DECEPTION BY MANY NAMES
You can call it alliance, strategy, secrecy, corporation, planning, geopolitics, governance, organization, or conspiracy.
9/11 and the Great Recession of 2008 were Not Accidents.
Neither will the next disaster be an accident nor natural phenomena, though the news media will “spin” it as such a shocking unexpected surprise.
I will be blunt, with the wish to reach eyes who have not become aware of this Age of Deception.
Please do not misinterpret this discussion for a excuse to not conduct your research. Please do your thorough institutional conspiracy research and look at all opposing points of views and contradictory evidence. The thoroughness of your research will reveal the deception and hidden agendas that are obscured by corporate news releases that seek the public Trust.
Institutional Think Tanks (such as the Council on Foreign Relations and others) have planned strategies and policies that become signed agreements and treaties at G-20, BRICS, and U.N. meetings.
If you are someone who will not do time consuming research, then at least it must be said that you were told about the world wide institutional system of fraud and deception that contradicts most of what is taught by educational institutions.
Then, if you choose to ignore and dismiss conspiracy research, then you must face yourself and the consequences of your choices.
Forecasting International Calamities:
Bullies and psychopaths play rigged games and if the game is not rigged then they will take it over in an attempt to rig it!
Engineered disasters and geopolitical false flags are to be expected in those agencies.
The game of chess (or Xiangqi or shogi, or other ancient strategy games) is important in that it develops patience, strategy, and military forces into the deadly game.
My personal experiences showed me some things about an elite class (they were self identified as socialites, debutantes, Aristocracy, etc.) in North, Central, and South America, Caribbean, and South Pacific. My travels did not reach Europe, Russia, Africa, and Asia (though I did enjoy a evening date with a royal Princess from one of those regions who spoke 6 languages).
I saw private yachts, members only clubs, social events, suites of highly rated hotels, private jets, banks and casinos…
The events always felt wrong and out of place. On occasion when I spoke of it we would share what we saw; for example: of how the cost was an insult as if it was too cheap to buy then it was not good enough for their tastes; and How they had a demand and need to be treated with “special” importance. Some would visit for a week having spent a million dollars or more before departing.
Back to the rigged games, such as risk or monopoly which is today the exchange markets and the international monetary system, which in fact manipulates most things people do.
Reportedly, the U.S. government sold land and other assets to foreigners to finance the excesses of the U.S. government budget spending. A gargantuan $18 Trillion USD debt is the latest tally hanging around the USA neck.
Yes, indeed it is a worldwide rigged game that is endangering us all.
Perhaps a segment of the younger elites are more blatantly brutish and similar to the mafia?
Or perhaps secret agents from secret agencies have teams that are as brutal as the mafia ever claimed to be?
If so, then much of what we now observe could be explained by saying that at some point a segment of elite institutions will implement strategies to reform their unstable empire, even if they must plan for massive relocations of operation centers, sacrificial murder of some pawns, and fund military campaigns…
2,089 living Billionaires?
According to the independent.co.uk, the number of billionaires in the world has surpassed 2000 for the first time…
All the institutional investors (be bluntly honest: the markets are controlled by institutional investments, individuals who do not invest more than 9 digits worth of USD national currency are barely worth mentioning) are eagerly waiting on the Federal Reserve Board to announce rates (will they keep rates manipulated low or will they raise ’em?) this week.
That is institutional watch observation of the current state of the rigged “globalist” game.
Now back to strategy.
Managing a engineered crisis is like a chess player sacrificing a pawn as a ploy for a greater prize…
If higher rates will adversely impact emerging markets (such as Latin America, Asia, and Africa), then what do you expect those nations will do when this rate hike occurs and the too high U.S. interest rates makes emerging markets’ debt too expensive to pay back?
Will the emerging markets want to continue to borrow from the too expensive U.S. Dollar loan sharks?
A hangman’s noose is being tightened around the necks of the emerging markets economies when the U.S. Fed rates increase.
Oh, but wait!
The emerging markets, coincidentally, have a knight in shining armor suddenly arriving from BRICS and the AIIB to assist with new and better loans, bypassing the powerfully destructive U.S. Dollar sharks.
Can we expect a (herded) stampede?
To survive, the nations in emerging markets need a platform to trade with their national currencies, and it is not a coincidence that the emerging AIIB and BRICS development banks are such a safety platform.
Can we see a polarization with one trading bloc on the USD and another bloc off the USD?
WHAT IF it was all planned?
The international monetary system is based on debt.
Nations are facing the debt crisis and their national currencies are threatened along with their ability to trade for goods and services.
Conspiracy research reveals that and much more.
– China-backed Asian Infrastructure Investment Bank president says membership will increase to 70 soon.
ANKARA – The Asian Infrastructure Investment Bank (AIIB) has invited the U.S. and Japan to join, Jin Liqun, the first president of AIIB, said on Tuesday.
“The door is always open for Japan and the U.S. to become members,” Liquin said. “I think we will continue to have dialogue.” –newsfultoncounty.com
To conclude this brief discussion, we expect this 2015 year to experience exchange market turmoil (to be clear markets have been experiencing turmoil already, but expect worse) devastating emerging markets and their sovereign debt.
This obviously would pave a path for turmoil in later years for the Western Bloc as well. In such a state of instability we are watchful for political assassinations, false flag and other covert operations that could influence markets and social unrest. Certainly the G-20, BRICS, and U.N. will convene and make important announcements of new policies and newly signed agreements!
Will it REALLY be only a coincidence at how swiftly these complex policies can be presented to a shocked public?
Of Course Not.
Be personally prepared for emergencies.
.
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A Chinese clerk counts yuan banknotes at a bank in Nantong, east China’s Jiangsu province, July 22, 2015.
Nearly a month after China’s devaluation rattled world markets, doubts about the country’s currency policy remain unresolved.
On Aug. 11, the People’s Bank of China (PBOC) caught investors off guard with a 1.83-percent devaluation of the yuan against the U.S. dollar, pushing the currency to its largest one-day drop since 1994.
[…]
The sudden policy shift upset foreign markets and sparked warnings of a global currency war, but it won praise from some economists who saw it as an attempt to loosen controls and give the market more scope in China’s foreign exchange…
[Read more: rfa.org/english ]
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FYI:
Economist Michael Hudson’s new book, “Killing the Host” writes:
“My last task at Chase dovetailed into the dollar problem. I was asked to estimate the volume of criminal savings going to Switzerland and other hideouts. The State Department had asked Chase and other banks to establish Caribbean branches to attract money from drug dealers, smugglers and their kin into dollar assets to support the dollar as foreign military outflows escalated. Congress helped by not imposing the 15 percent withholding tax on Treasury bond interest. My calculations showed that the most important factors in determining exchange rates were neither trade nor direct investment, but ‘errors and omissions,’ a euphemism for ‘hot money.’ Nobody is more ‘liquid’ or ‘hot’ than drug dealers and public officials embezzling their country’s export earnings. The U.S. Treasury and State Department sought to provide a safe haven for their takings, as a desperate means of offsetting the balance-of-payments cost of U.S. military spending.”
(Chase is now the commercial banking unit of Wall Street investment firm, JPMorganChase.)
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Geopolitics is a conspiracy, you can call it other things if you want.
… Ken reported:
Gold, the renminbi and the multi-currency reserve system. Here is a snippet from its foreword…
…(Take note of the expectation of “twin shocks” from the dollar and euro.)
The author of this foreword, Baron Desai…
…of the notorious London School of Economics, has a rather interesting pedigree. From Wikipedia…
“Meghnad Jagdishchandra Desai, Baron Desai (born 10 July 1940) is an Indian-born, naturalised British economist and Labour politician. He unsuccessfully stood for the Speaker in the British House of Lords in 2011, the first ever non-UK born candidate to do so…
Currently, he is chairman of the Official Monetary and Financial Institutions Forum (OMFIF) Advisory Board, an independent membership-driven research network. It focuses on global policy and investment themes for off the record public and private sector engagement and analysis…
He was made a life peer as Baron Desai, of St Clement Danes in the City of Westminster, in April 1991 [a “life peer” is someone who has been granted a non-hereditary title of nobility by the British “royals”]…
In 2003, he retired as Director of the Centre for the Study of global governance, which he founded in 1992 at the London School of Economics (LSE), where he is now Professor Emeritus.”
So this is a guy who is in deep with the globalist London Establishment. That makes what he suggests in this foreword all the more interesting. After establishing the East versus West dialectic for his readers, he goes on to say this…
“I favour extending the SDR to include the R-currencies – the renminbi, rupee, real, rand and rouble – with the addition of gold. This would be a form of indexation to add to the SDR’s attractiveness. Gold would not need to be paid out, but its dollar or renminbi or rouble equivalent would be if the SDR had a gold content. By moving counter-cyclically to the dollar, gold could improve the stabilising properties of the SDR. Particularly if the threats to the dollar and the euro worsen, a large SDR issue improved by some gold content and the R-currencies may be urgently required.”
This just goes to show what a scripted farce the whole East versus West conflict has been. Here is a high-level London Establishment minion calling for the BRICS currencies and gold to be added to the SDR basket, and he even broaches the subject of the inclusion being done urgently if a problem develops with the dollar and euro. Of course, none of this is a surprise to you…
Below is some more important research…
ECONOMIST MAGAZINE WARNING UNLOCKED…
SHEMITAH/JUBILEE It BEGINS
There is so much going on in the first 2015 issue of the Economists Magazine seen here:
https://socioecohistory.files.wordpress.com/2015/01/economist_magazine_jan2015.jpg
Well i believe they are warning us about NOW!!
There’s much more to it, but i took a small sample of the pic and broke down what they are telling us…
See my picture with breakdown below
BREAKING: CHINA ECONOMIC DATA COMING IN…It’s TERRIBLE!!!! WORST IN 15 YEARS.
When China transitioned to a new currency regime midway through last month, the PBoC triggered a veritable meltdown in emerging markets.
Make no mistake, part of the carnage was due to the fact that by devaluing the yuan, Beijing was effectively robbing the world of export competitiveness at a very precarious time. Fears that a weaker yuan would put upward pressure on regional REERs while further dampening onshore demand exacerbated an already tenuous situation across EMs, and in at least one case, forced the abandonment of a currency peg.
Having said that, the yuan devaluation was perhaps more significant for what it telegraphed about China’s economy. That is, the yuan had appreciated by some 15% in REER terms in the space of just 12 months, and the fact that Beijing hadn’t gone the nuclear devaluation route (i.e. had “merely” resorted to multiple policy rate cuts) was seen by some as an indication that perhaps the economic situation wasn’t as bad as many people feared. The devaluation effectively crushed that theory and indeed, there are some indications that behind the scenes, China is targeting a devaluation on the order of some 20% which would have the effect of adding back 20 percentage points of export growth on the way to – hopefully- resuscitating output.
On Sunday, we got still more evidence to suggest that China’s economy isn’t growing at anywhere near the clip the official figures suggest as industrial production came in light of expectations and FAI rose at the slowest pace since 2000. Here’s WSJ:
The data released Sunday pointed to continued weakness across large swaths of the world’s second-largest economy, heaping more pressure on the government to seek to further stimulate activity.
“This is very disappointing data,” said ANZ economist Li-Gang Liu.“It’s very difficult to see Premier Li Keqiang getting his 7% growth target this year.”
China’s industrial production grew 6.1% year-over-year in August, according to the National Bureau of Statistics. While this was marginally faster than July’s 6.0% level, it compared with an already very low reading in August of 2014 and fell well below a median 6.6% forecast by 12 economists in a Wall Street Journal survey.
Fixed-asset investment in nonrural areas of China rose 10.9% in the January-August period compared with the year-earlier period. This was also below expectation and slower than the 11.2% increase recorded in the January-July period.
http://www.zerohedge.com/news/2015-09-13/chinas-economy-continues-crumble-key-data-worst-15-years
a more current issue (albeit with much less symbolism) pretty much tells us directly, it’s coming:
it’s over!!! They NEVER talk like this, with china is all roses and rainbows!!
“The economy is showing no sign of recovery,” said Ding Shuang, chief China economist at Standard Chartered Plc in Hong Kong. “From the perspective of monetary policy, the government has done what it can…”
China economy: New signs of economic slowdown
25-year low
Last week, the Chinese Premier, Li Keqiang, said China remained on track to meet all its economic targets for this year despite the economic data.
China has already cut interest rates five times since November to encourage lending and spur economic activity, along with other measures to boost growth.
Premier Li pledged that China would take more steps to boost domestic demand and that it would implement more policies designed to lift imports.
http://www.bbc.com/news/business-34237939
BEIJING — Growth in China’s investment and factory output missed forecasts in August, pointing to a further cooling in the world’s second-largest economy that will likely prompt the government to roll out more support measures.
“The pace of slowdown in fixed-asset investment is relatively fast – dragged by the property sector, while the factory sector remains sluggish,” said Zhou Hao, senior economist at Commerzbank AG in Singapore.
“Overall, the economy is very weak and the central bank may have to continue cutting interest rates and banks’ reserve requirement.”
Some economists believe current growth is already much weaker than official data suggest.
http://www.cnbc.com/2015/09/13/china-august-industrial-output-up-61-on-year-vs-64-expected.html
AC
RELATED:
Click to access gold_renminbi_multi-currency_reserve_system.pdf
http://www.bloombergview.com/articles/2014-11-13/putin-is-the-biggest-gold-bug
http://www.bloomberg.com/news/articles/2014-10-29/russia-buys-most-gold-for-reserves-since-financial-crisis-of-98
http://www.geopolitical-info.com/en/expert/professor-enrico-colombatto
http://www.polyconomics.com/memos/mm-980909.htm
http://www.zerohedge.com/news/2015-02-12/russia-planning-gold-based-currency
https://investmentwatchblog.com/economist-magazine-warning-unlocked-shemitahjubilee-it-begins/
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The Other Reason for a Fed Rate Increase
http://philosophyofmetrics.com/the-other-reason-for-a-fed-rate-increase/
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Are You Ready for the IMF Governance Crisis?
By JC Collins 14 Sep 2015 philosophyofmetrics.com
Back in May I published a piece titled China Gold Deposits to the IMF – The Lima Accord and Gold Valuations. In that post we reviewed how the gold repatriation which has been taking place is in fact a reversal of the gold which was deposited with the Federal Reserve during the establishment of the USD structured system at Bretton Woods in 1944.
With the arrival of a new monetary framework, countries will need to transfer their gold deposits from within the dollar based system, to the multilateral based system. This system is being structured around the International Monetary Fund and the SDR asset. And like during Bretton Woods, gold deposits are about to be consolidated once again, this time within the multilateral framework of the IMF itself.
In recent days international institutions have been expressing their concern with the upcoming interest rate increase by the Fed. This will be the first such increase since June, 2006. The effects of this one increase will reverberate around the financial world and cause considerable volatility and sudden movements in all markets.
The Bank for International Settlements, the IMF, the World Bank, China, and a host of other central banks and banking personal, have stated that the Fed should not raise rates this week. The inevitability of this increase is now sinking in on many. Whether it’s on Thursday, in October, or in December, it is coming.
Next month there is the annual meeting of the World Bank and IMF in Lima, Peru, followed by the G20 Summit in Turkey, in December. It is my analysis that interest rates will rise this week for the first time in nearly a decade. Other central banks will eventually follow in this normalization of monetary policy. This will establish the next phase of the international monetary crisis as the rest of the world is given the justification it requires to begin shifting the monetary framework to reflect the realities of the emerging markets and balance of payments deficits.
The latest deadline for the 2010 IMF Quota and Governance Reforms is set for tomorrow, Sept 15th, just before the announcement by the Fed of the interest rate increase. This is not a coincidence. The US has delayed implementing these agreed upon reforms for the last 5 years, and the G20, IMF, World Bank, China, and even the BIS, are all now prepared to move forward on reforming the international monetary system without the support of the United States.
This unfortunate situation has been built with great care and strategy since the financial crisis. There have been many theories, analytical conclusions, and endless propaganda surrounding the international monetary system. This week, and the ones that follow, will finally separate the absurd from the factual, the unrealistic from the realistic, and the improbable from the probable.
Those who stated that monetary policy could never be normalized will soon find out if they were correct in their analysis. Those who said that interest rates could never rise will be proven wrong in the face of the realization that they just were.
But what everyone seems to agree on is that there will be volatility following the first of many incremental interest rate increases. Wealth will shift. Stocks will lose. Stocks will gain. Exchange rate arrangements will be stressed, and some will break.
And from it all the international monetary framework will begin to be reformed, with the United States providing the catalyst for a change that should have happened years ago. The refusal of the US Congress to support the 2010 IMF reforms will be registered as one of the greatest monetary missteps by any administration. Not since Nixon went on television in 1971 to announce the end of the dollar gold standard has the world been ripe for dramatic monetary change.
Following the interest rate increase, and ensuing volatility, the World Bank and IMF will begin to implement the necessary reforms to the international monetary system. These reforms and developments could very well be announced during the annual meeting in Peru next month. It will the Lima Accord which will establish the beginnings of a new multilateral framework.
With so much happening within the monetary and geopolitical realms, it is challenging not to succumb to excitement and passion when attempting to present a factual and detailed analysis of the transition. But in these times, we are witnessing a once in a life time event. Not since the Bretton Woods Accord of 1944, has the world been primed for massive monetary and financial change. – JC
Recommended POM reading to further understand the scale and scope of this monetary transition:
The Script Is About to Flip
United Nations and the Sept 15th Convergence of BRICS/IMF Mandates
Meet the Asian Monetary Fund
China’s Rate Change Is Preparation for Widening of Trading Band
Analysis on Recent IMF Report on SDR Adjustments
Will China Transfer American Debt to the IMF
POM Analysis is Trending Accurately
SDR Negotiations – A Visual Guide
Rebalancing Wealth in the 21st Century
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Hugo Salinas Price: We’re Going to be Drowning in Worthless Paper
Video posted 18 Aug 2015
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BIS Quarterly Review September 2015
https://www.bis.org/publ/qtrpdf/r_qt1509_ontherecord.htm
Please note that the Special Features present the views of the authors and not necessarily those of the BIS. When referring to the articles in your reports, please attribute them to the authors and not to the BIS.
On-the-record remarks by Mr Claudio Borio, Head of the Monetary & Economic Department, and Mr Hyun Song Shin, Economic Adviser & Head of Research, 11 September 2015.
Claudio Borio
We often look at the world as a set of still frames, rather than as a movie, as we should.
The still frame of the last quarter – the period under review in this issue – has one distinguishing feature: turbulence. Initially – think of it as the left side of the frame – it was Greece that grabbed all the attention and headlines. But the Greek crisis, for all its drama and potential disruptive force, soon ended once some form of agreement was reached in early July. Its impact on global markets remained quite limited. Market participants had hardly had the time to breathe a sigh of relief when Asia, in particular China, appeared in the centre of the frame. First, the origin of the shock was the Chinese stock market, which on 8 July saw its largest one-day drop ever; then, on 12 August, it was the authorities’, admittedly rather small, devaluation of the currency as they officially shifted towards a more market-oriented exchange rate regime. Rather remarkably, the Chinese stock market had already fallen by over 30% from its June peak before its large one-day July move, but its impact on global markets had been quite contained; outside Asia, no one had taken much notice.
The shocks in July and August set off much bigger and far-reaching tremors. Stock markets around the world weakened. More importantly, commodity prices plummeted – accelerating their previous longer-term decline – and volatility spiked. The oil price gyrations were remarkable. The price sunk to a new trough below $40 on 24 August, undoing the whole of the partial recovery in the second quarter of the year, then soared some 30% in only one week before dropping back again. Even more importantly, the exchange rates of emerging market economies (EMEs), especially commodity exporters, were hit hard, and their credit spreads widened, although generally not dramatically. By and large, market functioning outside the epicentre of the shocks has been smooth. That said, occasionally even FX markets have showed signs of gapping: sharp price moves with little trading. And there have been signs of minor dislocations in equity markets, with an increasing incidence of trade halts and wedges between the price of exchange-traded funds and the underlying equities.
Why such a big difference in the response to the initial sharp drop in Chinese equity prices in June and the subsequent shocks? In part, this may reflect market participants’ selective attention. More fundamentally, though, it mirrors their shifting perceptions of background economic conditions and of the power of policy. The initial equity drop was probably largely seen as a natural, to some extent intended, market-specific correction from blatantly overstretched valuations. Moreover, the authorities’ measures to smooth the adjustment provided some comfort. But the mood quickly changed as signs of economic weakness mounted and market participants began to question the effectiveness of the policy measures. The renminbi’s devaluation, following persistent depreciation pressures, did nothing but fuel those concerns, prompting the authorities to lean against them as events unfolded.
If we shift our gaze to the right side of the frame, we see market participants pondering further about what the shifting global picture means for the monetary policy outlook in the large international-currency jurisdictions, first and foremost the United States – a key underlying theme. Expectations of the timing of the Federal Reserve’s lift-off have ebbed and flowed during the period, in synch with both domestic and global developments. The ECB is now seen as ready to ease further if conditions deteriorate, while the Bank of Japan is facing weaker output and inflation. This follows easing measures by several other central banks, especially those whose currencies have been under pressure; only the Central Bank of Brazil tightened policy in the period under review as inflation rose despite a deepening recession. As we speak, core markets’ bond yields have undone some of the increases of the previous quarter and remain extraordinarily low.
If we now settle back and look at events as a movie, their full meaning becomes clearer. In the big scheme of things, current events were already foreshadowed by the past evolution of the global economy.
The BIS statistics on international financing reveal that a slowdown in the credit flows to EMEs had already started in the last quarter of 2014 and strengthened thereafter, even as such flows had gathered pace among advanced economies. That is, the data reveal a certain bifurcation in global liquidity, with credit to China, Russia and, to a lesser extent, Brazil being especially weak. Here, the role of credit denominated in US dollars plays a critical role. As highlighted in a number of BIS publications, the total amount of dollar credit to non-bank borrowers outside the United States had risen by over 50% since early 2009, to 9.6 trillion by end-March 2015, and almost doubled for EMEs, to over 3 trillion. Much of it has found its way to corporates, raising serious questions about the financial vulnerabilities involved and the implications for self-reinforcing movements in exchange rates and credit spreads. Hyun will say more about this in a minute.
Even more important are shared vulnerabilities in domestic balance sheets, which have gradually emerged over the years as our movie has been playing. After all, when measured against GDP, while the size of foreign currency debt has indeed grown substantially, for most EMEs it remains below the levels reached ahead of previous financial crises. But since at least 2009, domestic vulnerabilities have developed in several EMEs, including some of the largest, and to a lesser extent even in some advanced economies, notably commodity exporters. In particular, these countries have exhibited signs of a build-up of financial imbalances, in the form of outsize credit booms alongside strong increases in asset prices, especially property prices, supported by unusually easy global liquidity conditions. It is the coincidence of the reversal of these booms with external vulnerabilities that should be watched most closely. A holistic view is critical. We are not seeing isolated tremors, but the release of pressure that has gradually accumulated over the years along major fault lines.
Taking an even longer-term perspective, as argued in detail in the latest BIS Annual Report, all this points to weaknesses in domestic and international policy arrangements – arrangements that have so far been unable to constrain sufficiently the build-up and unwinding of hugely damaging financial booms and busts across countries. Hence a world in which debt levels are too high, productivity growth too weak and financial risks too threatening. This is also a world in which interest rates have been extraordinarily low for exceptionally long and in which financial markets have worryingly come to depend on central banks’ every word and deed, in turn complicating the needed policy normalisation. It is unrealistic and dangerous to expect that monetary policy can cure all the global economy’s ills.
All this is reminiscent of the old joke about the stranded tourist who, having asked for directions, was told: “If I were you, I wouldn’t start from here.”
Hyun Song Shin
Let me provide some further perspective on global financial flows from the BIS international banking and financial statistics.
As Claudio has mentioned, one key theme in this issue of the Quarterly Review is the contrast between the continued revival of financial flows in advanced economies and the subdued financial flows in emerging market economies.
Especially noteworthy in the advanced economies has been the pickup in euro-denominated financing activity which has coincided with the asset purchase programme of the ECB.
One example of the increase in euro-denominated borrowing has been the growth of euro-denominated bonds issued by non-financial corporates from the United States – the so-called “reverse yankee bonds”. Net issuance in the first half of 2015 was almost $40 billion, which is more than three times the pace of issuance in the same period last year.
It is true that euro-denominated borrowing from outside the euro area is still small compared with the equivalent US dollar amount, but it is now perhaps large enough to be associated with deleveraging episodes during periods of market turbulence. For instance, we saw during August that the euro strengthened when markets were in a “risk-off” mode. The flip side of this is that a weaker euro is associated with greater risk-taking, with associated cross-border spillover effects.
As Claudio has already mentioned, our latest estimate of the stock of US dollar-denominated debt of non-banks outside the United States stands at $9.6 trillion. For emerging economies, this overhang of US dollar-denominated debt has been weighing on macroeconomic conditions in recent weeks.
Nevertheless, there are a few mitigating factors here:
First, the international debt securities issued by emerging market corporates have long maturities, and the maturities have been getting longer. As we describe in the Highlights section, the emerging market debt securities issued so far in 2015 have had average maturity of 11 years. Borrowers with long maturity debt are less vulnerable to runs.
Second, many emerging economies hold substantial foreign exchange reserves, in contrast to their situation in past crises.
And third, many of the emerging market issuers are global firms with revenues in foreign currency.
But even here, we need to bear in mind some important qualifications:
First, even if the bonds have long maturities, there are other repercussions on the economy if US dollar-denominated borrowing begins to unwind. Non-financial firms are deeply embedded in the economy, and their financial activities spill over into the rest of the economy. A recent BIS working paper finds that dollar borrowing by emerging market corporates has had the attributes of a “carry trade” where, for every dollar raised through a bond issue, around a quarter ends up as cash on the firm’s balance sheet. Here, cash could mean a domestic currency bank deposit or a claim on the shadow banking system, or indeed a financial instrument issued by another firm. So, dollar borrowing will spill over into the rest of the economy in the form of easier credit conditions. When the dollar borrowing is reversed, these easier domestic financial conditions will be reversed. This issue of the Quarterly Review has a box by Bob McCauley on capital outflows from China that illustrates these themes.
Furthermore, even if a country has large foreign exchange reserves, the corporate sector itself may find itself short of financial resources and may cut investment and curtail operations, resulting in a slowdown of growth. So, even a central bank that holds a large stock of foreign exchange reserves may find it difficult to head off a slowing real economy when global financial conditions tighten. Arguably, such a slowdown is part of what we are seeing right now in emerging market economies.
Let me now turn to the special features in the Quarterly Review. In this issue, we unveil a number of enhancements to the statistics produced and disseminated by the BIS.
Let me mention three, in particular:
First, we have enhanced our international banking statistics. Among other things, we now provide more detailed data on the domestic side of banks’ balance sheets, as well as more detailed breakdowns of counterparties and currencies.
Second, we are publishing harmonised series on government debt. In compiling the new series, we have applied consistent definitions so as to allow better assessment of the evolution of government debt stocks over time and comparability across countries.
Third, we are publishing debt service ratios – that is, the ratio of principal and interest payments to income – for 32 countries. These are estimated from aggregate data, but they should give a good picture of how the indebtedness of the household or corporate sector of different countries has evolved over time and how it impinges on their real economic activity.
Let me also add that the BIS is revamping how it disseminates its data.
The tables previously published in the statistical annex to the Quarterly Review have been replaced with charts illustrating the latest developments.
The tables themselves have been redesigned and gathered in a new publication, the BIS Statistical Bulletin. These tables are made more accessible in a new dynamic web-based tool, the BIS Statistics Explorer. Please check them out.
The special feature on monetary policy spillovers by Boris Hofmann and Előd Takáts in this issue looks more closely at how short-term interest rates and long-term bond yields around the world are influenced by those in the United States – not just through financial market and macroeconomic linkages, but through US policy decisions. The authors find that the monetary policy decisions of the Federal Reserve have an impact on policy decisions elsewhere that goes beyond the normal linkages that take place through financial market prices.
Finally, a feature by Eli Remolona and Ilhyock Shim looks at the increasing integration of the banking system in Asia. The greater regional integration of banking in Asia is partly a reflection of local banks taking up the space left by the withdrawal of wholesale-funded European banks from Asia, but it also reflects the rapid growth of credit demand from borrowers in the region. Deepening financial integration brings many benefits, but the authors also point to the need to address financial stability challenges, such as making sure the new regional banks do not rely excessively on short-term wholesale funding, denominated in foreign currency.
Posted 11 Sep 2015
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US interest rate rise could trigger global debt crisis
Global debt levels are dangerously high and central banks cannot keep the game going indefinitely, warns the high priest of orthodoxy
By Ambrose Evans-Pritchard 8:30AM BST 14 Sep 2015
http://www.telegraph.co.uk/finance/economics/11858952/BIS-fears-emerging-market-maelstrom-as-Fed-tightens.html
“Debt ratios have reached extreme levels across all major regions of the global economy, leaving the financial system acutely vulnerable to monetary tightening by the US Federal Reserve, the world’s top financial watchdog has warned.”
Federal Reserve to leave door open for interest rate rise despite ‘Black Monday’ turmoil
Fed chairman Janet Yellen set to make case for higher rates by the end of the year
Bankers Theft
Keiser Report: ‘Made in Europe’ Banking Frauds
Video posted 15 Sep 2015
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Listen to this West Va, Charleston SC, conference call:
The Amount of Corruption and Fraud is both Amazing and Sickening!
People in America Challenge the Jesuit controlled Vatican, international monetary system, District of Columbia federal government in America.
Cestui que Vie Accounts and Legal Trusts insures every registered citizen of every nation.
Pope visits USA, and what is happening this September 2015; current events…
Mass Arrests soon?
http://hudok.info/files/3914/4230/5599/Conference_Call_wi_Thomas_9_14_15_64kbps.mp3?_=1
or click here to listen
Source: http://www.stage2omega.com/urgent-call-need-to-listen-to-this-call/
Please Jump to Que 7:00 minute marque
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September 23rd 2015 Here IT Comes
Below is another interesting discussion from a free thinking, truth seeking researcher:
Video posted 17 Sep 2015
“Although I do not believe any significant event will occur on or about September 23rd. 2015 – MANY do.
I am just contemplating that this might be a big opportunity for a FALSE FLAG event to try to attach that event to this date which many are clinging to.
I see it as a big opportunity for the elite to “pull off” some sort of trick or false flag event in order to begin the final consolation of power into the hands of a one world government.
Again, I am not predicting anything but if something does happen, people should look at it with VERY discerning eyes.” –MrThriveAndSurvive
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Martin Armstrong:
That is what the founder of Armstrong Economics said.
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Questions submitted by the Spanish Press
Q: You predicted an economic peak by October 1, and you suggest there may be a U.S. government shutdown on that day. What’s going to happen in the following months?
A: 2015.75 (September 30/October 1), is the BEGINNING of an economic trend rather than the end. It also happens to be the day the U.S. budget must be approved. A fight over the debt ceiling is shaping up once again. This is more symbolic of the debt crisis, since all we ever have are these hearings to raise the debt ceiling. It never ends. The likelihood of the U.S. actually defaulting is zero. However, this target seems to mark the beginning of a sovereign debt crisis that is engulfing the entire world. Its importance may be that it draws attention to the problem of government debt everywhere. We should see a rise in interest rates begin as more and more capital starts to question government debt and the long-term future. This is a 5000-year low in interest rates, which is totally insane.
Q: You have publicly said that the current economic system works as a Ponzi scheme, and that governments and markets need regulation. Could you expand on that and how to regulate them?
A: Federal government should be prohibited from borrowing money. Politicians exempt themselves from all criminal laws, and thus there is no means of a check and balance to protect society. Eliminate the power to borrow, eliminate federal taxation, and governments should simply expand the money supply according to a fixed level of GDP (say 5%), which must be calculated by a PRIVATE independent board for ALL countries. Doing all of the calculations at the same place will make it as difficult as possible for governments to manipulate their economic numbers to spend more money. We also no longer need taxation at the Federal level for that is a barbaric relic from the past when money was commodity based. We are no longer in a barter economy so we do not need taxes. Eliminate taxes and economic growth will expand, lowering unemployment, and the lost generation will have restored hope for the future.
Read More: http://www.armstrongeconomics.com/archives/37075
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“Slavery and the eight veils”
http://proliberty.com/observer/20011212.htm
“Those of us who can see “the conspiracy” have participated in countless conversations amongst ourselves that address the frustration of most peoples’ inability to comprehend the extremely well-documented arguments which we use to describe the process of our collective enslavement and exploitation. The most common explanation to be arrived at is that most people just “don’t want to see” what is really going on.
Extremely evil men and women who make up the world’s power-elite have cleverly cultivated a virtual pasture so grass green that few people seldom, if ever, bother to look up from where they are grazing long enough to notice the brightly colored tags stapled to their ears.
The same people who cannot see their enslavement for the pasture grass have a tendency to view as insane “conspiracy theorists” those of us who can see the past the farm and into the parlor of his feudal lordship’s castle.
Finally, I understand why.” -Don Hawkins
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Brazil’s debt rating cut to ‘junk’ status by S&P
Video posted 11 Sep 2015
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Reblogged this on SA ITNJ and commented:
Hey Ron,
can see why you have been away for so long:)
great post, thank you;
We say that it was well planned from both sides; unless, we the people are involved in the decision-making process, it is NULL & VOID ab initio!
We actually listen to friends speaking as if Russia is the saviour; there is only one and that is numero uno; if we do not stand up and take action and be involved and stay involved then the misery will continue… and worsen very quickly…; in peace
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Happy greetings brother,
A joy to hear from you.
“void ab initio” indeed, the international monetary fraudulent system has at no time had any legal validity.
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Carroll Quigley (Bill Clinton’s mentor) wrote in Tragedy and Hope that banks create most depressions by contracting the money supply. So long as they retain total control over the creation of money, this seems inevitable.
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Well before the 1960’s (Carroll Quigley’s book) was Congressional testimony and debate that said the same: Rep. Charles Lindbergh, Sr., R-MN and father of the future aviator, called the Federal Reserve Act “the worst legislative crime of the ages.” And Rep. Louis T. McFadden, a Republican representative from Pennsylvania who, as a former bank President, moved to impeach President Herbert Hoover in 1932 and introduced a resolution to bring conspiracy charges against the Board of Governors of the Federal Reserve for engineering the financial crisis…
Have you seen their conquest buildings in NY, that seems to me to be rubbing it in our eyes?
My Creepiness meter is pegged!
Video posted 13 Sep 2015
They have placed a bony “closed eye” structure dubbed Oculus over the rebuilt World Trade Center transportation hub that overlooks the new Ground Zero. The skylights in the architecture, which has been referred to as “a living, evolving, morphing creature,” will now “open” each year only once… on 9/11.
Each year, the public will symbolically “experience a subtle sense of man’s vulnerability, while maintaining a link to a higher order.”
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Oh, and PS:
I forgot to add, FREE SPEECH is outlawed at 9/11 ground zero WTC N.Y.
In your eye, blindingly mockery…
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I never liked the first World Trade Center.
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The ‘facts’ show the total absurdity of paying attention to anything Central Bankers state http://archive.aweber.com/sku_newsletter/5O8M1/h/The_Hype_About_the_Federal.htm
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LOL,
decepticons R they 🙂
And bless Kim, but his investments is playing in their rigged game (and he knows it, as he talks about the money mafia’s deception a lot)…
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PS: Kudos for Kim for correctly reading the FOMC, as many others have also predicted “quantitative easing to infinity”…
But psychopaths controlling a rigged and unstable ponzi economy is something that eventually will lead to disaster and ruins.
I agree with Kim, I shouldn’t pat him on the back; for as he said:
“to pat oneself on the back in an absurd congratulatory manner for this accurate “prediction”. Who cares if I’m right and the Feds do nothing as usual? Even more importantly, who cares if I’m wrong and the Feds hike interest rates? A guess is just a guess and nothing more. Whatever the decision today, there will likely be a knee-jerk reaction to this decision in US stock markets, and it could even be a significant knee-jerk reaction, but if the Fed bankers decide not to raise interest rates, this is NOT a win for the US stock market despite any short-term knee-jerk reaction that may falsely interpret this decision as a win. On the contrary, unless the Feds decide to raise interest rates by 0.50%, a 0.25% raise is not going to really affect any markets significantly in the long run unless they are followed by quarterly raises every quarter. In the end, whatever the Feds announce at 2PM NY time today should not affect your long-term outlook on markets as neither of the two possible decisions will significantly alter the future fate of global markets. Instead, the most important thing to understand is the massive fraud that is systemic in the global financial system and to allow a deep and complex understanding of this fraud to drive your investment decisions.”
Dangerous gamble winning big in the rigged casino:
Playing a rigged game is easy to win because you know about the rigging; however when the bullies get physical and direct their wrath at you and like-minded smarties for cashing in on uninvited winnings…
Know that you are NOT a member of their dangerously destructive club.
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Reblogged this on Finding Truth In an Illusory World and commented:
Much appreciation for all you do….
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Happy greetings and thank you for your wonderful efforts too!
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The 70th anniversary of the United Nations is a Jubilee!
“mark this special year under the theme of “Strong UN. Better World”.”
Now [September 2015] comes the Jesuit Priest Pope Francis (Bergoglio), Russia President Vladimir Putin, China President Xi Jinping to speak at the United Nations in New York…
Pope – September 25
28th September 2015 is a speech marathon at U.N Headquarters
Xi – September 28
Putin – Sep 28
…and other heads of government.
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This Video Is A Must See!
Watch the video for possible bad translation, for accurate future prediction or watch it for entertainment value; but watch and be astounded at what a Frenchman predicted from 1987.
*If you are fluent in French and English then please add your translation.
Published on Sep 11, 2015
“Alert! From 1987 Accurately Predicts this September 2015. The man in the video is a French, name Jacques Nietzermann. If this clip is real, this guy makes some of the most mind blowing predictions I’ve ever heard from 1987. Be alert for analysis of his predictions “Doomsday” around September 23 – 28 2015.”
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Bizarre ‘Dance Of Destruction’ Performed At CERN Ahead Of Launch
CERN’s biggest explosion ever is schedule for that time…
C.E.R.N. = “Conseil Européen pour la Recherche Nucléaire”
The European Organization for Nuclear Research is known as CERN.
A European research organization that operates the largest particle physics laboratory in the world. Established in 1954, the organization is based in a northwest suburb of Geneva on the Franco–Swiss border, (46°14′3″N 6°3′19″E) and has 22 member states. Israel is the first (and currently only) non-European country granted full membership.
NOTE: The World Wide Web began as a CERN project named ENQUIRE, initiated by Tim Berners-Lee in 1989 and Robert Cailliau in 1990.[15] Berners-Lee and Cailliau were jointly honoured by the Association for Computing Machinery in 1995 for their contributions to the development of the World Wide Web.
Based on the concept of hypertext, the project was intended to facilitate sharing of information among researchers. The first website was activated in 1991. On 30 April 1993, CERN announced that the World Wide Web would be free to anyone. A copy[16] of the original first webpage, created by Berners-Lee, is still published on the World Wide Web Consortium’s website as a historical document.
IMPORTANT NOTE:
CERN’s Logos
666
SHIVA the destroyer
Alice
micro-singularity (black hole)
and a reminder of what scientists and concerned researchers are discussing about CERN:
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