One Bank to Rule Them All: The Bank for International Settlements (#BIS)

#TPP: The Latest Assault on Free Trade

Misses Institute

October 7, 2015

free tradeThe Trans Pacific Partnership is just the latest assault on free trade, although, like previous assaults before it, such as the North American Free Trade Agreement, it is labeled as having something to do with free trade.

Today’s Mises Daily article describes it best: agreements between governments have nothing to do with free trade. This was the understanding of the early laissez-faire liberals. To have free trade, governments merely need only refrain from restricting it. And more specifically to the situation in the US, to allow free trade, the US government merely need refrain from prosecuting people who attempt to trade with foreigners who do not have the official stamp of approval from the US government. (See also Carmen Dorobat’s article from yesterday.)

To support restrictions on free trade is to support the jailing and prosecution of peaceful private citizens who trade with foreigners. Whatever the motivation, whether it is to attempt to punish foreign regimes (as with supporters of the Cuban or Iranian embargoes), or protect certain favored industries, the fundamental mechanism behind restrictions on trade is the prosecution and punishment of private entrepreneurs who engage in peaceful trade.

The TPP, like all other trade agreements of its type, was designed to serve the strategic interests of the governments involved, and has nothing to do with opening up new opportunities for free trade among ordinary members of the domestic societies that are taxed to finance the governments involved. There is no doubt that certain large corporate interests with political power will benefit from agreements like TPP. Large interests have the clout and the resources to change and shape these agreements to favor them. Small enterprises and businesses, and small entrepreneurs will only endure greater restrictions.

The New York Times reports how US allies are using the TPP as a “check on China.” It’s a national “security” scheme and has nothing to do with freer trade for you and me. Meanwhile, the CBC (Canada) admits that the TPP will do little to actually lower your grocery bill or the price of automobiles. So, if a trade agreement does nothing to actually make goods more available to the public, what does it have to do with free trade? The answer is: nothing.

The TPP and the Trade Rhetoric

The final and most important effect of this rhetoric is that when the TPP will fail to bring about the touted benefits—as it will not in fact promote a wider and freer division of labor—the market will become the scapegoat once more. And governments will again be called in to address the ‘market failure’. To paraphrase Elinor Dashwood (of Austen’s Sense and Sensibility), the market will suffer the punishment of a badly done trade agreement without enjoying any advantages. Read more


The World Map of Debt

Collateral world


Courtesy of: Visual Capitalist

The World Map of Debt

Every country is scaled based on its debt-to-gdp

What if we were to redraw the world map based on the sustainability of national debt levels?

Countries that are smaller in size, but that have big debt loads, would stand out more. If we used debt-to-GDP as scaling criteria, Japan would become the largest country on our new map. Japan holds 19.99% of all global debt despite only having about 6% of the world’s economic production. The country’s debt-to-GDP ratio is 230%.

Greece and Italy, two medium-sized European countries, would be bigger than North America as a whole. That said, the United States does hold an extreme amount of debt itself, equal to an astounding 29.05% of global debt. It is just masked more because of the country’s significant GDP. We have also looked at the United States another way in the past, and by the measure of debt-to-revenue, the US has the 2nd largest debt burden in the world.

On the opposite side of the question, there are large countries that have less debt – they disappear from the map almost completely. Australia, a giant land mass, is reduced to a tiny island with its load of 29% debt-to-GDP. Nigeria shrinks to a tiny speck on the map with an 11% ratio.

Original graphic by:


LaRouche Mobilizes to Shut Down Wall Street, As Bankers Shriek: “The System Is Cracking”

LaRouche Pac

Statue of Liberty

As you read this report, a strong delegation of LaRouche PAC organizers from New York City—seasoned veterans of Lyndon LaRouche’s “Manhattan Project”—has arrived in Washington, D.C. to head up a day of organizing and lobbying on Capitol Hill on Oct. 7, to urge key responsible Congressmen and Senators to act at once to shut down Wall Street, and implement Glass-Steagall. As LPAC’s 7-point statement, “For Urgent Attention of Congressmen, Senators and Other Members of the U.S. Government” specifies: “There is now an acute emergency which threatens to kill millions of Americans, primarily, and also citizens of other countries,” which requires action now, this week.

Panic among Wall Street and City of London bankers is evident just barely below the surface. The lead article in the Oct. 3-9 edition of the Economist, the banner publication for City of London financial interests, warns that “the system is cracking,” and calls for a massive effort to backstop the bubble with new waves of quantitative easing—exactly as Lyndon LaRouche has warned is their intention. Similarly, Forbes magazine frets that “there are over $600 trillion in OTC [over-the-counter] derivatives outstanding” on the books of the mega-banks (although the real number is probably twice that amount), which could blow the entire system apart, once a run begins. “For the likes of JP Morgan, Bank of America, Citigroup, Goldman Sachs and Morgan Stanley, these issues remain a topic of life or death.”

The British Empire is also panicked because their errand-boy Barack Obama is sinking, and sinking fast, both inside the United States and internationally. The impact of the United Nations General Assembly, and Russian President Putin’s bold actions in Syria, are rumbling around the planet, and people are waking up to the fact that a new international order is possible. They have watched as Putin took Obama to the cleaners in Syria, and not only survived to tell the story, but is going strong, while Obama is flailing about in frustration. The idea that “maybe we don’t have to suffer Obama any more; maybe we don’t need to submit to Wall Street and watch our nations die,” is a growing force across the planet.

This is a historic moment pregnant with potential, Helga Zepp-LaRouche has emphasized. It is a moment when we can not only sink Wall Street and reinstate Glass-Steagall, but also shift radically towards the policies of the World Land-Bridge and global reconstruction. The fact that leading scholars, think- tankers, and others in China have publicly endorsed the LaRouches’ Land-Bridge policy, that the second largest economy in the world has essentially adopted that policy, is of dramatic import globally. Now that the Chinese-language edition of EIR’s book “The New Silk Road Becomes the World Land-Bridge” has been published with such powerful endorsements, we will bring that message back home to the United States, with a large-run publication of the Special Report, priced for broad circulation across the country.

Lyndon LaRouche stated what is at stake, in his Oct. 5 weekly webcast with the LPAC Policy Committee:

“We can no longer tolerate the risk which is involved in the renewal of Wall Street’s conditions. And therefore, for that reason, we have to shut down Wall Street, in order to protect the people of the United States… We must take preemptive action. What we’ve done, and what I’ve pushed for, is to have an immediate decision, by relevant members of the Congress, to assemble and deal with the situation as such. That was, foreclose against Wall Street without letting them get a bail-0ut effort. Because the giving another option for bail-out to Wall Street would almost certainly ensure a great catastrophe of the people of the United States.””So therefore, we have to protect the population. We have to cancel Wall Street. And we have to proceed to restructure the organization of our employment for the intent of actually getting productive processes going into effect, essentially, a more exigent sort of requirement which Franklin Roosevelt did. But what Franklin Roosevelt suffered, and had to face and deal with, is minor compared to what this condition is of the United States right now.”

“But we have the means available, right at this critical point; we have the means internationally to create a solution for this problem.”


Wall Street Bankers Openly Discuss the Coming Crash: “The System Is Cracking”

As the LaRouche movement goes into high gear to shut down Wall Street and return to Glass-Steagall before a crash strikes, Wall Street and City of London bankers are now openly discussing the coming crash… and quietly panicking over how to handle it.

The lead article in the Oct. 3-9 edition of the Economist, the banner publication for City of London financial interests, warns that “the system is cracking,” and calls for an all-out effort to backstop the bubble with new waves of so-called quantitative easing—exactly as Lyndon LaRouche has warned is their intention. The article frets, however, that this hyperinflationary bailout policy may not work as it did in 2008, because the U.S. Congress might go instead for more regulation of the banks—although the article studiously avoids mentioning the feared words, “Glass-Steagall.”

A major problem today, the Economist writes, “is the lack of a backstop for the offshore dollar system if it faces a crisis. In 2008-09 the Fed reluctantly came to the rescue, acting as a lender of last resort by offering $1 trillion of dollar liquidity to foreign banks and central banks. The sums involved in a future crisis would be far higher. The offshore dollar world is almost twice as large as it was in 2007. By the 2020s, it could be as big as America’s banking industry. Since 2008-09, Congress has grown wary of the Fed’s emergency lending. Come the next crisis, the Fed’s plans to issue vast swap lines might meet regulatory or congressional resistance.”

The Economist article concludes: “There are things America can do to shoulder more responsibility–for instance, by setting up bigger emergency swap lines with more central banks. More likely is a splintering of the system, as other countries choose to insulate themselves from Fed decisions by embracing capital controls. The dollar has no peers. But the system that it anchors is cracking.”

Similarly, Forbes magazine’s Antoine Gara wrote on Oct. 2 about the danger of a new blowout, which unusually admits that the underlying problem is the gigantic pile of derivatives sitting on top of numerous nominal debt bubbles. Gara, in reviewing the current Glencore crisis, tries to whistle past the graveyard, arguing that “Glencore’s unraveling won’t turn into the next Lehman Brothers crisis.” He says that is because Glencore does not have the derivatives exposure that Lehman had.

But, he admits, “were Goldman Sachs, Morgan Stanley, or any other large investment bank to be thrown into Glencore’s current predicament, there would be good cause to worry about a Lehman 2.0. There are over $600 trillion in OTC derivatives outstanding [in actuality, there are probably double that amount–ed.], a greater number than prior to the crisis, and many of those contracts continue to trade bilaterally among banks, linking firms together.”

Gara concludes: “For the likes of JP Morgan, Bank of America, Citigroup, Goldman Sachs and Morgan Stanley, these issues remain a topic of life or death. Last quarter, each firm disclosed trillions, if not tens of trillions outstanding in OTC derivatives contracts. No amount of rising retained capital would
protect those firms if there were a messy Lehman-like bankruptcy.”



The First Crack: Deutsche Bank Preannounces Massive Loss, May Cut Dividend


What Washington Isn’t Saying About the #TPP ‘Victory’


stop TPP

Manuel Pérez-Rocha, policy analyst at Institute for Policy Studies, says that the stated purpose of the agreement — to eliminate tariffs — has distracted people from its more subtle goal of protecting corporate profits


Putin Orders Military Draft Of 150,000 As Russian Air Fury Pounds Syria

By: Sorcha Faal, and as reported to her Western Subscribers

A new Ministry of Defense (MoD) report circulating in the Kremlin today states that yesterday’s decree signed by President Putin for the autumn conscription campaign of an additional 150,000 troops will ensure the continued combat viability of Federation Military Forces as it faces not only Islamic State (ISIS/ISIL) terrorists, but the growing threat of war between Russia and the West.

According to this report, even though Kremlin spokesman Dmitry Peskov stated about President Putin’s conscription decree that “this… is a regular document which the president signs twice a year. It is not related to Syria in any way, of course, this situation does not concern the draftees in any way”, the propagandist lies being disseminated by the Obama regime about the Federation now border on the perverse.

Fueling the Obama regimes anger against Russia, this report continues, was President Putin, yesterday, requesting, and then receiving, a Declaration of War against ISIS/ISIL forces operating in Syria—immediately after which he ordered combat operations to begin.

Immediately prior to Russian combat operations against ISIS/ISIL forces in Syria beginning, this report states, Russia’s top military commander in the Middle East presented to the Americans at their embassy in Baghdad, Iraq, a legal démarche demanding that the United States cease all operations in Syria as it was in clear violation of United Nations and international law by its unprovoked attacks against the sovereignty of a foreign nation—a crucial point expounded on by former US Central Intelligence Agency (CIA) and US State Department analyst Larry Johnson who said:

Under international law, Russia holds all of the cards in Syria. It has been invited into Syria by the Government of Bashir Assad. The Syrians want the Russians on the ground and in the fight. The United States, by contrast, is the law breaker. We are committing an act of war against the Government of Syria by conducting unauthorized air strikes and inserting U.S. Special Operations forces on the ground.”

And of the greatest worries to Russian combat commanders in Syria requesting that this démarche be issued to the Americans , this report warns, are for those US Special Forces operating illegally in Syria who “insanely” have been ordered by the Obama regime to wear a combat designation patch on their uniforms that is nearly identical to that worn by ISIS/ISIL troops thus putting their lives in grave danger.

USSF patch

US Special Forces Patch (left) ISIS/ISIL Patch (right)


With the Obama regime having now been issued this démarche, this report says, Russia is now no longer legally responsible should these US Special Forces be killed by Federation airstrikes (or other such combat methods) and, even more dangerously, American aircraft illegally operating in Syrian airspace are likewise able to be targeted and downed too.

Important to note too, MoD analysts in this report state, the Federation, prior to yesterdays combat, attempted to forestall war when, back in August, all of the Syrian opposition groups were invited to Moscow to mediate and end to this conflict.

However, this report continues, with the Obama regime blocking all avenues of peace, Russia was left with no choice but to declare war on ISIS/ISIL thus causing President Putin to shame these Western warmongers by stating earlier this week at the United Nations:

Instead of the triumph of democracy and progress, we got violence, poverty and social disaster — and nobody cares a bit about human rights, including the right to life, I cannot help asking those who have forced that situation: Do you realize what you have done?

And to what exactly these Western warmongers have done, this report details, is to unleash the fury of over 50 Russian Aerospace Forces warplanes and helicopters that have begun to pulverize ISIS/ISIL forces in Syria.

Russian jetfighters

With the Obama regimes backed media propaganda against the Federations war on ISIS/ISIL becoming more absurd and outlandish by the hour, this report says, Foreign Minister Sergey Lavrov was forced to advise American reporters to stop listening to the Pentagon and, instead, get the truth directly from the MoD.

In just one example of this Obama regime propaganda, this report notes, was the accusation that Russian forces were killing children—which was immediately proved to be a lie when the picture used by the American media to support this allegation turned out to be a complete fabrication as it was taken five days prior to any Federation combat operations. .

civilian casualties

And as these 150,000 new Russian troops begin reporting to their training bases, this report concludes, though they will, most likely, not have to fight in Syria, the same cannot be said about the West—especially when viewed in the light of the United Kingdom’s top military officer calling on his nation to prepare for war with Russia.

Other reports to read on the September 2015 War include:

Putin Authorizes Air Strikes On “American Interests” As Thousands Of Russian Troops Pour Into Syria  

Fears Explode In Russia After Obama Orders Sudden 9/11 Type War Drill  

Russian Troops Put On Combat Alert Over Obama Regime False Flag Fears

Putin Activates Shocking “Defend Israel” Atomic War Plan

US-EU Refuse To Accept Massive List Of 87,000 Islamic Terrorists From Russia

CIA Breaks With Obama, Vows To Help Russia Defeat ISIL/ISIS

Russian Atomic Bombers Ordered To “First-Strike Zones” As Germany Nears Collapse

Russian Report States Total Defeat Of US Military Would Take 3 Weeks

Obama In Ecstasy As “Nuclear Tsunami” Ignites Islamic End Times Fears

Russia Begins September War, Issues Dire Warning To Britain

October 1, 2015 © EU and US all rights reserved. Permission to use this report in its entirety is granted under the condition it is linked back to its original source at WhatDoesItMean.Com. Freebase content licensed under CC-BY and GFDL.


Consciousness Is Rising. Here’s Proof As Trillions Of Dollars Are Being Pulled Out Of Old Ways

Collective Evolution


The collective power of one movement, 2000+ individuals, and 400 institutes, equals 2.6 trillion dollars — all being divested from old, unclean energy sources such oil, coal, and gas. Right now, Leonardo DiCaprio is just as fired up as the Divestment movement is, and for the first time in a long time, a clear message is being sent not only to world leaders, but also, perhaps more importantly, to corporations.

The message comes in a language they certainly know well, and that is dollars. The divestment movement is asking institutions whose profits are derived from oil, gas, and coal to simply divest that money into renewable energy sources and climate solutions. This time last year the world’s largest private bank, UBS, was urging investors to join the clean, renewable energy movement. Analysts at the bank said that power plants in Europe might be extinct within the next 10 to 20 years. According to an economic analysis report done by Arabella Advisors, factors contributing to people becoming more aware about our planet and how we are impacting it are apparent. Here are highlights of the report and what some of the numbers show.

Big Corps Are Pledging

Traditionally, it has been faith-based communities, NGOs, universities, and mission lead initiatives that have jumped on board for climate change solutions and other social issues. Now, huge pension funds, municipalities, and private-sector players like insurance companies and some entertainment houses have signed on. With these large backers, which hold 95% of the total amount being committed to divestment, there is no telling where else this movement can spread.

Risky Business

The climate risk to investment portfolios is one that investors cannot ignore, in fact it’s what is  exponentially driving the divestment from corportaions and individuals. Reports by Citigroup analysts, HSBC, Mercer, the International Energy Agency, Bank of England, Carbon Tracker Initiative, and others have offered evidence of a significant, quantifiable risk to portfolios exposed to fossil fuel assets in a carbon constrained world. The leaders of several of the largest institutions to divest in the past year have cited climate risk to investment portfolios as a key factor in their decisions.

Spreading Out

While historically focused in the United States, the divestment movement now spans the globe. In 2014, 78 percent of divesting institutions were US-based. Today, 57 percent are US-based. Institutions that have chosen to divest represent more than 646 million individuals around the world.

Invest in Solutions

Internationally, investment in clean energy reached $310 billion in 2014. Among those pledging to divest, many are also committing to invest in climate solutions (this ranges from: renewable energy, climate justice initiatives, resilient infrastructure, sustainable agriculture, water projects, and more). Those institutions and individuals that have pledged to both divest and invest in clean energy collectively hold $785 billion in assets.

From an economic point of view, if the market is changing then so should your investments. Thomas Van Dyck, managing director of the SRI Wealth Management Group, said the new level of consciousness among individuals and institutional investors is palpable. According to Van Dyck, the findings of the Arabella report “underscore[] what I see every day as a financial advisor—that the demand for fossil-free investment products is increasing.” But this shift is not just reflective of a desire to save the world, it is also logical for those concerned about paying attention to what the scientific and economic studies are saying about the future of the fossil fuel market. “More and more investors are reducing their carbon risk today and diversifying their portfolios with the goal to harness the upside in the sustainable clean growth industries of the future,” Van Dyck added.