The Next Crisis Is The Mother Of All Counter-Party Risks (Part 2)

[This is a long article – part valuable information and part rant. -Bob]

By Gijsbert Groenewegen – Re-Blogged From http://www.Gold-Eagle.com

In Part I I explained the counter-party risk that is all around us – and will come to the fore in the next financial crisis. In this second part I reflect on the rescue operations of the Fed following the 2008/2009 recession and the following QEs and ZIRP policies that have led to diminishing returns and that will ultimately weaken the US dollar: the biggest counter-party risk of all counter-party risks.

Addendum 8 – CDS, Credit Default Swaps. Ultimately it should be considered that when we encounter these systemic events that it will impact the underlying currency.  For example when the pension underfunding gets so problematic that the Government has to print more money to meet and rescue the obligations the counter-party risk will be reflected in the devaluation of the currency or the loss of purchasing power, the goods that you can buy with the same amount of nominal money will tumble.

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The Mystery Behind Economic Growth

By Alasdair Macleod – Re-Blogged From http://www.Silver-Phoenix500.com

We learn, out of the blue, that “the Eurozone is performing well, but with opinions divided on the causes, doubts linger over whether it is a sustainable recovery” (Daily Telegraph, 19 April). We are also told that economic growth in the US is stalling, as evidenced by downward revisions by the Atlanta Fed, and the fact that the rate of increase in Loans and Leases by commercial banks is also stalling. The Bank of England was unable to forecast the strength of the UK economy in the wake of Brexit.

This article explains why this confusion occurs. It is clear the economics profession is ill-informed about the one thing it is paid to know about, and the commentary that trickles down to the ordinary person is accordingly incorrect. State-educated and paid-for economists always assume the private sector is the problem, when it is the burden of the state, and the state’s futile attempts to manage the consequences of its actions through the corruption of money.

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2017 Annual World Forecast

[This is a very comprehensive, very long article. Please be ready. -Bob]

Re-Blogged From Stratfor

The convulsions to come in 2017 are the political manifestations of much deeper forces in play. In much of the developed world, the trend of aging demographics and declining productivity is layered with technological innovation and the labor displacement that comes with it. China’s economic slowdown and its ongoing evolution compound this dynamic. At the same time the world is trying to cope with reduced Chinese demand after decades of record growth, China is also slowly but surely moving its own economy up the value chain to produce and assemble many of the inputs it once imported, with the intent of increasingly selling to itself. All these forces combined will have a dramatic and enduring impact on the global economy and ultimately on the shape of the international system for decades to come.

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A German Medical Insider Tells the World How Muslim Refugees Will Use HealthCare to Destroy Our Country

By Re-Blogged From iPatriot

President Trump is right. Remember the “Welcome Refugee” banners the Germans waved just two years ago? Well, read what has happened.

Hospitals are overwhelmed by Refugees and cannot continue to provide care for taxpaying Germans:* A female doctor has stated that German hospitals are struggling to deal with the number of refugees. The doctor, who wished to remain anonymous, wrote to the press back home in the Czech Republic, to express her shock at the “unsustainable” situation which she says is now affecting the medical care received by taxpaying Germans. Continue reading

2016 Debt Binge Produces (Surprise!) 2017 Inflation. Guess What That Means For 2018?

By John Rubino – Re-Blogged From Dollar Collapse

Just as everyone was finally accepting the idea of deflation and negative interest rates, inflation decides to pay a return visit. In the past day, articles with the following headlines appeared in major publications around the world:

Swiss inflation rises at highest monthly rate in 5 years

China February producer inflation fastest in nearly nine years

Year-over-year import prices at highest level in five years

ECB keeps bond-buying, rates unchanged amid inflation flare-up

Food inflation doubles in a month as UK shoppers start to feel the pinch

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Claim: Brexit Could Cause EU Opposition to Climate Change to Collapse

By Eric Worrall – Re-Blogged From http://www.WattsUpWithThat.com

British Conservative Politician Ian Duncan MEP is worried that when Britain Leaves the EU, the entire European Union green programme could collapse, because Britain won’t be around to pay for it.

energy-plugged-in-coal

Brexit could ‘derail’ EU attempts to fight climate change and reduce greenhouse gas emissions, say MEPs

Exclusive: European Carbon Trading Scheme (ETS) could lose £1.7bn worth of funding once Britain exits the trade bloc

Shehab Khan@shehabkhan Wednesday 8 February 2017 16:45 GMT

Brexit could “derail” the European Union’s attempts to combat climate change and reduce greenhouse gas emissions, according to British MEPs.

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Central Banks And Gold

By Alasdair Macleod – Re-Blogged From http://www.Gold-Eagle.com

The very near future is likely to see a sea-change in central bankers’ attitude to the gold allocation in their reserves. The failure of G20 monetary policy since the financial crisis is causing a general rethink, which may eventually lead to a new policy direction. For now, that is undecided, beyond a growing acceptance that today’s monetary policy does not work and the assumptions of recent decades, that gold as money should be phased out, might have been a mistake.

The idea, that Western central banks could banish gold from the monetary scene over time, has been disrupted by the persistence of Asian demand, fuelled by the remarkable economic progress of ex-communist states embracing capitalist methods. Western financial markets have hardly begun to grasp the wider implications of the shift in economic power from the heavily-indebted welfare economies, to China, Russia and other members of the Shanghai Cooperation Organisation, and their consequences for gold.

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