Current Economic Collapse News Brief:Japanese Debt Excessed One Quadrillion Yen, Spain’s Banking System Is Doomed To Collapse, U.S. Taxpayers Renouncing Citizenship At Record High
In this news brief we will discuss the latest news on the economic collapse. We look to see if things are really that different. The central bank will not stop at just confiscating your wealth they will want your life. They want to enslave the people.
S&P to ‘1,500 or below’: Strategist
On CNBC’s “Fast Money,” O’Rourke added that flows of capital into U.S. stocks were overwhelmingly into exchange-traded funds.
“I think that’s blind buying because it’s just an asset allocation,” he said. “It’s not people buying stocks because they think they’re cheap or they’re good values. It’s people just wanting to have exposure in the markets. And we’re at all-time highs. It’s a big risk, and now you’re having a big rise in interest rates.”
Number of Americans Renouncing Citizenship Surges
Expert Says 2013 on Pace to See Highest Number of U.S. Expatriations Ever
The number of U.S. taxpayers renouncing citizenship or permanent-resident status surged to a record high in the second quarter, as new laws aimed at cracking down on overseas assets increase the cost of complying and the risk of a taxpayer misstep.
A total of 1,130 names appeared on the latest list of renunciations from the Internal Revenue Service, according to Andrew Mitchel, a tax lawyer in Centerbrook, Conn., who tracks the data. That is far above the previous high of 679, set in the first quarter, and more than were reported in all of 2012.
Lags in reporting renunciations might mean that many who appeared on the current list made the move months earlier. Taxpayers who renounced can be subject to an exit tax, and people who renounced last year may have avoided higher taxes on capital gains and income that went into effect in 2013.
The U.S. is rare in that all income earned by citizens and permanent residents, even those living abroad, can be subject to U.S. tax, according to Bryan Skarlatos, a New York lawyer. The U.S. also confers citizenship on people who are born on American soil.
Spain’s Banking System Is Doomed To Collapse
The question on my mind today is “When will the Spanish banking system collapse?” Spain’s exposure to Portuguese sovereign debt and unrealized losses on real estate loans are two reasons a collapse in inevitable.
The Spanish banking system passed a so-called “stress test” in 2012, but sovereign government bonds are are not included in the evaluation.
We saw how well that worked with Greece (over and over again), and with Cyprus as well. It was Cypriot exposure to Greek bonds that collapsed the Cypriot banking system.
Fitch Downgrades 13 Distressed Classes of JP Morgans Mortgage Backed Securities
CHICAGO, Aug 09, 2013 (BUSINESS WIRE) — Fitch Ratings has downgraded 13 and affirmed nine classes of J.P. Morgan Chase Commercial Mortgage Securities Trust, series 2008-C2. A detailed list of rating actions follows at the end of this release.
KEY RATING DRIVERS
The downgrades reflect the expected losses after the sale of the largest asset in the pool, The Shops at Dos Lagos (12.4% of the pool).
The Shops at Dos Lagos, a $124 million real estate owned (REO) retail property, was sold July 23, 2013 for $30 million. Including advances, appraisal subordinate entitlement reductions (ASERs), fees and other unpaid amounts of approximately $41 million, the loan loss severity will be approximately 109% on the current loan balance.
Realized losses to the trust will reflect the full principal balance of $124 million. Losses are expected to be incurred as of the Aug. 12, 2013 distribution date. Classes C through Q, currently rated ‘Csf’ or ‘Dsf’ by Fitch, will be affected. These classes rated ‘Csf’ are downgraded to ‘Dsf’.
10 Things That Could Go Horribly Wrong In China
The world has watched in awe for three decades as China emerged from obscurity to become the second largest economy in the world.
However, an economy that is so large and growing so quickly is inherently fragile.
The tiniest catalyst could trigger wars, bring down the government, or launch protectionist policies that could send shockwaves through the global economy.
We can think of at least 10 very realistic, destabilizing risks facing China right now.
Read more: http://www.businessinsider.com/what-could-go-wrong-in-china-2013-8?op=1#ixzz2bcnVUD53
A Japanese Crisis Nears
A quadrillion yen debt
Over the past week, Japan celebrated an unusual feat: total government debt passed the one quadrillion yen mark. That’s 1,000,000,000,000,000 yen (15 zeros if you’re counting). Of course, it’s not so daunting in U.S. dollar terms, at a measly US$10.5 trillion. Still, the debt versus the country’s GDP is 230%, the highest in the developed world. And if you add in corporate and private debt, total Japanese debt equates to 500% of GDP.
It’s a reminder of the enormous task that Japan’s relatively new government faces: how does it reduce this staggering debt without impoverishing the country? We’re about to get a further glimpse into whether the government is heading in the right direction when preliminary GDP figures are released on Monday. Optimists, including the vast majority of economists and stock brokers, suggest that Monday’s figures will confirm that the economy is improving and the government’s policies are having an impact.