Socio-Economics History Blog

Socio-Economics & History Commentary

Bank Of England Warns “Bigger Systemic Risk” Now Than 2008

  • Bank Of England Warns “Bigger Systemic Risk” Now Than 2008
    by janskoyles, http://www.goldcore.com/uk/
    – Bank of England warn that “bigger systemic risk” now than in 2008
    – BOE, Prudential Regulation Authority (PRA) concerns re financial system
    – Banks accused of “balance sheet trickery” -undermining spirit of post-08 rules
    – EU & UK corporate bond markets may be bigger source of instability than ’08
    – Credit card debt and car loan surge could cause another financial crisis
    – PRA warn banks returning to similar practices to those that sparked 08 crisis
    – ‘Conscious that corporate memories can be shed surprisingly fast’ warns PRA Chair

    Editor Mark O’Byrne
    Stark warnings have been issued by the Bank of England and its regulatory arm, the Prudential Regulation Authority (PRA). In less than one week the two bodies issued papers and speeches to warn industry members that many banks are showing signs of making the same mistakes that led to the 2008 financial crisis – the outcomes of which are predicted to be worse than those seen just nine years ago.


    Increased risks have been noted at different ends of the financial system, from the European corporate bond markets right through to retail lenders.

    The Bank of England’s ‘Stimulating Stress Across the Financial System’ was released last week. It looks at how it will assess risk in future studies on the European corporate bond market. It concludes that the corporate bond market could create more instability during the next financial shock than it did in the crisis of 2008.

    Just two days before this stark warning, the PRA’s chief-executive Sam Woods told lenders that they were on thin ice with their innovations designed to reduce their capital requirements and buoy earnings. Woods said that whilst their innovations “might meet the letter of the regulation” they must not be “designed to circumvent the spirit” of banking rules.

    Bank of England’s Woods accused banks of engaging balance sheet trickery to “circumvent the spirit” of post-financial crisis rules.

    Both warnings over both sets of practices is yet another reminder of the stark difference of interests between taxpayers, regulators and the banking industry. News of institutions circumventing regulations and non-bank corporate lenders creating more risk in the system begs the question if the financial system as we know it will ever be fit for purpose in terms of looking after the needs of borrowers and savers. It also rises concerns about how safe the banks are for depositors and whether banks are ‘safe for savers?’

    read more.

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July 18, 2017 Posted by | Economics | , , , , , | Leave a comment

Jim Willie: Global Reserve Currency at Risk

  • Jim Willie: Global Reserve Currency at Risk
    by Jim Willie, http://www.goldenjackass.com/, via http://www.goldseek.com/
    Within the US borders, the population remains largely ignorant of the true significance of the global currency reserve concept. It is of paramount importance, yet almost never discussed in the financial press. The public within the United States simply assumes the country operates with the USDollar as its currency, with near blindness to its global role in trade and banking. The end of an era is coming, as the change will be powerful in its effect. The shock wave could hit this year in some form, in a manner to highlight its importance.

    MEANING OF CURRENCY RESERVE
    The term is tossed around in common manner, often without an explanation of what it means. A strict meaning is followed by a practical meaning. The USDollar serves as global currency reserve, insofar as the USTreasury Bond is the standard for bank reserve core asset usage. Numerous countries have a core foundation to their national banking system. They maintain core assets and ratios. It is not gold bullion, but rather the USGovt debt. It is the USTBond denominated in USDollars. Of course, such practice is upside down and lunatic. Debt operating as core assets in the global banking system is utterly reckless, insane, and bound to force a systemic breakdown. Such is the heresy and risk from the banker cabal.


    The practical side of global currency reserve system is that trade payments are standardized as being executed in USDollar terms. A crude oil shipment, a grain shipment, a container vessel shipment, they are paid in USD terms, often with short-term USTreasury Bills. Also, international contracts like for consulting services or for installation of IT systems typically are written for payment in USD terms. As a result, the nations set to pay for a shipment or contract maintain huge USTreasury stores in their banking systems, ready to complete the trade payments.

    read more.

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July 17, 2017 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , , , , , , , | Leave a comment

The Next Financial Crisis Will Wipe Out Most Paper Assets: Lynette Zang

July 17, 2017 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , , , , , | Leave a comment

Eurozone is Doomed Even with German and French Battle to Safeguard Its Future

  • Eurozone is Doomed Even with German and French Battle to Safeguard Its Future
    by HELENE PERKINS, http://www.express.co.uk/
    THE eurozone is on the verge of break up despite France and Germany’s battle to keep it intact, according to one of the world’s biggest investment banks.

    A warning has been fired over the future of the single currency bloc by a senior employee at Bank of America Merrill Lynch, which he says been falling apart since if was formed close to two decades ago.

    Emergency bailouts have been dished out to Greece and Portugal but richer countries, including Germany, have failed to redistribute wealth to poorer eurozone countries.

    Athanasios Vamvakidis, who is based in London and has worked for the International Monetary Fund for 13 years before going to work for the US bank, said the situation had led to a split between members and a rise in inequality.

    He said the stance changed during the global financial crisis but added “divergence seems to be the norm since the eurozone was formed.” Mr Vamvakidis said it was a “red flag for the sustainability of the eurozone” and warned poorer countries could quit the bloc due to mounting debt. He said: “Wouldn’t such countries want to have their own monetary policy at some point? “Wouldn’t populism find the common currency to be an easy target – which is already happening in some countries?”

    He added: “Without growth, debt could prove unsustainable in some countries and populism against the eurozone could find support in some cases, leading to exit of a country left behind. “The probability that a country, at the core or the periphery, may decide to leave under a populist leadership at some point in the future is not low, in our view.”

    read more.

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July 15, 2017 Posted by | Economics, GeoPolitics | , , , , , , , , | 1 Comment

Ron Paul On The Coming Dollar Crash, Cashless Society & False Flags

  • Published on Jul 13, 2017
    Josh Sigurdson interviews former congressman and host of The Liberty Report, Dr. Ron Paul. Dr. Paul responds to the Federal Reserve’s Janet Yellen’s delusional claim that we will not see another major crisis in our lifetime. He updates everyone on his views regarding the coming fiat dollar crash as medias across the board put his comments out of context. The fundamentals are off the table due to the level of manipulation so one cannot put an exact date on the fiat crash, we just know it will indeed happen.


    Dr. Paul also goes into his thoughts on the cashless society we’re seeing unroll in front of us on a global scale. From India to Australia, from China to Canada, the implementation of cashless systems is a dire concern for many as many of the top globalist financiers endorse the notion of implementing it into the SDR (Special Drawing Rights) at the IMF. Ron Paul breaks down his thoughts on this out of control centrally planned system and whether he thinks it will be accomplished or not.

    Josh also asks Dr. Paul about the possibility of further false flags to bring the United States into a potential violent conflict with Russia as the media hypes the anti-Russia narrative all day, every day. This shows the true nature of the similarities between both collectivist Democrats and Republicans as they obsess over “Russian collusion” and attempt to create a distabilizing narrative between the U.S. and Russia. No matter who is president, the deep state continues to perpetuate everything we’ve seen in the past. The Trilateral Commission, the CFR, they all continue to map out global policy regardless of the figurehead president.

    Ron Paul gives a voluntaryist bottom line as to how he believes people can encourage more people to understand the message of individual liberty, free markets, sound money and freedom in general. 
http://www.infowars.com/federal-reserve-manufactures-greater-recession/

Click on image for article.

http://english.pravda.ru/news/business/19-05-2015/130638-cash-0/

Click on image for article.

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July 15, 2017 Posted by | Economics, GeoPolitics, Social Trends | , , , , , , , , , , , , , , , , | Leave a comment

Nomi Prins: Easy Money Policy Allows for Another Crisis

  • Nomi Prins: Easy Money Policy Allows for Another Crisis
    by CRAIG WILSON, https://dailyreckoning.com/
    Nomi Prins joined The Foreign Correspondents’ Club of Japan in Tokyo to discuss the banking landscape and state of financial regulations in the Trump era. The central bank historian and financial expert also took a deep dive into the shifting relations between the United States and Japan and what easy money policy has meant for financial markets.


    The author began the discussion noting that, “A lot of things have happened in the past months in particular within finance and trade alliances amongst countries in the Trump era.”

    Speaking on the recent gathering of world leaders Prins’ notes, “One of the things that came out of the G20 is whether it is America last in terms of the alliances occurring today. The American first policy is pushing new diplomacy and agreements with countries that have not spoken with one another in the past. This is happening for two reasons. One, from a standpoint of protecting the commonality of the world. It is filling the gap between receding powers versus rising power. Two, it is an anti-protectionist move.”

    Prins’ then builds on easy money policy stating, “We still have a problem of banks that are too big to fail. We still have a problem where the initial financial crisis that happened ten years ago in the United States, that was the result of the banks being too large and too speculative… in using the guarantees that the U.S government has provided to bank depositors and the provisions provided in the Glass-Steagall. Those deposits have become a guarantee for banks to become bigger and a guarantee for financial crises to become something that the government subsidizes. Our Federal Reserve, our central bank, also subsidizes this.”

    read more.

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July 14, 2017 Posted by | Economics | , , , , , , , , , , | Leave a comment

Making Madoff Blush: How You’ve Been Deceived by The New World Incestuous Banking Scheme!

  • Published on Jul 12, 2017
    For the first time, The Maestro brings together two market analyst titans to the table to discuss Janet Yellen, monetary policy, principles of finance, a declining dollar, the future of pensions, precious metal hedges, and TONS of charts and data!

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July 13, 2017 Posted by | Economics | , , , , , , , , , , , , , , | Leave a comment

Dr. Jim Willie: Global Rejection of U.S. Dollar Is Coming

July 12, 2017 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , , , , , , , | Leave a comment

Something Big Is Lurking That Will Change The Precious Metals Market: Andrew Hoffman

July 12, 2017 Posted by | Economics | , , , , , , , , , , , | Leave a comment

The Economic Reset Has Been Planned & The Bankers Want To Control It

  • Published on Jul 11, 2017
    Get economic collapse news throughout the day visit http://x22report.com
    Wholesale sales tumble for the 3rd straight month in a row while inventories are building up. We have never seen QE until 2008 and we do not know what an unwind will look like or the discontinuation of QE, which could lead to a disaster. Rising interest rates will make the debt completely unsustainable. The central bankers knew the fiat system would only last a certain period of time, they have been planning this from the beginning just like they planned to come off the gold standard in 1971. Their main objective is to keep control of the system once the reset occurs. 
http://www.stopthecrime.net/Henry-Makow---Illuminati----(2008).PDF

Click on image for pdf E-book.

http://www.stopthecrime.net/Henry-Makow---Illuminati----(2008).PDF

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July 12, 2017 Posted by | Economics, GeoPolitics, Social Trends | , , , , , , , , , , | Leave a comment

Ever More Official Lies from the US Government

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  • Ever More Official Lies from the US Government
    by Paul Craig Roberts, http://www.paulcraigroberts.org/
    The false reality constructed for Americans parallels perfectly the false reality constructed by Big Brother in George Orwells’ dystopian novel 1984.

    Consider the constant morphing of “the Muslim threat” from al-Qaeda to the Taliban, to al-Nusra, to ISIS to ISIL, to Daesh with a jump to Russia. All of a sudden 16 years of Middle East wars against “terrorists” and “dictators” have become a matter of standing up to Russia, the country most threatened by Muslim terrorism, and the country most capable of wiping the United States and its vassal empire off of the face of the earth.

    Domestically, Americans are assured that, thanks to the Federal Reserve’s policy of quantitative easing, that is, flooding the financial markets with newly printed money that has driven up the prices of stocks and bonds, America has enjoyed an economic recovery since June of 2009, which must be one of the longest recoveries in history despite the absence of growth in median real family incomes, despite the growth in real retail sales, despite the falling labor force participation rate, despite the lack of high value-added, high productivity, high wage jobs.

    The “recovery” is more than a mystery. It is a miracle. It exists only on fake news paper.

    According to CNN, an unreliable source for sure, Jennifer Tescher, president and CEO of the Center for Financial Services Innovation, reports that about half of Americans report that their living expenses are equal to or exceed their incomes. Among those aged 18 to 25 burdened by student loans, 54% say their debts are equal to or exceed their incomes. This means that half of the US population has ZERO discretionary income. So what is driving the recovery?

    Nothing. For half or more of the US population there is no discretionary income there with which to drive the economy. The older part of the population has no discretionary income either. For a decade there has been essentially zero interest on the savings of the elderly, and if you believe John Williams of shadowstats.com, which I do, the real interest rates have been zero and even negative as inflation is measured in a way designed to prevent Social Security cost of living adjustments.

    In other words, the American economy has been living on the shrinkage of the savings and living standards of its population.

    Last Friday’s employment report is just another lie from the government. The report says that the unemployment rate is 4.4% and that June employment increased by 222,000 jobs. A rosy picture. But as I have just demonstrated, there are no fundamentals to support it. It is just another US government lie like Saddam Hussein’s weapons of mass destruction, Assad’s use of chemical weapons against his own people, Russian invasion of Ukraine, and so forth and so on.

    The rosy unemployment picture is totally contrived. The unemployment rate is 4.4% because discouraged workers who have not searched for a job in the past four weeks are not counted as unemployed.

    The BLS has a second measure of unemployment, known as U6, which is seldom reported by the presstitute financial media. According to this official measure the US unemployment rate is about double the reported rate.

    read more.

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July 12, 2017 Posted by | Economics, GeoPolitics | , , , , , , , | Leave a comment

The World Is Changing,The US Will Collapse As A Civilization Unless We Change: Harley Schlanger

July 10, 2017 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , | Leave a comment

The End Of The Cycle: “The Government Will Gladly Enter A War To Cleanse The Balance Sheet And Cull The Herd”

WW3 is near?

  • The End Of The Cycle: “The Government Will Gladly Enter A War To Cleanse The Balance Sheet And Cull The Herd”
    by Jeremiah Johnson, July 7th, 2017, SHTFplan.com
    In the days following the 241st anniversary of the signing of the Declaration of Independence, the country is in an even more precarious position than it was in 1776.  We face a situation of a fiat currency about to collapse as the consumer-based economy follows.  Whether orchestrated by our imperialistic government or following actions of a hostile foreign nation (prompted or unprompted) the government will gladly enter a war to “cleanse” the balance sheet and cull the herd.  Concurrently, the country is deeply divided domestically along lines of racial unrest.

    The country also faces a threat to its existence in the face of Muslim extremists who are fostered by the traitorous socialist-Marxists in our government who enabled their entry under Obama as protected “refugees.”  U.S. policy in every arena is a chariot drawn by horses with no driver, jerking toward the “Blues” of the socialist Democrats or the “Reds” of the socialist, pseudo-Republicans in the domestic quagmire, the Circus Maximus partially in ruin after years of Barack Hussein Obama II’s reign.

    The superficial and superfluous, in the meantime, becomes the public focus and hence the distraction: “Simulacra and simulation,” so to speak.  The majority have gone forward in their consumer-driven Habitrail according to the sacred Hallmark Calendar…the one that has a “THX-1138 Consumer Day” at least one day every month.  The one with a fixed venue: everyone left the house to shop, to eat, to plan on the big barbecue in the afternoon.  Finally, in the evening, everyone then piled into the cars to watch the fireworks.  Then they all went home, to mount the treadmill again in the morning.

    The government believes it is entitled to what those who pay taxes earn.  And those who support the system?  We believe that we are entitled to reset everything based on the merits of hard work and conservative values: an automatic, bloodless reset.  All these “entitlement” mindsets, forgetting that everything is cyclical.  We are at the end of the cycle for the United States.  We peaked long ago, and now we are deep in the decline-phase.  The Founding Fathers summed up in words what we are truly entitled to…a loss of our freedoms following the moral and societal degradation that we have allowed as a nation.  Some fostered it (the Marxists) and we the conservatives allowed them to do it.

    read more.

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July 10, 2017 Posted by | Economics, GeoPolitics, Social Trends | , , , , , , , , , , , , | Leave a comment

The Federal Reserve and Mainstream Media’s Moronic Statements On The Whole Foods Buyout

July 7, 2017 Posted by | Economics | , , , , , , , , , , , | Leave a comment

Italy Openly Discusses Euro Exit in Parliament: Debt Restructuring or “Italeave” on the Way?

  • Italy Openly Discusses Euro Exit in Parliament: Debt Restructuring or “Italeave” on the Way?
    by , https://mishtalk.com/
    In Europe, where it is essentially taboo to publicly discuss anything deemed politically incorrect, some interesting conversations are taking place in the Italian parliament regarding the future of Italy in the eurozone. Via email, Eurointelligence asks Is Italy heading for debt restructuring or euro exit?

    We are reporting from an important conference in Rome yesterday that has caught the Italian news headlines this morning – on the future of Italian public debt. It was organized by the Five Star Movement, held in the Italian chamber of deputies, and openly discussed issues such default mechanism inside the eurozone, sovereign debt restructuring mechanisms, parallel payment systems, and of course euro exit.

    What is important about this debate is that it is now taking place in public – you can’t be more public than inside the parliament. Italians, not only the Five Star Movement, are openly talking about these issues.

    One of us was on the podium, where we reiterated our criticism of the Five Star Movement’s previous-held cavalier notion of a euro referendum. The essential point we were trying to make in the debate, well reflected in this morning’s coverage by the main newspapers, is that euro exit is not a decision to be taken lightly. The announcement of a referendum would produce a financial crisis and might turn into a self-fulfilling prophecy. Euro exit belongs to the category of things that, citing Shakespeare’s Macbeth, “if it were done when ‘tis done, then ‘twere well It were done quickly“.
    ….
    Path Towards Italeave
    I have noted before that all of Italy’s major political parties with the exception of Matteo Renzi’s Democratic Party have flirted with or actively support leaving the Euro. The path to Italeave is a difficult one, requiring a referendum and a constitutional change, but trouble is brewing on a huge number of fronts simultaneously:


    1. The Italian banking system is insolvent
    2. Another refugee crisis is brewing (this time via boats from Libya)
    3. Italy’s youth unemployment is a whopping 37%
    4. The ECB is the buyer of only resort for Italian bonds
    5. Italy’s debt to GDP ratio is over 130% to the consternation of Eurozone officials
    6. The global recovery is extremely long in the tooth
    7. Italy made no progress during the recovery
    8. The topic of Italeave is no longer taboo

    Any number of things could start a chain reaction making Italeave look good to a majority of Italian voters.

    read more.

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July 5, 2017 Posted by | Economics, GeoPolitics | , , , , , , , | Leave a comment