HSBC payment system collapses. Corporate media continually using propaganda that the stock market can’t crash. Consumer sentiment tumbles. Personal spending declines as J Crew reports a decline in sales. It is looking like 2008 all over again, as retail investors are getting out of the market. China unwinding dumping treasuries. Huge push to get rid of paper currency so the central banks have full control. Former Adviser to Ex UK Prime Minister warns everyone needs to prepare for the upcoming collapse. The US Government/central bank continues to blame China for the crash of the market. Special panel to DHS reports the fence around the White House is not high enough and needs to be quickly reinforced and raised. Australia wants to stop people on the street and ask for id’s and visa’s. Ukraine receiving gas from EU and storing it so they are not dependent on Russia. US ready to help Ukraine fight Russia to the very end. US Government pushes message once again that Assad must go. Get ready for war.
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Current News – 08.28.2015
- HSBC system failure meant businesses unable to pay staff and bills
- Hundreds of millions have not been paid to up to 275,000 people today
- Victims take to social media to complain as their salaries are not paid in
- Bank first denied fault but three hours later admitted Bacs was down
- On Wednesday we witnessed the third largest single day point gain for the Dow Jones Industrial Average ever. That sounds like great news until you realize that the two largest were in October 2008 – right in the middle of the last financial crisis . Every time the market crashes, there are huge up days, huge down days and giant waves of market momentum. Even though the Dow was up 619 points on Wednesday, overall we are still down more than 2,000 points from the peak of the market.
- Sadly, the mainstream media is still peddling the lie that everything is going to be just fine. CNN published an article entitled “Why U.S. stocks aren’t headed for a crash“. here are the reasons we were given for why the stock market is not going to collapse…
- 1. “The U.S. economy isn’t on the verge of a recession.”
- This is exactly what all of the “experts” told us back in 2007 and 2008 too. In America today, the homeownership rate is at a 48 year low, 46 million Americans go to food banks, and economic growth has slowed to a standstill
- 2. “China’s effect on U.S. is limited.”
- Really? Go to just about any major retail store and start reading labels. You will likely find far more things that were “made in China” than you will American-made products. The global economy is more interconnected than ever before, and the Chinese stock market is the second largest on the entire planet. Of course what is happening in China is going to affect us.
- 3. “American businesses are doing pretty well (outside of energy).”
- Many large corporations are reporting declining orders, declining revenues and declining profits. Unsold inventories are beginning to pile up and the pace of layoffs is starting to increase. All of the things that we would expect to see just prior to another recession are happening.
- 5. “Stock prices aren’t crazy high anymore.”
- After July’s disappointing drop in UMich Consumer Confidence, August did not help. Printing 91.9, below expectations of 93.0, UMich is hovering at the 2015 lows. . Income growth expectations dropped and business expectations dropped to lowest since Sept 2014.
- personal spending missed expectations by the largest amount since the dismal weather-strewn days of January. Consumption rose 0.3% in July, less than the 0.4% expectation and flat from the 0.3% June print.
- With YoY changes echoing the pre-collapse pathway…
- Core personal consumption growth in July was just 1.2% – the weakest since March 2011. Whatever The Fed is doing to grow the middle class is not working and hasn’t worked for the past 35 years.
- Lower rates is not helping, and higher rates didn’t work in the 90s:
- sales at stores open at least a year were down a startling 13% from the same quarter last year.
- The retailer’s sales have been steadily decliningfor more than a year.
- the Atlanta Fed GDPNow “nowcast” was revised lower to just a 1.2% annualized growth rate, more than two-thirds below the BEA’s first revision of Q2 GDP.
Charles Schwab Breaks: “System Is Temporarily Unavailable”: It has not been a good week for the retail brokers: on Monday, TD Ameritrade infuriated thousands, when the system broke just as the market crashed, preventing countless retail traders from buying (or selling). Is this a signal that the market is going to be down and the Plunge Protection Team will try to pump it up. Europe is down, futures are down. JPM quant said the market will plunge again.
- Credit Suisse notes, something happened in July and August that hasn’t happened since Q4 of 2008: retail investors pulled money from both stocks and bond funds.
- In other words, mom and pop were selling everything.
- From Credit Suisse:
Data to date suggest that we will see the first example of back-to-back monthly outflows from both equity and bond mutual funds (in July and August 2015) since Q4 2008.
- Credit rating firm Moody’s cut its 2016 global economic growth forecasts on Friday, with China and United States both trimmed
- “We have revised our U.S. 2016 forecast down slightly as the negative impact of the stronger dollar seems more pronounced than we assumed previously,” it said cutting it to 2.6 percent from 2.8 percent.
- Martin Armstrong Reports on a Secret Meeting in London to Ban Cash. Here’s an excerpt:
At this point, anyone paying even the slightest bit of attention to the central planning economic totalitarians running the fraudulent global financial system is aware of the blatant push in the media to acclimate the masses to accepting a “cashless society.”
In the mind of an economic tyrant, banning cash represents the holy grail. Forcing the plebs onto a system of digital fiat currency transactions offers total control via a seamless tracking of all transactions in the economy, and the ability to block payments if an uppity citizen dares get out of line.
While we’ve all seen the idiotic arguments for banning cash, i.e., it will allow central planners to more efficiently centrally plan economies into the ground, Martin Armstrong is reporting on a secret meeting in London with the aim of getting rid of any economic privacy that remains by ending cash.
- Three months later, the Financial Times publishes an article titled, The Case for Retiring Another “Barbarous Relic.” When you start to see increased propaganda about banning cash, you know the status quo is very scared and things are getting very serious. You’ve been warned.
- China accelerating their dumping of US treasuries, they have hyper-accelerated this process in the last two weeks, dumping almost as much as an entire year’s worth of US treasuries.
- Yet, why haven’t treasuries collapsed under this huge influx of supply on the market? This is the true question that you have to ask and is not being answered. Who is buying up this huge influx of supply?
- Remember, this is a period of time when the world is facing renewed uncertainty and is already awash with fiat dollars. The first and only likely candidate that comes to mind is the FED.
- It is highly likely that the FED has been monetizing their own treasuries, in an act that is akin to paying off a credit card with a credit card.
- The decline is not due to the latest monthly reporting of durable goods orders falling on a year-to-year basis for the sixth consecutive month.
- The stock market decline is not due to a weak economy in which after a decade of alleged economic recovery, new and existing home sales are still down by 63% and 23% from the peak in July 2005.
- The stock market decline is not due to the collapse in real median family income and, thereby, consumer demand, resulting from two decades of offshoring middle class jobs and partially replacing them with minimum wage part-time Walmart jobs without benefits that do not provide sufficient income to form a household.
- What did China do? China is accused of devaluing by a small amount its currency.
- Why would a slight adjustment in the yuan’s exchange value to the dollar cause the US and European stock markets to decline?
- It wouldn’t.
- China pegged its currency to the US dollar in order to demonstrate that its currency was as good as the world’s reserve currency. Over time China has allowed its currency to appreciate relative to the dollar. For example, in 2006 one US dollar was worth 8.1 Chinese yuan. Recently, prior to the alleged “devaluation” one US dollar was worth 6.1 or 6.2 yuan. After China’s adjustment to its floating peg, one US dollar is worth 6.4 yuan. Clearly, a change in the value of the yuan from 6.1 or 6.2 to the dollar to 6.4 to the dollar did not collapse the US and European stock markets.
- Furthermore, the change in the range of the floating peg to the US dollar did not devalue China’s currency with regard to its non-US trading partners. What had happened, and what China corrected, is that as a result of the QE money printing policies currently underway by the Japanese and European central banks, the dollar appreciated against other currencies. As China’s yuan is pegged to the dollar, China’s currency appreciated with regard to its Asian and European trading partners.
- Via The Mises Institute,
Damian McBride is the former head of communications at the British treasury and former special adviser to Gordon Brown, Prime Minister of the U.K. Yesterday he tweeted some surprising advice in response to the plunge in global equities markets.;
Advice on the looming crash, No. 1: get hard cash in a safe place now; don’t assume banks & cashpoints will be open, orbank cards will work.
Crash advice No. 2: do you have enough bottled water, tinned goods & other essentials at home to live a month indoors? If not, get shopping.
Crash advice No. 3: agree a rally point with your loved ones in case transport and communication gets cut off; somewhere you can all head to.
- We were close enough in 2008 and what’s coming is on 20 times that scale.
- Biden thinks international agents, possibly Russian, who objected to his board membership with a Ukrainian gas company set up a fake account to discredit him. However, IP mapping suggests otherwise…
- As Breitbart reports,
Vice President Joe Biden’s son Hunter Biden’s account on the extramarital dating website Ashley Madison was used and likely created on the Georgetown University campus while Biden was teaching there.
The email address provided for “Robert Biden’s” account matched a personal email address once used by Biden, the vice president’s son confirmed.
But account information shows that the profile, which was confirmed by a credit card purchase in 2014, was used at the latitude/longitude point of 38.912682, -77.071704.
That latitude-longitude point just happens to exist on the Georgetown University campus, at an administrative building on Reservoir Road. And Hunter Biden just happened to be teaching there around the time the account was set up.
- * * *
Faced with the new information, representatives for Biden said that the vice president’s son would not comment on the story
- The two Virginia journalists shot earlier this week both received gunshot wounds to the head, according to state officials. The causes of death for Alison Parker and Adam Ward have been classed as homicides.
- Two BBC journalists who were covering the Virginia shooting on Wednesday, say that they were threatened by Virginia police after filming the scene where gunman Bryce Williams crashed and shot himself.
- They say a police officer threatened to confiscate their camera and car if they did not delete their footage.
- Virginia police officers acted unlawfully when ordering the journalists to delete images from their cameras after Wednesday’s on-air shootings near Roanoke, the attorney for a photojournalism group alleged
- “The NPPA is extremely troubled by what appears to an attempt to prevent them from covering the story or document police activity,” Osterreicher writes. “For us this is the worst example of a prior restraint of free speech and of the press. While I understand tensions were high this misguided and illegal action was an abridgment of the First, Fourth and Fourteenth Amendment.”
- “The panel believes strongly that the fence around the White House needs to be changed as soon as possible to provide better protection,” the report said. “A better fence can provide time, and time is crucial to the protective mission.”
- A multiagency crackdown in central Melbourne that would have involved freshly empowered immigration officers checking visas has been canceled after mass protests.
- The crackdown, called Operation Fortitude, would see officers placed in key spots in Melbourne’s business center “
- The operation would be one of the first for the newly established paramilitary organization, which was created on July 1 by a merger of assets and functions of the now-defunct Customs and Border Protection Service and parts of the Department of Immigration and Border Protection (DIBP).
- The reform gave ABF officers with the power to detain offenders, carry weapons and gather intelligence. Officers were also issued military-style uniforms to complement their substantially greater authority.
- The plan was criticized by rights activists, who said ABF was going to randomly fish for illegal immigrants in the streets and possibly resort to racial profiling of their targets. Operation Fortitude was ridiculed on social media, and dozens of protesters rallied in Melbourne streets.
- “The benefit to society of these sorts of approaches seems to me to be much less than the damage to which it does to a society by instilling fear,” human rights barrister Julian Burnside told The Guardian.
- “I don’t want to live in a community where you walk around with the fear that people will stop you, with a threat you’ll be jailed or mishandled if you don’t comply.”
- Kiev expects to receive a loan for winter gas supplies by the end of October
- Source: sputniknews.com
- Russia must agree with Ukraine’s debt restructuring proposals
- US Department of Treasury calls on Ukraine’s creditors to move swiftly to complete debt restructuring
- . The Ukrainian government will not cut spending on the army, Prime Minister Arseniy Yatsenyuk said on Friday.
- The head of Ukraine has signed a decree on military-technical cooperation between Ukraine and a number of countries, the list of which has not been disclosed,
- The details of the document are also being kept secret.
- Corporate media reports that Ukrainian seven government troops have been killed and 13 injured in the past 24 hours, a day after the warring sides said they had agreed to a cease-fire starting next week. What they didn’t mention is that Kiev is continually firing on the people in South Eastern people provoking them at every turn to start the war
- South Korea’s government is looking to “sharply” increase its defence budget,
- The Korean Corridor
- South Korean President Park Geun-hye has spoken enthusiastically about a project that she terms the “Eurasia Initiative”, which is her country’s vision to establish an energy and logistics corridor through the North that would connect to China and Russia, with the trade component carrying over to the Trans-Siberian Railroad en route to Europe
- President Park has pressed the need for both Koreas to restore the Gyongwon Line between Seoul and Wonsan, a coastal North Korean city located in the central part of the country. From the opposite direction, Russia re-established the Khasan-Rason railroad in September 2013 to facilitate coal exports to its neighbor. Rason is connected to Wonsan through an already existing railroad,
- Trans-Border Special Economic Zone
- The US government and military have identified a new threat in modern day warfare: drones adapted to carry explosives or chemical weapons. To address this risk, weapons manufacturer Boeing has invented a portable laser cannon.
- Boeing’s new Compact Laser Weapon System (LWS) is easily transportable at 650 pounds, can be assembled in 15 minutes, and can generate an energy beam of 10 kilowatts to bring down a target up to 22 miles away,
- The US Department of State has acknowledged that Iran’s Parchin site is a “conventional” military facility, marking a departure from allegations about nuclear activities there.
- Approximately 4,500 people, many civilians, have been killed in Yemen since the Saudi-led coalition began bombing 150 days ago, according to the UN. 23,000 more have been wounded.
- An average of 30 people have been killed in Yemen every single day since the beginning of the war on March 26,
- Aug 26 Libya’s landline phone system broke down in much of the country after unknown people damaged submarine cables
- Cell phone networks have also deteriorated during the conflict, with power outages and spare parts contributing to interruptions in services, especially in remote towns.
- Russian Deputy Foreign Minister Mikhail Bogdanov and US Special Envoy for Syria Michael Ratney discussed the settlement of the situation in Syria and fight against terrorism in the region,
- “The sides exchanged opinions on a wide range of issues connected with efforts to facilitate the soonest political and diplomatic settlement of the Syrian crisis and tasks of effectively fighting against the terrorist threat,” the foreign ministry said.
- US Special Envoy for Syria Michael Ratney will visit Saudi Arabia on August 29.
- The U.S. State Department on Friday repeated its commitment to a political transition “away from” Syrian President Bashar al-Assad
- “The United States remains strongly committed to achieving a genuine, negotiated political transition away from Bashar al-Assad that brings an end to the violence,” “Assad’s continued tenure fuels extremism and inflames tensions in the region.