Socio-Economics History Blog

Socio-Economics & History Commentary

Bank of America Dangerous US$53 Trillion Derivatives Deal !

  • The Illuminist banksters are still screwing Joe Public! These derivatives are toxic gambling bets! Why is the FedRes supporting them in this action? Because the shareholders of the FedRes are the same shareholders of these large banks! (emphasis mine)
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    Bank Of America Forces Depositors To Backstop Its $53 Trillion Derivative Book To Prevent A Few Clients From Departing The Bank
    by Tyler Durden, http://www.zerohedge.com/
    Bank of America, which today reported a big bottom line loss net of one-time beneficial items, did something quite tricky and extremely devious last month: it shifted anywhere up to the total of $53 trillion of the total derivatives it held as of June 30 (as Zero Hedge previously reported) on its books at Q2 from the Holding Company, which was downgraded last by Moody’s from A2 to Baa1 (the third-lowest investment grade rating) to its retail bank, which was downgraded to the far more palatable A2 (from Aa3).
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    The reason for the transfer? Bank customers who were uneasy with the fact that suddenly the collateral backstoping the operating entity handling their counterparty risk was downgraded to just above junk, demanded that said counterparty risk be mitigated by the bank’s $1 trillon in deposits. In other words, … anywhere up to the full $53 trillion (we don’t know for sure how much so we assume the worst case) is now fully and effectively backstopped explicitly by the bank’s $1,041 trillion (as of September 30) deposits.
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    .. we meant the people’s deposits: the same deposits which caused the bank’s website to be inoperative for several days in a row after it was rumored that there was an electronic run on the bank. Why? Just so Bank of America … remaining clients .. decide not to take their business to another derivative counterparty. And who is exposed to this latest idiocy? Why you. But that’s not all: the FDIC, which is the entity backstopping the deposits in a worst-case scenario, is not happy with this move for obvious reasons. Yet even it is hopeless to override the Fed, which as Bloomberg reports, “has signaled that it favors moving the derivatives to give relief to the bank holding company.” And so, once again, we see just how much more important to the Federal Reserve are interests of US taxpayers and savers, over those of the banks that effectively run the Fed.

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October 21, 2011 Posted by | Economics | , , , , , , , , | Comments Off

European Debt Crisis Talks Plunged into Chaos as Leaders Announce Another Summit !

  • Don’t get caught up with the volatility of the financial markets. They are moving on every hint of a rumour between euphoria and meltdown. Whatever Merkozy come out with, it will not prevent a coming global economic, financial and monetary collapse! Got physical gold yet?
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    European debt crisis talks plunged into chaos as leaders announce another summit
    By , and Bruno Waterfield, http://www.telegraph.co.uk/
    Plans to “decisively address” the debt crisis this weekend were   plunged into chaos on Thursday night as European leaders were forced to   announce another “summit” next week amid political deadlock   between France and Germany.
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    A statement released by the Elysee Palace said that Nicolas Sarkozy and Angela   Merkel would meet to discuss their “ambitious and comprehensive response”   to the crisis ahead of the European Council summit on Sunday. But in a tacit admission of the gulf between them, the statement added that   resolutions would be “finally adopted” at a “second meeting   no later than Wednesday”.
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    Insiders said the weekend’s summit of European leaders came close to being   cancelled altogether, with the French president Mr Sarkozy having to beg   German Chancellor Mrs Merkel not to pull the plug during frantic telephone   calls.
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    The news came as US President Barack Obama praised Mr Sarkozy and Mrs Merkel   for working “diligently” for a “politically sustainable”   solution to the eurozone crisis in a video conference with the two leaders   and UK Prime Minister David Cameron.
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    The second summit delay sent shockwaves around the world. Politicians and   financiers have been banking on repeated pledges from France and Germany to “decisively address” the crisis by Sunday.
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    … for the full article click here!

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October 21, 2011 Posted by | Economics | , , , , , , | Comments Off

Documentary: Wake Up Call ! The Coming Luciferian New World Order!

  • Excerpts above. Full version below!
  • Topics covered:
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    The New World Order, Federal Reserve, Bilderberg Group, Trilateral Commission, Council on Foreign Relations, North American Union, the Rockefeller/Rothschild families, Freemasonry, Bohemian Grove, the Illuminati, Illuminati symbolism, Problem-Reaction-Solution, 9-11, war profiteering, the phony ‘War on Terrorism’, the impending ‘Big Brother Surveillance Society’, the war on civil liberties, microchipping, mind control, media control and ‘education system’ indoctrination.
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    Featuring:
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    Alex Jones, David Icke, Aaron Russo, Jordan Maxwell, G. Edward Griffin, Jim Marrs, Bill Hicks, Daniel Estulin, Jim Tucker, Ted Gunderson, Anthony Hilder, Professor Steven Jones, Webster Tarpley, George Carlin, John Taylor Gatto, Charlotte Iserbyt, Dave vonKleist, Stan Monteith and others…

The Western Illuminati Organization Chart. Source: http://www.stevequayle.com

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October 21, 2011 Posted by | Economics, GeoPolitics, History, Social Trends | , , , , , , , , , , , , , , , , | Comments Off

Meltdown: The Secret History of Global Financial Collapse! A Global Tsunami! (Part 2)

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October 21, 2011 Posted by | Economics, History | , , , , , , , , , , | 2 Comments

Ron Paul’s Warning On The Inevitable Collapse Of The Dollar And Its Consequences!

October 21, 2011 Posted by | Economics, Social Trends | , , , , , , , , , , , , , , | Comments Off

Bud Conrad: U.S. Collapse Predicted !

US train wreck coming!

  • This economic crisis is planned long ago by the Illuminist. It is the intentional financial raping of the sheeple in a ‘slow boiling of the frog’ fashion. The sheeple are too dumb to figure this out. More debts have been piled upon existing debts and even more debts are being created. The end result is always a catastrophic collapse. If the 1929 Great Depression is any guide, the world will head towards world war!
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    Bud Conrad: U.S. Collapse Predicted
    by http://www.theaureport.com/
    Casey Research Chief Economist Bud Conrad believes the United States is acting as a late-stage empire, acting aggressively on the world stage, lowering its moral standards and debasing its currency. In this exclusive interview with The Gold Report at the Casey Research/Sprott Inc. “When Money Dies”  Summit, he explains the options for how the inevitable collapse will occur.

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    The Gold Report: At the Casey Research/Sprott Inc. Summit, you gave a presentation called, “A Crisis of Confidence.” After all the government stimulus from the U.S. and the rest of the world aimed at injecting liquidity and keeping interest rates low, why didn’t any of it work? Why is the economy still hurting?
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    Bud Conrad: First, printing money doesn’t create wealth. Putting bits in a computer doesn’t create wealth. When politicians hand out money, they are the ones who get powerful and the banks get wealthy. The middle class with savings gets hurt. What creates wealth is people working and creating things.
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    Internationally, the Chinese are papering over their slowing growth rate by providing liquidity, but paper money systems will collapse. That is the reality. The global financial system is supremely unstable. When people wake up to the fact that this is a “king ain’t got no clothes” economy, we will see a run to the exits.
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    TGR: It seems like we are saying that the currency is going to fail because of debt to gross domestic product (GDP), not because governments can print money. If governments were disciplined, then would printing money be a problem?
    BC: When the U.S., and therefore every other country, went off the last vestige of the gold standard, we were placed in a fairyland. That is even more important than the debt. It is linked. Debt is the result of the ability to print money. If there were redeemability, the U.S would have stopped issuing debt when it ran out of money. Without fiat currency, the country wouldn’t have reached the current level of debt.
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    No government is disciplined. My question is: “Why are people letting them get away with it? Why aren’t people out protesting in the streets?” Thousands of bankers should be in jail right now. There is an attitude of resignation in young people today that dismays me. Maybe they know they can’t fight city hall.
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    TGR: If we are all resigned that whatever is going to happen will happen, how can people protect themselves?
    BC: A lot of people probably believe that everything will be okay. When we have a financial collapse and people stop getting their payments and they see bankers and government contractors getting rich, maybe people will take matters into their own hands. It could be dangerous to be in the streets because people who are hungry will rob you.
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    TGR: If the bubble has already broken in the U.S. stock and real estate market and is getting ready to burst in China, are there any upside opportunities?
    BC: In a paper money/fiat currency collapse, the things to hold are real assets—gold and oil will look like you are making money. Gold doesn’t change. It is just gold. When the price goes up, the metal isn’t any different. Only the dollar is going down.
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    There is also a moral component to the question. A lot of people are getting out of the country. This is where I was born and where my family lives and I am an American so I probably won’t go anywhere, but a lot of people are considering moving out of the U.S. to protect themselves and their assets.
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    TGR: What is your biggest fear for your children?
    BC: That the government has turned it into a totalitarian state where the people don’t have personal freedoms to assemble, think and live their lives without surveillance, over-taxation and subservience to the state. I worry that my children and grandchildren could be impoverished by conflict, by a society that dissipates it resources in wars that only destroy wealth, rather than creating anything.
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    I also worry about how they will fuel their economic growth. Fossil fuels created the abundance of our generation like humanity has never experienced before. We have used half of the dinosaur remains out there. If we use it all up, then we will have to reduce the number of people on the planet. Now we need to start thinking about what is next. I don’t know how my grandchildren will live in an abundant society when energy becomes so expensive and scarce that we have big wars over it. It’s already happening. Energy explains the conflicts in the Middle East more than religion ever could.
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    …. click here to read more!

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October 21, 2011 Posted by | Economics | , , , , , , , , , , , , , , , , | Comments Off

Graham Summers: Four Facts That PROVE The EFSF Doesn’t Matter… At All !

It's not just the PIIGS that are in trouble! EU, US and Japan are toast!

  • The Eurozone sovereign debt crisis charade continues. All that is happening is just political theatre. The end result is the collapse of the Eurozone leading to a global financial, economic and monetary meltdown. Got physical gold yet?
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    Four Facts that PROVE the EFSF Doesn’t Matter… At All
    by Graham Summers
    It’s time to settle the debate regarding Europe’s banking system. I know that the mainstream media keeps talking about another round of bailouts or an expansion to the Emergency Financial Stability Facility (EFSF) as though these things matter.
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    But the reality is… they don’t. Europe’s problems go WAY beyond Greece’s debt. And the entire European banking system is primed for a systemic collapse. Consider the following four facts:
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    FACT #1: Europe’s entire banking system is leveraged at 25 to 1.
    This is nearly two times the US’s leverage levels. With this amount of leverage you only need a 4% drop in asset prices to wipe out ALL equity. These are literally borderline-Lehman levels of leverage (Lehman was 30 to 1).
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    Mind you, these leverage levels are based on asset values the banks claim are accurate. Real leverage levels are in fact likely much MUCH higher.

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    KA-BOOM.
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    FACT #2: European Financial Corporations are collectively sitting on debt equal to 148% of TOTAL EU GDP.
    Yes, financial firms’ debt levels in Europe exceed Europe’s ENTIRE GDP. These are just the financial firms. We’re not even bothering to mention non-financial corporate debt, household debt, sovereign debt, etc.

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    Also remember, collectively, the EU is the largest economy in the world (north of $16 trillion). So we’re talking about over $23 TRILLION in debt sitting on European financials’ balance sheets.
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    Oh, I almost forgot, this data point only includes “on balance sheet” debt. We’re totally ignoring off-balance sheet debt, derivatives, etc. So REAL financial corporate debt is much MUCH higher.
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    KA-BOOM.
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    FACT #3: European banks need to roll over between 15% and 50% of their total debt by the end of 2012.
    That’s correct, European banks will have to roll over HUGE quantities of their debt before the end of 2012. Mind you, we’re only talking about maturing debt. We’re not even considering NEW debt or equity these banks will have to issue to raise capital.

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    Considering that even the “rock solid” German banks need to raise over $140 BILLION in new capital alone, we’re talking about a TON of debt issuance coming out of Europe’s banks in the next 14 months.
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    And this is happening in an environment prone to riots, bank runs, and failed bond auctions (Germany just had a failed bond auction yesterday).
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    KA-BOOM
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    FACT #4: In order to meet current unfunded liabilities (pensions, healthcare, etc) without defaulting or cutting benefits, the average
    EU nation would need to have OVER 400% of its current GDP sitting in a bank account collecting interest.
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    This last data point comes from Jagadeesh Gokhale, Senior Fellow at the Cato Institute, former consultant to the US Treasury, and former Senior Economic Advisor to the Federal Reserve Bank of Cleveland.

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    This is a guy who’s worked at a very high level on the inside studying sovereign finance, which makes this fact all the more disturbing. And he knew this as far back as January 2009!!!
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    Folks, the EFSF, the bailouts, China coming to the rescue… all of that stuff is 100% pointless in the grand scheme of things. Europe’s ENTIRE banking system (with few exceptions) is insolvent. Numerous entire European COUNTRIES are insolvent. Even the more “rock solid” countries such as Germany (who is supposed to save Europe apparently) have REAL Debt to GDP ratios of over 200% and STILL HAVEN’T RECAPITALIZED THEIR BANKS.
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    Again, it DOES NOT matter what Sarkozy and Merkel say. It doesn’t matter how much leverage the EFSF gets. Europe is broke. End of story. And those investors who get suckered into betting this mess will work out well are very likely going to lose everything.

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    The impact of the fallout from this will make 2008 look like a joke. The EU is the largest economy in the world. So if its banking system collapses (and it will) we’re facing a full-scale Global financial meltdown (the IMF has even warned of this).
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    That’s the reality of the situation we’re in today. I know nobody likes to publicly admit it. But it’s true. What happened in 2008 was literally just the warm up. The REAL DEAL is coming in the next 14 months. And it’s going to involve corporate, financial, and sovereign defaults.

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October 21, 2011 Posted by | Economics | , , , , , , | Comments Off

Does One ‘Super-Corporation’ Run The Global Economy? Study Claims It Could be Terrifyingly Unstable!

The 1,318 transnational corporations that form the core of the globalised economy - connections show partial ownership of one another, and the size of the circles corresponds to revenue. The companies 'own' through shares the majority of the 'real' economy.

  • Most large MNCs (Multi-National Corporations) are Illuminist owned. The share ownership are held under many separate entities, foundations, banks …etc. But the true source of ownership/control goes back to the 13 Satanic bloodlines, the Black Nobility.
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    Does one ‘super-corporation’ run the global economy? Study claims it could be terrifyingly unstable
    By Rob Waugh, http://www.dailymail.co.uk/
    - Research found that 147 companies formed a ‘super entity’ within group, controlling 40 per cent of its  wealth
    A University of Zurich study ‘proves’ that a small group of companies – mainly banks – wields huge power over the global economy. The study is the first to look at all 43,060 transnational corporations and the web of ownership between them – and created a ‘map’ of 1,318 companies at the heart of the global economy.

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    The study found that 147 companies formed a ‘super entity’ within this, controlling 40 per cent of its  wealth. All own part or all of one another. Most are banks – the top 20 includes Barclays and Goldman Sachs. But the close connections mean that the network could be vulnerable to collapse.
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    ‘In effect, less than one per cent of the companies were able to control 40 per cent of the entire network,’ says James Glattfelder, a complex systems theorist at the Swiss Federal Institute in Zurich, who co-wrote the research, to be published in the journal PLoS One.
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    Some of the assumptions underlying the study have come in for criticism – such as the idea that ownership equates to control. But the Swiss researchers have no axe to grind: they simply applied mathematical models usually used to model natural systems to the world economy, using data from Orbis 2007, a database listing 37 million companies and investors.
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    … click here to read more!

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October 21, 2011 Posted by | Economics, Social Trends | , | Comments Off

Webster G. Tarpley: Obama’s War Effort Surpasses Bush, Mirrors Hitler!!

October 21, 2011 Posted by | GeoPolitics | , , , , , , , , , , , , | Comments Off

The Coming Cashless Society with Writer John B. Wells!

October 21, 2011 Posted by | Economics, GeoPolitics, Social Trends | , , , , , | Comments Off

Alan Watt: The Planned Authoritarian Society!

October 21, 2011 Posted by | Economics, GeoPolitics, Social Trends | , , , , , , , , , , , , , | Comments Off

Keiser Report: Live And Let Fail !

  • YouTube:
    This week Max Keiser and co-host, Stacy Herbert, talk about the European penny drops as more banks need more bailouts while the public debt clock ticks up to $40 trillion. In the second half of the show, Max Keiser interviews Michael Betancourt about the threat that Occupy Wall Street presents to our modern form of capitalism that relies on ignorance and passivity in the population in order to operate schemes of fraud and bubbles.

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October 21, 2011 Posted by | Economics, GeoPolitics, Social Trends | , , , , , , , , , , , , | Comments Off

Killing Gaddafi Easy Cover-Up for West Deals!

October 21, 2011 Posted by | GeoPolitics | , , , , , , , | Comments Off

NATO Bombed Libya Back into Stone Age!

  • Daniel 7:23 (New King James Version)
    23 “Thus he said:
    ‘ The fourth beast shall be
    A fourth kingdom on earth,
    Which shall be different from all other kingdoms,
    And shall devour the whole earth,
    Trample it and break it in pieces.

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October 21, 2011 Posted by | GeoPolitics | , , , , , , | Comments Off

   

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