Stacy Summary: Another thread for Iceland; the story of our time. What do you think the next step will be? Sounds like the government is determined to strike a deal with the UK and Netherlands that the people of Iceland should pay the private debts of one bank. Any interesting links you have regarding the Iceland situation here too please!
March 7th, 2010 by
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Max explains Wall St.'s financial terrorism to radio listeners in Moscow
Hi Max!
I’m an ordinary middle-class Finnish guy who’s worried about his own
behind in these crazy times, just like anyone else.
Well, I’ve started writing a few different sentences here now, but
it’s difficult to make this e-mail look any more glamorous than it’s
bound to be..
So, I’ll just blurt it out:
I’d like to know if you think it’s a realistic idea that first-world
countries could become third-world countries as the result of whatever
new collapse is coming, and what exactly would it even mean in
practise?
Take this guy for example:
On a yet another hand, I’ve learned that
http://thearchdruidreport.blogspot.com/2010/02/becoming-third-world-country.html
– He sounds fairly convincing, but on the other hand, he calls
himself a “Druid”, so..
every time someone sounds “weird”, he might still be right.
I just can’t wrap my head around any of these predictions/visions, and
of course, I’d like to hear someone predict something else besides all
normal people having to fight for survival every day, and I’d like
that someone to be a credible guy
Recently, all the noises being made about Greece etc got me worried
enough to finally do something, and last weekend I bought 10 000 euros
worth of gold coins. I guess I’m now ahead of 99% of “normal people”,
but somehow that doesn’t feel very comforting.
Alright, I guess this is enough rambling for now.
What do you expect will happen after the next collapse? Do you think
any currency out of the dollar, euro, yen and pound will survive and
become the next dominant one?
I’m planning/hoping to be able to move to Japan/Asia maybe in the
summer, but a world-wide economic collapse might be somewhat of a
burden on those plans too.
In any case, it would be great if you could offer some advice!
Best Wishes,
Jukka
Iceland Voters Reject Repayment Plan http://dealbook.blogs.nytimes.com/2010/03/07/iceland-voters-reject-repayment-plan/ With about 98 percent of the votes counted Sunday, roughly 93 percent of voters said no to the plan, in the first public referendum ever held on any subject in Iceland. Less than 2 percent voted yes, and the rest of the votes were invalid. “We want to be perfectly clear that a ‘no’ vote does not mean we are refusing to pay,” Finance Minister Steingrimur Sigfusson said. “We will honor our obligations. To maintain anything else is highly dangerous for the economy of this country.”
(so more riots on the way? or is it just like the lisbon treaty: let people vote just as symbolism and give them the idea they have control/power while ramming it trough Anyways Support Iceland(ers) bust the banksters)
max re: appearence on AJ show
can you put ina plug for Ellen Brown’s state banking idea?
and that we are putting together a petition page for grass root support for state banks in every state
its our last chance chance to abolish the private federal reserve cartel IMO..
would sureappreciate..thanks Max..Randy N.
Dear Max,
I just want to say I am a big fan of your show and I do believe that you are a straight-shooter. I have watched your videos over the past year. I honestly do not know what is happening in this economy, or country, any longer. I am just plain confused about the economy and financial markets. I listen to CNBC daily, and one person may say things are getting better then others say they are not getting better. One thing is for sure- the stock market is rising.
I sell Real Estate in NJ (USA), in an affluent area. I have seen deals go down in the multi-million dollar range over and over during this crisis. Of course, they are somewhat discounted, and sales are not as brisk, but there are sales. I have invested money, since 1990, in equities and mutual funds. This was the worse thing I have ever done in my life. The really bad thing is I turned day trader. In the past year, I have lost substantial amountsof money doing this. My life savings is down to almost nothing Time after time, during this past crisis, I’ve been shorting this market through triple direction funds. I have listened to you, Dr. Doom (aka Mark Faber) and others trying to get clear direction, so I can at least get some of this money back.
Following this truth that you and others speak of has not seemed to work for me. Honestly I’m in tears and terribly depressed everyday. I have worked so damn hard for what I earned in my life in a very honest manner. I know you have been a wall streeter for many years. What advice would you give me at this point? You seem to have much insight on what really is going on in this world. Do I run out and buy a gun because the future is so bleak as you and others portray? Will the economy be saved by the Federal Government? Will the equity markets continue to rise? Should I continue to short the S&P? I don’t know Max. Did you ever loose a substantial amounts of money? Is this why you left wall street and seem to have such a vendetta with Goldman Sachs, the Federal Reserve, etc? I’m feeling against them in the same way as you my friend. I can tell how corrupt everything seems. Any insight as to what I should do now would be much appreciated. With all sincerity, Mike in NJ
MK: the five stages of grief apply to the loss of one’s country as well. Deal with the acceptance part of the cycle.
Those who love the US understand that the best thing at this point would be to let it collapse and rebuild from scratch.
Hi Max, Stacy,
As always your shows are great. Especially the weekend editions:)
Here is an update from Ontario, Canada. Note below GS has been retained to advise on selling off provincial, crown assets for “deficit reduction.”
Would be great if you could dedicate sometime talking to the credible Canadian Economists David Rosenberg or Jeffery Rubin to discuss Canada sometime.
Best,
David
McGuinty eyes selling shares in LCBO, Hydro One
March 06, 2010
Robert Benzie
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Finance Minister Dwight Duncan hinted at the proposed sale. (March 5, 2010)
CHRIS YOUNG/THE CANADIAN PRESS
The Ontario government is looking at creating a publicly held $60 billion “super corporation” of assets such as the Liquor Control Board of Ontario and Hydro One and then selling a minority share to private investors, sources told the Star.
Insiders say that is an option under active consideration as part of Premier Dalton McGuinty’s ambitious five-year plan called Open Ontario, which will be spelled out in Monday’s Speech from the Throne.
While government sources insist nothing is set in stone, McGuinty is aggressively seeking ways to maximize the value of the province’s considerable holdings and at the same time jolt the economy.
A “super corporation” of the 610-store LCBO booze monopoly, the Ontario Lottery and Gaming Corp. gambling empire, and blue-chip utilities Ontario Power Generation and Hydro One, could be worth between $50 billion and $60 billion.
Unlike the failed scheme by the previous Progressive Conservative government to sell Hydro One in 2002, the Liberals would not have an outright sale of Crown holdings.
Nor would any deal be structured like the Tories’ controversial 1999 liquidation of Highway 407 for $3.1 billion, which has led to soaring tolls for drivers.
“You would put all the assets inside a shell and then issue shares on that shell. That way there’s still an element of public ownership,” a Liberal insider said Friday.
“Then, perhaps one-third or slightly less than half of the shares would be sold. There would be foreign ownership limits, no single shareholder would be able to own more than 5 per cent, and the shares wouldn’t just be sold to institutional investors,” the source said.
Selling a minority share of the new holding company could bring in anywhere from $18 billion to $25 billion, a massive cash bonanza for a government saddled with a record $24.7 billion deficit and facing re-election in October 2011.
“It would satisfy the left because you would still have unionized workers at these publicly owned entities and it would satisfy the right, which always wants to privatize things,” the Liberal said.
“The only downside is if the market doesn’t react positively to it.”
Another official close to McGuinty, who regularly consults with business leaders like TD Bank chair Ed Clark, emphasized “the decision has not been made.”
But in a major speech Friday, Finance Minister Dwight Duncan telegraphed that the government, which has paid CIBC World Markets and Goldman Sachs about $200,000 to examine the value of public holdings, is moving in this direction.
Speaking to a Canadian Club luncheon at the Fairmont Royal York Hotel, Duncan admitted he was “doing what the spinmeisters call preconditioning” on the eve of the throne speech and a provincial budget later this month.
“The upcoming throne speech and budget will not announce the sale of any asset we currently own,” Duncan told a business audience of about 400 people before dropping major hints about future plans.
“We will, however, continue to examine whether our government businesses could be unleashed to provide new jobs and economic opportunity for Ontario families,” he said, emphasizing there would be widespread public consultation on any such move.
Tellingly, other government officials interviewed Friday repeatedly used the term “unleashed” when referring to a need for publicly held assets to realize their potential.
“There are new models for maximizing assets that protect and preserve the public interest. It is possible to significantly increase revenue and maintain regulatory control,” said Duncan.
“The question we’re grappling with is: are our assets being maximized to the advantage of all Ontarians?”
While the Liberals ran against privatization in the 2003 and 2007 elections, they have embraced public-private partnerships (P3s) to build dozens of new hospitals.
“As we review and research our options, we’ve established a number of principles: government regulation and protection of the services provided to Ontarians are critical,” said Duncan.
“Any changes to the structure of our assets must create jobs and growth. The bottom line is simple: our objective is the long-term interest of all Ontarians.”
But opposition critics are skeptical. Tory MPP Norm Miller (Parry Sound-Muskoka) warned that “having a fire sale of assets is not the right approach.”
New Democrat MPP Peter Tabuns (Toronto-Danforth) said “it worries me a lot” to hear Duncan talk of further privatization.
http://www.thestar.com/news/ontario/article/775924–mcguinty-eyes-selling-shares-in-lcbo-hydro-one
Hi Max,
Does this guy turn economics on its head? He analyzes the crisis from
a most original economic perspective, heavy in Physics analogies, and
then advocates the scientific re-engineering of human society.
http://www.youtube.com/watch?v=cAjFBsp__aE&feature=popt1dus01
Max
http://www.alternet.org/economy/145782/how_did_a_bank_lobbyist_score_the_top
_bank_regulator_job?page=entire
Too big to fail banks were a ticking time bomb, but they might not have
ravaged the global economy in 2008 without major shortcomings in consumer
protection over the previous five years. As head of the Office of the
Comptroller of the Currency, John Dugan played a leading role in gutting the
consumer protection system, allowing big banks to take outrageous risks on
the predatory mortgages that led to millions of foreclosures.
“For years, the OCC has had the power and the responsibility to protect both
banks and consumers, and it has consistently thrown the consumer under the
bus,” says Harvard University Law School professor Elizabeth Warren, chair
of the Congressional Oversight Panel for the Troubled Asset Relief Program.
“The result has not only been no consumer protection but also a collapsed
banking system. That is why we so urgently need a separate agency in
Washington that is specifically focused on protecting families from credit
tricks and traps.”
Chinese central bank Gov. Zhou Xiaochuan said China will in due course move away from its current currency-exchange policy, indicating Beijing doesn’t plan to keep the yuan’s de-facto peg to the U.S. dollar indefinitely, according to reports.
China central bank chief: Yuan policy to change, but not yet http://www.marketwatch.com/story/china-central-bank-chief-yuan-policy-to-change-2010-03-07
Air France-KLM traffic falls 2.2% in Feb. http://www.marketwatch.com/story/air-france-klm-traffic-falls-22-in-feb-2010-03-08
iceland pays the brits and all else the debt,. thats what happens next.
you had your democracy now shut up and pay your taxes.
FDIC prodding pension funds to invest in failed banks: report 8 March 2010, (Reuters) http://www.reuters.com/article/idUSTRE6271TO20100308?type=GCA-Economy2010
@maxkeiser, An interview between you and a reprerentative of Tehnocracy, Inc. could be very informative. Some of your observations in the latest TAM were substantially in accord with TI, and it offers a novel take on the credit crisis. They’ve been predicting as much for decades. It’s notable for applying models from engineering, and physics, to economics starting in the 1930′s, prefiguring the use of the sort of models Keen calls for. And your differing perspectives on the role of savings should make for a lively exchange.
Check out the photo of Strauss-Kahn of the IMF.
He looks like he is trying to keep his head above water, or is it debt and false accounting methods he is drowning in.
http://news.bbc.co.uk/2/hi/business/8554899.stm
Strong quake hits eastern Turkey http://news.bbc.co.uk/2/hi/europe/8554857.stm?ls
Talkin bout Granny
DJ granny Ruth Flowers takes Paris nightclubs by storm http://news.bbc.co.uk/2/hi/entertainment/8550942.stm
What Youri another Earth quake ?????
Nibiru harp gone wrong ??? tey was tryin Greece ???
Europe set to establish monetary fund to aid stability
( EMF instead of IMF )
http://business.timesonline.co.uk/tol/business/economics/article7053432.ece
You can always trust politicians to be inventive .. anything to avoid reality, common sense and honesty with the public !
Create a new committee, with loads of new civil-servants and politicians – but the source of the problem ( debt ) remains of course !
Aussie underwear has gone bananas http://www.reuters.com/article/idUSTRE6243V520100305
dubai’s debts are now estimated to be 4 X’s the orignal 80 bn. estimate (as i mentioned on RT a few months ago)
http://networkedblogs.com/Wuq8
@Phil /Germany
EMU suppose to be a monetary union for crying out loud !?
So in fact we could do without the EU cause when there’s a problem you just create a monetary fund.
Farmville introduces gold coins..Is this some kind of training program or something? Are Apple users the ‘chosen ones’ to ‘populate the new earth’?
lolololololololol
http://www.infowars.com/alex-jones-on-geraldo-media-sought-to-demonize-911-truth-with-pentagon-incident-link/
Geraldo tries but fails again toe ta chick Kimberly is cute
Hic
@ Max
If so 80 x 4 Dubais debt
Even I tot 80 bill was too less I mean tat Tallest buildin itself was 2 bill
Also Is Standar Charterd Bank exposed to tis stupid city in ta Sand ????
Also which are ta banks Exposed ta tis “Crap of Dubai”
Hey nice ring to it “Crap of Dubai”
Hic
The person to invent a way to truely reinvent things would be the ultimate mega uber genius..
@Bonn
cute but ignorant like a cow.
Morning Max, where the crash?
Mike
Was the Crash of an Icelandic Bank Icesave in the Netherlands Avoidable?
By Boris Agranovich
‘Let’s have a look now at the liquidity risk of Landsbanki at that time.
The original Basel II accord did not include liquidity requirements and a document named “Liquidity Risk:Management and Supervisory Challenges” dated February 2008 was the main source in defining the liquidity risk framework.
In that document the following elements were highlighted: liquidity policies, stress tests, scenario analyses, contingency funding plans, setting of limits, reporting requirements and public disclosure
It is worth mentioning that one important differentiating factor across regimes is the extent to which supervisors prescribe detailed limits on the liquidity risk and insurance that banks should hold. This is in contrast to an approach that relies more on reviewing and strengthening banks’ internal risk management systems, methods and reports.
The core sentence is: the application of liquidity regimes on a local management or legal entity basis requires that each legal entity be sufficiently robust with regard to external shocks. This may require a pool of liquid assets to be held locally, or for each entity to have independent access to contingent liquidity lines.
This pool has been requested by the DNB from Landsbanki but only just before the Landsbanki collapsed (September 2008).’
http://ezinearticles.com/?Was-the-Crash-of-an-Icelandic-Bank-Icesave-in-the-Netherlands-Avoidable?&id=3714772
After tey craped on sand tey went ta the Seas ta wash tear @#$%
lolololololol Dubai World nonsense and Dubai Palm to wipe
lolololololololl
Hic
Iceland vote on referendum already being conflated with Swiss vote on minarets.
‘…Swiss citizens do not hesitate in constraining the liberties of minorities in their referendums. It appears that these tools of ”direct democracy” are most appealing to politicians in need of a quick image fix. Is Olafur Ragnar Grimsson really serious when he says that Icelandic voters are equipped en-masse to interpret Basel II directives, EEA agreements, ECOFIN reports and international agreements in a well-balanced and objective manner?’
http://www.economicdisasterarea.com/index.php/editorial/icesave-nothing-ever-gets-built-from-trenches/
Jobs bill will not help NYC’s unemployment http://www.nypost.com/p/news/business/not_hiring_here_QtQKPUd9S1eR3DLUztBXgN
@Mike2liverpool
Be patient. Ever saw the movie The Dam Busters (1955) ? http://www.imdb.com/title/tt0046889/
@maxkeiser, The critique of the “Price System” in the Awakening video the viewer sent you a link to is derived from Technocracy, Inc.
I Am The Price System R. B. Langan, Great lakes Technocrat, April 1944
http://www.archive.org/details/IAmThePriceSystem
The Dambusters – The First Dam
http://www.youtube.com/watch?v=lCRIsjJFRNo
The Dambusters – The Second Dam
http://www.youtube.com/watch?v=JM1VGw0wM7k
Dambusters Anniversary Flypast
http://www.youtube.com/watch?v=m1OuyIe0pig
@The Man from Glad
Actually it is the Force 10 from Navarone http://www.imdb.com/title/tt0077572/
The explosive went of but the dam is not bursting right away. But slowly and gradually the dam cracks and the water force does do the rest. So from a small crack to an exponential burst.
Finansminister Steingrimur Sigufson seems quite optimistic about the economic outlook for Iceland.
Cheering for the Icelandic krona : http://tinyurl.com/ydka9we
Original : http://tinyurl.com/y8fkrbh
Thomas Vermes of ABC nyheter is one of the very few Norwegian journalists who does a decent job on the Icelandic saga.
The comments show how the general opinion have shifted from holding the Icelanders responisble ( for electing a government who caused the crisis) to a more balanced view.
The Norwegian government, as usual, belives only in democracy the East-German way.
@Max
And Greece’s debt Max ???????? 12 times more !
And off balance sheet’s USA liabilities ??????? 80 trillion !