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Feb 18, 2015

[Bizarro-world] Interest rates at a 5,000 years bottom

From Ed Conway:
In case you doubted interest rates had ever been lower than today, here’s a chart going all the way back to 3000BC

Jan 13, 2015

UK Prime Minister Proposes Encryption Ban: What That Means for Bitcoin

(Inside Bitcoins) -- UK Prime Minister David Cameron has proposed a ban on certain applications that allow users to send end-to-end encrypted messages to each other over the Internet. Certain privacy-conscious mobile apps, such as Telegram, have recently allowed users to encrypt their messages locally, which means there is no one for the UK Government to subpoena when they’re trying to decrypt a target’s online communications. Even closed-source applications, such as iMessage and WhatsApp, could be targeted in a mass shutdown of tools for private online communication in the UK.  (MORE)

Dec 21, 2014

How the CIA Launched the «Financial Pearl Harbor» Attacks on Russia and Venezuela

From StrategicCulture:
By Wayne MADSEN | 20.12.2014 | 00:00

Central Intelligence Agency director John Brennan's long familiarity with Saudi Arabia, owing to the time he spent there as the CIA station chief in Riyadh in the 1990s and his knowledge of Saudi oil operations, has paid off. Petroleum industry insiders claim that Brennan's agents inside Saudi Aramco convinced the firm's management and the Saudi Oil Ministry to begin fracking operations in order to stimulate production in Saudi Arabia's oldest oil fields. The Saudis, who are not known for their hands-on knowledge of their nation’s own oil industry, agreed to what became an oil pricing catastrophe which would not only affect Saudi Arabia but oil producing nations around the world from Russia and Venezuela to Nigeria and Indonesia.

By pumping high-pressure salt water into older wells, some at a depth of three to six thousand feet, an inordinate amount of pressure was built up. The CIA's oil industry implants knew what would occur when the fracking operations began. Due to the dangerously high water pressure, the Saudis were forced continuously pump oil until the pressure became equalized. That process is continuing. If the Saudis ceased pumping oil, they would permanently lose the wells to salt water contamination. In the current "pump it or lose it" situation, the Saudis are forced to pump at a rate that may take up to five years before they can slow down production rates to pre-glut levels.

Dec 14, 2014

Syrian No-Fly-Zone a Bid to Save Al Qaeda

by Tony Cartalucci, Activist Post:
Recent strikes on Syria by Israel have been alleged to be part of a regional plan by the US, Saudi Arabia, Turkey and Israel to establish a no-fly-zone (NFZ) over Syria, just as NATO did in Libya in 2011 effectively handing the entire nation over to Al Qaeda and now “Islamic State” terrorists. DEBKA File has suggested in its article, “Israel air strikes wiped out Russian hardware for thwarting US no-fly zone plan over Syria,” that:

High-ranking American military sources revealed Monday, Dec. 8, that Israel’s air strikes near Damascus the day before wiped out newly-arrived Russian hardware including missiles that were dispatched post haste to help Syria and Hizballah frustrate a US plan for a no-fly zone over northern Syria.
Regardless of the veracity of this report, attempts to justify and impose a NFZ over Syria has been a stated goal of Western policymakers since 2011 when a similar ploy was used under the guise of “humanitarian intervention” in Libya.

Dec 6, 2014

TOTAL MADNESS: Reckless Congress Just ‘Declared War’ On Russia, Ron Paul Warns

from ZeroHedge:
Yesterday the US House passed what I consider to be one of the worst pieces of legislation ever. H. Res. 758 was billed as a resolution “strongly condemning the actions of the Russian Federation, under President Vladimir Putin, which has carried out a policy of aggression against neighboring countries aimed at political and economic domination.” In fact, the bill was 16 pages of war propaganda that should have made even neocons blush, if they were capable of such a thing.

Dec 5, 2014

The Biggest Bubble in History is About to Pop

From Zero Hedge:

If you are an investor, your big concern should not be about what to stocks… but what happens when the bond bubble goes bust.

For 30+ years, Western countries have been papering over the decline in living standards by issuing debt. In its simplest rendering, sovereign nations spent more than they could collect in taxes, so they issued debt (borrowed money) to fund their various welfare schemes.

This was usually sold as a “temporary” issue. But as politicians have shown us time and again, overspending is never a temporary issue. Today, a whopping 47% of American households receive some kind of Government benefit. This is not temporary… this is endemic.

All of this is spending is being financed by borrowed money… hence, the bond bubble, the biggest bubble in financial history: an incredible $100 trillion monster that is now growing by trillions of dollars every few months.

We do not write that point for effect. The US alone has issued over $1 trillion in NEW debt in the last eight weeks.

The reasons it did this? Because it doesn’t have the money to pay off the debt that is coming due from the past… so it simply issues NEW debt to raise the money to pay back the OLD debt.

Sounds a lot like a Ponzi scheme… but the US is not alone in this regard. Globally, the sovereign debt bubble is over $100 trillion in size. Just about every major nation on the planet is sporting a Debt to GDP ratio of 100%+ and that is just including “on the balance sheet” debts… not unfunded liabilities like Medicare or Social Security.

This is why the Fed and every other Central Bank on earth is terrified of interest rates rising; because anything even resembling the normalization of interest rates would mean entire countries going bust.

Remember when interest rates move, they tend to move quickly.