Bank Of England Warn Of “Challenging” Outlook For Britain’s Financial System

Ulster Bank Parent RBS Fails Bank of England Stress Test

“Royal Bank of Scotland (RBS)(RBS.L) will cut costs and sell assets to boost capital levels, it said on Wednesday after failing this year’s Bank of England stress test, which warned of a “challenging” outlook for Britain’s financial system.

The state-backed lender rushed out a statement following the announcement to say it would take a range of actions, including selling off bad loans and cutting costs to make up the capital shortfall identified by the tests of around 2 billion pounds.

The unexpected result underlines the litany of problems RBS is grappling with, which include a mounting legal bill for misconduct ahead of the 2008 financial crisis and difficulties selling off assets such as its Williams & Glyn banking business.

The lender said it had agreed a plan of action with the Prudential Regulation Authority, the Bank of England’s enforcement arm, that should mean it does not have to tap markets to raise the money needed.”
From Reuters

We warned of the RBS, Ulster Bank ‘£100 Billion Black Hole’ and the bail-in risk due to the ‘danger of failing’ in June 2014 here

Bail-ins can now be used in the UK, EU, U.S. and G20 countries. Banks internationally and especially in Europe remain vulnerable. See full post here…


Market euphoria for Trump. Find out why.

Markets are hitting all time highs. Of these markets Walt Whitman might have said, “Trump was elected. I forget the rest.” Such has been the euphoria that all those warnings, those insults and slander have been forgotten. Double Down asks former Goldman Sachs banker, Nomi Prins, why investors have fallen so suddenly and desperately in love with Trump. She throws cold water on this doomed love affair, reminding those high in euphoria that there are the promises the President-elect made on the campaign trail and the reality of what he can actually do once in office.

CLICK ON IMAGE BELOW TO LISTEN

Click this image to listen!

Click this image to listen!

CLICK ON IMAGE ABOVE TO LISTEN


[KR999] Keiser Report: Attractive Debts

We go on the road, in a golf cart, to talk models – macroeconomic models and how changing the model can magically make debt appear more attractive. We look at failed models like health care and the economics of ‘draining the swamp.’


Stripe Valuation to reach $9.2 billion, Positive news for Bitcoin?

In March 2014, CEO Patrick Collison announced that Stripe would support bitcoin transactions. Owing to the zero-fee structure of the Bitcoin network, the cryptocurrency immediately became an …

Read More


The Corporate Media’s Gulag of the Mind

One of the most remarkable ironies of The Washington Post’s recent evidence-free fabrication of purported “Russian propaganda” websites (including this site) is how closely it mimics the worst excesses of the USSR’s Stalinist era.

Those unfamiliar with the Stalinist era’s excesses will benefit from reading Solzhenitsyn’s three-volume masterpiece The Gulag Archipelago: 1918-1956, The Gulag Archipelago 2 and Gulag Archipelago 3.

One episode is especially relevant to the totalitarian tactics of The Washington Post’s evidence-free accusation. Solzhenitsyn tells the story of one poor fellow who made the mistake of recounting a dream he’d had the previous night to his co-workers.

In his dream, Stalin had come to some harm. In Solzhenitsyn’s account, the fellow was remorseful about the dream.

Alas, mere remorse couldn’t possibly save him. He was promptly arrested for “anti-Soviet thoughts” and given a tenner in the Gulag–a tenner being a ten-year sentence in a Siberian labor camp.

The Washington Post’s accusation is based on a “behavioral analysis”–in other words, publicly sharing “anti-Soviet thoughts”–in our era, the equivalent is sharing anti-Establishment thoughts.

Read more ›

Tagged with: ,

Peak Silver Cometh – Supply Deficits Continue Meaning Higher Prices

  • Peak Silver – Supply deficits continue meaning higher prices
  • May have experienced a peak in world silver production
  • Global silver market suffered another large net supply deficit in 2016
  • Peak silver likely as global silver production will decline to 887 million oz (Moz), down from 893 Moz in 2015

“While forecasted global silver production for 2016 is down only slightly versus last year, GFMS also stated this in their report:

We estimate that mine supply peaked in 2015 and will trend lower in the foreseeable future.

Declining total supply is expected to be a key driver of annual deficits in the silver market going forward.

I will get to the annual silver deficits in a minute, but let’s look at their world silver mine supply by region:

“What is interesting here, is that GFMS forecasts the number one silver producer, Mexico, to be down in 2016 by more than 6 Moz.  Last year, I forecasted that global silver production would likely be lower in 2015.  I was going by data by the “World Metals Statistics.”  However, Mexico’s INEGI (government agency) considerably revised their figures higher for 2015.  While I have seen revisions take place, the revisions by Mexico’s INEGI for 2015 were quite substantial.

Read full story here…


Thank You and Welcome New Readers – A Liberty Blitzkrieg Mission Statement

Screen Shot 2016-11-28 at 8.59.31 AM

I am not a Democrat or a Republican. I do not consider myself a libertarian, progressive, socialist, anarchist, conservative, neoconservative or neoliberal. I’m just a 38 year old guy trying to figure it all out. Naturally, this doesn’t imply that there aren’t things which I hold dear. I have a strong belief system based on key principles. It’s just that I don’t think it makes sense for me to self-label and become part of a tribe. The moment you self-label, is the moment you stop thinking for yourself. It’s also the moment you stop listening. When you think you have all the answers, anyone who doesn’t think exactly as you do on all topics is either stupid or “paid opposition.”  I don’t subscribe to this way of thinking.

Read more here.

Tagged with: , , , , ,

The Engine of Inequality: Privilege

We all know wealth/income inequality is soaring. I’ve published many entries on this topic (please see the three charts below as a refresher), and it’s clear there are multiple sources of rising inequality: globalization and technology, which concentrate gains in relatively few hands, and inflation, which reduces the purchasing power of stagnating real wages.

But the dominant source of inequality is privilege–specifically, privilege that is institutionalized by the status quo.

This engine of inequality–institutionalized privilege–is the topic of my new book, Inequality and the Collapse of Privilege($3.95 Kindle ebook, $8.95 print edition).

The word “privilege” is tossed around rather loosely. What does it mean in economic and social terms? I differentiate between privilege, which is unearned, and advantaged, which is earned.

To reverse rising inequality, we must dismantle the institutionalized power of privilege and create universally accessible pathways to the advantages of building capital. A key part of my analysis is causally linking rising inequality, poverty and privilege.

Read more ›

Tagged with: , ,

Jim Willie Issues Financial Collapse Warning: “Fuse Has Been Lit!”

Jim Willie Has Issued A Systemic Lehman Event Warning,
Except This Time, The Entire Global Financial System Will Erupt Like A Debt Volcano…“:

 

Many are the potential fuses to be lit, which would create the conflagration, the massive bonfire of the bond vanities and bank charades. Many are the fuses lying around, all criss-crossed, all exposed, all overlapping each other in highly dangerous manner.

If any single fuse is lit, then several will light and the detonation arrives. It is unavoidable since the financial world is so deeply interwoven. Never in modern history has the global financial structure been so badly weakened, so totally corrupted, so thoroughly undermined by control mechanisms, so intensely defended by sanctions even war.

In 2007 and early 2008, the Jackass warned of a mortgage bust that would alter the global system forever. It happened with far reaching consequences which endure to this day.

In recent months the Jackass is warning of a Systemic Lehman event, where several major national systems are at heightened risk of a similar bust like what happened in September 2008.

 

Except this time, the entire global financial system will erupt like a debt volcano, with several epicenters, all located in the West. The big Western banks are all lashed together, all tied to each other. The banker cabal believed that the interconnectivity within their bank structures would make them all immune to failure risk.

The reality is that the failure of any one major bank guarantees the systemic breakdown of all of them. It will erupt like a cave-in of the flying buttresses at the Notre Dame in Paris, with numerous bank (churches) collapsing, all located in the West.

Gold Market Arbitrage Breakdown

Ever since the Shanghai Gold Exchange opened and the London Gold Fix was exposed as a grand fraud, the pressures have risen on arbitrage within the gold market. A hidden battle has been waged, sometimes intense with big gaps, often mild with smaller gaps, between the East and West. The arbitrage gap is currently around US$20-25 per ounce in price, but could change quickly and suddenly. It is likely to rise to hundreds of dollars, but gradually, and later perhaps in large chunk increments. The result will be the wreckage of paper Gold & Silver bullion markets.

 

Big players would be free to buy cheap gold in London, sell dear in Shanghai, and bust the fraudulent market wide open. When the gold market arbitrage undergoes a collision between reality of physical gold in movement and the fantasy of phony paper market pricing, the Western banks go poof and the USDollar dies. 

FINAL SOLUTION

When the collapse occurs, the solution will finally be discussed, the solution avoided for eight full years.
THE GOLD STANDARD WILL BE INSTALLED.

Click Here For Jim Willie’s Full HAT TRICK LETTER:

Tagged with: , , ,

Banker Scaremongering In FT re €4 Trillion Italian Banking System as Referendum Looms

  • Bail in risk – €4 Trillion Italian banking system at risk as referendum looms Sunday according to Financial Times

  • Concerns of multiple bank failures – Eight banks at risk of failure and bail ins

  • Monte dei Paschi di Siena, third largest by assets and mid-sized banks Popolare di Vicenza, Veneto Banca and Carige and four smaller banks

  • Italy’s banks have €360 billion of problem loans

  • Contagion poses risks to Unicredit, Italy’s largest bank by assets and only globally significant financial institution

  • Bail in risks highlight importance of deposit diversification and gold

  • Imprudent to have all ‘savings eggs’ in ‘bankers basket’

bail-in-risk(Copyright The Financial Times Limited 2016)

“Up to eight of Italy’s troubled banks risk failing if prime minister Matteo Renzi loses a constitutional referendum next weekend and ensuing market turbulence deters investors from recapitalising them, officials and senior bankers say.

Mr Renzi, who says he will quit if he loses the referendum, had championed a market solution to solve the problems of Italy’s €4 trillion banking system and avoid a vote-losing “resolution” of Italian banks under new EU rules.”

Financial Times

The Italian banking system looks vulnerable to collapse whether the referendum is passed in Italy or not. Were the referendum passed, it may allow senior Italian and international bankers to further ‘kick the can down the road’ and delay the inevitable.

Read full story here…


Blockchain announces 10 Millionth Bitcoin Wallet, Unveils new features

Soon after the U.S elections, Peter Smith, CEO of Blockchain revealed that there’s a marked uptrend in the number of people embracing Bitcoin since Trump emerged as president. Blockchain is a London-based provider of …

Read More


The Power Struggle Unfolding Before Our Eyes

fist-through-wall-130417814

The masses have (finally!) reached the point where the pain of maintaining the status quo now exceeds that of breaking it. A People’s Coup has been set in motion, of which the election of Trump is just an early example of the unexpected and jarring surprises that lie ahead.

What will this coup look like? Will it succeed?

Click here to read the full article