Exploring Newbill’s Renminbi Thoughts, Bail-ins & This is Bad- ‘China’s Renminbi Is Approved’


John R. Houk

© December 22, 2015

What is the global effect on Capitalist market economies when an avowed Communist dictatorial nation is welcomed as an elite currency in the global finance? It truly is something serious to ponder.

I can hear the hollering and cries now that the Cold War (U.S. led West vs. Communist USSR [and to a lesser extent China]) has been over since the Presidency of Ronald Reagan in the 1980s. In the case of the former Soviet Ruble and the Chinese Renminbi (aka yuan), no Communist nation ever achieved a financial rating as elite. Or at least that is until now.

The People’s Republic of China (i.e. Communist despotism) had its national currency the Renminbi declared an elite currency by the International Monetary Fund (IMF) in November 2015 (official elite start date October 2016). The Renminbi thus joins the American Dollar, the EU Euro, British Pound and Japanese Yen as a stable currency. This banks and nations can trade with the Red Chinese currency to add to reserves to back an economy. To place this in perspective check out this WaPo excerpt:

Here are a few things the four countries in the IMF’s current “basket” all have in common, beyond their exports and tradable currencies. They are all market democracies, with well-established property rights and rule of law; their achievement of those institutional advances preceded their becoming issuers of currencies dependable and liquid enough for other countries to use them as reserves. The notion of a Chinese-issued global reserve currency assumes that Beijing can essentially reverse-engineer such development, and the market confidence it inspired, in a communist nation founded and still operated on the basis of party-state control over everything from banks to courts. (Bold text is Blog Editor’s – China moves into the global currency elite; By Editorial Board; Washington Post; 12/2/15)

For all of Communist China’s strides in becoming the world’s second largest economy the fact remains it is a ONE-Party nation with property rights and the rule of Law are under the foundation of State controlled Marxist ideology which has morphed into Chinese Communism.

The pseudonymous writer Tony Newbill projects the feeling that the Renminbi will cause a bit of global financial instability as the Chinese currency becomes a reserve option threatening the stability of the Dollar, Euro, Pound and Yen. I think he is on to something as evidenced by the Islamic Supremacist dictatorship of Sudan and the Communist dictatorship of North Korea will now have greater capability of trading in Renminbi in making deals with transnational terrorists thus avoiding restrictions and sanctions from nations that use the Dollar, Euro, Pound and Yen. AND that is just one example.

In introducing an article from the NYT Newbill provokes your thinking toward the West’s banking reformation involving how the Western governments address financial crises when banks begin to fail due to bad investments, especially in the case of transnational giant too big to fail banks. Instead of using the bailout path, the G20 nations have imposed a banking rule (See Also HERE) involving Bail-inabled Bonds. Hence the term Bail-in instead of a taxpayer supported government Bailout.

Since I am not exactly a big depositor in any bank I was somewhat clueless on the difference between a Bailout and a Bail-in. To comprehend the NYT article Newbill sent me to post, I had to read up on what the heck a bail-in entailed.

Here is a just over a minute explanation of the difference between a Bailout and Bail-in:

VIDEO: Bail ln Or Bail Out? What’s The Difference? Mike Maloney

 

Posted by Mike Maloney

Published on Nov 13, 2014

More: “Just the term ‘Bail-In’ is a lie. This is something that is a marketing tool to basically…cover up a theft.” – Mike Maloney. Learn more about the film here: If you’d like to watch the whole film, you can rent or buy the film online using this link and discount code for 30%: “maloney-rent” and “maloney-buy”

From the film’s press release:

From award-winning filmmaker Tim Delmastro comes a new film about … READ THE REST

The closest article on the subject that I understood the best was from Ellen Brown on The Web of Debt Blog.

JRH 12/22/15

Please Support NCCR

*************************

New G20 Rules: Cyprus-style Bail-ins to Hit Depositors AND Pensioners

By Ellen Brown

December 1, 2014

The Web of Deceit Blog

On the weekend of November 16th, the G20 leaders whisked into Brisbane, posed for their photo ops, approved some proposals, made a show of roundly disapproving of Russian President Vladimir Putin, and whisked out again. It was all so fast, they may not have known what they were endorsing when they rubber-stamped the Financial Stability Board’s “Adequacy of Loss-Absorbing Capacity of Global Systemically Important Banks in Resolution,” which completely changes the rules of banking.

Russell Napier, writing in ZeroHedge, called it “the day money died.” In any case, it may have been the day deposits died as money. Unlike coins and paper bills, which cannot be written down or given a “haircut,” says Napier, deposits are now “just part of commercial banks’ capital structure.” That means they can be “bailed in” or confiscated to save the megabanks from derivative bets gone wrong.

Rather than reining in the massive and risky derivatives casino, the new rules prioritize the payment of banks’ derivatives obligations to each other, ahead of everyone else. That includes not only depositors, public and private, but the pension funds that are the target market for the latest bail-in play, called “bail-inable” bonds.

“Bail in” has been sold as avoiding future government bailouts and eliminating too big to fail (TBTF). But it actually institutionalizes TBTF, since the big banks are kept in business by expropriating the funds of their creditors.

It is a neat solution for bankers and politicians, who don’t want to have to deal with another messy banking crisis and are happy to see it disposed of by statute. But a bail-in could have worse consequences than a bailout for the public. If your taxes go up, you will probably still be able to pay the bills. If your bank account or pension gets wiped out, you could wind up in the street or sharing food with your pets.

In theory, US deposits under $250,000 are protected by federal deposit insurance; but deposit insurance funds in both the US and Europe are woefully underfunded, particularly when derivative claims are factored in. The problem is graphically illustrated in this chart from a March 2013 ZeroHedge post:

Chart Comparison

 

More on that after a look at the new bail-in provisions and the powershift they represent.

Bail-in in Plain English

The Financial Stability Board (FSB) that now regulates banking globally began as a group of G7 finance ministers and central bank governors organized in a merely advisory capacity after the Asian crisis of the late 1990s. Although not official, its mandates effectively acquired the force of law after the 2008 crisis, when the G20 leaders were brought together to endorse its rules. This ritual now happens annually, with the G20 leaders rubberstamping rules aimed at maintaining the stability of the private banking system, usually at public expense.

According to an International Monetary Fund paper titled “From Bail-out to Bail-in: Mandatory Debt Restructuring of Systemic Financial Institutions”:

[B]ail-in . . . is a statutory power of a resolution authority (as opposed to contractual arrangements, such as contingent capital requirements) to restructure the liabilities of a distressed financial institution by writing down its unsecured debt and/or converting it to equity. The statutory bail-in power is intended to achieve a prompt recapitalization and restructuring of the distressed institution.

The language is a bit obscure, but here are some points to note:

o What was formerly called a “bankruptcy” is now a “resolution proceeding.” The bank’s insolvency is “resolved” by the neat trick of turning its liabilities into capital. Insolvent TBTF banks are to be “promptly recapitalized” with their “unsecured debt” so that they can go on with business as usual.

o “Unsecured debt” includes deposits, the largest class of unsecured debt of any bank. The insolvent bank is to be made solvent by turning our money into their equity – bank stock that could become worthless on the market or be tied up for years in resolution proceedings.

o The power is statutory. Cyprus-style confiscations are to become the law.

o Rather than having their assets sold off and closing their doors, as happens to lesser bankrupt businesses in a capitalist economy, “zombie” banks are to be kept alive and open for business at all costs – and the costs are again to be to borne by us.

The Latest Twist: Putting Pensions at Risk with “Bail-Inable” Bonds

First they came for our tax dollars. When governments declared “no more bailouts,” they came for our deposits. When there was a public outcry against that, the FSB came up with a “buffer” of securities to be sacrificed before deposits in a bankruptcy. In the latest rendition of its bail-in scheme, TBTF banks are required to keep a buffer equal to 16-20% of their risk-weighted assets in the form of equity or bonds convertible to equity in the event of insolvency.

Called “contingent capital bonds”, “bail-inable bonds” or “bail-in bonds,” these securities say in the fine print that the bondholders agree contractually (rather than being forced statutorily) that if certain conditions occur (notably the bank’s insolvency), the lender’s money will be turned into bank capital.

However, even 20% of risk-weighted assets may not be enough to prop up a megabank in a major derivatives collapse. And we the people are still the target market for these bonds, this time through our pension funds.

In a policy brief from the Peterson Institute for International Economics titled “Why Bail-In Securities Are Fool’s Gold”, Avinash Persaud warns, “A key danger is that taxpayers would be saved by pushing pensioners under the bus.”

It wouldn’t be the first time. As Matt Taibbi noted in a September 2013 article titled “Looting the Pension Funds,” “public pension funds were some of the most frequently targeted suckers upon whom Wall Street dumped its fraud-riddled mortgage-backed securities in the pre-crash years.”

Wall Street-based pension fund managers, although losing enormous sums in the last crisis, will not necessarily act more prudently going into the next one. All the pension funds are struggling with commitments made when returns were good, and getting those high returns now generally means taking on risk.

Other than the pension funds and insurance companies that are long-term bondholders, it is not clear what market there will be for bail-in bonds. Currently, most holders of contingent capital bonds are investors focused on short-term gains, who are liable to bolt at the first sign of a crisis. Investors who held similar bonds in 2008 took heavy losses. In a Reuters sampling of potential investors, many said they would not take that risk again. And banks and “shadow” banks are specifically excluded as buyers of bail-in bonds, due to the “fear of contagion”: if they hold each other’s bonds, they could all go down together.

Whether the pension funds go down is apparently not of concern.

Propping Up the Derivatives Casino: Don’t Count on the FDIC

Kept inviolate and untouched in all this are the banks’ liabilities on their derivative bets, which represent by far the largest exposure of TBTF banks. According to the New York Times:

American banks have nearly $280 trillion of derivatives on their books, and they earn some of their biggest profits from trading in them.

These biggest of profits could turn into their biggest losses when the derivatives bubble collapses.

Both the Bankruptcy Reform Act of 2005 and the Dodd Frank Act provide special protections for derivative counterparties, giving them the legal right to demand collateral to cover losses in the event of insolvency. They get first dibs, even before the secured deposits of state and local governments; and that first bite could consume the whole apple, as illustrated in the above chart.

The chart also illustrates the inadequacy of the FDIC insurance fund to protect depositors. In a May 2013 article in USA Today titled “Can FDIC Handle the Failure of a Megabank?”, Darrell Delamaide wrote:

[T]he biggest failure the FDIC has handled was Washington Mutual in 2008. And while that was plenty big with $307 billion in assets, it was a small fry compared with the $2.5 trillion in assets today at JPMorgan Chase, the $2.2 trillion at Bank of America or the $1.9 trillion at Citigroup.

. . . There was no possibility that the FDIC could take on the rescue of a Citigroup or Bank of America when the full-fledged financial crisis broke in the fall of that year and threatened the solvency of even the biggest banks.

That was, in fact, the reason the US Treasury and the Federal Reserve had to step in to bail out the banks: the FDIC wasn’t up to the task. The 2010 Dodd-Frank Act was supposed to ensure that this never happened again. But as Delamaide writes, there are “numerous skeptics that the FDIC or any regulator can actually manage this, especially in the heat of a crisis when many banks are threatened at once.”

All this fancy footwork is to prevent a run on the TBTF banks, in order to keep their derivatives casino going with our money. Warren Buffett called derivatives “weapons of financial mass destruction,” and many commentators warn that they are a time bomb waiting to explode. When that happens, our deposits, our pensions, and our public investment funds will all be subject to confiscation in a “bail in.” Perhaps it is time to pull our money out of Wall Street and set up our own banks – banks that will serve the people because they are owned by the people.

++++++

Here is the Tony Newbill email conspiracy theory email.

JRH 12/22/15

***************************

This is BAD

Sent by Tony Newbill

Sent: 11/30/2015 12:07 PM

Here comes the Run on the Dollar and USA and Euro Bank Bail-ins!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

+++

China’s Renminbi Is Approved by I.M.F. as a Main World Currency

By KEITH BRADSHER

NOV. 30, 2015

New York Times (INTERNATIONAL BUSINESS)

NY Times VIDEO: Chinese Currency Named as a World Reserve

http://graphics8.nytimes.com/video/players/offsite/index.html?videoId=100000004065542

 

By REUTERS | Nov. 30, 2015 | 0:52

Christine Lagarde, the managing director of the International Monetary Fund, announces that China’s renminbi will become a world reserve currency alongside the dollar, euro, pound and yen.

HONG KONG — The Chinese renminbi was anointed as one of the world’s elite currencies on Monday, a milestone decision by the International Monetary Fund that underscores the country’s rising financial and economic heft.

The move will help pave the way for broader use of the renminbi in trade and finance, securing China’s standing as a global economic power. Just four other currencies — the dollar, the euro, the pound and the yen — have the I.M.F. designation.

But the path to the I.M.F. decision, a bumpy process that stretches back years, also introduced new uncertainty into China’s economy and financial system.

To meet the I.M.F. requirements, China was forced to give up some of its tight control over the currency, culminating in the abrupt devaluation of the renminbi that shook global markets in August. The changes could inject fresh volatility into the country, at a time when its economy is already slowing.

The I.M.F. designation, an accounting unit known as the special drawing rights, bestows global importance.

Renminbi, also called yuan, gains a benchmark status.

Many central banks follow this benchmark in measuring their reserves, which countries hold to help protect their economies in times of trouble. By adding the renminbi to this group, the I.M.F. effectively says that it considers the currency to be safe, reliable and freely usable.

It is a “recognition of the progress that the Chinese authorities have made in the past years in reforming China’s monetary and financial systems,” Christine Lagarde, the managing director of the I.M.F., said in a statement in Washington. “The continuation and deepening of these efforts will bring about a more robust international monetary and financial system, which in turn will support the growth and stability of China and the global economy.”

The designation is a point of pride for Beijing, which had made it one of its highest economic policy priorities.

In the months before the fund’s decision, China moved aggressively to expand the currency’s standing on a global stage, building trading hubs in Europe and developing a raft of renminbi-denominated bonds and commodity contracts. In devaluing the currency, China changed the way it sets the value of the renminbi each morning, allowing market forces to play a bigger role.

The I.M.F. decision also says a lot about the waning influence of Europe: The renminbi is mainly replacing part of the euro’s role in the special drawing rights. Assessing currencies for the accounting system, the fund put a greater emphasis on their different roles in international finance. The dollar still dominates in finance and trade, while the renminbi is quickly gaining ground on the euro.

The United States Treasury said it “supported” the I.M.F. decision.

Besides its symbolic weight, the I.M.F. label, which will take effect at the end of September next year, carries specific benefits. The renminbi will become one of the currencies used in the disbursement and repayment of international bailouts denominated in the fund’s accounting unit, like Greece’s debt deal.

The renminbi’s new status “will improve the international monetary system and safeguard global financial stability,” President Xi Jinping of China said in mid-November.

While the renminbi may gain favor internationally, the I.M.F. designation does not mean that China’s economic overhaul is complete. China maintains heavy regulatory control over the country’s financial system. The country also falls short in legal protections, with the Communist Party continuing to play a strong role in deciding court cases.

Such issues could limit the overall appeal of the renminbi — and China’s ambitions.

“It is a historic moment in international finance for an emerging market economy, with a per-capita income barely a quarter that of other reserve currency economies, to be anointed as the issuer of one of the world’s major reserve currencies,” said Eswar Prasad, a former head of the I.M.F.’s China division who is now the Tolani Senior Professor of Trade Policy at Cornell University. But “the most likely scenario is that the renminbi will erode but not seriously rival the dollar’s status as the dominant global reserve currency.”

The changing currency dynamics also create new geopolitical concerns.

As the renminbi becomes more deeply woven into the global economy, it undermines the ability of the West to impose financial sanctions on countries accused of human rights abuses and other violations, like Sudan and North Korea. Such countries can increasingly carry out transactions in renminbi.

China contends that it is crucial to respect nations’ sovereignty and that leaders should be allowed to set policy without fearing international criticism or intervention. China remains a close business and financial partner of Sudan and North Korea. Mr. Xi invited the president of Sudan to a recent military parade in Beijing.

Lamido Sanusi, the governor of the Central Bank of Nigeria, said in 2010 it was ready to put up to a tenth of its entire reserves into renminbi, or $4 billion

“As the renminbi rises, countries will have more choices about where they do their banking — and how to potentially circumvent sanctions,” said Christopher Brummer, a Georgetown University law professor specializing in currencies.

Beijing’s effort to position the renminbi as a rival to the dollar traces back to the innocuously named “Document 217.”

The Chinese central bank posted the document on its website with little fanfare in August 2010. But buried in the document’s technical jargon was an important measure with global implications.

Under a new rule, China would start allowing other countries’ central banks to begin buying its bonds in Shanghai. Officials in other countries just had to get permission first from the People’s Bank of China.

Nigeria was paying close attention. Lamido Sanusi, the governor of the Central Bank of Nigeria, had already been mulling whether to park part of the country’s $40 billion in foreign exchange reserves in renminbi.

A prominent Islamic scholar, he was the son of an influential Nigerian prince who served as his country’s ambassador to China during the Cultural Revolution. Back then, his father advocated a shift by Africa away from Western dominance and toward closer relations with China.

When Mr. Sanusi became the central bank chief in 2009, Nigeria had extensive trade ties with China. In shifting a portion of reserves, he bet — correctly, as it turned out — that the renminbi would appreciate. Interest rates on renminbi-denominated bonds were also several percentage points higher than yields on comparable Treasuries.

Inclusion of the renminbi in the I.M.F.’s elite reserve currency group was so important to China’s leaders that they named it in October as one of their highest economic policy priorities in the coming years. CreditAgence France-Presse — Getty Images

Nigeria started purchasing large sums of renminbi in the little-regulated Hong Kong market in 2010, rather than Shanghai as the Chinese rules prescribed, and without seeking Beijing’s permission. Mr. Sanusi then stunned the Chinese government by mentioning at a conference a few weeks later in Nigeria’s capital, Abuja, that his country was ready to put up to a tenth of its entire reserves, or $4 billion, into renminbi.

“The Chinese Embassy came over and met me,” said Mr. Sanusi, who last year was crowned Emir Muhammadu Sanusi II, the traditional and religious leader of Kano State in northern Nigeria. “They just wanted to have clarity.”

Chinese officials, he said, were pleased that a major trading partner in Africa liked the renminbi. But Nigeria’s move also posed a dilemma. Large-scale purchases of renminbi by overseas central banks would make it more difficult for China to prevent the renminbi from appreciating, which in turn would make exports less competitive.

When Nigeria eventually requested permission to buy bonds in Shanghai, the Chinese central bank agreed, although it tightly capped the purchases. “We got something less than what we applied for,” said Lamido Yuguda, the director of reserve management at the Central Bank of Nigeria, declining to provide precise figures. “It was something we could live with.”

After the experience with Nigeria, China moved slowly and cautiously on further currency liberalization over the next four years. The government did not encourage other central banks to buy large sums of renminbi. Instead, China entered into a series of swap agreements with dozens of countries like Australia, Brazil, South Africa, Germany and Iceland.

Under these agreements, China said it would provide billions of renminbi if the other country needed them in a crisis. But China would keep the renminbi until that point, so that any interim purchases would not be sufficient to push up the value of the currency.

Beijing’s cautious strategy backfired this year, when China ramped up its campaign for I.M.F. reserve status. One of the I.M.F.’s main considerations is that the currency be “freely usable.”

The People’s Bank of China acknowledged last spring that other central banks held a modest $108 billion worth of renminbi, about 1 percent of total foreign exchange holdings by central banks. By contrast, central banks had $500 billion worth of swap agreements to obtain renminbi, more than for any other currency, including the dollar.

Beijing lobbied hard through the spring to persuade the I.M.F. to consider the swaps as evidence that the renminbi was “freely usable.” But the United States and other countries opposed bending I.M.F. rules.

The fund decided during the summer to stick to more traditional criteria, like the amount of currency that central banks had been able to buy and how easily the renminbi could be traded. After that, the I.M.F. pressed the Chinese central bank to make its currency more responsive to market forces.

China had to move fast. After this year, the next chance to push the renminbi into the fund’s accounting system would not come until 2020.

During the summer, Chinese officials made a series of rapid-fire moves, most notably devaluing the currency by 4.4 percent against the dollar as part of a new method for setting the daily trading range of the renminbi. The process would give the market more influence over the daily value of the renminbi, which is set each morning by the central bank.

The aftermath of the devaluation has been a shock to China’s system, providing a window into the uncertainty the country now faces with a more globally oriented currency.

After the devaluation, many Chinese companies moved to pay off foreign debts for fear the renminbi would fall further. Investors also sold huge sums of renminbi and switched into other currencies. China’s central bank spent nearly $100 billion in August alone to prop up the renminbi.

“Making it more market-based makes it more difficult to manage,” said Larry Hu, the chief China economist in the Hong Kong office of Macquarie Capital Securities. “But making it more market-based also makes it more efficient.

_______________

Exploring Newbill’s Renminbi Thoughts, Bail-ins & This is Bad- ‘China’s Renminbi Is Approved’

John R. Houk

© December 22, 2015

____________________

New G20 Rules: Cyprus-style Bail-ins to Hit Depositors AND Pensioners

Ellen Brown is an attorney, founder of the Public Banking Institute, and author of twelve books including the best-selling Web of Debt. Her latest book, The Public Bank Solution, explores successful public banking models historically and globally. Her 200+ blog articles are at EllenBrown.com.

_________________________

China’s Renminbi Is Approved by I.M.F. as a Main World Currency

A version of this article appears in print on December 1, 2015, on page A1 of the New York edition with the headline: I.M.F. Adds China’s Currency to Elite Global Financial Club.

© 2015 The New York Times Company

New York Times home page

Tony Newbill Emails 12/21/13 to 1/4/14


BHO- Reject Warnings of Coming Tyranny

These sets of emails are quite varied. The first email explores Genetically Modified Organisms (GMO). The next email is about the Department of Homeland Security (DHS) – undoubtedly under Obama’s directions – reuniting children smuggled into the USA via busted human trafficking or Drug Cartel mules with their illegal immigrant parents already breaking the law by being in the USA. The next email combines DHS enforcement of the REAL ID Act (See Also HERE), Bailouts and a modern version of debtors’ prison. The next few emails deal with the global economy looking at issues as the value of gold and more. In those nefarious activities pertaining to the global economy one particular email is how the NSA can use data to manipulate markets because of its ability to monitor any kind of electronic messaging which includes phone usage.

 

JRH 1/6/13

Please Support NCCR

***************************

Fox News Shockingly Reports The Truth On GMOs

Sent: 12/21/2013 7:57 AM

 

Fox News Shockingly Reports The Truth On GMOs

http://www.youtube.com/watch?v=koLz-guYRao#t=23

 

Looking around I found an extremely helpful info-graphic on GMOs, The Good, the Bad and the Ugly, which can be seen here.

 

http://nutribulletblog.com/gmos-the-good-the-bad-and-the-ugly/

 

GMOs: The Good, the Bad, and the Ugly

 

The debate continues over whether genetically modified organisms are out to save the world or destroy it. But the argument for either side is far from cut-and-dry.

 

We always recommend the consumption of non-GMO whole foods; GMOs have only been around for the last two decades and the longstanding social and medical effects of GMO production and consumption is yet to be seen.

 

Learn a little about the history of GMOs. Should their labeling be required in the United States? (Go to Website to see the Charts)

 

The seven most genetically modified foods are Corn, Soy, Yellow Crookneck Squash and Zucchini, Alfalfa, Canola, Sugar Beets and Milk.

 

http://www.huffingtonpost.com/builtlean/diet-and-nutrition_b_4323937.html

 

Genetically modified material sounds a little bit like science fiction territory, but in reality, much of what we eat on a daily basis is a genetically modified organism (GMO). Whether or not these modified foods are actually healthy is still up for debate — and many times, you don’t even know that you are buying something genetically modified.

 

It is not required to label GMOs in the U.S. and Canada, but there are substantial restrictions, and even outright bans, on GMOs in many other countries.

 

However, by 2018, Whole Foods Market will start labeling GMOs in the U.S. This grocery chains’ locations in Britain already provide GMO labeled products, as required by the European Union. According to the EU, GMO refers to plants and animals “in which the genetic material has been altered in a way that does not occur naturally by mating and/or natural recombination.”

 

1) Corn

Almost 85 perecent (sic) of corn grown in the U.S. is genetically modified. Even Whole Foods’s brand of corn flakes was found to contain genetically modified corn. Many producers modify corn and soy so they are resistant to the herbicide glyphosate, which is used to kill weeds.

 

2) Soy

Soy is the most heavily genetically modified food in the country. The largest U.S. producer of hybrid seeds for agriculture, Pioneer Hi-Bred International, created a genetically engineered soybean, which was approved in 2010. It is modified to READ THE REST (7 Most Common Genetically Modified Foods; By Caroline Young; HuffPo; 12/3/13 8:38 am)

 

China rejects unapproved US origin GM corn

 

http://www.youtube.com/watch?v=F-_Jh5IOERU

 

Posted by CCTV News

Published: Dec 19, 2013

 

China has returned 12 shipments of genetically modified US corn which violate China’s rules on GM products. 545-thousand tonnes of MIR162 genetically modified corn were returned. MIR162 is a variety of insect-resistant transgenic corn and hasn’t been authorized by China’s Agriculture Ministry. China’s quality authority has urged the United States to improve its inspection procedures to ensure that they comply with Chinese quality standards.

 

Broiler Chickens Found At Grocery Retailers Grow Three Times Faster Than Normal Chickens, Plagued With Lameness and Disease

 

http://preventdisease.com/news/13/121913_Broiler-Chickens-Grow-Three-Times-Faster-Than-Normal-Chickens-Plagued-With-Lameness-Disease.shtml

 

Billions of chickens around the world suffer in the intensive farming systems every year. Broilers chickens have been selectively bred and genetically modified so that they are reared quickly and cheaply to have enough meat to fulfill demand. Most these chickens suffer from painful lameness and disease related to their growth rates.

 

Intensification of the broiler chicken industry started in the late 1950’s, when the use of ‘dual purpose’ chickens for egg and meat production ceased and new poultry strains were produced specifically for meat production.

For example, in 1950, well under 50 million commercial broiler chickens were raised commercially, and now that number is well into the billions. When Kentucky Fried Chicken stores opened in the 1970s, production of these chickens skyrocketed over 40%.

The result of the narrowly focused breeding programs has been a bird which grows twice or three times as fast as a normal chicken and converts its food into meat in a much more efficient way. Most are raised under intensive systems and reach slaughter weight at 5-7 weeks of age. As a consequence the price of chicken meat has declined and consumption has risen several fold.

Intensive Selective Breeding

Over 50 years ago it took 98 days for a chicken to grow to 1.6kg. By 1986, due to selective breeding, it only took 37 days. Baby birds, who still chirp and have soft feathers, have the bodies of adult birds. This unnatural growth rate puts enormous pressure on the heart and immature skeleton and is the cause of many health problems.

Extreme selection pressure for large breast muscles has further distorted the anatomy of these animals and READ THE REST (Broiler Chickens Found At Grocery Retailers Grow Three Times Faster …; By APRIL McCARTHY; PreventDisease.com; 12/19/13)

+++++++++++++++++++++++

Judge claims DHS delivering smuggled children to illegal immigrant parents

Sent: 12/21/2013 8:40 AM

 

http://www.foxnews.com/politics/2013/12/19/judge-claims-dhs-parents-smuggle/

 

A federal judge in Texas is accusing the Department of Homeland Security of hand-delivering children smuggled into the United States to their illegal immigrant parents.

 

U.S. District Judge Andrew S. Hanen revealed the practice in a blistering court order filed late last week. He said the “dangerous” practice is effectively aiding human traffickers and particularly the drug cartels, which run many of these operations.

 

“These actions are both dangerous and unconscionable,” he wrote.

 

The judge attempted to lift the curtain on what is happening behind the scenes of the Obama administration’s changing approach to immigration enforcement. It has been well-documented that DHS is allowing some illegal immigrants already inside the country to skirt deportation, and particularly those who came to the U.S. as children.

 

But the “conspiracy” outlined by Hanen would take that controversial policy a big step further. He detailed the case of an illegal immigrant parent in Virginia, but used that as an entry point to describe what he suggested was a broader program.

 

Hanen claimed that, in more than one case before his court, immigration officials are arresting human traffickers smuggling children into the U.S. — and then “delivering the minors to the custody of the parent illegally living in the United States.”

 

“The DHS has simply chosen not to enforce the United States’ border security laws,” he wrote.

 

Further, he said READ THE REST (Judge claims DHS delivering smuggled children to illegal immigrant parents; By Judson Berger; Fox News – Politics; 12/19/13)

 

+++++++++++++++++++++++++++=

Being Jailed for Delinquent Fines Triggered a Thought…..

Sent: 12/27/2013 10:16 AM

 

REAL ID Enforcement Begins in 2014, 21 States Compliant

http://www.sacbee.com/2013/12/20/6016990/real-id-enforcement-begins-in.html

 

WASHINGTON, Dec. 20, 2013 — /PRNewswire-USNewswire/ — The Department of Homeland Security

 

The REAL ID Act’s enforcement will start next year, the Department of Homeland Security (DHS) announced today. The enforcement steps will begin in April 2014 within restricted areas of the DHS headquarters, followed by a phased approach, with substantial enforcement in 2016. The 2005 REAL ID Act prohibits the federal government from accepting driver’s licenses and ID cards that do not meet minimum security standards set by DHS, no later than May 2017. The minimum standards require that driver’s license security features be routinely upgraded to be counterfeit resistant and require applicants to provide documentary proofs confirm true identity.

 

REAL ID compliant driver’s licenses and ID cards are key elements of the nation’s homeland security strategy. Enforcement of the law will clarify and differentiate between compliant state-issued identity credentials versus less reliable proofs of identity when admitting people to secure federal facilities or, beginning in 2016, to board airlines.

 

Coalition for a Secure Driver’s License (CSDL) President Brian Zimmer said, READ THE REST (REAL ID Enforcement Begins in 2014, 21 States Compliant; By Coalition for a Secure Driver’s License; Sacramento Bee; 12/20/13 9:12 am)

Globalists have and always will try and create the Utopian Society because of their Finite Earth Perspective and Population growth. These links tell this story that is continuing again today.

 

The Cronies will pocket all the tax extras just like they did all the “Shovel Ready” stimulus cash!!!!!!!

 

Bailouts leave a legacy of cronyism: Opposing view

http://www.usatoday.com/story/opinion/2013/12/22/bailouts-tarp-general-motors-mark-calabria-editorials-debates/4168419/

 

This month’s sale by the Treasury of its remaining shares in General Motors should offer us all an opportunity to say “never again.”

 

OUR VIEW: Auto rescue a triumph

 

Pay no attention to the the Obama and Bush administration cheerleaders. The federal rescue of GM, along with the TARP in general, serves as an example of everything wrong with Washington.

 

The TARP was little more than a transfer of losses from inept corporations to the taxpayer, mistaking the redistribution of losses with their avoidance.

 

Let’s start with the easy part: The taxpayer is projected to take a loss of more than $20 billion on two of the TARP programs. About half of that loss is from the $50 billion GM bailout; the remainder is largely the result of various failed housing assistance programs.

 

It didn’t have to be this way. When GM entered bankruptcy, the creditors should have taken their losses, and the company could have been reorganized at no cost to taxpayers. The same is true of the banks. A conversion of debt to equity would have recapitalized the banks at no cost to the taxpayer. Any upside would have been shared with the creditors.

 

We were repeatedly told, however, that the only choices were bailout or liquidate. GM, among others, proved that a false choice. Just as many of us have flown on bankrupt airlines, banks and automakers could have been operated in a reorganization.

 

Let’s also not forget that there was no authority under the TARP to assist automakers. Congress had voted down an auto bailout. But the READ THE REST (Bailouts leave a legacy of cronyism: Opposing view; By Mark Calabria; USA Today; 12/22/13 6:42 p.m. EST)

 

I bet those who can’t pay the Obamacare fines and taxes are jailed at the state level and reimbursed by the federal Government.

  

How Debtors’ Prisons Are Making A Comeback In America

http://www.zerohedge.com/news/2013-12-26/how-debtors-prisons-are-making-comeback-america

 

Apparently having 5% of the world’s population, but 25% of its prisoners simply isn’t good enough for neo-feudal America. No, we need to find more creative and archaic ways to wastefully, immorally and seemingly unconstitutionally incarcerate poor people. Welcome to the latest trend in the penal colony formerly known as America. Debtors’ prisons. A practice I thought had long since been deemed outdated (indeed it has been largely eradicated in the Western world with the exception of about 1/3 of U.S. states as well as Greece).

 

From Fox News:

 

As if out of a Charles Dickens novel, people struggling to pay overdue fines and fees associated with court costs for even the simplest traffic infractions are being thrown in jail across the United States.

 

Critics are calling the practice the new “debtors’ prison” — referring to the jails that flourished in the U.S. and Western Europe over 150 years ago. Before the time of bankruptcy laws and social safety nets, poor folks and ruined business owners were locked up until their debts were paid off.

 

Reforms eventually outlawed the practice. But groups like the Brennan Center for Justice and the American Civil Liberties Union say it’s been reborn in local courts which may not be aware it’s against the law to send indigent people to jail over unpaid fines and fees — or they just haven’t been called on it until now.

 

The Brennan Center for Justice at New York University’s School of Law released a “Tool Kit for Action” in 2012 that broke down the cost to municipalities to jail debtors in comparison with the amount of old debt it was collecting. It doesn’t look like a bargain. For example, according to the report, Mecklenburg County, N.C., collected $33,476 in debts in 2009, but spent $40,000 jailing 246 debtors — a loss of $6,524.

 

Don’t worry, I’m sure private prisons for debtors will soon READ THE REST (How Debtors’ Prisons Are Making A Comeback In America; Submitted by Tyler Durden who found a submission by Michael Krieger of Liberty Blitzkrieg; Zero Hedge; 12/26/13 14:32 -0500)

 

+++++++++++++++++++++++++++++++

Selling 1 Oz Gold Coin for $25 (when it’s worth over $1,200)

Sent: 12/28/2013 9:36 AM

 

The Sheep are asleep, that’s why Government handouts are working to keep Liberals in Power expanding the same Powers over Independence and Liberty.

 

VIDEO: Selling 1 Oz Gold Coin for $25 (when it’s worth over $1,500)

 

Posted by Mark Dice

Published: May 29, 2012

 

Mark Dice tries to sell a 1 ounce solid gold coin for $25 outside of a coin shop in San Diego, CA. HINT- It’s worth WAY more than $25, but does anyone want it? Mark Dice is a media analyst, political activist, and author who, in an entertaining and educational way, gets people to question our celebrity obsessed culture, and the role the mainstream media and elite secret societies play in shaping our lives. Check out Mark’s books in paperback on Amazon.com or e-book on Kindle, Nook, or Google Play.

 

Mark frequently stirs up controversy from his commentaries, protests, and boycotts, and has repeatedly been featured in major media outlets around the world.

Several of Mark’s YouTube videos have gone viral, earning him a mention on ABC’s The View, Fox News’ O’Reilly Factor, TMZ.com, and other mainstream media outlets. Mark has also been featured in (or attacked in) the New York Post’s Page Six, Rolling Stone Magazine, USA Today, The New York Daily News, and in major papers in Pakistan and Iran.

Mark Dice appears in several documentary films including Invisible Empire, The 9/11 Chronicles, and READ THE REST at bottom of Youtube Video

 

++++++++++++++++++++++++++

This Guy does a 100 Million Dollar Real Estate Investment Fund

Sent: 12/29/2013 8:38 AM

 

This guy does a 100 million dollar real estate investment fund ……..what he talks about is financially paramount!!!!!!

 

MUST WATCH!! 7 Steps to The Global Economic Reset & U.S. Dollar Collapse, he talks extensively on china’s currency goals and why:

 

https://www.youtube.com/watch?v=ICSoWW7pBeQ

 

Posted by Fabian4Liberty

Published: Nov 15, 2013

 

**NEW Global Economic Reset Audio Program **[[Private meeting where Fabian spoke to a room filled with top hedge fund managers and private equity fund managers and their top 100 clients. Over 3 hours of INFO. Find out the TRUTH about the Global Economic Reset]]**


ORDER NOW http://www.ger2015.com


Retail Price $59.95-Your Price $39.95*


Your Savings $20.00


Please get the word out to as many people as READ THE REST beneath the video

 

In this He talks about china’s ghost cities and what they are for ….

 

https://www.youtube.com/watch?v=Ba6hADXeY0w

 

Posted by Fabian4Liberty

Published: Nov 6, 2013

 

Here are some pretty important articles about the Global Economic Reset:
“Yuan Rocks Markets”

http://www.vancouversun.com/Business/…

China seeks world role for ‘people’s money’
http://www.france24.com/en/20131106-c…

China Strips Army Official of Position After Attack
http://www.nytimes.com/2013/11/04/wor…

 

READ THE REST beneath the video

 

This is his website:

 

http://ger2015.com/

 

http://www.fabian4liberty.com

++++++++++++++++++++++

Have you Watched this Guy Before?

Sent: 12/30/2013 9:11 AM

 

WORLD WAR 3? China US Prepare For War Global Economic Reset Update

 

http://www.youtube.com/watch?v=I6v_Vgn_QLI

 

*NEW Global Economic Reset Audio Program **[[Private meeting where Fabian spoke to a room filled with top hedge fund managers and private equity fund managers and their top 100 clients. Over 3 hours of INFO. Find out the TRUTH about the Global Economic Reset]]**

+++++++++++++++++++++++++++

These 2 stories show how the economic recovery could be manufactured with manipulating tactics!!!!!!!

Sent: 1/3/2014 9:13 AM

 

Is The NSA Changing Bank Accounts?

http://personalliberty.com/2014/01/03/is-the-nsa-changing-bank-accounts/

 

Has the National Security Administration (NSA) been changing the amounts held in the financial accounts of people it targets?

 

The question would seem absurd if it were not for a 308-page report on the NSA that was released on Dec. 12 by an official White House panel. Recommendation 31, “Institutional Measures for Cyberspace,” on page 37 and repeated on page 221 reads:

 

(1) Governments should not use surveillance to steal industry secrets to advantage their domestic industry;

 

(2) Governments should not use their offensive cyber capabilities to change the amounts held in financial accounts or otherwise manipulate the financial systems.

 

Upon reading the panels’ report, Trevor Timm (a surveillance expert from the Electronic Frontier Foundation) sent a tweet; it was retweeted by Glenn Greenwald, the journalist who originally leaked documents from Edward Snowden.

 

[Blog Editor: Trevor Timm Tweets on NSA cyber attacking financial systems]

 

Does it imply that the NSA is or has been altering the financial data of targeted individuals or agencies?

 

The NSA certainly has the ability to do so, because it has the information to do so. The German news source Der Spiegel reported Sept. 15 on an internal NSA branch known as “Follow the Money” (FTM). The branch monitors “international payments, banking and credit card transactions.” In a responsive statement, the NSA admitted to tracking financial information but only as it related to terrorist financing and terror networks. It states, “This information is collected through regulatory, law enforcement, diplomatic, and intelligence channels, as well as through undertakings with cooperating foreign allies and partners.”

 

One “cooperating” ally is apparently the international bank messaging system Society for Worldwide Interbank Financial Telecommunication or SWIFT. The system promotes itself as READ THE REST (Is The NSA Changing Bank Accounts? By The Dollar Vigilante; Personal Liberty Digest; 1/3/14) 

 

Is This The End Of The Phony Recovery?

http://personalliberty.com/2014/01/03/is-this-the-end-of-the-phony-recovery/

 

While the mainstream media continue to push the meme that the economy is in (slow) recovery, some important facts point out that things are not as rosy as you are being told. In fact, most Americans feel the recession never ended.

 

An analysis of retail sales post-Christmas indicates that in-store retail sales decreased more than 3 percent over the same week last year. Retail brick-and-mortar shopper traffic decreased by 21.2 percent over the same period in 2012. The lack of in-store sales didn’t translate to an increase in Web sales.

 

In September, homes sales dropped more than at any time in the last 40 months. New mortgage applications dropped 66 percent from READ THE REST (Is This The End Of The Phony Recovery? By Bob Livingston; Personal Liberty Digest; 1/3/14) 

 

+++++++++++++++++++++++++

Western Debt Exceeds 200 Year High, IMF Warns Of 1930′s Depression Style Write Offs Ahead

Sent: 1/4/2014 10:53 AM

 

http://beforeitsnews.com/economy/2014/01/western-debt-exceeds-200-year-high-imf-warns-of-1930s-depression-style-write-offs-ahead-2-2583726.html?utm_campaign=&utm_content=beforeit39snews-verticalresponse&utm_medium=verticalresponse&utm_source=direct-b4in.info&utm_term=http%3A%2F%2Fb4in.info%2FqRhN

 

(Before It’s News)

 

According To The IMF  in a “White Paper” just release at the end of December 2013, warns much of the Western world will require defaults, a “savings tax” and “higher inflation” to clear the way for Western Economic recovery as debt levels reach a 200-year high. This according to a new report by the International Monetary Fund. IMF.org pdf

 

The IMF working paper states that debt burdens in developed nations have become extreme by any historical measure and will require a wave of haircuts, either negotiated 1930s-style write-offs or the standard mix of measures used by the IMF in its “toolkit” for emerging market blow-ups. This would mean that America’s low income and middle class would feel the financial pain the most, as they did during the Great Depression.

 

“The sheer magnitude of the problem suggests that restructuring will be needed, for example, in the periphery of Europe, far beyond anything discussed in public to this point,” said the paper, by Harvard professors Carmen Reinhart and Kenneth Rogoff.  How will the public react now that the IMF has made public their “White Paper” that announces the coming 1930′s style depression that lies ahead?

 

The IMF white paper said policy elites in the West still are still clinging to the illusion that rich countries are different from poorer regions and can therefore chip away at their debts with a blend of austerity cuts, growth, and tinkering (“forbearance”). But history reveals that this simply is not true.

 

The presumption is that advanced economies “do not resort to such gimmicks” such as debt restructuring and repression, which would “give up hard-earned credibility” and throw the economy into a “vicious circle”. (Depression)

 

But the paper says this mantra borders on “collective amnesia” of European and US history, and is built on “overly optimistic” assumptions that READ THE REST (Western Debt Exceeds 200 Year High, IMF Warns Of 1930′s Depression Style Write Offs Ahead; By Josey Wales; Before It’s News; 1/3/14 4:43) 

__________________________

Edited by John R. Houk

© Tony Newbill

Know your Dollar – Explore Porter Stansberry Ad


Dollar Crash like burning plane

 

John R. Houk

© March 30, 2013

 

Below is the 51 page text of the video that pitches a subscription to Stansberry’s Investment Advisory. When you get weary of the promoted video or actually watch it to its end then “X” out of the webpage then you will get the pop-up that asks to if you desire to leave the page or stay on the page. If you choose “stay” you are transferred to the text I wrote below.

 

Stansberry often advertises via Conservative websites with some kind of hook similar to the “WARNING” in the opening paragraph. I am not necessarily a promoter of Stansberry’s business opportunities however the pitch leading up to the product promoted is often informative. This is one of those cases.

 

This huge article is something that is very informative on a perspective of the U.S. Dollar’s future viability as the global currency. Of course the essential problem appears to be the Dollar is based on debt rather than precious metals such as gold, silver and etc.

 

I grasp history better than economics so a little of the terms in this sales pitch is something I had to look up to understand it. For example I was clueless on the significance of the International Monetary Fund’s (IMF) creation of a back-up monetary reserve that is not an actual currency but is based on the weight of value of major nations of which currently the USA is the primary nation. This IMF back-up monetary reserve is called Special Drawing Rights (SDR):

 

… defined on the IMF website as,

 

“…an international reserve asset, created by the IMF in 1969 to supplement the existing official reserves of member countries.

 

The SDR is neither a currency, nor a claim on the IMF. Rather, it is a potential claim on the freely usable currencies of IMF members. Holders of SDRs can obtain these currencies in exchange for their SDRs in two ways: first, through the arrangement of voluntary exchanges between members; and second, by the IMF designating members with strong external positions to purchase SDRs from members with weak external positions. In addition to its role as a supplementary reserve asset, the SDR serves as the unit of account of the IMF and some other international organizations.” (Collapse of the Dollar – Only One “Party” can Speak the Truth; by Lee Cary; TeaParty911.com; 2/27/13 7:38 PM; READ ENTIRITY)

 

If you are like me you may desire a greater understanding of SDRs for it is a key component of the below essay. So for extra reading here are some links:

 

 

o   Gold Will Play A Key Role In Emerging Global Monetary Order

 

o   IMF calls for dollar alternative

 

o   Special Drawing Rights: The SDR Fact Sheet

 

o   Replacing the Dollar with Special Drawing Rights—Will It Work This Time?

 

 

JRH 3/30/13

Please Support NCCR

****************************

Stansberry’s Investment Advisory pitch. Porter Stansberry 2-2013

 

http://pro.stansberryresearch.com/1302PSIEOA1Y/LPSIP3JJ/

 

WARNING:

What you are about to read is controversial, and may be offensive to some audiences. Reader discretion is advised.

Hello. My name is Porter Stansberry.

Fourteen years ago, I founded Stansberry & Associates Investment Research. It has since become the largest firm of its kind in the world. We specialize in financial research, and serve hundreds of thousands of paid subscribers in more than 120 countries.

You may know of our firm because of the work we did over the last several years – helping investors avoid the big disasters associated with Wall Street’s collapse.

We warned people to avoid Fannie Mae and Freddie Mac, Lehman Brothers, General Motors and dozens of other companies that have since collapsed.

We even helped our subscribers find opportunities to profit from these moves by shorting stocks and buying put options. To my knowledge, no other research firm in the world can match our record of correctly predicting the catastrophe that occurred in 2008, and the rebound that has occurred since then.

The video presentation we created three years ago, to explain the financial crisis, and our thoughts on what would happen next, has become the most-watched on-line financial video in history, as far as we can tell.

But that’s not why I created this follow-up presentation.

I reference our success and experience with Wall Street’s latest crisis because we believe there is an even bigger crisis lurking –something that will shake the very foundation of America.

I know that to most people, the situation seems to be getting better. Stocks have recovered nearly all their losses. Real estate has rebounded. Unemployment and bankruptcies have dropped. But here’s the thing:

 

The unfortunate reality is that we are actually in a much more dangerous and precarious place today than we were five years ago.

 

 

And that is why I’ve spent a significant amount of time and money in the past few months preparing this presentation.

In short, I want to talk about a specific event that will take place in America’s very near future… which could actually bring our country and our way of life to a grinding halt.

This looming crisis is READ FROM THIS POINT AT SlantRight 2.0