Tag: global financial system

Episode 70 – Glencore Risk: Credit Crunch Crisis Crash

by Kurt Robinson on November 18, 2015 in Podcast • 0 Comments

The Episode:

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The Cash:

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The Story:

How do bubbles blow up, and how do they pop? Why do booms boom and eventually go bust? There are many reasons behind this. One is the oligopoly that many banks enjoy in many countries, meaning they don’t necessarily have to stay competitive to maintain their market share. Another reason is the fact that many banks’ deposits are guaranteed by law, such as in the USA and in Australia – reducing the incentive for depositors to be careful about where they put their money. A third reason is bail-outs by central banks, in what was once known as a “Greenspan put”, where bankers can take profit for themselves, but if they lose, they can rely on Federal Reserve to get them out of a jam.

All of this irresponsible money floating around can mean that sometimes banks get involved in assets which perhaps they shouldn’t. The story of the investment bank Lehman Brothers holding sub-prime mortgages, leading to the GFC in 2008, is one of the best examples. Today we have another example, where banks around the world, including Deutschebank, are holding extremely risky assets issued or derived from the Swiss multinational mining giant Glencore. As faith in these banks drop, we may see Glencore, Deutschebank and other institutions throwing in the “kitchen sink” – that is, releasing all of their bad news at a time when investor expectations are already at a tremendous low.

In this episode, we discuss the financial state of Glencore, and how it might have a role in the next “seven year cycle” financial crisis. Join us in a boom-bust rollercoaster on the next episode of … The Paradise Paradox!

The Links:

George Soros – system collapsed quote

Deep Dive: Glencore Implied Volatility, Growth for Autos – Weird Bloomberg video

Economists expect Fed to raise interest rates

Banks’ Glencore exposure is a $100 Billion Gorilla on Bloomberg

Glencore chases credit rating upgrade

Kitchen sink expression

Child labour and paramilitary allegations against Glencore

Glencore closes below one pound

Why did the Australian stockmarket lose so much money yesterday? (30 Sep 2015) on Vice

Glencore shares tumble on Hong Kong stock exchange (13 Nov 2015)

Glencore “Social value creation”

Here We Go: Fund Manager Warns “Something Just Blew Up In The Global Financial System”

Part 3: 20 More Signs That The Global Elite’s Ship Is About To Sink

Glencore: how did it go so wrong, again?

Commodities Prices Tumble as Investors Worry About 2016 Growth

Manufacturing matters: why it is important for an economy to have a manufacturing base

Episode 62 – Global Crisis: A False Economy

by Kurt Robinson on October 5, 2015 in Podcast • 0 Comments

The Episode:

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The Cash:

The Story:

Many people poking around the Internet have been acutely aware that something big might happen around September 13th or September 23rd 2015, having watched Jeff Berwick’s Shemitah videos or read “The Harbinger”, or having calculated the days between financial collapses in the Wall Street “Seven Year Cycle”. Then the dates passed, and, depending where you were, it might have seemed like absolutely nothing happened. Another December 2012, another non-event, no end of the world and no financial collapse. However, when we look at the news a little more closely, we can see that something did happen, and the events may have put the world economy onto the edge of a precipice.

Sharemarket corrections occurred in the USA, the UK, Australia, and China, among others. Australia’s stockmarket has been plummeting down since April, and on September 29 the ASX 200 took a 3% hit, sending its price down below 5000 for the first time since July 2013. The market recovered, but still seem reminiscent of sudden recoveries that happened right before the Global Financial Crisis really set in.

A few months ago, the Greek government instated capital controls, preventing the flow of money, restricting withdrawals to 66 euros per day. A few days ago, the Chinese government took a similar measure, restricting transactions to 50,000 yuan ($7,800) from October 1st till the end of the year, and 100,000 yuan ($15,600) for the whole of 2016. Capital controls are commonly a desperate measure, an indication that a currency is failing – that too much damage has already been done. If Greece finds itself in such a position, and China finds itself in a similar position, shall we see the same fate for the rest of the PIIGS, and the rest of the BRICS?

It’s a great show, and if you’ve been smart, hopefully you don’t have front row seats, because people in the first three rows will get wet. Could we be heading for the next global financial crisis? We explore this economic rollercoaster on the next episode of … The Paradise Paradox!

[Edit: Kurt said in this episode that it’s not possible to buy physical silver in Russia, but it turns out that is inaccurate. Many Russian banks will sell silver certificates, or allocated holdings, but at certain branches you can also buy physical silver, and there are coin shops and online outlets as well.]

The Links:

The Harbinger: The Ancient Mystery that Holds the Secret of America’s Future

Currency Wars: The Making of the Next Global Crisis

The Synchronicity Key: The Hidden Intelligence Guiding the Universe and You

Jeff Berwick – Shemitah Exposed

Jeff Berwick – Shemitah Exposed II

Corruption Perception Index on Wikipedia

Indonesia bans foreign currencies

China Imposes Capital Controls, Selling Billions of Dollars

Bartering Platform Offers Way To Sidestep Capital Controls in Greece

Why Did The Aus Sharemarket Lose So Much Money on Vice

Meet the Venezuelan Rebel with the Unofficial Exchange Rate

Dolar Today – Venezuelan exchange rates

Cover image used and modified under Creative Commons.

Episode 58 – September Astrology Collapse

by Kurt Robinson on September 11, 2015 in Podcast • 0 Comments

The Episode:

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The Cash:

The Story:

There’s a lot of talk floating around about September, with the Hebrew calendar culminating in the Shemitah, astrology leading us to believe that the divine masculine and feminine are moving in harmony, asteroids crashing into the earth, the Pope addressing the US congress, the Freemasons’ “Year of the Light”, the Federal Reserve expounding their interest rate policy going forward, and CERN powering up the Large Hadron Collider to full-bore.

Are all these potentially influential events just a coincidence? With so much going on in this world every month, maybe we should hesitate to draw any conclusions. Of course, where one human sees a coincidence, another sees a synchronicity – and that’s where we start going down the rabbit hole. Don’t fall too deep as we move into another earth-shattering episode of … The Paradise Paradox!