World Events and the Bible

A site dedicated to World Events and Study of the Bible.

Category: Economic (page 190 of 192)

GAO Report: Obamacare Adds $6.2 Trillion to Long-Term Deficit

Obamacare will increase the long-term federal deficit by $6.2 trillion, according to a Government Accountability Office (GAO) report released today.

Senator Jeff Sessions (R., Ala.), who requested the report, revealed the findings this morning at a Senate Budget Committee hearing. The report, he said, “confirms everything critics and Republicans were saying about the faults of this bill,” and “dramatically proves that the promises made assuring the nation that the largest new entitlement program in history would not add one dime to the deficit were false.”

President Obama and other Democrats attempted to win support for the health-care bill by touting it as a fiscally responsible enterprise. “I will not sign a plan that adds one dime to our deficits — either now or in the future,” Obama told a joint-session of Congress in September 2009.

“I will not sign it if it adds one dime to the deficit, now or in the future, period.”
The new report exposes the “lack of honesty” surrounding such claims, Sessions argued. “The big-government crowd in Washington manipulated the numbers in order to get the financial score they wanted, in order to get their bill passed and to increase power and influence,” he said. “The goal was not truth or financial responsibility, but to pass the bill. This is how a country goes broke.”

Will Americans Soon Not Be Able To Buy, Sell Or Get A Job Without A Global ID Card?

A plan being pushed in Congress right now by senators from both major political parties would force all Americans to get a biometric national ID card. It is being promoted as a key “immigration reform” measure, but the truth is that a national ID card is much more about the government’s endless appetite for more control over the American people. If this national ID card plan is passed by Congress, you will not be able to get a job without one. So how are you going to survive if you can’t work? In addition, this national ID card would undoubtedly soon be used to identify us for all sorts of other purposes.

For example, have you tried to open up a bank account lately? They make you jump through all sorts of hoops to prove that you are who you say that you are. So what would happen if the government decided to require you to show your national ID card before opening up a bank account? If you refused to get a card, how would you be able to function in society without a bank account? Would you try to conduct all of your transactions in cash only? That might work for a while. And of course you would not be able to drive or get on a plane without your national ID card. So forget about going anywhere. Are you starting to get the picture? Unfortunately, the push for a national ID card in the United States is only a small part of the overall push toward a “global ID card” that is happening all over the planet. The eventual goal is to have a “universal ID” that every man, woman and child on the planet will be forced to take.

That is why it is so important for the American people to speak up about this.

Right now, all of the big mainstream media outlets are lining up on the side of a national ID card. For instance, just check out this short excerpt from a recent Washington Post article entitled “The case for a national ID card“

An effective solution would be to issue tamper-proof, biometric ID cards — using fingerprints or a comparably unique identifier — to all citizens and legal residents. Last week, both President Obama and a bipartisan group of eight senators seeking immigration reform urged something along those lines, without calling it a universal national identity card. That’s a major step forward.

And of course the Wall Street Journal is reporting on this too…

Key senators are exploring an immigration bill that would force every U.S. worker—citizen or not—to carry a high-tech identity card that could use fingerprints or other personal markers to prove a person’s legal eligibility to work.
The idea, signaled only in vaguely worded language from senators crafting a bipartisan immigration bill, has privacy advocates and others concerned that the law would create a national identity card that, in time, could track Americans at airports, hospitals and through other facets of their lives.

According to investigative reporter James Tucker, there are those in the Obama administration that are optimistic that they will be able to get a national ID card through Congress now that Ron Paul has left the House of Representatives…

At a recent reception in Washington, D.C., an AMERICAN FREE PRESS source overheard Thomas E. Donilon, a White House national security advisor and past Bilderberg member, speaking of Paul’s retirement and the good chance that the global card could now be shepherded through Congress. Paul’s son, Senator Rand Paul (R-Ky.), would not object to the plan, added the individual with whom Donilon was talking. He was referring to the fact that Senator Paul has backed off from the strong pro-nationalist positions of his father because he is fantasizing about being elected president in 2016.

So will anyone in Congress step up and fight this on behalf of the American people?

Let’s hope so.

But of course there are many other large nations that are actually far ahead of the United States when it comes to implementing this global ID card scheme. – Full Read: The Daily Sheeple

WEB Notes: This is all a part of the plan for global government. Wrap your head around this, it’s coming…

Britain’s credit rating downgraded from AAA to Aa1

Moody’s announced on Friday night that it had cut the Government’s bond rating one notch from ‘Aaa’ – the highest possible level – to ‘Aa1’.

The move is a significant setback for Chancellor George Osborne, who has faced criticism that his strategy for dealing with UK’s huge debt burden is failing to deliver.

Moody’s pointed to “continuing weakness in the UK’s medium-term growth outlook, with a period of sluggish growth which [it] now expects will extend into the second half of the decade”.

The credit ratings agency also noted that the Government’s debt reduction programme faced significant “challenges” and that the UK’s huge debts are unlikely to “reverse before 2016”.

Moody’s said that despite considerable structural economic strengths, growth is expected to be sluggish due to a combination of weaker global economic activity and the drag on the UK economy “from the ongoing domestic public- and private-sector deleveraging process.” – Full Read: Telegraph

WEB Notes: Things will continue to get worse not better. The problems are with the foundation of the system and attempting to paper over the problem will not fix matters. This global financial collapse is by design.

Killing the Dollar: G20 & IMF Push for Global Fed, Global Currency

While headline stories about averting the dangers of an international “currency war” dominated news coverage of the recently concluded G20 meeting in Moscow, the real unreported story is that the global gathering of central bankers and finance ministers is pushing forward with their plan for “supersizing” the International Monetary Fund. The end goal is to transform the IMF into a global Federal Reserve, with the ability to flood the world with huge new volumes of loans and currency. It would also wield vast financial regulatory powers.

The IMF’s unit of account, or “currency,” known as a Special Drawing Right (SDR), is being readied for eventual adoption as the replacement for the U.S. dollar in international transactions, to lead the way toward eventual adoption of the SDR or some other designated unit as the global currency, much in the same way that the euro was foisted upon the people of Europe as a replacement of their national currencies.

The mainstream media seem intent on keeping the public fixated on the latest Kardashian frolics, sportsmania, and Dremocrat-Republican political mudwrestling, while coverage of the G7, G20, and IMF confabs that are determining the economic fate of the world receive short shrift. And the little reporting of these events that does leak out usually amounts to little more than regurgitation of the pre-scripted talking points of the conference principals. Over the past four years, The New American has published numerous articles detailing the radical plans currently underway for the total destruction of the dollar and the plans for supersizing the IMF into a global Fed.

Virtually unreported was IMF Managing Director Christine Lagarde’s comments at the close of the G20 Moscow summit on February 16 that she expected the IMF members to come through soon with the remaining funds necessary to double the IMF’s funds. Unknown to most voters and taxpayers the world over is the fact that their governments’ finance ministers agreed at the G20’s Korea meeting in 2010 to increase the “quotas” (contributions) of each member to the IMF, effectively doubling the IMF’s SDR assets to about $US 750 billion. Full Read: New American

WEB Notes: The continued merge of the one world system, or better known as the beast system to the Christian reader. Make no mistake, all of this talk about currency wars are bogus. This is part of the shell game. This collapse is by design.

20 Signs That The U.S. Economy Is Heading For Big Trouble In The Months Ahead

Is the U.S. economy about to experience a major downturn?  Unfortunately, there are a whole bunch of signs that economic activity in the United States is really slowing down right now.  Freight volumes and freight expenditures are way down, consumer confidence has declined sharply, major retail chains all over America are closing hundreds of stores, and the “sequester” threatens to give the American people their first significant opportunity to experience what “austerity” tastes like.  Gas prices are going up rapidly, corporate insiders are dumping massive amounts of stock and there are high profile corporate bankruptcies in the news almost every single day now.

In many ways, what we are going through right now feels very similar to 2008 before the crash happened.  Back then the warning signs of economic trouble were very obvious, but our politicians and the mainstream media insisted that everything was just fine, and the stock market was very much detached from reality.  When the stock market did finally catch up with reality, it happened very, very rapidly.  Sadly, most people do not appear to have learned any lessons from the crisis of 2008.  Americans continue to rack up staggering amounts of debt, and Wall Street is more reckless than ever.  As a society, we seem to have concluded that 2008 was just a temporary malfunction rather than an indication that our entire system was fundamentally flawed.  In the end, we will pay a great price for our overconfidence and our recklessness.

So what will the rest of 2013 bring?

Hopefully the economy will remain stable for as long as possible, but right now things do not look particularly promising.

The following are 20 signs that the U.S. economy is heading for big trouble in the months ahead…

#1 Freight shipment volumes have hit their lowest level in two years, and freight expenditures have gone negative for the first time since the last recession.

#2 The average price of a gallon of gasoline has risen by more than 50 cents over the past two months.  This is making things tougher on our economy, because nearly every form of economic activity involves moving people or goods around.

#3 Reader’s Digest, once one of the most popular magazines in the world, has filed for bankruptcy.

#4 Atlantic City’s newest casino, Revel, has just filed for bankruptcy.  It had been hoped that Revel would help lead a turnaround for Atlantic City.

#5 A state-appointed review board has determined that there is “no satisfactory plan” to solve Detroit’s financial emergency, and many believe that bankruptcy is imminent.  If Detroit does declare bankruptcy, it will be the largest municipal bankruptcy in U.S. history.

#6 David Gallagher, the CEO of Town Sports International, recently said that his company is struggling right now because consumers simply do not have as much disposable income anymore…

“As we moved into January membership trends were tracking to expectations in the first half of the month, but fell off track and did not meet our expectations in the second half of the month. We believe the driver of this was the rapid decline in consumer sentiment that has been reported and is connected to the reduction in net pay consumers earn given the changes in tax rates that went into effect in January.

#7 According to the Conference Board, consumer confidence in the U.S. has hit its lowest level in more than a year.

#8 Sales of the Apple iPhone have been slower than projected, and as a result Chinese manufacturing giant FoxConn has instituted a hiring freeze.  The following is from a CNET report that was posted on Wednesday…

The Financial Times noted that it was the first time since a 2009 downturn that the company opted to halt hiring in all of its facilities across the country. The publication talked to multiple recruiters.
The actions taken by Foxconn fuel the concern over the perceived weakened demand for the iPhone 5 and slumping sentiment around Apple in general, with production activity a leading indicator of interest in the product.

#9 In 2012, global cell phone sales posted their first decline since the end of the last recession.

#10 We appear to be in the midst of a “retail apocalypse“.  It is being projected that Sears, J.C. Penney, Best Buy and RadioShack will also close hundreds of stores by the end of 2013.

#11 An internal memo authored by a Wal-Mart executive that was recently leaked to the press said that February sales were a “total disaster” and that the beginning of February was the “worst start to a month I have seen in my ~7 years with the company.”

#12 If Congress does not do anything and “sequestration” goes into effect on March 1st, the Pentagon says that approximately 800,000 civilian employees will be facing mandatory furloughs.

#13 Barack Obama is admitting that the “sequester” could have a crippling impact on the U.S. economy.  The following is from a recent CNBC article

Obama cautioned that if the $85 billion in immediate cuts — known as the sequester — occur, the full range of government would feel the effects. Among those he listed: furloughed FBI agents, reductions in spending for communities to pay police and fire personnel and teachers, and decreased ability to respond to threats around the world.
He said the consequences would be felt across the economy.
“People will lose their jobs,” he said. “The unemployment rate might tick up again.”

#14 If the “sequester” is allowed to go into effect, the CBO is projecting that it will cause U.S. GDP growth to go down by at least 0.6 percent and that it will “reduce job growth by 750,000 jobs“.

#15 According to a recent Gallup survey, 65 percent of all Americans believe that 2013 will be a year of “economic difficulty“, and 50 percent of all Americans believe that the “best days” of America are now in the past.

#16 U.S. GDP actually contracted at an annual rate of 0.1 percent during the fourth quarter of 2012.  This was the first GDP contraction that the official numbers have shown in more than three years.

#17 For the entire year of 2012, U.S. GDP growth was only about 1.5 percent.  According to Art Cashin, every time GDP growth has fallen this low for an entire year, the U.S. economy has always ended up going into a recession.

#18 The global economy overall is really starting to slow down

The world’s richest countries saw their economies contract for the first time in almost four years during the final three months of 2012, the Organisation for Economic Co-operation and Development said.
The Paris-based thinktank said gross domestic product across its 34 member states fell by 0.2% – breaking a period of rising activity stretching back to a 2.3% slump in output in the first quarter of 2009.
All the major economies of the OECD – the US, Japan, Germany, France, Italy and the UK – have already reported falls in output at the end of 2012, with the thinktank noting that the steepest declines had been seen in the European Union, where GDP fell by 0.5%. Canada is the only member of the G7 currently on course to register an increase in national output.

#19 Corporate insiders are dumping enormous amounts of stock right now.  Do they know something that we don’t?

#20 Even some of the biggest names on Wall Street are warning that we are heading for an economic collapse.  For example, Seth Klarman, one of the most respected investors on Wall Street, said in his year-end letter that the collapse of the U.S. financial system could happen at any time

“Investing today may well be harder than it has been at any time in our three decades of existence,” writes Seth Klarman in his year-end letter. The Fed’s “relentless interventions and manipulations” have left few purchase targets for Baupost, he laments. “(The) underpinnings of our economy and financial system are so precarious that the un-abating risks of collapse dwarf all other factors.” 

Economic Collapse Blog

Pentagon informs Congress of plans to furlough 800K civilians

The Pentagon notified Congress on Wednesday it will be furloughing its civilian workforce of 800,000 employees if sequestration goes into effect March 1.

Defense officials have warned lawmakers that sequestration will devastate the military and lead to a hollow force, but the civilian furloughs will be one of the first major impacts felt by the across-the-board cuts.

The Pentagon furloughs will affect civilians across the country. Pentagon officials have said that civilians could face up to 22 days of furloughs, one per week, through the end of the fiscal year in September. The employees would receive 30 days’ notice before being furloughed.

“We are doing everything possible to limit the worst effects on DOD personnel — but I regret that our flexibility within the law is extremely limited,” Defense Secretary Leon Panetta wrote in a message to the department. “The president has used his legal authority to exempt military personnel funding from sequestration, but we have no legal authority to exempt civilian personnel funding from reductions.”

The Joint Chiefs also testified before both the House and Senate last week to lay out the dangers of sequestration, as the Pentagon has taken a much more proactive approach to the cuts than when they were set to hit in January.

Pentagon Comptroller Robert Hale told reporters Wednesday that the furloughs would save between $4 bill and $5 billion in 2013. The Pentagon would have to cut $46 billion under sequestration.

Hale said that most of the Defense Department’s near-800,000 civilian workforce would face furloughs, but there would be exceptions, including foreign workers on overseas bases and those working in combat zones.

Acting Under Secretary of Defense for Personnel and Readiness Jessica Wright said that furloughs were “not a Beltway phenomenon,” as roughly 80 percent of DOD civilian workers lived outside the Washington, D.C., metro area.

The potential for furloughs was one of the few things DOD officials announced before the Jan. 2 deadline, which was delayed two months in the “fiscal-cliff” deal. – Full Read: TheHill

Currency Wars – Race to the Bottom

The alarmist media always seeks to sell papers or broadcast ratings, built on the unswerving fear that followed the financial meltdown, the banking establishment profits from the debt liquidation panic. The lack of stability in fiscal confidence certainly abounds, but the schemes to paper over the mountain of liability obligations, develop at even a more rapid pace. The implied result of a real currency war is that nations are acting or defending their own national interests. The truth is that fiat currencies, designed to depreciate, benefits the moneychangers as the loss of purchasing power penalizes taxpayers and consumers. 
The financial press spins the “so called” harmonious unity of the industrial nations, in a lame attempt to ease concerns that the money markets can be trusted. An example is the G20 summit to focus on ‘currency war’ threat to economy. This Independent article, lays out the implications of the current currency row. 
“G20 officials are set to disregard key parts of the G7 currency statement while making no direct mention of new debt-cutting targets – something Germany is pressing for but which the United States is opposed to.
CMC Markets analyst Michael Hewson said: “What the G7 basically said this week is that it is fine to manipulate your currency as long as you don’t talk about it. These ‘currency wars’ are more like phony wars. The bigger problem the G20 has is not currency wars, it is a lack of growth.”
Substitute the term currency war, for coordinated inflation, cloaked in the public announcements, out of the globalist ministers for a single world currency. Do not doubt for a moment that the ultimate goal is to create managed crisis, in order to push soveriegn countries into incessant serfdom. The Fiscal Times in the article, How a Fake Currency War Panicked Global Economies, concludes. 

“What we have been calling “the currency wars” these past couple of weeks is nothing more than a process of adjustment. Exchange values will settle. We have entered a period where economic priorities are changing on a global scale. This reflects a shift in views even from last autumn, when austerity was still the faith. This adjustment will have its effect on currency values, let there be no question. Do not mistake it for a war.” – Full Read: BATR

More Signs of a Global Financial Collapse

Eric Sprott manages $10 billion, and he’s worried about the global financial system. He says, “There is this huge chaos going on in the financial business which I think we all sense. They are using desperate measures here to hold it together. . . . at some point it blows. There’s no doubt about it.” Sprott says the price of gold and silver are being suppressed because, “It’s the canary in the coal mine.”

Rising prices in precious metals, according to Sprott, would tell people, “Central bank policies are ridiculous and irresponsible, and people would realize that with the price of gold and silver going up.” When it comes to silver, Sprott says, “People keep buying at a rate to 50 to 1 to gold.” As far as gold is concerned, Sprott contends, “Physical demand for gold is out of line with supply. How can all these new people come into this market when there has been no increase in supply . . . for the last 12 years?”

Sprott’s analysis shows central banks are selling to make up for the shortfall and opines, “I would hate to think what happens when we all find out there is no gold in the Treasury.” Join Greg Hunter as he goes One-on-One with Eric Sprott of Sprott Asset Management. – Full Read: USAWatchDog

European Bank CEO Admits: “The Whole Thing Is Doomed”: As the European parliament attempts to create a budget and Draghi repeats how the temporary lull in European growth is merely a prelude to a growth renaissance in the second half of the year (not to be confused with the verbatim lie rehashed by European dignitaries in 2012, 2011, 2010 and 2009), it appears a few leaks of truthiness are seeing daylight in the disunion.

In a shockingly frank interview, the CEO of Saxo Bank describes the Euro’s recent rally as illusory and that “the whole thing is doomed,” as the continent is not supported by a fiscal union. As Bloomberg reports [8], Lars Seier Christensen says he would be a “seller of the EUR at anything near 1.40,” noting that “right now we’re in one of those fake solutions where people think that the problem is contained or being addressed, which it isn’t at all.” Confirming that the only thing holding the farce together is political not economic efforts, he sums the situation up perfectly: “people have been dramatically underestimating the problems.” – Full Read: ZeroHedge

Feds Buy Two Billion Rounds of Ammunition: Something strange is going on. Federal non-military agencies have bought two billion rounds of ammunition in the last 10 months. The Obama Administration says that federal law enforcement agents need the ammunition for “mandatory quarterly firearms qualifications and other training sessions.”

Radio show host Mark Levin is suspicious. He commented: 

“To provide some perspective, experts estimate that at the peak of the Iraq war American troops were firing around 5.5 million rounds per month. At that rate, the [Department of Homeland Security] is armed now for a 24-year Iraq war. A 24-year Iraq war! I’m going to tell you what I think is going on. I don’t think domestic insurrection. Law enforcement and national security agencies, they play out multiple scenarios. … I’ll tell you what I think they’re simulating: the collapse of our financial system, the collapse of our society and the potential for widespread violence, looting, killing in the streets, because that’s what happens when an economy collapses. I suspect that just in case our fiscal situation, our monetary situation, collapses, and following it the civil society collapses, that is the rule of law, they want to be prepared. I know why the government’s arming up: It’s not because there’s going to be an insurrection; it’s because our society is unraveling.” – Full Read: Breitbart

WEB Notes: Talk of financial collapse is now being discussed among governments and leaders of top financial institutions. It’s going to happen my friends. If you are a student of the bible you know this is a part of the plan. Worry not. Prepare yourself and your family mentally, spiritually and otherwise.

Billionaires Dumping Stocks, Economist Knows Why

Despite the 6.5% stock market rally over the last three months, a handful of billionaires are quietly dumping their American stocks . . . and fast.

Warren Buffett, who has been a cheerleader for U.S. stocks for quite some time, is dumping shares at an alarming rate. He recently complained of “disappointing performance” in dyed-in-the-wool American companies like Johnson & Johnson, Procter & Gamble, and Kraft Foods.

In the latest filing for Buffett’s holding company Berkshire Hathaway, Buffett has been drastically reducing his exposure to stocks that depend on consumer purchasing habits. Berkshire sold roughly 19 million shares of Johnson & Johnson, and reduced his overall stake in “consumer product stocks” by 21%. Berkshire Hathaway also sold its entire stake in California-based computer parts supplier Intel.

With 70% of the U.S. economy dependent on consumer spending, Buffett’s apparent lack of faith in these companies’ future prospects is worrisome.

Unfortunately Buffett isn’t alone.

Fellow billionaire John Paulson, who made a fortune betting on the subprime mortgage meltdown, is clearing out of U.S. stocks too. During the second quarter of the year, Paulson’s hedge fund, Paulson & Co., dumped 14 million shares of JPMorgan Chase. The fund also dumped its entire position in discount retailer Family Dollar and consumer-goods maker Sara Lee.

Finally, billionaire George Soros recently sold nearly all of his bank stocks, including shares of JPMorgan Chase, Citigroup, and Goldman Sachs. Between the three banks, Soros sold more than a million shares.

So why are these billionaires dumping their shares of U.S. companies?

After all, the stock market is still in the midst of its historic rally. Real estate prices have finally leveled off, and for the first time in five years are actually rising in many locations. And the unemployment rate seems to have stabilized.

It’s very likely that these professional investors are aware of specific research that points toward a massive market correction, as much as 90%.

One such person publishing this research is Robert Wiedemer, an esteemed economist and author of the New York Times best-selling book Aftershock. – Full Read: MoneyNews

Schmidt to sell nearly half his Google stake
Google Inc. (US:goog) chairman Eric Schmidt plans to sell up to $2.51 billion of his share in the company, according to a Securities and Exchange Commission filing late Friday. Schmidt owns 2.3% of Google’s outstanding shares and has 8.2% of the voting power. Under the plan, Schmidt, who owns about 7.6 million shares of Google stock, plans to sell about 3.2 million shares of his Class A stock. – MarketWatch

Is the Dollar Dying? Why US Currency Is in Danger

The U.S dollar is shrinking as a percentage of the world’s currency supply, raising concerns that the greenback is about to see its long run as the world’s premier denomination come to an end.

When compared to its peers, the dollar has drifted to a 15-year low, according to the International Monetary Fund, indicating that more countries are willing to use other currencies to do business.

While the American currency still reigns supreme — it constitutes $3.72 trillion, or 62 percent, of the $6 trillion in allocated foreign exchange holdings by the world’s central banks — the Japanese yen, Swiss franc and what the IMF classifies as “other currencies” such as the Chinese yuan are gaining.
“Generally speaking, it is not believed by the vast majority that the American dollar will be overthrown,” Dick Bove, vice president of equity research at Rafferty Capital Markets, said in a note. “But it will be, and this defrocking may occur in as short a period as five to 10 years.”

Bove uses several metrics to make his point, focusing on the dollar as a percentage of total world money supply.That total has plunged from nearly 90 percent in 1952 to closer to 15 percent now. He also notes that the Chinese yuan, the yen and the euro each have a greater share of that total. Full Read: CNBC

WEB Notes: We wrote about the collapse of the dollar some years back. It’s no secret it’s on it’s way out. What many don’t realize is the rest of the world’s currencies will crumble with the dollar. This may appear to be a collapse of the dollar and a rise of another currency but that is not going to happen. This is an engineered destruction. This collapse of the financial system is by design.

Bankia investors fear stock will be declared worthless

Small retail clients who invested in Spain‘s nationalised Bankia face substantial losses, with the bank’s shares temporarily suspended on the Madrid stock exchange on Thursday morning amid rumours that existing stock would be declared almost worthless.

The Frob, the country’s bank restructuring fund, was forced to admit that the price it will set for swapping debt into shares at the bailed-out bank would be low – but denied reports that it would value shares at just 1 euro cent each.

Spain’s Expansión newspaper had reported that the Frob had set the 1 cent level for shares that, when floated amid an aggressive marketing campaign in 2011, were valued at €3.75 (£3.23) each.

About 350,000 retail investors are thought to have bought at up to that price. A valuation of 1 cent would in effect wipe out their investments.

“The worst is going to happen,” the newspaper said in an editorial. “This cold dose of reality, partly a result of the obligations acquired with the European Union when it was rescued, contrast with what has been happening to Bankia’s share price.” The share price fell by more than 22% after a trading suspension was lifted on Thursday morning following the media report, though it later rose again. By late in the day it was trading at €0.41 – still more than 40 times the value reported by Expansión.
Bankia asked to be rescued last year as it drowned in a sea of toxic real estate left over from a residential construction bubble that burst five years ago, leaving a million new properties unsold.
The bank took €18bn of European aid, which went via the Frob and was added to Spain’s national debt.

Formed by the merger of seven provincial savings banks, Bankia was devastated – along with many of its Spanish peers – by the property market collapse, and a government-enforced clean-up of real estate exposures left it short of capital last year.

The complex recapitalisation of Bankia will see parent group BFA, now controlled by the Frob, subscribe to €10.7bn of Bankia-issued bonds that will then be converted into shares.
But the Frob insisted on Thursday that, although Bankia’s debts outweighed assets by €4.2bn in December, the conversion price had not yet been fixed.

“The entity’s negative valuation and its end-2012 projected results indicate that the price at which the Frob [will participate in Bankia] via BFA will entail a big reduction in the shares’ nominal value,” it said in a statement.

Bankia has forecast a €19bn loss for 2012. – Guardian

Moves in the Metal Markets

If you’ve been following the blog you have not only noticed the financials of the system imploding you have also been made aware of the precious metals market. More moves in that department below.

We are witnessing not only a currency war, but a move by nations to acquire physical gold. We have seen Germany and a few other nations request their gold back from the United States and France. We are entering a phase of protectionism. Eyes open folks…

Putin Turns Black Gold to Bullion as Russia Outbuys World

When Vladimir Putin says the U.S. is endangering the global economy by abusing its dollar monopoly, he’s not just talking. He’s betting on it.

Not only has Putin made Russia the world’s largest oil producer, he’s also made it the biggest gold buyer. His central bank has added 570 metric tons of the metal in the past decade, a quarter more than runner-up China, according to IMF data compiled by Bloomberg. The added gold is also almost triple the weight of the Statue of Liberty.

“The more gold a country has, the more sovereignty it will have if there’s a cataclysm with the dollar, the euro, the pound or any other reserve currency,” Evgeny Fedorov, a lawmaker for Putin’s United Russia party in the lower house of parliament, said in a telephone interview in Moscow. – Full Read: Bloomberg

Sprott – Default Coming As 850 Tons Of Gold Supply Vanished

Today billionaire Eric Sprott told King World News that the massive plunge in gold scrap recycling may be removing as much as a staggering 850 tons of gold from world supplies each year. Sprott, who is Chairman of Sprott Asset Management, also warned of a coming default on the COMEX, “And when it (the default) happens, there will be a substantial move in the price of gold (and silver). We’ll make up for these last two years in no time.”

Eric King: “KWN has been receiving information from refiners for quite some time, and this was from one of the largest metals refiners in the world, “The secondary market, which is scrap, business is down almost 50% year over year, and the previous year was already a down year. The only supply now is coming from the miners. This applies to both gold and silver. Gold and silver bar and coin demand is very strong and the supply has essentially dried up.”

Sprott: “It’s interesting, Eric, that the data on recycled gold is woefully lacking. That’s what I hear from my discussion with people, and Johnson Matthey in their six month report suggested that their recycling was down. Your evidence is meaningful. That’s what I hear.

Because the price has been static or down, essentially, for 2 years, the willingness to trade in gold rings and otherwise recycle some jewelry has diminished here. If it (recycling) is down 50%, I think recycling adds something like 1,700 tons to the gold supply above mine supply, well, that would imply a reduction of (a staggering) 850 tons (of gold supply)….

“That’s a very interesting number because as you know I wrote a report about two months ago asking whether the central banks have any gold left? All you see is incredible increased demand on a sustainable basis here.

The most recent example being the Chinese imports in December, the number was 114 tons. We only produce 200 tons a month of gold ex-China, and they are consuming well over 50% of that (total monthly global production).

So between that and the coins sales that have been strong, and the suggestions by various advisors, whether it be Kyle Bass, Ray Dalio, or Bill Gross at Pimco, that they should be buying gold, I just don’t know where this gold, where I do know where the gold is coming from, the gold has to be coming from the Western central banks.

As you know they are totally non-transparent about it. We’ve seen the Germans ask for some gold back. I think it’s a joke that they are receiving it over 8 years, and only a small part of it at that. So I have to believe there is a real tightness in all of the metals markets.

If you were amongst the central planers, and we have this huge financial chaos going on all of the time, a bank in the Netherlands and Italy went down, (you would know) the financial system hasn’t settled itself. Anybody with half a brain would realize, including the central planners, when you are printing money there are going to be consequences of that and they have to happen. The consequence of course is inflation.

In my mind the tell on inflation would be gold and silver going up. That would be the most logical place to see it manifested. So if you are the central planners and you are trying to get away with printing money, it would be in your playbook to keep the price of silver and gold controlled, and that’s what I think we are seeing.

That’s why when we have this huge increase in physical demand, that everybody can quantify, nothing happens to the price of gold. I’m sure the Western central banks are supplying those physical quantities.” – Full Read: KingWorldNews

U.S. gold bars and coins find new home overseas on Asian demand

Booming demand for gold as a store of wealth among Asian investors is driving physical gold bars and coins out of the United States and into Asia. A growing number of gold vaults for affluent Asians and new precious metals investment products, particularly exchange-traded funds, have led to an exodus of gold owned privately from the United States into emerging economic powers such as China.

On Friday, Commerce Department data showed U.S. exports of nonmonetary gold, which excludes central bank transactions, soared by 43 percent to $4 billion in December from the previous month.

That’s the highest total and the biggest month-on-month jump in U.S. private gold exports since September 2011, when gold rallied to a record high over $1,920 an ounce. Prices are currently about 14 percent below the peak at $1,643 per ounce. Hong Kong accounted for around $2 billion, or half of the nonmonetary gold exports for the month. – Full Read: Reuters

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