global economy

Beginning Of A Breakdown In International Trade-Hugo Salinas Price [Video]

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worldMexican business magnate Hugo Salinas Price says that there are “many more” devaluations coming for China’s currency. Salinas Price thinks that many other countries will cut the value of their currencies because the world economy is in deep trouble. Salinas Price contends, “When China does this, that is very serious. Already, the United States is receiving huge quantities of Chinese goods. It has an enormous trade deficit with China, and now that they devalued, it’s going to get worse. There is going to have to be a corresponding move on the part of the United States. . . . This is going to be the beginning of a breakdown in international trade.

Is the United States going to stand by because China continues to devalue? How much has the Chinese currency been devalued, not even 8%. That’s not going to help the Chinese much. When you have a devaluation, it has to be about 40%. Then it really has teeth in it. I think the Chinese will continue to devalue.”

[youtube=https://youtu.be/fBqcdlYsl5I]

Salinas Price points out the real problem comes from countries printing money out of thin air and goes on say, “This entire fiat money circus the world has been on is coming to a head. I see many comments from diverse people, and the problems are just mounting up. You have Greece with 11 million people, and if they get this last bit of money, they will have some $400 billion of debt. How can 11 million people work off a debt of $400 billion? It just can’t be done. The people running the euro are in dreamland.”

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We Need A Crash To Sort The Wheat From The Chaff

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stabilityCharles Hugh Smith – When a speculator bought a new particle-board-and-paint McMansion in the middle of nowhere in 2007 with nothing down and a $500,000 mortgage, the lender and the buyer both considered the house as $500,000 of collateral. The lender counted the house as a $500,000 asset, and the speculator considered it his lottery ticket in the housing bubble sweepstakes: when (not if) the house leaped to $600,000, the speculator could sell, pay the commission and closing costs and skim the balance as low-risk profit.

But was the house really worth $500,000? That’s the trouble with assets bubbles inflated by central-bank/central-state intervention: when inefficient companies and inflated assets are never allowed to fall/fail, it’s impossible to tell the difference between real collateral and phantom collateral.

The implosion of the housing bubble led to an initial spike of price discovery. The speculator jingle-mailed the ownership of the poorly constructed McMansion to the lender, who ended up selling the home to another speculator who reckoned a 50% discount made the house cheap for $250,000. Continue reading →

Meet The Secretive Group That Runs The World

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Over the centuries there have been many stories, some based on loose facts, others based on hearsay, conjecture, speculation and outright lies, about groups of people who “control the world.” Some of these are partially accurate, others are wildly hyperbolic, but when it comes to the historic record, nothing comes closer to the stereotypical, secretive group determining the fate of over 7 billion people, than the Bank of International Settlements, which hides in such plain sight, that few have ever paid much attention.

central bank

The following is an excerpt from TOWER OF BASEL: The Shadowy History of the Secret Bank that Runs the World by Adam LeBor.  Reprinted with permission from PublicAffairs.

The world’s most exclusive club has eighteen members. They gather every other month on a Sunday evening at 7 p.m. in conference room E in a circular tower block whose tinted windows overlook the central Basel railway station. Their discussion lasts for one hour, perhaps an hour and a half. Some of those present bring a colleague with them, but the aides rarely speak during this most confidential of conclaves. The meeting closes, the aides leave, and those remaining retire for dinner in the dining room on the eighteenth floor, rightly confident that the food and the wine will be superb. The meal, which continues until 11 p.m. or midnight, is where the real work is done. The protocol and hospitality, honed for more than eight decades, are faultless. Anything said at the dining table, it is understood, is not to be repeated elsewhere.

Few, if any, of those enjoying their haute cuisine and grand cru wines— some of the best Switzerland can offer—would be recognized by passers-by, but they include a good number of the most powerful people in the world. These men—they are almost all men—are central bankers. They have come to Basel to attend the Economic Consultative Committee (ECC) of the Bank for International Settlements (BIS), which is the bank for central banks. Its current members [ZH: as of 2013] include Ben Bernanke, the chairman of the US Federal Reserve; Sir Mervyn King, the governor of the Bank of England; Mario Draghi, of the European Central Bank; Zhou Xiaochuan of the Bank of China; and the central bank governors of Germany, France, Italy, Sweden, Canada, India, and Brazil. Jaime Caruana, a former governor of the Bank of Spain, the BIS’s general manager, joins them. Continue reading →

Richest 1% Have More Than Rest Of Humanity Combined

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 “The world’s wealthiest, reads the report, “have generated and sustained their vast riches through their interests and activities in a few important economic sectors, including finance and insurance and pharmaceuticals and healthcare.” – J Queally

richpsychopathyIn less than two years, if current trends continued unchecked, the richest 1% percent of people on the planet will own at least half of the world’s wealth.

That’s the conclusion of a new report from Oxfam International, released Monday, which states that the rate of global inequality is not only morally obscene, but an existential threat to the economies of the world and the very survival of the planet. Alongside climate change, Oxfam says that spiraling disparity between the super-rich and everyone else, is brewing disaster for humanity as a whole.

“Do we really want to live in a world where the one percent own more than the rest of us combined?” asked Winnie Byanyima, Executive Director of Oxfam International. “The scale of global inequality is quite simply staggering and despite the issues shooting up the global agenda, the gap between the richest and the rest is widening fast.”

According to the report—titled Wealth: Having It All and Wanting More (pdf):

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