China to Surpass USA as World’s Largest Economy THIS YEAR

The Big dog is coming!

As China officially becomes the world's largest economy, recognized by media, no doubt it will want to expand the trade usage of the Yuan in transactional settlements. This will come at the expense of the dollar.

  • This is – rightly – front page news (hat tip to Drudge for the headline) 

Washington's Blog
30 April 2014

China May Actually Have Surpassed U.S. in 2010 or 2011

Financial Times reports:

The US is on the brink of losing its status as the world’s largest economy, and is likely to slip behind China this year, sooner than widely anticipated, according to the world’s leading statistical agencies.

But this is not entirely surprising.

As we reported in April 2012, leading Chinese economic analyst (and American ex-pat) professor Michael Pettis argued in 2011 that China’s GDP might already higher than America’s in terms of purchasing power parity.

And we noted that Arvind Subramanian – former assistant director in the Research Department of the International Monetary Fund, and now senior fellow jointly at the Peterson Institute for International Economics – says that China passed up the USA in 2010.

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The West Prepares: These Are All NATO Aircraft Deployments In Response To The Ukraine Crisis

And when Putin asks, OMG is this all you have?

         Source: @IHS4DefRiskSec

Zero Hedge
By Tyler Durden
29 April 2014

It's all the Russians' fault? This does not exactly look like de-escalation to us...

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Prominent Economists Call for End to Fractional Reserve Banking

Another run at fractional banking. 

A not so novel concept that would eliminate the risk and gambling amongst the banks.

Washington's Blog
30 April 2014

Challenging a Sacred Cow of Banking Dogma

Excessive leverage by the banks was one of the main causes of the Great Depression and of the 2008 financial crisis.

As such, lower levels of “fractional reserve banking” – i.e. how many dollars a bank lends out compared to the amount of deposits it has on hand – the more stable the economy will be.

But economist Steve Keen notes (citing Table 10 in Yueh-Yun C. OBrien, 2007. “Reserve Requirement Systems in OECD Countries”, Finance and Economics Discussion Series, Divisions of Research & Statistics and Monetary Affairs, Federal Reserve Board):

The US Federal Reserve sets a Required Reserve Ratio of 10%, but applies this only to deposits by individuals; banks have no reserve requirement at all for deposits by companies.

So huge swaths of loans are not subject to any reserve requirements.

Indeed, Ben Bernanke proposed the elimination of all reserve requirements for banks:

The Federal Reserve believes it is possible that, ultimately, its operating framework will allow the elimination of minimum reserve requirements, which impose costs and distortions on the banking system.

Economist Keen informs Washington’s Blog that about 6 OECD countries have already done away with reserve requirements altogether (Australia, Mexico, Canada, New Zealand, Sweden and the UK).

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U.S. Economic Growth Slows To a Crawl in First Quarter

But all is well. The truth is there is no recovery and has never been one. So when will these Whores stop funding Wars?

  • Frigid Weather, Weak Exports Curtail Activity

The Wall Street Journal
By Eric Morath
and Ben Leubsdorf
30 April 2014

WASHINGTON—The U.S. economy nearly stalled in the first quarter as weakness overseas hurt exports and frigid weather curtailed business investment.

Gross domestic product, the broadest measure of goods and services produced across the economy, grew at a seasonally adjusted annual rate of 0.1% in the first quarter, the Commerce Department said Wednesday. That matched the second-weakest quarterly reading of the nearly five-year-old economic recovery.

Economists surveyed by The Wall Street Journal had forecast growth at a 1.1% pace for the quarter.

"Not a great start to the year," said Lindsey Piegza, chief economist at Sterne Agee.

The broad slowdown halted what had been improving economic momentum during much of 2013. The economy expanded at a 3.4% pace in the second half of last year. The first-quarter reading fell far below even the lackluster average annual gain of near 2% since the recession ended.

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Humor for the day

Boy: *calls 911* Hello? I need your help!
911: Alright, What is it?
Boy: Two girls are fighting over me!
911: So what's your emergency?
Boy: The ugly one is winning.


Teacher: "Anyone who thinks he's stupid may stand up!"
*Nobody stands up*
Teacher: "Im sure there are some stupid students over here!!"
*Little Johnny stands up*
Teacher: "Ohh, Johnny you think you're stupid?"
Little Johnny: "No... I just feel bad that you're standing alone..."


Cop: "Did you kill this man?"
Me: "No, a bullet killed him. Bullets are made of lead, which comes from the ground. The ground is part of nature. He died of natural causes. Case closed."


Americans Want to Pull Back From World Stage, Poll Finds

Why just wait for Americans to tell them? The world is telling them. Rebuild America and go home!

The Wall Street Journal
By Janet Hook
30 April 2014

Americans in large numbers want the U.S. to reduce its role in world affairs even as a showdown with Russia over Ukraine preoccupies Washington, a Wall Street Journal/NBC News poll finds.

In a marked change from past decades, nearly half of those surveyed want the U.S. to be less active on the global stage, with fewer than one-fifth calling for more active engagement—an anti-interventionist current that sweeps across party lines.

The findings come as the Obama administration said Tuesday that Russia continues to meddle in Ukraine in defiance of U.S. and European sanctions. Pro-Russian militants took over more government buildings in eastern Ukraine, while officials at the North Atlantic Treaty Organization said satellite imagery showed no sign that Russia had withdrawn tens of thousands of troops massed near the border.

The poll showed that approval of President Barack Obama's handling of foreign policy sank to the lowest level of his presidency, with 38% approving, at a time when his overall job performance drew better marks than in recent months.

Mr. Obama defended his diplomacy-first approach at a news conference Monday in the Philippines, the last stop on a four-nation tour through Asia. He said those who called for a more muscular policy hadn't learned the lessons of the U.S. decision to invade Iraq.

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The White House Wants to Issue You an Online ID

One step closer to no privacy. Yuk, a White House controlled Privacy world? No! No! No! No! NO!

Vice - Motherboard
By Meghan Neal
28 April 2014

A few years back, the White House had a brilliant idea: Why not create a single, secure online ID that Americans could use to verify their identity across multiple websites, starting with local government services. The New York Times described it at the time as a "driver's license for the internet."

Sound convenient? It is. Sound scary? It is.

Next month, a pilot program of the "National Strategy for Trusted Identities in Cyberspace" will begin in government agencies in two US states, to test out whether the pros of a federally verified cyber ID outweigh the cons.

The goal is to put to bed once and for all our current ineffective and tedious system of using passwords for online authentication, which itself was a cure for the even more ineffective and tedious process of walking into a brick-and-mortar building and presenting a human being with two forms of paper identification.

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Russian forces have returned to permanent positions | The Global Financial Tsunami End Game: The Petro-Dollar Regime is Finished?

Now that the Russians have returned to their bases we ponder the moves and rhetoric over the Ukraine and question what this is all about as often hostilities between nations are something else other than what is being spoon fed to the public to shape opinion. 

So let's ponder a bit through the web of words and smoke. Russia is moving quickly to avoid having to to do anything with the US, whether it is because of mutual meddling or personal differences, matters not as what does matter is what is being done. And it is quite clear that the military opposition to Russia is a dead man's scenario with no winners and a nuclear confrontation is a non starter. In other words, Ukraine is a non event that thus far America has spent $5B to get and create a disaster in the heart of Europe.

Russia has expressed to the Europeans and others like India that they will accept Rubles, Euros or Yuan instead of dollars as payment for both oil and natural gas. Rosneft is in the process of finalizing several deals like this and we already know about the deal with Iran being touted as a barter deal for 500,000 barrels of oil. And the big deal between China and Gazprom thought to be announced late next month is going to be in Yuan, Rubles or some combination of the two, but definitely not in dollars. And what if the rumors of gold backing the Ruble or Yuan in part or in whole bear fruit? And what happens if alternative currencies are used attracting currency speculation and trade to affect currency related exports? Does an increased Rupee value benefit India as an exporter over an importer, a question that will have to be modeled.

The rumor is that the Saint Petersburg Exchange will be used as the vehicle to facilitate this move as oil and natural gas will trade on the exchange in the not too distant future.

We have seen in the past the US reaction to anyone using another currency other than dollars to settle oil trade and what happened whether it was Iraq, Iran or Libya. Can it be logical then that the same reaction is being had towards Russia? It certainly begs both question and answer as it is clear that the upheaval in the Ukraine is quite secondary to the real game. Except calling it a currency dispute puts pressure on the dollar at a time when the dollar and the US are having some difficulties.

So what's next, a Russian move to offer Britain gas in pounds? What do European countries do faced with euro payments vs dollars? And if all or some of the mentioned parties go in direction of using alternative currencies to the dollar what happens to the trade volumes in those currencies as opposed to the dollar?

All questions that will find answers soon. Whatever the collusion, its an Illusion, the dollar in confusion, is doomed.

Russian forces have returned to permanent positions

Kuwait News Agency
29 April 2014

Russia's Defence Minister Sergei Shoigu said on Monday that army forces who had started drills near Ukraine's border last week have returned to their permanent positions.

Russia took the decision after Ukrainian authorities had announced they would not be instructing their military to attack civilians, he was quoted as saying in a report by local news agency Interfax.

In a telephone [call] with US Defense Secretary Chuck Hagel, he urged his counterpart to help "turn down the rhetoric" over the Ukraine crisis.

The Russian minister also denied the presence of saboteurs, affiliated with the Russian military, in eastern Ukraine, mostly inhabited by Russian-language speakers.

In response to Shoigu's criticizing of US military deployment near his country's borders, Hagel underlined that NATO's moves are not in provocation against Russia.

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The Global Financial Tsunami End Game: The Petro-Dollar Regime is Finished?

Once trade in oil is no longer denominated in the US Dollar, the bells will toll for the demise of the US Dollar and the global fiat money system.

Global Research
By Matthias Chang
Future Fast Forward
6 April 2014

Prominent Malaysian lawyer and author Matthias Chang

A few weeks ago, I had a private high-level discussion with some experts in geopolitics, economics and global finance and I had only one objective for participating in the discussion – to find out what was not said and or avoided in the discussion by the participants.

I learned early in my political career as a student anti-war activist that more can be learned from anyone and in any situation by what has not been said and avoided than from all the hours of lengthy dialogue. In most cases, I already knew the positions of the participants on the subject matter of the discussion from their writings, interviews, press statements, their educational backgrounds and their careers. Usually anything that is being said in a discussion reflects the latest position on the participant’s previously declared stance on the subject matter.

And quite often, what has been revealed through discussions may not necessarily reflect the entirety of the participant’s stance. The difficulty is to be conscious of what the participant has not said and detect what are his reservations and why the reluctance to disclose his thoughts on the matter. In the day-long discussions, I had only intervened twice and I took no more than ten minutes at the most to elicit the reaction that I had anticipated.

The first intervention was in relation to the inevitable implementation of the “Bail-In” (the confiscation of depositors’ monies in financial institutions to pay the bondholders / other creditors) to rescue the Too Big To Fail Banks (TBTF), the template being taken from the Cyprus experience for which all the relevant global central banks and institutions such as BIS, IMF, the World Bank have prepared the groundwork.

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China criticizes US sanctions against Russia

Now it begins. China, Russia and BRICS stand firm.

File photo of Putin (right) presenting the Russian delegation to President of China Xi Jinping in March last year [PPIO]

The BRICS Post
29 April 2014

Beijing announced its support for a beleaguered Moscow after the US and Canada announced fresh sanctions against Russia for it’s alleged “inaction” in easing tensions in Ukraine.

In a public signal of increasing Sino-Russian cooperation, China called on all parties to resolve the Ukrainian crisis through dialogue rather than sanctions, Foreign Ministry spokesman Qin Gang said Monday.

“We believe that sanctions are inconducive to the solution of problems. On the contrary, they will escalate tensions,” he said.

It is not in line with any side’s interests to impose sanctions, he added. “We call on all parties concerned to continue dialogue and negotiations so to resolve the crisis in a political way.”

Qin told a daily press briefing that China has been in touch with all relevant nations, including G7 nations, since the Ukrainian crisis erupted, and made clear the nation’s stance on the issue.

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In Canada’s immigration law, anyone can be a terrorist

This is sad to see how a great and free country has become an extension of its ugly neighbor.

Oscar Vigil and his wife Carolina Teves. As a university student in El Salvador in the 1980s, Vigil acted as a contact between foreign journalists and rebel leaders during his country's civil war. After 13 years in Canada, Vigil is about to be deported as a "terrorist."     
Photo: David Cooper / Toronto Star

  • It’s called section 34 (1) (f) of Canada’s main immigration law, and it likely would have kept Nelson Mandela himself out of this country.

The Star
By Oakland Ross
27 April 2014

One elderly woman’s only political act was to stitch together uniforms for armed rebels in Ethiopia, then ruled by a murderous tyrant named Haile Mariam Mengistu.

Another man, now in his 60s, once donated the equivalent of $50 to the militant opposition in his country.

Yet another man used to act as an informal contact for foreign journalists who were seeking interviews with anti-government guerrillas in El Salvador.

None of these three people ever engaged in political violence themselves, and yet all of them – along with dozens and perhaps hundreds of others – face the threat of deportation on the grounds that they pose a security risk to the people of Canada, under a catch-all provision of this country’s immigration law that many lawyers decry as unfair and excessive.

“It’s an extreme overreaction,” says Ontario legal-aid lawyer Andrew Brouwer. “Their stories are so compelling. There’s not a single allegation of ever being involved in any kind of violence, much less a terrorist act.”

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Stanley Fischer for federal reserve

No wonder Israel is celebrating. Look, we just got another one in, and still these Americans don't get it.

Right under their nose, another rigged Fed appointment. When will a non Zionist be elected? Ever?

Former Bank of Israel Governor Stanley Fischer (photo credit: Courtesy JPC)

  • Former governor of Bank of Israel endrosed as vice chairman of US central finance system

The Times of Israel
29 April 2014

The Senate Banking Committee on Tuesday endorsed Stanley Fischer to be vice chair of the US Federal Reserve, a nomination that needs confirmation from the full chamber.

Members of the committee gave the green light by voice vote to Fischer, tapped by President Barack Obama in January to be Fed Chair Janet Yellen’s number two.

The panel also approved Lael Brainard, a former Treasury official, to join the Fed’s Board of Governors, and endorsed current board member Jerome Powell for another term.

All three are expected to win Senate approval.

Fischer is a dual US-Israeli citizen who until last year served as the governor of Israel’s central bank.

The 70-year-old was also deputy managing director at the International Monetary Fund, from 1994 to 2001, and prior to that served as chief economist for the World Bank.

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17 Facts To Show To Anyone That Believes That The U.S. Economy Is Just Fine

This is the now Sad reality in America. This says volumes about a country in total denial about what it has become and what it is. The ability to project power is tempered by economic strength or the lack thereof. Unless they raise the bar and elect QUALITY Leaders, this next Presidency will see it all go down the toilet. 8 years of a clueless, narcissist Puppet , minus even a Birth Certificate, has been a disaster for America. And still 50% of these Voting Idiots don't get it.

The Economic Collapse
By Michael Snyder
29 April 2014

No, the economy is most definitely not "recovering". Despite what you may hear from the politicians and from the mainstream media, the truth is that the U.S. economy is in far worse shape than it was prior to the last recession. In fact, we are still pretty much where we were at when the last recession finally ended. When the financial crisis of 2008 struck, it took us down to a much lower level economically. Thankfully, things have at least stabilized at this much lower level. For example, the percentage of working age Americans that are employed has stayed remarkably flat for the past four years. We should be grateful that things have not continued to get even worse. It is almost as if someone has hit the "pause button" on the U.S. economy. But things are definitely not getting better, and there are a whole host of signs that this bubble of false stability will soon come to an end and that our economic decline will accelerate once again. The following are 17 facts to show to anyone that believes that the U.S. economy is just fine...

#1 The home ownership rate in the United States has dropped to the lowest level in 19 years.

#2 Consumer spending for durable goods has dropped by 3.23 percent since November. This is a clear sign that an economic slowdown is ahead.

#3 Major retailers are closing stores at the fastest pace that we have seen since the collapse of Lehman Brothers.

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