Italy to Indict J.P.Morgan Chase
The Italian prosecutors are now seeking to indictment J.P. Morgan Chase & Co for its role in causing the economic problems in the world’s oldest bank in Sienna in the Paschi-Antonveneta deal. It is about time the bankers are made to answer for the nonsense they have been creating.
The NY Untouchables Warn Obama About No Defaults Or Else
The real “Men in Black” who oversee the US government, the European troika of the IMF, ECB and EU who blew up Greece , Ireland, Iceland and are still working on Portugal, Spain, Italy and Austria (just to mention a few), are warning Obama that he better not default on the debt for political gamesmanship. The Democrats are figuring that they should left the dice roll and they hope that will destroy the Republican Party for 2014 and they will seize control of the entire government.
These Men in Black, the untouchable NY bankers of Wall Street, appeared in person to warn Obama that any idea of a state bankruptcy of the United States is unacceptable even for a few days. The government needs to pay its debts, otherwise there would be a global economic disaster they are warning him. Leading the way was the head of Goldman Sachs, Lloyd Blankfein. The loans from the government to various businesses, including the bankers, have now stopped. The Men in Black are there to secure their own cash flows that they count on to make money, while threatening the government that unless they are supported and interest is paid, the government will find itself in serious trouble. They have told Obama that the Fed must continue to print money. This money is needed in the world’s financial system or profits will collapse and so will jobs.
Of course, there is no choice. If the US defaults for a few days, this will have no impact upon its credit rating. This is a trumped-up threat that fails to highlight the fact that there is no other place to put your money except E Q U I T I E S to earn income.
India – Killing the Goose that Laid the Golden Egg
Almost two years ago Warren Buffett called India the “dream market” and now the economic growth collapsed to a snail’s pace and the nation’s debt ratings are at risk of being cut to junk. Consequently, India has been obsessed with their current account deficit failing to grasp the idea that capital investment inflows result in outflows of profits, interest, and dividends. We seriously need a major reform of the international accounting system for it is contributing to the destruction of the global economy by government intervention. India has not only raised taxes on gold trying to stop its importation, but they are now sitting on any attempt to wire out capital from the nation. Even deals selling Indian assets by foreign investors trying to liquidate has now been blocked by red tape. Money can take months to get out waiting for the central bank to approve the transfer.
A year ago, Singapore abolished a general sales tax on imports of investment grade gold and other precious metals. They have been trying to establish storage facilities for gold acting as a neutral agent – the new Switzerland of Asia. The entire region is shifting and we may see a peak in this type of activity by 2015.75.
The emerging markets are doing the very opposite of what they should be doing. Instead of demonstrating that they are free markets, they are attempting to restrict capital outflows and that means that in the near future, international capital will not invest in those countries if they cannot get cash when they need it.