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.

UK-EU deal preserves Britain’s leeway on market regulations

Posted by seumasach on February 20, 2016

Cameron has not achieved a deal that will guarantee immunity for the City of London from EU regulation. In general, we can suppose that this is the least bad option for the City which fears its demise even more outside of the EU altogether. That is why Britain won’t be leaving the EU- the scare stories have already begun, falling house prices, run on the pound etc. and they will only gain in intensity over the coming weeks.

Reuters

19th February, 2016

European Union leaders reached a deal late on Friday that offers leeway to Britain in applying banking and markets’ regulations, but maintains that there will be a single set of rules for the financial sector within the EU.

Read more

Posted in Battle for Europe, UK economy | Tagged: | Leave a Comment »

Petro-Euro, money-debt, banking crisis, real economy: ten years to seal the fate of an economic-financial system

Posted by seumasach on February 18, 2016

GEAB

16th February, 2016

Precisely ten years ago (to the day), in its second bulletin of February 2006[1], warning about the imminent explosion of a «global systemic crisis”, the GEAB based its opinion on the identification of two strong signs: the end of the publication of the M3 money supply indicator[2] (suggesting a start to unusual degrees of the famous “money printing” which everyone has spoken about ever since); and the Iranian oil bourse launch – a country not yet constrained by international sanctions at the time – but a stock market based on the Euro[3]. These two strong signs enabled the GEAB team of that time to say that something big was about to happen, something which was going to bring into question the foundations of the system in which the economic-financial world was living at the time: the petrodollar and money-debt system.

Read more

Posted in Financial crisis | Tagged: , , | Leave a Comment »

OECD calls for less austerity and more public investment

Posted by seumasach on February 18, 2016

The key word here is “collectively”. Whereas unilateral “people’s quantitative easing” would destabilize currencies and aggravate trade deficits, it is possible if orchestrated internationally. This implies a global currency “reset” – a new global financial architecture which would enable a rebalancing of capital flows, specifically the reversal of outsourcing and the recapitalization of the USA and Britain. It also implies the end of the Anglo-American financial model and its replacement with one which serves the real economy.Rather than the Washington consensus it would be, if you like, the Shanghai consensus, the globalization of the  highly successful Chinese economic model. The Eurasian economic space, from Vladivostok to London, would be the driving force behind all this.

Guardian

18th February, 2016

The OECD has called for its rich-country members to ease up on austerity and collectively agree to spend more on infrastructure projects to boost flagging growth.

Read more

Posted in Financial crisis | Leave a Comment »

“Blunter approach” for too-big-to-fail banks

Posted by seumasach on February 18, 2016

“We cannot tolerate a financial system in which some firms are too big to fail—at least not ones that operate in any form other than that of a very tightly regulated utility.”

 

Reuters

19th November, 2012

It was kind of a big deal coming from the Federal Reserve Bank of New York’s influential president William Dudley. The former Goldman Sachs partner and chief economist has offered a fig leaf to those who say the problem of banks considered too-big-to-fail must be dealt with more aggressively. Some regional Fed presidents have advocated breaking up these institutions. But Dudley and other powerful figures at the central bank have maintained recent financial reforms have already laid the groundwork for resolving the issue.

Read more

Posted in Financial crisis | Tagged: , | Leave a Comment »

US banks still pose ‘nuclear’ threat to economy

Posted by seumasach on February 17, 2016

Another solution, he said, was to turn the big banks into public utilities by “forcing them to hold so much capital that they virtually can’t fail”.

Architect of 2008 bailout says US banks still pose ‘nuclear’ threat to economy

Guardian

16th February, 2016

America’s biggest banks present a “nuclear” threat to the US economy and should be broken up, a Federal Reserve policymaker and architect of the 2008 banking bailout said Tuesday.

Read more

Posted in Financial crisis | Tagged: , | Leave a Comment »

Pound to fall

Posted by seumasach on February 15, 2016

Pound Seen Tumbling Whether U.K. Stays in EU or Seeks `Brexit’

Bloomberg

9th February, 2016

The biggest pound bear expects the currency to lose 17 percent this year. And that’s if Britain remains part of the European Union.

Read more

Posted in UK economy | Leave a Comment »

UK banks vulnerable to global shock, economist warns

Posted by seumasach on February 15, 2016

“There is still a heck of a gap, as you rightly point out, between 13% and the Vickers commission’s 18%, but the Vickers commission was operating on the assumption that there would not be bail-in-able debt, if I can put it that way, which we now have or shall shortly have.”

This is very interesting – he seems to be suggesting that this time round the creditors and, presumably, the shareholders will take the hit. When the banks go under again, as they inevitably must, they will be “bailed-in” rather than bailed -out following, perhaps,  the template established by Michel Barnier at the European Commision. This implies the end of the City of London as we know. We shall see.

Guardian

14th February, 2016

Britain’s banks are vulnerable to a global financial shock despite efforts to shore up their finances, according to the official who led the inquiry into the safety of UK banks following the 2008 crash.

Read more

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

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.

Read more

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

Read more

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.

Read more

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.

Read more

Posted in Financial crisis | Tagged: , | Leave a Comment »

 
Follow

Get every new post delivered to your Inbox.

Join 1,033 other followers

%d bloggers like this: