In These New Times

A new paradigm for a post-imperial world

Archive for the ‘Financial crisis’ Category

The financial system established in England after 1688, based on usurious lending to the state by private bankers, is reaching its final blowout in the form of a series of devastating bubbles and a massive bailout of the financiers with public money. But the issuance of money doesn’t have to be in the hands of a private consortium: another credit system is possible.

Pound plunges to five-year low as manufacturing performance is worse than expected

Posted by seumasach on January 12, 2016

The exposure of the chronic weakness of the UK economy is long overdue: a bombed-out high street, empty pubs, falling share prices, the collapse of the property bubble and local government insolvency are all on the horizon. But the negative current account is the icing on the cake. Presumably, this reflects lack of interest in UK government bonds and the continued need to monetise them i.e print money to buy them: hence the inevitability of a sterling crisis with an accompanying inflationary surge or rising interest rates which will trigger the collapse of the financial sector. We are indeed cursed by interesting times!

Telegraph

12th January, 2016

Sterling plunged to a five-and-a-half year low against the US dollar on Tuesday, as the UK’s manufacturing sector shrunk unexpectedly.

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Posted in UK economy, Uncategorized | Tagged: | Leave a Comment »

UK house prices to crash as global asset prices unravel

Posted by seumasach on January 11, 2016

Telegraph

10th January, 2016

Asset prices around the world are collapsing as the global economy slows and UK housing will not escape

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Posted in UK economy | Tagged: | Leave a Comment »

Manufacturer of Brimstone missile could be main beneficiary of UK airstrikes in Syria

Posted by seumasach on December 6, 2015

Herald

6th December, 2015

MBDA, the manufacturer of the British Brimstone missile, is set to be the main economic beneficiary of last week’s parliamentary decision authorising UK airstrikes in Syria.

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Posted in UK economy | Tagged: | Leave a Comment »

Global trade just snapped

Posted by seumasach on November 22, 2015

Zero Hedge

21st November, 2015

Container Freight Rates Plummet 70% In 3 Weeks

This market is looking like a disaster and the rates are a reflection of that,” warns one of the world’s largest shipbrokers, but while The Baltic Dry Freight Index gets all the headlines – having collapsed to all-time record lows this week – it is the spefics below that headline that are truly terrifying. At a time of typical seasonal strength for freight and thus global trade around the world, Reuters reports that spot rates for transporting containers from Asia to Northern Europe have crashed a stunning 70% in the last 3 weeks alone.

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New City of London project to go ahead

Posted by seumasach on October 22, 2015

It will be interesting to learn more about this new financial centre.

China Builder Revives $2.6 Billion London Project After Xi Visit

Bloomberg

22nd October, 2015

Chinese developer ABP (China) Holdings Group Ltd. has brought in a unit of state-backed Citic Group as an investor in a project to transform London’s Royal Albert Dock into a financial center after the estimated cost surged and work was delayed.

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Posted in Multipolar world, UK economy | Tagged: | Leave a Comment »

China is rising as the US declines

Posted by seumasach on October 21, 2015

Britain can’t ignore this reality

Guardian

19th October, 2015

Who would have guessed just three years ago that the David Camerongovernment would be the author of the boldest change in British foreign policy since the second world war? That is exactly what is now unfolding.

 

Posted in Multipolar world, UK economy | Tagged: , , | Leave a Comment »

The “Great Unwind” has arrived

Posted by seumasach on September 7, 2015

Zero Hedge

6th September, 2015

It’s my overarching thesis that the world is in the waning days of a historic multi-decade experiment in unfettered finance. As I have posited over the years, international finance has for too long been effectively operating without constraints on either the quantity or the quality of Credit issued. From the perspective of unsound finance on a globalized basis, this period has been unique. History, however, is replete with isolated episodes of booms fueled by bouts of unsound money and Credit – monetary fiascos inevitably ending in disaster. I see discomforting confirmation that the current historic global monetary fiasco’s disaster phase is now unfolding. It is within this context that readers should view recent market instability.

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The half-dead zombie markets are feeding on the living

Posted by seumasach on August 27, 2015

Eamonn McCann

Irish Times

27th August, 2015

As the China crisis ripples and rumbles across the world, markets everywhere have been afflicted by a bad case of the vapours. And when investors are anxious, they don’t invest. The diagnosis came from a qualified expert on Channel 4 News.

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Oil industry needs half a trillion dollars to endure price slump

Posted by seumasach on August 27, 2015

GEAB

26th August, 2015

At a time when the oil price is languishing at its lowest level in six years, producers need to find half a trillion dollars to repay debt. Some might not make it.

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What would happen if everyone joins China in dumping Treasurys?

Posted by seumasach on August 27, 2015

Zero Hedge

26th August, 2015

On Tuesday evening in “Devaluation Stunner: China Has Dumped $100 Billion In Treasurys In The Past Two Weeks,” we quantified the cost of China’s near daily open FX operations in support of the yuan. 

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China can ride out this crisis. But we’re on course for another crash

Posted by seumasach on August 27, 2015

Seumas Milne

Guardian

It may not yet be the moment to get in supplies of tinned food. That was whatGordon Brown’s former adviser during the 2008 crash, Damian McBride, suggested on Monday as stock markets crashed from Shanghai to New York and $1tn was wiped off the value of shares in one day. But seven years after the collapse of Lehman Brothers brought down the global financial system and plunged half the world into a slump, it’s scarcely alarmist to see the financial panic as the harbinger of a new crisis in a still crippled world economy.

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