Failure to save East Europe will lead to worldwide meltdown

[peaceandlove]

Failure to save East Europe will lead to worldwide meltdown

The unfolding debt drama in Russia, Ukraine, and the EU states of Eastern Europe has reached acute danger point.

By Ambrose Evans-Pritchard
Last Updated: 2:05AM GMT 15 Feb 2009

If mishandled by the world policy establishment, this debacle is big enough to shatter the fragile banking systems of Western Europe and set off round two of our financial Götterdämmerung.

Austria's finance minister Josef Pröll made frantic efforts last week to put together a €150bn rescue for the ex-Soviet bloc. Well he might. His banks have lent €230bn to the region, equal to 70pc of Austria's GDP.

"A failure rate of 10pc would lead to the collapse of the Austrian financial sector," reported Der Standard in Vienna. Unfortunately, that is about to happen.

Article continues: http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/4623525/Failure-to-save-East-Europe-will-lead-to-worldwide-meltdown.html

[piers2210]

Financial meltdown is inevitable.

7-11 November 2009...mark your diaries.

[peaceandlove]

Eastern European currencies crumble as fears of debt crisis grow

Currencies have crumbled across Eastern Europe on mounting fears of a debt crisis as foreign creditors withdraw from the region.

By Ambrose Evans-Pritchard
Last Updated: 7:23AM GMT 17 Feb 2009

Hungary’s forint fell to an all-time low on Monday, and Poland’s zloty slumped to the lowest in five years on plunging industrial output. Half of all loans to the private sector in Poland are in foreign currencies so borrowers face a severe debt shock after the 40pc fall of the zloty against the euro since August.

“We’re nearing the level were things could get out of hand,” said Hans Redeker, currency chief strategist at BNP Paribas.

Article continues: http://www.telegraph.co.uk/finance/financetopics/financialcrisis/4642259/Eastern-European-currencies-crumble-as-fears-of-debt-crisis-grow.html

[peaceandlove]

EU moves against six states over deficits

February 18, 2009

"As a result of the sharp global financial and economic crisis, EU public finances are under stress," said Almunia.

Article here: http://www.breitbart.com/article.php?id=CNG.152b41c3b0e96d42b4c9740bc714468 2.a41&show_article=1&catnum=0

[peaceandlove]

UK overshoots borrowing target

By Chris Giles, Economics Editor
Published: February 19 2009 10:33 | Last updated: February 19 2009 14:29

The public finances took a sharp turn for the worse in the crucial month of January as the recession and credit crisis hit corporate and personal tax revenues, making it almost impossible for the government to meet its borrowing target made in late November.

Banks Nationalized?
Excerpt:
In the official figures, the Office for National Statistics also announced it had decided that such is the government’s control over the Lloyds Banking Group that it would classify the company as a public corporation, joining Royal Bank of Scotland, Northern Rock and Bradford & Bingley as British banks with this status.

Full Article Here: http://www.ft.com/cms/s/0/35788e96-fe6d-11dd-b19a-000077b07658.html?nclick_check=1

[burgundia]

Eastern European currencies crumble as fears of debt crisis grow

Currencies have crumbled across Eastern Europe on mounting fears of a debt crisis as foreign creditors withdraw from the region.

By Ambrose Evans-Pritchard
Last Updated: 7:23AM GMT 17 Feb 2009

Hungary’s forint fell to an all-time low on Monday, and Poland’s zloty slumped to the lowest in five years on plunging industrial output. Half of all loans to the private sector in Poland are in foreign currencies so borrowers face a severe debt shock after the 40pc fall of the zloty against the euro since August.
“We’re nearing the level were things could get out of hand,” said Hans Redeker, currency chief strategist at BNP Paribas.

Article continues: http://www.telegraph.co.uk/finance/financetopics/financialcrisis/4642259/Eastern-European-currencies-crumble-as-fears-of-debt-crisis-grow.html

This is true. But many people realize that it is a manipulation on a big scale.

[peaceandlove]

More funny money. Why don't we all just start printing our own money.

Bank will write to Darling to begin 'printing money'

Bank of England rate-setting committee agrees unanimously to begin 'quantitative easing' and votes 8-1 for half point rate cut

From Times Online
February 18, 2009
Grainne Gilmore, Economics Correspondent

The Bank of England is set to begin "printing money" in a bid to boost the economy after its rate-setting committee unanimously agreed that its Governor must write to the Chancellor.

The minutes of the Bank's rate-setting meeting earlier this month showed that as well as voting 8-1 to cut rates to 1 per cent, the nine-strong Monetary Policy Committee (MPC) agreed that the Mervyn King, the Bank's Governor, should write to Alistair Darling to seek permission to embark on "quantitative easing" — sometimes called printing money.

The minutes said: "It is unlikely that the inflation target could be met solely by cutting Bank Rate."

Article Continues: http://business.timesonline.co.uk/tol/business/economics/article5757895.ece

[Jacqui D]

Financial meltdown is inevitable.

7-11 November 2009...mark your diaries.

Why this date Piers?

It all seems a losing battle, it's only a matter of time now i feel.

[piers2210]

Hi Jacqui, well Bill Deagle in his interview on 16th Feb was talking about "any bank holiday soon" for the "economic revolution" (a good interview by the way) but i just don't think things are prepared enough yet. Change is inevitable, but i think it will fall more in line with the dates 7-11 Nov this year because of two things : (1) the elite/secret societies like to do things on auspicious dates, and 11-11-11 fits well ie 11 nov 2009. According to the Mayan Calendar though, the Fifth Night period was meant to have been the key time for economic collapse, ie pre-nov 2008, but this only partially happened. According to Calleman and others, collapse only occurs during "Night" periods, so we are now looking at 7th Nov 2009 onwards ie the start of the Sixth Night of the Galactic Underworld. Whatever, due to the unchangeable cosmic plan, change HAS to come very soon, as there is little time left before completion of the cosmic plan on 28th Oct 2011, when political and economic change must already have occurred. Because no one is aware of the cosmic plan, change when it comes will be hard for most, but you can prepare. Preparation suggestions are well documented, but 14 days food, water and small bills would help as the streets will be empty by then (except for the bodies you must step over).

Cheer up!

Piers

[piers2210]

The other thing about delays in the economic revolution thats coming is that the massive increase in the money supply in the US, Britain and elsewhere will slow the pace of change...a little. Printing money can't stop change, but it will slow it down. The collapse this time will be total though in my view.

[Connecting with Sauce]

My proposed new currency is below :D

http://www.personalbudgettraining.com/blog/uploaded_images/Monopoly-Money-748981.jpg

[Humble Janitor]

Financial meltdown is inevitable.

7-11 November 2009...mark your diaries.

Ha!

We've seen what happens when people attach dates to events. The events don't materialize.

See: Goodchild, Blossom

[peaceandlove]

Financial meltdown is inevitable.

7-11 November 2009...mark your diaries.

:king: Hail Piers, the Predictor,

Maybe we should start a lottery and let everyone make their predictions for EU Collapse, US Collapse, Mexico Collapse, Japan Collapse, or maybe just the Total Collapse? :naughty:

Do you want to start a thread? :thumb_yello:

What should the winner receive? :winner_first_h4h:

Would there be a second place? :winner_second_h4h:

How about a third? :winner_third_h4h:

Why not a consolation prize too? :mf_pain:

PaL

[piers2210]

Brilliant idea!!

The winner gets "paper money"!!

[burgundia]

Goldman Sachs admits to manipulate Polish currency and they say that they are not going to do it any more. they already made money on that speculation. isn't that sweet? no more stealing people's money...

[Northern Boy]

My proposed new currency is below :D

http://www.personalbudgettraining.com/blog/uploaded_images/Monopoly-Money-748981.jpg

Hey I`m RICH !

[peaceandlove]

Don't expect miracles during big week in EU's battle with depression

David Gow in Brussels
guardian.co.uk, Wednesday 18 February 2009 10.29 GMT

Is the EU falling apart? Can the euro survive? The coming week is scheduled to deliver some eagerly awaited policy responses to these suddenly urgent questions, but the prospects are that they will fall short of what is required and that the "worst depression for a century" will deepen...

Article continues: http://www.guardian.co.uk/business/2009/feb/18/european-union-recession-policy

[peaceandlove]

Britain at risk of 10 year recession

By Andrew Porter, Political Editor
Last Updated: 10:55PM GMT 19 Feb 2009

Britain is at "serious risk" of entering a decade-long recession similar to that experienced by Japan in the 1990s, the outgoing deputy governor of the Bank of England has warned.

Sir John Gieve, the Bank of England deputy governor has warned Britain is at risk of slipping into a ten year recession.

Sir John Gieve was speaking after new figures showed Britain's national debt could more than double to almost £2 trillion later this year. However, he added that such a prolonged decline was not inevitable because interest rates had been cut sharply.

The high level of public debt will be reached when the Government's stakes in two part-nationalised banks are put on the balance sheet.

It puts Britain's financial position "off the Richter scale," according to the Tories, who urged Alistair Darling, the Chancellor, to stop the rises in spending to bring down debt.

Article continues: http://www.telegraph.co.uk/finance/financetopics/recession/4701172/Britain-at-risk-of-10-year-recession.html

[peaceandlove]

Berlin cleared to seize control at Hypo Real Estate

From The Times
February 19, 2009
Susan Thompson and Catherine Boyle

The German Government has approved a draft law that allows the forced nationalisation of stricken banks, paving the way for Berlin to take control of Hypo Real Estate, the commercial property lender.

The Bill, which must be approved by parliament, breaks a post-war taboo in giving the Government the right to expropriate shareholders in domestic banks.

In the case of Hypo, the Government wanted the option of expropriation because, without it, it might have trouble taking full control of the bank since JC Flowers, the American private equity investor, owns nearly a quarter of the bank's shares.

German politicians have agonised for weeks over the Bill, aware that it is linked in many Germans' minds to Nazi seizures of Jewish property in the 1930s and East Germany's attack on private business after the Second World War.

Article continues: http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article5762351.ece

[piers2210]

Love your posts, PaL.

You are The Business.

Carry on.

Paper money is going to be irrelevant.

For those who haven't seen it yet, check out Gerald Celente's latest interview on Russia Today on another thread.....get the tins and water in!!

Enjoy life, NOW.

I tried to enjoy myself tonight in a bar in asia, but failed dismally.

[Northern Boy]

It is going to happen regardless of how much money they throw at it , The PTB are in control of it and the push for the NWO is on, My take on it is yes they are manipulating this but they fail to see it is taking on a life of its own that even they won`t be able to stop it .

[peaceandlove]

Saab on the brink as Swedish crisis reaches deadlock

The Swedish car-maker Saab Automobile was on the brink of failure on Thursday night after General Motors threatened to walk away, and the Swedish government refused to come to the rescue.

By Ambrose Evans-Pritchard
Last Updated: 9:05AM GMT 20 Feb 2009

Excerpts:

"Sweden has been the hardest hit of any country in western Europe: the economy contracted at an annualized rate of nearly 20pc in the fourth quarter, which is horrendous," said Par Magnusson, a strategist at Danske Bank.

There is mounting concern over the health of the Swedish banking system, which has only just recovered from its last disaster in the early 1990s. Swedbank and SEB have heavy exposure to the crumbling economies of the Baltic states.

"It's been a blessing. This is exactly why a country needs its own currency," said Mr Magnusson.

Full article: http://www.telegraph.co.uk/finance/newsbysector/transport/4699712/Saab-on-the-brink-as-Swedish-crisis-reaches-deadlock.html

[micjer]

Financial meltdown is inevitable.

7-11 November 2009...mark your diaries.

One thing is definate. Financial meltdown is inevitable. Part of their plan.

Next will be one world currency and banking system.


There is not enough bailout money to end the slide.

There is only one solution. All debts are considered paid off everywhere. Then start over with no interest. There is not enough money to go around once interest is put into the equasion. Giant pyramid scheme.

Wouldn't the Federal Reserve like my idea!!!


:mfr_lol:

[Humble Janitor]

If it has a date, it's ********.

[piers2210]

I am fairly sure that we will see major economic change before the year end...and we haven't seen anything yet. So far we have just seen a small market correction, inevitable with the disastrous decisions made for some years by top bankers and politicians. But what is to come will take us to the true position when politicians give up manipulating, which they will by year end. Then, as Peter Schiff, Ron Paul, Gerald Celente and others are advocating, the market can readjust to its new true level....which may make your eyes water a bit....

[micjer]

So, if stock markets all go in the tank..(pretty much a given)....what happens to the price of commodities? (food,oil,other goods we need)

Will it cause hyperinflation and we'll need wheel barrows full of cash for a loaf of bread or will everything deflate like the dirty thirties?


My thinking is that you cannot keep creating money out of thin air and retain the value of it. Look at the situation in Zimbabwe....inflation at 2.2 million %!!!!!
http://www.cbc.ca/world/story/2008/07/16/zimbabwe.html

:mfr_omg:

[piers2210]

You got it, M.

[peaceandlove]

EU leaders push sweeping regulations

By Chris Bryant in Berlin
Published: February 22 2009 20:36 | Last updated: February 23 2009 07:20

Angela Merkel, German chancellor, who hosted the meeting, said leaders had also agreed to support doubling the financial resources of the International Monetary Fund so it could act quickly to bail out nations in need in an “extraordinary international crisis”.

European leaders on Sunday outlined sweeping proposals to regulate financial markets and hedge funds and clamp down on tax havens as they sought a common position to combat the global economic crisis.

Article continues: http://www.ft.com/cms/s/0/a896e59e-011f-11de-8f6e-000077b07658.html

[peaceandlove]

G20 Preparatory Meeting - European Summit, Berlin

Press conference by Angela MERKEL, German Chancellor, Alexandr VONDRA, Czech Prime Minister and President-in-office of the Council, José Manuel BARROSO, EC President, Nicolas SARKOZY, French President, Gordon BROWN, British Prime Minister, José Luis Rodriguez ZAPATERO, Spanish Prime Minister, Silvio BERLUSCONI, Italian Prime Minister, Jan Peter BALKENENDE, Dutch Prime Minister, Jean Claude JUNCKER, President of the Eurogroup and Luxembourg Prime Minister
Ref-62078 // EU Member states, Berlin , Germany // AUDIO

Audio: http://ec.europa.eu/avservices/ebs/schedule.cfm?page=1&date=02/22/2009&institution=0

[peaceandlove]

Don't Panic! G20 Meeting is doomed to failure...

February 23, 2009

Video (7:42): http://www.youtube.com/watch?v=z0Fr81RGink&feature=channel_page

See Links under (more info)

[peaceandlove]

Fever I Am has posted a couple more good Europe related articles: youtube channel: http://www.youtube.com/user/FeverIAm

From The Sunday Times
March 1, 2009

The special relationship is going global
Gordon Brown

Historians will look back and say this was no ordinary time but a defining moment: an unprecedented period of global change, and a time when one chapter ended and another began.

The scale and the speed of the global banking crisis has at times been almost overwhelming, and I know that in countries everywhere people who rely on their banks for savings have been feeling powerless and afraid. But it is when times become harder and challenges greater that across the world countries must show vision, leadership and courage – and, while we can do a great deal nationally, we can do even more working together internationally.

So now is the time for leaders of every country in the world to work together to agree the action that will see us through the current crisis and ensure we come out stronger. And there is no international partnership in recent history that has served the world better than the special relationship between Britain and the United States.

Article continues: http://www.timesonline.co.uk/tol/comment/columnists/guest_contributors/article5821821.ece



Financial crisis hits world markets
Graeme Wearden
guardian.co.uk, Monday 2 March 2009 14.56 GMT

World stockmarkets have plunged again today, with Wall Street opening nearly 2% lower and the FTSE 100 falling to a six-year low after news that HSBC had launched Britain's biggest ever corporate cash call and stricken insurer AIG had reported the largest ever US quarterly loss.

In early trading the Dow Jones Industrial average lost more than 100 points to 6958.35, dropping below the 7000 level for the first time since October 1997.

Article continues: http://www.guardian.co.uk/business/2009/mar/02/market-slump-world-recession



From The Times
March 2, 2009

Bank of England set to pump cash into economy to avoid deflation
Gary Duncan, Economics Editor

The Bank of England is set this week to begin “printing money” in a ground-breaking move that will mark its most forceful action yet to curb the slump in the economy.

The Bank’s Monetary Policy Committee is expected to act on Thursday, as soon as it is given a final green light from Alistair Darling to begin the so-called quantitative easing.

The go-ahead from the Chancellor is expected imminently, as early as tomorrow, in a letter to Mervyn King, the Bank’s Governor. The move will signal an aggressive stepping up of the Bank’s efforts to breathe life into the economy.

Article continues: http://business.timesonline.co.uk/tol/business/economics/article5827946.ece

[peaceandlove]

Economic crisis threatens the idea of one Europe

International Herald Tribune
By STEVEN ERLANGER and STEPHEN CASTLE Published: March 1, 2009

The leaders of the European Union gathered Sunday in Brussels for an emergency summit meeting designed to tamp down the centrifugal forces unleashed by the global economic crisis that threaten to spin the bloc - and its single currency - apart.

Article continues: http://www.campaignforliberty.com/wire.php?view=3134

[peaceandlove]

UK NEWS
MI5 ALERT ON BANK RIOTS

Sunday March 1,2009
By Geraint Jones

TOP secret contingency plans have been drawn up to counter the threat posed by a “summer of discontent” in Britain.

Exerpt:

The “protest season” is due to begin on April 1 with the G20 Summit in London next month, followed by the 60th anniversary of Nato in Strasbourg a few days later. May Day is also *potentially a flashpoint.

Ministers cannot afford to allow latent public anger at Government policy to get out of hand if they are to maintain credibility through what promises to be Gordon Brown’s most testing period as Prime Minister.

The Stop the War coalition, orchestrating the G20 protest, said: “The first week of April could be a week of world leaders will never forget.”

Complete article: http://www.express.co.uk/posts/view/86981/MI5-alert-on-bank-riots

[peaceandlove]

Bank of England poised to cut interest rates close to zero and print money

The Bank of England is expected to cut interest rates close to zero today and unveil radical plans to inject up to £150bn of new money into the economy to combat the recession.

By Angela Monaghan
Last Updated: 12:14PM GMT 05 Mar 2009

City economists expect the Bank's Monetary Policy Committee to lower interest rates by half a point to an historic low of 0.5pc at 12pm today, but the focus will be on the likely plan to inject more money directly into the economy in a process known as quantitative easing.

The Bank, which has cut the cost of money dramatically since the collapse of Lehman Brothers in September intensified the financial crisis, is now moving beyond making money cheaper. By adding new money to the economy at a time when interest rates are close to zero, the Bank's Governor Mervyn King will be hoping that money is lent and helps ease the credit drought suffered by consumers and businesses alike.

Video and Article Continues: http://www.telegraph.co.uk/finance/financetopics/recession/4941304/Bank-of-England-poised-to-cut-interest-rates-close-to-zero-and-print-money.html

[peaceandlove]

Gordon Brown urges US Congress to help him save the world

Gordon Brown has attempted to establish himself as an international statesman with the vision to lead the world out of recession in a speech to the US Congress in Washington.

By Andrew Porter and Toby Harnden in Washington
Last Updated: 11:23AM GMT 05 Mar 2009

In becoming only the fifth Prime Minister to address a joint session of Congress, he lavished praise on America, hailing it as the "indispensable nation".

But he also laid down a challenge to the US not to retreat into protectionism and to help to protect the world's poor, calling on America's politicians to join him in forging a global agreement to solve the financial crisis.

Seeking to restore his battered reputation in Britain, Mr Brown, whose love of the US is well known, had travelled to Washington hoping to replicate the success enjoyed by his predecessor Tony Blair.

The trip was in danger of being overshadowed, however, by his refusal to apologise for the recession.

Video and Article continues: http://www.telegraph.co.uk/news/newstopics/politics/gordon-brown/4940739/Gordon-Brown-urges-US-Congress-to-help-him-save-the-world.html


Gordon Brown's speech to Congress: the full text

Gordon Brown, the British Prime Minister, gave a speech to US Congress in Washington on Wednesday. Here is the full transcript.

Source: http://www.telegraph.co.uk/news/newstopics/politics/gordon-brown/4938252/Gordon-Browns-speech-to-Congress-the-full-text.html

[avyaktam]

Here a Pravda article on the subject.
http://english.pravda.ru/opinion/columnists/107181-0/

[peaceandlove]

Europe’s banks face a $2 trillion dollar shortage

European banks face a US dollar “funding gap” of almost $2 trillion as a result of aggressive expansion around the world and may have difficulties rolling over debts, according to a report by the Bank for International Settlements.

By Ambrose Evans-Pritchard
Last Updated: 11:41AM GMT 05 Mar 2009

The BIS said European and British banks have relied on an “unstable” source of funding, borrowing in their local currencies to finance “long positions in US dollars”. Much of this has to be rolled over in short-term debt markets.
“The build-up of large net US dollar positions exposed these banks to funding risk, or the risk that their funding positions could not be rolled over,” said the BIS.
The report, entitled “US dollar shortage in global banking”, helps explain why there has been such a frantic scramble for dollars each time the credit crisis takes a turn for the worse. Many investors have been wrong-footed by the powerful rally in the dollar against almost all currencies, except the yen.

Article continues: http://www.telegraph.co.uk/finance/financetopics/recession/4939796/Europes-banks-face-a-2-trillion-dollar-shortage.html

[peaceandlove]

Britain has the world's biggest fall in property prices after only Latvia

By Richard Goodwin
Friday, 6 March 2009

Source: http://www.independent.co.uk/news/business/news/britain-has-the-worlds-biggest-fall-in-property-prices-after-only-latvia-1638493.html

Britain saw some of the steepest house price falls in the world last year, collapsing by 14.7 per cent, with only Latvia performing worse, research showed yesterday.

More than three-quarters of the 42 countries surveyed recorded falls in the value of property in the final quarter of 2008, compared with just 27 per cent in 2007.

Dubai was the strongest performer, with house prices soaring by nearly 60 per cent in 2008, but much of this gain is expected to be wiped out this year.

Latvia saw the steepest slides on an annual and quarterly basis, with prices dropping by 16 per cent in the final quarter of the year and by 33.5 per cent during the whole of 2008.

Iceland also suffered badly, with prices falling by 14 per cent during the year. The US and Ireland were also near the top of the losers' table with annual price drops of 12.1 per cent and 9.1 per cent respectively.

Property consultancy Knight Frank, which carried out the research, said not all markets were at the same point in the cycle, with 19 per cent of the countries it looked at still seeing price rises in the final third of 2008.

Although house prices rose by more than 10 per cent last year in seven countries, values had now started to fall in six of them, it added.

The survey comes as new data from the Halifax showed UK house prices fell by 2.3 per cent last month, resuming their long-term downward trend and reversing gains made in January.

The slide left the average home in the UK costing £160,327, according to Halifax. It also pushed up the annual rate at which prices are falling to a new high of 17.7 per cent.

Economists had cautioned against reading too much into the surprise 2 per cent rise Halifax reported for January, and yesterday's figures were in line with ones reported by Nationwide for February, which showed prices dropping by 1.8 per cent, while the annual rate of decline increased to 17.6 per cent.

Howard Archer, chief UK and European economist at IHS Global Insight, said: "The very sharp 2.3 per cent month-on-month fall in house prices in February reported by the Halifax confirms that the unexpected 2 per cent rise in January was an anomaly and house prices remain very much on a downward track."

House prices have now fallen back to a level last seen in August 2004.

But Halifax said there were some "tentative signs" that housing market activity was beginning to stabilise. The price falls of 3.6 per cent during the three months to the end of February, were a slight improvement on drops of between 5 per cent and 6 per cent that have consistently been recorded for three-month periods between June last year and January this year.

Martin Ellis, housing economist at Halifax, said: "Continuing pressures on incomes, rising unemployment and the negative impact of the dislocation of the financial markets on the availability of mortgage finance are, however, likely to mean that 2009 will be another difficult year for the housing market."

House prices: The biggest losers

Latvia -33.5%

United Kingdom -14.7%

Iceland -14.0%

United States -12.1%

Ireland -9.1%

Estonia -7.5%

Norway -7.5%

Denmark -7.0%

Singapore -6.5%

Portugal -6.3%

Canada -6.2%

[piers2210]

Interesting post, PaL, not surprised to see this sort of property price fall in black and white. The good thing is that, assuming you don't want to move from Latvia to somewhere else, or the UK to some other country for that matter, you'll be fine, as property prices seem to be dropping reasonably evenly across the board.

Dubai: although the article states that Dubai property prices rose by 60% in 2008, the slowdown in Dubai started about Sept 2008 and prices (as of last week) had fallen by 50% - 80% from the "peak" (whatever that was). Really over-hyped places like apartments on the Palm Jumeirah, definately have plummeted beyond belief. You still see the local women in their black abayas with Prada bags at the big malls getting out of their Bentleys...so some people aren't suffering much. But many expats have already gone home. The vision for Dubai is still good, but there will be many empty property developments for some time to come.

P.

[peaceandlove]

Piers,

Apparently Dubai was already bankrupt last year along with Emirates Airline and Abu Dhabi bailed both out.

Dubai is Bankrupt & Emirates face disintegration!

February 1, 2009

Max Keiser talks with Stacy Herbert about the bailout of Dubai real estate and Emirates Airline disintegration

Video (1:28): YouTube- Dubai is Bankrupt & Emirates face disintegration !!!!!!!!!!!!!!!!!!!


Dubai crash is real ; stock exchange down 75%

February 24, 2009

'GLOBAL PONZI SCHEME'

Max Keiser talks with Stacy Herbert about the Dubai crash and bankruptcy recorded on February 8 th 2009

Video (10:01): YouTube- Dubai crash is real ; stock exchange down 75%

[piers2210]

Thanks PaL, these Dubai videos are unbelievable, they tell an interesting, and i've got to say, TRUE story.

They are entertaining too because they are informative about a monarchy and kingdom few know much about, except perhaps the glitz which made it a rival to Las Vegas (no gambling though! - just excessive clubbing and partying is available!).

Debtors have to be very careful though, as it is possible to find yourself in jail in certain circumstances over failure to repay debt, and unfortunately many expats, especially Brits, bought property on big mortgages which they have no hope of repaying now due to the decline in pricing and job losses. It is not surprising to hear that they are now fleeing, as the laws are significantly different from the west, something that westerners always seem to forget even though they knew, or should have known, that Dubai operates under Sharia Law, a muslim code.

So the expats flee back to the West where they find......more economic disaster.

[peaceandlove]

Bank of England's launch of quantitative easing a qualified success

From The Times
March 12, 2009

Gary Duncan, Economics Editor
The Bank of England's drive to inject billions into the economy to jump-start growth moved swiftly into top gear yesterday as banks scrambled for its newly created money.

As the Bank launched its strategy of “quantitative easing” — effectively, printing money — banks clamoured to sell it government bonds, or gilts. The Bank was deluged with offers from banks willing to sell it £10.5 billion worth of gilts in return for its cash — some five times more than the £2 billion of funds made available in yesterday's first “QE” operations.

Economists said that the early success for the Bank's first auction to buy gilts signalled that it should have few problems implementing its plan to boost the amount of cash and credit flowing through the economy by £75 billion over the next three months by buying gilts and corporate debt.

But uncertainty persisted over just how effective the scheme will prove, as the Bank secured no bids in the first, non-competitive, phase of its auction. This involved inviting investors, other than mainstream banks, such as pension funds, to sell gilts, at a price to be set in the later competitive part of the auction, to banking groups.

There are worries that if cash-strapped banks take the lion's share of the new cash, they may hoard it, rather than lend it, undermining any boost to the economy.

So, the Bank hopes to bypass banks by buying assets from other investors, infusing the money into the economy more directly. This part of the plan could be scuppered if non-bank institutions fail to take part.

Another worry is that as more gilts are sold, the Bank could end up having to pay over the odds. Analysts said that yesterday's purchases were made at fair values.

The Bank will be pleased with the early results of QE, which has achieved a key aim of driving down market interest rates as ten-year gilt yields, a key factor in determining interest rates for consumers and companies, have fallen to record lows below 3.07 per cent. Yesterday, ten-year yields briefly dipped below those of German government bonds for the first time since 2002.

In another sign of success, the US Federal Reserve is thought to have been so impressed by the early results for QE that is considering similar moves.

Article: http://business.timesonline.co.uk/tol/business/economics/article5891365.ece

RELATED LINKS at link above.
Bank to 'print' £75bn of new money as it cuts rate
ECB cuts rates to 1.5 per cent, hints at QE
Services slowdown eases ahead of rate decision
Economists put the failure down to teething problems such as the speed at which the paperwork for bids had to be completed. But if these issues persist it could impede the QE plan.

Should the Bank of England buy shares?
Robert Peston12 Mar 09, 04:40 PM

Will QE work?
Robert Peston11 Mar 09, 09:13 AM

Answers at blog: http://www.bbc.co.uk/blogs/thereporters/robertpeston/



Bank begins using 'new' money

Wednesday, 11 March 2009

Source: http://news.bbc.co.uk/2/hi/business/7936319.stm

The Bank of England has launched its latest attempt to boost the supply of credit and stimulate the UK economy, using £75bn it has, in effect, created.

It has bought £2bn of government bonds from financial institutions and funds, in the first of a series of auctions designed to help troubled banks.
The aim is to get the Bank's newly created cash out into the wider economy and encourage greater lending.

The Bank said last week it would pump £75bn into the economy.

Using a reverse auction, the Bank bought just under £2bn of the bonds, known as gilts.

The amount of offers the Bank received from commercial banks was about £10.5bn, meaning that financial institutions wanted to sell five times more debt than the Bank had offered to buy.

There were no bidders for the non-competitive portion of the auction, where bidders commit to selling the debt to the Bank without setting a price.
Analysts said that was most likely due to the unprecedented nature of the auction, with banks unwilling to commit themselves until they have seen whether the competitive potion of the auction was successful.

Similar auctions will continue twice weekly.

'Triumph'

The policy, known as quantitative easing, has never been tried previously in the UK.

The hope is that those who sell the government bonds will use the money from the Bank to lend to individuals or companies or invest in business activity.

The prices of long-term government bonds, or gilts, have surged 20% over the last few days in anticipation, which has resulted in yields on the benchmark 10-year bond dropping to a record low.

The BBC's business editor Robert Peston said the drop in the cost of borrowing appeared to be a "triumph" for the Treasury, which has to sell over £100bn a year of new government debt to finance its budget deficit.

"The device of authorising the Bank of England to buy up a huge proportion of these IOUs [the government bonds] has apparently reduced the cost of all that borrowing to an astonishing degree," Mr Peston said.

Deflation

These actions are unprecedented in the Bank's 315-year history, but are now considered necessary as interest rates approach zero and deflation becomes a growing possibility.

It has government permission to inject a further £75bn into the economy if it wishes, after slashing interest rates to a record low of 0.5% to boost the UK economy, which has entered a recession.

Deflation - or falling prices - is bad for the economy as it encourages consumers to delay spending in the expectation that prices will soon be lower, potentially worsening an economic downturn.

The governor of the Bank of England, Mervyn King, has admitted he does not know how long quantitative easing will take to have an effect but says it will "eventually work".


BoE's first move to 'print money' finds no takers

Reuters 11 Mar 2009

The Bank of England today officially launched quantitative easing - effectively printing money - to pull the economy out of recession but its first offer to buy UK government bonds drew no response from non-bank institutions such as pension funds and life insurers.

The central bank will now offer to buy £2bn of gilts from banks in the next stage of its £75bn asset-buying programme. Results of that are expected after 14:45 GMT.

Strategists said they were not that surprised due to the complexity of the process, and gilt prices rose as it raised the stakes for the next so-called reverse auction.

Article continues and video: http://www.telegraph.co.uk/finance/economics/4973543/BoEs-first-move-to-print-money-finds-no-takers.html

Source of all articles: http://www.youtube.com/watch?v=P5z-MpFr1wc&feature=channel_page

[peaceandlove]

House prices 'could fall by further 55 per cent'

House prices may fall by a further 55 percent and there is a "very real probability" that Britain will be bankrupted, a leading investment bank has warned in a private note to clients.

By Robert Winnett, Deputy Political Editor
Last Updated: 10:02AM GMT 12 Mar 2009

People who bought buy-to-let flats are expected to “begin panic selling” and the average home value could drop below £100,000.
The predictions in a 298-page report from Numis Securities, a City investment bank, are the bleakest yet on the deteriorating state of the British property market.

Article continues: http://www.telegraph.co.uk/finance/economics/houseprices/4974499/House-prices-could-fall-by-further-55-per-cent.html

[peaceandlove]

Brown and Merkel insist G-20 will deliver

Saturday, 14 March 2009

Gordon Brown insisted today he was confident of agreeing a recession-fighting package at next month's G20 - despite signs that he may struggle to get all countries to sign up to the prospect of further fiscal stimulus measures.


Last paragraph:

"Hopefully this weekend Gordon Brown has learnt his lesson that he should stop trying to use the international stage to fight his domestic political battles, and instead focus on getting international agreement on banking reform and trade that really would have a stimulating effect on the world."

Article continues: http://www.independent.co.uk/news/uk/home-news/brown-and-merkel-insist-g20-will-deliver-1645128.html

[peaceandlove]

Britain showing signs of heading towards 1930s-style depression, says Bank

Britain is showing signs of sliding towards a 1930s-style depression, the Bank of England says today for the first time.

By Edmund Conway, Economics Editor
Last Updated: 8:23AM GMT 16 Mar 2009

The country is displaying early symptoms of being trapped in a so-called “debt deflation trap” where families find themselves pushed further and further into the red every month, according to a Bank report published today.

The stark warning will cause serious concerns, since it was this combination of falling prices and soaring debt burdens that plagued the US in the 1930s.

Article continues: http://www.telegraph.co.uk/finance/financetopics/recession/4996994/Britain-showing-signs-of-heading-towards-1930s-style-depression-says-Bank.html


IMF poised to print billions of dollars in 'global quantitative easing'

The International Monetary Fund is poised to embark on what analysts have described as "global quantitative easing" by printing billions of dollars worth of a global "super-currency" in an unprecedented new effort to address the economic crisis.

By Edmund Conway
Last Updated: 9:07AM GMT 16 Mar 2009

VIDEO and ARTICLE: http://www.telegraph.co.uk/finance/financetopics/recession/4986287/IMF-poised-to-print-billions-of-dollars-in-global-quantitative-easing.html

[peaceandlove]

UK to remain in deflation trap until 2012, economists warn

Britain will be mired in a deflation trap for years despite the radical efforts of the Bank of England to pump extra cash into the economy, economists have warned.

By Edmund Conway
Last Updated: 10:26PM GMT 21 Mar 2009

The forecast, by a team at BNP Paribas, states that prices in Britain will keep falling for at least another two-and-a-half years, as Britain suffers an apparently intractable bout of debt deflation.

The warning comes only days before official figures confirm this Tuesday that the Retail Price Index has dipped into negative territory for the first time in almost half a century.

It also follows a warning from the Bank itself that the UK is now exhibiting early signs of becoming stuck in debt deflation − the combination of falling prices and rising debt burdens that afflicted the US during the Great Depression.

Article continues: http://www.telegraph.co.uk/finance/financetopics/recession/5028673/UK-to-remain-in-deflation-trap-until-2012-economists-warn.html

[peaceandlove]

What can I say, I like Mike!

Don't Panic! UK Recession is 'less bad' than 1929!

Pertinent articles linked on right side of youtube page under (more info).

Video (7:12): YouTube - Don't Panic! UK Recession is 'less bad' than 1929!

[peaceandlove]

PRINTING PRESSES GONE WILD!!!

European Central Bank falls into line and embraces quantitative easing

Rearguard action by Germans to stave off 'undesirable option' dismissed by central bank's governing council.

By Ambrose Evans-Pritchard
Last Updated: 8:45AM BST 08 May 2009

The European Central Bank has cut interest rates a quarter point to a record low of 1pc and embraced quantitative easing (QE) for the first time, catching markets off guard with plans to buy €60bn (£53.5bn) of covered bonds.

The hotly-disputed move to purchase assets brings the ECB into line with the central banks of the US, Britain, Japan, among others, that have begun "printing" money to stave off debt deflation.

Julian Callow from Barclays Capital said the ECB had crossed the Rubicon. "This is likely to morph into fully-fledged quantitative easing. It's how the Fed began last October when it started purchasing commercial paper," he said.

Article continues: http://www.telegraph.co.uk/finance/financetopics/financialcrisis/5292781/European-Central-Bank-falls-into-line-and-embraces-quantitative-easing.html

SOURCE: http://solari.com/blog/ Catherine Austin Fitts' Blog