…of Prince Philip, Puerto Rico and US bankruptcy


BenjaminFulford

It is time for Canadian LBO of bankrupt US Corporate government

Despite an ongoing pretense that nothing happened, it turns out the US corporate government based in Washington DC and registered in Puerto Rico really did go bankrupt last week. The bankruptcy of Puerto Rico is different from something like the bankruptcy of Detroit because Puerto Rico is a fully owned DC subsidiary and so the parent company must take the fall. This was why the Chinese Finance Minister suddenly canceled a meeting with his Japanese and South Korean counterparts last week because of a “financial emergency.”

http://www.reuters.com/article/us-adb-asia-trilateral-idUSKBN1802V2

This was also why the British Royal family held an emergency meeting last week at Buckingham Palace and then announced the retirement of Prince Philip.

Both emergency meetings had to do with the cashing of Super Petchili or Lung-Tsing-U-Hai bonds backed by Chinese gold and held by many members of the world’s royal families, according to a senior bank source. To be exact, according to this source, in exchange for resigning, Prince Philip was allowed to cash his Petchilis meaning the British Royal Family now has in its hands enough money to totally transform the planet.

If so, then this means Canada is now in a position to ask creditors of the bankrupt United States Corporation for financing of a leveraged buy-out of its operations. The result would be an end to the never ending insanity and criminality emerging out of Washington DC.

We will look deeper into this further down because, in terms of how this will affect the planet, this under the radar move is far more important than the French Presidential election. This was stolen by the Rothschild’s on behalf of their slave Emmanuel Macron with a in your face, Satanic 66.06% of the vote.

The French election was really a German/Russian proxy war over the control of Europe. US naval intelligence reports that German troops were sent into France prior to the election to while Pentagon sources say Russian troops were sent into Serbia at around the same time.

As things stand now, Hitler’s daughter Angela Merkel has repeated her father’s accomplishment of conquering France, this time through stealth rather than through open warfare.

Regardless though, Japanese military intelligence is now saying that defeated French presidential candidate Marine le Pen was in fact…

to be continued

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‘Bankruptcy closer every day, and you believe statistics?’


Statistics…lol!

I was doing statistics…I always produced the best statistics…the ones that my bosses love to see? They loved it and I got good pay rise and rewards because of it!

This is a wise farmer…wiser than world leaders or any corporate bosses…he wouldn’t have accepted my statistics either…

RT

John Kopiski April 16, 2015. British farmer John Kopiski, Russian citizen since 1997, during the annual Direct Line with Vladimir Putin special broadcast in the main studio of Moscow’s Gostiny Dvor exhibition hall (RIA Novosti / Alexey Druzhinin)

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An expat Englishman, who runs a farm not far from Moscow, has grilled the Russian president and asked where Putin gets his statistics. The farmer said his farm and other dairy farmers were struggling to survive.

President Vladimir Putin held his 13th marathon Q&A on Thursday. More than 3 million people sent in questions, touching mainly on the economy and the situation in eastern Ukraine. Apart from questions that were sent in, Putin also answered live telephone calls, video feeds – and questions from the audience.

One such question came from an English expat John Kopiski, who owns a dairy farm in the Vladimir region not far from Moscow.

John’s tenure in Russia now stands at 23 years and counting. When he arrived in 1992 he probably had no idea of the turnaround life would present him. A coal and steel industry worker was on a business trip in Moscow when he met the love of his life, Nina. To win her heart, John moved to Russia and converted to Orthodox Christianity.

Despite the huge efforts put into the dairy farm, John Kopiski is yet to turn a major profit on his venture and this is largely due to unfavorable market conditions in the agriculture industry.

“I have 1,700 milk cows that each gives 10,000 liters of milk per year… I’m forced to sell them now because the cost price is higher than retail. I cannot expand my business because I’m not making profit after doing this for 15 years… Banks ask for 120 percent, sometimes 200 percent collateral on a loan,” Kopiski told Putin in Russian.

The farmer said he and his son would like to go on with the farm, but were fearful the business may go down the drain. He asked whether Putin thought the statistics the government used to develop its policies were accurate enough.

“I feel bankruptcy getting closer every day… You have the statistics and it might seem ok but I’m sorry to say – it is not so. Please forgive me if my question is blunt. I have five children and I love Russia. It’s their motherland and I want to ensure their future here, but it must be based on truth and facts. That’s why I’m asking: do you believe what you are shown? Or is the president being lied to because his subordinates are afraid to say the truth,” he said.

Putin, thrilled to meet a British national farming in Russia, said he trusted statistics, though figures may be questioned in any country. However, the statistics were “more right than wrong,” he said.

“Purchasing prices for milk today are lower than the prime cost, and this creates issues. This comes from statistics, by the way. I do not have grounds to mistrust it,” Putin said. “I don’t know your milk yields, but in Russia in general they are a bit low compared to other countries. The reality is clear.”

“You may think the government is not aware of what is going on – we are. Maybe, we have not taken enough measures, but we are working on that… The government decided to subsidize the farmers’ floating capital,” Putin assured Kopinski. “You said you’ve been doing this for 15 years. You should continue with what you are doing because if it didn’t work you wouldn’t have been able to keep it up for 15 years.”

He added that Belarus exports dehydrated milk to Russia and that too has the effect of lowering prices.

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The High Price of Delaying the Default


Ludwig von Mises Institute

by Thorsten Polleit

Credit is a wonderful tool that can help advance the division of labor, thereby increasing productivity and prosperity. The granting of credit enables savers to spread their income over time, as they prefer. By taking out loans, investors can implement productive spending plans that they would be unable to afford using their own resources.

The economically beneficial effects of credit can only come about, however, if the underlying credit and monetary system is solidly based on free-market principles. And here is a major problem for today’s economies: the prevailing credit and monetary regime is irreconcilable with the free market system.

At present, all major currencies in the world — be it the US dollar, the euro, the Japanese yen, or the Chinese renminbi — represent government sponsored unbacked paper, or, “fiat” monies. These monies have three characteristic features. First, central banks have a monopoly on money production. Second, money is created by bank lending — or “out of thin air” — without loans being backed by real savings. And third, money that is dematerialized, can be expanded in any quantity politically desired.

A fiat money regime suffers from a number of far-reaching economic and ethical flaws. It is inflationary, it inevitably causes waves of speculation, provokes bad investments and “boom-and-bust” cycles, and generally encourages an excessive built up of debt. And fiat money unjustifiably favors the few at the expense of the many: the early receivers of the new money benefit at the expense of those receiving the new money at a later point in time (“Cantillon Effect”).

One issue deserves particular attention: the burden of debt that accumulates over time in a fiat money regime will become unsustainable. The primary reason for this is that the act of creating credit and money out of thin air, accompanied by artificially suppressed interest rates, encourages poor investments: malinvestments that do not have the earning power to service the resulting rise in debt in full.

Governments are especially guilty of accumulating an excessive debt burden, greatly helped by central banks providing an inexhaustible supply of credit at artificially low costs. Politicians finance election promises with credit, and voters acquiesce because they expect to benefit from government’s “horn of plenty.” The ruling class and the class of the ruled are quite hopeful that they can defer repayment to future generations to sort out.

However, there comes a point in time when private investors are no longer willing to refinance maturing debt, let alone finance a further rise in indebtedness of banks, corporations, and governments. In such a situation, the paper money boom is doomed to collapse: rising concern about credit defaults is a deadly enemy to the fiat money regime. And once the flow of credit dries up, the boom turns into bust. This is exactly what was about to happen in many fiat currency areas around the world in 2008.

A fiat money bust can easily develop into a full-scale depression, meaning failing banks, corporations filing for bankruptcy, and even some governments going belly up. The economy contracts sharply, causing mass unemployment. Such a development will predictably be interpreted as an ordeal — rather than an economic adjustment made inevitable by the ravages of the preceding fiat money boom.

Everyone — those of the ruling class and those of the class of the ruled — will predictably want to escape disaster. Threatened with extreme economic hardship and political desperation, their eyes will turn to the central bank which, alas, can print all the money that is politically desired to keep overstretched borrowers liquid, first and foremost banks and governments.

Running the electronic printing press will be perceived as the policy of the least evil — a reaction that could be observed many times throughout the troubled history of unbacked paper money. Since the end of 2008, many central banks have successfully kept their commercial banks afloat by providing them with new credit at virtually zero interest rates.

This policy is actually meant to make banks churn out even more credit and fiat money. More credit and money, provided at record low interest rates, is seen as a remedy of the problems caused by an expansion of credit and money, provided at low interest rates, in the first place. This is hardly a confidence-inspiring route to take.

lvm

It was Ludwig von Mises who understood that a fiat money boom will, and actually must, ultimately end in a collapse of the economic system. The only open question would be whether such an outcome will be preceded by a debasement of the currency or not:

The boom cannot continue indefinitely. There are two alternatives. Either the banks continue the credit expansion without restriction and thus cause constantly mounting price increases and an ever-growing orgy of speculation, which, as in all other cases of unlimited inflation, ends in a “crack-up boom” and in a collapse of the money and credit system. Or the banks stop before this point is reached, voluntarily renounce further credit expansion and thus bring about the crisis. The depression follows in both instances.[1]

A monetary policy dedicated to averting credit defaults by all means would speak for a fairly tough scenario going forward: depression preceded by inflation. This is a scenario quite similar to what happened, for instance, in the fiat money inflation in eighteenth-century France.

According to Andrew Dickson White, France issued paper money

seeking a remedy for a comparatively small evil in an evil infinitely more dangerous. To cure a disease temporary in its character, a corrosive poison was administered, which ate out the vitals of French prosperity.

It progressed according to a law in social physics which we may call the “law of accelerating issue and depreciation.” It was comparatively easy to refrain from the first issue; it was exceedingly difficult to refrain from the second; to refrain from the third and with those following was practically impossible.

It brought … commerce and manufactures, the mercantile interest, the agricultural interest, to ruin. It brought on these the same destruction which would come to a Hollander opening the dykes of the sea to irrigate his garden in a dry summer.

It ended in the complete financial, moral and political prostration of France — a prostration from which only a Napoleon could raise it. [2]

 

Thorsten Polleit is chief economist of the precious-metals firm Degussa and co-founder of the investment boutique Polleit & Riechert Investment Management LLP. He is honorary professor at the Frankfurt School of Finance & Management and associated scholar of the Mises Institute. He was awarded the 2012 O.P. Alford III Prize in Libertarian Scholarship. His website is www.Thorsten-Polleit.com. Send him a mail. See Thorsten Polleit’s article archives.

 

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