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.
Posted by seumasach on March 19, 2023
Alastair MacLeod
Goldmoney
16th March, 2023
Following the day-to-day twists and turns of a banking crisis can make us lose sight of the bigger picture. It is tempting to think that the banking authorities are in control, and they will secure the integrity of their commercial banking networks. Unfolding events may or may not prove this to be true.
The bigger picture is that the forty-year decline in interest rates is over, as well as the financial bubble that has built up with it. And we should also be aware that there is a cycle of bank credit, the downturn of which is long overdue. The two have come together to create chaos in credit markets
The reality is that central banks have already lost control over monetary policy and interest rates. Interest rates are now being driven by contracting bank credit, not by monetary policy. The point which is commonly missed is that contracting credit at a time when credit demand is still increasing inevitably leads to higher interest rates and bad debts.
Having lost control over interest rates, the Fed has been forced into its much-heralded pivot, not by reducing interest rates, but by offering to buy Treasury and Agency debt at face value whatever the coupon and maturity. This rescues banks from the immediate fate that collapsed Silicon Valley Bank. And it makes it easier for the US Treasury to fund its deficit while containing borrowing costs.
But it is highly inflationary.
The pivot has now been made. The Fed has decided to rescue financial markets at the expense of the currency. Other central banks can be expected to follow suit to help rescue their banking systems. But in the process, they are writing the death warrants for their fiat currencies.
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Posted in Financial crisis | Tagged: dollar collapse, end of dollar as global reserve currency, financial collapse, no more bailouts-put banks into receivership | Leave a Comment »
Posted by seumasach on September 16, 2022
The Saker
12th July, 2022
“It may seem strange to invite an economist to give a keynote speech to a conference of the social sciences. Economists have been characterized as autistic and anti-social in the popular press for good reason. They are trained to think abstractly and use a priori deduction – based on how they think societies should develop. Today’s mainstream economists look at neoliberal privatization and free-market ideals as leading society’s income and wealth to settle at an optimum equilibrium without any need for government regulation – especially not of credit and debt.”
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Posted by seumasach on May 11, 2021
David P.Goldman
Asia Times
10th May, 2021
“Today the US Treasury market is the weak link in the financial system, supported only by the central bank’s monetization of debt. If the extreme fiscal profligacy of the Biden administration prompts private investors to exit the Treasury market, there will be no safe assets left in dollar financial markets.”
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Posted in Financial crisis | Tagged: dollar decline, hyperinflation, quantitative easing, rising interest rates | Leave a Comment »
Posted by seumasach on December 8, 2020
Thanks to the machinations of the US ruling class what was a terminal financial crisis has become an existential crisis for the American people and a civilizational collapse
Michael Snyder
The Most Important News
6th December, 2020
We already knew that this was going to be the worst winter for the U.S. economy since the Great Depression of the 1930s, but now a new round of lockdowns threatens to rip the guts out of hundreds of thousands of small businesses all around the country. As I write this article, 33 million peopleare under “stay-at-home orders” in California alone. With each passing day, state governments are implementing even more new restrictions, and those new restrictions are going to increasingly choke the life out of economic activity in this nation.
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Posted in Financial crisis | Tagged: coronacollapse, economic collapse | Leave a Comment »
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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Posted in UK economy | Leave a Comment »
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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Posted in Financial crisis | Tagged: dollar collapse, End of empire, financial collapse | Leave a Comment »
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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Posted in Financial crisis | Tagged: new global financial architecture, new global financial system | Leave a Comment »
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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Posted in Financial crisis | Tagged: cryptocurrencies, gold manipulation | Leave a Comment »
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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Posted in Financial crisis | Tagged: dollar collapse, End of empire, new global financial architecture | Leave a Comment »
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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Posted in Currency Wars, Financial crisis | Tagged: US treasuries bubble | Leave a Comment »
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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Posted in brexit crisis, UK economy | Tagged: foreign takeovers, The Great British Sell-Off, The Panarin scenario | Leave a Comment »
In These New Times 