Emerging Markets Crack as $3.9 Trillion Funds Unwind: Currencies

June 20 (Bloomberg) — Investors are pulling money from emerging markets at the fastest pace in two years as slowing economic growth and the prospect of less global stimulus sink stocks, bonds and currencies from India to Brazil.

More than $19 billion left funds investing in developing-nation assets in the three weeks to June 12, the most since 2011, according to EPFR Global. Foreign investors dumped an unprecedented $5.6 billion of Brazilian stocks and $3.4 billion of Indian bonds this month, exchange data show. The tumble that has sent JPMorgan Chase & Co.’s emerging-currency index down 1.4 percent this quarter extended today as the rupee and Turkish lira hit record lows.

“These are pre-quake tremors: something big is coming,” Stephen Jen, the co-founder of hedge fund SLJ Macro Partners LLP, said in a phone interview from London on June 12. “There’s tremendous deceleration in emerging markets. You may see crisis-like price actions without having a crisis.”

 The reversal of the $3.9 trillion of cash that flowed into emerging markets the past four years has been compounded by popular protests in Turkey and Brazil challenging government policies on everything from fighting inflation to developing infrastructure. China, the largest developing economy, is forecast by the World Bank to expand at the slowest pace since 1999 this year, while current-account deficits in Indonesia, Brazil and Chile have grown to the widest in a decade.

“While cyclical opportunities will come and go, the era of structural outperformance for EM is probably over,” Dominic Wilson, the chief markets economist at New York-based Goldman Sachs Group Inc. who predicted the rise of the biggest emerging markets in 2003, wrote in a report dated yesterday.

Cheap Money...(continued)

French Submarine ‘Sinks’ Entire US Aircraft Carrier Group During Wargames

A series of joint naval drills between the United States and France recently didn’t quite turn out the way the US, no doubt, expected. The practice scenario ended with the French nuclear submarine that was acting the part of an enemy ship “sinking” the American aircraft carrier and most of its escort.The exercises took place over 10 days starting in mid-February off the coast of Florida. The French nuclear attack submarine (SNA) — named Saphir — joined US Carrier Strike Group 12, comprising the aircraft carrier USS Theodore Roosevelt (nicknamed the “Big Stick”), several Ticonderoga cruisers or Arleigh Burke destroyers and a Los Angeles class nuclear attack submarine.

Read more: http://sputniknews.com/news/20150306/1019130173.html#ixzz3TuygabP7

CIA Report: Israel will fall in 20 years

A study conducted by the Central Intelligence Agency (CIA) has cast doubt over Israel’s survival beyond the next 20 years. The CIA report predicts “an inexorable movement away from a two-state to a one-state solution as the most viable model based on democratic principles of full equality that sheds the looming specter of colonial apartheid while allowing for the return of the 1947-1948 and 1967 refugees. The latter being the precondition for sustainable peace in the region.”

Neturei Karta, an organization of anti-Zionist rabbis from Munsey, New York, traveled with the Viva Palestina caravan, along with Cynthia McKinney and M1 of dead prez. During their 24 hours in Gaza, Rabbi David Weissman said during a press conference with Gazan Prime Minister Ismail Haniyeh that Jews, Christians and Muslims had coexisted peacefully in Muslim countries for centuries prior to the birth of Zionism. He asked the people of Gaza to join him in praying for the peaceful dismantlement of the state of Israel. – Photo: Courtesy of Cynthia McKinney

Neturei Karta, an organization of anti-Zionist rabbis from Munsey, New York, traveled with the Viva Palestina caravan, along with Cynthia McKinney and M1 of dead prez. During their 24 hours in Gaza, Rabbi David Weissman said during a press conference with Gazan Prime Minister Ismail Haniyeh that Jews, Christians and Muslims had coexisted peacefully in Muslim countries for centuries prior to the birth of Zionism. He asked the people of Gaza to join him in praying for the peaceful dismantlement of the state of Israel. – Photo: Courtesy of Cynthia McKinney

 

The study, which has been made available only to a certain number of individuals, further forecasts the return of all Palestinian refugees to the occupied territories, and the exodus of 2 million Israelis – who would move to the U.S. in the next 15 years.

“There are over 500,000 Israelis with American passports and more than 300,000 living in the area of just California,” international lawyer Franklin Lamb said in an interview with Press TV on Friday, adding that those who do not have an American or Western passport have already applied for them.

“So I think the handwriting at least among the public in Israel is on the wall … [which] suggests history will reject the colonial enterprise sooner or later,” Lamb stressed.    READ

Facts All US Citizens Need to Know About Israel and Palestine

  • Gaza (along with the West Bank and East Jerusalem) is occupied Palestinian territory under international law, determined by the vast majority of the world, as well as the highest court in the world, the UN’s International Court of Justice. Gaza cannot commit aggression against Israel, since Israel is in constant and continual commission of illegal aggression against Palestine by occupying it (illegally and sadistically blockading it and frequently committing terrorism against its civilians, including by targeting them with chemical weapons provided by US taxpayers – see “Rain of Fire” by Human Rights Watch). As documented by Amnesty Int’l, Human Rights Watch, and many others, Israel intentionally targets and murders civilians, including children, en masse.
  • But, even ignoring international law and that Gaza is under illegal Israeli occupation, Gaza did not initiate this current round of violence; Israel did:
    • Western/US/Israeli propaganda says the violence started with the kidnapping and killing of three Israeli youths on June 12th. That is a lie:
    • On May 20th, the Israeli government murdered 2 unarmed Palestinian teens, one on video, and wounded a third.
    • The firing of pathetic scrap metal rockets from impoverished Gaza, which have killed no one, were in fact launched in response to earlier Israeli bombings, killings, assassinations, and arrests of Palestinians, including children.
  • Since the year 2000, Israel has killed 1,500 Palestinian children, while Palestinians have killed 132 Israeli children. That means Israel has killed over 1,000% percent more Palestinian children than vice versa.

READ

The U.S. Elite Run a Ukrainian Genocide While American Public Are Ignorant of It

On Wednesday, July 2nd, Ukrainian President Petro Poroshenko resumed unlimited war against the residents of southeastern Ukraine, whom he calls “terrorists” for their wanting not to be killed by his troops. European leaders (especially Merkel of Germany, Hollande of France, and Putin of Russia) urged him not to resume his bombing campaign against the southeast, but the U.S. (specifically President Obama) supports the bombings, and that’s enough for Poroshenko; so, he did it. As the U.S. State Department said, “he has a right to defend his country.” Reuters reports that Poroshenko gave as his reason for the resumption, “to rid Ukraine of ‘parasites’.”  Adolf Hitler had given the same reason for ethnically cleansing his country.

Here are videos and photos of the Obama Administration’s sponsored ethnic cleansing to reduce the population in the areas of Ukraine that had voted overwhelmingly “the wrong way” in Ukraine’s final nationwide election, in 2010:  the areas of Ukraine that overwhelmingly chose as Ukraine’s President the man whom Obama’s coup overthrew in February 2014. After this ethnic cleansing, maybe Ukraine can have another nationwide election, which will produce the type of outcome that the U.S. Government likes. But on 25 May 2014, we held in Ukraine an election where people voted only in the pro-American portion of Ukraine, and only leaders who were acceptable to the U.S. White House were allowed onto the ballot.

America’s “news” media are not reporting on America’s ethnic-cleansing program in Ukraine. It’s happening in the dark, as far as the American public are concerned: they don’t know about it. But, here it is: this, is what they are hiding from you….READ

Iraq crisis: Islamist militants attack Tikrit and near Baghdad after 500,000 are forced to flee Mosul

Sunni insurgents advancing on Baghdad after taking Mosul have captured the city of Tikrit, the home town of Saddam Hussein, as government forces disintegrate and fail to offer resistance. Iraqi soldiers and police are reported to have discarded their uniforms, changed into civilian clothes and fled after firing only a few shots. The offensive led by the fundamentalist Islamist group Isis appears to be turning into a general uprising by Iraq’s Sunni Arab community that lost power when Iraq was invaded by the US and its allies in 2003. Militants from Isis have taken the refinery town of Baiji on the Tigris, which is also the site of a power station supplying Baghdad. Some 250 guards protecting the refinery withdrew after militant fighters asked local sheikhs by mobile phone to tell them to pull out or face a fight to the death…more

Le Pen: We need to destroy the European Soviet Union

SPIEGEL: Ms. Le Pen, having won 25 percent of the French vote, your Front National party stands as one of the primary beneficiaries of the May 25 European Parliament election. How could such a thing come to pass?

Le Pen: The French want to regain control of their own country. They want to determine the course of their own economy and their immigration policies. They want their own laws to take precedence over those of the European Union. The French have understood that the EU does not live up to the utopia they were sold. It has distanced itself significantly from a democratic mode of operation.

SPIEGEL: Yet, prior to the election, it was said that the establishment of lead candidates for the two biggest groups–Jean-Claude Juncker for the center-right and Martin Schulz for the center-left–would strengthen democracy in the EU….more

1,200 Ukrainian Soldiers Dead in Slaviansk Special Op – People’s Mayor

RIGA, May 29 (RIA Novosti) – About 1,200 Ukrainian army soldiers have been killed during a special operation in Slaviansk, and eight helicopters and 15 armored vehicles were destroyed, Slaviansk people’s mayor Vyacheslav Ponomaryov said Thursday.

“According to our information, the Ukrainian army has the following losses and damages: 1,200-1,300 people were killed, eight helicopters, 15 armored transport vehicles, and three [artillery] weapons destroyed. They are suffering huge losses. I’m speaking only about Slaviansk,” Ponomaryov said in an interview with the Latvian radio station Baltkom…more

Government Plan Would Transform Israel Into The World’s First Cashless Society

Will Israel be the first cashless society on the entire planet?  A committee chaired by Israeli Prime Minister Benjamin Netanyahu’s chief of staff has come up with a three phase plan to “all but do away with cash transactions in Israel”.  Individuals and businesses would still be permitted to conduct cash transactions in small amounts (at least initially), but the eventual goal is to force Israeli citizens to conduct as much business as possible using electronic forms of payment.  In fact, it has been reported that Israeli officials believe that “cash is bad” because it fuels the underground economy and allows people to avoid paying taxes.  It is hoped that requiring most transactions to be conducted in cash will reduce crime and help balance the national budget.  And once 98 or 99 percent of all transactions are cashless, it will not be difficult for the Israeli government (or any other government) to go the rest of the way and ban cash transactions altogether.  But is a cashless society actually desirable?  This is a question that people all over the world will have to start asking as governments increasingly restrict the use of cash...more

 

Retail Death Rattle Grows Louder

The definition of death rattle is a sound often produced by someone who is near death when fluids such as saliva and bronchial secretions accumulate in the throat and upper chest. The person can’t swallow and emits a deepening wheezing sound as they gasp for breath. This can go on for two or three days before death relieves them of their misery. The American retail industry is emitting an unmistakable wheezing sound as a long slow painful death approaches.

It was exactly four months ago when I wrote THE RETAIL DEATH RATTLE. Here are a few terse anecdotes from that article:

The absolute collapse in retail visitor counts is the warning siren that this country is about to collide with the reality Americans have run out of time, money, jobs, and illusions. The exponential growth model, built upon a never ending flow of consumer credit and an endless supply of cheap fuel, has reached its limit of growth. The titans of Wall Street and their puppets in Washington D.C. have wrung every drop of faux wealth from the dying middle class. There are nothing left but withering carcasses and bleached bones…more

NAFTA’s Impact on US Workers

The North American Free Trade Agreement (NATFA) was the door through which American workers were shoved into the neoliberal global labor market.
By establishing the principle that U.S. corporations could relocate production elsewhere and sell back into the United States, NAFTA undercut the bargaining power of American workers, which had driven the expansion of the middle class since the end of World War II. The result has been 20 years of stagnant wages and the upward redistribution of income, wealth and political power.
NAFTA affected U.S. workers in four principal ways. First, it caused the loss of some 700,000 jobs as production moved to Mexico. Most of these losses came in California, Texas, Michigan, and other states where manufacturing is concentrated. To be sure, there were some job gains along the border in service and retail sectors resulting from increased trucking activity, but these gains are small in relation to the loses, and are in lower paying occupations. The vast majority of workers who lost jobs from NAFTA suffered a permanent loss of income…more

*What’s most interesting is how NAFTA paved the way for China to take over*

The Secret History of How Banks Assumed Control of the U.S. Economy

With U.S. inequality at its highest point since 1928 and Wall Street bonuses hitting pre-2008 levels, we look at the 100-year history of secret collusion between Washington and the financial industry. In her new book, ” All the Presidents’ Bankers: The Hidden Alliances that Drive American Power,” financial journalist Nomi Prins explores how a small number of bankers have played critical roles in shaping a century’s worth of financial, foreign and domestic policy in the United States. Prins examines how these relationships have influenced events from the creation of the Federal Reserve, the response to the Great Depression, and the founding of the International Monetary Fund and the World Bank. Now a senior fellow at Demos, Prins is a former managing director at Bear Stearns and Goldman Sachs, and previously an analyst at Lehman Brothers and Chase Manhattan Bank…more

Ukraine: Vladimir Putin threatens to turn off the gas In threat to switch off Ukraine’s gas, Russian president acknowledges gas deliveries to the European Union would also be jeopardised

President Vladimir Putin threatened the “extreme measure” on Thursday of cutting off Russian gas for Ukraine unless the country pays in advance for all its supplies.

In a stark letter to 18 world leaders, Mr Putin acknowledged that, in such a “critical situation”, gas deliveries to the European Union would also be putin4jeopardised.

The EU buys a third of its gas from Russia, about half of which arrives through pipelines running across Ukraine. But Mr Putin accused the EU of causing the current crisis, leaving Russia with “no alternative” but to toughen its approach…more

Putin Expected to Sign China Gas Deal as Crisis Forces Hand

Vladimir Putin is more likely to sign a 30-year deal to supply pipeline gas to China next month after more than a decade of false starts because the crisis in Ukraine is forcing Russia to look for markets outside Europe.putin3

While Putin and President Xi Jinping will make the final decision in Beijing next month, Russia’s need for new customers means it’s pushing to complete a deal first mooted in 1997, a manager at gas-export monopoly OAO Gazprom (GAZP) and a government official said, asking not to be named because talks are ongoing. In China yesterday, Russia’s deputy prime minister said he “hoped” a deal would be signed in…more

Putin Threatens Ukraine’s Imports to Turn Economic Screw

President Vladimir Putin told his government to develop plans to replace imports from Ukraine and said Russia can’t subsidize its neighbor permanently, increasing economic pressure as the government in Kiev battles separatists.putin2

Russia “continues to provide economic support and subsidize Ukraine’s economy with hundreds of millions and billions of dollars,” Putin told a cabinet meeting outside Moscow yesterday. “This situation, of course, can’t go on forever.”

Putin urged talks before possibly requiring Ukraine to make advance payments for natural gas, and Prime Minister Dmitry Medvedev said the country owes Russia $16.6 billion in energy debts. Ukraine’s government, which is trying to accelerate approval for an international bailout, said yesterday it may use force to remove pro-Russian activists from official buildings in the east…more

Crude Oil and the Syrian Conflict

syriaqatarpipeline

Noticed something whirring overhead? Must be the smell of drama. It seems that the Arab countries are willing to fund the entire operation of any U.S. military adventure in Syria. Says, Secretary of State John Kerry, “That’s how dedicated they (Arab Gulf states) are at this. That’s not in the cards, and nobody’s talking about it, but they’re talking in serious ways about getting this done”.

But why would the Arab Gulf states want to pay for the marauding invasion of Syria?

Arguably, Syria isn’t a major producer of oil and gas. Depletion of oil reserves is a vital problem facing the energy sector of the country. The oil production has decreased over the years. Syria had 2,500,000,000 barrels (400,000,000 m3) of petroleum reserves as of January 2010. So, the whole hullaballoo about Syria is definitely not about oil in the Syrian territory. What then?

Because of its strategic location vis-à-vis energy transit routes. As it turns out, many key energy transit routes to Europe run through Syria…more

Putin Dresses Down The Group of Eight

Below is a translation from As-Safir, a Lebanese newspaper, July 6, 2013, by Arabic-English translator Eric Mueller. As the translator was not present at the Group of Eight meeting, he cannot vouch for the accuracy of the report, only for the accuracy of the translation. The report by Dawud Rimal does reflect Putin’s no-nonsense manner of speaking. The report from As-Safir contrasts with the US coverage.putin

Diplomatic sources: Putin tells G8 “You want Asad to resign. Look at the leaders you’ve made in the Middle East.”

By Dawud Rimal

Beirut: A diplomatic source has reported that the West has been discussing for some time the issue of the escalating role of Islamists in Lebanon and the Arab countries. The source reports that this discussion might wind up concluding that there is a need to rein in the role of the Islamists. It is along this line of thinking that the West has been encouraging the Lebanese regular army since the ‘Abra Battle. [A two-day battle between…more

101M Get Food Aid from Federal Gov’t; Outnumber Full-Time Private Sector Workers

(CNSNews.com) – The number of Americans receiving subsidized food assistance from the federal government has risen to 101 million, representing roughly a third of the U.S. population. The U.S. Department of Agriculture estimates that a total of 101,000,000 people currently participate in at least one of the 15 food programs offered by the agency, at a cost of $114 billion in fiscal year 2012. That means the number of Americans receiving food assistance has surpassed the number of full-time private sector workers in the U.S. According to the Bureau of Labor Statistics (BLS), there were 97,180,000 full-time private sector workers in 2012….more

Bloodshed and chaos in Egypt with more than 50 dead

Cairo (CNN) — Top Egyptian security officials defended army and police actions in clashes Monday in Cairo that led to the deaths of more than 50 people, saying they were defending the Republican Guard headquarters against EgyptJuly2013 attackers.  Health Ministry official Khaled al-Khatib said 51 died and 435 others were wounded when Egyptian security forces fought with supporters of deposed President Mohamed Morsy and the Muslim Brotherhood outside the headquarters….more

Eurozone crisis live: Italy denies wrongdoing over derivative contracts

Euro DiceItaly is reportedly facing losses of around €8bn on controversial derivative contracts taken out in the late 1990s, and restructured at the height of the eurozone crisis.

Confidential government papers seen by the Financial Times suggest the Italian Treasury is sitting on an €8bn loss after restructuring eight debt contracts with foreign banks in early 2012, at what appear to be poor terms.

The FT explains that the 29-page report is fascinating both for what it shows, and what it doesn’t:

While the report leaves out crucial details and appears intended not to give a full picture of Italy’s potential losses, experts who examined it told the Financial Times the restructuring allowed the cash-strapped Treasury to stagger payments owed to foreign banks over a longer period but, in some cases, at more disadvantageous terms for Italy.

The report does not name the banks or give details of the original contracts – questions that worried the state auditors – but the experts said they appeared to date back to the period in the late 1990s. At that time, before and just after Italy entered the euro, Rome was flattering its accounts by taking upfront payments from banks in order to meet the deficit targets set by the EU for joining the first wave of 11 countries that adopted the euro in 1999….more

Obama Pledges Indirect Support to Al Qaeda. McCain Applauds.

President Obama has promised to send military aid to the rebel forces in Syria. Senator McCain and ex-President Clinton both had publicly chastised Obama for hesitating. On Tuesday evening, Clinton warned Obama that he risked looking like a “total wuss” and a “total fool” if he continued to sit to the sidelines. On Wednesday, Obama made his pledge to do what Clinton recommended. The White House has not yet identified which accusation President Obama is trying to avoid: being a total wuss or a total fool. This announcement was good news for the Jabhat al Nusra Front, which is one of the rebel groups. Its chief recently swore allegiance to Sheik Ayman al-Zawahri, who is generally regarded as having replaced Osama bin Laden as the head of Al Qaeda. USA Today reports the following….more

Francis: “When stock markets drop ten points it’s ‘a tragedy’, when one man dies it’s the norm”

Francis dedicated this week’s General Audience to the importance of countering our culture of waste. “Throwing food away is like stealing from the tables of the poor,” the Pope said

On World Environmental Day Pope Francis took the opportunity during the General Audience to send out “a strong reminder of the need to eliminate the waste and disposal of food,” Vatican Radio reports. In today’s catechesis, the Pope firmly rejected today’s uncontrolled “culture of waste”, disposability and quick consumption, which leads to the worship of money and stock markets. “This “culture of waste” tends to become the common mentality that infects everyone. Human life, the person is no longer perceived as a primary value to be respected and protected, especially if poor or disabled, if not yet useful – such as the unborn child – or no longer needed – such as the elderly. This culture of waste has made us insensitive even to the waste and disposal of food, which is even more despicable when all over the world, unfortunately, many individuals and families are suffering from hunger and malnutrition. Once our grandparents were very careful not to throw away any leftover food,” the Vatican Radio reported the Pope saying….more

Banks ‘still leave small firms in the cold’ a year after the Government launched emergency scheme to help rescue them

Small businesses are being ‘left out in the cold’ nearly a year after the Government launched an emergency cash lifeline to rescue them, official figures revealed yesterday. On another dire day for Britain’s banks, the Bank of England warned net lending continues to drop sharply, down £300million between January and March. Net lending is the total amount handed out by banks, building societies and other lenders, minus the total amount repaid by their customers...more

China Is Reaping Biggest Benefits of Iraq Oil Boom

BAGHDAD — Since the American-led invasion of 2003, Iraq has become one of the world’s top oil producers, and China is now its biggest customer.

China already buys nearly half the oil that Iraq produces, nearly 1.5 million barrels a day, and is angling for an even bigger share, bidding for a stake now owned by Exxon Mobil in one of Iraq’s largest oil fields.

“The Chinese are the biggest beneficiary of this post-Saddam oil boom in Iraq,” said Denise Natali, a Middle East expert at the National Defense University in Washington. “They need energy, and they want to get into the market.”

Before the invasion, Iraq’s oil industry was sputtering, largely walled off from world markets by international sanctions against the government of Saddam Hussein, so his overthrow always carried the promise of renewed access to the country’s immense reserves. Chinese state-owned companies seized the opportunity, pouring more than $2 billion a year and hundreds of workers into Iraq, and just as important, showing a willingness to play by the new Iraqi government’s rules and to accept lower profits to win contracts….more

**We have a suspicion that the only ones that will benefit are the oil companies. None of it will ever make it home & the cost of this “event” went from 50 billion to 2 trillion (on the low side)

The European Union wants to exempt state control of utilities and support for creative industries from free trade talks with the United States….

The European Union wants to exempt state control of utilities and support for creative industries from free trade talks with the United Statesdue to start next month, the latest draft of Brussels’ negotiating mandate showed on Tuesday.  The draft outlines several exceptions that preserve EU states’ control over sensitive sectors, including the power and water industries and government controlled infrastructure and are likely to be the main areas it seeks to cordon off from negotiations. Senior officials including EU trade chief Karel De Gucht and British Prime Minister David Cameron have called for the bloc to come to the table with a completely open mind and officials say it is unlikely further substantial exemptions will be added….more

Thanks To QE Bernanke Has Injected Foreign Banks With Over $1 Trillion In Cash For First Time Ever

Two years ago, Zero Hedge first made the observation that the bulk of Fed reserves (also known simply as “cash created out of thin air” because money is first and foremost fungible no matter what textbook theoreticians may claim, and the only cash allocation preference is the capital allocation IRR analysis) had been parked not with US banks, but with foreign banks with US-based operations. We followed that with more analyses, showing explicitly how the Fed was providing a constant cash injection to foreign banks courtesy of the rate on overnight reserves which is the amount Fed pays to banks that hold reserves with it, as the bulk of reserves continued to end up with foreign banks – a situation set to become a huge political storm some time in 2014-2015 when the IOER has to rise and the Fed is “found” to have injected tens of billions of “interest” not into US banks but in foreign banks operating in the US, and which then can upstream the “profits” to insolvent offshore domiciled holding companies….more

Europe Opens $80 Trillion Shadow Banking Pandora’s Box: Will Seek To Collapse Repo “Collateral Chains”

In what may be the most important story of the day, or maybe year, for a world in which there already is an $11 trillion shortfall in high-quality collateral (and declining every day courtesy of Ben’s monetization of Treasury paper) so needed to support the deposit-free liability structures of the shadow bankingsystem (as most recently explained here), Bloomberg has just reported that Europe may begin a crackdown on that most important credit money conduit: the $80 trillion+ global shadow banking system, by effectively collapsing collateral chains, and by making wanton asset rehypothecation a thing of the past, permitted only with express prior permission, which obviously will never come: who in their right mind would allow a bank to repledge an asset which may be lost as part of the counterparty carnage should said bank pull a Lehman. The result of this, should it be taken to completion, would be pervasive liquidations as countless collateral chain margin calls spread, counterparty risk soars all over again, and as the scramble to obtain the true underlying assets finally begins.

From Bloomberg:

Banks and brokers face a clampdown on using assets they hold for clients as collateral for their own trades as part of European Union moves to bolster market stability and rein in shadow banking….more

Iraq: Baghdad Car Bomb Attacks Kill ‘Over 50’

Baghdad car bomb attacks

A wave of bomb attacks in Shia neighbourhoods across Baghdad has killed more than 50 people. Iraqi officials said several parked cars packed with explosives detonated across the city, killing and wounding dozens. Reuters said over 50 people had died while the Associated Press put the day’s death toll at 57.  Police and hospital officials reported deadly explosions in the largely Shia neighbourhoods of Sabi al Boor, Bayaa, Kazimiyah, Sadria, and al Maalif, where six people were killed and 12 wounded when back-to-back blasts hit an open air market…more

10 Scenes From The Economic Collapse That Is Sweeping Across The Planet

When is the economic collapse going to happen?  Just open up your eyes and take a look around the globe.  The next wave of the economic collapse may not have reached Wall Street yet, but it is already deeply affecting billions of lives all over the planet.  Much of Europe has already descended into a deep economic depression, very disturbing economic data is coming out of the second and third largest economies on the globe (China and Japan), and in most of the world economic inequality is growing even though 80 percent of the global population already lives on less than $10 a day.  Just because the Dow has been setting brand new all-time records lately does not mean that everything is okay.  Remember, a bubble is always the biggest right before it bursts.  The next major wave of the economic collapse is already sweeping across Europe and Asia and it is going to devastate the United States as well.  I hope that you are ready...more

Washington & Wall Street: Ben Bernanke’s Global Inflation Strategy

The Bank of Japan has embarked on a deliberate act of economic warfare, aimed in part against China and the other nations of Asia. The attack is in the form of expansion of Japan’s money supply and the related decline in the value of the yen, this to boost Japan’s economy. The Japanese are desperate to boost economic activity, albeit by imitating the Fed’s own failed pro-inflation policies....more

China Moves Against the Dollar

The following video by Storm Clouds Gathering provides an excellent summary of continuing Chinese efforts to chip away at the US dollar. These include a recent trade agreement between China and Australia to use the yuan and Australian dollar – rather than the US dollar – in bilateral trade. China entered into a similar trade agreement with Russia in 2010 and with Japan in 2011. Another major concern for the Obama administration is recent massive Chinese gold purchases, which suggest they may intend to create a gold-backed currency to rival the US dollar….here

China challenges Japan’s ownership of Okinawa

Japan has lodged a diplomatic protest with China over an article in a state-run publication that challenged Japan’s ownership of Okinawa, home to major US bases, officials said today.

The People’s Daily, the mouthpiece of the ruling Communist Party, yesterday published a call for a review of Japan’s sovereignty over Okinawa, suggesting that Beijing may be the rightful owner.

The call came as the two countries are already at loggerheads over islands in the East China Sea.

“We have protested both in Tokyo and Beijing over the commentary issued by the People’s Daily, followed by a Chinese foreign ministry comment,” a Japanese foreign ministry official in charge of Chinese affairs said….more

Will Millennials Become Generation X-treme?

Polarization may have legs. A Harvard study suggests that young Americans are becoming more divided politically, giving rise to a chilling thought: The so-called millennials could become “Generation X-treme.”

“Young adults seem to have the same view about politics as the rest of us,” said Esten Perez, communications director for the Institute of Politics at Harvard. “And that’s scary.”

The generation of adults between ages 18 and 29 is often considered by political observers and pop-sociologists to be a source of hope–measurably more tolerant, diverse, global-minded and adaptable than their parents and grandparents. And yet, millennials might be no less divided….more

The institute released an update this week to its 13-year-old study of young adults. It is packed with clues about the nation’s future, including the potential durability of polarization.

Syria: Attack on military facility was a ‘declaration of war’ by Israel

Damascus, Syria (CNN) — A series of massive explosions illuminated the dark sky over Damascus early Sunday, igniting renewed claims that Israel has launched attacks into the war-torn country.

A top Syrian official told CNN in an exclusive interview that the attack was a “declaration of war” by Israel. Syria’s government said the target was a military research facility outside Damascus.

Syrian authorities vowed to retaliate against Israel but did not specify what action they would take….more

The Crisis Is Imminent: “When The Real Crash Comes It Will Be Worse Than the Great Depression”

“The United States is like the Titanic, and I’m here with the lifeboat trying to get people to leave the ship… I see a real financial crisis coming for the United States.”   Peter Schiff August 2006

In 2006, when he faced off with many well known Titans of investing and warned of an impending financial disaster and economic collapse, Peter Schiff was laughed at by his colleagues. He urged Americans to exit financial markets and take steps to protect themselves before the wealth held in their savings accounts, retirement investments and real estate was wiped out.

Few listened.

We know what happened next.

Now, those same financial experts who publicly vilified Schiff for his predictions six years ago are at it again. Many, including our politicians, central bankers and leading economists, have unequivocally stated that the worst is behind us, and that a global recovery is on the horizon….more

20 Signs That The Next Great Economic Depression Has Already Started In Europe

The next Great Depression is already happening – it just hasn’t reached the United States yet. Things in Europe just continue to get worse and worse, and yet most people in the United States still don’t get it.

All the time I have people ask me when the “economic collapse” is going to happen. Well, for ages I have been warning that the next major wave of the ongoing economic collapse would begin in Europe, and that is exactly what is happening. In fact, both Greece and Spain already have levels of unemployment that are greater than anything the U.S. experienced during the Great Depression of the 1930s. Pay close attention to what is happening over there, because it is coming here too. You see, the truth is that Europe is a lot like the United States.

We are both drowning in unprecedented levels of debt, and we both have overleveraged banking systems that resemble a house of cards. The reason why the U.S. does not look like Europe yet is because we have thrown all caution to the wind. The Federal Reserve is printing money as if there is no tomorrow and the U.S. government is savagely destroying the future that our children and our grandchildren were supposed to have by stealing more than 100 million dollars from them every single hour of every single day. We have gone “all in” on kicking the can down the road even though it means destroying the future of America….more

Spain’s economy shrinks for seventh straight quarter

(Reuters) – Spain fell deeper into recession in the first three months of the year, the seventh straight quarter it has seen its economy shrink, data showed on Tuesday.

Rising exports and weaker imports, reported separately, provided some relief by cutting the trade deficit.

The data showing further contraction will add to a Europe-wide debate about whether countries should tone down austerity programs intended to cut debt in favor of more growth-focused policies, particularly given concern about rising unemployment…..more

Pope: A worldly Church cannot transmit the Gospel

(Vatican Radio) A worldly Church is a weak Church. The only way to stop this from happening is to entrust the Church to the Lord through constant prayer. This was the message at the heart of Pope Francis’ homily during Mass Tuesday morning, celebrated with staff from the Administration of the Patrimony of the Apostolic See, also known as APSA. Emer McCarthy reports:
“We can safeguard the Church, we can cure the Church, no? We do so with our work, but what’s most important is what the Lord does : He is the only One who can look into the face of evil and overcome it. The prince of the world comes but can do nothing against me: if we don’t want the prince of this world to take the Church into his hands, we must entrust it to the One who can defeat the prince of this world. Here the question arises: do we pray for the Church, for the entire Church? For our brothers and sisters whom we do not know, everywhere in the world? It is the Lord’s Church and in our prayer we say to the Lord: Lord, look at your Church … It’ s yours. Your Church is [made up of ] our brothers and sisters. This is a prayer that must come from our heart”.
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Philadelphia abortion clinic horror

Infant beheadings. Severed baby feet in jars. A child screaming after it was delivered alive during an abortion procedure. Haven’t heard about these sickening accusations?

It’s not your fault. Since the murder trial of Pennsylvania abortion doctor Kermit Gosnell began March 18, there has been precious little coverage of the case that should be on every news show and front page. The revolting revelations of Gosnell’s former staff, who have been testifying to what they witnessed and did during late-term abortions, should shock anyone with a heart.

NBC-10 Philadelphia reported that, Stephen Massof, a former Gosnell worker, “described how he snipped the spinal cords of babies, calling it, ‘literally a beheading. It is separating the brain from the body.” One former worker, Adrienne Moton, testified that Gosnell taught her his “snipping” technique to use on infants born alive.

Massof, who, like other witnesses, has himself pleaded guilty to serious crimes, testifiedIt would rain fetuses. Fetuses and blood all over the place.” Here is the headline the Associated Press put on a story about his testimony that he saw 100 babies born and then snipped: “Staffer describes chaos at PA abortion clinic.”…more

Everything is Rigged: The Biggest Financial Scandal Yet

Conspiracy theorists of the world, believers in the hidden hands of the Rothschilds and the Masons and the Illuminati, we skeptics owe you an apology. You were right. The players may be a little different, but your basic premise is correct: The world is a rigged game. We found this out in recent months, when a series of related corruption stories spilled out of the financial sector, suggesting the world’s largest banks may be fixing the prices of, well, just about everything.[Image]

You may have heard of the Libor scandal, in which at least three – and perhaps as many as 16 – of the name-brand too-big-to-fail banks have been manipulating global interest rates, in the process messing around with the prices of upward of $500 trillion (that’s trillion, with a “t”) worth of financial instruments. When that sprawling con burst into public view last year, it was easily the biggest financial scandal in history – MIT professor Andrew Lo even said it “dwarfs by orders of magnitude any financial scam in the history of markets.”

That was bad enough, but now Libor may have a twin brother. Word has leaked out that the London-based firm ICAP, the world’s largest broker of interest-rate swaps, is being investigated by American authorities for behavior that sounds eerily reminiscent of the Libor mess. Regulators are looking into whether or not a small group of brokers at ICAP may have worked with up to 15 of the world’s largest banks to manipulate ISDAfix, a benchmark number used around the world to calculate the prices of interest-rate swaps.

Interest-rate swaps are a tool used by big cities, major corporations and sovereign governments to manage their debt, and the scale of their use is almost unimaginably massive. It’s about a $379 trillion market, meaning that any manipulation would affect a pile of assets about 100 times the size of the United States federal budget.

It should surprise no one that among the players implicated in this scheme to fix the prices of interest-rate swaps are the same megabanks – including Barclays, UBS, Bank of America, JPMorgan Chase and the Royal Bank of Scotland – that serve on the Libor panel that sets global interest rates….more

Spanish unemployment rate at record 27.16%

Spain’s unemployment rate soared to a new record of 27.16 percent of the workforce in the first quarter of 2013 as the number of those without jobs surpassed six million, official data showed on Thursday. The unemployment rate jumped from 26.02 percent in the previous quarter. The number of unemployed climbed by 237,400 people to 6.2 million, the National Statistics Institute said. Spain, once the motor of job creation in the 17-nation eurozone, is in a double dip recession, having yet to recover from the collapse in 2008 of a labour-intensive property boom in 2008 which had allowed economic growth to outpace the European union’s for more than a decade.  The Spanish economy, the eurozone’s fourth biggest, contracted by 1.37 percent last year, the second worst yearly slump since 1970, and the government forecasts it will shrink again by between 1.0 percent and 1.5 percent this year. Spain’s jobless rate fell to an almost 30-year low of 7.95 percent in the second quarter of 2007 at the peak of an economic boom that allowed the country to create more than half the new jobs in the euro zone between 2002 and 2005….more

IMF, ECB square off in Europe austerity debate

(Reuters) – A heated debate about Europe’s austerity drive flared back into life on Thursday with leading IMF and European Central Bank officials sharply at odds and Angela Merkel declaring that Germany required higher interest rates.

With the threat of the currency bloc’s break-up receding, some euro zone officials are saying now is the time to throttle back on debt-cutting drives because calmer financial markets will not react badly.

The International Monetary Fund is also pushing that prescription – for both the euro zone and Britain – but Germany and the ECB are opposed….more

Euro Zone Crisis Has Increased I.M.F.’s Power

FRANKFURT — When Wolfgang Schäuble, the German finance minister and war horse of European politics, celebrated his 70th birthday at a theater in Berlin last September, two of the most powerful women in the world offered warm words in his honor.  One was Chancellor Angela Merkel.  The other, delivering the keynote speech, was Christine Lagarde, the managing director of the International Monetary Fund.  Ms. Lagarde’s presence reflected her close, longtime friendship with Mr. Schäuble. But it also was a confirmation of the enormous stature that Ms. Lagarde and the I.M.F. have acquired in Europe as a result of the euro crisis.…more

A New Muslim Vision: Rebuilding Solomon’s Temple Together

The unique importance of the Temple Mount to Judaism and to Islam makes the location vulnerable to tensions and conflicts between Jews and Muslims. Usually, these incidents originate in rumors such as: “The Jews are coming today to bomb the mosques and build their Third Temple.” Obviously, false accusations and baseless suspicions like these turn the site from a holy place of prayer and love into a site of violent political demonstrations. And, consequently, potential escalation of tension brings more restrictions and discomfort to all. Who benefits from this? Surely not the believers.…more

Jobs, factory data point to slowing economy

(Reuters) – The number of Americans filing new claims for unemployment benefits rose last week and factory activity in the nation’s Mid-Atlantic region cooled in April, further signs of a moderation in economic growth.

Underscoring the softening growth outlook, another report on Thursday showed a gauge of future economic activity fell in March for the first time in seven months. They were the latest data to indicate a step-back in the economy after a brisk start to the year as tighter fiscal policy began to weigh....more

Stunning Facts About How the Banking System Really Works … And How It Is Destroying America

To understand the core problem in America today, we have to look back to the very founding of our country.

The Founding Fathers fought for liberty and justice. But they also fought for a sound economy and freedom from the tyranny of big banks:

“[It was] the poverty caused by the bad influence of the English bankers on the Parliament which has caused in the colonies hatred of the English and . . . the Revolutionary War.”
– Benjamin Franklin

“There are two ways to conquer and enslave a nation. One is by the sword. The other is by debt.”
– John Adams

“All the perplexities, confusion and distress in America arise, not from defects in their Constitution or Confederation, not from want of honor or virtue, so much as from the downright ignorance of the nature of coin, credit and circulation.”
– John Adams

“If the American people ever allow the banks to control issuance of their currency, first by inflation and then by deflation, the banks and corporations that grow up around them will deprive the people of all property until their children will wake up homeless on the continent their fathers occupied”.
— Thomas Jefferson

“I believe that banking institutions are more dangerous to our liberties than standing armies…The issuing power should be taken from the banks and restored to the Government, to whom it properly belongs.”
– Thomas Jefferson

“The Founding Fathers of this great land had no difficulty whatsoever understanding the agenda of bankers, and they frequently referred to them and their kind as, quote, ‘friends of paper money. They hated the Bank of England, in particular, and felt that even were we successful in winning our independence from England and King George, we could never truly be a nation of freemen, unless we had an honest money system. ”
-Peter Kershaw, author of the 1994 booklet “Economic Solutions”

Indeed, everyone knows that the American colonists revolted largely because of taxation without representation and related forms of oppression by the British. See this and this. But – according to Benjamin Franklin and others in the thick of the action – a little-known factor was actually the main reason for the revolution….more

German parliament backs Cyprus

(Reuters) – Germany’s lower house of parliament voted overwhelmingly on Thursday to grant Cyprus a 10 billion euro bailout that is designed to avert bankruptcy for the tiny Mediterranean island nation and keep it in the euro zone. Of the 601 lawmakers present in the Bundestag chamber, 487 backed the rescue, under which Cyprus has agreed to impose major losses on depositors, shutter its second largest bank and raise its corporate tax rate.  Separately, German parliamentarians also backed seven-year loan extensions for bailout victims Portugal and Ireland...more