Posts Tagged ‘DEBT’


What Is the “American Dream”?

The term “American dream” is used in many ways, but it essentially is an idea that suggests that anyone in the US can succeed through hard work and has the potential to lead a happy, successful life. Many people have expanded upon or refined the definition to include things such as freedom, fulfillment and meaningful relationships. Someone who manages to achieve his or her version of the American dream is often said to be “living the dream.” This concept has been subject to criticism, because some people believe that the structure of society in the US prevents such an idealistic goal for everyone. Critics often point to examples of inequality rooted in class, race, religion and ethnicity that suggest that the American dream is not attainable for everyone.


The idea of an American dream is older than the US, dating to the 1600s, when people began to have all sorts of hopes and aspirations for what was a new and largely unexplored continent to European immigrants. Many of these dreams focused on owning land and establishing a prosperous business that — theoretically, at least — would increase one’s happiness. During the Great Depression of the 1930s, authors often wrote about the idealistic American dream, somewhat codifying the concept and entrenching it in American society.

Stereotypical Dream

The dream for Americans is often portrayed as being perfectly average. For example, some people might say that it is being married, having two children and living in a three-bedroom home with a white picket fence. Rather than being based on great wealth or success, this version of the dream might be based more on avoiding things such as poverty and loneliness.

Improving Upon the Past

Some people say that the American dream represents the desire to live a better life than the previous generation did — and that there is a legitimate opportunity for this to happen. The desire among many parents is for their children to lead happy lives. This is especially true among immigrants, because many of them fled extremely difficult circumstances in their native countries.


The idealistic vision of the American dream often disregards discrimination based on a person’s race, religion, gender and national origin, which might inhibit his or her ability to achieve specific goals. Critics also point out that many versions of the dream equate prosperity with happiness, and that happiness is possible without wealth or even in poverty. To some people, the American dream might be more about personal fulfillment than about economic success or owning property.

The U.S. Treasury Buidling

China, the largest foreign creditor to the U.S., bought more Treasuries in October than any other foreign investor, a sign that the U.S. is still considered a global safe haven despite the 16-day partial government shutdown and threat to default that month.

China boosted its holdings by $10.7 billion, or 0.8 percent, to $1.305 trillion, according to Treasury Department data released Monday. China overtook Japan as the largest creditor to the U.S. in September 2008, with holdings hitting a record high of $1.314 trillion in July 2011. So far this year, Beijing has increased its holdings 6.9 percent and is on track for the biggest gain since its stake in Treasuries rose 30 percent in 2010.

Japan boosted its position in Treasuries by 5.7 percent through October and is on track for its sixth annual rise in holdings of the debt.

Amid the debt ceiling crisis in October, China’s Vice Finance Minister Zhu Guangyao urged Washington to take decisive steps to avoid a debt crisis and ensure the safety of Chinese investments. Japan’s finance minister, Taro Aso, made similar public comments, as have Singapore’s prime minister, the chairman of Switzerland’s central bank and many other officials.

It now appears that a U.S. default was not as big a concern for U.S. creditors as markets originally feared. Foreign investors overall added $24.4 billion in U.S government-debt holdings.

Below are the top 10 largest holders of U.S. debt at the end of October.

1. China, mainland: $1.305 trillion

2. Japan: $1.174 trillion

3. Caribbean Banking Centers: $290.7 billion

4. Oil Exporters*: $236.6 billion

5. Taiwan: $184.5 billion

6. Belgium: $180.3 billion

7. Switzerland: 174.3 billion

8. UK**: $158.4 billion

9. Russia: $149.9 billion

10. Hong Kong: $136.3 billion


* Oil exporters include Ecuador, Venezuela, Indonesia, Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, the United Arab Emirates, Algeria, Gabon, Libya and Nigeria.

** UK includes Channel Islands and Isle of Man.


by John Galt


The distrust of central banksters continues to expand as now Austria follows Germany by sending a delegation to the United Kingdom to verify that their gold holdings are in fact even there and on deposit at the Bank of England. From the

(translated via Google)

Austria can check the gold reserves at the Bank of England

The Court of Austria is sending  a delegation to the Bank of England. It is to examine the existence and condition of an estimated 150 tons of Austrian monetary gold.

The  gold is stored at the Bank of England’s gold reserves Austria to be subjected to an inventory. According to business magazine Trend of the Austrian Court of Audit is planning to send a delegation to London to inspect the gold bars on site.

There are no official figures on how much gold is stored exactly in London. In the Press is talk of about 150 tons of gold. The total gold reserves are estimated at 280 tons of Austria. Only 17 percent (47.6 tons) of gold should be located in their own country.

The decision to an examination of the Austrian gold reserves is ultimately the result of rising public Drucks. After the federal bench with her ​​last year repatriation program was active, and political forces tried in Austria for more transparency and a proof that the gold bars abroad actually exist are. Among other things, the FPÖ’s initiative, “Save our Austrian Gold” mood.

“I understand the suggestion. Every grocer must take inventory once a year. Just as the absurd rumors can be removed from the world, “said Ewald Nowotny, Governor of the Austrian National Bank.

If Austria and Germany can not trust the Federal Reserve and Bank of England, why should any citizen in the United Kingdom or United States have faith in the activities of these den of thieves and their activities? Of course the Fed would never lie about how much gold it has, after all, why should they?


Kiev hopes to get a $2 billion loan from Russia to cover its debt to Gazprom for gas, coup-appointed Prime Minister Arseniy Yatsenyuk said. Ukraine’s current gas debt stands at $1.5-1.6 billion.

Speaking at a briefing on Tuesday, Yatsenyuk said Ukraine is waiting for a “clear response” from Russia on whether it is going to provide the second tranche of the agreed $15 billion loan.

Ukraine owes Russia about $2 billion “in debts, racked up by the previous cabinet and the previous president,” he said.

“Russia promised to give a loan of $2 billion, intended to cover gas debts that originated under former President Viktor Yanukovich. We would like to hear a clear response from Russia on whether it wants to fulfill the obligations it undertook several months ago,” Yatsenyuk said.

In December 2013, Russia agreed to purchase $15 billion worth of Ukrainian government bonds and made its first purchase of $3 billion. In February, as part of the agreement, Russia said it would purchase another $2 billion, and then froze the second tranche until “Ukraine forms a new government”.

On Tuesday Yatsenyuk stressed Ukraine’s readiness for extensive dialog with Russia and said that first contacts between the two governments had already taken place.

“Ukraine is ready to renew and moderate a new style of relationship with the Russian Federation, in which Russia will respect the sovereign right of Ukraine to choose the international political orientation of the Ukrainian state. Now we have begun consultations at ministerial level between the governments of Ukraine and Russia,” he said.


President Vladimir Putin facing journalists at the Novo-Ogaryovo residence to answer questions concerning the situation in Ukraine, March 4, 2014.(RIA Novosti / Aleksey Nikolskyi)President Vladimir Putin facing journalists at the Novo-Ogaryovo residence to answer questions concerning the situation in Ukraine, March 4, 2014.(RIA Novosti / Aleksey Nikolskyi)

Ukraine’s gas debt will rise to $2 billion from the current $1.5-1.6 billion if it is late with its payment for deliveries of gas in February, Russian President Vladimir Putin said yesterday.

However, according to the Russian gas giant’s CEO, Aleksey Miller, on Monday Ukraine told Gazprom that it could not afford February’s gas.

“Our Ukrainian partners informed us yesterday that they will not be able to pay for their February gas supplies in full,” Miller said.

In December, Gazprom gave a substantial discount to the Yanukovich government cutting the price of gas by about one-third from the current $400 per 1,000 cubic meters to $268.50 per 1,000 cubic meters.(link)

But speaking to reporters on Tuesday President Putin said that the company will stop granting discounts to Ukraine at the beginning of April as the country owes Russia a total of $1.529 billion for gas.

Putin stressed that the decision to raise gas prices for Ukraine was not political.

“There was an agreement,” Putin said. “We give you the cash and a discount on gas, and you pay us on time. We have given them money, we have cut the price, but there have been no payments.”

Ukraine’s economy is teetering on the brink of bankruptcy. The country’s coup-appointed government says it will need €25 billion over the next two years.

On Wednesday the European Commission proposed 11 billion euro in financial help, if Kiev agrees a deal with the IMF, which normally includes drastic austerity measures. On top of that, the cash-strapped country secured a $1 billion offer of loan guarantees from the Obama administration.


Deutsche Bank,

The Biggest Derivative Exposure In The World

At $72.8 Trillion, Presenting The Bank With The Biggest Derivative Exposure In The World (Hint: Not JPMorgan)


Moments ago the market jeered the announcement   of DB’s 10% equity dilution, promptly followed by cheering its early earnings announcement ]which was a “beat” on the topline, despite some weakness in sales and trading and an increase in bad debt provisions (which at €354MM on total loans of €399.9 BN net of a tiny €4.863 BN in loan loss allowance will have to go higher. Much higher). Ironically both events are complete noise in the grand scheme of things. Because something far more interesting can be found on page 87 of the company’s 2012 financial report .

The thing in question is the company’s self-reported total gross notional derivative exposure.

And while the vast majority of readers may be left with the impression that JPMorgan’s mindboggling $69.5 trillion in gross notional derivative exposure as of Q4 2012 ]may be the largest in the world, they would be surprised to learn that that is not the case. In fact, the bank with the single largest derivative exposure is not located in the US at all, but in the heart of Europe, and its name, as some may have guessed by now, is Deutsche Bank.

The amount in question? €55,605,039,000,000Which, converted into USD at the current EURUSD exchange rate amounts to $72,842,601,090,000….  Or roughly $2 trillion more than JPMorgan’s.

The good news for Deutsche Bank’s accountants and shareholders, and for Germany’s spinmasters, is that through the magic of netting, this number collapses into €776.7 billion in positive market value exposure (assets), and €756.4 billion in negative market value exposure (liabilities), both of which are the single largest asset and liability line item in the firm’s €2 trillion balance sheet mind you, and subsequently collapses even further into a “tidy little package” number of just €20.3.

Of course, this works in theory, however in practice the theory falls apart the second there is discontinuity in the collateral chain as we have shown repeatedly in thh past, and not only does the €20.3 billion number promptly cease to represent anything real, but the netted derivative exposure even promptlier become the gross number, somewhere north of $70 trillion.

Which, of course, is the primary reason why Germany, theatrically kicking and screaming for the past four years, has done everything in its power, even “yielding” to the ECB, to make sure there is no domino-like collapse of European banks, which would most certainly precipitate just the kind of collateral chain breakage and net-to-gross conversion that is what causes Anshu Jain, and every other bank CEO, to wake up drenched in sweat every night.

Finally, just to keep it all in perspective, below is a chart showing Germany’s GDP compared to Deutsche Bank’s total derivative exposure. If nothing else, it should make clear, once and for all, just who is truly calling the Mutually Assured Destruction shots in Europe.

But don’t worry, this €56 trillion in exposure, should everything go really, really bad is backed by the more than equitable €575.2 billion in deposits , or just 100 times less. Of course, a slighly more aggresive than normal bail-in may be required in case DB itself has to following the footsteps of Cyprus…



Στο Money Masters αναφέρονται τα ονόματα των τραπεζιτών που μέσα από διαρκείς απάτες εις βάρος της ανθρωπότητας κατάφεραν να ελέγξουν την δημιουργία του χρήματος παγκοσμίως. Αυτές οι απάτες περιγράφονται ακριβώς στο ντοκιμαντέρ αυτό.

Κανονικά όλα τα κανάλια στην Ελλάδα θα έπρεπε να παίζουν το ντοκιμαντέρ αυτό για να μην τολμήσουν οι διεθνείς αυτοί τοκογλύφοι να μας ζητούν δεκάδες φορές περισσότερα λεφτά απ” αυτά που μας έχουν δανείσει.

Όπως είπε και ο Νίκος Γεωργαντζής, επιστήμονας των Οικονομικών της Συμπεριφοράς σε συνέντευξή του στο περιοδικό Hellenic Nexus Τεύχος 81:

«Ίσως ένας μέρος της κρίσης να οφείλεται στην παράλειψή μας να μορφώσουμε τους νέους οικονομολόγους σε θέματα «Ηθικής Οικονομίας«…

«Η αλλαγή που μπορούν γενικά να επιφέρουν τα οικονομικά ως επιστήμη εξαρτάται απ” την ικανότητά μας να επανακτήσουμε την ιστορική μας σχέση με την ηθική φιλοσοφία

Αν δηλαδή το μόνο με το οποίο ασχολούμαστε σε οικονομικό επίπεδο είναι το κέρδος μιας τράπεζας ή επιχείρησης με οποιοδήποτε τρόπο, τότε είναι σίγουρο ότι θα πέσουμε θύματα απατεώνων μιας και ολόκληρο το σύστημα στηρίζεται στην απάτη.

Σχετικά με τον εκδότη του Money Masters

Ο Patrick S. J. Carmack άσκησε εταιρικό δίκαιο και είναι πρώην Δικαστής Διοικητικού Δικαίου της πολιτείας της Οκλαχόμα καθώς επίσης και μέλος του Αμερικανικού Ανωτάτου Δικαστηρίου. Είναι ο συντάκτης του βίντεο «Οι Αρχοντες των Χρημάτων» ή «Αργυραμοιβοί».