The Ghost of Failed Banks Returns

By Alasdair Macleod – Re-Blogged From Gold Money

Last week’s failure in the US repo market might have had something to do with Deutsche Bank’s disposal of its prime brokerage to BNP, bringing an unwelcome spotlight to the troubled bank and other foreign banks with prime brokerages in America. There are also worrying similarities between Germany’s Deutsche Bank today and Austria’s Credit-Anstalt in 1931, only the scale is far larger and additionally includes derivatives with a gross value of $50 trillion.

If the repo problem spreads, it could also raise questions over the synthetic ETF industry, whose cash and deposits may face escalating counterparty risks in some of the large banks and their prime brokerages. Managers of synthetic ETFs should be urgently re-evaluating their contractual relationships.

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ARCHDUKE FRANZ FERDINAND AND THE REAL CAUSE OF WORLD WAR ONE

[War (usually) is STUPID! Even if you’re the big, rich, powerful country, the unintended consequences can strip you of your wealth – or even destroy your country. Here’s a brief account of Austria’s downfall as it caused World War I. -Bob ]

By Samantha James – Re-Blogged From The Historical Diaries

The Assassination of Archduke Franz Ferdinand and the start of World War One

The most common knowledge of what caused World War One is the assassination of Archduke Franz Ferdinand of Austria- Hungary and his pregnant wife Sophie. The Archduke was heir presumptive to the Austrian throne. The couple ended up being shot to death June 28, 1914 while visiting Sarajevo by Gavrilo Princip. This definitely angered the Austrian government but it is debated about how much. The country took three weeks to react to the death of their heir and had plenty of other motives to want to bring about a war. This reason is territory in what is known as The Balkans. It was literally un-owned due to the fall of The Ottoman Empire. Austria was looking to bring about a preventive war against Serbia for the land. It had originally been lost during The Balkan War.

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Greeced Lightning!

By Bill Holter – Re-Blogged From http://www.Gold-Eagle.com

We seem to have finally arrived at some sort of moment of truth regarding Greece and their inclusion in the EU.  The speculation is they will be out of money by April 9th, this Thursday, unable to make a less than 500 million euro payment.  Please keep in mind they have already been raiding the country’s pension plans to fund day to day services.  How large of a “dent” they have already made remains to be seen but that is not the point.  The point is this, any person, corporation or government who needs to dig into retirement savings for daily operations is like buying a carton of cigarettes with a credit card at 14.99% …and then carrying the balance!

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