ECB Backs Italy & Spain!
- Hegelian Dialectic in action! Illuminist banks and hedge funds create the problem by attacking Italy and Spain ie selling their bonds. This drive interest rates up and threatens to collapse Italy and Spain. Illuminist central banks pretend to be unwilling to takeover national sovereignties. The problem festers and markets are driven lower. The sheeple react with fear and horror, looking for someone to save them.
- - The Illuminists see the desired reaction from the sheeple and rides in ‘unwillingly’ to rescue the countries! Once again posing as saviors to the problems they caused! The Illuminist financial MSM are complicit in this psyop against the sheeple, in manipulating the sheeple to the Illuminist’s plan. Look at the all seeing eye symbol on CNBC’s Stock To Watch in the 2nd video below!
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France And Italy Stand By To Bail Out Biggest Banks as Euro Crisis Worsens!
- The major banks in America and the Eurozone are insolvent (ie. bankrupt!). The only reason they are still standing is because politician snakes have exerted pressure and the laws of fair market value accounting have been changed. Essentially, banks are now allowed to value whatever crap they have on their balance sheet at fantasy value. The toxic derivatives, MBS, ABS … which are largely worthless are valued at whatever the banks say so.
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France and Italy stand by to bail out biggest banks as euro crisis worsens
By Simon Watkins and Dan Atkins, http://www.dailymail.co.uk/
Fears are growing this weekend that two of Europe’s largest banks may require a bailout, having been hugely damaged by the worsening crisis across the eurozone.
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In France, President Nicolas Sarkozy is having to confront the possibility that the country’s second-biggest bank, Societe Generale -commonly known as SocGen - is on the brink of disaster after huge losses over loans made to Greece. The chilling possibility of the largest bank in Italy, UniCredit Banca, suffering a similar collapse if a bailout is not implemented comes as Silvio Berlusconi already faces an increasingly dangerous national economic situation.
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In Britain, a senior Government source described the position of the two banks as ‘perilous’, although an official Treasury spokesman declined to comment. Should either bank collapse, British customers with deposits of up to about £85,000 would be protected by the Financial Services Compensation Scheme.
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As ministers of the G7 nations – Britain, France, Italy, Germany, Japan, the U.S. and Canada – prepare to meet to discuss the mounting euro crisis, the French and Italian governments are believed to be standing ready to rescue the banking giants. But it is thought the mechanisms they have in place to rescue financial institutions are less developed than those in Britain, which was far worse affected by the credit crunch in 2008 and as a result put in place fuller contingency plans.
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The merest hint a major bank might fall is likely to reignite panic tomorrow in the stock market, which is already feared to react badly to the credit downgrade of the U.S. by rating agency Standard & Poor’s.
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Last night Chancellor George Osborne, whose Treasury officials have ‘war-gamed’ various scenarios ahead of the markets opening, was due to discuss the crisis with Christine Lagarde, head of the International Monetary Fund (IMF).
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SocGen reported a loss of £350million on Greek debt last week. It has a total of £2.2billion of Greek debt and also owns 88 per cent of the Greek bank Geniki, whose value has collapsed in recent months.
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For Italy, damage to UniCredit, in which Barclays has a two per cent share, would be a bitter blow. Its strategy of caution has led it to invest heavily in Italian government bonds which were until recently seen as safe, but as these have come under pressure the bank’s shares have plummeted.
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Experts fear that if any single bank is seen to be in trouble, all lending could freeze up in the resultant climate of fear, with devastating consequences. It was a similar situation which led to the run on Northern Rock in 2007 that required a Government bailout. The European Central Bank has already reported banks unwilling to trust each other with overnight funds.
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China Calls For New Global Reserve Currency!
- The Chinese are in a pickle. They are caught with US$1.5-2.0T of USD denominated reserves. They cannot get rid of it without shooting their entire leg off. It is global financial Armageddon when they do use the ‘nuclear option’ of dumping all their USD and US treasuries! Calling for the immediate creation of an alternative global reserve currency is one way of getting out of this shit hole. But it is probably too late!
- - This engineered crisis is setting the stage for a One World Currency. The question is: who will have control over this new World Financial-Monetary Hegemony? Will it be the Chinese Illuminati or the western Anglo-American Illuminati? The Illuminist snakes will pit the Chinese sheeple against the western world sheeple and vice versa in a world war, as a chess game to see who has final control. Biblically, the Anglo-American cabal, western Black Nobility will win.
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China Calls For New Global Reserve Currency!
by http://rt.com/
China, the US’s biggest creditor, reacted to the downgrade of America’s credit rating by saying it showed that US should “cure its addiction to debts” and called for a new stable global reserve currency instead of the dollar.
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“The US government has to come to terms with the painful fact that the good old days when it could just borrow its way out of messes of its own making are finally gone,” China’s official Xinhua news agency declared in a commentary.
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The Standard & Poor’s credit agency cut the US long-term rating from AAA to AA+ on Friday over concerns about the nation’s climbing debt and budget deficit problems.
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“China has every right now to demand the US address its structural debt problems and ensure the safety of China’s dollar assets,” Xinhua news agency stated. China is now calling for a new stable global reserve currency.
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“International supervision over the issue of US dollars should be introduced and a new, stable and secured global reserve currency may also be an option to avert a catastrophe caused by any single country,” Xinhua wrote. Concerns are also rising in Asia’s third-largest economy, India, where the Finance Minister called the situation “grave.”
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“We will have to analyze [the downgrade]. It will require some time,” Finance Minister Pranab Mukherjee told reporters in New Delhi. It comes as Indian shares hit a 13-month intraday low on Friday due to US economic worries and the European debt crisis.
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Asian markets plunged on Friday following carnage in US and EU markets amid fears of a double-dip global recession. And the dollar has yet to face the markets when they respond on Monday to the US credit rating downgrade by Standard and Poor’s. The sell-off in Asia followed the biggest one-day points decline on Wall Street since the 2008 financial crisis. Stocks in India and Japan have gone into nosedive as confidence built by America’s move to raise its debt ceiling on Tuesday ebbed away.
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Asian observers of the American political scene have been unimpressed by the brinkmanship which delayed a resolution of the debt ceiling issue until the 11th hour. A number of Chinese newspapers went so far as to call the whole debacle immoral and irresponsible.
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The US credit rating downgrade is expected to cause yet more worries in Asia, bringing anxieties over America’s financial health to a tipping point after all the other debates and decisions of the past week.
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With the dollar hitting its lowest point in several years, a critical mass of opinion is building in Asia over whether it should continue to be used as a reserve currency.
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Asia has a vested interest in what is going on in the United States as they hold three trillion dollars of US debt, so what happens in America clearly affects what happens in Asia greatly. If Americans do not have jobs, then they are not spending money on consumer goods – and in many cases that means Asian exports. With confidence at a nadir in Asia now, the stock market meltdown comes as no great surprise to many analysts who predicted at the beginning of week that a slump was on the horizon.
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World Markets Braced For Flight To Safety!
- A flight to safety means gold is going alot higher. No matter how the Illuminist bullion banksters try to depress gold price, they will fail. They know it and are simply fighting a rear guard action, a controlled retrograde move before allowing gold to explode higher! Great volatility in gold and silver prices (especially silver) are to be expected. Just ignore all of it, accumulate physical gold and silver!
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World markets braced for flight to safety
By Katherine Rushton, http://www.telegraph.co.uk/
World markets are expected to open heavily down on Monday after the decision by Standard & Poor’s to downgrade the US sovereign credit rating from AAA to AA+.
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After a week in which some $2.5 trillion (£1.5 trillion) was wiped off the value of global equities, investors are set to seek further solace from traditional indices, with gold and other safe havens likely to continue their ascent.
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Banks and investors who had been placing their bets on US government debt will be quick to move their investments when trading begins tomorrow. With UK government debt still enjoying an AAA rating, the increased demand will push down yields, the implied interest rates, even further.
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Many pension funds are obliged to have their money in AAA-rated investments, and other investors will be wary of volatility in the stock market that is expected to ensue.
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The US downgrade is also expected to push the price of gold northwards, despite a slip from its record of $1,684.90 to $1,651.80 an ounce in New York on Friday, as some investors sold the precious metal to cover losses in other markets. Fitch and Moody’s still have AAA ratings on the US, but S&P’s move will send shock waves through the markets when trading reopens.
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Last week, Wall Street experienced its worst week since September 2008, with the S&P 500 falling 7.2pc and the Dow Jones Industrial Average lost 5.2pc. In Britain, the FTSE 100 slumped 9.8pc.
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Analysts also predict a rush on safe-haven currencies such as the Swiss franc and the Japanese yen, but were divided over the immediate impact on the dollar. Mansoor Mohi-uddin, head of foreign exchange strategy at UBS, predicted it would remain relatively strong, at least in the first instance, while analysts at Capital Economics said S&P’s decision to “finally pull the trigger” would cause the dollar to fall, but that this would be relatively short-lived.
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Saudi Stock Market First To Plunge on S&P Downgrade!
- How will this week turn out? It is going to be a wild ride. Israeli stock market has collapsed 6+% before being suspended. I suspect that by the end of the week the FedRes will announce QE3 to stamp collapsing stock markets.
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Saudi stock market first to plunge on S&P downgrade
http://www.telegraph.co.uk/
Saudi Arabia’s stock market dropped 5.46pc on Saturday as it became the first exchange to react to the historic US credit downgrade.
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The Tadawul All-Shares Index closed down 350.43 points 6,073.44 as all shares tumbled following a tumultous week for global markets which was capped by Standard & Poor’s cutting the US credit rating over its $14.3 trillion deficit and debt. “The S&P rating and problems in Europe… have scared investors,” said financial analyst Abdulwahab Abu Dahesh.
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The Saudi market was the first to react globally to the S&P statement late on Friday, with the start of the trading week in Saudi Arabia, while all other markets remained shut for the weekend. Analysts expect markets in Asia and Europe to follow the Tadawul lower on Monday.
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“Saudi shares have reacted to two events: sharp drops on Thursday in markets, especially oil, and the S&P cut of the US rating,” economist Mohammed al-Omran told Al-Arabiya news channel.
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Global oil prices fell sharply last week on fears of a slowdown in the US but recovered after better-than-expected jobs data on Friday. Saudi Arabia sits on one-fifth of world oil reserves and is the largest exporter of crude oil.
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Jim Sinclair: Exponential Upward Moves in Gold Price After US$1764/oz !
Listen to the legendary Jim Sinclair!
Shock Wave Coming: ‘Gold & Currencies Basket To Substitute US Dollar’!
- ANZ, Japan and Korea markets have opened down 1-3%. Gold hits record highs at US$1685/oz.
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Societal and economics observer and commentator with an endtimes, future history perspective. Follow me at Twitter: socioecohistory
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