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.

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


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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China is rising as the US declines

Posted by seumasach on October 21, 2015

Britain can’t ignore this reality


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.


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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


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


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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Central banks have become a corrupting force

Posted by seumasach on August 25, 2015

Paul Craig Roberts

Institute for Political Economy

23rd August, 2015

Are we witnessing the corruption of central banks? Are we observing the money-creating powers of central banks being used to drive up prices in the stock market for the benefit of the mega-rich?

These questions came to mind when we learned that the central bank of Switzerland, the Swiss National Bank, purchased 3,300,000 shares of Apple stock in the first quarter of this year, adding 500,000 shares in the second quarter. Smart money would have been selling, not buying.

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The left’s anti-European turn

Posted by seumasach on July 19, 2015

Cailean Bochanan

19th July, 2015

Just before the Greek referendum George Galloway tweeted:

“Greek Partisans will vote NO in Sunday’s referendum. There is European life after the Euro. No more bail-outs for bankers. Go for growth!”
Galloway would , of course, have been equally vehement in his opposition to the bail-out of the City of London in 2008. Well, actually, no. In statement made at the time he said:

“In the midst of this financial crisis which threatens us all, at last the government is taking action which may begin to shore up the banking system. I hope that it is not, as many in the City are saying, “too little, too late”. “It was essential the government propped up the banks’ capital base, it had to provide lending to banks that can’t borrow money from others to pay their debts. And we had to have a guarantee of bank debts, if we were not to see a full-scale financial panic and the collapse of the whole debit and credit system. But having put the money in, the government now needs to force the banks to pay the public back in return.”

Leaving aside the piety at the end this was simply a full endorsement of the bail-out. In an extraordinary but characteristic bit of sophistry Galloway was able to spin the bailout as a break from neoliberalism, as a break “from the outdated dogmas of free market economics.”

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Germany floats Greek euro “time-out” without more reforms

Posted by seumasach on July 11, 2015


11th July, 2015

The German government has argued that Greece could take a five-year “time-out” from the euro zone and have some of its debts written off if Athens fails to improve proposals it has made for a bailout.

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