Tag Archives: economic collapse

Russia Declares War on Dollar. Putin financial advisor calls for Anti-Dollar coalition of countries.

Putin’s aide proposes anti-dollar alliance to force US to end Ukraine’s civil war

 

Sergey Glazyev, the economic aide of Vladimir Putin, published an article outlining a plan for “undermining the economic strength of the US” in order to force Washington to stop the civil war in Ukraine. Glazyev believes that the only way of making the US give up its plans on starting a new cold war is to crash the dollar system.

In his article, published by Argumenty Nedeli, Putin’s economic aide and the mastermind behind the Eurasian Economic Union, argues that Washington is trying to provoke a Russian military intervention in Ukraine, using the junta in Kiev as bait. If fulfilled, the plan will give Washington a number of important benefits. Firstly, it will allow the US to introduce new sanctions against Russia, writing off Moscow’s portfolio of US Treasury bills. More important is that a new wave of sanctions will create a situation in which Russian companies won’t be able to service their debts to European banks.

According to Glazyev, the so-called “third phase” of sanctions against Russia will be a tremendous cost for the European Union. The total estimated losses will be higher than 1 trillion euros. Such losses will severely hurt the European economy, making the US the sole “safe haven” in the world. Harsh sanctions against Russia will also displace Gazprom from the European energy market, leaving it wide open for the much more expensive LNG from the US.

Co-opting European countries in a new arms race and military operations against Russia will increase American political influence in Europe and will help the US force the European Union to accept the American version of the Transatlantic Trade and Investment Partnership, a trade agreement that will basically transform the EU into a big economic colony of the US. Glazyev believes that igniting a new war in Europe will only bring benefits for America and only problems for the European Union. Washington has repeatedly used global and regional wars for the benefit of  the American economy and now the White House is trying to use the civil war in Ukraine as a pretext to repeat the old trick.

Glazyev’s set of countermeasures specifically targets the core strength of the US war machine, i.e. the Fed’s printing press. Putin’s advisor proposes the creation of a “broad anti-dollar alliance” of countries willing and able to drop the dollar from their international trade. Members of the alliance would also refrain from keeping the currency reserves in dollar-denominated instruments. Glazyev advocates treating positions in dollar-denominated instruments like holdings of junk securities and believes that regulators should require full collateralization of such holdings. An anti-dollar coalition would be the first step for the creation of an anti-war coalition that can help stop the US’ aggression.

Unsurprisingly, Sergey Glazyev believes that the main role in the creation of such a political coalition is to be played by the European business community because America’s attempts to ignite a war in Europe and a cold war against Russia are threatening the interests of big European business. Judging by the recent efforts to stop the sanctions against Russia, made by the German, French, Italian and Austrian business leaders, Putin’s aide is right in his assessment. Somewhat surprisingly for Washington, the war for Ukraine may soon become the war for Europe’s independence from the US and a war against the dollar.

(originally reported by The Voice of Russia –  http://voiceofrussia.com/2014_06_18/Putins-aide-proposes-anti-dollar-alliance-to-force-US-to-end-Ukraines-civil-war-8030/

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Putin Advisor Proposes “Anti-Dollar Alliance” To Halt US Aggression Abroad

It has been a while since both Ukraine, and the ongoing Russian response to western sanctions (which set off the great Eurasian axis in motion, pushing China and Russia close together, and accelerating the “Holy Grail” gas deal between the two countries) have made headlines. It is still not clear just why the western media dropped Ukraine coverage like a hot potato, especially since the civil war in Ukraine’s Donbas continues to rage and claim dozens of casualties on both sides. Perhaps the audience has simply gotten tired of hearing about mixed chess/checkers game between Putin vs Obama, and instead has reverted to reading the propaganda surrounding just as deadly events in the third war of Iraq in as many decades.

However, “out of sight” may be just what Russia’s political elite wants. In fact, as VoR’s  Valentin Mândr??escu reports, while the great US spin and distraction machine is focused elsewhere, Russia is already preparing for the next steps. Which brings us to Putin advisor Sergey Glazyev, the same person who in early March was the first to suggest Russia dump US bonds and abandon the dollar in retaliation to US sanctions, a strategy which worked because even as the Kremlin has retained control over Crimea, western sanctions have magically halted (and not only that, but as the Russian central bank just reported, the country’s 2014 current account surplus may be as high as $35 billion, up from $33 billion in 2013, and a far cry from some fabricated “$200+ billion” in Russian capital outflows which Mario Draghi was warning about recently). Glazyev was also the person instrumental in pushing the Kremlin to approach China and force the nat gas deal with Beijing which took place not necessarily at the most beneficial terms for Russia.

It is this same Glazyev who published an article in Russian Argumenty Nedeli, in which he outlined a plan for “undermining the economic strength of the US” in order to force Washington to stop the civil war in Ukraine. Glazyev believes that the only way of making the US give up its plans on starting a new cold war is to crash the dollar system.

As summarized by VoR, in his article, published by Argumenty Nedeli, Putin’s economic aide and the mastermind behind the Eurasian Economic Union, argues that Washington is trying to provoke a Russian military intervention in Ukraine, using the junta in Kiev as bait. If fulfilled, the plan will give Washington a number of important benefits. Firstly, it will allow the US to introduce new sanctions against Russia, writing off Moscow’s portfolio of US Treasury bills. More important is that a new wave of sanctions will create a situation in which Russian companies won’t be able to service their debts to European banks.

According to Glazyev, the so-called “third phase” of sanctions against Russia will be a tremendous cost for the European Union. The total estimated losses will be higher than 1 trillion euros. Such losses will severely hurt the European economy, making the US the sole “safe haven” in the world. Harsh sanctions against Russia will also displace Gazprom from the European energy market, leaving it wide open for the much more expensive LNG from the US.

Co-opting European countries in a new arms race and military operations against Russia will increase American political influence in Europe and will help the US force the European Union to accept the American version of the Transatlantic Trade and Investment Partnership, a trade agreement that will basically transform the EU into a big economic colony of the US. Glazyev believes that igniting a new war in Europe will only bring benefits for America and only problems for the European Union. Washington has repeatedly used global and regional wars for the benefit of  the American economy and now the White House is trying to use the civil war in Ukraine as a pretext to repeat the old trick.

Glazyev’s set of countermeasures specifically targets the core strength of the US war machine, i.e. the Fed’s printing press. Putin’s advisor proposes the creation of a “broad anti-dollar alliance” of countries willing and able to drop the dollar from their international trade. Members of the alliance would also refrain from keeping the currency reserves in dollar-denominated instruments. Glazyev advocates treating positions in dollar-denominated instruments like holdings of junk securities and believes that regulators should require full collateralization of such holdings. An anti-dollar coalition would be the first step for the creation of an anti-war coalition that can help stop the US’ aggression.

Unsurprisingly, Sergey Glazyev believes that the main role in the creation of such a political coalition is to be played by the European business community because America’s attempts to ignite a war in Europe and a cold war against Russia are threatening the interests of big European business. Judging by the recent efforts to stop the sanctions against Russia, made by the German, French, Italian and Austrian business leaders, Putin’s aide is right in his assessment. Somewhat surprisingly for Washington, the war for Ukraine may soon become the war for Europe’s independence from the US and a war against the dollar.

(originally reported by zerohedge.com – http://www.zerohedge.com/news/2014-06-18/putin-advisor-proposes-anti-dollar-alliance-halt-us-foreign-aggression)

U.S.Debt hits new all-time Record!

What would you say f I told you that Americans are nearly 60 TRILLION dollars in debt? Well, it is true. When you total up all forms of debt including government debt, business debt, mortgage debt and consumer debt, we are 59.4 trillion dollars in debt.

That is an amount of money so large that it is difficult to describe it with words. For example, if you were alive when Jesus Christ was born and you had spent 80 million dollars every single day since then, you still would not have spent 59.4 trillion dollars by now. And most of this debt has been accumulated in recent decades. If you go back 40 years ago, total debt in America was sitting at about 2.2 trillion dollars. Somehow over the past four decades we have allowed the total amount of debt in the United States to get approximately 27 times larger. This is utter insanity, and anyone that thinks this is sustainable is completely deluded. We are living in the greatest debt bubble of all time, and there is no way that this is going to end well. Just check out the chart…

When the last recession hit, total debt in America actually started going down for a short period of time.

But then the Federal Reserve and our politicians in Washington worked feverishly to reinflate the bubble and they assured everyone that everything was going to be just fine. So Americans once again resorted to their free spending ways, and now total debt in the United States is rising at almost the same trajectory as before and has hit a new all-time record high.

We see a similar thing when we look at a chart for consumer debt in America…

For a while after the recession it was trendy to cut up your credit cards and get out of debt.

But that fad wore off rather quickly, didn’t it?

It is almost as if 2008 never happened. We are making the same mistakes with debt that we did before.

As I noted recently, total consumer credit in the US has risen by 22 percent over the past three years alone, and at this point 56 percent of all Americans have a subprime credit rating.

And have you noticed that a lot of people are not afraid to extend themselves in order to buy shiny new vehicles these days?

During the first quarter of this year, the size of the average vehicle loan soared to a new all-time record high of $27,612.

Five years ago, that number was just $24,174.

And as I noted in one recent article, the size of the average monthly car payment in this country is now up to $474.

That is practically a mortgage payment.

Speaking of mortgage payments, even though home sales have been falling and the rate of homeownership in the United States is the lowest that it has been in 19 years, a very large percentage of those who own homes are still overextended.

In fact, one recent survey discovered that a whopping 52 percent of Americans cannot even afford the house that they are living in right now.

At the same time, an increasing number of Americans are acting as if the last financial crisis never happened and are treating their homes like piggy banks.  Home equity loans are soaring again, and when the next great crisis strikes a lot of those people are going to end up getting into a lot of financial trouble.

There has been much written about what is wrong with the housing industry, but the truth is that home prices are still way too high and young adults cannot afford to purchase homes because they are already loaded down by huge amounts of debt even before they get to the point where they are ready to buy.

In fact, a newly released survey found that 47 percent of millennials are spending at least half of their paychecks on paying off debt…

Four in 10 millennials say they are “overwhelmed” by their debt — nearly double the number of baby boomers who feel that way, according to a Wells Fargo survey of more than 1,600 millennials between 22 and 33 years old, and 1,500 baby boomers between 49 and 59 years old.

To try to get out from underneath it, 47% said they spend at least half of their monthly paychecks on paying off their debts.

When I read that I was absolutely astounded.

Of course the biggest debt that many young adults are facing is student loan debt. According to the Federal Reserve, there is now more than 1.2 trillion dollars of student loan debt in this country, and about 124 billion dollars of that total is more than 90 days delinquent.

What we have done to our young people is shameful. We have encouraged them to sign up for a lifetime of debt slavery before they even understand what life is all about. The following is an excerpt from my previous article entitled “Is College A Waste Of Time And Money?”…

In America today, approximately two-thirds of all college students graduate with student loan debt, and the average debt level has been steadily rising. In fact, one study found that “70 percent of the class of 2013 is graduating with college-related debt – averaging $35,200 – including federal, state and private loans, as well as debt owed to family and accumulated through credit cards.”

That would be bad enough if most of these students were getting decent jobs that enabled them to service that debt.

But unfortunately, that is often not the case. It has been estimated that about half of all recent college graduates are working jobs that do not even require a college degree.

Considering what you just read, is it a surprise that half of all college graduates in America are still financially dependent on their parents when they are two years out of college?

According to the U.S. Census Bureau, only 36 percent of all Americans under the age of 35 own a home at this point. That is the lowest level that has ever been recorded.

And we are passing on to our young people the largest single debt in all of human history. Weighing in at 17.5 trillion dollars, the US national debt is a colossal behemoth. And almost all of that debt has been accumulated over the past 40 years. In fact, 40 years ago the US national debt was less than half a trillion dollars.

But this is just the beginning. As the Baby Boomer “demographic tsunami” washes through our economy, we are going to be facing a wave of red ink unlike anything we have ever contemplated before.

Meanwhile, the rest of the planet is drowning in debt as well.

As I wrote about the other day, the total amount of debt in the world has risen to a new all-time record high of $223,300,000,000,000.

Our “leaders” keep acting as if these debt levels can keep growing much faster than the overall level of economic growth indefinitely.

But anyone with even a shred of common sense knows that you can’t spend more money that you bring in forever.

At some point, a day of reckoning arrives.

2008 should have been a major wakeup call that resulted in massive changes. But instead, our leaders just patched up the old system and reinflated the old bubbles so that they are now even larger than they were before.

They assure us that they know exactly what they are doing and that everything will be just fine.

Unfortunately, they are dead wrong.

(originally reported by The Economic Collpase – http://theeconomiccollapseblog.com/archives/the-united-states-of-debt-total-debt-in-america-hits-a-new-record-high-of-nearly-60-trillion-dollars)

Austria to audit gold reserves at the Bank of England

Austrias gold reserves stored in London are estimated at 150 tonnes.

Austria is planning to send auditors to the Bank of England in order to verify the existence of Austrias gold reserves stored in british vaults.

The Austrian accountability office will sent a delegation to London in order to check on Austrias gold reserves stored in vaults at the Bank of England. This is reported by Austrian magazine Trend. The measure is seen as a consequence of growing public pressure. There is a rising disbelief among Austrians about the existence of the gold.

“I acknowledge the request. Any grocery store is obliged to do inventory once a year. It is the only way of getting rid of these unreasonable allegations”, Ewald Nowotny, Governor of the National Bank of Austria tells Trend.

Austria officially owns 280 tonnes of gold of which 17 percent are kept in vaults inside the country. Around 150 tonnes are estimated to be stored in London.

In recent years doubts about the existence and the quality of Germanys monetary gold stored at the New York Fed and the Bank of England were raised by a rising number of sceptics. In January the Bundesbank eventually announced plans to repatriate most of Gemanys gold reserves until 2020.

(originally reported by German site goldreporter.de and Austrian magazine Trend
– http://www.goldreporter.de/austria-to-audit-gold-reserves-at-the-bank-of-england/gold/42400/)

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First Germany, Now Austria Demands An Audit Of Its Offshore Held Gold

First it was Germany, now another AAA-rated European country is starting to get concerned about its hard assets.

Overnight Bloomberg reported that following in Bundesbank’s footsteps, Austria will audit its gold reserves located in the UK, which represent 80% of its total gold holdings. This gold reserve reviews held at Bank of England in London will be first conducted by external auditors, Christian Gutleder, a spokesman for the Austrian central bank, says via telephone.

As a reminder, Austria held 80% of its roughly 280 tons of gold in U.K., according to last annual report.

Gutleder explained that the Central bank has checked its reserves regularly in the past, adding that gold reserves haven’t changed since 2007. Which begs the question: why check them now then?

According to the official explanation that review comes after euro-skeptic Freedom Party demanded more transparency, repatriation of reserves. Perhaps it is time to rename the Euroskeptic party into the “we doubt our gold is where you say it is” skeptics. A better explanation was provided by the Austrian Trend magazine, which said that “the measure is seen as a consequence of growing public pressure. There is a rising disbelief among Austrians about the existence of the gold.”

Joking aside, with Euroskeptics across Europe ascendent, we wonder which central European nation will be the first to uncover that its gold is no longer where it is supposed to be (that most certainly includes the Banque de France).

So first Germany (which at this rate may repatriate its gold held in New York, London and Paris some time in the year 3000, now Austria… Who’s next to confirm that all those doubts about infinite rehypothecation of physical gold with countless beneficiaries of paper receivables will be the next conspiracy theory to become conspiracy fact, after last week’s surprising announcement that Barclays (the first of many) had manipulated paper gold prices on at least one occasions in the past decade.

(originally reported by zerohedge.com – http://www.zerohedge.com/news/2014-05-26/first-germany-now-austria-demands-audit-its-offshore-held-gold)

Investing in Gold

Investing in Gold

If you were offered 100k in cash or 100k in Gold but you couldn’t touch either for 5 years, which would you take? Most people who are educated about the subject would take gold, let’s find out why.

Supply plays a very large role in the price of gold. It is impossible to say exactly how much gold has ever been produced. The best estimate suggests that if you add up all the gold ever produced it would fill up 2.9 Olympic sized swimming pools. This illustrates that there isn’t an unlimited supply of gold, frankly every year the world only produces about 14 cubic feet of gold, that just enough to fill an average sized living room. Till this day there isn’t any means of creating artificial gold, therefore the metals we do have cannot be diluted, unlike the US dollar supply. Gold has been something of value for the last 5,000 years and it’s always has been a world-wide recognized currency.

Although supply is an important factor of gold’s prices, demand has as much importance if not more.  There are five big reasons why gold has a very high demand, and why most investors choose to purchase gold over other investments.

Security against Inflation:

Gold is in such demand is because it offers security against inflation. Currently the U.S is in debt 16.6 trillion dollars. As more money is printed goods and services cost more. This causes the purchasing power of the dollar to decline due to inflation.

Tangible Asset:

No matter what happens in the paper currency market gold will always maintain some intrinsic value and therefore a stable “safe haven” for investors whenever there is an uncertain economic climate.

Highly Liquid:

Just like how real estate is a tangible asset, precious metals are also tangible assets. However unlike real estate gold is very liquid and can be easily converted into cash. Selling precious metals is as easy as calling your precious metals dealer and making a request. Unlike real estate there is no need to market or open escrow in order to liquidate your asset.

Diversification:

As mentioned before gold is considered a “safe haven” investment. We normally recommend our clients to have 20-30% of their portfolio in precious metals. This is because the metals market typically counter acts the equities markets. So when stocks, bonds, and mutual funds go down. Precious metals go up in value. Having a diversified portfolio is an important factor in successful investing.

Profit Potential

As mentioned before gold has been of value for the last 5,000 years, and just in the last 10 years gold has given investors an annual return of 20% on their investment. Even thou Gold is a great way to protect your money against the declining dollar, it is also a great way to increase your portfolio value.

Numis Financial offers two ways of purchasing gold, the first way is by physical delivery, and second is to hold gold within your retirement account. If you are new to precious metals Numis Financial offers a Free Precious Metals Guide  to help you during due-diligence  and educational period. Requesting a Free Precious Metals Guide is very simple, simply go to www.NumisFinancial.com and submit your request. After your request has been submitted, a account executive will call you to verify shipping address and also answer any questions you may have. This service is done free of charge even if you’re not quite ready to invest yet.

Industrial Silver Shortage is Here

On Jan 17th 2013 The U.S. Mint halted the sale of one ounce Silver American Eagles due to the lack of supply of silver. Six million coins were sold in the first 17 days of the New Year to precious metals dealers across the country. Silver commodities analyst Ted Butler says that the industrial silver shortage is also why there has been a 10 week delay in Apple iMac production in China. The overall supply shortage of metals may lead to a panic in the market and massive rise in price.

Ted Butler has predicted and been waiting for the eventual shortage of physical silver. He comments that the panic buying of silver will finally terminate the bank cartels manipulation of the bullion silver market.  Currently we use 40% more silver than what we can mine. This news is no surprise to the trade floor at Numis Financial. Silver is at still a great buy and should be an essential part of your portfolio.  Please click to see the media coverage on this story. 

 

http://www.youtube.com/watch?v=lBeSPLlifcI

 

Dollar Collapse

Weakening of the U.S. Dollar

Although the U.S. Dollar is one of the world’s most important reserve currencies, The US Fed continues to recklessly print more money as The US economy catapults into unprecedented debt. The more money that is printed the weaker the dollar becomes.The weakening dollar negatively affects the stock market, bond market, mutual funds, and money market accounts. Inversely commodities like Gold, Silver and Oil rise in price because it takes more dollars to purchase these same assets. As you can see in chart below the dollar has been on a steady decline since President Nixon took the US dollar off the Gold standard in August 15, 1971 (Nixon Shock)

 

The International Monetary Fund (IMF) recently issued a statement about replacing the dollar as the world’s reserve currency with a system of Special Drawing Rights called SDR’s, an international type of currency created in 1969 which is, in effect, a “basket of national currencies” backed by the full faith and credit of the member countries governments. Due to the uncertainly with the US Dollar counties like China, Russia, and Japan have already started moving away from the dollar with more counties soon to follow.