Monthly Archives: March 2013

Jim Rickards: Forget Cyprus, Nobody Is Stealing from Depositors More than Bernanke

"'At this stage of a recovery normalized interest rates should be around 2-3%,' says Rickards. 'Apply that 2-3%…to the entire multi-trillion-dollar deposit base of the United States of America and that’s a $400-billion per year wealth transfer from savers to bankers so they can pay themselves bigger bonuses or make crazy bets.' Over time, Rickards says, that wealth transfer could reach $1 trillion. Rickards says zero interest rates are just one way the Fed is fleecing depositors. Others include increasing inflation, which Bernanke is trying to do, and taxing deposits like Cyprus is pushing for." Continue reading →

Continue ReadingJim Rickards: Forget Cyprus, Nobody Is Stealing from Depositors More than Bernanke

Bank of Japan vows ‘all means available’ to smash deflation

"The new team is much closer to the Fed and the Bank of England, but critics say the bank risks becoming a mere branch of the finance mininstry -- where Mr Kuroda spent much of his careers. The great fear is that Japan will lurch from stable deflation to an unstable price spiral that suddenly causes investors to question the integrity of the country's 23 trillion public debt, the world's largest. The IMF says Japan's gross debt will reach 245pc of GDP this year. It has been possible so far because banks have gobbled up government bonds worth 100pc of GDP but this makes the banking system ever more vulnerable to a sudden rise in rates." Continue reading →

Continue ReadingBank of Japan vows ‘all means available’ to smash deflation

Wonder how bad legislation gets passed? Probably not, but in case you do…

This is Colorado, but it could be anywhere (“Pass the bill to see what’s in it“?): This would be the same Colorado Democrat, Evie Hudak, who *bungled stats and dissed a rape victim. So yeah, don’t read the pesky words, just flip a coin. Head it passes, tails it doesn’t. And we the people who [...]

Continue ReadingWonder how bad legislation gets passed? Probably not, but in case you do…

New Zealand Plans Cyprus-Style Bank Confiscations

"Is it coincidence or something more? Globalists that are trying to create an international monetary solution often implement programs in various countries at once. The question arises as to whether Money Power itself – the banking entities and those behind them that control a good deal of the world's wealth – have decided to 'send a message' about the relationship between citizens and their banks. Cyprus and New Zealand are well down this road. Is a message being sent to savers? Is this going to become the new normal in the West?" Continue reading →

Continue ReadingNew Zealand Plans Cyprus-Style Bank Confiscations

Is Spain Preparing For Its Own Deposit “Levy”?

"While Spain's economy minister Luis De Guindos proclaimed in the Senate today that bank deposits under EUR100,000 are 'sacred' and that 'Spanish savers should stay calm,' Spain, it would appear, has changed constitutional rules to enable a so-called 'moderate' levy on deposits- as under previous Spanish law this was prohibited. For now, they claim the 'levy' will be 'not much higher than 0%' and is mainly aimed at regions in Spain that have 'made no effort to collect taxes' based on new revenue expectations." Continue reading →

Continue ReadingIs Spain Preparing For Its Own Deposit “Levy”?

Peter Schiff Global Investor Newsletter – March 2013

"The Keynesians have overlooked a much more dangerous and demonstrable pitfall of their own creation: something that I call 'The Stimulus Trap.' This condition occurs when an economy becomes addicted to the monetary stimulus provided by a central bank, and as a result fails to restructure itself in a manner that will allow for robust, and sustainable, growth. The trap redirects capital into non-productive sectors and starves those areas of the economy that could lead an economic rebirth. The condition is characterized by anemic growth (masked by the delivery of perpetual stimulus) and deteriorating underlying economic fundamentals." Continue reading →

Continue ReadingPeter Schiff Global Investor Newsletter – March 2013

Peter Schiff: Cyprus Lifts the Curtain

"The decision to inflict pain on both large and small depositors was almost universally described as a historic blunder. But the mistake was to do so in a manner that was not camouflaged by financial smoke and mirrors. In truth, rank and file depositors have been paying, and will continue to pay, for all manner of bailouts and stimulus. Whether it's through lower interest payments on deposits, inflation, higher taxes, higher borrowing costs, or the accumulation of unsustainable sovereign debt, Cypriots will bear the burden of past profligacy. But the new plan for Cyprus was far too transparent, simple, and direct to survive in a world dependent on deceit and obfuscation." Continue reading →

Continue ReadingPeter Schiff: Cyprus Lifts the Curtain

Bernanke: ‘Bank Confiscation Unlikely In America’; ‘No Idea How Much Money We’re Giving The Banks’

"Ben Bernanke does not say bank or wealth confiscation, like we’re seeing in Cyprus, would be impossible here in the U.S. But rather he says it would be extremely unlikely. My question is; Would it have been extremely unlikely for such a thing to happen in Cyprus a few years ago?" Continue reading →

Continue ReadingBernanke: ‘Bank Confiscation Unlikely In America’; ‘No Idea How Much Money We’re Giving The Banks’