Tag: finance

Submitted by Simon Black of Sovereign Man blog,

Ten dark suited men entered the premises of FBME bank in Cyprus on Friday afternoon and took it hostage.

It must have looked like a scene from the Matrix. And given the surrealism of how this conflict is escalating, maybe it was.

The men were from the Central Bank of Cyprus (CBC). And they commandeered FBME because an obscure agency within the US government recently issued a report accusing the bank of laundering money.

It just so happens that FBME… and Cyprus in general… is where a lot of wealthy Russians hold their vast fortunes.

Bear in mind, there has been no proof that any crime was committed. There was no court hearing. No charges were read. It wasn’t even the government of Cyprus who accused them of anything.

There was just a generic report penned by some bureaucrat 10,000 miles away.

Funny thing—when HSBC got caught red-handed laundering funds for a Mexican drug cartel last year, the US government gave them a slap on the wrist. HSBC got off with a fine.

Yet when the US government merely hints that FBME could be laundering money, the bank gets taken over at gunpoint.

Welcome to warfare in the 21st century. It’s not about battleships and ground troops anymore.

This time the adversaries are battling each other using what ultimately affects everyone: money.

And on this battlefield the US doesn’t really have many options.

• US banks still form the nucleus of the global financial system, but this is quickly being replaced.

• Just last week the BRICS nations met in Fortaleza, Brazil to launch the origins of a brand new, non-US financial system.

• The US is still the largest economy in the world, but will likely lose this status to China by the end of the year.

• The US dollar is still the most widely used currency in global trade, but even America’s closest allies (Canada, Western Europe) recognize that the time has come to move beyond the dollar.

So while the US is still running around and barking at others, it is quickly losing its capacity to bite.

Their only tactic is to haphazardly attack Russian interests wherever they can.

They’re sanctioning Russian companies. They’re trying to torpedo international support for Russia. And now they’ve resorted to plundering Russian assets held in other sovereign nations.

Imagine you’re Qatar. Or China. Or Kuwait. Or Singapore. Or anyone else who holds substantial amounts of US debt.

All of these countries understand the lesson loud and clear: when the US doesn’t like you, they will do everything they can to make your life difficult.

Does this inspire confidence? If you’re holding hundreds of billions of dollars of US Treasuries, does this really improve your level of trust in the US?

Probably not.

By terrorizing Russian interests, the Obama administration is begging the rest of the world to reconsider their misplaced trust in the United States.

All these foreign countries really have to do if they want to retaliate is start dumping their US Treasuries. Or simply stop rolling over when the notes mature.

That will cause catastrophic consequences in the United States. Interest rates will soar, inflation will kick in, and the government will be even closer to default than it already is.

Inexplicably, Mr. Obama is practically begging the world to do this. It’s tremendously arrogant.

It’s like the economic warfare equivalent of Napoleon pompously leading his overstretched, exhausted army into Russia.

And neither Napoleon nor Obama gave the slightest consideration to the big picture consequences.

At $17.6 trillion in debt, the US is trying to wage economic war without any ammunition. It’s not something that is going to work out well for them.

via Zero Hedge http://ift.tt/1x839LU Tyler Durden

Submitted by Simon Black of Sovereign Man blog,

Ten dark suited men entered the premises of FBME bank in Cyprus on Friday afternoon and took it hostage.

It must have looked like a scene from the Matrix. And given the surrealism of how this conflict is escalating, maybe it was.

The men were from the Central Bank of Cyprus (CBC). And they commandeered FBME because an obscure agency within the US government recently issued a report accusing the bank of laundering money.

It just so happens that FBME… and Cyprus in general… is where a lot of wealthy Russians hold their vast fortunes.

Bear in mind, there has been no proof that any crime was committed. There was no court hearing. No charges were read. It wasn’t even the government of Cyprus who accused them of anything.

There was just a generic report penned by some bureaucrat 10,000 miles away.

Funny thing—when HSBC got caught red-handed laundering funds for a Mexican drug cartel last year, the US government gave them a slap on the wrist. HSBC got off with a fine.

Yet when the US government merely hints that FBME could be laundering money, the bank gets taken over at gunpoint.

Welcome to warfare in the 21st century. It’s not about battleships and ground troops anymore.

This time the adversaries are battling each other using what ultimately affects everyone: money.

And on this battlefield the US doesn’t really have many options.

• US banks still form the nucleus of the global financial system, but this is quickly being replaced.

• Just last week the BRICS nations met in Fortaleza, Brazil to launch the origins of a brand new, non-US financial system.

• The US is still the largest economy in the world, but will likely lose this status to China by the end of the year.

• The US dollar is still the most widely used currency in global trade, but even America’s closest allies (Canada, Western Europe) recognize that the time has come to move beyond the dollar.

So while the US is still running around and barking at others, it is quickly losing its capacity to bite.

Their only tactic is to haphazardly attack Russian interests wherever they can.

They’re sanctioning Russian companies. They’re trying to torpedo international support for Russia. And now they’ve resorted to plundering Russian assets held in other sovereign nations.

Imagine you’re Qatar. Or China. Or Kuwait. Or Singapore. Or anyone else who holds substantial amounts of US debt.

All of these countries understand the lesson loud and clear: when the US doesn’t like you, they will do everything they can to make your life difficult.

Does this inspire confidence? If you’re holding hundreds of billions of dollars of US Treasuries, does this really improve your level of trust in the US?

Probably not.

By terrorizing Russian interests, the Obama administration is begging the rest of the world to reconsider their misplaced trust in the United States.

All these foreign countries really have to do if they want to retaliate is start dumping their US Treasuries. Or simply stop rolling over when the notes mature.

That will cause catastrophic consequences in the United States. Interest rates will soar, inflation will kick in, and the government will be even closer to default than it already is.

Inexplicably, Mr. Obama is practically begging the world to do this. It’s tremendously arrogant.

It’s like the economic warfare equivalent of Napoleon pompously leading his overstretched, exhausted army into Russia.

And neither Napoleon nor Obama gave the slightest consideration to the big picture consequences.

At $17.6 trillion in debt, the US is trying to wage economic war without any ammunition. It’s not something that is going to work out well for them.

via Zero Hedge http://ift.tt/1x839LU Tyler Durden

While the ECB has said it takes data security “extremely seriously” and that numerous safeguards are in place to keep sensitive data from falling into the wrong hands, the WSJ reports that The European Central Bank said Thursday that 20,000 email addresses and other contact information of people who signed up for ECB events were stolen after one of its databases was hacked. Sadly, the hack was only discovered after an anonymous emailer asked for money for the stolen information.

 

As The Wall Street Journal reports,

“There had been a breach of the security protecting a database serving its public website,” the central bank said in a statement.

 

…

 

“No internal systems or market sensitive data were compromised,” the ECB said. “The database serves parts of the ECB website that gather registrations for events such as ECB conferences and visits. It is physically separate from any internal ECB systems.”

 

The ECB said it takes data security “extremely seriously” and that numerous safeguards are in place to keep sensitive data from falling into the wrong hands. “Market sensitive information is protected with several layers of logical and physical security controls that are actively monitored and regularly tested,” an ECB spokesman said in an email.

 

According to the ECB, the breach was revealed after an anonymous emailer asked for money in return for the stolen information. Most of the data was encrypted, but “parts of the database included email addresses, some street addresses and phone numbers that weren’t encrypted,” it said.

*  *  *

One wonders if the hackers were looking for the mythical OMT documentation…

via Zero Hedge http://ift.tt/1AcwpFN Tyler Durden

Yesterday we wrote about the Cyprus bank “bail-in” noting that while ordinary citizens were screwed, connected insiders had ample time to get their money out of the banks before they were frozen.

 

Today, we note the following:

 

Russian oligarchs who are close to Vladimir Putin have a week to get their cash out of Britain before sanctions are imposed, it has emerged.

 

European Union officials started on Tuesday to prepare the list of businessmen and Moscow officials who will be targeted by the sanctions.

 

Philip Hammond, the Foreign Secretary, has made clear the Britain’s desperation to take action at those close to Mr Putin’s regime, saying "the cronies of Mr Putin and his clique in the Kremlin are the people who have to bear the pressure".

 

However, British sources disclosed that it will not be until the end of the month that all EU countries will have prepared their lists of individuals to be hit with the sanctions.

 

The length of time before any action against these so-called Putin cronies will fuel concerns that they can withdraw their money before sanctions are imposed.

 

http://ift.tt/1AcutNi

 

We don’t ever recall hearing of an instance in which ordinary citizens or taxpayers were given a heads up to get their money out of harm’s way.  Usually when they bear the pressure it’s measures in Dollars… not the number of days’ warning they are given to save their capital.

 

Indeed, there are usually no warnings that trouble is coming because everyone at the top of the financial food chain are highly incentivized to keep quiet about problems.

 

Central Banks, Bank CEOs, politicians… all of these people are focused primarily on maintaining CONFIDENCE in the system, NOT on fixing the system’s problems. Indeed, they cannot even openly discuss the system’s problems because it would quickly reveal that they are a primary cause of them.

 

Remember back in 2007 and 2008? Time and again then-Fed Chairman Ben Bernanke stated that the sub-prime crisis was “contained” and that there would be little spillover into the economy.

 

Bernanke was not alone. Just about every CEO from every major bank spent much of 2008 claiming that all was well, that there was no real need to raise capital, and that their exposure to toxic mortgage backed securities was minimal.

 

Most of their banks had to be either merged with other entities or went bankrupt.

 

For that reason, you will never and I repeat NEVER see a Central banker, Bank CEO, or politician admit openly what is happening in the financial system.

 

Even middle managers and lower level employees won’t talk about it because A) they don’t know the truth concerning their institutions or B) they could be fired for warning others.

 

As former banker Jean-Claude Juncker put it, "When it becomes serious, you have to lie."

                                  

So why does these people lie?

 

Central bankers lie because they draw all of their power based on the fact that they are beyond oversight or regulation. The minute they lose this power, it becomes obvious that Central Banks and Central Bankers are one of the primary causes of the financial system’s problems.

 

Ordinary bankers lie because if they were honest, their banks would collapse, they would lose their salaries/ bonuses, and they would very likely face legal actions.

 

This is why no one in a position of financial power will ever publicly state, “such and such bank is in trouble… it would be wise to move your money.”

 

Instead, what you’ll be told is, “we need to confiscate some of your savings to prop this bank up… if you don’t agree to this, the bank will collapse and you’ll have nothing.”

 

This is of course, assuming you are even told this. As the folks in Cyprus found out, often times they’re not even told what’s going to happen, they simply wake up to find themselves locked out of their account.

 

This concludes this article. If you’re looking for the means of protecting your portfolio from the coming collapse, you can pick up a FREE investment report titled Protect Your Portfolio at http://ift.tt/170oFLH.

 

This report outlines a number of strategies you can implement to prepare yourself and your loved ones from the coming market carnage.

 

Best Regards

 

Phoenix Capital Research

 

 

 

 

via Zero Hedge http://ift.tt/1nYcyjN Phoenix Capital Research

The farce of facts continues to grow as Ukraine’s national security council head says US is wrong (in finding no link to Russia) and claims to have proof MH17 was shot down by Russians…

• *EXPERT PRELIM CONCLUSION IS MH17 SHOT BY RUSSIANS: PARUBIY
• *EXPERT PRELIM VIEW IS RUSSIAN MILITARY, WEAPON DOWNED MH17
• *UKRAINIAN NATL SECURITY COUNCIL HEAD PARUBIY POSTS ON TWITTER
• *PARUBIY COMMENTS ON PRELIM CONCLUSIONS FROM `INTL EXPERTS’

and then the US State Department unleashes another statement of alleged ‘proof’ that Russia is sending rockets to separatists and firing on Ukraine’s military from within Russia. Of course, while no ‘evidence’ has been offered, we are sure this is all backed by YouTube clips and Tweets that ‘prove’ it is fact.

• *RUSSIA SENDING MULTIPLE ROCKET LAUNCHERS TO SEPARATISTS: HARF
• *ARTILLERY FIRING FROM RUSSIA AT UKRAINE MILITARY FORCES: HARF
  

Here’s the video proof that Russia is firing into Ukraine (allegedly) – click image for link

 

And then Russia hit back, blasting Washington’s claims that pro-Russian rebels fired a missile that hit the plane on July 17 “mostly cited social networks” and did not correspond to reality.

Russia suggested on Thursday that the United States was trying to fabricate evidence that separatists in eastern Ukraine shot down Malaysia Airlines Flight MH17.

 

Anatoly Antonov, deputy defence minister, said Washington’s claims that pro-Russian rebels fired a missile that hit the plane on July 17 “mostly cited social networks” and did not correspond to reality.

 

Alexander Yakovenko, Russia’s ambassador to Britain, also poured scorn on the widespread belief that Moscow is supplying the rebels, saying: “Russia doesn’t supply weapons to local de facto (separatist) authorities in eastern Ukraine” and that “no evidence whatsoever has been presented that the Russian government has been doing this”.

 

“So where is this evidence?” he asked on the Rossiya-24 channel. “Why is it not presented to the public? Is it, if I may say so, still being finished off?”

*  *  *

The US using fabricated social media as a pretext to start a war? Where have we seen this before? Oh yes, last summer, when the Obama administration brought the world to the edge of all out war over the Syrian “chemical attack”, an attack which Seymor Hersh subsequently showed was nothing but a false flag provocation.

via Zero Hedge http://ift.tt/1x7L3K5 Tyler Durden

The farce of facts continues to grow as Ukraine’s national security council head says US is wrong (in finding no link to Russia) and claims to have proof MH17 was shot down by Russians…

• *EXPERT PRELIM CONCLUSION IS MH17 SHOT BY RUSSIANS: PARUBIY
• *EXPERT PRELIM VIEW IS RUSSIAN MILITARY, WEAPON DOWNED MH17
• *UKRAINIAN NATL SECURITY COUNCIL HEAD PARUBIY POSTS ON TWITTER
• *PARUBIY COMMENTS ON PRELIM CONCLUSIONS FROM `INTL EXPERTS’

and then the US State Department unleashes another statement of alleged ‘proof’ that Russia is sending rockets to separatists and firing on Ukraine’s military from within Russia. Of course, while no ‘evidence’ has been offered, we are sure this is all backed by YouTube clips and Tweets that ‘prove’ it is fact.

• *RUSSIA SENDING MULTIPLE ROCKET LAUNCHERS TO SEPARATISTS: HARF
• *ARTILLERY FIRING FROM RUSSIA AT UKRAINE MILITARY FORCES: HARF
  

Here’s the video proof that Russia is firing into Ukraine (allegedly) – click image for link

 

And then Russia hit back, blasting Washington’s claims that pro-Russian rebels fired a missile that hit the plane on July 17 “mostly cited social networks” and did not correspond to reality.

Russia suggested on Thursday that the United States was trying to fabricate evidence that separatists in eastern Ukraine shot down Malaysia Airlines Flight MH17.

 

Anatoly Antonov, deputy defence minister, said Washington’s claims that pro-Russian rebels fired a missile that hit the plane on July 17 “mostly cited social networks” and did not correspond to reality.

 

Alexander Yakovenko, Russia’s ambassador to Britain, also poured scorn on the widespread belief that Moscow is supplying the rebels, saying: “Russia doesn’t supply weapons to local de facto (separatist) authorities in eastern Ukraine” and that “no evidence whatsoever has been presented that the Russian government has been doing this”.

 

“So where is this evidence?” he asked on the Rossiya-24 channel. “Why is it not presented to the public? Is it, if I may say so, still being finished off?”

*  *  *

The US using fabricated social media as a pretext to start a war? Where have we seen this before? Oh yes, last summer, when the Obama administration brought the world to the edge of all out war over the Syrian “chemical attack”, an attack which Seymor Hersh subsequently showed was nothing but a false flag provocation.

via Zero Hedge http://ift.tt/1x7L3K5 Tyler Durden

Somehow this makes perfect sense: Zillow’s stock is up over 22% on news that it will acquire rival real estate company Trulia for $2 billion. Trulia is up 32%, which is about half in absolute terms of the $1 billion Zillow’s market cap has grown by in the past few moments to $6 billion. Imagine if it had paid even more for Trulia? And the piece de resistance: Neither company is currently profitable on an annual basis – the combined net income of the two companies is… zero. Two wrongs do not make a right, or rather didn’t. And then the new normal came around… 

Wait, we know: Synergies (or at least infinite NOLs).

 

 

Upon announcing a $2bn acquisition of a money-losing competitor, Zillow “investors” added $1 Billion in market cap to the company… yeah yeah synergies

 

*  *  *

Nope, no bubble here at all…

via Zero Hedge http://ift.tt/1tGK7Mk Tyler Durden

If there was any doubt whether following the recent, and quite surprising, detente between the US and Iran, which from a state that was shunned by the US for decades has transformed into a country that has been actively courted by the US in recent months, that Iran would change its tune toward that other bossom US ally in the middle east, Israel, it can be put to reset following the latest pronouncement by Iran’s supreme leader Ayatollah Ali Khamenei, who on Wednesday called for a referendum canvassing the Arabs and Jews that live in Israel in order to end the “Zionist state.”

Khamenei and his predecessor the Ayatollah Rouhollah Khomeini have called repeatedly over the years for an end to the Jewish state, including through a referendum in the region, where Palestinians are in the majority.

 

In his first official comments on Israel since the start of its offensive on the Gaza Strip on July 8, Khamenei reiterated the call.

Khamenei won’t be making many, or any for that matter, friends in the AIPAC with the following harshly worded statement.

“There are logical and practical means to this end, which is for people who live and belong there to pick the government of their choice through a referendum. That would be the end of a usurping fake regime,” Khamenei, who has the last word in all matters in Shi’te Muslim Iran, said in a speech to university students in Tehran.

 

Until then, Khamenei said, “while waiting for an end to this cold-blooded murderous regime, mighty armed resistance is the only way to deal with it.“

 

Khamenei made clear for the first time that he was talking about the dismantling of the state of Israel, not the death of Jews.

 

“Israel’s annihilation is the only real cure, but that doesn’t mean destroying Jews in this region,” he said in his speech, which was posted on his website.

As noted above, this comes at a time when Iran’s new president Hassan Rouhani is trying to improve ties with Western countries, including the United States, in a public relations war with Israel. In addition to the Ayatollah’s statement, Iran will mark “International Qods Day,” an annual event falling on the last Friday of Ramadan, with nationwide organised demonstrations in solidarity with Palestinians and against Israel.

* * *

Then again, one wonders: while clearly this dramatic theatrical performance is for popular consumption, one wonders what is really happening behind the scenes?

For the answer we go back to our post from February in which we explained that “US And Israel Quietly Provide Military Support And Parts To Iran, Which In Turn Is Arming Syria.”

And now you know.

via Zero Hedge http://ift.tt/1ujEYOz Tyler Durden

If there was any doubt whether following the recent, and quite surprising, detente between the US and Iran, which from a state that was shunned by the US for decades has transformed into a country that has been actively courted by the US in recent months, that Iran would change its tune toward that other bossom US ally in the middle east, Israel, it can be put to reset following the latest pronouncement by Iran’s supreme leader Ayatollah Ali Khamenei, who on Wednesday called for a referendum canvassing the Arabs and Jews that live in Israel in order to end the “Zionist state.”

Khamenei and his predecessor the Ayatollah Rouhollah Khomeini have called repeatedly over the years for an end to the Jewish state, including through a referendum in the region, where Palestinians are in the majority.

 

In his first official comments on Israel since the start of its offensive on the Gaza Strip on July 8, Khamenei reiterated the call.

Khamenei won’t be making many, or any for that matter, friends in the AIPAC with the following harshly worded statement.

“There are logical and practical means to this end, which is for people who live and belong there to pick the government of their choice through a referendum. That would be the end of a usurping fake regime,” Khamenei, who has the last word in all matters in Shi’te Muslim Iran, said in a speech to university students in Tehran.

 

Until then, Khamenei said, “while waiting for an end to this cold-blooded murderous regime, mighty armed resistance is the only way to deal with it.“

 

Khamenei made clear for the first time that he was talking about the dismantling of the state of Israel, not the death of Jews.

 

“Israel’s annihilation is the only real cure, but that doesn’t mean destroying Jews in this region,” he said in his speech, which was posted on his website.

As noted above, this comes at a time when Iran’s new president Hassan Rouhani is trying to improve ties with Western countries, including the United States, in a public relations war with Israel. In addition to the Ayatollah’s statement, Iran will mark “International Qods Day,” an annual event falling on the last Friday of Ramadan, with nationwide organised demonstrations in solidarity with Palestinians and against Israel.

* * *

Then again, one wonders: while clearly this dramatic theatrical performance is for popular consumption, one wonders what is really happening behind the scenes?

For the answer we go back to our post from February in which we explained that “US And Israel Quietly Provide Military Support And Parts To Iran, Which In Turn Is Arming Syria.”

And now you know.

via Zero Hedge http://ift.tt/1ujEYOz Tyler Durden