Tag Archive | economics

IRS Hires Private Debt Collection Agencies to Collect Unpaid Taxes*

IRS Hires Private Debt Collection Agencies to Collect Unpaid Taxes*

By Andrew Moran

You won’t just be receiving a call from the Internal Revenue Service (IRS) moving forward, but also from debt collectors. The tax collection agency has contracted out the task of pursuing unpaid taxes.

The IRS announced earlier this month that it has hired four debt collection agencies to get their hands on outstanding payments from taxpayers. With the increasing backlog of unpaid taxes, the IRS employed private debt collection firms to contact taxpayers who still haven’t paid previous years’ taxes.

As part of the new debt collection program, a few hundred taxpayers will be receive phone calls and mailings. In the summertime, the number will grow by the thousands.

Ostensibly, the IRS will contact these people several times before they send their information to a private debt firm. Moreover, the IRS will not provide accounts to these agencies in regards to victims of tax-related identity theft, minors and those in combat zones.

“The IRS is taking steps throughout this effort to ensure that the private collection firms work responsibly and respect taxpayer rights,” said IRS Commissioner John Koskinen in a statement.

“The IRS also urges taxpayers to be on the lookout for scammers who might use this program as a cover to trick people.”

In addition, the private debt collectors must abide by the Fair Debt Collection Practices Act. But not everyone is satisfied.

Tony Reardon, president of the National Treasury Employees Union, thinks the collection agents will be getting paid to “harass taxpayers, many of whom need assistance…”

Chi Chi Wu, staff attorney with the National Consumer Law Center, says private debt collectors are the most complained about to the Federal Trade Commission (FTC) and the Consumer Financial Protection Bureau (CFPB).

“The collectors don’t have any incentive to do that because they get paid a commission for every dollar they bring in. Their main incentive is to collect money, come hell or high water,” Wu said

“We’re concerned that some of these vulnerable taxpayers will agree to pay more than they can afford and more than they should be paying given the availability of these programs.”

The private sector will now use the arm of government force to retrieve the fruits of your labour.


Related Topics:

Trump Wastes over $94mn in Taxpayer’s Money on Ineffective Syrian Airstrikes*

Americans aren’t Filling their Taxes this Year says IRS*

U.S. Taxation Deadline Looms for Trinidad and Tobago*

U.S. Taxpayers Funded Clinton’s Private Email Servers through ‘Former Presidents Act’*

Former Head of Morgan Stanley Indicted for Evading $45mn in Taxes*

U.S. Now Taxing Collection of Rainwater*

IRS Agent Admits Income Tax is Unconstitutional and Illegal*

Flint Tax Payers to foot Gov. Synder’s $500,000 Attorney’s Fee*

Rothschild Establishes Billionaire Tax Haven Inside America*

U.S. Sued over $280bn Tax-deductible Aid Sent to Israel*

1980 Interview: How the Tax Exempt Foundation has brought about the Destruction of U.S.*

U.S. Classifying Bitcoin as a Commodity So It can be Taxed and Regulated*

U.S. Taxpayers Now Alone in Financing Ukraine’s Ethnic Cleansing*

American and British Taxes Paying for Eugenics in India*

Congress Deliberating on Tax for Your Internet Access*

“Is This The Truth About Tax’s”

Tyranny of Taxation and Regulation without Representation*

Actor Wesley Snipes Freed After 3 Years for Refusing to be Taxed*

U.S Banks Avoid Taxes By Creating Foreign Subsidaries*

15 More Nations Ready to Sign onto the China’s AIIB*

15 More Nations Ready to Sign onto the China’s AIIB*

By Kenneth Schortgen

Last week saw the first new set of signatories join the Asian Infrastructure and Investment Bank (AIIB) since the original 57 nations joined on the institution’s inception back in 2015.  And with these 13 new countries buying into China’s alternative to the West’s International Monetary Fund (IMF) bank, a total of 70 countries have recognized the shift that is taking place from West to East in the global financial system.

However these new 13 members are not the only ones suddenly rushing into the AIIB, as an announcement on March 25 shows that 15 more governments have applied to join, which would make the number of countries joining the AIIB equal to nearly half the total number of countries currently recognized in the world.

Fifteen new members will soon join the Asian Infrastructure Investment Bank (AIIB), which will bring the total number of members to nearly 90, AIIB President Jin Liqun announced on Saturday.

The comment came after the bank expanded its membership to 70 last week by approving 13 countries and regions as new members.

Jin said the participation of new members from North and South America, Africa and Europe will bring positive changes to the AIIB’s operations, implying that the bank will expand investment outside of Asia. – China Daily

As of today there are 193 recognized nations in the world today, with 177 of them having an annual GDP of just over $1 billion, and only 61 having an annual GDP of over $100 billion.  This means that the majority of nations in the world are ripe for potential development, which China is already pursuing through its Belt and Road project meant to connect the world in both trade and development.

Original List of Founding AIIB Members:

  • Australia, Austria, Azerbaijan, Bangladesh, Brazil, Brunei, Cambodia, China, Denmark, Egypt, Finland, France, Georgia, Germany, Iceland, India, Indonesia, Iran, Israel, Italy, Jordan, Kazakhstan, Kuwait, Kyrgyzstan, Lao, Luxembourg, Malaysia, Maldives, Malta, Mongolia, Myanmar, Nepal, Netherlands, New Zealand, Norway, Oman, Pakistan, Philippines, Poland, Portugal, Qatar, Republic of Korea, Russia, Saudi Arabia, Singapore, South Africa, Spain, Sri Lanka, Sweden, Switzerland, Tajikistan, Thailand, Turkey, UAE, United Kingdom, Uzbekistan, Vietnam

List of New Additions to the AIIB on March 23, 2017:

  • Afghanistan, Armenia, Fiji, Hong Kong, and Timor Leste, Belgium, Canada, Ethiopia, Hungary, Ireland, Peru, Sudan and Venezuela.

13 New Members Awaiting Approval as of March 25, 2017 (TBA)


Related Topics:

The New Asian Bank a Launch-pad for NWO Economics?*

Defying the US with the China-Led Development Bank*

US Losing Financial Credibility‘ : Gerald Celente on China International Bank – AIIB!

132 Nations Want Out of the Cabal’s Global Banking System*

Russia Preparing for Potential Removal from International Banking System*

Iran Finally Ditched the Dollar: Here’s Why It Matters*

World Rushes to De-Dollarize Oil Trade Before U.S. Economy Crashes*

Rothschild Makes Dismal Admission — His Financial World Order Now “Threatened”*


Moscow and Beijing Establish BRICS Monetary Transactions Framework in Gold*

Moscow and Beijing Establish BRICS Monetary Transactions Framework in Gold*

Trading in local currencies has already started — and lays the groundwork for facilitating BRICS transactions in gold

Recent progress made in streamlining trade in local currencies has brought Moscow and Beijing closer to creating a financial architecture that could facilitate transactions in gold.

As we reported last week, Moscow and Beijing took another step towards de-dollarization with the opening of a yuan clearing bank in Russia. And earlier this month Russia’s Central Bank opened its first-ever foreign branch in Beijing to allow for better communication between Russian and Chinese financial authorities.

China and India’s gold

China & India’s Gold

According to an article published yesterday by Sputnik, progress made in promoting bilateral trade in yuan is the first step towards an even more ambitious plan — using gold to make transactions:

  1. The clearing center is one of a range of measures the People’s Bank of China and the Russian Central Bank have been looking at to deepen their co-operation. […]
  2. One measure under consideration is the joint organization of trade in gold. In recent years, China and Russia have been the world’s most active buyers of the precious metal.
  3. On a visit to China last year, deputy head of the Russian Central Bank Sergey Shvetsov said that the two countries want to facilitate more transactions in gold between the two countries.

Russian Gold 2017


The possibility of trading in gold has been discussed by Russian officials over the last year. Last April, First Deputy Governor of the Russian Central Bank Sergey Shvetsov told TASS:

“BRICS countries are large economies with large reserves of gold and an impressive volume of production and consumption of this precious metal. In China, the gold trade is conducted in Shanghai, in Russia it is in Moscow. Our idea is to create a link between the two cities in order to increase trade between the two markets.”

Future plans to facilitate transactions between Moscow and Beijing in gold would certainly explain why the two countries are leading gold producers and buyers. Creating a BRICS “gold marketplace” would be an excellent way of bypassing the dollar while also using a “currency” that could be easily recycled for trade with other member nations.

And while trading in gold won’t happen overnight, BRICS states have already moved towards creating a “new financial architecture” that “tackles the dominance of the U.S. dollar in global finance”:

The initiatives taken by the member nations of BRICs (Brazil, Russia, India, China, and South Africa) to set up a new financial architecture at its eighth summit held in October 2016 in India have recently been under the spotlight.

In order to avoid the International Monetary Fund (IMF) type of loan conditionalities and tackle the dominance of the United States (US) dollar in global finance, the new institutions set up by the BRICs are expected to provide a much needed change in the global financial architecture.

These institutions include the New Development Bank (NDB), the BRICS-led Contingency Reserve Fund (CRF), and the Asian Infrastructure Investment Bank (AIIB).

As one financial expert noted recently:

In recent years, the BRICS countries – Brazil, Russia, India, China and South Africa – have been taking small steps to reduce the primacy of the dollar in international trade. China has been leading this effort in recent years.

I recently came across this headline published by the South China Morning Post: “Moscow and Beijing join forces to bypass U.S. dollar in world money market.” You see, Russia and China have been working towards stronger economic ties for years.

The latest sign of this cooperation happened March 16, when the Central Bank of Russia opened its first overseas office in Beijing. The local news called this “a small step forward in forging a Beijing-Moscow alliance to bypass the U.S. dollar in the global monetary system.”

Trading in yuan is just the first step.

There are much bigger plans in the works.

[FYI: Genghis Khan ~ The Mongol Empire:

August 21, 1264 Kublai Khan becomes the Great Khan.

After a protracted civil war, Ariqboqe surrenders to Kublai Khan at Shangdu. This solidifies Kublai Khan’s power and allows him to once again begin campaigns of conquest. He finally defeats the Song Dynasty in southern China and puts his own regime in place, called the Yuan, which makes the Mongols the first non-Chinese people to conquer all of China. ”

The word “yuan” means “origin of the universe.”

1368 The Ming Dynasty reclaims China and the Mongol Empire ends.

After Kublai Khan, the Mongols disintegrate into competing entities and lose influence, in part due to the outbreak of the Black Death. In 1368, the Ming Dynasty overthrows the Yuan, the Mongols’ ruling power, thus signifying the end of the empire.]


Related Topics:

Russia Preparing for Potential Removal from International Banking System*

BRICS Under Attack: Brazilian PM Must Say Goodbye to BRICS and Hello to Washington or Face a Coup*

BRICS Under Attack: Western Banks, Governments Launch Full-Spectrum Assault On Russia*

BRICS Under Attack: NWO Tentacles Extending into South Africa*

US Losing Financial Credibility‘ : Gerald Celente on China International Bank -AIIB!

Rothschild Makes Dismal Admission — His Financial World Order Now “Threatened”*

This Week the ‘Arch of Baal’ Was Displayed For the Third Time in Honour of ‘The World Government Summit’*

World Freemasons Gather in Tokyo to Select New Leader as Golden Age Dawns*

Behind the Global Financial Reset*

There is a new U.S. “Marshall Plan” for Greece*

There is a new U.S. “Marshall Plan” for Greece*

The trip to Washington was short and effective. Greek Defense Minister Panos Kammenos cannot hide his enthusiasm about the Trump administration. He was in the White House and heard President Donald Trump saying “I love Greeks! Oh, I love the Greeks!” He had thorough talks with his counterpart Defense Secretary Jim Mattis about security issues and upgrading the   …. of the debt-ridden Greece. Now the Greek defense minister sees even a new Marshall Plan heading towards Greece. Not in form of the famous Marshall Plan after the WWII, with food packages falling from the sky. The new Marshall plan will be in form of ‘economic aid’ – In 21st-century terms: in form of investment.

In an interview to private ANT1 TV Tuesday morning, Kammenos said there is a new U.S. Marshall Plan for Greece.

“A Greek-American fund is interested in Ethniki Insurance, there is a great interest for the purchase and creation of touristic facilities,” Kammenos said.

Ethniki Asfalistiki, the Hellenic National Insurance, owned by the Greek National Bank, is due to be sold, the tender opens today.

Without specifically mentioning any American interest in the energy sector, Kammenos stressed Greece is becoming an energy hub. He reckoned that the pipeline that will transport natural gas from Israel and Cyprus through Crete and Peloponnse to Europe is in design, as so is the large storage facility in Alexandroupolis that will store  gas from the already existing pipelines.

“With the energy issues Greece enters the heart of the world,” Kammenos said reminding of the oil and natural gas resources in the Aegean Sea.

“New energy paths are opening and Greece is in their centre,” Kammenos stressed adding that Greece is in good geostrategic position “as the country  strengthens its cooperation with the U.S., Israel, Egypt and Cyprus.

At the same time, there seems to be another sector open for the new Marshall Plan: defense. Modernization and upgrading of the existing arsenal debt-ridden Greece has no money to spend for.
Panos Kammenos is reportedly very optimistic about this issue. Target is not only the modernization of the naval base in Souda Bay on the island of Crete. Defense Secretary Mattis made a special mention to it.

Upgrade is also needed for the Greek F-16 fighter jets as well as for the maritime surveillance aircraft P-3 Orion.

“The process of modernization of at least 90 F-16 fighter jets has already started,” defense issues website militaire.gr noted on Monday and added there has been intention to consider Greece as one of the customers for the F-35 ‘club’.

After Turkey announced its interest on F-35, the purchasing of F-35 became a challenge for Greece, a challenge it cannot afford.

The website notes that for ten years Greece has not done much in upgrading and modernization stressing that “expensive weapon systems were purchased but were left without technical support. Upgrading that should have been done already in 2008 was out of question.” All these problems require quick solutions.

The Marshall Plan (officially the European Recovery Program, ERP) was an American initiative to aid Western Europe, in which the United States gave over $12 billion (approximately $120 billion in current dollar value as of June 2016) in economic support to help rebuild Western European economies after the end of World War II.

Under the Marshall Plan Greece received $700,000,000 between 1948 and 1952.

However, the Marshall Plan was not ‘aid’ without ‘exchange’.

“The goals of the United States were to rebuild war-devastated regions, remove trade barriers, modernize industry, make Europe prosperous once more, and prevent the spread of communism. The Marshall Plan required a lessening of interstate barriers, a dropping of many regulations, and encouraged an increase in productivity, labour union membership, as well as the adoption of modern business procedures.”

The issue of a new Marshall Plan was raised in 2012 and 2013 by U.S. economist Joseph Stieglitz and U.S. President Barack Obama, when it became clear that Greece cannot deal with its debt.

I suppose the idea was abandoned when the Americans realized that Greece was a member of a common currency union, the eurozone, and that Germany would raise serious objections to the plans. Berlin wanted to be the great reformer and exploiter of Greece.


Related Topics:

What Will Unfold as Greece Hires a Rothschild as Debt Advisor*

E.U. Throws Greece and Refugees to the Sharks*

Greece is now a Colony of the E.U.*

Europe’s Vindictive Privatization Plan for Greece*

How German and French Banks Helped Bankrupt Greece*

Germany, where’s the Reparation for Greece?*

From New York to Greece ‘We Can’t Breathe’*

Brexit Officially Begins*

Brexit Officially Begins*

By Tyler Durden

There is no going back now: moments ago the E.U.’s Tusk received the signed Brexit notification letter from U.K. envoy, triggering two-year countdown to British withdrawal from E.U. and marking the first ever withdrawal of an E.U. member state in its 60-year history.

The E.U. has received the letter from U.K. that will trigger Article 50 and formally begin the #Brexit processhttps://t.co/4Y8SFa7sZX #BrexitDay

— BBC Breaking News (@BBCBreaking) March 29, 2017

The Article 50 letter. #Brexit pic.twitter.com/SO5R5BTvhw

— Donald Tusk (@eucopresident) March 29, 2017

After nine months the UK has delivered. #Brexit

— Donald Tusk (@eucopresident) March 29, 2017

Commemorating the event, Theresa May said this is “a historic moment from which there can be no turning back.”

This is “a historic moment from which there can be no turning back,” Theresa May says https://t.co/SfsZ8UruHD pic.twitter.com/XCHjDo95nR

— Bloomberg Brexit (@Brexit) March 29, 2017

And it appears Mark Cudmore may have been right that the official start of Brexit may be bullish for cable, prompting the cover of record sterling short:


Speaking to Parliament over this historic event, Theresa May said that the move would implement “the democratic will” of the people of the United Kingdom who voted to leave the E.U.

Tim Barrow, the U.K.’s E.U. ambassador, delivered a letter to Donald Tusk, president of the European Council in Brussels, invoking Article 50 of the Lisbon Treaty, nine months after Britain voted in a referendum to leave the bloc. “After nine months the U.K. has delivered”, said European Council president Donald Tusk.

May will inform MPs of her negotiating priorities for the next two years of Brexit talks. The prime minister is expected to strike a moderate tone, after ministers have signalled in recent days that she is increasingly open to compromise in order to prevent Britain’s 44-year relationship with the E.U. ending in acrimonious divorce.

The prime minister informed the cabinet of the letter’s contents at a specially-convened meeting on Wednesday morning. Speaking shortly before that meeting, chancellor Philip Hammond told the BBC that “we are going to get a deal” with the EU, the FT reported.

In remarks that are likely to frustrate Tory Eurosceptics, Hammond said that the U.K. government had accepted that it could not “cherry-pick”, and that leaving the E.U. would have “consequences”.

“We will not be members of the European single market, we will not be full members of the European customs union, and not being members of those entities has some consequences, it carries some significance,” he said. “By deciding to leave the European Union and negotiate a future relationship with the E.U. as an independent nation, there will be certain consequences of that, and we accept those.”

Mr Hammond also indicated that the government would regard the completion of negotiations with the E.U. in 2019 as the cut-off date for the rights of E.U. nationals living in the U.K. It had been suggested that the U.K. could treat the triggering of Article 50 as its cut-off date.

* * *

What happens next?

Below, courtesy of Bloomberg is an 18 point Q&A on the main items to keep an eye on in the weeks and months ahead.

Nine months after Britain voted to leave the European Union, Prime Minister Theresa May plans to open divorce proceedings on March 29. The negotiations could turn “vicious,” according to Irish Prime Minister Enda Kenny. European Commission President Jean-Claude Juncker says they will be “very, very, very difficult.” Both the E.U. and the U.K. will have to determine what is and isn’t negotiable.

  1. Didn’t Brexit already happen?

No. The June 2016 referendum, in which 52% of British voters chose to leave the E.U., was just the start of a lengthy process. If May has her way, the actual split will occur in the first half of 2019. Its contours are about to be negotiated.

  1. What does Brexit actually mean?

Britain is exiting the 28-country bloc, which it joined in 1973. Initially envisaged as a free-trade zone that now includes 500 million consumers, the E.U. is, in the eyes of many Britons, too bureaucratic, out of touch, expensive and an obstacle to clamping down on immigration. Free movement of citizens is a basic tenet of E.U. law.

  1. How does the exit process work?

Article 50 of the Lisbon Treaty, the E.U.’s guiding document, details how a country leaves the bloc. It’s never been activated and is only about 260 words long. It gives the departing country up to two years to negotiate “its future relationship with the Union.” So Britain will be out of the bloc by April 2019.

  1. When did the two-year clock start ticking?

It starts on Wednesday afternoon when the U.K.’s envoy to the E.U., Tim Barrow, hands E.U. President Donald Tusk a letter from May formally invoking Article 50. May will address the U.K. Parliament about the same time. The delay since the referendum was caused by May, who insisted she needed time to form a negotiating team and take a position. Then the U.K. Supreme Court ruled that she didn’t have the authority to trigger Article 50 by herself, forcing her to obtain permission from Parliament. A law was then passed on March 16 to allow the prime minister to act.

  1. How quickly will talks start?

Tusk will read out a statement at 1:45 p.m. in Brussels on Wednesday, a move that may give some clarity. He has indicated the E.U. will respond within 48 hours by publishing draft guidelines for Michel Barnier, the European Commission’s chief negotiator. E.U. leaders will convene a summit on April 29 to sign off on those. Officials have said the bloc may wait until June to fully engage although September elections in Germany will be a distraction.

  1. What will May push for?

She intends to pull the U.K. out of the single market for goods and services — a “hard” Brexit that prioritizes securing control of immigration, laws and her budget over economic concerns. May wants the “best possible deal” for trading with the bloc although she seeks the liberty she now lacks to negotiate trade deals with non-E.U. countries such as the U.S.

  1. What will Europe demand?

The remaining E.U. members don’t want the U.K. to “cherry pick” the benefits of membership with none of the responsibilities (like agreeing to the free movement of people) for fear it will encourage others to leave as well. Many European countries are going to seek a guarantee of the rights of their citizens already living in Britain. May wants the same for Britons living abroad and says this is an issue to resolve early on. Ireland, an E.U. member, says it will fight any attempt to restore a so-called hard border with Northern Ireland, which is part of the U.K. Then there’s the question of the bill the U.K. will be asked to pay.

  1. Wait — there’s a bill?

The E.U. says there is. Barnier has indicated he wants the British to cover budget commitments they agreed to, pensions promised to E.U. officials from the U.K., guarantees on loans such as the bailout of Ireland and pending infrastructure projects. Juncker says the sum in question is about 50 billion pounds ($63 billion). British Trade Secretary Liam Fox rejected the notion of a bill as “absurd” and Brexit Secretary David Davis said the amount will be “nothing like” the sums floated. A House of Lords panel also questioned whether the U.K. is under any legal obligation to pay. Still, E.U. officials say they won’t discuss the trade deal May is after until the issue is resolved. They may also be willing to force the issue in front of the International Court of Justice. Such threats mean May might agree to contribute something, although a big check would draw ire domestically.

  1. How will the talks be structured?

Barnier wants to focus first on the separation — settling the bill, resolving citizenship rights and establishing borders. The arrangement for that needs to be endorsed by a “super qualified majority” or at least 72% of the member states. Only after that would the E.U. turn to trade, and any trade deal will require the support of every member. The British would prefer to discuss the split and the future arrangement at the same time to win trade-offs, grant certainty to businesses and maintain support back home for Brexit.

  1. How long will the talks take?

Article 50 allows two years, which could be extended if all members of the E.U., including the U.K., agree. Both sides estimate that they really have until the end of 2018 to reach an accord, because the resulting deal would need to obtain the consent of the European and British parliaments. E.U. officials have said even in the best-case scenario it will take until early 2018 to work out the financial side of the split.

  1. What happens if no deal is reached?

Britain will leave the E.U. in two years regardless of whether it’s secured a new trade deal. In that case, disagreements may end up in the courts and U.K.-E.U. commerce will be exposed to World Trade Organization tariffs, following decades of duty-free trade. That could mean a levy of about 10% on cars alone. Davis says this is an “unlikely scenario” and not “frightening.” But it’s one Britain must prepare for, he says, although he conceded in March that the government hasn’t yet analyzed the economic fallout. John Kerr, the diplomat who wrote Article 50, says the chance of a breakdown in talks is more than 30%. Businesses worry about a “cliff edge” in which the U.K. falls or walks out of the E.U. with tariffs and without certainty over the future. May repeats no deal is better than a bad deal.

  1. What could help avert a ‘cliff edge’?

Without a trade deal, there is unlikely to be anything to break the fall over the cliff. However, the U.K. and E.U. could agree to a transitional phase in which the existing relationship remains in effect. Businesses would get time to adjust to any new rules, which May says should be phased in, or leaders would have more time to craft a fresh relationship. Barnier wants to wait to discuss the stopgap until the outlook is clearer. The question is whether the two sides can agree before businesses, especially banks based in the U.K., shift jobs and services to elsewhere in the E.U. Another concern for May is whether the E.U. might try to force the U.K. to remain under the oversight of the European Court of Justice.

  1. How will the U.K. untangle the EU’s laws?

The government plans to introduce the “Great Repeal Bill,” misnamed legislation given that it won’t repeal anything and is instead a cut and paste of E.U. law onto the British statute book. The aim is to give businesses and investors certainty. Future governments will be able to “amend, repeal and improve any law it chooses,” according to May. The House of Commons library estimates there are 899 E.U. directives and 5,155 regulations among almost 19,000 pieces of E.U.-related legislation currently in force. Ministers will also have to find appropriate U.K. bodies to take on regulatory roles currently held by E.U. agencies. A potential obstacle to all this is that the bill will include powers for ministers to change regulations as they’re transferred, something opposition Labour Party leader Jeremy Corbyn said he’ll challenge.

  1. How has the economy fared since the referendum?

The economy has performed much better than anticipated by the likes of the U.K. Treasury and the International Monetary Fund, both of which warned ahead of the referendum that a vote for Brexit could trigger a recession. The economy has been helped by a slump in the pound and strong consumer spending. But most economists still predict economic growth will slow in time as the parameters of Brexit take shape.

  1. Does May have any leverage?

The U.K. loses some power after invoking Article 50 because it starts the countdown clock, limiting the time available to strike a deal. May has argued it would be “economically rational” for the E.U. to sign up to a free-trade accord since Britons buy so many of its goods. She has warned that the U.K. could provide less security to the region or transform Britain into a low-tax, light-regulation haven for business. She could also try to exploit differences between European capitals.

  1. What about Scotland?

Scottish First Minister Nicola Sturgeon has used Brexit to declare she wants a second independence referendum to make Scotland an independent country and lawmakers in Edinburgh have backed her. In the 2016 Brexit referendum, Scottish voters chose overwhelmingly to remain in the E.U. and Sturgeon says they should have a chance to break with England sometime between the fall of 2018 and the spring of 2019. But May says “now is not the time” for another referendum and Sturgeon still needs permission from lawmakers in London to move forward.

  1. Is Article 50 irrevocable?

Once Article 50 is triggered, there’s no chance of Britain staying in the E.U., according to Justice Secretary Liz Truss. But Kerr said a country can change its mind “while the process is going on.” A court case is starting soon that may inform the debate.

  1. Why does all this matter for the rest of the world?

French presidential candidate Marine Le Pen is running on a Brexit-like platform of euro-skepticism. In the U.S., President Donald Trump’s administration has registered its dislike of multilateral organizations like the E.U. and may be tempted to offer the U.K. a generous free-trade deal. Russian President Vladimir Putin will likely welcome anything that divides and distracts the E.U. Finally, China will be following closely to see if the U.K. remains an attractive investment partner as it raises barriers with the rest of the E.U.


BREXIT: Full text of the Britain’s farewell letter

Related Topics:

U.K. Parliament Rejects Lords Amendments to Brexit Bill*

U.K. PM Bows to Pressure to Spell out ‘Brexit Plan’ Details*

Sharp Increase in British Jews Applying for Portuguese Citizenship after Brexit*

The Lies of Brexit*

Northern Ireland Activist Mounts Legal Challenge against Brexit*

E.U. Begins to Fracture post-BREXIT*

Brexit is a Blow to the Oligarchs*

E.U. Founders to Form Federal Union of European States*

E.U. Blocks Brexit with a €25bn Debt*

The Americans Declared Independence From Us. We Can Do the Same*

If the Noose is Still Tightening and, you Still Think It’s Austerity, the Former Governor of the Bank of England Will Tell You*

If the Noose is Still Tightening and, you Still Think It’s Austerity, the Former Governor of the Bank of England Will Tell You*

“Capital must protect itself in every possible way, both by combination and legislation. Debts must be collected, mortgages foreclosed as rapidly as possible.

“When, through process of law, the common people lose their homes, they will become more docile and more easily governed through the strong arm of the government applied by a central power of wealth under leading financiers.

“These truths are well known among our principal men, who are now engaged in forming an imperialism to govern the world. By dividing the voter through the political party system, we can get them to expend their energies in fighting for questions of no importance.

“It is thus, by discrete action, we can secure for ourselves that which has been so well planned and so successfully accomplished.”

Montagu Norman, Governor of The Bank Of England, addressing the United States Bankers’ Association, NYC 1924

NB: This quotation was reprinted in the Idaho Leader, USA, on 26th August 1924.

Governor of the bank of England, Montagu Norman talks to Ramsay Macdonald who has chosen, appropriately, to dress as an undertaker for the occasion

Governor of the bank of England, Montagu Norman/1st Baron Norman on your right talks to Ramsay Macdonald who has chosen, appropriately, to dress as an undertaker for the occasion

The biggest “question of importance” referred to in the most revealing quote above is:






The Montagu Norman quote is a CONFESSION OF TRUTH.




*“If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered…. I believe that banking institutions are more dangerous to our liberties than standing armies…. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.”

Thomas Jefferson: This quotation is often cited as being in an 1802 letter to Secretary of the Treasury Albert Gallatin, and/or “later published in The Debate Over the Recharter of the Bank Bill (1809).”



Related Topics:

The History of Your Enslavement

Protesting has Gone Flamenco, in Spain at Least*

Beyond anti- Austerity, from Paris with Love*

Politics as Therapy: They want us to be just Sick Enough not to Fight Back*

The Secretive Bank of England — Controlling the World’s Money Supply*

Hitler Was Financed by the Federal Reserve and the Bank of England*

Criminal Syndicate with Links to Terrorism Infiltrated Bank of England*

Bank of England Top-Secret E-mails Forwarded to Journalist on Financial Fallout while MP’s are Kept in the Dark*

London Sees Mass post-Brexit anti-Tory, anti-Austerity, anti-Racism Protest*

Bank Bail-outs Behind U.K.’s Collapsing Public Services*

Debt-ocracy: Enslaving Entire Nations and Peoples*

E.U. Picks Up Speed in the War on Cash*

Ten Reasons Why I Don’t Have a Credit Card*

Six Seconds to Hack a Credit Card*

Biometric Identification Control: What Will You Do?

Being Profiled for Economic Slavery*

Starvation Is an Imperial Resource for Britain*

The Indoctrinated West*


Indonesia Terminates All Business Relationships with JPMorgan after Downgrade*

Indonesia Terminates All Business Relationships with JPMorgan after Downgrade*

By Tyler Durden

We officially have a new definition of “thin-skinned”.

In what may be one of the most dramatic retaliations to a downgrade report, Indonesia’s government said it has terminated all business partnerships with JPMorgan Chase after the U.S. bank downgraded its outlook on stocks in Southeast Asia’s largest economy. The finance ministry announced it would stop using JPMorgan as a primary dealer and as an underwriter of its sovereign bonds, Robert Pakpahan, the ministry’s director-general for budget financing and risk management told reporters in Jakarta on Tuesday. The reason: Pakpahan said a November research report issued by the bank was not “accurate or credible.”

JPMorgan downgraded Indonesia’s equity market by two notches to underweight from overweight in a Nov. 13 report as a “tactical response” to the Trump election win. The bank also downgraded Brazil, while noting that both countries may provide a “better buying opportunity” later, Bloomberg reported.

Perhaps Indonesia’s anger will promptly blow off once the warning shot has been fired: at least as of this morning, JPMorgan’s business in Indonesia continues to operate as normal, the bank said in an e-mailed statement on Tuesday.

“The impact on our clients is minimal and we continue to work with the Ministry of Finance to resolve the matter,” it said.

The government doesn’t see it quite as innocently, however: any tax payments by Indonesian companies which were previously routed through JPMorgan will now be passed to the government via other banks, according to Bank Indonesia Governor Agus Martowardojo.

The biggest U.S. bank was part of a underwriting syndicate when Indonesia sold 3 billion euros ($3.1 billion) of bonds in June. However, the lender wasn’t listed as a member of syndicates for two more recent offerings denominated in yen and U.S. dollars, according to Bloomberg data.

The government’s action illustrates some of the difficulties in producing balanced research reports, said Alan Richardson, an investment manager at Samsung Asset Management in Hong Kong.

“I don’t think it will affect investor interest in Indonesia but it does reflect the difficulty of sell-side analysts to provide independent and objective opinions to their clients without upsetting the government officials and regulators,” Richardson said.

Meanwhile, JPM’s assessment appears to have been right: foreign investors sold a net $2.8 billion of Indonesian stocks and bonds last quarter as investors dumped emerging-market assets following Trump’s victory. That drove local markets and the rupiah lower, forcing policy makers to intervene to stabilize the currency.

For now Indonesia remains furious, and blames JPM for the recent market volatility: banks should take responsibility for economic reports that “could influence fundamentals and psychology,” Finance Minister Sri Mulyani Indrawati said Tuesday, when asked to comment on the termination of the JPMorgan relationship.

JPMorgan provides investment and commercial banking services to the public and private sectors in Indonesia, according to the bank’s website. It obtained an Indonesian banking license in 1968 in the name of Chase Manhattan, and opened a branch in Jakarta, followed by a representative office in 1978.

Curiously, in the aftermath of the last financial crisis, it was the rating agencies who got the bulk of the blame; that sellside equity research is now facing the proverbial “firing squad” when issuing negative research is rather troubling – this phenomenon is certainly not confined to the sovereign level – and indicates how banks, once caught with a Buy or Neutral rating on any given name, are loath to cut or downgrade, aware of the potential foregone future revenue opportunities as a result of telling the truth.


Related Topics:

Former Head of Morgan Stanley Indicted for Evading $45mn in Taxes*

Rothschild, Morgan and Stanley in Bitter Takeover Battle for Giant US Copper Mine*

America’s Biggest Banks are Closing Hundreds of Branches*

How to Contact the 17 Banks Funding the Dakota Access Pipeline*

Central Asian States are Reluctant to Make Friends with U.S. (a Wolf)*

US-Saudi Plague ISIS Reaches Indonesia? *

Indonesia: The Poor Die to Make the Rich, Richer*