Is This How the Next Global Financial Meltdown Will Unfold?

I have long maintained that the structural imbalances of debt and risk that triggered the Global Financial Meltdown of 2008-2009 have effectively been transferred to the foreign exchange (FX) markets.

This creates a problem for the central banks that have orchestrated the “recovery” by goosing asset bubbles in stocks, real estate and bonds: unlike these markets, the currency-FX market is too big for even the Federal Reserve to manipulate for long.

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Hang Onto Your Wallets: Negative Interest, the War on Cash, and the $10 Trillion Bail-in

In uncertain times, “cash is king,” but central bankers are systematically moving to eliminate that option. Is it really about stimulating the economy? Or is there some deeper, darker threat afoot?

Remember those old ads showing a senior couple lounging on a warm beach, captioned “Let your money work for you”? Or the scene in Mary Poppins where young Michael is being advised to put his tuppence in the bank, so that it can compound into “all manner of private enterprise,” including “bonds, chattels, dividends, shares, shipyards, amalgamations . . . .”?

That may still work if you’re a Wall Street banker, but if you’re an ordinary saver with your money in the bank, you may soon be paying the bank to hold your funds rather than the reverse. Read more ›

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The War on Encryption and Bitcoin – Nothing to Do with Terrorism, Everything to Do with State Control

Politicians and intelligence agencies throughout the Western world are currently engaged in an all out, shameless propaganda campaign to exploit the recent terror attacks in Paris to convince the citizenry that it should relinquish privacy for absolutely no reason.

The primary targets of the post-attack push have been encryption generally, and Bitcoin specifically. Of course, you don’t need me to tell you that these are two sides of the same coin. Both strong encryption for communication, and Bitcoin for transferring value, provide a level of freedom and dynamism outside of the oligarch-controlled, centrally planned, feudal global economic system. As such, these two tools must be demonized and eradicated to the extent possible.

Read the rest here.

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Mine Production Stagnates As Silver Coin Demand Hits Record High

Thomson Reuters has released their interim Silver Market Review including provisional supply and demand forecasts for 2015.

Highlights from that report include:

– Total silver supply is forecast to fall to 1,014.4 Moz* in 2015, down 3%
– Silver bullion coin sales at record high, up 95% year-on-year
– Coin demand should account for 12% of physical demand this year
– Silver market is expected to be in an annual physical deficit of 42.7 Moz* in 2015
– Silver prices this year are 18.3% lower than in the same period in 2014
*Millions of Oz

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[KR838] Keiser Report: Radical Ideas to fix Inequality (ft Varoufakis)

We briefly discuss the former financial regulator, warning that we need radical ideas on fixing inequality by looking back on some old ideas about private banks creating too much credit. Max then heads to the South Bank in London near Waterloo to meet Yanis Varoufakis, the former Greek Finance Minister. In the second half, Max continues his interview with Varoufakis regarding the Greek financial crisis – and whether or not the bureaucrats of the Troika are incompetent or malicious with their failed programs.

The Federal Reserve, Interest Rates and Triffin’s Paradox

One result of the global dependence on central bank interventions is a unhealthy fixation on the slightest changes in those interventions, oops I meant policies.

Since the slightest pull-back in central bank inflation of asset bubbles could spell doom for the global economy and everyone holding those assets, the world now hangs on every pronouncement of the Federal Reserve in a state of extreme anxiety.

Why the extreme anxiety? Because any change in Fed intervention creates both winners and losers. There is no way Fed policy can be win-win-win for all participants, and to understand why we turn to Triffin’s Paradox, a.k.a. Triffin’s Dilemma.

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Banks Are Great, ISIS Is Contained, and New York Is Living the High Life


Largest US Banks to Raise $120B Needed Capital

Seven years after the crisis and billions in bonuses later, large US banks are being asked to raise $120 billion in capital. Regulators were forced into it. The $120 billion is the result after banks pushed back a higher number, and I believe this number will be pushed back even more in future, since banks are fighting tooth and nail. ZIRP is a massive gift at the expense of taxpayers and savers. So will the Fed raise rates? We’ll see. If banks have their way, and so far they always do, NIRP will be next.

Nearly Seventy Were Arrested in the USA Over ISIS Plots, Including Some “Refugees.” Many More to Come.

This is just the beginning. I don’t think that bombing, killing innocents, and destroying the property of innocents will solve anything. Hitting hard targets will. But that takes on-the-ground intelligence: background checks, a large team with various language skills and cultural savvy to investigate. The USA lacks the resources. That’s why the “refugee” policy is so reckless, and the Middle East “strategy” is so muddled.

Unveiled Threat: A Personal Experience of Fundamentalist Islam and the Roots of Terrorism was just released as an audio book on Audible, iTunes, and Amazon. Read a free excerpt.

The “High” Life

In the 60s, a typical business lunch included steak, and a couple of scotches followed by chocolate ice cream. How quaint. Today, hiring hookers who bring drugs, hormones and/or steroids is considered chic. What does the news that Charlie Sheen has HIV mean for Wall Street? Well, he used the same prostitution networks as some boldface Wall Street names.

Here’s a brief risk assessment (besides from the activity that first springs to mind): repackaged blood-contaminated syringes (the help has to make a profit!) to prepare drugs or other injections, “reusing water, reusing bottle caps, spoons, or other containers (‘cookers’) to dissolve drugs into water and to heat drugs solutions, reusing small pieces of cotton or cigarette filters (‘cottons’) to filter out particles that could block the needle.”

How chic does that look now?

Decisions: Life and Death on Wall Street is now available as an audio book on Audible, iTunes, and Amazon. Read a free excerpt.

What do these things have in common?

Daily media spin and PR paint a thin veneer of glitz over the rot we are being fed by regulators, banks, government, “stars” and “role models.” False narratives abound.

Now for Something Completely Different

The main stream media isn’t supposed to gaslight you, but it often does. That’s why I sometimes switch off and appreciate entertainment that doesn’t pretend to be anything other than what it is: junk food for the brain. Do you watch The Walking Dead? Are you curious about Glenn’s fate? I may have unearthed a clue that no one else has reported. Read my “spoiler.”

Dark Days: Vulnerable Europe Faces Crisis of Confidence

Europe is in a very dark place.  Under the cloud of on-going terrorist threats there is widespread fear of what the future holds – economically, socially and politically.

Jeremy Warner writing for the Telegraph yesterday describes the ‘abyss’ into which we are sliding and how this is precisely the reaction that the terrorists had hoped to elicit, despite the fact that – “even in Israel, citizens are far more likely to be the victim of a car accident than a terrorist outrage”.

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Congress Introduces Legislation to Ensure Corporate Criminals Remain Above the Law

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A key key theme here at Liberty Blitzkrieg from inception is that there are two tiers of justice in America. One for the rich and powerful, another for the poor and voiceless. It’s even worse than that though, since not only are certain segments of the population above the law, they are actually rewarded for a lack of ethics and criminality.

There is no more perfect example of this than the banker bailouts, in which the one sector of the economy that created and nurtured the financial collapse was rewarded with trillions of dollars in taxpayer backstops and bailouts. This same finance sector has seen a disproportionate amount of all income gains since the “recovery” started, precisely because the bailout itself was designed to help it as opposed to the middle class…

Read the rest here.

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Why The Status Quo Is Doomed: Income Stagnates, Costs Rise

Even if nothing else doomed the status quo, the widening gap between household incomes and costs will push the corrupt contraption over the cliff by itself. The status quo (whatever you wish to call it) requires “growth” to sustain itself–growth in consumption, spending, sales, debt, asset valuations, profits and of course taxes, and ultimately all of those “growths” depend on household incomes.

Incomes even for the most highly educated workers are stagnating:

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