The Israel Deception

Is the return of Israel in the 20th century truly a work of God, or is it a result of a cosmic chess move to deceive the elect by the adversary?

Showing posts with label insolvent. Show all posts
Showing posts with label insolvent. Show all posts

Monday, January 9, 2017

To supplement the insolvent trust, Social Security increases the amount of income taxed beginning in 2017

When Social Security was first introduced in 1935, it was sold to the American public as form of retirement insurance that was based similarly to that of private insurance policies.  Ie... you put in a certain amount each pay period and at age 62 or higher, you can begin to collect the proceeds of your 'policy'.

But the reality is that Social Security is little more than a ponzi scheme, and a way for the government to siphon out wealth from its citizens.  In fact, a Supreme Court ruling in the 1960's specifically labeled the program a benefit rather than insurance, and the government has no legal mandate to pay these benefits to individuals who contributed to the program.

Image result for social security is a ponzi scheme
Many people believe that Social Security is an “earned right.” That is, they think that because they have paid Social Security taxes, they are entitled to receive Social Security benefits. The government encourages that belief by referring to Social Security taxes as “contributions,” as in the Federal Insurance Contribution Act. However, in the 1960 case of Fleming v. Nestor, the U.S. Supreme Court ruled that workers have no legally binding contractual rights to their Social Security benefits, and that those benefits can be cut or even eliminated at any time. - Cato Institute
Over time the government has used Social Security as a political carrot, where in the attempt to get re-elected, politicians in 1956 expanded the program to include the disabled and began using monies set aside in the Trust Fund for retirees to pay for it.

Today Social Security is completely bankrupt and insolvent, and if anyone needs proof of this all they have to do is go back to the words of the Secretary of the Treasury Jack Lew who inferred that if Congress didn't pass a new budget and halt a potential government shutdown, then the ability to pay Social Security recipients would be at risk (despite the fact they were still collecting FICA taxes).

Now in 2017, and in a desperate attempt to keep their ponzi scheme going a few more years, Congress is increasing the income level that is taxed by FICA from $118,500 to $127,200.  However, this increase will do little to help the program since the total amount of revenues received from this increase will be minimal.  But what it does is provide the public the illusion that the government is going after the 'rich' to make them pay more, or at least their 'fair share'.

FICA

Prior to the advent of Social Security, people were expected to provide for their own retirements and did so through frugality, sound investment, and reliance upon a currency that would not be devalued much over their lifetimes.  But since none of these things are a part of the American culture today, hundreds of millions of people who barely have $1000 in savings to their name will find it impossible to survive when Social Security finally fails, and all that money they put into the scheme will be for not.

Tuesday, November 15, 2016

Got gold? Italy's Monte dei Paschi bank begins bail-ins for bond holders

Bail-ins can no longer be said to be limited to just Cyprus now as on Nov. 15, a major Eurozone country just facilitated the confiscation and subsequent haircut of bond holders owning the bank's subordinated debt.

Italy's albatross, and the world's oldest operating bank which goes back to the days before the discovery of the New World, was finally forced to capitulate to stave off insolvency by cutting staff and conducting a bail-in of certain bond-holders of the bank's debt.

Ever since the bank failed the ECB's latest stress test this summer, when it was advised that it needs to raise billions in capital, only to see the process fizzle with virtually no willing sources of new cash emerging due to the opaque labyrinth of the bank's bilions on NPLs, Italy's third largest, most insolvent, bank has been hoping to avoid a debt conversion, out of fears it may spook retail bondholders across the capital structure, and in other Italian banks, who may perceive the move even if touted as "voluntary" as a creditor bail-in. Which it technically is. 
Earlier today, the bank's board bet on Monday to set the terms for a bond-to-equity conversion that is part of the lender's capital boosting plans. As part of its sweeping restructuring, Monte Paschi was planning to lay off a tenth of its staff, shut branches and sell assets to win investor backing for a 5 billion euros ($5.4 billion) cash call, its third recapitalisation in as many years. The key part, however, due to the lack of new investor interest was the previously leaked voluntary conversion of its subordinated debt, whose successful execution would limit the amount of new funds needed.
So while we wait to learn if Monte Paschi will be successful in raising the critical outside cash, here is what Monte Paschi's bail-in, pardon debt conversion will look like, according to sources including Ansa, Bloomberg and Reuters: 
  • Monte Paschi approves voluntary debt-to-equity swap offer
  • Offer to target subordinated bonds for total outstanding amount of 4.289 billion euros; will offer between 20-100 percent of nominal value in bond swap offer
  • Holders of ~€4.5 billion of subordinated bonds will be able to convert them to shares
  • Bank is also considering possibility of launching conversion into equity of 1 billion euros of Fresh 2008 bonds
  • Senior bonds not included in the voluntary conversion plan
  • The bank is also considering conversion plan for EU1b of hybrid bonds
  • The conversion price is seen at 85% of nominal value for riskier Tier 1 bonds, according to Ansa sources.
  • The Conversion price is seen at 100% of nominal value for less risky Tier 2 bonds
  • Monte Paschi will acquire €700m of MPS Capital Trust II securities, also Tier 1, at 20%
  • It will also acquire seven series of BMPS subordinated debt at 100%
Offer open to investors classified as “qualified investors” only for Upper Tier 2 securities - Zerohedge
Monte Dei Paschi is not the only European bank experiencing insolvency issues, but they could be opening the door for institutions like Deutsche Bank to have to follow suit since EU rules negate the possibility of a government funded taxpayer bailout.

When you take into account what occurred late last week in India, where their government abruptly eliminated higher denomination bills to attempt to force their citizens to keep their money solely in a bank, and couple this with the instability of banks all across Europe, the world is once again teetering on the potential of another credit crisis, only this time it will be your money that is used to bail them out unless you learned the lessons of 2008 and have your wealth stored in something much more tangible.

Got gold?

Monday, October 10, 2016

Following four bank bail-ins last year, most Italians are hiding their cash outside of banks and buying gold

With the global shock that the Cyprus bank bail-ins did to depositor psyches back in 2013, the media has gone out of its way to hide any news of bank insolvencies that might lead to runs on the banks.  And this includes four little reported bail-ins that took place in Italy just last year.

But with the growing threat of even more Italian banks becoming insolvent, and the Damocles Sword of Deutsche Bank threatening the entire European financial system, depositors in Italy are not waiting around for the next crisis to take place, and over the past year have been taking out their cash to hide in their 'mattresses' and buying physical gold as a hedge for what they believe is coming very soon.

People in Cyprus had to find this out the hard way in early 2013. People awoke on an otherwise normal Saturday morning to the shock that the money in their bank accounts had been taken by a bail-in to recapitalize the banks. 
Not surprisingly, many Italians aren’t just waiting around to get “Cyprused.” 
I recently spent weeks on the ground in Italy investigating the ongoing banking crisis. I spoke with a prominent lawyer who told me that most Italians are now distrustful of the banks. They’re keeping a substantial portion of their savings in cash under their mattresses. They’re also buying lots of gold. 
I’ve been to Italy numerous times over the years. But this time, I saw something new. 
There were signs everywhere advertising gold bullion, like the one below. 
I think it indicates a strong demand for gold and a strong distrust of the banks. It seems to me like a slow motion bank run is already happening. This is the last thing Italy’s banking system needs. It’s further bleeding the capital in the banking system. 
I only see the situation getting worse… 
Italians are rightly afraid of bail-ins. That fear is leading them to withdraw their savings as cash and also to buy gold. This further drains the banks’ capital, making it more likely they’ll need to do a bail-in to remain solvent, which fuels even more withdrawals. It’s like a self-fulfilling prophecy. - International Man

Monday, September 12, 2016

Why invest in gold? Because contrary to popular belief, the government can end the insolvent Social Security at any time

Prior to FDR's creation of Social Security in 1935, people relied upon their families to take care of them in their retirement years.  And in fact, there were no expectations of a 'benevolent government' using the General Welfare clause of the Constitution to do for them what was their responsibility since the beginning of time.

But with the advent of Social Security, the government opened the door to a whole myriad of programs to virtually take care of people from cradle to grave, and has used the power of taxation to force everyone to pay into it whether they wanted to, or even needed to at all.

It is now 80 years later following this momentous act passed during the height of the Great Depression, and because of a combination of Demographics and Congressional greed, the program is insolvent and by some analyst's measures, could be completely bankrupt as early as 2017.  And the real question that has to be asked is, is the government responsible for providing these retirement benefits no matter what, or can they simply dissolve the program at will if they decide they can no longer afford to pay for it?

The answer unfortunately may scare some people, because the question itself was resolved back in the 1950's by the Supreme Court.

Most people see Social Security as a contract between themselves and the government. You pay money into the system, and the system pays it back at a later date—guaranteed by law. 
But nothing could be further from the truth… 
You have no choice when it comes to paying your Social Security tax. It comes out of your paycheck automatically. 
But did you know the government isn’t under the same rigid contract? 
In fact, by ruling of the United States Supreme Court, the federal government is under no obligation to pay you a Social Security check. 
This is the clear precedent set in the case of Flemming v. Nestor
Ephram Nestor was an immigrant from Bulgaria. He moved here in 1918 and paid Social Security taxes from the very beginning of the program in 1936. 
In 1955, when he retired, Nestor began receiving Social Security checks for $55.60 per month. 
But, just one year later, Nestor was deported. Turns out, he’d been an active member of the Communist Party in the 1930s, giving the U.S. government grounds to kick him out. 
When he was deported, his Social Security checks stopped. Nestor sued the U.S. government, arguing that, since he had paid money into the program, he had a right to those benefits. 
The Supreme Court ruled against Nestor, saying the government had the right to terminate Social Security at any time. 
The people who sign the Social Security checks sum it up this way: 
[Nestor] appealed the termination, arguing, among other claims, that promised Social Security benefits were a contract. In its ruling, the Court rejected this argument and established the principle that entitlement to Social Security benefits is not a contractual right. 
Takeaway: You have no contractual right to Social Security. 
That historical precedent means it has the power to cut Social Security anytime it wants. - Casey Research
So while politicians deceive everyone into thinking Social Security is guaranteed to them for the tens of thousands of dollars they have paid in taxes to be eligible for a retirement payout, the truth of the matter is Congress's only obligation is their right to tax you as they see fit, and even to keep on taxing you whether they pay out social security benefits or not.

And it is why nothing has ever changed in life... and it is you and I who are responsible for our own retirement savings programs.

Got gold?

Wednesday, August 3, 2016

As European banks continue to collapse following the stress test, gold buying accelerates on the continent for investors seeking safe havens

Another day, another severe decline in European banks stocks.  This has become the norm in Europe ever since the stress test results have shown that a large majority of financial institutions on the continent are either under-capitalized, or flat out insolvent.

And as investors rush to find any type of safe haven asset in the midst of new central bank stimulus threats and negative interest rates, the one place they are turning to en masse is the one asset that protect one's wealth above all others.

Gold.


Gold prices have bounced back from recent dips and are likely to continue to climb as investors seeking haven from market turmoil in Europe pour money into the precious metal. 
James Butterfill, executive director and head of research and investment strategy at ETF Securities, said gold has proven to be resilient since the U.K. voted to leave the European Union in June. 
"Since Brexit, we've seen $1.5 billion of inflows into our gold product. Clearly, gold is popular," he said on CNBC's Squawk Box. - CNBC

Wednesday, July 27, 2016

Got gold? Congress submits bill to force employers to create a new retirement account for workers since social security is now insolvent

Last week, we wrote here about the fact that the annual Social Security Trustees report showed that the retirement fund had a short fall of $6 trillion dollars, and an overall deficit of $32 trillion.  In essence, this means that Social Security is insolvent and will not be able to pay out benefits to anyone within a few year's time.

So with the fact that Congress had kicked the Social Security can down the road for two decades without doing a thing to fix known deficiencies with the program, and has waited until now when the fund has finally bankrupted itself, what can America's legislative body since we have reached the point where The Stuff has Hit the Fan?

How about create a completely NEW retirement fund from scratch, and make employers pay additional taxes on top of FICA to pay for it.

It was only a few weeks ago that I told you about the government’s annual report on Social Security. 
It was a veritable death sentence for the program. 
The Board of Trustees for Social Security (which includes the US Treasury Secretary) wrote that major parts of the program have already run out of money, and the rest of Social Security will run out of money in the next decade. 
Well, the government has figured out a solution. And it’s genius. 
Two weeks ago a new bill was introduced on the floor of Congress that, just like all the other really dangerous legislation, i.e. USA PATRIOT Act, this bill has a catchy acronym. 
It’s called the SAVE UP Accounts Act, which stands for. . . 
. . . “Secure, Accessible, Valuable, Efficient Universal Pension Accounts Act”. 
In short, SAVE UP mandates certain employers and businesses in the United States, including many small businesses, to start contributing a fixed amount of money per employee into a brand new national retirement fund. 
Based on the contribution requirements and the average wage in the United States (about $50,000 annually), the bill is slapping a 2% wage tax on employers. 
Funny thing, employers are already paying 6.2% to Social Security. 
So an additional 2% tax effectively constitutes a 32% proportional increase. - Sovereign Man
Since employers have already cut many of their worker's hours thanks to Obamacare, and even more over the past six months due to mandatory hikes in minimum wages, what do we think will be the reaction from businesses once this new tax is added to their overhead costs?

And even more, with the nation's largest pension fund (Calpers) admitting to be vastly underfunded, and the largest civilian pension fund (Central States) cutting benefits for all their retirees, isn't it past time that we all took responsibility for our own retirements, and make sure it isn't in paper assets that will be bailed in when the government itself becomes completely insolvent?

Tuesday, July 26, 2016

World's oldest bank shares halted as the company stands on the brink of collapse

It is indeed troubling when a bank that opened its doors 20 years before Christopher Columbus discovered America, and went on to survive two world wars, the turbulent times of Roman church inquisitions and religious reformations, the renaissance, colonialism, and of course, the conflicts that unified Italy itself, now stands of the brink of bankruptcy 544 years after its inception.

But that is what is happening now to Monte Paschi bank when on July 25, regulators halted trading of the bank's public stock due to an opening 8% drop, on the fears of share price collapse.

Shares of beleaguered Italian lender, Monte dei Paschi (BMDPF) , were suspended from trading early Monday morning after falling by almost 8% after the opening bell. The plunge comes just days ahead of results from the European Banking Authority's most recent stress tests, which are widely expected to reveal a shortfall in Monte dei Paschi's capital buffer. 
The shares fell by  7.6%, to trade as low as €0.28, before being suspended. The stock has fallen by almost 77% in the year to year to date as concerns have built over whether or not the bank can survive in a world where bad loans and low interest rates are eating away at its capital base and European Union regulations make public assistance all but impossible. - The Street
The insolvency of Monte Paschi is a microcosm for all Italian banks, which threaten the global financial system far more than Greece did just two years ago.  This is because Italy's banking system is about eight times greater than its Southern European neighbor, and was catalyst enough in 2008 as part of the PIIGS to help bring about the European financial crisis.

Overall, banking is a lucrative business that can earn a modicum of steady growth by lending to individuals and businesses when interest rates are set at a normal level.  But sadly thanks to the majority of the world's central banks, the dropping of rates to zero and below leaves financial institutions like Monte Paschi to have to speculate on risky assets, and the inevitable result is like we saw with Bear Stearns and Lehman Brothers... complete insolvency when the ponzi schemes eventually collapse.

Tuesday, July 19, 2016

Got gold? Social security now $32 trillion in the red, with a $6 trillion deficit

Here at the Daily Economist we have written numerous times on the pension shortfalls proliferating municipalities, unions, and state run systems.  But perhaps it is time we look at the most important retirement plan of all, which of course is that of social security.

In the newest 2016 report out by the Social Security Trustees, the fund that already services tens of millions of Americans with a monthly income, and is promised to do the same for hundreds of millions now working in the labor force, is $32 trillion in the red, and in the shorter term has a $6 trillion deficit.

It’s been several weeks since the Social Security Trustees released their 2016 Trustees Report. I’ve been waiting to see if either Donald Trump or Hillary Clinton or anyone in the press core would say a peep about the astounding $6 trillion deficit implied by the Report’s table VI.F1. 
Not a peep. 
As you may know, I’m running for President as a write-in candidate along with my VP choice, UCLA economist, Edward Leamer. We’ll be on the ballot along with the two party candidates if voters simply write Laurence Kotlikoff for President and Edward Leamer for Vice President on the ballot in the space provided. It’s that simple. 
Ed and I are deeply concerned about our country’s fiscal condition, which is grave to say the least. If we don’t address it, we can kiss our children’s economic futures goodbye. 
I’ll get back to the overall picture, but let me tell the press what they will find if they care to do their job and look at Table VI.F1. They will learn that Social Security, according to the system’s own actuaries, is now $32 trillion in the red! The $32 trillion is the present value difference between all the system’s projected future benefit payments less the sum of a) all its projected future taxes and b) its current almost $3 trillion trust fund. 
We economists call this measure Social Security’s infinite horizon fiscal gap. Last year, the Trustees reported a fiscal gap of $26 trillion. So the system’s fiscal gap grew by $6 trillion over the past year, i.e., Social Security ran a $6 trillion deficit! - Forbes
And sadly, this trend of increasing deficits will only get worse as the Baby Boomers move completely into their receiving years for Social Security, and a large portion of Millennials who would normally be starting their careers are either out of work, or in jobs earning barely over minimum wage. And this dilemma of course is not even close enough to provide the revenues to pay for those who now collecting social security, much less sustain it for their own retirement years.

The 2008 financial crisis was a wake-up call, and had given Americans nearly a decade to find new alternative ways to save for their own retirements, and to not have to rely upon insolvent state and federal systems that are themselves bankrupt.  And one of the only ways that this can be achieved, especially if the government soon decides to massively increase taxes to cover the growing deficits, is to get some money into physical gold, which will both protect your wealth, and allow you little or no counter-party risk from insolvent Wall Street or government retirement schemes.

Tuesday, July 12, 2016

European banking system ready to implode unless the ECB comes up with $150 billion or more in bailouts

Over the weekend, Europe’s most toxic and insolvent bank (Deutsche Bank) came out with an announcement that if the European Central Bank (ECB) didn’t come up with $150 billion or more in new funding to bailout the continent’s banking system, then it could potentially face an ‘accident’ similar to 2008’s ‘Lehman moment’.
And it is not the largest German bank that is the sole institution in need of recapitalization by the ECB.  In Italy, nearly all the major banks are on the cusp of insolvency, and appear now in the process of a government sponsored bailout coupled with a small customer bail-in.  Added to this, British banks are running into major problems over their bursting housing bubble, and while the UK no longer has the security of going to the ECB for emergency lending, they may receive it anyway since other EU banks hold long derivative positions on the island nation’s securities and could implode if Britain goes the way of default.
BANKERS-COPS
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Friday, July 8, 2016

The window is closing for the chance to make your own decisions on your retirement accounts and to buy gold at affordable prices

Back during the 2008 Credit Crisis, one of the first things they did was to freeze money market accounts in the wake of bank failures and a liquidity collapse.  For most people, the money market arena is a playing field that only their brokers deal with, but it is important to retirees who have 401K's, IRA's, and mutual funds because this is where your money goes when you are temporarily out of stocks, bonds, or other paper assets.

Back on June 30, an interesting announcement was made to one sector of the retirement industry as Paychex, a third party company that provides HR, business, and financial services to thousands of companies, reported that they were no longer using money markets as a conduit for individuals and businesses to hold their cash in between payments made towards a worker's chosen retirement account, and similarly, when a worker/customer moves out of equities and into cash within their accounts.  And in this policy change, where is Paychex now going to move money to store on a temporary basis?

U.S. government bonds.
I received a document from Paychex today which is the administrator of one of my 401K accounts… and they informed me that they are going to move all cash in NON-government ‘Federated CASH Obligation’ money market accounts to ‘Federated Government Obligations‘… 
Since my 401K money is invested in three different precious metals funds this announcement does not affect me, however it will impact many other unsuspecting would-be retirees who falsely believe that their money is “safe” and “liquid” in a money market account. This is the slippery slope into government forcing account holders to invest in government debt (Treasuries), and it’s exactly what we’ve been warning about. As for me, I’m going to roll that particular account over and away from the control of Paychex. - Silver Doctors via SGT Report

The Federal government has been planning to try to confiscate Americans retirement accounts for some time now, and move them directly into U.S. Treasuries similar to what they did to the Social Security Trust Fund.  And this has already taken place in the pensions of Federal employees, which are secured by government debt (Treasuries), and in the Obama created program known as MyRA.

For over a decade, and in particular since the financial system nearly collapsed back in 2008, many in the alternative financial media have been trying to warn people of the coming death of their established retirement system, and the moves being made to cut promised benefits due to the insolvencies now being seen at the Federal and State levels.  And in 2016, where the U.S. Treasury is at its lowest yield in history, and much of the rest of the world languishes in negative interest rates, the window is closing for Americans to be able to make a choice... and that choice is whether to see your retirement accounts liquidated to fund U.S. government debt, or to take the proactive position and move into gold and silver before the price of each becomes unaffordable.

Saturday, April 2, 2016

U.S. gold refiners running out of metals and starting to show insolvency

An interesting piece of news showed up on Friday which was not part of some April Fools joke.  It involved one of America's largest private gold and silver mints, and their inability to both provide gold to a customer who made a purchase from them back in February, and even worse, their inability to refund the customer their money.

Yet perhaps of even greater import, this mint and refiner admitted to a mainstream news source that they in fact owe between 100 and 200 customers a refund in which they are currently unable to pay.


FEDERAL WAY, WASH. - The owner of a large gold and silver mint based in Federal Way admits he owes money to 100 to 200 customers all over the country. 
Ross Hansen, owner of Northwest Territorial Mint, says he has not delivered products or refunded money to those customers even when they demanded it. 
Northwest Territorial Mint is one of the largest private gold and silver mints in the country. 
One of those unhappy customers is Kelly Clifton, who runs a small ministry in Sultan. 
Clifton ordered $6,000 worth of gold bullion in February from a small inheritance. A few weeks later, while still waiting for the gold, she says she asked for a refund. The company gave her half, she says. 
“The rest of it, we were told, we may get or we may not get,” said Clifton.
Other customers have similar complaints. - Chanel5 News/Seattle via Silver Doctors
The bottom line is that years of manipulated gold and silver prices by London and the U.S. Comex are leaving more and more mints and miners unable to function, and many are either shutting down or becoming insolvent.  And this will result in only the strongest gold sellers surviving in the coming months and years, and an opportunity for companies like Karatbars to take a huge chunk of the remaining market share when more and more individuals turn towards gold as the ultimate safe haven to protect their wealth.

Thursday, March 31, 2016

Ratings agency downgrades Chicago as years of bad fiscal policies with pensions comes home to roost

One of the biggest problems with the majority of politicians coming from the lawyer class is that they have little idea about fiscal responsibility and economics, or any understanding of the consequences that come from promising the world to voters in order to get re-elected.  In fact, Washington is not only known for trying to buy votes from constituents with ever increasing benefit programs, but they are the also the poster child of robbing Peter to pay Paul when it comes to things like stealing from the Social Security Trust to pay for new programs.
Municipalities are not immune to this paradigm as well, with many liberalized cities having chosen the path of egregious fiscal policies which are now coming home to roost as their budgets run deficits that place them on the cusp of insolvency.  And perhaps the biggest culprit in this is the City of Chicago, who after years of making pension promises they couldn’t hope to keep are on the verge of being downgraded to junk status and out of options when it comes to paying out benefits to retirees.
state pensions
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Wednesday, March 23, 2016

Canada preparing for bail-ins as collapse of oil industry forces new legislation in their budget

On March 22, Canada's new ruling party submitted their budget for fiscal year 2016-17, and hidden within it was new legislation to approve of depositor bail-ins for banks that might become insolvent.  And with the Canadian oil industry in fill collapse due to lower oil prices, the leverage by the banks in the energy industry is pushing them closer and closer to default.



Introducing a Bank Recapitalization "Bail-in" Regime 
To protect Canadian taxpayers in the unlikely event of a large bank failure, the Government is proposing to implement a bail-in regime that would reinforce that bank shareholders and creditors are responsible for the bank’s risks—not taxpayers. This would allow authorities to convert eligible long-term debt of a failing systemically important bank into common shares to recapitalize the bank and allow it to remain open and operating. Such a measure is in line with international efforts to address the potential risks to the financial system and broader economy of institutions perceived as “too-big-to-fail”. 
The Government is proposing to introduce framework legislation for the regime along with accompanying enhancements to Canada’s bank resolution toolkit. Regulations and guidelines setting out further features of the regime will follow. This will provide stakeholders with an additional opportunity to comment on elements of the proposed regime. 
Bail-in Regime for Banks 
Canada’s financial system performed well during the 2008 global financial crisis. Since that time, Canada has been an active participant in the G20’s financial sector reform agenda aimed at addressing the factors that contributed to the crisis. This includes international efforts to address the potential risks to the financial system and broader economy of institutions perceived as “too-big-to-fail”. Implementation of a bail-in regime for Canada’s domestic systemically important banks would strengthen our bank resolution toolkit so that it remains consistent with best practices of peer jurisdictions and international standards endorsed by the G20. - Zerohedge

Monday, February 29, 2016

U.S. beyond insolvent as financial filings show $3.2 trillion in assets and $21.5 trillion in debt

Each year the United States government files a financial statement showing their assets and liabilities through the Department of the Treasury.  And while previous years have been similar to 2015, in that their liabilities outweigh assets by a large margin, never before has the deficit been as extraordinary as it was calculated on Feb. 27.
This because the United States (which is a corporation by the way), has assets valued at $3.2 trillion while showing short-term liabilities at over $21.5 trillion.  This is a difference of $18.3 trillion in the red, and in every single instance of financial definition would make the country (or corporation) insolvent and bankrupt.

Read more on this article here...

Saturday, October 24, 2015

Got Karatbars? Social Security again at serious risk from U.S. insolvency as Nov. 2 approaches

In the U.S. there are over 46 million Americans on food stamps alone, and over 100 million who rely upon government benefits to some degree.  And with the U.S. coffers approaching insolvency as soon as Nov. 2, tens of millions of Americans who need their social security checks as their primary source of income stand to lose everything if Congress doesn't vote to increase the national debt limit to just under $20 trillion.

The definition of insolvency is having less revenues or assets than you do debt and liabilities.  And with a national debt of at least $18.1 trillion dollars obligated to debt holders like China, Japan, Russia, and even the Federal Reserve itself, this massive liability is much greater than the total annual GDP for the United States, which came in at $17.48 trillion for the year ending 2014.


Yet why is the current debate over raising the national debt for an insolvent country important?  It is because the promises and mandates the U.S. has to its welfare and social security recipients are being held hostage by the Obama administration, and show that these ponzi schemes cannot function on the taxes withheld from everyone's paycheck each month, and instead require new money in the form of debt just to be able to make these monthly payments.
Appearing on "Fox News Sunday," Lew said that "I don't think there are serious people who think the consequences" of being forced by the debt ceiling to miss a payment on the government's obligations "would be minimal." 
Lew warned that missing any payment could cause economic disruptions, and mentioned one negative effect of a debt ceiling delay that up until now the administration has shied away from, namely the possibility that the government could fail to pay the bills of its most popular entitlement programs. 
"What happens if you don't pay millions of people on Social Security? What happens if you don't pay hospitals and health care providers across the country?" Lew asked. - Washington Examiner
So even with a lawful increase to the national debt, the Secretary of the Treasury has already validated by his own words that the money taken out of our income for Social Security is no longer able to pay recipients their monthly checks, and that there is no 'trust' or lockbox holding the proceeds of decades of SSN payments.


Millennials who are now paying into Social Security over the next 30-40 years of their working life will never see their own benefits when they retire, as nearly all mainstream and alternative economists are in agreement that the system will be completely insolvent within 2 to 10 years.  And in fact, because of the massive increase in recipients due to baby boomers retiring over the next 14 years, very soon there will be less than 2 workers paying taxes towards every SSN recipient.

So if logic and economics proves that this ponzi scheme is bankrupt, and is relegated to the government's needing to print trillions of dollars per year just to pay people's promised checks, what options do you have now to protect yourself from an insolvent government program that won't be there when you need it?

One option to look at is with a company called Karatbars.



Buying gold through Karatbars is one of the easiest things on the net.  In fact, the business model of Karatbars is to sell gold in affordable quantities, such as 1, 2.5, and 5 gram increments, and allow customers to get into the metal without having to shell out $1200+ for a single ounce coin.

And as added perks to signing up with Karatbars, as a customer or affiliate, Karatbars is working on a new e-wallet system that functions just like an offshore bank account, and is outside the authority of the banking system.  From there, you can take your fiat currency in any denomination... dollars, euros, yen, etc... and purchase physical gold which can either be delivered directly to you, or stored for free at one of Karatbar's vaults.

Additionally, any gold that you buy can easily be sold back to Karatbars, or any metals dealer, and if with Karatbars it is then exchanged for currency that is uploaded to you through a pre-loaded debit Mastercard which is connected directly to your e-wallet.  And as we know, MasterCard is recognized in nearly every country around the world, and usable in any currency that accepts it.

But perhaps the best feature with Karatbars is their affiliate program, where you can earn money off commissions from getting others to sign up and become a customer or affiliate.  Not only do you receive commissions from their purchasing of physical gold, but you also earn commissions from anyone who buys a commission package, with that money going directly into your debit MasterCard when you have enough units to cycle.

Imagine the ability to earn the money in which to buy your gold savings simply by purchasing a commission affiliate package one time, and then getting others to sign up and do the same thing.

How many businesses or entrepreneurs can build an infinite business with spending less than $400 of their own money?  And there is never a mandatory requirement to buy beyond what you desire, on your own schedule.  And there is nothing to lose, because you're using money (paper dollars) to buy gold (physical money) and in the end you don't lose a thing.


The global financial system, along with dozens of respected economists, are telling us that now is the time for the end of our current form of money, and the beginning of the transition into a new monetary system that is expected to be backed by gold.  And with banks, governments, and even Harvard professors mandating that central banks have no choice but to eliminate cash from usage by the people to stave off collapse, will you wait until it is too late to make a decision on how you will protect your wealth, and be able to function within the coming new monetary system?

To learn more about Karatbars, you can contact the individual who sent you this article, and click on their referral link to open a free account and begin buying, or building your own gold savings or business with the company of the future.

Monday, October 19, 2015

Got Karatbars? Now that the U.S. government is bankrupt, what are your options to protect your wealth?

After the 2008 Credit Crisis came and went, a new set of words entered into the financial dictionary that were created out of artificial interventions made by both the government, and Federal Reserve.  One new set of words in particular to come out of this crisis was Zombie Banks, and they represent financial institutions that were already bankrupt, but not allowed to completely die.

Yet if banks can propped up like the walking dead, can the same be done for an insolvent and bankrupt government?  Well, contrary to all the rhetoric that comes out of Washington and from talking heads at the Fed and on CNBC, the U.S. is one of these new Zombie governments, and although completely insolvent and bankrupt, is being propped up only because they still have dominion over the global reserve currency.
I’ve long-stated that the government of the United States is completely insolvent. And that is a 100% true statement. The government’s own numbers show that official liabilities, including debt held by the public and federal retirement benefits, total $20.7 trillion. Yet the government’s assets, including the value of the entire federal highway system, the national parks, cash balances, etc. totals just over $3 trillion.  
In total, their ‘net worth’ is NEGATIVE $17.7 TRILLION… a level that completely dwarfs the housing crisis. If you include the government’s own estimates of the Social Security shortfall, this number declines to NEGATIVE $60 TRILLION. And it gets worse every year. - Sovereign Man
Click on picture below for audio podcast with Simon Black



In addition to the tens of trillions of dollars in bailouts to the banks after 2008, the U.S. government itself doubled its national debt to the point where it is well over 103% of annual GDP.  And just this morning Treasury Secretary Jack Lew used propaganda against Congress, and even threatened them with 'Dire Warnings' if the Debt Ceiling wasn't raised before Nov. 3.  This alone tells you how desperate the U.S. government is, and where $3.8 trillion annual budgets can no longer even sustain the debt obligations America has to its people, and to the world.



No purely fiat currency system has lasted in the 350 years in which they have been tried, and in just this century alone several nations who had the same fiscal irresponsibility as the U.S. have seen their economies crash, their governments overcome by internal and external threats, and their currencies hyper-inflate into oblivion.  And like those in Germany during the Weimar Republic, who had the wherewithal to hold their savings in gold rather than paper fiat, they not only survived the era of collapse, but came out well ahead such as in the example of the bellhop in a Germany hotel who was given a gold coin as a tip from a wealthy visitor, and where just a few years later, that same bellhop bought that hotel for that same gold coin since gold is the one true form of money that over time withstands any monetary crisis.

It is never too late to protect yourself until it really does become too late.  And if the warnings of 2008 weren't enough for you to realize that the current system of fiat currencies and central banks cannot last, and that the government's own balance sheet numbers validate it is bankrupt and insolvent, then there is nothing that can possibly push you to protect your wealth in the same form of money that has sustained people for 5000 years.

But for those who do see the writing on the wall, yet feel they cannot afford to protect what wealth they have in the high price of gold measured in ounces, there is a solution.

That solution is Karatbars



Buying gold through Karatbars is one of the easiest things on the net.  In fact, the business model of Karatbars is to sell gold in affordable quantities, such as 1, 2.5, and 5 gram increments, and allow customers to get into the metal without having to shell out $1200+ for a single ounce coin.

And as added perks to signing up with Karatbars, as a customer or affiliate, Karatbars is working on a new e-wallet system that functions just like an offshore bank account, and is outside the authority of the banking system.  From there, you can take your fiat currency in any denomination... dollars, euros, yen, etc... and purchase physical gold which can either be delivered directly to you, or stored for free at one of Karatbar's vaults.

Additionally, any gold that you buy can easily be sold back to Karatbars, or any metals dealer, and if with Karatbars it is then exchanged for currency that is uploaded to you through a pre-loaded debit Mastercard which is connected directly to your e-wallet.  And as we know, MasterCard is recognized in nearly every country around the world, and usable in any currency that accepts it.

But perhaps the best feature with Karatbars is their affiliate program, where you can earn money off commissions from getting others to sign up and become a customer or affiliate.  Not only do you receive commissions from their purchasing of physical gold, but you also earn commissions from anyone who buys a commission package, with that money going directly into your debit MasterCard when you have enough units to cycle.

Imagine the ability to earn the money in which to buy your gold savings simply by purchasing a commission affiliate package one time, and then getting others to sign up and do the same thing.

How many businesses or entrepreneurs can build an infinite business with spending less than $400 of their own money?  And there is never a mandatory requirement to buy beyond what you desire, on your own schedule.  And there is nothing to lose, because you're using money (paper dollars) to buy gold (physical money) and in the end you don't lose a thing.


The global financial system, along with dozens of respected economists, are telling us that now is the time for the end of our current form of money, and the beginning of the transition into a new monetary system that is expected to be backed by gold.  And with banks, governments, and even Harvard professors mandating that central banks have no choice but to eliminate cash from usage by the people to stave off collapse, will you wait until it is too late to make a decision on how you will protect your wealth, and be able to function within the coming new monetary system?

To learn more about Karatbars, you can contact the individual who sent you this article, and click on their referral link to open a free account and begin buying, or building your own gold savings or business with the company of the future.

Saturday, August 22, 2015

Got Karatbars? Retirees will never have enough money to stop working through conventional savings

In a new report by the Government Accountability Office (GAO), over half of all Americans have no retirement savings at all, and many more are too underfunded to be able to quit working once their golden years start to come upon them.  And with Social Security become more insolvent every day, with a few projections putting 2017 as the year the fund no longer can sustain payments from receipts, it will soon be extremely difficult for you to have any expectation of retirement through the conventional means of Wall Street or in personal and corporate pension funds.


On top of this, the stock market appears to be on the precipice of a huge correction, and has already fallen close to 10% in just the past two months.  Yet this alone doesn't tell the entire story as sovereign and corporate bonds have collapsed as well, and the entire global economy is in the midst of a deflationary spiral.

The one segment of the market that has risen however is gold, and may be finally turning the corner as the dollar begins to fall.  China started the metals move upward when they devalued their currency close to 10 days ago, and since that time both the dollar and the stock markets have reacted with a negative response.


Planning for retirement takes time.  Saving money is a slow process.  There was a time when simply stashing money into CDs and savings bonds was enough to have a nice nest egg if you were diligent enough.  Yet for the last decade, most banks are paying close to zero percent on their savings accounts thanks to the Fed’s low rate policy to juice the markets.  Since the true inflation rate is much higher, you are essentially letting your money rot away.  So the only other option is for people to invest in the stock market or try to leverage into real estate.

The stock market is largely an arena for the wealthy.  Half of Americans own no stocks at all.
And the idea that all older Americans own their home free and clear is simply not true.  Only 35 percent own their home free and clear from debt (and this does not mean they don’t have expenses like taxes, insurance, and maintenance).  24 percent are still saddled with mortgage debt.  And 41 percent do not own a home meaning they have to pay rents that continue tooutpace any wage gains. 
The median net worth of those 55 and older is $34,760.  This is basically one small illness from bankrupting this family.  The median annual income of those 55 and older is $18,932 which makes them part of the new low wage America cohort. On the retirement side 48 percent have some retirement savings (not much).  29 percent have no pension or retirement savings.  And 23 percent have a pension but no retirement savings.  In the end, it is a tough situation for many older Americans.  And that is why older Americans rely heavily on Social Security as their primary source of income into old age: - My Budget 360


So if the stock markets, the bond markets, and real estate will no longer provide for your retirement years as they once did before inflation and unsustainable debt became part of our nation's monetary policy, what is the solution to not only saving for your golden years, but building your wealth right now where it protected from the dying financial system?

The answer lies in Karatbars.




Buying gold through Karatbars is one of the easiest things on the net.  In fact, the business model of Karatbars is to sell gold in affordable quantities, such as 1, 2.5, and 5 gram increments, and allow customers to get into the metal without having to shell out $1200+ for a single ounce coin.

And as added perks to signing up with Karatbars, as a customer or affiliate, you can have the power to move your money into a free e-wallet that functions just like an offshore bank account, and is outside the authority of the banking system.  From there, you can take your fiat currency in any denomination... dollars, euros, yen, etc... and purchase physical gold which can either be delivered directly to you, or stored for free at one of Karatbar's vaults.

Additionally, any gold that you buy can easily be sold back to Karatbars, or any metals dealer, and if with Karatbars it is then exchanged for currency that is uploaded to you through a pre-loaded debit Mastercard which is connected directly to your e-wallet.  And as we know, MasterCard is recognized in nearly every country around the world, and usable in any currency that accepts it.

But perhaps the best feature with Karatbars is their affiliate program, where you can earn money off commissions from getting others to sign up and become a customer or affiliate.  Not only do you receive commissions from their purchasing of physical gold, but you also earn commissions from anyone who buys a commission package, with that money going directly into your debit MasterCard when you have enough units to cycle.

Imagine the ability to earn the money in which to buy your gold savings simply by purchasing a commission affiliate package one time, and then getting others to sign up and do the same thing.

How many businesses or entrepreneurs can build an infinite business with spending less than $400 of their own money?  And there is never a mandatory requirement to buy beyond what you desire, on your own schedule.  And there is nothing to lose, because you're using money (paper dollars) to buy gold (physical money) and in the end you don't lose a thing.



The global financial system, along with dozens of respected economists, are telling us that now is the time for the end of our current form of money, and the beginning of the transition into a new monetary system that is expected to be backed by gold.  And with banks, governments, and even Harvard professors mandating that central banks have no choice but to eliminate cash from usage by the people to stave off collapse, will you wait until it is too late to make a decision on how you will protect your wealth, and be able to function within the coming new monetary system?

To learn more about Karatbars, you can contact the individual who sent you this article, and click on their referral link to open a free account and begin buying, or building your own gold savings or business with the company of the future.

Friday, July 31, 2015

Social Security: We’re from the government, and we’re here to destroy what remains of the program

One of the funniest and perhaps saddest commentaries regarding the ability of the Federal government to either fix or run a financial enterprise is that when Uncle Sam co-opts a business platform, the end result is almost always insolvency, or the need for taxpayer bailouts.  In fact, all one has to do is look at the government’s takeover of mortgage and student loan lenders Fannie Mae and Sallie Mae to see that elected officials and their bureaucracies are so incompetent when it comes to finance and running a business, they quite often spend more money keeping these entities afloat than the value of the business was worth.
So when the American people desperately need their government to solve a problem tied to the future of Social Security, Congress’s new planned solution and predictable outcome should come as no surprise.
In a new piece of legislation called the ‘One Social Security Act’ (HR 3150), Congress is seeking to merge two separate entities under the Social Security Administration into one, thus masking the insolvency of both programs and making your retirement insurance now fully integrated with those receiving benefits as a disabled American.
Read more on this article here...

Sunday, July 19, 2015

The epidemic plague of debt and sovereign insolvency is accelerating around the world

When it comes to the financial state of most of the world’s economies, Greece is simply the most popular one right now to discuss within the daily news cycles.  However, since the inoculation given by most central banks after the 2008 credit crisis was to increase debt in an attempt to both recover from recession, and stimulate economic growth, the cure is proving to be much worse than the disease.
Greece has an unsustainable debt that has been conceded to by both the IMF and ECB, but the Southern European nation is just the tip of the iceberg for a growing epidemic of countries that are already insolvent, and carrying so much debt that it is mathematically impossible for them to pay off in this current monetary climate.  In fact, there are at least 24 insolvent and bankrupt nations, with another 14 very close to that same level, that are the tip of the iceberg since there appears to be no end to the debt plague that has engulfed the entire world like a ever growing black hole.
 
Read more on this article here...

As Germany attempts to crucify Greece, their biggest bank is now under investigation for money laundering

Throughout the entire Greek crisis, German Finance Minister Schaeuble has been front and center in trying to hold a hard line against the Southern European country whom he believes should be given no mercy for the hundreds of billions of dollars worth of loans that went into the coffers of his and other banks, and not the Greek people.  In fact, the majority of the money Greece owes to creditors was not through any fault of their own, but as a result of a forced bank bailout made to institutions outside of Greece.
Including Germany’s own Deutsche Bank.
So while the German Finance Minister continues to pretend to be the arbiter of fiscal responsibility for Europe, on July 16 three new investigations began against Germany’s largest bank, which pertain to money laundering charges that have arisen amidst the sanctions the West has imposed on Russia.
 
Read more on this article here...