China’s New World Order: Gold-backed oil benchmark on the way ~ Corbett Report


SHOW NOTES: https://www.corbettreport.com/?p=23932 China has announced a “new world order” for world oil markets that could have profound effects on the global economy and the monetary order itself. But as The Shanghai International Energy Exchange gears up for operation, it’s important to note yet again that this is another engineered conflict with the pre-determined death of the dollar system being used to bring in the new multipolar world order that the NWO has been openly working toward for decades.

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CATHERINE AUSTIN FITTS : GLOBAL FINANCE & WORLD AFFAIRS ~ Project Camelot


CATHERINE AUSTIN FITTS https://solari.com/blog/

I talk with Catherine about her view of the state of the planet and how global finance is impacting our lives.

Bio: Catherine is the president of Solari, Inc., publisher of the Solari Report, and managing member of Solari Investment Advisory Services, LLC. Catherine served as managing director and member of the board of directors of the Wall Street investment bank Dillon, Read & Co. Inc., as Assistant Secretary of Housing and Federal Housing Commissioner at the United States Department of Housing and Urban Development in the first Bush Administration, and was the president of Hamilton Securities Group, Inc. Catherine has designed and closed over $25 billion of transactions and investments to-date and has led portfolio and investment strategy for $300 billion of financial assets and liabilities.

KERRY CASSIDY
PROJECT CAMELOT
http://projectcamelotportal.com

Russia and China announce decoupling trade from Dollar – The End for the USA is nigh‏


 

Image

Russia has just dropped another bombshell, announcing not only the de-coupling of its trade from the dollar, but also that its hydrocarbon trade will in the future be carried out in rubles and local currencies of its trading partners – no longer in dollars – see Voice of Russia

Russia’s trade in hydrocarbons amounts to about a trillion dollars per year. Other countries, especially the BRICS and BRCIS-associates (BRICSA) may soon follow suit and join forces with Russia, abandoning the ‘petro-dollar’ as trading unit for oil and gas. This could amount to tens of trillions in loss for demand of petro-dollars per year (US GDP about 17 trillion dollars – December 2013) – leaving an important dent in the US economy would be an understatement.

Added to this is the declaration today by Russia’s Press TV – China will re-open the old Silk Road as a new trading route linking Germany, Russia and China, allowing to connect and develop new markets along the road, especially in Central Asia, where this new project will bring economic and political stability, and in Western China provinces,where “New Areas” of development will be created. The first one will be the Lanzhou New Area in China’s Northwestern Gansu Province, one of China’s poorest regions.

“During his visit to Duisburg, Chinese President Xi Jinping made a master stroke of economic diplomacy that runs directly counter to the Washington neo-conservative faction’s effort to bring a new confrontation between NATO and Russia.” (press TV, April 6, 2014)

“Using the role of Duisburg as the world’s largest inland harbor, an historic transportation hub of Europe and of Germany’s Ruhr steel industry center, he proposed that Germany and China cooperate on building a new “economic Silk Road” linking China and Europe. The implications for economic growth across Eurasia are staggering.”

Curiously, western media have so far been oblivious to both events. It seems like a desire to extending the falsehood of our western illusion and arrogance – as long as the silence will bear.

Germany, the economic driver of Europe – the world’s fourth largest economy (US$ 3.6 trillion GDP) – on the western end of the new trading axis, will be like a giant magnet, attracting other European trading partners of Germany’s to the New Silk Road. What looks like a future gain for Russia and China, also bringing about security and stability, would be a lethal loss for Washington.

In addition, the BRICS are preparing to launch a new currency – composed by a basket of their local currencies – to be used for international trading, as well as for a new reserve currency, replacing the rather worthless debt ridden dollar – a welcome feat for the world.

Along with the new BRICS(A) currency will come a new international payment settlement system, replacing the SWIFT and IBAN exchanges, thereby breaking the hegemony of the infamous privately owned currency and gold manipulator, the Bank for International Settlement (BIS) in Basle, Switzerland – also called the central bank of all central banks.

To be sure – the BIS is a privately owned for profit institution, was created in the early 1930’s, in the midst of the big economic melt-down of the 20th Century. The BIS was formed precisely for that purpose – to control the world’s monetary system, along with the also privately owned FED and the Wall Street Banksters – the epitome of private unregulated ownership.

The BIS is known to hold at least half a dozen secret meetings per year, attended by the world’s elite, deciding the fate of countries and entire populations. Their demise would be another welcome new development.

As the new trading road and monetary system will take hold, other countries and nations, so far in the claws of US dependence, will flock to the ‘new system’, gradually isolating Washington’s military industrial economy (sic) and its NATO killing machine.

This Economic Sea Change may bring the empire to its knees, without spilling a drop of blood. An area of new hope for justice and more equality, a rebirth of sovereign states, may dawn and turn the spiral of darkness into a spiral of light.

Peter Koenig is an economist and former World Bank staff. He worked extensively around the world in the fields of environment and water resources. He writes regularly for Global Research, ICH, the Voice of Russia and other internet sites. He is the author of Implosion – fiction based on facts and on 30 years of experience around the globe.
.

Comment: Let’s not get too carried away. This is still Earth after all, planet of the psychopaths. Whether the fall of the US is ultimately good or bad for the people of the world, we can bet there will be blood spilled…

JUDGMENT DAY: Russia & China Bypass the Dollar With GOLD SGTreport.com


NOTE: This interview was recorded in the hours BEFORE Trump bomber Syria, or it would have been discussed. In this conversation with Andy Hoffman we discuss the Russia and China’s rapid move away from the Dollar and toward gold. It will soon be judgment day for the Petro-dollar.

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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.

Bix Weir – Bad Guys Banks Being Gutted….FINALLY!


Reblogged February 23, 2016

portallogo

Banking news is NOT good. HSBC surprised the market yesterday with a huge loss (again) and news of another investigation.
HSBC Posts 4th-Quarter Loss and Comes Under S.E.C. Scrutiny
“For the three months that ended Dec. 31, HSBC, Britain’s largest by assets, posted a loss of $1.33 billion, compared with a profit of $511 million in the fourth quarter of 2014. In addition to reporting its earnings, HSBC said that it and ‘multiple financial institutions’ were facing an investigation by the Securities and Exchange Commission.”
And today, one of the most EVIL of the Bad Guy banks and a serious player in the rigging of the silver and gold prices in Asia, Standard Chartered Bank, also posted a huge loss and announced more investigations.
Standard Chartered Makes It’s First Annual Loss Since 1989
“Standard Chartered has plunged to its first full-year loss since 1989, axed its final dividend and endured another turbulent day on the stock market, with its shares falling by more than 10% at one stage. Along with its results, the emerging markets focused bank revealed it is still being investigated for potential failings in its defences against financial crime.”
END
Now think to yourself…how could it be that at the end of 2015 EVERYONE was saying things were as good as they get and the banks had never been stronger?
Fast forward less than 2 months and it’s as if the Financial World is the complete opposite…a COMPLETE MESS!!
And they are reporting 2015 results…meaning THEY LIED at the end of last year!
With the new head of the Minneapolis Federal Reserve, Neel Kashkari coming out today trying to explain why the big banks need to be split apart you may wonder just how bad it is behind the scenes.
Kashkari Wants to Break Up The Big Banks
Oh, you remember Kashkari don’t you? The lead behind the TARP Program which was supposed to help the banks survive after the 2008 crash…the same banks that he now claims need to be broken up!
But why Kashkari? Just dig a layer deeper and you will find his Goldman Sach’s roots…roots? Hmmm. Love that word as it relates to the ORIGINAL Road to Roota Articles about Alan Greenspan’s original computer programs he invented to rig the markets.
RootA = Computer programming command in ‘BASIC” Invented by Greenspan’s childhood friend John Kemeny.
What’s this got to do with Kashkari?
 
HE WAS AN EXPERT COMPUTER QUANT AT GOLDMAN!!! Kashkari worked for NASA as a computer expert before working for Hank Paulson in the COMPUTER RIGGING DIVISION at Goldman. Kaskari was behind Goldman’s computer market rigging that has morphed into the absolute MESS it is today.
My Friends – it all fits together in a tight little package. The PLANNED take down of the global financial system is upon us – you just have to connect the dots to see it clearly.
May the Road you choose be the Right Road.
Bix Weir

Central Planners Freaking Out about Discussion of Gold’s Role


GoldNuggetBy Clint Siegner

Sound money issues make for good politics these days. The leading Republican candidates have all suggested reforms to our monetary system. The topic is popping up in debates as well as interviews. Predictably, Fed worshipers and proponents of central planning everywhere are snickering and trotting out the usual responses.

Michael Hiltzik, with the Los Angeles Times, recently published a column titled “The Worst Idea in the Presidential Debate: a Return to the Gold Standard.” He thinks “a return to the gold-standard would be so not right that it’s not even wrong.” It’s another way of saying the idea is so bad it defies analysis. Nevertheless, he tries anyway.

He’s terribly smug given his essential argument is for how great centrally planned monetary policy is. The collapse of the Soviet Union and other managed economies revealed the pitfalls of putting a handful of bureaucrats in charge of markets. But his point of view represents what most people are getting from the financial press, Wall Street, and Washington DC. Let’s have a look at Hiltzik’s main points then take them apart.

False Claim #1: The economic science is settled.

Mr. Hiltzik takes a page out of the playbook of climate activists. He wants people to believe that only wingnuts, Luddites, and Republican presidential candidates are still talking about gold. He cites a 2012 survey of economists supposedly “drawn from the entire spectrum of economic theory.” None thought a return to a gold standard was a good idea. Case closed.

One assumption is clearly wrong. The entire spectrum is not represented. None of today’s prominent Austrian school economists are included on the panel. You won’t find names like Mark Skousen, Hans-Herman Hoppe, Robert Murphy, or Joseph Salerno. But you will find Barry Eichengreen, who has criticized the Fed for not being interventionist enough, and Austan Goulsbee, who served as chief on Obama’s Council of Economic Advisors.

The truth is there are plenty of economists who question the stewardship and discretion of Congress, the president, and, especially, Federal Reserve bankers. Heck, even Alan Greenspan is criticizing the fed and talking about an important role for gold these days.

Lots of people, not just economists, wonder if the Fed’s promise to foster higher prices forever is really working out for ordinary folks. Millions of Americans stand to get hurt by unlimited borrowing and money creation.

Following Nixon’s final abandonment of gold redeemability in 1971, all restraint vanished.

That is why presidential candidates talk about reforms. Last week, a 53-44 majority of senators voted for the Audit the Fed bill. It wasn’t enough to defeat the Democratic filibuster, but clearly frustration with the status quo is widespread.

Proponents of unlimited money creation and politburo style management of our currency and markets are the true wingnuts.

False Claim #2: A gold standard favors the wealthy, at the expense of everyone else.

Hiltzik tells us “As far back as the 19th century, it was well understood that the ‘stability’ provided by linking currencies and exchange rates to a fixed value of gold benefited only one economic class – creditors…” In other words bankers and the wealthy, people in a position to loan money, supported gold. The move to fiat currency benefited everyone else.

Apparently Hiltzik isn’t familiar with the origins of the Federal Reserve. It is privately held by the largest banks (i.e. lenders) in the United States. It was devised, in secret, by the most prominent bankers and politicians of the early 20th century, and they certainly didn’t do it to help the poor. They did it to help themselves.

Since the formation of the Federal Reserve, the banking sector quadrupled as a percentage of GDP. Meanwhile, the wealth gap has been growing, and that trend accelerated dramatically about the time Nixon closed the gold window.

The current system is an unmitigated disaster for virtually everyone outside of Washington DC and Wall Street. Consider the following charts from Zerohedge detailing just how awful the recent trillions of dollars in money creation and unlimited expansion in government has been for Americans at large:

35646541Since Hiltzik seems to care about the common man, he should join the large and growing movement of people who want a return to sound money. The idea is so right for these times.

Clint Siegner is a Director at Money Metals Exchange, the national precious metals company named 2015 “Dealer of the Year” in the United States by an independent global ratings group. A graduate of Linfield College in Oregon, Siegner puts his experience in business management along with his passion for personal liberty, limited government, and honest money into the development of Money Metals’ brand and reach. This includes writing extensively on the bullion markets and their intersection with policy and world affairs.

http://www.activistpost.com/2016/01/central-planners-freaking-out-about-discussion-of-golds-role.html

GLOBAL ECONOMIC MELTDOWN ACCELERATES Andy Hoffman ~ SGTreport.com


Happy Thanksgiving. Andy Hoffman from Miles Franklin joins me to document the collapse as the global economic meltdown accelerates.

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

Music by Chris Zabriskie
“It’s Always Too Late To Start Over”
Licensed under Creative Commons “Attribution 3.0” 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.

Every Icelander To Receive 30,000 ISK From Bank Sale


Photos by
Baldur Kristjáns

Published October 24, 2015

Minister of Finance Bjarni Benediktsson has promised that each Icelander will get a 30,000 ISK pay-out for the proposed Íslandsbanki bank sale.

Speaking to attendees of the national convention of the Independence Party, of which Bjarni is the chairperson, Kjarninn reports that he submitted the idea that 5% of Íslandsbanki’s shares be distributed to each and every Icelander. As the value of the bank is currently placed at 187 billion ISK, 5% would come out to about 9.3 billion ISK, or just under 30,000 ISK for each Icelander.

“I am saying that the government take some decided portion, 5%, and simply hand it over to the people of this country,” he told attendees.

As reported, Íslandsbanki’s creditors have proposed that ISB Holding ehf., which owns 95% of shares in Íslandsbanki hf., transfer their entire holding in Íslandsbanki to the State, which would then become full owner of the bank.

This would put two of Iceland’s banks under the ownership of the government, RÚV reports, and Guðlaugur Þór Þórðarson, the vice chairperson of the Budget Committee, told reporters he was not especially happy about the government owning the bank, but that he believes it may be a necessary step towards lifting capital controls.

Minister of Finance Bjarni Benediktsson is more positive about the idea, saying that it will likely bring more foreign capital into the country. Former Minister of Finance and current Left-Green MP Steingrímur J. Sigfússon was not quite as optimistic, telling listeners of radio station Rás 2 this morning that “we shouldn’t lose the banks to the hands of fools,” saying that Iceland should rather focus on “separating commercial banking from investment banking.”

Nothing exact has yet been set on when this 5% share in the bank – which, being owned by the State, effectively means it will be owned by the people – will be distributed or how.

http://grapevine.is/news/2015/10/24/every-icelander-to-receive-30000-isk-from-bank-sale/

Iceland Just Jailed Dozens of Corrupt Bankers for 74 Years, The Opposite of What America Does.


Thanks Keri! Reblogged from https://followingworldchange.wordpress.com/

http://thefreethoughtproject.com/icelands-banksters-sentenced-74-years-prison-prosecution-u-s/

image: http://tftppull.freethoughtllc.netdna-cdn.com/wp-content/uploads/2015/10/iceland-arrests-bankers.jpg

iceland-arrests-bankersRaykovich, Iceland – In stark contrast to the record low number of prosecutions of CEO’s and high-level financial executives in the U.S., Iceland has just sentenced 26 bankers to a combined 74 years in prison.

The majority of those convicted have been sentenced to prison terms of two to five years. The maximum penalty in Iceland for financial crimes is six years, although hearings are currently underway to consider extending the maximum beyond six years.

The prosecutions are the result of Iceland’s banksters manipulating the Icelandic financial markets after Iceland deregulated their finance sector in 2001. Eventually, an accumulation of foreign debt resulted in a meltdown of the entire banking sector in 2008.

According to Iceland Magazine:

In two separate rulings last week, the Supreme Court of Iceland and the Reykjavík District Court sentenced three top managers of Landsbankinn and two top managers of Kaupþing, along with one prominent investor, to prison for crimes committed in the lead-up to the financial collapse of 2008. With these rulings the number of bankers and financiers who have been sentenced to prison for crimes relating to the financial collapse has reached 26, and a combined prison time of 74 years.

Massive debts were incurred in the name of the Icelandic public, to allow the country to continue to function, which are still being repaid to the IMF and other nations eight years later by the citizens of Iceland. In contrast to the U.S., Iceland has chosen to hold the criminals that manipulated their financial system accountable under the law.

In the U.S., not a single banking executive was charged with crimes related to the 2008 financial crisis, even though the U.S. itself precipitated the crisis. Icelandic President, Olafur Ragnar Grimmson summed it up best in his response when asked how his country recovered from the global financial crisis.

“We were wise enough not to follow the traditional prevailing orthodoxies of the Western financial world in the last 30 years. We introduced currency controls, we let the banks fail, we provided support for the people and didn’t introduce austerity measures like you’re seeing in Europe.”

While Iceland has prosecuted those that caused their financial crisis, America has done the opposite. In 2008, after Congress bailed out the failing American banks to the tune of $700 billion dollars, courtesy of the American taxpayer, many of the executives of institutions that received TARP bailout funds ended up getting large bonuses!

The prosecution of the Icelandic banksters represents an accountability that does not exist in the United States of America. It seems clear that the financial “Masters of the Universe” are the ones that truly control the political apparatus in the U.S., making it obvious there is no one who is going to hold them accountable for manipulating and crashing the financial markets.

Please share this article to help expose who really controls the political system in the United States!!


Jay Syrmopoulos is an investigative journalist, free thinker, researcher, and ardent opponent of authoritarianism. He is currently a graduate student at University of Denver pursuing a masters in Global Affairs. Jay’s work has been published on Ben Swann’s Truth in Media, Truth-Out, AlterNet, InfoWars, MintPressNews and maany other sites. You can follow him on Twitter @sirmetropolis, on Facebook at Sir Metropolis and now on tsu
Read more at http://thefreethoughtproject.com/icelands-banksters-sentenced-74-years-prison-prosecution-u-s/#EgEioAd2bkgdxsiG.99

Simon Black – The US government just crossed the Rubicon


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October 8, 2015
Caracas, Venezuela

In 49 BC, a defiant Julius Caesar stood in front of his army at the River Rubicon and made the biggest decision of his life.

It was strictly forbidden by Roman law for a general to lead his army out of its province and into Rome. And the Rubicon marked the boundary.

“Alea iacta est!” (The die is cast!) he said, and led his army across the river into civil war.

The phrase “crossing the Rubicon” has stuck for more than 2,000 years, signifying a risky and dangerous point of no return.

This week, the United States government crossed the Rubicon.

In a fit of complete arrogance, a federal judge ruled that he has ‘jurisdiction’ over one of the biggest banks in mainland China, Bank of China (BOC), and demands that the bank turn over financial records to his court.

The judge is hearing a case brought by the luxury brand Gucci against an alleged Chinese counterfeiting ring for selling fake handbags in the United States.

The claim is that the Chinese defendants are sending their ill-gotten gains back to Bank of China in the mainland. And the judge wants to see their account activity.

Bank of China, as you can probably guess, is predominantly owned by the Chinese government.

So it goes without saying that this demand (not a request) is a direct affront at China’s sovereignty.

The only leverage the judge has is that Bank of China has a branch in New York City; it is officially a licensed bank in the US.

So if Bank of China doesn’t comply, the judge could theoretically order that their US license be revoked.

Once again, the United States is using its financial system as a weapon.

Since US dollars are the most widely used reserve currency in the world, every bank on the planet needs some access to the US banking system.

Whether you’re in London, Riyadh, Sydney, or Shanghai, the most widely traded commodities, bonds, and financial contracts in the world are primarily denominated in US dollars.

Plus most global trade takes place in US dollars.

So not only are banks forced to hold US dollars, they require access to the US banking system in order to clear and settle US dollar transactions.

Large international banks have what are known as ‘correspondent bank accounts’ or ‘nostro accounts’ with US banks.

So a big bank in Denmark, for example, may have a correspondent account with JP Morgan or Citibank in New York in order to facilitate its dollar transactions.

And sometimes foreign banks may even apply for their own US banking license, as in the case of Bank of China.

But if a bank were to be kicked out of the US banking system, it would be incredibly detrimental to its ability to hold and transact in US dollars. And hence quite difficult to participate in global trade and finance.

This financial leverage is an unbelievable advantage for the United States, and is a result of the rest of the world placing a great deal of trust in the US government.

But the government has shown time and time again that they are willing to abuse that trust and use their advantage as a weapon– one that is more powerful than the US military.

Just last year, the Treasury Department fined French bank BNP Paribas a whopping $9 billion for doing business with countries that the US doesn’t like, such as Cuba.

Of course, Cuba and the US are BFFs now. But I doubt BNP is getting a refund anytime soon.

And naturally, if BNP didn’t pay up, the US could threaten to evict them from its financial system.

It’s simply amazing that the US did that to its own ally.

Now they’re going after China, its biggest competitor.

The Chinese are already working on a parallel, competitive financial system.

They set up the Asian Infrastructure Investment Bank to compete with the vestigial IMF and World Bank.

And they’re nearing completion on an international payment system and clearing network to compete with SWIFT and the US financial system.

It’s called CIPS.

And once it’s up and running, there will likely be a rapid increase in the worldwide use of China’s currency for financial transactions– transactions that used to be executed in US dollars.

Sticking it to Bank of China like this only gives the Chinese government even more reason to wage war on the US financial system through CIPS.

The reduced demand for US dollars completely destroys America’s last remaining advantage.

If they can’t force the rest of the world to use the US banking system, then they won’t be able to force the rest of the world to hold US dollars or buy US government debt.

It weakens America considerably.

And when future historians write the history of the decline of the United States, there will no doubt be a chapter on how the US government made it a matter of national policy to consistently abuse the power entrusted to them by the global banking community.

Of course, Julius Caesar didn’t learn that lesson either.

After crossing the Rubicon, he won a long civil war, after which the Roman Senate made him dictator for life.

And fearing he would abuse it, he was assassinated just a few weeks later by the very people who trusted him with that power.

Until tomorrow,
Signature
Simon Black
Founder, SovereignMan.com

SILVER UPDATE: UNPRECEDENTED DEMAND — Doc & Dubin ~ SGTreport.com


The Doc from SD Bullion and Silver Doctors and our friend Eric Dubin from News Doctors join us to discuss the latest developments in the global precious metals markets where we see the Perth Mint selling 3.5 million of its one ounce Silver Kangaroo coins in one day. We also discuss the action in for PHYSICAL silver in India which has led Steve St. Angelo to conclude that demand for PHYSICAL silver worldwide will destroy the rigged paper markets once and for all. And once again we hit on the 1980 inflation adjusted all time high for silver which now sits at $601 per ounce. With silver priced at $15 per ounce today, it equates to less than $2/ounce silver in 1980 dollars. Something is very wrong with this picture. Got PHYSICAL?

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

Music: “Complex”
(http://www.incompetech.com) Licensed under Creative Commons “Attribution 3.0” 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.

Grexit or Jubilee? How Greek Debt Can Be Annulled ~ Ellen Brown


grexit2

The crushing Greek debt could be canceled the way it was made – by sleight of hand. But saving the Greek people and their economy is evidently not in the game plan of the Eurocrats.

Greece’s creditors have finally brought the country to its knees, forcing President Alexis Tsipras to agree to austerity and privatization measures more severe than those overwhelmingly rejected by popular vote a week earlier. No write-down of Greece’s debt was included in the deal, although the IMF has warned that the current debt is unsustainable.

Former Greek finance minister Yanis Varoufakis calls the deal “a new Versailles Treaty” and “the politics of humiliation.” Greek defense minister Panos Kammenos calls it a “coup d’état” done by “blackmailing the Greek prime minister with collapse of the banks and a complete haircut on deposits.”

“Blackmail” is not too strong a word. The European Central Bank has turned off its liquidity tap for Greece’s banks, something all banks need, as explained earlier here. All banks are technically insolvent, lending money they don’t have. They don’t lend their deposits but create deposits when they make loans, as the Bank of England recently confirmed. When the depositors and borrowers come for their money at the same time, the bank must borrow from other banks; and if that liquidity runs dry, the bank turns to the central bank, the lender of last resort empowered to create money at will. Without the central bank’s backstop, banks must steal from their depositors with “haircuts” or they will collapse.

What did Greece do to deserve this coup d’état? According to former World Bank economist Peter Koenig:

[T]he Greek people, the citizens of a sovereign country . . . have had the audacity to democratically elect a socialist government. Now they have to suffer. They do not conform to the self-imposed rules of the neoliberal empire of unrestricted globalized privatization of public services and public properties from which the elite is maximizing profits – for themselves, of course. It is outright theft of public property.

According to a July 5th article titled “Greece – The One Biggest Lie You’re Being Told By The Media,” the country did not fail on its own. It was made to fail:

[T]he banks wrecked the Greek government, and then deliberately pushed it into unsustainable debt . . . while revenue-generating public assets were sold off to oligarchs and international corporations.

A Truth Committee convened by the Greek parliament reported in June that a major portion of the country’s €320 billion debt is “illegal, illegitimate and odious” and should not be paid.

How to Cut the Debt Without Loss to the Bondholders

The debt cannot be paid and should not be paid, but EU leaders justify their hard line as necessary to save the creditors from having to pay – the European taxpayers, governments, institutions, and banks holding Greek bonds. It is quite possible to grant debt relief, however, without hurting the bondholders. US banks were bailed out by the US Federal Reserve to the tune of more than $16 trillion in virtually interest-free loans, without drawing on taxes. Central banks have a printing press that allows them to create money at will.

The ECB has already embarked on this sort of debt purchasing program. In January, it announced it would purchase 60 billion euros of debt assets per month beginning in March, continuing to at least September 2016, for a total of €1.14 trillion of asset purchases. These assets are being purchased through “quantitative easing” – expanding the monetary base simply with accounting entries on the ECB’s books.

The IMF estimates that Greece needs debt relief of €60 billion – a mere one month of the ECB’s quantitative easing program. The ECB could solve Greece’s problem with a few computer keystrokes. Moreover, in today’s deflationary environment, the effect would actually be to stimulate the European economy. As financial writer Richard Duncan observes:

When a central bank prints money and buys a government bond, it is the same thing as cancelling that bond (so long as the central bank does not sell the bond back to the public).

. . . The European Central Bank’s plans to create €1.1 trillion over the next 20 months will effectively cancel the combined budget deficits of the Eurozone national governments in both 2015 and 2016, with a considerable amount left over.

Quantitative Easing has only been possible because it has occurred at a time when Globalization is driving down the price of labor and industrial goods. The combination of fiat money and Globalization creates a unique moment in history where the governments of the developed economies can print money on an aggressive scale without causing inflation.

They should take advantage of this once-in-history opportunity to borrow more in order to invest in new industries and technologies, to restructure their economies and to retrain and educate their workforce at the post-graduate level. If they do, they could not only end the global economic crisis, but also ensure that the standard of living in the developed world continues to improve, rather than sinking down to third world levels.

That is how it works for Germany after World War II. According to economist Michael Hudson, the most successful debt jubilee in recent times was gifted to Germany, the country now most opposed to doing the same for Greece. The German Economic Miracle followed massive debt forgiveness by the Allies:

All domestic German debts were annulled, except employer wage debts to their labor force, and basic working balances. Later, in 1953, its international debts were written down.

Why not do the same for the Greeks? Hudson writes:

It was easy to write down debts that were owed to Nazis. It is much harder to do so when the debts are owed to powerful and entrenched institutions – especially to banks.

Loans Created with Accounting Entries Can Be Canceled with Accounting Entries

That may be true for non-bank creditors. But for banks, recall that the money owed to them is not taken from the accounts of depositors. It is simply created with accounting entries on the books. The loans could be canceled the same way. To the extent that the Greek debt is owed to the ECB, the IMF and other financial institutions, that is another option for canceling it.

British economist Michael Rowbotham explored that possibility in 1998 for the onerous Third World debts owed to the World Bank and IMF. He wrote that of the $2.2 trillion debt then outstanding, the vast majority was money simply created by commercial banks. It represented a liability on the banks’ books only because the rules of banking said their books must be balanced.  He suggested two ways the rules might be changed to liquidate unfair and oppressive debts:

The first option is to remove the obligation on banks to maintain parity between assets and liabilities, or, to be more precise, to allow banks to hold reduced levels of assets equivalent to the Third World debt bonds they cancel.  Thus, if a commercial bank held $10 billion worth of developing country debt bonds, after cancellation it would be permitted in perpetuity to have a $10 billion dollar deficit in its assets.  This is a simple matter of record-keeping.

The second option, and in accountancy terms probably the more satisfactory (although it amounts to the same policy), is to cancel the debt bonds, yet permit banks to retain them for purposes of accountancy.

The Real Roadblock Is Political

The Eurocrats could end the economic crisis by writing off odious unrepayable debt either through quantitative easing or by changing bank accounting rules. But ending the crisis is evidently not what they are up to. As Michael Hudson puts it, “finance has become the modern-day mode of warfare. Its objectives are the same: acquisition of land, raw materials and monopolies.” He writes:

Greece, Spain, Portugal, Italy and other debtor countries have been under the same mode of attack that was waged by the IMF and its austerity doctrine that bankrupted Latin America from the 1970s onward.

Prof. Richard Werner, who was on the scene as the European Union evolved,maintains that the intent for the EU from the start was the abandonment of national sovereignty in favor of a single-currency system controlled by eurocrats doing the bidding of international financiers. The model was flawed from the beginning. The solution, he says, is for EU countries to regain their national sovereignty by leaving the euro en masse. He writes:

By abandoning the euro, each country would regain control over monetary policy and could thus solve their own particular predicament. Some, such as Greece, may default, but its central bank could limit the damage by purchasing the dud bonds from banks at face value and keeping them on its balance sheet without marking to market (central banks have this option, as the Fed showed again in October 2008). Banks would then have stronger balance sheets than ever, they could create credit again, and in exchange for this costless bailout central banks could insist that bank credit – which creates new money – is only allowed for transactions that contribute to GDP in a sustainable way. Growth without crises and large-scale unemployment could then be arranged.

But Dr. Werner acknowledges that this is not likely to happen soon. Brussels has been instructed by President Obama, no doubt instructed by Wall Street, to hold the euro together at all costs.

The Promise and Perils of Grexit

The creditors may have won this round, but Greece’s financial woes are far from resolved. After the next financial crisis, it could still find itself out of the EU. If the Greek parliament fails to endorse the deal just agreed to by its president, “Grexit” could happen even earlier. And that could be the Black Swan event that ultimately breaks up the EU. It might be in the interests of the creditors to consider a debt jubilee to avoid that result, just as the Allies felt it was in their interests to expunge German debts after World War II.

For Greece, leaving the EU may be perilous; but it opens provocative possibilities. The government could nationalize its insolvent banks along with its central bank, and start generating the credit the country desperately needs to get back on its feet. If it chose, it could do this while still using the euro, just as Ecuador uses the US dollar without being part of the US. (For more on how this could work, see here.)

If Greece switches to drachmas, the funding possibilities are even greater. It could generate the money for a national dividend, guaranteed employment for all, expanded social services, and widespread investment in infrastructure, clean energy, and local business. Freed from its Eurocrat oppressors, Greece could model for the world what can be achieved by a sovereign country using publicly-owned banks and publicly-issued currency for the benefit of its own economy and its own people.

Ellen Brown is an attorney, founder of the Public Banking Institute, and author of twelve books including the best-selling Web of Debt. Her latest book, The Public Bank Solution, explores successful public banking models historically and globally. Her 300+ blog articles are at EllenBrown.com.

http://www.globalresearch.ca/grexit-or-jubilee-how-greek-debt-can-be-annulled/5462569

MSM Chooses Silence on Massive Protests in Spain (PHOTO)



US Uncut
This is from Valencia, Spain, about an hour ago. But you wouldn’t know from watching the media, they’ve already made the decision to not televise the revolution.

Share this widely if you stand in solidarity with our brothers and sisters in Spain, who continue to fight the culture of banking corruption and greed that rules governments worldwide.

The US Dollar and Bretton Woods are Finished: The BRICS/SCO Summits in Ufa Mark the Start of a “Silk World Order”


Ufa Summit (for Nazemroaya article)

Get ready for ground shattering geopolitical changes. At the crossroads of Asia and Europe, it has been decided that the Russian city of Ufa will be the point of convergence for all the initiatives and projects of the Silk World Order of trade and integration that China and Russia are spearheading. Ufa, which is the capital of Russia’s Bashkortostan, is being used to simultaneously host an extraordinary summit for both the BRICS—which has increasing become an alternative forum to that of the G7—and the Shanghai Cooperation Organization (SCO) respectively from July 8 to 9 and from July 9 to 10, 2015. 

The Coming Together of Eurasia and Beyond

The joint BRICS and SCO summit in Ufa has been organized by Moscow as the simultaneous holder of both the rotating chairmanships of the BRICS and the SCO. It is no coincidence, however, that the Seventh BRICS and Fifteenth SCO summits have been amalgamated as one large international summit. The Kremlin has used the opportunity to bring Russia’s partners together. This is part of the integration process of the Silk World Order. There will be joint BRICS and SCO sessions and many important exchanges and discussions about a new archetype for the world.

One informal session at Ufa will not only include all the members of the BRICS and the SCO, but will also include all the members of the Eurasian Economic Union (EEU), according to information disclosed by Russian President Putin’s aide Yury Ushakov to the Russia media days before the summit in Ufa. Aside from Brazil and South Africa, since all the members of the BRICS and the SCO are located in Eurasia, the Kremlin saw it as pertinent that the EEU be involved in some type of discussion about the development of the Eurasian space. In essence this means that Armenia will be attending the joint BRICS and SCO summit in Bashkortostan, since all the other members of the Eurasian Economic Space are either full SCO members or, in the case of Belarus, an SCO dialogue partner. According to the Mercator Institute for China Studies (MERICS) in Berlin, which asserts that the BRICS-SCO-EEU talks are «a sign that Russia is aiming for political block-building,» the Republic of Azerbaijan and Turkmenistan will also take part in informal meeting of the BRICS, SCO, and EEU. [1]

The Eurasian and global convergences in Ufa are clear. Using the links that already exist between the two, China’s New Silk Road and the Russian-led Eurasian Economic Union will begin a roadmap to fuse together in Bashkortostan as the pivotal axis of rotation in the Eurasian space. This is a continuation of the high-level discussions that were announced by both Chinese President Xi Jinping and Putin on May 8 on the Xi Jinping’s arrival to Moscow, ahead of the Victory Day celebrations on May 9, 2015.

After failed attempts at different venues, Indian Prime Minister Narendra Modi and Iranian President Hassan Rohani will finally meet in Ufa. India and Iran are rekindling their strategic bonds that had been neglected by the government of Modi’s predecessor, Prime Minister Manmohan Singh. The use of the Iranian port Chabahar by India for gaining access to Russia and Central Asia through the North-South Corridor will definitely be discussed by Indian and Iranian officials at Ufa.

The Coming Silk World Order Being Unveiled in Ufa

While the New Silk Road and the EEC come together in Ufa, the BRICS will put together a development map while the SCO will outline its expansion plans for new full members. The applications of India, Iran, and Pakistan for full membership will be addressed. Moreover, Egypt and several other countries have applied to join the SCO in come context.

Ufa is being used to stamp out a roadmap for the «Eurasian Century» and a Silk World Order that goes beyond Eurasia, which includes everything from a transcontinental mega railroad network connecting the Iberian Peninsula to the South China Sea and to what has been dubbed as the «modern city of the Eurasian continent» in Belarus.

The US is clearly worried about the Silk World Order that is emerging. It has begun to pull out all the stops, from courting Brazil on the eve of the summit in Ufa to calls for the European Union to not join China’s banking project. The Pentagon’s 2015 Military Strategy that addresses the possibility of confrontation with an updated «Axis of Evil» composed of China, Russia, Iran, and North Korea is catered to Washington’s proclivity to confront the countries that are challenging a US-dominated international order.

While Washington and NATO are making a general call to arms, the Chinese are busy building trade infrastructure and transport networks. In Belarus, the Chinese are building the first «modern city of the Eurasian continent» in the forests next to the Minsk National Airport as part of what Bloomberg calls «a manufacturing springboard between the European Union and Russia.» [2] Upon completion, the new export-oriented city in Belarus, which is being built on the route of the European highway that links Berlin, Warsaw, Minsk, and Moscow, will be the largest manufacturing and industrial park in Europe.

The US Dollar and Bretton Woods are Finished

The Silk World Order that is being shaped in Ufa will see the existing Bretton Woods financial architecture of the world unraveled and replaced by one that is no longer dominated by the trilateral grouping of the United States, Western Europe, and Japan. The monopoly of the World Bank and the International Monetary Fund, which has benefited Washington, is at its end. The US dollar as a currency in bilateral and multilateral trade is being scraped by the BRICS, SCO, and EEU— Washington’s flooding of oil markets was partially aimed at derailing this by forcing renewed dependence on the US dollar for energy trade.

The BRICS New Development Bank (NDB), the first institution of the BRICS, is being launched by Brazil, China, India, Russia, and South Africa. It is joined by the SCO Development Bank and by the recently launched Asian Infrastructure Investment Bank (AIIB) in the assault on Bretton Woods.

Gone are the days of unchallenged US domination. The architecture of the post-Second World War or post-1945 global order is now in its death bed and finished. With or without Washington, a Silk World is emerging and its coming is being trumpeted from Ufa as the SCO strengthens and the BRICS institutionalizes itself as the cornerstone of a new multi-polar world order.

NOTES

[1] Gabriel Domínguez, «What to expect from the SCO, BRICS summits in Russia,» Deutsche Welle, July 6, 2015.

[2] Aliaksandr Kudrytski, «China Builds EU Beachhead With $5 Billion City in Belarus,» Bloomberg, May 26, 2013.

This article was originally published by the Strategic Culture Foundation on July 10, 2015.

http://www.globalresearch.ca/the-us-dollar-and-bretton-woods-are-finished-the-bricssco-summits-in-ufa-marks-the-start-of-a-silk-world-order/5461828

7-Year Cycle Predicts 2015 Collapse


by MichelleWalling on March 22, 2015
By Will Hart,
Source

1966: Stock market collapse, Vietnam War, protests

1973: Oil embargo (Oct), Yom Kippur war, Stocks collapse, recession

1980: Inflation, Iran-Iraq war, Silver panic, Stocks crash, recession

1987: Black Monday (Oct.), largest single-day crash ever

1994: Bond collapse, DJIA bear market, war

2001: Stock market crash, 911 (Sept.), recession

2008: Stock market collapse 9/29 (Sept.), recession

2015:

In 1966, the Vietnam War was escalating and the US-USSR Space Race was also heating up. The economy and the stock market were in a bull phase and LBJ was president. He inherited a growing economy with low inflation, low unemployment and a stock market that was in a long-term uptrend.

Hard to imagine but the national debt was relatively small. Additionally, in 1965 the GDP (4%) was higher than the unemployment rate (3.3%) the reverse of what we’ve seen in recent years. The FED kept interest rates low (1 to 2.5% range), in the post-WWII years. That fueled both economic and financial market growth through the 1950’s and early ‘60s.

Then as 1966 began the FED started tightening the credit reins by raising interest rates.

Still, everything looked rosy as the year got underway the DJIA hit a new high. Then it pulled back briefly only to rack up another high in March. But thereafter the Dow collapsed some 22% by yearend.

There is no doubt that this was a watershed year. Many stock market analysts and economists claim that 1966 was the start of a bear market that lasted until 1982. In addition to the Viet Nam war, which triggered civil unrest and protests, 1966 saw riots in several urban areas.

We can see that this was a pivot point that was accompanied by rising interest rates, a falling stock market, social tension and chaos.

Seven years later, in 1973, inflation was heating up, 6.1% in the US 8.4% in the UK. 1972 had been a good year and the market was up 15%. 1973 was expected to be another banner year.

But the bear quickly reared its menacing head. Stocks lost 45% when the bear market that began in ’73 ended in ’74. The UK fared even worse losing 70%. Both countries had their economic growth eviscerated as they fell into recessions.

In addition to the factors mentioned above, low oil prices during the 1950s and ‘60s had helped keep energy costs down and inflation relatively low. But then the Arab Oil Embargo shocked the world- that occurred in October. Oil skyrocketed 200% in short order. The embargo was brought on by the Yom Kippur War, which preceded the embargo by several weeks.

Those events did not cause the collapse in the stock market, as we saw it began sliding in January and finished the year sharply lower.

Leading up to this period the FED had an easy money policy, as noted above. That may have worked but for two additional factors 1) financing the war in Vietnam and 2) financing larger government (Great Society) entitlement programs. Though the oil embargo is often blamed for the ’73 crash, easy money and increasing federal deficits had already triggered inflation.

In late ’72 the FED turned from stimulating economic growth to combating “the possibilities of the re-emergence of inflation” (FOMC published minutes). The resultant tightening had a swift impact on the stock market.

Once again, we can readily identify 1973 as a pivotal, tipping point year that brought rising interest rates, a falling stock market, war and then a severe recession.

There is a very important sidebar that must be inserted here. It is called ‘the Nixon shock’ and for good reason. It is one of the most radical, far reaching Executive Orders ever signed by any president. Yet few Americans understood its significance at the time and fewer still, know about it today.

After World War II, and up until 1971, the US dollar was backed by gold.

That meant that dollars were convertible to gold and it is the sole reason that the dollar was said to be, “as good as gold”. Nixon unilaterally cancelled convertibility. Which meant that with a stroke of a pen, and no public input, Richard Nixon instituted the era of fiat money creation that we are still laboring under here in the Brave New World Order, circa 2015.

What that did was to cause an immediate devaluation of the dollar, which in turn caused the 44-year drop in the value of our currency to its current level. That is a part of the backdrop to the events that unfolded in 1973 since the devaluation also boosted the inflation rate.

Then 7 years later, in 1980, inflation was the mass media’s favorite buzz-kill word, it peaked at 13.5%. Gold soared to $850. The war between Iran and Iraq began that year. The higher price of oil established in ’73 helped push inflation up throughout the decade.

In October 1979, under Chairman Paul Volcker, the FOMC changed its approach to monetary policy and began to target the quantity of money—specifically non-borrowed reserves. Volker essentially slammed on the brakes by ratcheting up interest rates. In one fell swoop the FED funds rate went from 6% in ’78 to 10% in ’79.

One again the stock market reacted quickly by going into a swoon and falling from near 1000 down to 759 in 1980. In addition the economy fell into a recession that lasted from January to July. The very high interest rate policy was maintained until 1982. (The Reagan Recession years)

Naturally the desired drop in inflation came, and that boogey-man has never returned in any uncontrolled way. But the markets and economy paid the price, in terms of a slumping shares and a stagnant economy, burdened under interest rates between 10 to as high as 20 percent. .

Once again it was a tipping point year that brought economic and financial crisis and international warfare.

Next, in 1987, on Oct. 19, the US stock market crashed by 22.6% the single largest, one-day collapse in history. Interesting to note that oil prices dropped sharply in 1986, a signal that we will see again in future collapses. This massive financial tremor shook markets around the globe.

Another point of interest, the Stock Market penetrated 2000 for the first time in January and then above the 2500 mark in July. These were obviously bear trap moves that would eventually ensnare the bulls when the infamous Black Monday slammed everybody to the ground in the fall.

Surprisingly, this massive, global quake did not take down the US economy.

Nonetheless, 1986 to mid-1987 is a prime example of how an outwardly-strong stock market may not be indicative of the actual health of an economy. (We see that today) The Dow Jones in particular was at a record high, but the underlying economy had weaknesses that would be exposed in the coming months.

Oil prices sank from $30 to $20 from late 1985, until the beginning of 1987. This did not serve to boost the US economy which started to falter in ’85. GDP fell from a peak of 7.3% growth in ‘84 down to 4.5% in ’85 Then down to 3.5% in ’86 and it finished ’87 with that same figure as well.

The problem throughout the ‘80s was that the FED kept interest rates too high. The rate bounced around from a low of about 5% to a high of 14%, after the peak of 20% in 1980. Clearly the FED was intent on choking inflation to death even though it was comatose already. Inflation averaged about 2.5% during the decade.

Nobody predicted the Black Monday financial slaughter once again it came in the midst of a bull market. Furthermore, no one has since given a really convincing explanation of what caused it. All of a sudden, on a dark day in October, everything went down and dropped like a rock to the bottom… everything including the alleged chaos hedge, gold.

The next 7-year wave peaked, in 1994. This year is known for what is called “the Great Bond Massacre”. Even though inflation was low, the FED was still fighting it like French Generals do the last war instead of the current one.

In an article dated October 17, 1994 by Al Ehrbar on CNN Money penned an article entitled ‘THE GREAT BOND MARKET MASSACRE.

“Fortune estimates that the rise in 30-year Treasury rates from 6.2% at the start of the year to 7.75% in mid- September has knocked more than $600 billion off the value of U.S. bonds. And with long-term rates rising in every major country, the worldwide decline in bond values this year figures to be on the order of $1.5 trillion.”

Even though they had already squeezed inflation out of the system, the FED raised rates once again. If you have been keeping track you probably noticed that not only do these shocks-to-the-system occur every 7 years, they seem to strike in Sept. or October.

The next two crises, 2001-2008, will not deviate from this pattern in any way.

It is troubling that the FED ignored the rather high rate of unemployment of 6.2%, which showed that the economy was not overheated at all. Nonetheless, they moved interest rates up 3% in 100 days. This also triggered a stock market selloff and shares dropped 7% from January through May.

The war was going on between Serbia and Croatia this year and the Russians attacked Chechnya in December. For the fifth time we see the 7-year wave bring rising interest rates, conflict and financial calamity.

The wave moved forward another 7 years. In 2001, we have a very explosive example of the underlying dynamics. First, the author will clearly show that the stock market was already sagging in March, long before the disastrous events of 911 triggered another one-day crash.

US stock market investors suffered their greatest ever one-week losses during the week of March 12-16, 2001. The Dow Jones Industrial Average experienced three sharp declines in five days, including a drop of over 400 points on Monday and a 227-point drop on Friday, with a total weekly decline of 821 points—a loss of 7.70 percent. The S&P 500, a broader average of Wall Street stocks, showed a 7 percent decline, while the high tech-dominated NASDAQ index fell 8 percent

The events of 911 need not be repeated here except to note that they, like others in the 7-year wave, occurred in September. Now note the 7.70% decline above, because stocks will lose another 7% on Sept. 17, 2001. The Dow declined 684 points on that day, which was the first trading day after the attack on the Twin Towers.

The FED funds rates in 2000 and 2001 were still high, averaging about 6% from2000 to 4/01. Compare those rates to the near 0- 0.25 over the past 5 years. The board only lowered rates after the stock market got clobbered in March. By Sept. they had cut the rate in half and then in half again by the end of the year.

But do not get confused, the oil embargo did not create inflation, it exacerbated it, and 911 did not trigger the stock market selloff, in fact, that began 6 months earlier. What about oil prices during this period? Once again, oil peaked at about $34 in 2000 and then dropped some 25% by 911 to $24.

Here again we see that sharp declines in oil prices seem to precede similar declines in the stock market. Well, this ought to put us on high alert given what has happened to oil prices since mid 2014. Do not forget that the Dot.com bubble also produced record highs that were quickly sheared off.

In retrospect, the FED kept their anti-inflation policy in place for too long all the way into the early 2000s. But they would soon learn the lesson and get a new religion after the events of 2001 led to the economic slump of 2002. Even more so, after the Great Bubble Collapse of 2008 grabbed them by the throat.

Again, 2001 brought social conflict, financial calamity and it was the pivot point that triggered a cascade of negative events that would go on for years, including the wars in Iraq and Afghanistan.

Another 7- year period would elapse and bring us to Sept. 29, 2008. On this infamous day stocks skidded, with the Dow slumping nearly 777 points, the biggest single-day point loss ever. Approximately $1.2 trillion in market value vanished in a twinkling.

Again, seven years to the month exactly from the 2001 crash. But apparently no one noticed this pattern because the financial presstitute corps never mentioned it. Is it any surprise at this point that after lowering interest rates from 2001 to 2004, the FED started ratcheting them up again?

From 2004 to 2007 they went from 1% back up to 5%. Bam, the brakes were slammed again, and the stock market and economy went through the windshield this time. Well, the FED had not quite learned their lesson yet.

Oh, once again oil prices ran up in 2007 to a $133 peak in June ‘08 then tanked by almost 30% in the 3 month period to September.

This reporter would advise against getting caught up in the intricate, overly complicated, talking-heads narratives that the government, media and academia spin around these collapses. You are supposed to miss the simple, underlying factors outlined in this article.

That brings us to the next 7-year point in the cycle, 2015.

We are indeed in a Brave New World of globally, interconnected, wildly gyrating economies. From the point of the last collapse until now, the FED has tried to stimulate the economy by essentially keeping interest rates at near 0 for 6 years. (For the first time in history) Yet the once vibrant economy has been acting like a Zombie.

Where is the old GDP growth that much less stimulus used to create? Gone, a thing of the past, but you say, the Stock Market is at all time highs. Did you pay attention to the above?

Oil prices have been cut in half over the past 10 months. The dollar has risen and you are being told that lower oil prices will help the economy and stock market. No they won’t. The global economy is in the throes of a massive deflationary wave. Commodity prices peaked in 2011 they have been falling ever since oil was simply the last to fall.

Lately, everything from oil and gold to foreign currencies are down. The last holdout is the Stock Market. Why should it alone stay up? Interest rates have nowhere to go but up. However, the FED is constrained because the strong dollar is already hurting imports and overseas corporate profits.

In addition, none of the most recent economic and business news is positive. Retail sales were down during the 2014 holiday season. The FED has learned — instead of raising interest rates — they are jawboning the dollar up by intimating that they will raise rates in June.

In fact, they cannot do that without hitting the kill-switch as they have done in the past as we have seen above repeatedly.

When will the collapse come? I think you have already figured that out at this point…

Will Hart is a journalist and author. His magazine credits include Nexus, Wild West, Atlantis Rising, New Dawn, UFO, Nature Photographer and numerous other periodicals. His first book ´The Genesis Race¨ (Inner Traditions) is available on Amazon and his second in the series, ´Cosmic Ancestry´ will be available in June, 2014 also on Amazon.

http://howtoexitthematrix.com/2015/03/22/7-year-cycle-predicts-2015-collapse/

IT’S OFFICIAL: BRICS BLOC EXAMINING ALTERNATIVE INTERNATIONAL CLEARING SYSTEM TO SWIFT


IT’S OFFICIAL: BRICS BLOC EXAMINING ALTERNATIVE INTERNATIONAL CLEARING SYSTEM TO SWIFT

Most regular readers here know that I and others have for some time been predicting that the BRICSA bloc, if they are to make their bi-lateral currency and trade agreements, bypassing the dollar, stick, and if they are to make their development banks truly be alternative competition for the financial instutions of the west such as the IMF and World Bank, then they will have to develop their own alternatives to yet another western financial institution: SWIFT, the Society for Worldwide Interbank Financial Transfer. They will, in short, have to develop their own international financial clearing system. While there has been talk suggestive of this possibilityin the past, it has fallen short of coming straight out and stating it…

… until now, in this article from RT, shared by Mr. J.T.:

Home / Business / ​BRICS starts examining SWIFT alternative

The closest we’ve seen before this to such discussions have been with bilateral talks between Russia and China, which I covered in this blog last year: RUSSIA AND CHINA IN FORMAL TALKS TO ESTABLISH AN ALTERNATIVE TO SWIFT FOR INTERNATIONAL FINANCIAL CLEARING.  But as can be seen from the RT article, this is now an explicit, BRICS-wide discussion:

“The BRICS members have kicked off consultations on an alternative to the global SWIFT system that processes about 1.8 billion financial messages annually, said Russian Deputy Foreign Minister Sergey Ryabkov.

The BRICS system for the transmission of financial information is expected to protect the member countries from any possible disruptions, and provide better security.

“The finance ministers and executives of the BRICS central banks are negotiating … setting up payment systems and moving on to settlements in national currencies. SWIFT or not, in any case we’re talking about … a transnational multilateral payment system that would provide greater independence, would create a definite guarantee for[BRICS – ed.]countries on risks associated with arbitrary decisions …made by countries that have current payment systems under their jurisdiction,Russian Deputy Foreign Minister Sergey Ryabkov toldRIA in an interview published Wednesday. (Boldface emphasis added)

Just how quickly the BRICSA bloc will be able to implement such a system remains to be seen, but if current indicators are any measure, it will probably be a lot faster than the West would wish. After all, the bloc was able to develop its development bank in short order.

There’s a geopolitical consequence here that, I am bold to suggest, few people are entertaining, but it is a significant one and one that, I suspect, the BRICS bloc are counting upon, and that is that once their clearing system is up and running, and a demonstrably stable and secure system, then it could very well be that other nations, particularly in Europe, will conduct their trade with the BRICSA bloc utilizing that bloc’s clearing system, and bypassing SWIFT. And that means, in the long run, that they will slip more and more out from under the American thumb….

See you on the flip side…

Joseph P. Farrell has a doctorate in patristics from the University of Oxford, and pursues research in physics, alternative history and science, and “strange stuff”. His book The Giza DeathStar, for which the Giza Community is named, was published in the spring of 2002, and was his first venture into “alternative history and science”.

” The Financial RESET & Triple Digit SILVER” CEO Keith Neumeyer ~ SGTreport.com


Keith Neumeyer, the outspoken and courageous CEO Of First Majestic Silver and Chairman of First Mining Finance joins me to dissect the obscene levels of precious metals manipulation by the international banking cabal. Neumeyer has led the charge of exposing the manipulation of silver via the paper markets and in 2014 suggested that silver mining companies ban together to form their own OPEC style “cartel” and withhold PHYSICAL silver production from the market. However, to date NOT ONE other mining CEO has had the will, tenacity or courage to join Neumeyer or even respond to him in any way. Mr. Neumeyer has since joined Ted Butler and GATA’s efforts to get the CFTC to take action to put an end to the criminality on the Comex as it relates to the manipulation of silver’s price.

“Wealth is moving from West to East… The world is changing and people need to be aware of that change in order to protect themselves and I think having precious metals in their portfolio is critical.” – Keith Neumeyer

Mr. Neumeyer joins us today to discuss all of these issues and much more. Thanks for tuning in.

Euro zone sets emergency summit on Greece as money flees



2015-06-18

From: reuters.com

Euro zone leaders will hold an emergency summit on Monday to try to avert a Greek default after bank withdrawals accelerated and government revenue slumped as Athens and its international creditors remain deadlocked over a debt deal.

See video here: New round for Greek stand-off

Finance ministers of the 19-nation currency bloc failed to make any breakthrough on a cash-for-reforms agreement at talks

in Luxembourg on Thursday, just 12 days before Greece must make a crucial debt repayment to the International Monetary Fund.

The European Central Bank told the meeting it was not clear whether Greek banks would be open on Monday, officials said.

“Regrettably … too little progress has been made. No agreement is in sight,” Jeroen Dijsselbloem, chairman of the Eurogroup, told a news conference. Ministers sent a strong signal that it is up to Greece to make new proposals, he said.

European Council President Donald Tusk said in a statement he had summoned heads of state and government of the euro area to meet in Brussels at 1700 GMT on Monday to discuss Greece “at the highest political level”.

IMF Managing Director Christine Lagarde said further dialogue was needed “with adults in the room”.

Greece said it had put a “radical proposal” for budget monitoring on the table to show its willingness to reach a deal, the finance minister said.

Dijsselbloem said if there was a last-minute deal next week, there would have to be some extension of the current bailout to allow time for disbursement.

Greek savers pulled out some 2 billion euros between Monday and Wednesday after weekend negotiations collapsed in Brussels, senior banking sources told Reuters. That is double the amount that the European Central Bank granted Greek banks in extra emergency liquidity assistance (ELA) this week.

Read more: reuters.com

Source: http://www.redicecreations.com/article.php?id=33609

 

A Global Financial Reset Is Coming: ‘A Deal Is Being Made Between All The Central Banks’


central-banks-currencyThere is an unprecedented reset coming to world financial markets and if you’ve been paying attention it’s impossible to ignore the signs. In fact mega-investment funds, governments and central banks have been secretly buying up and storing physical gold in anticipation of an event that will leave the U.S. dollar effectively worthless and governments around the world angling for a new global currency mechanism, according to mining executive Keith Neumeyer.

But before the reset can happen Neumeyer, who recently founded First Mining Finance and has partnered with billionaire alternative asset investors like Eric Sprott and Rick Rule, says that foreign creditors must first deleverage their U.S. dollar debt, a move that is happening right now and is evidenced by the recent strength of the U.S. dollar.

Once these U.S. debt holders unwind their positions, however, the dollar will be allowed to crash and we should prepare for a total financial, economic and monetary realignment.


(Watch the full interview at Future Money Trends)

With the central banks now buying gold… which is quite unique… we haven’t seen that  in our lifetimes… they’ve always been sellers of gold and now they’re buyers of gold… I think there will be a reset of the financial industry… 

I think China is being allowed to accumulate gold purposefully by the American government… I believe that the Chinese need to own at least the same amount as the U.S. owns before this reset occurs. I think that there’s some kind of deal that’s being made between all the central banks behind the scenes and that’s why you’re seeing governments accumulating the metal.

I do believe there will be some kind of new currency created with the backing… and it might not be a direct backing of the metal… but it’ll be some kind of blend of currency.. it could be through SDR’s… Special Drawing Rights… or some type of mechanism… I think that’s where we’re going.

And when that reset occurs I think gold will be left to rise… and I wouldn’t be at all surprised to see three…four… five thousand dollar gold over the next five years.

Because the price of gold has been suppressed to allow governments and central banks to accumulate it cheaply, Neumeyer sees opportunity in the mining industry and that’s why his latest mineral bank project is mimicking their actions and buying up physical mining assets around the world.

And though Western mainstream media pundits argue that the recent strength of the U.S. stock market and the U.S. dollar are proof positive that an economic recovery has taken hold, Neumeyer says exactly the opposite is happening.

The reason for the recent rise in the value of the world’s reserve currency, he suggests, is a result of the massive unwinding of U.S. debt as private investors and governments around the globe know a rush for the exits is coming soon:

The view on the strength of the dollar recently is the fact that it’s short-term. You’ve got so much U.S. debt out there and governments are now getting rid of their U.S. debt and converting all the debt to local debt… that’s causing a huge demand for dollars in order to make that conversion,so this whole dollar rally is basically a deleveraging against the U.S. dollar… you’re not seeing that story showing up anywhere in North America.

Once the world is deleveraged than the U.S. dollar… then basically the U.S. dollar will crash and that will be the beginning of this new reset.

Everything, of course, is very hush-hush but, as Neumeyer explains, most of the influential players involved know exactly what is going on and they are making their moves right now to ensure they survive the coming financial reset:

The gold accumulation that’s going on… this is gold that’s outside of the system… you don’t hear about it… these are big sovereign wealth funds, these are government funds, these are banks that are buying the physical metal… they are very intimately involved in the sector and they know what’s going on.

Definitely world governments and central banks around the world are unwinding their U.S. debt. They’re trying to bring their debt home and that’s causing the upside pressure on the dollar.

If Neumeyer is right, and all the signs suggest his assessment is fairly accurate, then the recent strength of the U.S. dollar will be short-lived. Once deleveraging by governments and central banks has been completed they will unleash an economic, financial and monetary storm that will change the very fabric of the global order.

The consequences are difficult to predict, but given that these entities have been buying up gold like their lives depended on it, the notion of an ounce of the precious metal being valued at $5,000 per ounce isn’t out of the question.

You can watch Keith Neumeyer’s full interview here. To learn more about theFirst Mining Finance Corp mineral bank project with billionaire contrarian investors Eric Sprott and Rick Rule, click here.

Courtesy of SHTFplan.com

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http://www.dcclothesline.com/2015/04/06/a-global-financial-reset-is-coming-a-deal-is-being-made-between-all-the-central-banks/

China’s international payments system is almost ready


A clerk counts Chinese 100 yuan banknotes at a branch of China Construction Bank in Nantong, Jiangsu province December 2, 2014. REUTERS/China Daily Thomson ReutersA clerk counts Chinese 100 yuan banknotes at a branch of China Construction Bank in Nantong

HONG KONG (Reuters) – A long-awaited China International Payment System (CIPS) that would facilitate international usage of the yuan is ready and may be launched as early as September or October, three sources with direct knowledge of the matter told Reuters.

The system, which would be a worldwide payments superhighway for the yuan, will replace a patchwork of networks and allow hassle-free renminbi transactions, greatly boosting the internationalization of the Chinese currency.

“The CIPS is ready now and China has selected 20 banks to do the testing, among which 13 banks are Chinese banks and the rest are subsidiaries of foreign banks,” said a senior banking source who is involved in the matter.

“The official launch will be in September or October, depending on the results of the testings and preparation,” the source said.

A second source with direct knowledge of the matter said authorities are striving to launch the first phase of CIPS before December.

“It’s not a plan but we are trying our best to have the first phase (of CIPS) online before the end of this year,” said the source, who declined to be named because he is not authorized to speak to the media.

“If it’s all smooth, (the launch) will be in September or October. If there is a need for a bit more time, we are still confident about (rolling it out) before the year-end,” he said.

The People’s Bank of China was not immediately available for comment when contacted.

(Reporting by Michelle Chen and Saikat Chatterjee in Hong Kong and Koh Gui Qing in Beijing; Editing by Richard Borsuk)

Read the original article on Reuters. Copyright 2015. Follow Reuters on Twitter.

Ed. Note:  September and October are forecast to be months of great change, including a possible collapse of the dollar. And, the Pope is meeting with Obama in the White House, then he addresses Congress and the U.N.in the last week of Sept. The last blood moon is also in September.
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