Imperial Hubris

The Strange Tale of Swiss Banking – And What It Means for You

"It is interesting that remaining private banks are switching from partnerships to corporations. Judicially enforced corporate personhood distorts markets and enables market behavior that would not otherwise be feasible or tolerated. What remains most puzzling is that this most powerful industry composed primarily of private Swiss banks allowed itself to be virtually ruined in a few years' time. The precedent has been set, however. One nation may indeed interfere judicially in the affairs of another and force compliance, part of a wider assertion of privilege by a US government that is attempting to turn banking systems around the world into part of the US tax collection effort." Continue reading →

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U.S. tax deal jeopardizes Canadians’ privacy

"Imperils the privacy of up to a million Canadians and creates a two-tier level of citizenship in this country, discriminating against citizens based on their ethnic origin. It could include so-called border babies, Canadians whose mothers gave birth across the border for medical reasons; Canadians who have returned after holding green cards for work in the U.S.; Canadian snowbirds who could be deemed 'U.S. persons' based on the length of their stay in the sun; and Canadians born to a U.S. parent who may have never set foot in the U.S. If you are a Canadian holding a joint account with a U.S.-born spouse, your financial information, too, could be headed to the files of the IRS — and perhaps beyond." Continue reading →

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The Shocking Real Reason for FATCA, and What Comes Next

"The central planners at the G20 and OECD devised what they call a new 'global standard' of automatic financial information exchange between governments (i.e., GATCA) modeled on the US’s FATCA. However, GATCA would have never been possible in the first place had the US not cleared the path with FATCA. The G20 and OECD needed the US—the sole financial superpower (for now at least)—to strong-arm and cram down the throats of the rest of the world this privacy-killing measure. There’s no other entity on the planet with the capability to do so. The very big stick the US wielded was access to the US financial system and the world’s premier reserve currency." Continue reading →

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Putin spokesman: S&P’s downgrade of Russia’s rating was directive

"Russian President Vladimir Putin’s spokesman Dmitry Peskov has said the downgrade of Russia’s rating outlook by the Standard & Poor’s ratings agency was due to a directive rather than objective circumstances. The downgrade decision 'was clearly directive, not objective,' Peskov told journalists Friday, adding that such forecasts reduce the degree of credibility of such agencies. On March 20, S&P said it revised its outlook on the Russian Federation to negative from stable. Fitch Ratings on Thursday revised the outlook on Russia's long-term foreign and local currency Issuer Default Ratings (IDR) to negative from stable and affirmed the IDRs at 'BBB'." Continue reading →

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Visa, Mastercard block US-sanctioned Russian banks

"International payment system Mastercard has stopped serving clients of seven Russian lenders, after the US issued sanctions against it regarding Russia’s position over the Ukrainian turmoil. Rossiya Bank was blocked by both Mastercard and Visa, with the latter also cutting ties with Sobinbank, SMP Bank and Investcapitalbank. Washington’s move is meant to put pressure on people they see as members of President Vladimir Putin’s 'inner circle'. The bank’s owner, Yury Kovalchuk, is on the list as well, as an individual. Visa and Mastercard have a record of bowing to political decisions from Washington, most notably in blocking donations to the WikiLeaks whistleblower website." Continue reading →

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Bill Bonner: The Coming Bull Market in Gold Stocks Is Going to Be BIG

"Most empires were financed on the loot captured from their conquered opponents. But the US Empire depends not on generals, but on bankers. Bernanke – the 'Hero of ’08' – kept the credit flowing at a crucial moment… He kept the empire on schedule… and on target… for its rendezvous with disaster. [..] Debt has its lifecycle. So do empires. Both expand. Then both… without exception… contract. An empire funded by debt is an especially ungainly, grotesque thing. It lurches from one disaster to another – going deeper and deeper into debt each time. But it is not the debt that kills empires. Debt is just a razor conveniently left on the side of the tub." Continue reading →

Continue ReadingBill Bonner: The Coming Bull Market in Gold Stocks Is Going to Be BIG

Now, in Second Place Is …

"The yuan in October emerged as the world’s second-most used currency in global trade finance. Countries generally trade through the dollar. They convert euros (or whatever the local currency happens to be) into greenbacks to buy some load of widgets from the Chinese. Then, China takes those dollars and converts them into yuans. But now countries are increasingly bypassing the buck and just dealing directly in the yuan. Yes, the dollar still plays a role in 81% of world trade, and the yuan is only at 8.7%. But all big trends start off small – the yuan was less than 2% of trade as recently as January 2012 – and this, mark my words, is part of a much bigger trend. And it will impact your life." Continue reading →

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Is Bitcoin Becoming the Anti-Dollar?

"It's not impossible to attack Bitcoin, but the effort to do so isn't trivial. Plus, there are ten thousand bright, young, adaptive people working on the technology every day, and their numbers are rising. If these people adapt and cooperate, any attacks will have temporary effects. (Even a full shut-down of the Internet wouldn't stop it for long, but I'll leave that discussion for another time.) If the Chinese, and/or Indians, and/or Russians start using Bitcoin as a way around the dollar, the world will change, and quickly. And that's looking more and more likely. These are interesting times. Those who break their stasis – who act and adapt – will not only thrive, but will find adventure and satisfaction along the way." Continue reading →

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US Regulators: the World’s Bitcoin Police?

"It’s clear that some of the top cops in the United States aspire to regulate virtual currencies on a global scale. A series of meetings took place last week in response to the criminal activities lawmakers have witnessed using distributed money such as bitcoin. What does this mean for those starting bitcoin-based businesses in the US? And what impact will this have on virtual currencies in the global economy?" Continue reading →

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Paul Craig Roberts: As Ye Sow, So Shall Ye Reap

"Influenced by neoconservative warmongers who advocated America using its 'sole superpower' status to establish hegemony over the world, Washington let hubris and arrogance run away with it. The consequence was that Washington destroyed its soft power with lies and war crimes, only to find that its military power was insufficient to support its occupation of Iraq, its conquest of Afghanistan, and its financial imperialism. Now seen universally as a lawless warmonger and a nuisance, Washington’s soft power has been squandered. With its influence on the wane, Washington has become more of a bully. In response, the rest of the world is isolating Washington." Continue reading →

Continue ReadingPaul Craig Roberts: As Ye Sow, So Shall Ye Reap