Guys. This is the opinion of some “gurus”. Yes, broke governments like the USA may try to confiscate your savings.
I got my pension funds confiscated in 2008 , or better said “nationalized”.
Just a part of this article:
“…With respect to which assets governments will likely be coming for next, Jim said, ”401k plans, IRA’s, and pensions plans which the government knows about [may be next]…They’re rationale would be, ‘Well most people [...]
Japan Brings Food Inflation Down To ‘Earth’
Whether it is a reflection of the inflated price of regular edibles thanks to Abe’s Yen devaluation escapades, or simply more evidence of the greater fool theory playing out among a mesmerized world, the latest gourmet eating experience in Japan highlights the human ability to follow a herd in spite of all common sense. As CBS reports in this somewhat remarkably not The Onion clip, [...]
China To Japan: Hand Over The Senkakus Or Your Economy Gets It
Chinese Foreign Minister Yang Jiechi said Saturday that “Japan needs to face up to reality, and take real steps to correct its mistakes… so as to prevent a further escalation,” with regard the demand that Japan reverse its nationalization of the small islet chain of the Senkakus. In some of the strongest rhetoric yet, The Japan Times reports that [...]
From Barely A Blog:
The “loss” of Venezuelan President Hugo Chavez has hit hard at MSNBC. (Rachel Maddow is sure to turn on the waterworks during her show.)
How do you omit the pejorative “socialist,” in a piece about the death of one? Look to one Tracy Connor, staff writer at NBC News, who finesses an economy partly nationalized or under threat of expropriation with upbeat words: Chavez was a “self-styled populist,” [...]
by Phoenix Capital Research
Anyone who wants to get an inside look at both the European banking system and the politicians in charge of fixing it need to only look at Spain’s Bankia.
Bankia was formed in December 2010 by merging seven totally bankrupt Spanish cajas (regional banks that were unregulated). The bank was heralded as a success story and an indication that European Governments could manage the risks in their banking [...]
January 29, 2013
Italy is grappling with a scandal at the world’s oldest bank that could affect the outcome of elections next month and dent Mario Draghi’s record as Europe’s top central banker.
Monte dei Paschi di Siena, founded in 1427, last week revealed it faced losses of up to €720 million on three derivatives trades, carried out in 2006-2009, details of which were kept hidden from regulators.
Italy’s third-biggest bank was forced [...]
by Phoenix Capital Research
During its first term in office, the Obama Administration thus far has proven itself in favor of increased Government control and Central Planning. That is, the general trend throughout the last four years has been towards greater nationalization of industries (first finance, then automakers and now healthcare and insurance), as well as greater reliance on our Central Bank to maintain our finances.
Last year the US Federal Reserve bought [...]
Exxon Mobil is no longer the world’s number-one oil producer. As of last week, that title belongs to Putin Oil Corp – oh, whoops. I mean the title belongs to Rosneft, Russia’s state-controlled oil company.
Rosneft is buying TNK-BP, which is a vertically integrated oil company co-owned by British oil firm BP and a group of Russian billionaires known as AAR. One of the top-ten privately owned oil producers in the [...]
Oct 22, 2012
Japan and the United States have decided to cancel a joint security drill to recapture a remote island in Okinawa Prefecture, according to sources.
Tokyo and Washington were considering holding the drill on the uninhabited island of Irisuna as part of joint military exercise slated for November.
Sources said that the drill could lead to a backlash from Beijing, which has reacted harshly to Japan’s nationalization of the Senkaku Islands, [...]
What If I Am Wrong About Europe?
I have long stated the eurozone will breakup. Historically speaking, no currency union has ever survived in the absence of a political union.
Moreover, in It’s Just Impossible I noted
The Bundesbank said there should be no banking union until there is a fiscal union.
Angela Merkel said that there should be no fiscal union until there is political union.
François Hollande said that there should be no political union [...]
Over 70 Taiwanese fishing vessels are heading for two disputed islands in the East China Sea to protest their nationalization by the Japanese government, Kyodo News reported.
The vessels left the port of Yilan in northeastern Taiwan earlier on Monday and are expected to be within 37 kilometers of the islands by 5 a.m. local time on Tuesday, Kyodo said.
Taiwan-based Foxconn Technology, a major supplier for Apple, has halted production at [...]
When Barack Obama started his Presidency, there was much discussion of how Sweden in the early 1990s had briefly nationalized and then sold off its failing banks and quickly restored its economy, while Japan had instead bailed out its failed banks’ stockholders and bondholders, and never recovered. Why is the United States copying the Japanese failure, instead of the Swedish success?
President Obama started his Presidency with the opportunity to try the [...]
The Wall Street Journal reports today that the Treasury Department is resisting a push by General Motors executives for government to sell its entire stake in the automaker.
Funny enough, today we also learn that the Obama Administration is launching a complaint at the World Trade Organization over China’s allegedly unfair backing of its auto industry. The United States will charge the Chinese government with subsidizing auto and auto parts producers from 2009 and 2011 with $1 billion. [...]
URGENT: 1,000 Chinese boats to arrive in waters near Senkakus Mon.: report
Breaking news: 1,000 Chinese fishing boats to arrive near Senkakus by late Monday — Kyodo
Twenty-one months after China’s Chengdu aerospace firm unveiled its J-20 jet fighter prototype — Beijing’s first stealth warplane — the rival Shenyang company has revealed what appears to be a competing, radar-evading plane.
Over the weekend photos of increasing resolution leaked online depicting a previously unknown, [...]
Labor Dept. Attempts to Stop Layoffs by Giving $100 Million to States to Subsidize Payrolls
The Labor Department announced on Monday that it will be awarding almost $100 million in grant funding to states to prevent layoffs by allowing businesses to pay employees as part-time workers and the federal government will pick up the tab for the cost of a full-time paycheck.
The “work-sharing” program was passed as part of a Republican-led [...]
by Phoenix Capital Research
The following is an excerpt from my most recent client letter.
In case you missed it, Spain just gave the entire world a glimpse of what’s happening “behind the scenes” in the financial system.
I am of course referring to the Bankia nationalization, the largest bank nationalization in Spain’s history.
Bankia was formed in 2010 when the Spanish Government merged seven insolvent cajas So it’s no surprise that Bankia was a [...]
The bank run must be larger than they are letting on.
Spanish markets got clubbed today, as PM Mariano Rajoy was announcing a new nationalization scheme for Bankia.
But that was mostly expected.
What freaked out investors was a new report in El Mundo that suggested a new, much-more expensive fire needed to be put out.
In its latest Euro Areas: Sovereign Debt Crisis Update note, Citi summarizes the report:
Reports suggest Spain may need an extra €30bn for banks [...]
The driver who picked us up at the airport said the economy was bad and it was hard to get jobs, especially for the young people. Yet there was lots of construction around, both private and public.
In Burgos, we witnesssed a college student march. They were protesting against, what else, cuts in education. They were calling for a general strike. Police were everywhere. As an aside, Burgos must be trying [...]
The problem with bank runs is that once they start, they don’t stop. And while the world was conveniently distracted by events in Greece, debating whether or not people were withdrawing money in droves (they were), the real bank run happened elsewhere, namely in Spain, where just nationalized bank Bankia moments ago plunged 30% and was halted following an El Mundo report that “customers had withdrawn €1 billion over the [...]
The embattled Spanish government has begun the process of financial sector reform via the nationalization of BFA, which indirectly means the government has taken a 45% stake in a publicly traded company, Bankia. While Prime Minister Mariano Rajoy is set to announce further measures to strengthen the banking sector on Friday, with the BFA-Bankia takeover, the Spanish government is preparing to take control of the biggest chunk of toxic real [...]
One word: Spain, and more specifically, 6.00%+. That’s where Spanish 10 Year bond yields are again, with Spanish CDS soaring to a fresh all time wide of 512 bps (+13.5 bps), and the Spanish-Bund spread blowing out to the widest since November. And to think it was only two days ago that the schizo market interpreted Spain’s bank sector nationalization as good news. It may be for the bank sector (for a few days [...]
Eclectica Asset Management CIO and co-founder Hugh Hendry told a panel at the Milken Institute’s 2012 Global Conference yesterday that his biggest fear in Europe was confiscation of his and his client’s assets.
The poor health of the banking sector amid tepid growth and concerns about the future of the monetary union, he said, could ultimately result in the nationalization of the financial sector. That’s driving his unwillingness to be invested in Europe right now.
Two weeks ago, when commenting on the (first of many) nationalizations of energy companies (yes, the collateral shortage we have been discussing over the past year is particularly in effect when it comes to energy assets, although one does not need superficially complicated theories to explain it), in this case of Spanish YPF assets in Argentina we said “How soon until any and every government follows suit in a world in [...]
Wolf Richter www.testosteronepit.com
“Over the past months, we experienced a worrisome trend towards re-nationalization and ‘summitization,’” said Martin Schulz, President of the European Parliament and member of the German opposition SPD, to a forum of the European Commission on Wednesday. His complaints went to the heart of democracy at the European level. Government leaders were becoming “more arrogant” and made decisions “behind closed doors, in violation of the community method.” They were attempting “to [...]
It would appear that the recent renewed excitement down in the Falklands was indeed the writing on the wall for a nation that is now desperate enough to nationalize foreign entities. Argentina, still unable to access capital markets years after its restructuring appears to be hitting an irrational wall again as its CDS has exploded wider recently, and even more so today with the YPF news, to near 1000bps - its widest in 4 [...]
The Pain in Spain is too Big to be Contained
Courtesy of Phil of Phil’s Stock World
Not the Economy (yet) but how I feel so far in my weekend reading. Even John Mauldin, who went against his wishes to ignore Spain this week, now echos my thoughts on the subject in an excellent overview of the situation. Russ Winter has a similar view in “Bernanke and Germany Wake up to a Merda Storm,” [...]