deja vu – Austria All Over Again
The bank that failed and began a run that resulted in the collapse of Europe debt markets back in the Great Depression was Credit Anstalt in 1931. The Rothschilds were part owners so the news was quite devastating. Here we are again with the Austrian banks in trouble and the next crisis to emerge may now be more north. The crisis in Austria will most likely begin to be felt in Germany. So keep an eye on the events in Austria as then played a key role in 1931.
The Debt Ceiling Crisis
As people are arguing that there is a 40% chance of a government shut down and a default on US debt, the House Republicans are circulating proposals to kickstart tax reform, permit the Keystone XL pipeline and trim a number of federal regulations in exchange for a borrowing boost for one year. The deadline in October 1st where the fiscal conservatives have targeted their their battles hoping to convince the contry-club Republicans to get on board.
An Australian Senator Comments on Socialism
COMMENT FROM AN AUSTRALIAN SENATOR
Mr Armstrong,
I have been following your work for many years (back through the PEI days) when I was working in the …… I am now an Australian Senator and having seen the inside story of politics, legislative development and the dominant characteristic of ‘self-preservation’ exhibited by elected and unelected officialdom, I agree with you that politicians are the problem.
The socialist culture of welfare entitlement is destroying the Western world and is a shameful reflection on the moral abyss that the Marxists have instilled in the populace. Years ago it was a matter of pride to state you were not reliant on welfare support. Now people proudly boast what they receive whether they need it or not. The last government in Australia sent one off $900 economic stimulus payments almost everyone – including to dead people.
There is now a policy (yet to pass) to pay women up to 75K to have a baby. This is in addition to a $200 payment when you get engaged, immunisation payments, subsidised child care….I could go on. Some women are even paid up to 5k ‘baby bonus’ after having an abortion!
Research down under indicates that 60% of households receive more in direct social benefits than the taxes they pay. If limited to income tax, only the top 20% are left paying more than they collect in benefits.
Now it’s the Debt Ceiling
Now the focus will be the US debt issue going into early October. The dollar fell and world shares held near a one-week low as concerns over a potential government shutdown in Washington rises and mixed signals on U.S. monetary policy keeps the pundits and investors guessing. The key week will be next week in many markets.
LIBOR Scandal is Criminal not Mortgage Scandal
The US DoJ is expected to file criminal charges against the employees/individuals in the Libor affair – not the 2007 Mortgage scandal that did seriously impact the world economy and sent the national debts of most countries soaring for new heights.