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Global Economic Warning: “A Day Of Reckoning Is Coming”

Global Economic Warning: “A Day Of Reckoning Is Coming”

The world is awash in debt – some $233 Trillion is currently outstanding on a global scale. And though stock markets have seen unprecedented growth in recent years, cracks have started to appear. Just this week analysts at Goldman Sachs warned that a crash is coming, a sentiment echoed by JP Morgan Chase, which recently said that the next economic collapse could very realistically lead to social unrest and chaos on the streets of America that has “not been seen in half a century.”

Patrick Donnelly, a director at Harvest Gold Corp, suggests that it won’t be long now. In an interview with SGT Report Donnelly warns that the day of reckoning is rapidly approaching:

Countries like Greece are teetering… and that’s just a tiny little country… it’s going to take them 75 years to climb out of their debt…

You look at a country like Canada, the United States or China… the amount of debt is just staggering…

…For these tech stocks, the valuations we’ve seen… the multiples they trade at are ridiculous. 

The markets are supposed to be rational… but the markets are totally irrational. 

It’s frightening… there’s going to be a day of reckoning…

Watch Full interview:


(Watch at Youtube)

There’s no question that what goes up must come down, and given that stock market growth over the last decade has been fueled not by revenue and profit, but by central bank money printing, the coming crash will send shockwaves across the globe.

The crash of 2008 will look like a small correction compared to what’s coming next.

And when the bottom finally falls out amid panic selling unlike anything we’ve ever witnessed before, Donnelly says that capital will begin to flow into historical safe haven assets of last resort.

…click on the above link to read the rest of the article…

Economic Collapse? Fed Issues an Ominous Warning to JPMorgan Chase and Leaders Flock to Secret Meetings

Economic Collapse? Fed Issues an Ominous Warning to JPMorgan Chase and Leaders Flock to Secret Meetings

Tick. Tock.

Do you hear that? It’s the clock on the time bomb, and it appears to be ticking relentlessly toward our economic collapse.

It seems like every day, there is a new threat to the financial well-being of the disappearing middle class in America. Of course, less affected are the members of Congress and their buddies on Wall Street. You know, the ones that put the politicians in office to get favorable decisions made on their behalf in Washington.

But if you happen to have been ignoring the folks Obama calls “peddlers of fiction” who have been warning us all of an impending economic crisis along the lines of the last financial collapse, you might want to pay attention now, because a disturbing series of events is in motion.

First of all, the Fed just issued a terrifying warning to the biggest bank in the country.

Finally, the Fed has admitted that we just can’t take another hit without incurring an epic disaster.

And by “admitted” I mean they’ve issued a chilling warning to JP Morgan Chase, the biggest bank in America.

The letter is addressed to Teflon-coated Jamie Dimon, the leader of the bank (who seems to have made a deal with the Devil to become completely immune to prosecution, no matter what he does.)

It is 19 pages and heavily redacted, but here are some excerpts that should send a chill down your spine. The emphasis is mine.

The Agencies also identified a deficiency in the 2015 Plan regarding the criteria for a rational and less-complex legal entity structure. In order to substantially mitigate the risk that JPMC ‘s material financial distress and failure would have systemic effects, JPMC should ensure that its legal entity structure promotes resolvability under the preferred resolution strategy across a range of failure scenarios.

…click on the above link to read the rest of the article…

Chinese Shipyards “Vanish” As Baltic Dry Collapses To New Record Low

Chinese Shipyards “Vanish” As Baltic Dry Collapses To New Record Low

Another day, another plunge in The Baltic Dry Index, which just dropped a further 3.1% to 402 today – a new record low. While the index is driving headlines, under the surface, reality in the shipping (and shipbuilding) industry is a disaster. Total orders at Chinese shipyards tumbled 59% in the first 11 months of 2015, and as Bloomberg reports, with bulk ships accounting for 41.6% of Chinese shipyards’ $26.6 billion orderbook as of December, there is notably more pain to come, as one analyst warns “Chinese shipbuilders won’t be able to revive even if you try breathing some life into them.”

Baltic Dry Bloodbath…

About 140 yards in the world’s second-biggest shipbuilding nation have gone out of business since 2010, and more are expected to close in the next two years after only 69 won orders for vessels last year, JPMorgan Chase & Co. analysts Sokje Lee and Minsung Lee wrote in a Jan. 6 report. That compares with 126 shipyards that fielded orders in 2014 and 147 in 2013.

As Bloomberg reports, the weakening yuan and China’s waning appetite for raw materials have come around to bite the country’s shipbuilders, raising the odds that more shipyards will soon be shuttered.

“The chance of orders being canceled at Chinese yards is becoming greater and greater,” said Park Moo Hyun, an analyst at Hana Daetoo Securities Co. in Seoul.

“While a weaker yuan could mean cheaper ship prices for customers, it still won’t be enough to lure back any buyers. Chinese shipbuilders won’t be able to revive even if you try breathing some life into them.”

And it is not going to get better anytime soon…

Bulk ships accounted for 41.6 percent of Chinese shipyards’ $26.6 billion orderbook as of Dec. 1, according to Clarkson Plc, the world’s largest shipbroker.

…click on the above link to read the rest of the article…

The Credit Crunch Is Back: Banks Scramble To Collateralize Loans To Record Levels

The Credit Crunch Is Back: Banks Scramble To Collateralize Loans To Record Levels

One of the biggest quandaries of this cycle for the US economy has been the amount and growth of commercial bank loans. Virtually non-existent for the first three years of the centrally-planned new normal, something changed in 2012 at which point US bank loans, led by Commercial and Industrial or C&I lending growing at a double-digit pop, started to rise at an impressive pace, asking many to wonder: maybe the biggest driver for a sustainable economic recovery is in fact present, because where there is loan demand, there is velocity of money.

A few years later, as the loan growth persisted with virtually no flow through to GDP growth, we – and others – wondered: we know there is a “source of funds”, but what about the “use of funds” – how can banks be creating tens of billions in loans if virtually nothing was ending up in the broader economy?

The first flashing red flag appeared last July, when we reported that companies were using secured bank debt to repurchase stock: a stunning, foolhardy development, comparable to taking out a mortgage on one’s house and using the proceeds to buy deep out of the money calls on the S&P 500. This is what the FT said at the time:

For the top 25 US commercial banks by assets, C & I lending grew by 10.5 per cent in the quarter to June 25 from the previous quarter, according to annualised weekly data from the Federal Reserve.

This type of lending is an important source of business for the largest US banks, representing about a fifth of all loans made by the likes of Bank of America, JPMorgan Chase and Wells Fargo, according to Citigroup research. While low interest rates have made business lending less lucrative, the relationships it forges open doors for the banks to sell other services such as treasury management, hedging and leasing.

…click on the above link to read the rest of the article…

The “War on Cash” in 10 Spine-Chilling Quotes

The “War on Cash” in 10 Spine-Chilling Quotes

The war on cash is escalating. As Mises’ Jo Salerno reports, the latest combatant to join the fray is JP Morgan Chase, the largest bank in the U.S., which recently enacted a policy restricting the use of cash in selected markets; bans cash payments for credit cards, mortgages, and auto loans; and disallows the storage of “any cash or coins” in safe deposit boxes. In other words, the war has moved on from one of words to actions.

Here are nine quotes that should chill the spine of any individual who cherishes his or her freedom and anonymity:

1. Kenneth Rogoff (from the intro to his paper The Costs and Benefits to Phasing Out Paper Currency):

Despite advances in transactions technologies, paper currency still constitutes a notable percentage of the money supply in most countries… Yet, it has important drawbacks. First, it can help facilitate activity in the underground (tax-evading) and illegal economy. Second, its existence creates the artifact of the zero bound on the nominal interest rate.

In other words, cash (not money) is the source of all evil and must be destroyed because governments can’t trace its every movement, and it represents a limiting factor on central banks’ ability to continue their insane negative-interest-rate experiment.

2. Citigroup’s Chief Economist Willem Buiter responds to the monetary economist Charles Goodhart’s description of abolishing currency as “shockingly illiberal.”

 

(T)his cost has to be seen against the cost that the anonymity of currency presents to society. Even though hard evidence is hard to come by, it is very likely that the underground economy and the criminal community are among the heaviest users of currency.

This, I believe, is the hidden intent behind all the excited talk about banning cash: to do away with the personal anonymity it offers.

 

…click on the above link to read the rest of the article…

Why Is JP Morgan Accumulating The Biggest Stockpile Of Physical Silver In History?

Why Is JP Morgan Accumulating The Biggest Stockpile Of Physical Silver In History?

Why in the world has JP Morgan accumulated more than 55 millionounces of physical silver?  Since early 2012, JP Morgan’s stockpile has grown from less than 5 million ounces of physical silver to more than 55 million ounces of physical silver.  Clearly, someone over at JP Morgan is convinced that physical silver is a great investment.  But in recent times, the price of silver has actually fallen quite a bit.  As I write this, it is sitting at the ridiculously low price of $15.66 an ounce.  So up to this point, JP Morgan’s investment in silver has definitely not paid off.  But it will pay off in a big way if we will soon be entering a time of great financial turmoil.

During a time of crisis, investors tend to flood into physical gold and silver.  And as I mentioned just recently, JPMorgan Chase chairman and CEO Jamie Dimon recently stated that “there will be another crisis” in a letter to shareholders…

Some things never change — there will be another crisis, and its impact will be felt by the financial market.

The trigger to the next crisis will not be the same as the trigger to the last one – but there will be another crisis. Triggering events could be geopolitical (the 1973 Middle East crisis), a recession where the Fed rapidly increases interest rates (the 1980-1982 recession), a commodities price collapse (oil in the late 1980s), the commercial real estate crisis (in the early 1990s), the Asian crisis (in 1997), so-called “bubbles” (the 2000 Internet bubble and the 2008 mortgage/housing bubble), etc. While the past crises had different roots (you could spend a lot of time arguing the degree to which geopolitical, economic or purely financial factors caused each crisis), they generally had a strong effect across the financial markets

…click on the above link to read the rest of the article…

The “War on Cash” Migrates to Switzerland

The “War on Cash” Migrates to Switzerland

Banks Increasingly Refuse Cash Withdrawals – Switzerland Joins the Fun

The war on cash is proliferating globally. It appears that the private members of the world’s banking cartels are increasingly joining the fun, even if it means trampling on the rights of their customers.

Yesterday we came across an article at Zerohedge, in which Dr. Salerno of the Mises Institute notes that JP Morgan Chase has apparently joined the “war on cash”, by “restricting the use of cash in selected markets, restricting borrowers from making cash payments on credit cards, mortgages, equity lines and auto loans, as well as prohibiting storage of cash in safe deposit boxes”.

This reminded us immediately that we have just come across another small article in the local European press(courtesy of Dan Popescu), in which a Swiss pension fund manager discusses his plight with the SNB’s bizarre negative interest rate policy. In Switzerland this policy has long ago led to negative deposit rates at the commercial banks as well. The difference to other jurisdictions is however that negative interest rates have become so pronounced, that it is by now worth it to simply withdraw one’s cash and put it into an insured vault.

Having realized this, said pension fund manager, after calculating that he would save at least 25,000 CHF per year on ever CHF 10 m. deposit by putting the cash into a vault, told his bank that he was about to make a rather big withdrawal very soon. After all, as a pension fund manager he has a fiduciary duty to his clients, and if he can save money based on a technicality, he has to do it.

…click on the above link to read the rest of the article…

 

The $9 Billion Witness: Meet JPMorgan Chase’s Worst Nightmare | Rolling Stone

The $9 Billion Witness: Meet JPMorgan Chase's Worst Nightmare | Rolling Stone.

She tried to stay quiet, she really did. But after eight years of keeping a heavy secret, the day came when Alayne Fleischmann couldn’t take it anymore.

“It was like watching an old lady get mugged on the street,” she says. “I thought, ‘I can’t sit by any longer.'”

Fleischmann is a tall, thin, quick-witted securities lawyer in her late thirties, with long blond hair, pale-blue eyes and an infectious sense of humor that has survived some very tough times. She’s had to struggle to find work despite some striking skills and qualifications, a common symptom of a not-so-common condition called being a whistle-blower.

Fleischmann is the central witness in one of the biggest cases of white-collar crime in American history, possessing secrets that JPMorgan Chase CEO Jamie Dimon late last year paid $9 billion (not $13 billion as regularly reported – more on that later) to keep the public from hearing.

Back in 2006, as a deal manager at the gigantic bank, Fleischmann first witnessed, then tried to stop, what she describes as “massive criminal securities fraud” in the bank’s mortgage operations.

Read more: http://www.rollingstone.com/politics/news/the-9-billion-witness-20141106#ixzz3IOGK5Bxj

Read more: http://www.rollingstone.com/politics/news/the-9-billion-witness-20141106#ixzz3IOGFE1sU
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