Geopolitical and economic warnings

Senior analysts and traders warned of impending bank failures as a summit intended to solve the European crisis failed to deliver a solution that eased concerns over bank funding.nThe European Central Bank admitted it had held meetings about providing emergency funding to the region's struggling banks, however City figures said a "collateral crunch" was looming."If anyone thinks things are getting better then they simply don't understand how severe the problems are. I think a major bank could fail within weeks," said one London-based executive at a major global bank. Many banks, including some French, Italian and Spanish lenders, have already run out of many of the acceptable forms of collateral such as US Treasuries and other liquid securities used to finance short-term loans and have been forced to resort to lending out their gold reserves to maintain access to dollar funding.

"The system is creaking. There is a large amount of stress," said Anthony Peters, a strategist at Swissinvest, pointing to soaring interbank lending rates.

Read more at link http://www.telegraph.co.uk/finance/financialcrisis/8947470/Eurozone-banking-system-on-the-edge-of-collapse.html

Monetary Fund to put help to the upheaval-stirred Arab countries before help to the Eurozone. Director General Jassim al-Mannai spoke about this for the media in Abu Dhabi on Sunday. He said AMF help to the Eurozone would have to be limited to loans to individual countries in it.

Dec. 8 - Marc Faber, publisher of the Gloom, Boom and Doom Report, says there will be a global market collapse and the entire derivatives market will one day cease to exist. he coming storm: According to the website Bankorrealestate.com, the four largest U.S. banks are in much worse shape than even their European counterparts. J.P Morgan Chase is believed to be carrying as much as $78 trillion dollars in derivative debt, Citibank is said to have $56 trillion, Bank of America is said to have $53 trillion and Goldman Sachs is believed to have $48 trillion. According to BOR’s report, U.S. banks are over-leveraged by debt-to-asset ratio somewhere around the tune of 50:1. It might be worth mentioning that the GDP of the entire world for one year is only $100 trillion and the largest U.S. bank is almost carrying that much is debt exposure. Meaning banks have almost no real money in them, only IOU’s and enough government-printed cash to keep the fiat pyramid scheme going for yet a little while longer until the whole system is so over-stressed with debt that it eventually crashes. – See BOR

December 11, 2011 – LONDON – The Telegraph sounded alarm bells late Friday that the Eurozone banking system is on the edge of collapse. Specifically, the problem is related to a lack of acceptable collateral, or ‘collateral crunch’, for overnight and other short-term bank funding (emphasis added): Senior analysts and traders warned of impending bank failures as a summit intended to solve the European crisis failed to deliver a solution that eased concerns over bank funding. The European Central Bank admitted it had held meetings about providing emergency funding to the region’s struggling banks, however City figures said a ‘collateral crunch’ was looming. “If anyone thinks things are getting better then they simply don’t understand how severe the problems are. I think a major bank could fail within weeks,” said one London-based executive at a major global bank. Many banks, including some French, Italian and Spanish lenders, have already run out of many of the acceptable forms of collateral such as U.S. Treasuries and other liquid securities used to finance short-term loans and have been forced to resort to lending out their gold reserves to maintain access to dollar funding. Izabella Kaminska at FT Alphaville wrote about this story early and has covered it well. She wrote that the problem is becoming so acute that even the Bundesbank is running out of money. While policy is decided centrally, actual enforcement and implementation of that policy is conducted on a national central bank (NCB) level. Generally speaking, the system ensures that all NCBs carrying surpluses channel them over to NCBs carrying deficits. The problem is that since the crisis unfolded, the number of NCBs handling deficits has started to outnumber the number of NCBs holding surpluses. One particular NCB — the Bundesbank — has become a sort of lender of last resort for the whole Eurobanking system. –Seeking Alpha emphasis italicized or added
http://seekingalpha.com/article/313085-is-the-eurozone-banking-system-about-to-collapse

The wider the spread between Libor and the secured (repo) rate, the greater the general distress in the market. The following chart reveals just how good an indicator of general market stress it is:
While soaring Libor rates were a key indicator of market stress during the credit crunch, the best indicator of collateral crunch intensity is instead the repo rate. The lower the rate, the greater the crunch.

Read more at link http://seekingalpha.com/article/313085-is-the-eurozone-banking-system-about-to-collapse

RIGA, Latvia - Latvia's largest bank scrambled Monday to head off a run among depositors who were gripped by rumours of the bank's imminent ruin.
Weekend rumours that Swedbank was facing legal and liquidity problems in Estonia and Sweden sent thousands of Latvians to bank machines on Sunday, with some lines reaching as many as 50 people. Latvians are particularly sensitive to speculation about banks' health. Latvijas Krajbanka, the country's 10th largest bank, was nationalized last month after regulators discovered evidence of massive fraud allegedly carried out by the bank's former owner, Russian businessman Vladimir Antonov. Depositors were deprived of access to their funds for days. And three years ago the country's second largest bank, Parex Bank, entered technical default and had to be taken over by the government, which in turn forced Latvia to appeal to international creditors and the European Union for a €7.5 billion ($10.5 billion) bailout.
Read more at link above.

The day Europe lost patience with Britain... http://www.reuters.com/article/2011/12/11/us-eurozone-britain-idUSTRE7BA0BD20111211?feedType=RSS&feedName=topNews&rpc=22&sp=true
BRUSSELS | Sun Dec 11, 2011- (Reuters) - It was billed as a summit to save the euro. It may be remembered as the day Europe lost patience with Britain, as most of the continent threw its lot in with EU founding members France and Germany and committed to binding their economies ever more tightly.

Euro zone fiscal pact fails to restore confidence...


Stocks Slide on Debt Doubts... http://www.cnbc.com/id/45639270
A fresh round of concern over European debt combined with some downbeat news out of the technology sector to send U.S. stocks sharply lower Monday. Friday's European Union summit produced an agreement to pursue stricter budget rules for the single currency area and also to have euro zone states and others provide up to 200 billion euros ($267 billion) in bilateral loans to the International Monetary Fund (IMF) to help tackle the crisis.


Why Do Banks F?ail Together In A Crisis http://www.cnbc.com/id/45615762
Watching Europe's banks teeter on the brink of disaster because of their exposures to sovereign debt has an eerily familiar feel to it.

It is very reminiscent of the near death experience of many of the largest US banks in 2008. Back then it was mortgage-related investments rather than government bonds that weighed down the balance sheets of the banks.

One question that a lot of market watchers have is why bank failures seem to cascade. Why do we keep discovering that so many banks apparently follow very similar investment strategies? Don't the banks employ lots of very well paid people to make decisions about which loans to make, which assets to buy, and where to invest? How is it they all keep deciding the same thing?

The fact that so many banks buy the same kinds of assets is what makes for a crisis. If it were just one or two banks that unwisely over-indulged in mortgages or sovereign debt, the financial system could easily handle their failure. This is why, for instance, the failure of MF Global didn't provoke a crisis: most other US financial institutions weren't following Jon Corzine's strategy of loading up on the debt of Italy, Spain and Ireland.

It turns out that there are very good reasons banking is so homogenized. In the first place, the capital regulations around the world incentivize banks to over-invest in certain favorable asset classes. The rules for capital cushions encouraged banks to buy mortgages and sovereign debt. In Europe, banks weren't required to have any capital cushion at all for sovereign debt, which made government bonds very attractive.

Another factor driving homogenized banking is the potential for bailouts. Banks that buy only what other banks are buying know that they won't fail unless other banks are also failing, in which case central bankers and governments will intervene to prevent a systemic crisis. Banks that strike out on their own are allowed to fail if their bets are wrong.

Read more at link http://www.cnbc.com/id/45615762


Has the Bank Run Begun in Europe? http://www.cnbc.com/id/45417735

Former MF Global CEO Jon Corzine Is Really Sorry But Wants His Notes Back http://www.cnbc.com/id/45597964

MF Global's Bad Check http://www.cnbc.com/id/45404102

Translating Bill Gross: The Debt Trap http://www.cnbc.com/id/45106677


Why Is Eric Cantor Blocking the Congressional Insider Trading Act? http://www.cnbc.com/id/45612773
n a strange and unexpected twist, the Republican leader in the House of Representatives is now blocking progress on a bill that would definitively outlaw insider trading by federal lawmakers.


'Multiple Layers of Misconduct' http://www.cnbc.com/id/45586601
Two former employees of MF Global have brought suit against former CEO Jon Corzine for allegedly misrepresenting the health of the firm, using deceit to get employees to invest in company stock, and squandering that investment on risky European debt.

Euro zone pact fails to restore confidence http://www.reuters.com/


Gold set for largest fall in three months http://www.reuters.com/article/2011/12/12/us-markets-precious-idUSTRE7AK1M520111212
LONDON | Mon Dec 12, 2011 (Reuters) - Gold was set for its biggest one-day fall in three months on Monday, under pressure from a robust dollar, which in turn choked off demand from consumers in key regions such as India. Last week's summit of European Union leaders yielded a historic agreement on beefing up fiscal discipline in the 27-member bloc, but fell short of market expectations for a more drastic solution to the crisis. This lack of confidence in Europe pushed investors into the relative safety of the U.S. dollar, rather than gold, which has fallen by about 5 percent in the last week alone. A stronger dollar often encourages non-U.S. holders of gold to sell the metal to lock in a higher profit in their own currencies and in India, the world's largest consumer of bullion, this has kept jewelers and other consumers at bay. Spot gold was last quoted down nearly 3 percent at $1,659.66 an ounce by 1508 GMT, having dropped by as much as 2.8 percent earlier to a low at $1,662.39, its lowest in three weeks, after breaking through $1,680.00, a major support line.


Euro falls to lowest vs dollar since early October http://www.reuters.com/article/2011/12/12/us-markets-forex-idUSTRE7AC15W20111212
NEW YORK | Mon Dec 12, 2011 - (Reuters) - The euro slipped to a more than two-month low against the dollar on Monday as disappointed investors renewed selling of Italian and other government bonds after a summit aimed at ending two years of crisis in the euro zone failed to allay their fears. The euro was last down almost 1.2 percent at $1.3216, after touching a session low of $1.3208, according to Reuters data. That was the lowest since October 4.


No One Telling Who Took $586B in Fed Swaps http://www.bloomberg.com/news/2011-12-11/no-one-says-who-took-586-billion-in-fed-swaps-done-in-anonymity.html
For all the transparency forced on the Federal Reserve by Congress and the courts, one of the central bank’s emergency-lending programs remains so secretive that names of borrowers may be hidden from the Fed itself. As part of a currency-swap plan active from 2007 to 2010 and revived to fight the European debt crisis, the Fed lends dollars to other central banks, which auction them to local commercial banks. Lending peaked at $586 billion in December 2008. While the transactions with other central banks are all disclosed, the Fed doesn’t track where the dollars ultimately end up, and European officials don’t share borrowers’ identities outside the continent.
The lack of openness may leave the U.S. government and public in the dark on the beneficiaries and potential risks from one of the Fed’s largest crisis-loan programs. The European Central Bank’s three-month dollar lending through the swap lines surged last week to $50.7 billion from $400 million after the Nov. 30 announcement that the Fed, in concert with the ECB and four other central banks, lowered the interest rate by a half percentage point. More info at link


U.S. Stocks Fall on Moody’s Review; Intel Drops http://www.bloomberg.com/news/2011-12-12/u-s-stock-index-futures-drop-as-germany-opposes-further-ecb-bond-buying.html
U.S. stocks fell, following a two- week rally in the Standard & Poor’s 500 Index, as Moody’s Investors Service will review the ratings of all European Union countries and Intel Corp. (INTC) said revenue will miss its forecast. Financial companies had the biggest decline among 10 industries in the S&P 500, dropping 3.1 percent as a group. Morgan Stanley and Citigroup Inc. (C) retreated at least 5.4 percent. Intel tumbled 4.1 percent as the world’s largest chipmaker cited a shortage of hard-disk drive supply. Halliburton Co. (HAL), Alcoa Inc. (AA) and Newmont Mining Corp. (NEM) decreased more than 3.2 percent as oil and metal prices slumped. The S&P 500 slid 1.7 percent to 1,233.79 at 10:41 a.m. New York time. The benchmark gauge for U.S. equities rose 8.3 percent over the previous two weeks. The Dow Jones Industrial Average fell 165.71 points, or 1.4 percent, to 12,018.55 today. Global Slump read more at link above


Goldman a Target of ’Occupy’ West Coast Protests http://www.bloomberg.com/news/2011-12-12/goldman-sachs-top-target-of-occupy-protests-at-west-coast-ports.html
Goldman Sachs Group Inc. (GS), the fifth- biggest U.S. bank by assets, is a major target of Occupy Wall Street demonstrators who plan to blockade ports from Anchorage to San Diego to cut into profits of the company they blame for helping spur the financial crisis. “They represent the greed of the corporate elite, the 1 percent that’s causing ruin for everybody else,” Michael Novick, a member of Occupy Los Angeles, said of Goldman Sachs in a Dec. 7 telephone interview. The Occupy movement’s slogan is, “We are the 99 percent.” Demonstrators today hope to disrupt the largest U.S. and Canadian container ports -- Los Angeles, Long Beach and Vancouver -- as well as Anchorage; Seattle and Tacoma, Washington; Portland, Oregon, and San Diego and Oakland, California. The economic value of containerized cargo at West Coast ports is about $705 million a day, according to Martin Associates in Lancaster, Pennsylvania.

December 13, 2011 – BRUSSELS - The euro dropped to an 11-month low against the U.S. dollar on Tuesday, with selling set to continue on concerns about a lack of unity among European nations to tackle the debt crisis and fears of more credit rating downgrades. Losses accelerated after the euro broke below its October low at $1.3145, followed by $1.31, and triggered a wave of automatic sell orders. Further key support levels lie around $1.30 and $1.2860, the 2011 low. Germany’s Angela Merkel has rejected any suggestion of raising the funding limit of Europe’s future bailout fund, the European Stability Mechanism (ESM), sources in her conservative bloc said after a meeting with the chancellor. But analysts were quick to point out that it was not the first time that Merkel had made such a comment. Peter Boockvar, a market strategist at Miller Tabak, said in an email that the German Chancellor made her position on this clear immediately after the summit of European Union leaders’ summit in Brussels last week. The ESM, which will replace the current EFSF bailout fund and should come into effect from the middle of next year, will have an effective lending capacity of 500 billion euros. European Council chief Herman Van Rompuy said on Tuesday that a review of whether funding was adequate would be completed in March. “It continues to show how difficult it is to orchestrate all the moving parts of these different sovereign nations in Europe and try to get them all under one kind of agreement,” said John Doyle, currency strategist at Tempus Consulting in Washington. Discord was also present at last week’s European Union summit as Britain shunned an agreement reached by up to 26 EU nations to pursue fiscal integration as part of efforts to tackle the debt crisis. Against the yen, the euro slipped to a two-month low of 101.74 on Reuters data before rebounding to 101.93, down 0.8 percent on the day. “The euro has come a long way to multi-month lows but frankly I am not tempted to take profit,” said Neil Jones, currency analyst at Mizuho Corporate Bank in London. “I am not certain what future euro negatives lie ahead. I am just certain there will be more.” -CNBC excerpt

The fall from grace: The euro hovered near its lowest levels of the year on Wednesday, as an Italian bond auction showed the bloom continuing to fade from Europe’s latest crisis summit meeting and an economic report added to growing evidence that a recession is looming. In the foreign exchange market, the dollar has been the main beneficiary of the European debt crisis, gaining almost 5 percent against the basket of currencies the Intercontinental Exchange uses to compile its dollar index. Federal Reserve Chairman Ben S. Bernanke signaled he’s concerned Europe’s crisis will hobble a 2 1/2-year U.S. expansion that may need another boost from the central bank. The German government, meanwhile, sold €4.2 billion of two-year notes priced to yield 0.25 percent, the lowest ever. The result, along with declines in stock markets, suggests investors are fleeing for the assets that are perceived as most secure. Ben May, an economist in London with Capital Economics, said in a research note that with the fear that the debt crisis will worsen, Europe’s gross domestic product would likely contract in the fourth quarter of 2011, “to mark the beginning of another deep recession,” shrinking by about 1 percent in 2012.

–NY Times excerpt http://www.nytimes.com/2011/12/15/business/global/euro-closes-in-on-low-for-the-year.html?_r=1

Euro Crisis Shows Dutch Converge With Germany at French Expense
http://www.businessweek.com/news/2011-12-14/euro-crisis-shows-dutch-converge-with-germany-at-french-expense.html

Euro Falls Below $1.30 as Italy Finance Costs Rise; Krone Slumps
http://www.businessweek.com/news/2011-12-14/euro-falls-below-1-30-as-italy-finance-costs-rise-krone-slumps.html

US markets are lower today. The DJIA is off 0.59%, while the S&P 500 is down 0.68% and NASDAQ is lower by 1.18%.
http://www.businessweek.com/

Hong Kong Tops U.S. in Financial Market Development Ranking
http://www.businessweek.com/news/2011-12-14/hong-kong-tops-u-s-in-financial-market-development-ranking.html

(Reuters) - China's plan for a new $300 billion sovereign wealth fund is as much a warning to Washington as it is a body blow to Brussels. It's the clearest sign yet of Beijing's waning faith in bonds issued by Europe and the United States. Europe's festering debt debacle, record low yields on U.S. Treasuries and a depreciating dollar all add weight to the view in China that the time is ripe to change investment tack.

"China has decided that real assets are better than broken debt fix promises and low interest rates," says Paul Markowski, president of MES Advisers and a long-time external adviser to China's monetary policymakers on global financial markets.Beijing has watched for two years as Europe's crisis has choked growth and demand in China's biggest export market and stoked default risks on the near $800 billion of euro zone government bonds it is estimated to own.

It has been a painful lesson.

After all, China had actively bought euro assets to guard its $3.2 trillion reserve pile against over-exposure to U.S. dollars, which have lost about a third of their value in the last 10 years as U.S. Treasury yields have sunk to record lows.

Reuters reported last week that the People's Bank of China plans to create the new vehicle with two funds, one for Europe and one for the United States, making China in aggregate the world's biggest sovereign wealth fund investor. The plan originated before Europe's debt crisis, sources said.

That gels with comments from investment sources with links to China's monetary authorities and foreign reserve managers who detect a clear desire in Beijing to acquire real assets in return for supplying fresh funds to bridge U.S. deficits and recapitalize European financial institutions and governments.

HAPPIER RETURNS

The $300 billion figure is consistent with the sum that Markowski and others calculate China has in excess reserves -- the amount beyond what Beijing would need to tackle a balance of payments crisis or a domestic funding emergency.

"They want underlying assets. Equities, corporate bonds, real estate -- anything that governments want to flog," said one source involved in foreign exchange trading for official institutions such as central banks. But with a European debt crisis and the U.S. triple-A rating no longer a given, China's state investors have good reasons to push into new kinds of assets. read more at link above

"...Knowledgeable sources told the Journal that Soros purchased the bonds below their then-market value. Soros still holds the bulk of what he bought, and may be in the black, they say.


Soros is taking the same gamble that Corzine did, betting that Italy won’t default on its debt before the bonds mature in December 2012, or at least before he sells them. That essentially means Soros is betting that the euro won’t collapse."

(more...)
http://www.newsmax.com/StreetTalk/soros-corzine-mf-italy/2011/12/09/id/420483

I don't see Euro or many of the other economies around the world collapsing after the IQD has revalued. There's about 150 countries waiting to to revalue so we shall see how all of this settles out sooner then later. Iraq is now a sovereign nation and most of the US military have already moved out. Banks are on hold and have been for a couple of weeks losing millions if not billions... and there is only one reason they would do that. Much, much more is on the way to make up for the loss. And why did the Federal Reserve bail out the Euro... same thing.

December 16, 2011 – NEW YORK – The ratings firm Fitch downgraded a cluster of the world’s largest banks Thursday, pointing to trading challenges facing international markets. The banks included Bank of America, Morgan Stanley and Goldman Sachs, as well as Europe’s Barclays, Societe Generale and BNP Paribas. Germany’s Deutsche Bank and Switzerland’s Credit Suisse were also downgraded. It was the third major credit rating agency to downgrade global financial institutions since September. SEC to appeal rejected Citigroup settlement. European banks seeking cash “These actions culminate a broader, global review of financial institutions,” the ratings firm said in a written statement. Managing Director Thomas Abruzzo added that the downgrades reflect “fundamental risks in the global trading bank environment.” He noted that, for Bank of America, Thursday’s move reflects “particularities of the firm’s business,” notably issues arising from “legacy acquisitions” such as Merrill Lynch and Countrywide. Last month, Standard & Poor’s downgraded the credit ratings of 15 banks. In September, Moody’s Investors Services also announced downgrades. Financial institutions have faced difficult times worldwide, with investor concerns largely focused on the exposure banks may have to the European debt crisis. –CNN e

(Financial Times) -- The managing director of the International Monetary Fund has warned that the global economy faces the prospect of "economic retraction, rising protectionism, isolation and . . . what happened in the 30s [Depression]", as European tensions again flared over suggestions in Paris that the UK's credit rating should be downgraded before France's. "There is no economy in the world, whether low-income countries, emerging markets, middle-income countries or super-advanced economies that will be immune to the crisis that we see not only unfolding but escalating," Christine Lagarde said in a speech at the US state department in Washington. "It is not a crisis that will be resolved by one group of countries taking action. It is going to be hopefully resolved by all countries, all regions, all categories of countries actually taking action. read more at link

(Reuters) - World Bank President Robert Zoellick said on Friday he was "deeply troubled" by exchanges between Britain and France over resolving the euro zone debt crisis especially at a time when the region's economic problems are far from solved.

Will German Growth Stall in 2012?
The global economy is at risk from all sides, with the European debt crisis, a weak US economy and a slowdown in China. But most German companies are still doing well, and executives are optimistic about 2012. Experts wonder, however, how long the export-driven German economy will be able to elude the gathering storm.
more... http://www.spiegel.de/international/business/0,1518,805554,00.html

Banks Bunker Hundreds of Billions in Deposits at ECB
Just before Christmas, the European Central Bank flooded the financial markets with 500 billion euros -- a move that may not ultimately have the desired effect of stabilizing banks. Instead of passing that money on in loans to businesses to spur the economy, European banks have redeposited the money with the ECB at low interest rates. more ... http://www.spiegel.de/international/business/0,1518,805940,00.html

Wall Street flat as Santa rally falters
NEW YORK - Stocks fluctuated between small gains and losses in a light-volume session on Tuesday, suggesting a 5 percent rally over the past four trading sessions may have largely run its course. more... http://www.reuters.com/finance/markets

Stocks flat after U.S. data, euro near 11-month low
NEW YORK/LONDON - World stocks were little changed on Tuesday as weak U.S. housing data poured cold water on a four-day Wall Street rally while the euro was stuck near an 11-month low on concerns about a large Italian debt auction later in the week. more... http://www.reuters.com/finance/markets

Gold falls; US data, Europe eyed
(Reuters) - Tue Dec 27, 2011 - Gold fell on Tuesday but remained range-bound around $1,600 as investors stayed on the sidelines in the final week of the year, subdued by concerns about the euro zone debt crisis. Recent U.S. economic data had spurred a rally in riskier assets including equities and industrial metals and sent gold prices up about half a percent last week. Investors will look for more signs of recovery in the United States from data this week, including consumer confidence for December due later on Tuesday. "Gold prices may be under pressure from a strengthening dollar in the next few months as the brightened economic prospects in the United States are likely to further boost the dollar index," said Li Ning, an analyst at Shanghai CIFCO Futures.

The dollar was down against a basket of currencies .DXY on Tuesday but was still on course for a second straight quarter of gains as fears about the worsening euro zone crisis drove investors to seek safety in the greenback. <USD/>

Spot gold fell to a one-week low of $1,591.09 earlier and recovered slightly to $1,596.15 by 1414 GMT, down 0.6 percent. U.S. gold dropped 0.5 percent to $1,597.70.
more... http://www.reuters.com/article/2011/12/27/us-markets-precious-idUSTRE7AK1M520111227

December 27, 2011 – WORLD – The economic, political and social outlook for 2012 is profoundly negative. The almost universal consensus, even among mainstream orthodox economists is pessimistic regarding the world economy. Although, even here, their predictions understate the scope and depth of the crises, there are powerful reasons to believe that beginning in 2012, we are heading toward a steeper decline than what was experienced during the Great Recession of 2008 – 2009. With fewer resources, greater debt and increasing popular resistance to shouldering the burden of saving the capitalist system, the governments cannot bail out the system. Many of the major institutions and economic relations which were cause and consequence of world and regional capitalist expansion over the past three decades are in the process of disintegration and disarray. The previous economic engines of global expansion, the U.S. and the European Union, have exhausted their potentialities and are in open decline. The new centers of growth, China, India, Brazil, Russia, which for a ‘short decade’ provided a new impetus for world growth have run their course and are de-accelerating rapidly and will continue to do so throughout the new year.

Bad gets worse: Specifically, the crises wracked European Union will break up and the de facto multi-tiered structure will turn into a series of bilateral/multi-lateral trade and investment agreements. Germany, France, the Low and Nordic countries will attempt to weather the downturn. England – namely the City of London, in splendid isolation, will sink into negative growth, its financiers scrambling to find new speculative opportunities among the Gulf petrol-states and other ‘niches’. Eastern and Central Europe, particularly Poland and the Czech Republic, will deepen their ties to Germany but will suffer the consequences of the general decline of world markets. Southern Europe (Greece, Spain, Portugal and Italy) will enter into a deep depression as the massive debt payments fueled by savage assaults on wages and social benefits will severely reduce consumer demand. Depression level unemployment and under-employment running to one-third of the labor force will detonate year-long social conflicts, intensifying into popular uprisings. Eventually a break-up of the European Union is almost inevitable. The euro as a currency of choice will be replaced by or return to national issues accompanied by devaluations and protectionism. Nationalism will be the order of the day. Banks in Germany, France and Switzerland will suffer huge losses on their loans to the South. Major bailouts will become necessary, polarizing German and French societies, between the tax-paying majorities and the bankers. Trade union militancy and rightwing pseudo ‘populism’ (neo-fascism) will intensify the class and national struggles. A depressed, fragmented and polarized Europe will be less likely to join in any Zionist inspired U.S-Israeli military adventure against Iran (or even Syria). Crises ridden Europe will oppose Washington’s confrontationalist approach to Russia and China.

All indications point to 2012 being a turning point year of unrelenting economic crisis spreading outward from Europe and the US to Asia and its dependencies in Africa and Latin America. The crisis will be truly global. Inter-imperial confrontations and colonial wars will undermine any efforts to ameliorate this crisis. In response, mass movements will emerge moving over time from protests and rebellions, and hopefully to social revolutions and political power. –Eurasian Review


November 7, 2011 – LONDON –The world will not end in 2012 though before it’s over, for many, it may well feel like it. Nearly every dramatic event from social unrest to the crisis in the Middle East appears to be converging in the coming year. Solar activity, though low by previous solar cycles, is starting to increase. NASA said the solar maximum in 2012-2013, when the Sun is expected to reach peak activity, may be the strongest since 1958. 2012 is also expected to be the year of the return of the Mesoamerican pagan deity Quetzalcoatl –setting the stage for the potential appearance of many other entities, and beings also claiming divinity and that they are here to guide humanity through the corridors of this planetary crisis. Geopolitics: According to senior intelligence officials in the U.S. and Israel, 2012 is the year Iran is supposed to be near nuclear weapons capability. Will this be the year of a military action in Iran? Israel is already comtemplating a potential military strike to halt Iran’s nuclear program. 2012 is the year President Putin returns to power just as Russia is undergoing a strong surge in nationalism, is modernizing its nuclear arsenal, seeking closer ties with China, and beefing up its military presence across the globe. Russia has warned the West and Israel that a military strike on Iran would have grave consequences.

The rise of the Dragon- 2012 is the year of the Dragon according to the Chinese calendar. The dragon has long been considered a symbol for China as well as for Satan in the Bible according to the 12th and 13thchapter of Revelation. Will China’s rising economic and military clout collide with western nation’s military intervention in Iran or SE Asia in 2012? A decisive election in Taiwan is also occurring in 2012 that will determine the country’s future relationship with the Chinese mainland. Will Taiwan’s destiny be decided by this election? Many U.S. government observers think so. Disasters: Earthquakes and natural disasters are increasing. There is also growing unrest at some of the planet’s largest volcanic systems. Will 2012 bring even more ominous threats from mother nature? 2011 is already one of the costliest years for natural disasters on record. Food production and distribution is also under growing threat from natural disasters and extreme weather events, just as the planet’s population exceeds 7 billion people. Economic crisis: The Eurozone and U.S. sovereign debt crisis is expected to grow dramatically worse in 2012 as debt levels among Western nations continues to soar. As bad as 2011 was, 2012 may push the world into even more adverse uncharted economic territory. Japan, the Eurozone, and even the U.S. is struggling with massive deficits as the economy deteriorates, unemployment rises, and natural disasters increase. The U.S. federal debt could exceed $17 trillion dollars by the end of 2012. Anarchy: Social unrest is unraveling absolutism in the Middle East and installing theocracies in its place just as the Eurozone debt crisis is deposing prime ministers in Europe. Sectarian violence and civil war is also likely to increase in Muslim countries where the the power structure is under threat from fundamentalist insurgency. Also expect even more civil unrest around the world in 2012 as governments crumble, scandals increase, and austerity measures begin to take bite to save countries from economic ruin. -The Extinction Protocol

Say what? According to what I've been told....David Wilcox claims this is a HOAX?!?! Good God! What NEXT?



I find it highly unusual that on his site....is Awake and Aware AD for Camelot / Avalon??

http://www.achieveradio.com/cash-flow/

Ron Paul on April 24, 2002

“Let it not be said that no one cared, that no one objected once it's realized that our liberties and wealth are in jeopardy.” ~ Ron Paul

Ron Paul - Predictions in Due Time (Original)
https://www.youtube.com/watch?v=zGDisyWkIBM

http://en.wikipedia.org/wiki/Ron_Paul

Ronald Ernest "Ron" Paul (born August 20, 1935) is an American physician, author, Republican United States Congressman, and a candidate for the 2012 Republican Party presidential nomination. He has been an outspoken critic of American foreign and monetary policies, recognized for sharply opposing his own party on many issues. Since 1997, Paul has represented Texas's 14th congressional district, which covers an area south and southwest of Houston that includes Galveston. Paul serves on the House Committees on Foreign Affairs and Financial Services, and on the Joint Economic Committee, as well as chairman of the Financial Services Subcommittee on Domestic Monetary Policy and Technology.

A native of Pittsburgh, Pennsylvania, Paul is a graduate of Gettysburg College and Duke University School of Medicine, where he earned his medical degree. He served as a flight surgeon in the United States Air Force from 1963 until 1968. He worked as an obstetrician-gynecologist during the 1960s and 1970s, delivering more than 4,000 babies, before entering politics in 1976.

Conversations w/Great Minds - Gunnar Tómasson - Worldwide Collapse

https://www.youtube.com/watch?v=lZ7OC41ZerA


Love Always
mudra

January 13, 2012 –FRANCE – Standard & Poor’s ratings agency has downgraded France’s credit rating, French television channels reported on Friday, citing a government source. The channels did not provide further details. S&P warned in December that it could downgrade the credit ratings of several euro zone nations if European leaders failed to find a lasting solution to the debt crisis at a meeting of EU leaders that month. Several euro zone countries including France face an “imminent” downgrade by ratings agency S&P, Reuters and Dow Jones news agencies reported, sending the euro to a session low against the dollar and European stocks down. U.S. stocks also tumbled. The reports said Germany and the Netherlands were not among the countries facing a downgrade later on Friday, but gave no further details. According to Dow Jones sources, France was among the countries set to be downgraded. “Remain alert tonight when U.S. markets close,” Reuters cited a source as saying. S&P warned in December that it could downgrade the credit ratings of several euro zone nations if European leaders failed to find a lasting solution to the debt crisis at a meeting of EU leaders that month. A spokesperson for S&P in Paris declined to comment on the reports. A French finance ministry spokesperson was not immediately available for comment. John Wraith, Fixed Income Strategist at Bank of America Merrill Lynch told CNBC the confirmation of a mass downgrade would be another serious step in the crisis and would lead to a serious worsening of sentiment. “Clearly these won’t come out of a clear blue sky. These countries have all been on negative credit watch for the last four weeks and many observers — ourselves included — did expect that process to end with ratings action,” he said. “To a large degree it’s widely anticipated. However, we think the reality of it is going to have a knock-on, ongoing impact on these markets.” -CNBC

Greek Debt Talks Halted, Appear Close to Collapse
http://www.cnbc.com/id/45986852
Talks between Greece and its creditor banks aimed at avoiding a disorderly default broke down on Friday, with Greeks warning of disastrous results if a bond swap deal is not reached soon. Athens needs an agreement, effectively seeing creditors voluntarily giving up a lot of their promised returns, to slash its debt to more sustainable levels and convince the European Union and International Monetary Fund to keep lending it cash. In what some analysts said may be a high stakes poker game at the last stretch of intense negotiations to convince private bond holders to voluntarily take some losses to avoid the worst, both sides appeared to be digging in their heels.

A Greek default would be far worse for both Greece and the banks than reaching some form of deal.

"Discussions with Greece and the official sector are paused for reflection," said the Institute of International Finance (IIF), which leads talks for private bond holders. more at link

Recession Gives Mafia Control of Italy's Economy
http://www.cnbc.com/id/45985745
When Italian construction group Perego was struggling back in 2008, a white knight flush with cash rode to its rescue. Unfortunately the "knight" was a powerful Mafia organization, the 'Ndrangheta, which went on to take control of the family-owned Lombardy business and tried to steer it on an expansion path, Italian justice authorities say. "Luckily it failed," said Milan judge Giuseppe Gennari. The group has since collapsed and former chairman Ivano Perego is awaiting trial for opening his door to the crime syndicate. more at link

Financial markets close in turmoil as downgrades spread across Eurozone
http://www.latimes.com/business/la-fiw-standard-and-poors-downgrade-20120113,0,312854.story
January 14, 2012 – FRANCE – Standard & Poor’s swept the debt-ridden European continent with punishing credit downgrades Friday, stripping France of its coveted AAA status and dropping Italy even lower. Germany retained its top-notch rating, but Portugal’s debt was consigned to junk. In all, S&P, which took away the United States’ AAA rating last summer, lowered the ratings of nine countries, complicating Europe’s efforts to find a way out of a debt crisis that still threatens to cause worldwide economic harm. Austria also lost its AAA status, Italy and Spain fell by two notches, and S&P also cut ratings on Malta, Cyprus, Slovakia and Slovenia. The downgrades on more half of the countries that use the euro could drive up yields on European government debt as investors demand more compensation for holding bonds deemed to be riskier. Higher borrowing costs would put more financial pressure on countries already contending with heavy debt burdens. “In our view, the policy initiatives taken by European policymakers in recent weeks may be insufficient to fully address ongoing systemic stresses in the eurozone,” S&P said in a statement. Stocks fell Friday as downgrade rumors reached the trading floors of Europe and the United States. But the declines were nothing like the wrenching swings of last summer and fall, when the debt crisis threw the markets into turmoil. The Dow Jones industrial average in New York was down 0.5 percent. Stocks fell 0.6 percent in Germany, 0.5 percent in Britain and 0.1 in France, but each of those markets closed before French Finance Minister Francois Baroin gave first word of the country’s downgrade on French television. –LA

TimesS&P, Greece pressure euro zone to boost defenses
(Reuters) - Mass euro zone ratings downgrades are unlikely to shake up investors too much, but with Greek debt talks at an impasse, pressure has been loaded on the bloc to shore up its defenses and glimmers of optimism from last week have been firmly doused.
http://www.reuters.com/article/2012/01/16/us-eurozone-idUSTRE80E0RN20120116
LONDON - With Greek debt talks at an impasse, the euro zone is under pressure to shore up its defenses and last week's glimmers of optimism have been firmly doused.

Greek PM confident debt talks will be clinched in time
(Reuters) - Greece sent senior officials to Washington on Monday for meetings with the International Monetary Fund as it raced against the clock to break a deadlock in debt swap talks that has prompted new fears of an unruly default.
http://www.reuters.com/article/2012/01/16/us-greece-idUSTRE80F0H120120116

Global leaders urge swift action to resolve Europe crisis
(Reuters) - Global leaders and businessmen urged Europe on Monday to take fresh steps to resolve its deepening debt crisis, with a top executive of the IMF warning the continent will see a "downward spiral of collapsing confidence" if no further action is taken.
http://www.reuters.com/article/2012/01/16/us-imf-lipton-idUSTRE80F0B320120116

Timing of S&P's downgrades "very odd," EU Commission says
(Reuters) - U.S. ratings agency Standard & Poor's is wrong to think the euro zone is excessively focused on budget austerity and the timing of its downgrades of nine euro zone countries was "odd," the European Commission said on Monday.
http://www.reuters.com/article/2012/01/16/us-eu-sp-decision-idUSTRE80F0NP20120116

Weaker euro helps exporters, tourists
As turmoil continues in the euro zone, the euro is trading at around a 16-month low against the pound and the dollar, which could be good for European exporters and visiting tourists.

Analysis: China developers launch funds to bridge finance gap
http://www.reuters.com/article/2012/01/16/us-china-property-fund-idUSTRE80F05020120116
(Reuters) - China's fledgling real estate investment fund market could see a surge of activity in 2012 as property developers launch their own vehicles in a desperate bid to bridge an estimated $111 billion financing gap in the year ahead. A government-led clampdown on bank, bond, equity and trust market financing for real estate has left developers with little choice other than to set up their own funds, which have raised barely 10 percent of the sum in the past two years that needs to be found to refinance maturing debt in 2012. On the upside, China's high net-wealth families still favor property investment and funds give them an alternative to buying the physical asset while retaining exposure to the sector.

Analysis: Foreign firms pay up to enter China's funds industry
Sun, Jan 15 2012
China launches its first physical iron ore trading platform
Sun, Jan 15 2012
China securities regulator to ease controls on overseas listings
Sun, Jan 15 2012
China banks need to check hidden risks: egulator
Sun, Jan 15 201

Bloomberg Headlines http://www.bloomberg.com/
European Stocks Fluctuate as France Sells Debt
Lazard Gets Five Weeks to Find RBS Buyers
Europe Bank Dividends Poised to Tumble
Cartier Turns to More Discreet Watches to Assuage Spending Guilt: Retail
VW to Expand Car Financing to Win Loyalty
Greek Debt Swap Faces ‘Critical’ Phase in Talks
Rajoy May Break Silence as Sarkozy Visits
German Bund Allure Grows on S&P Ratings Cuts

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Apocalypse How? Dire 2012 Forecasts
Nine Euro Nations’ Ratings Cut, Seven Affirmed
China Hoarding of Gold Turns More Traders Bullish

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Euro Leaders Race to Salvage Rescue Plans
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European Stocks Fluctuate as France Sells Debt
Gross: Greece to Default Following Downgrades

Days after unleashing a wave of downgrades across Europe, S&P is now warning that the ratings of Asia-Pacific sovereigns are increasingly at risk.This is according to a Dow Jones interview of S&P's Chief Credit Officer Ian Thompson (via Wall Street Journal). "It's clear global risks have increased and it's going to be a more challenging operating environment, even for the Asia-Pacific region," said Ian Thompson, senior managing director and chief credit officer at S&P, in an interview Monday. "A dislocation in global funding markets also has the potential to damage credit in Asia-Pacific."


Read more: http://www.businessinsider.com/sp-to-asia-youre-next-2012-1#ixzz1jdHGMsUk

India Implements Biometric ID for it's 1.2 Billion People to enable Cashless Society

16-Jan-2012

In Response To: Breaking! Ron Paul warns America of a one currency plan by the IMF during South Carolina rally. (Susoni)

Over the past few months, I have written several articles dealing with the coming cashless society and the developing technological control grid. I also have written about the surge of government attempts to gain access to and force the use of biometric data for the purposes of identification, tracking, tracing, and surveillance.

Unfortunately, the reactions I receive from the general public are almost always the same. While some recognize the danger, most simply deny that governments have the capability or even the desire to create a system in which the population is constantly monitored by virtue of their most private and even biological information. Others, either gripped by apathy or ignorance, cannot believe that the gadgets given to them from the massive tech corporations are designed for anything other than their entertainment and enjoyment.

However, current events in India should serve not just as a warning, but also as a foreshadowing of the events to come in the Western world, specifically the United States.

Recently, India has launched a nationwide program involving the allocation of a Unique Identification Number (UID) to every single one of its 1.2 billion residents. Each of the numbers will be tied to the biometric data of the recipient using three different forms of information – fingerprints, iris scans, and pictures of the face. All ten digits of the hand will be recorded, and both eyes will be scanned.

The project will be directed by the Unique Identification Authority of India (UIDAI) under the premise of preventing identity theft and social welfare fraud. India has rather extensive social welfare and safety net programs, ranging from medical support and heating assistance to others aimed at helping the poor. Fraud is a rampant problem in India, especially in relation to these programs due to a preponderance of corrupt politicians and bureaucrats who often stuff welfare rolls with fake names and take the money for themselves.

Yet, although the justification for the billion person database is the increased ability to accurately disperse social welfare benefits, it will not be just the Indian government’s social welfare programs that have access to and utilize the UIDAI. Indeed, even before the program has been completed, major banks, state/local governments, and other institutions are planning to use the UIDAI for identification verification purposes and, of course, payment and accessibility.

As Aaron Saenz of the Singularity Hub writes:

Yet the UID is going to be used for much more than social welfare programs. The UIDAI is in discussion with many institutions (banks, local/state governments, etc.) to allow them to use the UID as a means of identity verification. These institutions will pay the UIDAI some fee to cover costs and generate revenue. There seems to be little doubt that once it is established, the UID will become a preferred method (if not the preferred method) of identification in India.

Saenz also sees the eventuality of the UIDAI program becoming a means of payment and accessibility. He continues:

Ultimately, I wouldn’t be surprised if the UID, with its biometric data, could be used as a means of payment (when linked to a bank account), or as an access key to homes and cars. Purchase a meal with your fingerprint and unlock your door with the twinkle in your eye. Similar results could be expected in other nations that adopted biometric identification systems.

read on: http://www.rumormillnews.com/cgi-bin/forum.cgi?read=227390

Love Always
mudra