French say 60% of National Debt is Illegal – Default Anyone?
I have been warning that there will be no solution without a massive debt default. This is simply the way it has historically always gone down. Public debt, which is strangely considered quality, has been actually the worst that can possibly exist. Simply stated, no government has ever paid its debt except the single exception of Romania and that produced MASSIVE deflation.
The French have put out a study and are suggesting that this may be the solution. In a 30 page report, they are now saying that 60% of the national debt is illegal. Once you declare it is illegal, then the fools who bought it are at fault.
You can go to EBay and buy countless bonds from all sort of countries that went bust. The real crisis that we face this time, centers around the problem of pensions. The pension fund managers have traditionally held at least 40% of their portfolios in government bonds. This is the massive deflation bomb on the horizon. Just how is this going to be resolved? In the case of Rome, the economy imploded and eventually went into a Dark Age.
During the 3rd century, Rome broke apart into three empires. Here is a coin issued byPostumus – a Roman general who led a rebellion and France, Britain, and Spain broke away from Rome. It was known as the Gallic Empire. This coin declares that he is the restorer of order and normalcy that was absent in Rome. Just replace the word Rome with Washington DC and you will see that history does repeat.
It was debt and unfunded liability that led to the massive collapse of the Roman Empire. Nothing has changed. We are setting the stage for a repeat of history are separatist movements are rising everywhere along with taxes.
George Osborne vows to Charge Banks & Traders Criminally For Manipulations
Chancellor George Osborne in Britain said he is going to announce a crack down on banks and traders. The jig is up as they say.turned. These measures are reported to include making the manipulation of the foreign currency markets by banks a criminal offence.
In his annual Mansion House speech, Mr Osborne will pledge the extension of legislation used to clean up after the Libor interest rate-fixing scandal. In his keynote speech he will promise to target “the unacceptable behaviour of the few and ensure that markets are fair for the many who depend on them”.
They are targeting the forex currency market under this legislation, that will extend to those who trade in commodities as well along with fixed income market, where the most common type of products traded are bonds, that began with the Solomon Brothers manipulation of the US bond market.
The abuses of the bankers in trying to make guaranteed trades that I wrote about in Behind the Curtain years ago are now starting to come to the surface. The confiscation of all the tapes I had collected on the manipulations I believe were the cause of targeting Princeton to save the banks. The receiver Alan Cohen was then appointed to the board of Goldman Sachs yet refused to resign running Princeton Economics. This was the classic conflict of interest that a firm we had gathered evidence on ends up running our firm. That should have been IMPOSSIBLE in a real court system. But the courts in New York refused to EVER hold the NY bankers to account for anything. This corruption is surfacing now and England may take the lead. It will be interesting how long will New York be able to hide the truth.
Osborne is also expected to establish a joint review by the Treasury, Bank of England and the Financial Conduct Authority (FCA) to look into how these markets operate. Some friends have asked if I will contribute to that. They have not asked me.
Ex-Goldman director Gupta lost his motion to stay his prison term for two years that is supposed to start June 17th. We are starting to see the gradual shift against the banks.
Conversation Glen Downs & Martin Armstrong on Republican Upset
The Republican Internal Revolution
Islamic Militant Take Tikirt
In Turkey, the government has called for an emergency meeting of NATO to discuss the security crisis that is brewing in Iraq. Islamic militants took 80 Turkish citizens hostage during an advance overrunning the city of Tikrit. They have shut down Iraq’s biggest oil refinery. The result of the US invasion of Iraq may have gotten rid of a tyrant, but it has opened the door to a religious war that is brewing in the region. There is hardly a place on earth that we are not seeing a rise in warlike tensions.
Tea Party Defeats Cantor
The House Majority Republican Leader Eric Cantor of Virginia, a 7-term Congressman, lost to a Tea Party challenger on Tuesday even after spending $5 million to try to bullshit the people. Despite the celebration on the Democratic side assuming this is really a victory for them, the true message remains this is a blow to politics as usual. This stunning Republican primary upset has sent shockwaves through Congress and gave the conservative movement a landmark victory that is warning the 2016 elections will indeed be something other than usual.
In a conversation with Glen Downs, he explains that the institutional “K Street”Republicans are blaming the voters rather than themselves. They are not asking why Cantor, who was the No. 2 Republican in the House of Representatives, was easily beaten by college economics professor David Brat. Brat is articulate and accused Cantor of betraying conservative principles on spending, debt and immigration. Brat spent only about $122,000 compared to Cantor’s $5 million,. This is demonstrating the voter anger that cannot be swayed with money.
Boehner is so out of touch with the rest of America it is scary. Cantor’s defeat will mean a shake-up in the Republican leadership. It is starting to look like someone will run for that position from OUTSIDE the “K-Street” Republican crowd. Boehner’s war against the Tea Party has been nasty and ultimately will destroy the Republican Party as it has prevailed. The “K-Street” Republicans in the House may control for now, but other members are starting to get nervous about the depth of public anger toward Congress. Unfortunately, Senator Lindsey Graham of South Carolina beat a crowded field of six challengers who also had accused him of not being conservative enough.
The victory also emboldened conservative leaders among the Tea Party, and could encourage a challenge to Boehner when the new leadership team is chosen at the end of this year. This victory for the Tea Party is truly an apocalyptic moment for the GOP establishment. They have ignored the grassroots that is in real revolt and marching in a rising tide against Washington and business as usual.