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Turmoil Spreads: Ruble Replunges, Crude Craters, Yen Surges, Emerging Markets Tumbling!

  • Turmoil Spreads: Ruble Replunges, Crude Craters, Yen Surges, Emerging Markets Tumbling! 
    by Tyler Durden, http://www.zerohedge.com
    For those wondering if the CBR’s intervention in the Russian FX market with its shocking emergency rate hike to 17% overnight calmed things, the answer is yes… for about two minutes. The USDRUB indeed tumbled nearly 10% to 59 and then promptly blew right back out, the Ruble crashing in panic selling and seemingly without any CBR market interventions, and at last check was freefalling through 72 74 76, and sending the Russian stock market plummeting by over 15%.
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    It is so bad, US equity futures which had jumped earlier on hopes of more Chinese intervention following the latest disastrous Chinese PMI print, as well as a French manufacturing PMI beat (don’t laugh), are back to unchanged.
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    The latest rout continues to be driven by the relentless plunge in Brent which also continued crashing overnight to fresh 5 year lows, sliding decidedly under $60 as WTI dropped well under $55 as well. And as we previewed over a month ago, it is not just Russia, but every single petroleum exporting country that is suddenly seeing a currency crisis, and spreading to all EMs with the Indian Rupee weakening the most since 2013, Indonesia lowering the Rupiah’s reference rate by the most on record, and so on. Ironically, this happens as the USDJPY is also crashing and dropping moments ago to 116.25, the lowest level since mid-November. At this rate the Fed will have no choice but to intervene, however in the opposite direction, and admit that despite all its best intentions, the US can not decouple from the rest of the world and a rate hike – so very priced in by everyone – is just no going to happen in the coming years (which sadly means that the latest subprime debt driven “recovery” is about to be called off).
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    A quick look at the oil market where Brent drops for 5th day, falls below $60 for 1st time since July 7, 2009 as the market continues to look for signs that falling prices is crimping production. WTI breaks below $55, drops to lowest since May 6, 2009.  “The race to the bottom continues, we are still not seeing any signs of supply disruption,” says Saxo Bank head of commodity strategy Ole Hansen. “There is very big negative momentum in the mkt and the fact people are starting to talk about breakeven levels of $35-$40 has put up a new red flag for mkts to aim at.… Jan. WTI options expire today and there is quite a lot of open interest ~$55 put strikes, that is probably the key level of potential support today.”
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    Not helping things was Russia’s announcement that it too like the Saudis will not cut production: Russia agrees with OPEC that market will determine crude price, Energy Minister Alexander Novak tells reporters at meeting of Gas Exporting Countries Forum in Doha, Qatar. Novak says that he met with OPEC energy ministers in Vienna; “The participants of that meeting concurred that the situation will be fixed by the market itself in terms of supple and demand balance.  Russia is not a country that changes its supply. We will maintain our production unchanged.”
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    read more!

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December 17, 2014 Posted by | Economics | , , , , , , , , , , , , , , , | Leave a comment

Oil Price: Opec ‘Will Let Oil Price Fall Below $40’!

PetroDollar_Scam_Breaking_Down

  • Why is the for profit oil cartel, OPEC, collapsing prices? Why are the Russians going along? Who is playing who? Lower oil prices mean lower demand for US dollars and lower demand for US debt/treasuries. How is the US going to finance its trillion dollar a year debt now that the FedRes has decided to “end QE”? All these moves in crashing oil price is not about economics. It is about geo-politics. It is about the global monetary, economic and financial hegemony! The petrodollar is about to die a violent death! A fatal heart attack is coming to Wall Street!
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  • Oil price: Opec ‘will let oil price fall below $40’! 
    by http://www.theweek.co.uk/ 
    Chancellor George Osborne says that overall falling oil prices are a ‘very good thing’.
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    As the price of Brent crude fell below $60 for the first time since 2009, the most powerful nations in Opec have made clear that they are willing to push prices as low as $40 a barrel in their bid to take on Russia and US shale, a high-profile Gulf oil minister said this week.
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    Suhail al-Mazrouei, energy minister of the United Arab Emirates, said that the organisation will let prices fall by more than $20 per barrel before they consider an emergency meeting to cut production.
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    “We are not going to change our minds because the prices went to $60, or to $40,” he said.
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    Brent crude, the global benchmark, fell by more than a dollar to $59.75 a barrel today, the BBC reports, while the price of US crude dropped to $54.85.

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    Tumbling prices have already had a profound impact around the globe, including in Britain where three times as many UK oil and gas firms have declared insolvency this year compared with 2013.
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    read more!

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December 17, 2014 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , | Leave a comment

A Full-Blown Economic Crisis Has Erupted In Russia! Economic Chaos Will Soon Envelop the Whole World !

Global Super Storm meltdown??

Global Super Storm meltdown??

http://www.infowars.com/plummeting-oil-prices-could-destroy-the-banks-that-are-holding-trillions-in-commodity-derivatives/

Judo master Putin executing a deft move? Using the enemy’s oil attack thrust to floor the enemy! Click on image for article!

Judo master Putin! Never assume your enemy is stupid and doesn't know what he is doing!

Judo master Putin! Never assume your enemy is stupid and doesn’t know what he is doing!

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December 17, 2014 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , , , | 1 Comment

Russia Shocks With Emergency Rate Hike, Boosts Interest Rate From 10.5% To 17%!

Shit_Storm

  • Russia Shocks With Emergency Rate Hike, Boosts Interest Rate From 10.5% To 17%! 
    by Tyler Durden, http://www.zerohedge.com
    Following the biggest rout to the Ruble in ages, Russia – unlike Mario Draghi – instead of talking the talk decided to walk the bazooka walk and shocked all those long the USDRUB by unleashing an emergency rate hike (at 1 am in the morning) from the recently raised interest rate of 10.50% to… hold on to your hats… 17.00%, a 650 bps increase!
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    From the press release: 

    The Board of Directors of the Bank of Russia has decided to increase from December 16, 2014 the key rate to 17.00% per annum. This decision was driven by the need to limit significantly increased in recent devaluation and inflation risks.
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    read more!

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December 16, 2014 Posted by | Economics | , , , , | Leave a comment

Double Barrel: Ruble Plunges to 5-Year Low!

  • Published on Dec 15, 2014
    Even if oil prices nosedive to as low as 40 dollars per barrel OPEC will not cut production to drive them back up. That’s the message from officials of the cartel.
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  • Economic (ie. US & European sanctions) and financial WW will lead to the Satanic WW3! It is the west who is attacking the Russian Ruble much like in 1998!

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December 16, 2014 Posted by | Economics, GeoPolitics | , , , , , , , , , | Leave a comment

Keiser Report: Debt Meteor Approaching Earth!

  • Published on Dec 13, 2014
    In this episode of the Keiser Report, Max Keiser and Stacy Herbert believe that ‘something’s gotta give’ as the real world continues to tumble while equity markets continue rising – and not everyone is ‘lovin’ it.’ They also compare the debt curse to the oil curse. In the second half, Max interviews equity crowdfunding pioneer, Simon Dixon of BankToTheFuture.com, about the latest in CrowdFunding 2.0 as both the political and financial space is disintermediated.
Global economic, financial and currency Armageddon coming!

Global economic, financial and currency Armageddon coming!

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December 15, 2014 Posted by | Economics, GeoPolitics, Social Trends | , , , , , , , , , , , , , | 1 Comment

Russia’s Proposed Interbank System Threatens Anglo-American Empire’s Global Hegemony!

http://en.itar-tass.com/economy/748916

Click on image for article!

  • I am definitely in favour of Russia’s SWIFT system. It breaks the global hegemony of the western Illuminati. The authors of the article below, seem to imply that it is a bad thing: I don’t think so. It is good for the world because it will end the needless wars, the endless wars … caused by the global hegemony of the western Illuminati. Who is using the system to attack Russia in financial WW3, by crashing the Ruble, by threatening to freeze them out of the SWIFT system? The Anglo-American Illuminist empire!
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  • Russia’s Proposed Interbank System Threatens Anglo-American Empire’s Global Hegemony! 
    by Ted Baumann, Offshore and Asset Protection Editor, The Sovereign Investor:
    The international financial system is based on the U.S. dollar. The greenback is both the world’s “reserve currency” — the one everyone wants to hold when things go bad — and the principal means of exchange. The vast majority of transactions between companies, countries and people are denominated in dollars.
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    As my investment-oriented colleagues regularly discuss on this page, the dollar’s dominance isn’t unchallenged. The Chinese yuan, in particular, has pretensions to become a second global currency, one so widely used that transactions unrelated to China could be conducted in yuan.
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    But there’s another challenge on the horizon … a new international interbank system that could create important opportunities — or chaos — for the world economy, depending on how the proverbial ball bounces.
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    Not So SWIFT
    You probably know the SWIFT (Society for Worldwide Interbank Financial Telecommunication) system as that little jumble of letters and numbers you need every time you send money to a foreign bank account. It’s the global banking system’s address book and postal system. SWIFT has more than 10,000 members in more than 200 countries, and handles more than 15 million messages daily.

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    But even though SWIFT is based in Belgium, and subject to EU law, the U.S. government claims legal authority over all SWIFT transactions denominated in U.S. dollars — even if those dollars never enter a U.S. bank account — because they are ultimately “backstopped” by the Federal Reserve.
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    So when European banks used SWIFT to facilitate dollar-dominated transactions between Iran and third parties, the U.S. fined those banks billions of dollars for violating U.S. sanctions against Iran, even though no money passed through the United States. They eventually got Iran kicked off the SWIFT system altogether.
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    The Inevitable Blowback of Russia’s New Interbank System
    Iran isn’t in a position to challenge the United States. But when the U.S.’ most loyal ally in Europe, the United Kingdom, called for Russian banks to be ejected from SWIFT during the height of the Ukraine crisis, the two Anglo countries met their match.

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    A few weeks ago, Russia announced its intention to launch an alternative to SWIFT by May 2015. Russia’s new interbank system would dominate transactions in rubles, with conversion to and from U.S. dollars at either end. For example, an Iranian government agency could use dollars to buy rubles, transmit them via the Russian system, and have them paid to a supplier in Europe who then converted them back to dollars.
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    Short of hacking into the Russian system, the U.S. would have no way of knowing who was paying what to whom or for what reason.
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    read more!
http://rt.com/business/211291-swift-banking-russia-vtb/

Monetary and financial WW3 has already started ! Click on image for article!

http://en.itar-tass.com/economy/759113

Click on image for article!

http://en.ria.ru/business/20140918/193052405/European-Parliament-Calls-For-Excluding-Russia-From-SWIFT-System.html

Click on image for article!

http://www.bloomberg.com/news/2014-08-29/u-k-wants-eu-to-block-russia-from-swift-banking-network.html

Click on image for article!

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December 15, 2014 Posted by | Economics, GeoPolitics | , , , , , , , , , , , | 1 Comment

Rick Rule: The Financial Derivatives Nightmare & Precious Metals Move To Strong Retail Hands!

  • Published on Dec 14, 2014
    Rick Rule, President, and Chief Executive Officer of Sprott US Holdings, Inc., joins us to talk about the Wall Street Derivatives nightmare, and as Rick outlines it, the real world move of PHYSICAL silver and gold from weak institutional hands to strong retail hands. We also discuss the many attributes of palladium and platinum and their place in your portfolio.

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    Sprott Global
    http://sprottglobal.com/our-team/rick…

WarrenBuffet-Financial_Derivatives_r_WMD_n_time_bombs_for_the_economic_system

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December 15, 2014 Posted by | Economics | , , , , , , , , , , , , , | Leave a comment

Venezuela to Exclude US Dollar from Monetary Reserves!

  • Published on Dec 12, 2014
    Venezuela is replacing the US dollar with other foreign currencies including the Chinese money. President Nicolas Maduro has said independence from the dollar is necessary to prevent more damage to the Venezuelan economy. From Caracas, Press TV’s correspondent Jesus Silva brings us the story. This week a new Central Bank Law has come into force to allow Venezuela’s government to accumulate international monetary reserves that will no longer be represented by gold or the US dollars. Authorities say that from now on, other foreign currencies like the Chinese and other merchandise will be kept in the Venezuelan Central Bank. The new law has been severely criticized by the opposition who says the government has irresponsibly depleted the nation’s international reserves and now tries to hide the negative consequences. Likewise economists say the new legislation will cause trouble for other countries. The Venezuelan government has said that Chinese currency would be among the new monetary alternatives for international reserves; however experts believe this would be non-viable in the international market. But socialists are defending the new Central Bank Law as President Nicolas Maduro has said he is determined to liberate Venezuela from what he calls the supremacy of the US dollar which has been harmful for the Venezuelan economy. In recent months, Venezuela’s international reserves as well as oil prices have been going down, so the government is implementing new policies to improve the nation’s economy. While critics of the Venezuelan government say that Maduro is making a huge mistake by adding unusual goods as international reserves, socialists say the move is based on the National Constitution of the country and would reduce the dependence of Venezuela’s reserves on gold or US dollar.

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December 13, 2014 Posted by | Economics | , , , , | Leave a comment

Urgent: 3 New Signs Total Economic Collapse Is In Progress!

  • Published on Dec 12, 2014
    SGT REPORT ECONOMIC NEWS UPDATE: Documenting the Collapse for the week ending Friday, Dec 12, 2104.

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    - The System IS Collapsing, Here’s the Latest Dramatic Proof:
    - U.S Treasury seeks ‘Survival Kits’ for Federal Bank Examiners
    - CME Implements $400 wide gold circuit breakers for vast price swings
    - U.S. Taxpayers Now On The Hook For $303 TRILLION in Wall Street Derivatives
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    For REAL News & Information:
    http://sgtreport.com/
    http://thelibertymill.com/

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December 13, 2014 Posted by | Economics, GeoPolitics, Social Trends | , , , , , , , , , , , , , , , , , , | Leave a comment

The International Monetary System & Systemic Risk: When Will the Manure Hit the Ventilator?

  • Published on Dec 11, 2014
    Today on The Janssen Report (#89): there has been a lot of talk about the collapse of the global economy or monetary system, but when will it actually happen? Although nobody knows for sure, the signs of the accelerating unwinding of the system are there: dedollarization, humongous banking systemic risk (derivatives, debt) and preparations of bail-in scenarios across the G20 nations.

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    Many experts seem to agree that it cannot take more than a couple of years before the system crashes. But it could happen as early as 2015. Whether it will be a total collapse or a Big Reset, it will be not be beneficial for your wealth. Act! Buy some gold and silver. If you have little money to spare, consider buying a few silver 1-ounce coins.
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    Diversification of assets to other nations is a great option if you know where to go, what to do and how to do it. I will deal with that more in the near future.
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    Imagine the epic blow to financial institutions around the globe if their balance sheets start to vaporize. And then imagine what this will do to your personal financial situation.

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December 12, 2014 Posted by | Economics | , , , , , , , , , , , , , , , | Leave a comment

“V” Guerrilla Economist: 2014 Major Events And What to Expect in 2015!

  • Published on Dec 11, 2014
    12-09-2014, V: The Guerrilla Economist joins me to do a recap of 2014 and lays out some predictions as what to expect in 2015.

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    V website: http://www.roguemoney.net
Global financial storm approaching!

Global financial storm approaching!

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December 12, 2014 Posted by | Economics, GeoPolitics, Social Trends | , , , , , , , , , , , , , , , , , , , , , , , | 1 Comment

Ellen Brown: 5 Big Banks will Survive Next Financial Calamity – Everybody Else Bankrupt!

  • Ellen Brown: 5 Big Banks will Survive Next Financial Calamity – Everybody Else Bankrupt! 
    by Hunter’s USAWatchdog.com 
    The G-20 met recently in Australia to make new banking rules for the next financial calamity.  Financial reform advocate Ellen Brown says these new rules will allow banks to take money from depositors and pensioners globally.  Brown explains, “It became rules we agreed to actually implement.  There was no treaty, and Congress didn’t agree to all this.  They use words so that it’s not obvious to tell what they have done, but what they did was say, basically, that we, the governments, are no longer going to be responsible for bailing out the big banks.  These are about 30 international banks.  So, you are going to have to save yourselves, and the way you are going to have to do it is by bailing in the money of your creditors.  The largest class of creditors of any bank is the depositors.”
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    It gets worse, as Brown goes on to say, “Theoretically, we are protected by deposit insurance up to $250,000 in the U.S. and 100,000 euros in Europe.  The FDIC fund has $46 billion, the last time I looked, to cover $4.5 trillion worth of deposits.  There is also $280 trillion worth of derivatives that the five biggest banks in the U.S. are exposed to, and under the bankruptcy reform act of 2005, derivatives go first.  So, they are basically exempt from these new rules.  They just snatch the collateral.  So, if you had a big derivatives bust that brought down JP Morgan or Bank of America, there is no way there is going to be collateral left for the FDIC or for the secured depositors.  This would include state and local governments.  They all put their money in these big banks.  So, even though we are protected by the FDIC, the FDIC is not going to have the money. . . . This makes it legal for these big 30 banks to take our money when they become insolvent.  They are too-big-to-fail.  This was supposed to avoid too-big-to-fail, but what it does is institutionalizes too-big-to-fail.  They are not going to go down.  They are going to take our money instead.”
     
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    read more!

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December 11, 2014 Posted by | Economics, Social Trends | , , , , , , , , , , , , , , , | Leave a comment

“Isolated” Russia Begins Testing De-Dollarization-Driven Payment System!

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December 10, 2014 Posted by | Economics, GeoPolitics | , , , | 1 Comment

NIRP: (N)egative (I)nterest (R)ate (P)olicy!

Hyperinflation-Janet_Yellen_Breakfast

  • (N)egative (I)nterest (R)ate (P)olicy
    by Bill Holter, http://blog.milesfranklin.com/ 
    Negative interest rate policy (NIRP) has arrived to the U.S. for large deposits at commercial banks.  This is something we have already seen in Europe over the last few months and a sign (at least to me) that stress is again building.  As of January 1st, bank capital will be classified differently making some large and very mobile deposits at large banks a potential liability and thus not profitable.  This is being done because of the “mobility” of these deposits, the worry is the potential speed of flight capital if (when) it begins to run.
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    Let me explain what I mean by “stress” and you can decide which one fits the best if not a combination of “all of the above”.  First, the real economies of the Western world are again slowing and in many cases declining again.  Remember, this is happening even though fiscally, deficits are being run everywhere and monetarily, loose policy runs rampant.  As the real economy continues to slow, “more power” is being screamed from the helm to the engine room.  “More,” as in more debt, more liquidity and more of what created the problem in the first place.  This explanation is fairly obvious.
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    Two other and less obvious explanations for NIRP are “velocity” and “making preparations.”  Looking at velocity, it continues downward with no signs whatsoever of reversing.  Money is being printed by the trillions but it’s not making it onto the streets.  The money is piling up at banks who are hoarding the cash and making a “risk free” (really?) return by carrying the deposits at central banks.  This works well for the banks and the central banks themselves …but not so much for the real economy as actual “flowing” money feels tight and scarce.  As far as the real economy is concerned, credit policy is anything but loose.
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    The other aspect is that many large deposits (over the FDIC limits) are very “mobile”.  By this I mean they can move quickly.  So quickly in fact that back in 2008 there were “electronic” and overnight bank runs which no one saw …except the banks.  Banks “borrow low and lend high,” this is how they earn profits.  They traditionally borrowed via deposits and then turned around and lent these deposits out at a higher rate to earn a spread…banking 101 if you will.  But 2008 exposed a flaw in this model, as soon as even the whiff of a rumor of weakness at a bank would arise, this “hot money” would move to safer ground.  Whether this safer ground was another bank or even Treasury securities made no difference, the result was a bank(s) being left unfunded.  Their capital ran away and they were left with too many loans and assets (impaired?) carried by not enough capital.
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    read more!

Super_mario_draghi_going_for_breakfast

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December 10, 2014 Posted by | Economics | , , , , , , , , , , , , | Leave a comment

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