Big market correction coming Sept\Oct !

[jagman]

I know some of of you newer PA members might not know me.
I've have not particpated alot in the last few months. but The older PA members know me very well. This not meant
To be fearporn! We have a series of events converging at one
point in time! The "Last Blood Moon" Which will Be Visible over
Israel.and according to the prophecy It is the begining of a
great upheavle in the Middle East. Second the Is the "Shemitta"
What is the Shemitta you might ask?

At the end of every seven years, you shall celebrate the remission year. The idea of the remission year is that every creditor shall remit any debt owed by his neighbor and brother when God's remission year comes around. You may collect from the alien, but if you have any claim against your brother for a debt, you must relinquish it.
By counting sevens from then, we see that the next Shemittah year will be the year 5775 after Creation, which runs from Sept. 25, 2014, through Sept. 13, 2015.
Book of Deuteronomy: 15 1-6

Now I'm going to to appeal to to your logical mind.The United States is
almost 19 Trillion dollars in debt! The Fed Reserve Has been pumping 30 to
60 billion dollars every month into the Stock Market!They call this little gem
"Quanatative Easing." Quey 1, Quey2, Quey3 and I think we are currently 4
or 5. AT some point the Fed will have to Raise our interest rate and I watch
main stream economists and They all are nervous, Neal Cavuto, Charles Payne
Charlie Gasparino,China Economy is slowing and there markets are expected to
completely crash very soon.We lost 500 pts in one day last week.Just a few
trillion was lost. I've heard estimates of our worst case scenario is we could
crash to 5 Thousand best case scenario best case between 7 t0 9. but we
wont be able to be bailed out again like we were in 2008. so we will be
to only entitled a small portion of money thats in the bank accounts.
good news is gas will probably drop to a dollar a gallon but there is the risk
of hyperenflation.

They are saying metals are dropping but they will start to make a comeback
especially if the market does have a major correction. It might take a few
years but they did say that they would make a comeback.

The good thing is they say Australia Economy is very strong and it might take
some of the sting out of the correction. If you have a 401K "I implore you
to move your money to some kind of money market account where you dont
get a big interest rate but your guaranteed not to lose money. You can always
move your money back in a few months if I'm wrong. But I'm not wrong! There
are other events converging at this time.



September 28, 2015 (Feast of the Tabernacles) is the last Blood Moon!
I'm not saying something is going to happen on that exact day but it will
happen between sometime thru Sept- Oct.

I'm sorry, I wish I had better news for everyone but we will make it thru
this! We are strong! Strengthen your mind! This is not the end! It is the
begining. I know some of you will disagree with me and thats ok but
The evidence is pretty irrefutable.
I Hope for the best and prepare for the worst.

There is also a book out called the "Harbinger" Which is an amazing
piece of work which also confirms many of the same prophecy's that
the blood moon & The Shemitta say. Something big is going to happen
soon but I'm looking at this has a a positive change and you should
too.

[Eric J (Viking)]

Hi Jag...quite a few of the old avolonians seem to be hovering around here at the moment..hmmm...perhaps there's a reason for it.

Nice to see you around again. Hope all is well.

Viking

[Redstar Kachina]

..........

[Fiberglut]

Some here likely realize, many probably don't; that being said, I offer the following. The United States of America is a corporation headquartered in Puerto Rico. It is a receivership with the sole purpose of serving as a collecting agent for the 12 Federal Reserve Banks. It functions as a defacto government and has done so since the 1933 bankruptcy. There is currently no dejure form of government. I am told that white hats in the military have seized control and a new national currency "US treasury notes" has been created backed by Chinese gold. There is to be a reset with the new currency exchanged for Federal Reserve notes at par. The best guess on timing is currently the autumnal equinox. A new US republic with a dejure government will be reborn. The IRS is closing up shop. These are just a few tidbits of what I'm hearing. Stay nimble my friends, but do not fear.

[transiten]

jagman, what is 401K?

Also astrologically Venus relating to resources and values=money/crops/love has been retrograde for some months reflecting anomalies and possible problems/reviews in these areas, she will go direct on Sept 6 but shortly after the trixter Mercury will go retrograde and the confusion will continue and the stock market/economy will be difficult to predict along with all sorts of communication problems. An opposition between Juiter and Neptune adds to confusion and possible panic.

[Spellbound]

In Simon Parkes' recent video from Friday, he mentions something big coming around the end of September / beginning of October (though he didn't mention it being financial). I've been noticing this proclamation from a couple sources recently that something big is coming.

Dave - Toronto

[jagman]

In Simon Parkes' recent video from Friday, he mentions something big coming around the end of September / beginning of October (though he didn't mention it being financial). I've been noticing this proclamation from a couple sources recently that something big is coming.

Dave - Toronto

Dave, He might be right! In the Shemitta It talks about a great shaking.
It might not mean just a financial shaking it could mean a great Earthquake.

[ThePythonicCow]

jagman, what is 401K?
401K's are a US investment account that has a particular definition in the US Federal Income Tax regulations. Such accounts are setup by employers of the (typically larger) companies that provide them. The employer takes some of his income, before paying income tax, and deposits that into the account. Sometimes the corporation matches a portion of these deposits. The contents of the account can be invested in a (typically quite short) list of investment funds defined by that particular corporation's 401k plan. No income taxes are paid on the employee's deposits, any matching deposits by the corporation, or any earnings (or losses) of the account ... until withdrawal. If the employee withdraws money before about age 60, they pay an additional penalty to the IRS (the US federal income tax collector.)

401K plans are a major source of investment in large mutual funds that in turn invest in blue chip stocks and bonds in the US stock market.

[jagman]

A 4 0 1K is offered to people who usually work for big companies say Pepsi,
Proctor & Gamble examples.They take portion of your check every week and gamble it in the stock Market.
Usually on pretty safe bets for your supposed retirement. but if we a have a Market correction of say
10 thousand points Trillions of dollars will be lost! Peoples retirements will vanish
over night. Please refer to Pauls answer about the 401 K

[Spellbound]

All of my RRSP's (401K) are in a money market fund (as per above). So, if the market crashes, I don't lose any value. I'll wait until this plays out and then get into specific funds once the Dow falls to 10K. It's a matter of timing, gotta find the low.

Dave - Toronto

[ghostrider]

everything that can be shaken , will be shaken , the high made low , the low made high , shaken= everything moved out of the normal an when it's over , everything is out of kilter ... too many sources , too many people , all saying sometime around Sept 23-25 they all expect something dramatic ... I wonder what they are hiding , usually when they put something in our faces , they do some dirty deeds behind the scenes , while everyone is watching the turn , the prestige is already over ... magicians trick , misdirection ... something is afoot , just can't put my finger on it ... you can feel it , the body doing strange things , dreams are strange , people say strange things , it's on a cosmic level , energy is a rollercoaster ... the material body and the spiritual world both are in sync preparing for something huge ...

[ThePythonicCow]

too many sources , too many people , all saying sometime around Sept 23-25 they all expect something dramatic

yeah :)

[gripreaper]

If your status is a US citizen, then you are considered an employee of the corporation know as the US government. So any government program is under the control of the corporation and is applied to you by adhesion to the contract. If you make voluntary donations to the corporation via social security or pensions, and any other corporations who are affiliate to the contract agreement also make voluntary contributions, then these become the sole property of the corporation and this corporation can a does do as they see fit with these resources.

The Internal Revenue Service is directly connected to the International Monetary Fund, which is directly connected to the United Nations. The social security number is the government corporation’s number and comes from the IRS. When you use this number, which is not yours, you are volunteering to be part of the corporation, and therefore are subject to all of its bylaws and mandates.

Since our parents volunteered to fill out the application at birth for you to become a ward of the state, and the state has approved your application, the state has the obligation to provide the benefits and privileges required to function in return for your surrender of your body and all other productive assets which you will produce during your lifetime. A bond is then created to secure this agreement.

So, as property of the state, your essence, the humanity of who you are is considered dead and your estate remains in probate and is administered by the fiduciary trustee of the corporation. The corporation operates under a military state of emergency, in bankruptcy receivership, to the creditors who decide how the corporations will function and how the obligations under contract will be repaid.

Now, the unlimited line of credit against the bond created under the corporate entity you are, has been extended to where it cannot possibly be repaid, and this has been by design. Any public debt instruments created to enter commerce first wind up on Wall Street, where these corporate entities take the essence of the assets unto themselves and leave the debt, with the usury and the productive energy flowing upstream into their coffers.

The illusion of assets in a 401K or in a Social Security account, based on digital representations of a debt instrument maturing towards expiration, which requires usury and taxes to remain in commerce, is fallacious at best and downright fraud at its worst.

So, if the corporate board members want to extract 2 trillion of these public debt instruments from commerce through a market crash, retiring them at their maturity, rendering the remaining instruments in circulation scarce, forcing any tangibles off the sidelines to make up the shortfall so that they can foreclose on those tangibles, then why shouldn’t they?

After all, they are the owners and you agreed to abide by the mandates of this corporation. You may say, no I did not, but when you reached the age of majority and did not rescind your adhesion contracts and lay claim to your body and remove yourself as a US citizen from the corporation, and you volunteered to surrender your energy to the corporation, through the Social Security and pension programs, then YES you did. If you make application for any license, which is permission to participate in the corporate mandates, then YES YOU DID AND YES YOU DO.

So calling the extraction of public debt instruments from commerce a “Crash in the market” is not exactly true, and to call any of the digital representations of these public debt instruments assets of the employees of the corporation, is also not true. These digital representations of debt do not belong to you and the corporation can and does use them any way they see fit, and are not obligated to pay out any benefits and privileges to you as long as they are under a military state of emergency, in bankruptcy receivership to the creditors, and you are a ward of the state, are dead and are considered an enemy of the state.

[ghostrider]

I feel like this one could be different than the whole 2012 doom , this quarter of this year has so many things connected , the number one is our financial system , our economic status in the world , our military ventures , the climate , so many puzzle pieces ... oh yeah Jade Helm ends soon as well ... lots of full moons lately , the new farmers almanac predicts a strong winter , the list goes on ...

[Fiberglut]

@ gripreaper, well said and +1 to you. You cannot pay a debt with a debt (HJR 192). The system of prepaid public debts was not necessarily bad in and of itself, but it was subverted by the bankers and used against us IMO. Could Admirality work if administered fairly? IDK, but I do know humanity has little chance of survival left to it's own means. The good news is there are beings of a higher dimension here to assist us. It is not possible to solve a 3D commercial problem in the 3rd dimension. It requires a metaphysical approach and I believe that is the approach being utilized.

[Lost N Found]

If your status is a US citizen, then you are considered an employee of the corporation know as the US government. So any government program is under the control of the corporation and is applied to you by adhesion to the contract. If you make voluntary donations to the corporation via social security or pensions, and any other corporations who are affiliate to the contract agreement also make voluntary contributions, then these become the sole property of the corporation and this corporation can a does do as they see fit with these resources.

The Internal Revenue Service is directly connected to the International Monetary Fund, which is directly connected to the United Nations. The social security number is the government corporation’s number and comes from the IRS. When you use this number, which is not yours, you are volunteering to be part of the corporation, and therefore are subject to all of its bylaws and mandates.

Since our parents volunteered to fill out the application at birth for you to become a ward of the state, and the state has approved your application, the state has the obligation to provide the benefits and privileges required to function in return for your surrender of your body and all other productive assets which you will produce during your lifetime. A bond is then created to secure this agreement.

So, as property of the state, your essence, the humanity of who you are is considered dead and your estate remains in probate and is administered by the fiduciary trustee of the corporation. The corporation operates under a military state of emergency, in bankruptcy receivership, to the creditors who decide how the corporations will function and how the obligations under contract will be repaid.

Now, the unlimited line of credit against the bond created under the corporate entity you are, has been extended to where it cannot possibly be repaid, and this has been by design. Any public debt instruments created to enter commerce first wind up on Wall Street, where these corporate entities take the essence of the assets unto themselves and leave the debt, with the usury and the productive energy flowing upstream into their coffers.

The illusion of assets in a 401K or in a Social Security account, based on digital representations of a debt instrument maturing towards expiration, which requires usury and taxes to remain in commerce, is fallacious at best and downright fraud at its worst.

So, if the corporate board members want to extract 2 trillion of these public debt instruments from commerce through a market crash, retiring them at their maturity, rendering the remaining instruments in circulation scarce, forcing any tangibles off the sidelines to make up the shortfall so that they can foreclose on those tangibles, then why shouldn’t they?

After all, they are the owners and you agreed to abide by the mandates of this corporation. You may say, no I did not, but when you reached the age of majority and did not rescind your adhesion contracts and lay claim to your body and remove yourself as a US citizen from the corporation, and you volunteered to surrender your energy to the corporation, through the Social Security and pension programs, then YES you did. If you make application for any license, which is permission to participate in the corporate mandates, then YES YOU DID AND YES YOU DO.

So calling the extraction of public debt instruments from commerce a “Crash in the market” is not exactly true, and to call any of the digital representations of these public debt instruments assets of the employees of the corporation, is also not true. These digital representations of debt do not belong to you and the corporation can and does use them any way they see fit, and are not obligated to pay out any benefits and privileges to you as long as they are under a military state of emergency, in bankruptcy receivership to the creditors, and you are a ward of the state, are dead and are considered an enemy of the state.

So essentially to add to Grips essay above, which is a truth of our slavery, We are all doomed in this illusionary realm of MONEY. We cannot escape no matter what we research and know and use of their own laws codes and ordinances written to give them power over the Corporations and their employees. This is all about the Rothschild's and Rockefeller's and any other banksters connected with Commerce. We all have been lied to and taught from birth how the system works and this is what we believe not ever knowing that is all pure fraud, an illusion, a total disgrace on humanity.

Now we see on a daily basis, how there is going to be something big happening in September, We continue to get bombarded with fear porn about the markets crashing and all sorts of disasters happening around this time. People are being told by their financial advisers to leave their money alone because this is how a volatile market works and what is real funny and sad is these folks seem to have forgotten what happened in 2008 or have very little memory of the devastation then. This is what is counted on by the very bastards that are going to steal everyone blind. They appear to know that every 5 years or so people forget. We are coming up on another market crash by total design. All of this fear porn of any other thing is designed to distract and decieve so all monies can be taken back into the elitist fold. Grip is completely right in saying we are their slaves. We never knew and never agreed to any of this but we have been brainwashed to believe all of it all of lives.

There have been so many folks trying to tell us how to get out of this system and so many have been murdered or bought off or disappeared. No one can ever find or get a remedy, When one jumps down the rabbit holes to hopefully find a remedy, the holes lead to dead ends so we spend all of time swimming in sh#t and never get to clear water. We continue to work our butts off just to eat, sleep and crap and never get anything but what we percieve to be a way forward. HA! you poor sucker, you are my slave, here sign this and everything will be better.

I know there is so many here that have research this and probably jumped down these rabbit holes. Well the only conclusion I have come to is that if something really big is going to happen this September is the entire paradigm is going to shift and all of this MONEY crap is going away

Thank you Gripreaper for your enlightenment maybe you could give some links for folks that may not know some of this to follow up and do their research to understand this so much more.

[gripreaper]

Thank you Gripreaper for your enlightenment maybe you could give some links for folks that may not know some of this to follow up and do their research to understand this so much more.

It's all here already. This is a subject which is quite difficult for most to grasp because it requires the complete upheaval of everything we have been taught, and all of our energy we have vested in this system our entire lives needs to be surrendered, and a whole new perspective and a whole new paradigm embraced, coupled with hours upon hours of research.

Its easier to grab a beer and a sandwich and go watch football or the latest fashion statement of the Kardasians. I know that's not fair to say that here, but those who want to know can already find what we are taking about in the archives. Winston Shrout is going to be at ECETI this weekend, and his most recent video's are very informational, and he has been in this research movement for 15 years and has been down every single rabbit hole, and he explains it in very simple layman's terms.

The great forefathers of this information, Jordan Maxwell, Eustice Mullens, Russell Means are the giants upon whose shoulders we all stand, and Michael Tsarion, Joseph Farrell, Santos Bonacci, Catherine Austin Fitts, David Icke, among so many others are all protege's of these forefathers.

Billy Faust, Jack Bauer, Jerry and Joe Kane paid with their lives, and Irwin Schiff, Tim Turner and others are still in prison. Leroy Schweitzer died in prison after 30 years. Dean Clifford spent over a year behind bars without an indictment or a hearing, you know.

How many are familiar with the talkshoe circuit, where average people hang out and help each other with their everyday debt problems? How many know about Angela Stark's talkshoe? How many have read Sigma6 stuff on trusts right here on Avalon?

If you wanna know, the information is right there in plain sight. Go after it. Your energy of intention will bring what you need to find.


Well the only conclusion I have come to is that if something really big is going to happen this September is the entire paradigm is going to shift and all of this MONEY crap is going away

That would be fine with me. Then the only question which remains, is will we embrace the New World Order being laid out for us, or will we choose to take responsibility for ourselves and stand together against the tyrants?

[Zionbrion]

I feel like this one could be different than the whole 2012 doom , this quarter of this year has so many things connected , the number one is our financial system , our economic status in the world , our military ventures , the climate , so many puzzle pieces ... oh yeah Jade Helm ends soon as well ... lots of full moons lately , the new farmers almanac predicts a strong winter , the list goes on ...
Also there was a movie being made before 2012, in which a mayan elder said something along the lines of "This prophecy does not mean the end of the world, it is the beginning of a new one, and 2012 date is false, this big change will take place sometime in a 7 year period between 2008-2015.
I don't think the movie ever got finalized, but there was lots of clips to watch while it was in pre production.

Actually I found the movie, they did complete it.
http://www.shiftoftheages.com/the-movie/

[Lost N Found]

That would be fine with me. Then the only question which remains, is will we embrace the New World Order being laid out for us, or will we choose to take responsibility for ourselves and stand together against the tyrants?

Very well explained, yes there is so much everywhere to research, listen to and become aware so much more. I would suspect that a lot of folks are following these giants, hoping for redemption in their lives to date.

Your last response above, it would appear, alludes to possibly only two paradigm changes that can happen. Not sure if that is a correct way to look at that statement but #1 we either adjust to the new world order that is being laid out for us, as you say, or #2. We all stand up and fight the tyrants. Granted these two paradigm shifts are definitely in the perception of humanity today and I see that if either one of these happens then we are not really paradigm changing anything simply because these ideas are in today's mind thought. We read all about the New World Order and even this Pope is coming here to speak on it. We also read and see all about more and more groups of folks standing up and trying to get others awake about the tyrants and how we should and need to take back our country. This is not just here in the USA but rather all over the world.

So to say, If either one of these changing things happens we will either be under total tyranny or in a transition between what we have now to a new boss which will wind up being the same old boss once again simply because the mind set does not change. So We win or lose, that is still within this paradigm is it not? If we win then a lot of bloodshed will have happened and we can stand up and say yea we won now we can re elect a new president and congress for the people. (Didn't we do this once or twice in the past?) Sure we all get to kick back with a sigh and breath easier for awhile. We still have the concept of money and maybe we use the gold and silver that was around at the beginning but remember that went to hell in a hand basket pretty quick and just kept repeating and repeating and debt has always been there simply because it is tied with the concept of money.

So I see no paradigm shift or change in either of those two concepts. I am not sure of a definition of paradigm you may have which I am sure we can discuss that one. My idea of that paradigm change, and I am just saying my idea, would be a complete wipe of this system of existence and a new complete start over, No concept of money or war or any of that. Like I said, a complete paradigm shift. Now I know that is just a dream away from this reality or illusion we are in but that is my definition of paradigm change.

Okay, You have great stuff and yes their are so many folks that study and come forth. The ones that gave their lives, I knew some personally and it was so hard to see them gone. They did their best to awaken folks and they did. Some of these folks I see as just shills to grab a buck, Others I see as true believers and absolutely giving help where needed. I would think that most here and around can discern the truth of a matter.

Thank you Grip, excellent conversation going.

[Rocky_Shorz]

Hey Guys,

we should be able to confirm this report, but this is more than a hickup

first reported Citigroup moving assets to Russia to prevent seizure, now the world's largest bank failing...

"The Ministry of Finance (MoF) is reporting today that British banking giant HSBC is nearing a total collapse after its having lost a staggering nearly $1 trillion due to the ongoing Great 2015 Global Market Crash and earlier today it completely ran out of cash to pay its obligations and depositors.

According to this report, HSBC is a multinational banking and financial services company headquartered in London, United Kingdom and is the world's fourth largest bank by total assets worth $2.67 trillion.

Not known to many Westerners, this report continues, HSBC was established in its present form in London in 1991 by the Hong Kong and Shanghai Banking Corporation Limited to act as a new group holding company and the origins of this banking giant mainly lies in Hong Kong, and also to a lesser extent Shanghai, where branches were first opened in 1865.

Due to the staggering crash of the Shanghai Composite index that has shed 38% of its value since 12 June, this report explains, HSBC lost nearly $700 billion of its value in China while a further estimated $300 billion has been lost due to the Dow’s collapse of over 1,800 points since its high for the year was reached on 27 May.

To the consequences of this massive $1 trillion HSBC loss, this report says, began hours ago when reports began to surface in the UK that hundreds-of-thousands of people were not being paid their salaries, which this British banking giant first tried to deny, but a few hours later blamed their failure to pay on a “computer glitch”.

http://www.whatdoesitmean.com/hsb1.jpg

"MoF experts in this report dismiss HSBC’s explanation of a “computer glitch” noting that this phrase is commonly used by Western banking and financial institutions as a “cover story” to mask their inability to access cash…and is likewise being used to explain what is preventing hundreds of American mutual and exchange-traded funds from providing their investors with the values of their holdings, and why one of the world’s largest brokerages, Charles Schwab, shut down earlier today too.

As HSBC is Britain’s largest bank, this report notes, it has appealed for an emergency loan from the Bank of England (BoE), with the BoE then appealing to the European Central Bank (ECB), and the ECB then appealing to the US Federal Reserve System (FRS).

With the US Congress having verified that over $16 trillion of the American peoples money was given by the US Federal Reserve to European corporations and banks, purportedly for “financial assistance” during and after the 2008 fiscal crisis, this report says, it remains “highly probable” they will do so again before HSBC totally collapses.

And with China continuing to dump hundreds-of-billions of its US held debt to stabilize its own markets and economies, this report concludes, the near collapse of HSBC today is but a prelude to the coming greater global financial collapse some experts have warned will “change the landscape of the entire world”.

Though not mentioned in this report, it is interesting to note that at least the American people are seeing the truth and, according to one news source, are “yanking their money from almost everything”…which in turn has led one of the elites major mouthpieces, the Financial Times, to publish an anonymous article calling for the outright abolition of cash in order to give central banks and governments more power. " link (http://www.whatdoesitmean.com/index1906.htm)

[Lost N Found]

And here is more on this Citigroup think.

http://www.zerohedge.com/news/2015-08-29/citigroup-chief-economist-thinks-only-helicopter-money-can-save-world-now


Citigroup Chief Economist Thinks Only "Helicopter Money" Can Save The World Now
Tyler Durden's picture
Submitted by Tyler Durden on 08/29/2015 23:30 -0400

Carry Trade Central Banks China Citigroup Equity Markets Evans-Pritchard Federal Reserve Free Money Global Economy Market Crash Monetary Policy Recession Shadow Banking Shenzhen The Economist Willem Buiter



inShare53


Having recently explained (in great detail) why QE4 (and 5, 6 & 7) were inevitable (despite the protestations of all central planners, except for perhaps Kocharlakota - who never met an economy he didn't want to throw free money at), we found it fascinating that no lessor purveyor of the status quo's view of the world - Citigroup's chief economist Willem Buiter - that a global recession is imminent and nothing but a major blast of fiscal spending financed by outright "helicopter" money from the central banks will avert the deepening crisis. Faced with China's 'Quantitative Tightening', the economist who proclaimed "gold is a 6000-year old bubble" and cash should be banned, concludes ominously, "everybody will be adversely affected."

China has bungled its attempt to slow the economy gently and is sliding into “imminent recession”, threatening to take the world with it over coming months, Citigroup has warned. As The Telegraph's Ambrose Evans-Pritchard reports, Willem Buiter, the bank’s chief economist, said the country needs a major blast of fiscal spending financed by outright "helicopter" money from the bank to avert a deepening crisis.

Speaking on a panel at the Council of Foreign Relations in New York, Mr Buiter said the dollar will “go through the roof” if the US Federal Reserve lifts interest rates this year, compounding the crisis for emerging markets.



"So why it matters is that the competence of the Chinese authorities as managers of the macro economy is really in question - the messing around with monetary policy, the hinting on doing things on the fiscal side through the policy banks. But I think the only thing that is likely to stop China from going into, I think, recession - which is, you know, 4 percent growth on the official data, the mendacious official data, for a year or so - is a large consumption-oriented fiscal stimulus, funded through the central government and preferably monetized by the People’s Bank of China.



Well, they’re not ready for that yet. Despite, I think, the economy crying out for it, the Chinese leadership is not ready for this.



So I think they will respond, but they will respond too late to avoid a recession, and which is likely to drag the global economy with it down to a global growth rate below 2 percent, which is my definition of a global recession. Not every country needs go into recession. The U.S. might well avoid it. But everybody will be adversely affected."

Or translated from 'economist' to English - a massive helicopter drop of cash (well 1s and 0s) into the inflating hands of Chinese soon-to-be-consumers is al lthat can the world from another recession... and The Chinese leadership may need to stare into the abyss before they actually pull the trigger. Just think of the pork prices?





Mr Buiter had some more to add on the idiocy of Chinese Equity markets. He said the stock market crash in Shanghai and Shenzhen...

...is a sideshow. Consumption effects, you know, wealth effects, minor. Almost no capex in China is funded through share issue. And so it is a symbol of the policy failure rather than intrinsically economically important.



China’s problems are excessive leverage in the corporate sector, in the local government sector, and the very fragile banking system, and shadow banking system. As Chen pointed out, it won’t be allowed to collapse because it is underwritten by the government, but it won’t be a source of great funding strength.



There is excess capacity and a pathetically low rate of return on capital expenditure, right? Invest 50 percent of GDP and get, even in the official data, 7 percent growth. The true data is probably something closer to 4 ½ percent or less. So it is an economy that, I think, is sliding into recession.



And what the stock market reminds us of, I think, especially this sequence of the government first cheerleading the stock market boom and bubble - because quite a few of the local pundits believed that this was a great way of deleveraging without paying for the corporate sector, to have a stock market bubble. And then, of course, the rather panicky and incompetent reaction in response.



So, once again, why it matters is that the competence of the Chinese authorities as managers of the macro economy is really in question.

* * *

So, it seems, all of a sudden - despite the permabulls, asset-gatherers, and commission-takers saying otherwise - China matters! As Bloomberg notes, China’s deepening struggles are starting to make a bigger dent in the global economic outlook.

“We’re seeing evidence that the slowdown is broader than expected” in China, saidMarie Diron, a London-based senior vice president at Moody’s and one of the report’s authors. “It’s long been clear that there’s a slowdown in the manufacturing and construction sector, but the service sector was more resilient. That’s still the case, but we’re seeing some signs of weakness in the labor market.”



“We continue to believe that the greatest risks to our growth forecasts remain to the downside,” Schofield wrote. Actual growth is “probably even lower” because of “likely mis-measurement in China’s official data,” he wrote.

* * *
Which, is exactly what we have been saying for the last 2 years as the rolling collapse of China's ponzi becomes ever more evident (and hidden by ever more manipulation)...

Here, for those curious, are links to previous discussions:

China Dumps Record $143 Billion In US Treasurys In Three Months Via Belgium
China's Record Dumping Of US Treasuries Leaves Goldman Speechless
How The Petrodollar Quietly Died And Nobody Noticed
Why It Really All Comes Down To The Death Of The Petrodollar
Devaluation Stunner: China Has Dumped $100 Billion In Treasurys In The Past Two Weeks
What China's Treasury Liquidation Means: $1 Trillion QE In Reverse
It's Official: China Confirms It Has Begun Liquidating Treasuries, Warns Washington

And so on and so forth.

In short, stabilizing the currency in the wake of the August 11 devaluation has precipitated the liquidation of more than $100 billion in USTs in the space of just two weeks, doubling the total sold during the first half of the year.

In the end, the estimated size of the RMB carry trade could mean that before it’s all over, China will liquidate as much as $1 trillion in US paper, which, as we noted on Thursday evening, would effectively negate 60% of QE3 and put somewhere in the neighborhood of 200bps worth of upward pressure on 10Y yields.

And don't forget, this is just China.

...

The potential for more China outflows is huge: set against 3.6trio of reserves (recorded as an “asset” in the international investment position data), China has around 2trillion of “non-sticky” liabilities including speculative carry trades, debt and equity inflows, deposits by and loans from foreigners that could be a source of outflows (chart 2). The bottom line is that markets may fear that QT has much more to go.

What could turn sentiment more positive? The first is other central banks coming in to fill the gap that the PBoC is leaving. China’s QT would need to be replaced by higher QE elsewhere, with the ECB and BoJ being the most notable candidates. The alternative would be for China’s capital outflows to stop or at least slow down. Perhaps a combination of aggressive PBoC easing and more confidence in the domestic economy would be sufficient, absent a sharp devaluation of the currency to a new stable. Either way, it is hard to become very optimistic on global risk appetite until a solution is found to China’s evolving QT.

[Lost N Found]

OMG, here is some more of this, you decide what may or might be going on here today.

http://www.theguardian.com/business/2015/aug/30/central-banks-cant-save-markets-crash-shouldnt-try


Cartoon by David Simonds showing financiers being helped out by central banker
Financiers have come to expect central banks to help them out. Illustration: David Simonds for the Observer

Sunday 30 August 2015 04.00 EDT

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Like children clinging to their parents, stock market traders turned to their central banks last week as they sought protection from the frightening economic figures coming out of China. Surely, they asked, the central banks would ward off the approaching bogeymen, as they had so many times since the 2008 crash.

The US Federal Reserve came up with the goods. William Dudley, president of the bank’s New York branch, hinted that the interest rate rise many had expected next month was likely to be delayed.

A signal that borrowing costs would remain at rock bottom was all it took. After Black Monday and Wobbly Tuesday, the markets recovered to regain almost all their recent losses.

It was just as if they had said to themselves: who cares if China’s economy is slowing; the “Greenspan put”, which so famously propped up US stock markets during the 1990s and early 2000s with one interest rate cut after another, is still in operation.

The meeting of the world’s most important central bankers in Jackson Hole, Wyoming, this weekend only confirmed the need for Britain, Japan, the eurozone and the US to keep monetary policy loose.

Yet the palliative offered by the Fed is akin to a parent soothing fears with another round of ice-creams despite expanding waistlines and warnings from the dentist and the doctor.
How China's economic slowdown could weigh on the rest of the world
Read more

According to some City analysts, the stock markets are pumped with so much cheap credit that a crash is just around the corner. And they worry that when that crash comes, the central banks are all out of moves to prevent the aftershocks from causing a broader collapse.

Since 2008 the Fed has pumped around $4.5 trillion into the financial system. The Bank of England stopped at £375bn. The Bank of Japan is still adding to its post-crash stimulus with around $700bn a year and the Frankfurt-based European Central Bank will have matched its cousin in Tokyo by the end of the year.

In each case, the central bank has adopted quantitative easing, which involves buying government debt to drive up its price. A higher price lowers the returns and encourages investors to go elsewhere in search of gains. It has meant a big shift in the portfolios of fund managers in favour of shares. Apart from a few blips due to the Greek crisis, stock markets have boomed. This summer, the FTSE 100 soared past 2008 levels to top its 1999 peak.
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But China, which has borrowed heavily to keep its economy moving, is running out of steam. Beijing has said it does not want to encourage another borrowing boom. But to prevent a crash, it is doing just that. In the last two weeks it has cut interest rates and loosened borrowing limits. It has even invested directly in the market, buying the shares of smaller companies.

So we face the shocking prospect of central bankers, in thrall to stock market gyrations, making the world a more unstable place with promises of yet more cheap credit.

There are a few alternative courses of action that Bank of England governor Mark Carney could still propose. He could tell politicians that the only sustainable way to get their economies moving is with hard cash from taxed wealth and incomes. If that is too unpalatable, governments should borrow directly to fund public infrastructure and productivity improvements.

And if the government is too embarrassed to admit to voters that it needs to borrow money, then the least central banks can do is sign deals with high street banks to lend, rather than hoping they will take QE funds and do something useful with them. Because the evidence is already there for all to see that investors would prefer to pump the money into the stock market and property, both of them inherently unstable and prone to violent crashes.
Google feels the EU heat

‘We have owned the internet,” Barack Obama crowed in a video interview this February. “Our companies have created it, expanded it, perfected it.” But from tax to privacy and now a string of antitrust investigations, one of those companies, Google, is under attack on multiple fronts in Europe.
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The US president argued that what has been presented as high-minded intervention by regulators is in fact a commercially driven bid to protect old-world technology companies from the Silicon Valley invaders.

Europe’s most powerful regulator, the Brussels competition policy chief Margrethe Vestager, has taken aim at Google Shopping, its price-comparison service. In April, she launched a legal process that could result in a big fine. On Thursday, the search giant filed a 150-page rebuttal.

First of all, Google says it has not choked off traffic to rival shopping price sites – the traffic it sends to these kinds of sites has increased by 227% over a decade (its own data shows). Sounds like a big number. Until you look at the growth in Google’s own traffic over that period. The number of searches worldwide now stands at somewhere near 1.2 trillion a year – an increase of 750% in a decade.

Google also wants its shopping service considered as part of a much larger group that includes actual retailers, like Amazon, and marketplaces, like eBay, where people also go to compare prices. Perhaps, but these are very different businesses. The capital needed to launch an online retailer, let alone one with a global presence and a one-day delivery guarantee, is much larger than the funding required for a price-comparison startup.

Google’s strongest point is that forcing a company to offer its services to rivals is a drastic measure normally reserved for monopoly utilities. Google is very useful, but it is not water or electricity. Google Shopping is a very niche service.

The argument about fair price comparison is a sideshow given the much bigger worries about privacy, security and tax that currently dog the digital world. But a victory for regulators here could lead to more assaults – on Google’s flight-comparison service and maps. Vestager has also launched an investigation into Android, the group’s market-leading phone software. Obama may be called on to cheer the home team again before this fight is over.
Two sides to the national living wage?

George Osborne has already claimed credit for Sainsbury’s increasing the base pay of its shop floor staff by 4%. “Britain deserves a pay rise so great Sainsbury’s staff will be paid at least national living wage early with biggest increases in 10 years,” he tweeted last week.

It is a indeed a credit to the chancellor that he has put pay on the agenda for Britain’s supermarkets, the country’s largest private employers, by announcing a national living wage in the budget last month. However, Sainsbury’s announcement is just one side of the coin: the other side is how it will finance the pay increase.

The Office for Budget Responsibility has estimated that the chancellor’s national living wage will lead to 60,000 job losses as companies fund the higher minimum pay by cutting jobs. Moody’s, the credit rating agency, has warned retailers could close stores, increase prices and employ more under-25s – who do not qualify for the national living wage. Perks for staff, such as in-store discounts, could also be at risk.

Sainsbury’s did not downgrade its profit forecasts at the same time as announcing the pay increase, so it must have found the money from somewhere – time will tell where.

[gripreaper]

I know Cramer is a sideshow freak, but maybe some of you remember this rant prior to the 2008 stock market collapse. Anyone freaking out this time?


http://www.youtube.com/watch?v=SWksEJQEYVU

And that is what they eventually did, opened the floodgates for helicopter money and dumped it into the world markets, not the world economies. Now remember, when they say "credit" what they mean is more debt. How can you increase the debt exponentially and not having the ability to repay disengages from this debt?

Sooner or later everyone is tapped out and cannot leverage anymore.

https://algosandblues.files.wordpress.com/2010/07/helicopter_ben1.jpg?w=229&h=300

Yea, that'll work, just keep dumping. This chart looks sustainable,right?

http://www.ottolinepublishing.com/wp-content/uploads/2011/03/Nation-Debt-.jpg

It is now upwards of 18 trillion. The one number that should scare you in this debt clock is the currency and credit derivatives. Look at how much it has changed since 2000.


http://www.usdebtclock.org/sources/transparent2.gif

[ThePythonicCow]

first reported Citigroup moving assets to Russia to prevent seizure, now the world's largest bank failing...
The only mention of this report that I can find is from Sorcha Faal: http://www.whatdoesitmean.com/index1905.htm

So its credibility is less, in my view.


... now the world's largest bank [HSBC] failing...

"The Ministry of Finance (MoF) is reporting today that British banking giant HSBC is nearing a total collapse after its having lost a staggering nearly $1 trillion due to the ongoing Great 2015 Global Market Crash and earlier today it completely ran out of cash to pay its obligations and depositors.
... link (http://www.whatdoesitmean.com/index1906.htm)
That too, Sorca Faal :)

[amor]

The Rockefeller''s and Rothschild's have planned to abolish CASH so that they may CHIP all humans on earth. CHIPS will not merely carry information but according to recent information on the web the Chips will change our DNA so that we are no longer able to exercise FREE CHOICE in anything and have become like Chickens in the coop, awaiting death at the farmer's hand. It is time to turn on those who have planned this and REMOVE THEM PERMANENTLY.

[Rocky_Shorz]

actually all credit cards need chips installed by October, no one is going to slice open your head and pop a chip in...

GPS tracking on every human that carries a bank card...

American Express, never leave home without it...

http://cdn.arstechnica.net/wp-content/uploads/2014/07/3323417297_154f5f66b3_z.jpg

Europe and Asia have been using these cards for years.


now if you are seriously worried about a chip on a card in your wallet changing your DNA, let me remind you of something that will make a little more sense...

Full GPS tracking and continuous transmission, you personally place to your head many times a day, never set it down, it goes in your pocket and is with you every waking hour, captivating your mind with games, knowledge and entertainment... You most likely sleep with it within arms reach every night...

http://techobird.com/wp-content/uploads/2015/04/Optimized-72.jpg

[ThePythonicCow]

actually all credit cards need chips installed by October, no one is going to slice open your head and pop a chip in...
From the looks of what's in my wallet, this applies just to credit cards, not to debit (ATM) cards, not to the various other pieces of plastic I carry.

That reduces the size of the "problem".

Now I am wondering if I could reduce it further by taping two small pieces of aluminum foil, one front side and the other backside, over the chip. The chip is about 8 mm by 12 mm, so two pieces of foil, perhaps 10 mm by 15 mm each, would cover the chip, front and back, while still allowing the card to be fully usable for its magnetic stripe, for visual inspection by the more meticulous clerk, for taking impressions on the old fashioned ink and slider card readers, and (of course) for online purchases.

Does anyone have any idea how much (if any) that would reduce the ease of reading the chip?

[Rocky_Shorz]

a tin foil hat for your credit cards? :pound:

I added to my post above, one of those DOH! moments...

"A few years ago, anyone suggesting you line your wallet with copper mesh to keep others from secretly scanning your credit cards for private information would have been relegated to the tinfoil-hat brigade, Area 51 fanatics or the lunatic fringe. That was before Edward Snowden, the NSA scandal and data breaches with Target and other national companies. These showed everyday people that just about everything important in their personal and financial world is embedded in a database, usually one they carry around in a back pocket or purse in the form of an RFID, or Radio Frequency Identification chip."

[ThePythonicCow]

... let me remind you of something that will make a little more sense...

Full GPS tracking and continuous transmission, you personally place to your head many times a day, never set it down, it goes in your packet and is with you every waking hour, captivating your mind with games, knowledge and entertainment... You most likely sleep with it within arms reach every night...
Not me ... my dumb cell phone sits in my car, with its battery removed :).

On the other hand, no decent intel agency needs such high tech means to find me. I seldom get more than 100 feet from my computer :ROFL:

[Rocky_Shorz]

first reported Citigroup moving assets to Russia to prevent seizure, now the world's largest bank failing...
The only mention of this report that I can find is from Sorcha Faal: http://www.whatdoesitmean.com/index1905.htm

So its credibility is less, in my view.


... now the world's largest bank [HSBC] failing...

"The Ministry of Finance (MoF) is reporting today that British banking giant HSBC is nearing a total collapse after its having lost a staggering nearly $1 trillion due to the ongoing Great 2015 Global Market Crash and earlier today it completely ran out of cash to pay its obligations and depositors.
... link (http://www.whatdoesitmean.com/index1906.htm)
That too, Sorca Faal :)

but then again...

" HSBC system failure leaves thousands facing bank holiday without pay

Problem with BACS payment system means salaries have not arrived for many customers as bank faces barrage of complaints

Thousands of people have been left without their salaries because of an IT glitch at HSBC that means employers who use its business banking accounts cannot make payments.

Some 275,000 individual payments failed to go through on Friday leaving potentially hundreds of thousands of people without their pay on the Friday before the bank holiday weekend.

The bank has suffered a problem with the electronic payments system its business banking customers use to make, among other things, salary payments.
A history of UK banks' system failures
Read more

“None of our 150 staff have been paid, which before a long weekend is a disaster,” the owner of one business told the Guardian. “HSBC is very non-committal as to whether any monies will clear between now and Tuesday when the banks reopen, and it’s causing a huge concern for our young workforce who were relying on their pay before the bank holiday.”

She added: “Most have been forced to go over their overdrafts and some will literally be left with no funds until it’s resolved.”

Carl Chapman, who runs an IT services business in London, said none of his 130 staff had been paid. “We obviously pushed all the right buttons to make payments a few days ago and assumed HSBC would do its bit. We discovered instead at about 7.30 on Friday morning that none of our staff had received their money.”

Chapman said the firm had paid its employees “emergency funds” but that he is still awaiting a response from the bank.

Meanwhile, employees of firms that bank with HSBC are experiencing a myriad of problems ranging from bounced payments and overdraft charges to having to make new plans for the bank holiday..." link (http://www.theguardian.com/money/2015/aug/28/many-hsbc-customers-facing-payday-without-pay)

[ThePythonicCow]

That too, Sorca Faal :)

but then again...

" HSBC system failure leaves thousands facing bank holiday without pay
Yes, from what I can tell (not really having looked closely) HSBC did have a major payment problem, as you report.

I have no information (that I consider reliable) on whether this was at its core a computer problem, or a funding problem.

[Rocky_Shorz]

something major floated the markets, their payback should have been Monday, but Obama called on Rule 48 to reverse all transactions on Monday morning...

that might have been enough to tank the bankers, a while back, Fulford Mentioned the Central banks had changed hands...

we have heard they can no longer print their own money, could this all be real?

I'm still working on Cucabanz... :sun:

[Rocky_Shorz]

"In an announcement little regarded outside of bankruptcy court, America’s only producer of 17 minerals known as “rare earth elements” said it had been forced to abandon production because of its ailing finances and the worldwide commodity crash.

Molycorp Inc., now in Chapter 11 bankruptcy protection, said it was suspending indefinitely all production at Mountain Pass, Calif. — once the world’s largest rare-earths mine.

And that leaves almost all the world’s production in the hands of China — a country which already has a track record of using its clout to intimidate others.

Rare earths are a group of chemical elements that are essential for the manufacture of many modern defense and weapons systems, including planes, tanks, ships, submarines, missiles and lasers. According to the federal government’s numbers, you can’t make an F-35 Lightning II plane, for example, without 920 pounds of rare earths, and you can’t make a Virginia-class nuclear sub without 9,200 pounds. Without rare earths your “guided” missiles won’t fly straight.

Rare earths are also used in a wide variety of high-tech devices in the civilian world, from a smartphone to a Toyota Prius.

And China now controls more than 95% of the world’s total supply of these essential materials.

Back in the 1950s and 1960s the U.S. dominated global production of rare earths, until driven out by the Chinese. The world’s democracies only woke up to the menace in 2010, when China suddenly announced sharp restrictions on their exports — and then ordered an embargo of shipments to Japan during a territorial dispute.

A report the Government Accountability Office showed that the U.S. had become alarmingly exposed to Chinese control. Many military systems depended on rare earths and would continue to do so for many years to come. Yet after years of Chinese dominance, the U.S. rare earths industry was almost nowhere. Furthermore, warned the GAO, it would take up to 15 years to rebuild U.S. capabilities fully. Mines would have be prospected, sunk and put into operation, new technologies developed, patents acquired, and factories and infrastructure built.

Molycorp re-opened the Mountain Pass mine in the wake of the study and the rise in rare earth prices caused by Chinese export restrictions. By an amazing coincidence, China then reversed the restrictions, prices collapsed, and the mine filed for bankruptcy.

That didn’t stop the Pentagon from taking a blasé view of its rare earth supplies back in 2012. Sure, we may need rare earths for most of our systems, the Department of Defense said in a report. But that shouldn’t be a problem, it noted, since the Mountain Pass mine is coming back on line.

So much for that..." link (http://www.marketwatch.com/story/china-wins-the-battle-of-mountain-pass-2015-08-28)

[Redstar Kachina]

..........

[idiit]

Global Trade Is In Freefall".


South Korea, which last night reported an unprecedented 14.7% collapse in exports, far worse than the -5.9% consensus estimate, and more than 4 times worse than July's 3.4%.

http://www.zerohedge.com/news/2015-09-01/biggest-plunge-south-korea-exports-2009-confirms-collapse-global-trade

economic indicators are pointing to a global severe recession/depression.

the usa gdp #'s are grossly overinflated because much of what they call gdp is actually under reported inflation.

the p/e ratios at this time when the world is experiencing global trade collapse are absolutely ridiculous.

the market has to downward correct, imminently by the pace of events.

[mgray]

My take (http://wp.me/ppklu-eA) on China's manufacturing going into contraction, which is cratering global equities.

[Baby Steps]

Their Business banking system in UK was very slow and unstable on Friday and Today. It is being passed off as a Computer issue, however not honouring BACS (Three Day) payments might be liquidity - just rob the payrolls!

[gripreaper]

Your little bounce was just short covering and trapped longs selling into strength. Dow futures down 400 points half hour before market open.

[Bill Ryan]

.
This may or may not be the place to report this — but as another data point on our sometimes-confusing graph, Simon Parkes shared this in his latest newsletter, just out:






Breaking news as of 31 August: inside information reaching me would appear to suggest that the Hong Kong and Shanghai Bank is on the verge of collapse having suffered catastrophic losses in China. As we write this the situation is changing by the minute and we expect more banks to be affected. In Great Britain HSBC applied to the Bank of England for an emergency bail out - this was rejected, the Bank of England appealed to the European Central Bank for help - that was rejected and as we write an appeal has gone to the Federal Reserve of the USA, our inside sources has informed me that the Fed is willing to bail out the Bank if necessary.

[spacejack]

I read a lot of info here that I think is a bit off. The shmitah info is right as far as I can tell. But I've watched a lot of Jonathan Cahns videos and I think he is moulding the story to prop himself. Not sure but he is pretty vague though I didnt read his book. I've been trying to read about the jubilee but everything official doesnt line up with the 2015 sept alignment. This is like the mayan calendar all over again. Im trying to find where I read this, but I read that this is the 6th shmitah and the jubilee start for another 7 years. But the blood moons part is pretty creepy.

Also, I think this whole shmitah thing is for internal use. I dont think it was ever intended to imply action by god, but to create a balance between man and earth. So those who are in balance wont be affected, but those who are looking to profit in these times will feel negative effects. But I dont think a new mesiah is coming or destruction, or anything like that. Maybe some financial resets because there are a lot of religious (sometimes extremist) people in power.

[Selene]

.
This may or may not be the place to report this — but as another data point on our sometimes-confusing graph, Simon Parkes shared this in his latest newsletter, just out:






Breaking news as of 31 August: inside information reaching me would appear to suggest that the Hong Kong and Shanghai Bank is on the verge of collapse having suffered catastrophic losses in China. As we write this the situation is changing by the minute and we expect more banks to be affected. In Great Britain HSBC applied to the Bank of England for an emergency bail out - this was rejected, the Bank of England appealed to the European Central Bank for help - that was rejected and as we write an appeal has gone to the Federal Reserve of the USA, our inside sources has informed me that the Fed is willing to bail out the Bank if necessary.


A search for recent news re HSBC shows they have been having clearing (i.e. cash flow) problems over the past week which they are attributing to “IT glitches… new operating system…” But they would say that, wouldn’t they? Mellon is also involved here. Not good.

No word yet about this on ZeroHedge. We’ll see.

If the trigger for HSBC’s demise (if so) is ‘losses in China’, then it would perfectly explain China’s gold purchases, yuan devaluation and now dumping of US treasuries: Having fed the western banks enough rope, they are now reeling it in. Goodbye Fed?

And if I ask myself: Would China methodically do a thing like that? The answers is yes, absolutely.

Cheers,

Selene

[ThePythonicCow]

From RT.com Putin says dump dollar (http://www.rt.com/business/313967-putin-says-dump-dollar/):

==========


Russian President Vladimir Putin has drafted a bill that aims to eliminate the US dollar and the euro from trade between CIS countries.

This means the creation of a single financial market between Russia, Armenia, Belarus, Kazakhstan, Kyrgyzstan, Tajikistan and other countries of the former Soviet Union.

“This would help expand the use of national currencies in foreign trade payments and financial services and thus create preconditions for greater liquidity of domestic currency markets”, said a statement from Kremlin.

The bill would also help to facilitate trade in the region and help to achieve macro-economic stability.

==========

There's more at the above link.

... and the beat goes on ... The Day The Music Dollar Died. (http://projectavalon.net/forum4/showthread.php?84350-Gerald-Celente-has-put-a-date-on-the-upcoming-stock-market-crash.-When&p=994122&viewfull=1#post994122)

[Callista]

This from a friend in Wisconsin:

http://investmentwatchblog.com/new-glitch-preventing-investors-from-getting-money-out-of-mutual-funds-and-etfs/

I know when I went to my bank this past Friday they were having problems taking care of people because they said they had computer problems all day long.

¤=[Post Update]=¤

This also from Simon Parkes' September newsletter:

Last Monday Damien McBride former special advisor to the past Prime Minister of Great Britain, Gordon Brown, tweeted that in his opinion an economic collapse 20 times greater than the collapse in 2008/9 was imminent. He went on to tweet that people should stock up on tinned food and bottled water building a stock to cover them for one month. He also said that people should draw out their money from the banks.

[conk]

The Fourth Turning: An American Prophecy - What the Cycles of History Tell Us About America's Next Rendezvous with Destiny

http://www.amazon.com/Fourth-Turning-American-Prophecy-Rendezvous/dp/0767900464/ref=sr_1_1?s=books&ie=UTF8&qid=1441128259&sr=1-1&keywords=the+fourth+turning


After researching historical patterns, the authors (Generations: The History of America's Future, Morrow, 1991) conclude that America is on the verge of crisis. They substantiate their hypothesis by identifying and tracing a repetitive, four-stage historical cycle that, throughout recorded time, started on a high note and ended in hardship. Narrator Michael Tilford's polished, convincing voice and steady pacing lend an air of legitimacy to the authors' assertions.

----------------------
This book has convinced many to sell their goods in the city and move to a rural or farm area.

Conk

[ThePythonicCow]

.
This may or may not be the place to report this — but as another data point on our sometimes-confusing graph, Simon Parkes shared this in his latest newsletter, just out:






Breaking news as of 31 August: inside information reaching me would appear to suggest that the Hong Kong and Shanghai Bank is on the verge of collapse having suffered catastrophic losses in China. As we write this the situation is changing by the minute and we expect more banks to be affected. In Great Britain HSBC applied to the Bank of England for an emergency bail out - this was rejected, the Bank of England appealed to the European Central Bank for help - that was rejected and as we write an appeal has gone to the Federal Reserve of the USA, our inside sources has informed me that the Fed is willing to bail out the Bank if necessary.

After spending a bit of time on the World Wide Web of Confusion just now, I remain entirely undecided as to whether the cause of HSBC's payment woes were due to an aging technical infrastructure, or due to a near-death experience of funds shortage.

I am however leaning toward blaming their technical infrastructure, with a deliberate chaser of a fabricated rumour blaming a funds shortage, as part of the ongoing effort to spread fear and doubt amongst us observers.

I can find no basis or claimed source for the rumour that Simon passed along; I would not expect a major bank failure to start with failures to dispense payrolls; and this would not be the first time that HSBC's aging infrastructure failed them.

[Richard S.]

.
This may or may not be the place to report this — but as another data point on our sometimes-confusing graph, Simon Parkes shared this in his latest newsletter, just out:






Breaking news as of 31 August: inside information reaching me would appear to suggest that the Hong Kong and Shanghai Bank is on the verge of collapse having suffered catastrophic losses in China. As we write this the situation is changing by the minute and we expect more banks to be affected. In Great Britain HSBC applied to the Bank of England for an emergency bail out - this was rejected, the Bank of England appealed to the European Central Bank for help - that was rejected and as we write an appeal has gone to the Federal Reserve of the USA, our inside sources has informed me that the Fed is willing to bail out the Bank if necessary.


For those interested, here is the news letter...

http://us9.campaign-archive1.com/?u=4a8bbd95efd926ee0efeb4a3b&id=2b59a1c538&e=3653842ef4

[Rocky_Shorz]

.
This may or may not be the place to report this — but as another data point on our sometimes-confusing graph, Simon Parkes shared this in his latest newsletter, just out:






Breaking news as of 31 August: inside information reaching me would appear to suggest that the Hong Kong and Shanghai Bank is on the verge of collapse having suffered catastrophic losses in China. As we write this the situation is changing by the minute and we expect more banks to be affected. In Great Britain HSBC applied to the Bank of England for an emergency bail out - this was rejected, the Bank of England appealed to the European Central Bank for help - that was rejected and as we write an appeal has gone to the Federal Reserve of the USA, our inside sources has informed me that the Fed is willing to bail out the Bank if necessary.

After spending a bit of time on the World Wide Web of Confusion just now, I remain entirely undecided as to whether the cause of HSBC's payment woes were due to an aging technical infrastructure, or due to a near-death experience of funds shortage.

I am however leaning toward blaming their technical infrastructure, with a deliberate chaser of a fabricated rumour blaming a funds shortage, as part of the ongoing effort to spread fear and doubt amongst us observers.

I can find no basis or claimed source for the rumour that Simon passed along; I would not expect a major bank failure to start with failures to dispense payrolls; and this would not be the first time that HSBC's aging infrastructure failed them.

come on, you can say it, Sorcha said it first so it must be disinfo... :pound:

500 point drop in the market means nothing...

dang computer glitches

the disinfo was passing truths that would be disregarded by small investors so the big guys could be the first to dump...

as too many little investors catch on, they rule48 the trades back them out and toss them behind the big boys...


this is Sorcha's report from Friday


Hey Guys,

we should be able to confirm this report, but this is more than a hickup

first reported Citigroup moving assets to Russia to prevent seizure, now the world's largest bank failing...

"The Ministry of Finance (MoF) is reporting today that British banking giant HSBC is nearing a total collapse after its having lost a staggering nearly $1 trillion due to the ongoing Great 2015 Global Market Crash and earlier today it completely ran out of cash to pay its obligations and depositors.

According to this report, HSBC is a multinational banking and financial services company headquartered in London, United Kingdom and is the world's fourth largest bank by total assets worth $2.67 trillion.

Not known to many Westerners, this report continues, HSBC was established in its present form in London in 1991 by the Hong Kong and Shanghai Banking Corporation Limited to act as a new group holding company and the origins of this banking giant mainly lies in Hong Kong, and also to a lesser extent Shanghai, where branches were first opened in 1865.

Due to the staggering crash of the Shanghai Composite index that has shed 38% of its value since 12 June, this report explains, HSBC lost nearly $700 billion of its value in China while a further estimated $300 billion has been lost due to the Dow’s collapse of over 1,800 points since its high for the year was reached on 27 May.

To the consequences of this massive $1 trillion HSBC loss, this report says, began hours ago when reports began to surface in the UK that hundreds-of-thousands of people were not being paid their salaries, which this British banking giant first tried to deny, but a few hours later blamed their failure to pay on a “computer glitch”.

http://www.whatdoesitmean.com/hsb1.jpg

"MoF experts in this report dismiss HSBC’s explanation of a “computer glitch” noting that this phrase is commonly used by Western banking and financial institutions as a “cover story” to mask their inability to access cash…and is likewise being used to explain what is preventing hundreds of American mutual and exchange-traded funds from providing their investors with the values of their holdings, and why one of the world’s largest brokerages, Charles Schwab, shut down earlier today too.

As HSBC is Britain’s largest bank, this report notes, it has appealed for an emergency loan from the Bank of England (BoE), with the BoE then appealing to the European Central Bank (ECB), and the ECB then appealing to the US Federal Reserve System (FRS).

With the US Congress having verified that over $16 trillion of the American peoples money was given by the US Federal Reserve to European corporations and banks, purportedly for “financial assistance” during and after the 2008 fiscal crisis, this report says, it remains “highly probable” they will do so again before HSBC totally collapses.

And with China continuing to dump hundreds-of-billions of its US held debt to stabilize its own markets and economies, this report concludes, the near collapse of HSBC today is but a prelude to the coming greater global financial collapse some experts have warned will “change the landscape of the entire world”.

Though not mentioned in this report, it is interesting to note that at least the American people are seeing the truth and, according to one news source, are “yanking their money from almost everything”…which in turn has led one of the elites major mouthpieces, the Financial Times, to publish an anonymous article calling for the outright abolition of cash in order to give central banks and governments more power. " link (http://www.whatdoesitmean.com/index1906.htm)

[ThePythonicCow]

come on, you can say it, Sorcha said it first so it must be disinfo... :pound:

500 point drop in the market means nothing...

dang computer glitches

the disinfo was passing truths that would be disregarded by small investors so the big guys could be the first to dump...

as too many little investors catch on, they rule48 the trades back them out and toss them behind the big boys...

I didn't claim that everything Sorcha said was disinfo ... nor did I claim that major drops in the markets mean nothing.

As with our food, water, air, and medicines, they mix some good stuff in with the toxic, info in with the disinfo, ...

Rather like dumpster diving to get one's food, one has to sort through what's there to find what's edible, or in this case credible.

This is not even close to an exact science, and it helps to have a strong stomach, as sometimes you're going to guess wrong.

P.S. -- If I read your post above correctly, Rocky, it would seem that Sorcha was the original source for the "alternative" explanation for the cause of HSBC's problems last week. I will admit that that puts the matter to rest in my mind. Thanks!

[Rocky_Shorz]

heheh...

glad I could help...

then you shouldn't be too worried about Russia moving troops into Syria to Smash Isis then...

another first from Sorcha

"Putin Authorizes Air Strikes On “American Interests” As Thousands Of Russian Troops Pour Into Syria

By: Sorcha Faal, and as reported to her Western Subscribers

The Ministry of Defense (MoD) is reporting today that President Putin has authorized air strikes against “any and all” American interests located in the Levant War Zone (Eastern Mediterranean) and has further ordered the immediately deployment to Syria of (at least) 2 air squadrons, 1 bomber squadron, 2 assault squadrons and 1 intelligence squadron whose mission will be to “target and degrade” the military capability of Islamic State of Iraq and the Levant (ISIL/ISIS) forces currently rampaging throughout this region.

Though the timing of these military deployments remain highly restricted in this MoD report, Israeli news sources are also reporting that Federation combat aircraft are even now beginning to operate over Syria and have further stated:

“In the coming weeks thousands of Russian military personnel are set to touch down in Syria, including advisors, instructors, logistics personnel, technical personnel, members of the aerial protection division, and the pilots who will operate the aircraft. Arab media outlets have [also] recently published reports that Syria and Russia were looking for an additional port on the Syrian coast, which will serve the Russians in their mission to hasten the pace of the Syrian rearmament.”" link (http://www.whatdoesitmean.com/index1908.htm)

[Mandala]

What about what's in our bank accounts? Will it be gone or be worthless?

[Redstar Kachina]

..........

[Rocky_Shorz]

What about what's in our bank accounts? Will it be gone or be worthless?

from what I am able to find, is stocks will continue to exists, with corporate value to back it, money will be exchanged, but anything invested in derivatives will collapse as will most bonds.

currency outside of banks will have a very short window for exchange.

foreign stockpiles of Bills in suitcases will have no value for exchange.

I'm not convinced my credit union has any exposure to the troubles ahead, so I am leaving mine in the bank and CDs

I have $800 face value of silver coins on hand with a few weeks worth of necessity cash in case tomorrow, ATM systems were to drop down...

I still have faith in the system for a quick recovery.

[ThePythonicCow]

What about what's in our bank accounts? Will it be gone or be worthless?

If I had more money than I could afford to lose in the few largest banks, such as JPMorgan Chase, Bank of America, Wells Fargo, Citigroup and U.S. Bancorp, I'd be tempted to move it to smaller local banks and credit unions. The FDIC has about as much ability to cover a collapse of one of these largest banks as a mouse has of keeping an elephant from falling, and I would guess that some of these largest banks are more likely to be involved in massive fraud and risk.

I expect that we (in the US) will see a series of devaluations and other emergency measures, that will reduce the actual value (purchasing power) of what we have in most banks, and of cash on hand, by a factor of about two to one. There will be little escaping this devaluation, outside of not having US Dollars in the first place. This can be done by (1) already being poor, (2) having precious metals, in hand, or (3) having other worthwhile goods in hand, such as food, cigarettes, booze, ...

Minimize debt as much as possible ... better to have little in the bank and no mortgage or car payments, than to have a lot in the bank, and substantial monthly debt payments. There will be a tendency for those institutions you owe money to to still want their money, but for those who have your money, or promises of future benefits (retirement plans, insurance plans, ...), to be unable to pay it all. Income from jobs will be at risk; for example many local, state and federal government jobs will need to be trimmed back, and some corporations will find themselves on the wrong side of these changes and have to trim back (this is already happening). Monthly debt payments become more difficult if you lose your job.

The steady and reliable increase in the value of US Treasuries, and hence of other AAA bonds, over the last 30 plus years will come to an end. These safest of investments will probably, in the short term, spike higher in value, as other riskier investments collapse first, and then collapse, vanish, or otherwise suffer massive restructuring. The actual value (purchasing power) of federal government social payments (social security, medicare, medicaid, food stamps, unemployment, veterans benefits, etc, etc) will decline substantially, in various ways.

[gripreaper]

The actual value (purchasing power) of federal government social payments (social security, medicare, medicaid, food stamps, unemployment, veterans benefits, etc, etc) will decline substantially, in various ways.

Too bad we bought into the Roosevelt new deal, the Federal Reserve deal, and the corporate government statutory US citizen deal, and abrogated all of our resources, assets, labor and energy to these psychopaths to take care of us when times get hard, times they themselves created I might add.

Its a pretty raw deal and will be a pretty rude awakening for many.

[jagman]

"This is absolutely Not an End of the world thread!"
I Never have claimed that this is 100% outcome this is one of many
possibilities I feel that could happen. I hope they don't!!1 But if it
does happen We Are Strong!!! We will find
our way!!! I've been thinking maybe I would call in on C2C and ask
George if he would consider one of those "Thought Experiments"
We have several major events that could hit us at anytime that
could end us and I also think were close to Greatness. We can
do anything we want! We have the power to create many great things
but we have to learn to eliminate hate form our hearts.
One of my Favorite stories from the bible is when Jesus goes and sits
down with Mathew, "The THE HATED TAX COLLECTOR" He does this in
front his apostles and they all got mad! They said to Jesus how can you
Break bread with the tax collector Mathew and Jesus basically said

Mathew 9:10
Later Jesus was having dinner at Matthew's house. Many tax collectors and sinners came to eat with Jesus and his disciples. 11The Pharisees saw this and asked his disciples, "Why does your teacher eat with tax collectors and sinners?" When Jesus heard that, he said, "Healthy people don't need a doctor; those who are sick do. Learn what this means: 'I want mercy, not sacrifices.' I've come to call sinners, not people who think they have God's approval."

[idiit]

i'm optimistic. I feel we are on a + timeline that necessitates the removal of the old before we can get on with the new. preps will smooth out some of the bumps in the short term volaitility.

[K626]

UK banks did some major stress testing last year as preparation for a Grexit. The biggest faultline is Deutsche Bank's exposure to derivatives (not many are aware of this) which is greater than the whole German economy combined.

K

[mgray]

So China takes a two-day holiday to celebrate the Japanese defeat in WWll (no comment on that) and all is well with the world.

The US has monthly jobs numbers Friday, which may be below 200K, taking a Fed rate rise in Sept. off the table.

HSBC doth protest too much, when I queried them on needing a bailout. The bank vehemently denied the fact that they needed a loan, but would not go on the record with a response with asked if they went to the Fed's Swap Window.

So journalistically can't say they did, without corroboration from another source, which will not be the other party, the Fed. The stock has moved slightly higher this week, but so did Lehman Bros. before the fall.

I will keep an eye on this.

[Pam]

So China takes a two-day holiday to celebrate the Japanese defeat in WWll (no comment on that) and all is well with the world.

The US has monthly jobs numbers Friday, which may be below 200K, taking a Fed rate rise in Sept. off the table.

HSBC doth protest too much, when I queried them on needing a bailout. The bank vehemently denied the fact that they needed a loan, but would not go on the record with a response with asked if they went to the Fed's Swap Win

So journalistically can't say they did, without corroboration from another source, which will not be the other party, the Fed. The stock has moved slightly higher this week, but so did Lehman Bros. before the fall.

I will keep an eye on this.



mgray, if this turns out to be true, how do you see this going down?

[Pam]

It looks like good old HSBC has had some serious problems in the past. It boggles my mind how the government can accuse a corporation of all this crap and still allow them to be in business!!! Of course the government would have to have authority over that corporation, and it doesn't seem to be the case here. Can you imagine an average citizen being accused of what this bank was accused of and walking away with a fine???? I know how corrupt things are, at least I think I do, but it never ceases to turn my stomach.



Home » Office of Public Affairs » Briefing Room » Justice News
Justice News
Department of Justice
Office of Public Affairs
FOR IMMEDIATE RELEASE
Tuesday, December 11, 2012
HSBC Holdings Plc. and HSBC Bank USA N.A. Admit to Anti-Money Laundering and Sanctions Violations, Forfeit $1.256 Billion in Deferred Prosecution Agreement
Bank Agrees to Enhanced Compliance Obligations, Oversight by Monitorin Connection with Five-year Agreement


“HSBC is being held accountable for stunning failures of oversight – and worse – that led the bank to permit narcotics traffickers and others to launder hundreds of millions of dollars through HSBC subsidiaries, and to facilitate hundreds of millions more in transactions with sanctioned countries,” said Assistant Attorney General Breuer. “The record of dysfunction that prevailed at HSBC for many years was astonishing. Today, HSBC is paying a heavy price for its conduct, and, under the terms of today’s agreement, if the bank fails to comply with the agreement in any way, we reserve the right to fully prosecute it.”

“Today we announce the filing of criminal charges against HSBC, one of the largest financial institutions in the world,” said U.S. Attorney Lynch. “HSBC’s blatant failure to implement proper anti-money laundering controls facilitated the laundering of at least $881 million in drug proceeds through the U.S. financial system. HSBC’s willful flouting of U.S. sanctions laws and regulations resulted in the processing of hundreds of millions of dollars in OFAC-prohibited transactions. Today’s historic agreement, which imposes the largest penalty in any BSA prosecution to date, makes it clear that all corporate citizens, no matter how large, must be held accountable for their actions.” ......

[meat suit]

I just came across this down detector with the latest hsbc issues
they locked our account credit card today claiming there was suspected fraud activity with our card.....bulls##t...
https://downdetector.co.uk/problems/hsbc

[idiit]

Peter Hambro: "It's Virtually Impossible To Get Physical Gold In London"
Tyler Durden's pictureSubmitted by Tyler Durden on 09/13/2015

http://www.zerohedge.com/news/2015-09-13/peter-hambro-its-virtually-impossible-get-physical-gold-london

the paper physical gold markets are 200/1 ( two hundred oz/gold sold for every oz of physical gold available for delivery).

the entire global financial system is predicated upon paper debt based ( not collateral) frn$ since the frn$ is the global currency.

the NWO types have depressed the valuations in frn$ and other fiat currencies of physical gold and silver for far longer than since the world went off the gold standard ( 1971/1972).

if the physical gold/silver is no longer available the Ponzi party is over.

according to recent posts from varied sources on the physical gold/silver markets the means to maintain the illusion that fiat currency has value is about to end.

when the herd hits the water holes ( rush in to exchange worthless Donald duck toilet paper) the holes will be dry.

soon no one will exchange anything of value for worthless fiat.

all paper markets ( stocks, savings accounts, ira's, etc...) that pay out in frn$ or any other fiat currency look to be totally worthless at some time soon.

good luck trying to exchange paper for physical in the near future. if you are going to make a move you need to get your horses out of the barn before the barn burns down, not after.

[idiit]

Chinese shares continued to head south on Monday, with the benchmark Shanghai Composite Index dipping 2.67 percent to end at 3,114.80 points.

The Shenzhen Component Index lost 6.55 percent to close at 9,778.23 points. The ChiNext Index, which tracks China's NASDAQ-style board of growth enterprises, lost 7.49 percent to close at 1,906.21 points.


http://en.cncnews.cn/news/v_show/52199_China_stocks_close_lower_on_Monday.shtml

[idiit]

Communist China Battles Stock Market Plunge With Tyranny, Terror
Monday, September 14, 2015
By Paul Martin
by Alex Newman
TheNewAmerican.com
Monday, 14 September 2015


Whether the autocratic strategy will work to stem the market volatility — even in the short-term, to say nothing of over the long-term — remains to be seen. Chinese stocks are still cratering despite the heavy-handed response. In less than a month between mid-June and early July, Communist China’s two primary markets crashed by about 30 percent, losing over $2 trillion in value. In August, the sell-off was brutal as well. On September 14, shares continued their downward trajectory. Just in the last few months, Chinese stock markets have lost close to 40 percent of their value, and experts say there is plenty of room left to keep falling.

http://revolutionradio.org/?p=108514


Indeed, data showed heavy investor redemptions last month, with total net assets of Chinese stock funds slumping 44 per cent to 724.8 billion yuan. Stocks fell about 12 per cent in August.


Small-caps tumbled on Tuesday, with the CSI300 IT index slumping 4.5 per cent, and Shenzhen's growth board ChiNext tanking 3.3 per cent.

http://www.businesstoday.in/markets/stocks/china-stocks-fall-csi300-index-shanghai-composite-index-down/story/223759.html

^ despite selling of many stocks ruled illegal and billions of stimulus the world's super player is suffering extreme stock plunges.

[idiit]

Despite some strangely optimistic expectation of a -0.5 print, September Empire Manufacturing printed -14.67, showing absolutely no hockeynesian dead-cat bounce mean-reversion. Hovering at the worst levels since April 2009, the underlying data is a total disaster. New Orders remain firmly negative and inventories collapse (who could have seen that coming?), and even more concerningly, employment and average workweek plunged into negative territory for the first time in over a year. Simply put, this report suggests total carnage in the manufacturing sector

http://www.zerohedge.com/news/2015-09-15/recession-looms-empire-manufacturing-collapse-show-no-signs-bounce


Industrial Production Plunges Most In 3 Years As Auto-Maker "Nightmare" Comes True
Submitted by Tyler Durden on 09/15/2015 - 09:26
Industrial Production missed expectations notably, dropping 0.4% MoM (the 6th of the last 8 months) missing expectations of a 0.2% drop (and notably weaker than the +0.9% upward revised July print). Thjis is the biggest MoM drop since August 2012. The big driver of the decline - just as we warned of nightmares ahead - was auto assemblies which plunged to a 4-year low by the most since Jan 2009

http://www.zerohedge.com/news/2015-09-15/industrial-production-plunges-most-3-years-auto-maker-nightmare-comes-true

remember that gdp #'s are already over inflated because the ridiculously quoted cpi inflation #'s are vastly underreported; they are counting inflation as gdp. gdp is actually adjusted for cpi inlation already aprox. -4%. -4% getting ready to get "worser'.

as the above articles state things are getting much 'worser'.

the leading global leader ie china is also having a major meltdown and many feel they are already running negative gdp with 'worser' at the door.

the price/earnings ratios are already at the highest level recorded with a severe depression/ depression at the door.

how can stocks be valued at all time high p/e ratio's going into a severe depression? ridiculous. the stock valuations are buoyed by the trillions of fiat currency creation called more debt employed to correct a problem caused by too much debt already.

how can the bonds be valued so high when everyone knows that during a major economic severe recession the tax revenues won't support the outstanding bond debts?

[idiit]

China Plunge Protectors Unleash Berserk Buying Spree In Last Hour Of Trading As Fed Meeting Begins
Tyler Durden's pictureSubmitted by Tyler Durden on 09/16/2015


ts investing "success" ("the 46 companies that reported China's Securities Finance Corp as a top 10 shareholder in the past two months lost an average 29 percent since the announcement, versus a 21 percent drop for the Shanghai Composite Index), maybe China was just embarrassed at the biggest 2-day drop in over a month despite increasingly grotesque and entertaining (if not for the sellers) market manipulation measures, or perhaps the PBOC simply wanted to close above 3000 the day the Fed starts its "most important meeting ever", but for whatever reason starting in the last hour of trading and continuing until the close, the Shanghai Composite - after trading largely unchanged - went from red on the day to up 4.9% after hitting 5.9% minutes before the close - the biggest one day surge since March 2009 - and nearly erasing the 6.1% drop from the past two days in just about 60 minutes of trading, providing a solid hour of laughter to bystanders and observers in the process.

http://www.zerohedge.com/news/2015-09-16/china-plunge-protectors-unleash-berserk-buying-spree-last-hour-trading-fed-meeting-b

^like the usa stock markets are any different? :)

the federal reserve banks are on their way to owning the entire stock market from their $trillion frn$ in market manipulations aka plunge protection team efforts.


“Federal Reserve and Other Central Banks Own Close to Half of All Stock Markets”

by admin | Aug 18, 2014



These links reveal that the US Federal Reserve Board and other central banks around the world own “close to half of all [the] stock markets.” The title of this post is the title of the first link. Please re-read the first sentence and let it sink in to grasp the meaning of this shocking revelation. I think most citizen-investors around the world assumed that all stocks were owned by private investors, sovereign investment funds, pension funds, mutual funds, etc. Not true! The first three links reveal that vast amounts of stock equities are owned by the US Federal Reserve Board and other central banks! The Fed and the central banks have surely been buying these stock funds with fantasy money, money created by the central banks “out of thin air.” If a private investor tried to do that, it would be called “counterfeiting.”

http://stevenmcollins.com/WordPress/federal-reserve-and-other-central-banks-own-close-to-half-of-all-stock-markets-new/


GLOSSARY

Plunge Protection Team / Working Group on Financial Markets


The Working Group on Financial Markets is also known as the President's Working Group on Financial Markets. Or, let us use the shortened title of just plain Working Group, which has become known as the Plunge Protection Team.

Executive Order 12631 deemed that the Working Group would consist of the Secretary of the Treasury as Chairman, The Chairman of the Board of Governors of the Federal Reserve, the Chairman of the Securities and Exchange Commission, as well as the Chairman of the Commodity Futures Trading Commission. Each was allowed to appoint a designee, in essence to take the place of each original designate.

The defined purpose of the group, the Plunge Protection Team, was to oversee the markets and insist that they remain efficient and competitive, while making clear the need for continued, consistent investor confidence. In other words, they were to try to keep the American Market in particular from plunging again.

The big question was how might they do this? Some have charged the Plunge Protection Team with manipulating, or propping up the markets by buying up stock with government (taxpayer) money and then conversely selling those same stocks when necessary. This, of course, is an illegal act. Others accuse the Plunge Protection Team of moral manipulation in their efforts to persuade banks to buy median stock futures. The accusation that the Feds are buying stock futures with taxpayer funds in order to control market outcomes was adhered to by some and was seen as a well-defined conspiracy theory by others not willing to open their eyes.

There are rumors but no facts. They meet informally, behind closed doors, at times in the dark of night, convening at moments of potential financial crisis. They help to make decisions concerning such things as the stimulus package and the governmental purchase of various businesses. Most of these types of moves are not necessarily "hidden" from the taxpaying public and that is really the scariest part of it all.

The public becomes the one manipulated with some amount of falsehood sprinkled with some truth. This technique is referred to as "talking out of both sides of the mouth." The governing power elite does not see the general populace as very intelligent and continue to weave their own brand of "magic" based upon this premise. The Plunge Protection Team is definitely a contributory factor in the manipulation of monies, markets and future governmental reigning bodies in their manner of operation.

The Plunge Protection Team exists. Its mandate – brief – is to manipulate markets, apparently with a special emphasis on the stock market and maintaining the public's confidence so the fiat-money wealth redistribution game can continue to limber along. Can there be any question anymore as to whether America has free markets?


http://www.thedailybell.com/definitions/params/id/2632/


^ this is what invariably happens when the politicians are allowed around the world to create "money" out of thin air; fiat currency/

the paper Ponzi will end badly.

[jagman]

I am strong and so are all of you!!! We will make it through anything that they
throw at us! Remember the glass is half full... Prepare for the worst and hope
for the best. It's about to be gut check time. Stand your ground! Help others
if you can do so safely! Start forming alliances with trusted friends and family.
Please start storing water! It's essential!!! Most importantly? Start telling the
people you love how much you love them and how much they mean to you!
This is not the end! It's the beginning of a new life for all of us. We just have to
reach out and grab it. NO REGRETS


http://www.youtube.com/watch?v=pfnde3QXmSI?t=100

[Hazelfern]

Good morning jagman. I am wondering what compelled your prep post today? A dream, feeling or warning?

[Hazelfern]

Jazzman for the jagman :)


http://www.youtube.com/watch?v=Lg09UcgPu0Q

[idiit]

humorous and informative re market analysis and translation of yellen-speak into plain English on the latest admission "the fed can't raise rates" anymore to bolster the economy. we were just bluffing; sorry 'bout dat:


Submitted by Paul-Martin Foss via The Carl Menger Center,

For those of you who don’t want to take the time reading through the ponderous 7000-word transcript of yesterday’s FOMC press conference, we bring you the shorter Janet Yellen, translated from Fedspeak into plain English. Enjoy!

http://www.zerohedge.com/news/2015-09-19/janet-yellens-fedspeak-translated

[jagman]

Good morning jagman. I am wondering what compelled your prep post today? A dream, feeling or warning?

I am intuitive but I think most people are also. No dream but
I feel a big change is about to happen.I do feel we make our own
destiny's and nothing is set in stone but humans must take
the next step in our place in the universe. Our current system
is failing but I do feel something wonderful is about to happen!
We just have to make through a bit of a rough patch.

[Rhah]

In fear of a coming economic collapse, I have been contemplating taking all of my money out of the bank so that I actually, physically, have it in my posession instead of the banks owning it, and to just continue using cash from that point on. Now I admit that I have very little knowledge of economy in general, but I do know that this would obviously not prevent the effects of inflation or hyperinflation, it's just that I'm afraid of losing it all and being left with zero to nothing after the collapse.

However, I've been browsing through this thread for some more information - as I just simply feel it getting closer and closer and I honestly don't really know what to do - and I've now read some things that indicate that the above might not be such a wise idea after all...

So basically I was hoping if any of you had some comments on this and could perhaps clarify certain things in regards to emptying out your bank account and start using just cash?

I realise that for a lot of you taking out all your funds would probably not be a very practical thing to do, but as I have literally just finished school only a few months ago and am now trying to build something up for myself so that I can hopefully move out soon and start a life of my own, I personally don't have an awful lot saved up yet and could easily manage it in cash. And to be honest, with interest rates as low as they are right now I personally don't really see a point in having your money stored in a bank instead of physically owning it in cash, apart from maybe keeping a little bit in my account so that I can still make digital payments to order books and what have you.

But like I said: these views are all based on personal feelings rather than knowledge so I might just simply be wrong. And I hoped that with input from more knowledgeable people like you I could probably make a wiser decision in regards to this matter.

PS. The main thing that's still very unclear to me is how a collapse of the US economy (where I feel it will start) will affect the rest of the world, and in my case, the rest of Europe. We've recently seen Greece's economic problems of course, but I've been given the impression that that was mostly (perhaps partly) caused by their own ways of operating. Whereas my own country, the Netherlands, has been able, for as far as I know and as far as we've been told, to stay fairly stable. So I was wondering if a collapse of the US economy will have a immediate impact on every other economy on the planet? Or will this gradually spread over a number of years? What is the most likely scenario is probably what I'm trying to ask here.

Thanks in advance guys

[Spellbound]

While I do feel an economic collapse is coming, I do not think Canadian or US gov't will seize a portion of people's bank accounts as gov't did in Cyprus (or Greece). Money in the bank will be fine, imo. However, investments could take a serious hit in the coming months. Back in '08/'09 people's portfolios lost a huge % due to the collapse back then as value of investments tumbled. In that regard, I'd advise anyone with RRSP's / 401K (or whatever it is called in Europe) to park their investments into money market funds such that in the event of a collapse they don't lose money /value (though if the market goes up, they don't increase in value either....but that is not the coming situation, imo). Market is faaaar too risky right now for long term investment. Park your investment dollars somewhere safe, ride out the collapse, and then re-invest at the low (after the the collapse). Back in '08, I had my investments in money market funds so I didn't lose any value when the market collapsed. However, in March of '09, I kept my investments in money market funds and so I missed the low...lesson learned. This time I will be ready.

Dave - Toronto

[avid]

Fiat money is only 'promisory', paper is worthless when the note is reneged upon by the banksters, cash is temporary. Was there a story that the wheelbarrow was worth more than the cash in it after WW1? Store meaningful stuff that you can survive on. That is also your goodwill to folk less fortunate, and join similarly beneficial groups. What goes around comes around... :-;

[Richard S.]

Hi Dave,

Did you know about our 2013 budget?
http://www.globalresearch.ca/the-confiscation-of-savings-in-canada-cyprus-style-bail-ins-proposed-by-ottawa-government/5329263

While I do feel an economic collapse is coming, I do not think Canadian or US gov't will seize a portion of people's bank accounts as gov't did in Cyprus (or Greece). Money in the bank will be fine, imo. However, investments could take a serious hit in the coming months. Back in '08/'09 people's portfolios lost a huge % due to the collapse back then as value of investments tumbled. In that regard, I'd advise anyone with RRSP's / 401K (or whatever it is called in Europe) to park their investments into money market funds such that in the event of a collapse they don't lose money /value (though if the market goes up, they don't increase in value either....but that is not the coming situation, imo). Market is faaaar too risky right now for long term investment. Park your investment dollars somewhere safe, ride out the collapse, and then re-invest at the low (after the the collapse). Back in '08, I had my investments in money market funds so I didn't lose any value when the market collapsed. However, in March of '09, I kept my investments in money market funds and so I missed the low...lesson learned. This time I will be ready.

Dave - Toronto

[idiit]

e have been covering the ongoing collapse in global manufacturing as tracked by Caterpillar retail sales for so long that there is nothing much to add.

Below we show the latest monthly data from CAT which is once again in negative territory across the board, but more importantly, the global headline retail drop (down another 11% in August) has been contracting for 33 consecutive months! This is not a recession; in fact the nearly 3 year constant contraction - the longest negative stretch in company history - is beyond what most economists would deem a depression.

http://www.zerohedge.com/news/2015-09-21/what-earth-going-caterpillar-sales

it is becoming more and more self evident that much of the global economic regions are in an economic depression. this economic depression is hidden by statistical lies, cabal control over msm, virtually created fiat currency and electronic economic welfare known as food stamps, extended unemployment paychecks, etc.....

they are counting inflation growth as gdp growth. under report inflation and call the increases as gdp. if they took real cpi inflation and deducted it from economic analysis we would be looking at a severe recession/depression shrinking at aprox. 6% per year or more. tken cumulatively over the years this has been going on and the caterpillar sales would be indicative of the real financial situation around the globe.

look at the graphs in the above linked article. those graphs are a real view of our global financial situation.

[idiit]

http://libertyblitzkrieg.com/wp-content/uploads/2015/07/Screen-Shot-2015-07-31-at-11.41.31-AM-1024x684.jpg

the spread between the elite and the rest of the world's wealth has never been wider.

[idiit]

Dead Cat Bounce Dies - Dow Down 700 Points From Fed's Fold
09/22/2015 08:43 -0400
Rule 48 to be unleashed any minute now... Dow futures are now down 300 points (and down 700 from post-FOMC algo exuberance)....

http://www.zerohedge.com/news/2015-09-22/dead-cat-bounce-dies-dow-down-700-points-feds-fold

[risveglio]

http://libertyblitzkrieg.com/wp-content/uploads/2015/07/Screen-Shot-2015-07-31-at-11.41.31-AM-1024x684.jpg

the spread between the elite and the rest of the world's wealth has never been wider.

I dislike the "right" as much as the "left" does but I think I distrust the "left" a little more because they are completely disingenuous.

http://www.nationalreview.com/article/367682/trickle-down-lie-thomas-sowell

[Tesseract]

More bad data out of China just now. Not looking to rosy for the markets rest of this week - unless some stimulus gets announced.

[mgray]

In fear of a coming economic collapse, I have been contemplating taking all of my money out of the bank so that I actually, physically, have it in my posession instead of the banks owning it, and to just continue using cash from that point on. Now I admit that I have very little knowledge of economy in general, but I do know that this would obviously not prevent the effects of inflation or hyperinflation, it's just that I'm afraid of losing it all and being left with zero to nothing after the collapse.

However, I've been browsing through this thread for some more information - as I just simply feel it getting closer and closer and I honestly don't really know what to do - and I've now read some things that indicate that the above might not be such a wise idea after all...

So basically I was hoping if any of you had some comments on this and could perhaps clarify certain things in regards to emptying out your bank account and start using just cash?

I realise that for a lot of you taking out all your funds would probably not be a very practical thing to do, but as I have literally just finished school only a few months ago and am now trying to build something up for myself so that I can hopefully move out soon and start a life of my own, I personally don't have an awful lot saved up yet and could easily manage it in cash. And to be honest, with interest rates as low as they are right now I personally don't really see a point in having your money stored in a bank instead of physically owning it in cash, apart from maybe keeping a little bit in my account so that I can still make digital payments to order books and what have you.

But like I said: these views are all based on personal feelings rather than knowledge so I might just simply be wrong. And I hoped that with input from more knowledgeable people like you I could probably make a wiser decision in regards to this matter.

PS. The main thing that's still very unclear to me is how a collapse of the US economy (where I feel it will start) will affect the rest of the world, and in my case, the rest of Europe. We've recently seen Greece's economic problems of course, but I've been given the impression that that was mostly (perhaps partly) caused by their own ways of operating. Whereas my own country, the Netherlands, has been able, for as far as I know and as far as we've been told, to stay fairly stable. So I was wondering if a collapse of the US economy will have a immediate impact on every other economy on the planet? Or will this gradually spread over a number of years? What is the most likely scenario is probably what I'm trying to ask here.

Thanks in advance guys

Rhah,
It's the interconnectiveness of economies that creates the fear of global collapse. That said as a twenty something looking to strike out, I would not be overly concerned about the bank being open, but how will you make a living.

The EU is not flush with good-paying jobs and is presently being inundated with refugees fighting for a living wage.

I wish you luck. And look to the east for economic/market troubles because this will more than likely start in Asia, no the US

[idiit]

as long as the usa can and does counterfeit the world's reserve currency by the $trillions ( literally true) America can support the markets, fund ppl not working, conduct global wars, bribe judges, congress, msm to support the deceptions. the usa markets will be among the last to fall.

south America is economically falling apart.

Europe is economically falling apart. big stories about Germany being in big trouble just hitting alt media in last couple days. Germany is the economic engine of Europe.

middle east is in turmoil.

Africa is in turmoil.

in india millions applied for a couple hundred jobs as there is severe unemployment there as well.

the global fiat currency based national economies are like balloons hemorrhaging and the cabal controlled governments are putting duct tape on the bleeding and frantically pumping as much fake stimulus as possible into the balloons. once a balloon starts hemorrhaging it's days are numbered.

[idiit]

There Are Indications That A Major Financial Event In Germany Could Be Imminent

By Michael Snyder, on September 21st, 2015

http://theeconomiccollapseblog.com/archives/there-are-indications-that-a-major-financial-event-in-germany-could-be-imminent

^ good article imo. derivative exposure to artificially prop up the faux markets.

jim willie has been saying for some time the same thing.


Jim Willie : If Deutsche Bank Goes Under It Will be Lehman Times Five!


http://www.youtube.com/watch?v=ap74cbsu5ps

[Pam]

as long as the usa can and does counterfeit the world's reserve currency by the $trillions ( literally true) America can support the markets, fund ppl not working, conduct global wars, bribe judges, congress, msm to support the deceptions. the usa markets will be among the last to fall.

south America is economically falling apart.

Europe is economically falling apart. big stories about Germany being in big trouble just hitting alt media in last couple days. Germany is the economic engine of Europe.

middle east is in turmoil.

Africa is in turmoil.

in india millions applied for a couple hundred jobs as there is severe unemployment there as well.

the global fiat currency based national economies are like balloons hemorrhaging and the cabal controlled governments are putting duct tape on the bleeding and frantically pumping as much fake stimulus as possible into the balloons. once a balloon starts hemorrhaging it's days are numbered.


The way that you worded this post was really powerful, idiit. I never quite looked at it that way, but you really hit the nail on the head. The US is literally counterfeiting currency out of thin air, and that will make the US the last to fall. We in the US sit with our heads in the sand (or hooked up to an electronic device) while the world around us crumbles.

[Spellbound]

Hi Dave,

Did you know about our 2013 budget?
http://www.globalresearch.ca/the-confiscation-of-savings-in-canada-cyprus-style-bail-ins-proposed-by-ottawa-government/5329263

While I do feel an economic collapse is coming, I do not think Canadian or US gov't will seize a portion of people's bank accounts as gov't did in Cyprus (or Greece). Money in the bank will be fine, imo. However, investments could take a serious hit in the coming months. Back in '08/'09 people's portfolios lost a huge % due to the collapse back then as value of investments tumbled. In that regard, I'd advise anyone with RRSP's / 401K (or whatever it is called in Europe) to park their investments into money market funds such that in the event of a collapse they don't lose money /value (though if the market goes up, they don't increase in value either....but that is not the coming situation, imo). Market is faaaar too risky right now for long term investment. Park your investment dollars somewhere safe, ride out the collapse, and then re-invest at the low (after the the collapse). Back in '08, I had my investments in money market funds so I didn't lose any value when the market collapsed. However, in March of '09, I kept my investments in money market funds and so I missed the low...lesson learned. This time I will be ready.

Dave - Toronto

I could be wrong, but I don't believe that would ever happen here (or the US). We aren't Cyprus. Generally, we Canadians are a passive bunch, but there is no way in hell we would a) allow the state of our economy to get that bad, and b) allow the banks to seize our accounts. Never say never, I understand that mentality...but I'd be shocked.

Dave - Toronto

[Richard S.]

Hi Dave,

Did you know about our 2013 budget?
http://www.globalresearch.ca/the-confiscation-of-savings-in-canada-cyprus-style-bail-ins-proposed-by-ottawa-government/5329263

While I do feel an economic collapse is coming, I do not think Canadian or US gov't will seize a portion of people's bank accounts as gov't did in Cyprus (or Greece). Money in the bank will be fine, imo. However, investments could take a serious hit in the coming months. Back in '08/'09 people's portfolios lost a huge % due to the collapse back then as value of investments tumbled. In that regard, I'd advise anyone with RRSP's / 401K (or whatever it is called in Europe) to park their investments into money market funds such that in the event of a collapse they don't lose money /value (though if the market goes up, they don't increase in value either....but that is not the coming situation, imo). Market is faaaar too risky right now for long term investment. Park your investment dollars somewhere safe, ride out the collapse, and then re-invest at the low (after the the collapse). Back in '08, I had my investments in money market funds so I didn't lose any value when the market collapsed. However, in March of '09, I kept my investments in money market funds and so I missed the low...lesson learned. This time I will be ready.

Dave - Toronto

I could be wrong, but I don't believe that would ever happen here (or the US). We aren't Cyprus. Generally, we Canadians are a passive bunch, but there is no way in hell we would a) allow the state of our economy to get that bad, and b) allow the banks to seize our accounts. Never say never, I understand that mentality...but I'd be shocked.

Dave - Toronto

This is what was written into law (budget):

The Government proposes to implement a ―bail-in‖ regime for
systemically important banks. This regime will be designed to ensure that,
in the unlikely event that a systemically important bank depletes its capital, the
bank can be recapitalized and returned to viability through the very
rapid conversion of certain bank liabilities into regulatory capital.
This will reduce risks for taxpayers. The Government will consult stakeholders on how best to implement a bail-in regime in Canada.

Implementation timelines will allow for a smooth transition for affected institutions, investors and other market participants.

Source: http://www.budget.gc.ca/2013/doc/plan/budget2013-eng.pdf

[idiit]

all bank deposits in America as well as most european countries are defined by new laws ( without informing the public) to be unsecured loans.

they can also arbitrarily decide to confiscate deposit boxes and deposits (partial, whole).

you are a complete idiot to keep money ( actually faux money) in a bank beyond what's necessary to pay your bills. it's no longer yours once you deposit.

^ straight truth. no argument. not "my opinion".

[idiit]

Currency Carnage: The Global FX Heatmap Is A Bloodbath
09/24/2015 09:52 -0400

http://www.zerohedge.com/news/2015-09-24/currency-carnage-global-fx-heatmap-bloodbath


Caterpillar Shocker: Industrial Bellweather To Fire Up to 10,000; Slashes Revenue Outlook
09/24/2015

http://www.zerohedge.com/news/2015-09-24/caterpillar-shocker-industrial-bellweather-fire-10000-slashes-revenue-outlook

DERIVATIVES

derivatives are magnifiers funded by 1$/$1000's in wall street casino derivatives bets. the derivatives market is an unregulated quadtrillion$ ( $x,000,000,000,000) market.

it's a financial pyramid standing on it's head:

https://upload.wikimedia.org/wikipedia/commons/thumb/2/29/Exter.png/220px-Exter.png


due to the top heavy over-leveraged derivative markets large moves in financial markets make the top heavy financial ponzi fall down, go BOOM.

[idiit]

Recession Imminent - Kansas Becomes 6th Regional Fed Survey Flashing Red
09/24/201

http://www.zerohedge.com/news/2015-09-24/recession-imminent-kansas-becomes-6th-regional-fed-survey-flashing-red

^ what a joke. take real inflation out of pinocchio's gdp stats and we have been in a recession for years.

look at baltic dry index, caterpillar sales, real unemployment #'s.

[steveofengland]

Could the VW scandal have a detrimental effect on the German banking system?

[idiit]

Could the VW scandal have a detrimental effect on the German banking system?

according to financial articles the answer is yes. bmw is also in trouble adding to Germany's auto driven economic economy.

[idiit]

I post a lot on financial stuff 'cause I think it's important that while most of us still need money ( actually faux money) to survive we need to understand certain stuff about the faux money Ponzi scam in order to avoid needless suffering until the $enslavement system is removed from our daily lives.

corey just released his latest interview: https://kauilapele.wordpress.com/2015/09/24/disclosure-data-from-corey-9-21-15-in5d-radiocorey-goode-inside-the-sphere-being-alliance-plus-mp3s/

he states that real soon the entire fiat based Babylonian enslavement monetary system will be removed.

^ I sincerely hope so. I don't like money, I need it to survive. I want us to go to a barter system.

so, now onto current financial news re big market correction coming soon:


The Stock Markets Of The 10 Largest Global Economies Are All Crashing
09/25/2015


Right now, stock market wealth is being wiped out all over the planet, and none of the largest global economies have been exempt from this. The following is a summary of what we have seen in recent days…

#1 The United States – The Dow Jones Industrial Average is down more than 2000 points since the peak of the market. Last month we saw stocks decline by more than 500 points on consecutive trading days for the first time ever, and there has not been this much turmoil in U.S. markets since the fall of 2008.

#2 China – The Shanghai Composite Index has plummeted nearly 40 percent since hitting a peak earlier this year. The Chinese economy is steadily slowing down, and we just learned that China’s manufacturing index has hit a 78 month low.

#3 Japan – The Nikkei has experienced extremely violent moves recently, and it is now down more than 3000 points from the peak that was hit earlier in 2015. The Japanese economy and the Japanese financial system are both basket cases at this point, and it isn’t going to take much to push Japan into a full-blown financial collapse.

#4 Germany – Almost one-fourth of the value of German stocks has already been wiped out, and this crash threatens to get much worse. The Volkswagen emissions scandal is making headlines all over the globe, and don’t forget to watch for massive trouble at Germany’s biggest bank.

#5 The United Kingdom – British stocks are down about 16 percent from the peak of the market, and the UK economy is definitely on shaky ground.

#6 France – French stocks have declined nearly 18 percent, and it has become exceedingly apparent that France is on the exact same path that Greece has already gone down.

#7 Brazil – Brazil is the epicenter of the South American financial crisis of 2015. Stocks in Brazil have plunged more than 12,000 points since the peak, and the nation has already officially entered a new recession.

#8 Italy – Watch Italy. Italian stocks are already down 15 percent, and look for the Italian economy to make very big headlines in the months ahead.

#9 India – Stocks in India have now dropped close to 4000 points, and analysts are deeply concerned about this major exporting nation as global trade continues to contract.

#10 Russia – Even though the price of oil has crashed, Russia is actually doing better than almost everyone else on this list. Russian stocks have fallen by about 10 percent so far, and if the price of oil stays this low the Russian financial system will continue to suffer.

http://www.zerohedge.com/news/2015-09-25/stock-markets-10-largest-global-economies-are-all-crashing

[Spellbound]

Hi Dave,

Did you know about our 2013 budget?
http://www.globalresearch.ca/the-confiscation-of-savings-in-canada-cyprus-style-bail-ins-proposed-by-ottawa-government/5329263

While I do feel an economic collapse is coming, I do not think Canadian or US gov't will seize a portion of people's bank accounts as gov't did in Cyprus (or Greece). Money in the bank will be fine, imo. However, investments could take a serious hit in the coming months. Back in '08/'09 people's portfolios lost a huge % due to the collapse back then as value of investments tumbled. In that regard, I'd advise anyone with RRSP's / 401K (or whatever it is called in Europe) to park their investments into money market funds such that in the event of a collapse they don't lose money /value (though if the market goes up, they don't increase in value either....but that is not the coming situation, imo). Market is faaaar too risky right now for long term investment. Park your investment dollars somewhere safe, ride out the collapse, and then re-invest at the low (after the the collapse). Back in '08, I had my investments in money market funds so I didn't lose any value when the market collapsed. However, in March of '09, I kept my investments in money market funds and so I missed the low...lesson learned. This time I will be ready.

Dave - Toronto

I could be wrong, but I don't believe that would ever happen here (or the US). We aren't Cyprus. Generally, we Canadians are a passive bunch, but there is no way in hell we would a) allow the state of our economy to get that bad, and b) allow the banks to seize our accounts. Never say never, I understand that mentality...but I'd be shocked.

Dave - Toronto

This is what was written into law (budget):

The Government proposes to implement a ―bail-in‖ regime for
systemically important banks. This regime will be designed to ensure that,
in the unlikely event that a systemically important bank depletes its capital, the
bank can be recapitalized and returned to viability through the very
rapid conversion of certain bank liabilities into regulatory capital.
This will reduce risks for taxpayers. The Government will consult stakeholders on how best to implement a bail-in regime in Canada.

Implementation timelines will allow for a smooth transition for affected institutions, investors and other market participants.

Source: http://www.budget.gc.ca/2013/doc/plan/budget2013-eng.pdf

Is it legal, yes.....but it is highly unlikely here in Canada where the banks are much bigger (and regulated). Also, the government guarantees the 1st $100,000 of bank deposits for EACH bank---so if one has $100000 in deposits at BMO and another $100000 at CIBC then in effect it's all covered (RRSP's are also separate).

Dave - Toronto

[idiit]

Is it legal, yes.....but it is highly unlikely here in Canada where the banks are much bigger (and regulated). Also, the government guarantees the 1st $100,000 of bank deposits for EACH bank---so if one has $100000 in deposits at BMO and another $100000 at CIBC then in effect it's all covered (RRSP's are also separate).


the problem with deposit insurance, stocks, pensions, hedges made by wall street is counter party risk. you are relying on promises. broken promises when shtf.

you can't even get physical silver from large bullion dealers. sold out. you have to wait months for delivery. if you pay for physical silver on backorder it's also subject to counterparty risk. having physical precious metals ( bullion) in your possession is the only means to avoid being the victim of broken promises that I know of.


SOLD OUT: World’s Largest Physical Silver Wholesaler’s Inventory Down to 3 Items- All Shipping in 6-10 Weeks!

http://www.silverdoctors.com/james-turk-next-collapse-wont-be-a-market-collapse-it-will-be-a-dollar-collapse-hyperinflation/#more-58292

https://smaulgld.com/is-there-a-silver-shortage/

[idiit]

The global commodity collapse is finally starting to take its toll on what China truly cares about: the employment of the tens of millions of currently employed and soon to be unemployed workers.

On Friday, in a move that would make even Hewlett-Packard's Meg Whitman blush, Harbin-based Heilongjiang Longmay Mining Holding Group, or Longmay Group, the biggest met coal miner in northeast China which has been struggling to reduce massive losses in recent months as a result of the commodity collapse, just confirmed China's "hard-landing" has arrived when it announced on its website it would cut 100,000 jobs or 40% of its entire 240,000-strong labor force.

http://www.zerohedge.com/news/2015-09-27/chinas-hard-landing-has-arrived-chinese-coal-company-fires-100000

most nations are suffering catastrophic downturns in their economies. the global economy is collapsing.

everything is artificially inflated. derivatives are highly levered.

[Snookie]

Hi Dave,

Did you know about our 2013 budget?
http://www.globalresearch.ca/the-confiscation-of-savings-in-canada-cyprus-style-bail-ins-proposed-by-ottawa-government/5329263

While I do feel an economic collapse is coming, I do not think Canadian or US gov't will seize a portion of people's bank accounts as gov't did in Cyprus (or Greece). Money in the bank will be fine, imo. However, investments could take a serious hit in the coming months. Back in '08/'09 people's portfolios lost a huge % due to the collapse back then as value of investments tumbled. In that regard, I'd advise anyone with RRSP's / 401K (or whatever it is called in Europe) to park their investments into money market funds such that in the event of a collapse they don't lose money /value (though if the market goes up, they don't increase in value either....but that is not the coming situation, imo). Market is faaaar too risky right now for long term investment. Park your investment dollars somewhere safe, ride out the collapse, and then re-invest at the low (after the the collapse). Back in '08, I had my investments in money market funds so I didn't lose any value when the market collapsed. However, in March of '09, I kept my investments in money market funds and so I missed the low...lesson learned. This time I will be ready.

Dave - Toronto

I could be wrong, but I don't believe that would ever happen here (or the US). We aren't Cyprus. Generally, we Canadians are a passive bunch, but there is no way in hell we would a) allow the state of our economy to get that bad, and b) allow the banks to seize our accounts. Never say never, I understand that mentality...but I'd be shocked.

Dave - Toronto

This is what was written into law (budget):

The Government proposes to implement a ―bail-in‖ regime for
systemically important banks. This regime will be designed to ensure that,
in the unlikely event that a systemically important bank depletes its capital, the
bank can be recapitalized and returned to viability through the very
rapid conversion of certain bank liabilities into regulatory capital.
This will reduce risks for taxpayers. The Government will consult stakeholders on how best to implement a bail-in regime in Canada.

Implementation timelines will allow for a smooth transition for affected institutions, investors and other market participants.

Source: http://www.budget.gc.ca/2013/doc/plan/budget2013-eng.pdf

The "goUbbermint" does not create laws like this, unless they plan on implementing them imo.

[idiit]

I've been posting about derivatives and counterparty risk. lots of investors believe they are hedged against risk by use of hedges employed by the asset they are invested in. the problem with hedges is that someone has to assume the risk of the asset falling in price when they issue the hedge. what if the entity selling the hedges can't pay? you get a cascading domino effect of collapse and in this intertwined global financial market that means systemic risk.

today glencore ( heavy duty commodities entity glencore cds) stock has plunged 30% (today). remember that when derivatives are employed the effects either up or down are magnified in proportion to the leverage employed. glencore has about 75 $billion in outstanding derivative liability iirc.


Commodities being sold systemically despite a lack of FX-driven impact

commodity $carnage is due to 1). lack of demand in a severe global recession and 2).due to a liquidity crisis where players in da game need to come up with more collateral to cover their market bets when the asset class they pledged as collateral loses value.


And even more worrying, Bank counterparty risk is re-soaring...

http://www.zerohedge.com/news/2015-09-28/commodity-carnage-continues-amid-fears-glencore-liquidation

the entities selling hedges against commodity prices falling are sweating bullets.

if these entities can't pay off their losing hedges they go belly up causing another round of cascading dominoes.

the entire financial system world wide is based on too little collateral serving as the foundation for way too much leverage.


https://s.yimg.com/fz/api/res/1.2/zglXxyvbgM1lSae3c8pQGw--/YXBwaWQ9c3JjaGRkO2g9NTIwO3E9OTU7dz01MjA-/http://s1.hubimg.com/u/7057668_f520.jpg

this image ^^ depicts the current fiat debt bubble Ponzi scheme. does it look stable to you?

just a little too much movement ( like right now) and the thing goes "bust".

[Becky]

Hi Idiit, do you think we are very close to a real global financial collapse then? I've been trying to follow this but am no expert.
Edited to add...it looked like a few weeks ago things were imminent, then they stabalized again...what's the situation now please?

[idiit]

^ I gave my last prediction couple weeks ago. :) I thought we'd have a bloody Monday then and it did not happen. the Rothschild Zionist controlled federal reserve ( not federal, no reserves) can and do legally and literally virtually create $trillions out of thin air. all markets are manipulated by the legally counterfeited worlds reserve currency frn$ bubble pumping. the usa federal gubmint and their shills ( federal reserve bank) funded some of their puppet banks to "plunge protection team" kick the can by artificially inflating stock market prices like they've been doing since 2008 lehman brothers incident. saved by fiat. :) fiat means "funny money".

all financial experts I respect think it's a gonna blow soon, very soon.

here's a great article that shares the perspective I believe is accurate:



The Final Flush Is At Hand!


Posted September 27th, 2015



This past week, the following article was forwarded all over the internet

http://investmentwatchblog.com/if-deutsche-bank-goes-under-it-will-be-lehman-times-five/ as Deutsche Bank is “all of a sudden news”. Maybe this is a “German thing” with the latest out of Volkswagen? Deutsche Bank is not “all of a sudden”, they have been a derivatives monster for years and were saved in 2008 with part of the $16 trillion the Fed generously sprayed all over the world. The title suggesting DB will be the equivalent of five Lehmans is on the right track but not nearly severe enough. They are tied with JP Morgan as THE largest holder of derivatives in the world. Should Deutsche Bank fail, EVERYTHING FINANCIAL FAILS! It can even be said, “the entire world is Lehman” just waiting for their credit line to be cut 48 hours before complete failure.



What we are looking at now it “the FINAL FLUSH” of the Western financial system. The Federal Reserve has lost all credibility. This has followed both the Bank of Japan and European Central Bank being seen as hopelessly neutered of the ability to support the system. Confidence was THE very last “hope” and the Fed gave even that away last week. Of course the mainstream media chimed in on Friday saying the “market was up in the hopes of a rate hike in December”. Really? Are we to believe a tightening of credit is a good thing for a system buried in leverage and being dogged with liquidity drying up? This is like saying a flame thrower is the best tool for the California fires?

Money Velocity has crashed and so has global trade. Leveraged commodity trades have blown up and left many sectors dysfunctional. Has anyone stopped to think who (other than the sectors themselves) stands to lose with $45 oil? Maybe the lenders? Would this not tighten credit even further? Why do a dozen “advanced” economies already have stock markets in bear (minus 20%+) market territory?

Geopolitically we have watched as West has lined up against East militarily in many spots all over the world. The short list includes the South China Sea, Ukraine, Yemen and of course Syria. Russia began the build up militarily several weeks back along the Ukraine border and more recently inside Syria. Now China is reportedly sending hardware to Syria including http://www.debka.com/article/24909/A-Chinese-aircraft-carrier-docks-at-Tartus-to-support-Russian-Iranian-military-buildup ships. These are not bluffs as active fighting already exists. Can the U.S. actually “win” in any of these arenas in conventional war? It’s OK, you know the answer in your own mind, you also know what the alternative to losing conventionally is.

Before going any further I must ask you this question. Does the rule of law exist in the United States anymore? How many bankers went to jail over the blatant fraud in banking, real estate/mortgages? How many brokers went to jail for stacking MBS securities with guaranteed defaults while betting against the pools? How many exposed frauds within the Obama administration have gone un punished or even investigated? Do we really have three branches of government? Congress (Republicans) has done NOTHING they said they would when the public kicked out the snakes last November…only replaced by new ones apparently. The presidency has purged the armed forces of any conservative leadership and placed “czars” at the top of new and old agencies, what’s up with this?… which leaves the Supreme Court. They now effectively “write law” as they “interpret” ALL law. The Supremes will never see a duck as a duck and will write interpretations declaring the Sun full in the sky at midnight …final ruling and no appeal! “We the People” are screwed!

Speaking of “We the People”, while QE was used to mesmerize the middle class by holding the markets up, it in fact has gutted our real economy and has destroyed any possibility of making money the old fashioned way …by working! We now have one half or more of our population “taking” benefits and the other half “giving” them, any hope of a recovery led by the middle class is now gone as is the middle class.

Is it any wonder there are now shortages and tightness in the gold and silver markets? The East believes gold “IS” money, they also know the dollar is untenable and will not be a store of value. In fact, I believe China and Russia may step in to “help” the dollar fail. I still believe Mr. Putin will come forth with a “truth bomb”, I would love to be a fly (although hidden bugs will probably be everywhere) on the wall at tomorrow’s meeting between Presidents Xi and Obama. I can just imagine how the conversation might go, I cannot believe the U.S. will be barking ANY orders in any fashion. A sad statement but you must ask yourself this, does the U.S. have the power or ability to make demands? Remember, we are the debtor while they are the creditor!

In my opinion we are already well within the jaws of a meltdown/shutdown as liquidity is evaporating. There are a dozen developed countries with their stock markets already in bear markets (down 20% or more). All crashes come from oversold levels just as bank runs come on fast and are a surprise at the time. What is coming should be NO SURPRISE to anyone as we are looking at the end of not only an empire but of a flawed system which has endured for far too many years! This was a solvency problem in 2008 and “liquidity” was the incorrect tool used then. Now it is a bigger solvency problem with an illiquidity kicker attached …while the Fed has already used every tool imaginable and every last ounce of credibility. The loss of confidence in the issuer of the world’s reserve currency would be bad enough in an unlevered world, the loss of confidence in today’s “debt world” will be a DISASTER!

To wrap this up, do not let anything that may happen from here surprise you. The conditions are ripe for global currency crises and a shutdown of credit. The conditions are also ripe for hot war to explode in multiple venues. A meltdown or shutdown of markets will serve as a FINAL FLUSH of what remains left of the U.S. middle class. Without the “wealth” in stocks and homes, psychology will be toast. The U.S. is creating “income” from actual work at a third world level which is exactly where we are headed as our standard of living is “borrowed rather than owned”. My point is this, a market meltdown and credit shutdown will make the U.S. look like 1985 Bombay within weeks as we create nothing and have saved in “nothings” and owe everyone. This is the rosy scenario and assumes that martial law is not instituted (a poor assumption in my opinion!).


http://www.jsmineset.com/2015/09/27/the-final-flush-is-at-hand/

look at the inverted financial pyramid. wall street gambling degenerates walk into a "wall street good ol' boy club; by invitation only" plop down $1 of faux money ( debt based frn$ fiat currency) and get to place $100 or more in bets off that one 1$ fiat currency bet. if they lose, the system of good o' boy's federal reserve sends them some more $ loans or allows them to sell $us treasuries bonds that they don't even own. if they win they are promoted to 'management'.

no collateral. the base should be at the top and the top should be at the base of the inverted global financial pyramid.

this system was designed to bankrupt every nation, all ppl: problem

the starving desperate masses demand their "mis-leaders" do something to solve the problem: reaction

implementation of martial law and NWO steps in: solution

[idiit]

The system has been totally hijacked. Make NO mistake about it, gold was hit hard when the paper trading in London cranked up after the SGE had turned off its lights for the day. The reason: Glencore.

Anyone remember Enron? Probably not. Most people have already forgotten, mostly, that their taxpayer dollars were used by ex-Goldman CEO Henry Paulson to bail out Goldman Sachs in 2008 when he was Treasury Secretary. His primary motive was to preserve the value of the $250 million in warrants he still owned after he got to unload $500 million in stock – tax-free. Recently Zerohedge found a snapshot of Paulson laughing about the entire matter.

Glencore is going to make Enron look like a polite tea and cake break. Gold was smashed when paper London opened because the Fed, BoE and ECB can not under any circumstances let the price of gold spike up – like it should be doing – and thereby alert the world that there’s a big problem in the world of derivatives related to Glencore, among other “things” (Emerging Market FX contract, energy, Biotech ETFs, etc).

The issue with Glencore, since we all saw it coming which means the Central Banks saw it coming, is the degree to which the CB’s have been able to “brace” for its impact. The problem, however, is that just like Enron and the big banks before it, there is 100% probability that Glencore upper management has: a) lied about the market value of its assets, both on and off balance sheet; b) has lied about the true amount and nature of its derivatives exposure; c) has been lied to by rank and file who are in charge of accounting and reporting the data to upper management (trust, me I know this goes on because I saw it first-hand at Bankers Trust; and foremost, e) has NO idea the true nature of its total exposure to the full lunar eclipse world of OTC derivatives.

Given that Glencore management has fed the Central Banks a big bag of lies about the size of the risk exposure at the Company, it’s not probable that the Central Banks are properly prepared to put out the fuse on the nuclear derivatives bomb that has been lit. This is why the stock market is ****ting the bed today and this why the price of gold was bombed like an ISIS camp by a joint effort of London and NYC bombers.

Just ask Jamie Dimon about this regard in reference to the London Whale blow up. Dimon admitted that he had no idea how large JPM’s exposure was at the time. The London Whale is a sea-algae molecule in size compared to Glencore and the entire body of OTC derivatives connected to anything Glencore has touched.

Can you smell middle class flesh burning yet? It’s starting to burn my nostrils…

http://investmentresearchdynamics.com/ emphasis mine

stocks are plunging, gold's pummeled as the wizard tries to keep dorothy from pulling back the curtains. :)

you can't hardly buy physical silver due to crashing supply and overwhelming demand, yet paper silver market pricing is crushed downwards. the cabal knows that when silver goes sky high the Ponzi party is over. watch silver prices to know when it's game over for fiat currency and hello precious metals brics world currency ushered in for a new global financial system based on COLLATERAL. the bottom tip of the investment pyramid pictured two or three posts above will become the broad base of the new brics world currency.

[Zionbrion]

Idiit, maybe you can help with my question

http://projectavalon.net/forum4/showthread.php?85617-Silver-Peddlars

[PathWalker]

MSM is catching up, follow the money path.
http://www.marketwatch.com/story/jump-on-the-george-soros-coal-train-2015-10-02?dist=beforebell

Jump on the George Soros coal train
http://ei.marketwatch.com//Multimedia/2015/10/01/Photos/MG/MW-DV580_coal_i_20151001150607_MG.jpg?uuid=784e091c-686f-11e5-805a-0015c588e0f6The gorilla in the room is George Soros, whose company bought stakes in both Arch Coal ACI, -3.85% and Peabody Energy BTU, -0.62% in August. Another gorilla is hedge fund manager Leon Black, whose company quietly bought a stake in Arch earlier this year.

If we put conspiracy theories aside, especially when it relates to Soros and his quite outspoken and negative stance on coal, then we are left with the idea that two very smart players, a.k.a. “smart money,” know something. If anything, the Soros purchase especially lit the very dry tinder of these stocks for a monstrous, albeit short-lived rally. Arch moved from the $2 level to $10 in less than two weeks’ time before giving back most of it.

This reminds me of Start Wars episode 3 'Revenge of the Sith'. It is the final episode where the evil force reveals itself with extra deception and deceit.

BTW, following the analogy. I believe Soros is an active member of the 'Sith'. But not master, nor lord.
I trust the dark force to betray and deceit Soros as well. Let them eat their own food.

[Pam]

As of this morning the rate of the us 10 year treasury has dropped 12 basis points in a very short time. The rate has been dropping like a rock for over a week. Can the dollar be artificially strengthened to drop the interest enough to compensate for a rate increase of 25 basis points so the fed can increase the rate with effectively no change whatsoever? Allowing for the false impression that everything is great in this economy.

[idiit]

Are we about to witness the most important global financial event since the collapse of Lehman Brothers in 2008?


Glencore has been known as the largest commodities trading company on the entire planet, and at one time it was ranked as the 10th biggest company in the world. It is linked to trillions of dollars of derivatives trades globally, and if the firm were to implode it would be a financial disaster unlike anything that we have seen in Europe since the end of World War II. Unfortunately, all signs are pointing to an inescapable death spiral for Glencore at this point


The stock price was down nearly 30 percent on Monday, and overall Glencore stock has plunged nearly 80 percent since May. There are certainly other candidates for “the next Lehman” (Petrobras and Deutsche Bank being two perfect examples), but Glencore has definitely surged to the front of the pack. Right now many analysts are openly wondering if the firm will even be able to survive to the end of next month.


Investors had to pay on Monday more than $790,000 a year to insure $10 million of Glencore debt against default for five years using credit default swaps, according to Markit, more than 40% higher than Friday. At the beginning of the year, the same insurance cost $154,000.

http://www.silverdoctors.com/is-glencore-the-next-lehman-the-worlds-largest-commodities-trading-company-is-toast/#more-58464

^ explains how derivative debt, liquidity problems, and the expense of hedging risk are all tied together into global economic meltdown.

very good read that enables one to understand what's going on in terms anyone can understand.

not a game.

normalacy bias ( not wanting to deal with the facts of the new paradigm ) is just crawling up into a bubble and pulling the blanket up over one's head.

best get prepared.

hopefully we get divine intervention (not as far fetched as it sounds imo) from higher dimensional ed's.

imo physical silver is the best financial preparation and silver is running out.

https://srsroccoreport.com/wp-content/uploads/2015/10/India-Aug-Silver-Imports-vs-Registered-Silver-Inventories.png

^ comes from a good article that spells it out in lay terms: http://www.silverdoctors.com/india-imports-more-silver-in-1-month-than-entire-available-comex-inventories/#more-58592


PREPARING FOR COLLAPSE: Record Eight-Year Silver Buying Intensity Continues
Posted on October 4, 2015

http://www.silverdoctors.com/preparing-for-collapse-record-eight-year-silver-buying-intensity-continues/

[idiit]

the rothschilds control global currency. they have replaced real money (gold/silver) with fiat currency based on an intentional debt slavery system aka "green slavery". the Zionists can and do virtually create $trillions of $frn. they counterfeit their own currency with zealous abandon. the latest scam is to have the Zionist controlled banks short sell us-treasuries. they sell bonds ( usa t-bonds) they don't own into the market. these are called "failure to deliver" in white collar criminal parlance. jim willie believes the evidence points to 1 $trillion a month just in fake t-bond sales by the rothschilds bank's to support their derivative and hedging losses. that's just "failure to deliver" counterfeiting. QE∞ ( QE to the infinity power) is now the Zionist strategy.

the new financial system will go to trade based global financial transactions. the medium of exchange will be physical gold backed trade notes since the brics control global trade. they will temporarily bypass "money" and go to the mechanism they control; gold and trade.

a new global financial reset is imminent, real imminent. it is a recalculation of the price of gold/silver. it will very likely be dramatic. all fiat currencies will be devalued into oblivion; worthless.

the usa has no gold. it's been stolen under the guise of "leasing".

the new global financial system will be governed by trade, not fiat currency. trade backed by physical gold/silver trade notes.

the usa exports gmo food, weapons, tobacco and alcohol. America is poorly prepared for a trade based global financial system as no one will want their toxic exports. America has no gold.


Right Now There Are 102.6 Million Working Age Americans That Do Not Have A Job, That Is Not An Economic Recovery – That Is An Economic Depression Of An Almost Unbelievable Magnitude

^http://revolutionradio.org/?p=109863

America has replaced manufacturing jobs with electronic foodstamps/welfare. when america's frn$ is no longer accepted by trading nations the country that until recently consumed 60% of the worlds mfg. goods will not have the physical gold/silver nor trade goods wanted by other trading nations.

jim willie is excellent at explaining this as well as other essential financial topics. here is his latest podcast interview broken into 2 1 hour segments:

https://www.trunews.com/tuesday-september-29-2015-jim-willie-pt-1/

Wednesday September 30, 2015 – Jim Willie Pt. 2
Read more at https://www.trunews.com/wednesday-september-30-2015-jim-willie-pt-2/#vI2bp3XlaWjCp0Br.99

the new brics alliance that is already over 140 nations strong is forcing a return to real money. gold/silver trade notes will be the interim means used to get away from the genetically reptilian Zionist control systems.

[Pam]

Thanks, idiit. I appreciate you taking the time to educate those of us that want to learn more about this precariously balanced house of cards. You have also provided some really good sources of information that I knew nothing about.

[idiit]

derivative debt, liquidity problems, and the expense of hedging risk are all tied together into global economic meltdown.
^ from earlier post. silver doctor's article and jim willie podcast in my last post were explaining "it". this graph dramatically depicts what they are talking about.

http://investmentresearchdynamics.com/wp-content/uploads/2015/10/REPO1.png


You can also see from this graph that the size of the “spike” occurrences in reverse repo operations has significantly increased since 2014 relative to the spike up in 2008. In fact, the latest two-week spike is by far the largest reverse repo operation on record.


Without a doubt, the graphs above are telling us that something “broke” in the banking system which necessitated the biggest injection of Treasury collateral in history into the global banking system by the Fed.

http://www.silverdoctors.com/fund-manager-a-liquidity-crisis-hit-the-banking-in-september/

the graph does not show the enormous "failures to deliver" in the usa treasury counterfeiting scheme to artificially shore up federal reserve controlled big bank's derivatives losses.

[Pam]

I pulled this thread out to add some new information that may be the start of something big, if my gut instinct is right.

I found this on Market Watch this morning;


A high-yield mutual fund is blocking investors from withdrawing their money, in a rare and jarring move amid a severe downturn in below-investment-grade and distressed debt.

The move at Third Avenue Focused Credit Fund is intended to facilitate an orderly liquidation of the fund, which recently had $789 million in assets, down from more than $2.4 billion earlier this year. It comes amid redemption requests at the fund and reduced liquidity in some parts of the bond market.

Those two factors made it “impractical” for the fund to pay off departing investors without selling holdings at fire-sale prices “that would unfairly disadvantage the remaining shareholders,” David Barse, chief executive of Third Avenue Management LLC, wrote in a letter to shareholders dated Wednesday.

“Most mutual-fund investors are under the presumption that their money is available for them at a moment’s notice,” says Jeff Tjornehoj, head of Americas research at Thomson Reuters Lipper. While investors understand that the higher yields of junk bonds come with risks, he said, “I don’t think many of them ever plan on a fund blowing up like this.”

The move at the Third Avenue mutual fund comes at a time of widespread uneasiness about holdings of hard-to-sell securities in funds that trade daily or intraday.


So, this is the first fund that I am aware of that is having liquidity issues to the point that folks can't even sell their shares. It is all too reminiscent of the 2008 financial debacle and the Madoff Ponzi scheme. I know this is not the same but the desperation seems to be equal. With oil falling to 35.00 usd a barrel, and due to the fact that many low quality bonds are issued from the energy sector, junk bonds are taking even a bigger hit. There are some PA members that are really sharp with their assessments of the financial situation, I would like to know what you guys are thinking about this?

I just don't see how commodities, particularly oil, can continue this free fall without the house of cards falling sooner or later.

[umar]

Zerohedge reports that second distressed bond fund Stone Lion setup by former Bear Stearn employees has stopped redemptions too.

And the Carl Icanh's warning that this is the beginning of HY collapse.

The way it looks, if nothing changes Monday could turn out to be bad. Already in many emerging markets stocks are close to below the August flash-crash lows.

How is Janet Yellen raise rates is now a mystery. The problem is if she doesn't then dollar will crash more and fear will likely intensify.

[Pam]

Thanks for the added information, umar and a belated welcome to PA!!!!! I just can't help but believe this is the beginning of something bigger. Well, not actually the beginning. We have been watching the set up for a long time now. I think this might be the time where we see the repercussions. The culminating events will be the final drops in oil, the years of easy, low rate lending to corporations and possibly the rate hike.... we will see......I am certainly a novice in this area and the ,members that are really educated in this field must not be picking up the same things, as I don't see them joining in at this time.

[mgray]

Here's the latest (http://wp.me/ppklu-jI)I'm hearing on the junk bond implosion. Like CDOs and ABSs in 2008, these high-yield bombs will seize markets as many Main Street mutual funds were trying to dress up their returns with these debt bombs.

[Pam]

Here's the latest (http://wp.me/ppklu-jI)I'm hearing on the junk bond implosion. Like CDOs and ABSs in 2008, these high-yield bombs will seize markets as many Main Street mutual funds were trying to dress up their returns with these debt bombs.



Thanks mgray, for the wonderful assessment on your blog. I read it all the time and wasn't aware that you did a Saturday edition this week. Mgray has a most insightful blog, I have really learned a lot from him and highly recommend it for anyone interested in the truth about the happenings on Wall Street.

[mgray]

Here's the latest (http://wp.me/ppklu-jI)I'm hearing on the junk bond implosion. Like CDOs and ABSs in 2008, these high-yield bombs will seize markets as many Main Street mutual funds were trying to dress up their returns with these debt bombs.

Thanks mgray, for the wonderful assessment on your blog. I read it all the time and wasn't aware that you did a Saturday edition this week. Mgray has a most insightful blog, I have really learned a lot from him and highly recommend it for anyone interested in the truth about the happenings on Wall Street.

Peter, thank you for the kind words and endorsement. I usually do not post on Saturday, unless there is breaking news, which based on this could mean Saturday will be a regular posting day. lol

[pyrangello]

mgray, very cool to have you on board. My snapshot view from a business perspective , things are getting busier on an overall basis for anyone that wants to work, however from the financial world of banks, stocks ,oil and commodities and bonds and currency values that entire segment is like being out on a clipper ship with nothing but holes in all the sails and everyone is just grasping at whatever wave motion comes by to get some momentum. I listen to Joseph Meyer on caravan to midnight and read quite a few memos from Miles Franklin . Were on the 40 year cycle of money that should have already reset at the end of bush, then obama came in and that team put nitro in the piggy bank and printed and spent money to the high heavens . It only seems now that when artificial money isn't being pumped out that is when the economy starts rolling again but I fear that recovery of every time the monopoly money is thrown in the air its getting harder and harder for the real economy to start back up again.Does this make any sense or am I am I missing something here? And I welcome your thoughts or corrections.

Is this the end of the world, no, Its just another reset of a currency and a system eventually. Of the 600 or more currencies ever in existence , NONE of them have ever succeeded so were all just in another cycle once again and thats worldwide. Remember that ship I was talking about at sea with the banking industry and everyone else. I think I'll just sit on shore and watch it twirl around in the water and just buckle down for the long haul with me and my family, it may be a bumpy ride even on shore but will make it, and at least I won't be in the water with that ship and the sharks when it goes down. Its just a matter of when that happens.

[East Sun]

I don't know enough about financing to understand the ramifications involved, but I have a question--

When we are forced to go paperless and they crash the electronic grid, will we loose all our money whether in banks or under the mattress?

If we have nothing to barter with will we be up the creek without a paddle, so to speak.

[Pam]

I don't know enough about financing to understand the ramifications involved, but I have a question--

When we are forced to go paperless and they crash the electronic grid, will we loose all our money whether in banks or under the mattress?

If we have nothing to barter with will we be up the creek without a paddle, so to speak.



My thoughts about paperless money is that rather than taking it from you they will control you with it. If you don't cooperate in every way a hold will be placed on your funds. An advanced and expanded version of garnishing your paycheck, so to speak.

[umar]

Thanks Peterpam for the welcome!

And yes, that's a nice blog mgray has!

My guess is that Yellen will raise the rates this time by 0.25% but wrap it in lot of words that will be ultra dovish, kind of like saying next rise is long long time away.


HY bond market issues seem real but unless something catastrophic happens Yellen will keep to the rate rise plan. This is just to show they 'can' and maintain some credibility. US stocks might actually rise after that if Yellen can sell that confidence that everything is good.

But emerging markets like Brazil, India, Malaysia will be badly affected by capital outflows and plunging stocks, bonds and currencies there.

Emerging market crisis and HY bond crisis are the biggest risk now.

Like Peter Schiff had said, 2000 was the dotcom and stock bubble, 2008 was housing and stock bubble, this time it is stock, housing and bond bubble on a global scale.

It is difficult to think the central banks are so consistently and predictably incompetent. This must be design.

I agree with Peterpam above that paperless money is mostly about control. This is the total surveillance state. This is more political than economic.

In any case, I expect this coming week to be most interesting of the whole of 2015.

[East Sun]

That is
[QUOTE=East Sun;1028944]I don't know enough about financing to understand the ramifications involved, but I have a question--

When we are forced to go paperless and they crash the electronic grid, will we loose all our money whether in banks or under the mattress?

If we have nothing to barter with will we be up the creek without a paddle, so to speak.[/QUOTE

]My thoughts about paperless money is that rather than taking it from you they will control you with it. If you don't cooperate in every way a hold will be placed on your funds. An advanced and expanded version of garnishing your paycheck, so to speak.

That is part of their plan, no doubt!!!!!!!!!!!!!!

[mgray]

If you look at what the Federal Reserve has done over the last 7 years, it's one of the largest transfers of wealth in history. The US middle class is vanishing as $4.2 trillion was given to the upper class in a stock asset bubble.

Part time work can be found, but not work that can sustain a family with a home and car in the driveway. So to say that the dollar is going away anytime soon would be mistake. There's too much riding on it for the one's making the decisions.

I still feel at some point in the near future, there will be a global jubilee, where a percent of debt will be repudiated by all governments, since all know most of the debt on the books cannot and will not be paid.

By the way I see you are in northern Michigan, I assume the UP. My brother went to college in Houghton, MI at MTU. Remember visiting beautiful country up there.

[Callista]

From http://www.maxkeiser.com/2015/12/reinventing-banking-from-russia-to-iceland-to-ecuador/#more-79112

Reinventing Banking: From Russia to Iceland to Ecuador

Posted on December 12, 2015 by Ellen Brown

Global developments in finance and geopolitics are prompting a rethinking of the structure of banking and of the nature of money itself. Among other interesting news items:

In Russia, vulnerability to Western sanctions has led to proposals for a banking system that is not only independent of the West but is based on different design principles.

In Iceland, the booms and busts culminating in the banking crisis of 2008-09 have prompted lawmakers to consider a plan to remove the power to create money from private banks.

In Ireland, Iceland and the UK, a recession-induced shortage of local credit has prompted proposals for a system of public interest banks on the model of the Sparkassen of Germany.

In Ecuador, the central bank is responding to a shortage of US dollars (the official Ecuadorian currency) by issuing digital dollars through accounts to which everyone has access, effectively making it a bank of the people.

Developments in Russia

In a November 2015 article titled “Russia Debates Unorthodox Orthodox Financial Alternative,” William Engdahl writes:

A significant debate is underway in Russia since imposition of western financial sanctions on Russian banks and corporations in 2014. It’s about a proposal presented by the Moscow Patriarchate of the Orthodox Church. The proposal, which resembles Islamic interest-free banking models in many respects, was first unveiled in December 2014 at the depth of the Ruble crisis and oil price free-fall. This August the idea received a huge boost from the endorsement of the Russian Chamber of Commerce and Industry. It could change history for the better depending on what is done and where it further leads.

Engdahl notes that the financial sanctions launched by the US Treasury in 2014 have forced a critical rethinking among Russian intellectuals and officials. Like China, Russia has developed an internal Russian version of SWIFT Interbank payments; and it is now considering a plan to restructure Russia’s banking system. Engdahl writes:

Much as with Islamic banking models that ban usury, the Orthodox Financial System would not allow interest charges on loans. Participants of the system share risks, profits and losses. Speculative behavior is prohibited . . . . There would be a new low-risk bank or credit organization that controls all transactions, and investment funds or companies that source investors and mediate project financing. . . . Priority would be ensuring financing of the real sector of the economy . . . .

On September 15, 2013, Sergei Glazyev, one of Vladimir Putin’s economic advisers, presented a a series of economic proposals to the Presidential Russian Security Council that also suggest radical change is on the horizon. The plan is aimed at reducing vulnerability to western sanctions and achieving long-term growth and economic sovereignty.


Particularly interesting is a proposal to provide targeted lending for businesses and industries by providing them with low-interest loans at 1-4 percent, financed through the central bank with quantitative easing (digital money creation). The proposal is to issue 20 trillion rubles for this purpose over a five year period. Using quantitative easing for economic development mirrors the proposal of UK Labour Leader Jeremy Corbyn for “quantitative easing for people.”

William Engdahl concludes that Russia is in “a fascinating process of rethinking every aspect of her national economic survival because of the reality of the western attacks,” one that “could produce a very healthy transformation away from the deadly defects” of the current banking model.

Iceland’s Radical Money Plan

Iceland, too, is looking at a radical transformation of its money system, after suffering the crushing boom/bust cycle of the private banking model that bankrupted its largest banks in 2008. According to a March 2015 article in the UK Telegraph:

Iceland’s government is considering a revolutionary monetary proposal – removing the power of commercial banks to create money and handing it to the central bank. The proposal, which would be a turnaround in the history of modern finance, was part of a report written by a lawmaker from the ruling centrist Progress Party, Frosti Sigurjonsson, entitled “A better monetary system for Iceland”.

“The findings will be an important contribution to the upcoming discussion, here and elsewhere, on money creation and monetary policy,” Prime Minister Sigmundur David Gunnlaugsson said. The report, commissioned by the premier, is aimed at putting an end to a monetary system in place through a slew of financial crises, including the latest one in 2008.

Under this “Sovereign Money” proposal, the country’s central bank would become the only creator of money. Banks would continue to manage accounts and payments and would serve as intermediaries between savers and lenders. The proposal is a variant of the Chicago Plan promoted by Kumhof and Benes of the IMF and the Positive Money group in the UK.

Public Banking Initiatives in Iceland, Ireland and the UK

A major concern with stripping private banks of the power to create money as deposits when they make loans is that it will seriously reduce the availability of credit in an already sluggish economy. One solution is to make the banks, or some of them, public institutions. They would still be creating money when they made loans, but it would be as agents of the government; and the profits would be available for public use, on the model of the US Bank of North Dakota and the German Sparkassen (public savings banks).

In Ireland, three political parties – Sinn Fein, the Green Party and Renua Ireland (a new party) — are now supporting initiatives for a network of local publicly-owned banks on the Sparkassen model. In the UK, the New Economy Foundation (NEF) is proposing that the failed Royal Bank of Scotland be transformed into a network of public interest banks on that model. And in Iceland, public banking is part of the platform of a new political party called the Dawn Party.

Ecuador’s Dinero Electronico: A National Digital Currency

So far, these banking overhauls are just proposals; but in Ecuador, radical transformation of the banking system is under way.

Ever since 2000, when Ecuador agreed to use the US dollar as its official legal tender, it has had to ship boatloads of paper dollars into the country just to conduct trade. In order to “seek efficiency in payment systems [and] to promote and contribute to the economic stability of the country,” the government of President Rafael Correa has therefore established the world’s first national digitally-issued currency.

Unlike Bitcoin and similar private crypto-currencies (which have been outlawed in the country), Ecuador’s dinero electronico is operated and backed by the government. The Ecuadorian digital currency is less like Bitcoin than like M-Pesa, a private mobile phone-based money transfer service started by Vodafone, which has generated a “mobile money” revolution in Kenya.

Western central banks issue digital currency for the use of commercial banks in their reserve accounts, but it is not available to the public. In Ecuador, any qualifying person can have an account at the central bank; and opening one is as easy as walking into a participating financial institution and exchanging paper money for electronic money stored on their smartphones.

Ecuador’s banks and other financial institutions were ordered in May 2015 to adopt the digital payment system within the next year, making them “macro-agents” of the Electric Currency System.

According to a National Assembly statement:

Electronic money will stimulate the economy; it will be possible to attract more Ecuadorian citizens, especially those who do not have checking or savings accounts and credit cards alone. The electronic currency will be backed by the assets of the Central Bank of Ecuador.

That means there is no fear of the bank going bankrupt or of bank runs or bail-ins. Nor can the digital currency be devalued by speculative short selling. The government has declared that these are digital US dollars trading at 1 to 1 – take it or leave it – and the people are taking it. According to an October 2015 article titled “Ecuador’s Digital Currency Is Winning Hearts!”, the currency is actually taking the country by storm; and other countries in Latin America and Africa are not far behind.

The president of the Ecuadorian Association of Private Banks observes that the digital currency could be used to finance the public debt. However, the government has insisted that this will not be done. According to an economist at Ecuador’s central bank:

We did it from the government because we wanted it to be a democratic product. In any other countries, [digital currency] is provided by private companies, and it is expensive. There are barriers to entry, like [expensive fees] if you transfer money from one cellphone operator to another. What we have here is something everyone can use regardless of the operator they are using.

Banking Moves into the 21st Century

The catastrophic failures of the Western banking system mandate a new vision. These transformations, current and proposed, are constructive steps toward streamlining the banking system, eliminating the risks that have devastated individuals and governments, democratizing money, and promoting sustainable and prosperous economies.

They also raise some provocative questions:

Would issuing “quantitative easing” to the tune of 20 trillion rubles for Russian development and trade trigger hyperinflation?
Could merging the Iceland version of the Chicago Plan with a public banking initiative return the power to create money to the public without collapsing credit?
How does the Ecuadorian national digital currency mesh with the “war on cash” underway in Europe?
These and related questions will be explored in later articles. Stay tuned.


Read more at http://www.maxkeiser.com/2015/12/reinventing-banking-from-russia-to-iceland-to-ecuador/#lXVsEuaxuCi5Sqit.99 (http://www.maxkeiser.com/2015/12/reinventing-banking-from-russia-to-iceland-to-ecuador/#more-79112)