UNSAFE BANKING NEWS BLOG
Publisher's Note... From David Bradshaw, Idea Factory Press
Below are breaking news stories about U.S. and global bank safety (or unsafety).
Please email us banking news links and/or your videos
discussing your personal banking experiences. Latest unsafe banking news videos here. Special Free Book Offer!April 2015
4.29.15 - Experts Reveal How Terrorists Could Turn These 32 U.S. Cities To 'Radioactive Holes' - Western Journalism Can you smell that smell? It comes not only from burning buildings and cars torched in Baltimore protests, and from the shots fired by Iranian warships as they seized a U.S.-allied freighter in the Persian Gulf on April 28, but also from the global economy and its reserve currency, the U.S. Dollar, catching fire. The evidence of this appears in a new investigative report titled AMERICA ENGULFED by Craig Smith and Lowell Ponte. Smith and Ponte show how Iran, by using terrorists as their delivery system for nuclear weapons, could turn 32 American and two Canadian cities, into "radioactive holes beneath their mushroom clouds that will remain 'clicking hot' with radioactivity for the next 20,000 years." See a list of prime target cities ...
4.6.15 - Zero Interest = Zero Growth - RealMoneyBlog
The dismal U.S. unemployment report for March was quietly released on Good Friday, which showed just 126,000 nonfarm payroll jobs were created, about half of what the markets expected...
3.18.15 - FED UP? Can we ever find our way back to free markets? - WJ By Craig Smith & Lowell Ponte - Would the Federal Reserve keep a key interest rate at or near zero, continuing to give free money to the biggest corporations and banks, the casino known as Wall Street, and the growing Federal Government?
Business networks counted down to the economy-shaking Fed announcement: the easy cash will keep coming until at least June - and perhaps until 2017. Nobody was surprised
"They're never going to raise this interest rate," predicted financial reporter Charlie Gasparino.
Zero interest rates may be good news for the big guys and government, but it's very bad news for you and me. Whatever the economic system is that we now live under, it is no longer free market capitalism ...
3.13.15 - Banks Prepping for Tougher F.D.I.C. Exam - NY Times
The 29 banks that passed the Federal Reserve's annual boot camp mostly proved
they have built up sufficient capital to weather another 2008 crisis. Only one
of them has yet demonstrated what happens when the floodwaters rise well
beyond even those barriers. To do that, banking chiefs must also win over
the Federal Deposit Insurance Corporation, an even more cantankerous
regulator than the Fed. So far, only Wells Fargo has managed to pass
through the F.D.I.C.-Fed wringer. Bank of America, Bank of New York
Mellon, Barclays, Citigroup, Credit Suisse, Deutsche Bank, Goldman
Sachs, JPMorgan Chase, Morgan Stanley, State Street and UBS were
all told their plans failed on some shared points ... [Ed. Note: The
irony? The F.D.I.C. only has 14 cents in reserve for every dollar
on deposit that it insures! Today we have fractional banking backed up
by fractional insurance, as discussed in DON'T BANK ON IT!]3.11.15 - The Biggest Bank Heist in History! - FREE SPECIAL REPORT
The Fed's 'Free Money' is Hurting the Economy & Savers ... But Helping Banks & Stocks.
America's secretive Central Bank, (The Federal Reserve) has decided to keep interest
rates at ZERO, for the sixth straight YEAR! This is economic insanity! It's FREE money
for BIG government, BIG banks, and BIG speculators - and NO money or growth for American
JOBS or WAGES! This rip-off of the American public by the Federal Reserve will go down
in history as "The Biggest Bank Heist In History!"
according to a new report by authors Craig Smith and Lowell Ponte. The biggest bank heist in history began on December 16, 2008 amidst the uncertainty and fear of the worst financial crisis since the Great Depression ...
3.11.15 - Zombie Banking System Dead Ahead! - SwissAmerica
The euro is just over a nickel away from dollar parity for the first time since 2002. Some experts say this time the euro could fall to 85 cents. But "The math doesn't add up" reports CNBC. Could a strong dollar force the Fed to stall interest rate hikes? Stay tuned.
"Today, the dollar has reached the last of its cat-like nine lives. It might
continue as a ghost or virtual or zombie currency. It's fast-approaching next
fall, however, will end its final incarnation as tangible currency," writes
Craig Smith on page 69 of DON'T BANK ON IT!
Speaking of zombies ... it was a big day for big banks as the Fed ruled on stock buybacks and dividends. But Bloomberg reports, "Bank buybacks are a symptom
of a 'zombie banking system'" ...
3.11.15 - The Banks We Need - BloombergView
The 2008 crash and its consequences proved beyond a doubt the need
for stronger and smarter regulation of banking and finance.
Count on one thing: There will be another crash. That's how markets
work. Urgent vulnerabilities need addressing. The post-crash financial
system is more concentrated than before; the biggest banks more, not
less, dominant. Subprime lending is making a comeback. (Have we learned
nothing?) Federal Reserve Chair Janet Yellen told an audience last week,
"It is unfortunate that I need to underscore this, but we expect the
firms we oversee to follow the law and operate in an ethical manner." ...
3.11.15 - U.S. banks' buybacks no reason for celebration - Reuters
Big U.S. banks, including JPMorgan Chase & Co. and Citigroup Inc., are expected to win Federal Reserve backing today to buy back more shares and increase their dividends in the coming year.
Critics of the strategy question how sustainable it is, as banks essentially take money from one set of investors and give it to another, and at an added cost.
Issuing preferred shares to pay for common share dividends and buybacks is a symptom of a "zombie banking system," said veteran banking analyst David Hendler of independent research firm Viola Risk Advisors ...
3.5.15 - Recovery? Target Cuts 26,000 Jobs - Craig Smith on Fox News
Companies big and small are planning layoffs but why? "The economy has not turned around yet Neil," says Mr. Smith, author and Chairman of Swiss America. "Brick and mortar companies have some lessons to learn from Kmart, JCPenney, Sears and Radio Shack." Smith reminded Neil that major companies, like Target, have spent more than $2 trillion since 2009 on stock buybacks, pushing their stock prices up much faster than is healthy; given we are living in an economy only growing at 2%. Lower gas prices added $100 billion into the economy, yet even that has not boosted the economy much. Consumers are beginning to spend less and save more. Mr. Smith hopes the Obama administration will stay out of the way of a free market which knows how to grow jobs.
3.4.15 - Citigroup, Morgan Stanley, Merrill Lynch Received $6 Trillion from Fed - WSOP
Yesterday, the Senate Banking Committee held the first of its hearings on widespread demands to reform the Federal Reserve to make it more transparent and accountable.
Senator Elizabeth Warren put her finger on the pulse of the growing public outrage over how the Federal Reserve conducts much of its operations in secret and appears to frequently succumb to the desires of Wall Street to the detriment of the public interest.
Nearly all the money went to too-big-to-fail institutions. For example, in one emergency lending program, the Fed put out $9 trillion and over two-thirds of the money went to just three institutions: Citigroup, Morgan Stanley and Merrill Lynch.
One area of complete agreement among the four panelists at the hearing is that the New York Fed has far too much power and it must be reined in ...
3.3.15 - Why Obama fears a strong, persuasive Netanyahu - WestJourn
By Lowell Ponte - Visiting Israel for the first time several decades ago, I was shocked at being
told to report any packages left on buses or park benches because these might
be terrorist bombs. To Americans, this then seemed almost unimaginable.
In the wake of 9-11, we in the West are all Israelis now. What prompts
Prime Minister Netanyahu's speech before Congress is that Iran - whose
theocratic Islamist rulers believe they could trigger an apocalyptic
war that brings the cosmic world triumph of Islam - may be within months
of producing its first atomic bomb ...
3.3.15 - Buffett Warns About Banks 'Fool's Game' - MoneyNews
Legendary investor Warren Buffett, in his much-anticipated annual letter to
Berkshire Hathaway shareholders, called bankers, lawyers and financial
consultants "a lot of mouths with expensive tastes" who only lure unsuspecting
investors into 'a fool's game.' He said that "the Street's denizens ...
are always ready to suspend disbelief when dubious maneuvers are used
to manufacture rising per-share earnings, particularly if these acrobatics
produce mergers that generate huge fees for investment bankers." ...
3.2.15 - Why Trust in Banks Hasn't Been Restored - HarvardReview
The latest Edelman Trust Barometer - an annual survey conducted across
27 countries that assesses attitudes about the state of trust in different
institutions - shows that very little has changed since 2008, and the only
industry trusted less than finance and banking (and by just a hair's breadth)
is the media. Trust will be built only when clients perceive that benevolence,
truly felt, is underlying the decisions and actions of their bank.
Hiring more compliance officers is not going to help. Instead, banks
must recognize that winning the trust of their clients will take more
than complying with the law ...
February 20152.23.15 - Don't trust money you can't hold in your hand - MoneyWeek
Our financial system could take a surprising and catastrophic twist that almost
nobody imagines, let alone anticipates. Do you remember when a lethal tsunami
hit the beaches of Southeast Asia, killing thousands of people and causing billions'
worth of damage? Well, just before the 40-foot wall of water slammed into the
coast a very odd thing happened: the water disappeared. The tide went out farther
than anyone had ever seen before. Local fishermen headed for high ground immediately.
They knew what it meant. But the tourists went out onto the beach looking for shells!
The same thing could happen to the money supply. Cash could evaporate suddenly and
disastrously - just before we drown in it. In a 'normal' money system - one with gold coins or even pieces of paper - prices fall. But the money is still there.
Money becomes more valuable ...
2.19.15 - Negative Rates: A New Economic Mystery - Samuelson, RCM
To the long list of economic mysteries can now be added interest rates. They've been at rock bottom, as everyone knows. But now we've encountered something novel: negative interest rates. Lenders are actually paying for the privilege of allowing someone to borrow their money. It's occurring outside the United States, and the Federal Reserve's next move is expected to be raising rates. Still, there's no ironclad reason it couldn't happen here.
Negative interest rates, though unexpected, result from the easy-money policies of government central banks. Their bond-buying (known as "quantitative easing," or QE) has poured money into financial markets, driving down rates.
For the moment, negative interest rates are a market-driven curiosity. But what happens if governments or corporations begin selling bonds that start with negative rates? Then we're in completely unchartered waters.
2.18.15 - Why ZIRP Is Killing Fractional Reserve Banking - ZeroHedge
Could zero/negative interest rates be the end of the fractional banking system and force deposit holders into gold and silver?
You have to ask yourself when interest rates are so low and don't compensate you for inflation and with the risk that there could be bail-ins, considering the incredible derivative positions banks have, why keep your money at the bank.
The US, UK, EU, and Canada have recently all built the new "bail in" template into their laws in order to avoid imposing risk on "taxpayers" (and politicians and bankers of course).
Do you really think that the FDIC will have enough money to bail out all the deposit holders at $250,000 a pop?
With increasing negative real interest rates gold and silver look more attractive by the day.
Conclusion: compared to bonds gold and silver are clearly the preferred assets ...
2.18.15 - WE MAY BE TRAPPED IN "ZIRP WORLD"! - PRBuzz ZIRP Has Given America "Financial Diabetes," Say Experts - In 2008 America faced the worst financial crisis since the Great Depression. One major bank had failed and others were at risk of collapse. To save our economy, the Federal Reserve gambled by going pedal to the metal with its accelerator, slamming bank interest rates all the way to Zero. This Zero Rate Interest Policy (ZIRP) made money virtually free for our biggest banks. This wild new policy was supposed to save these banks and start them lending again. However, as monetary expert Craig R. Smith and veteran think tank futurist Lowell Ponte write in their new White Paper The Biggest Bank Heist In History How You Can Avoid Paying The Price For Banks and Government Getting Free Money, this caused crazy unintended consequences ...
2.17.15 - ZIRP Funds Wall Street Gamblers - Stockman, SeekingAlpha
For 73 months running the Fed has lashed the money markets to the gross financial anomaly of ZIRP. Never before in the history of the world has any central bank or other monetary authority decreed that overnight money shall be indefinitely free to gamblers or that liquid savers should have their hard earned wealth chronically confiscated by negative returns after inflation and taxes. So an urgent question screams out. Don't these obstinate zealots realize that zero cost overnight money has only one use, and that is to fund the carry trades of Wall Street gamblers? ....
2.15.15 - Bank Hackers Steal Millions via Malware - NY Times
Since late 2013, an unknown group of hackers has reportedly stolen $300 million - possibly as much as triple that amount - from banks across the world, with the majority of the victims in Russia. The attacks continue, all using roughly the same modus operandi:
By mimicking the bank procedures they have learned, hackers direct the banks' computers to steal money in a variety of ways:
Transferring money into hackers' fraudulent bank accounts. Using e-payment systems to send money to fraudulent accounts overseas.
Directing A.T.M.s to dispense money at set times and locations ...
2.13.15 - The Spectacular Too Big Failure of Dodd-Frank - FiscalTimes
Quick-to-fix regulation often creates unintended consequences ... Dodd-Frank ultimately
destroyed the community bank ... Consumers lost choice and completion, although farmers
were hurt most, according to a new study by the Harvard Kennedy School of Business.
If the point of Dodd-Frank was to eliminate TBTF, it's clearly failed. If the point of
Dodd-Frank was to help consumers, that too has been a failure. This should serve as
an object lesson about the nature of progressive reform and its impact on markets
and consumers ...
2.13.15 - Obama's cyber security push spurs privacy fears - FT
The White House is calling on Congress to again take up a bill that would encourage
companies to share information with the government about cyber threats by giving them
legal liability protection. The latest operating systems for Apple and Google smartphones
include strong encryption that the companies themselves cannot break. "Encryption is one
of our most important cyber security tools," said Kevin Bankston, policy director at
the Open Technology Institute. "We can't allow the short-sighted worries of some law
enforcement officials to undermine the longer-term goal of creating a truly secure internet." ...
2.13.15 - Central Banks Fight Currency Wars/Deflation 24/7 - Bloomberg
Central banks are now open all hours. Just as they worked weekends through the financial
crisis, policy makers are again signaling they can strike at any time for the good of
their economies. Perhaps the biggest reason, and why Rob Carnell, chief international
economist at ING Groep NV, suspects more surprise shifts to come, is the so-called
currency wars. Most notably, the European Central Bank's use of quantitative easing
has sent the euro sliding, forcing up other currencies in response, especially those
elsewhere in Europe. Meantime, the dollar has surged as the Federal Reserve
considers raising interest rates ...
2.12.15 - IRS Apologizes For Seizing Bank Accounts - AP
Pressured by Congress, the IRS said Wednesday it is changing its policies and
apologizing for seizing banks accounts from otherwise law-abiding business
owners simply because they structured bank transactions to avoid federal reporting
requirements. Their alleged crime: routinely making bank deposits of less than $10,000.
IRS Commissioner John Koskinen told Congress that the IRS is changing policies to
prevent the seizures, as long as the money came from legal means. In some cases, the
IRS seized and held bank accounts for years without bringing charges. Rep. Peter Roskam,
R-Ill., chairman of the Ways and Means oversight subcommittee, said the IRS has too
much power to seize assets, even if the agency doesn't have adequate evidence of a crime.
"The IRS doesn't have to give notice to the account-holder before seizing the assets.
And the IRS doesn't have to prove that the person is actually guilty of anything," Roskam said ...
2.10.15 - U.S. creates new agency to fight cyberthreat - Reuters
Calling the destructive cyberattack on Sony Pictures "a game changer," a top White House
official on Tuesday announced a new intelligence unit to coordinate analysis of cyberthreats.
President Barack Obama's homeland
security and counterterrorism adviser, Lisa Monaco said the new agency will rapidly pool and
disseminate data on cyberbreaches, which she said are ballooning in size and sophistication,
to U.S. agencies. Amit Yoran, president of security firm RSA, said the series of high-profile
attacks showed that change was needed. "We aren't getting the cyber job done," he said.
"I do think it is redundant," said Tom Kellermann, chief cybersecurity officer at Trend Micro
Inc. "You don't necessarily need a new center," he said, noting the existence of a similar
Homeland Security unit that shares cyberthreat information with the private sector ...
2.10.15 - World on Brink of Second Credit Crisis - Telegraph
The world economy stands on the brink of a second credit crisis as the vital transmission systems for lending between banks begin to seize up and the debt markets fall over. The latest round of quantitative easing from the European Central Bank will buy some time but it looks like too little too late.
The second global credit crisis is now already unfolding in China some 6,800 miles away from the epicenter of the first in the US. The bonds of Chinese real estate companies are now falling like dominoes.
The Keynesian pump priming that has taken place on a colossal scale across the world is failing. The Chinese economy was growing at 12% in 2010, but that slowed to 7.7% in 2013 and 7.4% last year - its weakest in 24 years. Economists expect Chinese growth to slow to 7% this year. It is the once booming property sector that has turned into a bust, and is now dragging down the wider economy as the bubble deflates ...
2.9.15 - US Gov's Biggest Leak in Banking History - Guardian
Questions for Department of Justice and IRS after disclosure of leak revealing HSBC's
private Swiss bank helped clients to conceal undeclared 'black' accounts.
The US government will come under intense pressure this week to explain what
action it took after receiving a massive cache of leaked data that revealed how
the Swiss banking arm of HSBC, the world's second-largest bank, helped wealthy
customers conceal billions of dollars of assets. The leaked files, which reveal
how HSBC advised some clients on how to circumvent domestic tax authorities,
were obtained through an international collaboration of news outlets, including
the Guardian, the French daily Le Monde, CBS 60 Minutes and the Washington-based
International Consortium of Investigative Journalists ...
2.9.15 - China Behind Anthem Hack Attack - Fox/Cavuto Video
China is strongly linked to the last major U.S. hack attack, this time striking 80
million policyholders with Anthem, one of America's largest health insurance companies.
Fox News host Neil Cavuto asks author and Swiss America Chairman Craig R. Smith,
"What will our enemies do with all of this data?" According to Smith, part of the hackers' motive is a reselling of this vital private information for the purpose of setting up fake cyber crime accounts. The other component is espionage, demonstrating that hackers can worm their way into the U.S. Defense Department. Mr. Smith reminds viewers China is a Communist country who does not play by the same international rules. They are willing to lie, cheat and then steal American intellectual property - hurting individuals, corporations, businesses, as well as compromising our nation's safety. Craig wonders, where is our President on this issue? And the bigger question: What if a door is still left open for hackers to get back into Anthem's system in the future?
2.6.15 - Chinese Hackers Suspected in Anthem Attack - Bloomberg
Technical details of the attack include "fingerprints" of a nation-state, according to two people familiar with the investigation, who said China is the early suspect. The information of 80 million customers stolen from insurance giant Anthem includes; names, birthdays,
medical IDs, social security numbers, street addresses, e-mail addresses and employment
information, including income data, and ranks among the largest in corporate history.
DON'T BANK ON IT!
author Craig R. Smith will be discussing today's raging international cyberwar,
which he refers to as "THE biggest threat facing Americans" Friday on Fox Business at 6pm MT...
2.2.15 - The Truth About Modern Banking -Pat Boone
A new national TV commercial by Pat Boone which explains the future of money and banking will debut next week on ABC Family Network and 700 Club. Boone offers a free copy of The Truth About Modern Banking.
1.30.15 - Lowell Ponte on Global Warming & Banking Risks - HowieCarr
Listen to DON'T BANK ON IT! co-author Lowell Ponte on The Howie Carr Show discussing
the recent storm in the Northeast and how Progressive politicians, like NY Major Bill
de Blasio, are exercising an extreme power over reach. As author of The Cooling,
which debunks most of the global warming evidence, Lowell feels strongly this issue
is being used as a political power and money grab. He also explains why the banking
system is another example of Progressive bungling, as detailed in his latest
book DON'T BANK ON IT! co-authored with Craig R. Smith.
1.29.15 - Nearly 1/3 of Americans stashing cash/coin outside banks - CNBC
29 percent of American say they're keeping at least some savings in cash
bills and coins, according to a new survey of 1,820 adults from American
Express. Of those holding cash savings, 53 percent are hiding it in a secret location.
The survey also found that about 1 in 4 consumers anticipates a financial emergency
this year, and hiding cash at home could be one way people are preparing.
Millennials are even more apt than other generations to go the mattress
or freezer route, with 67 percent of those saving cash saying that they
hide it outside a bank account ...
1.28.15 - Top 8 things giving investors angst - Rosenberg/FinPost
Oil plunging, companies cutting, Greeks rebelling and a currency war brewing: 2015 is off to a rocky start for investors.
Here's Gluskin-Sheff's chief economist David Rosenberg's list of the top worries for investors:
1) Bears are back ... 2) Blurred market vision ... 3) Rain on earnings parade ... 4) Capital Goods cuts ...
5) Greek tragedy ... 6) Long, cold winter for Russia ... 7) Hawish Fed talk ... 8) Global currency War ...
"How many people are aware that gold bullion was the world's second-best performing currency in 2014?" asks Rosenberg...
1.28.15 - Financial Enemies Hacking At America's Collapse - CBN News1.26.15 - Greek elections: end of the Euro? - Fortune
Greece's election results will not likely to be a catalyst for a sudden
break up of the Euro, they can be viewed as yet another in a series of
events that suggest that the union is failing. Sunday's elections offered
another example of the disintegration and fragmentation of Europe as an
effective source of government. Even in the wake of the announcement of
stimulus measures from the ECB, there isn't a great deal of good economic
news to report in Europe. With widespread unemployment in countries like Spain,
Greece, and Portugal, and a banking system that remains undercapitalized ...
1.22.15 - Trillion Euro QE Starts With a Bang - CNBC
European Central Bank (ECB) President Mario Draghi announced the launch of an open-ended, expanded monthly 60 billion euro ($70 billion) private and public bond-buying program on Thursday. The size of the program - which in total will be at least 1 trillion euros - was bigger than the 50 billion euro per month rumored prior to Draghi's announcement. Debt that is trading with a negative yield will also be eligible for the program. The euro slid against both the sterling and the U.S. dollar after Draghi's announcement...
1.22.15 - Goldman Sacks: 'We are in currency wars' - Reuters
Countries around the world are already engaged in a currency war in a bid to boost growth, Gary Cohn, the president and chief operating officer of Goldman Sachs, said on Thursday. "We are in currency wars," Cohn told a panel discussion at the World Economic Forum in Davos, Switzerland. "The prevailing view is that the easy way to stimulate economic growth is to have a low currency." ...
1.21.15 - Obama's Unbelievable "Statist of the Union" Speech - Ponte/PRB
In his January 20th "State of the Union" speech, President Barack Obama recalled his campaign promise to "rebuild our economy on a new foundation." In previous years he had spoken of his plan to "fundamentally transform" the United States, and to Joe the Plumber of his belief that America works best when we "spread the wealth around." Most Progressives scoff at those who believe in God, yet they themselves believe with dogmatic fervor in Santa Claus - in the idea that Uncle Santa government has an infinite bag of "free" goodies that can be given away to make society more equal while buying the votes of the beneficiaries for Mr. Obama's political party...Obama's "Statist of the Union" Speech - 4-min. Video ...
1.21.15 - ECB Calls for $58 Billion QE - WSJ
A proposal from the European Central Bank's Frankfurt-based executive board calls for bond purchases of roughly 50 billion euro ($58 billion) per month that would last for a minimum of one year.
The executive board's proposal indicates that the ECB could move more aggressively than financial markets have expected.
Markets fluctuated as investors digested the details. European stocks briefly rallied while the euro dived before moving higher. The currency recently traded at $1.1650 against the dollar...
1.21.15 - QE pushing world financial system out of control - Telegraph
Former BIS chief economist warns that QE in Europe is doomed to failure and may draw the region into deeper difficulties.
Beggar-thy-neighbour devaluations are spreading to every region. All the major central banks are stoking asset bubbles deliberately to put off the day of reckoning.
"We are in a world that is dangerously unanchored," said William White, the Swiss-based chairman of the OECD's Review Committee. "We're seeing true currency wars and everybody is doing it, and I have no idea where this is going to end."
Mr White said QE is a disguised form of competitive devaluation. "The Japanese are now doing it as well but nobody can complain because the US started it," he said...
1.15.15 - Swiss scrap euro peg on QE fears- Telegraph
The Swiss central bank has abandoned its exchange rate control and cut interest rates to -0.75pc, sending the franc soaring almost 30% against the single currency.
The shock move comes amid expectations that the European Central Bank (ECB) could launch a full-blown quantitative easing scheme as early as next Thursday, which is expected to reduce the euro's strength.
Investors traditionally favour the franc because of its stability, considering it a safe haven. CNBC reports, gold prices jumped another 2% today, to a 4-month high ...
1.14.15 - Court paves way for eurozone QE (Money Printing) - Telegraph
An opinion passed down by the European Court of Justice may mean that the "final hurdle" to a euro area quantitative easing scheme has been cleared. The Outright Monetary Transactions (OMT) program, the focus of an ECJ adviser's statement, was deemed to be an "unconventional monetary policy measure", but one that was "necessary" and "in principle legitimate". The statement comes at a crucial juncture for the ECB, as the eurozone has slid into deflation ...
1.14.15 - Bond yields fall after court opinion given - Irish Times
French, Belgian, Austrian, Dutch and Finnish 10-year yields hit record lows. The court opinion, which was preliminary and non-binding, eased concerns that the ECB would not be able to embark on large scale bond-buying program, known as quantitative easing (QE), to pump money into the bloc's stagnant economy and boost inflation. Traders said QE was a given and might be announced at next week's ECB meeting. ECB president Mario Draghi said a loose monetary policy was needed to achieve price stability and the governing council was determined to deliver it. Sharp falls in oil and copper prices further stoked fears that the euro zone might face a prolonged period of deflation ...
1.13.15 - The Only Way To Short Central Banks - Mark Faber/MW "My belief is that the big surprise this year is that investor confidence in central banks collapses. And when that happens - I can't short central banks, although I'd really like to, and the only way to short them is to go long gold, silver and platinum. That's the only way. That's something I will do," said Mark Faber, whose investment letter is called the Gloom Boom Doom Report. "I'm positive gold will go up substantially in 2015 - say 30%," Faber said at Societe Generale's global strategy presentation in London on Tuesday. "Real estate is high, stocks are high, bonds are high, art prices are high, and interest rates and short-term deposits are basically zero. The only sector that I think is very inexpensive is precious metals" ...
1.13.15 - The Case for RICO Charges Against JPMorgan Execs -WSOP
The U.S. Justice Department has yet to summon the courage to bring a criminal courtroom trial against JPMorgan's top executives but a serious public trial is underway nonetheless at the website JPMadoff.com. The two attorneys who created the site have now moved into their grand jury stage, presenting hard evidence on why RICO charges can, and should, be brought against top executives at JPMorgan Chase. To emphasize and crystallize the serial nature of JPMorgan's recurring crimes, attorneys Helen Chaitman and Lance Gotthoffer have created a breathtaking "Wheel of Misfortune." The Wheel shows that over the past four years, JPMorgan Chase has paid a stunning $29 billion to settle 25 different claims that it violated the law and defrauded either the public or its customers ...
1.13.15 - Robots to Greet Customers at Bank of Tokyo - WSJ
Customers at some branches of Bank of Tokyo Mitsubishi in Tokyo will soon be greeted by a robot, in what the bank says will be a first for any major financial institution in the world. The 58-centimeter robots, named NAO, can answer most basic customer-service questions in 19 languages, as well as analyze customers' facial expressions and behavior, the bank says. "We can ramp up communication with our customers by adding a tool like this" ...
1.12.15 - 5 ways your banking may change in 2015 - Bankrate It's clear that being a bank account holder will come with new surprises in 2015. Here are five ways your banking experience might change in 2015. 1. In 2015, financial institutions are working toward easing those fears with new EMV (Europay, MasterCard and Visa) debit cards. 2. There is going to be a lot of experimentation with wearable technology over the next year. 3. Person-to-person, or P2P, payment systems allows bank account holders to easily transfer money online or via a mobile device to another account holder. 4. Branches may continue to shrink in 2015, but they will not disappear. 5. From T-Mobile to Wal-Mart to PayPal, many companies that do not have "bank" in their names are beginning to offer financial services...
1.12.15 - Bank Collapses, QE On A Grand Scale & Skyrocketing Gold - KWN
In 2015 there will not only be political unrest but also great social unrest due to people getting poorer and more dissatisfied with governments not being able to provide for all their needs. Also, look at the tremendous volatility.
Of course there will also be bank collapses and bail-ins. There will also be pension fund collapses, and money market collapses. Right now we are seeing half a trillion dollars that went into financing the shale oil expansion which is in trouble, plus many times amount that in derivatives. And the one quadrillion dollars of derivatives will be the biggest debacle of all...gold will move by hundreds of dollars in just a few days ...
1.7.14 - BREAKING THE BANK:
Authors Warn Dismantling JPMorgan Chase Won't Prevent Financial Meltdown - AzCentral Would America's economy be safer if today's "Too Big To Fail" banks like JPMorgan Chase were broken up into smaller companies? Not according to Craig R. Smith and Lowell Ponte, authors of Don't Bank On It! The Unsafe World of 21st Century Banking and a new White Paper After the G-20: A Follow-Up: Did Your Dollars in the Bank Just Become Dollars at Risk?
Mr. Smith and Ponte explain, "The bail-in idea is intended to protect taxpayers and government money, but in reality it does not necessarily get taxpayers off the hook. The potential for bank losses is so immense it can easily exceed all of the bank's deposits." ...
1.5.15 - $70 Trillion Reasons Citigroup May Be the Next AIG - ZeroHedge
Citigroup's $70 trillion in derivative holdings has just surpassed JPMorgan's $65 trillion. While every other major bank was derisking its balance sheet, Citi increased its total derivative holdings by a whopping $9 trillion in Q3. Citigroup crafted the legislation which passed Congress and put taxpayers on the hook for FDIC-insured derivative exposure ...
1.2.15 - 2015: Year of Dollar Danger - Evans-Pritchard, Telegraph
America's closed economy can handle a surging dollar and a fresh cycle of rising interest rates. Large parts of the world cannot. That in a nutshell is the story of 2015 ...
1.2.15 - Welcome to the faceless future of banking - CBNC
Community-level banking, particularly from large institutions, will become more cost efficient and less personal. Banks shut some 1,407 branches in 2014, a near record and a trend likely to continue ...
1.2.15 - Top concerns: Gov't Leadership, Economy - Gallup
In 2014, four issues generated enough public concern: government leadership at 18%, the economy (17%), unemployment or jobs (15%) and healthcare (10%).
1.2.15 - Ten economic warning signs of 2015 - Telegraph
1. Vix fear gauge, 2. Rising US Treasury yields, 3. Rising Credit insurance, 4. Rising US credit risk
5. Rising bank risk, 6. Interest rate shock, 7. Bull stock market over-extended, 8. Overvalued US P/E market,
9. Commodity collapse, 10. Professional investors exit ...
1.2.15 - 'Shadow banking' set for breakout year - CNBC
Recovering from the black eye it received during the dark days of the financial crisis, the unregulated shadow banking system continues to gather both assets and attention ...
1.30.14 - Investing in the "MyRA" ObamaFund - WSJ
Treasury rolls out a new savings plan without a Congressional vote.
The White House wants you to consider a retirement plan that will
invest in nothing but U.S. government debt. Any financial professional
who advised a young investor to avoid stocks and corporate bonds - and
everything else except Treasury bonds - would be sued for malpractice.
But asset allocation is merely one of the problems with the new "myRA"
fund rolling out from the Treasury this month.
Craig R. Smith Comment:
Lowell and I wrote about this on page 175, saying ...
"This ["MyRA"] program would allow workers to acquire government bonds,
the same sort of debt paper that foreign nations are now reluctant to
buy from us out of fear its obligation might never be repaid. The bonds
Mr. Obama offered the poor were paying a bank-like interest rate of 1.7 percent.
Our Progressive President, in other words, is now recruiting even the working
poor to help fund his lavish, oversized government."
12.29.14 - The Company You Keep - FOX Business
Fox Business News reports civil rights activist and White House adviser Al Sharpton
has been the president's go-to-man - with the White House recording 81
visits by Sharpton since 2009 (over once a month). Author and small business advocate
Craig R. Smith says Sharpton and Obama have both done plenty to set back U.S.
economic growth and race relations as a result. Smith sees expansive U.S growth
following the 2016 presidential election of new leadership which does not turn a
deaf ear to small business - which creates 70% of new U.S. jobs.
12.22.14 - Russian bank crisis claims first victim: Bruce Willis - WashPost
There are two lessons everybody eventually learns this time of year: Santa isn't real, and you can't trust Russian banks that run TV ads with Bruce Willis saying "When I need money, I just take it." Trust Bank, Russia's 32nd-largest by assets, is getting a $531 million bailout from their central bank. That makes it the first Russian domino in what figures to be a long line of them as the country's economic crisis turns into a currency crisis that morphs into a financial crisis...Trust's problem; it promised depositors very, very high interest rates to try to lure customers away from other banks. But that meant it'd have to earn very, very high returns on its investments to stay solvent. It couldn't do that. Nobody in Russia can ...
12.20.14 - Russian Roulette: Taxpayers on Hook for Bail-Ins - WebofDebt
By Ellen Brown - The sudden dramatic collapse in the price of oil could result in trillions of dollars in oil derivative losses; and depositors and taxpayers could be liable, following repeal of key portions of the Dodd-Frank Act signed into law on December 16th.The preamble to the Dodd-Frank Act claims "to protect the American taxpayer by ending bailouts." But it does this through "bail-in": authorizing "systemically important" too-big-to-fail banks to expropriate the assets of their creditors, including depositors. Under the Lincoln Amendment, however, FDIC-insured banks were not allowed to put depositor funds at risk for their bets on derivatives ...
12.17.14 - Bank Bail-In Extras Alarm Investors - Bloomberg
European banks may need to issue as much as 500 billion euros in new debt to meet the new requirements for total loss-absorbing capital. "Investors have very simple questions: where do I stand in the creditor hierarchy? If a bank gets bailed in, do I get bailed in?" said Tim Skeet, global head of covered bonds at Royal Bank of Scotland and chairman of the International Capital Market Association's Asset Management and Investor Council working group on bail-ins. While higher capital and liquidity requirements have reduced the likelihood of insolvency, "what happens when and if is a lot less clear," Skeet said. "Everyone's doing a lot of bedtime reading." The risk investors face of being bailed in is rising amid regulatory changes, Moody's Investors Service said ...
12.16.14 - The Financial Industry Pigmen Win Again - MarketOracle
After the disgusting example of politicians of both spineless parties bowing down before Wall Street, the military industrial complex and corporate interests this weekend with the passage of a bloated pig of a spending bill totaling $1.1 trillion, how can anyone not on the payroll of the vested interests not admit there is only one party - and it serves only the needs of the wealthy business interests. Obama, champion of the common folk, signed this putrid example of political corruption and corporate capture of the American political system. The most outrageous provision in the spending bill is Wall Street putting the American taxpayer on the hook for when their $250 trillion of derivatives of mass destruction blow up the worldwide financial system again. Elizabeth Warren, playing her part in this farce, feigns outrage, knowing it will pass anyway: "Mr. President, Democrats don't like Wall Street bailouts. Republicans don't like Wall Street bailouts. The American people are disgusted by Wall Street bailouts..." Senator Warren does hit at the heart of the matter. The Too Big To Fail banks should have been made too small to matter after they created the 2008 worldwide financial collapse. Instead, those banks became bigger, more powerful, more arrogant, and more reckless ...
12.15.14 - Omnibus Bill: A Christmas Present For The Banks - Forbes
Wall Street banks like Citigroup and JP Morgan Chase have flexed the power
of their influence to pressure Congress and the White House into a key change
in the law that will allow the trading of risky financial derivatives in bank
operations that are insured by the Federal Deposit Insurance Corp.
This means the nation's largest banks used the deadline for passing
the Omnibus spending bill as pressure to reverse a key section of
the Dodd-Frank bill of 2010 that was meant to prohibit a federal
government bailout of swaps entities. In effect, it means the major
banks need not limit their trading of financial derivatives to non-bank operations ...
12.15.14 - Global Bankers' Coup: Bail-Ins Coming to US - ActivistPost
On December 11, 2014, the US House passed a bill repealing the Dodd-Frank
requirement that risky derivatives be pushed into big-bank subsidiaries,
leaving our deposits and pensions exposed to massive derivatives losses.
The bill was vigorously challenged by Senator Elizabeth Warren; but the
tide turned when Jamie Dimon, CEO of JPMorganChase, stepped into the ring.
Perhaps what prompted his intervention was the unanticipated $40 drop
in the price of oil. As financial blogger Michael Snyder points out,
that drop could trigger a derivatives payout that could bankrupt the
biggest banks. And if the G20's new "bail-in" rules are formalized,
depositors and pensioners could be on the hook ...
12.15.14 - U.S. Debt Payment Mathematically Impossible - ZeroHedge
Since the end of World War II, the US government's total tax revenue
has been almost constant at roughly 17% of GDP. I've worked out a
mathematical model which shows that, even with absurd assumptions
(7%+ GDP growth for years at a time, low interest rates, etc.),
it is simply not feasible for the US government to 'grow' its way out.
Default has become the only option. They could default on big creditors
like China. They could default on the Federal Reserve... They could
default on beneficiaries of Social Security... Or they could default
on their obligations to every human being alive who holds US dollars ...
and engineer rampant inflation ...
12.11.14 - 1.2 Quadrillion Reasons Banks May Implode - Egon von Greyerz, KWN
"If you combine all the Swiss banks' balance sheets it totals 7-times Swiss GDP.
That's on the same level as Cyprus and we all remember what happened with the
Cyprus disaster that led to the bail-ins...more bail-ins will come in the West.
This will happen in many countries because when they have a banking system
that is so big, bail-ins are the only way to solve the problem...the risk today
that counterparties will default on their derivatives is enormous. This is a
world with debt of $270 trillion and $1.2 quadrillion of derivatives. So
the risk of another Lehman catastrophe that leads to a worldwide domino
effect is massive. And this could implode the entire global financial system.
In the midst of this massive bank leverage there are powerful deflationary
forces that are building. This is putting pressures on the global economy
and the banking system. So we can't be too far from a massive money
printing program. Central banks know that a deflationary implosion
would mean the end of the banking system. All of this will be incredibly
bullish for gold and silver going forward as well as the shares." ...
12.9.14 - Feds Scheming to Target Legal Businesses - DailySignal
Senior officials at the Federal Deposit Insurance Corporation actively
sought to crack down on legal businesses that the Obama administration -
or the officials themselves - deemed morally objectionable, a new
congressional report finds. The 20-page investigative report details
how the FDIC worked closely with the Justice Department to implement
Operation Choke Point, a secretive program that seeks to cut off the
financial lifeblood of payday lenders and other industries the
administration doesn't like...such as short-term lenders, firearms
and ammunition merchants, coin dealers, tobacco sellers and
home-based charities ...
Craig Smith Comment:This story will not surprise anyone who
has read Don't Bank On It! In Chapter Seven, "Political Bank Robbers"
Lowell and I explain "Operation Choke Point", launched in early 2013.
On page 158 we list 30 legal businesses which are now targets of
the Obama Administration's ideological and financial attacks using
the banks as their "choke point". I am glad to see this truth now
coming to light in the mass media. As one American Banker reader
puts it, "The only way to get rid of fraudsters is to ensure a
robust business climate for legitimate operators. Choke point may
have been well intentioned, but the unintended
consequences have terrorized legitimate businesses."
12.8.14 - Banks Urge Clients to Take Cash Elsewhere - WSJ
Banks are urging some of their largest customers in the U.S. to take their
cash elsewhere or be slapped with fees, citing new regulations that make
it onerous for them to hold certain deposits. The banks, including J.P.
Morgan Chase & Co., Citigroup Inc., HSBC Holdings PLC, Deutsche Bank AG
and Bank of America Corp., have spoken privately with clients in recent
months to tell them that the new regulations are making some deposits
less profitable ... U.S. banking rules set to go into effect Jan. 1
compound the issue, especially for deposits that are viewed as less
likely to stay at the bank through difficult times. "This proposal,
which is supposed to promote financial stability, actually does the
opposite," said Thomas Quaadman, a vice president at
the U.S. Chamber of Commerce ...
Publisher Note:Don't Bank On It! authors Craig R. Smith and Lowell
Ponte have just released a new White Paper, AFTER THE G20 which
discusses major changes affecting all U.S. bank depositors which
were agreed upon at the November G20 Summit. Call 800-289-2646 to
request a free copy.
12.2.14 - Is Minting Your Own Unique Money "Terrorism"? - PRBuzz An Obama Appointee Says Yes! - On December 2 a man branded a "domestic terrorist" by an Obama-appointed U.S. Attorney may be sentenced to spend the rest of his life in prison. This 70-year-old man's terrorist crime? He minted pure silver coins he called "Liberty Dollars" that many prefer to the paper U.S. Dollars debased and devalued by being printed by the trillions out of thin air by our politicians and Federal Reserve. Bernard von NotHaus is not accused of counterfeiting because his "Liberty Dollars" and "Ron Paul Dollars" do not pretend to be U.S. coins. He is, instead, accused of minting coins that "compete with" official U.S. coins in a country that claims a legal monopoly on legal tender used in commerce.
Among the first to report and analyze this bizarre case were monetary expert Craig R. Smith and veteran think tank futurist Lowell Ponte in their 2011 book The Inflation Deception: Six Ways Government Tricks Us...And Seven Ways to Stop It! ...
12.2.14 - Cyprus-style Bail-ins to Take Deposits and Pensions - HuffPost
"Bail in" has been sold as avoiding future government bailouts and eliminating too big to fail (TBTF). But it actually institutionalizes TBTF, since the big banks are kept in business by expropriating the funds of their creditors. The insolvent bank is to be made solvent by turning our money into their equity - bank stock that could become worthless on the market or be tied up for years in resolution proceedings. Cyprus-style confiscations are to become the law. It is a neat solution for bankers and politicians, who don't want to have to deal with another messy banking crisis. But a bail-in could have worse consequences than a bailout for the public. If your taxes go up, you will probably still be able to pay the bills. If your bank account or pension gets wiped out, you could wind up in the street or sharing food with your pets ...
12.1.14 - A Monetary Gadfly in an Age of Fiat Money - NY Times
Nearly four years ago, a jury convicted Mr. von NotHaus of "uttering" - putting into circulation - coins of pure silver that he called Liberty Dollars. The government is also seeking the forfeiture of 16,000 pounds of coins and precious metals whose value it reckons at $7 million. The federal prosecutor, Anne Tompkins, put out a news release stating that "attempts to undermine the legitimate currency of this country are simply a unique form of domestic terrorism" and "represent a clear and present danger to the economic stability of this country." Congress, as it turns out, has got the matter in its sights. It is considering H.R. 77, a bill called the "Free Competition in Currency Act" sponsored by Rep. Paul Broun (R., Ga.). It is a radical measure that brings to our laws the ideas of Friedrich Hayek ...
12.1.14 - "Transparent banking" is a laugh! - YouTube Video
Nordnet, a bank for investments and savings based in Denmark, Finland, Norway and Sweden,
has released a series of short humorous videos on YouTube poking fun at typical banking ads.
"I'm an actor, and I've been paid $8,000 to tell you how great Nordnet is compared
to other banks," says one ad. "I just get paid to tell you that Nordnet is the greatest
place to save and invest in the world," says another ad. Nordnet's ads are attracting
attention by supposedly telling the truth, which is that banks want to appear to
be transparent, while depositors in fact have no idea what really happens to their money ...
11.24.14 - Bank risk looms large despite G20 hopes - FT
More than five years on from the G20 summit in London and some $6tn of asset purchases and liquidity injections by the world's major central banks, the global economy and financial system is once again approaching a tipping point. Shrinking market liquidity was one of the factors contributing to the October 15 "flash crash" in the US Treasury market and may prove to be the proverbial canary in the coal mine that forewarns of future financial instability. If QE-inflated asset prices are not validated by global growth, the repricing and transfer of risk against the backdrop of greatly diminished market liquidity could prove brutal and destabilising ...
11.22.14 - Deluded central bankers impose fairer banking? - TheStatesman
This week in Singapore, fresh from the G20 meetings in Brisbane, Bank of England Mark Carney delivered a major speech outlining the future of financial reform. In carefully reading of Governor Carney's speech, I felt rather staggered that he can declare that the global financial system is (not will be) safer, simpler and fairer, when the facts are pointing in the other direction. As a former central banker ... I find it strange that central bankers playing forwards to keep the markets bubbling along can also be the referee determining the market rules. The world economy is like a horse (the real economy) and the cart (financial system) working together. We had a financial crisis, because the horse was overleveraged and the cart was also overleveraged, with a driver punch drunk on more debt being the cure-all. But seven years later, the horse is not only weaker, but even more leveraged than before ...
11.19.14 - November's "Down Under" Theft of Your Bank Account - Ponte
On November 16, 2014, the world of banking and money was officially flipped
upside down because of actions taken by the G-20 nations meeting "down under"
in Brisbane, Australia. People deposit their money in banks for safety.
But this gathering of 35 national leaders turned your bank into one of
the most unsafe places to put your money. Without warning, these G-20
leaders agreed that the money in your bank account can be seized to pay
bank debts. "Laws and rules are being changed to make government
confiscation of bank deposits as 'unsecured assets' easier via
what governments now call 'bail-ins,'" Craig R. Smith and I warned
in September 2014 in our latest book DON'T BANK ON IT!...
11.19.14 - Cyprus: Europe's Central Bank Defies Its Own Rules - NYT
Benoit Coeure, of the European Central Bank board proposed the central
bank of Cyprus inflate the value of Cyprus Popular Bank's collateral,
so that it might funnel more emergency loans to the failing bank.
In so doing, Mr. Coeure appeared to be violating the E.C.B.'s core
principle: that it may not become involved in the rescue of a bankrupt
bank - or a government, for that matter - by resorting to its printing press.
The E.C.B. defended its activities in Cyprus ...
11.18.14 - What Is A Bank Bail-In? - InternationalInvestor
According to The Economist, the magazine that coined the term, a bail-in occurs when
the borrower's creditors are forced to bear some of the burden by having a portion
of their debt written off. For example, bondholders in Cyprus banks and depositors
with more than 100,000 euros in their accounts were forced to write-off a portion
of their holdings. Bail-ins began as a public policy tool with Cyprus, which forced
creditors and some depositors to forfeit some of their holdings to keep the banks
alive. Bail-ins are less politically taxing than bailouts ...
Ed. Note: Don't Bank On It! Author Foretells Bank Bail-Ins! - PAT BOONE - While the mainstream press reported the recent G-20 Summit was mostly about international agreements on trade and climate change, President Obama quietly announced the end of big bank bail-OUTs by U.S. taxpayers to the world.
So, what now?
11.17.14 - The G20 Just Stole Your Bank Account! - CommonSenseShow
As of this morning all nations belonging to the G20 will
immediately submit and pass legislation that will fulfill
a new investment program. This new program creates a whole
new paradigm and set of rules whereby banks will no longer
recognize your deposits as money. Russell Napier is declaring
November 16th as "the day money dies,"
Napier says the G-20 will announce "that bank deposits are
just part of commercial banks'capital structure, and also
that they are far from the most senior portion of that structure ...
a bank deposit is no longer money in the way a banknote is." ...
Craig Smith Comment:
The typical news reporting of the G-20 Summit makes it sound like this
event was all about climate change, back-slapping and promises of a brighter
future for all. Marketwatch reports, "Obama listed expanding trade, a visa accord with
China, and a big advance on climate change as tangible achievements."
However, Obama also stated: "[We have made] ...
sure that we've got a financial system that's more stable and that
can allow a bank to fail without taxpayers having to bail them out."
11.17.14 - Small step for G20, a leap for TBTF banks - AFR
With global leaders disappearing as fast as they arrived at the G20
Summit in Brisbane, TBTF (Too Big To Fail) - one of the key issues
for financial markets - got the rubber stamp of approval.
The G20 confirmed that uninsured bank deposits are just part of
commercial banks' capital structure, and also that they are far
from the most senior portion of that structure. This leads to the
logical conclusion that following a bank failure, a bank deposit
is no longer money in the way a banknote is. As Zero Hedge noted:
"Large deposits at banks are no longer money, as this legislation
will formally push them down through the capital structure to a
position of material capital risk in any 'failing' institution." ...
11.15.14 - Cash Under Mattress Better Than G-20 Bank - Bloomberg
Citing information from uber-analyst Russell Napier, the blog Zero Hedge writes that Napier is declaring Nov. 16 as "the day money dies." According to Zero Hedge, Napier says the G-20 will announce "that bank deposits are just part of commercial banks' capital structure, and also that they are far from the most senior portion of that structure," and as such, following a bank failure, "a bank deposit is no longer money in the way a banknote is." ...
11.14.14 - New Bank Rules Make It Easier To Let Them Fail - Economist
WHEN big banks totter, taxpayers usually foot the bill. Given the chaos that
would follow an outright failure - bank runs, frozen payment systems and so
on - bail-outs have long been the least-bad option for governments. That might
end under plans unveiled on November 10th by the Financial Stability Board
(FSB), a group of international regulators, that should make it easier for
banks to fail without recourse to the public purse. The principle of
"bailing in" creditors is welcome. Whether "too big to fail" is indeed
over will only become clear during the next crisis ...
11.13.14 - G-20: Bank deposits paper investments, not money - Examiner
On Sunday, Nov. 16 the G20 will formally announce new banking rules that are expected to send shock
waves to anyone holding a checking, savings, or money market account
in a financial institution. The G20 will implement a new
policy that makes bank deposits on par with paper investments,
subjecting account holders to declines that one might experience
from holding a stock or other security when the next financial
banking crisis occurs. Additionally, all member nations of the
G20 will immediately submit and pass legislation that will
fulfill this program, creating a new paradigm where banks
no longer recognize your deposits as money, but as liabilities
and securitized capital owned and controlled by the bank
or institution ...
11.12.14 - 1 in 3 Americans fear stocks - FOX Video
A Wells Fargo survey shows 1 in 3 Americans are afraid of stocks. Neil Cavuto believes Americans have simply lost confidence in the greatness of our nation.
Guest Craig R Smith, chairman of Swiss America, agrees, "You are correct! Americans have lost confidence their
children will have a better life and future. Our great experience we call
America is based upon confidence; that our leaders will lead,
that they will do what they say and won't lie to us. During the last
financial crisis our president said the markets would fall apart
unless the government bailed us out, which is NOT what a
president says to instill public confidence!"
11.12.14 - Scandal: Big Banks Fined $4.25 Billion - NY Times
British, American and Swiss regulators fined some of the world's
biggest banks a combined $4.25 billion on Wednesday for conspiring
to manipulate the foreign currency markets. Traders from JPMorgan
Chase, Citigroup, HSBC, Royal Bank of Scotland, UBS and Bank of America shared information
about the foreign exchange trading manipulating benchmark exchange
rates for pairs of leading world currencies such as the British
pound and U.S. dollar and the U.S. dollar and Japanese yen,
regulators said. About 30 traders were suspended or fired after internal inquiries at the banks ...
11.11.14 - Bank 'Bail-Ins': Bad News In Disguise - Lowell Ponte
In the November 10 London Telegraph,
James Titcomb reports how future bank problems will be handled.
Future problems in banks that are "Too Big To Fail" will never again
end in government bailouts using taxpayer money. Instead, as we explained
in Don't Bank On It!, governments will employ "bail ins," forcing what
he calls "creditors" of various kinds to bear banks' losses. This seemingly
good news, however, conveniently neglects to reveal who all these "creditors"
are. Those stuck paying for bank shortcomings may also include customers,
depositors who do not understand that when they opened a bank account,
they were in effect lending their money to a bank and getting in return
only an IOU ...
11.11.14 - The Future of Money & Banking: Truth #1 - LISTEN - CD/mp3 Legendary entertainer Pat Boone interviews author Craig R. Smith on
a new 1-hour audio CD/mp3 available FREE. 3-min. sample ...
PAT BOONE: "Bank Truth #1. On page 65 of DON'T BANK ON IT! you write,
"When you deposit money into a fractional-reserve bank, the bank actually
becomes the de facto owner of an unsecured loan or asset you have given it.
The receipt or passbook that you walk away with and think of as evidence of
'your' bank account is instead an IOU." How is this possible? Please explain
to America how it is that our money suddenly becomes the bank's money
under new international agreements and laws?!
11.10.14 - Bank 'creditor' bail-ins replace taxpayer bail-outs - Telegraph
The Governor of the bank of England, in his position as chairman
of the international Financial Stability Board (FSB), has unveiled
proposals for forcing creditors to bear banks' losses. Mr. Carney
said agreeing global rules on dealing with losses at "systemically
important banks" was a "watershed" moment. Under the new so-called
"bail in" rules, globally systemic banks will have to hold "total
loss absorbing capacity" [TLAC] - equity or debt that can be
converted into shares - of at least 16-20pc of their assets,
weighted for risk. If a bank fails, its creditors will then see the money owed to them turned into shares. This means that they, rather than taxpayers, are the support in the event of a bank suffering heavy losses ...
11.10.14 - "Gold Is Currency" -Alan Greenspan - ZeroHedge
For some reason, the Council of Foreign Relations, where ex-Fed-Chief
Alan Greenspan spoke last week, decided the following discussion
should be left out of the official transcript. "Gold is a currency.
It is still, by all evidence, a premier currency. No fiat currency,
including the dollar, can match it."We can perhaps
understand why... as interviewer Gillian Tett concludes,
"comments like that will be turning you into a rock star
amongst the gold bug community."
Publisher's Note: Greenspan appears to be reverting
to his gold-standard promoting days in this recent interview.
He asks the interviewer ... "Why do central banks put money into an asset which
has no rate of return, but cost of storage and insurance...
why are they doing that?" Answer:"Gold is a currency."
In a brand new 1-hour audio CD entitled
THE FUTURE OF MONEY & BANKING, DON'T BANK ON IT! author Craig R. Smith
explains the 20 biggest economic risks and reveals why we must watch what central bankers do more
closely than what they say. In this 1-hour radio special Craig will
both shock and inspire you with his tangible economic solutions!
11.10.14 - DON'T BANK ON IT Book Review - RightSideNews
Craig R. Smith and Lowell Ponte's book, "Don't Bank on It," should be a required primer for high school and college students who often graduate economically illiterate unless they major in Economics. The average American's economic literacy would be tremendously augmented by reading this book, written for the average person who is not an investor or a banker. Will we become a cashless society as the government eliminates the middlemen and becomes America's bank? (Read the book to find out!) ...
Another Big Bank Handshake - WSJ
Regulators and giant banks agree to ignore contractual rights.
Almost nobody cares when the government mistreats giant banks, and
especially when the feds target derivatives traders at those banks.
But a curious new arrangement between Washington and Wall Street
ought to concern taxpayers, because they'll be the ones getting
mistreated the next time a giant bank stumbles. The damage could
be inflicted by foreign governments too ...
11.5.14 - Republicans surge to Senate control - AP
Republican Mitch McConnell led the way to a new Senate majority, dispatching Democratic challenger Alison Lundergan Grimes in Kentucky after a $78 million campaign of unrelieved negativity. Voters are "hungry for new leadership. They want a reason to be hopeful," said the man now in line to become majority leader and set the Senate agenda. RCP stats ... ...
10.30.14 - THE GREAT SOCIAL SECURITY ROBBERY - News Release
(Idea Factory Press, Phoenix, AZ) - Social Security was supposed to be
better than a fixed pension. Its payments were supposed to increase each
year to keep up with inflation, so that senior citizens would keep the
value, the same purchasing power, they had earned. "But under President
Barack Obama, those on Social Security have been robbed year after year
of the cost-of-living adjustments (COLAs) they deserve," says financial
author Lowell Ponte, a retired editor of Reader's Digest magazine.
Real-world price inflation has been running between 6 and 11 percent
a year since President Obama took office in 2009 ...
10.28.14 - THE STORY THE NEW YORK TIMES MISSED: - PRBuzz Your Bank Spies On You For The Government and Flags Account Holders For I.R.S. Seizures, Warn Financial Expert Authors of New Book - Many were shocked on October 25 to read the New York Times investigation "Law Lets I.R.S. Seize Accounts on Suspicion, No Crime Required," using a law that lets government confiscate the bank accounts of those who deposit or withdraw even relatively small amounts of cash. This is enough under today's law for the Internal Revenue Service to expropriate someone's bank account, based merely on their using cash as criminals might do, even if no actual crime has been committed. Those who have read one or more of the five books Craig R. Smith and Lowell Ponte have written, including their new book DON'T BANK ON IT! The Unsafe World of 21st Century Banking, were not surprised by this ...
10.27.14 - Hacking Top Crime Americans Worry About - Gallup
More Than One in Four Americans Say They Have Been Hacked - As the list of major U.S. retailers hit by credit card hackers continues to grow this year, Americans are more likely to worry about having credit card information they used in stores stolen by computer hackers than any other crime they are asked about. Sixty-nine percent of Americans report they frequently or occasionally worry about this happening to them. Having a computer or smartphone hacked (62%) is the only other crime that worries the majority of Americans. Those whose household incomes are $75,000 or more a year, are more likely than lower-income Americans to worry frequently or occasionally about hacking of their credit card information ...
10.26.14 - IRS Seizing Bank Accounts of Innocent Americans - NewsMax
The Internal Revenue Service has been seizing money from the bank accounts of
individuals and businesses with no proof of any crimes nor any charges filed.
Now, the IRS claims that it will stop - but will it? Using a law, the Civil
Asset Forfeiture Reform Act of 2000, the IRS has put innocent people into
bankruptcy and massive debt and taken the money a military father saved
from his paychecks to put his kids through college ... Army Sgt. Jeff
Cortazzo was saving up for his daughters' college education when the
IRS seized $66,000 of his money - it cost him $21,000 to get the
remainder back ...
Craig Smith comment:"In our new book Lowell and I warned about this
happening - that it would become more frequent as banks and the federal
government become increasingly starved for money. Expect more. The only
question you need to ask yourself: 'Could this happen to me?'"
10.25.14 - Law Lets I.R.S. Seize Bank Accounts on Suspicion - NY Times
"Who takes your money before they prove that you've done anything wrong with it?"
The federal government does. Using a law designed to catch drug traffickers,
racketeers and terrorists by tracking their cash, the government has gone after
run-of-the-mill business owners and wage earners without so much as an allegation
that they have committed serious crimes. The government can take the money
without ever filing a criminal complaint, and the owners are left to prove
they are innocent. Many give up ...
10.24.14 - 20% of European banks set to fail stress tests - Reuters
A group of 25 banks have failed European health checks, while up to 10 of
those continue to have a capital shortfall. The health checks, led by the
European Central Bank, found that banks in countries including Greece,
Cyprus, Slovenia and Portugal had fallen short of a minimum capital
benchmark at the end of last year. The result, to be finalized by the
ECB's governing council on Sunday, provides the most complete picture
yet of the robustness of the euro zone's top 130 lenders. Those banks
with shortfalls will now have two weeks to submit a plan to bolster
their capital to the European Central Bank (ECB) ...
"DON'T BANK ON IT! is essential reading for every American concerned about their financial future.
Trust and reputation are the hallmarks of a sound banking system. Craig R. Smith and Lowell Ponte
explore the real reasons 'money in the bank' is no longer safe, secure, or even ours. -ERSKINE, Talk Radio HostBLOG ARCHIVESHOME ~