Nathaniel Popper:

JPMorgan Chase’s chief financial officer, Marianne Lake, took the stage at a financial conference on Tuesday under strict orders not to mention her company’s involvement in Apple’s new payment system.

But when Apple’s chief executive, Timothy D. Cook, at a news conference in California at the same time, finally brought up Apple Pay, one of Ms. Lake’s deputies in New York took a green apple out of her bag and put it on a table on the stage, signaling that Ms. Lake was free to discuss the service.

Subtle. In other tradecraft:

From the beginning, the project was top secret, with what one person involved called a “code name frenzy.” The card companies had code names for Apple and Apple for the card companies. At Visa, the code name was another consumer electronics company, chosen to avert attention from employees who were not involved. Visa soon had about a thousand people on the team.

Would love to know which other consumer electronics company was served up as the red herring.

All in all, pretty amazing how much pull Apple proved to have over another massive industry. That’s was being the most valuable company in world gets you, I suppose.

Say hello to the next financial crisis, brought to you courtesy of the dumbest new bill of the week: H.R. 5148: Access to Affordable Mortgages Act.

Ordinarily whenever an individual wants to borrow money for a mortgage, the bank conducts due diligence… both on the borrower as well as the property.

It’s in the banks’ interest (as well as the banks’ depositors) to ensure that the property is at least worth as much as the amount being borrowed. Duh.

Congress doesn’t agree. Apparently when banks conduct property appraisals, that seems to unfairly discriminate against some segment of the population trying to buy crap properties.

And we certainly can’t have that going on in the Land of the Free.

So with HR 5148, Congress aims to exempt certain ‘higher-risk mortgages’ from property appraisal requirements.

Curiously, this legislation reverses several provisions in the 1968 ‘Truth in Lending Act’.

It’s as if Congress is now anti- ‘Truth in Lending’ and pro- ‘whatever the hell gets the money on the street’.

And of course, all of this comes at a time when mortgage rates are still near their all-time lows.

You can borrow money to buy a home today at just 4%. That’s less than half the long-term average of 8.5%, and a fraction of the 16%+ people were stuck paying 30 years ago.

Isn’t paying 4% affordable enough? Nope. Not according to Congress.

So now they’re trying to engineer yet another financial crisis by encouraging banks and other lenders to exercise minimal due diligence on their mortgage portfolio.

This comes at a pivotal time. US banks are only now just barely starting to recapitalize after the early days of the financial crisis.

They’ve unloaded their toxic assets to the US government and Federal Reserve.

They’ve borrowed money at essentially 0% from the Fed and loaned it to the Treasury Department at interest (the mother of all scams).

After six years of these freebies and taxpayer-funded bailouts, bank balance sheets are only now starting to clear up.

So what does Congress do? They propose a new law to screw up bank balance sheets all over again.

It’s idiocy on an epic scale… and it makes one wonder what team of monkeys is coming up with these ideas.

Fed Vice Chairman Warns: Your Bank May Seize Your Money to Recapitalize Itself

At the height of the financial crisis in 2008 the U.S. government forced some of the countries largest banks to take “bailout” funds amounting to billions of dollars in order to keep them from going bankrupt. It was a move designed to not only keep too-big-to-fail financial institutions afloat, but one that would inspire confidence and keep American consumers spending. As a result, the last several years have seen stock markets reach record highs with Americans continuing to rack up personal debt for real estate, vehicles, education, and consumer goods as if the financial crisis never happened.

But the purported recovery may not be everything that government officials and influential financial leaders have made it out to be.

Recent comments delivered by Federal Reserve Vice Chairman Stanley Fischer suggest that not only are global and domestic economies still struggling, but the U.S. government itself is preparing financial contingency plans in anticipation of another widespread economic event.

However, this time around, according to Fischer, the government won’t be bailing out financial institutions in need of cash. Instead, failing banks will turn directly to their unsecured creditors when they need money. And within this context, that means you.

The recession that began in the United States in December 2007 ended in June 2009. But the Great Recession is a near-worldwide phenomenon, with the consequences of which many advanced economies continue to struggle. Its depth and breadth appear to have changed the economic environment in many ways and to have left the road ahead unclear.

Work on the use of the resolution mechanisms set out in the Dodd-Frank Act, based on the principle of a single point of entry–though less advanced than the work on capital and liquidity ratios–holds the promise of making it possible to resolve banks in difficulty at no direct cost to the taxpayer.

As part of this approach, the United States is preparing a proposal to require systemically important banks to issue bail-inable long-term debt that will enable insolvent banks to recapitalize themselves in resolution without calling on government funding–this cushion is known as a “gone concern” buffer.

Full text and video available at FederalReserve.gov

Though Fischer doesn’t detail exactly what “bail-inable long term debt” actually is, one only needs to look to Europe, namely Cyprus, to understand what he means.

When the Cypriot banking system collapsed because of an inability to service its debt in 2013, the government forced bank depositors to cover the debts. This led to banks forcibly seizing funds from depositor accounts in order to pay their debts.

According to the Fed Vice Chairman, the U.S. government is now proposing similar rules, following in the footsteps of Europe and Japan, who have already prepared such measures.

The bottom line is that financial, economic and monetary policymakers in the United States are fearful that another crisis, perhaps even worse than what we saw in 2008, is going to be playing out in the very near future. Otherwise, why would they find it necessary to take the drastic step of forcing bank depositors to act as a backstop for their financial institutions?

But this time around, it won’t be the government that bails them out directly. Instead, if you have an account with the bank, you are an unsecured creditor for that institution, just like the people of Cyprus were for their banks. And when that bankinevitably comes under pressure because of an inability to cover their debts, it is you who will become the bailout mechanism.

It’s not hard to imagine how this scenario might play out the next time around.

At the first hint of another crisis we’re going to see panic that will make 2008 look like a picnic. First, stock markets will sell off en masse across the world as a scramble to not be the last one out takes hold of investors. This, in turn, will lead to liquidity problems at major financial institution across the country. As banks run out of cash to cover the tens of billions of dollars they need to service their existing debt, they will turn to the new policies described by Stanley Fischer.

What this means is that one morning you could wake up and see ten or twenty percent of your funds transferred out of your account and exchanged for long-term debt (like a bond) with the promise that the bank will pay it back to you at a later date.

The immediate result, as you might expect, will be widespread bank runs, just as we saw in Europe when Cypriot depositors got hit. But, there will be no cash to be had save a few hundred dollars here and there, as banks will limit ATM withdrawals and will likely shut their doors to customers.

This, of course, would have an effect similar to what we recently saw in Ferguson, except riots and looting will be taking place in every major city across the country.

And though it may seem like an impossible scenario to envision in today’s peaceful and stable America, the U.S. military and Department of Homeland Security doesn’t think so. For the last several years they have been war-gaming and simulating widespread economic collapse scenarios and they’ve been stockpiling everything from armored vehicles to riot gear in over 8,000 counties across the United States in preparation for the civil unrest that would explode from coast to coast.

Tess Pennington, author of The Prepper’s Blueprint, warns that when a crisis like this hits and people lose everything they have, “a person’s anger rules their actions and their thoughts.” When that anger takes over, the people will turn on each other and on their government. “They defy government, because the government is the one that took those freedoms and rights away.”

The government knows this and they have prepared significant contingency plans for such an event.

When it happens, it will be too late for those who did not have the foresight to prepare for it.

  • Do you have extra cash on hand in case the banks shut down?
  • Have you acquired a secondary mechanism of exchange such as gold or silver in case your funds become inaccessible?
  • Do you have an emergency food stockpile in case bank merchant systems go down and grocery stores are unable to process transactions?
  • Are you prepared to shelter in place so as to avoid the looting, violence, and government detentions that will be happening in your local neighborhood?
  • Are you prepared to defend yourself if the violence spreads to your front door?

Now is the time to be ready. The government is. You should be too.

The hackers infiltrated the networks of the banks, siphoning off gigabytes of data, including checking and savings account information, in what security experts described as a sophisticated cyberattack. The motivation and origin of the attacks are not yet clear, according to investigators. The F.B.I. is involved in the investigation, and in the past few weeks a number of security firms have been brought in to conduct forensic studies of the penetrated computer networks.
Watch on priceofliberty.tumblr.com

All Wars Are Bankers’ Wars

Home » Market Analysis » Financial System Upside Down-Blame Game on Coming Crash-Bill Holter Financial System Upside Down-Blame Game on Coming Crash-Bill Holter

Financial analyst and writer Bill Holter thinks the powers that be know how shaky the system is and will play the blame game for the coming crash.  Holter contends, “I believe that they know the financial system is upside down and there is no bringing it back, so they do need to have something to point at.  It could be a war with Russia.  We are trying as hard as we can to create a war, and it looks like Russia; and Mr. Putin is trying as hard as he can not to have a war.  There could be any number of things to point at.  It could be the Ebola virus outbreak.  It could be the Saudi Arabians accepting euros, gold, yuan and it could be anything.  There are dozens of topics.”  Holter goes on to say, “Truth is the first casualty of all wars.  So, we are getting bad information from our press, and we are getting bad information from the Russian press.  When a war starts, you will never get the truth.”

On the U.S. dollar, Holter says, “It’s a 100% confidence game.  The dollar is based on the full faith and credit of the U.S… . We know from a credit standpoint we are over 100% of debt to GDP.  So, there is the credit part of it.  Faith is whether your word is good or not.  Our allies don’t know whether we are going to back them up, and our enemies don’t know if we are going to do what we say we are going to do, or not do what we say we are going to do.”

On recent terror warnings from the Saudi Arabia that there might attack on an EU or US city, Holter, once again, says, “Would that be something to point at?  If the City of London had a dirty bomb go off or Chicago or New York, that would cripple the financial system within a day or maybe even less.  Banks wouldn’t open.  What about the news of Russians hacking our big banks all last week?  Is that something you can point at?  If all of a sudden we woke up one day and if there were hundreds of billions of dollars in digital credit gone, what would that do?  Banks wouldn’t open, and it would be something to point at… . They know that it’s upside down, and they need something to point at and say our policies were working.  Our policies would have worked if it weren’t for such and such, whether it be war, or an attack on a major financial city or the Ebola virus.  You name it.”

So, what happens to people’s wealth after the coming crash?  Holter says, “I believe that many things that are real will be revalued many multiples higher.  Silver and gold I see being revalued eight to ten times higher or more if we have a closure of the banking system and the stock market, a reset so to speak.  You are going to be stuck until everything reopens.  There have been bail-ins discussed.  In a bail-in, let’s say you have $200,000 in your bank account.  You would wake up Monday morning and it may only be $50,000.  In Cyprus, the depositors lost 87% of their funds from the time the banks closed to the time they re-opened.  You also have to worry about these brokerage houses where you are carrying a margin account and they have lent your certificates out, and all of a sudden, the system closes.  Where’s your certificate?  Who owns it?  What if your brokerage company goes out of business?  It may be five years or more to get your paper certificate back.”

How likely is a crash in the financial system?  Holter thinks, “From a probability standpoint, whether it’s tomorrow morning or next week, or next month, or next year, mathematically, ask yourself this question: Is the U.S. broke?  The answer is yes, the U.S. is broke.  There is no way the U.S. can pay the promises, the interest and etcetera on everything that is out there.  I’ve seen a number of $240 trillion in total promises and debt.  There is no way that can be paid.  So, from a mathematical standpoint, sooner or later, there is going to be an all-out collapse.  That is a mathematical equation.  It is no longer if, it is only a question of when.”

Join Greg Hunter as he goes One-on-One with gold and silver expert Bill Holter of MilesFranklin.com. 

(There is much more in the video interview.)

After the Interview:
Bill Holter says there is a “high likelihood” that a real or false flag terror attack will cause the next financial crisis.  Holter thinks an upcoming attack will involve some sort of nuclear device which could be a suitcase nuke.  Holter is a prolific writer at MilesFranklin.com.  If you would like to check out one of the four original articles he writes each week, please click here for Holter’s archives.

What Real-World Problems Can Bitcoin Actually Solve Right Now?

Though it is increasingly acknowledged by major business, investors and governments that bitcoin has the power to become a world-changing financial technology, fundamental issues are still holding back adoption.

One of the most prominent, around the world, is the lack of consumer understanding of the subject. For all its development, it remains difficult to explain to the average person just how bitcoin technology can impact their lives – today.

Continue reading at CoinDesk

http://goo.gl/CwFexG
Banksters Align Behind Globalist Climate Change Agenda
Climate change is a globalist scheme for world domination

A cartel of globalist “development” banks has produced a report “on the need for economic collaboration to help nations adapt and avert the impact of climate change,” UPI reported on Friday.

The report was prepared by the African Development Bank, the Asian Development Bank, the European Bank for Reconstruction and Development, the European Investment Bank, the Inter-American Development Bank, and the World Bank Group and appears ahead of a United Nations climate summit in New York next week.

So-called development banks get money from playing the financial markets and from “subscriber” nations, in other words from taxpayers in “rich” or “developed” countries.

The plan “requires mobilizing a wide range of financial resources, public and private, bilateral and multilateral, including alternative sources,” the report said.

Agenda 21

The report calls for Agenda-21 style “sustainable development” policies to combat disputed anthropogenic climate change, including “dense cities.” Carbonists argue “dense cities designed for efficiency offer one of the most promising paths to sustainability.”

Other “promising paths” include control of water allocation and distribution, outlawing private transportation in favor of “eco-conscious transportation modes,” and restricting individual use of nature to protect “biodiversity.”

In short, “smart growth” and “biodiversity” are about eliminating private property and the rights of the individual. “Sustainability” is about sustaining the global elite and creating an authoritarian globalist apparatchik to control the lives of billions of people.

Under Agenda 21 people “would be herded into ‘Smart Growth’ zones or ‘human settlements,’ where they would be confined to high-rise buildings. Individual rights, including private property rights, would be stripped away. Agenda 21/Sustainable Development documents call for reduction of the human population from the present 6.6 billion down to about 1 billion people, that is, by 85%,” writes Michael Shaw.

“Forget your dream of a two story home on your own piece of land. Instead the plan is to force us to settle for a nightmare. Conjure up an image of China,” writes Nancy Thorner, “specifically a city like Beijing with few private homes and massive apartment buildings. A place where people will likely live in zones connected by congested freeways, and all controlled by an untouchable government.”

Predatory Financial Class the Problem, Not Climate

Brazil’s Curitiba and Colombia’s Bogota are held up as admirable examples in the report.

“Far from an idyllic utopia, Curitiba faces the same problems that metropolises around the world do, including overcrowding, poverty, pollution and limited public funding,” writes Tim Gnatek. The city, however, has instituted an Agenda 21-styled “master plan” to “clean up the environment and also address poverty.”

Colombia has some of the worst poverty statistics in Latin America and one of the most stratified social systems in the world. More than a third of the country’s population lives below the poverty line, which is a dollar per day.

More than alleged climate change, Colombia is a victim of the financial class represented by the World Bank and its development banks.

“As a result of World Bank and IMF-sponsored policies, per-capita income in Colombia has plunged from $2,716 in 1997 to a current level of $1,890. Between 1997 and 2000, the percentage of Colombians living in poverty rose from 50.3% to 60.0%,” notes Tony Avirgan.

The World Bank thrives on economic predation. Climate change is merely the latest scheme designed to implement world government as the global elite abandon the Bretton Woods system and seek a more effective way to rule and control the world’s population and resources.

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