China Demand?

The economic conditions are shifting rapidly in China.

More so than is commonly written about I suspect.

This report from the Real News gets into some of the reasons behind these shifts.


More at The Real News

Note please the lack of demand for all the housing and other construction that was done in the past decade.

There is a real-estate bubble in China that will make the North American one look like a bubble gum popping were it to continue to overheat and explode.

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LIE-MORE

In this blog I have written about the stage four cancer of the monetary system.

Now we are seeing more symptoms of this cancer.

The LIBOR rate scandal with some explanation for the common man.

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Not enough lipstick to make this pig look pretty anymore

Governments On Both Sides of the Atlantic Try to Put Lipstick on a Pig

pig needing lipstick

piggy waiting for lipstick

We noted yesterday that the big banks have criminally conspired since 2005 to rig $800 trillion dollar Libor-based market.

Barclay’s chairman says that the Bank of England gave explicit approval for the manipulation.

A former Barclay’s executive – who was close to the Libor-setting manipulation – told the Daily Mail that Barclay’s manipulated Libor to make the bank look healthier than it really was, and , and the cover-up led to a slow policy response which prolonged the financial crisis.

This appears to be very similar to what happened in America.   As I noted last year:

The Tarp Inspector General has said that [then-Secretary of the Treasury Hank] Paulson misrepresented the big banks’ health in the run-up to passage of TARP. This is no small matter, as the American public would have not been very excited about giving money to insolvent institutions.

(Paulson also threatened martial law if Tarp was not passed.)

As we reported last year:

[All of the big banks were] insolvent in the 1980s, but the government made a concerted decision to cover that up.

Financial writers such as Mish and Reggie Middleton pointed out in late 2007 and early 2008 that B of A was again insolvent.

Nouriel Roubini noted in January 2009 that the entire U.S. banking system is “bankrupt” and “effectively insolvent”:

“I’ve found that credit losses could peak at a level of $3.6 trillion for U.S. institutions, half of them by banks and broker dealers,” Roubini said at a conference in Dubai today. “If that’s true, it means the U.S. banking system is effectively insolvent because it starts with a capital of $1.4 trillion.”

***

“The problems of Citi, Bank of America and others suggest the system is bankrupt,” Roubini said. “In Europe, it’s the same thing.”

Indeed, the American government’s zero interest rate policy is very much like the British Libor manipulation scandal … it’s nothing but an attempt to breathe life back into the insolvent banks, at the expense of the taxpayer.  And see this.

And the “financial reform” laws passed in the wake of the crisis have, in some ways, actually weakened regulations of the financial markets, allowed the big banks to get a lot bigger, and have intentionally allowed fraudulent accounting (and see this).

Likewise, the “stress tests” in both Europe and America have been a total scam … a naked attempt to put lipstick on a pig to cover up the fact that the big banks are insolvent.

By choosing the big banks over the little guy – and failing to rein in the fraud which caused the crisis in the first place – the governments on both sides of that Atlantic are dooming both the financial system and the people to failure.

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Euro troubles persist

During the U.S. Civil War, the future of the Union was challenged by the secession of the South. The decisions were made on the battlefields where men were willing to die either for the Union or to break away from it. Who will die for the European Union? And what will hold it together when its decisions are unpopular? The concept of extended integration can work, but not without the passion that moves a Greek or a German to protect his and his country’s interest. Without that, the glue that holds nations together is missing in the European Union. The greater the integration, the more this will reveal itself.

Read more: Spain, Debt and Sovereignty | Stratfor
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Money for Nothing

The German government is now getting buyers (in large numbers) for their ZERO PERCENT (0%) return bonds. 

Essentially they are offering to keep your currency from vanishing … like any of the fiat currencies have any hope of NOT doing a disappearing trick in the next decade.

Indeed the story has elements that say the coming bond issue will include NEGATIVE real returns, just imagine, we promise to loose less than you will anywhere else!

More on Zero Hedge

Wall Street Journal

Irish Times

Alternative Economics

The Guardian

Bloomberg

Tired of these sort of return tales?

Contact us: info@rsreal.com; there are alternatives to watching your money (currency) vanish ….

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Ooops, there goes the system … again?

Once again the financial system is at risk, as the principle regulators in the US Congress are unable to resolve their conflict of interest with those ‘too big to fail’ institutions.

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Financial Ponzi Scheme : sorting it all out

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Greek exit from EU now openly debated …

According to Guardian:

The fate of Greece is, on Tuesday night, in the hands of the leader of a far-left party who launched the quest to form a government by declaring the country could no longer commit itself to the terms of an international loan agreement keeping its economy afloat.

After accepting a mandate to create a multi-party administration following inconclusive elections, Alexis Tsipras sent shockwaves through financial markets by announcing the pledges Athens had made to secure rescue funds from the EU and IMF were null and void.

“The popular verdict clearly renders the bailout deal null,” said the politician, whose stridently anti-austerity coalition of the radical left, known as Syriza, sprung the surprise of the weekend’s poll, coming in second with 16.8% of the vote. “This is an historic moment for the left and the popular movement and a great responsibility for me.”

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Return of Putin as Russian President

While most will agree that Vladimir Putin really did not leave as principle leader of the Russian Federation, his return to the seat of President will be seen as a re-emergence of his personal style.

Putin has had to deal with many changes in the administration of the Russian Federation, there are signs that his recent return will not be heralded as beneficial to many of the common man.  I have seen signs that a real desire is present to engage in the needed market reforms and permit a more grass-roots form of capitalism (as might have been seen in the west in the 1950’s) to take hold.

What is faced by the renewed presidential cabinet is a more united front against such market reforms by the Oligarchs and others dominating raw materials and certain key manufacturing sectors.

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No REAL financial regulations here …

The continued delay and blocking tactics of the Bankers opposed to actual regulation of their industry comes as no surprise.

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