Hungary: Razor wire fence fails to halt migrant and refugee influx into EU

Published on Aug 28, 2015

A relentless flow of desperate migrants continued to cross into Hungary on Friday morning, crawling underneath a razor wire fence on the border with Serbia.

The barrier and police reinforcements have failed to stem the flow of people entering the European Union.

Hungary is not their final destination but it is hugely significant as the gateway to Europe’s visa-free Schengen zone.

A record number came through on Wednesday – some 3,241 people, including nearly 700 children.

Hungary’s decision…
READ MORE : http://www.euronews.com/2015/08/28/hu…

Migration routes to Europe

Published on Aug 28, 2015

The bodies of more than 70 dead migrants have been recovered from an abandoned truck found on an Austrian motorway, more than the initial estimate of between 20 and 50, the Austrian government said Friday.VIDEOGRAPHIC

CHINA CONFIRMS IT HAS BEGUN LIQUIDATING TREASURIES, WARNS WASHINGTON

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China cut its holdings of U.S. Treasuries to raise dollars to support the yuan

by ZERO HEDGE | AUGUST 28, 2015

On Tuesday evening, we asked what would happen if emerging markets joined China in dumping US Treasuries.

For months we’ve documented the PBoC’s liquidation of its vast stack of US paper. Back in July for instance, we noted that China had dumped a record $143 billion in US Treasuries in three months via Belgium, leaving Goldman speechless for once.

We followed all of this up this week by noting that thanks to the new FX regime (which, in theory anyway, should have required less intervention),China has likely sold somewhere on the order of $100 billion in US Treasuries in the past two weeks alone in open FX ops to steady the yuan. Put simply, as part of China’s devaluation and subsequent attempts to contain said devaluation, China has been purging an epic amount of Treasuries.

But even as the cat was out of the bag for Zero Hedge readers and even as, to mix colorful escape metaphors, the genie has been out of the bottle since mid-August for China which, thanks to a steadfast refusal to just float the yuan and be done with it, will have to continue selling USTs by the hundreds of billions, the world at large was slow to wake up to what China’s FX interventions actually implied until Wednesday when two things happened: i) Bloomberg, citing fixed income desks in New York, noted “substantial selling pressure” in long-term USTs emanating from somebody in the “Far East”, and ii) Bill Gross asked, in a tweet, if China was selling Treasuries.
Sure enough, on Thursday we got confirmation of what we’ve been detailing exhaustively for months. Here’s Bloomberg:

China has cut its holdings of U.S. Treasuries this month to raise dollars needed to support the yuan in the wake of a shock devaluation two weeks ago, according to people familiar with the matter.
Channels for such transactions include China selling directly, as well as through agents in Belgium and Switzerland, said one of the people, who declined to be identified as the information isn’t public. China has communicated with U.S. authorities about the sales, said another person. They didn’t reveal the size of the disposals.

The latest available Treasury data and estimates by strategists suggest that China controls $1.48 trillion of U.S. government debt, according to data compiled by Bloomberg. That includes about $200 billion held through Belgium, which Nomura Holdings Inc. says is home to Chinese custodial accounts.

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The PBOC has sold at least $106 billion of reserve assets in the last two weeks, including Treasuries, according to an estimate from Societe Generale SA. The figure was based on the bank’s calculation of how much liquidity will be added to China’s financial system through Tuesday’s reduction of interest rates and lenders’ reserve-requirement ratios. The assumption is that the central bank aims to replenish the funds it drained when it bought yuan to stabilize the currency.

Now that what has been glaringly obvious for at least six months has been given the official mainstream stamp of fact-based approval, the all-clear has been given for rampant speculation on what exactly this means for US monetary policy. Here’s Bloomberg again:

China selling Treasuries is “not a surprise, but possibly something which people haven’t fully priced in,” said Owen Callan, a Dublin-based fixed-income strategist at Cantor Fitzgerald LP. “It would change the outlook on Treasuries quite a bit if you started to price in a fairly large liquidation of their reserves over the next six months or so as they manage the yuan to whatever level they have in mind.”

“By selling Treasuries to defend the renminbi, they’re preventing Treasury yields from going lower despite the fact that we’ve seen a sharp drop in the stock market,” David Woo, head of global rates and currencies research at Bank of America Corp., said on Bloomberg Television on Wednesday. “China has a direct impact on global markets through U.S. rates.”

As we discussed on Wednesday evening, we do, thanks to a review of the extant academic literature undertaken by Citi, have an idea of what foreign FX reserve liquidation means for USTs. “Suppose EM and developing countries, which hold $5491 bn in reserves, reduce holdings by 10% over one year – this amounts to 3.07% of US GDP and means 10yr Treasury yields rates rise by a mammoth 108bp ,” Citi said, in a note dated earlier this week.

In other words, for every $500 billion in liquidated Chinese FX reserves, there’s an attendant 108bps worth of upward pressure on the 10Y. Bear in mind here that thanks to the threat of a looming Fed rate hike and a litany of other factors including plunging commodity prices and idiosyncratic political risks, EM currencies are in free fall which means that it’s not just China that’s in the process of liquidating USD assets.

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The clear takeaway is that there’s a substantial amount of upward pressure building for UST yields and that is a decisively undesirable situation for the Fed to find itself in going into September. On Wednesday we summed the situation up as follows: “one of the catalysts for the EM outflows is the looming Fed hike which, when taken together with the above, means that if the FOMC raises rates, they will almost surely accelerate the pressure on EM, triggering further FX reserve drawdowns (i.e. UST dumping), resulting in substantial upward pressure on yields and prompting an immediate policy reversal and perhaps even QE4.”

Well now that China’s UST liquidation frenzy has reached a pace where it could no longer be swept under the rug and/or played down as inconsequential, and now that Bill Dudley has officially opened the door for “additional quantitative easing”, it would appear that the only way to prevent China and EM UST liquidation from, as Citi puts it, “choking off the US housing market,” and exerting a kind of forced tightening via the UST transmission channel, will be for the FOMC to usher in QE4.

REPORT: EU INTENTIONALLY COLLAPSING EUROPEAN COUNTRIES WITH ILLEGALS

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The ‘Kalergi Plan’ Started in the 70s

by LEO LYON ZAGAMI | AUGUST 28, 2015

Illegal Muslim refugee trafficking is now creating chaos at the Greece-Macedonia border and the constant flood of boats arriving from Libya reveal a network that uses structured routes that seem unstoppable as they generate money for the mafia and the terrorist organizations involved like ISIS.

This scenario seems to fit perfectly with a secret plan of the New World Order known as the Coudenhove-Kalergi Plan that some people in European right-wing circles say was created for the systematic genocide of the people of Europe.

This plan was apparently devised by an Austrian diplomat and Freemason named Richard Coudenhove-Kalergi (1894- 1972). The Kalergi family roots can be traced back to Byzantine royalty via Venetian aristocracy. Coudenhove-Kalergi was actually the first proponent of a unified Europe back in the 1920s and for this reason Coudenhove-Kalergi is recognized as the founder of the first popular movement for a United Europe.

The Coudenhove-Kalergi European Prize is awarded every two years to European leaders who have excelled in promoting what is beyond any political or religious ideology. Angela Merkel and Herman Van Rompuy, two of the top pawns in the Bilderberg Club, have received this award in recent years.
Coudenhove-Kalergi’s father, initially an anti-semite, later became a close friend of Theodor Herzl, the founder of Zionism, but his son, Richard Coudenhove-Kalergi, also has strong connections with the Catholic elite due to his aristocratic status.

In 1922, he co-founded the Pan-European Union (PEU) with Archduke Otto von Habsburg, a staunch Catholic who was the head of the Habsburg dynasty and former Crown Prince of Austria-Hungary. He became involved with the Pan-European Union after becoming Grand Master and Sovereign of the highly influential Order of the Golden Fleece in 1922. Otto became International President of the PEU in 1973, after Coudenhove’s death.

According to Coudenhove-Kalergi’s autobiography, at the beginning of 1924 through Baron Louis de Rothschild he was in contact with Max Warburg, who offered to finance his movement for the next 3 years giving him 60,000 gold marks.

The Coudenhove-Kalergi Plan becomes evident in 1925 when he writes in Practical Idealism (Praktischer Idealismus): “The man of the future will be of mixed race. Today’s races and classes will gradually disappear owing to the vanishing of space, time, and prejudice. The Eurasian-Negroid race of the future, similar in its appearance to the Ancient Egyptians, will replace the diversity of peoples with a diversity of individuals.”

This book is very hard to get a hold of today. In Germany the book is practically censored, although it isn’t present on the official list of books censored by the German government. In 1990, the publishing company, “Independent News,” [Unabhängige Nachrichten], published a summary of the book and contemplated printing it in it’s entirety, but the government initiated a police search of the premises and the only copy of Praktischer Idealismus was confiscated. The book is not mentioned on the official internet pages of the Pan-European Movement, which is understandable because its content is directly in opposition to the movement’s official program.

Coudenhove-Kalergi suggested Beethoven’s hymn as the EU’s national anthem and was very active in connection with the design of the EU logo which contains masonic symbols. He was initiated in Freemasonry in the Humanitas Lodge in Vienna in the early 1920’s but left in 1926 to avoid the heavy criticism which occurred as a result of the relationship between the Pan-European movement and Freemasonry. Some say later, in 1947, he founded the powerful Ur-Lodge Pan-Europa that is still active to this day and draws members from the political and economic elite.

Coudenhove-Kalergi’s ground work prepared the EU for what many Christian’s familiar with the prophecies of “The Book of Revelation” perceive as “The New Holy Roman Empire.”
The socialist elite of Europe born out of Coudenhove-Kalergi’s plan have created a United Europe backed by the Vatican under a centralized government, a system that actually will be the prototype for the US and the rest of the world when the New World Order is finalized.

In the meantime, tensions rise as the Muslim population is being pushed like never before towards Europe to fulfill “The Kalergi Plan.” This will create civil unrest and wars in most areas of southern Europe almost certainly by the 2020’s facilitating population reduction.

LIES YOU WILL HEAR AS THE ECONOMIC COLLAPSE PROGRESSES

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It is undeniable; the final collapse triggers are upon us.

by BRANDON SMITH | ALT MARKET | AUGUST 28, 2015

In the years since the derivatives disaster, there has been no end to the absurd and ludicrous propaganda coming out of mainstream financial outlets and as the situation in markets becomes worse, the propaganda will only increase.

This might seem counter-intuitive to many. You would think that the more obvious the economic collapse becomes, the more alternative analysts will be vindicated and the more awake and aware the average person will be. Not necessarily…

In fact, the mainstream spin machine is going into high speed the more negative data is exposed and absorbed into the markets. If you know your history, then you know that this is a common tactic by the establishment elite to string the public along with false hopes so that they do not prepare or take alternative measures while the system crumbles around their ears. At the onset of the Great Depression the same strategies were used. Consider if you’ve heard similar quotes to these in the mainstream news over the past couple months:
John Maynard Keynes in 1927: “We will not have any more crashes in our time.”

H.H. Simmons, president of the New York Stock Exchange, Jan. 12, 1928: “I cannot help but raise a dissenting voice to statements that we are living in a fool’s paradise, and that prosperity in this country must necessarily diminish and recede in the near future.”

Irving Fisher, leading U.S. economist, The New York Times, Sept. 5, 1929: “There may be a recession in stock prices, but not anything in the nature of a crash.” And on 17, 1929: “Stock prices have reached what looks like a permanently high plateau. I do not feel there will be soon if ever a 50 or 60 point break from present levels, such as (bears) have predicted. I expect to see the stock market a good deal higher within a few months.”

W. McNeel, market analyst, as quoted in the New York Herald Tribune, Oct. 30, 1929: “This is the time to buy stocks. This is the time to recall the words of the late J. P. Morgan… that any man who is bearish on America will go broke. Within a few days there is likely to be a bear panic rather than a bull panic. Many of the low prices as a result of this hysterical selling are not likely to be reached again in many years.”

Harvard Economic Society, Nov. 10, 1929: “… a serious depression seems improbable; [we expect] recovery of business next spring, with further improvement in the fall.”

Here is the issue – as I have ALWAYS said, economic collapse is not a singular event, it is a process. The global economy has been in the process of collapse since 2008 and it never left that path. Those who were ignorant took government statistics at face value and the manipulated bull market as legitimate and refused to acknowledge the fundamentals. Now, with markets recently suffering one of the greatest freefalls since the 2008/2009 crash, they are witnessing the folly of their assumptions, but that does not mean they will accept them or apologize for them outright. If there is one lesson I have learned well during my time in the Liberty Movement, it is to never underestimate the power of normalcy bias.

There were plenty of “up days” in the markets during the Great Depression, and this kept the false dream of a quick recovery alive for a large percentage of the American population for many years. Expect numerous “stunning stock reversals” as the collapse of our era progresses, but always remember that it is the overall TREND that matters far more than any one positive or negative trading day (unless you open down 1000 points as we did on Monday), and even more important than the trends are the economic fundamentals.

The establishment has made every effort to hide the fundamentals from the public through far reaching misrepresentations of economic stats. However, the days of effective disinformation in terms of the financial system are coming to an end. As investors and the general public begin to absorb the reality that the global economy is indeed witnessing a vast crisis scenario and acknowledges real numbers over fraudulent numbers, the only recourse of central bankers and the governments they control is to convince the public that the crisis they are witnessing is not really a crisis. That is to say, the establishment will attempt to marginalize the collapse signals they can no longer hide as if such signals are of “minimal” importance.

Just as occurred during the onset of the Great Depression, the lies will be legion the closer we come to zero hour. Here are some of the lies you will likely hear as the collapse accelerates…

The Crisis Was Caused By Chinese Contagion

The hypocrisy inherent in this lie is truly astounding, to say the least, considering it is now being uttered by the same mainstream dirtbags who only months ago were claiming that China’s financial turmoil and stock market upset were inconsequential and would have “little to no effect” on Western markets.

I specifically recall these hilarious quotes from Barbara Rockefeller in July:

“Something else that doesn’t matter much is the Chinese equity meltdown—again. China may be big and powerful, but it lacks a retail base and fund managers experienced in price variations, never mind a true rout…”

“Doom-and-gloom types have been saying for a long time that we will get a stock market rout when the Fed finally does move to raise rates. But as we wrote last week, history doesn’t bear out the thesis, not that you can really count on history when the sample size is one or two data points…”

Yes, that is a bit embarrassing. One or two data points? There have been many central bank interventions in history. When has ANY central bank or any government ever used stimulus to manipulate markets through fiat infusion and zero interest fueled stock buybacks or given government the ability to monetize its own debt, and actually been successful in the endeavor? When has addicting markets to stimulus like a heroin dealer ever led to “recovery”? When has this kind of behavior ever NOT created massive fiscal bubbles, a steady degradation of the host society, or outright calamity?

Suddenly, according to the MSM, China’s economy does affect us. Not only that, but China is to blame for all the ills of the globally interdependent economic structure. And, the mere mention that the Fed might delay the end of near zero interest rates in September by a Federal Reserve stooge recently sent markets up 600 points after a week-long bloodbath; meaning, the potential for any interest rate increase no mater how small also has wider implications for markets.

The truth is, the crash in global stocks which will undoubtedly continue over the next several months despite any delays on ZIRP by the Fed is a product of universal decay in fiscal infrastructure. Nearly every single nation on this planet, every sovereign economy, has allowed central and international banks to poison every aspect of their respective systems with debt and manipulation. This is not a “contagion” problem, it is a systemic problem to every economy across the world.

China’s crash matters not because it is causing all other economies to crash. It matters because China is the largest importer/exporter in the world and it is a litmus test for the financial health of every other country. If China is failing, it means we are not consuming, and if we are not consuming, then we must be broke. China’s crash portends our own far worse economic conditions. THAT is why western markets have been crumbling along with China’s despite the assumptions of the mainstream.

China’s Rate Cuts Will Stop The Crash

No they won’t. China has cut rates five times since last November and this has done nothing to stem the tide of their market collapse. I’m not sure why anyone would think that a new rate cut would accomplish anything besides perhaps a brief respite from the continuing avalanche.

It’s Not A Crash, It’s Just The End Of A “Market Cycle”

This is the most ignorant non-explanation I think I have ever heard. There is no such thing as a “market cycle” when your markets are supported partially or fully by fiat manipulation. Our market is in no way a free market, thus, it cannot behave like a free market, and thus, it is a stunted market with no identifiable cycles.

Swings in markets of up to 5%-6% to the downside or upside (sometimes both in a single day) are not part of a normal cycle. They are a sign of cancerous volatility that comes from an economy on the brink of disaster.

The last few years have been seemingly endless market bliss in which any idiot day trader could not go wrong as long as he “bought the dip” while Fed monetary intervention stayed the course. This is also not normal, even in the so-called “new normal”. Yes, the current equities turmoil is an inevitable result of manipulated markets, false statistics, and misplaced hopes, but it is indeed a tangible crash in the making. It is in no way an example of a predictable and non-threatening “market cycle”, and the fact that mainstream talking heads and the people who parrot them had absolutely no clue it was coming is only further evidence of this.

The Fed Will Never Raise Rates

Don’t count on it. Public statements by globalist entities like the IMF on China, for example, have argued that their current crisis is merely part of the “new normal”; a future in which stagnant growth and reduced living standards is the way things are supposed to be. I expect the Fed will use the same exact argument to support the end of zero interest rates in the U.S., claiming that the decline of American wealth and living standards is a natural part of the new economic world order we are entering.

That’s right, mark my words, one day soon the Fed, the IMF, the BIS and others will attempt to convince the American people that the erosion of the economy and the loss of world reserve status is actually a “good thing”. They will claim that a strong dollar is the cause of all our economic pain and that a loss in value is necessary. In the meantime they will, of course, downplay the tragedies that will result as the shift toward dollar devaluation smashes down on the heads of the populace.

A rate hike may not occur in September. In fact, as I predicted in my last article, the Fed is already hinting at a delay in order to boost markets, or at least slow down the current carnage to a more manageable level. But, they WILL raise rates in the near term, likely before the end of this year after a few high tension meetings in which the financial world will sit anxiously waiting for the word on high. Why would they raise rates? Some people just don’t seem to grasp the fact that the job of the Federal Reserve is to destroy the American economic system, not protect it. Once you understand this dynamic then everything the central bank does makes perfect sense.

A rate increase will occur exactly because that is what is needed to further destabilize U.S. market psychology to make way for the “great economic reset” that the IMF and Christine Lagarde are so fond of promoting. Beyond this, many people seem to be forgetting that ZIRP is still operating, yet, volatility is trending negative anyway. Remember when everyone was ready to put on their ‘Dow 20,000′ hat, certain in the omnipotence of central bank stimulus and QE infinity? Yeah…clearly that was a pipe dream.

ZIRP has run it’s course. It is no longer feeding the markets as it once did and the fundamentals are too obvious to deny.

The globalists at the Bank for International Settlements in spring openly deemed the existence of low interest rate policies a potential trigger for crisis. Their statements correlate with the BIS tendency to “predict” terrible market events they helped to create while at the same time misrepresenting the reasons behind them.

The point is, ZIRP has done the job it was meant to do. There is no longer any reason for the Fed to leave it in place.

Get Ready For QE4

Again, don’t count on it. Or at the very least, don’t expect renewed QE to have any lasting effect on the market if it is initiated.

There is truly no point to the launch of a fourth QE program, but do expect that the Fed will plant the possibility in the media every once in a while to mislead investors. First, the Fed knows that it would be an open admission that the last three QE’s were an utter failure, and while their job is to dismantle the U.S. economy, I don’t think they are looking to take immediate blame for the whole mess. QE4 would be as much a disaster as the ECB’s last stimulus program was in Europe, not to mention the past several stimulus actions by the PBOC in China. I’ll say it one more time – fiat stimulus has a shelf life, and that shelf life is over for the entire globe. The days of artificially supported markets are nearly done and they are never coming back again.

I see little advantage for the Fed to bring QE4 into the picture. If the goal is to derail the dollar, that action is already well underway as the IMF carefully sets the stage for the Yuan to enter the SDR global currency basket next year, threatening the dollar’s world reserve status. China also continues to dump hundreds of billions in U.S. treasuries inevitably leading to a rush to a dump of treasuries by other nations. The dollar is a dead currency walking, and the Fed won’t even have to print Weimar Germany-style in order to kill it.

It’s Not As Bad As It Seems

Yes, it is exactly as bad as it seems if not worse. When the Dow can open 1000 points down on a Monday and China can lose all of its gains for 2015 in the span of a few weeks despite institutionalized stimulus measures lasting years, then something is very wrong. This is not a “hiccup”. This is not a correction which has already hit bottom. This is only the beginning of the end.

Stocks are not a predictive indicator. They do not follow positive or negative fundamentals. Stocks do not crash before or during the development of an ailing economy. Stocks crash after the economy has already gone comatose. Stocks crash when the system is no longer salvageable. Since 2008, nothing in the global financial structure has been salvaged and now the central banking edifice is either unable or unwilling (I believe both) to supply the tools to allow us even to pretend that it can be salvaged. We’re going to feel the hurt now, all while the establishment tells us the whole thing is in our heads.

American taxpayers spend nearly $10 million a day fighting ISIS

Smoke billowing from the Baal Shamin temple in Syria’s ancient city of Palmyra © Welayat Homs / AFP

The Pentagon has spent nearly $4 billion fighting Islamic State across Syria and Iraq since operations began a year ago, according to statistics released this week. The average daily cost of the campaign is $9.9 million, or $6,785 a minute.

A colossal $3.7 billion in expenses have been racked up since the campaign began on August 8, 2014 up to August 15 of this year.

President Barack Obama authorized a bombing campaign against the Islamic State (IS, also known as ISIS/ISIL) last year, sending 3,400 American soldiers to Iraq to advise and train Iraqi forces.

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Since Operation Inherent Resolve began, the US and its coalition allies say they have conducted a total of over 6,000 airstrikes in the region. Of those strikes, nearly 4,000 have been made in Iraq and nearly 2,500 in Syria.

Pentagon statistics claim those strikes have damaged or destroyed more than 10,000 targets, including tanks, Humvees, staging areas, and oil infrastructure. If the total cost of the campaign to date is calculated based on actual damage, those strikes cost an estimated $400,000 per successful hit.

Pentagon officials maintain that the year-long campaign has had some success, enabling Iraqi forces to reclaim some areas, but strategic cities like Mosul and Ramadi remain under IS control, and the airstrikes have done little to uproot the terror group’s hold in Syria.

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In a press briefing at the end of July, Marine Corps Brigadier General Kevin J. Killea, chief of staff for Operation Inherent Resolve, said the campaign has made progress.

“This is not the same fight as it was when it started, and I look at that based on the effects that we have had on ISIL,” Killea told reporters.

“They are much more territorial, meaning they’re defending more than they’re on the offensive. Their attacks are smaller, they are more focused, and they’re less enduring.”

“All you have to do is look at the gains that have been made on the ground recently to see that there is an effect, and there is progress,” he added.

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The cost of the campaign against IS has been released as the Pentagon’s inspector general is investigating allegations by a Department of Defense whistleblower that intelligence regarding the success of the campaign was altered, according to a report published in the New York Times.

The investigation started after at least one civilian analyst working for the Defense Intelligence Agency alleged that officials coordinating the anti-IS campaign at US Central Command are “improperly reworking the conclusions of intelligence assessments” that are later handed over to top policy-makers, including President Obama.

Speaking on the condition of anonymity, officials told the Times that the investigation is trying to establish if military officials changed the conclusions of drafted intelligence assessments before passing them on. If the allegations turn out to be true, it might explain why assessments of the military campaign’s effectiveness vary greatly.