Freedomwat.ch Staff

“We now have the diametrical opposite of the famous ‘Peter Schiff Was Right’ video (a compilation of 2006 and 2007 clips in which Schiff, a financial expert who subscribes to Austrian economics, predicted the deep recession that would follow the bursting of the housing bubble). The new, opposite video is a compilation of the 2005–2007 prognostications of Federal Reserve Chairman Ben Bernanke. In it, Bernanke is shown to have been just as embarrassingly wrong as Schiff was uncannily right. Could their differences in economic understanding have anything to do with this remarkable dichotomy?” Continue reading

“The largest U.S. banks would face a $120 billion total shortfall of long-term debt under a Federal Reserve proposal aimed at ensuring their failure wouldn’t hurt the broader financial system. Banks such as Wells Fargo & Co. and JPMorgan Chase & Co. will be required to hold enough debt that could be converted into equity if they were to falter, according to a Fed rule that was approved by a unanimous vote on Friday. The Fed’s proposal, which applies to eight of the biggest U.S. banks, requires debt and a capital cushion equal to at least 16 percent of risk-weighted assets by 2019 and 18 percent by 2022.” Continue reading

“If you want to buy a put to protect against losses in the Standard & Poor’s 500 Index, often you’ll pay twice as much as you would for a bullish call betting on gains. New research suggests the divergence is a consequence of financial institutions hoarding insurance against declines in stocks. Deutsche Bank AG says in a Dec. 6 research report that the likeliest explanation may be that demand is being created for downside protection among banks that are subject to stress test evaluations by federal regulators. In short, financial institutions are either hoarding puts or leaving places for them in their models should markets turn turbulent.” Continue reading

“With Citi’s chief economist proclaiming ‘only helicopter money can save the world now,’ and the Bank of England pre-empting paradropping money concerns, it appears that Australia’s largest investment bank’s forecast that money-drops were 12-18 months away was too conservative. Over the last few months, in a prime example of currency failure and euro-defenders’ narratives, Finland has been sliding deeper into depression. As The Telegraph reports, this is a deeper and more protracted slump than the post-Soviet crash of the early 1990s, or the Great Depression of the 1930s. And so, having tried it all, Finnish authorities are giving every citizen a tax-free payout of around $900 each month!” Continue reading

“The Alternative Bank Schweiz (ABS) caused shockwaves with a letter sent to all clients informing them that it would begin imposing interest charges on deposits in 2016. For current accounts, the bank said it would impose a -0.125-percent rate, while slapping a -0.75-percent rate on client deposits higher than 100,000 Swiss francs. ABS, which grew out of the ideals the 1960’s protest movement, justified the unprecedented development by saying it would provide manoeuvering room for financing ‘meaningful projects’. The Swiss central bank introduced a negative deposit rate in January after it abruptly abandoned its three-year effort to hold down the franc’s exchange rate to protect exports.” Continue reading

“Central planners around the world are waging a War on Cash. In just the last few years: Italy made cash transactions over €1,000 illegal; Switzerland proposed banning cash payments in excess of 100,000 francs; Russia banned cash transactions over $10,000; Spain banned cash transactions over €2,500; Mexico made cash payments of more than 200,000 pesos illegal; Uruguay banned cash transactions over $5,000; and France made cash transactions over €1,000 illegal, down from the previous limit of €3,000. An increasing number of government restrictions are encouraging Swedes to dump cash. The pretexts are familiar…fighting terrorism, money laundering, etc.” Continue reading

“Banknote and passport printer De La Rue is to cut about 300 jobs and halve its number of production lines to four as it battles a global decline in demand for cash. The company, which produces notes for the Bank of England, has set out a restructuring plan that will see almost 10pc of its workforce go as it consolidates its banknote printing operations at three centres. The introduction of plastic notes is causing a revolution in the industry, as printers struggle to deal with he challenges of printing on new materials. The banknote printing industry is facing the challenges of global overcapacity, with many of the printers state-backed.” Continue reading

“The safe deposit box, once a staple of any bank branch, has itself become an antique. Banks are reporting that safe deposit box use is on the decline, with occupancy rates dropping quickly as customers buy home safes, digitize and store documents electronically, and, in this era of conspicuous consumption, prefer to display their valuables rather than stash them away for special occasions. Jerry Pluard, the owner of Safe Deposit Box Insurance Coverage LLC, an Illinois company that insures the contents of the boxes, estimates that nearly half — 45 percent — of safe deposit boxes in the country are empty today.” Continue reading

“Many commentators have noted that mainstream economists are calling to do away with cash entirely. It would be easy to scoff at these proposals as completely insane if the Fed hadn’t published a paper back in 1999 suggesting the implementation of a ‘carry tax’ or taxing actual physical cash using an expiration date if depositors aren’t willing to spend the money. The author of this lunacy is a visiting scholar with the ECB, the Fed, the IMF, and the Swiss National Bank. The fact that two of those groups have already imposed negative interest rates (ECB and SNB) should give warning that these sorts of ideas are actually taken very seriously by Central Banks.” Continue reading

“Cash in hand is different. It is physical. Paper. You can do what you want with it. And you don’t pay a negative interest rate. Which is why the feds want to ban cash… They say it will make it easier for them to stimulate the economy. As long as you can hold physical cash, you have an easy way to escape negative interest rates: You just take the money out of the bank and put it in your home safe. But if physical cash is illegal, you have no choice. You have to keep ‘your money’ on deposit at the bank… and take whatever negative rate the bank imposes on you. Of course, the idea that taking away your money will stimulate economic growth is ridiculous.” Continue reading

“U.S. central bankers not only regularly leak secret information about monetary policy, but the leaks are so predictably timed that a savvy investor without access to the leaked information could make money just by buying stocks in certain weeks. The weeks that have excess stock-market returns are generally the same in which there are closed Fed Board meetings, and increased volatility in short-term interest-rate futures contracts suggests that it is information on monetary policy from those meetings that is driving the pattern.” Continue reading

“The U.S. Government failed to deter them through threats of criminal prosecution, and clumsy attempts to intimidate their families. Now four former Air Force drone operators-turned-whistleblowers have had their credit cards and bank accounts frozen, according to human rights attorney Jesselyn Radack. Michael Haas, Brandon Bryant, Cian Westmoreland and Stephen Lewis, who served as drone operators in the US Air Force, have gone public with detailed accounts of the widespread corruption and institutionalized indifference to civilian casualties that characterize the program.” Continue reading