Central Banks Made Government Debt the Riskiest Debt of All Time!


End of Everything

The central banks have risked it all and lost. They have reached the point of no return. The Fed decided not to raise rates, which are desperately needed to prevent a collapse in pensions and insurance companies, and merely froze like a deer in headlights. The superficial analysts who think lower rates are good for the stock market are blinded by their own stupidity. The theory that low rates will encourage people to buy stocks is brain-dead and demonstrates that these people are incapable of comprehending how the economy functions.

CALLMONY-MA

We have taken simple correlations of interest rates and the stock market and discovered something in plain sight. The market has NEVER peaked with the same level of interest rates in history. WHY? It is not the empirical level of interest rates that matters, rather it is the rate of interest that is a factor of expected inflation. Therefore, if the expectation of gain is greater than the rate of interest, there is profit in borrowing. If the expectation is below the rate of interest, then the rate must decline. Consequently, assuming that simply raising or lowering rates will reverse the trend is primitive and lacks any analysis whatsoever.

The central banks have gone way too far and are now trapped. They do not have the ability to influence the economy anymore for they are loaded with government debt that will default. They have converted government bonds into one of the riskiest asset classes of all time.

More and more of our institutional clients (pensions & insurance) are bailing out of government bonds and switching to corporate. Why? No major corporate debt becomes worthless. One was audited by S&P and they remarked that they were taking on more risk. They conducted their own studies to verify what we have been saying and found no corporate defaults, but countless government defaults and partial defaults. In the few rare cases of a default, you receive a payout after liquidation. In the case of government debt, you have something to frame and that is all. Government debt is unsecured and since they have the guns and the armies, you cannot force them to pay anything.

Some insurance companies have come out and stated publicly that they are selling government debt and moving to corporate. Swiss Re AG moved more of its investments into corporate debt as conceded by its chief investment officer who said, “If you’re looking for a bubble, here you go…With government bonds, you’re not adequately compensated for the risk you’re taking.”

We have been in meetings with pension funds. Here too, we find the same response. They are starting to shift. Government debt has become a time bomb. A simple 1% rate hike will be devastating to bond values and blow the budgets of government sky-high.

The European Central Bank has created a total mess of the European banking system. Negative interest rates have been devastating. Now in the Middle East, the National Bank of Abu Dhabi and First Gulf Bank PJSC are exploring a potential merger to create the largest lender in the Middle East. But forget the fluff — banks do not merge unless there is a problem. Rumors behind the curtain say First Gulf Bank PJSC is in trouble.

Negative interest rates have destroyed much of the economy. The rise in regulations and taxes have combined to create the weakest recovery in the United States post-Great Depression. This is not going to end nicely. It is only a matter of time before the general public begins to see the real crisis, and then everything will explode in their faces.

The Father of the European Union – The Real Mover & Shaker Behind the Curtain


Richard Coudenhove-Kalergi

Wolfgang_Schaeuble_1-15-2016Most people have never heard of the real man behind the curtain who inspired the idea of the European Union. They certain do not realize that his idea was to stop the inbreeding within Europe and to support the mixing of peoples and many say races to create the United States of Europe. Richard Coudenhove-Kalergi (1894-1972), was of noble birth and was very much an elitist. He is the real father of the European Union for his efforts go back to 1922 when he founded in Vienna the “Pan Europe” movement. Indeed, his idea was partially supported by the fact that the people of Europe migrated to the United States and intermarried to create America. He saw the same thing was necessary for Europe. This idea is behind German Finance Minister Schäuble outrageous statement that the refugees are needed calling for more immigration into Europe otherwise, Europe will“degenerate into [an] inbred” continent. This is right out of Coudenhove-Kalergi whose argument captured many elitists and spread from Austria to most other countries within Europe. You have to keep in mind that the Royal families were engaged in such a policy. The English monarch is related to the German, Russian, Dutch, and Spain where there were all intermarriages under the theory of creating political stability.

In 1938, Coudenhove-Kalergi had to flee from the Nazi regime and sought asylum in Switzerland and then moved to the United States. Many people have heard of Hitler and his idea of a master race of pure blood, what they do not realize is that this idea was the opposite of Coudenhove-Kalergi’s proposal which is why he had to flee. Coudenhove-Kalergi marketed his vision to breed Europeans into a single race managing to gain many politicians to support his idea based in part on the melting pot of America. However, he would take it even further.

On his return to Europe, Coudenhove-Kalergi was no doubt the initiator of the Parliamentary Union and the concept behind the Treaty of Rome and the evolution of the euro to attempt to merge Europe into the federalization process. Finally, during 1966, Coudenhove-Kalergi submitted before the X. Vienna Paneuropean Congress a memorandum for the future of Europe, which is still regarded as an important guideline to this day. Coudenhove-Kalergi managed to become an adviser to Charles de Gaulle, Georges Pompidou and Konrad Adenauer and Bruno Kreisky.

The sudden advocacy of Schäuble to mix the races and German women should marry refugees has a rather disturbing link to Coudenhove-Kalergi. In his book Praktischer Idealismus (Practical Idealism), he wrote:

The man of the future will be of mixed race. Today’s races and classes will gradually disappear owing to the vanishing of space, time, and prejudice. The Eurasian-Negroid race of the future, similar in its appearance to the Ancient Egyptians, will replace the diversity of peoples with a diversity of individuals. …

Instead of destroying European Jewry, Europe, against its own will, refined and educated this people into a future leader-nation through this artificial selection process. No wonder that this people, that escaped Ghetto-Prison, developed into a spiritual nobility of Europe. Therefore a gracious Providence provided Europe with a new race of nobility by the Grace of Spirit. This happened at the moment when Europe’s feudal aristocracy became dilapidated, and thanks to Jewish emancipation.

id/Coudenhove-Kalergi 1925, pp. 20, 23, 50

There is a lot more going on behind the curtain than people realize. The Pan European idea will fail. They are missing the very element that made it work in the United States – a single language. You will not see Scottish men marrying Italian women generally because of language. Without a single language, Coudenhove-Kalergi idea of simply breeding all the races together to end war is rather absurd. There have always been those who see themselves as playing the roll of God.

Assassination & Conspiracy Theory to Prevent BREXIT Vote?


 

Jo Cox

Anna_Lindh_2002Kennedy 50cent half dollarThere is disturbing opinion circulating about Jo Cox may have been assassinated to prevent a BREXIT vote. Many are starting to believe there is a conspiracy plot connecting the dots to ensure a sympathy vote to remain within the EU. People are pointing to the familiar tool of assassination often used to achieve political agendas. Of course there is the Kennedy assassination that many believe was orchestrated to create the sympathy vote to start the Vietnam War when in fact Kennedy vetoed such a measure. But the more recent assassination was on September 10th, 2003. Anna Lindh  (1957 – 2003), was a Swedish Social Democratic politician who was a member of parliament from 1982 to 1985 and 1998 to 2003. Anna was elevated to minister for foreign affairs by prime minister Göran Persson in 1998. She was widely considered to be his successor as party chairman and there was much hope that she would become prime minister.

Lindh was a supported of adopting the euro. She became the face of joining the new EU and was to be on a TV debate when in Stockholm on the afternoon of September  10th around 4 pm, she was attacked with a knife while shopping in the ladies’ section of the Nordiska Kompaniet department. Lindh was to appear on a televised debate later that night on the referendum about Sweden’s adoption of the euro. At the time of the attack, Lindh was not protected by bodyguards from the Swedish Security Service.

Olof_Palme_1974Then there is the unsolved assassination of prime minister Olof Palme in 1986. Palme was accused of being anti-EU and more pro Soviet. His assassination did clear the way for Sweden to join the EU, which was finally presented in the Swedish European Union membership referendum of 1994 approved, which gain only a 52% majority.

While Silvio Berlusconi was not assassinated, the EU did stage a coup against him because he wanted to take Italy out of the euro. Then there was the Greek Prime Minister Georgios Andreas Papandreou who wanted the Greek people to vote on any bailout to stay in the euro. He was told by Brussels there would be no referendum.

The recent Austrian election was rigged with the closest race in history decided by the mailed-in ballots. As the days have passed, the results of the Austrian presidential election have become far more suspicious.  The official results claimed the far-left candidate Alexander Van der Bellen defeated Norbert Hofer from the Freedom Party of Austria by just 31,000 votes, 50.35% to 49.65%. Again, the fate of the EU hung in the balance. The provisional result in voting reflected major polls released in the last days before the election, which all showed Hofer with the clear majority of public support over his rival coming in at 53% to 47%.
scotland-no

The Scottish youth called their referendum to leave the UK a “REVOLUTION” and felt very betrayed by what they called the over “65” crowd who just wanted their pension checks from London. It is clear that when people are voting with paper ballots, they vote can easily be rigged. There were countless photos of how they committed outright fraud to ensure there would be no “yes” vote.

Camerob-9-19-2014

David Cameron basically said reading between the lines – the younger generation lost and their fate is now settled “for a generation.” This degree of arrogance is not going to be helpful. Governments will not reform and that brings us only to the point of our rising civil unrest that will rip the systems apart. No one in charge will address the long-term. They are only concerned about one vote at a time.

So is there a conspiracy? Perhaps. They would never investigate themselves, so all this is has been suspicion. What is clear, has been that the EU will collapse if BREXIT is allowed. There is far too much at stake to allow this vote. The burning question will be, just how they cover it up and at what cost?

Venuzeula’s Food Crisis Worsens…


This is what happens when there is just too much free stuff!

Brityish MP Assassinated as Tensions Rise over BREXIT


Jo Cox

A man assassinated British Labour politicians Jo Cox who was against BREXIT. The man with a gun fired twice and as she fell, he was kicking her as she was lying on the floor shouting “Britain first.” This is warning what our computer has been projecting that especially if the BREXIT vote fails, there will be a serious rise in violence in Britain. We will also see the issue of Scotland breaking away from the UK resurface. We have been warning that we are entering the year from political hell with FOUR major political elections, BREXIT, US Presidential election in November, and then we have German and French elections.

The idea of the EU that federalizing Europe would end war, is precise the cause of a right-wing rising all around Europe. Brussels is causing political unrest and this is very serious moving forward

Russia Has Hillary’s Emails & Hacked Democrat’s Server


Hacker-2

It has been reported that Russia did hack Hillary’s server. Now, Russia is threatening to release all Hillary’s emails, which may jeopardize her election. The emails are widely expected to reveal how she was shaking down foreign governments to donate to her private “charity” in return for favors. This is calling into question just what Hillary would sell if President. A close look at the Clinton scandals shows a clear pattern. The sex scandals were all Bill while the money scandals were all Hillary. No first lady in history was ever embroiled in financial scandals one after the other.

The Energy Magazine Oilprice.com reported that Russian intelligence has informed Western intelligence agencies that the government in Moscow is now planning to publish the emails from Hillary Clinton. If this proves to be true, then this will confirm that she place national security second to her personal self-interest.

Then, the Democrats say that the Russian government had hacked its servers and were now in possession of the dossier, which they created on Donald Trump.

Nigel Farage on the Future of Immigration post-Brexit


Pensions Continue to Spiral Downward


Britian Steel Workers

There are 11 million workers in Britain who assumed they had great pensions. The British Steel Pension Scheme is proposing to break its pension promises to its 130,000 members because they are losing money. Tata Steel is looking to sell its holding in its UK plants over the next few months, and that means that the £15bn pension scheme, that would normally be put into the general Pension Protection Fund, has been the slush fund for failed companies. So in other words, what they thought was a guarantee, will be nothing of the sort. Once government takes over anything, it just bleeds money.

Death Toll Climbs – Terror In Orlando – 50 Dead, 53 Injured In Terrorist Attack at Gay Nightclub…


The beliefs of those who follow the teaching of Mohammad called Islamic religion of peace (I wouldn’t call it a religion) seem to be the most violent group in the world always being offended by something that bothers no one else. In particular they do not like gays and kill them at every opportunity so it is no real surprise that this Muslim tried to kill as many gays as he could; he was only doing what any good Muslim would do.

European State of the Union Through the Eyes of a 23-Year-Old


european_union_3d_map_1600_clr_17749

I happened to have a conversation with someone from Portugal who was neither a trader nor an investor, just an observant 23-year-old. When I asked for her take on the state of affairs in Europe, she candidly replied:

“Yes, there are groups of people who expect civil war. Actually, the situation in Europe at this moment is a big mess. Those in the Baltic countries are afraid of Russians, others are in a big panic because of ISIS, and the other third are upset about EU not to mention a mess with refuges and etc… In general, war industry brings amazing profit. So it is a question of time when history will repeat once again, as you say.”