Gold World News Flash |
- US Companies Dying, Poverty Rising As We Approach The Economic Collapse
- Personal anecdote: The winds of change???
- CERN At Full Power/Earth’s Shields Collapse/Sun Erupts
- Orange Animas River in Colorado after EPA spills 1mn gallons waste
- The Next Silver Bull May Have Already Started
- Prophetic days of September
- The Story Of America's Debt In 6 Easy Graphics
- When A Train Wreck Is No Accident
- The $12 Trillion Fat Finger: How A "Glitch" Nearly Crashed The Global Financial System - A True Story
- Gibson's Paradox: The Consequences For Gold
- Greece's Collapse Was a Reversion to the Mean… Who's Next?
- Shemitah September 13 target for Economic Collapse - Trump Advised
- Confederate Flag Emotional Distraction
- Max Igan -- Transcending Tyranny
- Is the Pope the Devil -- Alex Jones
- Jim’s Mailbox
- ILLUMINATI PLANS 2016 - The End of World ( BIBLE VERSION )
- Bron Suchecki: A very silly think to think about Comex
- Ron Paul: Donald Trump Is Part of the Problem
- Peter Schiff : The Last Thing That Fed Wants is a Rate Hike
- Peter Boehringer – Bundesbank argues the wrong way round
- Stocks, Bonds, USD: What Interest Rate Hike?
| US Companies Dying, Poverty Rising As We Approach The Economic Collapse Posted: 08 Aug 2015 11:00 PM PDT from X22Report: |
| Personal anecdote: The winds of change??? Posted: 08 Aug 2015 10:01 PM PDT by Jeff Nielson, Bullion Bulls:
Any readers of my own work, and/or readers of commentators with a similar message will have undoubtedly tried to alert and warn other people they encounter in their own lives. Thus they will be able to relate very easily to what I used to encounter when I tried to alert and warn people, myself. You would get “that look” from other people.
Actually, there are several looks. There is the boredom reaction. The person immediately dismisses what you’re saying as absurd, they get a very placid expression on their faces and their eyes sort of glaze over, indicating that they’re no longer really hearing you. Then there is the (slightly) nervous look, where you know what the person is thinking: this guy is crazy. Often that “look” is accompanied by furtive glances for the nearest exit — in case they need to “escape”.
But, at least in my own life, times seem to be changing. Obviously this doesn’t apply to everyone. With respect to the totally brainwashed drones, who believe (wholeheartedly) everything they are told by the Establishment; nothing is different. If anything; things are worse. They actually think that the world has gotten better since all the craziness (from the Fascists) really began to intensify. With respect to those people whose minds are not set (and permanently frozen) in the “off” position, however, things do seem to be changing. I’m no longer seeing “that look”, at least not nearly as often. Instead, I’m encountering more and more people who (at the least) are willing to politely listen. And here I mean really listen. You can tell that you’re talking to someone whose mind is still engaged. Beyond that, are the people who are now nodding agreement, or giving some other overt indication that they are receptive to that message. And then there is the encounter I had today. I recently began seeing a new chiropractor, after my former chiropractor was forced to close his practice for health reasons. Today was only my second visit, so in personal terms this person is still “a stranger”. But I arrived early, and as I waited for my appointment I saw a lot of obviously progressive literature (mostly health related). Along with this; the chiropractor had a monitor pointed toward the waiting area, which continually flashed various “famous quotes” and other philosophical gems, much like the “Notable Quotes”section here at BBC. As with the other literature; many of the quotes were generic and/or health-related. But mixed in with those were (at least) three from Thomas Jefferson — and good ones (I wish I could remember them – lol). The chiropractor is a very personable man, and runs his practice very informally. So when I went in for adjustment, I not only mentioned that I really liked his display of quotes, I also mentioned that I had a website where I had amassed a similar collection myself. At that point; he made a polite inquiry as to the nature of the website, and I gave my standard reply that it was a precious metals website “but” becoming educated about precious metals now required becoming informed about (pretty much) “everything”. And then I ventured to go a little further (with the Thomas Jefferson quotes still fresh in my mind). I added that we now lived in a “world” very different than what was presented to us by government-and-media. Instead of indicating that he had heard all that he needed to know (or even more than that – lol), he expressed further curiosity. At this point, let me add that the only other patient in the office was busy filling out forms when I went in (and still filling out those forms when I came out), so the chiropractor had the luxury of a few spare minutes. I continued. And then instead of getting bored, or otherwise looking to bring my monologue to an end; he began asking questions. “Where’s a good place to buy bullion?” “Gold or silver?” This is certainly not the first time I’ve been asked such questions by casual acquaintances. But those other occasions involved people who I had talked to on several occasions, and it was only after some time to cogitate on my “warnings” that they got to the stage of serious inquiry (i.e. how do I protect myself?). The last point to attach to this anecdote is that my chiropractor is a relatively young man (early 30’s?), and the people who now seem to be reached/reachable by what I have to say are just as likely to be younger as they are to be of a similar age, or older. This is in contrast to the majority of the Community (at least as far as I know). Here people tend to be of a similar age — or older. This is a simple reflection of the fact that (with their additional years of life experience) it hasn’t been as easy for our governments (and their propaganda machine) to brainwash us. With respect to anyone under forty, these people have lived their entire lives being fed a fairy-tale which we know is nothing but the most-perverse fiction. I mention this because (tied to our computers) WE only tend to see the world which the Old World Order wants us to see. In that world; everything is fine, everyone is relatively content, status quo. End of story. Maybe not? Maybe the lies have now gotten too large? Maybe the social/economic destruction of our societies has grown too extreme to hide (except for the severely brainwashed)? Maybe the political perversion of our societies has now reached such disgusting proportions that otherwise tolerant people have simply had enough? Banning free speech in the UK. Banning public protest in Spain. Creating a “secret police” in Canada. Then there is the Fascist States of America, where police departments are now directing officers on patrol to detain people on any fabricated pretext they can invent — and then ROB THEM. And (of course) should the person detained make the officer “nervous” (or simply annoyed), they may also shoot them. |
| CERN At Full Power/Earth’s Shields Collapse/Sun Erupts Posted: 08 Aug 2015 09:00 PM PDT from BPEarthWatch: Cern is Running at 13 Tev. The sun is now erupting with multiple solar filament releases. Quake Watch |
| Orange Animas River in Colorado after EPA spills 1mn gallons waste Posted: 08 Aug 2015 07:00 PM PDT from RT: Drone footage shot on Friday revealed how the stretch of the Animas River near Silverton had changed colour, after an estimated one millions gallons of toxic waste from an environmental mine contaminated it. The wastewater, which is rich in heavy metals such as lead and cadmium as well as the poisonous arsenic, was unintentionally released while a team was working at a Gold King Mine entrance. |
| The Next Silver Bull May Have Already Started Posted: 08 Aug 2015 06:21 PM PDT The Next Silver Bull May Have Already StartedBy Laurynas VegysSilver is down 7.1% this year. Will this weakness persist? To find out, let’s look at the key factors in the silver market this year.
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| Posted: 08 Aug 2015 05:00 PM PDT Just over a month till prophetic days of September. What have you noticed going on in our world that has also been described in the Bible? The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative journalists , researchers... [[ This is a content summary only. Visit http://www.newsbooze.com or http://www.figanews.com for full links, other content, and more! ]]  |
| The Story Of America's Debt In 6 Easy Graphics Posted: 08 Aug 2015 04:15 PM PDT Despite incessant pundit parroting of the "deleveraging households" meme, America is and probably always will be, addicted to debt. If you need proof, have a look at the latest statistics on non-mortgage debt, which, thanks to America's twin trillion-dollar bubbles, recently soared to its highest level in a decade. To wit, from HousingWire, citing Black Knight Financial:
Now, Pew is out with a new study entitled "The Complex Story Of American Debt" and as you might have imagined, the non-profit found that the past three decades have witnessed an unprecedented shift in Americans' propensity to leverage household balance sheets. This tendency has not been accompanied by a concurrent and proportional increase in household income. Here is the story of America's debt addiction in six graphics:
More, from Pew:
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| When A Train Wreck Is No Accident Posted: 08 Aug 2015 03:30 PM PDT Submitted by Jeff Thomas via InternationalMan.com,
Never in history have the economic and political structures been so manipulated by those who are responsible for their safekeeping; never has so much been at stake, in so many countries, and facing collapse, all at the same time. The great majority of people in the First World recognise that the world is passing through an economic crisis. However, most are under the impression that there are some pretty smart fellows running the show and all they need to do is tweak the system a bit more and we’ll return to happy days. Not so. The “smart fellows” who are in charge of fixing the problem are in fact the very same people who created it. Understandably, this a hard concept for most people to even consider, let alone accept, as the very idea that those in charge of the system might consciously collapse it seems preposterous. So, we might wish to back up a bit here and present a very brief history of the system itself, in order to understand that the eventual collapse of the economic system was baked in the cake from the very beginning. Creating a Central BankFrom the very earliest days of the formation of the American republic, bankers (along with inside help from George Washington’s secretary of the Treasury, Alexander Hamilton) sought to create a banking monopoly that would create the country’s currency and become the central banking system. The first attempt at a central bank was a failure, and strong opponents, including Thomas Jefferson, prevented a second central bank for a time. Later, further attempts were made by bankers and their political cronies, and each central bank was either short-lived or defeated in its planning stages. Then, in 1913, the heads of the largest banks met clandestinely on Jekyll Island, Georgia, to make another try. Having recently lost yet another bid to create a central bank, due to the public’s understandable concern that the big bankers were already too powerful, a new spin was placed on the idea. This time, they decided to present the idea as a government body that would be decentralised and would have the responsibility of restricting the power of the banks. However, the new bill was in fact the same old bill, with a new title and some minor changes in wording. But this time, it would be presented by the new president, who was a liberal. The president, Woodrow Wilson, had in fact been handpicked by the banks. The banks then scuttled their own conservative party’s candidate, got the Democrat Wilson elected, then installed a secretary of the Treasury whose job it would be to ensure that the Federal Reserve was created. The bill was widely supported by the public, even though, in truth, it was not a federal agency, but a privately owned conglomerate, controlled by the banks. Neither was it a reserve. It was never intended to store money; it was intended to give the biggest bankers control of the economy. They followed the central principle of uber-banker Mayer Rothschild: “Let me issue and control a nation’s money and I care not who writes the laws.” From the start, the new institution peddled itself as the protector of the people’s interests, but it was quite the opposite. Its purpose from its inception was to control the economy and the government by controlling the issuance of the currency. In addition, it was to be a system of taxation. Typically, a population accepts a certain amount of direct taxation but has its limits of tolerance. Yet, the bankers understood that a less direct method of taxation was infinitely more profitable and infinitely safer from criticism. Inflation as a Profit SystemInflation was not always the norm. At one time, prices were relatively static from one generation to the next. But the Federal Reserve touted the idea that “controlled” inflation was in fact necessary for a prosperous economy. Of course, the greater the debasement of the currency through inflation, the more the central bankers profited. But at some point, the currency would have lost virtually all its value and it would be time for a reset. The currency would need to collapse and a new one created. And so, the Fed set about its hundred-year programme of continuous inflation. Although there have been periods of lower inflation (and even deflation), the programme stayed more or less on course, and now, its hundred-year life has all but ended: the dollar has been devalued almost 100%. And so, we find ourselves at the day of reckoning. The economic crisis we are now facing (not only in the US; it will be felt, to a greater or lesser extent, worldwide) is not a mere anomaly that we need to “push past”. It’s a systemic crisis. It’s been created by design and the system must collapse. Of course, the central banks are in the process of protecting their interests, to make sure that, whilst this will be a major economic calamity, they themselves will continue to profit. The damage will be borne by the general public. This began in earnest in 1999, with the repeal of the Glass-Steagall Act, allowing banks to create a massive, reckless mortgage spree. It was backed by the government’s “too big to fail” policy that guaranteed that, when the banks predictably became insolvent as a result of the loans, government would bail them out. (And by “government” we mean “the taxpayer”; it was he who picked up the bill for the banks’ recklessness.) The End GameThe next step in getting ready for the collapse is an all-out effort to confiscate the wealth of the public. This can be seen in the effort to push investors away from solid forms of wealth protection such as gold and silver and into stocks, bonds and bank deposits. More recently, we’ve seen the emergence of an effort to end the use of safe deposit boxes and a push to end the use of paper currency in making transactions. The end objective is to force as much money as possible into deposits in banks, then take it. The US, EU and a few other countries have passed confiscation legislation, allowing the banks carte blanche to confiscate and/or refuse to release deposits. Of course a reset of these proportions will not be without its fallout. The public will be horrified at the outcome, at the realisation that the very institutions they thought had been created to protect them had never been intended to serve their interests at all. Once they realise that the world’s greatest Ponzi scheme has been foisted on them, they will be hopping mad and justifiably so. Those who had not had the foresight to internationalise themselves, to remove themselves as much as possible from the system, will most certainly want to get even in some way. And this makes clear why governments, particularly that of the US, are working so hard to create a police state. Unless a totalitarian state can be created, those who are presently taking the wealth may not be able to fully realise their objectives. The coming train wreck is no accident. It has long been planned. That the “smart fellows in charge” will somehow save the day is therefore a vain hope indeed. It’s still possible to back out of the system, but it’s getting more difficult every day. The window is closing, and the time to internationalise is now. |
| Posted: 08 Aug 2015 02:43 PM PDT For all the talk of how the financial world nearly ended in the aftermath of first the Lehman bankruptcy, then the money market freeze, and culminating with the AIG bailout, and how bubble after Fed bubble has made the entire financial system as brittle as the weakest counterparty in the collateral chain of some $100 trillion in shadow liabilities, the truth is that despite all the "macroprudential" planning and preparations, all the world's credit, housing, stock, and illiquidity bubbles may be nothing when compared to the oldest "glitch" in the book: a simple cascading error which ends up taking down the entire system. Like what happened in the great quant blow up August 2007. For those who may not recall the specific details of how the "quant crash" nearly wiped out all algo and quant trading hedge funds and strats in a matter of hours if not minutes, leading to tens of billions in capital losses, here is a reminder, and a warning that the official goalseeked crisis narrative "after" the fact is merely there to hide the embarrassment of just how close to total collapse the global financial system is at any given moment. The following is a true story (courtesy of b3ta) from the archives, going all the way back to 2007: I.T. is a minefield for expensive mistakes There's so many different ways to screw up. The best you can hope for in a support role is to be invisible. If anyone notices your support team at all, you can rest assured it's because someone has made a mistake. I've worked for three major investment banks, but at the first place I witnessed one of the most impressive mistakes I'm ever likely to see in my career. I was part of the sales and trading production support team, but thankfully it wasn't me who made this grave error of judgement... (I'll delve into obnoxious levels of detail here to add color and context if you're interested. If not, just skip to the next chunk, you impatient git) This bank had pioneered a process called straight-through processing (STP) which removes the normal manual processes of placement, checking, settling and clearing of trades. Trades done in the global marketplace typically have a 5-day clearing period to allow for all the paperwork and book-keeping to be done. This elaborate system allowed same-day settlement, something never previously possible. The bank had achieved this over a period of six years by developing a computer system with a degree of complexity that rivalled SkyNet. By 2006 it also probably had enough processing power to become self-aware, and the storage requirements were absolutely colossal. It consisted of hundreds of bleeding edge compute-farm blade servers, several £multi-million top-end database servers and the project had over 300 staff just to keep it running. To put that into perspective, the storage for this one system (one of about 500 major trading systems at the bank) represented over 80% of the total storage used within the company. The equivalent of 100 DVD's worth of raw data entered the databases each day as it handled over a million inter-bank trades, each ranging in value from a few hundred thousand dollars to multi-billion dollar equity deals. This thing was BIG. You'd think such a critically important and expensive system would run on the finest, fault-tolerant hardware and software. Unfortunately, it had grown somewhat organically over the years, with bits being added here, there and everywhere. There were parts of this system that no-one understood any more, as the original, lazy developers had moved company, emigrated or *died* without documenting their work. I doubt they ever predicted the monster it would eventually become. A colleague of mine one day decided to perform a change during the day without authorisation, which was foolish, but not uncommon. It was a trivial change to add yet more storage and he'd done it many times before so he was confident about it. The guy was only trying to be helpful to the besieged developers, who were constantly under pressure to keep the wretched thing moving as it got more bloated each day, like an electronic 'Mr Creosote'. As my friend applied his change that morning, he triggered a bug in a notoriously crap script responsible for bringing new data disks online. The script had been coded in-house as this saved the bank about £300 per year on licensing fees for the official 'storage agents' provided by the vendor. Money that, in hindsight, would perhaps have been better spent instead of pocketed. The homebrew code took one look at the new configuration and immediately spazzed out. This monged scrap of pisspoor geek-scribble had decided the best course of action was to bring down the production end of the system and bring online the disaster recovery (DR) end, which is normal behaviour when it detects a catastrophic 'failure'. It's designed to bring up the working side of the setup as quickly as possible. Sadly, what with this system being fully-replicated at both sites (to [cough] ensure seamless recovery), the exact same bug was almost instantly triggered on the DR end, so in under a minute, the hateful script had taken offline the entire system in much the same manner as chucking a spanner into a running engine might stop a car. The databases, as always, were flushing their precious data onto many different disks as this happened, so massive, irreversible data corruption occurred. That was it, the biggest computer system in the bank, maybe even the world, was down. And it wasn't coming back up again quickly. (OK, detail over. Calm down) At the time this failure occurred there was more than $12 TRILLION of trades at various stages of the settlement process in the system. This represented around 20% of ALL trades on the global stock market, as other banks had started to plug into this behemoth and use its capabilities themselves. If those trades were not settled within the agreed timeframe, the bank would be liable for penalties on each and every one, the resulting fines would eclipse the market capital of the company, and so it would go out of business. Just like that. My team dropped everything it was doing and spent 4 solid, brutal hours recovering each component of the system in a desperate effort to coax the stubborn silicon back online. After a short time, the head of the European Central Bank (ECB) was on a crisis call with our company CEO, demanding status updates as to why so many trades were failing that day. Allegedly (as we were later told), the volume of financial goodies contained within this beast was so great that failure to clear the trades would have had a significant negative effect on the value of the Euro currency. This one fuckup almost started a global economic crisis on a scale similar to the recent (and ongoing) sub-prime credit crash. With two hours to spare before the ECB would be forced to go public by adjusting the Euro exchange rate to compensate, the system was up and running, but barely. We each manned a critical sub-component and diverted all resources into the clearing engines. The developers set the system to prioritise trades on value. Everything else on those servers was switched off to ensure every available CPU cycle and disk operation could be utilised. It saturated those machines with processing while we watched in silence, unable to influence the outcome at all. Incredibly, the largest proportion of the high-value transactions had cleared by the close of business deadline, and disaster was averted by the most "wafer-thin" margin. Despite this, the outstanding lower-value trades still cost the bank more than $100m in fines. Amazingly, to this day only a handful of people actually understand the true source of those penalties on the end-of-year shareholder report. Reputation is king in the world of banking and all concerned --including me-- were instructed quite explicitly to keep schtum. Naturally, I *can't* identify the bank in question, but if you're still curious, gaz me and I'll point you in the right direction… Epilogue… The bank stumped up for proper scripts pretty quickly but the poor sap who started this ball of shit rolling was fired in a pompous ceremony of blame the next day, which was rather unfair as it was dodgy coding which had really caused the problem. The company rationale was that every blaze needs a spark to start it, and he was going to be the one they would scapegoat. That was one of the major reasons I chose to leave the company (but not before giving the global head of technology a dressing down at our Christmas party… that's another QOTW altogether). Even today my errant mate is one of the only people who properly understands most of that preposterous computer system, so he had his job back within six months -- but at a higher rate than before :-) Conclusion: most banks are insane and they never do anything to fix problems until *after* it costs them uber-money. Did I hear you mention length? 100 million dollar bills in fines laid end-to-end is about 9,500 miles long according to Google calculator. * * * And here is Zero Hedge's conclusion: the next time you think all those paper reps and warranties to claims on billions if not trillions of assets, are safe and sound in some massively redundant hard disk array, think again. |
| Gibson's Paradox: The Consequences For Gold Posted: 08 Aug 2015 02:05 PM PDT Submitted by Alasdair Macleod via GoldMoney.com, We now have an explanation for Gibson's paradox (posted here), a puzzle that has defeated mainstream economists from Fisher to Keynes and Friedman.The best way to illustrate the puzzle is through two charts, the first showing empirical evidence that interest rates correlate with the price level.
And the second, showing no correlation between interest rates and the annual change in the price level, i.e. the rate of inflation.
The solution to the puzzle is simple: in free markets, interest rates are set by the demands of investing businesses which at the margin will pay a rate of interest based on whether their product prices are rising or falling: hence the correlation. The second chart shows that central bank policies, which seek to control prices by setting interest rates, have no theoretical justification behind them. They are the consequence of blindly accepting the quantity theory of money, upon which macroeconomics is based. A mistake made by central bankers is to believe that the price of money is its interest rate, instead of the reciprocal of the price of the products for which it is exchanged. Interest rates are money's time preference, which in free markets broadly reflects the average time preference of all the individual goods bought with money. The problem with monetarism is that it ignores this temporal aspect of exchange. It is worth bearing in mind that tomorrow's prices, and therefore the purchasing power of money, are wholly subjective, or put another way cannot be known in advance: if they were, we would be able to buy or sell something today in the certain knowledge of a profit tomorrow, which is obviously untrue. It therefore follows that the relative quantities of money and goods are not the key factors in determining price relationships. Far more important are consumer preferences for money against goods, which taken to an extreme can render the purchasing power of a currency to be worthless, irrespective of its quantity. This insight is necessary to put monetary theory into its proper context. Through monetary policy the Bank of England has overridden free market relationships since the mid-1970s, the Gibson relationship being apparent in the 240 years up to then. Chart 3 continues where Chart 1 left off.
The relationship ended when the Bank of England raised interest rates to 17.1% in 1974 to stop the hyperinflation of prices. For the first time the BoE set interest rates higher than the rate would have been in free markets relative to price levels, and the Fed did the same thing five years later. Since then prices have continued to rise, albeit at a declining pace, and sterling has lost a further 88% of its purchasing power and the US dollar 76%. Since that time interest rate management by these central banks has continued to suppress the Gibson relationship, as we should now call it. Monetary policy impairs the market between borrowers and savers. We see this today, with zero interest rates suppressing the relationship between savers and investing businesses creating an economic stasis. This brings us to a second error exposed by Gibson. The Fed is expected to raise interest rates from the zero bound in a few months' time in an attempt to return to some sort of normality. A rising interest rate trend would, according to Gibson, encourage prices to rise towards and likely through the Fed's 2% target inflation rate. This is not how financial traders see it, nor does the Fed. They expect the exact opposite, believing that rising interest rates are bad for demand and commodity prices, which is why the decision has been deferred for so long. The evidence tells us this view is mistaken and that rising interest rates will be accompanied by rising commodity prices. For example, between 1970 and 1980 gold rose from $36 to $800, and US interest rates from 9% to 17% as shown in Chart 4.
This is a slightly different point, but is graphically illustrates the mistake of thinking the price of anything can be suppressed through higher interest rates. |
| Greece's Collapse Was a Reversion to the Mean… Who's Next? Posted: 08 Aug 2015 01:45 PM PDT Because of the rampant fraud and money printing in the financial system, the real “bottom” or level of “price discovery” is far lower than anyone expects due to the fact that the run up to 2008 was so rife with accounting gimmicks and fraud.
The Greek debt crisis, like all crises in the financial system today, can be traced to derivatives via the large investment banks. Indeed, we now know that Greece actually used derivatives (via Goldman Sachs) to hide the true state of its debt problems in order to join the Euro.
Creative accounting took priority when it came to totting up government debt. Since 1999, the Maastricht rules threaten to slap hefty fines on euro member countries that exceed the budget deficit limit of three percent of gross domestic product. Total government debt mustn't exceed 60 percent.
The Greeks have never managed to stick to the 60 percent debt limit, and they only adhered to the three percent deficit ceiling with the help of blatant balance sheet cosmetics...
"Around 2002 in particular, various investment banks offered complex financial products with which governments could push part of their liabilities into the future," one insider recalled, adding that Mediterranean countries had snapped up such products.
Greece's debt managers agreed a huge deal with the savvy bankers of US investment bank Goldman Sachs at the start of 2002. The deal involved so-called cross-currency swaps in which government debt issued in dollars and yen was swapped for euro debt for a certain period -- to be exchanged back into the original currencies at a later date.
The above story for Greece is illustrative of the story for all “emerging markets” starting in 2003: tons of easy money, rampant use of derivatives for accounting gimmick, and the inevitable collapse.
From a big picture scenario, in 2003, the global Central Banks abandoned a focus on inflation and began to pump trillions in loose money into the economy. Because large banks could loan well in excess of $10 for every $1 in capital on their balance sheets, global credit went exponential.
The effect was sharply elevated asset prices that greatly benefitted tourism-centric economies such as Greece.
As I stated in our issue Price Discovery:
If the foundation of the financial system is debt… and that debt is backstopped by assets that the Big Banks can value well above their true values (remember, the banks want their collateral to maintain or increase in value)… then the “pricing” of the financial system will be elevated significantly above reality.
Put simply, a false “floor” was put under asset prices via fraud and funny money.
Take a look at the impact this had on Greece’s economy.
Below is Greek GDP dating back to the 1960s. Having maintained a long-term trendline of growth the country suddenly saw its GDP MORE THAN DOUBLE in less than 10 years after joining the EU?
In many regards, this “growth” was just a credit binge, much like housing prices, stock prices, etc. By joining the Euro, Greece was able to borrow money at much lower rates (2%-3% vs. 10%-20%).
Rather than using these lower rates to pay off its substantial debts, Greece funneled as much money as possible towards Government employees (nearly one in three Greek workers).
As a result, Government wages nearly doubled to the point that your typical Government employee was paid 150% more than his or her private sector counterpart. Add to this a pension system in which retirees are paid 92% of their former salaries and you have a debt bomb of epic proportions.
In simple terms, Greece from 2003-2010 was an economic boom driven by incomes, which were in turn driven by cheap debt NOT real organic growth. Thus, the collapse in GDP was yet another case of “price discovery” in which asset prices fall to economic realities…
Another Crisis is brewing. It’s already hit Greece and it will be spreading throughout the globe in the coming months. Smart investors are taking steps to prepare now, before it hits.
If you've yet to take action to prepare for this, we offer a FREE investment report called the Financial Crisis "Round Two" Survival Guide that outlines simple, easy to follow strategies you can use to not only protect your portfolio from it, but actually produce profits.
We are making 1,000 copies available for FREE the general public.
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Best Regards
Phoenix Capital Research
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| Shemitah September 13 target for Economic Collapse - Trump Advised Posted: 08 Aug 2015 01:30 PM PDT Some believe the Shemitah portends a "day of reckoning" for the United States. As reported by WorldNetDaily in June, a recent U.S. Supreme Court decision allegedly hastened that day: With the climax of the Shemitah year now just three months away on Sept. 13, America continues to saunter down the... [[ This is a content summary only. Visit http://www.newsbooze.com or http://www.figanews.com for full links, other content, and more! ]]  |
| Confederate Flag Emotional Distraction Posted: 08 Aug 2015 01:00 PM PDT Call Washington DC "Central Bank City" lets just be honest.They run the show and if when the dollar dies if you think this power group of debt and death is going to disappear I would really like to know where they're going.You know they have vaults of gold and silver and own real estate.These... [[ This is a content summary only. Visit http://www.newsbooze.com or http://www.figanews.com for full links, other content, and more! ]]  |
| Max Igan -- Transcending Tyranny Posted: 08 Aug 2015 12:30 PM PDT "When the tyrant has disposed of foreign enemies by conquest or treaty and there is nothing to fear from them, then he is always stirring up some war or other, in order that the people may require a leader" - Plato The Financial Armageddon Economic Collapse Blog tracks trends and... [[ This is a content summary only. Visit http://www.newsbooze.com or http://www.figanews.com for full links, other content, and more! ]]  |
| Is the Pope the Devil -- Alex Jones Posted: 08 Aug 2015 12:00 PM PDT Alex Jones reports from outside the Vatican city on the Pope and just incredibly evil he truly is. The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative journalists , researchers , Whistelblowers , truthers and many... [[ This is a content summary only. Visit http://www.newsbooze.com or http://www.figanews.com for full links, other content, and more! ]]  |
| Posted: 08 Aug 2015 11:59 AM PDT Jim, This is what the CIGAs need to know about Silver. David Morgan has written a book, “Silver Manifesto.” I just started reading it and it’s quite good. Mike Maloney discusses it on YouTube: http://www.youtube.com/watch?v=kA88MK_NUdY We don’t do a whole lot on silver even though I do believe it will be gold on steroids. Our... Read more » The post Jim’s Mailbox appeared first on Jim Sinclair's Mineset. |
| ILLUMINATI PLANS 2016 - The End of World ( BIBLE VERSION ) Posted: 08 Aug 2015 11:30 AM PDT 2015 is now at mid point, what Everybody is expecting and talking about isn't suppose to Start till somewhere between June 30th the Convergence of Jupiter & Venus & September 28th The Last and Super Blood Moon. So wait a bit longer The Financial Armageddon Economic Collapse... [[ This is a content summary only. Visit http://www.newsbooze.com or http://www.figanews.com for full links, other content, and more! ]]  |
| Bron Suchecki: A very silly think to think about Comex Posted: 08 Aug 2015 11:20 AM PDT 2:20p ET Saturday, August 8, 2015 Dear Friend of GATA and Gold: Perth Mint research director Bron Suchecki today aims to clarify some assertions in this week's report by Zero Hedge about gold available for delivery on the New York Commodities Exchange. Suchecki writes that the operator of the exchange, CME Group, isn't bailing anyone out when gold is reclassified for delivery purposes in gold warehouses. Suchecki's commentary is headlined "A Very Silly Thing to Think about Comex" and it's posted at the Perth Mint's Internet site here: http://research.perthmint.com.au/2015/08/07/a-very-silly-thing-to-think-... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Buy precious metals free of value-added tax throughout Europe Europe Silver Bullion is a fast-growing dealer sourcing its products from renowned mints, refiners, and distributors. Because of a legal loophole that will close soon, you can acquire the world's most popular bullion coins free of value-added tax throughout the European Union. You can collect your order in person at our headquarters in Tallinn, Estonia, or have it delivered in any of the 28 EU countries. Europe Silver Bullion is owned and operated by North American and European experts in selling, storing, and transporting precious metals. We have an extensive product inventory of silver, gold, platinum, and palladium, and our network spans the world. Visit us at www.europesilverbullion.com. Join GATA here: New Orleans Investment Conference http://noic2015.eventbrite.com/?aff=gata The Silver Summit and Resource Expo 2015 http://cambridgehouse.com/event/50/the-silver-summit-and-resource-expo-2... Support GATA by purchasing recordings of the proceedings of the 2014 New Orleans Investment Conference: https://jeffersoncompanies.com/landing/2014-av-powell Or by purchasing DVDs of GATA's London conference in August 2011 or GATA's Dawson City conference in August 2006: http://www.goldrush21.com/order.html Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: |
| Ron Paul: Donald Trump Is Part of the Problem Posted: 08 Aug 2015 11:06 AM PDT Last night's GOP debate was more like a reality TV program than a serious look at the issues. So much posturing. But when candidates did make their points is when it got really alarming. The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries... [[ This is a content summary only. Visit http://www.newsbooze.com or http://www.figanews.com for full links, other content, and more! ]]  |
| Peter Schiff : The Last Thing That Fed Wants is a Rate Hike Posted: 08 Aug 2015 10:56 AM PDT Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse. Visit the new website Schiff On The Markets for exclusive content. Peter Schiff is a well-known commentator... [[ This is a content summary only. Visit http://www.newsbooze.com or http://www.figanews.com for full links, other content, and more! ]]  |
| Peter Boehringer – Bundesbank argues the wrong way round Posted: 08 Aug 2015 09:05 AM PDT “The Matterhorn Interview – Aug 2015: Peter Boehringer”The Bundesbank is arguing completely the wrong way roundShort Video interview (14 minutes): |
| Stocks, Bonds, USD: What Interest Rate Hike? Posted: 08 Aug 2015 06:42 AM PDT The US July jobs report was strong, or at least clearly better than the June report. 215K in NFP, 2.1% average hourly earnings y/y, unemployment rate unchanged at 5.3% and the participation rate also unchanged at 62.6%. The big rally in the US dollar was completely eroded, with EURUSD clawing back all of the 120-pips it lost immediately after the release. The only currencies not to end higher against the USD were CHF (due to renewed SNB jawboning), CAD (disappointing CAD jobs) and GBP and SEK. |
Let me preface this post by saying that I rarely try to base any message in my work on “personal anecdotes”. This attitude is based on two factors. First of all; I don’t lead a particularly interesting life (lol). Secondly, as I often mention here on the Forum, “anecdotal evidence” is one of the weakest forms of evidence, to the point that such anecdotes can often be misleading. I’m making an exception here because what occurred today is no longer “exceptional” in my own life, but rather is becoming something I’m seeing with increasing frequency.
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