Jul 162015
 
This is how. Over the past few days and (to a lesser extent) past few months, we have witnessed a remarkable series of events. First, we had a member (i.e. victim) of the corrupt European Union stand up to the bullies of the Troika, and say “no.” No, to more extortion. No, to more economic rape (via enslavement to debt). No, to the continuing/worsening infringement on its sovereignty. Obviously that nation was Greece, a nation which everyone, including the new government of Greece, agrees is bankrupt. In the world of commerce, there is only one “solution” to bankruptcy: reduce the debt, if not eliminate it, completely. The corrupt EU, European Central Bank, and the International Monetary Fund have absolutely refused to consider any reduction in Greece’s debt-load. In other words, they have absolutely refused to consider helping Greece. Instead, this diabolical political/economic cabal dictated an ultimatum. It demanded that Greece take on more debt, harming that economy even further under the weight of the additional interest payments on that debt, when it is already impossible for Greece to pay the interest on its current debt. And, as a “condition” for burying Greece under more, punitive debt, these economic sadists were also demanding that Greece implement more (suicidal) Austerity policies. As previous commentaries have pointed out, Austerity kills. Every Eurozone nation which has engaged in this seemingly neo-Nazi, economic suicide has seen its economy get sicker, and its deficit problems get worse, not better. Thus every Eurozone nation – except Greece – has been allowed to back-off on this economic suicide, in order to prevent the total collapse of those economies, as well. In simplest terms, for every 1 euro in “Austerity” cuts, the government loses 2 euros in revenues. It is not a path to economic salvation. Rather, it is the surest and most rapid means to complete the destruction of these already insolvent economies. Thus when Greece said “no” to more debt and more Austerity, it was doing nothing more than saying “yes” to common sense. However, the tyrannical Troika would not accept “no” as an answer to their ultimatum. The Eurozone thugs tightened their choke-hold on Greece’s economy, trying to throttle it into submission. Simultaneously, they attacked the Greek people with their propaganda: any and every form of fear-mongering of which these tyrants could conceive. As a response to the increasing lies, political pressure, and economic blackmail, Greece’s (more…)
Mar 042015
 
Editor’s Note: This is a warning shot. The global economy is undergoing a sever change.  I suggest buying precious metals. “metal-in-hand” is the best an option is finding an asset backed digital currency to invest in. Why This Greek Tragedy Could Mean Global Disaster One of the assumptions of the eurozone – those 19 countries in Europe that use the euro as their national currencies – is that if any country left the zone, economic disaster would follow in its wake. Only a few days ago, it appeared that heavily indebted Greece might be forced to drop the euro and return to the drachma, the currency it used before the euro. During the 1990s and early 2000s, Greece was spending money like a sailor on shore leave with a limitless credit card. The government ran up debts amounting to hundreds of billions of dollars to prepare for the 2004 Olympics, among many other infrastructure projects. It also promised retired Greek citizens some of the cushiest pensions in the EU. In 2002, Greece was among the first EU members to adopt the euro. Entrance into the eurozone was contingent on Greece’s accomplishing certain reforms and demonstrating a threshold level of economic prudence. Among the requirements was to maintain a budget deficit of less than 3% and a total government debt under 60% of GDP. Greece never even came close to meeting these targets. To make it look as if it were, Greek politicians engaged in such sleights of hand as not counting military spending as a government expenditure. But if it wanted to join the euro, Greece needed to do more. And Greek politicians weren’t about to ask voters permission to dismantle the cradle-to-grave welfare state financed by borrowed money. To solve the problem, the government hired Goldman Sachs to help tidy up its balance sheet. Goldman created a series of currency swap arrangements using fictional exchange rates. The swaps took billions of dollars of debt off Greece’s balance sheet and allowed the country to issue far more debt than what was actually showing up in its account ledgers. Goldman used similar financial engineering to help prop up ill-fated energy trader Enron Corp., and we all know how well that experiment turned out. In other words, Greece never, ever should have been allowed to join the eurozone. But now that it’s part of it, there seems to be no end to the willingness of EU (more…)
Mar 142013
 
Euro hits 15-month high against dollar after solid earnings, home sales spur taste for risk On Wednesday April 20, 2011, 4:27 pm EDT NEW YORK (AP) — The dollar fell against most major currencies Wednesday, hitting a 15-month low against the euro, after solid earnings from major U.S. companies and a healthier reading on the housing market fueled investors’ appetite for currencies linked to higher benchmark interest rates. Higher interest rates tend to support investor demand for a currency, since it can generate a bigger return on investments denominated in that currency. The Federal Reserve has kept its key rate near zero since December 2008, while most of the world’s other central banks are raising interest rates. The euro jumped to $1.4514 in afternoon trading Wednesday from $1.4340 late Tuesday. Earlier, the euro hit $1.4547, its highest point since January 2010. The dollar had advanced against the euro earlier in the week as speculation mounted that Greece would need to restructure its debt, but that fear wasn’t weighing on the euro Wednesday as investors turned to assets of countries where interest rates are higher. Greece’s finance minister also said that the country’s debt was “absolutely sustainable.” Investors’ distaste Wednesday for the low-yielding dollar came after good news from major corporations and the troubled housing sector. The Commerce Department said that home construction rose 7.2 percent in March from February. Building permits, an indicator of future construction, rose 11.2 percent after hitting a five-decade low in February. Strong earnings from technology companies in the U.S., including those from Intel Corp. and Yahoo Inc., pushed U.S. stocks higher, with the Dow Jones Industrial Average rising 1.5 percent. Oil prices settled above $111 per barrel on the New York Mercantile Exchange, while gold settled at $1,498.90 an ounce, its seventh consecutive day of gains. The dollar, which investors consider a safe-haven currency, tends to give ground to the euro and other currencies perceived as riskier when prices for stocks and commodities rise. In other foreign exchange trading, the British pound rose to $1.6407 from $1.6317. The dollar was unchanged at 82.37 Japanese yen. The dollar also fell to 0.8890 Swiss franc from 0.8993, earlier touching a record low of 0.8876 Swiss franc, and dropped to 95.46 Canadian cents from 95.69 Canadian cents. The Australian dollar shot up to as much as $1.0692, its highest point against the dollar since it began trading freely (more…)