The World is Reordering and What It Means for the US

For years literally, we have been chronicling the demise of the US’ power in the world as it has been wrought by the FED. We have witnessed the systemic theft of the wealth of the US by the bankers. Most think that is not a reality. They are all consumers of the “blue pill”. Trillions of dollars have been siphoned from our economy, our infrastructure is crumbling, our CONgress is a joke run by paid clowns, and we have been saddled with the debt of conflict after conflict.

Now, as they say, the final shoe is dropping, and here are a few examples of why is not being covered in our so-called media, which is also a sham. For many months we have been following the actions of the BRICS as they methodically are re-organizing the way the world’s financial markets operate, and the associated trade that will be conducted. Many scoffed at these efforts with the rationale even if the BRICS (Brazil, Russia, India, China, and South Africa) were to be successful, they still wouldn’t be large enough to effect any change.

The FED continued to print money with no asset backing and shipped it to the EU banks to continue the façade that all is well, and the economies of the US and the EU were great, when in fact they were collapsing. Literally the US taxpayers have been indentured to the tune of several trillions of dollars. Here we are seven years later, and even with the draconian measures meted out by the IMF and World Bank on it’s member nation governments in the form of austerity programs, the economies of those nations continues to collapse.

It is not a surprise that these same elite in the US are banging the war drums once again and this time the Russians are once again the bad guys. However, you must put everything in its true context and look at what has happened in Iceland, who now says joining the EU is out of the question or watch what is going on in Greece as they begin to “buck” their bondage.

Panos Kammenos, Greece’s defense minister, spoke to German newspaper “Bild” on Saturday, saying his country’s leaving the euro could precede an exit by Italy and Spain, followed by Germany in the future. “If Greece explodes, Spain and Italy will be next and then at some point, Germany. We therefore need to find a way within the eurozone, but this way cannot be that the Greeks keep on having to pay,” Kammenos told Bild.

Instead of a bailout, Greece needed a debt “haircut” like the one Germany’s creditors had to accept in 1953, Kammenos proposed. He also argued that Berlin should pay World War II reparations to Athens. “All European countries have been compensated for crimes committed by Nazis, except for Greece,” Kammenos said, referring to the gold Nazi soldiers brought back from Athens during the war.

The defense minister also accused Germany of “interfering” in its domestic affairs. His criticism was aimed at German Finance Minister Schäuble, who earlier warned of a “Grexident” which could push Athens out of the euro. “I don’t understand why he turns against Greece every day in new statements. It’s like a psychological war and Schäuble is poisoning the relationship between the two countries through that,” he said.

Meanwhile Germany and France are on a sinking ship, and for all intent and purpose are looking to bail as well. The head of the private intelligence agency Stratfor has for the first time publicly said that the US government considers it to be its overriding strategic objective to work on the prevention of a German-Russian alliance. Blocking that alliance is the only way to prevent an alternative world power capable of challenging extension of the American position of being the world’s lone superpower. He says that the U.S. will fail in that overriding objective; German technology and capital will combine with Russian natural resources and “land-power,” to produce a truly bipolar world: U.S. v. Eurasia. So: he sees the U.S. strategy as being to block that, by weakening both Germany and Russia. That strategy would explain what Obama is doing in Ukraine, and the sanctions that are hurting both Russia and Germany, but Friedman thinks that nothing can work.

On the Asian front, consolidation is also occurring, again without US involvement. Although the US is desperately trying to “fast track” a trade program (TPP), it is not happening. This program is a desperate move executed way too late and would have a devastatingly negative effect on the US economy. In the meantime, Russia and China announced this week that as of today, 17 March, the Moscow Exchange has started trading in a futures contract on the currency pair Chinese Renminbi — Russian Rouble.

The launch has been driven by a substantially increasing Renminbi turnover on the Exchange, growing volume of settlement in the currency between Russia and China as well as newly arising demand for hedging of such transactions. Andrey Shemetov, First Deputy CEO of Moscow Exchange, said: “The launch of the CNY/RUB futures is the next step made by the Moscow Exchange to offer a full range of Renminbi instruments and hedging tools to participants. We expect that the new contract will be liquid and in-demand as other Exchange’s derivatives, and facilitate the trade turnover between China and Russia”.

The contract is cash-settled against the Moscow Exchange CNY/RUB fixing. The contract’s expiry dates are every 15th day of March, June, September and December. IM size is 12%. Metallinvestbank will act as the market maker for the contract. Moscow Exchange’s turnover in the Chinese Renminbi grew 700% in 2014 to RUB 395 bln (CNY 48 bln). The record average daily trading volume of CNY 541 mln was seen in October. Currently, the Moscow Exchange’s derivatives market offerings include nine FX futures: USD/RUB, EUR/RUB, EUR/USD, AUD/USD, GBP/USD, USD/JPY, USD/CHF, USD/UAH, USD/CAD, and USD/TRY, as well as three options: USD/RUB, EUR/USD, and EUR/RUB.

The dominoes are falling fast now. UK, Australia, New Zealand, Singapore and India All Sign On … South Korea Next? The Financial Times now reports that France, Germany and Italy have all agreed to join the China-led international development bank as well, “delivering a blow to US efforts to keep leading western countries out of the new institution.”

This week, 2 major U.S. allies – 2 of the “Five Eyes” – have disregarded American pleas and joined China’s new development bank … alternative to the US-dominated IMF and World Bank lending order. (A third member of the Five Eyes – New Zealand – previously signed onto the Chinese bank.). Specifically, the UK and Australia signed on this week.

The Financial Times reports, quoting a senior US Official: The decision of the UK to join the Chinese development bank was made with virtually no consultation with the US. We are wary about a trend toward constant accommodation of China, which is not the best way to engage a rising power.

The New York Times reported last week: Fundamentally, Washington views the Chinese venture as a deliberate challenge to those postwar institutions, which are led by the United States and, to a lesser extent, Japan, and the Obama administration has put pressure on allies not to participate.

Zero Hedge predicted last week: In short order Australia and South Korea will likely be on board and at that point, the stigma the US has created around membership will have completely disappeared (if it hasn’t already), opening the door for other US “allies” to join ….

An Op-Ed in The Australian argues: The decision by the Abbott government to sign on for negotiations to join China’s regional bank … represents another defeat for Barack Obama’s diplomacy in Asia. Canberra’s move follows similar decisions by Britain, Singapore, India and New Zealand.

If there is anyone out there who still honestly believes we are not in for a huge devaluation of the dollar and the devastating blows to our world economic position, they are delusional. All we can say at this point is two things. 1). Why do we still continue to allow the FED to establish our monetary policy? And 2). Brace for impact, this is going to be real ugly.


Scotland’s Vote for Independence will Impact Everyone Globally and Why

Nearly 4.3 million people have registered to vote in Scotland’s referendum on independence, the largest electorate ever recorded in the country. With polls showing the Sept. 18 vote as too close to call, the campaigns are appealing to every niche in that electorate in hopes of tipping the balance. So why is MSM barely covering this story?

The answer has to do with oil, money, power, and bankers. It has to do with the EU solvency, the UK, London based banks solvency, the solvency of the IMF and ECB. It extends to the FED in the US and beyond. It has to do with the western oligarchs “house of cards” that could possibly come tumbling down with Scotland becoming independent. That means it could be the trigger for the whole financial system of the west collapsing in a matter of days. This means it effects everyone globally.

An appeal to history

Throughout the referendum campaign, the polls have shown the “No” camp ahead, although “Yes” voters tend to be more vocal and prominent in public (and willing to talk with journalists). Grosjean teaches at the University of St. Andrews, where she focuses on 17th-century Scottish history, predating when the country signed the Act of Union with England in 1707. “For me, it never seemed an odd concept that Scotland could be independent,” she says. “It had been for about 1,100 years before it joined the union.”

'Yes' campaign people gather for a rally outside the BBC in Glasgow, Scotland

The Gatestone Institute, a New York-based neoconservative think-tank, has argued that Scottish independence will serve to encourage Vladimir Putin to go out and annex Eastern Ukraine as well as “reunite all Russian ethnic minorities in former Soviet republics with the Russian Motherland”.

In an article titled Will Scottish Independence Give Putin Pretext to Annex Eastern Ukraine?, yet another specter of doom is being conjured up, predicting doom and gloom if Scotland would take its destiny in its own hands. Following the recent avalanche of threats and semi-threats from banks, politicians and military experts, the Gatestone Institute dishes out another argument to vote No in the upcoming referendum:

“Putin will certainly use the Scottish precedent in an attempt to try to gain the moral high ground in the conflict over Russian ethnic minorities in Eastern Ukraine”, writes Peter Martino of the Institute, before adding: “Putin in the Kremlin has several reasons to cheer if the Scots decide to go their own way.”

Already Catalonians have taken to the streets, demanding a similar referendum. Flemish regionalists are beginning to stir as they watch the neck and neck race in Scotland running to a fever pitch. Martino argues that all this talk of independence will only serve to weaken NATO’s fist that it has been shaking so violently towards Russia in the last couple of months, allowing Putin to continue along the path of international conquest.

The Gatestone Institute is not the only think-tank dealing the Putin-card in relation to the Scottish issue. On August 26, Business Insider featured a story by one James Cook (ahem) who actually attempts to make the case for the status quo, claiming Scotland would “leave its coastline at risk” as the British naval fleet would almost certainly depart its waters after an independent Scotland is declared.

The thing about Martino’s argument is that one can reach an entirely different conclusion based on the exact same arguments. For example: the increase of regions in Europe declaring independence will make it more difficult for Russia to declare war. After all: instead of fighting, say, the UK and Belgium, Russia would have to declare war on England, Wales, Scotland, Flanders, and Wallonia. NATO’s current golden rule, namely that “an attack on one of us, is an attack on all of us” would become “an attack on one of us, is an attack on each of us”, making Putin’s situation more problematic in the long run, for it would be hard to sustain the antagonism towards an increased number of sovereign nations. Interesting to point out the Institute is being chaired by none other than crazed neocon John Bolton. That’s right, the same John Bolton who cheered on George W. Bush’s Iraq-war so vehemently, he almost knocked himself out.

However, equally important is what is going on in relation to money and investment. Almost $27 billion of financial assets were pulled out of Britain in August in the run up to Scotland’s vote on independence, according to a new report by a London-based consultancy comparing the capital outflow to the Lehman Brothers collapse in 2008. The financial outflow of 16.8 billion pounds ($27 billion) in August was the biggest since the white heat of the 2008 financial crisis when the US bank Lehman Brothers went bust, according to a CrossBorderCapital report compiled by the consultancy and released on Friday.

“Sterling outflows have been an issue since the end of June, but they really gathered pace in August and now look like intensifying again with the possibility of Scottish independence coming to the front of investors’ minds,” said Michael Howell, the managing director of the CrossBorder Capital.

The consultancy pointed out that the figures also dwarfed the selling of UK assets around the 2010 general election, after which there were several days of uncertainty over which parties, in the UK, would form the government. Howell added that UK outflow was more than double the combined outflow from Germany and Australia and only Japan is currently seeing a faster rate of capital outflow from the country. This year UK has experienced a net 127 billion pound outflow ($206bn), while in 2013 a net 39 billion pounds ($63bn) flowed into the nation’s economy, he added. The daily equity flow data pointed to “some of the largest UK equity selling on record, demonstrating investor concerns ahead of the Scottish referendum next week,” said Morgan Stanley on Friday.

On Friday, Deutsche Bank issued a paper criticizing independence and saying that it would be one of the greatest historic mistakes ever made. “A ‘yes’ vote for Scottish independence on Thursday would go down in history as a political and economic mistake as large as Winston Churchill’s decision in 1925 to return the pound to the Gold Standard or the failure of the Federal Reserve to provide sufficient liquidity to the US banking system, which we now know brought on the Great Depression,” said Chief economist David Folkerts-Landau. Deutsche Bank described the desire for independence as ‘incomprehensible’ saying it will entail negative consequences.

Three retail giants joined the debate in a letter to the Scottish Daily Record newspaper on Friday. Sir Ian Cheshire, of B&Q-owner Kingfisher, Marc Bolland, chief executive of Marks & Spencer, and James Timpson, of cobbler and key-cutter Timpson agreed that consumers north of the border will suffer from the country’s exit. “We are concerned about the greater complexity of trading across a national border coupled with the uncertainty over big issues such as the single currency and membership of the EU,” the joint letter read.

Within our group there is first-hand experience of trading across national borders – in France, Ireland and across the world. Our experience is that it always leads to more red tape and higher costs and we feel it is important to share this experience.”We know that running a separate pricing system in Scotland will mean taking the difficult decision as to whether or not to pass on the increased costs through higher prices to Scottish consumers.

However, for Scots the reason to pursue independence now is the policies of the London based UK government related to terrorism and how it can easily cope with this change. The UK is defined now by means of a dual reign of terror, the one being financial terrorism lead by the city of London and the other being Islamic terrorism, recently under the guise of ISIS, which openly aims at overtaking Eurabia too [Link].

Scotland, by nature, seeks neutrality and passive liberal agendas on the stage of global politics. One of the very first acts promised by an Independent Scotland is the immediate expulsions of nuclear weapons from its soil. This could prove extremely problematic for the London based UK government. Housing those weapon systems in England, given their larger Islamic population, could pose an extreme risk.

Also it doesn’t make any sense any more for Petroleum producers to trade its oil for the flimsy GBP, especially when they can get RMB or even gold instead. The “No” side said that while Scotland is currently producing about 2 million barrels per day, but reserves are nearly depleted and will drop to about 500,000 barrels per day by 2040.  However, recently studies have shown that Scotland could be sitting on larger oil and gas reserves in the Scottish Firths than currently predicted, a new independent industry investigation has found. The investigation was undertaken by oil and, the world’s largest oil and gas industry jobs board, and independent North Sea oil and gas industry experts. The investigation included interviews with industry experts and collated seismic and expert evidence from a range of independent sources such as the British Geological Survey, DECC, oil and gas companies, the Institute of Petroleum Engineering and the Energy Institute.

The investigation shows that the geology of the majority of Scotland’s estuaries or Firths are oil and gas bearing.  In some instances, oil and gas exploration drills and licences by the oil majors were prevented and overturned by the Ministry of Defence, such as in the Firth of Clyde due to the Trident Submarine base despite the presence of oil bearing late Paloeozoic strata. The investigation found that the Scottish Solway Basin has commercially recoverable oil and gas geology. The sea (in the Scottish Solway Basin) is in the same strata as Morecambe Bay, which has the second largest gas field in Britain’s continental shelf. The investigation also found that the Moray Firth is being used by industry experts as a model for other estuaries reserves. The Moray Firth, on the east coast of Scotland, is now a proven area for commercially recoverable oil and gas. If this is replicated across Scottish Firths, oil and gas reserves would rise considerably, the investigation found.

Why now Scottish Independence?

For two main reasons:

  1. Scotland’s main revenue comes from Petroleum production, which is likely to remain expensive due to the turmoil in the long-term Middle-East, coupled with a western boycott on Russian petroleum. This suggests that long-term prospects of economic independence are good, which can then support a political independence too.
  2. England’s financial sector, lying in shambles under a thin-charade, is about to take yet another hit when the world turns from ZIRP to NIRP (from ‘Zero’ to ‘No’ Interest Rate Policy). Shortly after, the global financial sector is about to take the terminal margin call when the CHF is pegged to Gold, thus becomes of limited issuance, thus bears substantial interest rates, thus the rest of the world must follow suit with substantial interest rates, in order to avoid local bank runs [Link].


Scotland should not be afraid of having its own currency, for several reasons:

  1. Its currency can be protected from speculative manipulations by backing it by means of gold and silver, which can still be purchased for affordable prices this late summer.
  1. Scotland can join the BRICS financial bloc, in order to keep itself safe and secure from the US-UK instigated demographic surge & purge strategy.
  1. The GBP is not a reliable alternative, because London’s Financial Virtual Arenas(FVA) which have replaced the good auld markets described by the Scotsman Adam Smith.

Is Scottish independence the next leverage for QE? Instead of the Scottish Petroleum profits directly covering UK debt, they could be re-budgeted Scottish profits, namely accounted for at a newly-minted Scottish central bank, and then on being lent over to the UK to be leveraged at least 10 folds. England is becoming ever more of an Atlantic Pakistan, involved in ‘managed’, i.e. perpetual on purpose, conflicts at home and abroad, on behalf of the globalists.

The choice Scotland faces today is rather simple, in terms of real-politics detailed above and of Roman history, when Northern Scotland sustained its independence. It is not only about independence from the UK (including its failing GBP), but also from EU & NATO which is in some perspectives the resurrection of the Roman empire, in a manner which reminds most people the last days of Rome.


This is done in a wider context of Agenda 21, which practice seems to aim at the global extermination of all but-Muslim populations, and which is perpetrated by the Anglo-Dutch Monarchy, which in turn controls a substantial portion of the world’s production technology and operations of extraction and processing of Petroleum and Natural-Gas.

The remaining British people may benefit from Scottish independence too, because it shall boost the UKIP in coming Parliamentary elections, by ways of example and inspiration, giving it a better chance to lead the opposition instead of the Labor political party; that’s a momentous drift towards British independence from the EU.

Farage, who described PM David Cameron as epitomizing “all that the Scottish people viscerally loathe about England,” said he “has walked straight into a long-planned ambush.” In an article for the Telegraph, Farage described the Scottish National Party as “the voice of anti-Englishness” and claimed that the “Scottish electorate has been sold ‘a pig in a poke.’”

“The problem for the Scots, though, is if they vote yes next week, they will not get independence. Rather, they are voting for rule by Brussels,” Farage said. “As Mr Cameron has brutally discovered, no EU member is truly independent.”

Those supporting a Yes vote have previously argued against claims independence would merely make Scotland a puppet of Brussels. “An independent Scotland will be an enthusiastic member of the EU, in line with our long-held international and outward-looking focus and values,” the SNP’s First Minister Alex Salmond said. “We’ll be able to argue directly for Scotland’s interests and win a better deal for our farmers, fishermen and others.”

SNP ministers said an independent Scotland could negotiate EU membership within an 18-month timescale between the referendum and official independence. Salmond has also hit out at Cameron, who has promised an in-out referendum on Europe if re-elected next year.

“At a time when Scotland’s European future is being placed in jeopardy by a Westminster elite obsessed by UKIP, it is becoming ever clearer that Scotland’s European policy is best decided by people in Scotland,” Salmond told supporters.

Meanwhile, Farage further said that Cameron was wrong to exclude the “devolution max” option from the referendum ballot paper, which would have offered more powers for a Scottish parliament without dismantling the union. “The Scots have no way of keeping a UK link while extending the powers of the Scottish parliament,” said Farage. “I believe this option would have won the day but thanks to Mr Cameron, it is not on offer.”

Farage said the choice on the ballot “plays into Salmond’s hands,” as voters could “stay subject to the English toffs at Westminster who stole their country under the threat of bankruptcy 300 years ago – the Act of Union – or vote to throw off the hated English yoke.”

On Sept. 18, voters in Scotland decide whether or not to end their 307-year union with England and become the newest independent nation in the world.

The uncertainty has prompted an outcry in recent days from big business. Several large companies — including the Royal Bank of Scotland — have said that they will move their headquarters south of the border if Scotland breaks away. Retailers have warned Scottish voters that a “yes” vote will force them to raise prices. Oil company executives have maintained they want to keep drilling amid the stability of Britain. But none of that seems to have swayed large numbers of voters: Polls show that the margin in the referendum remains razor thin, just as it was before the blitz of corporate dismay.

Few doubt that Scotland could make it as an independent country, with banking, tourism and whiskey all contributing to a diversified economy that would lean substantially on oil but not be completely reliant on it. Independence advocates point to statistics showing that an independent Scotland would rank as the 14th-wealthiest country in the world per capita, higher than Britain, with oil and gas accounting for about 15 percent of economic output.

Anyway you look at it, the decision of the people of Scotland for independence will send shock waves throughout the world. From our perspective, an independent Scotland would be one more indicator that the world can change and it will exacerbate and demonstrate the weakness of our current global elitist corporate plutocracy and illustrate how we can lift ourselves from under the yoke of the oligarchs and bankers, when we act together and use our power to vote.

Here Comes the Currency Wars! Is It What Kicks Off the Final Crash?

Regardless of all of the happy talk, I have continued to insist that firstly, this is the second great depression.  It is definitely global and extended. Secondly, we haven’t seen the bottom yet and I believe we will be dealing with this economic crisis for at least another 5-10 years.  I have contended that the real numbers and facts that count have NOT improved and to say the recovery has begun and more outrageous to say that it started in June of last year is mind-boggling.

There is no more vulnerable area to precipitating the “second leg” down than a global currency war.  The impacts of such wars are never anything good for struggling economies.  It seems that is exactly what is beginning to happen.  Consider this from Peter Simpson in Beijing for

China Thursday expressed its anger at legislation in the United States aimed at punishing Beijing for not letting its currency rise in value and failing to address trade imbalances.  Foreign Ministry spokeswoman Jiang Yu says the United States should avoid steps that could damage relations. She says her government opposes what she says is Congress using the currency issue to launch protectionist measures against China.

On Wednesday, the U.S. House of Representatives passed legislation that would allow Washington to treat what the bill describes as fundamentally undervalued currencies as an illegal export subsidy.  Jiang says the bill would harm commercial relations between China and the U.S., and says it could affect the economies of both countries, and the world.

The bill is primarily aimed at China. The U.S. and other countries say it keeps its currency, the yuan, artificially low to give its exports an unfair advantage. Many U.S. politicians, businesses and labor groups say this has contributed to the United States’ massive trade deficit with China. Congress says the deficit causes jobs losses in the U.S.  The bill would allow the U.S. to set tariffs to offset China’s price advantages.

It must be passed by the Senate and signed by President Barack Obama to become law, and neither is certain. But the latest move has rattled China.  State media quoted the Commerce Ministry as saying the bill contravenes World Trade Organization rules.  Jiang, the Foreign Ministry spokeswoman, would not say if Beijing will seek to retaliate.  But Beijing is not alone in its opposition to the bill.

The American Chamber of Commerce in China on Thursday said the bill would not achieve its objectives and would not create significant U.S. job growth.  Chairman John Watkins Jr. says the group opposes the bill because it will make the trade deficit worse, and will likely shift some China production to other low-cost countries.

“We believe that it will actually reduce exports and thereby good jobs,” Watkins says. “I think it will add further tension to the U.S.-China relationship. We think that Congress would be better focused and better advised coming up with a response to deal with China’s web of indigenous innovation policies, weak intellectual property protection, and tightening market access for foreign firms here.”  Any vote on the bill in the U.S. Senate will not come until after congressional elections on November 2.

If this was the only issue, it may be manageable, but the focus is just not on the US and China, although these countries are 1 and 2 respectfully economically.  There is a great concern on how the EU is going to manage its joint austerity programs.

Russian President Dmitri Medvedev has urged the European Union to stabilize its common currency, saying a stable euro is important for EU trade partners, including Russia. Mr. Medvedev told reporters in Germany Saturday that Russia is not indifferent to the fate of the European single currency, because it keeps part of its foreign currency reserves in euros.

The Russian president arrived in Germany Friday to discuss global and bilateral issues with German Chancellor Angela Merkel.   After speaking with the German leader, Mr. Medvedev expressed confidence that a package of EU measures put in place to help stabilize the euro will work.  Later this month, leaders from top 20 economies will meet in Canada to discuss ways of stabilizing the world economy and financial system.

This comes at the same time as we are seeing the working classes of the EU countries most affected take to the streets en masse.  Workers across Europe took part in coordinated actions to protest government austerity measures, shutting down much transport in Spain and filling the streets of Brussels with tens of thousands of marchers.

Spain’s first general strike in eight years left few buses running in Madrid and about half of underground trains out of service, Reuters said. The government said an agreement with unions guaranteed minimum service. Sky News reported that Iberia, Spain’s largest airline, expected only a third of its scheduled flights to take place.  Unions claimed that more than half of the Spanish work force, or about 10 million people, were on strike, Reuters reported, though the government downplayed any problems.  “So far the strike is taking place with normality and without incidents,” said Celestino Corbacho, the Spanish labor minister, The New York Times reported. “Citizens are fulfilling both their right to strike and work.”

The day of labor action across Europe was led by the European Trade Union Confederation. The group represents trade unions from 36 European countries and claims 60 million members, CNN reported.  “Cutting in a recession is crazy, and we must fight it,” John Monks, European Trade Union Confederation’s general secretary, told CNN.  In Brussels, union organizers said they had achieved their goal of drawing 100,000 people to march on European Union buildings, The Associated Press reported. Union workers are rallying against higher taxes, a delayed retirement age and longer work day, the Times said.

In Greece, which has been trying to fight off bankruptcy, some transportation workers had walked off the job, national rail workers were stopping work later, and hospital doctors were on strike for 24 hours, AP reported.

Irish police arrested a 41-year-old man after he drove a cement-mixer emblazoned with the words “toxic bank” to the gates of the Irish parliament in Dublin, which is due to authorize billions of dollars of further funding to bolster Anglo Irish Bank, which was nationalized last year. Authorities took more than two hours to remove the truck, according to the Irish Times, because the protester had taken measures to immobilize it.  CNN said protests are also planned in Portugal, Italy, Latvia, Lithuania, the Czech Republic, Cyprus, Serbia, Romania, Poland, Ireland and France.

Although the UK seems aloof from the EU, it cannot escape the reality of mandatory “austerity” measures, but like the US the new government seems reluctant to tell the public the truth of the nature and depth of the austerity programs.  The point of all of this is that we are not immune from these wars and in fact we are already engaged fully in the “prosecution” of this war.  I, for one, am very concerned that these tensions will build and the resultant tariff wars that will be imposed because of a lack of response from country X or Y to valuation demands will set off hyperinflation and more unemployment globally.  This may well be the biggest story of the year and few media outlets are putting in front of us.  Hmmmmmmmmm.

Watching the Slow Motion Implosion

When you take all of the events occurring right now, both on the financial front and the social front globally, one can easily get the sense you are watching a slow motion implosion of societal structures. The question becomes how to react to the events. On the one hand, do you get involved, act, react, prepare, declare, etc. or do you just observe and stay detached. I think anyone who is awake is asking these types of questions at the moment.

From a financial perspective, the situation in Europe I fear is going to spread like wildfire in the next few months.  There are many reasons for this, but mostly it is that those who “know” the truth have not been truthful with the general public.  Their reasoning for this is that they don’t want to precipitate a general panic, but the truth is they are trying to save their butts from an angry mob.

The events, however, are overwhelming them and the next few weeks these events are going to spiral out of control.  What events you ask? consider these most recent revelations.

Greece will need financial assistance amounting to between €100-120bn over the next three years, German parliamentarians claimed on Wednesday after meeting Dominique Strauss-Kahn, managing director of the International Monetary Fund, and Jean-Claude Trichet, president of the European Central Bank. They said that the €45bn currently proposed as a rescue package of loans from the IMF and other members of the eurozone was only enough for the first year of support. Yields on two-year Greek bonds rose to above 16 per cent on Wednesday amid growing nervousness about the state of the country’s deteriorating public finances.

When you consider these kinds of numbers, the reality dictates these are not doable in any fashion.  Greece could not devise draconian enough austerity plans to address this kind of debt and the supporting eurozone could not possibly support such an effort. I say this because Greece is not an isolated case given the situations which are similar in Spain, Portugal, Italy and for that matter the UK as well. “It’s not a question of the danger of contagion; contagion has already happened,” Angel Gurría told Bloomberg. “This is like Ebola. When you realise you have it you have to cut your leg off in order to survive.”

Credit rating agencies have been criticized for their role in the financial crisis, but their views are still closely watched by investors anxious about the deteriorating public finances of some of the world’s most heavily indebted countries. S&P’s announcement hit Spain’s stocks and bonds. Spanish 10-year bond yields, which have an inverse relationship with prices, rose to 4.127 per cent, while the stock market tumbled 3 per cent. Greek bond prices fell further in the wake of Tuesday’s downgrade of Greece’s credit rating to junk status by S&P. Ten-year bond yields jumped to 9.91 per cent. The euro was down 0.1 per cent at $1.3135, its lowest since April 2009.

In the UK, the political candidates are debating and without exception they are lying to the public as to the extent and nature of UK national debt.  At best they are representing the issue at 25% of reality.  They cannot bring themselves to even utter the truth about what austerity measures will be required for fear of evoking Greek like riots in Britain.  The truth is they know that in this case the truth would not set them free but exactly the opposite, it would land them in jail or worse on the pointy end of a pitchfork.

Social unrest combined with these financial realities is beginning to spread world-wide as well.  These issues tend to simmer for a period and then rapidly come to a boil.  We are seeing just this in Thailand, the Ukraine, Greece and now I fear the US.  Politicians and talking heads tend to fuel the fires for their own selfish purposes which does not help the situation.

The immigration issues in the US are a prime example of how irresponsible political leaders are acting for what they perceive as political positioning.  Arizona’s politicians managed to guide frustrations into an absurd legislative action that can only bring riots and bloodshed.  At the core of the issue when examined with the cool head is how NAFTA and the impacts of NAFTA were not planned for and dealt with as they unfolded.  NAFTA created a situation in Arizona where agricultural products from Arizona were allowed to be imported into Mexico cheaper than Mexicans could produce the products and import them into the US.  These activities have increased by over 30% in the last three years. Over 2,000,000 small farmers in Mexico were displaced by these facts.  However, Arizona imported those farmers to work the fields in Arizona to deal with the rapid increase in cheap labor demand.  Now the social issues are coming home to roost. We see this spilling over into other states like Texas, California, and New Mexico.

Instead of politicians dealing with these facts and the cause and effect elements of the problem, they choose instead to fuel the emotional aspects of the issues for political gain.  They are however, creating a maelstrom of events like is very likely to spiral out of control.  What we need right now is calm honest debate of the cause and effects of the situation on the border.  We need an honest assessment of all of the factors that have created the tension and most of all we need to deal with issues as partners, not enemies.  There is enough stress and frustation on both sides of the border. The apartheid approach simply will not work.

Globally putting all these things together as a giant tapestry, we certainly look like we are heading into the Summer of Hell.  Maybe we ought not take ourselves so seriously.  Maybe we ought to look at the messes we are in and chuckle at how ignorant we can be, and then sit down and figure our way out of this mess.  That is the one thing I think is gravely missing here.  It is our sense of humor and a good belly laugh.  I can hope.

Here’s Uncle Willy’s Thought for the Day: