Buddhist Economics: How to Start Prioritizing People Over Products and Creativity Over Consumption


“Work and leisure are complementary parts of the same living process and cannot be separated without destroying the joy of work and the bliss of leisure.”

Much has been said about the difference between money and wealth and how we, as individuals, can make more of the latter, but the divergence between the two is arguably even more important the larger scale of nations and the global economy. What does it really mean to create wealth for people — for humanity — as opposed to money for governments and corporations?

That’s precisely what the influential German-born British economist, statistician, Rhodes Scholar, and economic theorist E. F. Schumacher explores in his seminal 1973 book Small Is Beautiful: Economics as if People Mattered (public library) — a magnificent collection of essays at the intersection of economics, ethics, and environmental awareness, which earned Schumacher the prestigious Prix Européen de l’Essai Charles Veillon award and was deemed by The Times Literary Supplement one of the 100 most important books published since WWII. Sharing an ideological kinship with such influential minds as Tolstoy and Gandhi, Schumacher’s is a masterwork of intelligent counterculture, applying history’s deepest, most timeless wisdom to the most pressing issues of modern life in an effort to educate, elevate and enlighten.

One of the most compelling essays in the book, titled “Buddhist Economics,” applies spiritual principles and moral purpose to the question of wealth. Writing around the same time that Alan Watts considered the subject, Schumacher begins:

“Right Livelihood” is one of the requirements of the Buddha’s Noble Eightfold Path. It is clear, therefore, that there must be such a thing as Buddhist economics.

[…]

Spiritual health and material well-being are not enemies: they are natural allies.

Traditional Western economics, Schumacher argues, is bedeviled by a self-righteousness of sorts that blinds us to this fact — a fundamental fallacy that considers “goods as more important than people and consumption as more important than creative activity.” He writes:

Economists themselves, like most specialists, normally suffer from a kind of metaphysical blindness, assuming that theirs is a science of absolute and invariable truths, without any presuppositions. Some go as far as to claim that economic laws are as free from “metaphysics” or “values” as the law of gravitations.

From this stems our chronic desire to avoid work and the difficulty of finding truly fulfilling work that aligns with our sense of purpose. Schumacher paints the backdrop for the modern malady of overwork:

There is universal agreement that a fundamental source of wealth is human labor. Now, the modern economist has been brought up to consider “labor” or work as little more than a necessary evil. From the point of view of the employer, it is in any case simply an item of cost, to be reduced to a minimum if it cannot be eliminated altogether, say, by automation. From the point of view of the workman, it is a “disutility”; to work is to make a sacrifice of one’s leisure and comfort, and wages are a kind of compensation for the sacrifice. Hence the ideal from the point of view of the employer is to have output without employees, and the ideal from the point of view of the employee is to have income without employment.

The consequences of these attitudes both in theory and in practice are, of course, extremely far-reaching. If the ideal with regard to work is to get rid of it, every method that “reduces the work load” is a good thing. The most potent method, short of automation, is the so-called “division of labor”… Here it is not a matter of ordinary specialization, which mankind has practiced from time immemorial, but of dividing up every complete process of production into minute parts, so that the final product can be produced at great speed without anyone having had to contribute more than a totally insignificant and, in most cases, unskilled movement of his limbs.

Schumacher contrasts this with the Buddhist perspective:

The Buddhist point of view takes the function of work to be at least threefold: to give a man a chance to utilize and develop his faculties; to enable him to overcome his ego-centeredness by joining with other people in a common task; and to bring forth the goods and services needed for a becoming existence. Again, the consequences that flow from this view are endless. To organize work in such a manner that it becomes meaningless, boring, stultifying, or nerve-racking for the worker would be little short of criminal; it would indicate a greater concern with goods than with people, an evil lack of compassion and a soul-destroying degree of attachment to the most primitive side of this worldly existence. Equally, to strive for leisure as an alternative to work would be considered a complete misunderstanding of one of the basic truths of human existence, namely that work and leisure are complementary parts of the same living process and cannot be separated without destroying the joy of work and the bliss of leisure.

From the Buddhist point of view, there are therefore two types of mechanization which must be clearly distinguished: one that enhances a man’s skill and power and one that turns the work of man over to a mechanical slave, leaving man in a position of having to serve the slave.


E.F. Schumacher

With an undertone of Gandhi’s timeless words, Schumacher writes:

Buddhist economics must be very different from the economics of modern materialism, since the Buddhist sees the essence of civilization not in a multiplication of wants but in the purification of human character. Character, at the same time, is formed primarily by a man’s work. And work, properly conducted in conditions of human dignity and freedom, blesses those who do it and equally their products.

But Schumacher takes care to point out that the Buddhist disposition, rather than a condemnation of the material world, is a more fluid integration with it:

While the materialist is mainly interested in goods, the Buddhist is mainly interested in liberation. But Buddhism is “The Middle Way” and therefore in no way antagonistic to physical well-being. It is not wealth that stands in the way of liberation but the attachment to wealth; not the enjoyment of pleasurable things but the craving for them. The keynote of Buddhist economics, therefore, is simplicity and non-violence. From an economist’s point of view, the marvel of the Buddhist way of life is the utter rationality of its pattern — amazingly small means leading to extraordinarily satisfactory results.

This concept, Schumacher argues, is extremely difficult for an economist from a consumerist culture to grasp as we once again bump up against the warped Western prioritization of productivity over presence:

[The modern Western economist] is used to measuring the “standard of living” by the amount of annual consumption, assuming all the time that a man who consumes more is “better off” than a man who consumes less. A Buddhist economist would consider this approach excessively irrational: since consumption is merely a means to human well-being, the aim should be to obtain the maximum of well-being with the minimum of consumption.

[…]

The ownership and the consumption of goods is a means to an end, and Buddhist economics is the systematic study of how to attain given ends with the minimum means.

[Western] economics, on the other hand, considers consumption to be the sole end and purpose of all economic activity, taking the factors of production — land, labor, and capital — as the means. The former, in short, tries to maximize human satisfactions by the optimal pattern of consumption, while the latter tries to maximize consumption by the optimal pattern of productive effort.

This maximization of “human satisfactions,” Schumacher argues, is rooted in two intimately related Buddhist concepts — simplicity and non-violence:

The optimal pattern of consumption, producing a high degree of human satisfaction by means of a relatively low rate of consumption, allows people to live without great pressure and strain and to fulfill the primary injunctions of Buddhist teaching: “Cease to do evil; try to do good.” As physical resources are everywhere limited, people satisfying their needs by means of a modest use of resources are obviously less likely to be at each other’s throats than people depending upon a high rate of use. Equally, people who live in highly self-sufficient local communities are less likely to get involved in large-scale violence than people whose existence depends on worldwide systems of trade.

Writing shortly after Rachel Carson’s Silent Spring sparked the modern environmental movement, Schumacher presages the modern groundswell of advocacy for sustainable locally sourced products:

From the point of view of Buddhist economics … production from local resources for local needs is the most rational way of economic life, while dependence on imports from afar and the consequent need to produce for export to unknown and distant peoples is highly uneconomic and justifiable only in exceptional cases and on a small scale.

He concludes by framing the enduring value of a Buddhist approach to economics, undoubtedly even more urgently needed today than it was in 1973:

It is in the light of both immediate experience and long-term prospects that the study of Buddhist economics could be recommended even to those who believe that economic growth is more important than any spiritual or religious values. For it is not a question of choosing between “modern growth” and “traditional stagnation.” It is a question of finding the right path to development, the Middle Way between materialist heedlessness and traditionalist immobility, in short, of finding “Right Livelihood.”

Small Is Beautiful is a superb read in its entirety. Complement it with Kurt Vonnegut on having enough and Thoreau on redefining success.

Thanks, Jocelyn

https://www.brainpickings.org/2014/07/07/buddhist-economics-schumacher/

5 26 16 Bill Ballard ~ Money VS True Currency Ascension ~ Coming out of the Matrix


Important message regarding the RV and what currency really IS – it’s not about waiting for a currency reset, it’s about imagining – CO-Creating a new paradigm based on your “energetic value”…Are You Creating a New Paradigm or ReCreating the Old?
 
 

Bix Weir-USA Must Unite or Die Under Trump/Sanders Ticket Greg Hunter


Financial analyst Bix Weir wrote a recent article that said a “Trump/Sanders ticket would galvanize the nation.” A Trump/Sanders ticket this fall for the White House? Sound crazy? Weir predicts that things will get so bad “the USA must Unite or Die.” Weir contends, “If Trump wins it alone, you are going to see a revolution overnight. You are going to see mass rioting in the streets because there are so many people disenfranchised and angry. Where is the anger going to be placed when people lose their 401-Ks, checking accounts and savings accounts? The banks and the rich. You cannot have Trump leading us forward after that moment. You need both. You need the left and you need the right. I think Sanders and Trump have some kind of back deal going on with the people who are leading their campaigns. They are going to come together when this chaos happens. . . . Any other scenario and you can kiss the United States goodbye in a blink of an eye. The key is, with these guys (Trump and Sanders), they both love their country. They approach it in different ways, but they both love their country.”

Weir expects his timeline to hit a financial crescendo in the September/October time frame. Weir says, “The Fed and the Treasury are controlling all markets with computer programs. I have proved this a zillion times. They are doing it with the programs that Alan Greenspan wrote in the 1960’s and 1970’s. It has always been the plan to destroy the dollar and go back to a gold standard.”

Weir ends by saying, “The crash will be electronic. All electronic assets will be frozen and be wiped away. Exchanges will not be open. . . . Nothing will be open and nothing will reopen. We will get rid of the nanny state. . . . There is no way we are ever going to pay off this debt. If there is a crash in the markets, and all the debts and electronic assets were wiped clean, we would win. The U.S. is the largest debtor nation in the world. That was always the plan.”

Join Greg Hunter as he goes One-on-One with Bix Weir founder of RoadtoRoota.com.

All links can be found on USAWatchdog.com: http://usawatchdog.com/all-electronic…

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Geoengineering Watch Global Alert News, May 21, 2016 ( geoengineeringwatch.org )


http://GeoengineeringWatch.org
TO READ OR POST COMMENTS ON THIS VIDEO, PLEASE GO DIRECTLY TO THE ARTICLE http://www.geoengineeringwatch.org/ge…
Nature is unimaginably resilient, but when the breaking point is reached, collapse comes at blinding speed. The human race has already pushed the planet past the point of no return in countless ways, we are truly in uncharted territory. Is there any effort whatsoever on the part of those in power to slow the destruction of the biosphere? None. The race for resources and total control is worse than ever before, lines in the sand are being drawn all over the globe. Canada, India, and other regions around the world continue to incinerate. Oceans, reefs, kelp, and fish, continue to die. Coastal cities are pumping out from rising sea levels with sewage now filling the waters off Miami.

Brazil has just joined the list of democratically elected governments that have been ousted by western powers and interests in pursuit of more power and resources. There are yet more front-line signs of the coming crash of industrialized civilization, Caterpillar (the world’s largest equipment manufacturer) has just past the 41st consecutive month of declining sales. This is the real economy, the stock market is an illusion that will soon be shattered. Venezuela is still free-falling into total chaos while Americans remain largely asleep at the wheel. Even with the global climate disintegrating, how many are actually taking action?

What would happen if every single one of us put all our available effort and energy into the fight for the greater good? The most dire and potentially uniting issue on the planet is the fight to expose and halt the climate engineering assault, let’s all renew our efforts to sound the alarm.
https://www.facebook.com/dane.wigingt…

Note: If you have any doubt about Dane’s feedback on the severity of climate change and the dire need for action, watch this. Among other Xtreme climate events, “unexplained explosions around the world” are a good indication the gaseous expulsion event is increasing at an exponential rate. Hold on to your hats and be prepared for anything, have a plan.

SOTT Earth Changes Summary – April 2016: Extreme Weather, Planetary Upheaval, Meteor Fireballs

Enter The Buzzsaw ~ Surviving the Next Economic Collapse with Trade Genius’ Bob Kudla


How to survive the next economic collapse, and where to invest your money to maximize the value of the stock market is explored with Trade Genius founder Bob Kudla. Has the economy reached a tipping point? Is collapse predictable? And what about our financial system makes it so prone to crisis? Take a hard look at the economy and your own resources, as we explore the dark truth of money, on this uncensored Buzzsaw interview hosted by Sean Stone.

Make up to $10k per week with this secret system!
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Bob Kudla lives in Southern California. He makes a living trading stocks from his home with a beautiful view of the Pacific Ocean. An experienced stock-trader, Kudla is the author of “Stock Volatility Money Machine.

ADD’L LINKS:
https://tradegenius.co/
http://thetradegenius.blogspot.com/
https://www.amazon.com/Stock-volatili…
http://www.enterthebuzzsaw.com/
https://www.youtube.com/c/Buzzsawwith…
Buzzsaw Full Episodes:
https://www.youtube.com/watch?v=9wJjI…
Buzzsaw Interview Highlights:
https://www.youtube.com/watch?v=QEl8P…
Buzzsaw Secret Societies Illuminated Playlist:
https://www.youtube.com/playlist?list…
Metaphysics and Visionary Spirituality on Buzzsaw Playlist:
https://www.youtube.com/playlist?list…
Shadow Government Revealed on Buzzsaw:
https://www.youtube.com/playlist?list…
Alien Truth on Buzzsaw Playlist:
https://www.youtube.com/playlist?list…
More Buzzsaw Interview Highlights:
https://www.youtube.com/watch?v=bpVpd…
https://www.facebook.com/EnterTheBuzz…
https://www.facebook.com/thelip.tv
http://www.youtube.com/theliptv
https://www.youtube.com/channel/UC25k…

EPISODE BREAKDOWN:
00:01 Welcoming Bob Kudla to Buzzsaw.
00:33 What is Trade Genius?
03:33 Is the financial system sustainable, or destined to fail? 8 year cycles.
06:30 Predicting a collapse–from food prices to weather impact.
10:36 Credit deflation, collapse, and debt.
12:31 Federally forcing participation, and bank bail-ins.
14:00 A tipping point in Europe and beyond.
16:04 Negative interest explained.
17:10 Bitcoin and alternate currencies against the federal reserve and banks.
19:15 Finding more information.
20:36 Thanks and goodbye.

Catherine Austin Fitts-Painful Process Coming for America Not Going to Be Pretty Catherine Austin Fitts-Painful Process Coming for America Not Going to Be Pretty ~ Greg Hunter Greg Hunter


It’s official. Total fraud is propping up every corner of the global economy. Former Bush Administration (41) Assistant Secretary of Housing, Catherine Austin Fitts says, “Here’s the problem with this situation, and it’s mind boggling. When you have an economy on a managed basis, and get this far away from a market economy, the problem is the primary trend in the dollar, bonds, stocks, and gold is . . . totally in question and can go either way. A lot of it is because you have a politically managed system and not a market economy. The more you politically manage it, the lower the productivity goes. So, it is really a house of cards. The money managers are looking at this, and they are very nervous and for good reason. A politically managed system is not as robust and healthy as one managed by market economics. . . . You have a failure of the political system to face and manage and deal with what is going on. . . . We have managed this system by being more and more and more secret. George H. W. Bush said the other day that the American people can’t handle the truth. I think they can handle the truth, and one of the reasons I am encouraged by Trump is he is going to start bringing more of it out. That’s what we need. It’s the only way we can get out of this. We are being killed by a politically managed system that is being driven by more and more privilege and more and more secrecy. We’ve got to go to transparency, and it’s going to be a very painful process for the American people. It’s not going to be pretty. The game of musical chairs is upon us. It’s not coming, it’s here.”

Join Greg Hunter as he goes One-on-One with investment banker Catherine Austin Fitts, creator of The Solari Report.

All links can be found at USAWatchdog.com: http://usawatchdog.com/trump-is-free-…

Silent Coup Beginning to Overtake America Now-Larry Nichols


By Greg Hunter’s USAWatchdog.com 

larry-nichols-300x155

Former Clinton insider Larry Nichols has worked with, and now against, the Clintons. Nichols has some of the top political and financial connections on the planet.  Nichols hopes the public is finally realizing the enormous power struggle going on.  Nichols explains, “There is no two-party system in the United States of America.  Let’s get that straight.  There is no two-party system, there is one.  Part of it is a red team and part of it is a blue team.   You think you have a choice, but as you know you only have a choice between the two they give you to vote for, but here comes Trump.  Trump doesn’t need their money . . . he will bust up the system, and he will not only bust up the system for the Republican Party, but he will bust up the system (for both parties).  So, there are many establishment Republicans that have said they would rather vote for Hillary than Trump. . . . They must maintain status quo of the system for these power elite people to stay where they want to be.”

Nichols goes on to say, “We are at the beginning of a velvet or silent coup. It’s been going on for years.  There’s been a slow subtle takeover of our form of government, starting years and years ago, but it is coming to an end.  That’s why there is this power play now.  It’s more aggressive than you have seen before.  If we don’t stop Hillary, it’s over.  Is Trump the answer to all of our problems?  I don’t know.  Here’s what I do know about Donald Trump.  Donald Trump is not in the system.  How do I know that?  As hard as they are working to keep him out is a pretty good recommendation for me.  He’s not one of them.  He might be a good president.  When you mention Hillary or the establishment, there is no ‘might.’  With them, we would get what we have been getting but only worse.  There is not a ‘might’ there.”

Nichols says the good news might come in the general election in November. Nichols explains, “The American voters’ vote counts in the general election.  Remember that.  The play in the system has always been to trick it in the primaries and get both people that are the same but different colors.  The general election has always been set up where people do get to vote, and they will get to pick the lessor of two evils.  This time, it’s different.  This time, the American voters can make a difference if Trump can stay in and actually get the nomination.”

On the teetering financial system, Nichols says, “One of the five major banks has way too much of that $72 billion Puerto Rican debt. It might not sink them, but it may cause a problem.  If one of the major banks took a hit like that. . . . The FDIC just said it does not have enough liquidity if two major banks went into default.  If one of the major banks falls or if one major bank was getting ready to take a nose dive, people would run on all the banks wouldn’t they?  If everybody tried to cash their money out of the banks at one time, they would get about 6 cents on the dollar.  You think you got a $100,000 protected in the bank—you don’t.”

Nichols, who is currently undergoing treatments for lung cancer, also says, “I believe President Obama doesn’t really want to leave. Now, how could he stay?  It only takes a crisis.  If a national crisis is declared . . . FEMA comes in.  Most people don’t even know about the FEMA provisional plan.  In case a meteor hits America and we go into a national crisis, FEMA has already got a plan in place ready to go where they will set up a provisional government.  So, if the banks were to start collapsing, guess what Obama would do?

He’d go to Congress and get them to vote and boom, in comes the provisional FEMA government, which makes the president . . . king.”

Join Greg Hunter as he goes One-on-One with former Clinton insider Larry Nichols.

(There is much, much more in the extensive video interview.)

After the Interview:

You can follow Larry on his Facebook page. He also has a radio show he uploads on YouTube.  It’s called Larry Nichols Live. If you want to donate to help Larry Nichols with his lung cancer treatments, you can do so on PayPal. The address to use to donate is NicholsLive@aol.com.

(Programming note: There will be no Weekly News Wrap-Up (WNW) this week. The Larry Nichols interview is taking the place of the WNW and the “Early Sunday Release.”  The next post will be on Tuesday night (5/10/16) after midnight.)

A New Digital Cash System Was Just Unveiled At A Secret Meeting For Bankers In New York


By Michael Snyder, on May 2nd, 2016

Secret - Public DomainLast month, a “secret meeting” that involved more than 100 executives from some of the biggest financial institutions in the United States was held in New York City.  During this “secret meeting“, a company known as “Chain” unveiled a technology that transforms U.S. dollars into “pure digital assets”.  Reportedly, there were representatives from Nasdaq, Citigroup, Visa, Fidelity, Fiserv and Pfizer in the room, and Chain also claims to be partnering with Capital One, State Street, and First Data.  This “revolutionary” technology is intended to completely change the way that we use money, and it would represent a major step toward a cashless society.  But if this new digital cash system is going to be so good for society, why was it unveiled during a secret meeting for Wall Street bankers?  Is there something more going on here than we are being told?

None of us probably would have ever heard about this secret meeting if it was not for a report in Bloomberg.  The following comes from their article entitled “Inside the Secret Meeting Where Wall Street Tested Digital Cash“…

On a recent Monday in April, more than 100 executives from some of the world’s largest financial institutions gathered for a private meeting at the Times Square office of Nasdaq Inc. They weren’t there to just talk about blockchain, the new technology some predict will transform finance, but to build and experiment with the software.

By the end of the day, they had seen something revolutionary: U.S. dollars transformed into pure digital assets, able to be used to execute and settle a trade instantly. That’s the promise of a blockchain, where the cumbersome and error-prone system that takes days to move money across town or around the world is replaced with almost instant certainty.

So it is not just Michael Snyder from The Economic Collapse Blog that is referring to this gathering as a “secret meeting”.  This is actually how it was described by Bloomberg.  And I think that there is a very good reason why this meeting was held in secret, because many in the general public would definitely be alarmed by this giant step toward a cashless society.  Here is more on this new system from Bloomberg

While cash in a bank account moves electronically all the time today, there’s a distinction between that system and what it means to say money is digital. Electronic payments are really just messages that cash needs to move from one account to another, and this reconciliation is what adds time to the payments process. For customers, moving money between accounts can take days as banks wait for confirmations. Digital dollars, however, are pre-loaded into a system like a blockchain. From there, they can be swapped immediately for an asset.

“Instead of a record or message being moved, it’s the actual asset,” Ludwin said. “The payment and the settlement become the same thing.”

Why this is so alarming is because we are seeing other major moves toward a cashless system all over the planet.  In Sweden, 95 percent of all retail transactions are already cashless, and ATM machines are being removed by the hundreds.  In Denmark, government officials actually have a stated goal of “eradicating cash” by the year 2030.  And in Norway, the biggest bank in the country has publicly called for the complete elimination of all cash.

Other nations in Europe have already banned cash transactions over a certain amount. Here are just a couple of examples

As I have written about previously, cash transactions of more than 2,500 euros have already been banned in Spain, and France and Italy have both banned all cash transactions of more than 1,000 euros.

Little by little, cash is being eradicated, and what we have seen so far is just the beginning. 417 billion cashless transactions were conducted in 2014, and the final number for 2015 is projected to be much higher.

The global push toward a cashless society is only going to intensify, because banks and governments both tend to really like the idea of such a system.

Banks really like the concept of a cashless society because it would force everyone to be their customers.  There would be no more hiding cash in a mattress at home or trying to pay all of your bills with paper money.  Under a cashless system, we would all be dependent on the banks, and they would make lots of money whenever we swiped our cards or our “chips” were scanned.

Governments see a lot of advantages in a cashless society as well.  They tell us that they would be able to crack down on drug dealers, tax evaders, terrorists and money launderers, but the truth is that it would enable them to watch, track, monitor and control virtually all of our financial transactions.  Our lives would become open books to the government, and financial privacy would be a thing of the past.

In addition, the potential for tyranny would be absolutely off the charts.

Just imagine a world where the government could serve as the gatekeeper for who is allowed to use the cashless system and who is not.  They could require that we all submit to some sort of government-issued form of identification before being permitted to operate within the system, or it is even conceivable that a loyalty oath would be required.

Of course if you did not submit to their demands, you could not buy, sell, open a bank account or get a job without access to the cashless system.

Hopefully people can understand where this is going.  Paper money is a very important component of our freedom, and if it is taken away from us that will open the door for all sorts of abuse.

Even now, cash is slowly being “criminalized” in America.  For example, if cash is used to pay for a hotel room that is considered by federal authorities to be “suspicious activity” that should be reported to the government.  Of course it isn’t against the law to pay your hotel bill in cash just yet, but according to the government it is something that “terrorists” do so it needs to be closely watched.

It doesn’t take a whole lot of imagination to see where all of this is going.  And for those of us that understand what time it is, this is a clear indication that it is getting late in the game.

*About the author: Michael Snyder is the founder and publisher of The Economic Collapse Blog. Michael’s controversial new book about Bible prophecy entitled “The Rapture Verdict” is available in paperback and for the Kindle on Amazon.com.*

RED ALERT WARNING: THIS IS YOUR LAST CHANCE — Bill Holter ~ SGTreport.com


Note: My feeling about all the “economic collapse” warnings, is that there’s an X-Factor that most analysts aren’t aware of in relation to negotiations with ET races who are here assisting humanity thru the coming shift. IMO there’s a Divine plan unfolding to recover humanity’s stolen assets and restructure the global economy to a system of abundance vs scarcity. How it will look or function is anyone’s guess. The key here is in knowing that all your needs will be met easily, and in learning how to manifest our abundance without doubt or fear.

Much love, Annette

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Friends, this interview with JS Mineset’s Bill Holter is not for the faint of heart. It contains information you absolutely must share with your friends and family, no matter how closed-minded they are, no matter how many times you may have tried to warn them in the past. This may well be their last chance to protect themselves from an economic calamity so severe that they will never recover.

Holter warns, “I think what we are looking at is an EVENT that you’re not going to be able to recover from. If this market snaps and the markets close, and you’re not in position, you’re out. You’re out for the rest of your life. This is going to be an EVENT that you can’t recover from.”

As readers of SGT Report know, Silver is the best performing commodity asset of 2016 thus far, and there are some very quantifiable, very important reasons for it. This may well be your last chance to protect yourself from what is coming.

For REAL News & Information 24/7:
http://sgtreport.com/
http://thelibertymill.com/

MUSIC CREDIT:
Chris Zabriskie “Its Always Too”
Licensed under Creative Commons “Attribution 3.0” http://creativecommons.org/licenses/b…”http://creativecommons.org/licenses/b

The content in my videos and on the SGTbull07 – SGTreport.com channel are provided for informational purposes only. Use the information found in these videos as a starting point for conducting your own research and conduct your own due diligence BEFORE making any significant investing decisions. SGTbull07 – SGTreport.com assumes all information to be truthful and reliable; however, I cannot and do not warrant or guarantee the accuracy of this information. Thank you.

SILVER BREAKS OUT Amidst Global Economic CHAOS – Andy Hoffman ~ SGTreport.com


China launched its Yuan-denominated Gold fix TODAY as the world moves away from the criminally corrupt LBMA paper gold and silver FIXES — and what do we see? Silver breaking out to 10-month highs today, as the Chinese buy PHYSICAL silver! Meanwhile Deutsche Bank prepares itself for Billion dollar lawsuits for its role in the criminal conspiracy to rig the prices of both gold and silver. Andy Hoffman joins me to discuss. Thanks for tuning in.

As the economic collapse accelerates, home invasions for FOOD start appearing in the press… hungry people raiding homes incite NJ chaos ~ Natural News


Note: This is not about fear, it’s about being prepared. Single women with children, the disabled/sick and the elderly are most at risk. The writings on the wall, please get out of the cities NOW for your own safety. It’s time to ask yourself what’s most important, if you have to sell everything you own…so be it. Maybe it’s time to let go of the old, to bring in the new.

Besides, you’ll be soooo much happier in the country with small town living and plenty of green grass under your feet. Or desert, or sand…you get the picture. Much love, {~A~}:)

Monday, April 25, 2016 by: Sarah Landers

Economic collapse

(NaturalNews) According to a heartbreaking report by All Self Sustained, an elderly man was threatened with a knife last month by a man and a woman in a home invasion – the pair were looking to steal food.

71-year-old Luis Rosales answered the door of his New Jersey apartment in the afternoon and was confronted by a man and woman who were armed with an eight-inch kitchen knife. The pair forced themselves inside, threatening Rosales with death if he made too much noise.

The suspects used pepper spray to affect Rosales’ vision before ransacking his apartment and raiding his fridge, telling Rosales that they were hungry. They also took his wallet.

A sign of things to come?

The report shows that a combination of “the economy and lack of social civility” has started to reach a level where US citizens are now robbing food from other people, as reported by All Self Sustained. This might only be the beginning – the economy is on the verge of collapse; unemployment continues to be a major problem; and wage growth is stagnant.

It is thought that 45 million Americans are now relying upon food stamps, and civil uprising caused by the removal of government-issued food stamps is considered to be a huge threat to society as we know it. And it’s not just the US economy that’s suffering – the world economy is also in complete crisis.

According to the World Socialist Web Site, more than 1 million people in the US may soon lose their government food stamp benefits if they fail to meet work requirements. In a government move that could stimulate the economy by encouraging employment while saving taxpayer money, there will soon be a three-month limit on food stamp benefits for unemployed adults aged 18–49 who are not classified as disabled or raising minors; critics, however, claim the move could increase crime and hunger.

The recent home invasion by the suspects searching for food reinforces the idea that hunger and food insecurity are on the rise. According to statistics by Feeding America, as reported by the World Socialist Web Site, 48.1 million Americans are currently living in a food-insecure household. Food banks gave away 4 billion pounds of food last year, and on the basis of the cutoffs being implemented soon, social service and food banks are preparing for a massive influx of hungry people.

American Conservative Daily News reports that the US is on the verge of the “greatest food crisis in history,” explaining that certain types of food are already becoming more difficult to find and that the price of certain foods, for example meat, has shot up. The cost of eating has increased at a time when the economy is in collapse and this will mean an increased risk of riots and civil unrest – as well as an increase in the number of hungry Americans.

Crime rates will increase as well, as seen by the recent home invasion, meaning that there could be some very dark times ahead if the economy does not improve. As there could be tough times ahead, it’s important that you prepare to become self-reliant now. Learn more by signing up for the Self Reliance Summit!

Sources include:

AllSelfSustained.com

WorldSocialistWebSite.com

AmericanConservativeDailyNews.com

Bankers & Finance Ministers Around The World Are Attending Emergency Meetings In D.C. – Episode 944a ~ X22Report


Check Out The X22 Report Spotlight YouTube Channel – https://www.youtube.com/channel/UC1rn…

Get economic collapse news throughout the day visit http://x22report.com
Report date: 04.13.2016

Used car prices falling, inventories building up, new car sales slowing, a disaster in the making. Retail sales decline back to 2005 levels.Business inventories slide and sale decline. Baltic Dry Index pushes back up to 555, but this is still at an all time low. Obama now allowing law students and disabled students write off their student loans. This is part of the plan so the US tax payer can bailout the student loan bubble. FDIC reports banks will collapse in the next financial crisis.Bankers and Finance Ministers gathering for meeting in Washington DC. IMF reports a 20% or more drop in the stock market. The economy is about to crash.

All source links to the report can be found on the x22report.com site.

Most of artwork that are included with these videos have been created by X22 Report and they are used as a representation of the subject matter. The representative artwork included with these videos shall not be construed as the actual events that are taking place.

Intro Music: YouTube Free Music: Warrior Strife by Jingle Punks

Fair Use Notice: This video contains some copyrighted material whose use has not been authorized by the copyright owners. We believe that this not-for-profit, educational, and/or criticism or commentary use on the Web constitutes a fair use of the copyrighted material (as provided for in section 107 of the US Copyright Law. If you wish to use this copyrighted material for purposes that go beyond fair use, you must obtain permission from the copyright owner. Fair Use notwithstanding we will immediately comply with any copyright owner who wants their material removed or modified, wants us to link to their web site, or wants us to add their photo.

The X22 Report is “one man’s opinion”. Anything that is said on the report is either opinion, criticism, information or commentary, If making any type of investment or legal decision it would be wise to contact or consult a professional before making that decision.

Rob Kirby-Dollar Devaluation Clock About to Strike Midnight ~ Greg Hunter


Could there be a dramatic and overnight reduction in the value of the dollar? Kirby contends, “I think this is coming in very short order now. The trail of bread crumbs is indicating this is what is afoot right now.”

Does that mean dollar devaluation and a bank “holiday” coming soon? Kirby says, “How quickly this happens is open for conjecture, but that is clearly the direction we are heading. We are unmistakably headed in that direction. The only real question is how long these criminal central bankers can MacGyver the system together and keep it together with elastic bands, paperclips and bungie cords. This is going down. This is going to happen. I think it’s going down in the next two or three weeks. . . .We’ve all speculated that this would eventually happen. Now we are here, and the clock is about to strike midnight.”

What have the President and the VP been told by the Fed Chairman in these emergency meetings this week? Kirby says, “My guess is they are probably explaining to them just how deep the pooh is that they are about to be thrown into. It’s deep, and it’s going to be over their heads. . . . Historically, when banks have nothing else they can do, they take us to war.”

If they don’t take us to war? Kirby says, “Everything is on the table. . . . My thinking is there are an awful lot of U.S. dollars out there right now that are going to be coming home to America. . . . The adjustment in global reserve accounts could create a tsunami of dollars coming back to America in a very, very short period of time. That could trigger something approaching a hyperinflationary event or, at least, stagflation and super inflationary pressure. That’s the minimum occurring very, very soon.”

About the recent revelation of Deutsche Bank suppressing the price of physical gold and silver? Kirby points out, “The price rigging ultimately comes back to and will be shown that it really is an operation of the U.S. Treasury and the U.S. Federal Reserve. . . . The short interests, or the paper sales of precious metals, have been used on purpose to suppress the growing demand for precious metals, or to make it appear that people are still happy with dollars and don’t prefer precious metals to dollars. . . . Whether the U.S. central bank declares that gold or silver are not money in some hubris filled silliness doesn’t diminish the fact that gold and silver are money, and your U.S. Constitution says gold and silver are money.”

Join Greg Hunter as he goes One-on-One in a pivotal interview with Rob Kirby of KirbyAnalytics.com.

All links can be found on USAWatchdog.com: http://usawatchdog.com/tsunami-of-dol…

http://usawatchdog.com/donations/

CHINA SAYS “NO DOLLARS” FOR NEW YUAN


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In a shocking move likely to crush the US economy overnight, China is refusing to make its new gold-backed Yuan, convertible from or to US Dollars.  The new Yuan will be introduced next Tuesday, April 19.

When the International Monetary Fund (IMF) agreed to add the Yuan to the basket of world currencies used for Global Reserves and International Trade, they wanted China to make the Yuan more reliable as a currency. Since then, China has almost un-pegged its Yuan from the Dollar, allowing its value to fluctuate on world markets.

But for years, China has been amassing huge amounts of gold bullion; some have said their appetite for bullion has been “staggering.”  And with a new gold-backed Yuan to be issued next Tuesday, the entire world will have a choice of a new currency to use for international trade:  The old US Dollar which is backed by nothing, or the new Chinese Yuan, which is backed by gold.  Which currency would YOU use?

When this new currency is issued, countries that have been forced to use US Dollars for decades, and have had to keep billions of dollars in their foreign currency reserves, will be free to dump those dollars.  But they won’t be able to dump them to China for the new gold-backed, Yuan!

China has reportedly decided “there can be no conversion of gold-backed Yuan to or from US dollars.”  What China fears is that many countries around the world will want to trade their reserve US dollars  for the new Yuan, leaving China with mountains of worthless US dollars.  China already has several trillion in US dollar reserves and does not want or need more.

If news of this decision by China is correct, then countries around the world may just have to decide whether or not they wish to continue trading with the USA at all?

The upheaval this could cause as early as next week, would be staggering.

This is a fast-=developing story; check back.

 

https://www.superstation95.com/index.php/world/1152

What in the World is Going on with Banks this Week? Emergency meetings, banker summits, crashing European banks……. ZeroHedge


Bruno de Landevoisin's picture


Written by David HaggithThe Great Recession Blog

Just about every major banker and finance minister in the world is meeting in Washington, D.C., this week, following two rushed, secretive meetings of the Federal Reserve and another instantaneous and rare meeting between the Fed Chair and the president of the United States. These and other emergency bank meetings around the world cause one to wonder what is going down. Let’s start with a bullet list of the week’s big-bank events:

  • The Federal Reserve Board of Governors just held an “expedited special meeting” on Monday in closed-door session.
  • The White House made an immediate announcement that the president was going to meet with Fed Chair Janet Yellen right after Monday’s special meeting and that Vice President Biden would be joining them.
  • The Federal Reserve very shortly posted an announcement of another expedited closed-door meeting for Tuesday for the specific purpose of “bank supervision.”
  • A G-20 meeting of finance ministers and central-bank heads starts in Washington, D.C., on Tuesday, too, and continues through Wednesday.
  • Then on Thursday the World Bank and the International Monetary Fund meet in Washington.
  • The Federal Reserve Bank of Atlanta just revised US GDP growth for the first quarter to the precipice of recession at 0.1%.
  • US banks are expected this coming week to report their worst quarter financially since the start of the Great Recession.
  • The press stated that the German government will sue the European Central Bank if it launches a more aggressive and populist form of quantitative easing, often called “helicopter money.”
  • The European Union’s new “bail-in” procedures for failing banks were employed for the first time with Austrian bank Heta Asset Resolution AG.
  • Italy’s minister of finance called an emergency meeting of Italian bankers to engage “last resort” measures for dealing with 360-billion euros of bad loans in banks that have only 50 billion in capital.

President Obama’s meeting with Fed Chair Yellen

It is rare for presidents to meet with the chair of the Federal Reserve. The last time President Obama met with Janet Yellen was in November of 2014, a year and a half ago. It is even more rare for the vice president of the United States to join them. In fact, I’ve heard but haven’t verified that it has never happened in a suddenly called meeting with the Fed before.

For security reasons, the president and vice president don’t regularly attend the same events. There are, of course, many planning sessions or emergency meetings where they do get together, but not with the head of the Federal Reserve. Emergency meetings where the VP is included in the planning session would include situations related to dire national security in case the VP winds up having to take over.

(George Bush and Dick Cheney were exceptional to the point that everyone commented on how often the VP was included in meetings with the president, but I always figured that was because George Bush couldn’t think and speak without Cheney acting as the ventriloquist.)

In fact the meeting with the prez and vice prez is so rare that the White House is bending over backwards to assure the entire nation that the president is not meeting with Yellen to try to influence the Fed, which is required to act independently of politics (so they say).

According to the White House, President Obama is meeting with the Fed chair and Biden to discuss the nation’s “longer-term economic outlook,” even though Yellen just told the entire nation that the economy was strong and had arrived nearly back at “full health.” The president says they will be “comparing notes.” Do their notes about the nation’s outlook disagree?

White House spokesman Josh Earnest said both Obama and Yellen are focused on ways to expand economic opportunities for the U.S. middle class. He called the meeting an opportunity for the two to “trade notes” while emphasizing that Yellen makes decisions about monetary policy independently. (SFGate)

Either such meetings are, indeed, extremely rare, or the White House doth protest to much because they spent more time emphasize what the president was not going to do than what he was going to do in assuring us he will not try to influence Yellen.

“The president has been pleased with the way that she has fulfilled what is a critically important job,” Earnest said. He added that Obama has “the utmost respect for the independent nature of her role.”

Earnest also said that, “even in a confidential setting” Obama would not “have a conversation that would undermine” the Fed’s ability to make “critical financial decisions independently.”

If such meetings with the Fed are so rare they require careful explanation, why the sudden call of the meeting, oddly timed between two specially called, emergency meetings of the Fed — or, at least, “expedited” meetings of the Fed. It can’t just be that the president wants to plan what he will be saying at this week’s G-20 conference, if he’s to speak there. That kind of planning would happen in advance because one knows the conference is coming. One striking peculiarity of the presidents meeting with the Fed is that it appeared to have been called immediately after the Fed announced Monday’s “expedited” meeting of the Board of Governors.

We are in an election cycle, and I already speculated in my last article that, with the anti-establishment, Fed-hating candidates, Sanders and Trump doing so well in their bids for the presidency we could be sure the Administration would be doing all it can along with the Fed to put some accelerant on this economy and forestall the recession that I believe we have already begun.

A recession would prove Trump and Sander right in their statements about a coming recession or the failed actions of the Fed and Wall Street to bring true recovery. So, the Fed and the President have every reason to work together to make sure such an announcement never happens. That could be what “comparing notes” on the economy’s future means — how do we assure the economy doesn’t fall apart in the next few months before the election since we have that common interest?

That would explanation why the White House is saying, in advance of any accusations, that the president isn’t trying to influence the Fed. They want to get ahead of the story. Of course, it could just be that they recognize such rare meetings will lead to the kind of speculation I’m now doing.

Tuesday’s specially called meeting of the Board of Governors under “expedited procedures”

Here is the announcement the Fed posted at the end of last week for Monday’s meeting (italics mine):

Advanced Notice of a Meeting under Expedited Procedures

It is anticipated that the closed meeting of the Board of Governors of the Federal Reserve System at 11:30 AM on Monday, April 11, 2016will be held under expedited procedures, as set forth in section 26lb.7 of the Board’s Rules Regarding Public Observation of Meetings, at the Board’s offices at 20th Street and C Streets, N.W., Washington, D.C. The following items of official Board business are tentatively scheduled to be considered at that meeting.

 

Meeting Date: Monday, April 11, 2016

Matter(s) Considered
1. Review and determination by the Board of Governors of the advance and discount rates to be charged by the Federal Reserve Banks.

A final announcement of matters considered under expedited procedures will be available in the Board’s Freedom of Information and Public Affairs Offices and on the Board’s Web site following the closed meeting.

 

Dated: April 7, 2016

The promised update after the meeting merely added,

Effective April 11, 2016, the meeting was closed to public observation by Order of the Board of Governors 1because the matters fall under exemption(s) 9(A)(i) of the Government in the Sunshine Act (5 U.S.C. Section 552b(c)), and it was determined that the public interest did not require opening the meeting.

One day later, the Fed put out an announcement of another special meeting to be held on Tuesday, after the suddenly scheduled meeting with the president:

Advanced Notice of a Meeting under Expedited Procedures

It is anticipated that the closed meeting of the Board of Governors of the Federal Reserve System at 2:00 PM on Tuesday, April 12, 2016, will be held under expedited procedures, as set forth in section 26lb.7 of the Board’s Rules Regarding Public Observation of Meetings, at the Board’s offices at 20th Street and C Streets, N.W., Washington, D.C. The following items of official Board business are tentatively scheduled to be considered at that meeting.

 

Meeting Date: Tuesday, April 12, 2016

Matter(s) Considered
1. Bank Supervisory Matter

A final announcement of matters considered under expedited procedures will be available in the Board’s Freedom of Information and Public Affairs Offices and on the Board’s Web site following the closed meeting.

 

Dated: April 8, 2016

O.K. Two expedited, closed meetings in a row with a meeting with the president and vice president in between that is so rare it required special White House defense as to what would not be happening in the meeting.

The first meeting was to talk about setting interest rates, which the FOMC will be meeting to consider again later this month, having just postponed their scheduled increase in March. The second meeting is more interesting. If you have served on board or worked with boards that go into closed session, you know they always use the most generic terminology possible when announcing the meeting for sharing in minutes what happened in the meeting.

The fact that it is a bank supervisory matter makes it sound like a particular concern, not a discussion about supervisory policy. Something is the matter somewhere that requires an immediate meeting right after another immediate meeting … behind closed doors. That something regards bank supervision. Board hold closed meetings when they have to talk about specific institutions or individuals with details that they don’t want to go public. This all comes very close to sounding like some bank somewhere is in trouble, and the trouble is big enough to call a special meeting of the very august board of governors right after they just had a special meeting, and if you know these kinds of guys, they don’t like wasting their time in excessive meetings.

Naturally, I am as curious as you probably are about why so many last-minute meetings behind closed doors and with the president and vice president at a time when all central bank heads will be meeting with finance ministers in Washington, D.C. So, I cast about for some possible related stories as to what could be the matter, and I found several very hot ones going on this same week.

The recession that has already begun — Atlanta Fed revises US GDP down AGAIN!

The president’s meeting with the Fed and the Fed’s meetings with the Fed were all called right after the Atlanta Federal Reserve Bank revised the revisions of its previous revisements to say the US economy now looks like it will report in for the first quarter at 0.1% growth.

It seems I cannot write fast enough to keep up with the Federal Reserve’s downward revisions of anticipated GDP growth for the first quarter of 2016. No sooner did I click “publish” on my last article where I noted they have just revised their estimates of GDP down to a 0.4% annualized growth rate than I read an article stating they had revised it again down to 0.1%!

Isn’t this where I said this quarter was going? That is within a rounding error of going negative and is less their margin of error for their data. It was only back in February that the Fed anticipated a cruising speed of 2% growth for GDP in the first quarter. They have revised that number down every week.

Of course, the fact that the Fed and the President called an unscheduled, closed-door meetings to include the VP does not mean there is any connection between the events, and I certainly am not concluding even for myself that there is something dire happening here … but stay with me. There is more to perk the ears.

US banks expected to report worst quarter financially since start of the Great Recession

That’s no small potatoes for a coincidence in timing. What if the numbers to be reported are even worse than has been anticipated, and the Fed is seeing bank trouble in some of those numbers and the President has received advanced information about some of those numbers. All speculation on my part, of course. What isn’t speculation on my part is that Wall Street is already predicting that this week’s quarterly bank reports are going to look something like the start of the Great Recession.

Analysts say it has been the worst start to the year since the financial crisis in 2007-2008 and expect poor first-quarter results when reporting begins this week…. Analysts forecast a 20 percent decline on average in earnings from the six biggest U.S. banks, according to Thomson Reuters I/B/E/S data. Some banks, including Goldman Sachs Group Inc (GS.N), are expected to report the worst results in over ten years. (Reuters)

Whoa! That means, for Goldman, even worse than any time just prior to or during the Great Recession. When you consider how bad the last decade has been, being worse than that is pretty bad. Moreover, the timing is considered unusually nasty:

This spells trouble for the financial sector more broadly, since banks typically generate at least a third of their annual revenue during the first three months of the year…. Bank executives have already warned investors to expect major declines…. Citigroup Inc (C.N) CFO John Gerspach said to expect trading revenue more broadly to drop 15 percent versus the first quarter of last year. JPMorgan Chase & Co’s (JPM.N) Daniel Pinto said to expect a 25 percent decline in investment banking. Several bank executives have warned about declining quality of energy sector loans.

 

“The first quarter is going to be ugly and we don’t think that necessarily gets recovered in the back half of the year,” said Jerry Braakman, chief investment officer of First American Trust, which owns shares of Citigroup, JPMorgan, Wells Fargo and Goldman. “There are a lot of challenges ahead.”

Yes, one of the biggest areas of bank troubles comes from defaults in the energy sector that I have been saying will play a major role in birthing this banking crisis. (Translate that primarily oil and gas.)

BofA’s Michael Contopoulos warned last week, it may be the worst default cycle in history with “cumulative losses over the length of the entire cycle could be worse than we’ve ever seen before.”

 

Over the weekend, the FT got the memo with a report that … said that “the global bond default rate by companies is running at its highest since 2009 with the US accounting for the vast majority, according to rating agency Standard & Poor’s. A further four defaults this week, with three coming from the troubled oil and gas sector, pushed the overall tally to 40 with a little over a quarter of 2016 done.” (Zero Hedge)

According to the Wall Street Journal, these defaults are from “massive energy loans that most investors didn’t even know about until recently.” Recovery of these bad debts is falling extremely fast.

The growth of the high-yield bond market allowed drillers to take on far more debt than in past booms, leaving them more vulnerable to default. The emergence of shale technology allowed companies to expand reserves and the loans backed by those properties. Some of those loans may now be underwater. (Bloomberg)

You can thank the Fed’s zero-interest policy for that easy credit bubble.

Is anyone starting to feel a little financial crisis deja vù? Last time it was declining housing-sector loans. This time, as I’ve been saying for the last few months we would soon see, it’s declining energy-sector loans. Looks like that is ready to materialize.

In code words, Wells Fargo tells us that their trench-worthy report has not even begun to fully write down the bad debts or move into foreclosures that would cause write-downs: (That is, at least, what I read in public bankerspeak.)

John Shrewsberry, Wells Fargo’s chief financial officer, said on a January call with analysts. “We were working with each customer to help them work through this. It doesn’t do us any good to accelerate an issue, or to end up as the holder of a number of oil leases as a bank.

This week and next is the big-bank reporting season. So, we should know right away if this is the next leg down in the Epocalypse, but you will probably have some coded language to look through. Something as big as this would certainly merit a flash meeting with the president and vice president, multiple meetings of the board of directors, and a G-20 financial summit in Washington along with meetings with the IMF and World Bank.

Not saying that’s what it is. Just sniffing out the kinds of stories that could be related to all these meetings, some planned earlier, others suddenly and somewhat secretively called.

Austrian bank failure echoes Great Depression

Five and a half years ago, I wrote an article here that mentioned how the Great Depression took its second and deepest plunge in 1931 because of the failure of a private Austrian bank named Credit Anstalt.

In May 1931, a Viennese bank named Credit-Anstalt failed. Founded by the famous Rothschild banking family in 1855, Credit-Anstalt was one of the most important financial institutions of the Austro-Hungarian Empire, and its failure came as a shock because it was considered impregnable…. The fall of Credit-Anstalt—and the dominoes it helped topple across Continental Europe and the confidence it shredded as far away as the U.S.—wasn’t just the failure of a bank: It was a failure of civilization.

Now, as I’ve been writing about the start of what I believe will be the the second and worst dip of the Great Recession, another Austrian bank is crumbling.

Austria created Heta Asset Resolution AG when it nationalized all the bad loans of Hypo Alpe-Adria-Bank International five years ago to rescue the bank and depositors by creating a “bad bank” to contain the problems. It went down something like this:

Hypo Alpe-Adria bank, when it was still owned by the small Austrian state of Carinthia, was a cesspool of corruption. It involved bankers, politicians, and powerbrokers in Austria and the Balkans. It was the perfect union of money and power. Investigators found 160 instances of suspected fraud….

 

Six of the bank’s former executives have been convicted of crimes.

 

“I’m not aware of a criminal case bigger than this one,” explained Christian Böhler, whose forensics team started investigating the bank in 2011. “It was a mix of greed, criminal energy, and utter chaos.” (Wolf Street)

Hypo’s troubles began, much as Credit Anstalt’s had before it, when it was required to adjust its books to reflect the true value of its collateral assets after the value of real estate in southeastern Europe collapsed. Everything fell apart upon the realization of how little it was actually worth.

Austria’s central bank governor Ewald Nowotny and his task force recommended that Hypo’s toxic assets of €17.8 billion should be put into a “bad bank.” But to stop the drag on public finances, the federal government should not guarantee Hypo’s bonds. At the time, Austrian taxpayers had already plowed €4.8 billion into Hypo to bail out these bondholders.

 

He then explained on TV to incredulous Austrians that this deal would nudge the budget deficit over the 3% limit set by the Maastricht Treaty and push the government’s debt from 74.4% of GDP to 80% of GDP. This one rotten, state-owned bank in Carinthia was causing this much damage to the country’s finances!

The government, at that point, set a one-year moratorium on all payments to the “bad bank’s” bondholders.

After burning through 5.5 billion euros of taxpayer money to no avail and discovering a 7.6-billion-euro hole in its balance sheet still remained to be filled, Finance Minister Hans Joerg Schelling ended support in March 2015. Surprise, surprise, the bad bank created by the government to put a fence around all the bad debts of the original bad bank became nothing but a black hole of debt, swallowing all money poured into it with nothing to show for the effort. That didn’t stop Schelling from claiming the nationalized bank was in good health in order to put a good face on things as leaders are inclined to do when dealing with really bad stuff in order to protect the public from a scare.

Yesterday, under the first application of Europe’s new forced “bail in” procedures, Austria ordered a haircut to the banks bondholders. Sighs. This is apparently what happens if your money is still locked up in a bank with “good health.”

It does, indeed, sound a tad bit like Credit Anstalt. Now the moratorium is up, and it’s time to start dishing out the bad news to the bondholders under Europe’s new rules:

Austria officially became the first European country to use a new law under the framework imposed by Bank the European Recovery and Resolution Directive to share losses of a failed bank with senior creditors as it slashed the value of debt owed by Heta Asset Resolution AG.

 

The highlights from the announcement…

  • a 100% bail-in for all subordinated liabilities,

  • a 53.98% bail-in, resulting in a 46.02% quota, for all eligible preferential liabilities,

  • the cancellation of all interest payments from 01.03.2015, when HETA was placed into resolution pursuant to BaSAG,

  • as well as a harmonisation of the maturities of all eligible liabilities to 31.12.2023. ((SuperStation95)

This is some much-needed relief from how things used to work:

Throughout the Financial Crisis, and since, there has been one rule: bank bondholders will always be bailed out at the expense of everyone else. The sanctity of bank bonds reigned supreme, no matter what government and central banks had to do to keep it that way. Bank bonds weren’t allowed to be judged by the capital markets. They were simply untouchable. Underpaid and overtaxed workers would have to bail out bank bondholders when these recklessly managed banks collapsed.

 

That was the rule in the US when the Fed, and to a lesser extent the federal government, bailed out the banks. And that was the rule during the debt crisis in Europe. (Wolf Street cont.)

Europe’s new rules were intended to make sure that depositors did not take all the loss and that tax payers don’t absorb all the loss. Heta, because it was a government created “bad bank,” apparently does not have depositors, as it was the creditors who were pooled into the “bad bank” who take the hit. The preferred creditors at the Austrian bank have been told they will have to take a 54% haircut, meaning the bonds they have purchased will recover forty-six cents on the euro.

The big-money (preferred) creditors of the bank, however, don’t like the new rules. They complained and are still holding out for ninety-two cents on the euro. That doesn’t bode well for anything being left for the smaller guys, whose money will, in the very least, be kept in a lockbox for seven years because payouts to the non-Majors don’t wind up until 2023. Major bond-holders demanding a smaller hit include Pimco, Commerzbank and the already deeply troubled Deutsche Bank. (Anybody see how things can quickly move down the line like dominoes when you consider the size of some of the worried creditors who are complaining that the hit will be too hard for them?)

The “subordinated liabilities,” as I understand the complex breakdown (for which I have been unable to find any clear definitions) appears to include bondholders who took a second position to the “preferred liabilities” in getting their money back and third-party investors in the bank. It also appears to include the partners in the bank. If so, then this is exactly how bank failures should happen. The investors are slated to lose 100% of their money first, allowing for the smaller loss by the bond holders.

It is the investors who elect the board that governs the bank and who fill the board positions and who make the decisions of who will be CEO; so, of course, they should lose all of their money before anyone else does. Creditors (bond holders) should be next, as they are often large institutions like PIMCO that have more than enough capacity to investigate risk before investing. Depositors should always be last, as most of them have no capacity whatsoever to investigate the real risk of banks and nowhere near enough money to put into a bank to make it worth a real investigation of risk. They are acting in trust … and particularly in trust that government regulators are doing their job.

Too bad the United States doesn’t operate this way!

What kind of spinoff can the settlement of Heta have to other institutions? Well, last month, the Association of German Banks had to bail out a small bank called Duesseldorfer Hypothekenbank AG because its hit as a creditor of Heta would have killed it. Though Duesseldorfer is a small bank, it was apparently deemed too big to fail because, once again, government bailouts went to the rescue.

Given that such an agreement happened on Sunday afternoon, and that central banks and regulatory bodies usually talk with other national bodies that may be affected, I have to wonder if the thought of how Europe might react on Monday had anything to do with Monday’s sudden meetings of the Fed.

Italian banks on final crash-landing approach

As if all that were not bad enough for the start of a week in banking news, Italy’s minister of finance called an emergency meeting over the past weekend of Italian bankers to engage “last resort” measures for dealing with 360-billion euros of bad loans in banks that have only 50 billion in capital.

Finance minister Pier Carlo Padoan has called a meeting in Rome on Monday with executives from Italy’s largest financial institutions to agree final details of a “last resort” bailout plan.

 

Yet on the eve of that gathering, concerns remain as to whether the plan will be sufficient to ringfence the weakest of Italy’s large banks….

 

Italian bank shares have lost almost half their value so far this year amid investor worries over a €360bn pile of non-performing loans — equivalent to about a fifth of GDP. (Contra Corner)

Could that have had anything to do with the flurry of bank meetings in the US. I have no idea, but I do have to wonder, with so much smoke everywhere in the banking industry, is there a fire we need to know about? You can be sure, we’ll be the last to know, and any announcement of what’s really going down will hit like Bear Sterns or Lehman Brothers. One day, all the central bankers are talking like things are fine. The next day a major vertebrae is knocked out of the nation’s financial spine.

Or maybe presidents and central bankers are just making sure things generally hold together through the election cycle. Such a bad-news week for banks around the world certainly doesn’t sound like all is well as our smiling central bankers, president and V.P, say it is. I don’t know any top secrets to reveal, but the smoke is killing me.

 

http://www.zerohedge.com/news/2016-04-12/what-world-going-banks-week-emergency-meetings-banker-summits-crashing-european-bank

HERE WE GO! Austria Initiates First Ever Bank Bail-In! The Economic Collapse Is Here


RED ALERT! THE SHUT DOWN HAS BEGUN!!!!!!!

On Sunday, April 10, 2016, the Austrian Financial Market Authority (FMA) issued a press release for the resolution [pursuant of the Bank Recovery and Resolution Act—BaSAG – Bundesgesetz über die Sanierung und Abwicklung von Banken] of the Heta Asset Resolution AG, announcing involuntary “bail-in” measures for creditors, and even depositors.

Said to be the first “official” proposed “bail-In” of creditors, these measures included cuts to Heta’s senior liabilities by up to 54%, with extended maturities of all eligible debt to Dec. 31, 2023—to help cover an 8 billion-euro ($9.1 billion) hole in Heta’s balance sheet. This bail-in announcement was made shortly after the destabilization of the Hypo Alpe Adria bank, due to the European debt crisis of 2014.

Couple that with the ongoing economy status in Greece, Italy, Portugal, China, Japan, Venezuela, and Cyprus, and it’s NOT looking good… Because remember, these are only just TESTS…

It’s only a matter of time until ALL of this reaches American shores, and it’s EVEN at the Door.

 

ALSO SEE — Bail-Ins: https://youtu.be/CyhVVATm-ws
ALSO SEE — Banking Glitches: https://youtu.be/rK28AGtBcaM
ALSO SEE — Economic Collapse IMMINENT! https://youtu.be/p8Mds89fyTk

‘Our Corrupt, Fascist Government EXPOSED’ Jason Burack ~ SGTreport.com


Jason Burack from the Wall Street For Main Street You Tube channel joins me to dissect the death of the Republic of the United States – and the end of the rule of law. And we dissect the Panama Papers which are aimed at Putin, Assad and the Prime Minister of Iceland – all of whom are enemies of the West and the banks which control it.
Thanks for tuning in.

Jason’s You Tube channel:
https://www.youtube.com/user/WallStFo…

Watch: BILLIONS IN CHANGE
https://www.youtube.com/watch?v=YY7f1…

Watch :The Veneer of Justice in a Kingdom of Crime:
https://www.youtube.com/watch?v=eHgbR

For REAL News & Information 24/7:
http://sgtreport.com/
http://thelibertymill.com/

The Panama Papers: Victims of Offshore ~ ICIJ


The Panama Papers is a global investigation into the sprawling, secretive industry of offshore that the world’s rich and powerful use to hide assets and skirt rules by setting up front companies in far-flung jurisdictions.
Based on a trove of more than 11 million leaked files, the investigation exposes a cast of characters who use offshore companies to facilitate bribery, arms deals, tax evasion, financial fraud and drug trafficking.
Behind the email chains, invoices and documents that make up the Panama Papers are often unseen victims of wrongdoing enabled by this shadowy industry. This is their story.
For more, go to panamapapers.icij.org
EXECUTIVE PRODUCER: Hamish Boland-Rudder
DIRECTOR/PRODUCER/AUDIO EDITOR: Carrie Ching
ANIMATION ARTIST: Arthur Jones
REPORTER: Will Fitzgibbon

NARRATOR: Eleanor Bell Fox

SUPPORTED BY THE PULITZER CENTER ON CRISIS REPORTING


NARRATOR: Eleanor Bell Fox

SUPPORTED BY THE PULITZER CENTER ON CRISIS REPORTING

 

The Largest Leak In History, What You Need To Know About The Panama Papers ~ WeAreChange

In this video Luke Rudkowski covers the breaking news of the Panama Papers and its implications. We go over what the leaks reveal and its political motivation. Stay tuned for more on this issue as it is breaking now. Support us on Patreon so we can continue doing this critical important work for you.

Sources

https://twitter.com/Snowden/status/71…

http://www.theguardian.com/news/2016/…

https://twitter.com/wikileaks/status/…

https://en.wikipedia.org/wiki/S%C3%BC…

http://panamapapers.sueddeutsche.de/a…

http://panamapapers.sueddeutsche.de/en/

https://panamapapers.icij.org/video/

https://panamapapers.icij.org/the_pow…

https://panamapapers.icij.org/?utm_co…

https://au.news.yahoo.com/thewest/a/3…

http://www.bostonglobe.com/news/world…

http://www.theguardian.com/news/2016/…

http://www.thedailybeast.com/articles…

https://twitter.com/IndianExpress/sta…

http://www.theguardian.com/us-news/20…