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 spain. Show all posts
Showing posts with label spain. Show all posts

Wednesday, June 7, 2017

Bail-ins are back in vogue as one insolvent Spanish bank takes over another while CoCo bond holders lose 97% of value

It has been four years since the concept of a bail-in, or the using of customer deposits and assets to recapitalize a bankrupt financial institution was first used in Cyprus, but on June 7 the second one in the Eurozone has now taken place as CoCo (Contingent Convertible) bondholders of the Spanish bank Banco Popular just received their own haircut of more than 97% as the bank was taken over by another well known insolvent institution.

Last night the European Central Bank's 'Single Resolution Mechanism' agreed to allow Santander to purchase Banco Popular for just one Euro, and will be allowed to draw funds from the ECB to help recapitalize its new asset.  And ironically this move will allow Senior debt holders to be protected on the positive side of the bailout, but leave CoCo bond holders with nearly nothing as their bonds are more than likely to be converted into bank shares at extremely discounted prices.


There is a rule in Financial Institutions that any bank that calls itself “popular” generally isn’t. This was proved last night. But, congratulations if you were a holder of Spain’s Banco Popular’s Senior Debt - they did a Zebedee “boing!” on the basis last night’s last minute Santander rescue makes the bonds money good. 
Bad news for the Equity and COCO AT1 holders - who have the distinction of holding the first major bank capital bonds to be bailed-in/wiped out under EU regulations. Banco Popular senior debt is 12 points higher this morning. 
The AT1 perps are trading at 2.6%, down 50 points!!,and even that price looks optimistic. Ahah. We’ve not seen crashes like that since 2008. 
The Single Resolution Board agreed the sale of Popular for One Euro to Santander. Santander will launch a Euro 7 bln rights issue to recapitalise the bank, but that’s not a massive ask for Popular’s business. At one time Pop was the top Spanish bank - a great SME platform, strong retail business and solid management. Now it’s just another name to be restructured and synergised (is that a word?) into the maw of Santander. - Zerohedge
Oh, and who was protected during this bail-in, and subsequent takeover of Banco Popular?  Germany of course, who holds the majority of senior debt positions on the Spanish banks, and who the ECB is really there to protect over all others in the biggest dirty little secret of the Eurozone project.

Friday, November 25, 2016

Indian government seeks to expand war on cash to also include a war on gold as the death of fiat money becomes a global phenomenon

In India's move to end what they call 'black market' transactions by eliminating their two highest denominated currency notes, Prime Minister Modi is quickly discovering the folly of attempting to mess with the nation's money, and a system that has functioned outside of banking systems for decades.  And even as Modi's new measures of trying to force upwards of 1.3 billion people to turn in their now non-legal tender notes in exchange for a new currency has so far been a huge failure, the leader of India is now seeking to double down on capital controls and expand the war on cash to also a new war on gold.

As Bloomberg reports, the Indian government had observed a declining trend in exchange of old notes over the counter, according to a statement from the state-run Press Information Bureau. 
And so the decision to end OTC exchange of notes was to encourage people to deposit old notes in their bank accounts. 
Government allows certain exemptions for use of old notes until Dec. 15, with only 500 rupee denomination currency notes accepted for such transaction:
  • Old 500-rupee notes can be used for payment of school fees with limit; utility dues; payment of road toll fees
  • Foreigners permitted to exchange foreign currency up to 5,000 rupees/week
Furthermore, as CNBC reports, the Indian government is set to impose a 45% tax (haircut) on any suspicious deposits. 
This is a major problem as only 40% of banknotes have been exchanged according to local reports. 
We suspect the sudden urge to force citizens to deposit/exchange their old banknotes is due to the increasing prevalance of "illegal workarounds" across the nation... (as The Wall Street Journal reports) 
Unable to spend or deposit their sackfuls of large bank notes amid India’s crackdown on hoarding cash, business owners across the country are paying employees months of salary in advance, ringing up bogus sales and even buying gold they can smuggle overseas to get rid of stashed money or conceal its source. 
Such illegal workarounds are threatening to undercut Prime Minister Narendra Modi’s move this month to cancel India’s highest-denomination rupee bills, which was meant to punish tax evaders and other criminals and bring more of the nation’s $2 trillion economy out of the shadows. - Zerohedge
And because Prime Minister Modi's scheme has failed to accomplish his desired outcome from the people, it now appears he is going after their most sacred holdings.

Their gold.
Recall, that as per our report last night, one of the reasons proposed for the recent tumble in gold has been speculation that India may ban gold imports. As a reminder, gold has traditionally been a widely-accepted cash alternative in an economy where gold has long held a supremacy over cash equivalents, to the point where recently the government started paying a dividend to those who deposit their gold to local banks for "safe keeping." 
Well, it now appears that the government is taking its crusade against gold one step futher, and according to a report by NewsRise, the Indian government may soon impose curbs on domestic holdings of gold as Modi intensifies his war against "black money", news agency NewsRise reported. 
As we reported previously, gold prices have soared in India ever since the November 8 demonetization announcement, and premiums jumped to two-year highs last week as jewellers ramped up purchases on fears the government might restrict imports after withdrawing higher-denomination notes from circulation in its fight against black money. 
India is the world's second biggest gold buyer, and it is estimated that one-third of its annual demand of up to 1,000 tonnes is paid for in black money - untaxed funds held in secret by citizens in cash that don't appear in any official accounts.
India may be the most public and most notable of countries going through the turmoil of forcing their people to change their currency, but they are far from the only nations currently implementing a ban on cash and gold.  In just the past week the countries of Australia, Uruguay, and even Spain have begun the process of eliminating large currency denominations in their economies as the world seems ripe for a new liquidity crisis that is requiring extreme measures.
India, Uruguay, Australia and now Spain. The Minister of Finance and Public Service, Cristóbal Montoro has reportedly just announced “anticipated measures in order to ‘reduce the use of cash.’ 
In other words, Spain is going to make cash transactions even more difficult. As of presstime, from what we can tell, this has yet to be reported anywhere in English media except here now at TDV. 
As you can see, the chaos is increasing. Combine cash bans with attacks on fake news (more on that tomorrow), and you end up disturbing a significant amount of people as we wrote here recently. 
This amounts to a trend of course, of the sort we’ve been analyzing for several years now. We’ve predicted increased social chaos throughout the West and beyond because globalism is not built by votes but by violence and widespread disaffection that allows globalist “solutions” to be rammed home. 
I expect “cash banning” to be speeded up along with selected attacks on the alternative media - as part of a larger effort to create widespread social dissension. People believe attacks on cash and “news” are what they seem to be on the surface. They are not. They are part of a much deeper strategy that involves additional globalism. 
We’ve expected just these sorts of actions and have profited from them for the past several years along with our newsletter subscribers. We await more of the same. 
Currently, violence spawned by this anti-cash trend can be seen in such countries as Uruguay and India where cash banning on large bills has ignited significant social chaos already. India is in the throes of riots while Uruguay has been hit with a nationwide strike aimed in part at derailing a mandate that all employers must pay employees electronically via a bank account, starting as soon as March.  - Dollar Vigilante
Perhaps one of the reasons for this sudden attack on money by governments and central banks is due to the rising dollar and the expanding liquidity crisis that the reserve currency is creating as fewer nations can afford to buy dollars for international commerce.  And with the dollar reaching a 14 year high this week by nearly touching 102 on the dollar index, history shows that anytime the reserve currency has crossed the 100 level over the past 30 years it has triggered a financial crisis somewhere, which it appears to be doing now in multiple locations.

In the latest report from ADM ISI’s strategy team, “Dollar Liquidity Threat is Getting Critical and Fed is M.I.A.”, Paul Mylchreest argues that mainstream economic luminaries (like Carmen Reinhart) are finally acknowledging the evolving crisis due to the dollar shortage outside the US, a topic which even the head researcher at the BIS shone a spotlight on yesterday suggesting that the strength of the dollar, not the VIX is the new "fear indicator". - Zerohedge
As always in history, when people lose confidence in their currencies the natural and obvious next move is to rush out of their 'money' and into tangible assets such as gold and silver.  And besides the rumors of gold soaring as high as $3600 on the black market now in India, over in Asia people are massively increasing their own buying, and are more than willing to pay high premiums to get it.

The price of gold is being attacked right now in a manner that is quite reminiscent of the way it was attacked in the summer of 2008, right before the global financial markets collapsed, led by the fall of Lehman.  Something really ugly is coming toward the global economic and financial system. 
In Viet Nam the premium paid by the public has just soared to $90 over world gold.  The spread has been wider over the last 15 years, but not much and only during times when there’s been high “backwardation” between the physical delivery bullion markets in the east vs. the fraudulent paper gold markets in London and NYC. - From PM Fund Manager Dave Kranzler:  
Gold was pushing $1230/oz overnight, as the methodical take-down of gold and silver in the NYC and London paper markets has triggered an avalanche of demand for physical gold in the eastern hemisphere. 
Last night ex-duty import premiums in India were $14 over spot gold.  In Shanghai the premium to world gold was $9.76.  Delivery volume into the Shanghai Gold 
Exchange rocketed to an extraordinary 86.55 tonnes (it was 35.9 tonnes on Wednesday).  The open interest on the SGE was 807 tonnes.  To one observer’s recollection, John Brimelow of John Brimelow’s Gold Jottings, this is the first time the open interest has been over 800 tonnes. 
In Viet Nam the premium paid by the public was $90 over world gold.  only during times when there’s been high “backwardation” between the physical delivery bullion markets in the east vs. the fraudulent paper gold markets in London and NYC. - Silver Doctors
Just as most people imagine the strength of the economy as being tied to the value of the stock markets, so too do people erroneously picture the true value of gold as being tied to the manipulated paper spot price determined in London and the Comex.  But the coming financial crisis that has been deferred now for eight years ever since the 2008 Credit Event appears very much to be demanding a reckoning, and those who both see it early enough, as well as prepare for it, will find the ability to do so as the days of the dollar and of money quickly come to an end.


Tuesday, June 16, 2015

Newest banker death emerges as Citi trader drowns during vacation

On June 12, an up and coming trader from Citigroup was found dead while on vacation in the Mediterranean. Marcin Kania, a 26 year old banker working out of London, is believed to have drowned off the coast of Spain during a boating trip with friends, and investigators are still trying to determine whether this was simply an accidental death since they have concluded in preliminary reports that alcohol was involved.



Read more on this article here...

Tuesday, April 2, 2013

What is Bitcoin and why is it now over $100 U.S. dollars

On April 1, the digitial currency known as Bitcoin grew its market value to over $100 U.S. dollars, doubling in just the past two weeks.  As European countries like Cyprus, Greece, and Spain look towards the ECB and IMF bailouts, then people are looking towards an alternative currency in the wake of failed confidence in the Euro.


But what exactly is Bitcoin, and how is it different than any central bank backed fiat money?  Those questions were answered in an interview between Tom Woods and Bitinstant's Erik Voorhees a few weeks ago.

Take a look.


Monday, June 11, 2012

Nigel Farage on how EU expansion led to its demise

Britsh representative to the EU parliament, Nigel Farage, spoke on June 10 regarding the Spanish bailouts, and what it means for the Europran Union as a whole.  His interview was quite intriguing, especially in regards to how Europe's appetite for expansion with smaller economic nations may well be the catalyst for their eventual demise.



God save the 10 member nation EU, who hemorrhages money like sailors during Fleet Week in New York City.

Tuesday, May 8, 2012

Europe isn't spending less, they are just spending less on their own people

European austerity is a relative term for the nations and people of the European Union.  On one hand, it represents a pullback from massive borrowing, spending, and public benefit programs, but it can also mean simply a pullback on where the money goes without cutting spending at all.

It appears now that austerity in Europe really is no more spending on the people, and instead giving money to banks, governments, and corporations, at the expense of the very populations who are barely surviving in desperation mode.


When you were a child and did something wrong, the worse possible words your mom could say were "wait til your father comes home!" and that dreaded anticipatory angst is what Europeans must be feeling now as the threat of austerity hangs like the sword of Damocles over their heads. The reason we say this is that in fact, as Veronique de Rugy of National Review Online notes, the 'savage' spending cuts in Europe have yet to show up anywhere. All the rhetoric of how Europe's austerity has failed, all the hand-wringing and election-winning, and yet all the major nations are spending more than pre-recession levels; France and the UK did not cut spending at all, and even in Greece and Spain cuts have been small (and any meaningful reforms failed to be implemented). In fact, the epicenter of the current meltdown - Spanish banking - has seen only de-minimus headcount reduction over the past few years - so who is tightening their belts? The trouble, of course, is that while the threat of austerity has struck fear in the hearts of every European voter, the action of raising taxes has hurt just as much and perhaps the "trumpeting the failure of austerity as a reason to go full-Keynesian again" chatter will recede as facts overtake fallacies. As Mark Grant recently noted, there's a big divide between austerity pledged and austerity implemented, as it appears its more about raising taxes than cutting spending. - Zerohedge



As you can see, nations like Spain, Greece, and Italy have not curtailed their spending at all, just moved where the money was going to.  In this case, it away from public benefit programs and more towards the banks, corporations, and crony capitalists who helped create the problem in the first place.

Tuesday, December 13, 2011

Moody's may downgrade Spanish bank ratings

Late yesterday, Moody's rating agency said that they might be downgrading more Spanish banks as their solvency in the Euro Zone falls.

Moody's on Monday placed eight Spanish banks and two holding companies on review for possible downgrades due to expectations of increased losses stemming from their commercial real estate exposure. The move was prompted by Moody's reassessment of all Spanish banks which indicated a projected decline in earnings generation capacity due to a weaker growth outlook for the Spanish economy. - Marketwatch

Frankly, isn't it about time they were all downgraded enmasse, since liquidity and solvency for the majority of them is a smoke and mirrors over-leaveraged sham.

Wednesday, December 7, 2011

For the children: Spain's austerity measure lead to toilet paper limits in schools

Nations rarely make the right choices when it comes to budget cutting, and it appears that in Spain, this is no exception.  Spanish debt and massive unemployment in their recession is leading the country to impose stringent austerity measure, to include obscure cuts for children in schools.

Such as... cutting back on toilet paper.

The latest edict issued by the region’s ministry of education instructs state schools to cut “excessive consumption” of toilet roll among pupils and limit the quota to a maximum of 25 metres per child per month.
This most recent penny saving measure comes amid widespread cuts to education budgets across Spain that has led to regular protests in the streets by teachers. - UK Telegraph

It is sad, but historically accurate that children seem to always feel the brunt of tough economic time, especially when the excrement hits the fan.
And there is nothing left to wipe it off.

Thursday, October 20, 2011

The price of Catholicism could be a life... or 300,000 of them

In a shocking expose that ranks of all things could overshadow the pedophile priest scandals, it has been revealed that the Catholic church, along with the Spanish government, stole up to 300,000 newborn babies from their mothers, and trafficked them around the world to whom they considered 'better Catholics'.

Up to 300,000 Spanish babies were stolen from their parents and sold for adoption over a period of five decades, a new investigation reveals.
The children were trafficked by a secret network of doctors, nurses, priests and nuns in a widespread practice that began during General Franco’s dictatorship and continued until the early Nineties.
Hundreds of families who had babies taken from Spanish hospitals are now battling for an official government investigation into the scandal.
Several mothers say they were told their first-born children had died during or soon after they gave birth.
But the women, often young and unmarried, were told they could not see the body of the infant or attend their burial.
In reality, the babies were sold to childless couples whose devout beliefs and financial security meant that they were seen as more appropriate parents.  - Daily Mail
To what price is it to be a follower of a religious denomination to have priests, nuns, and a pontiff determine whether you are worthy of possessing and raising a child?