‘ EURO WILL EVENTUALLY GO THE WAY OF THE DODO ‘


#AceNewsServices – Nov.22 – This was a post l wrote back in 2012 when the writing was on the wall for the eventual fall of the Euro. Though as events are unfolding across the currency market, my prediction is about to come true, very soon.  

In July 2012 we were told that the fourth Euro Zone country may need a possible sovereign bailout of 100 billion Euros. The fact this amount as l reported previously has risen from 23 to 43 to 46 and now 100 billion by miscalculation of debt!

It now appears that it is imminent in any case.

This extract picked up at the time goes some way to explain the need but not the reason WHY?

Spain’s troubles are mounting, with indebted regions asking the central government for help and borrowing costs at record highs. There are fears that the euro zone’s fourth-largest economy may need a full sovereign bailout even though the country has just received a €100 billion ($121 billion) rescue package to shore up its ailing banks.

European Union is responding with plans for the temporary bailout fund, the European Financial Stability Facility(EFSF), to buy Spanish bonds on the secondary market in order to push down interest rates on those bonds, German newspaperSüddeutsche Zeitung is reporting on Thursday.

“If Madrid submits a request we are prepared to act,” an unnamed EU diplomat told the paper. Spanish Finance Minister Luis de Guindos has urged EU colleagues to authorize the EFSF to buy Spanish bonds. He met German Finance Minister Wolfgang Schäuble on Tuesday and French Finance Minister Pierre Moscovici on Wednesday.

The bank bailout for Spain is a prerequisite for the EFSF to buy bonds because EFSF rules state that this kind of financial aid is only permitted if the affected country has an unresolved banking problem, Süddeutsche said. “We hope we can calm the markets now,” it quoted the EU diplomat said as saying.

So how is it these countries have got into this position, as night follows day  Greece began the need for X billions but with no GDP to repay what they owe! So then along comes the fourth largest economy and this time they want a lot more again what can they repay it with! At present they have massive debts and much of this debt is never ever going to be repaid!

Reason: 

It is invested in a dwindling asset such as property, which 20 years ago had the same problem, it crashed and many people lost their homes! Another 12 years further on and we are back there this time not 100′s of thousands are owed but billions and in some cases overall debt in the world amounts to http://www.usdebtclock.org/world-debt-clock.html well take a look at how it rises second by second and it will amaze you!

So we got here by wanting more to buy more and then our GDP would rise more but of course so would our debt’s When you lend without any form of financial management you are being what can only be called as cavalier or reckless with your lending policies!

By this method we lend billions to a country to bail out their debts for 3 months and in some cases 1 month, just to pay their bills

Is this not reckless lending and not considering in 1 month what this country will do, let alone having increased their debt!

‘The Best Solution’ - EU leaders can come up with is this: 

Berlin has made no official statement on Spain’s request but sources close to the German government said it was not opposed to bond purchases in principle. Such a move would have to be signed off by a German parliamentary panel consisting of nine lawmakers made up of members of all the five parties represented in parliament. Chancellor Angela Merkel‘s center-right coalition has five parliamentarians on the panel.

The French government supports bond purchases. French President Francois Hollande said during that time and called for rapid and decisive help. 

Words like rapid and decisive help this will be the same rapid and decisive help for Greece that has dragged out month after month after month, anyone remember Greece’s first request it was May 11th 2010 as reported by the WSJ and it stated in this post: 

Wall Street Journal – May 11 2010  said: 

Greece to Request First Aid Tranche:

ATHENS—Greece on Tuesday will formally submit its request for the first tranche of aid from the European Union and on Wednesday will receive the first installment of financial support from the International Monetary Fund.

“We will be submitting the formal request for the transfer of €14.5 billion [$18.54 billion] from the EU.

The figure asked for was 14.5 billion Euros and the upshot was of a:     

Downgrade of Junk Bond Status: 

The downgrading of Greek government debt to junk bond status in April 2010 created alarm in financial markets. On 2 May 2010, the eurozone countries and the IMF agreed on a €110 billion bailout loan for Greece, conditional on the implementation of austerity measures. In October 2011, Eurozone leaders agreed to offer a second €130 billion bailout loan for Greece, conditional not only the implementation of another austerity package, but also that all private creditors should agree to a restructure of the Greek debt, reducing the debt burden from a forecast 198% of GDP in 2012 to a more sustainable level at 120.5% of GDP by 2020.

The amount was not 14.5 billion but 100 billion in May 2010 and a further amount of 130 billion in October 2011 and the provisions agreed would be reduce debt burden from 198% of GDP in 2012 to a more sustainable level of 120.5% of GDP by 2020.

Editor’s Conclusion: 

My simple overriding question is HOW? Can any country reduce their debt burden when they borrow such vast amounts! Would it not have been better to stage manage a small tranche of funds are requested and monitored their economy closely for where the problems were before this commitment to lending such a vast amount!

I can see Spain going the way of Greece and eventually the Euro going the way of the dodo!

Nobody can sustain 120.5% debt burden and repayment is not achievable in any case, given the present global financial situation!

Source: 

#ANS2014

BRUSSELS: ‘ GERMANY & HOLLAND PREPARING EMERGENCY PLANS TO RETURN TO NATIONAL CURRENCY ‘


#AceNewsServices – BRUSSELS – Nov.22 – I reported on this a while ago about the German’s stockpiling gold for the return to funding the Deutschmark. 

Now details have emerged indicating that both the Dutch and German governments were preparing emergency plans for a return to their national currencies at the height of the euro crisis according to a report on the EUobserver. 

In early 2012, a few months after the then Greek prime minister Georgios Papandreou and his Italian counterpart Silvio Berlusconi had resigned, the Dutch finance ministry prepared for a scenario in which the Netherlands could return to its former currency.

Dutch TV documentary programme Argos Medialogica reported on Tuesday (18 November), based on anonymous sources, that the ministry had an emergency plan called Florijn, a reference the original name of the guilder, the Netherlands’ pre-euro coin.

Current finance minister Jeroen Dijsselbloem also confirmed the existence of the plan on Tuesday in his weekly interview with RTLZ.

“It is true that [the ministry of] finance and the then government had also prepared themselves for the worst scenario”, said Dijsselbloem.

“Government leaders, including the Dutch government, have always said: we want to keep that eurozone together. But [the Dutch government] also looked at: what if that fails.

And it prepared for that.”

That preparation included “practical aspects”, but the government did not print new national currency banknotes.

The plans occurred around the time when politicians openly referred to the possibility of a Greek exit from the euro.

#ANS2014 

BRITAIN: ‘ OSBORN BACKS DOWN ON BANKERS BONUSES UNDER PRESSURE FROM EU ‘


#AceNewsServices – BRITAIN – Nov.22 – Britain suffered an embarrassing defeat in its attempt to block the European Union’s new limits on bank bonuses on Thursday, withdrawing its legal challenge after an adviser to the bloc’s top court made clear it was unlikely to succeed Reuters reported. 

The Canary Wharf financial district is seen in east London November 12, 2014. CREDIT: REUTERS/SUZANNE PLUNKETT

The Canary Wharf financial district is seen in east London November 12, 2014.
CREDIT: REUTERS/SUZANNE PLUNKETT

I wrote a post about ‘ Too Big To Fail ‘ soon after the 2008 crisis relating to the construct of the banking industry and also and mainly due to products sold. These products have carefully been crafted to provide investor’s with just the right amount of risk. In hindsight and after much deliberation l should have called it ‘ Too Big to Fall’ as latest reports are conceding.       

Though EU law aims to curb the kind of risk-taking that led to the 2007 to 2009 financial crisis by limiting bonuses awarded from next year to a sum no more than a banker’s fixed pay, or twice that level with shareholder approval.

Britain, home to the City of London where most of the bankers hit by the cap are based, said the law would push up fixed pay and goes beyond the EU’s powers, a sensitive subject at a time of rising British anti-EU sentiment.

However, Finance Minister George Osborne was forced to concede defeat after an adviser, whose opinions are non-binding but are generally followed at least in part by the Luxembourg-based European Court of Justice, said he supported the limit on banker bonuses and that it did not restrict total pay.

“I’m not going to spend taxpayers’ money on a legal challenge now unlikely to succeed,” Osborne said in a statement. “The fact remains that these are badly-designed rules that are pushing bankers’ pay up, not reducing it.”

Ace Finance News - Related Posts Here:   

#ANS2014 

‘ TWO YEAR PROBE BY HOUSE CLEARS CLINTON & RICE OF BENGHAZI ALLEGATIONS ‘


#AceNewsServices – WASHINGTON – Nov.22 – A two-year probe by the House Intelligence Committee has cleared then-Secretary of State Hillary Clinton and then-Ambassador to the UN Susan Rice on allegations that they mishandled the 2012 attack on the US diplomatic compound in Benghazi, Libya, which led to the death of US Ambassador Christopher Stevens, foreign service officer Sean Smith, and two CIA agents.

Following the attack, Republicans criticized Clinton, who is expected to run in the 2016 presidential elections, saying the CIA was ordered to stand down as the compound came under siege.

Rice, meanwhile, was condemned for blaming the attack on a riot sparked by an anti-Muslim video, as opposed to an act of terrorism.

The panel said that to this day, significant intelligence gaps remain regarding what motivated the protesters to violence.

#ANS2014 

LONDON: ‘ FRACKING COLLEGES TO OPEN FUNDED BY THIRD PARTY GOVERNMENT CONTRACTORS ‘


#AceNewsServices – BRITAIN – Nov.22 – According to a recent UK Government Press Release: The first national UK shale colleges were today given the go-ahead by Business, Enterprise & Energy Minister Matthew Hancock MP.  

The new centres of excellence will train a generation of onshore oil and gas specialists, helping the UK to seize the economic opportunities offered by natural shale gas.

The National College for Onshore Oil and Gas will be head-quartered in Blackpool and linked to colleges in Chester, Redcar and Cleveland, Glasgow and Portsmouth.

According to Energy Minister Matthew Hancock: 

“Shale gas is an enormous opportunity for the UK and one that we simply can’t afford to miss out on.

“Imagine if we had passed up a similar opportunity to go into the North Sea some fifty years ago. What if we’d let that oil and gas stay in the ground? What if we’d said it was too difficult or too controversial?

“The whole country would be poorer, finance would account for an even greater share of our economy; Aberdeen would be a seaside resort rather than a regional powerhouse.

“I am not prepared to pass up a once-in-a-generation economic opportunity, with the potential for industry to invest up to £33 billion in the next 15 years or so.

“Families, villages and towns across the UK could benefit from this new industry and its supply chain which could create 64,500 jobs.

“That’s why we are investing in the people behind project. Only by arming people with the skills they need to be shale specialists can we provide career opportunities for thousands of young people, boost the power and competitiveness of our firms and help the UK economy remain strong and competitive.

“To make a world-class cluster of expertise in the North West of England, just as Aberdeen is a world class cluster of expertise for offshore oil and gas.”

The Government is providing £750,000 of development funding which will be matched by industry bodies and education providers to develop the College.

Further capital funding will be available from the National College programme to support the college on an industry-matched investment basis.

The National College will:

  • Provide high level specialist skills needed by the industry from ‘A’ level equivalents right through to postgraduate degree level, and train teachers and regulators.

  • Accredit relevant training and academic courses run by other institutions.

  • Carry out research and development for improved equipment, materials and processes that will increase the efficiency and reduce the environmental impact of operations.

  • Work with schools to encourage children to consider careers in the industry, and to help them make the right subject choices early on.

Blackpool and the Fylde College’s Lancashire Energy HQ will deliver a comprehensive range of qualifications up to postgraduate level, with facilities including a drill simulator and emergency control simulator.

The University of Chester’s Faculty of Science and Engineering at Thornton Science Park will deliver a number of undergraduate and postgraduate degree courses as well as specialist masters, MRes and PhD programmes, and has recently been awarded funding to construct an Energy Systems Demonstrator.

Portsmouth’s, Highbury College’s Centre of Excellence in Construction, Energy & Sustainable Technologies provides a comprehensive range of accredited and bespoke courses to support entry to and progression in the onshore energy industry. The College is also developing strong links with the Southern Alberta Institute of Technology, located in Calgary, Canada’s hub for oil and gas operations

Redcar and Cleveland College’s Teesside Oil and Gas Academy will deliver a range of accredited and specialist bespoke courses in 2014-15, including Drilling and Petroleum Engineering, Geology and Geophysics, Quality management systems, and Piping and Pipeline Engineering.

The Weir Advanced Research Centre, based at the University of Strathclyde in Glasgow, will accelerate the development of high pressure pumping, hydraulic fracturing and other above ground hardware together with the training of highly skilled employees to operate the equipment.

The Minister will also be opening the new Advanced Technology Centre. The centre will provide a state-of-the-art learning environment that will become the Centre of Excellence for advanced engineering, technology and energy solutions on the Fylde Coast and across Lancashire. An estimated 6,000 students from the age of 14 years through to adults will benefit from this training and education every year.

Industry group, the United Kingdom Onshore Oil and Gas (UKOOG), led the bid to set up the college. Oversight by the industry will ensure that these colleges ensure students achieve the high level specialist training to meet the current and future needs of the industry, and keeps the UK ahead of the competition in drilling, hydraulic fracturing, site development and environmental management.

Further capital funding will be available from the National College programme to support the college on an industry-matched investment basis.

#ANS2014

‘ NUMBER OF PEOPLE KILLED IN TERRORIST ATTACKS RISES BY SIXTY PERCENT IN ONE YEAR ‘


#AceNewsServices – WASHINGTON – Nov.22 – The number of people killed in militant attacks worldwide jumped more than 60 percent last year to a record high of nearly 18,000 and the figure could rise further in 2014 due to an escalation of conflict in the Middle East and Nigeria, a report showed on Tuesday Reuters reported.

'NUMBER OF PEOPLE KILLED IN TERRORIST ATTACKS RISES BY SIXTY PERCENT IN ONE YEAR '

‘NUMBER OF PEOPLE KILLED IN TERRORIST ATTACKS RISES BY SIXTY PERCENT IN ONE YEAR ‘

Four Islamist groups operating in Iraq, Syria, Afghanistan, Pakistan and Nigeria were responsible for two thirds of the 2013 attacks and the vast majority of the deaths occurred in those countries, the Australia and US-based Institute for Economics and Peace (IEP) said in its Global Terrorism Index.

However, militant attacks are on the rise more broadly, with two dozen countries seeing more than 50 deaths in 2013, it said.

The four most active militant groupings are Islamic State in Iraq and the Levant (now renamed Islamic State), Nigeria’s Boko Haram, the Afghan and Pakistani Taliban and transnational al Qaeda-affiliated networks.

“There is no doubt it is a growing problem. The causes are complex but the four groups responsible for most of the deaths all have their roots in fundamentalist Islam,” said IEP founder Steve Killelea.

“They are particularly angry about the spread of Western education. That makes any attempt at the kind of social mobilizing you need to stop them particularly difficult – it can just antagonize them more,” he said.

The number of attacks themselves rose 44 percent in 2013 from the previous year to almost 10,000.

Deaths in such attacks are now five times higher than in 2000, the report showed, citing analysis of data in the University of Maryland’s Global Terrorism Database.

Most but not all militant attacks were religiously motivated.

Attacks in India – the sixth most affected country – rose 70 percent in 2013 largely due to attacks by communist insurgents. The majority remained non-lethal.

Source: 

#ANS2014

‘DELETED BBC VIDEO: MH17 WITNESSES SAY THEY SAW SECOND AIRCRAFT ‘


#AceNewsServices – Nov.22 – A BBC Russian correspondent interviewed numerous eyewitnesses who described seeing a second aircraft in the sky moments before MH17′s fatal crash.

' BBC Pulled Video '

‘ BBC Pulled Video ‘

The report was pulled by the BBC. 

Report which didn’t meet “the editorial values of the BBC”

As soon as the report was published on the BBC website, it was immediately deleted. Document is not availablesaid the page.

The video of Ivshina’s report, released on YouTube, was repeatedly deleted, according to YouTube users.

“Video Deleted YouTube,” read the description.

The deleted page immediately sparked the attention of social media. The report itself wasn’t deleted. The bloggers and twitter users accused the BBC of censorship.

“Why are they [BBC] deleting this video?” wrote one YouTube user. “They [BBC] are standing for democracy and the freedom of speech or those who deleted the video, don’t need truth?”

On Thursday, Yan Leder, a managing editor from the Russian service at BBC explained that the report was removed as it contained “mistakes.”

He added that the report had “imperfect structure” and “incomplete compliance of the editorial values of BBC.”

“Unfortunately in this case the report wasn’t submitted to BBC standard editorial analysis. As a result, there were several omissions [in the report],” he added.

According to Leder, the correspondent should have asked the witnesses specifying questions in response to their accusations and include “experts’ opinion in her report.”

“That’s why we are modifying the material so that it would (sic) meet the editorial standards of BBC.”

Russia Insider reports: On July 23, two days after the Russian Ministry of Defense presented a radar track of a Ukrainian SU-25 fighter climbing to within three kilometers of MH17, the BBC’s Russian service aired a report by correspondent Olga Ivshina.

The report originated when Ivshina and her cameraman went in search of the field outside the town of Torez, where the US government claims an SA-11 BUK surface to air missile was launched at the Boeing 777 on July 17.

Source: BBC Russia News – RT – BBC News – Russia Insider 

#ANS2014