Prophecy Watch: I’m Back!
This is a semi-regular posting whereby I glean interesting newsy bits that I feel are pertinent to an end-times Biblical Convergence:
Bankruptcy Looms: U.S. Treasury Postpones debt Auction After Reaching Borrowing Limit
A grinding political battle in Congress over America’s national debt led the U.S. Treasury on Thursday to postpone a regular auction of government debt, a reminder that the country once again is just weeks away from a potential default.
The Obama administration warned last week the federal government would have to stop borrowing money no later than Nov. 3 if the country’s politicians do not raise the legal limit on federal debt. Many conservative Republicans balk at raising the debt limit without a plan for long-term deficit reduction.
On Thursday, the Treasury Department said in a statement it would not hold an auction for 2-year notes originally scheduled for Oct. 27 because it might not be legally able to borrow money when the auction settles on Nov. 2.
It also called on lawmakers to stop treating the debt ceiling as a political issue.
“The creditworthiness of the United States is not a bargaining chip, and Congress should address this matter without controversy,” the department said.
Battles over the debt ceiling have become a regular facet of Washington’s political calendar even though missing payments could lead to economic calamity.
America came dangerously close to falling behind on its bills in 2011 and 2013, but Thursday was the first time since 2004 that it called off an auction due to the debt ceiling.
Currently Congress is in disarray over a leadership vacuum in the Republican party. House Speaker John Boehner wants to step down but his fellow Republicans have been unable to agree on a successor. This is complicating efforts to negotiate on the debt ceiling.
The federal debt started scraping up against the $18 trillion legal limit in March. Since then, the Treasury has employed emergency accounting measures like suspending investments in some federal pension funds to keep outstanding debt just under the limit while allowing debt auctions to continue.
Thursday’s announcement stoked demand for 2-year notes on Wall Street, pushing their yield down to 0.6006 percent. But the Treasury said uncertainties over America’s willingness to pay its debts were already pushing up yields for Treasury bills maturing in November compared to those that come due in October and December.
The Treasury said it will still hold auctions for 5-year and 7-year notes next week even though they are also scheduled to settle on Nov. 2.
“Treasury believes that postponing the auction for the 2-year note poses less risk for market functioning than postponing the 5-year or 7-year note offering,” the department said.
Read more at https://www.trunews.com/bankruptcy-looms-u-s-treasury-postpones-debt-auction-after-reaching-borrowing-limit/#PSkT7mYTCVEbwb2x.99
U.N. Official Reveals Real Reason Behind Warming Scare
Investor’s Business Daily
Economic Systems: The alarmists keep telling us their concern about global warming is all about man’s stewardship of the environment. But we know that’s not true. A United Nations official has now confirmed this.
At a news conference last week in Brussels, Christiana Figueres, executive secretary of U.N.’s Framework Convention on Climate Change, admitted that the goal of environmental activists is not to save the world from ecological calamity but to destroy capitalism.
“This is the first time in the history of mankind that we are setting ourselves the task of intentionally, within a defined period of time, to change the economic development model that has been reigning for at least 150 years, since the Industrial Revolution,” she said.
Referring to a new international treaty environmentalists hope will be adopted at the Paris climate change conference later this year, she added: “This is probably the most difficult task we have ever given ourselves, which is to intentionally transform the economic development model for the first time in human history.”
The only economic model in the last 150 years that has ever worked at all is capitalism. The evidence is prima facie: From a feudal order that lasted a thousand years, produced zero growth and kept workdays long and lifespans short, the countries that have embraced free-market capitalism have enjoyed a system in which output has increased 70-fold, work days have been halved and lifespans doubled.
Figueres is perhaps the perfect person for the job of transforming “the economic development model” because she’s really never seen it work. “If you look at Ms. Figueres’ Wikipedia page,” notes Cato economist Dan Mitchell: Making the world look at their right hand while they choke developed economies with their left.
Read More At Investor’s Business Daily: http://news.investors.com/ibd-editorials/021015-738779-climate-change-scare-tool-to-destroy-capitalism.htm#ixzz3p2P68rqF
I found this interesting piece on Christian economist Michael Snyder’s interesting site: www.theeconomiccollapseblog.com
This Is For The ‘Nothing Is Happening’ Crowd…
A lot of people out there expected something to happen in September that did not ultimately happen. There were all kinds of wild theories floating around, and many of them had no basis in reality whatsoever. But without a doubt, some very important things did happen in September. As I warned about ahead of time, we are witnessing the most significant global financial meltdown since the end of 2008. All of the largest stock markets in the world are crashing simultaneously, and so far the amount of wealth that has been wiped out worldwide is in excess of 5 trillion dollars. In addition to stocks, junk bonds are also crashing, and Bank of America says that it is a “slow moving trainwreck that seems to be accelerating“. Thanks to the commodity price crash, many of the largest commodity traders on the planet are now imploding. I wrote about the death spiral that has gripped Glencore yesterday. On Tuesday, the stock price of the largest commodity trader in Asia, the Noble Group, plummeted like a rock and commodity trading giant Trafigura appears to be in worse shape than either Glencore or the Noble Group. The total collapse of any of them could easily be a bigger event than the implosion of Lehman Brothers in 2008. So I honestly do not understand the “nothing is happening” crowd. It takes ignorance on an almost unbelievable level to try to claim that “nothing is happening” in the financial world right now.
Within the last 60 days, we have seen some things happen that we have never seen before.
For example, did you know that we witnessed the greatest intraday stock market crash in U.S. history on August 24th?
During that day, the Dow Jones Industrial Average plunged from a high of 16,459.75 to a low of 15,370.33 before rebounding substantially. That intraday point swing of 1,089 points was the largest in all of U.S. history.
Overall, the Dow has down 588.40 points that day. When you combine that decline with the 530.94 point plunge from the previous Friday, you get a total drop of 1119.34 points over two consecutive trading days. Never before in history had the Dow fallen by more than 500 points on two trading days in a row. If that entire decline had fallen within one trading day, it would have been the largest stock market crash in U.S. history by a very wide margin, and everyone would be running around saying that author Jonathan Cahn was right again.
But because this massive decline fell over two consecutive trading days that somehow makes him wrong?
Are you kidding me?
Come on people – let’s use some common sense here. We are already witnessing the greatest global stock market decline in seven years, and after a brief lull things are starting to accelerate once again. Last night, stocks in Hong Kong were down 629 points and stocks in Japan were down 714 points. In the U.S., the Nasdaq has had a string of down days recently, and the “death cross” that has just formed has many investors extremely concerned…
The Nasdaq composite spooked investors on Monday after forming a death cross, a trading pattern that shows a decline in short-term momentum and is often a precursor to future losses.
A death cross occurs when the short-term moving average of a security or an index pierces below the long-term trend, in this case the 50-day moving average breaking through the 200-day moving average.
In the past month, similar chart patterns formed in the S&P 500, Dow and small-cap Russell 2000, but the Nasdaq avoided a death cross formation until Monday.
What we witnessed in September was not “the end” of anything.
Instead, it is just the beginning.
And if you listen carefully, some of the biggest names on Wall Street are issuing some very ominous warnings about what is coming. For instance, just consider what Carl Icahn is saying…
Danger ahead—that’s the warning from Carl Icahn in a video coming Tuesday.
The activist says low rates caused bubbles in art, real estate and high-yield bonds—with potentially dramatic consequences.
“It’s like giving somebody medicine and this medicine is being given and given and given and we don’t know what’s going to happen – you don’t know how bad it’s going to be. We do know when we did it a few years ago it caused a catastrophe, it caused ’08. Where do you draw the line?”
Even people like Jim Cramer are starting to freak out. He recently told his audience that “we have a first-class bear market going”…
Jim Cramer, the ex-hedge fund manager and host of CNBC’s show “Mad Money,” has been vocal recently on air, saying repeatedly that he doesn’t like the market now, and last week said “we have a first-class bear market going.” Similarly, Gary Kaltbaum, president of Kaltbaum Capital Management, has been sending out notes to clients and this newspaper for weeks, saying the poor price action of the stock market and many hard-hit sectors, such as energy and the recently clobbered biotech sector, has all the earmarks of a bear market. Over the weekend, Kaltbaum said: “We remain in a worldwide bear market for stocks.”
As I have warned repeatedly, there will continue to be ups and downs. The stock market is not going to fall every day. In fact, on some days stocks will absolutely soar.
But without a doubt, we have entered the period of time that I have warned about for so long. The global financial system is now beginning to unravel, and any piece of major bad news will likely accelerate things.
For instance, the total collapse of Deutsche Bank, Petrobras, Glencore, the Noble Group, Trafigura or any of a number of other major financial institutions that I am currently watching could create mass panic on the global financial stage.
In addition, an unexpected natural disaster that hits a financially important major city or a massive terror attack in the western world are other examples of things that could accelerate this process.
Our world is becoming increasingly unstable, and we all need to learn to expect the unexpected.
The period of relative peace and security that we all have been enjoying for so long is ending, and now chaos is going to reign for a time.
So get prepared while you still can, because there is very little time remaining to do so…
Massive Amount of Oil Discovered in Israel’s Golan Heights
JNS.org – While the fates of Israel’s Tamar, Leviathan and Tanin offshore natural gas reserves have yet to be decided, oil has been discovered in the Jewish state’s Golan Heights region, Channel 2 reported Tuesday.
According to the report, recent exploratory drilling on the Golan has located a reserve of enough oil to supply Israel’s needs for many years to come.
The Ofek company, which conducted the drilling on the southern Golan Heights, claims that the reserve contains nearly 1 billion barrels of black gold.
Ofek chief geologist Dr. Yuvel Bartov told Channel 2, “We’re talking about a 350-meter (1,100-foot) thick layer, and the deciding factor is the porous thickness. Layers average 20 to 30 meters (70-100 feet) deep. Here, there’s 10 times what other locations contain, which means a significant amount. What is important to know is that the shale contains oil, and we know it does.”
The question now is how worthwhile producing oil from the reserve would be and how much it would cost to do so. Global oil prices are plummeting, and the high cost of drilling for and extracting the oil could make the venture non-cost effective.
World Set for Emerging Market Mass Default, Warns IMF
Higher US interest rates will expose weaknesses in emerging market corporations which have gorged themselves on cheap debt IMF warns
By Szu Ping Chan
6:50PM BST 29 Sep 2015
The International Monetary Fund (IMF) has issued a double warning over higher US interest rates, which it said could trigger a wave of emerging market corporate defaults and panic in financial markets as liquidity evaporates.
The IMF said corporate debts in emerging markets ballooned to $18 trillion (£12 trillion) last year, from $4 trillion in 2004 as companies gorged themselves on cheap debt.
It said the quadrupling in debt had been accompanied by weaker balance sheets, making companies more vulnerable to US rate rises.
“As advanced economies normalise monetary policy, emerging markets should prepare for an increase in corporate failures,” the IMF said in a pre-released chapter of its latest Financial Stability Report.
Photo: International Monetary Fund
It warned that this could create a credit crunch as risks “spill over to the financial sector and generate a vicious cycle as banks curtail lending”.
In a double warning, the IMF said market liquidity, or the ease with which investors can quickly buy or sell securities without shifting their price, was “prone to sudden evaporation”, particularly in bond markets, when the Federal Reserve started to raise interest rates.
It said a steady growth environment and “extraordinarily accommodative monetary policies” around the world had helped to maintain a “high level” of liquidity. However, it warned that this was not the same as “resilient” liquidity that could support markets in time of stress.
Gaston Gelos, head of the IMF’s global financial stability division, said these factors were “masking liquidity risks” that could trigger violent market swings.
“Liquidity is like the oil in an engine, when there’s too little of it, the machine starts stuttering,” he said.
The IMF said an “illusion” of abundant liquidity may have encouraged “excessive risk taking” by some investors that could cause market ructions if many investors suddenly rushed to the exit.
“Even seemingly plentiful market liquidity can suddenly evaporate and lead to systemic financial disruptions,” the IMF said.
“When liquidity drops sharply, prices become less informative and less aligned with fundamentals, and tend to overreact, leading to increased volatility. In extreme conditions, markets can freeze altogether, with systemic repercussions.”
Banks have scaled-back their market making activities in the wake of the financial crisis, which has reduced their ability to act as a stabilising force by absorbing excess supply.
Structural factors, such as large holdings of relatively illiquid securities by mutual funds and concentrated holdings by institutional investors, could also exacerbate a sell-off.
Market liquidity indicators for high-yield and emerging market bonds have started to weaken relative to those for investment-grade bonds.
While the IMF said central bank bond buying had been positive because it provided the market with a “committed and solvent buyer” to support the market, it said higher interest rates would “inevitably boost volatility”.
“Smooth normalisation of monetary policy is crucial” to avoid “sudden drops” in risk appetite, the IMF added, as it urged central banks to stand ready to “set up policies in advance that will maintain market functioning during periods of stress”, such as stepping into the short-term money markets to offer loans.
It also urged EU policymakers to “reevaluate” regulations brought in to restrict transactions on credit default swaps (CDS) of sovereign debt, which provide insurance against default but the IMF said had distorted the market.
While the IMF said tighter regulation had played a role in tighter liquidity conditions, it said evidence that it would make the next financial crisis worse was “still lacking”.
“Indeed, the reforms have made the core of the financial system safer,” the IMF said.
This is A Big Deal that no One is talking about!
Saturday, 01 September 2012
TPP Copyright Provisions Threaten Internet Freedom, U.S. Sovereignty
Written by Joe Wolverton, II, J.D.
The secretive conferences where delegates are hammering out the details of the Trans-Pacific Partnership (TPP) are effectively rewriting the law for the United States, particularly in the area of intellectual property.
The TPP is an international trade treaty currently being negotiated behind closed doors by nine nations located along the Pacific Rim (Mexico and Canada have been invited to join and would bring the total number of participants to 11). The 14th round of talks is set for September 6-15 in Leesburg, Virginia.
As The New American has reported, among the many problems with shrouding the details of such a binding agreement behind a thick veil of secrecy is the fact that if the TPP is approved by the Senate, it would become the law of the land, and the laws of the United States would be subject to abrogation by an international body that is unelected and unanswerable to the people of the United States.
According to a proposed draft version of the treaty leaked to the public, the United States, as part of its membership in the TPP, would agree to exempt foreign corporations from our laws and regulations, placing the resolution of any disputes as to the applicability of those matters to foreign business in the hands of an international arbitration tribunal overseen by the Secretary General of the United Nations.
Furthermore, the text of the agreement reveals that U.S. Trade Representative (USTR) Ron Kirk has agreed to place the approval of “domestic stakeholders” (read: large corporations) on a level with that of the Congress. It is precisely this exalting of big business that has troubled many of the people’s representatives in Congress.
Recently Zach Carter of the Huffington Post reported that Senator Ron Wyden (D-Ore.), the chairman of the Senate Finance Committee’s Subcommittee on International Trade, Customs and Global Competitiveness, was stonewalled by the office of the USTR when he attempted to see any of the draft documents related to the governance of the TPP.
In response to this rebuff, Wyden proposed a measure in the Senate that would force transparency on the process. That was enough to convince the USTR to grant the senator a peek at the documents, though his staff was not permitted to peruse them.
Wyden spokeswoman Jennifer Hoelzer told HuffPost that such accommodations were “better than nothing” — but not ideal in light of the fact that the real work of drafting and evaluating legislation on Capitol Hill is performed by staffers who often possess expertise in particular areas of domestic and foreign policy.
“I would point out how insulting it is for them to argue that members of Congress are to personally go over to USTR to view the trade documents,” Hoelzer said. “An advisor at Halliburton or the MPAA is given a password that allows him or her to go on the USTR website and view the TPP agreement anytime he or she wants.”
A senator of the United States has to beg and plead and threaten legislation in order to be able to gain access to the TPP trade agreement, but corporate interests are given a password by the USTR that grants them a priori access to those same documents.
Now it is discovered that the chapter on intellectual property in the leaked TPP draft agreement launches another attack on U.S. sovereignty through the mandate that member nations enact regulations that requiring Internet Service Providers (ISPs) to privately enforce copyright protection laws.
These private companies — many of which are very small — would be forced to take upon themselves the responsibility of patrolling for and punishing any violation of the copyright laws by its subscribers.
Current U.S. law, specifically the Digital Millennium Copyright Act (DMCA), would be supplanted by TPP Article 16.3. This provision in the TPP draft document paves the way for a new copyright enforcement scheme that extends far beyond the limits currently imposed by DMCA. In fact, it contains mandates more expansive than even those proposed in the Anti-Counterfeiting Trade Agreement (ACTA).
ACTA is widely regarded as a threat to Internet freedom, as well as to the legislative power of the Congress. If ACTA is a threat than TPP is an all-out frontal assault.
Regardless of the merits of the DMCA, it is U.S. law and should not be subject to de facto appeal by the work of a body of internationalists who are not accountable to citizens of the United States.
Apart from the issues of sovereignty, putting such pressure on service providers is a threat not only to the owners of these small business, but also to Internet freedom, as well.
It is the good work of these ISPs that has created the Internet we know today. Were it not for the typically low-cost access these companies provide, the pool of readily accessible viewpoints, opinions, and news resources would be significantly shallower.
In a post-TPP world, ISPs would be forced to raise prices dramatically in order to cover the increase in their own overhead brought on by the requirement that they monitor and manage the websites they host.
Alternatively, there would undoubtedly be a large number of ISPs who would not only want to avoid the administrative burden of being forced into the role of Internet cop, but who would also rightly regard the risks of providing Internet access as outweighing the benefits.
A story published by the Electronic Frontier Foundation accurately describes the potential problems and predicts the future of the Internet should the United States agree to enter the TPP.
Private ISP enforcement of copyright poses a serious threat to free speech on the Internet, because it makes offering open platforms for user-generated content economically untenable. For example, on an ad-supported site, the costs of reviewing each post will generally exceed the pennies of revenue one might get from ads. Even obvious fair uses could become too risky to host, leading to an Internet with only cautious and conservative content.
As any news organization that maintains a Web presence knows, in the posting of news items time is of the essence. If the regulations of the TPP become the law, then ISPs would be forced to remove immediately any subscriber content posted online that is challenged by someone claiming a copyright infringement. This broad expansion of copyright protection could be devastating to a news organization (or blogger, for that matter) depending for their economic survival on the timeliness of their online stories and on the availability of those stories to the millions of Internet users.
Such procedures bypass the U.S. court system and the Constitution by abolishing the due process owed to those accused of crimes. Rather than require a person to present evidence of an alleged violation of a copyright to an impartial judge, the TPP would also someone to demand that the outlet’s ISP immediately remove the content in question. Any legal proceedings on the merits of the charges would occur after the damage has been done.
Critics understand that this redrawing of the boundaries of copyright law by the globalists secretly deliberating and drafting the TPP is an attack on our laws, our courts, our freedom of expression, our Constitution, and our sovereignty.