Point Of No Return Reached NEO WORLD ORDER GERMAN EUROPA WHORE BOND FALLEN TO ZERO Hour Of Yen Reckoning IS Come
“I believe the NHS singled me out for discipline because Christianity is so disrespected.
Previously a Christian worship service that I set up for patients was closed down, but accommodation for Antichrist Muslims to practice their faith wholly facilitated and encouraged.”
NOTE: Time for all christians to boycott and divest from Antichrist England. There is no reason for any Christian to visit Antichrist England or buy anything British. The British Antichrist Kingdom is risen.
No British publication can be offered to any Christian based on this ”new ruling Antichrist English law”. This means all the ”Antichrist government” secular or religious favorite publications, in this case the new ruling Antichrist British government favors all Antichrists, are now a legal assault against all Christians. Under this Antichrist British ruling every Christian is offended, as an equal measure under this ruling, by law all the new ruling Antichrist offender(s) require(s) equal suspension. Properly quantified, all christians offered any publication that is not a christian publication are offended by all the ”new ruling” offender(s) and they all must be suspended indefinitely.
This is silly, but the fact that the ruling stands forces every christian to respond in accordance with the ruling. This ruling makes it no longer possible for any christian in a public school etc.. in Antichrist England to not be offend by the Antichrist English school books etc… etc… etc…, and therefore the Antichrist English public school and Antichrist English rule itself. Antichrist English law is now an offense to all christians as is Antichrist Britain as a Antichrist country.
Certainly our Father in Christ cannot save the Antichrist Queen of Antichrist England at this point. The Queen is an Antichrist under the ruling, therefore ”may God strike her down this very hour, she is an offense to be silenced as with all that dare to accept the prophetic mark of the beast which assures destruction death and certain damnation must now come.” ”The Antichrist British ruling is not sustaining liberty, freedom, justice or life eternal”. That is the mirror image of Antichrist islam so offended, and Antichrist English rule in agreement as the offended ruling Antichrist. Not even the Antichrist Queen of Antichrist England can offer the Holy Bible. LOL. Go Straight to Hell Antichrist Queen of Antichrist England, your own Antichrist rule prohibits the gospel upon your lips, for it is offensive to all but the christians you have silenced under your ruling, and by your ruling silence now offends Heaven.
Woe unto you ruling fools.
Silence in Heaven means your name is not found written in The Lambs Book Of Life. News flash: There are no Antichrist Muslims in Heaven, and there are no silent Knights of Antichrist England.
The most pathetic reality of this ruling is the weakness of Antichrist Islam, it now has made it’s own book an offense by this ruling. Any Antichrist muslim that offers their Antichrist Koran-or any Antichrist muslim publication is an offensive act that requires the ruling suspension. Antichrist Islam and Antichrist England silenced by their own pathetic Antichrist ruling. Their Antichrist version of gospel is silence in Heaven as it is on Antichrist Earth.
Fools, utter fools.
Of course Antichrist England and Antichrist Islam hate their own Antichrist mirror image and this means war. The Antichrist morons are a murder suicide match made in Hell after all, that is the nature of the self devouring unbecoming rule of dipshits offend by their own Antichrist shadow. They, these antichrist bastards, seek to kill The Light as an attempt to overcome their own Antichrist shadow.. The wild Antichrist assess are a lethal overwhelming joke, and make a mockery of humanity before Heaven, but for the prophetic revelation, they do confirm the tribulation age has come with the Antichrist ruling.
…and so the BAAL Gate, pillar of fire, beckons the ”Antichrist British ruling”.
King Ahab told his wife Jezebel everything that Elijah had done and how he had put all the prophets of Baal to death..
So I directed my attention to the Lord God to seek Him by prayer and supplications, with fasting, sackcloth and ashes.
And I will grant authority to My two witnesses, and they will prophesy for twelve hundred and sixty days (forty-two months; three and one-half years), dressed in [c]sackcloth.”
When He (the Lamb) broke open the seventh seal, there was silence in heaven for about half an hour [in awe of God’s impending judgment]. 2 Then I saw the seven angels who stand before God, and seven [a]trumpets were given to them.
3 Another angel came and stood at the altar. He had a golden [b]censer, and much [c]incense was given to him, so that he might add it to the prayers of all the saints (God’s people) on the golden altar in front of the throne. 4 And the smoke and fragrant aroma of the incense, with the prayers of the saints (God’s people), ascended before God from the angel’s hand. 5 So the angel took the censer and filled it with fire from the altar, and hurled it to the earth; and there were peals of thunder and loud rumblings and sounds and flashes of lightning and an earthquake.
6 Then the seven angels who had the seven trumpets prepared themselves to sound them [initiating the judgments].
7 The first [angel] sounded [his trumpet], and there was [a storm of] hail and fire, mixed with blood, and it was hurled to the earth; and a third of the earth was burned up, and a third of the trees were burned up, and all the green grass was burned up.
8 The second angel sounded [his trumpet], and something like a great mountain blazing with fire was hurled into the sea; and a third of the sea was turned to blood; 9 and a third of the living creatures that were in the sea died, and a third of the ships were destroyed.
10 The third angel sounded [his trumpet], and a great star fell from heaven, burning like a torch [flashing across the sky], and it fell on a third of the rivers and on the springs of [fresh] waters. 11 The name of the star is [d]Wormwood; and a third of the waters became wormwood, and many people died from the waters, because they had become bitter (toxic).
12 Then the fourth angel sounded [his trumpet], and a third of the sun and a third of the moon and a third of the stars were struck, so that a third of them would be darkened and a third of the daylight would not shine, and the night in the same way [would not shine].
13 Then I looked, and I heard a solitary eagle flying in [e]midheaven [for all to see], saying with a loud voice, “[f]Woe, woe, woe [great wrath is coming] to those who dwell on the earth, because of the remaining blasts of the trumpets which the three angels are about to sound [announcing ever greater judgments]!”
Nasa had planned for Kepler to join ground observatories searching millions of stars in our galaxy for stray planets wandering between stars; Earth-like planets that orbit at middling range from their sun; and outer planets that swirl at a distance from the center of their solar systems.
Kepler has survived several crises. Launched in 2009, it completed its original mission in 2012, finding more than 1,000 confirmed planets – including the first confirmation of a rocky planet outside our solar system and the first discovery of a planet in the habitable zone of a star.
Despite repeated breakdowns, the spacecraft then began a mission called K2, aiming to not only scan for planets but to collect data on supernovas, the formation of stars and asteroids and comets.
Last year alone, Kepler discovered what Nasa’s scientists called the Earth’s “closest twin” outside the solar system; a rocky world in the habitable zone of another star; a bizarre dimming pattern from a faraway star; and the first supernova shockwave ever seen with visible light.
Kepler accomplished all this two years after Nasa thought it was beyond all repair, when its guiding wheels broke down. Engineers saved the spacecraft by using the light of the sun as force to push Kepler’s solar panels, then using the surviving wheels to push against that force and point the telescope again.
The enormous distance between the Earth and Kepler, now in deep space, makes it more difficult to fix.
The craft is named after Johannes Kepler, the German astronomer who helped revolutionize science alongside Galileo despite the political and religious upheaval of the 17th century.
“You Get Nothing” is the message for German bond coupon-clippers as for the first time in history, the average yield across the entire bond complex tumbles to zero.
With the yield curve below zero to 9 years, and 1 month yields at -65bps, it is no surprise that asset managers are extending duration…
“Europe looks concerning” warns BofAML’s Stephen Suttmeier, pointing out, rather ominously that the broad European index – STOXX 600 – is trading like it did in 2001 & 2008.
The STOXX Europe 600 (SXXP) is trending below declining and bearishly positioned 26 and 40-week moving averages. ECB quantitative easing has not reversed this bearish trend.
The 2016 set-up is similar to early 2001 and early 2008 with 350 important resistance and 300 important support. Both 2001 and 2008 saw rebounds into bearishly positioned and falling 26/40-week MAs that formed important lower tops in May.
We think this pattern could repeat or at least rhyme moving into May 2016. The breaks below 300 in September 2011 and June 2008 led to much deeper weakness and a similar break in 2016 could see the SXXP trend down toward 200.
It’s official, I’m calling a banking crisis in Europe. Things didn’t go well the last time I did this. Of course, many will say, “But the rating agencies have learned their collective lessons. They would most assuredely warn us if the European banks are close to going bust, right?!!!”. Yeah, right!
Here are some key points:
The distress in Europe is being caused by large as well as small banks. Slowdown in global growth, negative interest rates being pursued by central banks that will impact bank’s profits, and deteriorating asset quality are the main reasons.
Some of the big European banks have fared very badly in recent performance. Credit Suisse, for instance, announced a fourth quarter (2015) loss of $5.8 billion
Recent failure of two major Russian banks has worsened the outlook
Banks with large RE exposure and large NPLs are considered to more susceptible than the others
The presence of too many banks in trouble in Europe is aggravating the problem beyond the control of ECB
Banking sector is in trouble as global slowdown has affected quality of assets, margins for banks and business growth prospects in quite the negative direction. The global economy, with the EU and China/Japan in particular, is slowing signficantly – and this after years of ZIRP, NIRP, QE and other highly creative bailout measures. Next up, pure helicopter cash and further ineffective acts of desperation to be ignored by the media and investing populace.
The “2015 EU-wide transparency exercise”- a report on 105 banks across 21 countries in the European Union published by The European Banking Authority (EBA) raises concern on the bad debt held by banks. The report mentioned European banks have a mountain of bad debts totaling around €1tn. The bad debt amount to 5.6% of total loans and advances of Europe’s Banks and 10% when lending to other financial institutions are excluded. This stands on a higher side compared to the US banks which have a bad debt ratio of only 1.67% against total loans. What many may miss in these numbers is unlike corporate and retail loans, most lending to other financial institutions is indirectly and in some ways directly backstopped by the ECB through programs such as the LTRO and TLTRO. Any banker who can read this report should not, and likely does not, trust his/her fellow European banker.
Banking is a business that relies heavily on trust, and EU banks don’t trust each other. The system, without the significant and necessarily heavy interference of the ECB is essentially locked up. The EU no longer has a banking ecosystem, but an ECB-led and heavily subsidized financial welfare system.
The Dow dropped 174 points on Thursday, the biggest fall in six weeks. Not the end of the world. Maybe not even the end of this year’s bounce-back bull run. As you’ll recall, stocks sold off at the beginning of the year, too. Then, investors were buoyed up after central banks got to work – jimmying the credit market on their behalf.
The Antichrist NWO 666 Fed Beast swore off any further “normalization” until later in the year. Antichrist NWO 666 Central banks in Europe, Japan, and Antichrist Communist China all took bolder and more reckless action… with the Bank of Japan following some European banks by going into “full retard” mode with negative interest rates.
DJIA, 10-minute candles; the red rectangle bounds Thursday’s market action. A rebound attempt on Friday failed to go very far – click to enlarge.
Now, according to the narrative popular in the financial press, investors are beginning to worry that central banks are not very effective after all. As to that last point, they’re right; central banks can only do so much. They made the situation what it is. Now, they can only make it worse. How? By adding more of what made it bad in the first place. All they can do is add more debt to a world already drowning in it.
If anyone knows of a different way this story might unfold, we’d like to hear it. But for all the puzzling and preposterous guesswork and wondering, it is still the same tale: Debt builds up; debtors can’t pay; they go broke. It happens all the time.
In a healthy economy – with real money and honest banking – people make mistakes. They go broke. The bankruptcies are absorbed and disposed of in good order. Assets go on the block. Hungry investors and entrepreneurs snap them up… and put them to good use.
The system cleans out errors, taking money from “weak hands” and moving it to stronger, more capable management. But now, the whole system is mismanaged. Thanks to credit-based money – and modern central bank guidance – the normal ebbs and flows of the credit market have become treacherous tidal waves, lifting up assets to absurd deliriums, and then crashing them down on the hard rocks of real life.
Borrowers’ Busted Boards
Here’s a group of surfers whose boards have been busted recently: young people. In the news this week was this interesting item from the Wall Street Journal:
“40% of Student Borrowers Aren’t Making Payments”
Student debt (federal and private credit combined) amounts to over $1.2 trillion, and 43% of borrowers are by now delinquent, in default or “in postponement” (i.e., they have a waiver allowing them to be delinquent) – click to enlarge.
According to the WSJ, $200 billion in loans are running behind schedule. The Journal says this is good news; last year, it was 46% of borrowers who weren’t keeping up. And Bank of America tells us that corporate borrowers, too, are soon going to wash up on the beach. Here’s the report from Bloomberg:
“When the next corporate default wave comes, it could hurt investors more than they expect. Losses on bonds from defaulted companies are likely to be higher than in previous cycles because U.S. issuers have more debt relative to their assets, according to Bank of America Corp. strategists. Those high levels of borrowings mean that if a company liquidates, the proceeds have to cover more liabilities.
“We’ve had more corporate debt than ever, and more leverage than ever, which increases the potential for greater pain,” said Edwin Tai, a senior portfolio manager for distressed investments at Newfleet Asset Management.
Loss rates have already been rising… In bad times, corporate bond investors, on average, lose about 70 cents on the dollar when a borrower goes bust. In this cycle, that figure could be closer to the mid-80s [when losses approached 80 cents on the dollar], Bank of America strategists said. Those losses would be the worst in decades…”
Since peaking in late 2011 just above 70%, recovery rates from corporate defaults have been in a steady downtrend – a sign that the quality of assets underlying corporate debt has worsened considerably. This could is guaranteed to make the next major economic downturn especially painful – click to enlarge.
We warned that there is a fatal “flaw” in the system. We talked about the lack of real, physical dollars. In a credit crisis, we argued, the U.S. would quickly run out of real dollars. ATMs would shut down. The whole system would seize up. But there’s more…
We are still figuring out how it works, but this appears to be one of the most intriguing nuances of the whole cockamamie story. You see, credit has a particularity that real money doesn’t.
If I lend you a real dollar, you will have the dollar to spend, and I won’t. Then, when you pay it back, I will have the dollar to spend, and you won’t. Either way, the money supply is unchanged.
The credit dollar is different. When the banks lend you a credit dollar, they “make” it out of thin air with a few keystrokes on a computer. Then, the dollar you have to spend didn’t exist before. So far, so good. But when you pay it back, what happens? It disappears as if – well – as if it never existed. The money supply contracts.
4-Debt and Money
Out of whack: Total US credit market debt outstanding (blue line) = $63.4 trn.; Total US bank credit (incl. mortgages) outstanding (red line) = $22.3 trn.; US broad true money supply TMS-2 (black line) = $11.4 trn.; Currency in circulation (purple line) = $1.37 trn. – click to enlarge.
We should say, “even if you pay it back, the money supply contracts.” Because there are other ways the money disappears. Negative interest rates, for example, cause people to hoard cash, or even increase bank savings, as they are doing in Japan. Either way, money disappears from circulation… reducing the “velocity of money”… and dropping the available money supply. Spending goes down, not up.
The effect is the exact opposite of what the policymakers promise. Again, we see the proof that something isn’t working. Not for Janet Yellen nor for any of her delusional central banker buddies around the world. Their tricks no longer work.They just make the tidal wave higher.
#1 The poorest 40 percent of all Americans now spend more than 50 percent of their incomes just on food and housing.
#2 For those Americans that don’t own a home, 50 percent of them spend more than a third of their incomes just on rent.
#3 The price of school lunches has risen to the 3 dollar mark at many public schools across the nation.
#4 McDonald’s “Dollar Menu & More” now includes items that cost as much as 5 dollars.
#5 The price of ground beef has doubled since 2009.
#6 In 1986, child care expenses for families with employed mothers used up 6.3 percent of all income. Today, that figure is up to 7.2 percent.
#7 Incomes fell for the bottom 80 percent of all income earners in the United States during the 12 months leading up to June 2014.
#8 At this point, more than 50 percent of all American workers bring home less than $30,000 a year in wages.
#9 After adjusting for inflation, median household income has fallen by nearly $5,000 since 2007.
#10 According to the New York Times, the “typical American household” is now worth 36 percent less than it was worth a decade ago.
#11 47 percent of all Americans do not put a single penny out of their paychecks into savings.
#12 One survey found that 62 percent of all Americans are currently living paycheck to paycheck.
#13 According to the U.S. Department of Education, 33 percent of all Americans with student loans are currently behind on their student loan debt repayments.
#14 According to one recent report, 43 million Americans currently have unpaid medical debt on their credit reports.
#15 The rate of homeownership in the U.S. has been declining for seven years in a row, and it is now the lowest that it has been in 20 years.
#16 For each of the past six years, more businesses have closed in the United States than have opened. Prior to 2008, this had never happened before in all of U.S. history.
#17 According to the Census Bureau, 65 percent of all children in the United States are living in a home that receives some form of aid from the federal government.
#18 If you have no debt at all, and you also have 10 dollars in your wallet, that you are wealthier than 25 percent of all Americans.
#19 On top of everything else, the average American must work from January 1st to April 24th just to pay all federal, state and local taxes.
The mystery is at last revealed: why does the field of candidates for president score so uniformly low in trust, credibility, likability? Why are there no candidates of real substance, principle, and especially of real charm in this scrim of political basilisks? (Surely there are many people of substance and principle elsewhere in America — they just don’t dare seek the job at the symbolic tippy-top of this clusterfuck of faltering rackets.) The reason is that the problems are unfixable, at least not within the acceptable terms of the zeitgeist, namely: the secret wish to keep all the rackets going at all costs.
This is true, by the way, of all parties concerned from the 0.001 percent billionaire grifter class to the deluded sophomores crying for “safe spaces” in their womb-like “student life centers” to the sports-and-porn addled suburban multitudes stuck with impossible mortgage, car, and college loan debts (and, suddenly, no paying job) to the deluded Black Lives Matter mobs who have failed to notice that black lives matter least to the black people slaughtering each other over sneakers and personal slights. None of these groups really want to change anything. They actually wish to preserve their prerogatives.
The interests of the 0.001 percent are obvious: maintain those streams of unearned, rentier, notional wealth as long as possible and convert them as fast as possible into hard assets (Caribbean islands, Cézanne landscapes, gold bars) that will theoretically insulate them from the wrath of history when the center no longer holds. The poor (and ever-poorer) formerly middle class suburban debt serfs, for all their travails, can’t imagine living any other way or putting less of their dwindling capital into the Happy Motoring matrix. The Maoist Social Justice Warrior students are enjoying the surprising power and thrills of coercion, especially as directed against their simpering professors and cringing college presidents anxious to sustain the illusion that something like learning takes place in the money laundering operations of higher ed. The Black Lives Matter crowd just wants to be excused from their failure to follow standards of decent behavior and to keep mau-mauing the other ethnic groups of America for material and political tribute.
It must be obvious that the next occupant of the White House will preside over the implosion of all these arrangements since, in the immortal words of economist Herb Stein, if something can’t go on forever, it will stop. So the only individuals left seeking the position are 1) An inarticulate reality TV buffoon; 2) a war-happy evangelical maniac; 3) a narcissistic monster of entitlement whose “turn” it is to hold the country’s highest office; and 4) a valiant but quixotic self-proclaimed socialist altacocker who might have walked off the set of Welcome Back Kotter, 40th Reunion Special. These are the ones left standing halfway to the conventions. Nobody else in his, her, it, xe, or they right mind wants to be handed this schwag-bag of doom.
On Saturday, the unstoppable Democratic shoo-in Hillary lost her 7th straight contest to the only theoretically electable Vermont Don Quixote, Bernie Sanders. This was a week after it was reported in The Huff-Po that her campaign crew literally bought-and-paid for the entire 50-state smorgasbord of super-delegates who will supposedly compensate for Hillary’s inability to otherwise win votes the old-fashioned way, by ballots cast. Wonder why that didn’t make nary a ripple in the media afterward? Because this is the land where anything goes and nothing matters, and that’s really all you need to know about how things work in the USA these days.
The Republican mandarins are apparently delirious over loose cannon Donald Trump’s flagging poll numbers in the remaining primary states. Should Trump fall on his face, do you think they’ll just hand Ted Cruz the Ronald Reagan Crown-and-Scepter set. (They’d rather lock Ted in the back of a Chevy cargo van with five Mexican narcos and a chain saw.) The GOP establishment insiders are already lighting cigars in preparation for the biggest smoke-filled room in US political history, Cleveland, July 20. But what poor shmo will they have to drag to the podium to get this odious thing done? Who wants to be the guy in the Oval Office when Janet Yellen comes in some muggy DC morning and says, “Uh, sir (ma’am)… that sucker you heard was gonna go down…? Well, uh, it just did.”
As for the Dems: they are about to anoint the most unpopular candidate of our lifetimes. The BLM mobs have promised to deliver mayhem to the streets of the party conventions and don’t think they will spare Hillary in Philary, no matter how many chitlins she scarfed down last month in Carolina. The action in Philly will unleash and reveal all the deadly power of Antichrist NWO 666 President Obozo 911 Homosexual Climate Change No Boots SPECTRE Clown’s NSA goon squads when the militarized police put down the riots, and Hillary will be tagged guilty by association.
And that is how Kim Kardashian gets elected president.
“smooth sailing”, right?
With The Atlanta Fed’s slashing its Q1 GDP growth expectations to just 0.1%, consensus estimates for 2016 growth have collapsed. However, none of this should surprise anyone as this is the sixth year in a row that over-optimistic growth hopes devolve into hype for more stimulus and a hockey-stick just around the corner.
While expectations have not improved since 2010, at least one these dreadful soothsayers is defending this year’s drop in the same old manner – by promising that H2 will be better, for these 4 reasons…
Downward revisions to 1Q Atlanta Fed GDPNow: For the third year in a row, forecasters came into the first quarter looking for 2%-plus GDP growth, only to steadily revise estimates lower.
We look at the Atlanta Fed’s GDPNow tracking for 1Q in each year. They are far from alone: both we and the consensus have been doing the same thing. This weakness adds to market skepticism about a June Fed hike. In both 2014 and 2015, we faded the weak 1Q data and argued that the recovery remained on track.
Today, we see four reasons to reiterate that call.
First, outside of the GDP adding up, the data look fine.
Second, some of the weakness is likely due to lingering seasonal adjustment problems.
Third, the fundamental backdrop points to moderate growth, not a big slowdown.
Fourth, and perhaps most important, with potential growth slipping below 2%, and given the normal variation in the data, we should not be surprised to see near-zero quarters on an annual basis.
Now where have we heard that before? It’s different this year… i better be as whatever the ‘authorities’ are doing to save the world is not working. As Bloomberg’s Richard Breslow notes, it is perhaps time, not extreme monetary policy action, that could be the cure…
All government policies, with the possible exception of those implemented through brute force, require a certain amount of trust and faith. For monetary policy this is particularly true. The theory is that if a central bank does one thing, lenders and borrowers will respond as expected. The much praised and maligned transmission mechanism.
Policy actions rapidly lose the ability to effect their purpose, or backfire, when financial market participants question the efficacy or indeed the sensibility of the prescriptions. It’s a lot more dangerous when those in charge of setting and implementing monetary strategy are among the disbelievers.
To be fair to bankers, (aren’t we always) one of the unfortunate consequences of the financial debacle has been an inexcusable and ongoing narrowing of how we define monetary policy. If you think of it as all policies that can affect the quantity and speed of the money supply, then there are many more choices than just benchmark rates and quantitative easing.
Tax reform and fiscal spending are among the tools that we’ve chosen to hold hostage rather than employ. The former on the grounds of partisan ideology and, I guess the latter, because governments are saving up for the next war.
Rates in Japan are less than zero, going well out the yield curve. The BOJ owns the bond market. How’s that working out for them? Europe has recessions and bank crises sprinkled all over the place. Both central banks want you to know they can still do more. To what point?
The IMF felt compelled yesterday to defend the concept of negative rates. Even they couldn’t muster more than, “we tentatively conclude that overall, they help deliver additional monetary stimulus.” By the way, they are expected to lower their global growth forecast yet again at this week’s meetings.
No one dares admit what negative rates will do to pensions, mortgages, savers and retirees. What they certainly won’t do is stoke animal spirits, lending and spending. They do prop up asset bubbles: as long as they never stop. I suspect the Fed worries a move to negative rates would be the last decision Congress would let them make.
The world is going to need the healing power of time, even if it means an extended period of low growth. It won’t be cured with extraordinary experimentation with the future.
Of course – that will not do for the short-termist equity wealth creation transmission channel.
Are the ruling elite attempting to crush what’s left of Western society? What responsibility does the Body of Christ have in these dark times? In today’s edition of TRUNEWS, Rick Wiles will preach a battle cry of Jericho — against the satanic communist revolution fermenting across the globe. Rick will also expose the striking similarities between Democracy Spring and the Jacobin French Revolution, both of which draw energy from the spirit of the antichrist.
East will never meet the West of Adam Smith. Antichrist Communist China never had a culture or tradition of respecting individual human rights. Why would anyone assume that a regime that houses worker slaves in huge chicken coops would adopt a fair trade economy? The Antichrist Communist Chinese juggernaut is a creature of Western creation. The Red Dragon never reflects the noble contributions of wealth development that grew a stable middle class and spread the fruits of democratic principles. The Antichrist Communist Chinese model is a harbinger of the global gulag and the coerced society designed to demolish cherished Western Civilization values and liberties. The masters of political confrontations have found a better way than waging world wars for imposing their planetary dominance.
the proponents of free trade deliberately conspired to ruin the domestic economy in order to replace free enterprise with a corporate/state substitute. If you doubt this assessment, review 25 Facts That Prove That Antichrist Communist China Is Kicking Our Rear Ends. Ask if these circumstances are an accident or is it part of a well-designed plan?
A “new phase of globalization” is Taking Shape in Beijing, Flag Planted on American Soil, claims the Activist Post.
The fanfare of the Beijing 2008 Olympics’ is reminiscent of the 1936 Berlin Games. A fascist state under any name or uniform is still a menace to the remnants that defend Western Civilization. The display of adoration by the Antichrist NWO 666 Obozo 911 Homosexual Climate Change No Boots SPECTRE Clown administration for the inheritor of Antichrist Communist Mao Zedong legacy is disgusting.
a more accurate substitute is the use of the phrase “it is not in the interests of the global fascists”, who are integrating their own financial empires, into the Antichrist Communist Chinese model. Recall that Bill Clinton’s treason of Technology Transfer, which allowed for Antichrist Communist China’s ballistic missile arsenal. In the warped world of international hegemony, the real superpowers know that the credible threat of nuclear destruction is far more potent than the actual explosion. The true fallout comes from aiding, abiding for the off shoring of industry, and systematic dismantling of the domestic economy.
Pat Buchanan asks a question in Human Events that needed a reply from Richard Nixon. Nixon was under the thumb of his controller, Henry Kissinger for the Rockefeller cabal, when he approved opening the door to Antichrist Communist China. The ending of America’s future has a long history of treachery. “Why should any nation emulate the U.S. trade policy of the Skull&Bones Bush-Clinton-Bush 911 era that has stripped us of a third of our manufacturing jobs and made us dependent on Antichrist Communist China and the world for the needs of our national life and the borrowed money to pay for them?”
Free Trade is a sham. The World Trade Organization is an instrument of global exploitation. According to the National Labor Law of January 20, 1934, the Antichrist New World Order Nazi state exerted direct influence and control over all business employing more than twenty persons. This record is pale in comparison to the Antichrist Communist Chinese practice of corporate sweatshops. A tabloid by the Solidarity Federation, The Catalyst, reports. “The high-profile suicides at Foxconn, who make iPhones for Apple, were merely the tip of the iceberg. There, angry workers rioted over sweatshop conditions, chanting “capitalists kill people” and brandishing pictures of the CEO of Foxconn, Terry Gou”. The transnational corporations, who eagerly support repressive regimes, easily adopt the Antichrist communist methods of the Cultural Revolution.
Americans need to place the blame where it belongs; namely, the World Trade Organization proponents that seek to destroy our independence as a sovereign nation. Interdependence is a formula for global tyranny using the Antichrist Communist Chinese model to herd the sheeple into their consumer version of an opium addiction.
Five-Star General Omar Bradley died April 8, 1981. In August 1944, General Omar Bradley led the 12th Army Group in France and Germany, consisting of a million men in four armies.
General Omar Bradley stated in an Armistice Day speech, Nov. 10, 1948 (published in “Omar Bradley’s Collected Writings,” Volume 1, 1967): “To ignore the danger of aggression is simply to invite it. … We shall doom our children to a struggle that may take their lives. … We know that unless free peoples stand boldly and united against the forces of aggression, they may fall wretchedly, one by one, into the web of oppression.”
General Omar Bradley stated: “We have men of science, too few men of God. We have grasped the mystery of the atom and rejected the Sermon on the Mount. The world has achieved brilliance without conscience. Ours is a world of nuclear giants and ethical infants. … If we continue to develop our technology without wisdom or prudence, our servant may prove to be our executioner.”
Given the IRS’ alleged targeting of conservative and tea party groups, some members of Congress have expressed concern about the church investigation procedures.
“The Antichrist NWO 666 Obozo 911 Homosexual Climate Change No Boots SPECTRE Clown IRS first ignored the ADF FOIA request and is now stonewalling in federal court,” Judicial Watch President Tom Fitton said in a press release. “The public has a right to know about any new IRS guidelines for investigating the practice of our basic First Amendment freedoms.”
The IRS could not be reached for comment by press time.
A 2014 letter to IRS Commissioner John Koskinen signed by nine members of Congress asked the agency to provide a copy of the rules for investigating churches.
“Our country has a long history of religious leaders speaking freely on matters of public discourse,” the letter reads. “Whether it is Rev. Martin Luther King Jr. leading the charge against segregation, or preachers opposed to the Vietnam War, Americans expect their religious leaders to be able to speak freely to their flock without government oversight. The recent agreement by the IRS seems to impinge on these fundamental rights protected by the First Amendment’s guarantee of freedom of religion, speech, and assembly.
Why is Antichrist NWO 666 Barack Obozo 911 Homosexual Climate Change no Boots SPECTRE Clown’s government ALLOWING COUNTLESS NUMBERS OF ANTICHRIST ISLAMIC TERRORISTS WHO WANT TO KILL US INTO the country? Is this MORE PROOF that Obozo and this ‘new world order globalist government’ WANT AMERICANS DEAD IN MASS NUMBERS?
For Antichrist Sunni Saudi Arabia, which is in competition with regional rival Antichrist Shia Iran, keeping Antichrist Egypt under its aegis is crucial, and it has played a key role in propping up Antichrist Egypt’s economy..
Hot on the heels of Wells Fargo’s $1.2 billion settlement, Bloomberg reports that Goldman Sachs will pay $5.1 billion to settle a U.S. probe into its handling of mortgage-backed securities involving allegations that loans weren’t properly vetted before being sold to investors as high-quality bonds.
“This resolution holds Goldman Sachs accountable for its serious misconduct in falsely assuring investors that securities it sold were backed by sound mortgages, when it knew that they were full of mortgages that were likely to fail,” said Acting Associate Attorney General Stuart Delery.
As AP reports,
The Justice Department announced a $5 billion settlement with Goldman Sachs over the sale of mortgage-backed securities leading up to the 2008 financial crisis.
The deal announced Monday resolves state and federal probes into the sale of shoddy mortgages before the housing bubble and economic meltdown.
It requires the bank to pay a $2.4 billion civil penalty and an additional $1.8 billion in relief to underwater homeowners and distressed borrowers, along with $875 million in other claims.
The agreement is the latest multi-billion-dollar civil settlement reached with a major bank.
Other banks that settled in the last two years include Bank of America, Citigroup and JPMorgan Chase & Co.
Goldman had previously disclosed the settlement in January, but federal officials laid out additional allegations in a statement of facts.
As NY AG Schneiderman notes,
Settlement Includes $670 Million For New Yorkers, Including $190 Million In Cash And $480 Million In Consumer Relief Committed To Mortgage Assistance, Principal Forgiveness, And Affordable Housing Programs
New York Has Now Received $5.3 Billion In Cash And Consumer Relief From National Mortgage Settlement And Residential Mortgage-Backed Securities Working Group Settlements Combined Since 2012
Schneiderman: Since 2012, My Number One Priority Has Been Getting New York Families The Resources They Need To Help Rebuild
NEW YORK – Attorney General Eric T. Schneiderman today joined members of the state and federal working group he co-chairs to announce a $5 billion settlement with Goldman Sachs over the bank’s deceptive practices leading up to the financial crisis. The settlement includes $670 million – $480 million worth of creditable consumer relief and $190 million in cash – that will be allocated to New York State. The resolution requires Goldman Sachs to provide significant community-level relief to New Yorkers, including resources that will facilitate a significant expansion of the New York State Mortgage Assistance Program enabling distressed homeowners to restructure their debt, as well as first-lien principal forgiveness, and funds to spur the construction of more affordable housing. Additional resources will be dedicated to helping communities transform their code enforcement systems, and invest in land banks and land trusts.
The settlement was negotiated through the Residential Mortgage-Backed Securities Working Group, a joint state and federal working group formed in 2012 to share resources and continue investigating wrongdoing in the mortgage-backed securities market prior to the financial crisis.
New York has now received $5.33 billion in cash and consumer relief from the National Mortgage Settlement (NMS) and all five Residential Mortgage-Backed Securities Working Group settlements (RMBS). The combined $3.2 billion in cash and consumer relief from RMBS settlements is more than any other state.
“Since 2012, my number one priority has been getting New Yorkers the resources they need to rebuild,” Attorney General Schneiderman said. “These dollars will immediately go to work funding proven programs and services to help New Yorkers keep their homes and rebuild their communities. We’ve witnessed the incredible impact these programs and services can have in helping communities recover from the financial crisis. This settlement, like those before it, ensures that these critical programs—such as mortgage assistance, principal forgiveness, and code enforcement—will continue to get funded well into the future, and will be paid for by the institutions responsible for the financial crisis.”
The settlement includes an agreed-upon statement of facts that describes how Goldman Sachs made multiple representations to RMBS investors about the quality of the mortgage loans it securitized and sold to investors, its process for screening out questionable loans, and its process for qualifying loan originators. Contrary to those representations, Goldman Sachs securitized and sold RMBS backed by large numbers of loans from originators whose mortgage loans contained material defects.
In the statement of facts, Goldman Sachs acknowledges that it securitized thousands of Alt-A, and subprime mortgage loans and sold the resulting residential mortgage-backed securities (“RMBS”) to investors for tens of billions of dollars. During the course of its due diligence process, Goldman Sachs received pertinent information indicating that significant percentages of the loans reviewed did not conform to the representations it made to investors.
Goldman also received and failed to disclose negative information that it obtained regarding the originators’ business practices. Indeed, Goldman’s due diligence vendors provided Goldman with reports reflecting that the vendors had graded significant numbers and percentages of sampled loans as EV3s, i.e., not in compliance with originator underwriting guidelines. In certain circumstances, Goldman reevaluated loan grades and directed that such loans be waived into the pools to be purchased or securitized.
Even when the percentage of problematic loans in pools sampled by it vendors indicated that the unsampled portions of the pools likely contained additional such loans, Goldman typically did not increase the size of the sample or review the unsampled portions of the pools to identify and eliminate any additional such loans. In many cases, 80 percent or more of the loans in the loan pools Goldman purchased and securitized were not sampled for credit and compliance due diligence. Nevertheless, Goldman approved various offerings for securitization without requiring further due diligence to determine whether the remaining loans in the deal contained defects. A Goldman employee overseeing due diligence for a particular loan pool noted that the pool included loans originated with “[e]xtremely aggressive underwriting” and “large program exceptions made without compensating factors.” Despite this observation, Goldman did not review the remaining portion of the pool, and subsequently securitized thousands of loans from the pool.
Goldman made statements to investors in offering documents and in certain other marketing materials regarding its process for reviewing and approving originators, yet it failed to disclose to investors negative information it obtained about mortgage loan originators and its practice of securitizing loans from suspended originators.
Beginning in mid-2006, Goldman recognized that Fremont, a “key originator, was experiencing an increasing level of early payment defaults (“EPDs”) (i.e., loans for which the borrowers had failed to make one or more of their first payments). Goldman was aware that EPDs were a sign of originators’ bad credit decisions and could be indicators of potential borrower fraud. However, Goldman did not put Fremont on its “no bid” list and continued to purchase loan pools from Fremont during the period Fremont’s EPD claims remained unpaid. Moreover, Goldman “[u]ndertook a significant marketing effort” to tell investors about what Goldman called Fremont’s “commitment to loan quality over volume” and “significant enhancements to Fremont underwriting guidelines.” Likewise, Goldman identified issues with Countrywide’s origination practices. Goldman’s head of due diligence, when presented with a “very bullish” equity report on Countrywide, another large originator, exclaimed “[i]f they only knew . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .”
Monday’s resolution is the fifth multibillion-dollar settlement reached with U.S. banks resulting from the government’s push to hold Wall Street firms to account for creating and selling subprime mortgage bonds that helped spur the 2008 financial crisis.
As Bloomberg notes, however, other banks, including Royal Bank of Scotland Group Plc and Deutsche Bank AG remain under investigation, people familiar with the matter have said.
We believe that the rollover in profit margins will be a constraint for equities, as profits have tended to drive most economic variables, capex and employment in particular. It will also likely have negative implications for corporate activity, especially as M&A, buybacks and dividends are at cycle highs, and US financing conditions are deteriorating.
Which means one can have rising wages or rising profits (and thus stocks), but one can’t have both. Unless, of course, multiples grow to even more ridiculous levels, and at last check the S&P’s GAAP PE is just shy of 24x.
Which also means the central banks’ mandate is clear: expand multiples to even bubblier levels.
He then proceeds to introduce the topic as follows: “in recent years, legislatures in advanced industrial economies have for the most part been reluctant to use fiscal tools, in many cases because of concerns that government debt is already too high. In this context, Milton Friedman’s idea of money-financed (as opposed to debt-financed) tax cuts—“helicopter money”—has received a flurry of attention, with influential advocates including Adair Turner, Willem Buiter, and Jordi Gali.”
With that out of the way, he launches straight into his qualitative assessment of whether the Helicopter might fly, so to say. He seems quite optimistic: “in theory at least, helicopter money could prove a valuable tool.” He goes on, with the caveat that he prefers the term Money-Financed Fiscal Program, or MFFP, instead of “Helicopter Money” – after all, very serious central bankers never call things by their real name:
Yes, the Fed may have other tools available, such as cutting rates by 25 bps back to zero, and then going NIRP as well, or perhaps doing even more QE. But what about central banks that are running out of collateral to monetize, or who are already in deep NIRP territory, such as the ECB?
Indeed, this is why Helicopter Money, pardon MFFP, is virtually a reality in Europe. Ben lays out the appealing aspects of sending money straight to consumers:
From a theoretical perspective, the appealing aspect of an MFFP is that it should influence the economy through a number of channels, making it extremely likely to be effective—even if existing government debt is already high and/or interest rates are zero or negative. In our example the channels would include:
the direct effects of the public works spending on GDP, jobs, and income;
the increase in household income from the rebate, which should induce greater consumer spending;
a temporary increase in expected inflation, the result of the increase in the money supply. Assuming that nominal interest rates are pinned near zero, higher expected inflation implies lower real interest rates, which in turn should incentivize capital investments and other spending; and
the fact that, unlike debt-financed fiscal programs, a money-financed program does not increase future tax burdens. 
Standard (debt-financed) fiscal programs also work through channels #1 and #2 above. However, when a spending increase or tax cut is paid for by debt issuance, as in the standard case, future debt service costs and thus future tax burdens rise. To the extent that households today anticipate that increase in taxes—or if they simply become more cautious when they hear that the national debt has increased—they will spend less today, offsetting some of the program’s expansionary effect. In contrast, a fiscal expansion financed by money creation does not increase the government debt or households’ future tax payments and so should provide a greater impetus to household spending, all else equal (channel #4 above). Moreover, the increase in the money supply associated with the MFFP should lead to higher expected inflation (channel #3)—a desirable outcome, in this context—than would be the case with debt-financed fiscal policies.
To be sure, Helicopter, pardon MFFP Ben, does see a number of obstacles to such an implementation: one is the legality. So-called people’s QE, as has been advocated for by U.K. Labour Party leader Jeremy Corbyn, would be illegal in most or all jurisdictions, Bernanke points out. (That would involve the central bank printing money and giving it away.) Even simply financing extra tax cuts or spending would require coordination that would call into question central bank independence.
There’s also the practical worry that central banks don’t target money supply, but a short-term interest rate. Bernanke suggests that, to implement helicopter money, the central bank could temporarily raise its inflation objective. “Since the price level and the money supply tend to be proportional in the longer run, aiming for a higher price level could approximate the effects of committing to a higher money supply,” he writes.
Bernanke says another concern is governance, and the temptation to use helicopter money when the economy isn’t struggling.
This is somewhat like using QE for 7 straight years, long after the emergency conditions that required the Fed to print money and hand it out to banks had disspitated, so Bernanke would know all about this.
He says a way around that is to create the legal framework in advance, that the Treasury would have a special account at the Fed that would remain unfilled unless the Federal Open Market Committee said it would necessary to achieve employment and inflation goals. But, Bernanke says, it would then be up to Congress and the Administration to decide how, or even whether, to spend the money in the account.
At the end of the day, however, if Congress is faced with the choice of giving the Fed a carte blanche to do whatever it takes, or risk implementing unpopular fiscal policy which may result in many Congressmen losing their jobs, it is clear what the choice would be: “Get to work, Mr Chairman.”
Which brings us to Bernanke’s conclusion:
Money-financed fiscal programs (MFFPs), known colloquially as helicopter drops, are very unlikely to be needed in the United States in the foreseeable future. They also present a number of practical challenges of implementation, including integrating them into operational monetary frameworks and assuring appropriate governance and coordination between the legislature and the central bank. However, under certain extreme circumstances—sharply deficient aggregate demand, exhausted monetary policy, and unwillingness of the legislature to use debt-financed fiscal policies—such programs may be the best available alternative. It would be premature to rule them out
In short: Ben Bernanke has nodded his head in approval, and all that remains is for Congress to agree.
There is some good news: as Bernanke admits, “helicopter money is a presumably last-resort strategy for policymakers.” Which means that once it is implemented, and fails resulting in either even more acute deflation or hyperinflation as these are the only two practical outcomes, that wil be the end of central banking as we know it. For that alone we welcome the inevitable monetary paradrop, and in fact wish it would arrive as soon as possible.
As of this moment the world wonders, rightfully so, why Obozo has to meet with Janet Yellen in private and just what information is so important that it can only be said behind closed doors. Perhaps sensing this confusion, White House spokesman Josh Earnest apologetically noted that Antichrist NWO 666 President Obozo 911 Homosexual Climate Change No Boots SPECTRE Clown “cares deeply about preserving both the appearance of and the fact of the independence of both the Federal Reserve” and Fed Chair Janet Yellen, White House Press Sec. Josh Earnest tells reporters in briefing; he added that he wouldn’t anticipate “even in a confidential setting” that Obozo “would have a conversation” with Yellen “that would undermine” the ability to make “critical financial decisions independently.”
So with the topic of U.S. presidents preserving the independence of Fed chairs “even in a confidential setting” we recalled this particularly colorful anecdote demonstrating just how “independent” said Fed chairs are in “a confidential setting.”
From the NYT:
… in 1965, President Lyndon B. Johnson, who wanted cheap credit to finance the Vietnam War and his Great Society, summoned Fed chairman William McChesney Martin to his Texas ranch. There, after asking other officials to leave the room, Johnson reportedly shoved Martin against the wall as he demanding that the Fed once again hold down interest rates. Martin caved, the Fed printed money, and inflation kept climbing until the early 1980s.
“I hope you have examined your conscience and you’re convinced you’re on the right track.” Lady Bird Johnson said to William McChesney Martin, on his arrival at the LBJ ranch.
We hope this time it’s different.
Just after today’s emergency meeting at the Fed, which has presumably concluded by now, as we first reported last night Obozo was set to meet with the “independent” Federal Reserve chair. Moments ago the White House explained this was to allow the two to “exchange notes” and talk about the state of the US economy. Most crucially, Obozo said he “was pleased with the way Yellen had fulfilled her job.”
This is what the White House said they would discuss:
WH SAYS OBOZO TO DISCUSS WORLD ECONOMY AND THE U.S. ECONOMY, AS WELL AS SOME CURRENT REGULATORY ISSUES, IN MEETING WITH FED CHAIR YELLEN
WHITE HOUSE SPOKESMAN: YELLEN MEETING CHANCE TO ‘TRADE NOTES’
EARNEST SAYS DOESN’T EXPECT OBAMA TO UNDERMINE YELLEN ON RATES
And perhaps because it is rather awkward that the two most important people in the world meet behind closed doors at such a critical time for the economy, White House speaker Josh Earnest felt compelled to add the following:
Antichrist NWO 666 President Obozo 911 Homosexual Climate Change No Boots SPECTRE Clown “cares deeply about preserving both the appearance of and the fact of the independence of both the Federal Reserve” and Fed Chair Janet Yellen, White House Press Sec. Josh Earnest tells reporters in briefing.
Wouldn’t anticipate “even in a confidential setting” that Obozo “would have a conversation” with Yellen “that would undermine” the ability to make “critical financial decisions independently”
And speaking of Yellen’s, and Obozo’s fulfilled jobs, here’s a reminder of what “mission accomplished” looks like:
Near record high stock prices and near 40-year-low employment participation may not sound “pleasing” to some.
And as we noted earlier, the last time the “indepedent” Fed hedl an emergency meeting was just days before Yellen’s first historic rate rise in years. Have the banks been complaining to Barack this time?
And there came one of the seven angels which had the seven vials, and talked with me, saying unto me, Come hither; I will shew unto thee the judgment of the great whore that sitteth upon many waters:
2 With whom the kings of the earth have committed fornication, and the inhabitants of the earth have been made drunk with the wine of her fornication.
3 So he carried me away in the spirit into the wilderness: and I saw a woman sit upon a scarlet coloured beast, full of names of blasphemy, having seven heads and ten horns.
4 And the woman was arrayed in purple and scarlet colour, and decked with gold and precious stones and pearls, having a golden cup in her hand full of abominations and filthiness of her fornication:
5 And upon her forehead was a name written, Mystery, Babylon The Great, The Mother Of Harlots And Abominations Of The Earth.
6 And I saw the woman drunken with the blood of the saints, and with the blood of the martyrs of Jesus: and when I saw her, I wondered with great admiration.
7 And the angel said unto me, Wherefore didst thou marvel? I will tell thee the mystery of the woman, and of the beast that carrieth her, which hath the seven heads and ten horns.
8 The beast that thou sawest was, and is not; and shall ascend out of the bottomless pit, and go into perdition: and they that dwell on the earth shall wonder, whose names were not written in the book of life from the foundation of the world, when they behold the beast that was, and is not, and yet is.
9 And here is the mind which hath wisdom. The seven heads are seven mountains, on which the woman sitteth.
When they have finished their testimony and given their evidence, the beast that comes up out of the abyss (bottomless pit) will wage war with them, and overcome them and kill them.
8 And their dead bodies will lie exposed in the open street of the great city (Jerusalem), which in a spiritual sense is called [by the symbolic and allegorical names of] Sodom and Egypt, where also their Lord was crucified..
The closed-door meeting between Obozo, Biden and Yellen has concluded, and moments ago the White House released the following statement:
“The President and Chair Yellen met this afternoon in the Oval Office as part of an ongoing dialogue on the state of the economy. They discussed both the near and long-term growth outlook, the state of the labor market, inequality, and potential risks to the economy, both in the United States and globally. They also discussed the significant progress that has been made through the continued implementation of Wall Street Reform to strengthen our financial system and protect consumers.”
Of course, for the actual transcript of what was said, we will have to rely on some conscientious White House leaker putting it on BitTorrent, but here is our modest attempt at translating what was and what was not said: no market crashes allowed until November.
We can therefore conclude that pre-requisites for the next default cycle are now in place.
From the conclusion:
The artificial ingredients keeping defaults below their 1983-2003 levels are still broadly in place so although we expect the next default cycle to be round the corner it could still be mild relative to the early 90s and early 00s cycle and even the already subdued 2009 cycle which was very short, especially given the economic wreckage seen.
As we’ve suggested in previous editions of this report, this is likely due to the increasing artificial demand for fixed income seen over the last 15-20 years which effectively allows more financing opportunities for levered companies at lower yields than they might be asked to pay if global fixed income markets were a perfectly free market where the only consideration was relative value. Over the last two decades, SWFs, pension funds, insurance companies, banks and more recently central banks in great size have distorted the demand for and yield of global fixed income. This is unlikely to change and although the Oil and Gas sector demonstrates that bad fundamentals can still win out, for more marginal companies, the artificial conditions in fixed income could still help prevent a more savage cycle.
Obviously the Oil and Gas sector will play a big part in determining the overall level of defaults and in a separate section our US strategists detail their expectations for defaults in this sector and how that will filter through into the wider US HY market.
It’s also true that credit spreads are relatively elevated and price in a default rate markedly higher than current levels. Indeed as we’ll see throughout the body of this report, at an aggregate level a buy-and-hold investor would need to see defaults worse than virtually all observed periods through history for them not to get a positive excess return relative to Government bonds from this starting point. However if we do see a recession even if defaults are relatively subdued the illiquidity of financial markets could easily see big mark-to- market losses. Recession tend to bring big overshoots in credit spreads relative to default risk anyway. So lower structural defaults may not provide comfort in the heat of the next recession but current spreads should give longer-term investors some comfort across the vast majority of sectors.
All of which perhaps explains why the ECB is well on its path to monetizing junk bonds once it is done with investment grade corporates.
Nissan 1 April BAAL Gate Open For Business Austria Bank Bail-In 666 Global Government United Nations Mark Of The Antichrist Beast Zenith 2016 Prophetic Tribulation Commencement Event Window Eye Of Horus 7.1 Earthquake Afghan/Pakistan Antichrist Communist China Attacks Christian Cross
Study used CRISPR technology to introduce HIV-resistance mutation into embryos.
Daley sees a stark contrast between Fan’s work and research approved in February by UK fertility regulators that will allow CRISPR genome editing of human embryos.
Earlier this year, developmental biologist Robin Lovell-Badge, also at the Francis Crick Institute, told Nature that he thought that the carefully considered UK approval might embolden other researchers who are interested in pursuing embryo-editing research. “If they’ve been doing it in China, we may see several manuscripts begin to appear,” he said.
A U.S. Navy officer with access to sensitive U.S. intelligence faces espionage charges over accusations he passed state secrets, possibly to Antichrist Communist China and Taiwan, a U.S. official told Reuters on Sunday.
The official, speaking on condition of anonymity, identified the suspect as Lieutenant Commander Edward Lin, who was born in Taiwan and later became a naturalized U.S. citizen, according a Navy profile article written about him in 2008.
A redacted Navy charge sheet said the suspect was assigned to the headquarters for the Navy’s Patrol and Reconnaissance Group, which oversees intelligence collection activities.
The charge sheet redacted out the name of the suspect and the Navy declined to provide details on his identity.
After days of severe rainfall, the northern and central parts of Malawi suffered catastrophic flooding. Hundreds of people were displaced, as their homes collapsed under severe weather conditions. Traffic was severely disrupted, and at least ten people are feared dead.
Another round of severe storms hit parts of the US South on April 10 and 11, 2016, bringing frequent lightning, strong winds and very large hail.
A woman has been reported dead in Arkansas after losing control of her car during wet condition. Lightning caused several fires in Union County.
A supercell moving across the Sooner State, southeastern Oklahoma dumped hail the size of baseballs. In Oklahoma’s Kay County wind gusts up to 120 km/h (75 mph) were reported.
Baseball-sized hail was also reported in Bowie, Texas.
AccuWeather warned additional severe thunderstorms will erupt across far southeastern Oklahoma, eastern Texas, northern and central Louisiana, far southern Arkansas and Mississippi into Monday night. Heavy thunderstorms will also drop into southern Louisiana overnight Monday. Damaging winds, large hail and flooding downpours will be produced.
There could also be a few tornadoes with the best chance in northeastern Texas and northern Louisiana.
Two massive icebergs broke off the Antarctic coastline over the weekend, threatening valuable scientific equipment deployed by New Zealand’s National Institute of Water and Atmospheric Research (NIWA). NIWA scientists have been monitoring satellite images of the Nansen Ice Shelf at Terra Nova Bay, about 285 km (177 miles) from Scott Base, as part of field work planning for next summer.
On April 10, 2016, NIWA oceanographer Dr. Craig Stevens using NASA satellite images, spotted two separate icebergs had broken off the ice shelf. They are between 5 and 15 km (3.1 and 9.3 miles) in length, up to 5 km across, and could be as much as 100 m (328 feet) thick, according to NIWA.
On Sunday Ukrainian prime minister Yatsenyuk resigned, just four days after the Dutch voted against Ukraine joining the European Union. Taken together, these two events are clear signals that the US-backed coup in Ukraine has not given that country freedom and democracy. They also suggest a deeper dissatisfaction among Europeans over Washington’s addiction to interventionism.
According to US and EU governments – and repeated without question by the mainstream media – the Ukrainian people stood up on their own in 2014 to throw off the chains of a corrupt government in the back pocket of Moscow and finally plant themselves in the pro-west camp. According to these people, US government personnel who handed out cookies and even took the stage in Kiev to urge the people to overthrow their government had nothing at all to do with the coup.
When Assistant Secretary of State Victoria Nuland was videotaped bragging about how the US government spent $5 billion to “promote democracy” in Ukraine, it had nothing to do with the overthrow of the Yanukovich government. When Nuland was recorded telling the US Ambassador in Kiev that Yatsenyuk is the US choice for prime minister, it was not US interference in the internal affairs of Ukraine. In fact, the neocons still consider it a “conspiracy theory” to suggest the US had anything to do with the overthrow.
I have no doubt that the previous government was corrupt. Corruption is the stock-in-trade of governments. But according to Transparency International, corruption in the Ukrainian government is about the same after the US-backed coup as it was before. So the intervention failed to improve anything, and now the US-installed government is falling apart. Is a Ukraine in chaos to be considered a Washington success story?
This brings us back to the Dutch vote. The overwhelming rejection of the EU plan for Ukrainian membership demonstrates the deep level of frustration and anger in Europe over EU leadership following Washington’s interventionist foreign policy at the expense of European security and prosperity. The other EU member countries did not even dare hold popular referenda on the matter – their parliaments rubber-stamped the agreement.
Brussels backs US bombing in the Middle East and hundreds of thousands of refugees produced by the bombing overwhelm Europe. The people are told they must be taxed even more to pay for the victims of Washington’s foreign policy.
Brussels backs US regime change plans for Ukraine and EU citizens are told they must bear the burden of bringing an economic basket case up to European standards. How much would it cost EU citizens to bring in Ukraine as a member? No one dares mention it. But Europeans are rightly angry with their leaders blindly following Washington and then leaving them holding the bag.
The anger is rising and there is no telling where it will end.
In June, the United Kingdom will vote on whether to exit the European Union. The campaign for an exit is broad-based, bringing in conservatives, populists, and progressives. Regardless of the outcome, the vote should be considered very important. Europeans are tired of their unelected leaders in Brussels pushing them around and destroying their financial and personal security by following Washington’s foolish interventionism. No one can call any of these recent interventions a success and the Europeans know it.
One way or the other, the US empire is coming to an end. Either the money will go or the allies will go, but it cannot be sustained. The sooner the American people demand an end to these foolish policies the better.
Back in October 2014, just after the BOJ drastically expanded its QE operation, we warned that the biggest risk facing the BOJ (and the ECB, and the Fed, and all other central banks actively soaking up securities from the open market) was a lack of monetizable supply. We cited Takuji Okubo, chief economist at Japan Macro Advisors in Tokyo, who said that at the scale of its current debt monetization, the BOJ could end up owning half of the JGB market by as early as in 2018. He added that “The BOJ is basically declaring that Japan will need to fix its long-term problems by 2018, or risk becoming a failed nation.”
Which is why 17 months ago we predicted that, contrary to expectations of even more QE from Kuroda, we said “the BOJ will not boost QE, and if anything will have no choice but to start tapering it down – just like the Fed did when its interventions created the current illiquidity in the US govt market – especially since liquidity in the Japanese government market is now non-existent and getting worse by the day.”
As part of our conclusion, we said we do not “expect the media to grasp the profound implications of this analysis not only for the BOJ but for all other central banks: we expect this to be summer of 2016’s business.”
Since then, the forecast has panned out largely as expected: both the ECB and BOJ, finding themselves collateral constrained, were forced to expand into other, even more unconventional methods of easing, whether it be NIRP in the case of the BOJ, or the outright purchases of corporate bonds as the ECB did a month ago.
Then, in September of 2015, the IMF realized the severity of what our forecast meant for Japan, and released a working paper with the non-pretentious title “Portfolio Rebalancing in Japan; Constraints and Implications for Quantitative Easing“, which however had momentous implications because it was a replica of what we had said a year earlier.
In the paper, the IMF said that the Bank of Japan may need to reduce the pace of its bond purchases in a few years due to a shortage of sellers. The paper predicted a world in which, just as we cautioned, “the BoJ may need to taper its JGB purchases in 2017 or 2018, given collateral needs of banks, asset-liability management constraints of insurers, and announced asset allocation targets of major pension funds… there is likely to be a “minimum” level of demand for JGBs from banks, pension funds, and insurance companies due to collateral needs, asset allocation targets, and asset-liability management (ALM) requirements. As such, the sustainability of the BoJ’s current pace of JGB purchases may become an issue.”
The paper’s shocking punchline was how Japan would survive this inevitable phase shift, or as we rhetorically asked, what happens when the regime shifts from the current buying phase to its inverse: The IMF response: “As this limit approaches and once the BoJ starts to exit, the market could move from a situation of shortage to one with excess supply. The term premium could jump depending on whether the BoJ shrinks its balance sheet and on the fiscal deficit over the medium term.
When considering that by 2018 the BOJ market will have become the world’s most illiquid (as the BOJ will hold 60% or more of all issues), the IMF’s final warning is that “such a change in market conditions could trigger the potential for abrupt jumps in yields.”
Or as we put last September, “at that moment the BOJ will finally lose control.”
We even timed it: “But before we get to the QE endgame, we first need to get the interim point: the one where first the markets and then the media realizes that the BOJ – the one central banks whose bank monetization is keeping the world’s asset levels afloat now that the ECB has admitted it is having “problems” finding sellers – will have no choice but to taper, with all the associated downstream effects on domestic and global asset prices.
It’s all downhill from there, and not just for Japan but all other “safe collateral” monetizing central banks, which explains the real reason the Fed is in a rush to hike: so it can at least engage in some more QE when every other central bank fails.
But there’s no rush: remember to give the market and the media the usual 6-9 month head start to grasp the significance of all of the above.
Sure enough, it took the market about 6 months to finally grasp that the BOJ is out of ammo: the result has been a dramatic surge in the Yen coupled with a plunge in the Nikkei, meanwhile Kuroda is left scratching his head what he can do in a world in which the G-20 have specifically prohibited him from easing and making the dollar stronger as that will lead to a return of China’s weak currency-driven, capital outflow crisis.
As for our other forecast from October 2014 in which we said “expect the media to grasp the profound implications of this analysis not only for the BOJ but for all other central banks: we expect this to be summer of 2016’s business” this too was quite prescient. Because while summer is just around the corner, earlier today the mainstream media, in this case the Telegraph’s Ambrose Evans-Pritchard, finally caught up with a piece titled: “Olivier Blanchard eyes ugly ‘end game’ for Japan on debt spiral.” In it he cites none other than the IMF’s former chief economist, Olivier Blanchard who left the IMF just at the time the IMF’s study from last September was made public.
The content of Pritchard’s piece should be familiar to anyone who has followed our musings on this topic for the past two years.
In it, he says that “Japan is heading for a full-blown solvency crisis as the country runs out of local investors and may ultimately be forced to inflate away its debt in a desperate end-game, one of the world’s most influential economists has warned.”
From the article:
Olivier Blanchard, former chief economist at the International Monetary Fund, said zero interest rates have disguised the underlying danger posed by Japan’s public debt, likely to reach 250pc of GDP this year and spiralling upwards on an unsustainable trajectory.
Prof Blanchard said the Japanese treasury will have to tap foreign funds to plug the gap and this will prove far more costly, threatening to bring the long-feared funding crisis to a head.
“If and when US hedge funds become the marginal Japanese debt, they are going to ask for a substantial spread,” he told the Telegraph, speaking at the Ambrosetti forum of world policy-makers on Lake Como.
Analysts say this would transform the country’s debt dynamics and kill the illusion of solvency, possibly in a sudden, non-linear fashion.
That moment in which the illusion dies, is precisely the phase shift which we descibed in September as the moment “market conditions could trigger the potential for abrupt jumps in yields.”
Said otherwise, from plummeting deflation Japan would be faced with soaring yields and hyperinflation as the last recourse buyer, the BOJ, is swept aside.
Prof Blanchard, now at the Peterson Institute in Washington, said the Bank of Japan will come under mounting political pressure to fund the budget directly, at which point the country risks lurching from deflation to an inflationary denouement.
“One day the BoJ may well get a call from the finance ministry saying please think about us – it is a life or death question – and keep rates at zero for a bit longer,” he said.
Pritchard here catches up to what we said in October of 2014, namely that the “BoJ is soaking up the entire budget deficit under Govenror Haruhiko Kuroda as he pursues quantitative easing a l’outrance.” Incidentally, this is the same Pritchard who several years ago was lauding Japan’s QE.
He next points out something we have also warned about for year: “the central bank owned 34.5pc of the Japanese government bond market as of February, and this is expected to reach 50pc by 2017.”
This is us circa last September.
What comes next is the scary part, the part we have been focusing on for years:
Prof Blanchard did not elaborate on the implications of Japan’s woes for the global financial system, but they would surely be dramatic and there are growing fears that this could happen within five years. Japan is still the world’s third largest economy by far. It is also the global laboratory for an ageing crisis that the rest of us will face to varying degrees.
Once markets begin to suspect that Tokyo is deliberately engineering an escape from its $10 trillion public debt trap by means of an inflationary ‘stealth default’, matters could spin out of control quickly.
It might lead to an abrupt reappraisal of sovereign debt risk in other parts of the world, especially in Europe with its own Japanese pathologies of low-growth and bad demographics. Roughly $7 trillion of debt is trading at negative yields worldwide, an accident waiting to happen for the bond market.
After Japan comes Europe:
Prof Blanchard said the risk for the eurozone is the election of populist “rogue governments” that let rip with spending in defiance of Brussels. “Investors would have serious thoughts about buying their sovereign bonds,” he said. The European Central Bank would be legally prohibited from activating its back-stop mechanism (OMT) to prevent yields soaring since these governments would not be in compliance with EU rules. “Some of them have very high debt and presumably would have to default,” he said.
Perhaps, or the ECB will simply unleash the first helicopter money if it can get over the loud German chorus of disagreement. Although once Europe launches Helicopter money, it will be promptly followed by the US as the global monetary devaluation round enters the final sprint. It is no coincidence that earlier today none other than Ben Bernanke admitted that “Helicopter Money May Be The Best Available Alternative.”
What shape the final stand of failed monetary policy takes, is irrelevant. What is relevant, is that for the first time, not only is the Japanese doomsday scenario finally in the mainstream press, but it is acknowledged by none other than one of the Keynesian luminaries AEP is so impressed by:
Prof Blanchard is one of the world’s top theoretical economists over the last quarter century and might have won the Nobel Prize by now if he had not been cajoled into IMF service by his fellow Frenchman, Dominique Straus-Kahn.
He transformed the IMF into a brain-trust of progressive ‘Keynesian’ thinking, much to the fury of Berlin. A leaked document from the German finance ministry said the institution should be renamed the ‘Inflation Maximizing Fund’.
“Professor Blanchard has had the last laugh on that joke. Seven years after the Lehman crisis the eurozone is in outright deflation and yields on 10-year German Bunds are trading at an historic low 0.11pc. Touché.”
Actually let’s check back in another 7 years, because now that even one of the world’s “top theoretical economists” acknowledges that the endgame for trillions in debt ends in a hyperinflationary supernova, and not a deflationary black hole, all those years of sliding interest rates around the globe are about to be flipped on their head. At that point it will be the Germans who are laughing last.
Sadly, there will be nothing else to laugh about as the Keynesian “progressive thinkers” will have finally reached the inevitable and disastrous “end-game” of their failed religion.
An emotional Skull&Bones John Kerry said Hiroshima’s horrible history should teach humanity to avoid conflict and strive to eradicate nuclear weapons as he became the first U.S. secretary of state to tread upon the ground of the world’s first atomic bombing.
With every passing day, the Fed is slowly but surely losing the game.
Only it is not just former (and in some cases current) Fed presidents admitting central banks are increasingly powerless to boost the global economy, even if they still have sway over capital markets. What is far more insidious to the Fed’s waning credibility is when former economists affiliated with the Fed start repeating mantras that until recently were only a prominent feature in the so-called fringe media.
This is precisely what happened today when former central bank staffer and Dartmouth College economics professor Andrew Levin, special adviser to then Fed Chairman Ben Bernanke between 2010 to 2012, joined with an activist group to argue for overhauls at the central bank that they say would distance it from Wall Street and make its activities more transparent and accountable to the public.
Levin is pressing for the overhaul with Fed Up coalition activists. Many of the proposed changes target the 12 regional Federal Reserve Banks, which are quasi-private and technically owned by commercial banks in their respective districts.
All of that is not surprising. What he said to justify his new found cause, however, is.
“A lot of people would be stunned to know” the extent to which the Federal Reserve is privately owned, Mr. Levin said. The Fed “should be a fully public institution just like every other central bank” in the developed world, he said in a conference call announcing the plan. He described his proposals as “sensible, pragmatic and nonpartisan.”
Why is that stunning? Because it has long been a bone of contention if only among the fringe media, that at its core the Fed is merely a private institution, beholden only to its de facto owners: not the people of the U.S. but to a small cabal of banks. Worse, the actual org chart of who owns what is not disclosed, even as the vast majority of the U.S. population remains deluded that the Fed is a publicly owned institution.
As the WSJ goes on to note, the former central bank staffer said he sees his ideas as designed to maintain the virtues the central bank already brings to the table. They aren’t targeted at changing how policy is conducted today. “What’s important here is that reform to the Federal Reserve can last for 100 years, not just the near term,” he said.
And this is coming from a former Fed employee and Ben Bernanke’s personal advisor! That in itself is a most striking development, because now that the insiders are finally speaking up, it will be a race among both current and prior Fed workers to reveal as much dirty laundry as possible ahead of what is increasingly being perceived by many as the Fed’s demise.
To be sure, Levin’s personal campaign for Fed transformation will not be easy, and as the WSJ writes, what is being sought by Mr. Levin and the activists is significant and would require congressional action. Ady Barkan, who leads the Fed Up campaign, said the Fed’s current structure “is an embarrassment to America” and Fed leaders haven’t been “willing or able” to make changes.
Specifically, Levin wants the 12 regional Fed banks to be brought fully into the government. He also wants the process of selecting new bank presidents—they are key regulators and contributors in setting interest-rate policy—opened up more fully to public input, as well as term limits for Fed officials.
This would represent a revolution to the internal staffing of the Fed, which will no longer be at the mercy of its now-defunct shareholders, America’s commercial banks; it would also mean that Goldman Sachs would lose all its leverage as the world’s biggest central bank incubator, a revolving door relationship which has allowed the Manhattan firm to dominate the world of finance for the decades.
Levin’s proposal was made in conjunction with the Center for Popular Democracy’s Fed Up coalition, a group that has been pressuring the central bank for more accountability for some time. The left-leaning group has been critical of the structure of the regional banks, and has been pressing the Fed to hold off on raising rates in a bid to make sure the recovery is enjoyed not just by the wealthy, in their view.
The proposal was revealed on a conference call that also included a representative from Bernie Sanders’s presidential campaign, although all campaigns were invited to participate.
The WSJ adds that according to Levin, who knows the Fed’s operating structure intimately, says the members of the regional Fed bank boards of directors, the majority of whom are selected by the private banks with the approval of the Washington-based governors, should be chosen differently. The professor says director slots now reserved for financial professionals regulated by the Fed should be eliminated, and that directors who oversee and advise the regional banks should be selected in a public process involving the Washington governors and local elected officials. These directors also should better represent the diversity of the U.S.
Levin also wants formal public input into the selection of new bank presidents, with candidates’ names known publicly and a process that allows for public comment in a way that doesn’t now exist. The professor also wants all Fed officials to serve for single seven-year terms, which would give them the needed distance from the political process while eliminating situations where some policy makers stay at the bank for decades. Alan Greenspan, for example, was Fed chairman from 1987 to 2006.
As the WSJ conveniently adds, the selection of regional bank presidents has become a hot-button issue. Currently, the leaders of the New York, Philadelphia, Dallas and Minneapolis Fed banks are helmed by men who formerly worked for or had close connections to investment bank Goldman Sachs.
Levin called for watchdog agency the Government Accountability Office to annually review and report on Fed operations, including the regional Fed banks. He also wants the regional Fed banks to be covered under the Freedom of Information Act. A regular annual review hopefully would insulate the effort from perceptions of political interference, Mr. Levin said.
While ending the Fed may still seem like a pipe dream, at least until the market’s next major crash at which point the population may finally turn on the culprit behind America’s serial boom-bust culture, the U.S. central bank, Levin’s proposal would get to the heart of the most insidious conflict of interest in the US: the fact that the Federal Reserve works not for the people of America, but for its owners – the banks.
Which is also why, sadly, this proposal will be dead on arrival, as its passage would represent the biggest loss for Wall Street in the past 103 years, far more significant than anything Dodd-Frank could hope to accomplish.
Note: ALL THESE BANKERS ARE GOING TO HELL, AND BERNIE SANDERS SHALL BE GOING WITH THEM. THEY ARE ALL ANTICHRIST BASTARDS BOUND FOR ETERNAL DAMNATION. THEY ACCEPTED THE MARK OF THE BEAST AND REJECTED NOT ONLY THE SPIRIT OF THE CONSTITUTION, THEY HAVE REJECTED THE HOLY SPIRIT OF OUR FATHER IN CHRIST.
The bottom line?
These injustices, petty tyrannies and overt acts of hostility are being carried out in the name of the national good—against the interests of individuals, society and ultimately our freedoms—by an elite class of government officials working in partnership with megacorporations that are largely insulated from the ill effects of their actions.
This perverse mixture of government authoritarianism and corporate profits has increased the reach of the state into our private lives while also adding a profit motive into the mix. And, as always, it’s we the people, we the taxpayers, we the gullible voters who keep getting taken for a ride by politicians eager to promise us the world on a plate.
This is a far cry from how a representative government is supposed to operate. Indeed, it has been a long time since we could claim to be the masters of our own lives. Rather, we are now the subjects of a militarized, corporate empire in which the vast majority of the citizenry work their hands to the bone for the benefit of a privileged few.
Adding injury to the ongoing insult of having our tax dollars misused and our so-called representatives bought and paid for by the moneyed elite, the government then turns around and uses the money we earn with our blood, sweat and tears to target, imprison and entrap us, in the form of militarized police, surveillance cameras, private prisons, license plate readers, drones, and cell phone tracking technology.
All of those nefarious deeds that you read about in the paper every day: those are your tax dollars at work. It’s your money that allows for government agents to spy on your emails, your phone calls, your text messages, and your movements. It’s your money that allows out-of-control police officers to burst into innocent people’s homes, or probe and strip search motorists on the side of the road. And it’s your money that leads to innocent Americans across the country being prosecuted for innocuous activities such as raising chickens at home, growing vegetable gardens, and trying to live off the grid.
Just remember the next time you see a news story that makes your blood boil, whether it’s a police officer arresting someone for filming them in public, or a child being kicked out of school for shooting an imaginary arrow, or a homeowner being threatened with fines for building a pond in his backyard, remember that it is your tax dollars that are paying for these injustices.
So what are you going to do about it?
There was a time in our history when our forebears said “enough is enough” and stopped paying their taxes to what they considered an illegitimate government. They stood their ground and refused to support a system that was slowly choking out any attempts at self-governance, and which refused to be held accountable for its crimes against the people. Their resistance sowed the seeds for the revolution that would follow.
Unfortunately, in the 200-plus years since we established our own government, we’ve let bankers, turncoats and number-crunching bureaucrats muddy the waters and pilfer the accounts to such an extent that we’re back where we started.
Once again, we’ve got a despotic regime with an imperial ruler doing as they please.
Once again, we’ve got a judicial system insisting we have no rights under a government which demands that the people march in lockstep with its dictates.
And once again, we’ve got to decide whether we’ll keep marching or break stride and make a turn toward freedom.
But what if we didn’t just pull out our pocketbooks and pony up to the federal government’s outrageous demands for more money? What if we didn’t just dutifully line up to drop our hard-earned dollars into the collection bucket, no questions asked about how it will be spent? What if, instead of quietly sending in our checks, hoping vainly for some meager return, we did a little calculating of our own and started deducting from our taxes those programs that we refuse to support?
If we don’t have the right to decide what happens to our hard-earned cash, then we don’t have very many rights at all. If they can just take from you what they want, when they want, and then use it however they want, you can’t claim to be anything more than a serf in a land they think of as theirs.
This was the case in the colonial era, and it’s the case once again.
NOTE: This time is different. Now, in the age of instant information, people can read the links posted on this blog and cast off doubt and ignorance for the sure certain prophetic Truth of our Father in Christ, and they can now know that America is nothing more than one small country in a Antichrist New World Order global 666 Central Banker Borderless War against humanity that points to Jerusalem, AKA Sodom and Egypt. Now it’s time for a global revolution, which means it’s time for the Antichrist era of the 3 1/2 years of tribulation to start.
…we are all now witnessing that now.
Mainstream news outlets are already starting to use the phrase “economic collapse” to describe what is going on in some areas of our world right now. For many Americans this may seem a bit strange, but the truth is that the worldwide economic slowdown that began during the second half of last year is starting to get a lot worse. In this article, we are going to examine evidence of this from South America, Europe, Asia and North America. Once we are done, it should be obvious that there is absolutely no reason to be optimistic about the direction of the global economy right now. The warnings of so many prominent experts are now becoming a reality, and what we have witnessed so far are just the early chapters of a crushing economic crisis that will affect every man, woman and child in the entire world.
Let’s start with Brazil. It has the 7th largest economy on the entire planet, and it is already enduring its worst recession in 25 years. In fact, at the end of last year Goldman Sachs said that what was going on down there was actually a “depression“.
But now the crisis in Brazil has escalated significantly.
I want to share with you an excerpt from a recent article entitled “Brazil: Economic collapse worse than feared“. I know, that title sounds like it comes directly from The Economic Collapse Blog, but I didn’t write it.
It actually comes from CNN…
Amid political chaos, Brazil’s economic collapse is worse than its government once believed.
In the midst of rising calls to impeach President Dilma Rousseff, Brazil’s central bank announced Thursday that it now expects the country’s economy to shrink 3.5% this year.
That’s worse than the central bank’s previous estimate for a 1.9% contraction. The darker forecast matches what the International Monetary Fund projected for Brazil — Latin America’s largest country — and what many independent economists have suspected.
It is one thing for Michael Snyder to tell you that Brazil is in the midst of “economic collapse”, but it is another thing entirely for CNN to say it.
And of course I have been warning about the crisis down in Brazil for quite some time now. For much more on this, please see my previous article entitled “The Economic Collapse Of South America Is Well Underway“.
Meanwhile, things are actually much worse in Venezuela than they are in Brazil. Food and basic supplies are in short supply, the inflation rate has hit 720 percent, and crime is completely out of control.
The following is from an article in the Independent entitled “Venezuela is on the brink of complete economic collapse“…
The only question now is whether Venezuela’s government or economy will completely collapse first.
The key word there is “completely.” Both are well into their death throes. Indeed, Venezuela’s ruling party just lost congressional elections that gave the opposition a veto-proof majority, and it’s hard to see that getting any better for them any time soon — or ever.
Incumbents, after all, don’t tend to do too well when, according to the International Monetary Fund, their economy shrinks 10 percent one year, an additional 6 percent the next, and inflation explodes to 720 percent. It’s no wonder, then, that markets expect Venezuela to default on its debt in the very near future. The country is basically bankrupt.
Once again we see a very respected mainstream publication using the phrase “economic collapse” to describe what is happening in South America.
You can find some stunning video of the “economic Armageddon” that is taking place in Venezuela right here. I would encourage you to watch that video, because what is happening down there will eventually be happening here.
Meanwhile, over in Europe the collapse of the Italian banking system has entered a disturbing new chapter. Italy’s finance minister has called a meeting in Rome for Monday that will be focusing on a “last resort” bailout plan for the troubled banks…
Finance minister Pier Carlo Padoan has called a meeting in Rome on Monday with executives from Italy’s largest financial institutions to agree final details of a “last resort” bailout plan.
Yet on the eve of that gathering, concerns remain as to whether the plan will be sufficient to ringfence the weakest of Italy’s large banks, Monte dei Paschi di Siena, from contagion, according to people involved in the talks.
Italian bank shares have lost almost half their value so far this year amid investor worries over a €360bn pile of non-performing loans — equivalent to about a fifth of GDP. Lenders’ profitability has been hit by a crippling three-year recession.
As Italy descends into financial chaos, the rest of the continent better be paying attention.
Do you remember how hard it was for the rest of Europe to rescue Greece?
Well, Greece has the 44th largest economy on the planet.
Italy has the 8th.
It would be hard to overstate the seriousness of what is going on over in Europe, and it is not just Italy we are talking about. All over the continent major banks are in deep trouble, and the chairman of France’s second largest retail bank recently told reporters that “I am much more worried than I was in 2009“.
And there is very good reason for concern. On Sunday, we learned that a major “bail-in” had just been announced for one of Austria’s most prominent banks. The following comes from Zero Hedge…
And then today, following a decision by the Austrian Banking Regulator, the Finanzmarktaufsicht or Financial Market Authority, Austria officially became the first European country to use a new law under the framework imposed by Bank the European Recovery and Resolution Directive to share losses of a failed bank with senior creditors as it slashed the value of debt owed by Heta Asset Resolution AG.
The highlights from the announcement:
Today, the Austrian Financial Market Authority (FMA) in its function as the resolution authority pursuant to the Bank Recovery and Resolution Act (BaSAG – Bundesgesetz über die Sanierung und Abwicklung von Banken) has issued the key features for the further steps for the resolution of HETA ASSET RESOLUTION AG. The most significant measures are:
a 100% bail-in for all subordinated liabilities, a 53.98% bail-in, resulting in a 46.02% quota, for all eligible preferential liabilities, the cancellation of all interest payments from 01.03.2015, when HETA was placed into resolution pursuant to BaSAG, as well as a harmonisation of the maturities of all eligible liabilities to 31.12.2023.
According to the current resolution plan for HETA, the wind-down process should be concluded by 2020, although the repayment of all claims as well as the legally binding conclusion of all currently outstanding legal disputes will realistically only be concluded by the end of 2023. Only at that point will it be possible to finally distribute the assets and to liquidate the company.
The dominoes are starting to fall in Europe, and I would expect even bigger announcements in the weeks and months to come.
Over in Asia, economic chaos is beginning to prevail as well.
In Antichrist Communist China, the stock market is already down more than 40 percent from the peak, Antichrist Communist Chinese exports were down 25.4 percent on a year over year basis in February, and Antichrist Communist Chinese economic numbers overall have not been this poor since the depths of the last global recession.
At the same time, the Japanese economy is really struggling right now. As I wrote about the other day, Japanese GDP has shrunk for two out of the last three quarters, we just saw Japanese industrial production experience the biggest one month decline that we have witnessed since the tsunami of 2011, and business sentiment has fallen to a three year low. The Nikkei has dropped by about 5,000 points from where it was last summer, and some analysts believe that Japanese markets “are being destroyed” due to massive intervention by the Bank of Japan.
Here in the United States, we haven’t been hit quite as hard as the rest of the world just yet, but there are lots of very disturbing warning signs all around us.
At the end of last week, we learned that it is being projected that U.S. GDP will have grown by just 0.1 or 0.2 percent during the first quarter of 2016. And on Monday corporate earnings reporting season begins, and it is expected to be a very, very bad one. The following comes from Business Insider…
We are about to get confirmation that earnings growth for America’s biggest companies was negative in the first quarter, compared to the same period a year ago.
When aluminum giant Alcoa releases its results on Monday, it will mark the unofficial start of the heaviest reporting season for S&P 500 companies.
The final scoreboard is expected to show a 9.1% earnings drop for the quarter, according to FactSet senior earnings analyst John Butters.
If these projections turn out to be accurate, it will be the fourth quarter in a row of earnings declines. This is something that we never see outside of a recession.
And for a whole bunch more numbers which indicate that the U.S. economy is in very serious trouble, please see my previous article entitled “19 Facts That Prove Things In America Are Worse Than They Were Six Months Ago“.
Of course I am just another voice in the crowd when it comes to predicting that the U.S. economy is headed for rough times. For example, just check out what Societe Generale economist Albert Edwards is saying…
A tidal wave is coming to the US economy, according to Albert Edwards, and when it crashes it’s going to throw the economy into recession.
…the profit recession facing American corporations is going to lead to a collapse in corporate credit.
“Despite risk assets enjoying a few weeks in the sun our fail-safe recession indicator has stopped flashing amber and turned to red”
Whole economy profits never normally fall this deeply without a recession unfolding. And with the US corporate sector up to its eyes in debt, the one asset class to be avoided — even more so than the ridiculously overvalued equity market — is US corporate debt. The economy will surely be swept away by a tidal wave of corporate default.
As you can see, it isn’t just one nation or one region of the world that we need to be concerned about.
Economic chaos is erupting literally all over the planet, and global leaders are starting to panic.
Unfortunately, they have had seven years to try to fix things since the last global recession, and they didn’t get the job done. Anyone that believes that by some miracle they will be able to pull us out of the fire this time and that everything will somehow be okay is simply engaged in wishful thinking.
For the mystery of lawlessness [rebellion against divine authority and the coming reign of lawlessness] is already at work; [but it is restrained] only until he who now restrains it is taken out of the way. 8 Then the lawless one [the Antichrist] will be revealed and the Lord Jesus will slay him with the breath of His mouth and bring him to an end by the appearance of His coming. 9 The coming of the [Antichrist, the lawless] one is through the activity of Satan, [attended] with great power [all kinds of counterfeit miracles] and [deceptive] signs and false wonders [all of them lies], 10 and by unlimited seduction to evil and with all the deception of wickedness for those who are perishing, because they did not welcome the love of the truth [of the gospel] so as to be saved [they were spiritually blind, and rejected the truth that would have saved them].
11 Because of this God will send upon them a misleading influence, [an activity of error and deception] so they will believe the lie, 12 in order that all may be judged and condemned who did not believe the truth [about their sin, and the need for salvation through Christ], but instead took pleasure in unrighteousness.