me at all – I didn’t benefit personally.’

But it has been widely reported in the French media that investigators intend to charge her with fraud  and embezzlement.

Le Monde reported that magistrates had already written to Mrs Lagarde to tell her not to expect any special treatment because of her high-profile international job.

Tapie was jailed for six months in 1997 for corruption and match- fixing while he was the owner of  Marseilles football club.

Source: Daily Mail

Ireland The Corporate Tax Haven

Comments Off on Ireland The Corporate Tax Haven

Despite what Irish Taoiseach Enda Kenny says, IRELAND IS A TAX HAVEN how else do you explain the following:

Company Income Tax Paid Rate
Apple €17bn €8m 0.05%
Google €9bn €22.2m 0.25%
Facebook €1bn €3.2m 0.33%

Meanwhile Irish tax payers pay over 50% income tax (income +USC) if earning above €33k. Not only is income tax being increased by stealth (reducing tax credits and increasing numbers paying taxes) but also new taxes are being introduced such as the property tax and water tax. What a sweet deal the big corporates have.

Is China Cooking The Books?

Comments Off on Is China Cooking The Books?

Looks like China has been cooking the books when it comes to its exports according to Bank of America. Things are a lot worse than they are letting on even echoing the pattern in 2008.

Latest research figures carried out by the Bank of America Corp. are set to rock the economies around the world once again. Has China been hiding the real state of its economic data? It would seem that the PRC hasn’t been quite as honest as it might have us all believe! According to the Bank of America Corp., the Chinese trade surplus that was meant to stand at some $61 billion turns out to be a meager mere tenth of that so far this year.

The true figure amounts to only $6 billion and that means it will be the smallest Q1 figure posted since the $10.8-billion deficit in 2004. Research on calculations carried out by the head of BoA’s Greater China Division, Lu Ting, suggests that the supposed tripling of China’s surplus was nothing more than fake, and that China has been cooking the books to appear to be better off than the rest of the world. True figures point to the fact that China’s growth rate is slowing down and that the economy is being restrained rather surging ahead. There’s being growing cause for concern since January this year as it turns out that China has been fibbing about its unemployment figures as well as GDP. Growing skepticism amongst analysts has led to worldwide concern as to the ability to provide real trade data.

Some are saying that the export situation can be likened to 2008 at the very moment when the financial crisis hit the world. China too was plunged into a difficult time as exports decreased back then. Shipments plummeted and out of that panic grew illegal practices in a bid to make money. Irregularities in export data have emerged and allowed for hot-money flows.

True figures seem to highlight that we have had the wool pulled over our eyes as figures show that there is a real growth of just 5% in exports, whereas the PRC has issued figures as high as 17.4%. Similarly, imports have increased by 7.6%, rather than the official government line figure of 10.6%. In a recent Bloomberg poll, investors believe that the Chinese economy is set to deteriorate in the coming year, despite what the official government figures might be stating.

But, it’s no consolation that China’s economy has also taken a downtown like the rest of us. While growth seems to be still partly there, it is definitely slowing down. That could be bad news for the rest of us, in already economic hard times, as we could see a knock-on effect around the world. That’s something we could surely do without right now! This is all in the wake of the Yuan’s all–time high. It currently stands at its highest level for almost twenty years in comparison with the Dollar. The Yen is suffering badly too from the adverse effects of never-before-seen monetary easing policies implemented by the Japanese government. Where do we go from here? Well, questions are now being raised as to how much longer China can withstand a growing Yuan in the face of a failing Dollar and troubled Yen. If it carries on much longer, China can only be on the receiving end of the adverse effects of that.

Source: tothetick

Peter Schiff: This Is Going To End Badly Much Worse Than 2008

Comments Off on Peter Schiff: This Is Going To End Badly Much Worse Than 2008

Peter Schiff counters the MSM cheerleading for Bernanke and irresponsible money printing. The end is on the horizon and will be much worse than 2008.

Hong Kong Mercantile Exchange To Close

Comments Off on Hong Kong Mercantile Exchange To Close

Two years after opening, the Hong Kong Mercantile Exchange (HKMEX) is to cease trading on Monday and close out all open positions. Clearly physical gold will not be delivered and the the question to ask is will the LBMA or COMEX be shortly behind it.

When the Rothchild’s HKMEx was launched in 2011, much of the metals community assumed that the COMEX & LBMA, were they not to outright default, would fade into irrelevance with the advent of the new Asian metals exchange.
Two years to the day after the exchange’s launch however, in perhaps the most glaring evidence of physical gold & silver shortage to date, the HKMEx has announced it will voluntarily cease trading, and all open positions will be closed out and financially (cash) settled on Monday 5/20!

…….

We suspect that come Monday morning, more than one Chinese investor who believed he owned a gold position (and learns that in fact he held paper) will immediately attempt to source and take delivery of physical metal.  As the Shanghai Gold Exchange appears to have stopped delivering gold as well, we suspect that the LBMA may be in for a bit of a physical run.

The first domino appears to have fallen in the ponzi fractional gold system.

Source: Silver Doctors

Irish Finance Minister Noonan Proposes Bail In Policy

Comments Off on Irish Finance Minister Noonan Proposes Bail In Policy

Noonan's gesture to depositors

Noonan’s gesture to depositors

Under the presidency of the EU, the Irish finance minister Michael Noonan(2012 Bilderberg attendee) has proposed making the Cyprus theft “bail in” using deposits over €100k policy for future bank collapses. The BIS sets the banking agenda and they want depositors raped when banks collapse along with using “bail ins” to pay for bankers remuneration (big bonuses) according to a recent paper. Judging by the state of European banks, a lot of people are going to have their wealth wiped out and everyone will be at the same wealth level in the Orwellian EUSSR.

Deposits of over €100,000 are likely to be hit in the event of future European bank collapses, according to a proposal put forward by the Irish presidency of the European Council ahead of a key meeting of finance ministers next week.

Discussions on the controversial bank resolution regime, which is likely to see savers with deposits over €100,000 “bailed in” as part of future bank wind-downs, are due to intensify this week in Brussels, ahead of Tuesday’s meeting, which will be chaired by Minister for Finance, Michael Noonan.

“We will try to get some guidance from Ministers about the possible design of the bailout tool,” one EU official said yesterday.

Under a compromise text proposed by the Irish presidency, uninsured deposits of over €100,000 would be bailed in in the event that a bank is resolved, but depositors would rank higher than other creditors in the event of a wind-down.

In this scenario – known as “deposit preference” – depositors would rank at the very end of the process, with other creditors first absorbing losses.

However, some member states have not ruled out the possibility that insured deposits, i.e. deposits under €100,000, would be forced to bear losses in the event of a bank collapse even though these deposits would be likely to be protected by the deposit guarantee scheme.

However, the explicit exclusion of insured deposits from future “bail-ins” could in fact be included in the final text, according to some sources, with some MEPs in particular keen to include such a provision.

Significant differences still remain between states on the issue, with some countries calling for greater flexibility as regards the application of the new rules on a national basis, including the possibility that individual countries could be permitted to exempt large depositors from losses if a bank fails.

The introduction of an EU-wide bank resolution process, which would govern how banks are wound down, is a key strand of the EU’s plan for a pan-European banking union, which was endorsed by EU leaders at last June’s summit.

However, the chaotic Cyprus bailout instilled the issue with greater urgency, with EU lawmakers now keen to provide clarity around bank collapses.

Moving the burden
This year Jeroen Dijsselbloem, head of the group of 17 euro zone finance ministers, said that losses on bondholders and depositors could form part of future bank bailouts as euro zone officials seek to move the burden of bailouts away from taxpayers – as was the case in the Irish bailout – and on to private investors.

The European Commission argues that this switch from so-called “bailouts” to “bail-ins” would result in an allocation of losses that would not be worse than the losses that shareholders and creditors would have suffered in regular insolvency proceedings that apply to other private companies.

While the inclusion of large savers in future bank bailouts is now widely accepted, significant differences still remain between member states.

While the new rules governing bank resolution were first intended to come into place in 2018, since the Cypriot bailout there have been calls from senior EU figures such as European Central Bank president Mario Draghi and EU economics affairs commissioner Olli Rehn to introduce the new regime as early as 2015.

The Irish presidency of the European Council is hoping to reach a common position by the end of next month.

Noonan demonstrate how much you will be left with under the EU plan

Noonan demonstrates how much the EU/Banks intend you will be left with under the plan

 

 

 

 

Source: Irish Times, BIS

World Bank Whistleblower Says Paper Currencies To Be Back By Precious Metals

Comments Off on World Bank Whistleblower Says Paper Currencies To Be Back By Precious Metals

Many people have claimed that the worlds reserve currency, the US Dollar will eventually cease to provide that role only to be replaced by a basket of currencies or one backed by gold. Karen Hudes, World Bank whistleblowe,r has confirmed that paper currency will be underpinned by precious metals.

I had the opportunity yesterday to speak with one of the western world’s most courageous and astute women, Karen Hudes, Former Senior Counsel to the World Bank—now turned whistle-blower.
It was a powerful conversation, as Karen spent 20 years with the World Bank as an attorney and economist, before being “let-go” after reporting internal fraud and corruption.
During the interview Karen indicated that the world is rapidly changing, with western power structures breaking down, economic & political influence gravitating to BRICs nations, all amid a pending currency transition which will highly favor precious metals.   Hudes stated: “All of the countries of the world are going to allow precious metals to serve as currency, and this will be an underpinning for paper currency, as we’ll have both systems at the same time.”

From Tekoa Da Silva:

Starting out by discussing the shocking centralized power she witnessed while working at the World Bank, Karen explained that, “A study done by three [Swiss] systems analysts who used mathematical modeling [shows] how the [world’s] 43,000 transnational corporations were being controlled through interlocking corporate directorates. There’s a group of 147 companies, most of them are financial institutions, and what they’ve done, is through the interlocking directorates, they control 40% of the net worth of these [43k] companies, and 60% of their earnings…so that group has been using the presidency of the World Bank as kind of a puppet to dominate the world—that’s [now] finished.”

A major shock to that centralized power base, according to Karen, was the recent move by BRICs nations leaders to bypass the World Bank for their financing needs, by establishing their own development bank. “As the BRICs [nations] economic power grows,” she explained, “they’re not going to be strangled anymore through the grabbing [of] their resources…So their decision to start their own development bank was their way of letting [world] governments know…that its time to end this corruption.” 

Major moves toward monetary independence are also being made by growing numbers of U.S. states, Karen added. She explained that, “The states are starting to have legislation recognizing gold and silver bullion as legal currency. This is [also] a very strong signal the states are sending to the federal government, that the time to get serious about ending the corruption in the financial system is now here.”

When asked her thoughts on what this all means for the world monetary system, Karen said, “What’s going to happen, is we’re going to have all the countries of the world, sit down and figure out what’s going to be the best, most orderly transition from the current system that we have, [which has] profound imbalance and unsustainable deficits…[this change] is going to happen as each country makes its preference known, because the system we have now is not transparent, and the biggest change [in the new system], is that there’s going to be transparency.”

That transparency may be found through a gold-backed currency system, Karen noted, as, “All of the countries of the world are going to allow precious metals to serve as currency, and this will be an underpinning for paper currency, [as] we’ll have both systems at the same time. This is my guess, as I mentioned—I am an economist.”

As a final comment speaking towards her difficult journey as a World Bank whistle-blower, Karen said, “I’ve been struggling now for years, to tell the American public what’s [been] going on. I haven’t gotten through, because this [financial] group has bought up the press and has been spreading disinformation systematically. That undermines the whole point of a democracy. How can voters vote without an informed opinion, without the information that they’re entitled too? So this strangle-hold on information is going to end in very short order.”

For further background on corruption in the World Bank check out the interview of whistleblower Karen Hudes.

Source: Silver Doctors, NSNBC

Israel Approves Oil Drilling In Syria To Company Part Owned By Rothschild & Murdoch

Comments Off on Israel Approves Oil Drilling In Syria To Company Part Owned By Rothschild & Murdoch

Israel ups the pressure on Syria whose oil and gas in the Levant Basin and Golan Heights are coveted by many companies. According to a U.S. Geological Survey, the Levant Basin contains and estimated 1.7 billion barrels of recoverable oil and 122 trillion cubic feet of gas. Israel has issued Genie Energy a permit to drill for oil within the Golan Heights.

Genie Energy had been issued an exclusive permit on Wednesday by Israel’s Energy and Water Resources Ministry to drill for oil.

This allows for oil exploration in a 153 square mile in the south of Golan Heights.

“Based on its preliminary analysis and interpretation of existing geological data, that the newly issued license area may contain significant quantities of conventional oil and gas in relatively tight formations, the development of which would entail significantly different technical approaches and project timelines than the other projects,” Genie Energy said in a statement.

Israel annexed Golan from Syria in June 1967 after a six-day war, with an estimated 2,500 Syrian fatalities and 591 taken prisoner. Despite being annexed in 1981, this move is not internationally recognised.

Israel-Syria peace talks halted oil permits for the area 20 years ago, with the relinquishment of Golan being one of the key facets. The talks however were never resolved.

But the plot thickens. According to IDT (parent of Genie Energy), both Lord (Jacob) Rothschild and Rupert Murdoch have a stake in the energy company. Interesting how it all plays out.

Genie Energy Corporation (Genie Energy), a division of IDT Corporation (NYSE: IDT, IDT.C), today announced that Lord (Jacob) Rothschild and Rupert Murdoch have each purchased equity stakes in Genie Oil and Gas Inc. Jacob Rothschild will join Rupert Murdoch on Genie Energy’s Strategic Advisory Board and Jacob Rothschild’s interests will partner with Genie Energy to raise capital for the eventual commercialization of its oil shale projects.

Jacob Rothschild and Mr. Murdoch separately purchased equity positions equivalent to a cumulative 5.5% stake in Genie Oil and Gas Inc., which consists of IDT’s interests in American Shale Oil, LLC (AMSO), and Israel Energy Initiatives, Ltd., (IEI), for a total of $11.0 million dollars.

Source: The Telegraph, IDT

German Finance Minister Who Launched Euro, Calls For Its Breakup

Comments Off on German Finance Minister Who Launched Euro, Calls For Its Breakup

euroThat the euro has been a disaster is now beyond question.  Even the German Finance Minister, Oskar Lafontaine who was responsible for Germany launching the euro is now calling for its breakup. He believes countries would unite against Germany, forcing change. Ambrose Evans-Pritchard writes:

Oskar Lafontaine, the German finance minister who launched the euro, has called for a break-up of the single currency to let southern Europe recover, warning that the current course is “leading to disaster”.

“The economic situation is worsening from month to month, and unemployment has reached a level that puts democratic structures ever more in doubt,” he said.

“The Germans have not yet realised that southern Europe, including France, will be forced by their current misery to fight back against German hegemony sooner or later,” he said, blaming much of the crisis on Germany’s wage squeeze to gain export share.


Mr Lafontaine said on the parliamentary website of Germany’s Left Party that Chancellor Angela Merkel will “awake from her self-righteous slumber” once the countries in trouble unite to force a change in crisis policy at Germany’s expense.

His prediction appeared confirmed as French finance minister Pierre Moscovici yesterday proclaimed the end of austerity and a triumph of French policy, risking further damage to the tattered relations between Paris and Berlin.

“Austerity is finished. This is a decisive turn in the history of the EU project since the euro,” he told French TV. “We’re seeing the end of austerity dogma. It’s a victory of the French point of view.”

Mr Moscovici’s comments follow a deal with Brussels to give France and Spain two extra years to meet a deficit target of 3pc of GDP. The triumphalist tone may enrage hard-liners in Berlin and confirm fears that concessions will lead to a slippery slope towards fiscal chaos.

German Vice-Chancellor Philipp Rösler lashed out at the European Commission over the weekend, calling it “irresponsible” for undermining the belt-tightening agenda.

The Franco-German alliance that has driven EU politics for half a century is in ruins after France’s Socialist Party hit out at the “selfish intransigence” of Mrs Merkel, accusing her thinking only of the “German savers, her trade balance, and her electoral future”.

It is unclear whether the EU retreat from austerity goes much beyond rhetoric. Mr Moscovici conceded last week that the budget delay merely avoids extra austerity cuts to close the shortfall in tax revenues caused by the recession.

The new policy allows automatic fiscal stabilisers to kick in, but France will stay the course on the original austerity. “It is not about relaxing the effort to cut spending. There will no extra adjustment just to satisfy a number,” he said.

Mr Lafontaine said he backed EMU but no longer believes it is sustainable. “Hopes that the creation of the euro would force rational economic behaviour on all sides were in vain,” he said, adding that the policy of forcing Spain, Portugal, and Greece to carry out internal devaluations was a “catastrophe”.

Mr Lafontaine was labelled “Europe’s Most Dangerous Man” by The Sun after he called for a “united Europe” and the “end of the nation state” in 1998. The euro was launched on January 1 1999, with bank notes following three years later. He later left the Social Democrats to found the Left Party.

Remember Helmut Kohl’s recent comments on introducing the euro in an interview that was conducted by Jens Peter Paul, a German journalist in 2002, but only recently published. Kohl said that he would have lost any popular vote on the euro by an overwhelming majority.

“If a Chancellor is trying to push something through, he must be a man of power. And if he’s smart, he knows when the time is ripe. In one case – the euro – I was like a dictator …

“I knew that I could never win a referendum in Germany,” he said. “We would have lost a referendum on the introduction of the euro. That’s quite clear. I would have lost and by seven to three.”

So there you have it, stuck with a currency that was rammed through against peoples wishes and a completely predictable disaster. Of course a currency union, as the elites point out, cannot work without a fiscal union. That has always been the end game, to hand over all economic power to the EUSSR. In other words a “power grab”. Hegelian dialect, the method to implement something you want by creating a problem which induces a reaction , whereby you already have the solution. After all, the Soviet Union was based on Hegelian dialectic techniques.

Source: The Telegraph

Ron Paul & Jim Rogers: Chaos Up Ahead

Comments Off on Ron Paul & Jim Rogers: Chaos Up Ahead

Hard to argue with common sense especially from 2 heavyweights like Ron Paul and Jim Rogers in this 3 minute clip.

These are clear warnings signs that a rational person simply cannot ignore.

Bottom line, Nations are going bust. And the worse things get, the more desperate their tactics become. This isn’t the first time that the world has been in this position. This time is not different. History shows that there are serious, serious consequences to running unsustainably high debts and deficits. And those consequences have almost invariably involved pillaging people’s wealth, savings, livelihoods and liberties… either directly or indirectly.

What’s happening right now is playing out in textbook fashion. More taxes, more debt, more printing, more confiscation, less freedom. I’m not talking about the end of the world here, I’m talking about difficult times ahead, and the things that go beyond economics. It’s time to face facts and look at how society will change (and has already changed).

Many people will resist the change and instead cling desperately to the old system – the cycle of debt and consumption that provided jobs, stability, and prosperity. These people will have their lives turned upside down because that system is gone forever. And in case it still weren’t obvious, here is three minutes of clarity from Ron Paul and Jim Rogers…”I would expect that there is going to be a lot more chaos still to come.” – Ron Paul; “They won’t take our bank accounts…they will take our retirement accounts.” – Jim Rogers

Via Simon Black of Sovereign Man blog,

The world is truly an enormous place… and, despite the dearth of good news and positive trends out there, I still see a lot of amazing opportunities in my travelsBut it’s really important to remain grounded about the challenges that face us. As I pen this letter to you, in fact,

– The NSA’s Utah data center, which will intercept every phone call, email, and tweet sent across the Internet, is nearing completion.

– The Marketplace Fairness Act, which will create additional sales taxes on US-based Internet transactions, is set to pass the Senate next week.

– The government of Cyprus just passed the final bail-in measures, officially authorizing the direct confiscation of people’s savings in that country’s banking system.

– The Bank of Japan recently announced its intentions to double down on their already unprecedented money printing operations.

– Not to be outdone, the US Federal Reserve just announced that they will maintain their Quantitative Easing program, which dilutes the existing money supply by more than $1 trillion annually.

– At $16.83 trillion, the US federal debt is at a record high and set to breach $17 trillion early this summer.

– President Obama recently proposed to cap the tax deferral benefit on Individual Retirement Accounts in the Land of the Free

These are clear warnings signs that a rational person simply cannot ignore.

Bottom line, nations are going bust. And the worse things get, the more desperate their tactics become.

This isn’t the first time that the world has been in this position. This time is not different.

History shows that there are serious, serious consequences to running unsustainably high debts and deficits. And those consequences have almost invariably involved pillaging people’s wealth, savings, livelihoods and liberties… either directly or indirectly.

What’s happening right now is playing out in textbook fashion. More taxes, more debt, more printing, more confiscation, less freedom.

I’m not talking about the end of the world here, I’m talking about difficult times ahead, and the things that go beyond economics. It’s time to face facts and look at how society will change (and has already changed).

Many people will resist the change and instead cling desperately to the old system– the cycle of debt and consumption that provided jobs, stability, and prosperity. These people will have their lives turned upside down because that system is gone forever.

And in case it still weren’t obvious, I’d like to present Ron Paul and Jim Rogers, speaking together at our event in Chile a few weeks ago, with their own views on the situation.

“They won’t take our bank accounts…they will take our retirement accounts.” – Jim Rogers

“We are going to have a calamity in economics and political crises as economies worldwide are a lot weaker than they tell us.” – Ron Paul

“I would expect that there is going to be a lot more chaos still to come.” – Ron Paul

“There are so many distortions because we disobeyed economic law – no matter what Bernanke tell’s you.” – Ron Paul


“Bernanke’s whole intellectual career has been dedicated to the study of printing money.” – Jim Rogers

 


“I don’t doubt [the confiscation] at all; and they will use force and they’ll use intimidation.” – Ron Paul

Source: ZeroHedgeSovereignMan

Japan Follows US Lead In Crushing Rights As System Breaks Down

Comments Off on Japan Follows US Lead In Crushing Rights As System Breaks Down

Japan under Prime Minister Shinzo Abe is following the US in drafting plans which will attempt to remove peoples rights and impose duties along with beefing up police powers to maintain public order. Abe is drafting changes to the Constitution and specifically aiming to change Article 9 which would looses restrictions on the military. Its a worrying time as Obama recently signed into law the NDAA Act which enables US citizens to be arrested indefinitely without charge or trial and now Japan is making similar moves. The breakdown of the global monetary system is clearly worring the elities.

Reported from ZeroHedge:

If there was ever a clear sign that the leadership of Japan is fully aware that the country is about enter a terminal economic catastrophe this is it. Using the cover of currency devaluation and a rising stock market, Japan’s Prime Minister, Shinzo Abe, is attempting to make it easier to change the country’s constitution so that they can eliminate freedom of speech and set the stage for a military dictatorship.  Reuters reports that:

The draft deletes a guarantee of basic human rights and prescribes duties, such as submission to an undefined “public interest and public order.” The military would be empowered to maintain that “public order.”

…….

 

RIGHTS VS DUTIES

Critics see Abe’s plan to ease requirements for revising the charter and then seek to change Article 9 as a “stealth” strategy that keeps his deeper aims off the public radar.

“The real concern is that a couple of years later, we move to a redefinition of a ‘new Japan’ as an authoritarian, nationalist order,” said Yale University law professor Bruce Ackerman.

The LDP draft, approved by the party last year, would negate the basic concept of universal human rights, which Japanese conservatives argue is a Western notion ill-suited to Japan’s traditional culture and values, constitutional scholars say.

“The current constitution … provides protection for a long list of fundamental rights – freedom of expression, freedom of religion,” said Meiji University professor Lawrence Repeta. “It’s clear the leaders of the LDP and certain other politicians in Japan … are passionately against a system that protects individual rights to that degree.”

The draft deletes a guarantee of basic human rights and prescribes duties, such as submission to an undefined “public interest and public order”. The military would be empowered to maintain that “public order.”

One proposal would ban anyone from “improperly” acquiring or using information about individuals – a clause experts say could limit freedom of speech. A reference to respect for the “family” as the basic social unit hints, say critics, at a revival of a patriarchal system that gave women few rights.

“The constitution is there to tie the hands of government, not put duties on the people,” said Taro Kono, an LDP lawmaker often at odds with his party on policies. “There are some in both houses (of parliament) who don’t really understand the role of a modern constitution.”

ZeroHedge sums it up in one line

Let’s see, print money, make the stock market go up and keep people servile as you destroy the country and rip up the Constitution.  Sound familiar?

 

Source: ZeroHedge, Reuters

Arizona Makes Gold & Silver Legal Tender

Comments Off on Arizona Makes Gold & Silver Legal Tender

Arizona follows Utah’s lead by making gold and silver legal tender.  More than a dozen states have considered similar moves in the last few years. This is a further kick in the stones for people’s faith in the US dollar since Central Bankers have gone full retard with the printing presses. At least now in Arizona there is an alternative that cannot be inflated so easily. Watch this space as more will undoubtedly follow.

 

PHOENIX (Reuters) – The Arizona Senate on Tuesday approved a measure to make gold and silver legal currency in the state, in a response to what backers said was a lack of confidence in the international monetary system.

The legislation cleared the Republican-controlled Senate by an 18-10 vote after being approved by the state House earlier this month. It now goes to Republican Governor Jan Brewer, who has not indicated if she will sign it into law or veto it.

The bill calls for Arizona to make gold and silver coins and bullion legal tender beginning in mid-2014, joining existing U.S. currency issued by the federal government.

If signed into law, Arizona would become the second state in the nation to establish these precious metals as legal tender. Utah approved such legislation in 2011.

More than a dozen states have considered similar legislation in recent years, according to the National Conference of State Legislatures.

The use of gold and silver as currency would be strictly voluntary, with businesses left free to accept the precious metals as payment for goods and services as they choose.

State Senator Chester Crandell, a Republican and sponsor of the bill, said the ability to use gold and silver in everyday life in the state is still a “work in progress” and that more legislation was needed before it could be viable.

“This is the first step in getting it into the statute so we can build on it,” Crandell said at an earlier hearing on the bill.

But Democratic state Senator Steve Farley said the bill could create massive problems for businesses in the state and government officials trying to administer what would in effect be a dual monetary system.

“There’s no reason for us to do this,” Farley told lawmakers during the final vote on Tuesday. “This is another one of those things that gets national press for us – and not in a good way.”

He also pointed to the recent decline in the value of gold – which sank to $1,321.35 per ounce on April 16, its lowest price in more than two years – noting that “anybody who thinks gold or silver is a really safe place to put your money had better think again.”

The push to establish gold and silver as currency has become increasingly popular in the United States in recent years among some hardline fiscal conservatives, with the backing of groups including the Tea Party movement, American Principles Project and the Gold Standard Institute.

Keith Weiner, president of the Gold Standard Institute advocacy group and a supporter of the bill, said the legislation was needed to counter what he sees as insolvency in the global monetary system.

“The dollar system and all of the other derivative currencies, including the euro, are a recipe for worldwide bankruptcy,” Weiner told lawmakers at an earlier hearing, adding that a “sound and honest money system such as gold and silver” was needed to bring stability.

Source: Yahoo

Fed Has No Plan B

Comments Off on Fed Has No Plan B

According to Kevin Warsh,( former member of the Board of Governors of the Federal Reserve from from 2006 to 2011), the Fed has no “plan B” and Washington has no strategies for growth. Well one thing is for sure, whatever they are trying, it ain’t working.

At the very crux of the financial crisis, former Fed governor Kevin Warsh notes, “experimental extreme monetary policy,” had the “right risk-reward”, but, he warns, in this excellent (and somewhat chilling) discussion at the Milken Institute, “we left a financial crisis more than for years ago.” While the politicians may ‘prefer’ to think of this as a crisis – and indeed “for them it is a crisis as they preside over an economy that refuses to grow,” which has tended to lead to loss of office, but, Warsh condemns, “they have run out of excuses.” Over the last several years, “[the Fed] has over-promised and under-delivered,” and the bank’s most important asset – credibility – is under attack.

The Fed has “enabled” Washington to do nothing, since the politicians expect the same “rabbit out of the hat” rescue that occurred in the darkest days of the financial crisis. This means no growth strategies (“the mix of policies has to be right”) will occur. Since the financial crisis, Washington has done its level best to focus on GDP in the next quarter, or perhaps the election, and precious little beyond that short-term horizon. Warsh concludes, “There Is No Plan B.”

The Fed has fewer degrees of freedom and the rest of Washington is not coming to the rescue; and furthermore “the ability of a central bank, exclusively, without the rest of Washington doing any bit of the task, to turn an economy from a modest recovery to a robust one is an experiment that is untested – and will not prove to be successful.

Click for full story.

Source: ZeroHedge

%d bloggers like this: