Crash could ‘destroy capitalism as we know it’…

Capture

The world can’t afford another financial crash – it could destroy capitalism as we know it

A new economic crisis would trigger a political backlash in Britain, Europe and the United States which could drag us all down into poverty

By 

They bounce back after terrorist attacks, pick themselves up after earthquakes and cope with pandemics such as Zika. They can even handle years of economic uncertainty, stagnant wages and sky-high unemployment. But no developed nation today could possibly tolerate another wholesale banking crisis and proper, blood and guts recession.

We are too fragile, fiscally as well as psychologically. Our economies, cultures and polities are still paying a heavy price for the Great Recession; another collapse, especially were it to be accompanied by a fresh banking bailout by the taxpayer, would trigger a cataclysmic, uncontrollable backlash.

Call this a protest? You ain’t seen nothing yet Photo: PAWEL KOPCZYNSKI / REUTERS

The public, whose faith in elites and the private sector was rattled after 2007-09, would simply not wear it. Its anger would be so explosive, so-all encompassing that it would threaten the very survival of free trade, of globalisation and of the market-based economy. There would be calls for wage and price controls, punitive, ultra-progressive taxes, a war on the City and arbitrary jail sentences.

Two men walk along the road to Los Angeles in 1937, during the Great Depression

For fear of allowing extremist or populist parties through the door,mainstream politicians would end up adopting much of this agenda, with devastating implications for our long-term prosperity. Central banks, in desperation, would embrace the purest form of money-printing: they would start giving consumers actual cash to spend, temporarily turbo-charging demand while destroying any remaining respect for the idea that money needs to be earned.

History never repeats itself exactly, but the last time a recession was met by pure, unadulterated populism was in the Thirties, when the Americans turned a stock market crash and a series of monetary policy blunders into a depression. President Herbert Hoover signed into law the Smoot-Hawley Tariff Act, dreamt up by two economically illiterate Republican senators, slapping massive taxes on the imports of 20,000 goods and triggering a global trade war. It was perhaps the most economically destructive piece of legislation ever devised, and it took until the Nineties before the damage was finally erased.

“Last year was the worst for global growth since the crash and this year opens with a dangerous cocktail of new threats from around the world. For Britain, the only antidote to that is confronting complacency and delivering the plan we’ve set out.”
George Osborne

That is why we must all hope that the turmoil of recent days in the financial markets, and the increasingly worrying economic news, will turn out to be a false alarm. It would certainly be ridiculously premature, at this stage, to call a recession, let alone a financial crisis. But at the very least we are seeing a major dose of the “dangerous cocktail of new threats”rightly identified at the turn of the year by George Osborne, a development which will have political repercussions even if the economy eventually muddles through.

 Four reasons why stock markets have been getting whacked

Investors in equities, including millions of people with private pensions and Isas, have already lost a fortune; they won’t be too happy when they begin to realise the extent of the damage. Growth is slowing everywhere, and the monetary pump-priming of the past few years is looking increasingly ineffective. Traders believe that interest rates won’t go up in Britain until 2019, and there is increasing talk that negative interest rates could become necessary across the developed world, further crippling savers.

No positive spin can be put on any of the latest developments. Banking shares have taken a beating; China’s slowdown continues; Maersk, the shipping giant, believes that conditions for world trade are worse than in 2008-09; industrial production slumped in December, not just in Britain but more so in France and Germany; energy prices are devastating Middle Eastern and Russian economies; and sterling has tumbled.

It is always a sure sign that panic has broken out when financial markets respond badly to all possible scenarios. The prospect of higher interest rates? Sell, sell, sell. A chance of lower rates? Sell, sell and sell again. A rise in the price of oil is met with as much angst as a decline. The financial markets remain addicted to help from central banks: they are desperate for yet more interventions, regardless of the consequences on the pricing of risk, the allocation of resources or the creation of unsustainable bubbles that only enrich the owners of assets.

This is exactly the tonic that the populists have been waiting for. Despite their dramatic emergence, they have so far failed to make a real breakthrough. The SNP was unable to win the Scottish referendum and the National Front didn’t gain a single region in France. Mariano Rajoy remains Spain’s prime minister, and anti-establishment parties have been thwarted in Germany. Even lighter forms of populism, such as Ed Miliband’s, were rejected. Syriza’s victory in Greece was one of the few genuine populist triumphs; but it was soon crushed by the combined might of Brussels and Frankfurt.

The Republican presidential nominee often proclaims that his presidency will make America a “great” country again

This could be about to change. The fact that Donald Trump and Bernie Sanders both won their respective New Hampshire primaries is certainly one remarkable indication of the state of mind of many US political activists. economic relapse would help Marine Le Pen’s chances in next year’s French presidential election, and further undermine Angela Merkel’s sinking popularity in Germany.

But it is in Britain that the immediate impact could be the greatest. The Brexit debate is already being overshadowed by the migration crisis, undermining the Government’s attempts at portraying a Remain vote as a safe, low-risk option; a sustained bout of economic volatility would further ruin the pro-EU case, especially given that the eurozone, rather than the City, is likely to emerge as one of the epicentres of any fresh crisis. It would be hard for bosses of large financial giants to credibly tell the electorate to vote Remain when their own businesses are in crisis.

Britain will noticeably outperform the EU this year: our labour market remains strong and our banks far better capitalised than many of their eurozone competitors, too many of which are still sitting on massive amounts of bad debt. The Chinese slowdown is worse for Germany than for us. But while the Eurosceptic cause to which some of us are partial is likely to benefit from the turmoil, it would be madness for anybody who cares about this country’s future to feel anything but dread towards the economic threats facing the world. The sorry truth is ts very little that governments can do at this stage, apart from battening down the hatches and hoping that central banks succeed in kicking our problems even further down the road.

LINES AROUND THE BLOCK TO BUY GOLD IN LONDON; BANKS PLACING “UNUSUALLY LARGE ORDERS FOR PHYSICAL”

Screen Shot 2016-02-11 at 3.32.34 PM

Best quarterly performance for gold in 30 years…

Michael Krieger | LibertyBlitzkrieg.comFEBRUARY 11, 2016

First, let’s look at the improved fundamentals. Gold bugs will exasperatingly proclaim that fundamentals have been great for the past four years yet the price plunged anyway, so who cares about fundamentals? To this I would respond with two observations.

First, large institutional investors and sovereign wealth funds have been anticipating a rate hike cycle for a very long time now. They didn’t know when, but they expected it. The fact that the gold bugs never believed this is irrelevant; what matters is that big money believed it, and it was perceived to be very gold negative. In their minds, this anticipated rate hike cycle would confirm that things were getting back to normal, and if things are normal you don’t need to own gold, right?
The problem is that this assumption is quickly being called into question. Sure the Fed hiked rates once, but it is starting to look more and more like a policy error. Meanwhile, other major central banks around the world are going in the opposite direction, toward negative rates. I am a huge believer in market psychology, and the psychology dominating the minds of most institutional investors over the past few years has been that things were slowly getting back to normal. This has weighed on institutional demand for gold in a big way, and been a meaningful factor in the bear market (manipulation aside).

If this psychology shifts, the shift back into gold could be very meaningful.
While that backdrop is interesting in its own right, what may make the move into gold that much more explosive is the lack of alternative investments…

– From the February 3, 2016 post: GOLD – It’s Time to Pay Attention
What a difference a couple of weeks can make. The Telegraph is reporting the following:
BullionByPost, Britain’s biggest online gold dealer, said it has already taken record-day sales of £5.6m as traders pile into gold following fears the world is on the brink of another financial crisis.
Rob Halliday-Stein, founder and managing director of the Birmingham-based company, said takings today had already surpassed the firm’s previous one-day record of £4.4m in October 2014.
BullionByPost, which takes orders of up to £25,000 on the website but takes higher amounts over the phone, explained it had received a few hundred orders overnight and frantic numbers of phone calls this morning.
“The bullion market has been building with interest since the end of last year but this morning things have gone bananas,” said Mr Halliday-Stein. “Some London banks are placing unusually large orders for physical gold.”
London-based ATS Bullion added it had been inundated with orders for the past week. The firm has sold 4,000 gold bars and coins since February 1, a 40pc rise on the same period a year ago when it sold 1,500.
“It’s been crazy – it’s been the best week since 2012. We’ve had people queuing round the block,” said Michael Cooper of ATS Bullion, a family run firm that trades online and also from an outlet in the West End.
But that’s just part of the story. As reported by the World Gold Council, the buying really started to pick up in the fourth quarter, courtesy of the Chinese and central banks. Reuters notes:
Buying by central banks as well as Chinese investors seeking protection from a weakening currency helped lift demand for gold in the final quarter of last year and the trend looks set to continue, the World Gold Council said on Thursday.
Chinese demand for gold coins surged 25 percent in the fourth quarter from a year earlier as consumers sought to protect their wealth after Beijing devalued the yuan currency. But stock market turmoil and a slowing economy knocked consumer sentiment and Chinese demand for gold for jewelry fell 3 percent from a year earlier, WGC said.
Central banks have been buying gold to diversify their reserves away from the U.S. dollar and their purchases edged up to 588.4 tonnes last year, second only to a record high 625.5 tonnes in 2013, the report showed.
Central bank buying accelerated sharply in the second half of last year and jumped 25 percent in the fourth quarter, from a year earlier, as the need to diversify was reinforced by falling oil prices and reduced confidence in the global economy, WGC said.
Chinese demand for gold totaled 985 tonnes last year, followed by India on 849 tonnes. They accounted for nearly 45 percent of total global demand, with consumer demand up 2 percent and 1 percent respectively in those countries.
Think about the lack of gold buying from the U.S. relative to its global wealth and it becomes quite easy to see where the fuel for the next bull market will come from.
Meanwhile, on the supply side…
Global supply of gold fell 4 percent last year to 4,258 tonnes, partly because of slower mine production. Mining companies have scaled back since 2013 in a bid to slash costs and mine production shrank in the fourth quarter of 2015, the first quarterly contraction since 2008, WGC said.

Soros: ‘Putin aims at EU disintegration, threat from Russia bigger than from jihadi attacks’

You are using an outdated browser. Please upgrade your browser to improve your experience.

American and EU leaders are making a “grievous error” by taking Russian President Vladimir Putin for their ally in the fight against Islamic State, billionaire investor George Soros has stated. Putin’s real aim is the EU’s disintegration, Soros alleged.

In an opinion piece for Project-syndicate.org, the billionaire stated that “the best way to [cause the disintegration of the Euro bloc] is to flood the EU with Syrian refugees.”

“There is no reason to believe that [Putin] intervened in Syria in order to aggravate the European refugee crisis,” Soros says. “But once Putin saw the opportunity to hasten the EU’s disintegration, he seized it. He has obfuscated his actions by talking of cooperating against a common enemy, ISIS [Islamic State/IS, also known as ISIL].”

The veteran US investor goes on to say it is “hard to understand” why both Europe and Washington “take Putin at his word” instead of “judging him by his behaviour.”

“The race for survival pits the EU against Putin’s Russia,”Soros says. “ISIS poses a threat to both, but it should not be over-estimated. Attacks mounted by jihadi terrorists, however terrifying, do not compare with the threat emanating from Russia.”

According to Soros, “Putin’s Russia and the EU are engaged in a race against time: The question is which one will collapse first.”

“The Putin regime faces bankruptcy in 2017, when a large part of its foreign debt matures, and political turmoil may erupt sooner than that.”

Soros speculates that the EU may be doomed to disintegrate due to its current problems: “Ever since the financial crisis of 2008 and the subsequent rescue packages for Greece, the EU has learned how to muddle through one crisis after another. But today it is confronted by five or six crises at the same time, which may prove to be too much. As Merkel correctly foresaw, the migration crisis has the potential to destroy the EU.”

He further maintains that “Putin will be able to gain considerable economic benefits from dividing Europe and exploiting the connections with commercial interests and anti-European parties that he has carefully cultivated.”

In October 2015, Hungarian Prime Minister Viktor Orban lashed out at Soros, blaming him for fueling the refugee crisis in Europe. Orban criticized the support Soros had expressed towards refugees from the Middle East heading to Europe, saying that the billionaire undermines stability on the continent.

Soros made a name for himself as the “man who broke the Bank of England” by engaging in questionable Forex hedging and betting against sterling – which made him more than $1 billion in one day in September 1992. Some speculate that Soros has been the beneficiary of insider trader information while making investments. In 2002 a Paris court found Soros guilty of using inside information to profit from the 1988 takeover deal for bank Societe Generale.

In November, the Russian Prosecutor General’s Office recognized George Soros’s Open Society Institute and another affiliated organization as undesirable groups, banning Russian citizens and organizations from participation in any of their projects. Prosecutors said the activities of the Open Society Institute and the Open Society Institute Assistance Foundation were a threat to the foundations of Russia’s constitutional order and national security. The Soros Foundation started working in Russia in the mid-1990s, but wrapped up its active operations in 2003.

Breaking News Global debt 225 trillion stage set New World Order Last days end times news FEB 2016

Published on Feb 11, 2016

Breaking News Global debt 225 trillion stage set NWO New World order Last days end times news update February 2016 LISTEN UP PEOPLE WAKE UP WORLDWIDE ARTIFICIAL FINANCIAL CHAOS Real Time USA national dept http://www.usdebtclock.org/ Real time World debt http://www.usdebtclock.org/world-

The stock market have a really good reset button from -410 .00 they go to -200.00 maybe they end +400 today that’s how manipulate is the system is not working the real truth here is the economic is bad.

You CANNOT go from a recession into a recession….America has been in a non stop recession since 2008…unemployment is over 20% and increasing….major retailers are closing outlets by the hundreds and the FED has pumped out more and more printed, worthless cash….we are headed for a DEPRESSION that will cycle around the planet financially collapsing every country.  Trucks will stop running, stores will have no food, and peoples bank accounts will be frozen and their retirements stolen…..these bastards talk like what is coming is minor…..it will be CATACLYSMIC….and it is unavoidable.

hohoho end times are here

It is about time someone speaks the truth!! Wake up people!! People don’t want to believe that the U.S. can go under, look at the real numbers, the mainstream media and others do not show you the TRUTH!! Why??? Because they don’t want you to panic and take your money out of the banks and 401ks before this happens!!! It is pure DECEIVEMENT!!!

Seven New Refugee Camps and Mosques To Be Built with Taxpayers Money…

Screen Shot 2016-02-11 at 12.02.15 PM

Seven New Refugee Camps and Mosques To Be Built with Taxpayers Money…

Justin Trudeau, Canadian Prime Minister, has ordered his military to draft plans to house over 6,000 Muslims on a long-term basis at their military basis.

The Department of National Defence has set aside hundreds of thousands of dollars for “religious support” that will be used to buy Muslim Korans, prayer mats and foot-washing towels.

According to Infowars, the plans also call for the construction of mosques funded by tax dollars.

The budget for the plans in the city of Quebec alone is more than $46 million for the first six months. The typical migrant family will get a whopping $200,000 a year subsidy that does not include medicare or welfare.

Canadian Armed Forces personnel will have to abandon the fight against ISIS in order to become waiters, chauffeurs and social workers for Muslim migrants as their basis are turned into refugee camps.

If Obama gets his way, this same thing will happen in the United States very soon. SHARE this story if you do NOT want that to happen!

Brilliant idea. We should also build rooms for convicted pedophiles in kindergartens.

What could possibly go wrong.. If I was a Canadian soldier on these bases, I’d hold on to my gun at all times.

Canadians. Your welcome in your home country of Louisiana. You my friends have been sold out too just like America except for one difference. We have guns, which you can legally own in Louisiana. Either that or come across border, buy guns and go back. Protect yourselves, this is a forced resettlement of the middle east by the Dam United Nations. Don’t be fooled, plain and simple strategy.

Trudeau……Canada’s very own , white version of Obama . A race to see who becomes New World Order first.

Why are any muslims coming to the west? There are dozens of muslim countries those fuckers could go to.

ISIS VIDEO: Four-Year Old British Muslim Boy ‘Jihadi Junior’ BLOWS UP 4 in Car Bomb Shouting ‘Allahu Akbar!’ ‘We Will Kill the Kufar!’

Screen Shot 2016-02-11 at 11.48.24 AM

Devout Muslims do this to their children. Imagine what they would do to you and your children.

A lot of jihad slaughter today, but you would never know it from mainstream media outlets.

Shocking new ISIS video shows four-year-old British boy dubbed ‘Jihadi Junior’ blowing up four alleged spies in a car bomb

British boy Isa Dare, four, pushes button that blows up four unarmed men
He declared ‘we will kill kuffar [non believers]’ in last video he appeared in
Seven minute long video shows unarmed men confessing to being spies
Young Dare yells ‘Allahu Akbar’ next to charred remains of car in footage
Senior jihadi in video threatens David Cameron for arming ISIS’ enemies
See more on the latest Islamic State video and the British ‘Jihadi Junior’

By Jay Akbar For Mailonline, February 10, 2016

The four year old British boy dubbed ‘Jihadi Junior’ has been filmed detonating the bomb which kills four ISIS prisoners in the group’s latest execution video.

Isa Dare, the son of Muslim convert Grace ‘Khadija’ Dare from south east London, pushes the button that blows up four alleged spies sitting in a white car behind him.

Standing triumphantly next to the charred remains of the car, his hand raised to the sky, the boy then yells: ‘Allahu Akbar.’

It is the second time the young boy, who was brainwashed after his mother took him to Syria three years ago, has appeared in one of the extremists’ propaganda videos.
jihad junior
Isa Dare (pictured), the four year old British boy dubbed ‘Jihadi Junior’, has been filmed detonating the bomb which kills four ISIS prisoners in the group’s latest execution video
jihad junior 2

His grandfather told of how the child begged him to save him just days before he was forced to appear in the first video last month.

In what was seen as a ‘promotion’ of this latest murderous release, Dare was made to declare: ‘We are going to kill the kuffar [non-believers] over there’ – before pointing to the men killed in today’s video.

Today’s video, which is believed to be shot in ISIS’s de facto capital of Raqqa, was entitled: ‘They are the enemy so be aware of them.’

One by one, each man confessed to either spying on, or conspiring against, ISIS. They were later seen handcuffed to the inside of a car – with a look of utter fear in their eyes.

Before they were killed, the senior ISIS commander standing next to the boy threatened British Prime Minister David Cameron for arming the terror group’s enemies in Syria.

He said: ‘You will never fight us except behind fortified fortresses or behind walls.

‘So no David Cameron, you’ve given the whole world more certainty in this [inaudible]. You’ve only done two things.

http://www.dailymail.co.uk/embed/video/1251595.html

At the end of the video, the young boy is seen yelling ‘Allahu Akbar’ next to the burned remains of the exploded car

jihad2

Four men are seen giving confessions – possibly under duress – before the car is blown to pieces (pictured) in Raqqa, Syria
isis jihad junior

‘Firstly, when you sent your spies to Syria and when you authorised for your men, thousands of miles away, to push a button to kill our brothers who lived in the West.

‘So today, we’re going to kill your spies the same way they helped you kill our brothers.’

As he placed a hand on the young boy’s head, he added: ‘So prepare your army and gather your nations as we too are preparing our army.

Young Dare was brainwashed by ISIS fanatics after his mother, 24, who had links to Lee Rigby’s killer, brought him to the warzone.

His grandfather, Henry Dare, 59, said Isa made a desperate plea for help during a heartbreaking phone call just days before he featured in the barbaric stunt, saying: ‘Please save me.’

It later emerged that Isa’s father had made a desperate attempt to rescue his son after his estranged wife fled to Syria and married an ISIS militant.

Asked if he thought his grandson had any idea what he was saying in the video, Mr Dare – of Deptford, south east London – said: ‘No – he’s a kid.

– See more at: http://pamelageller.com/2016/02/jihadi-junior-blows-up-men.html/#sthash.j0Eatmo5.dpuf

GOLD RUSH AS STOCKS, BONDS PLUNGE

Screen Shot 2016-02-11 at 11.22.23 AM

BY CLARA DENINA

LONDON (Reuters) – Gold surged nearly 4 percent on Thursday to its highest in a year as fears about financial instability, a lower dollar and U.S. Treasury yields persuaded investors to seek refuge in the precious metal.

Traders said financial instability fears were fuelled by European bank shares slumping to multi-year lows, with concerns mounting over banks’ profitability in a low-growth and low-interest rate environment.

Spot gold jumped as much as 3.6 percent to $1,240.90 an ounce, its highest since February 2015, and was up 3 percent at $1,233.70 at 1254 GMT. It is on track for its biggest daily rise since Dec. 1, 2014.

“We have a good explanation for gold’s rally; it is to do with worries about the U.S. economy and the rest of the world,” Macquarie analyst Matthew Turner said.

“Investors are concerned that central banks’ solution (is) negative interest rates or at least not raising rates – and that is gold friendly. The key risk to gold is that the U.S. economy manages to put in a good performance, like it did last year.”

Cautious comments from the head of the U.S. Federal Reserve were taken to mean no near-term interest rate hikes. A slower pace of rate rises keeps down the opportunity cost of holding gold.

Longer-term U.S. debt rallied as investors wagered that the Fed would either be unable to tighten at even a gradual pace, or that if it does increase rates that would only hasten the arrival of recession and deflation.

The benchmark 10-year U.S. Treasury yield fell to lows last seen at the end of 2012 when the Fed was busily printing money. Because gold does not pay interest, the fall in returns from U.S. bonds is seen as positive for the metal. [MKTS/GLOB]

Gold option volatility surged to the highest in more than a year as investors have placed new bullish bets that prices will extend their recent rally.

Gold-backed exchange-traded funds (ETFs) have recorded net inflows since the start of the year, signalling renewed investor interest.

“Investors are returning to gold as a core diversifier and safe haven investment,” James Butterfill, head of research at ETF Securities, said in a note. “Given the increasingly challenging investment and economic environment, we expect this trend to continue.”

Silver rose 1.9 percent to $15.60 an ounce, its highest since November 2015.

Spot platinum climbed 1.2 percent to $938.49 while palladium rose 0.1 percent to $522.50.

(Additional reporting by A.Ananthalakshmi in Singapore; Editing by David Goodman and Susan Thomas)