Monday, August 20, 2012

Are The Government And The Big Banks Quietly Preparing For An Imminent Financial Collapse?

Are The Government And The Big Banks Quietly Preparing For An Imminent Financial Collapse?

Something really strange appears to be happening.  All over the globe, governments and big banks are acting as if they are anticipating an imminent financial collapse.  Unfortunately, we are not privy to the quiet conversations that are taking place in corporate boardrooms and in the halls of power in places such as Washington D.C. and London, so all we can do is try to make sense of all the clues that are all around us.  Of course it is completely possible to misinterpret these clues, but sticking our heads in the sand is not going to do any good either.  Last week, it was revealed that the U.S. government has been secretly directing five of the biggest banks in America "to develop plans for staving off collapse" for the last two years.  By itself, that wouldn't be that big of a deal.  But when you add that piece to the dozens of other clues of imminent financial collapse, a very troubling picture begins to emerge.  Over the past 12 months, hundreds of banking executives have been resigning, corporate insiders have been selling off enormous amounts of stock, and I have been personally told that a significant number of Wall Street bankers have been shopping for "prepper properties" in rural communities this summer.  Meanwhile, there have been reports that the U.S. government has been stockpiling food and ammunition, and Barack Obama has been signing a whole bunch of executive orders that would potentially be implemented in the event of a major meltdown of society.  So what does all of this mean?  It could mean something or it could mean nothing.  What we do know is that a financial collapse is coming at some point.  Over the past 40 years, the total amount of all debt in the United States has grown from about 2 trillion dollars to nearly 55 trillion dollars.  That is a recipe for financial armageddon, and it is inevitable that this gigantic bubble of debt is going to burst at some point.
In normal times, the U.S. government does not tell major banks to "develop plans for staving off collapse".
But according to a recent Reuters article, that is apparently exactly what has been happening....

22 Stats That Show How The Emerging One World Economy Is Absolutely Killing American Workers

22 Stats That Show How The Emerging One World Economy Is Absolutely Killing American Workers

For decades our politicians have promised us that the "free trade" agenda would bring us greater prosperity than ever before.  They insisted that merging our economy into the emerging one world economy would cause millions upon millions of new jobs to be added to the U.S. economy.  Unfortunately, it was all a giant lie.  Trading with other countries is not a bad thing as long as the level of trade is fairly equal on both sides.  When trade becomes very unequal, the consequences can be absolutely catastrophic.  Since 1975, the United States has bought more than 8 trillion dollars more stuff from the rest of the world than they have bought from us.  We are the only economy on earth that could have had 8 trillion dollars drained out of it and still be standing.  Instead of leaving the country, those 8 trillion dollars could have gone to U.S. businesses and U.S. workers.  If we could go back and have a "do over", how much more prosperous would we be today if we had kept that 8 trillion dollars inside the country?
But instead of pursuing a balanced trade philosophy, our politicians were so enamored with the emerging one world economy that they threw all caution to the wind.
So we have lost tens of thousands of businesses, millions of jobs and trillions of dollars of our national wealth.

Startling Evidence That Central Banks And Wall Street Insiders Are Rapidly Preparing For Something BIG

Startling Evidence That Central Banks And Wall Street Insiders Are Rapidly Preparing For Something BIG

If you want to figure out what is going to happen next in the financial markets, carefully watch what the insiders are doing.  Those that are "connected" have access to far better sources of information than the rest of us have, and if they hear that something big is coming up they will often make very significant moves with their money in anticipation of what is about to happen.  Right now, Wall Street insiders and central banks all around the globe are making some very unusual moves.  In fact, they appear to be rapidly preparing for something really big.  So exactly what are they up to?  In a previous article entitled "Are The Government And The Big Banks Quietly Preparing For An Imminent Financial Collapse?", I speculated that they may be preparing for a financial meltdown of some sort.  As I noted in that article, more than 600 banking executives have resigned from their positions over the past 12 months, and I have been personally told that a substantial number of Wall Street bankers have been shopping for "prepper properties" this summer.  But now even more evidence has emerged that quiet preparations are being made for an imminent financial collapse.  That doesn't guarantee that something will happen or won't happen.  Like any good detective, we are gathering clues and trying to figure out what the evidence is telling us.

Jacob Rothschild, John Paulson And George Soros Are All Betting That Financial Disaster Is Coming

Jacob Rothschild, John Paulson And George Soros Are All Betting That Financial Disaster Is Coming

Are you willing to bet against three of the wealthiest men in the entire world?  Jacob Rothschild recently bet approximately 200 million dollars that the euro will go down.  Billionaire hedge fund manager John Paulson made somewhere around 20 billion dollars betting against the U.S. housing market during the last financial crisis, and now he has made huge bets that the euro will go down and that the price of gold will go up.  And as I wrote about in my last article, George Soros put approximately 130 million more dollars into gold last quarter.  So will the euro plummet like a rock?  Will the price of gold absolutely soar?  Well, if a massive financial disaster does occur both of those two things are likely to happen.  The European economy is becoming more unstable with each passing day, and investors all over the globe are looking for safe places to put their money.  The mainstream media keeps telling us that everything is going to be okay, but the global elite are sending us a much, much different message by their actions.  Certainly Rothschild, Paulson and Soros know about things happening in the financial world that the rest of us don't.  The fact that they are all behaving in a consistent manner right now should be alarming for all of us.
Let's start with Jacob Rothschild.  Apparently he believes that the euro is headed for quite a tumble.  The following is from a recent CNBC article....

Industry Is an Effort Followed by a Result


We have just seen that between our wants and the satisfaction of these wants, obstacles are interposed. We succeed in overcoming these obstacles, or in diminishing their force, by the employment of our faculties. We may say, in a general way, that industry is an effort followed by a result.
But what constitutes the measure of our prosperity, or of our wealth? Is it the result of the effort? Or is it the effort itself? A relation always subsists between the effort employed and the result obtained. Progress consists in the relative enhancement of the second or of the first term of this relation.
Both theses have been maintained; and in political economy they have divided the region of opinion and of thought.
According to the first system, wealth is the result of labor, increasing as the relative proportion of result to effort increases. Absolute perfection, of which God is the type, consists in the infinite distance interposed between the two terms — in this sense, effort is nil, result infinite.
The second system teaches that it is the effort itself that constitutes the measure of wealth. To make progress is to increase the relative proportion which effort bears to result. The ideal of this system may be found in the sterile and eternal efforts of Sisyphus.[1]
The first system naturally welcomes everything which tends to diminish pains and augment products; powerful machinery that increases the forces of man, exchange that allows him to derive greater advantage from natural resources distributed in various proportions over the face of the earth, intelligence that discovers, experience that proves, competition that stimulates, etc.

How Prices Are Determined


There was once a Russian school child whose cat had a family of kittens. When asked to write a paper for her class, the child wrote about the mother cat and the kittens. The next day she read her paper to the class. In it she told about how these kittens were born. There were five of them and they were all good little Communists. The teacher liked the paper, and when, a week later, one of the Moscow inspectors visited the school, the teacher, proud of her pupil, asked the child to read it again. The child read the paper. When she came to the part about the kittens she said there were five kittens and two of them were Communists. The teacher was quite surprised. The child had previously said all five were Communists; so the teacher asked the child why she had changed it. "Well," the little girl said, "three of them have opened their eyes."
One of the things we are trying to do in these lectures presented by the Centro de Estudios sobre la Libertad is to open the eyes of people who have heard so much about the promises of socialists and government interventionists to use political power to improve the economic situation of the poor, the sick, the young, the aged, and all others with whom they seek popularity. Actually, the only way for governments to improve the economic condition of their citizens is to provide equal protection of life, property, and the marketplace for everyone, while peacefully adjudicating disputes which might otherwise lead to frictions and infractions of the peace. Using the force of government to take from some to provide special privileges for favored groups will never improve the general welfare. Governments that play favorites sow the seeds of their own destruction and reduce the production of both the poor and the rich.
For each of us, life is a problem of how to use our limited means to produce more of the things that provide us and our loved ones with the greatest possible satisfaction. We daily strive to satisfy our most important wants before we try to satisfy those we consider less important. In short, we constantly seek to improve our situation by exchanging something we have for something we prefer. The prime function of government is to provide an atmosphere in which more and more mutually beneficial exchanges can take place.

Hyperinflation Is Not Inevitable (Default Is)


Hyperinflation is always a possibility for any national government or central bank. If a national government is running massive deficits, it can call on the central bank to buy treasury bills or treasury bonds with newly created money. This digital money is transferred to the treasury, which then spends the money into circulation.
There have been cases of hyperinflation in the past that have become legendary. The most famous of all of these hyperinflations is Germany from 1921 through 1923. Simultaneous with that hyperinflation was a hyperinflation in Austria. These were not the worst cases of hyperinflation in history, but they were the worst cases in industrial societies. The worst case was Hungary for two years immediately after World War II. The second-worst case took place a few years ago in Zimbabwe. Both were agricultural nations.
No other nations in western Europe have ever experienced anything like the hyperinflations of Germany and Austria in the early 1920s. Their currency systems were completely destroyed. Farmers were able to pay off debts that had been accumulated prior to World War I by selling one egg and handing the money over to the creditor. This of course destroyed the creditors. It is generally believed that the middle class in both Germany and Austria suffered enormous losses. They had been creditors.

Theories on where money comes from

Free exchange

On the origin of specie

Theories on where money comes from say something about where the dollar and euro will go

MONEY is perhaps the most basic building-block in economics. It helps states collect taxes to fund public goods. It allows producers to specialise and reap gains from trade. It is clear what it does, but its origins are a mystery. Some argue that money has its roots in the power of the state. Others claim the origin of money is a purely private matter: it would exist even if governments did not. This debate is long-running but it informs some of the most pressing monetary questions of today.
Money fulfils three main functions. First, it must be a medium of exchange, easily traded for goods and services. Second, it must be a store of value, so that it can be saved and used for consumption in the future. Third, it must be a unit of account, a useful measuring-stick. Lots of things can do these jobs. Tea, salt and cattle have all been used as money. In Britain’s prisons, inmates currently favour shower-gel capsules or rosary beads.

Romney and Ryan Turn the Tables on Obama

By Michael Barone

Mitt Romney's selection of Paul Ryan was supposed to be a problem for the Republicans. So said a chorus of chortling Democrats. So said a gaggle of anonymous seasoned Republican operatives. All of which was echoed gleefully by mainstream media.
The problem, these purveyors of the conventional wisdom all said, was Medicare -- to be more specific, the future changes in Medicare set out in the budget resolutions Ryan fashioned as House Budget Committee chairman and persuaded almost all House and Senate Republicans to vote for.

Financial Markets, Politics and the New Reality

By George Friedman

Louis M. Bacon is the head of Moore Capital Management, one of the largest and most influential hedge funds in the world. Last week, he announced that he was returning one quarter of his largest fund, about $2 billion, to his investors. The reason he gave to The New York Times was that he had found it difficult to invest given the impossibility of predicting the European situation. He was quoted as saying, "The political involvement is so extreme -- we have not seen this since the postwar era. What they are doing is trying to thwart natural market outcomes. It is amazing how important the decision-making of one person, Angela Merkel, has become to world markets."
The purpose of hedge funds is to make money, and what Bacon essentially said was that it is impossible to make money when there is heavy political involvement, because political involvement introduces unpredictability in the market. Therefore, prudent investment becomes impossible. Hedge funds have become critical to global capital allocation because their actions influence other important actors, and their unwillingness to invest and trade has significant implications for capital availability. If others follow Moore Capital's lead, as they will, there will be greater difficulty in raising the capital needed to address the problem of Europe.

Niall Ferguson: Obama’s Gotta Go

Niall Ferguson: Obama’s Gotta Go

Why does Paul Ryan scare the president so much? Because Obama has broken his promises, and it’s clear that the GOP ticket’s path to prosperity is our only hope.

I was a good loser four years ago. “In the grand scheme of history,” I wrote the day after Barack Obama’s election as president, “four decades is not an especially long time. Yet in that brief period America has gone from the assassination of Martin Luther King Jr. to the apotheosis of Barack Obama. You would not be human if you failed to acknowledge this as a cause for great rejoicing.”
Despite having been—full disclosure—an adviser to John McCain, I acknowledged his opponent’s remarkable qualities: his soaring oratory, his cool, hard-to-ruffle temperament, and his near faultless campaign organization.
Yet the question confronting the country nearly four years later is not who was the better candidate four years ago. It is whether the winner has delivered on his promises. And the sad truth is that he has not.
In his inaugural address, Obama promised “not only to create new jobs, but to lay a new foundation for growth.” He promised to “build the roads and bridges, the electric grids, and digital lines that feed our commerce and bind us together.” He promised to “restore science to its rightful place and wield technology’s wonders to raise health care’s quality and lower its cost.” And he promised to “transform our schools and colleges and universities to meet the demands of a new age.” Unfortunately the president’s scorecard on every single one of those bold pledges is pitiful.

Election 2012: A Candidate With Economic Heft, Paul Ryan is No Sarah Palin

Election 2012: A Candidate With Economic Heft, Paul Ryan is No Sarah Palin

Win or lose, the most recent vice-presidential choices never mattered much when it came to the economy.

From Joe Biden to Sarah Palin to John Edwards, none of them were ever known for their grasp of economic policy.

But Paul Ryan is different.

His selection as vice presidential nominee last weekend has significant implications for the economy if the Republican ticket wins Election 2012.

Jim Rogers: It's Going To Get Really "Bad After The Next Election"

Jim Rogers: It's Going To Get Really "Bad After The Next Election"

By Terry Weiss

In a riveting interview on CNBC, legendary investor Jim Rogers warned Americans to prepare for "Financial Armageddon," saying he fully expects the economy to implode after the U.S. election.

Rogers, who for years has been an outspoken critic of the Feds policies of "Quantitative Easing," says the world is "drowning in too much debt." He put the blame squarely on U.S. and European governments for abusing their "license to print money." In the U.S. alone, the national debt has surged to nearly $16 trillion, that's more than $50,000 for every American man, woman and child.

"[They] need to stop spending money they don't have," Rogers said. "The solution to too much debt is not more debt... What would make me very excited is if a few people [in the government] went bankrupt..." Rogers added.

Obama campaign showing signs of fear and diasarray

Obama campaign showing signs of fear and diasarray

Abby W. Schachter
 Fear of Mitt Romney's crowd sizes and much better fundraising the Obama campaign is showing the strain.
Vice President Joe Biden's comments in Virginia today reinforce the new normal for Obama's running-on-empty campaign: There's nothing good to say about the administration's record over the past four years, so there's nothing to say at all.
Instead of making the case for why Obama and Biden should get another four years, the Vice President is making up one slur after another.
Yesterday it was taking a shot at Paul Ryan by invoking Ryan's dead father .
Today, Biden went one worse by claiming that Republican Mitt Romney wants to "put y'all back in chains" when he supposedly allows "the big banks once again write their own rules–unchain Wall Street," Biden declared in Danville, Va.
Obama deputy campaign manager Stephanie Cutter doubled-down on Biden's remarks denying there was anything the matter with his comments.
As for the President himself, he's back criticizing Romney over Romney's dog Seamus .
Is this really the same team that brought us the oh-so-disciplined and focused effort of four years ago?

The ‘new normal’ excuse

Just an economy that used to grow?

Even a talker as talented as President Obama can’t do the impossible: Persuade Americans that the three-year-old economic “recovery” is anything other than pathetic.
Growth is sinking back toward the recession red zone and unemployment’s firmly stuck at over 8 percent for 42 straight months.
It’s no wonder a new Gallup poll finds 75 percent of us “dissatisfied” with the direction of the country. Or that a CNN survey finds that twice as many Americans (39 percent) think the economy is still mired in recession than think it recovering (19 percent).
So Obama isn’t even trying to make the “Morning in America” case for his re-election. He now concedes that “the economy isn’t where it needs to be” and that “we have a lot more work to do.” But he’s quick to add that the Not-So-Great Recovery isn’t his fault, saying: “Throughout history, it has typically taken countries up to 10 years to recover from financial crises of this magnitude.”
Falling far short: President Obama’s team promised that his stimulus would bring unemployment down to 5.6 percent in 2012.
AFP/Getty Images
Falling far short: President Obama’s team promised that his stimulus would bring unemployment down to 5.6 percent in 2012.

Top Republicans back away from Rep. Akin

By Paige Winfield Cunningham

Top Republicans on Monday backed away from their own Senate candidate in Missouri after his recent comments on rape and abortion, with the GOP’s top Senate recruiter giving him a day to sort the situation out, but Rep. W. Todd Akin showed no indication he was ready to give in.
Congressman Akin’s statements were wrong, offensive and indefensible,” Texas Sen. John Cornyn, head of the National Republican Senatorial Committee, said Monday. “I recognize that this is a difficult time for him, but over the next twenty-four hours, Congressman Akin should carefully consider what is best for him, his family, the Republican Party, and the values that he cares about and has fought for throughout his career in public service.”

DIAZ: Democrats continue to beat up Christians

Homosexual agenda on national display

Inch by inch, the Democratic Party continues to ostracize Christians. Its latest attack consists of forcing any Christian who would like to support the Democratic National Committee’s (DNC) platform to betray his deeply held religious beliefs on the issue of marriage.
Back in May, when President Obama personally came out in support of same-sex “marriage,” I spoke to a group of pastors in Maryland, all of them serving minority communities. The vast majority of those pastors were lifelong Democrats, so they were very concerned. The one thing that gave them hope was that the president had gone out of his way to make sure everyone knew that his support reflected merely his personal beliefs.

PICKET: Allen West condemns Akin's remarks about rape

ByKerry Picket -

Last week my opponent put out a tv ad depicting me beating women. That ad is disgraceful and despicable. As a husband and father of two daughters, I found Congressman Todd Akin’s comments about rape to be in the same vein. These comments are simply unacceptable. There is no place in politics for these type of comments and attitudes toward women.

WOLF: Barack Obama: The welfare king

Food-stamp presidentmotivated by control

“They’ll turn us all into beggars ‘cause they’re easier to please.” So goes a Rainmakers song. Beggars also are easier to control. Just ask the drug dealer. It is not compassion that motivates him to give away the first hits of heroin for free; it is the promise of control.
President Obama wants to give you free stuff. Lots and lots of free stuff. At least, he’d like you to believe it’s free. Free health care. Free welfare checks. Free food stamps. But as the saying goes, free stuff or freedom: Choose one.
As any teenager knows, you don’t escape mom and dad’s rules until you pay your own bills. Some say our overbearing government is similarly paternalistic, which is insulting enough but simply untrue. Good parents prepare their children for independence, whereas Mr. Obama wants to increase Americans’ dependence on his government.

Romney: ‘I will not raise taxes on the American people’

By Seth McLaughlin

GOFFSTOWN, N.H. — Republican presidential candidate Mitt Romney and Rep. Paul Ryan, his running mate, joined forces here Monday on the campus of St. Anselm College, chastising President Obama for running a negative campaign and pushing back against the Democrat’s claim that they will raise taxes on middle-class families to help cover the cost of tax cuts for the wealthy.
“It seems the first victim of an Obama campaign is truth — it has been sad and disappointing,” Mr. Romney said, alluding to Mr. Obama’s charge that Mr. Romney’s plan to cut tax rates would shift more of the tax burden from the rich to lower-income earners. “Let me tell you the heart of my tax proposal: I will not raise taxes on the American people; I will not raise taxes on middle-income Americans.”

Obama: Nobody accused Romney of being a felon

Attacks on rival are fair game, president says

President Obama refused to accept responsibility Monday for the actions of campaign surrogates who suggested Republican Mitt Romney committed a felony and that he contributed to the death of a woman who succumbed to cancer.
“We point out sharp differences between the candidates, but we don’t go out of bounds,” Mr. Obama told reporters at the White House. “When you look at the campaign we’re running, we are focused on the issues and the differences that matter to working families all across America.”
In his first news conference in more than two months, the president tried to remain above the fray of a campaign that has turned increasingly ugly. He did so by ignoring the details of one of his campaign’s attacks on Mr. Romney, and by claiming no connection to another one directed by his former deputy White House spokesman.

E-Book: Drama, Disarray, Infighting in Obama Campaign

A new e-book, Obama’s Last Stand, reveals details about the disarray in President Barack Obama’s reelection campaign and Obama’s thin-skinned narcissism that, according to the mainstream media’s own standards, should disqualify Obama from being elected again. 

When then-candidate Obama was running for president in 2008, Obama and his campaign tried to put to rest doubts about his lack of executive and private sector experience by making the argument that Obama was the CEO of his campaign.

How Obama--and the Media--Lost Egypt, Part 2

So now Mohamed Morsi, the new Islamist president of Egypt, announces that later this month he will visit Iran. And the response is near silence from Washington officialdom, on both sides of the aisle. The Beltway-minded National Journal published no fewer than ten stories summing up this Sunday’s talk shows; it deemed that the big topics were taxes--Mitt Romney’s and ours--Medicare, and Joe Biden’s silly comments. The word “Egypt” failed to appear once in any of the ten pieces.   

FLASHBACK -- Obama Campaign: Romney Committed A Felony Or Liar

Obama Press Briefing Lie: 'Nobody Accused Romney Of Being A Felon'

Today, during his impromptu press briefing featuring lie after lie, President Obama told a whopper with regard to his campaign and Mitt Romney. “Nobody accused Mr. Romney of being a felon,” said the delusional commander-in-chief. He added, “we point out sharp differences between the candidates, but we don’t go out of bounds.”

Republicans Pulling Plug On Missouri Sen. Candidate Akin After Rape Remarks

After making inexplicable comments about how “the female body has ways to shut that whole thing down” in regard to rapes that he considered were not “legitimate,” Republican Missouri Senate nominee Rep. Todd Akin went on Mike Huckabee’s (Huckabee endorsed Akin in the primary) and Sean Hannity’s radio shows and apologized for his comments on Monday.
But even though Akin has not withdrawn from the race, he is facing mounting pressure to do so before Tuesday's 5 p.m. deadline. 

Huge Ohio Crowds Greet GOP Wunderkind Running In Nation's Most Critical Senate Race

Huge Ohio Crowds Greet GOP Wunderkind Running In Nation's Most Critical Senate Race

This picture is the Obama Campaign's worst nightmare.  

This photo sends chills up Harry Reid's spine.
This photo could shift the tide of voter demographics in the critical wowing state of Ohio for the next decade.
This is the crowd that turned up for US Senate candidate Josh Mandel who is running to defeat Obama stalwart Sherrod Brown.  Mr. Mandel, Iraq War veteran and Ohio State Treasurer, was set to introduce Mitt Romney in Chillicothe. Over 5,000 filled the center of the south central Ohio town and greeted Mandel with a rousing Buckeye embrace.

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