In this report we will discuss the latest news on the economic collapse. If you listen to the FED and the government officials they are letting you know that the economic collapse is coming, and coming very soon. You don’t have to be a psychic to see the future when they are telling you that the entire economy and stock market are complete illusion. Please check the Sentinel Alerts for the latest news on the economic collapse. The Sentinel Alerts are updated throughout the day. If you haven’t already, go to “The People” and join the community of people who are helping each through the economic collapse
- “The information in this report is taken from sources believed to be reliable; however, the Commodity Exchange, Inc. disclaims all liability whatsoever with regard to its accuracy or completeness. This report is produced for information purposes only.” – disclaimer now posted on the Comex gold and silver daily warehouse stock report as of Monday, June 3, 2013.
- Well now. How would you like to get your bank statement in the mail from JP Morgan or Bank of America and see this disclaimer added at the bottom:
- “The information in this account statement is taken from sources believed to be reliable; however, JP Morgan Chase & Co. disclaims all liability whatsoever with regard to its accuracy or completeness. This account statement is produced for information purposes only.”
- How would feel about that? That’s pretty much the equivalent of what the attorneys for the CME/Comex have done by adding the statement at the top to their daily gold and silver warehouse stock reports. That disclaimer was not in Friday’s warehouse stock report, it was on yesterday’s (kudos to the commenter “anonymous” who discovered this).
- The common reaction would be to ask “why now?” But we already know the answer to that question. I’ve suspected for a long time that the Comex vault operators lease out a substantial portion of the gold and silver bars that they keep in both the “registered” and “eligible” account designations. It would be easy income for JP Morgan, a bullion bank who actively engages in gold leasing, to lease out the majority of the bars it stores for delivery – “registered” – and for investors who have taken delivery but keep their gold/silver in JPM’s Comex vault – “eligible.” After all, in any given delivery month, less than 1-2% of the open interest ever stand for delivery, making it very easy for a Comex vault operator to earn extra income by leasing out gold and silver that it knows it will never be required to produce for delivery.
- I am willing to bet a very large amount of money that this disclaimer was put on the warehouse reports starting yesterday as a result of the large amount of gold bars that has been physically removed from Comex vaults, and specifically from JP Morgan’s “eligible” account, since the beginning of the year. This means that it is highly likely that a significant portion of the remaining gold and silver sitting in Comex precious metals vaults – especially JPM’s – has been been hypothecated in some form.
- For anyone who has witnessed what happened with MF Global and the illegal hypothecation of customer assets, a situation in which JP Morgan is/was inextricably tied, if you believe that Wall Street is willing to hypothecate the sacred customer accounts but would not hypothecate or lease out Comex gold, then you are either tragically naive or terminally ignorant.
- To make matters even worse, I just looked up the Comex warehouse rules with regard to storage and guarantee requirements, and there is not any requirement that Comex vault operators establish “allocated” accounts for the individual customers who have taken delivery – theoretically – of gold or silver from the Comex and chose to “safekeep” it in a Comex vault. Here’s the link the to rules: Comex Storage Rules
During the Great Depression 1% of Americans had a combined income that was more than the bottom 42%, seems very similar to what is happening now but the only difference is that we have not yet had the crash, the percentage number will shoot up once the collapse occurs.
- The wealthiest 1 percent now control 39 percent of the world’s wealth, and their share is likely to grow in the coming years, according to a new report.
- The world’s total private wealth grew 7.8 percent last year to $135 trillion, according to the Boston Consulting Group’s Global Wealth report. The top 1 percent control $52.8 trillion, and those worth $5 million or more control nearly a quarter of the world’s wealth
- The number of people without work in Cyprus increased 30 percent in May from the same month in 2012 led by retail job losses, the island’s statistical agency said.
- The number of individuals registered at the country’s District Labor Offices stood at 44,424 in May from 34,162 in the same period last year. Job losses were mainly observed in the retail, construction and manufacturing industries as well as in the country’s civil service, according to a statement on the Cyprus Statistical Service’s website.
- The retail industry alone saw 2,464 more workers without jobs and the number of construction workers without work increased by 1,242, amid a slump in demand for new real estate. The number of unemployed civil servants rose by 1,391, the agency said
I believe Gerald Celente said this, currency war, then trade wars and finally real war. Be prepared!!
- We reported yesterday that Europe, in a surprising escalation of global trade wars, announced it would impose solar-panel duties against China in one week, with the terms rapidly deteriorating over the next three months. It took China less than one day to retaliate. What’s worse the retaliation is aimed at Europe’s already weakest – the PIIGS – by targeting not hard German machinery exports but something far more prosaic: French, Spanish and Italian wine.
- Reuters reports that “in a step targeting southern European states such as France and Italy that back the duties but largely sparing north European opponents such as Germany, Beijing said it launched an anti-dumping and anti-subsidy probe into sales of European wine. The Chinese ministry said the government had begun the probe into EU wines at the request of Chinese wine makers.
- “The Commerce Ministry has already received an application from the domestic wine industry, which accuses wines imported from Europe of entering China’s market by use of unfair trade tactics such as dumping and subsidies,” it said in a statement.
- “We have noted the quick rise in wine imports from the EU in recent years, and we will handle the investigation in accordance with the law.”
- The move appeared largely symbolic and less severe than if China had targeted hi-tech exports such as Airbus aircraft, made by Toulouse-based European aerospace group EADS.
- Beijing imported 430 million liters of wine last year, of which more than two-thirds came from the EU, according to Chinese customs figures. Imports from France alone came to 170 million liters.
Worst Month For Mortgage Applications Since 2009 Driving Mass Layoffs
Hourly Compensation Crashes Most Ever, Labor Costs Drops By Most In 4 Years, Manufacturing Compensation Plummets By 7%
ADP Misses Expectations, Second Worst Print In Last 8 Months; Sequester Blamed
The Warnings Are Again Accelerating. And So Is The Happy Talk From Wall Street Casino Insiders, About Rallies, Housing Recoveries, Perpetual Cheap Money. Don’t Listen. The Next Crash Will Happen By Year-End.
- New crash coming? When? Before year-end?
- In “Stocks for the Long Run,” economist Jeremy Siegel researched all the “big market moves” between 1801 and 2001. Bottom line: 75% of the time, there is no rationale for “big moves.” No one can predict them. Maybe technicians and traders can pick short-term moves the next second. Maybe tomorrow. But the long-term “big market moves?” No way.
- So why predict an “87%” chance of another meltdown in 2013? Because in the real world of statistical probabilities, historical facts and expert opinions danger signals are flashing wild. In mid-2008 we summarized the predictions of 20 experts over several years. Predicted a meltdown in a few years — markets crashed two months later. Fast.
- In retrospect, it was inevitable, thanks in part to the hype, arrogance and incompetence of Fed Chairman Ben Bernanke and Treasury Secretary Henry Paulson who failed to prepare America.
- The warnings are again accelerating. And so is the happy talk from Wall Street casino insiders, about rallies, housing recoveries, perpetual cheap money. Don’t listen. The next crash will happen by year-end.
- Yes, there’s a 13% chance the next Fed chairman will keep printing cheap money into 2014. But on New Years Eve our aging bull will be 4½ years old, well past Bill O’Neill’s “average” 3.75 years for putting this bull out to pasture.
- So unless you’re shorting, all bets on Wall Street casinos for 2014 are megarisk, like 2008. Like a Stephen King horror film, you feel it coming. Could happen anytime, even tomorrow, says Siegel’s research, or the unpredictable logic in Nassim Taleb’s “Black Swan.”
- Here are 10 other predictions adding credibility to a crash by the end of 2013:
- 1. Warren Buffett ‘guaranteed’ new bubble, new recession four years ago
- Actually he saw it coming early. Shortly after the 2008 crash Warren Buffett was asked: “Do you think there will be another bubble leading to a huge recession?” Yes, “I can guarantee it.” Cycles happen.
- Next question: “Why can’t we learn the lessons of the last recession? Look where greed has gotten us.” Then with the impish grin of a Zen master, Uncle Warren replied, “Greed is fun for a while. People can’t resist it.” But “however far human beings have come, we haven’t grown up emotionally at all. We remain the same.”
- Yes, one of world’s richest men was personally guaranteeing another bubble, another “huge recession.” Now, four years later, that time bomb is ticking louder, closer.
- 2. Federal Reserve’s Council: ‘Unsustainable bubble in stocks, bonds’
- The International Business Times just reported on the minutes of the Federal Reserve Board Advisory Council’s mid-May meeting. Members expressed “strong concerns over the Fed’s low-interest-rate policies and its bond-purchase program, which they say could trigger unmanageable inflation and an ‘unsustainable bubble’ in the stock and bond markets.” Some “pointed out that near-zero interest rates could not be sustained in the long run.”
- Why? “A spike in inflation could force the Fed to hike interest rates, hurting business confidence and consumer spending, and prove disastrous to the U.S. economy, which is still clawing its way back from the debilitating effects of the 2008 financial crisis.”
- Get it? The Fed and Wall Street insiders hear something’s dead ahead.
- 3. Peter Schiff is ‘doubling down’ on his ‘doomsday’ prediction
- Euro Pacific Capital CEO Peter Schiff, author of “The Real Crash: America’s Coming Bankruptcy,” is “not backing away from doomsday predictions about the U.S. economy,” wrote MarketWatch’s Greg Robb last week. He sees the no-win scenario: “Either the Fed stops QE and starts selling the Treasurys and mortgage-related assets on its balance sheet, thus triggering a recession, or else faces an inevitable, even-worse, currency crisis.”
- The “idea that the U.S. economy is in recovery is based entirely on rising asset prices … Asset prices are only rising because rates are low. As soon as rates go back up, asset prices will” fall.
- Last year on Fox Business Schiff warned: “We’ve got a much bigger collapse coming.” Then last week: “I am 100% confident the crisis that we’re going to have will be much worse than the one we had in 2008.” His 100% beats our 87%.
Hold on to your seats its going to be a bumpy couple of weeks. The FED and Central Bankers will try to push the market up or keep it our of the red until all control is lost.
- In the wake of the BIS’ official bail-in blueprint, Jim Sinclair has sent an alert to readers urging them to exit the system immediately.
- Sinclair states that even though readers are being told daily what is going to happen, 99.9% of even his close friends are in freeze-frame and have yet to move to pre-emptively protect themselves and their wealth from the bankster freight train rolling straight at them.
- The sharpest revisions revolved around labor costs, though. Hourly compensation sank 3.8% in the first quarter instead of rising 1.2% as initially reported. That’s the biggest drop since the Labor Department began keeping track shortly after the end of World War Two.
- First Quarter Hourly Compensation Plunges 3.8%, Most on Record; Manufacturing Hourly Compensation Plunges 6.9%; What’s Going On?
- Inquiring minds are digging into the stunningly bad Quarter-Over-Quarter decline in wages and real wages across all sectors
Everyone is preparing for war, drills in Jordan, drills on capturing and island, hmmmm, getting ready for the big one
- The Japanese Self Defense Forces (SDF) will be taking part in a California-based military training exercise led by the U.S., and including Canada and New Zealand, from June 10 until the 26. The Dawn Blitz 2013 will be the first year for Japan to participate, as well as see all the involved nations have their troops take part in amphibious assault training. “The exercise is aimed at improving the integrated operation capabilities of the SDF and maintaining and improving bilateral capabilities with the U.S. military,” said a public affairs official from the SDF Joint Staff Office.
- Five personnel from the Air Self Defense Force will be joining the exercise, while the Maritime Self Defense will have 730 personnel deployed, followed by 250 ground personnel. Three warships and seven combat helicopters have been sent for the exercises, taking place at Camp Pendleton. Japan also sent 40 ground SDF personnel to Guam last September for a smaller amphibious military exercise. Col. Grant Newsham of the US Marines finds Japan’s participation in the Dawn Blitz historic. “Now, eight months later we have three MSDF vessels, two of them amphibious ships, with 250 GSDF troops with their equipment and helicopters aboard, sailing across the Pacific Ocean to southern California to train with each other and with the U.S. Marines and U.S. Navy in a much more complex amphibious exercise. This is unprecedented,” Col. Newsham said, comparing operations to those held in Guam.
- It is expected that the SDF’s move aims to be equipped with the necessary skills to protect Japan’s maritime territories. Some find SDF’s participation a move to counter China, which is known to have dispute with Japan over a group of islands in East China Sea. Others are even wary that Japan may offend China. Tetsuo Kotani, a specialist in maritime matters at The Japan Institute of International Affairs, believes that China will not remain silent. “Beijing will likely ask Japan not to engage in activities that could exacerbate regional tensions,” he said.
Gun Control/2nd Amendment
The UN Arms Treaty is pending in the Senate, so to push this through they will need some sort of false flag event either to push the American people and congress to pass it or to distract everyone while its being signed
- Instead of taking the opportunity to sign the United Nations Small Arms Treaty on Tuesday, the White House has indicated that Barack Obama will sign it sometime before the end of August. This causes some concern as to what type of event the White House is waiting on to exploit the emotions of Americans to gain support for the measure and put pressure on the Senate to ratify it. Many have suggested that the signature will come under cover of darkness, sometime in August, When Congress will not be in town.
- Press Secretary Jay Carney said that Obama aims to sign the treaty “before the end of August.” Tuesday was the earliest he could have signed it.
- “We believe it’s in the interest of the United States,” he said. “While we look forward to signing the treaty, there are remaining translation issues that need to be resolved.”
- The National Rifle Association (NRA) opposes the treaty, and the delay would allow Obama to sign the pact during the August doldrums, with Congress out of town.
- That time frame appears to validate the concerns of treaty advocates who had worried the administration would wait until the cover of darkness to sign a treaty opposed by a majority of senators.
Getting all NATO nations on board with the cyber attack false flag event. This will be the main event, the perfect storm to get everything the central bankers and government want. When the cyber attack hits the lights will go out, the government will declare martial law, the President will implement executive orders, money will be siphoned off from everyone’s accounts and all of this will be blamed on China or any other country they want to blame this entire thing on to get everyone into WWIII to cover up the colossal economic collapse
- Nato suffered around 2,500 suspected cyber attacks on its networks last year the alliance’s Secretary General said as defence ministers gathered for the first time to discuss the threat.
- Anders Fogh Rasmussen said: “This is a serious challenge and we are taking it seriously because cyber attacks are getting more common and more complex and more dangerous. They come without warning from anywhere in the world and they can have devastating consequences.”
- A Nato official said none of the attacks had broken through Nato security.
- The great majority were believed to be petty crime or activists. A small number may have had state backing, though officials declined to name countries involved.
- Chuck Hagel, United States defence secretary, at the weekend accused the Chinese government of ‘cyber intrusions’ against the US and in the past Russia has been accused of cyber attacks on Estonia and Georgia.
- The alliance agreed to set up rapid reaction teams of experts to defend Nato networks in the event of attack, but discussion of a plan to allow individual alliance members to call on the teams was postponed until October. Several alliance members including Britain had argued that funding a shared pool of teams for alliance members would only duplicate their own domestic spending on cyber defences.
- China’s top Internet security official says he has “mountains of data” pointing to extensive U.S. hacking aimed at China, but it would be irresponsible to blame Washington for such attacks, and called for greater cooperation to fight hacking.
- Cyber security is a major concern for the U.S. government and is expected to be at the top of the agenda when President Barack Obama meets with Chinese President Xi Jinping in California on Thursday and Friday.
- Obama will tell Xi that Washington considers Beijing responsible for any cyber attacks launched from Chinese soil and must take action to curb high-tech spying, White House officials said on Tuesday.
- China’s Internet security chief complained that Washington used the news media to raise cyber security concerns which would be better settled through communication, not confrontation.
- “We have mountains of data, if we wanted to accuse the U.S., but it’s not helpful in solving the problem,” said Huang Chengqing, director of the National Computer Network Emergency Response Technical Team/Coordination Center of China, known as CNCERT.
- “They advocated cases that they never let us know about,” Huang said in comments on Tuesday and carried by the government-run China Daily newspaper on Wednesday.
- “Some cases can be addressed if they had talked to us, why not let us know? It is not a constructive train of thought to solve problems.”
- CNCERT has instead co-operated with the United States, receiving 32 Internet security cases from the United States in the first four months of 2013, and handling most promptly, except for a few that lacked sufficient proof, Huang said.
Record of Meeting of the Federal Advisory Council and the Board of Governors
Friday, May 17, 2013
“There is also concern about the possibility of a breakout of inflation, although current inflation risk is not considered unmanageable, and of an unsustainable bubble in equity and fixed-income markets given current prices.”
Uncertainty exists about how markets will reestablish normal valuations when the Fed withdraws from the market. It will likely be difficult to unwind policy accommodation, and the end of monetary easing may be painful for consumers and businesses. Given the Fed’s balance sheet increase of approximately $2.5 trillion since 2008, the Fed may now be perceived as integral to the housing finance system.
- However, the effectiveness of the policies in producing healthy economic and employment growth is not clear. Uncertainty about fiscal and monetary policy is deterring business investment that would spur growth, and despite policy accommodation, economic growth has remained sluggish and uneven. While some believe monetary policy may not be accommodative enough in light of current government fiscal policy, others believe that constant injections of new reserves have not returned the economy to the vibrant upbeat model it used to be and that current monetary policy is ineffective.
- There are potential risks associated with current policy. The Fed’s securities purchases have reduced mortgage yields and, to a lesser extent, Treasury yields. Current low bond yields are disruptive to management of fixed-income portfolios, retirement funds, consumer savings, and retirement planning. They may encourage unsophisticated investors to take on undue risk to achieve better returns. MBS purchases account for over 70% of gross issuance, causing price distortion and volatility in the MBS market. Fixed-income investors worry that attractive mortgage-backed securities are in very tight supply. Higher premium coupons carry too much exposure to prepayments, potentially led by new government support programs for housing. Many are concerned about the Fed’s significant presence in the market. They have underweighted MBS in favor of corporate, municipal, and emerging-market bonds. There is also concern about the possibility of a breakout of inflation, although current inflation risk is not considered unmanageable, and of an unsustainable bubble in equity and fixed-income markets given current prices.
- Further, current policy has created systemic financial risks and potential structural problems for banks. Net interest margins are very compressed, making favorable earnings trends difficult and encouraging banks to take on more risk. The Fed’s aggressive purchases of 15-year and 30-year MBS have depressed yields for the “bread and butter” investment in most bank portfolios; banks seeking additional yield have had to turn to investment options with longer durations, lower liquidity, and/or higher credit risk. Finally, the regressive nature of the artificially compressed savings yields creates pent-up demand within bank deposit portfolios; these deposits may be at risk once yields begin to rise and competitive pressures increase.
FDIC Bank Of England – Resolving Globally Active, Systemically Important,Financial Institutions
In what appears to be drastically worse than many had hoped (and expected), uninsured depositor in Cyprus’ largest bank stand to get no actual cash back from their initial deposit as the plan (expected to be announced tomorrow) is:
- 22.5% of the previous cash deposit gone forever (pure haircut)
- 40% of the previous cash deposit will receive interest (but will never be repaid),
- and the remaining 37.5% of the previous cash deposit will be swapped into equity into the bank (a completely worthless bank that is of course.)