Tag Archive | economics

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:

WHO GETS TO CREATE MONEY FOR A NATION? ….. ITS GOVERNMENT, INTEREST FREE, OR PRIVATE BANKING CORPORATIONS, THAT “LEND” THE MONEY TO THOSE GOVERNMENTS WITH INTEREST ATTACHED.

AND BURY US ALL IN TOTALLY UNPAYABLE DEBT.

BANKS HAVE STOLEN OUR GOVERNMENTS.

THEY OWN THEM.

THEY ALSO OWN ALL THE MAINSTREAM MEDIA OUTLETS, THE INTELLIGENCE SERVICES AND THE GLOBAL CORPORATIONS THAT, AS JEFFERSON* WARNED, ARE MERE INSTRUMENTS OF THIS MONSTROUS POWER.

The Montagu Norman quote is a CONFESSION OF TRUTH.

KNOW THIS.

KNOW IT FIRST AND LAST.

BROADCAST THIS TRUTH. EDUCATE YOURSELF AND EVERYONE YOU KNOW ABOUT THE PRIMARY MATERIAL CAUSE OF HUMAN WOES.

*“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).”

Source*

 

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.

Source*

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*

‘Pay As You Go’ Gold Launched by Britain’s Royal Mint*

‘Pay As You Go’ Gold Launched by Britain’s Royal Mint*

 

Britain’s Royal Mint is joining the world of crypto-currency as it prepares to offer ‘digitalized gold’ in 2017 turning its on-site bullion vault into a virtual market-place

Britain’s Royal Mint is joining the world of crypto-currency as it prepares to offer ‘digitalized gold’ in 2017, turning its on-site bullion vault online. Royal Mint Gold (RMG) and derivatives marketplace, CME Group are collaborating on a “digitalized gold offering” that will be able to be traded on what’s called a block-chain, a database that will see liquid gold become virtual.

The future of gold trading is a whole lot easier, more cost effective and secure with Royal Mint Gold! More: https://t.co/Q47Fy4oxrx #RMG

— The Royal Mint (@RoyalMintUK) November 29, 2016

“A good way to look at this project is very similar to pay-as-you-go products in mobile telephony. So in other words, unless you physically buy or sell the product itself, there is no charge or ongoing charge for holding it,” Win Wijeratne, CFO of the Royal Mint said.

The digital gold platform will operate for 24 hours a day, 365 days a year.

“The Royal Mint will place large gold bars into its secure vaults. We will then create the equivalent amount of RMG digitally and the signed ownership of these on the block-chain. Once this is done, holders of RMG will be able to trade them peer-to-peer using a new platform that has been created and will be run by CMS group,” Win Wijeratne explains.

At over 1,000 years old, the Royal Mint is the only institution licensed to issue coins in the UK, but clearly not too old to change its gold spots.

Source*

Related Topics:

New Currency for The United States Republic??? – Backed by Gold – Ready for distribution??

Zimbabwe to Start Issuing Bond Notes Today*

Financing the New World Order*

Brexit: 2 Minute Pound Crash ‘Suspicious’ Says Bank of England*

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

U.K. Issues First Plastic Banknotes for England and Wales*

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

Global Elites Are Getting Ready To Blame You For The Coming Financial Crash*

Behind the Global Financial Reset*

Luxembourg unit of Rothschild Under Criminal Investigation Over Missing $4 Billion In Global Corruption Probe*

India’s PM Admits NWO Plan towards becoming “Cashless Society”*

India’s PM Admits NWO Plan towards becoming “Cashless Society”*

 

By Tyler Durden

Well who could have seen this coming? Just as we noted, the slippery slope towards full government control in a cash-less society is where Indian PM Modi is heading following his chaos-creating demonetization efforts of the last two weeks. While massive opposition protests are planned tomorrow, Modi remains indignant, as Reuters reports, “we can gradually move from a less-cash society to a cashless society…this is the chance for you to enter the digital world.”

Indian Prime Minister Narendra Modi on Sunday urged the nation’s small traders and daily wage earners to embrace digital payment channels, as a cash crunch following the government’s surprise ban on high-value bank notes drags on.

Modi, speaking in his monthly address on national radio, said the government understands that millions have been affected by the ban on 500-rupee and 1000-rupees notes, but defended the action.

“I want to tell my small merchant brothers and sisters, this is the chance for you to enter the digital world,” Modi said speaking in Hindi, urging them to use mobile banking applications and credit-card swipe machines.

“It’s correct that a 100% cashless society is not possible. But why don’t we make a beginning for a less-cash society in India?,” Modi said. “We can gradually move from a less-cash society to a cashless society.”

More than 90% of consumer purchases in India are transacted in cash, Credit Suisse estimates. While a smartphone boom and falling mobile data prices have led to a surge in digital payments in recent years, the base still remains low.

Modi urged technology-savvy young people to spare some time teaching others how to use digital payment platforms.

But, as GoldMoney.com’s Alasdair Macleod explains, the economic consequences of Mr. Modi’s action are far more significant…

Two weeks ago, India’s Prime Minister Narendra Modi demonetised an estimated 86% of rupees in circulation, offering conversion into a bank account or into smaller currency notes until 31 December, after which these notes will have no redemption value.

Together with forgeries in circulation, it could be over 90% of all circulating money. The terms of redemption are so inconvenient for anyone other than black-marketeers that for all purposes $50bn equivalent of rupees have been eliminated from the economy at a stroke, pending the introduction of new currency notes.

The sadness in all this is that Modi should have foreseen the extent of the disruption to the poor and rural communities, but has obviously forgotten the hard lessons of life learned in his youth as a lowly chai wallah. It could be that the Reserve Bank went along with it as a government puppet, consoling itself with the thought it would be a good way to write off obligations, believing a significant quantity of notes is likely never to be redeemed by black-marketeers and tax evaders. It effectively reduces the central bank’s obligations to the private sector at the expense of those the state likes least. However, the $10-20bn equivalent the state will make from it is less important than the disruptive economic effect and the likely impact on the rupee’s future purchasing power.

The purpose of this article is to look at the economic consequences of Modi’s action. Initial estimates by western macroeconomists of the effect on GDP seems to be benigni. It could be because their contacts in India are typically the more highly-paid city bourgeoisie, who rarely spend cash except for tips, using bank and credit cards more normally for everyday purchases. These people would almost certainly welcome moves to bring illegal trading under control and extend the income tax base, playing down the negatives. However, the cash immediately removed amounts to about 2.5% of GDP, eventually to be replaced at an unspecified time in the future by the new notes bearing a portrait of the Mahatma. But while these notes are shortly to become available, it could take months to convert ATMs and ensure their widespread availability.

If the long-term consequences will be to bring unrecorded transactions into the GDP statistic, some western macroeconomists postulate recorded GDP could end up rising faster than anyone expected before Modi’s action. This misses the point. Banning high denomination notes worth as little as $7.50 equivalent to be replaced by the new Ghandi notes has been a major disruption in most Indians’ lives, particularly for the rural population. Removing everyday money is like trying to run an engine without any oil in it. It seizes up, which is what the Indian economy is certain to do. India’s economy is therefore likely to face a short-term slump, which government economists will counter by reflating, in other words by increasing the quantity of money. It will do the economy no good, but nominal GDP, which is not the same thing, will eventually rise, to the satisfaction of the central planners.

Behind the confusion in government economists’ minds is a false conviction that GDP records the performance of an economy. This is wrong. GDP is just a money-total at a previous point in time, and no more than that. It is not a measure of economic progress or regress. A change in GDP reflects only a change in the quantity of money in the economy, so it is perfectly possible for an economy to contract, or even collapse, while nominal GDP rises. Not only is this fatally misunderstood by today’s economists, but this outcome has become far more likely for India, and will simply end up generating more monetary inflation from the banking system. Behind the Indian authorities’ poor grasp of the economic consequences of their actions are misconceptions common with establishment economists everywhere. However, it is likely that central bankers in India and elsewhere are at least vaguely aware of the long-term danger of increasing price inflation. But the consensus in banking circles is that more money and credit may be required to stave off recession, and even systemic risk. And in the case of systemic risk, cash is a danger because it allows the public to expose a bank’s insolvency. If only cash was somehow replaced, there could perhaps be greater control over economic and systemic outcomes.

All the signs of this loose thinking are there. We keep on hearing of central banks planning to do away with cash, and Modi’s action is consistent with this standpoint. His government is not only trying to eliminate black markets, but it is also brutally trying to eliminate economic dependence on physical cash. It rhymes with the direction of travel for central bank policy in the advanced economies as well as in the emerging.

Doubtless, for this reason, central banks everywhere will be watching the Indian experiment closely. But we can easily guess what their analysis will conclude. If the experiment succeeds, it will encourage them to proceed with their own plans to digitise money and dispense with the folding sort. If it doesn’t, failure will be deemed to be due to the peculiarities of the Indian economy and the failure of the Reserve Bank to implement policy effectively, so they will proceed with their plans anyway.

However, hopes that the elimination of cash will give central banks greater control over inflationary outcomes appear to be badly misplaced. Not only does history tell us the exact opposite is the case, and that the reality is central banks have no control over price outcomes, but subjective price theory also confirms. The pricing power of money is not and never has been in the control of central banks; it is a matter only for the users of money in their day-to-day transactions. Money’s use as money is wholly down to its public acceptance as money, as experience proves, and central banks’ abuse of this trust is ultimately dangerous, as so often demonstrated. For example, despite government diktats and heavy-handed enforcement, Zimbabwe’s currency has become at best, to put it politely, a replacement for another form of paper whose vital supply has been disrupted. The digital version has even less value, because it has no alternative use.

India and Gold

We must return to the specific subject of India, and the likely outcome of Modi’s clumsy attempt to eliminate means of payment using cash. It is almost certainly going to backfire. Indians have little respect for government as it is, and this action will only convince them with renewed purpose to have as little to do with the government and its money as possible. When the new Gandhi notes come into circulation, they will likely be rejected as the preferred money by growing numbers of a rightly suspicious public. This means that the rupee’s purchasing power will diminish more rapidly than if Modi had not disrupted what had become a relatively stable monetary situation.

Ordinary people in their actions are well ahead of western financial analysts, having quickly anticipated this outcome for themselves. Despite longstanding government attempts to persuade them otherwise, they are rushing to convert worthless rupees into the one form of money they have trusted for millennia and over which government has no control, gold. They know that priced in rupees, gold will be more expensive in the months to come, so anything that can be encashed will be encashed for gold, not rupees.

This is the reason why gold in India is now trading at a substantial premium to international prices. The Indian government restricts its supply because it has always seen gold, correctly, as a challenge to its own fiat money. Accordingly, the central planners condemn gold as being more appropriate to history than today’s economic environment. And having dismissed its relevance as money and as a superior store of value to the rupee, they see gold imports as unproductive hoarding. The government and central bank also appear to make the mistake of believing that if gold imports were eliminated, the balance of trade would improve accordingly. The result is various acts and regulations since the Gandhi era have only encouraged gold smuggling. The importation of gold has never halted, and responding to every twist and turn of monetary policy has increased over the long-term, and will continue to do so following Modi’s clumsy action.

The impact of government ineptness on the gold market is likely to be considerable. After a period of relative currency stability, gold demand, at the officially recorded level, had in fact declined earlier this year. The premium on gold was less than the new sales tax, putting many jewellers out of business, because they could not compete with smuggled gold, which bore no tax and attracted a lower premium than the sales tax. More jewellers will probably be put out of business by this latest action. Smuggling will consequently rise and rise, particularly if the rupee’s purchasing power declines because of escalating public distrust of it as money.

The central banking community, headed by the Bank for International Settlements, was concerned at Indian gold demand increasing at a time when Chinese citizens were absorbing most of the world’s free supply of newly-mined and scrap gold. It is almost certain that the appointment of Raghuram Rajan in September 2013 as Governor of the Reserve Bank of India had much to do with the urgency to bring Indian demand for gold under control, because he was and still is the BIS’s establishment man. He has generally failed in this mission, and his tenure was not renewed for reasons unknown, other than he preferred to return to the calmer pastures of academe and his Vice-Chairmanship of the Bank for International Settlements.

This is not characteristic of a career central banker at the height of his powers and influence. Perhaps Rajan realised his attempt to manage gold demand would never work, and Modi was proving too dangerous for his own legacy at the Reserve Bank to survive unblemished. He was recently quoted as saying that the RBI’s ability to say no to the government must be protected, some months after he declined the opportunity to serve a second term. Was this a reflection of something that happened?

In conclusion, the surprise money-grab by the Indian authorities intensifies the public’s perception of a corrupt, overly-bureaucratic, and ineffective government. The public’s suspicion that government paper money is ultimately worthless will have, in its collective mind at least, gained immeasurable credence. An accelerating decline in the purchasing power of the rupee is the most likely economic consequence of Mr Modi, ultimately destabilising for both the country and his government.

As we concluded previously, on a final philosophical point. Our entire monetary system depends on trust. A banknote is a piece of paper that says the RBI will give the bearer another similar piece of paper, or make an entry in an electronic ledger for that amount. The system works because everybody believes that those pieces of paper will be accepted by everybody else and therefore, money serves as an useful medium of exchange. This move has shaken that trust. Expecting a nation used to 90% cash transactions to ever trust government-sponsored digitzation is beyond farce and financial repression, it is monetray larceny.

One final question, will the police be enlisted to beat the population into a cash-less society also?

Source*

Related Topics:

The Rich are Begging the Poor for Help in India’s War on Cash*

Islamic Crypto-currency E-Dinar Coin Released*

A New Digital Cash System was Just Unveiled at a Secret Meeting for Bankers In New York*

Ban Cash to Help Central Banks stinks of Total Control – NWO’s Cashless Society*

You Pay more while Banks Profiteer in a Cashless Society…that’s the Convenience*

Cashless Society: Push of a Button can Empty Your Credit Card Account*

$45 Million Stolen from Banks Worldwide Shows How Easy It is in a Cashless Society*

Hurricane Sandy Challenges a Cashless Society!

Financing the New World Order*

 

European Parliament Demands Legal Scrutiny of CETA’s ‘Corporate Court’ System*

European Parliament Demands Legal Scrutiny of CETA’s ‘Corporate Court’ System*

By Oliver Tickell

 

A group of 89 MEPs have tabled a motion that the proposed Investor Court System (ICS) in CETA, the E.U. Canada trade deal, should be subjected to full and proper legal scrutiny by the European Court of Justice before coming into force.

The ICS would enable corporations to sue participating governments for passing laws or regulations that could harm their profits, for example by imposing new restrictions on pesticides, or raising labour standards.

The 89 ‘rebel’ MEPs say the controversial provisions need to be scrutinised to ensure that they are compatible with existing E.U. treaties and laws. But parliamentary leaders are attempting to block their initiative.

In their latest move, the European Parliament’s Committee of Presidents have pushed forward the vote on the motion to Wednesday 23rd November, and are refusing to allow any debate about it to take place in parliament.

It’s also been reported that the some of the MEPs who tabled the motion have been ordered by party leaders to remove their names from it.

‘A chilling effect on governments seeking to improve social and environmental standards’

However the 89 MEPs who tabled the motion say that unless MEPs are allowed time to debate the proposal and articulate their concerns about the legality of ICS, the proposal is much less likely to succeed. A previous report on the proposed Investor Court Systemalso warned that it ”could dangerously thwart government efforts to protect citizens and the environment.”

“The system of secret, corporate courts proposed within the CETA trade treaty represents a massive power grab and it is particularly shocking that our democratic representatives at Westminster are being prevented from debating or voting on this trade treaty”, said Molly Scott Cato, Green MEP for South West England and Gibraltar, one of those who tabled the motion.

“The courts are likely to have a chilling effect on governments seeking to improve social and environmental standards, whether this is about controlling the use of antibiotic use on farms or ensuring that we have worker representatives on boards. The slogan ‘Take back control’ is still ringing in our ears but we need to pay close attention to the question of who is taking back control from whom?”

Specific criticisms of the proposed system include:

  • Under a comparable treaty, Canada has been sued 26 times, mostly for trying to introducing better environmental regulation. Billions of dollars are currently sought from Canada. In many ways, CETA gives corporations even clearer powers to sue.
  • Canadian corporations have launched 42 cases against other governments, primarily by extractive firms, and currently have $20 billion in outstanding claims against governments including the US.
  • Financial regulation is particularly under threat under CETA which hands big banks more power to challenge financial regulation they don’t like
  • European states also risk being sued by thousands of the biggest US multinationals through their subsidiaries in Canada.

Nothing Green about CETA!

Meanwhile a new study by green group Transport and Environment (T&E) and the  legal NGO ClientEarth points out that CETA’s ‘environment chapter’ – unlike the ICS provisions – is not legally binding on Europe and Canada. Moreover there are no enforcement mechanisms for its already-weak provisions.

“CETA is often sold as a gold standard for all future E.U. trade deals, yet it sets the bar for environmental protections very low”, according to Cecile Toubeau, T&E director of better trade and regulation.

”MEPs and national parliaments must demand more from a trade deal that was negotiated in secret. To even think about calling CETA a gold standard, we need to see a legally binding environment chapter that can be enforced with sanctions.”

She added that the ‘regulatory cooperation’ section focuses on trade barriers alone and not improving social and environmental policy, according to the analysis. As such, if a country attempts to raise the level of environmental regulation, it could be subject to legal action trade grounds by a country that has chosen not to cooperate, Toubeau explained.

The report also slams CETA’s ICS provisions because it would

”only hear cases brought by corporations, not by citizens or their governments”.

As an example of its detrimental effect, it cites the possibility that measures such as policies favouring renewable energy or laws to de-carbonise transport fuel could create emormous liabilities to corporate litigants.

“The E.U.-Canada Comprehensive Economic and Trade Agreement is not a progressive deal”, stated Laurens Ankersmit, E.U. trade and environment lawyer at ClientEarth.

”For the first time in E.U.-Canada relations, the whole of Europe will be exposed to claims by Canadian investors before investment tribunals. A few weak provisions on environmental commitments cannot mask that this agreement will serve business, not the planet.”

Underhand and anti-democratic

“The fact that political leaders in the E.U. are trying to prevent that from taking place shows how desperate they are to inflict this toxic trade deal on the people of Europe”, said Guy Taylor, trade campaigner at Global Justice Now and a prominent critic of CETA and other ‘free trade’ deals.

“It’s an underhand move that is sadly entirely in tune with the lack of transparency, accountability and democratic process that has characterised these negotiations. This is not democracy, this is politicians pushing toxic trade deals through at breakneck speed with no debate and at great risk to our legal systems. We need all our MEPs to support the very sensible demand that the corporate court system should be scrutinized by legal experts.

He added that the corporate court system embodied in CETA would ”have enormous ramifications for current legal systems across Europe”. It’s therefore ”an entirely sensible and appropriate proposal that it should be subject to thorough scrutiny from legal experts at the European Courts of Justice.”

“CETA would open up our government to a deluge of court cases by North American multinational corporations and investors. It presents a threat to our ability to protect the environment, to protect the public and to limit the power of big banks. It’s thoroughly undemocratic and must be stopped.”

And he warned that the U.K. would continue to be bound by the terms of CETA even if it leaves the EU for years to come.

”If CETA is pushed through like this it will still impact the U.K. regardless of when Brexit happens.”

Source*

Related Topics:

E.U. Council Decides to Sign CETA Trade Agreement and Celebrate with Canada*

CETA Deal About to Be Ratified – Investors to Attack Public Interest Safeguards*

CETA: Your Life, Their Choice

Financing the New World Order*

Financing the New World Order*

Financing the New World Order*

The yuan was officially added to the IMF’s SDR basket today, which may not be world-shattering in and of itself. But when combined with the revival of SDR-denominated bonds there can be no doubt that the central bankers are making their play for a global currency. Unfortunately, most people have no idea what SDRs are, let alone the role they are going to play in the formation of the global government. Get up to speed with The Corbett Report’s latest article, “SDR World Order.”

By James Corbett

I’m not sure how to break this to you, but it appears the world is ending this weekend. Or at least that’s what you’d believe if you were reading certain corners of the internet.

As you may have already heard, the UN is “taking over the internet” this weekend. But as you’ve also heard if you follow The Corbett Report, that is a completemisrepresentation of what is really happening. Worse, hyperbole about a “UN takeover” of the internet obscures the real solution to ICANN and the centralized DNS system.

But there’s another “end-of-the-world” event taking place this weekend that you might not have picked up on: the SDR.

That’s right, the IMF is formally adding the Chinese renminbi (aka the yuan) to their “Special Drawing Rights” basket on Saturday, October 1st. The move boosts the yuan to the status of global reserve currency alongside its basketmates, the pound, the euro, the yen and the dollar. At 10.92% it will be the third highest-weighted currency in the basket, behind the euro at 30.93% and the dollar at 41.73%.

For those who missed my previous reporting on the SDR and the significance of the yuan’s inclusion, here’s the primer:

  • The SDR is not a currency, but a potential claim on dollars, yen, euros, pounds, and now yuan.
  • It is issued by the IMF and held (and traded) as a “supplementary reserve asset” by central banks.
  • There are 204 billion SDRs outstanding, equivalent to $285 billion or about 2.5% of total global reserves.

The upshot of the SDR is that it provides liquidity for global transaction settlement in times when dollars and gold are in scarce supply. Inclusion of a currency in the SDR basket means that there is a built-in demand for that currency as central banks tend to match their currency holdings to the basket’s weighting, meaning that central bankers around the world are now (or have already) adjusted their aggregate holdings of yuan to about 10.92% of their portfolio. With $11.6 trillion of reserves globally, that equates to over $1 trillion worth of yuan being held in central bank coffers around the world.

More than that, the move is expected to boost investment in the yuan from both FX reserve managers and global portfolio managers. The FX inflows alone have been estimated at as much as $3 trillion in the coming years, with onshore bond buying accounting for a further $1 trillion of expected foreign investment.

Some outlets are hailing this as the largesttransformation of the global monetary order since WWII.

Others, like Barron’s Chi Lo, are putting a wet blanket on that hyperbole. In an article titled “What Now for China as Renminbi Joins SDR?” Lo argues that much of the re-balancing of global reserve portfolios have already been completed, and would have only amounted to an extra $31 billion of demand for the yuan, a drop in the bucket of global liquidity. And global investors, he says, will not base their investment decisions on China’s SDR status, but on China’s commitment to the structural reforms which have been put on the back burner since the yuan achieved SDR status:

“SDR inclusion of the renminbi is not relevant to the portfolio re-balancing decision (to increase the weighting of renminbi-denominated assets) of international investors. The impact on global portfolio decisions will come from foreign investors’ assessment of China’s fundamental outlook, the opening of China’s capital account and the decision by international index providers, such as MSCI, to include Chinese A-shares in their global indices.”

So who’s right? Is this the dawn of a new monetary order, or a blip of little significance in and of itself? Well, in a weird way perhaps both are right. China’s SDR inclusion is not going to turn the world upside-down overnight. And if it was just the inclusion of one more currency in the global reserve basket (and only 10% of the basket at that), then this wouldn’t be significant all by itself. But while you were sleeping another development came along that gestures to the potentially transformative nature of this SDR makeover.

In August the World Bank announced to relatively little fanfare an historic bond issue: The International Bank for Reconstruction and Development (IRBD), one of the five institutions under the World Bank umbrella, would sell nearly $3 billion worth of SDR-denominated bonds. And the currency of settlement? The Chinese yuan.

SDR-denominated bonds were flirted with decades ago, most recently in 1981, but the market for SDR bonds did not develop and they soon went the way of the dodo. But now, lo and behold, 35 years later they’re making a comeback, right in the heart of the world’s rising economic dragon.

The issue, which went ahead on August 31st, serves a mundane, practical purpose: It allows Chinese investors to dabble in different currency assets without investing abroad. But at the same time it serves a much bigger purpose. In attempting to revive the long-dormant SDR bond market, China is tacitly backing the SDR as a reserve currency unto itself. Not a mere claim that is redeemed in other currencies by central banks in need of liquidity, but a settlement currency in and of itself.

As I explained before, this has been Beijing’s plan since the 2009 crisis: not to have the yuan replace the dollar as the global reserve, but to have the SDR replace the dollar. This allows the Chinese government to avoid having to liberalize the yuan or ease up on its rigid capital controls, but still gives it a seat at the table in a new global monetary order while simultaneously dethroning their best frenemy, the US. It’s win-win-win for China and, more importantly, win-win-win for the globalist oligarchs who want to bring in a New World Order of globally-administered currency.

As The Epoch Times puts it: “This is the first step toward one world currency.”

And guess what? It’s been in the planning for years, openly discussed in the central bankers’ white papers, decision documents and conferences, but conveniently unreported by the media and completely overlooked by the public.

In March 2009, as the world was still reeling from the Global Financial Collapse, Zhou Xiaochuan, the Governor of the People’s Bank of China, published an essay on March 23, 2009 in an essay bluntly titled “Reform the international monetary system.” In it, he argued that the world could no longer afford to be tied to the US dollar and the vagaries of the American financial system. Instead, it needed to be presided over by those trustworthy angels at the IMF:

“Compared with separate management of reserves by individual countries, the centralized management of part of the global reserve by a trustworthy international institution with a reasonable return to encourage participation will be more effective in deterring speculation and stabilizing financial markets. The participating countries can also save some reserve for domestic development and economic growth. With its universal membership, its unique mandate of maintaining monetary and financial stability, and as an international ‘supervisor’ on the macroeconomic policies of its member countries, the IMF, equipped with its expertise, is endowed with a natural advantage to act as the manager of its member countries’ reserves.”

And in case that wasn’t clear enough, Zhou also wrote that: “The SDR has the features and potential to act as a super-sovereign reserve currency.”

The very next year the Bank for International Settlements (yes, that Bank for International Settlements), the European Central Bank and the World Bank jointly organized the Third Public Investors Conference, a chance for 80 central bankers, wealth fund and pension fund managers to hobnob at the BIS’ headquarters in Basel and discuss their world domination schemes. The results of that conference were collected in an edition of “BIS Papers” and published on the BIS website. One of those papers, penned by George Hoguet and Solomon Tadesse of State Street Global Advisors, discussed “The role of SDR-denominated securities in official and private portfolios” and predictably pimped the revival of SDR bonds that we are currently living through:

“An investor can synthetically replicate the weights of an SDR-denominated bond, but a security denominated in SDRs is self-rebalancing and is likely to minimize rebalancing costs. Additional research, particularly on the coordination problem (which limits liquidity) and operational issues, including settlement, can facilitate the development of an SDR-denominated bond market. Williamson (2009a) suggests that greater private use of the SDR could possibly facilitate greater official use, including the pegging of currencies to the SDR rather than to a basket of currencies or to some bilateral exchange rate.”

In other words, SDR bonds create the market for SDRs generally and legitimate their use as a settlement currency in their own right.

Now, six years later, here we are with the World Bank helping China issue SDR-denominated bonds. This is the real reason that this bond issue is happening at all. As The Epoch Times points out:

“For the IBRD, there is no advantage because it is borrowing in strong currencies and getting paid in a relatively weak one.”

No, this is not about some wonderful new way for the World Bank to cheaply finance its bond issues; it is entirely about legitimizing the role of the SDR on the world stage as a potential world currency.

It remains to be seen whether this strategy will be successful. The first bond issue was a success, with a bid to cover ratio of 2.5 and 50 institutional investors—from central banks to domestic banks, brokerages and insurance companies—bidding on the instruments. But ZeroHedge quotes a fixed-income fund manager in Hong Kong who was not so impressed by the auction: “We are not interested in SDR bonds and we can’t see why Chinese investors should want these bonds since they can easily buy much higher yielding bonds in China.”

Whether SDR bonds will take off depends completely on whether the central bankers can convince the financial world of the benefits of scuttling the dollar reserve system. That will take some concerted effort, which is why we should expect to see an increase in stories raising awareness about SDRs and their potential utility in the coming years.

In that sense, the spate of stories this weekend about the yuan’s SDR inclusion may not be so much the end of the world as the first wave of propaganda getting people ready for the end of the world.

Source*

Related Topics:

China and NWO

Behind the Global Financial Reset*

The U.S. is At the Centre Of The Global Economic Meltdown*

The Global ‘War on Cash’: A Country by Country Guide*

Agenda: Redistribution of Global Wealth behind Global Warming Alarmists*

Global Bankster Mafia Caught Rigging Markets to Destroy Middle Class*

U.S. and U.N. Power Hand-Over or Hostile Take-over*

CETA Deal About to Be Ratified – Investors to Attack Public Interest Safeguards*

President Putin has Banned Rothschild Family from entering Russian territory “under any circumstances”*

President Putin has Banned Rothschild Family from entering Russian territory “under any circumstances”*

Russian president Vladimir Putin recently reminded his cabinet of officials that his administration paid off the countries debt to the Rothschild’s monopoly overseen by the international bankers. Putin reportedly “grabbed them by the scruff of the neck and kicked them out Russia’s back door,” proverbially speaking that is.
This meeting is said to have been an intense one. With Putin pounding his fist on the table and vowing to destroy the “New World Order.”

They do not own the world, and they do not have carte blanch to do whatever they want. If we do not challenge them there will be other issues. We will not be bullied by them,” Putin explained.

For a long time, the Russian economy was under the control of these powerful elitist interests. In fact, the Russian revolution was bankrolled by Wall Street and the City of London.

Early in his presidency Putin pursued a policy of unification in Russia. He ordered the arrest of the Rothschild billionaire oligarch Mikhail Khodorkovsky who had made Rothschild, Henry Kissinger and Arthur Hartman all directors of the Open Russia foundation.

Putin is a well rounded leader in many areas, so it comes as no surprise that he knows precisely what is going on behind the curtain and who has been pulling the strings in major events throughout modern history.

Now they want to plunge us into World War III and Putin, in a move foreign to politics, has openly explained the dangers to the media and asked them to share the information with the people… Something U.S. politicians would never do, since they have a police of keeping the local population in the dark.
The New World Order wants Russia back under their dominion which is why they are after Syria, and before it Crimea. They want to encircle Russia and then overthrow them. They are doing the same thing to China right now too.

This doesn’t mean Putin does not have his own ulterior motives and can be fully trusted. But at this point in time he looks to have found himself playing the role of underdog fighting for people all over the world who want to be free from neo-colonialism, imperialism and the Rothschild evil influence.

Source*

Related Topics:

Russia Says No to One-World Government*

Hungary Becomes First European Country to Ban Rothschild Banks*

Top Rothschild Bankster Pushes Corrupt Communist to Lead U.N.*

Rothschild Billion Dollar Money Laundering Plot in Africa*

Rothschild Crime Syndicate in Israel *

Rothschild Bank Now Under Criminal Investigation*

Luxembourg unit of Rothschild Under Criminal Investigation Over Missing $4 Billion In Global Corruption Probe*

Baron Rothschild Indicted in France for Fraud*

Say Hi to the Head of your NWO Nightmare Baron Jacob Nathaniel Rothschild*