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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.

UK trade deficit widens as fall in sterling fails to improve export sales

Posted by seumasach on August 11, 2017

Guardian

10th August, 2017

Britain’s trade position with the rest of the world worsened in June as the sharp fall in the value of the pound since the Brexit vote failed to lift sales of UK-made goods abroad.

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Trump shows realism toward Iran

Posted by seumasach on July 19, 2017

Trump, like his predecessor, Obama, seems destined to preside over the demise of all neoconservative plans. At the same time, like Obama, he appears unable to break free of the “swamp”, the deep state quagmire, and actually define US interests in positive terms through an embrace of the emerging multipolar reality. Thus, the neocons have made sure that if they can’t lead no one can. If it continues, this paralysis means that there is no soft landing for bankrupt America, no reset of the global financial system: the next phase of the financial crisis is imminent and the US economy and the dollar will be right in the eye of the storm.

M.K.Bhadrakumar

Indian Punchline

18th July, 2017

The United States’ regional strategies in the Middle East face multiple challenges and it needs strong nerves and robust realism not to overreact. Importantly, the temptation to display ‘muscular’ diplomacy must be curbed. Thus, the decision by the Trump administration on Monday to certify for the second time Iran’s compliance with the July 2015 nuclear deal signifies strategic maturity.

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China’s next step to destroy the dollar

Posted by seumasach on June 3, 2017

Of course, China’s goal is not to destroy the dollar but to negotiate a new global monetary system, a currency reset, in which the dollar will continue to play a role, albeit a greatly reduced one. A yuan for Saudi oil deal would help to focus Trump’s mind on outcome, the best one he can hope for.

Daily Reckoning

31st May, 2017

China is currently modifying the terms of its oil trade with Saudi Arabia. Specifically, China is working on a deal to pay for Saudi oil using Chinese yuan. This effort poses a direct threat to the security of the dollar.

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Is Bitcoin standing In for gold?

Posted by seumasach on June 1, 2017

Paul Craig Roberts

Institute for Political Economy

31st May, 2017

In a series of articles posted on http://www.paulcraigroberts.org, we have proven to our satisfaction that the prices of gold and silver are manipulated by the bullion banks acting as agents for the Federal Reserve.

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Foreigners are dumping U.S. debt at a record pace

Posted by seumasach on January 25, 2017

The dollars will also be coming home. What this is leading too is the non-acceptance of dollars as international payment. However, Trump can resolve the debt issue through international agreement, above all, with China: a global reset,  a trade-off between the declining hegemon and the new leader of globalization.

Economic Collapse

22nd January, 2017

While most of the country has been focused on the inauguration of Donald Trump, a very real crisis has been brewing behind the scenes. Foreigners are dumping U.S. debt at a faster rate than we have ever seen before, and U.S. Treasury yields have been rising. This is potentially a massive problem, because our entire debt-fueled standard of living is dependent on foreigners lending us gigantic mountains of money at ultra-low interest rates. If the average rate of interest on U.S. government debt just got back to 5 percent, which would still be below the long-term average, we would be paying out about a trillion dollars a year just in interest on the national debt. If foreigners keep dumping our debt and if Treasury yields keep climbing, a major financial implosion of historic proportions is absolutely guaranteed within the next four years.

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China dumps treasuries

Posted by seumasach on December 17, 2016

Foreign Central Banks Liquidate A Record $403 Billion In US Paper

Zero Hedge

16th December, 2016

One month ago, when we last looked at the Fed’s update of Treasuries held in custody, we noted something troubling: the number had continued to drop sharply, declining by another $14 billion in one week, and pushing the total amount of custodial paper to $2.788 trillion, the lowest since 2012. One month later, we refresh this chart and find that in last week’s update, there is finally some good news: foreign central banks finally bought some US paper held in the Fed’s custody account, which following months of liquidation, rose over the past two weeks by $23 billion, the biggest two-week advance since November of 2016, pushing the total amount of custodial paper to $2.816 trillion, the highest since early October.

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Foreign takeovers proliferate post-Brexit

Posted by seumasach on August 12, 2016

When you have massive debts and you’re never anywhere near to getting to0 the end of the month there are three logical options. Firstly, you can enter into a deal with your creditors, in this case, primarily, China. This is the now discarded Osborne option after the lately departed Chancellor of the Exchequer. Secondly, you can “take out” your creditors. This is the al Capone/Hillary Clinton option. Or, finally, you wait for the bailiffs. This is are post-Brexit option. As the pound falls the Chinese and others will simply buy up the UK in the Great British sell-off. In a way, it is good news since they could simply convert the sterling reserves to gold or other assets, leaving the pound to sink even further. By triggering the regionalization of the UK the Scottish independence referendum has helped to prepare for this scenario by dividing the country into bite-sized units forced to sell assets to make ends meet. Regional administrations can also easily be dominated by overseas interests. I have long argued for the first approach whereby we continue to act as a sovereign nation by resolving the debt issue through negotiations at state to state level. That approach has been spurned and the Panarin scenario looms. Of course, it’s not too late to change course.

From semiconductors to soccer, foreign takeovers are good news for Britain post-Brexit

CityAM

12th August, 2016

While alarmist in tone, this narrative is in part borne out by data – stats recently released by Thomson Reuters point to an increase in the value of foreign takeovers in the month after the UK’s vote to leave the EU. Almost 60 transactions totalling $34.5bn were struck by foreign companies for British firms in the month after 23 June, compared with 79 deals worth $4.3bn in the month leading up to the vote.

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UK’s financial services sector will retain its passporting rights despite Brexit, Boris Johnson says

Posted by seumasach on July 23, 2016

Johnson’s “everything will remain the same despite Brexit” argument reflects either that he is completely delusional or that he is strongly hinting that Brexit is not going to happen at all. Regarding passporting rights, that will be in the hands of the Europeans and it is no secret that Paris and Frankfurt are vying to succeed London as Europe’s financial sector. His assurances lack all credibility and reflect the bizarre post-Brexit limbo into which we have been cast. Meanwhile, as the incoming capital flows on which we are dependent dry up, the perspectives for the UK economy and living standards are dire in the extreme.

IBTimes

23rd July, 2016

London will remain a global financial centre, according to Boris Johnson, the UK’s newly appointed foreign secretary. Speaking at the United Nations in New York, Johnson dismissed fears over the country’s financial services sectors losing its passporting rights amid the Brexit vote.

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China, Britain and Brexit

Posted by seumasach on June 30, 2016

As I have argue insistently on this blog, the partnership with China is the only solution to Britain’s deeply entrenched economic problems. Brexit would anyway place it at risk but it’s much worse than that: Britain is now run by people openly hostile to Europe. The “golden relationship is now neither politically nor economically in China’s interest. The reality of Britain’s economic plight will now be cruelly laid bare.

Vote to leave EU robs ‘golden relationship’ of its lustre

Guardian

30th June, 2016

It was all sealed over a pint of Greene King IPA.

One Thursday evening in October 2015, David Cameron strode into a Buckinghamshire pub with another of the world’s most powerful men to toast the beginning of a golden era of relations between the UK and China.

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Britain courts fate on Brexit with worst external deficit in history

Posted by seumasach on April 5, 2016

Arch-Eurosceptic Evans-Pritchard seems to have lost his nerve on Brexit. That a”No” vote is a vote for disaster is increasingly clear. However, a “Yes” vote in itself will not resolve Britain’s deep-seated problems. We await a positive programme for the reconstruction of British society and economy so far absent from the debate.

Ambrose Evans-Pritchard

Telegraph

Britain’s current account deficit is the worst ever recorded in peace-time since the Bank of England started collecting records in 1772 under the reign of George III.

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The UK could learn a lot from Germany’s long-term industrial strategy

Posted by seumasach on March 31, 2016

With a consensus emerging that the British steel industry is a strategic asset which must be saved and a leader of the opposition calling for a “strategic state” and a”national investment bank”, the post- thatcherite consensus on non-interventionism is breaking down. This is a very recent shift and a very sharp check on the opposite trend embodied in the Tory/SNP regionalisation of Britain project. Both centripetal and centrifugal forces are currently vying for primacy and yet it is clear that central control is necesarry to rebuild Britain’s industrial base.

Larry Elliot

Guardian

30th March, 2016
As a share of its economy, Germany’s manufacturing sector is twice the size of Britain’s – 23% of national GDP, compared with 11%, according to the World Bank. Unlike Britain, it runs a large surplus on trade in goods. The German steel industry has not buckled under the pressure of dumping by China.

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