Friday, August 31, 2012

Another Financial Crisis Is Coming As One Of The Biggest U.S. Investment Banks Is On The Verge Of Collapse

Jim Willie’s latest Hat Trick Letter, ‘Firestorms & Currency Twisters‘ is a MUST READ!!
Willie states that Morgan Stanley faces IMMINENT FAILURE & RUIN, that The older employees are selling all of their stock, and that Many workers are making contingency plans for their next positions in another firm.

He states that JP Morgan will devour the carcass, and that The Morgue may be preparing to execute the 1st ever private stock account vaporization/ rehypothecation.

AN ABSOLUTE MUST READ!!! 

MORGAN STANLEY IMPLOSION

The insider conversation, often called chatter when it become deafening in tone, is that Morgan Stanley faces imminent failure and ruin. Almost two weeks ago, the Jackass provided a tip to Bill Murphy of GATA to post on his popular LeMetropole Cafe that Morgan Stanley fund managers and high ranking employees were preparing for the firm’s implosion. A subscriber to the Hat Trick Letter has a good friend whose father works as a fund manager and provided the story. It was not detailed, and bore no follow-up after my request. The older employees are selling all of their stock, some legacy stock from one or two decades ago. Many workers are making contingency plans for their next positions in another firm. When Lehman Brothers was killed, thousands of employees had to find new jobs, some without success. In the last week, the shock waves are being heard from internal Wall Street sources in an unequivocal manner. The implosion is in progress, like the collapse of several platforms and structural cables. The inside is caving in, and the ranking members recognize it, even talk about it openly. Much discussion swirls about a transition to antiquated software that is greatly disturbing the trading desks, causing tremendous problems at precisely the wrong time. A redux of the Knight disaster could be in progress.

Some like Rick Wiles of TruNews report that MS is heading for the sacrificial altar. Such an event would imply an expected benefit hoped for and beseeched. My view is in parallel but more of a harmful implosion that cannot be prevented, one that the Wall Street titans will face grand challenges to control, one they will not be able to exploit in the hidden corners where they operate. MS is going to the slaughterhouse, not the altar. Its implosion will result from lost control, and the reversion to antiquated systems will only hasten their demise. Wall Street will wish to exploit the failure, like stealing funds, like destroying documents, like concealing derivative positions, like receiving government slush funds for slimy patch projects, their usual Modus Operandi. In criminal parlance, they will create a black hole into which things vanish. They will attempt to add to the confusion, which might itself backfire and deliver more lethal challenges to the entire USDollar & USTreasury complex. This time, the spotlights will shine more brightly to reveal the activity in the shadows and crevices.

Tuesday, August 21, 2012

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....

You know the euro is in deep water when a doyen of the banking industry, Lord Jacob Rothschild takes a £130 million ($200 million) bet against it.
Okay, but the euro has already been falling dramatically.  In mid-2011, the EUR/USD was above the 1.40 mark, and right now it is at about 1.23.
Does it really have that much more that it can fall?
If the eurozone ends up breaking apart it sure does.
If there is a Greek default, or if Germany leaves the euro, or if a new currency comes along to replace the euro those currently betting against it will end up looking like geniuses.
Another big name in the financial world that is betting against the euro right now is John Paulson.  The following is from a recent Der Spiegel article....
One of these warriors is John Paulson. The hedge fund manager once made billions by betting on a collapse of the American real estate market. Not surprisingly, the financial world sat up and took notice when Paulson, who is now widely despised in America as a crisis profiteer, announced in the spring that he would bet on a collapse of the euro.
And as I noted in my last article, Paulson has also been putting billions of dollars into gold.
So just what are Rothschild and Paulson anticipating?
Could we be on the verge of a massive financial collapse in Europe?
According to the Der Spiegel article mentioned above, a lot of investors seem to be preparing for such a possibility right now....
Banks, companies and investors are preparing themselves for a collapse of the euro. Cross-border bank lending is falling, asset managers are shunning Europe and money is flowing into German real estate and bonds. The euro remains stable against the dollar because America has debt problems too. But unlike the euro, the dollar's structure isn't in doubt.
The financial world is starting to wake up to the fact that the globe is absolutely drowning in debt and it is not really good to be holding fiat currencies when a debt crisis erupts.
When men like John Paulson and George Soros start pouring huge amounts of money into gold, it is time to start becoming alarmed about the state of the global financial system.
The amount of money that these men are investing in gold is staggering....
There was also news last week in an SEC filing that both George Soros and John Paulson had increased their investment in SPDR Gold Trust, the world’s largest publicly traded physical gold exchange traded fund (ETF).
Mr Soros upped his stake in the ETF to 884,400 shares from 319,550 and Mr Paulson bought 4.53m shares, bringing his stake to 21.3m.
At the current price of about $156 a share, these are new investments of about $88m of Mr Soros’ cash and more than $700m from Mr Paulson’s funds. These are significant positions.

Tuesday, August 14, 2012

Bank of America drills open customer safe deposit box and removes contents.

So, you think keeping your valuables and extra cash in a bank safe deposit box is safe? Well, think again.  Bank of America drilled open a customer’s safe deposit box, removed the contents and shipped it to their corporate holding center across the country in South Carolina.
DANVILLE, CA (CBS 5) Carried the story and stated that many consumers often use store valuable possessions in safe deposit boxes assuming it’s secure, but a Danville, California couple found that’s not always the case.
CBS Channel 5 on San Francisco reported that Unsa Kamal and her husband Aizad received a letter from Bank of America informing them their box had been drilled opened and emptied.  The Kamals said they thought it was junk mail; however, after carefully reviewing the letter, the Kamals said the bank “in fact emptied their safe deposit due to lack of information.”
“They claim they didn’t have Social Security numbers, which is not true,” Aizad Kamal said. When they open the account that’s something very basic they ask for and they have that.”  [Read the full story on CBS 5.]

Sunday, August 12, 2012

Economist Richard Duncan: Civilization May Not Survive 'Death Spiral'

Richard Duncan, formerly of the World Bank and chief economist at Blackhorse Asset Mgmt., says America's $16 trillion federal debt has escalated into a "death spiral, "as he told CNBC.

And it could result in a depression so severe that he doesn't "think our civilization could survive it."

And Duncan is not alone in warning that the U.S. economy may go into a "death spiral."

Since the recession, noted economists including Laurence Kotlikoff, a former member of President Reagan's Council of Economic Advisers, have come to similar conclusions.

Kotlikoff estimates the true fiscal gap is $211 trillion when unfunded entitlements like Social Security and Medicare are included.

However, while the debt crisis numbers are well known to most Americans, the economy hasn't suffered a major correction for almost 4 years.

So the questions remain: Is the threat of collapse for real? And if so, when?

A team of scientists, economists, and geopolitical analysts believes they have proof that the threat is indeed real - and the danger imminent.

One member of this team, Chris Martenson, a pathologist and former VP of a Fortune 300 company, explains their findings:

"We found an identical pattern in our debt, total credit market, and money supply that guarantees they're going to fail. This pattern is nearly the same as in any pyramid scheme, one that escalates exponentially fast before it collapses. Governments around the globe are chiefly responsible.



Click here to see how banks are escalating the collapse...
"And what's really disturbing about these findings is that the pattern isn't limited to our economy. We found the same catastrophic pattern in our energy, food, and water systems as well."


According to Martenson: "These systems could all implode at the same time. Food, water, energy, money. Everything."

Another member of this team, Keith Fitz-Gerald, the president of The Fitz-Gerald Group, went on to explain their discoveries.

Saturday, August 11, 2012

It's Open Season on All Customer Funds

RED ALERT: It's Open Season on All Customer Funds

Posted by Ann Barnhardt - August 10, AD 2012 3:33 PM MST


 The NFA is collusion with the Banksters, government and judiciary have achieved their goal. The entire concept of "customer segregated funds" is officially, completely, legally dead.

 Guys, it is OVER. I know that many of you are still cowering in normalcy bias, unable to deal with reality, unable to face the world as it is, but you have GOT to snap out of it. The marketplace is DESTROYED. You CANNOT be in these markets. All legal protections are now officially gone.

 Do you remember how I told you about the Ponzi scheme that imploded in 2007 called "Sentinel Management Group" that stole over $500 million in customer funds? The NFA was the auditing regulator of Sentinel, and the NFA admitted after the Sentinel Ponzi imploded that they signed off on their audits even though the NFA claimed not fully understanding Sentinel's books or accounting methods. In other words, the NFA didn't really audit Sentinel at all - they just PRETENDED to audit them, drew up some forms, had some robosigners sign off, and then just hoped that when the shit hit the fan, everyone in the industry would be so terrified of the NFA that no one would hold the NFA accountable for their criminal malfeasance - or even talk about it.

 Sentinel took customer segregated money and fraudulently used it as the collateral on a loan from Bank of New York Mellon for $312 million to fund their own in-house proprietary trading operations. When the Sentinel Ponzi collapsed, BNYM sued to go to the front of the line of creditors - ahead of the customers of Sentinel whose money was fraudulently used as collateral, which has now been "linguistically sanitized" into the word "hypothecated".

 The federal appeals court ruled yesterday that not only does BNYM stay at the front of the line, but that using customer segregated funds as collateral is NOT a crime, and that co-mingling customer segregated funds with proprietary funds is NOT fraud.

Here is the Reuters piece.

 Read this quote from the ruling, which is, in essence, the entire financial market paradigm being guillotined:

That Sentinel failed to keep client funds properly segregated is not, on its own, sufficient to rule as a matter of law that Sentinel acted ‘with actual intent to hinder, delay, or defraud' its customers.

 U.S. Circuit Judge John D. Tinder

 What this means is that even if Jon Corzine is somehow dragged into court by private citizens, because you know damn good and well that the Justice Department will never, ever touch him, Corzine now has a legal precedent, likely from a bribed or otherwise coerced Federal Appeals Court, explicitly stating that an FCM can use customer deposits to pay its debts, and that the customers themselves are subjugated and have basically no legal right to their own monies, no matter what the law says, or what legal assurances, claims or guarantees are made to that customer about their funds held with an FCM or any other brokerage or depository institution. The "secured" party at the front of the line will always be the mega-bank who made the fraudulent loan using the stolen customer funds as collateral.

 In other words, all customer funds in the United States are now the legal property of JP Morgan, Goldman Sachs, BNYM, or whichever megabank is the counterparty on the loans the FCM or depository institution takes out in order to fund its mega-levered proprietary in-house trading desks.

Saturday, August 4, 2012

Obama Economic Plan Would Explode Debt to $25.4 Trillion

In presidential campaign ads, President Barack Obama claims that his economic plan includes “$4 trillion in deficit reduction.” For a president who has increased the national debt more than all U.S. presidents from George Washington to George H.W. Bush combined, the claim seems incredible. Indeed, it is.

A new analysis of Mr. Obama’s budget reveals the president’s plan would add $10.6 trillion in debt accumulation over the next decade, bringing the U.S. federal debt to a jaw-dropping $25.4 trillion.  
Still, the president and his surrogates continue to claim the Obama plan would cut spending. “The President’s proposals… include a balanced deficit reduction plan that would reduce our deficits by $4 trillion over 10 years,” said White House Press Secretary Jay Carney in June.  
In addition, the Obama budget contains $1.8 trillion in tax increases over the next decade. Specifically, the top marginal tax rate would jump to 39.6 percent, taxes on dividends would skyrocket to 43.4 percent (from 15 percent), and the death tax would leap to 45 percent.
Furthermore, as research from the office of the Ranking Member of the Senate Budget Committee Jeff Sessions (R-AL) reveals, the Obama plan would spend $1.4 trillion above the levels agreed to in last year’s debt deal.
This year marks the fifth straight year in a row that the United States has had a trillion dollar deficit.

Friday, July 27, 2012

55 Percent Of Americans Believe That The Government Will Take Care Of Them If Disaster Strikes

If a major emergency happened in the United States, do you have faith that the government would take care of you?  Amazingly, even after all of the examples to the contrary that we have seen in recent years, a solid majority of all Americans actually believe that the government will be there for them when things hit the fan.  According to a new survey conducted by the Adelphi University Center for Health Innovation, 55 percent of Americans believe that the authorities will come to their rescue when disaster strikes.  Sadly, most Americans still view the government as a “nanny state” that has both the capability and the willingness to take care of them from the cradle to the grave.  Most Americans still have faith that the government will come through for them when they need it the most.  But all we have to do is look back at what happened during the aftermath of Hurricane Katrina to realize what a crock of baloney that is.  Hurricane Katrina was a disaster that was limited to a relatively small geographic area, and yet we all saw how the response of the federal government was a complete and utter failure.  So what is going to happen someday if there is a nationwide disaster that stretches on for months or even years?  Do you really believe that the federal government will be there for you?
How is the federal government going to take care of more than 300 million Americans in the event of a major financial collapse?
How is the federal government going to rescue more than 300 million Americans if a killer pandemic sweeps the nation?
How is the federal government going to make sure that more than 300 million Americans are safe and secure if a cyber attack cripples our power grid or takes down the entire Internet?
How is the federal government going to get food and water to more than 300 million Americans if an EMP blast takes down most of the electronics in this country?
It would be easy to go on and on discussing various nationwide emergency scenarios.  All over the globe the number of earthquakes is increasing, and it would be easy to imagine an absolutely massive earthquake on the west coast or along the New Madrid fault in the middle of the country leaving tens of millions of Americans in need of basic assistance.
What would the federal government do in a situation like that?
Or how would the government handle a full-blown eruption of a major volcano in the Pacific northwest?
If the federal government could not even come close to handling Hurricane Katrina, then how in the world are they going to rescue us from something far worse?
Sadly, most Americans just roll along as if everything is going to be just fine.  Just check out some of the other numbers from the surveymentioned at the top of this article….
-44 percent of all Americans do not have first-aid kits in their homes.
-48 percent of all Americans do not have any emergency supplies stored up.
-53 percent of all Americans do not have a 3 day supply of nonperishable food and water in their homes.
Essentially, what we have got is about half the country that is completely and totally unprepared.
About half the nation is sitting back and relying on the government to make all of the preparations.
Yes, the government is definitely preparing, but those preparations are only going to go so far.
On July 19th, 2012 FEMA posted a solicitation document for packaged meals.  According to that document, the maximum amount of meals that would be provided to FEMA under the contract would be 17.5 million meals.  The following is from the FEMA solicitation document…. MORE AT HEADING LINK ABOVE

Santelli Loses It

Wednesday, July 25, 2012

NSA whistleblowers: Government spying on every single American

The TSA, DHS and countless other security agencies have been established to keep America safe from terrorist attacks in post-9/11 America. How far beyond that does the feds’ reach really go, though?
The attacks September 11, 2001, were instrumental in enabling the US government to establish counterterrorism agencies to prevent future tragedies. Some officials say that they haven’t stopped there, though, and are spying on everyone in America — all in the name of national security.
Testimonies delivered in recent weeks by former employees of the National Security Agency suggest that the US government is granting itself surveillance powers far beyond what most Americans consider the proper role of the federal government.
In an interview broadcast on Current TV’s “Viewpoint” program on Monday, former NSA Technical Director William Binney commented on the government’s policy of blanket surveillance, alongside colleagues Thomas Drake and Kirk Wiebe, the agency's respective former Senior Official and Senior Analyst.
The interview comes on the heels of a series of speeches given by Binney, who has quickly become better known for his whistleblowing than his work with the NSA. In their latest appearance this week, though, the three former staffers suggested that America’s spy program is much more dangerous than it seems.

In an interview with “Viewpoint” host Eliot Spitzer, Drake said there was a “key decision made shortly after 9/11, which began to rapidly turn the United States of America into the equivalent of a foreign nation for dragnet blanket electronic surveillance.”
These powers have previously defended by claims of national security necessity, but Drake says that it doesn’t stop there. He warns that the government is giving itself the power to gather intel on every American that could be used in future prosecutions unrelated to terrorism.
“When you open up the Pandora’s Box of just getting access to incredible amounts of data, for people that have no reason to be put under suspicion, no reason to have done anything wrong, and just collect all that for potential future use or even current use, it opens up a real danger — and to what else what they could use that data for, particularly when it’s all being hidden behind the mantle of national security,” Drake said..


MORE AT HEADING ABOVE 

TSA Expands Invasion To CA Train Stations & Bus Terminals

Tuesday, July 24, 2012

Too Big To Fail – Fed Proposal Allows Banks To Seize Your Money

The New York Fed has introduced a framework to give banks the right to suspend account withdrawals at will to defend against financial panic.

The shadow central planners have proposed new contingency plans to prevent the Great Depression style bank runs that are hitting Europe from spreading to America.
Their solution is the creation of a framework that consists of “capital controls” which allow financial institutions that find themselves in hot water to limit or outright suspend customer account withdrawals.
Our beloved regulators seem not to care the slightest that these institutions put themselves in hot water in the first place by taking up certain financial positions that put their customers’ money and the global financial system at risk.
Instead the message is clear – Our banks are too big to fail and if they need to seize their customers deposits to prevent them from failing then we must allow it.
From The Daily Sheeple:

Sorry, Your Money Is Now Frozen. Bank Runs Have Become Illegal.

As the financial crisis takes its toll and any number of events threaten to completely collapse an already fragile global banking system, the Federal Reserve has stepped in with a stop-gap measure to prevent liquidity from being drained out of money market funds in the event of a panic.
What this means is that at exactly the moment when Americans need money, in the midst of a massive financial panic, access to funds will be limited or altogether restricted.
Basically, according to the Fed, the minimum balance would make the financial system more fair, reduce systemic risk and protect smaller investors who can be left with losses if larger investors in their fund withdraw cash first. The proposal would require a “small fraction” of each fund investor’s recent balances to be segregated into a sinking fund to absorb losses if the fund is liquidated. Subsequently redemptions of these minimum balances at risk would be delayed for 30 days, “creating a disincentive to redeem if the fund is likely to have losses.” In other words: socialized losses. Where have we seen this before?
But the real definition of what the Fed is suggesting is: capital controls. Once this proposal is implemented, the Fed, or some other regulator, will effectively have full control over how much money market cash is withdrawable from the system at any given moment. At $2.7 trillion in total, one can see why the Fed is suddenly concerned about this critical liquidity and capital buffer.

A key proposal in the overhaul of money market regulation suggests that money market fund managers will have the option to “suspend redemptions to allow for the orderly liquidation of fund assets.” You read that right: this does not refer to the charter of procyclical, leveraged, risk-ridden, transsexual (allegedly) portfolio manager-infested hedge funds like SAC, Citadel, Glenview or even Bridgewater (which in light of ADIA’s latest batch of problems, may well be wishing this was in fact the case), but the heart of heretofore assumed safest and most liquid of investment options: Money Market funds, which account for nearly 40% of all investment company assets. The next time there is a market crash, and you try to withdraw what you thought was “absolutely” safe money, a back office person will get back to you saying, “Sorry – your money is now frozen. Bank runs have become illegal.
Via: Zero Hedge
Even though there could never possibly be 1929 style market panic or bank runs like we’ve seen throughout history, we strongly recommend considering the acquisition and stockpiling of alternative trade instruments.
Source: The Daily Sheeple

The coming economic collapse

The U.S. economy is teetering on the brink of another recession. The bad news is that if it goes down again, there won’t be much we can do to save ourselves. Like a weary heavyweight, if it hits the mat again, it’s down for good.
The expansion has been terribly disappointing—growth is hardly 2 percent and jobs creation barely keeps unemployment steady at 8.2.
Manufacturing and exports powered the recovery but are now weakening. Consumer spending and existing home sales are flagging, because policymakers failed to aid underwater homeowners as generously as the banks.
President Obama is doubling down on slow growth policies—new restrictions on offshore oil and CO2 emissions, and pushing forward with financial regulations that haven’t stopped Wall Street banks from trading recklessly and rigging markets as indicated by the Libor scandal.
Governor Romney has reverted to shop-worn Republican prescriptions—tax cuts, free trade and deregulation.
With the federal government spending 50 percent more than it takes in, no sane economist could endorse big rate cuts, beyond renewing the Bush tax cuts.
China, by manipulating its currency and shutting out western products, helped cause the Great Recession and is now constraining recovery in the United States and Europe. More free trade agreements won’t fix that.
[pullquote]
Dodd-Frank may be bureaucratic and ineffective but no sane person could claim banks can regulate themselves—smarter solutions, like breaking up unmanageable and unsuperviserable institutions, is needed.
Many analysts ask if another big innovation—like the automobile or computer-- is coming and could save the economy. The problems are many new products are creating more jobs in Asia than in the West, and many technology companies are consolidating or facing extinction—consider the smart phone, Hewlett Packard and Yahoo.
A lot of US innovation is starting to look more like French art than American commerce. Icons like Yahoo, Facebook and Twitter have made great contributions to the economy and culture but simply don’t have business models that generate enough revenue and sustainable jobs growth.
Google has succeeded by cannibalizing newspapers—the net effect has been to destroy more—and branching into software and media—which merely displaces workers elsewhere.

Meanwhile, the profitable core of finance—investment banking—is shrinking. Burdensome regulations are a problem, but many clients—ranging from municipalities to wealth managers to foreign governments burnt by Wall Street schemes and securities—are now less interested in what the likes of Goldman Sachs and JP Morgan have to sell.
To save European governments, several trillion dollars in sovereign debt must be written down. Beyond lacking a plan to equitably distribute the loss, Germany and other stronger states have not come to terms with the fact that market reforms are not enough. They cannot continue to pursue export-oriented growth strategies and trade surpluses if southern Europe is to create jobs and grow without running up trillions in new debt.
China holds the West and its own future hostage—export-driven growth runs to ground when customers can no longer finance their purchases and trade deficits. Borrowing and printing money in the United States and Europe on the scale necessary to keep the Middle Kingdom producing and exporting is no loner possible.


MORE AT HEADING ABOVE

Monday, July 23, 2012

Workers At Fukushima Were Reportedly Told To Lie About Radiation Exposure

A Tokyo Electric Power Co. (TEPCO) subcontractor forced nine workers at the Fukushima Daiichi nuclear power plant to cover their radiation-monitoring meters with lead plates so they would stay under a safety threshold for exposure, Kyodo News reports.
An executive at the firm Build-Up told workers, hired to insulate pipes at a water treatment facility, to cover their dosimeters – used to measure cumulative radiation exposure – when working in high radiation areas.
"Unless we hide it with lead, exposure will max out and we cannot work," the executive was said in a recording reported by Japanese media.
In Japan the legally permissible annual exposure is 50 millisieverts for nuclear plant workers during normal operations.
The massive earthquake and tsunami on March 11, 2011, led to a breach of containment structures  at the Fukushima plant that released a lot of radiation, keeping large areas around the plant off limits for more than a year later.
CNN reports that a government report released Monday criticized TEPCO, the Fukushima plant operator, for having "insufficient" preparations and an "inadequate" response to the crisis.
The 10-member panel wrote that interference by then-prime minister Naoto Kan created confusion in the response to the crisis and that TEPCO still doesn't seem aggressive enough in examining the causes of the accident so that it can prevent a recurrence.


The investigation followed another damning government report, this one from Japanese parliament, which stated that the crisis was a "man-made disaster" resulting from "collusion between the government, the regulators and TEPCO, and the lack of governance by said parties."
Geoff Brumfiel writes in the journal Nature that "it is remarkable how little we still know" about the the impact of the radiation exposure following the worst nuclear disaster since Chernobyl in 1986. Brumfiel notes that scientists have not reached a consensus on how much radioactivity the plant released, who was exposed and when, or the effects of different levels of radiation exposure on the human body.

FROM BUSINESS INSIDER