The FDIC Issues Letter Warning of Economic Collapse-Martial Law Drills Are Everywhere
The latest news on the coming Economic Collapse
The Federal Deposit Insurance Corporation is telling all who can read the English language that an economic collapse is upon us and quite clearly, the banks know it, the people know it and now now all of you should take notice. The following communique should serve as your red alert. The Federal Reserve is out of ideas, no more band-aids can keep the banks and the American economy afloat, and your money is still in these banks?
At the top of page 11, of the Federal Deposit Insurance Corporation’s (FDIC) letter to JP Morgan, has revealed a 19 page letter sent to JP Morgan/CHASE Bank the Federal regulators reveal that they have “identified a deficiency” in JPMorgan’s wind-down plan which if not properly addressed could “pose serious adverse effects to the financial stability of the United States.” Straight from the government’s mouth.
Martial Law Drills Are Occurring All Across the Country: Example #1
Here is a brochure distributed by a local business to its employees about an upcoming martial law drill. It was obtained from a friend of the Common Sense show’s health reporter, Katy Whelan.TO ALL EMPLOYEES AND CONTRACTORS  Example #2-UWEX 16 RevelationDear Dave,
I have seven such notifications in the past eight days. The
government, through the FDIC is telling us that the economy is on the
verge of collapse, and now the troops are taking up position to impose
the criminal elite’s will upon us. Is your money still in the bank?
Greece set to run out of cash by May pushing Europe into Another crisis Athens desperately needs £4BILLION worth of aid from creditors but is refusing to make any further cutbacks to government spending. The payment is part of a third bailout agreed for Greece last summer as the country reached the brink of bankruptcy and almost crashed out of the bloc. Now the left-wing government is resisting pressure by creditors to make unpopular economic reforms including changes to taxes and pensions that were agreed under the deal. The country could now run out of money by the middle of May, according to Greek paper Ekathimerini. FULL REPORT |
CHASE Begins Limits On ATM Withdrawals
J.P. Morgan Chase & Co. capped ATM withdrawals at $1,000 per card daily for noncustomers—cracking down as people started pulling out tens of thousands of dollars at a time when the bank was modifying its machines to dispense hundred-dollar bills with no limit. The bank said there doesn’t appear to be fraud involved. But partly due to heightened regulatory scrutiny, banks are paying more attention to large cash transfers that could be a sign of money laundering or other types of shady activity. Typically, the card-issuing bank sets withdrawal limits, not the bank owning the ATM.
The move by the largest bank in the U.S. doesn’t affect J.P. Morgan Chase’s own customers, whose maximum daily withdrawals are set depending on the client’s account type. The bank has seen high-dollar withdrawals at both new and old ATMs, said bank spokeswoman Patricia Wexler. FULL REPORT
COUP D'ETAT: The Banks RULE The United States -- John Titus
"The Greater Depression Has Started" - Comparing 1930s & Today
Submitted by Doug Casey via InternationalMan.com,You've heard the axiom "History repeats itself." It does, but never in exactly the same way. To apply the lessons of the past, we must understand the differences of the present.
During the American Revolution, the British came prepared to fight a successful war—but against a European army. Their formations, which gave them devastating firepower, and their red coats, which emphasized their numbers, proved the exact opposite of the tactics needed to fight a guerrilla war.
Before World War I, generals still saw the cavalry as the flower of their armies. Of course, the horse soldiers proved worse than useless in the trenches.
Before World War II, in anticipation of a German attack, the French built the "impenetrable" Maginot Line. History repeated itself and the attack came, but not in the way they expected. Their preparations were useless because the Germans didn't attempt to penetrate it; they simply went around it, and France was defeated.
The generals don't prepare for the last war out of perversity or stupidity, but rather because past experience is all they have to go by. Most of them simply don't know how to interpret that experience. They are correct in preparing for another war but wrong in relying upon what worked in the last one.
Investors, unfortunately, seem to make the same mistakes in marshaling their resources as do the generals. If the last 30 years have been prosperous, they base their actions on more prosperity. Talk of a depression isn't real to them because things are, in fact, so different from the 1930s. To most people, a depression means '30s-style conditions, and since they don't see that, they can't imagine a depression. That's because they know what the last depression was like, but they don't know what one is. It's hard to visualize something you don't understand.
Some of them who are a bit more clever might see an end to prosperity and the start of a depression but—although they're going to be a lot better off than most—they're probably looking for this depression to be like the last one.
Although nobody can predict with absolute certainty what this depression will be like, you can be fairly well-assured it won't be an instant replay of the last one. But just because things will be different doesn't mean you have to be taken by surprise.
To define the likely differences between this depression and the last one, it's helpful to compare the situation today to that in the early 1930s. The results aren't very reassuring.
CORPORATE BANKRUPTCY
1930s
Banks, insurance companies, and big corporations went under on a major scale. Institutions suffered the consequences of past mistakes, and there was no financial safety net to catch them as they fell. Mistakes were liquidated and only the prepared and efficient survived.
Today
The world’s financial institutions are in even worse shape than the last time, but now business ethics have changed and everyone expects the government to "step in." Laws are already in place that not only allow but require government intervention in many instances. This time, mistakes will be compounded, and the strong, productive, and efficient will be forced to subsidize the weak, unproductive, and inefficient. It's ironic that businesses were bankrupted in the last depression because the prices of their products fell too low; this time, it'll be because they went too high.
UNEMPLOYMENT
1930s
If a man lost his job, he had to find another one as quickly as possible simply to keep from going hungry. A lot of other men in the same position competed desperately for what work was available, and an employer could hire those same men for much lower wages and expect them to work harder than what was the case before the depression. As a result, the men could get jobs and the employer could stay in business.
Today
The average man first has months of unemployment insurance; after that, he can go on welfare if he can't find "suitable work." Instead of taking whatever work is available, especially if it means that a white collar worker has to get his hands dirty, many will go on welfare. This will decrease the production of new wealth and delay the recovery. The worker no longer has to worry about some entrepreneur exploiting (i.e., employing) him at what he considers an unfair wage because the minimum wage laws, among others, precludes that possibility today. As a result, men stay unemployed and employers will go out of business.
WELFARE
1930s
If hard times really put a man down and out, he had little recourse but to rely on his family, friends, or local social and church group. There was quite a bit of opprobrium attached to that, and it was only a last resort. The breadlines set up by various government bodies were largely cosmetic measures to soothe the more terror-prone among the voting populace. People made do because they had to, and that meant radically reducing their standards of living and taking any job available at any wage. There were very, very few people on welfare during the last depression.
Today
It's hard to say how those who are still working are going to support those who aren't in this depression. Even in the U.S., 50% of the country is already on some form of welfare. But food stamps, aid to families with dependent children, Social Security, and local programs are already collapsing in prosperous times. And when the tidal wave hits, they'll be totally overwhelmed. There aren't going to be any breadlines because people who would be standing in them are going to be shopping in local supermarkets just like people who earned their money. Perhaps the most dangerous aspect of it is that people in general have come to think that these programs can just magically make wealth appear, and they expect them to be there, while a whole class of people have grown up never learning to survive without them. It's ironic, yet predictable, that the programs that were supposed to help those who "need" them will serve to devastate those very people.
REGULATIONS
1930s
Most economies have been fairly heavily regulated since the early 1900s, and those regulations caused distortions that added to the severity of the last depression. Rather than allow the economy to liquidate, in the case of the U.S., the Roosevelt regime added many, many more regulations—fixing prices, wages, and the manner of doing business in a static form. It was largely because of these regulations that the depression lingered on until the end of World War II, which "saved" the economy only through its massive reinflation of the currency. Had the government abolished most controls then in existence, instead of creating new ones, the depression would have been less severe and much shorter.
Today
The scores of new agencies set up since the last depression have created far more severe distortions in the ways people relate than those of 80 years ago; the potential adjustment needed is proportionately greater. Unless government restrictions and controls on wages, working conditions, energy consumption, safety, and such are removed, a dramatic economic turnaround during the Greater Depression will be impossible.
TAXES
1930s
The income tax was new to the U.S. in 1913, and by 1929, although it took a maximum 23.1% bite, that was only at the $1 million level. The average family’s income then was $2,335, and that put average families in the 1/10th of 1 percent bracket. And there was still no Social Security tax, no state income tax, no sales tax, and no estate tax. Furthermore, most people in the country didn't even pay the income tax because they earned less than the legal minimum or they didn't bother filing. The government, therefore, had immense untapped sources of revenue to draw upon to fund its schemes to "cure" the depression. Roosevelt was able to raise the average income tax from 1.35% to 16.56% during his tenure—an increase of 1,100%.
Today
Everyone now pays an income tax in addition to all the other taxes. In most Western countries, the total of direct and indirect taxes is over 50%. For that reason, it seems unlikely that direct taxes will go much higher. But inflation is constantly driving everyone into higher brackets and will have the same effect. A person has had to increase his or her income faster than inflation to compensate for taxes. Whatever taxes a man does pay will reduce his standard of living by just that much, and it's reasonable to expect tax evasion and the underground economy to boom in response. That will cushion the severity of the depression somewhat while it serves to help change the philosophical orientation of society.
PRICES
1930s
Prices dropped radically because billions of dollars of inflationary currency were wiped out through the stock market crash, bond defaults, and bank failures. The government, however, somehow equated the high prices of the inflationary '20s with prosperity and attempted to prevent a fall in prices by such things as slaughtering livestock, dumping milk in the gutter, and enacting price supports. Since the collapse wiped out money faster than it could be created, the government felt the destruction of real wealth was a more effective way to raise prices. In other words, if you can't increase the supply of money, decrease the supply of goods.
Nonetheless, the 1930s depression was a deflationary collapse, a time when currency became worth more and prices dropped. This is probably the most confusing thing to most Americans since they assume—as a result of that experience—that "depression" means "deflation." It's also perhaps the biggest single difference between this depression and the last one.
Today
Prices could drop, as they did the last time, but the amount of power the government now has over the economy is far greater than what was the case 80 years ago. Instead of letting the economy cleanse itself by allowing the nancial markets to collapse, governments will probably bail out insolvent banks, create mortgages wholesale to prop up real estate, and central banks will buy bonds to keep their prices from plummeting. All of these actions mean that the total money supply will grow enormously. Trillions will be created to avoid deflation. If you find men selling apples on street corners, it won't be for 5 cents apiece, but $5 apiece. But there won't be a lot of apple sellers because of welfare, nor will there be a lot of apples because of price controls.
Consumer prices will probably skyrocket as a result, and the country will have an inflationary depression. Unlike the 1930s, when people who held dollars were king, by the end of the Greater Depression, people with dollars will be wiped out.
THE SOCIETY
1930s
The world was largely rural or small-town. Communications were slow, but people tended to trust the media. The government exercised considerable moral suasion, and people tended to support it. The business of the country was business, as Calvin Coolidge said, and men who created wealth were esteemed. All told, if you were going to have a depression, it was a rather stable environment for it; despite that, however, there were still plenty of riots, marches, and general disorder.
Today
The country is now urban and suburban, and although communications are rapid, there's little interpersonal contact. The media are suspect. The government is seen more as an adversary or an imperial ruler than an arbitrator accepted by a consensus of concerned citizens. Businessmen are viewed as unscrupulous predators who take advantage of anyone weak enough to be exploited.
A major financial smashup in today's atmosphere could do a lot more than wipe out a few naives in the stock market and unemploy some workers, as occurred in the '30s; some sectors of society are now time bombs. It's hard to say, for instance, what third- and fourth-generation welfare recipients are going to do when the going gets really tough.
THE WAY PEOPLE WORK
1930s
Relatively slow transportation and communication localized economic conditions. The U.S. itself was somewhat insulated from the rest of the world, and parts of the U.S. were fairly self-contained. Workers were mostly involved in basic agriculture and industry, creating widgets and other tangible items. There wasn't a great deal of specialization, and that made it easier for someone to move laterally from one occupation into the next, without extensive retraining, since people were more able to produce the basics of life on their own. Most women never joined the workforce, and the wife in a marriage acted as a "backup" system should the husband lose his job.
Today
The whole world is interdependent, and a war in the Middle East or a revolution in Africa can have a direct and immediate effect on a barber in Chicago or Krakow. Since the whole economy is centrally controlled from Washington, a mistake there can be a national disaster. People generally aren’t in a position to roll with the punches as more than half the people in the country belong to what is known as the "service economy." That means, in most cases, they're better equipped to shuffle papers than make widgets. Even "necessary" services are often terminated when times get hard. Specialization is part of what an advanced industrial economy is all about, but if the economic order changes radically, it can prove a liability.
THE FINANCIAL MARKETS
1930s
The last depression is identified with the collapse of the stock market, which lost over 90% of its value from 1929 to 1933. A secure bond was the best possible investment as interest rates dropped radically. Commodities plummeted, reducing millions of farmers to near subsistence levels. Since most real estate was owned outright and taxes were low, a drop in price didn't make a lot of difference unless you had to sell. Land prices plummeted, but since people bought it to use, not unload to a greater fool, they didn't usually have to sell.
Today
This time, stocks—and especially commodities—are likely to explode on the upside as people panic into them to get out of depreciating dollars in general and bonds in particular. Real estate will be—next to bonds—the most devastated single area of the economy because no one will lend money long term. And real estate is built on the mortgage market, which will vanish.
Everybody who invests in this depression thinking that it will turn out like the last one will be very unhappy with the results. Being aware of the differences between the last depression and this one makes it a lot easier to position yourself to minimize losses and maximize profits.
* * *
So much for the differences. The crucial, obvious, and most important similarity, however, is that most people's standard of living will fall dramatically.
The Greater Depression has started. Most people don't know it because they can neither confront the thought nor understand the differences between this one and the last.
As a climax approaches, many of the things that you've built your life around in the past are going to change and change radically. The ability to adjust to new conditions is the sign of a psychologically healthy person.
Look for the opportunity side of the crisis. The Chinese symbol for "crisis" is a combination of two other symbols - one for danger and one for opportunity.
The dangers that society will face in the years ahead are regrettable, but there's no point in allowing anxiety, frustration, or apathy to overcome you. Face the future with courage, curiosity, and optimism rather than fear. You can be a winner, and if you plan carefully, you will be. The great period of change will give you a chance to regain control of your destiny. And that in itself is the single most important thing in life. This depression can give you that opportunity; it's one of the many ways the Greater Depression can be a very good thing for both you as an individual and society as a whole.
Italy on the Brink: Rescue fund for banks amid fears of Another Euro crash
Italian banks are estimated to hold around £270billion of bad loans – more than 30 per cent of the eurozone’s total – which experts worry could spark another financial crisis for the country. Backed by the government, financial institutions have now agreed to a £4billion package aimed at helping the Italy’s most troubled banks. The cash is to be used to buy the high risk loans, as well as injecting money into firms where there are worying shortfalls.
Panic over the bad loans started gathering pace at the start of the year, as investors dumped banking stocks. During this time, Italy’s top stock market dropped by as much as 20 per cent over concern another crisis was brewing, which would have a huge imact on the eurozone. But investors reacted with relief over the news of the rescue package, with shares rising in the Italian banking sector. READ MORE
Gerald Celente – Hot 2016 the Financial Crisis and the Global Shadow Banking System – Crash Will be Worse than 2008
The term financial crisis is applied broadly to a variety of situations in which some financial assets suddenly lose a large part of their nominal value. In the 19th and early 20th centuries, many financial crises were associated with banking panics, and many recessions coincided with these panics. Other situations that are often called financial crises include stock market crashes and the bursting of other financial bubbles, currency crises, and sovereign defaults.Financial crises directly result in a loss of paper wealth but do not necessarily result in changes in the real economy.
Is financial history destined to repeat itself? It would appear to be something of a result of the way markets function. A boom creates excessive interest and lofty prices. The ensuing crash results in “never-again” style regulations, only for another crisis to pop up, sometimes as soon as the next year. Most recently, the world has had to cope with the European sovereign debt crisis, a problem that never seems able to go away entirely and seems to get worse with each ensuing multi-billion dollar bailout.
Many economists have offered theories about how financial crises develop and how they could be prevented. There is no consensus, however, and financial crises continue to occur from time to time.
Read : Economic Collapse Is Erupting All Over The Planet As Global Leaders Begin To Panic
Some financial crises have little effect outside of the financial sector, like the Wall Street crash of 1987, but other crises are believed to have played a role in decreasing growth in the rest of the economy. There are many theories why a financial crisis could have a recessionary effect on the rest of the economy. These theoretical ideas include the ‘financial accelerator’, ‘flight to quality’ and ‘flight to liquidity’, and the Kiyotaki-Moore model. Some ’third generation’ models of currency crises explore how currency crises and banking crises together can cause recessions.
Markets, despite their collective expertise, are apparently destined to repeat history as irrational exuberance is followed by an equally irrational despair. Periodic bouts of chaos are the inevitable result.
Economic collapse and financial crisis is rising any moment. Getting informed about collapse and crisis may earn you, or prevent to lose money. Do you want to .
The financial system is predominantly comprised of digital money. Actual physical Dollars bills and coins only amount to $1.36 trillion. This is only a little over 10% of the $10 trillion sitting in bank accounts. And it’s a tiny fraction of the $20 trillion in stocks, $38 trillion in bonds and $58 trillion in credit instruments floating around the system.
If a significant percentage of people ever actually moved their money into physical cash, it could very quickly become a systemic problem.
READ : Search Results for: PUTIN AND RUSSIAN GENERAL WARNS OF US COLLAPSE IN 28 MAY 2016
It is Going to Get Worse
The total collapse of the economy begins after a significant and prolonged decline. The government implements price controls.The government begins to print currency to pay its bills and support the tens of millions on public assistance. Inflation increases even more and unemployment exceeds 25%. Banks and businesses fail at ever increasing rates. Nobody seems to have any money. Labor unions instigate strikes, civil unrest, and large scale riots. Government services are interrupted and unreliable. Local and national infrastructure is in decay. Violent gangs begin to appear and assert themselves. The government begins confiscation of firearms from law abiding citizens. Violence is everywhere. Cities and urban areas become very dangerous places to live.
Russia and China Join Forces to Kill the U.S. Dollar
http://beforeitsnews.com/economics-and-politics/2016/04/russia-and-china-join-forces-to-kill-the-u-s-dollar-2483634.html
Eric Hunsader: The Financial System Is "Absolutely, Positively Rigged"
Submitted by Adam Taggart via PeakProsperity.com,
Eric Hunsader, founder of Nanex, has been at the vanguard of warning about
the dangers and the rampant fraud that the rise of high-frequency
trading (HFT) algorithims have let loose in today's financial markets.
While he usually feels like a lone voice in a world happy to deceive itself, he was shocked to receive a $750,000 whistleblower award from the SEC for his efforts. He's been sadly less shocked to see that since the award was publicly announced, the abuses he reported have only become more extreme and frequent.
Of the situation that led to his award, he says:
While he usually feels like a lone voice in a world happy to deceive itself, he was shocked to receive a $750,000 whistleblower award from the SEC for his efforts. He's been sadly less shocked to see that since the award was publicly announced, the abuses he reported have only become more extreme and frequent.
Of the situation that led to his award, he says:
The folks at the NYSE were selling their direct feed for north of $30,000 a month versus the SIP which is under a thousand dollars a month. Their customers are not buying it because it has that much more rich data. The thing that makes it worth $29,000 more is that it is faster, but that is illegal. Up until this point they deny that that is the case. And somehow it works. So the exchanges make all their money from their highest paying customers which are the high frequency traders. And the high frequency traders pay the exchanges exorbitant amounts of money to have a slight advantage.Hunsader also had opportunity at one point to access the audit trail data from the CME futures exchange, data that the central authorities almost never allow outside eyes to see. What he found was clear evidence that a very small number of very large players push prices and volume around at will to vacuum up profits at the expense of everyone else:
That's how the whole system works. It is absolutely, positively rigged. There is no question about it. It is rigged on many different levels in many different ways -- for example, no retail order ever gets to see the light of day of the stock exchange. That's one of the many eye openers. People who aren’t pros in the market don’t realize that it's all a rigged game.
I got to see the Fed analysis. This is a fascinating little story. It was the Treasury flash crash October 15th, 2014 which was every bit as bad as the stock market flash crash except it was in Treasurys. The Federal Reserve wanted to get to the bottom of it. They got people together to analyze data and they had to break them into two teams – one team got to look at the cash market trading data and the other team got to look at the audit trail data from the CME which told who was buying this order. One team wasn’t allowed to see the other data set.But there's more. Last August, Hunsader published a chart showing that US stock futures are routinely and suspiciously lifted in the wee hours of the night when trading volume is at its lowest. The 2:00-3:00am EST hour in particular demonstrates a remarkably predictable behavior that leaves many suspecting outright market price manipulation:
If you want to analyze the situation properly you have to look at both sides in order to see what's going on here. You've got to see how the cash and the futures relate. But the teams were specifically not allowed do to this. People on the team that looked at the Treasury data were not allowed to see the cash market data and vice versa. This is data that is extremely hard to get because it is audit trail level. It shows who's behind each trade or order. I got to see some of the stats from the cash side. It is just amazing the percentage of the watched trading going on. Putting in fake orders and the level of spoofing, the level of just bad acting happening.
And, once again, it was the top 10 institutions who pulled away the lion’s share of the profits. They totally dominate the market.
I've been apoplectic for so long I am just spent. Nothing would surprise me anymore. I really honestly don’t know how this is going to get corrected. I know it can’t continue.
Every once in a while I look at longer term fundamentals l and, when I did that study, I had to verify it many different times and many different ways because I just didn’t believe it. Basically, between 2 and 3:00am -- you buy at 2:00am and sell at 3:00am -- you would have captured half of the gains and none of the draw down since 2005, which is just unbelievable that it would have that kind of weight. You would expect every hour, over a long period of time, to be equal. It should be randomly equal. But certainly the early morning hours really stand out. And I don’t have an answer.Click the play button below to listen to Chris' interview with Eric Hunsader (36m:14s)
I would have thought after I first published that chart last August the anomaly would have been ameliorated or something would have shifted because now the information is out there and I know a lot of people saw that chart – it was widely talked about. I would have expected an effect. But the only effect seems to be it has accelerated to be more egregious than it was before.
Robert Kiyosaki: Why the Ultimate Stock Market Crash Will Begin in 2016
Current Economic Collapse News Brief - Episode 947
How the Illuminati Have Enslaved Americans Using Monetary Policy (video)
