1. FINANCIAL CRISIS END-GAME - UK's RBS nearly collapse

[pywong]

Excellent article explaining the end-game scenario. If you are too lazy to read, then just go out and buy gold.

We are seeing the bankruptcy of every Western government that has made too many big promises to too many voters regarding free healthcare and guaranteed retirement. It will all point to the politicians.

The academics say "no." They keep telling all of us that everything is okay, that a few more trillion-dollar deficits will solve the problem. We will not have is a restoration of anything resembling the financial world that existed prior to September 2008. That world is gone.

Meltdown cover

"At the very core of the free-market economy, as Mises said in 1912, is the monetary system."

Preserve your assets by not believing the official assurances. Put your money where the experts tell you that you should not put your money. You should take your money out of those segments of the economy into which the experts say you should put your money, claiming it will soon boom.

Conclusion
This time it's different. This time the fractional-reserve banking system has shot its wad. You had better adjust your portfolio, your career plans, and your retirement plans accordingly.

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Also listen to this audio on Meltdown, an interview of Tom Woods: http://mises.org/MultiMedia/mp3/inte...02-16-2009.mp3

[pywong]

" In a warning to hedge fund traders who may try to take advantage of a currency shortage, the government threatened to intervene in currency markets to support the won against perceived manipulation. Region wide expansion of currency swap arrangements denominated in dollars from 80B to 120B is being pursued at this week’s ASEAN+3 Finance Minister’s Conference."

South Korean Central Bank.

"The money power preys on the nation in times of peace, and conspires against it in times of adversity. It is more despotic than monarchy, more insolent than autocracy, more selfish than bureaucracy. It denounces, as public enemies, all who question its methods or throw light upon its crimes."

–Abraham Lincoln

Did Minerva Actually Do the South Korean Government a Favor?
23 February 2009

Though it may not have been his intention, Minerva may have actually done the government a favor with his post late last year predicting a "Yellow Rabbit" crisis during late February to March of this year.

It was this prediction that put him in the legal cross-hairs of Lee Myungbak's government. His since fired finance minister, Kang Mangsoo, publicly responded and even offered to meet one on one. When a man named Park was arrested, jailed without bond and indicted for being Minerva, the original charge was related to Minerva's claim that the government had told currency traders to stop selling won and buying dollars on December 27th. Nevertheless, it was the March crisis prediction that really set the government on edge.

The problem is that the Korean banks and other financial institutions borrowed a lot of money denominated in foreign currencies, particularly the Japanese yen and the American dollar. A lot of that money is coming due over the next month or so and Minerva's fear was that Japan banks, most of which close their books at the end of March, would not want to continue financing Korean financial institutions. This situation would be exacerbated by Japanese hedge funds (or Yellow Rabbits) betting aggressively against the won and foreign indirect investment money (money invested in the bond and stock markets) flowing out of Korea.

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[pywong]

Sounds familiar: Baltic tigers got whacked. Latvia govt collapses. Now watch the IMF come and screw them big-time. Again, it will be the Rats who pay the price. Keep monitoring. You will see the Rat Race played out all over the world. Currently, we have a 1 in 100 year opportunity to see it being played fast-forward in real-time. All the tricks are being exposed for all to see.

Latvia’s government collapses
By David L. Stern
Published: February 20, 2009

Latvia’s center-right coalition government collapsed Friday, a victim of the country’s growing economic and political turmoil and the second European government, after Iceland, to disintegrate because of the international financial crisis.

The government in Riga, faced with forecasts of a severe drop in the economy this year, was the first in Eastern Europe to succumb to turmoil caused by the crisis. Its collapse rounded out a week that saw worries about feeble investment, banks and output in Central and Eastern Europe coursing through international markets.

Latvia has had a history of revolving-door politics and complex coalitions since pulling free of the Soviet Union in 1991. Prime Minister Ivars Godmanis, who presented his resignation to President Valdis Zatlers on Friday, had been in power only since December 2007. But the precipitous plunge of Latvia’s economy, which helped provoke the worst riot since 1991 last month, played a major part in the government’s downfall.

Godmanis said he would continue to govern until a new coalition was formed.

"I am ready to continue working, but I think that responsibility for the consequences created by this government’s resignation must be taken by those parties that overturned the government," Godmanis said, according to news reports. Two of his coalition partners, the People’s Party and the Greens and Farmers’ Union, had demanded his ouster, he added. His departure comes at a critical juncture for Latvia, a former Soviet state with 2.2 million people. After entering the European Union in 2004, Latvia and its two neighbors, Estonia and Lithuania, posted Europe’s highest growth figures, earning the moniker the "Baltic Tigers." Now Latvia shows the Continent’s biggest losses.

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[pywong]

[size=14pt]This is the key to over-turning the Rat Race. As is the case all over the world, the police will be there to safe-guard the Ruling Class. If you still don't get it, read Animal Farm.

Britain faces summer of rage - police

Middle-class anger at economic crisis could erupt into violence on streets

Paul Lewis
Monday 23 February 2009

Police are preparing for a "summer of rage" as victims of the economic downturn take to the streets to demonstrate against financial institutions, the Guardian has learned.

Britain’s most senior police officer with responsibility for public order raised the spectre of a return of the riots of the 1980s, with people who have lost their jobs, homes or savings becoming "footsoldiers" in a wave of potentially violent mass protests.

Superintendent David Hartshorn, who heads the Metropolitan police’s public order branch, told the Guardian that middle-class individuals who would never have considered joining demonstrations may now seek to vent their anger through protests this year.

He said that banks, particularly those that still pay large bonuses despite receiving billions in taxpayer money, had become "viable targets". So too had the headquarters of multinational companies and other financial institutions in the City which are being blamed for the financial crisis.

Hartshorn, who receives regular intelligence briefings on potential causes of civil unrest, said the mood at some demonstrations had changed recently, with activists increasingly "intent on coming on to the streets to create public disorder".

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[pywong]

Feb 11 09
(Reuters) - Hypo Real Estate (HRXG.DE) on Wednesday again went to the German government bailout program for help. It is just one in a long list banks getting aid.
http://www.reuters.com/article/euIpo...090211?sp=true

Following are details about major bank bailouts since September:

GERMANY:

Feb. 11 -- Hypo Real Estate (HRXG.DE) says it will take another 10 billion euros ($13 billion) in guarantees from Germany's bank rescue fund, bringing its total to 52 billion. Jan. 8 -- Commerzbank (CBKG.DE) says the government will take a stake of 25 percent plus one share and the bank will get 18.2 billion euros in state capital and 15 billion in guarantees.

Dec. 1 -- State of Bavaria says it will inject 10 billion euros into BayernLB (BLGGgg.F) and bank will get 20 billion euros of state guarantees.

Sept. 29 -- Germany agrees to give Hypo Real Estate the bulk of 35 billion euros in credit guarantees.

AUSTRIA:

Nov. 3 -- Government buys 99.8 percent of Kommunalkredit KKAT.UL for a nominal sum and says it will inject fresh capital. It takes 49 percent stake in Franco-Belgian group Dexia (DEXI.BR) and 50.8 percent stake in Oesterreichische Volksbanken AG (OTVVp.VI) for 1 euro each.

BELGIUM, FRANCE, LUXEMBOURG & NETHERLANDS:

Jan. 30 -- BNP Paribas, Belgium and Fortis agree on revisions to the deal to carve up Fortis (FOR.BR). BNP Paribas (BNPP.PA) is to take a 10 percent stake in Fortis Insurance Belgium. It is to buy 75 percent of Fortis Bank Belgium and 16 percent of Fortis Bank Luxembourg, as agreed in October.

Oct. 5 -- BNP Paribas takes control of the Belgian and Luxembourg businesses of Fortis, which will make Belgium the French bank's biggest shareholder.

Sept. 29 -- The Belgian, Dutch and Luxembourg governments agree to inject 11.2 billion euros into Fortis. Each government is to take a 49 percent stake in the Fortis banks in their countries.

September -- Belgian, French and Luxembourg governments and shareholders pledge 6.4 billion euros to bail out Dexia.

BRITAIN:

Nov. 28 -- Government buys 58 percent stake in Royal Bank of Scotland (RBS) (RBS.L) for 15 billion pounds.

Oct. 13 -- Announces plans to give RBS, Lloyds TSB (LLOY.L), and HBOS a 37 billion pound cash injection and take equity stakes in each of the banks

Sept. 29 -- Nationalises Bradford & Bingley, saying the Treasury will take over its 50 billion pound mortgage portfolio, and will sell its deposits and branches to Spanish bank Santander

DENMARK:

Sept. 22 -- Central bank steps in to secure liquidity at Ebh Bank (EBH.CO).

GREECE:

Jan. 27 -- Government says it will spend up to 5 billion euros to boost banks' capital through buying preferred shares. National Bank (NBGr.AT) is to get a capital boost of 350 million euros, EFG Eurobank (EFGr.AT) and Alpha Bank (ACBr.AT) 950 million each, Piraeus Bank (BOPr.AT) 370 million and ATEbank (AGBr.AT) 675 million.

ICELAND:

Oct. 9 -- Takes control of Kaupthing

Oct. 7 -- Takes control of Landsbanki

Sept. 29 -- Agrees to buy a 75 percent stake in Glitnir for 600 million euros ($878 million)

IRELAND:

Jan. 15 -- Government nationalises Anglo Irish Bank. Ireland agreed in December to inject an initial 1.5 billion euros of core Tier 1 capital via preference shares for 75 percent of all voting rights in the bank.

KAZAKHSTAN:

Feb. 2 -- Government says it will buy 78.14 percent stake in top bank BTA BTAS.KZ and is looking to rescue No.4 bank Alliance Bank (ALLBq.L) by buying a 76 percent stake and putting $200 million deposit in to boost liquidity.

RUSSIA:

Feb. 5 -- Russia says it will spend at least another 400 billion roubles ($11.14 billion) helping banks and is to inject 200 billion roubles into VTB (VTBR.MM). Sberbank (SBER03.MM) may also get money.

UNITED STATES:

Jan. 16 -- Government gives Bank of America Corp (BAC.N) a $20 billion bailout and a guarantee for about $100 billion of potential losses on toxic assets.

Nov. 23 -- Announces rescue package for Citigroup Inc (C.N), agreeing to shoulder most losses on about $306 billion in risky assets. Another $20 billion of new capital is offered the following day.

Oct. 14 -- Announces plans to take equity stakes worth up to $250 billion in financial institutions, with half going to Citigroup Inc, JPMorgan Chase (JPM.N), Morgan Stanley (MS.N), Goldman Sachs Group (GS.N), Bank of America Corp, Merrill Lynch & Co, Wells Fargo & Co (WFC.N), State Street Corp (STT.N) and Bank of New York Mellon Corp (BK.N). (Writing by Jijo Jacob and David Cutler; editing by Karen Foster)

[pywong]

Nothing is safe. Your bank deposits might be safe, but not your pension, or your insurance policy, or your annuity.

The Bank-Insurance Daisy Chain
March 1st, 2009
By David Goldman

5-year credit protection on most of the big insurers (Met Life, Hartford, Prudential) traded last week at nearly 1,000 points above LIBOR after the S&P downgrades.

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[pywong]

It has always been the case through history. The Rat Race runs well during good times. But during extremely bad times, people have no bread, they start to protest and governments fall.

MI5 ALERT ON BANK RIOTS

Sunday March 1,2009
By Geraint Jones

TOP secret contingency plans have been drawn up to counter the threat posed by a “summer of discontent� in Britain.

The “double-whammyâ€� of the worst economic crisis in living memory and a motley crew of political extremists determined to stir up civil disorder has led to the Â*extraordinary step of the Army being put on Â*standby.

MI5 and Special Branch are targeting activists they fear could inflame anger over job losses and payouts to failed bankers.

More…

[pywong]

Looks like those guys looking to migrate to the West, won't have much to choose from.

US: JPM, GE are headed for collapse. JPM is too large to bail and the Federal Reserve is in a panic as they don't have enough funds to do it. As at 31/12/08, the US owes foreign investors USD 3.125 trillion

Meanwhile at good ole Britain, things are just as bad:

http://www.marketoracle.co.uk/Article7526.html
http://www.marketoracle.co.uk/Article9082.html
A banking collapse could trigger debt in the UK to 550% of GDP of Sterling 1.2 trillion,ie Sterling 6.6 trillion. Sounds trilling.

What about Europe?
See The Bill that could break up Europe, by the Economist, 26 Feb 09
Latvia is going.
Bulgaria, Romania and Hungary in total threatening to default on some $2 trillion of debt to the European banks.
If that happens, Austria, Italy and France are most exposed, for example Austrian banks have loaned as much as 70% of the countries GDP to Eastern Europe.

Next we have Spain and Greece which is reflected in the reduced credit ratings of less than triple AAA enroute towards junk bond status

http://www.marketoracle.co.uk/Article9241.html

[pywong]

If we use the Rat Race and Conspiracy Theory Model, we can see that the media is playing their role of driving the Rats into a panic. Soon the Rats will be happy to give up their freedom to the politicians who will promise them liberation from their economic misery in exchange.

Meanwhile, the Financial Class is on-track with their plans for global domination with a repeat of their playbook in 1907. Create mass panic through bank failures, drive the economy into the boondocks, transfer taxpayer money to the banks through bailouts and finally, when prices of assets are low enough, sweep it up enmasse. The emotions through the ages never change - greed and fear, compounded with stupidity and ignorance.

Quick likely, they will trigger a US sovereign default to get out of her debts to the foreign govts and come up with the new currency, the Amero. The greed of the Financial and Ruling Class will cause untold misery worldwide, and may even trigger war.

Singapore will not be spared. A Singaporean told me that the GLCs have lost SGD 58 B up to Nov 08 and when the latest figures are published, the losses will be much higher. This was a surprise to me.

Meanwhile, keep your money in gold and continue to monitor events as it unfold. If you are the praying type, praying may help.

AP: Recession on track to be longest in postwar period

Sunday March 8, 9:47 pm ET
By Deb Riechmann, Associated Press Writer

The 1981-82 recession was painful; current struggles could cut even deeper into US economy

WASHINGTON (AP) -- Factory jobs disappeared. Inflation soared. Unemployment climbed to alarming levels. The hungry lined up at soup kitchens.

It wasn't the Great Depression. It was the 1981-82 recession, widely considered America's worst since the depression.

That painful time during Ronald Reagan's presidency is a grim marker of how bad things can get. Yet the current recession could slice deeper into the U.S. economy.

If it lasts into April -- as it almost surely will -- this one will go on record as the longest in the postwar era. The 1981-82 and 1973-75 recessions each lasted 16 months.

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[pywong]

The US Bailout figures are too big and giving me a headache. One of the ways to cut through the morass is to try to understand the numbers. Catherine Austin Fitts' article may help.

For AIG's case, a simple model is that it is just a gambling exercise.

AIG betted on one side of the bet.
90% of the banks betted on the other side.
AIG went bankrupt, so they can't pay.
The US bail them out by giving them the money to pay the banks.

How did this happen? The banks are the financiers for the politicians on both sides - Democrat and Republican.

Heads I win, tails you lose.

The suckers - The Rats, aka The taxpayer.

Bailout Mo’ Money
Catherine and News & Commentary,
March 9, 2009 at 11:03 am

We thought we would dig out the data to update Bloomberg’s calculation of November 2008 that totaled the bank bailouts at $8.5 trillion.

Details of the $8.5 trillion - http://solari.com/blog/images/2009/B...als-SFGate.pdf

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