OCT 16 16 SIT EC
y POL
ZERO HEDGE
ECONOMICS
Political
risks in Europe are on the rise as the once prosperous middle class are
forgotten, both financially (cannot compete with low cost
Chinese workers) and culturally (if you do not like what is
happening to your neighborhood you are a deplorable and irredeemable racist bigot
and we do not need to listen to you). Losing
life savings as deposits are bailed in left and right will be the straw that
bring down any pretense of political correctness.
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One year ago we showed
the following chart to explain the relative strong dollar that was
on everyone’s mind at the time. With a second
leg higher in the US dollar imminent, this particular chart will be more
important than ever. Claims to
dollars, such as demand and time deposits, or even more opaque money-like
products created by the shadow banking system is just that, a claim or
derivative on the final mean of payment, namely base
money. When trust breaks down and owners of
dollar claims rush to exchange them for actual dollars, the price of dollars
goes up in relation to goods and services because there are not enough dollars
to satisfy all the claims outstanding.
In monetary terms deflation takes hold and there are no
market mechanism that can clear this anomaly (because it was never a proper
market to begin with) as the price of the underlying and the derivative will
move in perfect proportion to each other. Enter
the Federal Reserve with their QE programs, id est base money
creation, to meet dollar demand and stem the ensuing panic.
Unfortunately, something even
more sinister has been going on with dollar derivatives internationally. In
addition to domestic claims to dollars, there are a massive market for dollars
internationally called Eurodollars. Foreign banks, particularly European banks,
help global investors, merchants, exporters and importers trade and settle in
USD, with very few actual dollars present. As
long as everybody trust each other, this highly efficient system can operate
smoothly with a high degree of leverage. Money market funds and
filthy rich commodity exporters have a long tradition for placing their money
in these markets allowing the financial system to benefit greatly.
See charts at : http://www.zerohedge.com/news/2016-10-16/dollar-straw-breaks-camels-back-political-correctness
A massively overleveraged
financial system is once again on the brink.All it take is a second
leg higher in the USD and European banking is dead in the water with
monstrosities like Deutsche Bank being one of the most interconnected
institutions on the planet. Knock-on effects on the global economy will be
severe as dollar funding dries up. The USD SWAP line between ECB and the
Federal Reserve will quickly reach a trillion dollars and the newly elected US
Congress will throw hissy-fits as they are essentially asked to bail out the
international Eurodollar market.
Political risk in Europe are
on the rise as the once prosperous middle class are forgotten, both financially
(cannot compete with low cost Chinese workers) and culturally (if you do not
like what is happening to your neighborhood you are a deplorable and
irredeemable racist bigot and we do not need to listen to you).
Losing life savings as
deposits are bailed in left and right will be the straw that bring down any
pretense of political correctness.
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In June, oil was still down 20% relative to a year prior. Last month,
that year-over-year change had already risen to 0%. And if prices hold at
current levels, oil will be up 45% at year-end. To repeat for emphasis, that’s
-20% YoY to +45% YoY in the space of six months."
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S&P 1650 by the end of the year? Reality
looms.
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"They know the economy
is in the shitter and the average American is not better off than
they were four or eight years ago. As a last ditch effort to keep this tsunami
of history from rolling over them and sweeping away the last vestiges of their
corrupt rule, they have ramped up the printing presses and government spending to try and make
the masses believe the economy is hitting on all cylinders. It will
fail, and the peasants will be coming for them."
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"...we have the precedent from a much earlier time (the 1930s) when the
defection of just one member from a currency union caused the system to unwind
rapidly. And we can clearly sense the seeds of another popular
political revolt in other member countries; a flurry of upcoming elections and
referendums provides an immediate catalyst...We believe we are approaching a dramatic fulcrum
point in public opinion in Europe."
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The global
elites’ false promise that neoliberal economics would cure all ills
through the elixir of endless growth helps explain the angry nationalist movements ripping apart the West’s politics...
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POLITICS
"We will provide the full text of HRC’s physician’s letter,
summarizing that she is in excellent health and is medically fit to perform the
duties of President. we expect the
stories that pop at 2 pm to have headlines such as “CLINTON IN ‘EXCELLENT
HEALTH,’ MEDICAL RECORDS SAY” … “CLINTON RELEASES HEALTH REPORT."
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"I don't know how this will end.. but I do know we will have to
defend ourselves. And I evenknow how
they will package this as 'Russian aggression' again when this is
simply a response to American actions... The world is being pulled in an irreversible direction."
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"In return for altering the classification, the possibility of
additional slots for the FBI at missions overseas was discussed. This is a flashing red light of
potential criminality."
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"Just as I'm pretty sure
Mark Penn didn't do his cocaine rant against Obama without some higher up
approval."
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ME & WORLD ISSUES
The
events in the Middle East, Syria and Aleppo are the focus of global attention.
Rarely has a battle been so decisive to the outcome of a war and the fate of
hundreds of millions of people around the world.
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The West has always been a great trembling hive of hypocrisy,
portraying itself as liberal, progressive, civilised and democratic... as the
"shining house upon the hill": just, altruistic, democratic, with a
"mission to extend individual liberties throughout the world." These western and especially US
virtues are mobilised to justify policies, wars, covert activities which are
not virtuous at all.
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Moments ago, Iraq's Prime Minister Haider al-Abadi publicly announced
the start of an offensive to retake Mosul, the capital of Islamic State's
caliphate in Iraq. "The hour has
come and the moment of great victory is near,"
he said in a speech on state TV, "I announce today the start of the operation to liberate the
province of Nineveh." US troops are
said to be playing a "supporting role" in the offensive.
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While many were
wondering if China would unleash QE (which it has been effectively doing for
years, using various liquidity conduits), Beijing has quietly launched the
biggest fiscal stimulus in history, one
that is even bigger than 2009-10, following the global meltdown.
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GLOBAL RESEARCH
Click
to download the audio (MP3 format) There is a new form of military engagement on
the world stage, and is principally practiced by the United States. It is
called Hybrid Warfare.
Hybrid warfare, involves two pillars. The first is a “coloured
revolution” or soft coup triggered by external sources instigating
anti-government sentiment within the framework identity politics. The second is
unconventional warfare, involving non-state actors executing violence designed
to generate chaos and disorder and keep authorities off-balance and vulnerable
to overthrow.
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TWO
ELEPHANTS IN THE ROOM TRUMP AND
HILLARY CLINTON
“They
either smash us or we take them out from the race”
This comment is
based on:
By David Korten
The real topic here is DEMOCRACY AS POWER.
“The Constitution requires that governments be
accountable to the electorate and that corporations in turn be accountable to
democratic governments.” To represent
the interests of people and living communities a democratic Govt depends on two global powers: big corp that
represent purely financial interests and the institutions of government or
State apparatous that has power over the masses but not over corp.” Such
accountability depends on Laws and rules and the one who create them is not
even the State, but the deep state “an association de banksters &
super-rich from WS plus honorable members of the Gov.
In our Presidential regime there is a chance that Presidents has the upper hand –the power- in
defining Law authorities, rules and the composition of the deep state, if he
has control of the House & Senate. It rarely happens (if happens.. it is
usually in the 2nd period, if get re-elected.). So, in general the
President is week in front of big corp. In short, democracy barely gives power to a State that
represent the Nation, the common good; and never gives power to a nation of
voters inside a duopoly system (two parties financed by big corp). Democracy
gives to them only the chance of selecting between two evil parties. That is,
the chanced of selecting a lesse evil, a bad person anyway.
The market factor. The big corp who the market, control also the Govt. There is a myth –a kind
of religious believe- that said that the market should
always be free from rules of any Govt .. if you want that markets serve the
common good. This is an ideological fiction born of banksters dreams,
and spread over and over by the corp media.
I happens so until the British hacker Navinder Sarao was cought manipulating
market transaction from Wall Street for 20’ in the morning of May 6, 2010. See "Flash
Crash Mastermind" Navinder Sarao To Be Extradited To The US, Faces Up To
380 Years In Jail. One person was caught among hundreds, perhaps thousands
of hackers doing the same type of operations. The interesting thing is that Associations
of banksters and corp from WS do the
same type of fraud to our Nation with complicity of the State, but they do not
accept competition from simple individuals. Banksters and big WS corp have the exclusive monopoly of fraud.
All this reality was captured by David Korten in The
Elephant In The Room: What Trump, Clinton, And Even Stein Are Missing.
I guess it was Jill
Stein who suggested a better title TWO
ELEPHANTS IN THE ROOM : “they either smash as or we take them out from the
race”, she said. Even though, David
general statement –without Stein in it- is
valid to describe current reality:
“Earth
is dying. A few hundred billionaires are consolidating their control of the
Earth’s remaining real wealth. Racism is rampant. And their violence devastates
millions of lives.”
Following that logic we can say that our perverted democracy is another ideological fiction born
of banksters dreams, and spread over and over by big corp media paid to
idealize it. See my brief art “The objective
political Reality” extracted from
“EZ retarded realism”.,I said there that
”There
are not lesser evils anymore : what we have today are two death animals already in decomposition inside
our house. They stink too much & we need to take them out and disposed
inside a garbage container. This is that we can do in Nov 8 with a strong
Abstention movement”. .
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SPUTNIK and RT SHOWS
Iraqi Prime Minister Announces Launch of Operation to Retake
Mosul from Daesh https://sputniknews.com/middleeast/201610171046396767-Iraq-Mosul-Daesh/
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Major Offensive: More Than 60,000 Iraqi Troops Preparing to
Retake Mosul https://sputniknews.com/middleeast/201610131046312308-65000-Iraqi-Troops-Mosul-Battle/
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Turkish Troops in the Battle for Mosul: What’s Behind
Ankara’s Interest? https://sputniknews.com/middleeast/201610171046397443-turkish-troops-battle-mosul/
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Trump’s Doubt of US Intel's Groundless Claims of Russian Hack ‘Defies Logic’ https://sputniknews.com/analysis/201610171046396467-trump-doubt-intel-defies-logic/
Trump’s Doubt of US Intel's Groundless Claims of Russian Hack ‘Defies Logic’ https://sputniknews.com/analysis/201610171046396467-trump-doubt-intel-defies-logic/
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Supporters Rally Behind Trump Despite Media Attacks, Sagging
Polls https://sputniknews.com/analysis/201610151046353015-trump-media-attacks/
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RT SHOWS
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NOTICIAS IN SPANISH
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PRESS TV
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