EU bank failures will crash Wall Street — again

October 19, 2011 – NEW YORK – History inevitably repeats itself: Arab Spring triggered Wall Street Fall. Next, the raging European monetary collapse will ripple through America’s banking system, completing the 2008 meltdown that never ended because Wall Street fought all reforms. But now, a bigger meltdown as history repeats a dangerous cycle like the 1929 Crash and Great Depression. History will also deal a fatal blow to Wall Street. Weiss adds a key warning: No bank bailouts. America’s banking system is bankrupt, structurally and morally. Washington is broken. And thanks to the Occupiers Revolution the masses will never accept new bank bailouts. Never. They’ll toss politicians and overthrow government first. No new bailouts will be the stake in the heart of Wall Street, ending the “greed is good” power of America’s “bloodsucking vampire squid,” handing the Occupiers new political power in Washington. Weiss’s worst-case scenario highlights everything we’ve both been warning investors about for a long time. The 2008 meltdown never ended, lessons never learned. But now the end game is accelerating. Listen closely: Weiss final warning to all investors: “Get all or most of your money out of danger immediately … above all, stay safe!” Prepare for the coming bank collapse. And discover how this historic scenario will empower the Occupiers message to get money out of elections: “One citizen. One dollar. One vote.” –Market Watch

Yes, coming soon says Martin Weiss in his “7 Major Advance Warnings,” which is “bound to have a life-changing impact on nearly all investors in the U.S. and around the globe.” His new Weiss Ratings warnings are the “most important” in a 40-year career. The stress on Wall Street banks will force them back to Congress for more bailouts…

Greece will default very soon
The contagion of fear will spread
European Mega Banks will collapse
EU governments suffer new credit rating downgrades
Spain and Italy next to face defaults on their massive debts
Global debt markets will suffer a critical meltdown
Vicious cycle: sovereign defaults, bank failures, global depression

So listen closely to his “7 Major Advance Warnings,” which are “the most important in the 40-year history of my company.” Many will dismiss them, distracted by today’s campaign noise. Others will dismiss them as “over there,” problems for Europeans. Weiss warns: EU banks problems are “bound to have a life-changing impact on nearly all investors in the U.S. and around the globe.”

So listen and discount what Wall Street is selling you. Protect your portfolio. Here are edited highlights:

1. Greece will default very soon ...

”Banks must bite the bullet and take some big hits in their Greek loans. … Whether banks accept this ‘solution’ voluntarily or not, it will mean Greece is in default.”

2. The contagion of fear will spread …

Global investors know “if one major Western government can default, so can others.” They will refuse to lend “to highly indebted governments” or “demand outrageously high yields.”

3. European megabanks will collapse …

Some of the “largest banks will collapse under the weight of defaulting sovereign debts and … mass withdrawals … Spain … French banks” … the impact will ripple across “J.P. Morgan Chase, Bank of America and Citigroup … All three are in danger.”

4. EU governments suffer new credit rating downgrades ...

”France and Germany, will scramble to rescue their failing banks.” But “bank bailouts are seriously flawed” as “governments gut their own fiscal balance … suffer big downgrades,” or pay “far higher interest rates.”

5. Spain and Italy next to face default on their massive debts ...

With “$3.4 trillion in debt, or about 10 times more than Greece” they too risk default.

6. Global debt markets will suffer a critical meltdown ...

Anticipating “default by a country as large as Spain or Italy, nearly all debt markets in the world will freeze.” Withdrawals, panic “not only crush the borrowing power of the PIIGS” but threaten meltdowns in “France, Germany, Japan, the U.K. and the U.S.”

7. Vicious cycle: sovereign defaults, bank failures, global depression ...

Government defaults trigger more bank failures, “cut off the flow of credit to businesses and households, sink the global economy into a depression, and perpetuate the vicious cycle.”

Warning to investors: No bank bailouts, power to Occupation

History inevitably repeats itself: Arab Spring triggered Wall Street Fall. Next, the raging European monetary collapse will ripple through America’s banking system, completing the 2008 meltdown that never ended because Wall Street fought all reforms.

But now, a bigger meltdown as history repeats a dangerous cycle like the 1929 Crash and Great Depression.

History will also deal a fatal blow to Wall Street. Weiss adds a key warning: No bank bailouts. America’s banking system is bankrupt, structurally and morally. Washington is broken. And thanks to the Occupiers Revolution the masses will never accept new bank bailouts. Never. They’ll toss politicians and overthrow government first.

No new bailouts will be the stake in the heart of Wall Street, ending the “greed is good” power of America’s “bloodsucking vampire squid,” handing the Occupiers new political power in Washington.

Weiss’s worst-case scenario highlights everything we’ve both been warning investors about for a long time. The 2008 meltdown never ended, lessons never learned. But now the end game is accelerating.

Listen closely: Weiss final warning to all investors: “Get all or most of your money out of danger immediately … above all, stay safe!” Prepare for the coming bank collapse. And discover how this historic scenario will empower the Occupiers message to get money out of elections: “One citizen. One dollar. One vote.”

Compromise on that principle and Wall Street wins, again.

read more at http://www.marketwatch.com/story/eu-bank-failures-will-crash-wall-street-again-2011-10-18?pagenumber=1

SAN LUIS OBISPO, Calif. (MarketWatch) — Worst-case scenario’s closing fast: Occupy Wall Street growing. But no political power or allies yet. Feared yes, attacked by GOP proxy tea party. Soon the Occupation will explode into a new American Revolution. When? A string of European bank collapses is dead ahead. And like the Arab Spring, they will trigger an economic disaster for American banks.

Warning eight: No new bailouts. That will push the economy into a deep recession.

America’s collective conscience wants true democracy restored

Yes, USA Today sees a “ragtag” army: No mission, no goals, no organization, no agenda, no leaders, and no staying power. Wrong. Look deeper: The Occupiers are the voice of America’s collective conscience demanding a return to our 1776 roots, to a “government of the people, by the people, for the people.”

Our collective inner voice knows America’s moral compass is broken. We’ve become a government “of, by and for” special interests, the wealthiest 1%, Wall Street insiders, CEOs and Forbes-400 billionaires. It happened fast: In one generation the Super Rich grabbed “absolute power,” killing the middle class American dream.

Wall Street banks are already dismissing the Occupiers … planning bigger bonuses this year… lifting limits on their license to gamble Main Street deposits in the $600 trillion global derivatives casino … they already spend hundreds of millions lobbying every year … they’re convinced they can defeat the Occupiers with campaign donations in the back rooms of Congress … writing off the fight as another business expense … ultimately expecting the Occupiers will vanish into the cold winter months.

Warning: Don’t be fooled. Occupy Wall Street knows exactly want it wants. The tea party, GOP’s proxy, isn’t fooled. They feel threatened, counter-attacking, worried their role will be lost in the 2012 elections, fearful they’ll lose sway over Republicans, so they’ve got a smear campaign against Occupy Wall Street. Won’t work:

Amid all the noise surrounding Occupy Wall Street we hear their “one simple demand.” Missed by most outsiders, that demand echoes down through American history, first heard in 1776 in the Declaration of Independence. Earlier the Occupiers voiced their one simple demand:

“We demand that integrity be restored to our elections. One citizen. One dollar. One vote. Only citizens should make campaign contributions. Campaign contributions by citizens should not exceed $1 to any political candidate or party. Help us reclaim democracy.”

Yes, one simple demand: “Stop the monied corruption at the heart of our democracy.” That one simple demand echoed over and over. And no compromise when dealing with so fundamental a principle of democracy. Compromises the last generation surrendered America to Wall Street and the Super Rich. Compromise this principle again, and we all lose, destroy America. No compromise. Period.

Phase 2: EU bank collapse gives Occupiers new political power

The Occupiers Revolution enters a new phase soon: First Arab Spring rippled into American Fall. Next, EU bank collapses will ripple through Wall Street. For a long time we’ve been warning the 2008 meltdown never ran its course, foiled by mega-bailouts … bankers never shared the sacrifice … fought all reforms … are back to business-as-usual … learned no lessons … now even more delusional, expecting bigger bonuses … trapped in denial for three years … cannot see what’s ahead … a perfect setup for a bigger crash.

That’s why my eye locked on Martin Weiss’ “7 Major Advance Warnings.” Weiss has been a champion of the little guy for 40 years, author of “The Ultimate Money Guide for Bubbles, Busts, Recession and Depression.” Weiss Ratings of domestic and foreign debt markets downgraded U.S. debt before the S&P.

Both of us were warning well in advance of the 2008 crash. It was so predictable: Weiss warned of “failure of Bear Stearns Lehman, Washington Mutual, near-failure of Citigroup and the demise of Fannie Mae years before it collapsed.”

http://www.marketwatch.com/story/eu-bank-failures-will-crash-wall-street-again-2011-10-18?pagenumber=1

Warren Buffett: Don’t ‘play safe’ with my billions, hit a home run

What happened to Gates and his $26 billion mission? When Warren Buffett added more than $30 billion to Gates’s foundation a few years back, Buffett said: “Don’t just go for safe projects. Take on the really tough problems.”

Well, to put it bluntly folks, the Gates Foundation is not spending the money on the “really tough problems.” It is indeed playing it safe.

So what does Gates see as the world’s other “biggest problem?” Not global warming. Nor poverty. Not peak oil. The absolute biggest? One like the trigger mechanism on a nuclear bomb? One that could throw a monkey wrench into global economic growth, end capitalism, even destroy civilization? The one that if not solved soon renders all efforts to solve all the other global problems — including global warming, poverty and fossil fuel depletion — irrelevant, futile and impossible ever to solve?

Overpopulation. That was the consensus “biggest problem” when a group of billionaires that included Gates got together at a secret meeting in Manhattan a couple of years ago.

Get it? Out-of-control population is the world’s No. 1 problem. Yet, governments with their $65 trillion global GDP aren’t even trying to solve the world’s overpopulation problem. They’re clueless. Can these philanthropists and their billions stop the coming disaster? No. In fact, their billions are accelerating the problem.

So what will shock the world awake? A catastrophe. Only a major disaster, a massive global collapse bigger than anything in world history is needed to alter the inevitable.

2 billion past Peak Population

Scientists estimate that the Earth’s natural resources can reasonably support about 5 billion people. We already have 7 billion. Get it? We’re 2 billion over Earth’s carrying capacity. Plus we’re racing headlong to 10 billion by 2050, adding over 50 million more each month.

Simple math, high school economics and minimal psychological common sense tells us we’re deep in denial and headed into a disaster.

And still, no adults are dealing with overpopulation, the “toughest of all problems.” Instead, they’re dealing with “safe projects” that make them feel good in the moment, short-term solutions that ironically make the long-term problem worse not better.


The truth is that Gates and his billionaire buddies are in denial, trapped in what Mother Jones columnist Julia Whitty calls “The Last Taboo.” She says population is hidden in a “conspiracy of silence” that “unites the Vatican, lefties, conservatives and scientists” and now the world’s richest philanthropists have joined this “conspiracy of silence.”

Scientific American also warned that population is “the most overlooked and essential strategy for achieving long-term balance with the environment.” Why? Politicians ignore this “last taboo,” denying the fact that if all nations consumed resources at the same rate as America, we’d need six Earths just to survive today.

Check the math: First World citizens now consume 32 times more resources such as fossil fuels, and put out 32 times more waste, than do the inhabitants of the Third World. Now they want what we have.

By 2050, with a population of 10 billion, including 1.4 billion each in China and India, we are in effect committing suicide.

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Occupy Wall Street will lay siege to U.S. greed
Commentary: 20,000 or more set Sept. 17 as start of ‘American Fall’
http://www.marketwatch.com/story/occupy-wall-street-will-lay-siege-to-us-greed-2011-09-06

A new Lost Decade is leading to revolution
Commentary: Class warfare accelerating, democracy losing grip
http://www.marketwatch.com/story/a-new-lost-decade-is-leading-to-revolution-2011-10-04

Dow hits 20,250 by 2020, but first a big crash
Commentary: Go to cash or keep building your Lazy Portfolio?
http://www.marketwatch.com/story/dow-hits-20250-by-2020-but-first-a-big-crash-2011-09-20

Bonds issues by the likes of Turkey, Brazil and Colombia called safer than Treasurys (The Tell).
• U.S. set to sell $99 bln in notes and bonds
http://blogs.marketwatch.com/thetell/2011/10/20/emerging-market-bonds-more-stable-than-treasurys/

Sales of existing homes fall 3% in September
http://www.marketwatch.com/story/sales-of-existing-homes-fall-3-in-september-2011-10-20-1014220

Euro falls on report about summit
Major currency pairs range-bound ahead of Sunday euro summit
http://www.marketwatch.com/story/euro-slips-on-debt-deal-confusion-dollar-up-2011-10-20?link=MW_story_latest_news

ASIA MARKETS Archives
Oct. 20, 2011, 4:14 a.m. EDT
Asia stocks slide, with resource shares down
http://www.marketwatch.com/story/asia-stocks-slide-with-resource-shares-down-2011-10-20?Link=obinsite

EUROPE MARKETS
Oct. 20, 2011, 9:42 a.m. EDT
Europe stocks drop; earnings, debt crisis in focus
Actelion and Schneider Electric post steep losses; Nokia gains
LONDON (MarketWatch) — European stock markets dropped Thursday, pressured by concerns that euro-zone leaders haven’t made substantial progress in hammering out a deal to tackle the sovereign debt crisis.
http://www.marketwatch.com/story/europe-stocks-drop-earnings-debt-crisis-in-focus-2011-10-20-342360?Link=obinsite

Oct. 19, 2011, 5:19 p.m. EDT
U.S. stocks fall on Europe, economic unease
Travelers, Intel, housing starts provide support; Apple’s off 6%
SAN FRANCISCO (MarketWatch) -- U.S. stocks fell Wednesday after indications showed the U.S. economy was growing at a weak pace and on disappointing earnings from Apple Inc., and as investors assessed European efforts to fix the region’s debt problems.
http://www.marketwatch.com/story/us-stocks-tip-lower-tugged-by-apple-banks-2011-10-19?Link=obinsite

Oct. 19, 2011, 8:51 p.m. EDT
Australia pricing in higher bank-default risk
SYDNEY (MarketWatch) — A sharp jump in the cost of insuring against an Australian bank default has raised eyebrows recently and appears at odds with both funding markets and a relatively upbeat performance for bank-sector shares.
http://www.marketwatch.com/story/australia-pricing-in-higher-bank-default-risk-2011-10-19?Link=obinsite

OUTSIDE THE BOX
Oct. 18, 2011, 6:00 p.m. EDT
A sobering look inside Putin’s Russia
Commentary: Russia groans under weight of corrupt tyranny
PRAGUE (MarketWatch) — Vaclav Havel was stooped and frail when he opened his annual Forum 2000 at the glittering Zofin Palace beneath Prague Castle earlier this month. While the voice of the iconic former Czech president is weakened by illness and the burden of his 75 years, Havel, through these yearly events, still speaks truth to power.
http://www.marketwatch.com/story/a-sobering-look-inside-putins-russia-2011-10-18?Link=obinsite

China on U.S. Treasurys: No Thanks
Oct. 18, 2011 - Newswires reporter Ian Talley makes a stop on Mean Street to discuss China's decision to not buy U.S. Treasurys in August, as did many other foreign countries. AP
VIDEO http://www.marketwatch.com/video/asset/china-us-treasurys-no-thanks/1AEC98E1-7F73-4123-9CB1-2A2F95E2A89D?Link=obinsite#!1AEC98E1-7F73-4123-9CB1-2A2F95E2A89D

and to make matters worse

Gasoline prices head higher
http://blogs.marketwatch.com/thetell/2011/10/20/gasoline-prices-head-higher/
By the way, in Hawaii we pay $4.60 for regular. On Thursday, the average price per gallon for regular gasoline stood at $3.474. Hah! Good luck with that and what they have planned with a gallon to eventually go for $7-8.

Personal note.... Purchase an electric car with a solar car port. Screw the gas companies.

Carol, do you think there should be some sort of limit on personal wealth? You know, free-enterprise with a ceiling? Would this accomplish anything constructive? Would the rich find a way around this, like they find a way around everything? I don't like the Nanny-State, but I don't like 1% of the people having 40-50% of the wealth. The non-compassionate use of accumulated-wealth is near the top of my fecal-list. What if it were mandatory for the super-rich to become philanthropists? Imagine there's no billionaires. It's easy if you try...

* Dollar falls below 76 yen, biggest daily fall since Aug

* France and Germany eye two summits to hammer out deal http://www.reuters.com/places/france

* Euro jumps versus dollar, but fall vs other rivals

NEW YORK, Oct 21 (Reuters) - The U.S. dollar slumped to a record low against the yen on Friday in its biggest one-day decline in nearly two months, bringing back into focus the threat of official intervention to weaken the Japanese currency.

Traders reported initial large selling of dollars from a U.K. clearer and macro funds, and losses accelerated after the pair broke through a series of stops around 76.30 and 75.90.

"No specific news. Just general investor impatience with the Bank of Japan's lack of a yen weakening policy," said Tommy Molloy, chief dealer at FX Solutions at Saddle River, New Jersey.

Talk that Japanese authorities may follow the footsteps of the Swiss National Bank in putting a floor in dollar/yen had buoyed the currency pair in recent sessions, but investors resumed yen buying after market speculation failed to materialize.

The euro rallied against the dollar, but fell against most other currencies, as doubts persisted that European leaders are able to deliver a solution to the escalating debt crisis soon.

The dollar fell as low as 75.78 yen on trading platform EBS , surpassing its previous record low of 75.941 set in August.

It last traded down 0.9 percent at 76.18 yen, coming off lows on reported buying from Japanese banks at the 76.00 level. At current levels, it was on pace for its biggest daily fall since Aug. 26.

If the yen does hold, it could hit 75.50 per dollar, followed by the 75.00 mark, Molloy said.

The euro last rose 0.8 percent to $1.3883 , recovering from a session low of $1.3703. It had hit as high as $1.3890 on Reuters data.

Franco-German split over bailout fund threatens crisis plan
BRUSSELS/BERLIN - Deep divisions between France and Germany mean they will make scant progress on strengthening the euro zone bailout fund at a summit on Sunday, in a sign that Europe's leaders are still some way from getting a grip on the bloc's debt crisis. France and Germany said in a joint statement that European leaders would discuss a solution to the crisis on Sunday, but no decisions would be adopted before a second meeting to be held by Wednesday at the latest.

But the euro dropped 0.1 percent versus the yen to 105.76 . It also slipped 0.1 percent against sterling to 87.15 pence and lost 0.4 percent to 1.2269 Swiss francs

Obama discusses euro crisis with EU leaders: White House
WASHINGTON - President Barack Obama held a video conference on Thursday with his counterparts from Germany, France and Britain to discuss the euro zone debt crisis and events in Libya, the White House said. The leaders' video conference comes amid mounting concern in Washington that Europe's problems could sap the U.S. recovery. That impression was reinforced by a Thursday luncheon visit paid to Senate Democrats by Federal Reserve Chairman Ben Bernanke, who told them the Greek debt crisis was indeed having an impact on the struggling U.S. economy.

The major sticking point among euro zone heavyweights is over how to scale up the European Financial Stability Facility, a 440 billion euro ($600 billion) fund so far used to bail out Portugal and Ireland.

http://www.reuters.com/article/2011/10/20/us-eurozone-obama-calls-idUSTRE79J8IK20111020

General Electric, the nation’s largest industrial company, on Friday reported net earnings for the third quarter of $3.2 billion, up 57 percent from the same period in 2010 despite what the chief executive called a “volatile” economic environment.


- Strong demand from Brazil, Russia and China drove General Electric Co profit up 18 percent in the third quarter despite sluggish economies in the United States and Western Europe.

(Reuters) - Strong demand from Brazil, Russia and China drove General Electric Co profit up 18 percent in the third quarter despite sluggish economies in the United States and Western Europe.

The largest U.S. conglomerate said on Friday it expects earnings to rise at a double-digit percentage rate next year, following peer United Technologies Corp in trying to assuage investors' fears about Europe's brewing debt crisis.

"Our emerging market growth was very strong," Chief Executive Jeff Immelt told investors on a conference call "It was a good quarter in a volatile environment."

The world's biggest maker of jet engines and electric turbines met Wall Street's profit expectations despite weakening profit margins on its industrial products. Analysts said help from a lower-than-expected tax rate also boosted its results.

read more at http://www.reuters.com/article/2011/10/21/us-ge-idUSTRE79K0I720111021


Let's not forget who financial backed Ronald Reagan beginning back when he became governor of California.

Personal note: I personally read the GE reports years back so know this to be true.

Note to self - buy GE stock when IQD revalues.

European leaders braced for a six- day battle over how to save Greece from default, shield banks from the fallout, and build more powerful defenses against the debt crisis rocking the 17-nation euro economy. Europe’s international image is “disastrous,” Luxembourg Prime Minister Jean-Claude Juncker told reporters before the meeting began. “We’re not really giving a great example of a high standing of state governance.” Aid packages of 256 billion euros ($354 billion) for Greece, Ireland and Portugal have failed to stabilize markets or prevent the turmoil spreading as far as France, co-anchor with Germany of the European economy.

read more about this global financial mess at http://www.bloomberg.com/news/2011-10-21/euro-leaders-begin-six-day-marathon-to-reach-agreement-on-debt-crisis-plan.html

Personal recommendation: Each nation needs to have its own sovereign bank with its own National money back by its own natural resources (oil, gold) or other commodities. Major natural resources (for example the oil in Iraq and the U.S.) need to belong to the Nations it resides in for the benefit of its citizens. There should be no need for tax where natural resources can be used to finance governmental business. In fact, getting rid of the Federal Reserve Banksters and the IRS would save the U.S. billions where the US would be making money instead of going into never-ending debt. These National banks belong to the countries and are run by folks whose primary goal is to benefit the citizens of the countries each National Bank resides in.

Also, it is the plan of many of these nations to use the IQD to reset the global economy. That is if this country can get off its butt and revalue the IQD - NOW. They have enough natural resources (oil) to back their currency at a very high rate for the next 200 years - plus. The same for the U.S.. It has enough untapped oil for the next 200 years as well. In fact, oil is abiotic which means that the planet produces and creates oil - not dinosaurs. However, if some specific governmental secret military programs, beginning with the US, would get off their collective butts - the entire world could have access to free energy, could clean up global pollution and create untold jobs spreading the wealth where all would benefit.

Perhaps if everyone were encouraged to engage in insider-trading and to be more corrupt than hell itself -- that would level the playing field. Why encourage the honest and hard-working people of the world to stay honest and keep their noses to the grindstone, when they are being robbed blind by people in expensive suits??? If everyone were corrupt and cut-throat, would 1% of the population still own 40-50% of the wealth? Mind you, I want everyone to be good and honest, but is this likely to happen anytime soon? So, why should the good people keep bending-over and getting screwed???

European finance talks

By Kevin G. Hall | McClatchy Newspapers

WASHINGTON — The fate of the global economy, European unity — and the 401(k) savings of ordinary Americans — all hang in the balance as Europe's leaders meet over the weekend to try to resolve a burgeoning debt crisis that threatens to spread globally.

The leaders are expected to decide at their European Union summit by next Wednesday whether and how to expand the controversial bailout fund they created earlier this year. They also must decide how to add extra cash to their faltering banks — in need of somewhere between $100 billion and $300 billion — in order to prevent collapses or runs by nervous depositors.

And they must decide whether Greece, the region's basket case that sparked the crisis, gets more rescue support and how much.

That's a pretty full plate. So full that leaders of France and Germany, the preeminent powers of the 27-member European Union, will continue meeting into next week rather than finishing their EU summit as planned on Sunday.

Technically, EU leaders have pledged to reach some resolution before leaders of the 20 most advanced economies — the G-20 — meet in Cannes, France, on Nov. 3-4. But investors across the globe are increasingly restless, and if EU leaders don't make visible progress soon, financial markets across the globe could spiral down as soon as Monday.

There's much more at stake in Europe than just the debt woes of a few countries. Six decades of work to integrate European economies, which collectively include 500 million consumers and economic activity in excess of $17 trillion — more than the USA, could unravel if leaders fail to find a solution.

"You've got a short-term problem, which is Greece ... and a longer-term problem where there are some serious structural and design flaws in the European Union," said Nariman Behravesh, chief economist for forecaster IHS Global Insight.

For more than a decade, Europe has had a common currency, the euro, and monetary policy set by a single entity, the European Central Bank. But the 27 member nations each have retained sovereign responsibility for taxation and spending, and many have amassed huge debts. It's as if the United States did not having a national Treasury Department and instead all 50 states had their own.

"It doesn't work. A unified currency without a political union, without a fiscal union — a federal system — just isn't going to fly," said Behravesh.

But adopting a common fiscal system would require countries with millennia of history to cede their sovereignty to some higher EU bureaucracy. Proud citizens of each nation likely would object, which means the politics of democratic Europe may preclude the EU from taking the structural economic reforms it needs to survive.

"We all know what to do, but we don't know how to get re-elected once we have done it," Jean-Claude Juncker, Luxembourg's prime minister, recently acknowledged.

Yet if Europeans fail to build a new economic order, an EU collapse would have severe economic consequences everywhere.

The 2008 U.S. financial crisis drove home how interconnected the global financial markets have become. When U.S. investment bank Lehman Brothers went bankrupt, a wave of panic swept global financial markets and credit froze across the planet.

Much like Americans angry about bank bailouts, Europeans aren't happy about having to bail out indebted nations such as Greece or Portugal. Most experts now think a structured default by Greece on its government bonds is inevitable.

There've been numerous debt defaults in the developing world in recent years, most notably in Latin America, but no developed nation has defaulted on bond obligations in modern times.

Latin American nations allowed their currencies to plunge in value against the dollar in order to export their way back to recovery. But Greece adopted the euro and lacks this option. It's being asked to take severe austerity measures like those imposed in Latin America, without the escape valve of currency devaluation.

A Greek default on its debts likely won't be allowed until EU leaders have built a financial firewall around their banks to ensure that Greek default doesn't lead to a contagion of financial panic in other countries.

"On one hand, you have to say that creditors have to take a hit ... but when exactly do you want creditors to take a hit, and how you manage contagion? It is uncharted territory," said Nicolas Veron, a senior economist at Bruegel, a Belgium-based economic think tank.

There's another complex wrinkle.

European leaders are trying to boost a bailout fund by issuing new debt to replace old debt that's at risk of default. But by taking on additional debt, these nations, particularly France, risk a downgrade by credit-rating agencies because of their swelling debt loads. That would raise their borrowing costs, making it harder to deal with the mounting debt crisis.

One major source of strife between European leaders is how large their European Financial Stabilization Facility, the so-called bailout fund, should be. The EFSF began issuing bonds in January to essentially backstop borrowing by struggling member countries.

As market turmoil grew, this fund was expanded in March, and again in July. It now stands at 780 billion euros ($1.074 trillion), with loaning funds of 440 billion euros (about $606 billion.).

Just three months later, however, this is again viewed as not enough.

Wall Street analysts note that Italy, Spain and Belgium collectively must issue debt worth more than $1.2 trillion soon. Sharply higher borrowing costs could devastate their economies.

The White House put out a statement late Thursday saying President Barack Obama discussed the European crisis via videoconference with German Chancellor Angela Merkel, French President Nicolas Sarkozy and British Prime Minister David Cameron, (whose country retains its own currency, the pound sterling, not the euro).

"Chancellor Merkel and President Sarkozy fully understand the urgency of the issues in the Eurozone and are working diligently to develop a comprehensive solution that addresses the challenge and which will be politically sustainable," the White House said in a statement that was as much nudge as support.

Some analysts warn that if EU leaders cannot make credible progress soon, it could ultimately lead to collapse of their 60-year experiment in integrating Europe. French leader Sarkozy sounded that theme recently, warning that failure could return Europe to its dark past, which led to two world wars in the first half of the 20th Century.

In Senate testimony Thursday, prominent economist Fred Bergsten dismissed that possibility, contending that Europeans have worked too long and hard to let that happen.

"The Europeans are not going to let the euro collapse," said Bergsten, who heads the Peterson Institute for International Economics in Washington. "We'd better understand and support their moves to fiscal union, because that is the positive outcome for them and us over time."

Read more: http://www.mcclatchydc.com/2011/10/21/127988/global-economic-fate-hinges-on.html#ixzz1bVViWq00

Of course this is all on Drudge 10/22/11

BoA Bank Predicts Another US Downgrade -- In Just Few Weeks... http://www.businessinsider.com/huge-prediction-from-bofa-another-us-debt-downgrade-is-coming-in-just-a-few-weeks-2011-10 http://www.marketwatch.com/story/eu-bank-failures-will-crash-wall-street-again-2011-10-18
The credit rating agencies have strongly suggested that further rating cuts are likely if Congress does not come up with a credible long-run plan. Hence, we expect at least one credit downgrade in late November or early December when the super Committee crashes.

Read more: http://www.businessinsider.com/huge-prediction-from-bofa-another-us-debt-downgrade-is-coming-in-just-a-few-weeks-2011-10#ixzz1baJZpgHI

EU 'bank failures will crash Wall Street'... http://www.marketwatch.com/story/eu-bank-failures-will-crash-wall-street-again-2011-10-18
SAN LUIS OBISPO, Calif. (MarketWatch) — Worst-case scenario’s closing fast: Occupy Wall Street growing. But no political power or allies yet. Feared yes, attacked by GOP proxy tea party. Soon the Occupation will explode into a new American Revolution.

Merkel Takes Aim at Italy... http://www.bloomberg.com/news/2011-10-22/merkel-says-euro-crisis-to-be-solved-by-reducing-debt.html
Chancellor Angela Merkel took aim at Italy as typifying profligate government, saying the resolution of Europe’s crisis will only emerge if countries slash their debt and live within their means.

New euro 'empire' plot by Brussels... http://www.telegraph.co.uk/news/worldnews/europe/8843785/New-euro-empire-plot-by-Brussels.html
European Union chiefs are drawing up plans for a single “Treasury” to oversee tax and spending across the 17 eurozone nations. The proposal, put forward by Herman Van Rompuy, the European Council president, would be the clearest sign yet of a new “United States of Europe” — with Britain left on the sidelines.

for your consideration, a paper i wrote this morning; inspired from a powerful visionary dream i had last night;

"Freedom from money on our doorstep?" written by matt presti 10/23/2011

There is a chance, a very small window of opportunity for us all on this earth, the so-called 99% (that has become a popular mantra as of late), to finally be done with the fraud of all of these lopsided interest based currency systems. We are rapidly approaching the end of the U.S. dollar as well as the collapse of most of the financial systems around this planet. The great opportunity before us lies in being able to develop local cooperative bartering systems that will sustain our local communities with people who desire to give to others for the benefit of the whole without taking more than the share of that which they give. Basic survival is the base daily need.
Food, water and shelter have always been the motive of any true monetary system. Without these we would die. Through giving alone can mankind uplift himself from the ultimate misery that stands on the doorstep of his civilization. Should man let the “powers that were” dictate their solution of a “world currency” that will be offered up after total market collapse, then mankind can sign the death certificate of his species and let the genocide “en masse” begin. One world currency is the damnation of the human race due to those who would be behind the curtain managing, printing/distributing this one world currency (which some say is ultimately the micro-chip). It is indeed the same folks who gave us the original central banking model (fiat currency – Federal Reserve - Rothchilds) that has so unbalanced the world markets as a whole that we find ourselves in this conundrum to begin with. The pattern is clear. The stage is set. The markets will crash, and people full of fear will turn away from themselves and their own unique power because of fear thereby supplanting their own initiative and inspiration traded for the solutions offered by “the least among us”, the elite criminal class of psychopaths that have enslaved us through the media and propaganda weaponry employed against the 99% for many thousands of years now. Gold, silver, metals, paper, etc., are not what we need. We do not need to place any more external value upon any material other than ourselves. Our worth should not be summed by the amount of external materials one has accumulated, but by how much one gives toward the uplift of his fellow man. Our worth as human beings should never again be based on what we own outside of ourselves but what we share from within. For the model of money should be based on nature’s ways and processes of giving for equal regiving. Nature never takes and so we could change the world by modeling ourselves after the greatest teacher on Earth. A mankind populated by giving humans would begin the reversal of damage caused by the egomaniacal materialistic externalist minds stuck in divided duality. These psychopathic monsters seek only to supplant our true nature in favor of domination and chaos, division and disorder, war and competition. We live in an ordered Universe. We create chaos out of order and the pain of that truth is obvious when one looks hard at the factors that are destabilizing our world civilization at this very moment.
The warning is simple. The test will soon be laid upon the desktop. We stand upon the precipice of heaven or hell, peace or perpetual war, freedom or indentured servitude, love or fear.
This is the line in the sand that gives mankind 2 choices; freedom from totalitarian socialistic dictatorship or another 2000 year cycle of total enslavement (only this time it will be much worse because technology will be used to enslave us like never before). If you take their solution to the coming market collapse (a world currency), then you have chosen enslavement and suicide based on your fear of loss. If you choose freedom, then together with many like minds we will work to begin to solve the destructive problems that the “root of all evil” has caused our species and remodel our civilization based on the abundance created by the power of love. It won’t be easy, why should it be? Nothing good ever came by way of the easy solution. Hard work alone molds man’s identity into the pillar of strength that will be required to reverse this collective damage. Man will have to learn the value of man to man relations. Man will have to learn to give after so many generations of taking. Man will have to upgrade his consciousness from one of hoarding riches of the earth to giving out the true riches of his soul to his fellow man thereby creating the necessary momentum for the reversal of such barbaric minded practices that have led humanity to the doorstep of destruction. Man must transform from the individual into the Universalist. There is no other way to succeed other than to model our new system on that of Nature herself. Taking without giving will only produce an imbalance which will eventually destroy itself. Giving for equal regiving will perpetuate the Universal heartbeat within all of man’s institutions and dealings with all other men. There is no other way. Nature demands balance from all of her species. She is not kind to those who break the law of balance for which she ultimately controls all the reactions of all imbalances. To the degree that man breaks the one law of balance is to the degree that man will be broken by this One law. This is inexorable law.
It would be well and true not to trust any more fear based solutions offered by way of the failed political, religious, academic, corporate or military authorities that infect our collective consciousness within the human domain. These sick consciousnesses should be put aside; put down if need be so that the majority (99%) may have the opportunity to begin the reversal of this damage caused by the fear mongering barbaric reptilian minded takers of our species. The solutions to the world crisis now facing mankind squarely in the face must come from the artists among us. The philosophers, poets, painters, musicians and dreamers among mankind who have the gift of seeing the order in this Universe through the eyes of nature and natural processes, should be brought together to use the power of their collective imagination and understanding of nature’s processes to formulate a truly balanced solution to this coming catastrophe. Mankind should no longer be lead by man alone. Woman should occupy all offices equally with man so that all decisions and all actions undertaken will have true Universal balance within each of them respectively. This alone will save mankind. There is no other way lest civilization fall again. Mankind must decide. The difference between is fear or love. Choose.

Matt, I couldn't agree with you more. The question is how to get this implemented. I'm sure many are now ready to pull funds out of various big banks and take them elsewhere. The key is setting up an ethical system where funds can be managed by ethical people.

BTW, loved your video.

NEW YORK | Sun Oct 23, 2011 12:53pm EDT
(Reuters) - The United States will likely suffer the loss of its triple-A credit rating from another major rating agency by the end of this year due to concerns over the deficit, Bank of America Merrill Lynch forecasts. http://www.reuters.com/article/2011/10/23/us-usa-rating-merrill-idUSTRE79M2J120111023


Sarkozy backs down on ECB crisis role BRUSSELS - French President Nicolas Sarkozy backed down on Sunday in the face of implacable German opposition to demands to use unlimited European Central Bank funds to fight the euro zone's deepening sovereign debt crisis. | Video
http://www.reuters.com/article/2011/10/23/us-eurozone-idUSTRE79I0IC20111023

(Reuters) - Bankers have offered to stretch the voluntary haircut on Greek debt to 40 percent, while politicians demand the private sector agree to writedowns of at least 50 percent, senior German banking source said on Sunday. http://www.reuters.com/article/2011/10/23/us-banks-haircut-idUSTRE79M2HW20111023

(Reuters) - Spain, Italy under pressure as EU frames deal on bank capital EU finance ministers outlined a deal on Saturday for recapitalizing European banks, and the leaders of Germany and France said they hoped for a breakthrough in tackling the euro zone debt crisis at a summit on Wednesday. http://www.reuters.com/article/2011/10/22/us-eurozone-idUSTRE79I0IC20111022

Banks cannot rely on taxpayer cash - Swedish finmin - (Reuters) - Banks cannot rely on taxpayers' money to recapitalise themselves, Sweden's Finance Minister said on Saturday ahead of a meeting of EU finance ministers that was due to discuss steps to strengthen the European banking system. http://www.reuters.com/article/2011/10/22/us-eu-sweden-recapitalisation-idUSTRE79L0IF20111022

Volcker wants crackdown on money market funds, GSEs (Reuters) - Former Federal Reserve Chairman Paul Volcker is advocating for regulatory control over the money-market mutual fund industry and believes the government should stop financing mortgages. http://www.reuters.com/article/2011/10/23/us-volcker-regulations-idUSTRE79M2B520111023

Risk rally pummels dollar ahead of EU summits (Reuters) - The U.S. dollar tumbled on Friday and hit a record low against the yen on speculation Europe was closer to solving its debt crisis, but most analysts doubt that policy-makers will produce a comprehensive plan soon. http://www.reuters.com/article/2011/10/21/us-markets-forex-idUSTRE74U02L20111021

That was very good Matt. I keep wondering if the existing system can be modified with positive reinforcement, to facilitate a constructive evolutionary change in international banking? What if there were a net-worth ceiling of one-million US dollars, and a silver-backed currency? What if there were an international equivalent of the General Accountability Office and the Securities and Exchange Commission? Why can't we reign-in corruption within the existing system? Why does there have to be a damn collapse of the world economy. There is so much doom and gloom talk everywhere, including right here on this site. I grew-up listening to doom and gloom Bible-prophecy. Then I listened to years and years of New Age doom and gloom. There is negativity everywhere. I've recently conceptually moved into four 600 square-foot office-apartments in the City of London, Vatican City, Washington D.C., and Copernicus Crater -- to try to invite myself to the world and solar system government party -- so as to gain an understanding of how things should properly function in this neck of the woods. I intend to be the token Benevolent Megalomaniac in Megalomaniacs Anonymous...

thanks Carol...

imho, any monetary system that replaces the current one must at its core be interest free. If it is not, the cycle will perpetuate all over again and the same thing will happen within 20 years. How do we educate people who are more concerned with the score of the world series than a sound monetary system? Economists do not even come close to a solution. i hate to say it but i think choosing not to participate is as of now the only logical answer or path. If indeed the system does fail, which it certainly looks as if it is going in that direction, i see this outcome as a real possibility of what could then come about.
For two weeks man will go ape. After roughly that amount of time, man will realize he still gets to have his shelter (homes), his car, his personal belongings as there aren't enough enforcers to kick everyone out and repossess everything we own. When that realization hits mass man, they will collectively realize that it is not as bad as it could have been. the question comes down to what will replace the failed system? if we go with their recommendation of a world currency, we doom ourselves to repeating the original failure as anything "they" offer is always for them alone in the end. That is why i think the cooperative local support system of bartering like Argentina did when their currency tumbled will be most logical. Argentina survived and so will we. Man needs one another and i don't think "mad max" is the destiny of mankind in the mass. i sure hope we can elevate ourselves out of this mess and feel good about the fact that we could (needed self esteem). If only i knew for sure what could work. i can only dream about it as it all unfolds before us. Blessings to you. mp

Hmm, I like the no interest perspective as eventually interest is always going up. It appears that the primary objective is to bypass the current failing system and replace it with some that works and benefits all parties. Getting closer to the local level makes it personal and gives it a different type of strength, Much like the branches of a monkey tree grown down to the ground and supports it's expansive limbs... the members are the branches of support that give this type of entity strength.

If money were to fail humankind would likely fall back on the barter system and trade what they don't need for what the do need. Of course I would hope one is able to maintain personal dignity through out this type of transition and understand that life goes on. The sun will still come up and the seasons pass.

As I see it the two sticking points are transportation and the electrical grid. I do have a mini horse and amish buggy along with a solar panel, converter and battery. But I'm still looking at ways to step outside of the grid. We just got our own beehive but it will be awhile before we could even collect enough wax for candles.

Yet none of this is for me personally as my needs diminish more and more each year. Just collecting eggs and picking a few things out of the garden for dinner is immensely satisfying. So thinking downsizing to tiny houses and vertical gardens (food and shelter) is where my focus is drifting towards. Can you imagine how many folks lives could be transformed if this type of self-sufficiency thinking became the norm?

mattpresti wrote:for your consideration, a paper i wrote this morning; inspired from a powerful visionary dream i had last night;

"Freedom from money on our doorstep?" written by matt presti 10/23/2011

There is a chance, a very small window of opportunity for us all on this earth, the so-called 99% (that has become a popular mantra as of late), to finally be done with the fraud of all of these lopsided interest based currency systems. We are rapidly approaching the end of the U.S. dollar as well as the collapse of most of the financial systems around this planet. The great opportunity before us lies in being able to develop local cooperative bartering systems that will sustain our local communities with people who desire to give to others for the benefit of the whole without taking more than the share of that which they give. Basic survival is the base daily need.
Food, water and shelter have always been the motive of any true monetary system. Without these we would die. Through giving alone can mankind uplift himself from the ultimate misery that stands on the doorstep of his civilization. Should man let the “powers that were” dictate their solution of a “world currency” that will be offered up after total market collapse, then mankind can sign the death certificate of his species and let the genocide “en masse” begin. One world currency is the damnation of the human race due to those who would be behind the curtain managing, printing/distributing this one world currency (which some say is ultimately the micro-chip). It is indeed the same folks who gave us the original central banking model (fiat currency – Federal Reserve - Rothchilds) that has so unbalanced the world markets as a whole that we find ourselves in this conundrum to begin with. The pattern is clear. The stage is set. The markets will crash, and people full of fear will turn away from themselves and their own unique power because of fear thereby supplanting their own initiative and inspiration traded for the solutions offered by “the least among us”, the elite criminal class of psychopaths that have enslaved us through the media and propaganda weaponry employed against the 99% for many thousands of years now. Gold, silver, metals, paper, etc., are not what we need. We do not need to place any more external value upon any material other than ourselves. Our worth should not be summed by the amount of external materials one has accumulated, but by how much one gives toward the uplift of his fellow man. Our worth as human beings should never again be based on what we own outside of ourselves but what we share from within. For the model of money should be based on nature’s ways and processes of giving for equal regiving. Nature never takes and so we could change the world by modeling ourselves after the greatest teacher on Earth. A mankind populated by giving humans would begin the reversal of damage caused by the egomaniacal materialistic externalist minds stuck in divided duality. These psychopathic monsters seek only to supplant our true nature in favor of domination and chaos, division and disorder, war and competition. We live in an ordered Universe. We create chaos out of order and the pain of that truth is obvious when one looks hard at the factors that are destabilizing our world civilization at this very moment.
The warning is simple. The test will soon be laid upon the desktop. We stand upon the precipice of heaven or hell, peace or perpetual war, freedom or indentured servitude, love or fear.
This is the line in the sand that gives mankind 2 choices; freedom from totalitarian socialistic dictatorship or another 2000 year cycle of total enslavement (only this time it will be much worse because technology will be used to enslave us like never before). If you take their solution to the coming market collapse (a world currency), then you have chosen enslavement and suicide based on your fear of loss. If you choose freedom, then together with many like minds we will work to begin to solve the destructive problems that the “root of all evil” has caused our species and remodel our civilization based on the abundance created by the power of love. It won’t be easy, why should it be? Nothing good ever came by way of the easy solution. Hard work alone molds man’s identity into the pillar of strength that will be required to reverse this collective damage. Man will have to learn the value of man to man relations. Man will have to learn to give after so many generations of taking. Man will have to upgrade his consciousness from one of hoarding riches of the earth to giving out the true riches of his soul to his fellow man thereby creating the necessary momentum for the reversal of such barbaric minded practices that have led humanity to the doorstep of destruction. Man must transform from the individual into the Universalist. There is no other way to succeed other than to model our new system on that of Nature herself. Taking without giving will only produce an imbalance which will eventually destroy itself. Giving for equal regiving will perpetuate the Universal heartbeat within all of man’s institutions and dealings with all other men. There is no other way. Nature demands balance from all of her species. She is not kind to those who break the law of balance for which she ultimately controls all the reactions of all imbalances. To the degree that man breaks the one law of balance is to the degree that man will be broken by this One law. This is inexorable law.
It would be well and true not to trust any more fear based solutions offered by way of the failed political, religious, academic, corporate or military authorities that infect our collective consciousness within the human domain. These sick consciousnesses should be put aside; put down if need be so that the majority (99%) may have the opportunity to begin the reversal of this damage caused by the fear mongering barbaric reptilian minded takers of our species. The solutions to the world crisis now facing mankind squarely in the face must come from the artists among us. The philosophers, poets, painters, musicians and dreamers among mankind who have the gift of seeing the order in this Universe through the eyes of nature and natural processes, should be brought together to use the power of their collective imagination and understanding of nature’s processes to formulate a truly balanced solution to this coming catastrophe. Mankind should no longer be lead by man alone. Woman should occupy all offices equally with man so that all decisions and all actions undertaken will have true Universal balance within each of them respectively. This alone will save mankind. There is no other way lest civilization fall again. Mankind must decide. The difference between is fear or love. Choose.

Great vision Matt! Thank You for sharing it with us! I shall read it again and again untill I can vividly see the picture! Manifistation will follow.

Carol wrote:Hmm, I like the no interest perspective as eventually interest is always going up. It appears that the primary objective is to bypass the current failing system and replace it with some that works and benefits all parties. Getting closer to the local level makes it personal and gives it a different type of strength, Much like the branches of a monkey tree grown down to the ground and supports it's expansive limbs... the members are the branches of support that give this type of entity strength.

If money were to fail humankind would likely fall back on the barter system and trade what they don't need for what the do need. Of course I would hope one is able to maintain personal dignity through out this type of transition and understand that life goes on. The sun will still come up and the seasons pass.

As I see it the two sticking points are transportation and the electrical grid. I do have a mini horse and amish buggy along with a solar panel, converter and battery. But I'm still looking at ways to step outside of the grid. We just got our own beehive but it will be awhile before we could even collect enough wax for candles.

Yet none of this is for me personally as my needs diminish more and more each year. Just collecting eggs and picking a few things out of the garden for dinner is immensely satisfying. So thinking downsizing to tiny houses and vertical gardens (food and shelter) is where my focus is drifting towards. Can you imagine how many folks lives could be transformed if this type of self-sufficiency thinking became the norm?

Indeed!
In 2010, in the US alone, an estimated 25 million more people had a home garden than in 2009. Something is waking up in man that hasn't been aroused for a long long time; our relationship to nature and a desire for self-sufficiency. The worst case scenario is that we have to start valuing each other instead of the farce of money. Not such a bad thing imho. Necessity is the mother of all invention. Free energy machines are on our doorstep. We have alot to do, and nothing to fear.

Revealed – the capitalist network that runs the world
AS PROTESTS against financial power sweep the world this week, science may have confirmed the protesters' worst fears. An analysis of the relationships between 43,000 transnational corporations has identified a relatively small group of companies, mainly banks, with disproportionate power over the global economy.
------------------------
The German canceler Angela Merckel said to French Sarkozi that it is not right that only a few hundred people are running and benefiting from the world economy..bankers and some corporations... http://www.newscientist.com/article/mg21228354.500-revealed--the-capitalist-network-that-runs-the-world.html
---------------------
The study, by a trio of complex systems theorists at the Swiss Federal Institute of Technology in Zurich, is the first to go beyond ideology to empirically identify such a network of power. It combines the mathematics long used to model natural systems with comprehensive corporate data to map ownership among the world's transnational corporations (TNCs).

The top 50 of the 147 superconnected companies
1. Barclays plc
2. Capital Group Companies Inc
3. FMR Corporation
4. AXA
5. State Street Corporation
6. JP Morgan Chase & Co
7. Legal & General Group plc
8. Vanguard Group Inc
9. UBS AG
10. Merrill Lynch & Co Inc
11. Wellington Management Co LLP
12. Deutsche Bank AG
13. Franklin Resources Inc
14. Credit Suisse Group
15. Walton Enterprises LLC
16. Bank of New York Mellon Corp
17. Natixis
18. Goldman Sachs Group Inc
19. T Rowe Price Group Inc
20. Legg Mason Inc
21. Morgan Stanley
22. Mitsubishi UFJ Financial Group Inc
23. Northern Trust Corporation
24. Société Générale
25. Bank of America Corporation
26. Lloyds TSB Group plc
27. Invesco plc
28. Allianz SE 29. TIAA
30. Old Mutual Public Limited Company
31. Aviva plc
32. Schroders plc
33. Dodge & Cox
34. Lehman Brothers Holdings Inc*
35. Sun Life Financial Inc
36. Standard Life plc
37. CNCE
38. Nomura Holdings Inc
39. The Depository Trust Company
40. Massachusetts Mutual Life Insurance
41. ING Groep NV
42. Brandes Investment Partners LP
43. Unicredito Italiano SPA
44. Deposit Insurance Corporation of Japan
45. Vereniging Aegon
46. BNP Paribas
47. Affiliated Managers Group Inc
48. Resona Holdings Inc
49. Capital Group International Inc
50. China Petrochemical Group Company

http://arxiv.org/PS_cache/arxiv/pdf/1107/1107.5728v2.pdf
http://www.newscientist.com/article/mg21228354.500-revealed--the-capitalist-network-that-runs-the-world.html#bx283545B1
http://money.cnn.com/2011/10/23/news/international/eurozone_debt_crisis_talks/index.htm?iid=Lead

Why doesn't this surprise me? The other shoe just dropped. So who is going to run this world bank? Probably the biggest Mafioso since the birth of Christ. Keep in mind that this is the OWG's plan from the onset along with creating a one-world currency.


Vatican calls for global authority on economy, raps “idolatry of the market” The Vatican called on Monday for the establishment of a “global public authority” and a “central world bank” to rule over financial institutions that have become outdated and often ineffective in dealing fairly with crises. The document from the Vatican’s Justice and Peace department should please the “Occupy Wall Street” demonstrators and similar movements around the world who have protested against the economic downturn.

“Towards Reforming the International Financial and Monetary Systems in the Context of a Global Public Authority,” was at times very specific, calling, for example, for taxation measures on financial transactions. “The economic and financial crisis which the world is going through calls everyone, individuals and peoples, to examine in depth the principles and the cultural and moral values at the basis of social coexistence,” it said.

It condemned what it called “the idolatry of the market” as well as a “neo-liberal thinking” that it said looked exclusively at technical solutions to economic problems. “In fact, the crisis has revealed behaviours like selfishness, collective greed and hoarding of goods on a great scale,” it said, adding that world economics needed an “ethic of solidarity” among rich and poor nations.

“If no solutions are found to the various forms of injustice, the negative effects that will follow on the social, political and economic level will be destined to create a climate of growing hostility and even violence, and ultimately undermine the very foundations of democratic institutions, even the ones considered most solid,” it said.

It called for the establishment of “a supranational authority” with worldwide scope and “universal jurisdiction” to guide economic policies and decisions.

read more at link above.

Carol wrote:Why doesn't this surprise me?
VATICAN CALLS FOR 'CENTRAL WORLD BANK

Oh you posted it. Sorry I didn't search the forums before starting a new thread:
http://www.themistsofavalon.net/t3362-vatican-calls-for-central-world-bank

The American phoenix is slowly rising again. Within five years or so, the US will be well on its way to self-sufficiency in fuel and energy. Manufacturing will have closed the labour gap with China in a clutch of key industries. The current account might even be in surplus. http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/8844646/World-power-swings-back-to-America.html


Poor China. I hope they don't fall into the same fiscal trap the US did. They have a whole lot more people who could show up for a OWS rally. Doesn't the following sound familiar?


23 October 2011 - China's Premier Wen Jiabao says the country must control food and property inflation to ensure social stability. Consumer prices rose 6.1% last month, compared with the same month last year, the National Bureau of Statistics said. The premier said it was important to ensure adequate food supplies and increase the amount of agricultural reserves. He also addressed soaring home prices, which is a critical issue for many Chinese households."

Read more at link.

Good for you China. Too bad the US didn't get a grip on those that led Congress into the 2008 Banksters bailout at the expense of the American taxpayer. Pay attention China... you're holding US debt as a result of the banksters as well. Not a very good prospect unless the IQD revalues where you will get more then you ever dreamed about back into you pocket and your own National Economy.

However, you of all nations have a huge advantage in help your people produce their own food at home. Think small portable vertical gardens designs that include good soil, seeds and instructions for successful gardening.

Leaked data gives traders an unfair advantage by helping them anticipate market moves and profit from them. "The leaking of national macroeconomic data harms economic operations, prevents fair market competition and affects government credibility, thereby causing heavy losses to the interests of the country, society and individuals," said Li Zhongcheng, deputy director general of the national prosecutor's office." read more at link above

Oct 24 - David Cameron on Monday suffered his largest parliamentary rebellion since becoming prime minister as around 80 Conservative lawmakers defied their leader to vote in favour of holding a referendum on Britain's EU membership.
Cameron's government, which is against holding a referendum, in the end won the House of Commons vote 483-111 due to support from the Liberal Democrats -- the Conservatives' euro-friendly junior coalition partners -- and the main opposition Labour Party.

But the eurosceptic wing of the Conservative Party delivered Cameron a blow by ignoring whip pressure to vote in favour of a referendum in the biggest show of internal party dissent since he took office in May 2010.

George Young, the Conservative leader of the Commons, said he understood that 80 or 81 of the party's 305 MPs had voted against the government, but official figures were not expected until Tuesday.

It is also the most serious ever rebellion against a British prime minister on the issue of the EU.

read more at link above...

NEW YORK (CNNMoney) -- European leaders insist they are making progress on a comprehensive plan to tackle the eurozone's debt and banking crisis. On Wednesday, government heads from all 27 members of the European Union will gather for a second time, following a summit over the weekend that failed to produce a definitive accord. EU politicians have promised to deliver an ambitious and durable solution to a crisis that poses the biggest threat to the euro since the common currency was launched over a decade ago.

"The sovereign debt crisis threatens the very existence of the eurozone," said Howard Archer, chief European economist at IHS Global. "It is therefore absolutely imperative that European policymakers finally deliver a major package of measures at the conclusion of their summit on Wednesday." The latest talks have focused on a trio of interconnected challenges: restructuring the Greek government's crushing debt load, strengthening European banks and boosting the effectiveness of a limited rescue fund.

read a lot more at http://money.cnn.com/2011/10/25/news/international/europe_crisis_talks/index.htm?section=money_markets

Largest ever EU rebellion rocks British PM...
David Cameron on Monday suffered his largest parliamentary rebellion since becoming prime minister as around 80 Conservative lawmakers defied their leader to vote in favour of holding a referendum on Britain's EU membership.
Read more at http://www.breitbart.com/article.php?id=CNG.a78af65cc128f522f558eaa64f38258c.461&show_article=1

Bloody nose for Cameron...
Read more at http://www.dailymail.co.uk/news/article-2053011/EU-referendum-David-Cameron-shows-strain-biggest-Tory-mutiny-Europe.html

'Unknown territory' if summit fails..
French Prime Minister Francois Fillon has told ruling party lawmakers that failure at Wednesday's eurozone summit could "tip the European continent into unknown territory," sources at the meeting said.
Read more at http://news.id.msn.com/business/article.aspx?cp-documentid=5446593

Finance ministers cancel meeting...
Stocks were off their worst levels, but still lower Tuesday following news the EU finance ministers cancelled their Wednesday meeting and as investors digested a slew of mixed earnings reports and weak economic news. Meanwhile, Reuters reported that the finance ministers meeting was cancelled because the details of the issues to be discussed had not been finalized, quoting EU sources, adding that the financial officials will still meet ahead of the summit. “Europe is looking at the abyss of their financial system and until this financial recapitalization is put in place, banks are going to fail,” said Doug Cote, chief investment strategist for ING Investment Management. “What Europe is risking right now is contagion by putting this meeting off.”
Read more at http://www.cnbc.com/id/45029954

Italian gov't on brink of collapse...
Silvio Berlusconi’s centre-right coalition government in Italy appears in danger of collapsing over European Union demands for a demonstration of concrete action on economic reform by Wednesday’s summit of eurozone leaders. The ultimatum was delivered as part of efforts to resolve the eurozone sovereign debt crisis, but the Italians’ failure to reach agreement on reform threatens EU leaders’ stated goal of finalising at Wednesday’s summit a comprehensive solution to the crisis.
Read more at http://www.ft.com/intl/cms/s/0/21d5c8be-feeb-11e0-9b2f-00144feabdc0.html#axzz1bo43mJDJ

Factbox: What EU leaders must decide at crisis summit
(Reuters) - Leaders of the 17 euro zone countries will meet again in Brussels on Wednesday to finalize a "comprehensive strategy" to try to resolve the region's sovereign debt problems. After reaching broad agreement on strengthening banks in the first part of the summit on Sunday, here are the main decisions they are likely to take on Wednesday to tackle a crisis that has raged for nearly two years and threatens the world economy.
Read more at http://www.reuters.com/article/2011/10/25/us-eurozone-summit-issues-idUSTRE79N4XX20111025

GLOBAL MARKETS-Hope for euro deal, China growth lift stocks
Oct 24 (Reuters) - World stocks gained on Monday as investors bet on a positive outcome to the euro zone crisis talks and took comfort from signs that China's economy may not be in as much danger as feared. Also of importance to investor sentiment was a rise in China's flash purchasing managers' index, suggesting that manufacturing in the world's second-largest economy expanded moderately in October after three months of contraction.
Read more at http://www.reuters.com/article/2011/10/24/markets-global-idUSL5E7LO0QF20111024

Forced Greece deal "tantamount to default": II
(Reuters) - Any deal forcing banks to take bigger losses on Greek debt "would be tantamount to default" and impose a high cost on European taxpayers, the lead negotiator for the banks warned on Monday. Banks and other private sector holders of Greek government bonds have been holding talks with EU officials to revise a plan agreed in July and take bigger losses on the debt, but Charles Dallara, managing director of the Institute of International Finance (IIF), warned against pushing too hard.
Read more at http://www.reuters.com/article/2011/10/24/us-banks-europe-idUSTRE79N5MD20111024


The consumer reality...

US consumer confidence falls to recession level
(Reuters) - Consumer confidence unexpectedly dropped to its lowest level in two-and-a-half years in October as consumers fretted about job and income prospects.
http://www.reuters.com/article/2011/10/25/us-usa-economy-idUSTRE79O4A620111025

Home Prices Fall More Than Forecast in August
Home prices in 20 U.S. cities dropped more than forecast in August, highlighting one of the obstacles facing the economic recovery in its third year
http://finance.yahoo.com/news/Home-Prices-Fall-More-Than-bloomberg-1795068324.html;_ylt=AiPmt8p5H3VypX4Y.A.C1q27YWsA;_ylu=X3oDMTE1aDdzdHAxBHBvcwMzBHNlYwN0b3BTdG9yaWVzBHNsawNob21lcHJpY2VzZmE-?x=0&sec=topStories&pos=main&asset=&ccode=

The Unthinkable Is Poised to Happen, Economist Warns
Wiedemer’s predictions hit a nerve. In 2006, he and his team of economists accurately predicted the four-bubble meltdown in the housing, stock, private debt, and consumer spending markets that almost sunk America. Regardless of his warnings and survival advice, Bernanke and Greenspan were not about to support Wiedemer publicly, nor were the mainstream media. Citing the unthinkable, he provides disturbing evidence and financial charts forecasting 50% unemployment, a 90% stock market collapse, and 100% annual inflation. “I doubted some of his predictions at first. But then Robert showed me the charts that provided evidence for such disturbing claims,” DeHoog commented.

Read more: Aftershock Survival Summit Predicts the Unthinkable http://www.moneynews.com/StreetTalk/aftershock-financial-wiedemer-economy/2011/08/17/id/407695



But what is not in the news is how the how price of oil for gas is taking what was once expendable income from the consumer. That extra cash being paid each month on gas and energy to heat a house these days could have been a payment for a new car.

Of special note this morning are these two articles. Poor China is once again being approached to prop up up other countries fiscal mismanagement. If this keep up the new world currency besides the Swiss Franc (because they are smart about hanging onto other people's money) will be the Chinese Yuan. Of course if the Mid-East got off their a ss (i.e. Iraq) they could own the financial world. However, the real sucker punch is the way the U.S. is holding out with their trillions of barrels of untapped oil, a stock pile greater then any other nation. What a rip off to the struggling American people and once again a fine example of self-serving Big Business criminal behavior.


(Reuters) - The head of Europe's bailout fund sought financial support from China on Friday to help resolve the bloc's debt crisis, saying that while no quick deal was in sight he was still confident Beijing would keep buying bonds issued by his fund. Klaus Regling, chief executive of the European Financial Stability Facility (EFSF), was in Beijing for talks with Chinese officials a day after euro zone leaders struck a hard-fought accord on the two-year crisis that nonetheless left major economies Italy and Spain under financial market pressure.

After the European summit in Brussels reached agreement in the early hours of Thursday, French President Nicolas Sarkozy immediately got on the phone to China to seek financial help, saying Beijing had "a major role to play".

But despite a characteristically bullish sales pitch, the French leader did not appear to have received any specific commitments.

European governments had announced an agreement under which private banks and insurers would accept 50 percent losses on their Greek debt holdings in the latest bid to cut Athens' debt load to sustainable levels.

European leaders are now under pressure to finalize the details of the plan if they expect China and others to support it and Regling said he expected Beijing to continue buying bonds issued by the EFSF.

"We all know China has a particular need to invest surpluses," Regling told a Beijing news conference, referring to the country's $3.2 trillion of foreign exchange reserves, the world's biggest.

Regling said the bailout deal with Greece was an exceptional case that he did not believe would have to be repeated for other nations.

Many in financial markets are concerned that the fund is not big enough to cope if Italy and Spain are drawn deeper into the crisis.

Italy's borrowing costs hit new euro-era highs at a bond auction on Friday. Prime Minister Silvio Berlusconi was forced to promise new reforms and counter speculation that his coalition government was about to collapse.

read more at link above.

and this...

The head of the eurozone's bailout fund is beginning attempts to persuade China to invest in a scheme to help rescue member countries facing debt crises.

[Personal Note: DON'T DO IT CHINA. THEY CAN'T EVEN MANAGE WHAT MONEY THEY HAVE. WHAT MAKES ANYONE THINK THEY CAN MANAGE YOURS?]

After meeting Chinese leaders, Klaus Regling said there were no formal negotiations and would be no deal now.

It is thought China may pay about 70bn euros ($100bn) into the fund, which is expected to be boosted to 1tn euros.

Meanwhile French President Nicolas Sarkozy said debt-ridden Greece's entry to the eurozone was a mistake.

Greece was "not ready" when it joined in 2001, he said, adding that it could be rescued thanks to a new deal on the debt crisis.

European leaders worked into the early hours of Thursday in Brussels to secure an agreement aimed at preventing the crisis from spreading to larger eurozone economies.

The deal triggered a worldwide shares rally.

'Regular buyer'
Beijing has made it clear that it will demand strong guarantees on the safety of any contribution it might make.

read more at link above...


Note to self: Invest in Chinese Yuan after Swiss Francs - after IQD RV.