Socio-Economics History Blog

Socio-Economics & History Commentary

Greece Says It Cannot Repay an IMF Loan Due Early Next Month

  • Published on May 20, 2015
    The European Commissioner for Economic and Financial Affairs has urged Athens to speed up its reforms program, warning that Europe is running out of time. Pierre Moscovici has stressed Greece should stay within the euro bloc, adding that there is no other alternative. He, however, added that the reforms program should allow Greece to be more competitive and allow for more social justice within the country. Athens and eurobloc remain at odds over further cuts in public spending and civil servants pensions. Greece needs a deal with international creditors to unblock the remaining batch of loans worth 7-point-2 billion euros. Athens has warned that it will face a default without a bailout deal before June 5. It has also said that it will give priority to the payment of salaries, pensions and the country’s general running costs rather than the International Monetary Fund’s repayment on June 5.

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May 21, 2015 Posted by | Economics, Social Trends, GeoPolitics | , , , , , , , , , | Leave a comment

The Planet as a Whole: A Race Between the BRICS and the World War Party

WW3 is near?

WW3 is near?

  • The Planet as a Whole: A Race between the BRICS and the World War Party
    by https://larouchepac.com/  
    The past weeks have seen an extraordinary consolidation of the economic partnership and mutual support among China, India, and Russia—the core of the BRICS impulse of scientific progress and economic growth, which is now reaching many nations. A “brotherhood,” as EIR Founding Editor Lyndon LaRouche recently called it, rather than an alliance of nations, some of which are driving the highest rates of productivity and growth in the world; others of which, desperately need that.

    But the relatively bankrupt trans-Atlantic countries, with very bankrupt banking systems, are driving the world toward war—and not only the spreading, genocidal wars in the Mideast and Northern Africa which Bush and Obama, Blair and Cameron, and their Saudi allies have started.

    This week, the battle was in full view in South Korea, where Indian Prime Minister Modi and U.S. Secretary of State Kerry were visiting at the same time.

    India and Korea formed a strategic partnership; Korea extended $10 billion in credits for Indian infrastructure development, along with a commitment to bring to India, South Korea’s famously successful model for rural development. Modi presented the benefits of his “Make in India” campaign, for Korea.

    Kerry, on the same day, dismayed his Korean hosts by blustering attacks on North Korea—virtual demands for war on the peninsula—and pushed the U.S. ballistic missile defense system Korea does not want, down their throats.

    Kerry’s deputy, Victoria Nuland, spent three days in Ukraine, then that country’s President signed laws which effectively glorify the country’s Nazi collaboration during World War II and outlaw dissent against it; while the Obama Administration again emphasized that heavy weapons for Ukraine to fight Russia were “on the table.”

    And London moved against Macedonia, with anti-government demonstrations led by European diplomats and promising “a war here like in Ukraine.” Macedonia is an important link on China’s “Maritime Silk Road” port-and-rail development corridor, and an opponent of anti-Russia sanctions. The attack against Macedonia is against the BRICS as a whole, which alliance is clearly giving Greece a live option to escape the murderous austerity and economic depression imposed on it by EU agencies.

    The BRICS dynamic must prevail. The current U.S.-NATO policy of destroying the BRICS combination, encircling and confronting both Russia and China, is not only a bankrupt policy; it is leading toward thermonuclear war and potential human extinction.

    read more.

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May 21, 2015 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , , , , , , , , , , | Leave a comment

Alasdair Macleod: The Coming Panic Into Physical Gold And Silver

  • Alasdair Macleod: The Coming Panic Into Physical Gold And Silver
    by http://www.silverdoctors.com/  
    Many of us are now predicting another round of QE, quite possibly before the leaves are finished falling off the trees this fall around the country.

    The one thing the Fed really is frightened of is contracting bank credit.  And this idea of collateral liquidation leading to more selling of collateral by the banks to cover loans is sort of self-feeding into nasty collapse if you like in asset prices.

    Now that’s not going to happen because they are going to print money to insure it doesn’t happen.

    We are very very close to that sort of tipping point and I think that people who have 
    an understanding of this are not going to hang around and wait for the Fed to print money. They are going to go quite quickly against the dollar…

    Anybody who doesn’t own physical silver or gold could miss out.  I think there’s a big change coming.

    Submitted by Fund Manager Dave Kranzler, Investment Research Dynamics:

    The strategic reasons for are now about to change in the next six months. Anybody who doesn’t own physical silver or gold could miss out. I think there’s a big change coming on.  – Alasdair Macleod,Shadow of Truth

    The Shadow of Truth interviewed Alasdair Macleod to get his take on the economic reports which show an economic contraction in the U.S., the recent move higher in precious metals prices and his thoughts on what China’s next move is with respect to their obvious hoarding of physical gold.


    read more.

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May 21, 2015 Posted by | Economics, Social Trends | , , , , , , , , , , , , , , | Leave a comment

Rob Kirby: Extreme Reduction in Standard of Living Guaranteed. China Gold Could Cause Tsunami of Dollars in US.

  • Rob Kirby: China Gold Could Cause Tsunami of Dollars in US
    by Greg Hunter’s USAWatchdog.com 
    Gold expert Rob Kirby arranges deliveries of the yellow metal to his clients measured by the ton.  Kirby says news that China may disclose it has 30,000 tons of gold will be devastating for the West.  Kirby contends, “We could be fast approaching the moment when the tide is going to turn and go out, and we are going to find out who’s wearing a bathing suit.  I think that time is fast approaching, if it is not here already.”  Kirby also says, “I think the implied message is we are going to show you how much we have, and then you are going to have to show us how much you have. . . . America, very likely doesn’t have, in my view, doesn’t have the gold they claim to have.  They also probably spent a lot of other people’s gold in safe keeping.”


    What would happen to the U.S. dollar if China revealed a vast holding of physical gold?  Kirby contends, “If this would destabilize the dollar enough . . . it could cause a sudden drop in the U.S. dollar, which could signal a tsunami of dollars coming back to America and could set off a very, very ugly, ugly bout of inflation, which could build into a hyperinflation in America.  This would bring social unrest in America.  This is the social unrest the U.S. military and the Pentagon have been saying is inevitable and is coming to America.  This is exactly the kind of backdrop you would expect to have before this would occur.”

    Kirby points out, “The problem is our global capital markets have become criminal cesspools.  Our global capital markets right now are crime scenes.  The regulatory regime installed by the leadership of America to prevent this all from happening has been vacant.  They are derelict, and they are part of the problem.  It starts with the repeal of the Glass Steagall Act back in the late 1990’s.  You got to look back to see the context of where this train left the tracks.  This is not a derailment.  The derailment occurred a long time ago.  Right now, the engine of the train is in the middle of a corn field, and it’s still moving.”

    read more.

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May 21, 2015 Posted by | Economics, GeoPolitics, Social Trends | , , , , , , , , , , , , , , , , , , , , , | Leave a comment

The Gloves Come Off: Moody’s Warns Of Greek “Deposit Freeze” As Schauble “Won’t Rule Out Default”

Photograph: Petros Giannakouris/AP

Photograph: Petros Giannakouris/AP

  • The Gloves Come Off: Moody’s Warns Of Greek “Deposit Freeze” As Schauble “Won’t Rule Out Default”
    by Tyler Durden, http://www.zerohedge.com  
    Ever since Syriza took over the Greek government and has refused, at least until now, to concede to every Troika demand of perpetuating a status quo which it was elected with a mandate to overturn, Europe has done everything in its power to make not only Syriza’s life increasingly difficult and hostile, but has taken every opportunity to turn the Greek population against its rulers, in hopes that a more “moderate”, technocrat government would replace the “radical leftists.” So far it has failed, despite the best attempts by the ECB and the European Commission to sput a terminal bank run.

    The problem for Greece is that the government has run out of cash. Long ago in fact, and as reported earlier, the country has just two weeks of cash left and the next IMF payment will certainly not be made unless the IMF first finds a way to inject some more money into Greece (so the IMF can essentially repay the IMF), which however won’t happen without a deal first being implemented.

    The other problem is that Greece has run out of time to get a deal in order, especially since with every incremental negotiation, the Syriza government repeats it has substantial “red lines” it won’t cross, something the Troika takes as a direct ultimatum. And the ECB, the IMF and the European Commission are not good at handling ultimatums.

    Which is perhaps why the push to force a terminal bank run in Greece took on an added urgency today when first Moody’s and then Schauble, did everything in their power to strongarm Tsipras into agreeing with Troika demands, or else suffer the consequences of a Grexit: one which will have dire consequences for all of Europe, but which Europe is naively ignoring just because the recent launch of the ECB’s QE is making the underlying tension in the economy and financial markets (which no longer exist courtesy of precisely this QE).

    The gloves officially came off just before the market open today when Moody’s released a report titled “Outlook for Greece’s banking system is negative” in which it did the unthinkable: it explicitly said that the worst case for Greece is now an all but certain outcome if the government doesn’t concede to the Troika, or Institutions, or whatever they are called today.

    read more.

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May 21, 2015 Posted by | Economics | , , , , , | Leave a comment

We’re in a Financial “Twilight Zone” Says Bank of America

May 20, 2015 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , | Leave a comment

U.S. Economic Anomalies Point To A Complete Economic Meltdown

  • Published on May 19, 2015
    Greece is trapped and the central bankers might be ready to Cyprus (bail-in) Greece. More than half the college graduates need financial help from their families. Housing permits and starts miraculously increases with lumber prices and demand decreasing. U.S. economic anomalies point to a complete meltdown of the economy. Obama says he will de-militarize the police, but he is actually doing the opposite. Every country the U.S. operated a CIA black site in the governments of those countries had full knowledge. As Ukraine defaults Poroshenko passes a bill so creditors cannot collect. NATO continues with Russian troop buildup propaganda. Saudi war planes pound Yemen, Kerry blames the Houthi’s for the Saudi bombing. U.S. protecting their proxy army in Syria by removing intelligence before Syrian armed forces acquired the intelligence.

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May 20, 2015 Posted by | Economics, GeoPolitics, Social Trends | , , , , , , , , , , , , , , , , , , , , , , , , , , , | Leave a comment

Bo Polny: It’s All Down from Here, Except Gold and Silver

Click on image to download MP3 interview.

Click on image to download MP3 interview.

  • Bo Polny: It’s All Down from Here, Except Gold and Silver
    by Financial Survival Network  
    Bo Polny joined us today for an update on major markets. He’s calling for a major sell-off on the dollar and treasuries. He also sees a major sell-off on world stock markets as well. It’s going to occur before summer and this will lead to a major increase in gold and silver prices. He believes that you need to be long gold and silver and short the dollar and bonds. Will he be right this time, we’ll know shortly.

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May 20, 2015 Posted by | Economics | , , , , , , , , | Leave a comment

Here come the TRUTH BOMB(s)!

Global Super Storm meltdown??

Global Super Storm meltdown??

Boom-Goes-The-Dynamite-Explosion

  • Here come the TRUTH BOMB(s)! 
    by Bill Holter, via http://blog.milesfranklin.com/  
    A few months back I theorized the rest of the world led by a Chinese/Russian alliance might let loose with a “truth bomb” or a series of them.  It is clear the U.S. has been on a pathway in the desire to start a war.  We have pressed in Syria and the Ukraine but so far to no avail.  From the standpoint of the U.S., it is my opinion that a war is “necessary” to point at and blame for the financial collapse surely coming because in no way can “policy” be blamed.

    The upcoming month of June will be a telling one as the situation in Greece comes to possibly a final head.  Tiny Greece is important for several reasons.  The first and most obvious, they are certainly a firing pin for the derivatives market.  Should they default, what will it be called?  Somehow, some way, a Greek default cannot be classified as one because a cascade of failures will immediately follow.  Financially, Greece can take the Western financial system down all on its own.

    Next, Greece is also a member of NATO, what will they do when the current economic and financial sanctions on Russia run out?  Will they vote to extend the sanctions or vote in their own interest against them?   Or, will they accept financial help and the cash flow from the proposed natural gas pipeline?  A lesser question is what will happen to their EU status?  Will they quit, get kicked out or remain as a black sheep in a dirty family?

    I ask these questions again because Greece now says they will run out of money on June 5th.  They have already pilfered pension funds and sequestered local agency monies, while pleading for the previously pledged but so far withheld aid.  Atop this and more important are the sanctions on Russia due to end also in June.  June is a very pivotal month!

    To this point, the Chinese and Russians have been patient but firm dealing with the U.S..  Russia has warned about arming western Ukraine and placing firepower on Russia’s borders.  China has sternly warned the U.S. regarding the disputed islands in the South Sea, a near spark incident was avoided last week.  My point is this, the U.S. has been pushing while Russia and China have stood their ground.  How long this can go on without some sort of “accident” morphing into conflict is questionable.  As an example are the recent events surrounding the Spratly islands in the South China Sea , can the U.S. really push China in their own back yard?    China and Russia are fully aware of the U.S. falling further and further into a weakened position in many ways, time is running out before a financial collapse and they know a wounded animal often strikes in desperation.  They must in my opinion do something very soon to neutralize the U.S. or face the reality of fighting.

    read more.

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May 20, 2015 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , , , , , , , , | 1 Comment

This October The World Will Change: “China Is Preparing For Something Big”

“China… across the board… is preparing for something big in currency markets.”

  • This October The World Will Change: “China Is Preparing For Something Big”
    by Mac Slavo, May 18th, 2015, SHTFplan.com  
    This October may see the beginning of the end for the U.S. dollar as the world’s reserve currency. Twice every decade the International Monetary Fund meets to discuss their Special Drawing Rights (SDR) currency basket. Currently comprised of the dollar, Japanese Yen, British Pound and Euro, if China has their way a few months from now, we may well see the Chinese Yuan take its place among the world’s most trusted currencies.

    U.S. Treasury Secretary Jack Lew says, “China isn’t ready for currency reserve status,” and would certainly like to see the Chinese blocked from entry, preserving the dollar’s status as the world’s go-to currency and primary mechanism of exchange for global international trade.

    But while Lew and his predecessors have presided over the largest growth in national debt in world history, the Chinese have been strategically positioning, much like the United States did in the early 1900’s, to not just become the world’s largest economy, but to be the super power of the 21st century.

    Forget for a moment what’s being touted by analysts, forecasters, politicians, and financial officials who say China is not ready. Focus instead on the actions being undertaken by China and you’ll understand why Chinese President Hu Jintao says that the dollar is a product of the past.

    read more.

RMB_world_currency_billboard

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May 20, 2015 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , , | Leave a comment

Weather Manipulation Is A Globalist Time Bomb

  • Published on May 18, 2015
    On the Monday, May 18 edition of the Alex Jones Show, Texas Rep. Louie Gohmert calls for changes to the upcoming Jade Helm military exercise, and says it’s “suspicious” that red states like Utah and Texas were labeled “hostile.” Also, new documents obtained by Judicial Watch conclusively prove the Obama administration lied and engaged in spin over the Benghazi attack, and more on the biker gangs battle in Central Texas. Survivalist expert, author and radio host Steve Quayle joins the show today to break down the latest on geo-engineering, Jade Helm and more.

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May 19, 2015 Posted by | GeoPolitics, Social Trends | , , , , , , , , , , , , , , | Leave a comment

Hugo Salinas-Price: Apocalypse and Enormous Disorder Coming. We Are Headed Over Niagara Falls!

  • Hugo Salinas-Price: Apocalypse and Enormous Disorder Coming.
    by Greg Hunter’s USAWatchdog.com  (Early Sunday Release)
    Mexican retail mogul Hugo Salinas-Price is worried about the common man and the upcoming currency calamity that is approaching the globe.  Salinas-Price says, “It certainly isn’t getting better when you have some intellectuals going so crazy as to say they want to ban cash.  We can’t go too much further along this road.  This is utter madness.  We’re not supposed to use cash anymore?  Salinas Price goes on to say, “If we have these lunatics running things, it can’t get any better.  We have people running things that have forgotten about what motivates the common man. . . . I want people to have silver because it is going to protect them.”


    Why does the common man need the protection of precious metals?  Salinas-Price says, “I just read today the global debt is $200 trillion, and it’s grown from the last crisis in 2008.  Something has to happen to take care of that debt.  Either it’s going to be repudiated or it’s going to be inflated away, or it’s going to be paid with taxation. . . . We are headed over Niagara Falls.”

    Salinas-Price, 83 years old and a billionaire, warns currencies can suffer huge inflation risks.  Since the mid 1970’s, Salinas-Price points out the peso exchange rate has plunged compared to the U.S. dollar.  Salinas-Price says, “From 1976 to date, from 12.50 pesos (to $1 US) we are now at 15,100 pesos (to $1 US) and going further down.  Savings can become worthless, and that’s what I tell people.  Don’t save money that is going to devalue.  This inflation that is going on that is presently debt that is like a cloud that is up there.  When it begins to liquidate, it’s going to be pouring down.  People will be rushing around trying to buy things.  The money is going to be worthless because in a liquidation, what can you buy with all this water (fiat money) that is coming down.  As long as it is up there in credit, it’s okay.  It’s up there in the cloud, but if it begins to liquidate, watch out.”

    So, is Salinas-Price predicting the same huge devaluation for the U.S. dollar as what has happened to the Mexican peso?  Salinas-Price contends, “Same cause, same effect.  It is absolutely unavoidable.  That’s why I have been urging people to have silver and gold.”

    read more.

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May 18, 2015 Posted by | Economics, GeoPolitics, Social Trends | , , , , , , , , , , , , , , , , , , | Leave a comment

Bill Holter: “All Hell Has Been Breaking Loose” in the Global Credit Markets

  • Published on May 17, 2015
    Writer & Researcher Bil Holter joins me to discuss the latest as we document the collapse. Over just the past week, Bill explains, “all hell has been breaking lose” in the global credit markets.


    Bill wants readers of SGT Report to understand that “the stock market(s) are merely a side show to the grand Big Top circus of the credit markets because the credit (bond) markets are so much larger than the equity markets.” And Bill says when the credit markets implode – EVERYTHING will implode. 

    So how will it all end? Bill explains, “This is going to be an overnight or over the weekend type of event where you have what you have on a Friday and you wake up on a Monday morning and you can’t trade anything and you’re locked in to your position. So it’s absolutely imperative that you have what you WANT to have, because you won’t have a chance to change it” And Bill asks, “Do realize that gold and silver are THE only monies out there that are not “credit based” or derive their values via the credit markets … markets which will ultimately will be closed?”

    The choice is yours, paper brokerage account statements and ones and zeros on a computer screen, or real physical wealth. The time to make your decision is running out.

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May 18, 2015 Posted by | Economics | , , , , , , , , , , , , | Leave a comment

Leading German Keynesian Economist Calls For Cash Ban

https://translate.google.com.sg/translate?sl=de&tl=en&js=y&prev=_t&hl=en&ie=UTF-8&u=http%3A%2F%2Fwww.spiegel.de%2Fwirtschaft%2Fsoziales%2Fbargeld-peter-bofinger-will-muenzen-und-scheine-abschaffen-a-1033905.html&edit-text=

Click on image for article.

  • The reasons for ending the use of cash are propaganda. The problem is the Illuminist central banking cartel and their objective of RFID microchipping everyone with ‘666’.
  • Leading German Keynesian Economist Calls For Cash Ban
    by Tyler Durden, http://www.zerohedge.com  
    It’s official: the world has gone central-planner crazy. 
    Monetary policy, whether in the form of “conventional” methods such as the micromanagement of policy rates or so-called “unconventional” measures such as QE, has proven utterly ineffective when it comes to both “smoothing out” the business cycle and reigniting economic growth in the wake of severe downturns. If anything, recent history has shown the exact opposite to be true. That is, the Fed helped to engineer the housing bubble and has now succeeded in inflating a similar bubble in stocks and fixed income. Meanwhile, the Japanese experience with QE has plunged the country into what we have affectionately dubbed “The Kuroda Zone”, wherein the BoJ has cornered both the stock and bond markets while failing to promote wage growth or meaningfully raise inflation expectations. In China, the PBoC has taken to cutting policy rates at the first sign of weakness in the stock market, helping to sustain what will perhaps go down in history as the second coming of the tulip bulb mania, while the ECB has taken the insane step of adopting a trillion euro bond buying program while simultaneously demanding fiscal discipline, meaning the central bank’s bond monetization efforts are set against a backdrop of meager supply.

    In sum, the collective actions of the world’s most influential central banks have done wonders when it comes to inflating asset bubbles but have done very little to revive robust economic growth. In fact, far from smoothing out the business cycle and resuscitating DM demand, post-crisis monetary policy has actually had the exact opposite effect: it has set the stage for an even more spectacular collapse while simultaneously creating a worldwide deflationary supply glut.

    read more.
http://www.telegraph.co.uk/finance/personalfinance/comment/11602399/Ban-cash-end-boom-and-bust.html

Click on image for article.

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May 18, 2015 Posted by | Economics, EndTimes, Social Trends | , , , , , , , | Leave a comment

The Coming Crash of All Crashes – But in Debt

This is what is coming up for the world financial system.

This is what is coming up for the world financial system.

  • The Coming Crash of All Crashes – But in Debt
    by , http://armstrongeconomics.com/
    Why are governments rushing to eliminate cash? During previous recoveries following the recessionary declines from the peaks in the Economic Confidence Model, the central banks were able to build up their credibility and ammunition so to speak by raising interest rates during the recovery. This time, ever since we began moving toward Transactional Banking with the repeal of Glass Steagall in 1999, banks have looked at profits rather than their role within the economic landscape. They shifted to structuring products and no longer was there any relationship with the client. This reduced capital formation for it has been followed by rising unemployment among the youth and/or their inability to find jobs within their fields of study. The VELOCITY of money peaked with our ECM 1998.55 turning point from which we warned of the pending crash in Russia.

    The damage inflicted with the collapse of Russia and the implosion of Long-Term Capital Management in the end of 1998, has demonstrated that the VELOCITY of money has continued to decline. There has been no long-term recovery. This current mild recovery in the USA has been shallow at best and as the rest of the world declines still from the 2007.15 high with a target low in 2020, the Federal Reserve has been unable to raise interest rates sufficiently to demonstrate any recovery for the spreads at the banks between bid and ask for money is also at historical highs. Banks will give secured car loans at around 4% while their cost of funds is really 0%. This is the widest spread between bid and ask since the Panic of 1899.


    We face a frightening collapse in the VELOCITY of money and all this talk of eliminating cash is in part due to the rising hoarding of cash by households both in the USA and Europe. This is a major problem for the central banks have also lost control to be able to stimulate anything.The loss of traditional stimulus ability by the central banks is now threatening the nationalization of banks be it directly, or indirectly. We face a cliff that government refuses to acknowledge and their solution will be to grab more power – never reform.

FedRes-M2_Velocity_of_Money

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May 18, 2015 Posted by | Economics, GeoPolitics, Social Trends | , , , , , , , , , , , , , | Leave a comment

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