US, world headed for 25 year depression: Jim Rickards

US, world headed for 25 year depression: Jim Rickards

“When I use the phrase 25 year depression, it sounds extreme but it’s not. We had a 30 year depression in the United States from about 1870 to 1900…The Great Depression lasted from about 1929 to 1940. The U.S. is in a depression today.” Well, it's been in the works for

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Canadian banking haven myth exposed

Canadian banking haven myth exposed

"One of the reasons that Canadians (and international commentators, other finance ministers and global financial institutions) buy this Canadian banking fairy tale is the way the government accounts for the money borrowed to support the banks." The sorry spectacle of Conservat

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Get rid of your mortgage, loans, because interest rates set to rise

Get rid of your mortgage, loans, because interest rates set to rise

Get rid of your loans, guys and gals, because we are going into a high interest rate period. Very high. It will be the equivalent of going into the double digit interest rates we had in the 80s where many people threw their house keys at the bank and we had record numbers of ba

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E-cigarettes save lives, money

E-cigarettes save lives, money

"We know that cigarettes have thousands of chemicals in them and we know that they are killing us. They have been for over a hundred years. So now, the e-cig industry comes along with only one or two chemicals in their mixture and people are freaking out over these as well. Whe

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US inches closer to big bank charges

US inches closer to big bank charges

Federal prosecutors are nearing criminal charges against some of the world’s biggest banks, according to lawyers briefed on the matter, a development that could produce the first guilty plea from a major bank in more than two decades. In doing so, prosecutors are confronting

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Canada’s home sales top predictions; why a real estate crash is inevitable

Canada’s home sales top predictions; why a real estate crash is inevitable

“The assurance of relatively low borrowing costs has likely given home buyers confidence while rising home values have kept new listings at a healthy level. Stable employment has provided some assurance to owners and buyers alike.” Our website is back after many months of

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Comparing today’s recession/depression to the 1980 recession

Comparing today's recession/depression to the 1980 recession

"Much like today, Americans were concerned not only with high unemployment but increasing budget deficits in the early 1980s. A September 1983 Gallup poll found that three-fourths of the public agreed that the federal government's budget deficit was a great threat (42%) or some

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Why savers are getting screwed

Why savers are getting screwed

"Without the intervention of economic policymakers, interest rates would be naturally higher. That would increase the cost of borrowing for businesses and consumers, but there would be some offsetting economic benefits. Savers are getting screwed by the current monetary policy

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Geithner admits USA bankrupt to US Senate

Geithner admits USA bankrupt to US Senate

"Never in our history has Congress failed to increase the debt limit when necessary. Failure to raise the limit would precipitate a default by the United States. Default would effectively impose a significant and long-lasting tax on all Americans and all American businesses

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World economies on verge of currency revaluations to deal with debt

World economies on verge of currency revaluations to deal with debt

"It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning." -- Henry Ford Basically what the world central banks are doing is increasing their money by devaluin

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Is Obama the next Mugabe of Zimbabwe?

Is Obama the next Mugabe of Zimbabwe?

"America, Britain, Japan, Germany, France, Sweden, Holland, Norway, Canada and Australia make up the Fishmongers Group and their meeting on Tuesday will deliberate on the state of the inclusive government, debt relief, public finance administration and the controversial economi

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US raiding foreign countries with dollars, not soldiers

US raiding foreign countries with dollars, not soldiers

""The United States is going to China and saying: we want you to commit economic suicide, just like Japan did. We want you to follow the same thing: we want you to revalue your currency, we want you to squeeze your companies, we want you to go bankrupt,” says Michael Hudson,

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Content By: The Coming Depression Editorial Staff (dates cited below)
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“We’re talking about huge sums of money going to bail out large foreign banks,” said Senator Bernard Sanders, the Vermont independent who wrote the provision in the Dodd-Frank Act that required the Fed disclosures. “Has the Federal Reserve become the central bank of the world? I think that is a question that needs to be examined.” — Senator Bernard Sanders

As Lord Turner, the chairperson of the United Kingdom’s Financial Services Authority, defended his approach to overseeing the £140-billion in exposure of United Kingdom (UK) banks to the battered Irish economy, doubts were raised about whether the Europe-wide “stress tests” of more than 90 banks published in July had been thorough enough.

The results of the tests, overseen by the Committee of European Banking Supervisors (CEBS), were intended to demonstrate to investors that banks did not need to raise more capital. Two of the Irish banks, Allied Irish Banks and Bank of Ireland, that are now waiting for bailouts from the European Union and International Monetary Fund (IMF), were given a clean bill of health.

Robert Talbut, the chief investment officer of Royal London Asset Management, said: “Experience shows the stress tests were not as stressed as they should have been.”

Share prices of banks across Europe have been under pressure as the terms of the Irish bailout are hammered out because of the exposure many banks have to the country and the fear of default. Source

The Jig Is Up!

It was known for years and in the news that banks were hanging it all out and underwriting bubble driven loans faster than trees could be felled to make the paper. The warnings were loud, but the banking industry was under not only less regulation (begun under Clinton, and deepened by Shrub) but also much less scrutiny (Shrub).

“You are a den of vipers! I intend to rout you out, and by the Eternal God I will rout you out. If the people only understood the rank injustice of our money and banking system, there would be a revolution before morning.”
—President Andrew Jackson (1829-1837)

The so-called stress test is really how banks SHOULD be run at all times. There can be no confidence if there is no recurring review to compliance by independent examiners. And these results need to be certified and absolutely made public for the sake of shareholders and market confidence.

The recent US real estate bubble was in part due to the lack of reserve requirements in some investment vehicles (hedge funds in particular). This allowed banks to expose themselves to unheard of leveraged lending – fueling the bubble further in an insane competition to make junk mortgages of $500K to borrowers who could not qualify for an ordinary $250K mortgage – or even $100K.

Capitalism, oddly enough, depends on capital. Very large banks must be held to a very stringent standard of prudence. (You would not let an airline operate without inspections to conformity). The real problem with these stress tests now, is that they are occurring now and not 5 years ago.

Federal Reserve May Be `Central Bank of the World’ After UBS, Barclays Aid by Bradley Keoun and Hugh Son

Federal Reserve data showing UBS AG and Barclays Plc ranked among the top users of $3.3 trillion from emergency programs is stoking debate on whether U.S. regulators bear responsibility for aiding other nations’ banks.

UBS was the biggest borrower under the Commercial Paper Funding Facility, with $74.5 billion overall, more than twice as much as Citigroup Inc., the top U.S. bank recipient, according to the data released yesterday. London-based Barclays Plc took the biggest single amount under another program that made overnight loans, when it got $47.9 billion on Sept. 18, 2008.

U.S. Representative Mike Pence, an Indiana Republican, said he planned to introduce a “European Bailout Protection Act” to restrict the flow of International Monetary Fund loans to European countries. He said he was responding to reports that U.S. officials might bolster a European fund designed to deal with this year’s debt crisis, which has spread from Greece to Ireland.

Edwin Truman, a former Fed official who is a senior fellow at the Peterson Institute for International Economics in Washington, said any push to confine the Fed’s role to U.S. banks would create a “massive exercise in financial protectionism.”

“It would lead to retaliation, so U.S. banks in London or Tokyo would expect the same kind of treatment,” Truman said. William Poole, senior economic adviser to Merk Investments LLC and a former Federal Reserve Bank of St. Louis president, said he was surprised by the extent of non-U.S. bank borrowing. Source

Confusing situation

What is confusing is that the “First World” Euro countries get IMF money at 5.2% (Greece) to 5.7% (Ireland) interest and the so called “Third World” poorer countries get IMF loans at greater than 6% interest with similar austerity conditions attached that have significantly more disastrous effect on the average population because they are already a poor nation/people and they have no way of ever paying this money back so are held in virtual bondage for a very long time.

The situation in most cases of the “Third World” countries were self inflicted by their corrupt mis-managed governments, but the same can be said of Greece & Ireland as well (sub the words governments with “governments & banksters”). Indeed, there seems to be a double standard by the IMF (as if we needed more proof) but should not be a surprise as the IMF is really staffed by “First Worlders” and their is no way they are letting their buddies go under.

Related posts:

  1. Sen. Bernard answers if the US Federal Reserve is the world’s central bank“Senator Bernie Sanders asked the question, “Has the Federal Reserve of the United States become the central bank of the world?” on discovering that the Fed, after receiving billions of...
  2. Irish EU bailout spooks bank holders; banks lose 17pc deposits amid bank run“Allied Irish Banks announced Friday it has lost a staggering euro13 billion ($18 billion), or 17 percent, of its total deposit base since June in the latest evidence of cash...
  3. World “one shock away from full-blown crisis”: World BankThe president of the World Bank has warned that the world is “one shock away from a full-blown crisis”. Robert Zoellick cited rising food prices as the main threat to...
  4. World Bank Going Bankrupt: ZoellickBy Edmund Conway, Economics Editor in Istanbul The World Bank is close to running out of money, its president, Robert Zoellick, has disclosed. The Bank, whose job it is to...
  5. Central banks begin dumping dollars; Bank runs beginTo sum the entire stories at the bottom: TAKE ALL YOUR MONEY OUT NOW and invest it in silver bullion, or keep it under the mattress. The press and financial...
  6. Federal Reserve Secretary Geithner asked to resign“The public has lost all confidence in your ability to the do the job, and it is reflecting on your president.” Geithner and his Wall Street government insiders know exactly...

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