Socio-Economics History Blog

Socio-Economics & History Commentary

European Sovereign Risk Soars As Systemic Fears Mount

EU_financial_credit_risk-20160211

  • European Sovereign Risk Soars As Systemic Fears Mount
    by Tyler Durden, http://www.zerohedge.com 
    “Whatever it takes” is not enough, it would appear as the fragility and interconnectedness forced upon the European banking/sovereign finance ponzi has rapidly come home to roost for Draghi and his followers. Peripheral bond risk has flipped from “hold your nose” buys to panic sells with Portugal risk exploding 200bps in the last week. As the European banking system’s credit risk rises 2012-crisis-like, it seems belief in a bigger bazooka is fading fast.

    It’s not just Deutsche Bank…

European_Sovereign_Bond_Risk-20160211

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February 11, 2016 Posted by | Economics | , , , , , | Leave a comment

Dow Futures Crash 320 points, Gold Soars US$42 …

http://www.investing.com/indices/us-30-futures

  • S&P500 futures plunge 39 points(2.1%). Nasdaq futures down 92 points (2.3%). WTI Crude oil at US$26.35, we will see US$25.xx like tomorrow. USDJPY at 111.30 and looks like heading towards 110.xx handle very soon(like tonight US time). Japan stock market is toast. BOJ-Kuroda has as good as ‘committed suicide’ with his ‘no limits’ to monetary easing statement. The markets don’t believe him and don’t think BOJ measures will work. If Kuroda starts to go even more negative in NIRP, he will place the entire global financial/monetary system at risk. The markets may just ‘kill’ BOJ-Kuroda another time. It is largely over for BOJ and central banks credibility.
  • Europe stock markets are down 3-4%. Spain is getting smashed -4.3% and Italy tanks 5.2%. The BIG ONE is coming! I mean like down 10+% worldwide overnight with many markets shutdown. Bank holidays will be next.

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February 11, 2016 Posted by | Economics | , , , , , , , , | Leave a comment

ALERT: Derivatives Nightmare Has Shares In Hong Kong Plunging And Gold Surging Above $1,200

http://www.investing.com/indices/hang-sen-40

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February 11, 2016 Posted by | Economics | , , , , , , | Leave a comment

USDJPY is FreeFalling 111.xx Handle, European Stocks Tank, Crude Oil US$26.xx

http://www.investing.com/currencies/usd-jpy

http://www.investing.com/indices/major-indices

February 11, 2016 Posted by | Economics | , , , , , , , | Leave a comment

Andrew Hoffman: This Economic Crash Will Be The Crash That Ends All Crashes

Statue_of_Liberty_overwhelmed_by_Tsunami_waves1

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February 11, 2016 Posted by | Economics, Social Trends | , , , , , , , , , , , , , , , , , , , | Leave a comment

Global Economic And Banking Collapse On Deck

Global_Economic_Collapse_accelerates

  • Global Economic And Banking Collapse On Deck
    by Dave Kranzler, http://investmentresearchdynamics.com/ 
    … All eyes are focused on Deutsche Bank.  Rightly so, for the most part.   “As you said, Deutsche Bank is blowing up” (Dr. Paul Craig Roberts in an email to me this morning).  It was reported this morning that the bank’s CEO released a memo to employees in which he assured the “troops” that everything was fine.   Most people do not remember this but I’ve been cursed with a great memory for certain details.  Jimmy Kayne, the CEO of Bear Stearns, when Bear blew up gave the same type of pep talk to Bear employees shortly before Bear was flushed down the toilet.  Reaching even further back in the annals of epic corporate fraud induced collapses, Ken Lay gave the exact same kind of pep talk to his people right before Enron collapsed.

    As the adage goes, once a rumor is denied at least three times, the fact-basis of the rumor has been confirmed.

    But it’s not just DB – it’s the entire western banking system.  While DB stock was getting pummeled yesterday, it escaped everyone’s attention that Morgan Stanley stock was down over 7% as well.   Bank of America stock was hit 5.4%.  Goldman Sachs as drubbed nearly 6%.  Today Credit Suisse stock is getting hit 7.7%. These banks all have one common denominator:  an exceedingly high degree of exposure to Euro-debt credit default swap counterparty risk.   Include RBS and Barclays on that list as well, both of which are headed for the credit default swap waste bin unless the Fed and the ECB decide to print enough digital money to keep them alive.   The most stunning collapse in stock price is perhaps Credit Suisse (green line) which had been the best performing stock among the group until mid-July.  Wonder what changed?   Nearly as a notable as CS is Morgan Stanley (dark purple), which has managed to stay out of the media but it clearly exhibiting signs of extreme underlying financial distress.  Most might not remember, but Morgan Stanley should have been one of the primary casualties of the 2008 de facto collapse but it was quietly re-monetized so that it could continue fleecing the public by raking in big fees from the huge volume of “Club Med” European credit default swaps that it sells.

    It’s nearly impossible to identify the specific root cause of the obvious banking system melt-down that is occurring. By design the use of OTC derivatives  by the banks has been completely obscured and hidden from sight.   As was evident from Jamie Dimon’s admissions during the “London Whale” crisis at JPM, even the people running these banks do not have a full understanding of the magnitude and degree of risk buried in the big bank balance sheets.  Since the Central Banks get their bank-specific information from the banks, it means that Central Banks therefore do not fully understand the scope and severity of the problem either.

    read more.
http://www.theguardian.com/business/2016/jan/06/world-bank-perfect-storm-warning-2016-slowdown-brics-economies

Click on image for article.

http://www.telegraph.co.uk/finance/financetopics/davos/12108569/World-faces-wave-of-epic-debt-defaults-fears-central-bank-veteran.html

Click on image for article.

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February 11, 2016 Posted by | Economics | , , , , , , , , , , , | Leave a comment

“It’s Worse Than 2008”: CEO Of World’s Largest Shipping Company Delivers Dire Assessment Of Global Economy

Container_Shipping_vessel_collapsing

  • “It’s Worse Than 2008”: CEO Of World’s Largest Shipping Company Delivers Dire Assessment Of Global Economy
    by Tyler Durden, http://www.zerohedge.com 
    Earlier today, we highlighted the rather abysmal results reported by Maersk, the world’s largest shipping company.

    To the extent the conglomerate is a bellwether for global growth and trade, things are looking pretty grim.
    Maersk Line – the company’s golden goose and the world’s largest container operator – racked up $182 million in red ink last quarter and the outlook for 2016 isn’t pretty either. The company now sees demand for seaborne container transportation rising a meager 1-3% for the year.


    The demand for transportation of goods was significantly lower than expected, especially in the emerging markets as well as the Group’s key Europe trades, where the impact was further accelerated by de-stocking of the high inventory levels,” the company said, in its annual report. Just how bad have things gotten amid the global deflationary supply glut you ask?

    Worse than 2008
    according to CEO Nils Andersen who last November warned that “the world’s economy is growing at a slower pace than the International Monetary Fund and other large forecasters are predicting.” Here’s what Andersen told FT:


    read more.

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February 11, 2016 Posted by | Economics | , , , , , , , | Leave a comment

Elites at Davos: “We Should Move Quickly to a Cashless Economy So That We Could Introduce Negative Rates Well Below 1%”

Davos_elites-Negative_rates_cashless_economy

  • Something Very Disturbing Spotted In A Morgan Stanley Presentation
    by Tyler Durden, http://www.zerohedge.com 
    With central bankers losing credibility left and right, and failing outright to boost the “wealth effect” no matter what they throw at it, the next big question is when will central planners around the world unveil the cashless society which is a necessary and sufficient condition to a regime of global NIRP.

    And while in recent days we have seen op-eds by bothBloomberg and FT urging the banning of cash, the most disturbing development we have seen yet in the push for a cashless society has come from the following slide in a Morgan Stanley presentation, one in which the bank’s head of EMEA equity research Huw van Steenis, pointed out the following… (top of post)

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

Click on image for article.

DavidSpangler-Luciferian_Initiation_to_New_World_Order

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February 11, 2016 Posted by | Economics, EndTimes, Social Trends | , , , , , , , , , , , , | Leave a comment

Former BIS Chief Economist: Global Debt Problem is So Severe Many of These Debts Will Never Be Serviced Or Repaid. We Need to Re-Look at the Whole International Monetary System

Bank_Intl_Settlement_BIS

  • Global Monetary/Currency Reset is approaching. How do you solve this global debt problem? The coming reset will revalue the price of gold many multiples higher to extinguish unpayable debts. For eg. if a government has US$100B in debts and US$10B in physical gold at current prices, by revaluing the price of gold 10x higher ie.US$10 x10 = US$100B, they are solvent overnight.
  • In the coming reset, the world will return to the Gold Standard ie. a One World Currency backed by gold. The Satanic cabal’s endgame is: Luciferian New World Order, World Government led by the Anti-Christ, Global Supra-Nation Central Bank (very likely a IMF 2.0 or BIS, ie. World Treasury and World Central Bank), –> ‘666’.
  • Former BIS Chief Economist: Global Debt Problem is So Severe Many of These Debts Will Never Be Serviced Or Repaid. We Need to Look at the Whole International Monetary System 
    by http://lonestarwhitehouse.blogspot.com/  
    Last month we ran this article on the blog which quoted former Bank for International Settlements (BIS) Chief Economist William White as saying that the global debt problem is so severe that “it will become obvious in the next recession that many of these debts will never be serviced or repaid.” If that isn’t enough coming from a former BIS Chief Economist, he added “this will be uncomfortable for a lot of people who think they own assets that are worth something.” 

    We try here to be non sensational in covering the issues. We try not to use hyperbole or overhype the potential for serious economic problems. In this case we have an extremely credible former key official with years experience inside the system making some very strong statements in public. In order to explore these comments more in depth, we will look at a recently released two part article on the Cobden Centre web site that is an interview with William White. We strongly encourage readers here to read Part I and Part II of this interview fully. Below are some key quotes selected from the interview. After that we will add a few comments.

    Max Rangeley: “Well, thank you very much for being on the call today, Bill. That’s really great. So I’ve got a few questions here, which I thought we could go through. First, now that QE has started in Europe is this likely to cause further distortions rather than stimulate the economies of Europe, especially will it favour large corporations at the expense of small businesses, do you think?”

    William White: “To be honest, I’m not sure it’s going to do anything – certainly, anything that’s good. The fundamental problem here, as I see it anyway, is that the European banking system is still broken. As you know, the European economy is heavily reliant on small and medium-sized enterprises, and they are reliant in turn on bank financing. Unfortunately, it is these firms that are not getting the bank financing that they need. Until that gets fixed, we will continue to have a huge problem in Europe.    . . . . . . 

    In any event, here in the euro zone bond yields are incredibly low already although one cannot rule out that this was in anticipation of QE. So my general sense is that I don’t think QE was needed and I am dubious that it will work in stimulating aggregate demand as intended. Moreover I remain worried that its implementation might bring with it other unintended and undesirable consequences that we haven’t even thought about. All that said, I think the ECB was under such pressure to act further that it had little choice but to do what it did. And that, in itself, I think, is really unfortunate,because it just drags another important central bank still deeper and deeper into this malaise of central bank over extension.”
     


    read more.
https://socioecohistory.wordpress.com/2013/04/18/the-tower-of-basel-secretive-plans-for-the-issuing-of-a-global-currency-2/

Click on image for article.

http://www.globalresearch.ca/the-financial-new-world-order-towards-a-global-currency-and-world-government

Click on image for article.

Luciferian_New_World_Order_Koch_n_Spangler

Chester_Ward_One_World_Government_CFR

Carroll_Quigley_Tragedy_n_Hope2

http://www.thenewamerican.com/economy/economics/item/20833-imf-the-new-global-fed

Click on image for article.

Ron_Paul_Merger_of_ECB_FedRes_BOJ_WorldCentralBank

  • “They are planning through the IMF to come up with a World Currency to replace the dollar because the dollar will be replaced you just can’t keep printing them forever …. They wanna come up with another currency controlled and ruled by the United Nations and IMF ! “ – Quote: Ron Paul, 12 Jan 2012 at South Carolina.
  • “Are we going to go another step further into INTERNATIONAL MONEY … are we gonna go toward a U.N./IMF STANDARD where they are going to control with the USE OF FORCE another fiat standard. That’s what many people are working for and I CONSIDER THAT A VERY DANGEROUS MOVE!” – Ron Paul
http://thenewamerican.com/economy/economics/item/14579-killing-the-dollar-g20-imf-push-for-global-fed-global-currency

Click on image for article!

http://www.thenewamerican.com/economy/economics/item/4489-imf-report-promotes-world-currency

Click on image for article!

http://americanfreepress.net/?p=1263

Click on image to goto article!

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February 11, 2016 Posted by | Economics | , , , , , , , , , | Leave a comment

Debt, Defaults And Devaluations: Why This Market Crash is Like Nothing We’ve Seen Before

http://www.telegraph.co.uk/finance/economics/12138466/when-is-the-next-financial-crash-coming-oil-prices-markets-recession.html

Click on image for article.

http://www.telegraph.co.uk/finance/economics/11898936/World-set-for-emerging-market-mass-default-warns-IMF.html

Click on image for article.

http://www.theguardian.com/business/2015/oct/07/next-financial-crash-is-coming-imf-global-stability-report

Click on image for article.

http://www.telegraph.co.uk/finance/economics/11538509/IMF-tells-regulators-to-brace-for-global-liquidity-shock.html

Click on image for article.

http://www.telegraph.co.uk/finance/oilprices/12143304/Oil-market-spiral-threatens-to-prick-global-debt-bubble-warns-BIS.html

The BIS is a privately owned Illuminist bank. They are once again warning about the problem they had a hand in causing. Pretending to be the good guys, saviors of the world. Click on image for article.

http://www.telegraph.co.uk/finance/economics/11858952/BIS-fears-emerging-market-maelstrom-as-Fed-tightens.html

The BIS is a snake organization. It paints itself as the savior by giving such warnings but in reality is part ofthe problem, the Illuminist privately owned central banking cartel. Click on image for article.

http://www.telegraph.co.uk/finance/economics/11704051/The-world-is-defenseless-against-the-next-financial-crisis-warns-BIS.html

Once again the serpents who are behind the crisis are speaking like the good guys warning the sheeple about the coming crisis they engineered. Click on image for article.

February 11, 2016 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , | Leave a comment

Capital Flight Intensifies in Italy and Spain; Curiously, Money Flows Into French Banks

Capital_flight_out_of_Italy_Spain_into_France

  • Capital Flight Intensifies in Italy and Spain; Curiously, Money Flows Into French Banks
    by , http://mishtalk.com/  
    Money continues to pour out of Italian and Spanish banks for safer havens. This month I note a curious side effect: A huge amount of money went into French banks instead of German banks. The following table shows the winners and losers. (top of post)

    Lack of Trust
    To encourage more lending, ECB president Mario Draghi cut the deposit rate for money parked at the ECB from -0.2% to -0.3% on December 3. 

    Clearly that did not work.

    Europe Fears Bail-Ins
    Stepping back a bit, here’s a key question: What caused the depositors to flee their banks in the first place? The answer is fear of bail-ins, confiscations, capital controls, and bank failures like we have seen in Greece and Cyprus.


    read more.

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February 11, 2016 Posted by | Economics | , , , , , , , | Leave a comment

Italy Hit by Banking Crisis

http://www.dailymail.co.uk/wires/reuters/article-3408198/Some-Monte-Paschi-customers-withdraw-savings-banks-stock-sinks.html

Click on image for article.

  • Italy Hit by Banking Crisis
    by Marianne Arens, http://www.wsws.org/  
    Sharp turbulence on the Milan stock exchange in January focused attention on Italy’s deep economic and financial crisis. At the same time, the conflict between the Italian government and the European Union (EU) Commission has intensified. Prime Minister Matteo Renzi (Democratic Party–PD) has responded with new, stepped-up attacks on the working class.

    Stock markets across the world experienced a sharp downturn at the beginning of 2016, with the stock exchange in Milan affected particularly severely. Although all European economies suffered as a result of the slowdown of growth in China and the decline of oil prices, “apart from Athens, the Milan stock exchange was … by far the worst affected,” as the Swiss Neue Zürcher Zeitung wrote on January 21.

    In mid-January, the stocks of many major banks and corporations fell steeply. The worst losses were to the stocks of Fiat, UniCredit bank, Monte dei Paschi di Siena bank, and Cariger bank.

    The value of Monte dei Paschi di Siena (MPS) bank, the oldest bank in the world (founded 1472), fell temporarily by half, and its share price dropped to just 50 cents. The bank had to be removed from trading. On January 24, the government decided to protect the bank from bankruptcy with a guarantee from the Economics and Finance ministry.

    The MPS is one of six Italian banks that reportedly hold large quantities of toxic assets. With net wealth of €10 billion, the value of bad loans allegedly totals €24 billion. As the European Central Bank confirmed in a data analysis at the end of last year, there are more than €200 billion worth of toxic assets on the books of Italian banks.

    The figures reflect the weakness of the Italian economy after five years of recession. Seventeen percent of loans held by Italian banks today are, according to EU figures, in danger of turning bad. By contrast, according to figures from the Royal Bank of Scotland, in Germany the figure is 2 percent and in France 7 percent.

    The following comparison brings out the state of crisis in the Italian economy: while six years ago small and medium-sized businesses had the possibility of paying back 90 percent of their loans, today it is only 72 percent.

    Already in November 2015, four smaller banks fell into crisis: Banca Popolare dell’Etruria in Arezzo, Banca Marche in Ancona and two local savings banks in Chieti and Ferrara. The Italian government did not step in to support the crisis-ridden institutions with state loans, because the EU has since banned state help for failed banks.

    read more.
http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/12111265/Is-Italy-the-next-Greece.html

Click on image for article.

https://larouchepac.com/20160104/eus-banking-system-will-crash-what-about-wall-street

Click on image for article.

https://larouchepac.com/20151230/zombie-banks-bring-mass-death-human-beings-europe-and-america

Click on image for article.

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February 11, 2016 Posted by | Economics | , , , , , , | Leave a comment

Economics Professor: Negative Interest Rates Aimed at Driving Small Banks Out of Business and Eliminating Cash

http://www.telegraph.co.uk/finance/bank-of-england/11874061/Negative-interest-rates-could-be-necessary-to-protect-UK-economy-says-Bank-of-England-chief-economist.html

Click on image for article.

  • Economics Professor: Negative Interest Rates Aimed at Driving Small Banks Out of Business and Eliminating Cash
    by WashingtonsBlog  
    More than one-fifth of the world’s total GDP is in countries which have imposed negative interest rates, including Japan, the EU, Denmark, Switzerland and Sweden. Negative interest rates are spreading worldwide. And yet negative interest rates – supposed to help economies recover – haven’t prevented Japan and Europe’s economies from absolutely tanking. Nor have they even stimulated spending. As ValueWalk points out:

    Japan has had ultra-low rates for years and its economy has been terrible. Trillions of debt in Europe now trades at negative interest rates and its economy isn’t exactly booming.  Denmark, Sweden and Switzerland all have negative interest rates, but consumer spending isn’t going up there. In fact, savings rates have been going up in lockstep with the decrease in interest rates, exactly the opposite of what the geniuses at the various central banks expected.

    Why is this happening? Simply, savers are scared. Lower interest rates have wrecked their retirement plans. Say you were doing some financial planning 10 years ago and plugged in 3% from your savings account.  Now its 0%.  You still have to plan for your retirement. Plug in 0%. What happens to your planning now?  0% compounded for X years is 0%.  The math is simple. So in order to have your target savings at retirement, you need to save more, not spend more. But for some reason, the economists that run central banks around the world can’t see this. They are all stuck in their offices talking to one another and self-reinforcing this myth that they can drive spending up by reducing the rate of return on investments.  Want to see consumer spending go up?  Don’t wreck their savings plans so that they are too scared to spend.  But that’s too simple. Instead, central banks use a chain of causation that doesn’t exist to try to create change 3 or 4 steps down the line. It hasn’t worked, and it won’t work. It isn’t in an individual’s self-interest to go out and spend their money on more “stuff” in order to spur economic growth.

    So what’s really going on? Why are central banks worldwide pushing negative interest rates? Economics professor Richard Werner – the creator of quantitative easing – notes:

    read more.
http://www.bloombergview.com/articles/2016-01-31/bring-on-the-cashless-future

Click on image for article.

http://www.bloomberg.com/news/articles/2015-04-10/citi-economist-says-it-might-be-time-to-abolish-cash

Click on image for article.

http://armstrongeconomics.com/archives/30671

Click on image for article.

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 16 May 2015 article.

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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February 11, 2016 Posted by | Economics, Social Trends | , , , , , , , , , , , , , | Leave a comment

“It’s Probably Something” – Gold Surges Above $1200; USDJPY, Oil, Stocks Plunge

112.xx handle.

112.xx handle.

  • “It’s Probably Something” – Gold Surges Above $1200; USDJPY, Oil, Stocks Plunge
    by Tyler Durden, http://www.zerohedge.com  
    With US markets failing to hold on to today’s “Deutsche Bank” euphoric gains today despite, or rather due to Janet Yellen’s Congressional testimony, traders in mainland China remains locked out due to the Lunar New Year holiday, while Japan is mercifully taking a break – mercifully, because otherwise the Nikkei would be crashing. However, one market is back online as Hong Kong traders return to their desks to see carnage around the globe, and most importantly, are unable to hedge arbed exposure between China, Japan and the US.

    So, with few options, they are buying the one asset that provides the best cover to central banks losing faith, demonstrated most vividly by the total failure of the BOJ, and as a result just as Yen soars above 113… with USDJPY down a stunning 10 handles from the post-NIRP highs…

    read more.

Gold_price-20160210

http://www.investing.com/commodities/crude-oil

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February 11, 2016 Posted by | Economics | , , , , , , , | Leave a comment

Brandon Smith: The Controlled Demolition of Our Economy

  • Brandon Smith: The Controlled Demolition of Our Economy
    by The Daily Coin, http://thedailycoin.org/  
    People need to ask an important question – Why would the Fed hike interest rates in the first place when no one ask them to do it? Why would they do that? ~Brandon Smith, The Daily Coin 

    I wanted to sit down with Brandon Smith, Alt-Market, for a very specific reason. Brandon is one of very few people that stuck to his analysis and said the Federal Reserve would in fact raise interest rates in December 2015. Not only did he say that the interest rate rise would happen, he predicted almost the exact date. Brandon made this prediction in August 2015 based on his analysis of what the global banksters have published, have said publicly and proven time and again through their actions they do what they say when they say they are going to do it.

    This was an important interest rate adjustment, at a very important time. Our world is floating on an ocean of debt. The global economy is either in a recession or full blown depression. It is not in recovery nor will it be in recovery ever again. The dollars days are numbered and the American economic and financial systems days are numbered. Are you prepared for the transition into a new currency, a new economic system and a new way of life?

    This is not me being overly dramatic. If you have been following “alternative” news, the liberty movement and preparedness news, this is exactly what we have been discussing for the past several years. It is here and it is happening right now. Are you prepared for a new way of life? Are you prepared for widespread panic, widespread civil unrest and widespread rioting in your neighborhood?

    read more.
http://themillenniumreport.com/2014/12/obama-trilateral-commission-endgame/

Click on image for article.

Barry_Goldwater_on_Trilateral_Commission

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February 10, 2016 Posted by | Economics, GeoPolitics, Social Trends | , , , , , , , , , , , , , , , , | Leave a comment

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