Socio-Economics History Blog

Socio-Economics & History Commentary

Something Big Is Coming: Bernanke To “Secretly” Meet With Kuroda; “Helicopter Money” On The Agenda

  • Something Big Is Coming: Bernanke To “Secretly” Meet With Kuroda; “Helicopter Money” On The Agenda
    by Tyler Durden, http://www.zerohedge.com 
    Two years after Paul Krugman sat down with Abe to tell him how to run monetary (and to a lesser extent fiscal) policy, Abenomics lies crushed in a steaming pile of discredited Keynesian economics, with the “deflation monster” once again ruling the land, wages have failed to sustain any material move higher, the economy finds itself in yet another pre-recessionary slump, and most importantly, the Nikkei has plunged 25% from recent highs as a result of the surge in the Yen driven by the complete collapse in BOJ credibility – which is now a ward of the G-7 and is not allowed to make any independent monetary decisions without US Treasury preapproval – which has pushed Japan’s currency back to levels higher than when Krugman made his visit.

    So what is Japan to do facing what may be an economic dead-end? Why even more of the same, and just to make sure Japan does not deviate from the monetary course of righteousness, this time not Krugman but the godfather of everything that is wrong with modern monetary policy, Ben Bernanke, will make sure of it.

    But first, to give the impression that Japan’s decision making process is still “independent”, officials from the Ministry of Finance, Financial Services Agency and the Bank of Japan will meet Friday at 9:30 a.m. to exchange views including on how the government should respond to the yen’s appreciation, Reuters reports.

    read more.

Helicopter-Ben_Bernanke

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July 8, 2016 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , , , | Leave a comment

Globalists Are Now Openly Demanding New World Order Centralization

Luciferian_New_World_Order_Koch_n_Spangler

  • Globalists Are Now Openly Demanding New World Order Centralization
    by Brandon Smith, http://www.alt-market.com/  
    I have said it many times in the past — when elitist criminals start openly admitting to their schemes it means that they are ready to pull the plug on the current system. They simply don’t care anymore who knows their plans because they think that victory is inevitable.

    There have been more subtle and less prominently published calls for a “new world order” in the past, to be sure.  However, at no other time have I seen international financiers and their puppet political mouthpieces so brazen about calling for global centralization than in the wake of the successful Brexit referendum. It is as if the Brexit flipped a switch in the existing narrative and set loose a flood of new propaganda, all aimed at convincing the general public that central banks must combine forces and act as one institution in order to combat an economic crisis that isn’t even visible to laymen yet.

    Though I predicted the activation of this propaganda campaign in my article “Brexit: Global Trigger Event, Fake Out Or Something Else?,” published before the referendum vote took place, the speed at which it is developing is truly astonishing.

    Now, under the current circumstances of the previous week’s market rally post-Brexit (driven by hopes of central bank intervention and extremely low trading volume) one would think that the globalist calls for total centralization of financial policy management don’t make much sense. Where is this “crisis” that the bankers keep warning about?

    As I outlined in great detail in recent articles, I believe the Brexit to be a partial trigger event for a future market disaster that has been engineered for many years. That is to say, a worldwide financial calamity has been deliberately staged in advance, and the Brexit is meant to act as a scapegoat for it.  The fundamentals of the global economy have been increasingly negative since 2008, and the only “indicator” left to appear positive has been stocks.

    read more.

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July 8, 2016 Posted by | Economics, EndTimes, GeoPolitics | , , , , , , , , , , , , , | Leave a comment

Gregory Mannarino: Collapse of Empire is Upon Us! When Debt Bubble Pops Millions Will Die

  • Gregory Mannarino: Collapse of Empires is Upon Us
    by Greg Hunter’s USAWatchdog.com
    Trader and analyst Gregory Mannarino says what is going on today with the FBI refusing to indict Hillary Clinton is nothing new when considering the “fall of empires.” Mannarino explains, “This is a cycle, and we are seeing several pieces fall into place regarding the political system and the financial system that we have seen over and over again.  There is a lifespan of an empire . . . at the top of every empire . . . there is an issue of the financial system, and there is an issue with the political system that becomes absolutely corrupt.  This is why this announcement (FBI not indicting Clinton) came.  Again, this is political corruption.  It’s not just here in the United States, but globally it is flashing red across the sky. . . . I think they are well aware that the whole system is going down. The collapse of empires is upon us. . . . We are in an environment that globally we have never seen before.  With what we are seeing in the United States with the corruption in politics, we’ve seen that before.  Every great empire, right at the top, the two key elements that appear are financial system on the edge and political corruption trying to patch it all together.  That is something we see over and over again throughout history.”


    So, what’s new? Mannarino contends, “We are in uncharted territory.  It’s occurring right under everybody’s nose.  Barely anyone is aware of what is going on because it’s not getting any media coverage.  There is this phenomenon where trillions of dollars of currency are being moved or rushing towards the debt market that is squeezing bond yields to historic lows.  We are making history in the United States for the second week in a row, and I am talking about the bond market.  Last week, we hit an historic low with regard to yield.  People are so desperate, people are so desperate they are willing to accept negative returns.  This is how desperate they are. . . . This is, and I can’t stress this enough, this is the biggest red flag I can possibly imagine.  We are on the cusp of some event that is going to change the landscape of the world.”

    On the banking system, Mannarino says, “The system is completely illiquid. . . . The total amount of cash (according to the Federal Reserve) that is printed, that you can hold in your hand that is in circulation around the world, is $1.4 trillion. The rest of it is just credit and debt ($19 trillion current national debt).  If you want to talk about unfunded liabilities, you are talking more than $100 trillion.  So, how can this ever be paid back?  We have $1.4 trillion in actual cash.  That is all that exits on the earth.  How can $1.4 trillion in actual cash ever pay back this debt?  Let me put this another way.  The commercial banks say they have $11 trillion in deposits.  How can they have $11 trillion in deposits when there only exits $1.4 trillion?  It is a liquidity problem.  The banks are insolvent.  They are absolutely insolvent.  They do not have the cash.  You can understand where this is going, and this is a global phenomenon that we have never seen before.  Cash moving into the debt market like this is unprecedented, and it is getting no media coverage.”

    read more.

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July 7, 2016 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , | Leave a comment

EU Banks Crash To Crisis Lows As Funding Panic Accelerates

Europe_Stoxx_600_Bank_Index-20160706

  • EU Banks Crash To Crisis Lows As Funding Panic Accelerates
    by Tyler Durden, http://www.zerohedge.com 
    The signs are everywhere – if you choose to look – Europe’s banking system is collapsing (no matter what Draghi has to offer). From record lows in Deutsche Bank and Credit Suisse to spiking default risk in Monte Paschi, the panic in Europe’s funding markets (basis swaps collapsing) is palpable. Tumbling to a fresh post-Brexit low, Europe’s Stoxx 600 Bank Index is testing EU crisis lows… (chart top of post)

    With Credit Suisse smashing to record lows…
    and Deustche Bank crashing towards the inevitable Lehman moment… 

    read more.

CreditSuisse-stock_price-20160706

DeutscheBank-20160706

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July 7, 2016 Posted by | Economics | , , , , , | Leave a comment

Saxo Fears “Cascading Implosion” As Italian Bank Collapse Continues

A ratio above 100% is big warning signal. Click on image to enlarge.

A ratio above 100% is big warning signal. Click on image to enlarge.

  • Saxo Fears “Cascading Implosion” As Italian Bank Collapse Continues
    by Tyler Durden, http://www.zerohedge.com  
    While the picture is a little more mixed today in Italian banks, as it appears investors are picking winners and losers rather than just broadly dumping it all, Monte Paschi is a standout disaster. Having crashed 45% since Brexit and with CDS implying a 40%-plus probability of default, the major Italian bank also has the worst ‘Texas ratio’ as stress tests loom… As Saxo’s Peter Garnry warns “an implosion of the Italian banking system would cascade into other European banks and the funding market, creating disorderly markets and lower sentiment causing a slowdown in economic growth and also prices.”

    And as Saxo Bank’s head of equity strategy Peter Garnry notes, Italian banks need a solution… quickly!

    The biggest theme emerging in the post-Brexit world is the evolving banking crisis in Italy which has actually been under way since the beginning of the year as the new non-performing exposure rules started to be enforced by the European Banking Authority.

    UniCredit, Intesa, Monte Paschi, Banco Popolare, and UBI collectively had €119 billion in unprovisioned non-performing loans at the end of Q1 with UniCredit’s exposure being the critical piece in the overall European banking system.

    The Italian banking system has around €400bn in total non-performing loans. The aggregate common equity among Italian publicly-listed banks was around €125B (as of the end of Q1) and around 75% of the uncovered non-performing loans.

    Another way to understand the Italian banking crisis is through the lens of the Texas Ratio, which measures the amount of non-performing assets and loans (including loans delinquent for more than 90 days) divided by the bank’s tangible equity plus its loan loss reserve.

    A ratio above 100% is big warning signal. (chart top of post)

    read more.

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July 6, 2016 Posted by | Economics | , , , , , | Leave a comment

Domino #3: M&G Suspends Trading In $6 Billion UK Property Fund

The Illuminists are lining up the pieces for a catastrophic global collapse!

The Illuminists are lining up the pieces for a catastrophic global collapse!

  • Domino #3: M&G Suspends Trading In $6 Billion UK Property Fund
    by Tyler Durden, http://www.zerohedge.com  
    Things are getting bad fast in Britain… 
    Domino #1: *STANDARD LIFE INV PROPERTY DROPS 15%; TRADING IN FUND SUSPENDED
    In a stark flashback to the catalytic event that ultimately brought down Bear Stearns in 2008, and subsequently unleashed the greatest financial crisis in history, last night we reported that Standard Life, has been forced to stop retail investors selling out of one of the UK’s largest property funds for at least 28 days after rapid cash outflows were sparked by fears over falling real estate values.

    As we further noted, citing an analyst, “given the outflows the sector seems to be experiencing, this could well put downward pressure on commercial property prices,” said Laith Khalaf, senior analyst at Hargreaves Lansdown. “The risk is this creates a vicious circle, and prompts more investors to dump property, until such time as sentiment stabilises.”

    As we concluded, whie Brexit is not a Humpty Dumpty event, where all the Fed’s horses and all the Fed’s men can’t glue the eggshell back together, it is an event that forces investors to wake up and prepare their portfolios for the very real systemic risks ahead. And, indeed, if Standard Life was the first domino, moments ago the second domino also tumbled when as Bloomberg reported that Aviva Investors Property Trust is as of this moment “frozen” citing “extraordinary” market conditions.

    Domino #2: *AVIVA SUSPENDS TRADING ON AVIVA INVESTORS PROPERTY TRUST

    read more.

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July 6, 2016 Posted by | Economics | , , , , , , , | Leave a comment

Robert Kiyosaki Warns 2016 Jubilee Year Collapse Is Going to Make a Lot of Poor Dads

Global_Economic_Collapse_accelerates

Robert_Kiyosaki-Rich_Dad_Poor_Dad_Crash

  • Robert Kiyosaki Warns 2016 Jubilee Year Collapse Is Going to Make a Lot of Poor Dads
    by Already in Jubilee 2016, we’ve seen incredible volatility.  Brexit is just one example.  Within a matter of minutes the British pound soared (when Bremain had the early lead in results) and then had its worst crash in history a few minutes later.  The British stock market fell 5.6% quickly after Brexit and has now moved up dramatically in the last week.

    Volatility in the markets is just like volatility in real life.  Your car rides fine for thousands of miles and then, suddenly,begins to shake madly:  A wheel is in danger of falling off, and if you don’t stop quick enough it ends up in a crash.

    Or someone could appear to be well adjusted and stable but then begins to act erratically.  This is usually a sign that the person is about to have a major problem.

    It is the same in the markets.  Volatility is a sign that something is wrong. Central banks are printing torrents of money, despite the usual rhetoric about tightening. Governments are trillions of dollars in debt, including some $11.7 trillion (up from $3.6 trillion in early 2015) under negative interest rates, which in and of itself shows the system is broken.  And a top BIS official, William White, has publicly stated that this will result in a massive washing away, where people find out things they thought had value, didn’t, which he termed a debt jubilee. And now three more established names have warned of the same.

    Robert Kiyosaki, who wrote ‘Rich Dad, Poor Dad’, a great book about how to become wealthy is now warning that many people are about to become Poor Dads unless they prepare now. Kiyosaki just wrote a blog about Brexit volatility, in which he warned starkly, “Welcome to an uncharted future.” And then this:

    In my opinion, the only known fact is that this will create an increase in volatility. … The economy is a global force. To be unaware of its movements is to be gambling with your future no matter what business you are in.  Brexit is a huge action in this global power that needs to be taken into account.  To survive the effects of the global economy one must be able to predict the future.

    read more.

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July 6, 2016 Posted by | Economics | , , , , , , , , , , , | Leave a comment

Italian Banks Tumble, Monte Paschi Plunges To Record Low After ECB Letter

EUrope_collapse_cartoon

  • Italian Banks Tumble, Monte Paschi Plunges To Record Low After ECB Letter
    by Tyler Durden, http://www.zerohedge.com  
    The pain for Europe’s banks, and especially those in Italy, continues this morning following the latest news surrounding the Italian bank sector.

    As a reminder, the Euro Stoxx Banks index was down -0.88% last week and is nearly 19% down from its pre-referendum levels. Italian Banks are at the heart of that weakness with the likes of Unicredit, Intesa, Banco Monte dei Paschi and UBI down -9.78%, -3.44%, -15.79% and -6.11% respectively last week, in the process sending Italian stocks to levels not seen since Draghi’s famous “whatever it takes” speech.

    As we documented recently, there has been plenty in the press about possible liquidity guarantees and recaps for Italian Banks (not to mention yet another quiet Atlante-funded bailout on Friday) and it looks like this one still has plenty of room to run. Following reports that Italy was planning either a direct €40BN liquidity injection, a plan reportedly shot down by Merkel, as well as an EU cleared proposal for a €150 billion liquidity backstop, last night the FT ran a story suggesting that Italy PM Renzi is prepared to defy Brussels to inject public funds into the banking system should it come under severe systematic stress, and so break the bail-in principles of EU regulation following the upcoming European stress tests which, at least based on Italy’s panicked response, suggest many Italian banks will fail.

    read more.

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July 5, 2016 Posted by | Economics | , , , , , , | Leave a comment

Dr. Jim Willie: Baseball, Hot Dogs, Apple Pie and The Jackass

www.goldenjackass.com

Click on image to play interview MP3 file!

  • Baseball, Hot Dogs, Apple Pie and The Jackass
    by Turd Ferguson, http://www.tfmetalsreport.com/  
    On Thursday, our pal Jim Willie stopped by for another holiday weekend podcast. Making it even more special was conducting this program in our A2A format where our Vault subscribers got to ask the majority of the questions. The result is 90 minutes of compelling audio that you’re definitely going to want to hear. This was, as usual, great fun and extremely informative. Jim must have answered about 20 questions from listeners, covering topics as diverse as:

    * The current status of DeutscheBank
    * The impact of Brexit on the euro and NATO
    * Turkey’s “reconciliation” with Russia
    * The coming paradigm shift in the global monetary structure
    * Whether silver be included in any new, asset-backed global currency regime
    * His thoughts on a proper allocation between gold and silver
    * And much, much, much more.

    It’s going to be a long, 3-day weekend and US futures markets won’t re-open until late Monday. So sit back, relax and enjoy yourself some Jackass. I promise you will not be disappointed.

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July 2, 2016 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , , , , , , , | Leave a comment

Deutsche Bank: World’s Most Systemically Dangerous Bank Crashes Back To Record Lows

DeutscheBank-20160630

Here is the IMF's chart showing the key linkages of the world's riskiest bank: Deutsche Bank. Click in image to enlarge.

Here is the IMF’s chart showing the key linkages of the world’s riskiest bank: Deutsche Bank. Click in image to enlarge.

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July 1, 2016 Posted by | Economics | , , , , , , , , , | Leave a comment

Soros: Brexit Has “Unleashed” A Financial Crisis Similar to 2008

  • Soros is alluding to the (Illuminati plan) coming global financial, economic and currency meltdown that is to be triggered around Q42016.
  • Soros: Brexit Has “Unleashed” A Financial Crisis Similar to 2008
    by Tyler Durden, http://www.zerohedge.com 
    Prior to the Brexit vote, George Soros was one of the notable names who came out to implore the voters to decide to remain in the EU. At that time, Soros took scaremongering to a new level by writing an op-ed titled “The Brexit crash will make all of you poorer – be warned.” Following the referendum, Soros came back to write “the catastrophic scenario that many feared has materialized, making the disintegration of the EU practically irreversible.”

    In remarks made to the European Parliament in Brussels on Thursday, Soros made yet another round of dramatic statements. Expanding on comments made over the weekend about the “inevitable disintegration” of the EU, Soros said Britain’s decision to leave the European Union has “unleashed” a crisis in financial markets similar to the global financial crisis of 2007 and 2008.

    read more.
http://sputniknews.com/politics/20160626/1041963016/brexit-results-eu-dissolution.html

Click on image for article.

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July 1, 2016 Posted by | Economics, GeoPolitics | , , , , , , , , , | Leave a comment

Dr. Jim Willie: The Corruption Cannot Stop The Masses (Part 2&3)

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June 30, 2016 Posted by | Economics, GeoPolitics, Social Trends | , , , , , , , , , , , , , , , , , , , , , , , , , | Leave a comment

Peter Schiff: Huge Crisis! Gold Will Routinely Be Moving Up at $100 Clips

  • Peter Schiff: Brexit is the Match that Ignites the Powder Keg
    by Greg Hunter’s USAWatchdog.com
    Money manager Peter Schiff says don’t believe the so-called “Brexit” was the real cause of the recent chaos in the financial markets. Schiff explains, “If the global financial system and the markets were healthy, ‘Brexit’ would be a non-event.  I mean what difference does it make in the scheme of things if the UK is not part of the EU?  In a healthy economy, it would just shrug it off, but because we have anything else but a healthy financial system, it’s all a gigantic bubble.  It’s a house of cards.  That’s how fragile it is, and it’s all propped up with cheap money, negative interest rates and quantitative easing.  Everybody is confident that the central banks and politicians can keep these bubbles in the air that they are juggling.  Now, all of a sudden, something goes wrong that they didn’t expect.  It shows that the government is losing control, and this is the wake-up call.  This is what has everybody so scared. This is the match that ignites the powder keg, but the powder keg was there all along.”


    So is the Fed going to start more easy money and printing money because of the current financial chaos? Schiff says, “It may be the excuse because they were going to do it anyway.  The market is now pricing in a higher probability of a rate cut than a rate hike, but I said that back in December.  When the Fed first raised rates (December 2015), I said the next move is likely going to reduce them and not a second hike.  Now, the markets are coming around to my way of thinking, but it took Brexit to get them there.  I said back then it didn’t matter how we got there, the fact is, we are going there.  The Fed was just looking for an excuse to save face.  The real reason the Fed is going to cut rates is because this bubble economy can’t survive with even the smallest of rate hikes.  So, it’s the fundamental problems in the U.S. economy that are worrying the Fed.  It doesn’t want to admit that.  It doesn’t want undercut its own credibility because it’s pretending it saved us.  It doesn’t want to undercut Obama and Clinton because they are pretending we have this legitimate recovery.  So, now they have a face saving excuse to do what they were going to do anyway.  They will launch QE4 and cut rates and say there is nothing wrong with our economy.  It’s because of the problems with the global economy.”

    read more.

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June 30, 2016 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , , , , | Leave a comment

Gerald Celente: Globalists Are Going To Collapse World Economy

  • Published on Jun 28, 2016
    Gerald Celente gives Infowars his dire predictions for the world economy after the globalists were shocked by Brexit.

  • “If the Illuminati elites have their way”: the schedule according to Pastor Lindsey Williams, for global collapse is: 1 Oct 2016 to Jan 2017 approximately!

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June 29, 2016 Posted by | Economics, GeoPolitics, Social Trends | , , , , , , , , , , , , , , , , , , , , , | Leave a comment

These “Brexit” Market Moves Were Bigger Than Anything Seen In 2008… And What Comes Next

Euro_Stoxx50_registered_largest_ever_1_day_drop_after_Brexit

  • These “Brexit” Market Moves Were Bigger Than Anything Seen In 2008… And What Comes Next
    by Tyler Durden, http://www.zerohedge.com 
    When the general population is asked to define a moment of paradigmatic instability in the history of financial markets, inevitably 2008 – in which there was a unprecedented divergence between risk perception and the ultimate reality which saw Lehman fail and lead to the near collapse of the financial system – is the most cited answer. However, on Friday various markets saw volatile moves that put 2008 in the dust: in fact, the historic collapse in GBPUSD was not only far greater than any such move seen in history, but was an unprecedented 12-sigma move.

    As Bank of America notes, post Britain’s vote to Leave the EU, the Euro STOXX 50 experienced its largest ever 1-day loss, GBPUSD reached 30yr lows and EURJPY, EURUSD & 10yr Bunds experienced 1d moves that were more significant than on any day in 2008. Gaps in risk perception that were evident even as recently as last week (VSTOXX-VIX spread was as wide as 20pts), may narrow further as spillover risk to global assets remains high. Indeed the Critical Stress Indicator of BofAML’s GFSITM index triggered on 13-Jun,
    suggesting cross asset stresses had risen by enough to lead to widespread contagion, absent policy intervention.

    read more.

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June 29, 2016 Posted by | Economics | , , , , , , | Leave a comment

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