Socio-Economics History Blog

Socio-Economics & History Commentary

Greg Hunter: North Korea War, Syria and the Global Banking Crisis Will Spread !

  • Published on Apr  4, 2013
    North Korea has rattled its saber in the past, but not this loudly.  Any talk that this is another bluff to get the world to back off on the sanctions for its nuclear program is underestimating the seriousness of the situation.  The Middle East is on fire, and the center of the blaze is Syria.  There were more reports that the conflict is spreading to neighboring countries.  Don’t think this banking crisis is over—it’s not.  The situation in Cyprus is far from over, and people like James Turk are warning a big bond default from a country like Argentina could send the financial system into shock.   Greg Hunter of analyzes these stories and more in the Weekly News Wrap-Up.


April 6, 2013 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , , , , , | Comments Off on Greg Hunter: North Korea War, Syria and the Global Banking Crisis Will Spread !

Gregory Mannarino: This Economic Grand Illusion Is Coming Apart !

April 6, 2013 Posted by | Economics | , , , , , , , , , , , , , , , , , , , | Comments Off on Gregory Mannarino: This Economic Grand Illusion Is Coming Apart !

Skyscraper Defies 9/11 Physics! Skyscraper Engulfed By Fire, Does Not Collapse!

  • Skyscraper Engulfed By Fire, Does Not Collapse!
    by Paul Joseph Watson,
    The new understanding of physics since September 11, 2001, that limited fire damage can cause buildings to implode at almost free fall speed into their own footprints, was confounded once again as a 40-storey skyscraper in Chechnya was engulfed with flames for hours yet did not collapse.

    The blaze consumed an apartment building in Grozny, the Chechen capital yesterday evening before it was eventually put out in the early hours of Thursday morning. Fires burned on every single floor of the structure apart from the ground floor.

    “According to the emergencies service, the blaze has damaged an area of more than 14,000 square meters. It has completely destroyed the plastic trimming used on the building’s exterior, but the interior remained untouched,” reports RIA Novosti.

    The building is the tallest structure in the region outside of Moscow, standing at 145-meters (475-foot). No one was injured or killed in the blaze but dozens had to be evacuated.

    Although officials expressed concern at one point that the building could collapse, its core structure was not affected by the huge fire.

    Compare the skyscraper in Grozny to the similar-sized WTC Building 7 on 9/11, which was not hit by a plane, suffered comparably limited fire damage, and yet collapsed almost into its own footprint at near free fall speed.

    Following 9/11, scientists agreed that instead of accepting the premise that some form of explosives must have been used to bring down WTC 7, physics itself must be wrong and that normal fires can burn hot enough to weaken steel cores, despite the fact that they were barely hot enough to break the vast majority of windows in Building 7.

    The National Institute of Standards and Technology (NIST) was forced to invent a “new phenomenon” of “thermal expansion” to explain the collapse of WTC 7, labeling it “the first known instance of fire causing the total collapse of a tall building” in history.

    The collapse of Building 7 was so highly anticipated that it was reported before it happened by several news stations, including BBC and CNN. Firefighters, police and first responders were all told to get back from the building because it was about to be brought down.

    The Grozny skyscraper is just the latest example of a building refuse to conform to our new post-9/11 understanding of physics, following the example of a similar sized building in Beijing which was also consumed by fire in 2009 but remained standing.


April 6, 2013 Posted by | History | , , , , , , , , , , | 1 Comment

The Truthseeker: The Final Looting Of America (E12)!



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Vona: Israel Operates the World’s Largest Concentration Camp! What Israel Does in Palestine is an Organised Genocide!

Click on image for article!

  • Vona: Israel Operates the World’s Largest Concentration Camp! 
    Jobbik organised a demonstration in front of the Israeli Embassy against the brutal Israeli offensive campaign in the Gaza Strip. One of the speakers is Gábor Vona, Jobbik’s president.

    In spite of the cold weather, demonstrators are already gathering. Our correspondent is at the scene and he says that there is highly intensive police readiness in Fullánk Street. The neighbouring streets are also full of policemen, there are approximately 2-300 of them. Police cars equipped with sound cannons and riot police units are waiting, one side of the street is blocked by a double cordon. By the way, the cordoned side of the street is also blocked by bars, so it is quite strange.

    The participants of the demonstration include the Youth Organisation of Jobbik, the New Hungarian Guard, the Hungarian National Guard, and the Society of Palestinians in Hungary as well. Hundreds of people gathered on the spot.

    Its embassy tells a lot about a country – said the first speaker of the event, Márton Gyöngyösi, the Jobbik-delegated vice chairman of the Parliament’s Committee on Foreign Affairs.

    It is easy to recognise the embassies of certain countries nowadays. The US Embassy is also cordoned off, since the USA and Israel are forced into an alliance. What Israel does in Palestine is an organised genocide. While the USA poses as the champion of human rights, they fully support the bloodbath conducted by Israel.

    The MP called the Hungarian Ministry of Foreign Affairs cowards for giving unconditional support to the EU. The USA provides 3 bn dollars a year for Israeli military purposes. The Palestinians have been persecuted ever since Israel exists.

    Loránt Hegedűs, the nation’s preacher is the next speaker.
    He called upon the Reformed Church to condemn the Israeli aggression. The Unified Israelite Congregation of Hungary (EMIH), the Alliance of Hungarian Jewish Congregations and the Faith Church supports Israel in this war, even though we have seen what they are prepared to do. The preacher will file a lawsuit against these organisations, because they cannot be considered a church if they support the murder of children. He stated that the Jewish people should disown their leaders. ‘Anybody who allows such tragedies to happen is responsible.’ They will hold a divine service for the Palestinian victims in the Church of Homecoming at 10 a.m on Sunday.

    Jobbik’s president said that while Israel keeps talking about the Holocaust, the country operates the world’s largest concentration camp with American assistance. This concentration camp is called Gaza.

    read more!

Click on image to goto video interview of director Dror Moreh!

“Shalom (Ex ShinBet chief) shocked viewers. He called Israeli occupation no different from Nazi occupied Europe.” – Quote

Revelation 2:9 – …. and I know the blasphemy of those who say they are Jews and are not, but are a synagogue of Satan.

“ … it turns out the creation of Israel had not, after all, been a haphazard fight in which the Arabs fled their homes at the directives of their own leaders, but it had been an unprovoked, systematic campaign of ethnic cleansing by the Jewish militia involving massacres, terrorism and the wholesale looting of an entire nation.” from 4:22 onwards


April 6, 2013 Posted by | GeoPolitics, Social Trends | , , , , , , , , , , | Comments Off on Vona: Israel Operates the World’s Largest Concentration Camp! What Israel Does in Palestine is an Organised Genocide!

US Secretly Deploys B-1 Strategic Bombers, E-6 “Doomsday” Planes Near North Korea!


  • US Secretly Deploys B-1 Strategic Bombers, E-6 “Doomsday” Planes Near North Korea! 
    by Tyler Durden, 
    First the US fanfared the placement of two F-22 Raptors in the Osan airbase of South Korea. Then it demonstratively launched a B-2 stealth bomber on a training mission over a South Korean gunnery range. Then it deployed an anti-ballistic missile defense system to Guam and positioned two guided-missile destroyers in the waters near Korea. And now, courtesy of the Aviationist, we learn that the Pentagon has escalated once more in an ongoing cat and mouse game with North Korea, of who blinks first, and dispatched several B-1 (“Bone”) Lancer strategic long-range bombers to Andersen Air Force Base in Guam. What is different this time, however, is that unlike the previous very public and widely trumpeted reciprocal escalation steps, this particular deployment has been kept secret from the public (at least the broader public), “a fact that could be the sign that the U.S. is not only making symbolic moves (as the above mentioned ones), but it is preparing for the worst scenario: an attack on North Korea.”

    read more!


April 6, 2013 Posted by | GeoPolitics | , , | 1 Comment

Fabricated War Pretext, Rising Tensions: Seoul Confirms that N. Korea Missiles Do Not Target the US Mainland !


  • Fabricated War Pretext, Rising Tensions: Seoul Confirms that N. Korea Missiles do not Target the US! 
    by Russia Today, 
    South Korea’s defense minister announced that North Korean ballistic missiles are not targeting mainland US territory as the American showcase of power in the South provokes Pyongyang to resort to a last-ditch nuclear argument.

    The South’s Defense Minister Kim Kwan-jin refuted media reports that Pyongyang has moved its intermediate-range missiles to its east coast to strike the US mainland, Yonhap news agency reported Thursday.

    The minister believes that the KN-08 missiles with claimed range of 10,000km might be getting ready for a military drill, but are not targeting the US.

    Once the news about Pyongyang moving its missiles became public, the US announced strengthening of missile defenses of its military bases in the region, including its stronghold on the Island of Guam in the Pacific Ocean. Also, the US deployed F-22 stealth fighter jets to its air force base in South Korea.

    The exchange of threats between two antagonists on the Korean Peninsula continues, yet the essence of intimidation differs strikingly. Pyongyang makes one formidable gesture after another, threatening a full diplomatic rupture with the South, a ‘final’ war with Seoul and even a nuclear strike on US military bases in the region.

    But North Korea’s capabilities and reserves are limited and the US know them all too well, keeping a satellite eye on any suspicious activities daily. North Korean Navy female soldiers march at the Kim Il Sung square in Pyongyang for the military parade (AFP Photo/KCNA via Korean News Service)

    Seoul-based correspondent Joseph Kim says the US pursues its own interests when getting more involved in the conflict. It“continuously monitors and gains more influence in the region.”

    “They are technically trying to get back to East Asia to be able to counter China and its growing power in terms of the economy. And why not use North Korea?” Kim told RT.

    Officially, Pyongyang has only China as its principle ally. Chinese Deputy Foreign Minister Zhang Yesui has expressed“serious concern” with the crisis between the two Koreas.

    “In the present situation, China believes all sides must remain calm and exercise restraint and not take actions which are mutually provocative and must certainly not take actions which will worsen the situation,” Chinese Foreign Ministry spokesman Hong Lei told reporters in Beijing.

    This statement confirms that today is not 1950 and Chinese troops are not likely to interfere in case a conflict on the Korean Peninsula becomes truly hot. Which could mean that North Korea and its leader Kim Jong-un have only themselves to rely on.

    Conversely, Seoul has the US as mighty ally which keeps thousands of its troops and modern weapons in South Korea. And America does not hesitate to beef up its military presence in the region.

    Investigative journalist Tim Shorrock believes North Korea’s actions are being misconstrued and the American response to them is unbalanced and achieves the opposite result.

    “North Korea does not want to commit suicide. I believe [it] is doing all this so it can get to a point where it can negotiate some kind of peace agreement with the United States,” he said.

    “They look up and they see these B-2 bombers and that’s an absolute reminder of danger of war with the United States, but it also gives the monolithic authoritarian state the [opportunity] to show to the North Korean people that indeed there is a threat. So, by escalating it to this point, the United States is playing right into Kim Jong-un’s hands.”

    B-2 bombers and F-22 stealth fighter jets, American battleships near North Korean shores and joint war games near North Korean borders. The US has enough military power to enhance its military presence on the Korean Peninsula to practically any limit imaginable – which it actually is doing.

    Russian Foreign Minister Sergey Lavrov warned on March 29 that the confrontation between two Koreas might “get out of control and spiral down into a vicious circle.”

    With the given conditions, it may be that Pyongyang is intentionally being cornered to get it to show its teeth – and it really is showing them, as if following a plan designed by somebody else.

    Eric Sirotkin, co-founder of the campaign to end the Korean War who personally visited North Korea told RT that, “The problem is when you put tens of thousands of the US and South Korean troops off the shores of North Korea, surrounding it in the water, running military exercises, shooting live ammunition, engaging in this kind of conflict – you have the North upset and talking nuclear weapons. You have a volatile situation and anything could go wrong.”

    Pyongyang has expressed a desire to “start communication”with Washington, Joseph Kim told RT, but “Washington’s presence in South Korea is growing larger.”Anti-war activist Eugene Puryear from the ANSWER coalition believes that a peaceful solution to the crisis is possible but blames the United States for hampering it.

    “What people need to understand is that the North Korean government – the DPRK – has consistently put forward four basic principles to the United States in negotiations. One is to sign a peace treaty to end the Korean War – most people don’t realize this, at least in the United States, after the war ended in 1953 the United States has refused to sign any sort of peace treaty, they’ve only signed an armistice,” he explained to RT.

    “North Korea has consistently asked for a peace treaty, with the de-militarization of the peninsula, and bilateral talks with the United States to reduce tensions. So I think if the United States would put down their weapons, sign a peace treaty, and let North Korea know that they were not aiming to overthrow their regime, as they have consistently hinted towards, then they would be able to back out of this crisis in a very peaceful way.”

    As for the means the US chooses to achieve its ends, there are questions remaining as to the efficacy.

    Gregory Elich, a member of think tank for the advisory board at the Korea Policy Institute, told RT the United States is interested in the collapse of the North, as the US “can establish their military bases right on the border with China, meaning an encirclement of that nation.” He added that America never“never tolerated a country that won’t put its economy at the service of foreign corporations.”


April 6, 2013 Posted by | GeoPolitics, History | , , , | Comments Off on Fabricated War Pretext, Rising Tensions: Seoul Confirms that N. Korea Missiles Do Not Target the US Mainland !

The Dangers of War: What is Behind the US-North Korea Conflict?


  • The Dangers of War: What is Behind the US-North Korea Conflict? 
    by Jack A. Smith, 
    What’s happening between the U.S. and North Korea to produce such headlines this week as “Korean Tensions Escalate,” and  “North Korea Threatens U.S.”?

    The New York Times reported March 30:
    “This week, North Korea’s young leader, Kim Jung-un, ordered his underlings to prepare for a missile attack on the United States. He appeared at a command center in front of a wall map with the bold, unlikely title, ‘Plans to Attack the Mainland U.S.’ Earlier in the month, his generals boasted of developing a ‘Korean-style’ nuclear warhead that could be fitted atop a long-range missile.”

    The U.S. is well aware North Korea’s statements are not backed up by sufficient military power to implement its rhetorical threats, but appears to be escalating tensions all the same. What’s up? I’ll have to go back a bit to explain the situation.

    Since the end of the Korean War 60 years ago, the government of the Democratic People’s Republic of Korea (DPRK or North Korea) has repeatedly put forward virtually the same four proposals to the United States. They are:

    1. A peace treaty to end the Korean War.
    2. The reunification of Korea, which has been “temporarily” divided into North and South since 1945.
    3. An end to the U.S. occupation of South Korea and a discontinuation of annual month-long U.S-South Korean war games.
    4. Bilateral talks between Washington and Pyongyang to end tensions on the Korean peninsula.

    The U.S. and its South Korean protectorate have rejected each proposal over the years. As a consequence, the peninsula has remained extremely unstable since the 1950s. It has now reached the point where Washington has used this year’s war games, which began in early March, as a vehicle for staging a mock nuclear attack on North Korea by flying two nuclear-capable B-2 Stealth bombers over the region March 28. Three days later, the White House ordered F-22 Raptor stealth fighter jets to South Korea, a further escalation of tensions.

    Here is what is behind the four proposals.

    1. The U.S. refuses to sign a peace treaty to end the Korean War. It has only agreed to an armistice. An armistice is a temporary cessation of fighting by mutual consent. The armistice signed July 27, 1953, was supposed to transform into a peace treaty when “a final peaceful settlement is achieved.” The lack of a treaty means war could resume at any moment.  North Korea does not want a war with the U.S., history’s most powerful military state. It wants a peace treaty.

    2. Two Koreas exist as the product of an agreement between the USSR (which borderd Korea and helped to liberate the northern part of country from Japan in World War II) and the U.S., which occupied the southern half.  Although socialism prevailed in the north and capitalism in the south, it was not to be a permanent split. The two big powers were to withdraw after a couple of years, allowing the country to reunify. Russia did so; the U.S. didn’t. Then came the devastating three-year war in 1950. Since then, North Korea has made several different proposals to end the separation that has lasted since 1945. The most recent proposal, I believe, is “one country two systems.” This means that while both halves unify, the south remains capitalist and the north remains socialist. It will be difficult but not impossible. Washington does not want this. It seeks the whole peninsula, bringing its military apparatus directly to the border with China, and Russia as well.

    3. Washington has kept between 25,000 and over 40,000 troops in South Korea since the end of the war. They remain — along with America’s fleets, nuclear bomber bases and troop installations in close proximity to the peninsula — a reminder of two things. One is that “We can crush the north.” The other is “We own South Korea.” Pyongyang sees it that way — all the more so since President Obama decided to “pivot” to Asia. While the pivot contains an economic and trade aspect, its primary purpose is to increase America’s already substantial military power in the region in order to intensify the threat to China and North Korea.

    4. The Korean War was basically a conflict between the DPRK and the U.S. That is, while a number of UN countries fought in the war, the U.S. was in charge, dominated the fighting against North Korea and was responsible for the deaths of millions of Koreans north of the 38th parallel dividing line. It is entirely logical that Pyongyang seeks talks directly with Washington to resolve differences and reach a peaceful settlement leading toward a treaty. The U.S. has consistently refused.

    These four points are not new. They were put forward in the 1950s. I visited the Democratic People’s Republic of Korea as a journalist for the (U.S.) Guardian newspaper three times during the 1970s for a total of eight weeks. Time after time, in discussions with officials, I was asked about a peace treaty, reunification, withdrawal of U.S. troops from the south, and face-to-face talks. The situation is the same today. The U.S. won’t budge.

    Why not? Washington wants to get rid of the communist regime before allowing peace to prevail on the peninsula. No “one state, two systems” for Uncle Sam, by jingo! He wants one state that pledges allegiance to — guess who?

    In the interim, the existence of a “bellicose” North Korea justifies Washington’s surrounding the north with a veritable ring of firepower in the northwest Pacific close enough to almost, but not quite, singe China. A “dangerous” DPRK is also useful in keeping Japan well within the U.S. orbit. It also is another excuse for once-pacifist Japan to boost its already formidable arsenal.

    read more!


April 6, 2013 Posted by | GeoPolitics, History | , , , , , , , , , | Comments Off on The Dangers of War: What is Behind the US-North Korea Conflict?

Obama Administration: “We’ll Kill the Dollar!”

  • Published on Apr  3, 2013
    From Doug Hagmann of Canada Free Press comes a chilling account of what’s in store for us if we continue to ignore the bare-faced warnings of the central power base..


    Some might be surprised to learn that the fate of America’s economy has already been determined, verified and announced by the Obama White House. Yet, it has received scant attention from the corporate media. In 2011, economist Kyle Bass interviewed a senior member of the Obama administration about its planned solutions for fixing the US economy and trade deficit[ia].

    Among the questions he asked was about U.S. exports and wages, but the question itself was not nearly as important as the response he received from this senior administration official. In fact, this single, seven word response clarifies everything, explains everything, and leaves little else to discuss: “We’re just going to kill the dollar.”

Click on image for article!


April 6, 2013 Posted by | Economics | , , , , , , , , , , , , , | Comments Off on Obama Administration: “We’ll Kill the Dollar!”

Intelligence Insider: Obama Administration Agenda to “Kill U.S Dollar”!

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April 6, 2013 Posted by | Economics | , , , , , , , , , , , , , , , | 1 Comment

People Not In Labor Force Soar By 663,000 To 90 Million, Labor Force Participation Rate At 1979 Levels!


  • People Not In Labor Force Soar By 663,000 To 90 Million, Labor Force Participation Rate At 1979 Levels! 
    by Tyler Durden,
    Things just keep getting worse for the American worker, and by implication US economy, where as we have shown many times before, it pays just as well to sit back and collect disability and various welfare and entitlement checks, than to work .The best manifestation of this: the number of people not in the labor force which in March soared by a massive 663,000 to a record 90 million Americans who are no longer even looking for work. This was the biggest monthly increase in people dropping out of the labor force since January 2012, when the BLS did its census recast of the labor numbers. And even worse, the labor force participation rate plunged from an already abysmal 63.5% to 63.3% – the lowest since 1979! But at least it helped with the now painfully grotesque propaganda that the US unemployment rate is “improving.”

    People not in labor force:



April 6, 2013 Posted by | Economics | , , , | 1 Comment

Payrolls Plunge To 88K, Biggest Miss Since December 2009, Participation Rate At New 30 Year Low!


  • Payrolls Plunge To 88K, Biggest Miss Since December 2009, Participation Rate At New 30 Year Low! 
    by Tyler Durden,
    So much for “open-ended QE driven recovery“. Moments ago the March Non-farm payroll hit and it was a doozy, printing at 88K, below the lowest forecast of 100K, well below the expected number of 190K, and a tragedy compared to the February revised print of 268K (was 236K). This was the biggest miss to expectations since December 2009 and the worst print since June 2012. The unemployment rate declined to 7.6%, but this was due entirely to the collapse in the labor force participation rate, which declined by 20 bps to 63.3%, a new 30 year low.

    read more!


April 6, 2013 Posted by | Economics | , , | Comments Off on Payrolls Plunge To 88K, Biggest Miss Since December 2009, Participation Rate At New 30 Year Low!

James Turk: Spark That Will Send The World Into A Hyperinflationary Spiral !

We will all be trillionaires but can't afford breakfast !

We will all be trillionaires but can’t afford breakfast !

  • Spark That Will Send The World Into A Hyperinflationary Spiral! 
    Today James Turk warned King World News about the spark that will send the world into a hyperinflationary spiral, as well as the next banking crisis.  Below is what Turk had to say in this extraordinary interview:

    Eric King:  “I have to ask you about all of the stimulation coming out of Japan?”
    Turk:  “We have this horse race as to which currency is going to be destroyed first:  Is it the dollar, euro, pound, or the yen?  And right now the yen is leading that horse race.  What they (the Japanese) are planning to do is buy more government debt, which is going to be financing more government deficits.

    Turning government debt into a currency is ultimately what leads to hyperinflation….

    “So they are not only going to get out of their deflation, but they are also going to go into hyperinflation.  This could be the spark that sends the hyperinflationary spiral into other countries as well because people are focusing attention on what the central bank is doing in Japan, and when they start to do that they will see that the central banks in their own countries are doing the same thing.

    read more!


April 6, 2013 Posted by | Economics | , , , , , , , , , , , , , , | Comments Off on James Turk: Spark That Will Send The World Into A Hyperinflationary Spiral !

Gerald Celente: Powerful & Destructive Big Bank Holiday Coming!

Financial Armageddon dead ahead !

Financial Armageddon dead ahead !

  • Celente – Powerful & Destructive Big Bank Holiday Coming! 
    Today top trends forecaster Gerald Celente warned King World News that people around the world need to brace themselves for a powerful and destructive “big bank holiday,” which he now predicts will happen this year.  Celente, who had correctly forecast back in 2012 that a bank holiday would occur in Europe, is the founder of Trends Research and the man many consider to be the top trends forecaster in the world. 

    Eric King:  “Gerald, earlier you mentioned a ‘big bank holiday,’ what do you mean by big bank holiday?”

    Celente:  “Look at what’s going on in Italy, they don’t have a government yet.  It’s been going on for two months (in Italy).  Look at their debt/GDP ratio.  It’s approaching 130%.  How are they going to pay off this debt?

    Look at what’s going on in Spain, Portugal, Greece.  Those are the bigger bank holidays (that are still to come).  They called a bank holiday in the United States in 1933.  That’s not ancient history.  And what did they do?  They devalued the dollar.”

    Eric King:  “Is that what you see eventually happening here?”
    Celente:  “I can definitely see it happening….

    read more!


April 6, 2013 Posted by | Economics, Social Trends | , , , , , , , , , , , , , , , , | 1 Comment

CEO Of Italy’s Largest Bank Says Haircuts Of Uninsured Depositors “Acceptable”, Should Become A Template!


  • IMO, the Illuminists are intentionally fomenting distrust of the banking system. Ie. they are pulling the plug on the entire financial system! Their plan calls for a global economic, financial and currency collapse followed closely by WW3! The suggestion that finance ministers and bank CEOs do not understand the consequences of what they are saying ie. bank runs, is nonsensical. They want to initiate the destruction of fiat currencies via hyperinflation to lay the foundation for their coming One World Currency backed by gold and Global Supra-National Central Bank. When money is withdrawn from the banking system, it will flee into hard assets in particular gold/silver. It will cause a rise in inflation and then go out of control into hyperinflation!

    CEO Of Italy’s Largest Bank Says Haircuts Of Uninsured Depositors “Acceptable”, Should Become A Template! 
    by Tyler Durden,
    While the head of the ECB and his assorted kitchen sinks scramble to explain how Diesel-BOOM was horribly misunderstood when saying that depositor impairment may and will be the template for future European bank “resolution” (as should have been the case from Day 1), the CEO of Italy’s largest bank appears to have missed the memo. As Bloomberg reports, according to the chief executive Federico Ghizzoni, “uninsured deposits could be used in future bank failures provided global rulemakers agree on a common approach.” Or failing that, because if Cyprus taught us anything is that Europe will never have a common approach on anything, just use deposits as impairable liabilities, period, once the day of reckoning for Non-Performing Loans comes and these are forced to be remarked to reality, just as happened in Cyprus. One can only hope that uninsured deposits do not represent a substantial portion of the bank’s balance sheet because the CEO basically just told them they are next if when risk comes back to the Eurozone with a vengeance. Especially since as Mario Draghi was so helpful in pointing out, “there is no Plan B.

    To wit:
    Cutting large deposits in failing banks, along with other liabilities such as bonds, to offset losses is acceptable as long as small savers’ funds remain protected, Ghizzoni told reporters in Vienna late yesterday. The European Union has to introduce identical rules in all of its member states and ideally those rules would be coordinated globally, he said.

    In fact, to the Italian, deposit impairment is perfectly ok as long as “everyone does it” – in other words, if it does become the template the Dutch finance minister already said it is, then all is well.

    read more!


April 6, 2013 Posted by | Economics | , , , , , , , , , , , , , , | Comments Off on CEO Of Italy’s Largest Bank Says Haircuts Of Uninsured Depositors “Acceptable”, Should Become A Template!