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Showing posts with label economy. Show all posts
Showing posts with label economy. Show all posts

Monday, May 13, 2013

Psychopathy, Politics and The New World Order


 
Photo By: Stewart Brennan - http://sfbrennanart.blogspot.ca/

By: Colin Todhunter

Source: Global Research
http://www.globalresearch.ca/psychopathy-politics-and-the-new-world-order/5334458

When attempting to analyse what is happening in the world, it is important to appreciate past economic, social and political processes that led us to where we are today. Understanding the tectonic plates of history that led certain countries towards fascism, communism or capitalist liberal democracy, for example, is essential (1) (2).

At the same time, however, it can become easy for us to push aside the individual as we focus on theoretical perspectives that refer to the ‘underlying logic of capitalism’ or some other notion that draws heavily on theory. It can get to the point where individual motive or intent (agency) is airbrushed from the narrative because human action is deemed to have been shaped by the dead weight of history or forces beyond our control.

While not wishing to understate the role that such constraints have on human action, I wish to draw attention to researcher Stefan Verstappen who provides valuable insight into how individual agency has shaped and continues to shape society (3).

While Machiavellianism has long been associated with politics and public conduct, Verstappen shifts focus somewhat by arguing that people with psychopathic personalities have for thousands of years tended to grasp power and impose their views and deeds on the rest of us. In order to get power, he concludes that people cheat, kill or lie their way to the top. Whether it has been due to the butchery or lies of royalty, religious leaders, politicians or corporate oligarchs, nice guys have tended to finish last.

What leads him to conclude this?

Psychopathy is a personality disorder identified by characteristics such as a lack of empathy and remorse, criminality, anti-social behaviour, egocentricity, superficial charm, manipulativeness, irresponsibility, impulsivity and a parasitic lifestyle (4).

With that definition in mind, look around: the criminal, parasitic activities by bankers that have plunged millions into poverty; the destruction, war and death brought to countries in order that corporations profit by stealing resources; the dropping of atom bombs on innocent civilians in 1945 or the use of depleted uranium which again impacts innocent civilians; and the many other acts, from the use of death squads to false flag terror, that have brought untold misery to countless others just because powerholders wanted to hold onto power or to gain more power, or the wealthy wanted to hold onto their wealth or gain even more.

Based on these terrible deeds, it becomes easy to argue that the people ultimately responsible for them do not adhere to the same values as ordinary people. It may be even easier to conclude that it’s not the cream that rises to the top, but, in many cases, the scum.

Now such a scenario might seem awful enough, but the people who tend to control the world, the ones responsible for these acts, try to impose their warped world view and twisted values on everyone else. Hollywood films, commercials and political ideology are all engaged in forwarding the belief that it’s a dog eat dog world, war and violence abroad is necessary, competition and not cooperative is what counts, aggression and not passivity is the key to ‘success’ and that success equates with amassing huge amounts of personal wealth and lavish displays of conspicuous consumption.

“A person with a psychopathic personality, which manifests as amoral and antisocial behavior, lack of ability to love or establish meaningful personal relationships, extreme egocentricity, failure to learn from experience, etc.” - definition of a psychopath from Dictionary.com

Again, bearing this definition in mind too, the acts mentioned above are not those of properly functioning social beings that contribute to a sense of communality, altruism, love or morality; quite the opposite in fact.

Yet this is the type of stuff that is rammed down our throats as constituting normality every day. Whether it’s the ‘Big Brother’ TV show or ‘The Apprentice’ show, these values are promoted day and night. The ‘Big Brother’ winner is the one who can survive and outdo the competition in terms of the duplicity and backstabbing involved along the way. The winner of ‘The Apprentice’ must be more aggressive, more duplicitous, more devious and cunning and more willing to trample over everyone else. And the winner is judged as such by a multi-millionaire who himself was cunning and ruthless enough to have made it to the top of the pile and has amassed millions for his own personal benefit. These are the role models to be admired and emulated!

These are the measures of success, of sanity, of normality.

“It is no measure of health to be well adjusted to a profoundly sick society.” – Jiddu Krishnamurti

Apprentice competitors are highly driven individuals: not driven by a need to help humanity, but by egocentricity and greed. And, ultimately, these are the values that many mainstream opinion leaders, senior politicians and their corporate masters hold dear.

These values of egocentricity, aggression, competitiveness, duplicity and greed are not confined to some TV show. There are part of a much more sinister process. They are inextricably linked to and underpin the actions that resulted in the killing of half a million children in Iraq for geo-political gain (5) and the sending in of military forces into the jungles of India to beat, rape and dispose of a nation’s poorest people because they stand in the way of profit and greed (6). From Congo and Libya to Syria and beyond, we witness the outcome of a terrifying mindset that is nurtured and encouraged throughout society.

Too many people have become “well adjusted to the values of a profoundly sick society,” whether residing in middle England, middle America or the gated communities of south Delhi or Mumbai. Humanity is being beaten down to be neurotic, vicious and to regard these traits as constituting normal, acceptable behaviour. Thanks to the media, this becomes engrained from an early age as comprising ‘common sense’, and those who question it are merely sneered at or ridiculed by a system that promotes a mass mindset immune to its own lies.

Whether this is all due to psychopathy, narcissism or ‘Machiavellian personalities’ is open to debate. Moreover, as implied at the outset, historical and sociological factors often compel usually decent people to act in terrible ways. The debate within academic sociology between structure and human agency is after all a very long one (7). Whatever the underlying reason, however, as a global community we are being force fed a diet of perverse values and destructive actions, all spuriously justified on the basis that ‘there is no alternative’ and ‘needs must’.

Corporate capitalism, consumerism, the new world order, a war on terror (or drugs or poverty, take your pick), neo-liberalism – call it what you will, but it’s all based on the filthy lie that those in control have wider humanity’s interests at heart. They don’t. By any means possible – war, murder, torture or propaganda, they seek to convince people otherwise. What price human life? None whatsoever for such people.

--------------------------------------------- 

About the author:

Originally from the northwest of England, Colin Todhunter has spent many years in India. He has written extensively for the Bangalore-based Deccan Herald, New Indian Express and Morning Star (Britain). His articles have also appeared in many other newspapers, journals and books. His East by Northwest site is at: http://colintodhunter.blogspot.com/


Notes

1) Robert Brenner (1976), “Agrarian Class Structure and Economic Development in Pre-industrial Europe”.Past and Present 70

2) Barrington Moore (1993) [First published 1966]. Social origins of dictatorship and democracy: lord and peasant in the making of the modern world (with a new foreword by Edward Friedman and James C. Scott ed.). Boston: Beacon Press.

3) Defense Against the Psychopath (2013): http://www.youtube.com/watch?v=HQkDvO3hz1w

4) Polaschek, D. L. L., Patrick, C. J., Lilienfeld, S. O. (15 December 2011). “Psychopathic Personality: Bridging the Gap Between Scientific Evidence and Public Policy”. Psychological Science in the Public Interest 12 (3): 95–162.

5) Reuters report (2000), UN Says Sanctions Have Killed Some 500,000 Iraqi Children: http://www.commondreams.org/headlines/072100-03.htm

6) BBC Newsnight interview with Arundhati Roy (2011): http://www.youtube.com/watch?v=XrYQmRBdMPQ

7) Colin Hay (2001), What Place for Ideas in the Structure-Agency Debate? Globalisation as a ‘Process Without a Subject’: http://www.criticalrealism.com/archive/cshay_wpisad.html


 

Monday, May 6, 2013

It’s Time to Remove the Psychopaths that are Destroying the World




Video Source: GRTV YouTube

Psychopathy in Politics and Finance - Stefan Verstappen on GRTV
http://www.youtube.com/watch?v=eKqs7GJ0jdY

Written Comment By: Stewart Brennan
World United News

I’ve been struggling to make sense of the trends around me as everyday the world seemingly sinks a little deeper into the pits of hell. I believe this is because of the endless negative news and actions going on day in day out across the planet. But what gives this sense of despair sharp painful teeth is that I’ve also noticed that most everyone is cheering the Worlds direction toward complete destruction without thinking of moral responsibility, common sense, or empathy for life.
 
To a person like myself where these characteristics of common sense, empathy and respect are built within and are main pillars of my emotional and spiritual being, the sense and feelings that the future has taken a hopeless, directionless, and perilous path, is very depressing indeed. That is why this interview with Stefan Verstappen by James Corbett is considered by me to be very timely and inspirational. It in-stills a little hope to like minded souls by saying “you are not alone in your thinking” because truly, the establishment HAS gone insane and you are not the only one who has noticed.

Action / Reaction

I think it’s safe to say that most of us are guilty now and then of temporary insanity from our own vitriolic verbal reactions to injustice, even when our belief is for moral justice to prevail. This verbal reaction can be strong enough to be viewed by critics as being of the same behavioural characteristic as a psychopath’s…but in terms of being psychopathic, it really depends on action and intent rather than verbal reaction to injustice. IE: Being angry is a normal reaction to injustice so don’t let anyone tell you otherwise.

Visual Influences

Verbal anger expressed by the individual is based on the never-ending violence and immoral actions committed by a psychopathic establishment. Anger is a symptom of this mental torture that is widely displayed through Mainstream Mediums and Alternative News. Most of us have been so saturated with negative acts, wrong doings, and the establishments self justification for corruption, that anger screams out in response calling for justice and also to say that we have had enough. The experience can be likened to the feelings of being on a mediaeval rack that has stretched us out as far is it can possibly go without breaking us, leaving us in constant pain...so screaming loudly is a reaction don’t you think?

Who could not be outraged by all the evil being committed by the establishment through state and economic terrorism, especially when it is done in your name? Those in control of society are most definitely psychopaths and those that echo their sentiments are guilty of feeding them to enable the negative actions that come as a result.

Screaming for justice and disassociation from these evil minded animals and their aspirations of total domination is all we have left as individuals in a world that has become infected by greed. All “we the people” really want is a World based in morality, common sense, and empathy where we can all live and thrive together without fear of the psychopath or its enabling followers…Peace is something that a psychopath is incapable of thinking or doing, so its time to rid ourselves of these animals and their system of governance.

Problem / Solution

The real enemy of mankind are the Psychopaths that run the planet. These animals are a cancer to society and that cancer has spread throughout the World to every nation. It’s time to stop feeding this cancer by not taking part in their system. Stop feeding these monsters with praise, stop building their moral by asking for jobs in their system of enslavement. De-fund them. Do not partake in debt slavery; start living outside of their system.

It’s time to create the World you want to live in even while the Psychopaths try to burn the World down around you. Keep your spirit free from their negative influences and create positive energy. Live your life in full empathy for others. Use common sense and moral judgement and give of yourself to others to start this reversal of trends. I guarantee that you will be the first person to feel the positive energy of your actions. Understand that everyone is on the same mediaeval torture rack as you are so shift your thinking by making someone on the rack next to you smile…start sharing the positive energy by giving to others without expectation…let go of your fears and stop feeding the greedy system. It’s time to evolve past the psychopaths and their system of control.

 
Stewart Brennan
World United News & Music
http://www.youtube.com/user/2minstral

 

Wednesday, April 3, 2013

BRICS vs OECD or Corporations vs The People?



Photo: BRICS leaders gather at the “2013 BRICS Summit” in Durban South Africa

“The BRICS just became impossible to ignore. At the close of the Fifth annual BRICS Summit in Durban, South Africa last week, there was little question that this group of five fast-growing economies was underwriting an overhaul of the global economic and political order.” – The BRICS Post

This following Post is In Reply to:

BRICS Summit draws clear red lines on Syria & Iran
http://thebricspost.com/brics-summit-draws-clear-red-lines-on-syria-iran/

"BRICS Summit draws clear red lines..." was a very interesting post but it leaves out some extremely important details to the reader such as what this New World Banking Order is and what it really means. What are they really talking about?

In my opinion, what I see emerging with the BRICS is a duplicate Rothschild banking system with the exact same economic model that is based on exponential growth…and while we the people are realing from this growth model at home, the leading Western nations are plugging the worlds largest economy (China) into the energy they need to continue the destruction of the Western economies. Two clear examples of this are in Iraq and most recently, Canada’s Tar Sands…in fact the approved sale of NEXEN came from Washington and London before it could pass in the Canadian Parliament…not that Canada had any say anyways.
 


Photo: Canadian PM Stephen Harper Toasting FIPPA Deal with China’s Premier Wen Jiabao


Video: China Oil Firm Cuts Deal in Iraq

However the Harper government then went out of its way to give China free access without prosecution for damages they may inflict on our country with FIPPA. Then Harper removed the protection on 99.999% of all the lakes and rivers with Bill C-45 so that corporations like the ones from China could do what they want, anyway they want, without fear of prosecution…and to keep the crimes and pollution from being exposed they muzzled the scientists and declared environmental activists terrorists…(See links Below)

BRICS stand on Syria:

As for Syria…talk is cheap. Russia is under the Israeli influence, and Israel desires the destruction of Syria, Lebanon, and Palestine…and what has Russia done to protect them? Absolutely nothing. Syria has been economically destroyed already. All I see is inaction and empty words on the part of Russia and China on Syria as was the case in Libya. Who stopped the western OECD nations from destroying Libya, or the wests friends in Israel, Saudi Arabia, Qatar, Turkey, and Jordan from destroying Syria? No one! What I see, is an emerging New World Order via a single currency that will enslave the entire world to the banks and their system of exponential growth.


Video: The Truth About Libya

The status quo, of the OECD & BRICS economic model does not work in the favour of the people. It works in the favour of the wealthy few that control the currency…nothing will change with the BRICS system but I can see that the BRICS will grow simply because no one likes the war like behavior of the Western Nations, and as a result of a crashing OECD economic system, every bankrupt nation will turn to the BRICS and be assimilated into the New World Order emerging from the BRICS new deal.

The BRICS economic model is exactly the same as the OECD model, the only difference is the name of the business plan…the real reason the west is going down is because the banks want control of every country under their single global currency and to do this they must destroy the one that is currently in place…this has been their goal all along.

If we are to see a change in this world of ours we must change our priorities and not allow a corporate model to run the planet. The corporate structure is one of total dictatorship as everyone must see by now as multi national mega conglomerates gobble up everything in sight. Their influence on the Media and government are clearly obvious especially when they become too big to fail, have legislation passed in their favour, or are supported without investigation by the mainstream media. These multi conglomerates are driven by their largest shareholders with a growth model that is exponential and ruthless.

When you have the same share holders controlling the operations of multiple industries with decision making that is best described as, cold, unempathic, and without common sense or moral regard for society, then you have an Armageddon monster out of control and in process of destroying the planet.

 
Photo: Standard Oil Cartoon

Lead by Example:

The only solution that the people have if they want to survive is to stop this “thing” by ending the economic model that feeds it before it completely destroys the planet and everything on it.

I try not to be driven by greed and instead am driven by my empathy for all life and for the future generations that will inherit the earth after I’m gone. What will we leave the future generations? In reality, our needs are meagre compared to what now exists as an economic model…where will we be in 100 years if this economic model is allowed to continue?


Video Source: The Elders Speak (Part 3)
http://www.youtube.com/watch?v=9piIziXU9RE

I Don’t want to leave future generations with this economic monster in place so that it can destroy the planet and all life on it. Let’s be the change together and end this madness. The transition will begin when the OECD economies fall. The transition will be in your hands, either we begin the change by removing the private banks, corporate influence, and its political structure, or we succumb to our greed and wipe out the planet…it’s up to all of us, think very hard on this and discuss it with your neighbours, friends, and family…but do it soon because time has run out.

Stewart Brennan
World United News

This Opinion post is In Reply to:
BRICS Summit draws clear red lines on Syria & Iran
http://thebricspost.com/brics-summit-draws-clear-red-lines-on-syria-iran/

Information Links:

China Oil Firm cuts Deal in Iraq
http://www.youtube.com/watch?v=m4gskxEbPYw
Activists Labelled “Terrorists” by Canadian Government
http://www.youtube.com/watch?v=gg124WQthPM
Harper Government Muzzles Scientists
http://www.youtube.com/watch?v=gZmo-sU0bIw
Canadian Scientists “Muzzeling” Probed by Information Commissioner
http://www.youtube.com/watch?v=NuLUrQpixY4
Canada Under Siege – (Part 1) – The Tar Sands, Free Trade, & The Government
http://www.youtube.com/watch?v=qpfOsf1f26I
Canada Under Siege – (Part 2) – The Economy
http://www.youtube.com/watch?v=o2K3x-Ci8O8
The Truth About Libya – The Road to Endless War – (Part 2) - Libya
http://www.youtube.com/watch?v=FCgcbB29bmw
The Global Economy – The Truth and a Warning
http://www.youtube.com/watch?v=HHTpRDM96YQ

 

Tuesday, March 26, 2013

Canada Under Siege – Part 2 - The Economy


 


Source: World United News - YouTube
http://www.youtube.com/watch?v=o2K3x-Ci8O8

Watching the World descend into economic tyranny due to the IMF and Private for Profit only Banks, really angers the hell out of me, but being Canadian, it especially angers me for what is going on here in Canada…because our government is a party to the theft taking place right here…and that is regardless of what brand of politic sits in governance of our nation.

I was brought up believing that the Banking system in Canada was sound and far superior than the rest of the World simply because we had our own National Bank to issue our own money...and from 1935 to 1974 that was certainly true. But it has not been true since.

Born in Montreal Quebec, Canada in 1960, I’ve seen a lot of things happen to this great country of ours over the years, but I was extremely puzzled why, despite the abundance of our natural resources and government imposed high taxation that we had no money to function or healthy economy. One day I decided to find out why.

What I discovered was that there was a massive theft taking place right under our noses by the IMF and all the other private banks that secretly had embedded themselves into the fabric of our Canadian economy & community…What makes the massive banking crimes so maddening is that I also discovered that all the past and present, Federal & Provincial governments in Canada have had full knowledge of the theft and have been a party to it.

This theft has been going on since 1974 through Federal Conservative, & Liberal governments, and through the Provincial governments of the Conservative, Liberal, NDP, and Parti Quebecois parties. They ALL knew what was going on, and by their knowledge of these banking crimes, they have all committed treason against the people of  this nation for doing nothing about it. Maybe the Chamber of Commerce has something to do with it…since all political parties feast there.

By giving the power to create money to the IMF & its ring of Private Banks, and also by giving our natural resources to foreign business cartels, The Federal & Provincial governments have sold out the Canadian people!…est les Quebec libre aussi. We’re not so libre as we might like so we are all in this mess together.

The debt we owe today, with the National and Provincial debt combined, comes to around 1 Trillion dollars. The interest payment on 1 Trillion dollars if it was at 4% is 40 billion dollars. That works out to about 110 million dollars every day just to pay the interest on a loan that should never have been made in the first place!

The Bank of Canada:

The Bank of Canada was created in 1935 to restart the Canadian economy and regain the peoples trust through a Canadian centralized banking system. The issuance of our own currency, by our own National Bank came without interest or compound interest added, thus allowing Canada to prosper and not go into debt despite the huge work projects and social programs that were created to elevate society back from the trash heap.

Huge government programs were created to put people back to work and thus created some of the most important National Corporations between those thriving years of 1935 to 1974. These corporations were owned by Canadians under a banking system that used an interest free currency…everything belonged to us during that time, including the right to make our own budget.

Large-scale social programs such as Medicare, and social benefits for families…old age pensions all emerged out of this economic model…and it was a model that worked for everyone while it was in place.

The Personal Income Tax collected from individuals became the government’s biggest source of income to keep our own sovereign system in place. In essence, We worked and invested in our country at the same time. The nation prospered and provided us with a higher standard of living while not going into to debt.

All was well and fine until 1974 when the Government of Canada gave the IMF and private banks the power to create the Canadian dollar and to charge us compound interest on loaning us our own money. The result of this giveaway is that we no longer have control of our currency or our governing budget. It belongs to private banks and their centralized private I.M.F.

Since 1974, Federal and Provincial government budgets are borrowed from Private Banks with Compound interest attached. That means we lose large amounts of our wealth and hard earned money to pay back the compound interest that came with the loans…and since the money has to come from somewhere, Canadians became tax targets while at the same time we lose our social programs by government spending cuts directed and ordered by the IMF through banking blackmail. The international economic system is completely rigged…in other words, if you don’t do what the IMF tells you, your bond rating will be lowered and the interest on the loans will be increased…

Compound interest, by practice, steals all the money slated to maintain our infrastructure and social programs…as the interest on the loan builds, the debt increases, which then gives the governments the ok to increase our taxes, or borrow more money from the private banks. The whole charade sends the economy into perpetual inflation mode. This cycle has drastically lowered our standard of living since 1974 and All past & present governments are responsible and should be questioned on their knowledge of the theft taking place, or their incompetence of what was taking place….a thorough PUBLIC investigation into this is required at the very LEAST!

Shortly after the IMF took control of our monetary system, our National Corporations such as the Canadian National Railway, Air Canada, and Petro Canada, were sold by the Canadian government at the behest of those that control and loan us our money. Have a look into the Chamber of Commerce…there you’ll see where government business decisions come from. The Chamber of Commerce is a Private Club made up of Banks and Big Business Owners. Needless to say, National Corporations were sold to international private interests, And now they want to sell off programs by privatizing things like health care.

It is very important to note, that what disappeared with National Corporations such as Petro Canada, was the control of our natural resources and the profits they would have brought directly into the country’s coffers if we were not enslaved to the IMF and their scheme of compound debt. Instead, all profits from our natural resources go into the private pockets of the Corporate Share Holders while the rest of us pay increased taxes and allow them to steal it.

Corruption:

International Corporations pay rental fees to the Provincial & Federal Governments on the Canadian land they are raping…of course anyone in government that is pushing for corporate interests is on a committee that receives special compensation. To me this is nothing short of bribery…this type of behavior is shady, dishonest, and amounts to high treason against the people of Canada and should be publicly investigated with prison sentences for those found guilty. In light of these accusations I am making here, I find that the government is nothing more than a crime syndicate for big business, and it is time for these criminals to GO!

Now that the pillars of economic stability have been removed, Canadians find themselves at the mercy of the International banks that are TELLING us what to keep, what to sell and where to cut the budget. Our government not only sold us out, they refuse to change the economic climate for the betterment of its people…that means they do not work for the people of Canada but the private owners of the International Banks!

The next Canadian Federal election is in 2015 so we have time to organize the people of this country to take back our nation. To know which politician to vote for, make sure they are decidedly for removing the Private banks from issuing our money and to nationalize ALL our resources. It’s time to take our country back and this is the way to do it.

LINKS:

Canada Under Siege – Part 1 – The Tar Sands, Free Trade & Govt
http://www.youtube.com/watch?v=qpfOsf1f26I
Crime of the Canadian Banking System
http://www.snowshoefilms.com/
Oh Canada, Our Bought & Sold Out Land
http://www.youtube.com/watch?v=UbACCGf6q-c
Oh Canada Movie ORDER DVD
http://www.ohcanadamovie.com/

Press for Truth
http://www.pressfortruth.ca/
The Canadian Chamber of Commerce
http://www.chamber.ca/
Chambre de commerce et d’industrie de Quebec – (The Quebec Chamber of Commerce)
http://www.ccquebec.ca/
Bank of Canada – Official Website
http://www.bankofcanada.ca/
The Bank of Canada Act
http://laws-lois.justice.gc.ca/eng/acts/B-2/
Banknotes of the Canadian Dollar
http://en.wikipedia.org/wiki/Banknotes_of_the_Canadian_dollar
Canadian Banknote Company  - Owned by American Mega Corp. RR Donnelley
http://en.wikipedia.org/wiki/Canadian_Bank_Note_Company
BA International prints Canadian Dollars and is German Owned
Bloomberg - Company Overview of BA International Inc. – German Owned
http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=11792219
Canadian Crown Corporation
http://en.wikipedia.org/wiki/Canadian_Crown_Corporation
Canadian National Railway – Privatized in 1995
http://en.wikipedia.org/wiki/Canadian_National_Railways
Air Canada – Privatized in 1988
http://en.wikipedia.org/wiki/Air_Canada
CBC
http://en.wikipedia.org/wiki/Canadian_Broadcasting_Corporation
VIA Rail
http://en.wikipedia.org/wiki/Via_Rail
Petro Canada – Privatized in 2009
http://en.wikipedia.org/wiki/Petro_canada

 

Sunday, March 24, 2013

Eurozone finance ministers approve bailout deal for Cyprus


 
French minister of Economy, Finances and Foreign Trade Pierre Moscovici (R) and International Monetary Fund chief Christine Lagarde (L) chat next to EU Commissioner for Economic and Monetary Affairs Olli Rehn (C) prior to an extraordinary Eurozone meeting on March 24, 2013 at the EU Headquarters in Brussels (AFP Photo / John Thys)

Source: Russia Today
http://rt.com/news/cyprus-eu-imf-bailout-764/

The Eurogroup has approved a deal on a 10 billion-euro bailout for Cyprus, struck early Monday in Brussels. Cyprus avoids exiting the eurozone, but will have its second largest bank closed with heavy losses expected for big depositors.

The size of financial assistance will amount to 10 billion euro,” Eurogroup president Jeroen Dijsselbloem has announced at a press conference in Brussels after the eurozone finance ministers swiftly endorsed the plan.

“With this agreement we’ve put an end to the uncertainty that has affected Cyprus and the euro area over the last few days,”he added.

The new deal agreed between Cyprus and the Troika of international lenders - the EU, the ECB and the IMF - will set up a "good bank" and a "bad bank" and will mean that the country’s second largest bank Laiki will effectively be shut down.

Deposits below 100,000 euros will be shifted from Laiki to the Bank of Cyprus to create a “good bank.” Deposits larger than 100,000 euros will be frozen and used to resolve debts. It remains unclear how large the write-down on those funds will be.

The decision comes hours before the Monday deadline set by the European Central Bank, following heated talks between President Nicos Anastasiades and the Troika.

Earlier on Sunday the central bank in Cyprus has imposed an ATM withdrawal limit of 100 euros per day for the island's two biggest banks, in order to prevent a run on lenders.

Warren Pollock - market analyst and financial adviser says the financial turmoil in Cyprus is part of a broader crisis.

In reality this is a global problem which has not been addressed since 2007-2008 and previous to that with the issuance of huge amounts of debt and leverage into the system both in Europe and in the United States,” he told RT.


“And when that debt goes bad, the only recourse which exists is to tap remaining collateral in the system which is the savings.”



Pollock believes that sooner or later this “sort of stealing” of savings may result in popular unrest. “We can definitely see smaller countries being the test to see whether savings could be stolen on a wider scale.”

Cyprus imposes ATM withdrawal limit of €100 per day for island's two largest banks


 
People queue to withdraw their savings at a Cypus Popular Bank (Laiki Bank) ATM in Athens on March 22, 2013. (AFP Photo)

Source: Russia Today
http://rt.com/business/cyprus-bailout-withdrawal-banks-756/

The central bank in Cyprus has imposed an ATM withdrawal limit of 100 euros per day for the island's two biggest banks, in order to prevent a run on lenders.

A spokesman for the country's second largest lender, Cyprus Popular Bank, told Reuters that the new measure began at 1pm local time (11am GMT) and would remain in place until the bank reopens, or until confirmation of continued emergency funding from the European Central Bank. Cyprus Popular Bank had previously limited withdrawals to 260 euros per day.

A government official said the restriction also applied to the Bank of Cyprus.

It was initially reported that the measure was implemented on all banks in Cyprus, although it has now been confirmed that only the island's two biggest banks have been affected.

The news comes after Cypriot President Nicos Anastasiades took part in last-minute crisis talks with international lenders on Sunday, in an attempt to save the country from financial meltdown. The negotiations in Nicosia to seal a bailout from the EU and International Monetary Fund failed to reach a solution.

Anastasiades then headed to Brussels to hold talks with EU, European Central Bank and IMF leaders ahead of a crunch meeting of eurozone finance ministers.

Government spokesman Christos Stylianides said in a statement on Sunday that Anastasiades and his team have a "very difficult task to accomplish to save the Cypriot economy and avert a disorderly default if there is no final agreement on a loan accord."

The news comes just one day after Cyprus and the Troika agreed to a 20 per cent tax on deposits over 100,000 euros at the Bank of Cyprus and 4 per cent on deposits held at other banks.

"Unfortunately, the events of recent days have led to a situation where there are no longer any optimal solutions available. Today, there are only hard choices left," European Union Economic and Monetary Affairs Commissioner Olli Rehn said in a Saturday statement.

Cyprus is scrambling to come up with €5.8 billion by Monday, or face being kicked out of the Eurozone. The cash is a prerequisite for a further €10 billion in bailout funds.

Lawmakers' rejection of a previous proposal to tax all bank deposits prompted the European Central Bank to threaten to cut off emergency funding to Cypriot banks unless a deal was reached by March 25. Banks have been shut all week, and are due to reopen on March 26.

On Saturday, at least 1,000 bank workers in Cyprus hit the streets of the country’s capital of Nicosia. The demonstrators marched against the latest bailout measures taken by the country’s central bank.

Protesters carried banners that read, “Hands off provident funds” and “No to the bankruptcy of Cyprus.”

Turkey sends ‘stern warning’ to Cyprus over gas reserves


Meanwhile, Turkey has warned Greek Cyprus against using hydrocarbon reserves off the island to overcome its debt crisis without the consent of Turkish Cypriots. Ankara says such a move could result in an end to efforts to reunite Cyprus’ Turkish and Greek zones.

Turkey has contacted the US and plans to take the issue to the European Union, Today’s Zaman reported.

Ankara “had to issue a stern warning” regarding attempts to offer natural resources in exchange for foreign loans, a Turkish official said on Sunday.

Turkey has repeatedly warned the Greek Cypriot government against unilateral moves to extract natural gas and oil reserves off Cyprus, saying that Turkish Cypriots also have a say on the reserves.

The dispute recently escalated when reports surfaced that hydrocarbon exploration rights were part of Russia-Greek Cyprus talks last week over a possible deal which includes Russian financial help. However, the talks did not produce an agreement.

Russian Prime Minister Dmitry Medvedev expressed doubt on the inclusion of hydrocarbon reserves as a loan deal, saying there are concerns surrounding commercial viability and questions stemming from Turkish objections.

 

Tuesday, March 19, 2013

Cypriot parliament votes against deposit levy



Cypriot woman shouts slogans as she holds a placard during a protest against an EU bailout deal outside the parliament in Nicosia (AFP Photo / Patrick Baz)

Source: Russia Today
http://rt.com/business/cyprus-against-deposit-levy-501/

The Cypriot parliament has voted against a revised bank deposit levy. The tax was meant to shave 9.9% off any deposits over €100,000 and has since caused uproar in the country.

Thirty six deputies voted against the proposal to tax bank deposits in the 56-member chamber, while 19 abstained. One deputy was not present for the vote.

"The bill has been rejected," said house speaker Yiannakis Omirou, as thousands of protesters outside the parliament building in Nicosia erupted in cheers.

According to the proposal, a 6.75% rate was to be set for amounts between €20,000 and €100,000. Deposits of up to €20,000 euros were to remain untouched.

Passage of the bill was considered a prerequisite for a €10 billion European Union bailout for the Mediterranean island. EU finance ministers have warned that Cyprus' two biggest banks could go bust if a bailout deal in some form is not forthcoming. The government and opposition parties have scheduled emergency talks on the bailout for Wednesday.

The European Central Bank (ECB) has threatened to end emergency lending assistance for Cypriot banks if a bailout deal was not ensured. However, following the vote, the ECB said it would continue to provide liquidity to Cyprus as needed “within the existing rules,” Bloomberg reports.

Cyprus has discussed the tax with its European creditors. Ministers from the 17 eurozone countries urged protection for savers with €100,000 or less and for them to be spared from the levy, after the prospect brought panic to the markets and had Cyprus dealing with the prospect of Russia withdrawing its rescue loan.

The Cypriot government’s original proposal was to tax all depositors, setting the rate of 6.75% on all deposits under€100,000 and maintaining a 9.9% tax on all deposits above that level.

In the meantime all Cypriot banks have frozen the accounts liable for the tax and stopped all transactions, including electronic and closed for a long weekend until Thursday to prevent panic.

Cyprus needed to raise €5.8 billion euros for its bailout program and was hoping to get the money in the planned bank deposits levy.

Despite the precarious position Cyprus has found itself in, a default might be preferable than a bailout under the present conditions, United Kingdom Independence Party MEP Nigel Farage told RT.

“The EU has been unhappy about so-called tax havens for a very long time. Ironically, whilst continuing to turn a blind-eye to many activities that go on in Luxemburg. I mean Cyprus finds itself right now in a very difficult, desperate position. But I would say that it is better to officially go bankrupt, to default on international bond obligations. And to do that best to keep a banking industry and to keep some confidence in that country,”he said


 

Wednesday, November 21, 2012

Fed chairman warns US lawmakers on impact of 'fiscal cliff'


 
US Federal Reserve chairman Ben Bernanke

Source: Press TV
http://www.presstv.ir/detail/2012/11/21/273685/us-lawmakers-alarmed-on-fiscal-cliff/

US Federal Reserve chairman Ben Bernanke has once again warned American legislators to ward off the abrupt and severe combination of legislated tax hikes and federal spending cuts, known as ‘fiscal cliff,’ due to take effect by the end of the year.

In a Tuesday speech at the New York Economic Club, Bernanke described fiscal cliff as a “substantial threat” to the country’s economic recovery and urged US lawmakers to put aside partisan political rivalries to avert the massive financial impact on the nation’s already slow economy.

‘‘Uncertainties about the situation in Europe and especially about the prospects for federal fiscal policy seem to be weighing on the spending decisions of households and businesses as well as on financial conditions,’’ he said, adding, ‘‘Such uncertainties will only be increased by discord and delay.’’

According to reported estimates, the impact of the scheduled federal spending cuts and the expiration of temporary tax breaks will take at least USD 500 billion out of the US economy, threatening to push it back into yet another recession.

Citing several outside economic assessments on the enormity of the ensuing tax hikes and spending cuts, Bernanke said ‘‘a fiscal shock of that size would send the economy toppling back into recession.’’

This is while the Obama administration and Congress are still negotiating over an agreement to reduce the government's massive budget deficit, which has exceeded USD 1 trillion for a fourth consecutive year.

The last time the debt limit was about to be reached, Republican lawmakers in the US Congress waited until the very last minute before deciding to raise the limit.

Saying "the deficit is on an unsustainable path," the Fed chairman further added, ‘‘As you will recall, the threat of default in the summer of 2011 fueled economic uncertainty and badly damaged confidence, even though an agreement ultimately was reached.’’

‘‘A failure to reach a timely agreement this time around could impose even heavier economic and financial costs,” he warned.

Japan posts another record trade deficit


 
(Reuters / Toru Hanai)

Source: Russia Today
http://rt.com/business/news/japan-trade-deficit-record-219/

Japan has seen its worst trade deficit for October in over 30 years, renewing September’s record, with dropping exports to China due to the territorial dispute, and easing demand from debt-stricken Europe.

The government data showed that a 549 billion yen ($6.7 billion) visible trade deficit in October far exceeded the 360 billion yen shortfall expected by economists surveyed by Dow Jones Newswires and the Nikkei. This year, Japan posted trade deficits every month except February and June.

Overall, exports fell 6.5% year on year in October to 5.15 trillion yen. Total exports to China were down 11.6% year on year, compared with a 14.1% drop in September due to the growing anti-Japanese sentiment. Exports of automobiles to China were down 82% year on year, and exports of car parts were off 28.1%. The shortfall in car exports to China was the largest since October 2001, according to Japan’s Ministry of Finance.

The territorial dispute with China that sparked anti-Japanese riots in September re-emerged after the Japanese government bought a group of islands that China also claims.

Meanwhile, exports to the European Union dropped 20.1% year on year according to the data. But exports to the US were up 3.1%, supported by a rise in supplies of cars, engines and car parts.

Weaker exports have hit Japanese corporate majors such as Sharp, Panasonic, and Nissan, which heavily rely on foreign trade. Panasonic forecast a $9.5bln loss this year, 30 times bigger than analyst estimates, while Hitachi Construction Machinery Co. and Nissan Motor Co. cut their full-year profit forecasts.

Experts say Japan’s economy would experience its fifth technical recession in 15 years as it is expecting a fall in October-December, after dropping by 3.5% in Q3, which is below analysts’ expectations.

On Tuesday the Bank of Japan announced it has no plans for further stimulus measures, but experts suppose that weak figures would force them to change their mind. "With weak trade data, and likely a weak result to the BOJ's December Tankan survey, the BOJ could very probably ease in December," said Daiwa Securities senior economist Maiko Noguchi.

 

Wednesday, November 14, 2012

Egypt to receive over $6 Billion in aid from EU


 
A handout picture released by the Egyptian presidency shows Egyptian President Mohamed Morsi (R) and his foreign minister Mohamed Kamel Amr (L) meeting with EU foreign policy chief Catherine Ashton (C) at the presidential palace in Cairo, on November 14, 2012. (AFP Photo)

Source: Russia Today
http://rt.com/news/eu-egypt-aid-billions-680/

The European Union has approved a US$6.3 billion financial aid package for Egypt. The news comes as Europe is paralyzed by a general strike and mass protests as people are tired of deepening recession and strangled by constant budget cuts.

­The European Investment Bank is to grant Egypt 2 billion euro ($2.55 billion), the European Bank for Reconstruction and Development a further 2 billion euro and EU countries will also allocate a further 1 billion euro, the office of the Egyptian president said on Wednesday.

The statement was released after President Mohamed Morsi met with EU Foreign Policy chief Catherine Ashton.

Egypt is to sign a memorandum of understanding with IMF representatives for the loan this week. It is "a strong sign of EU's support for Egypt's path to development," the president said.

The Egyptian economy is still recovering after the overthrow of former President Hosni Mubarak in February 2011 and subsequent political turmoil.

Meanwhile, tens of thousands of people took to the streets across the EU to protest drastic austerity measures introduced by authorities to cope with the recession.

Spain and Portugal are facing general strikes, while Greece and Italy are seeing many walkouts. Millions of people from some 20 EU nations are expected to take part in the European Day of Action and Solidarity.

And as many Europeans are not happy to bail out struggling EU economies at a cost of their pensions and wages, the question is how they are going to react to paying Egyptian bills.

 

Tuesday, November 13, 2012

Stocks tumble as congressman predicts economic riots in America


 
Louisiana Republican Rep. John Fleming
Source: Press TV
http://www.presstv.ir/usdetail/272079.html

Stocks tumbled again on fears of the rapidly approaching fiscal cliff in the United States and a failure by eurozone finance ministers and the IMF to decide how Greece will resolve its sovereign debt and payoff the banksters at Société Générale, Deutsche Bank, Eurobank, and other loan sharking institutions.

"This morning the reasons du jour started out with Europe and the kerfuffle over Greece and then you have the fiscal cliff," Michael Holland, chairman of New York-based Holland & Co., told Bloomberg News.

"We're not out of the woods yet," said Guillaume Duchesne, an equity strategist at BGL BNP Paribas SA in Luxembourg. He added that a resolution of the financial crisis threatening to extend the recession for the foreseeable future depends on the leadershipof Obama.

According to Rep. John Fleming, we won't be getting out of the woods anytime soon, especially with Obama at the helm. "It looks like we're going to have to go through the same or similar pain [as Greece] to get real reforms," the Louisiana Republican told the Daily Caller on Sunday.

He said that if the current economic trend is not reversed, "what's going to happen is there's going to be a day of reckoning that gets into a serious situation where we have to make tough choices." Prison Planet

HIGHLIGHTS

Fleming told The Daily Caller that, ever since President Barack Obama's re-election last Tuesday, he has been advising Americans to play it safe financially because he believes the economy - and the state of the country - may soon get much worse. The Daily Caller

Fleming said he's telling concerned constituents and business owners to "not extend yourselves in debt, make sure that you pay off things, don't get into debt with credit cards, stay as liquid as possible. Don't take risks, and don't get into debt. You need to stay less vulnerable economically over the next two to four years, in hopes that the economy will sort itself out, and that Washington will get its act together." The Daily Caller

"What I fear is we're going to be too late, and we're going to run into a Greece-like situation, where we have riots and unemployment levels are up around 11 percent. That's what we've been trying to avoid," Fleming said. The Daily Caller

The so-called "cliff" comes on Jan. 1, when several tax cuts expire, and severe cuts to government spending are triggered. It's also been called "taxmageddon," because an average American family will see their tax bill increase $3,700 next year. ABC News

In total, the measures are set to automatically slash the federal budget deficit by $607 billion or approximately 4 percent of GDP between FY 2012 and FY 2013, according to the Congressional Budget Office (CBO). CFR

Any deal, all agree, would have to include revenue increases as well as budget cuts. A key question is whether any new revenue includes changes in tax rates - specifically, an end to the Bush-era tax cuts for those earning more than $250,000, which is what President Obama has been pushing and Rep. Boehner says "no" to. Christian Science Monitor

The IMF says the U.S. economy could fall back into recession if Congress fails to avert the package of tax hikes and spending cuts. Reuters

China and Russia are Acquiring Gold Dumping US Dollars


 
By: Prof. Michel Chossudovsky

Source: Global Research
http://www.globalresearch.ca/central-banks-are-acquiring-gold-dumping-us-dollars/22672

There is evidence that central banks in several regions of the World are building up their gold reserves. What is published are the official purchases.

A large part of these Central Bank purchases of gold bullion are not disclosed. They are undertaken through third party contracting companies, with utmost discretion.

US dollar holdings and US dollar denominated debt instruments are in effect being traded in for gold, which in turn puts pressure on the US dollar.

In turn, both China and Russia have boosted domestic production of gold, a large share of which is being purchased by their central banks:

It has long been assumed that China is surreptitiously building up its gold reserves through buying local production. Russia is another major gold miner where the Central bank has been purchasing gold from another state entity, Gokhran, which is the marketing arm and central repository for the country’s mined gold production. Now it has been reported by Bloomberg that the Venezuelan Central Bank director, Jose Khan, has said that country will boost its gold reserves through purchasing more than half the gold produced from its rapidly growing domestic gold mining industry.

In Russia, for example, Gokhran sold some 30 tonnes of gold to the Central Bank in an internal accounting exercise late last year. In part, so it was said at the time, the direct sale was made rather than placing the metal on the open market and perhaps adversely affecting the gold price.

China is currently the world’s largest gold producer and last year it confirmed it had raised its own Central Bank gold holdings by more than 450 tones over the previous six years. Mineweb.com – The world’s premier mining and mining investment website Venezuela taking own gold production into Central Bank reserves – GOLD NEWS | Mineweb

The 450 tons figure corresponds to an increase in the gold reserves of the central bank from 600 tons in 2003 to 1054 tons in 2009. If we go by official statements, China’s gold reserves are increasing by approximately 10 percent per annum.

China has risen to now be the largest gold producing nation in the world at around 270 tonnes. The amount bought in by the government initially looks like 90 tonnes per annum or just under, 2 tonnes a week. Before 2003 the announcement by the Chinese central bank that gold reserves had been doubled to 600 tonnes, accounted for similar purchases before that date. Why so small an amount you may well ask? We think local and national issues clouded the central bank’s view as it was the government that bought the gold since 2003 and have now placed it on the central bank’s Balance Sheet. So we would conclude that the government has ensured central bank gold purchasing must continue. “How will Chinese Central Bank Gold Buying affect the Gold Price short & Long-Term?” by Julian Phillips. FSO Editorial 05/07/2009

Russia

Russia’s Central bank holdings are in excess of 20 million troy ounces (January 2010)

 
Russia’s Central Bank reserves have increased markedly in recent years. The RCB reported in May 2010 purchasing 34.2 tons of gold in a single month. Russian Central Bank Gold Purchases Soar In May – China Too? | The Daily Gold

The diagram below shows a significant increase in monthly purchases by the the RCB since June 2009.

 
Central Banks in the Middle East are also building up their gold reserves, while reducing their dollar forex holding.

Gold reserves of GCC states is less than 5 percent:

Dubai International Financial Centre Authority economists released a report yesterday calling for local countries to build gold reserves, according to The National.

Despite a high interest in gold, GCC states maintain less than 5 percent of their total reserves in gold. Compared to the ECB, which holds 25 percent of reserves in gold, that leaves a lot of room for growth. http://www.businessinsider.com/gcc-boost-gold-holdings-2010-12#ixzz18FEqpTy3

GCC states should boost their foreign reserve holdings of gold to help shield their billions of dollars of assets from turbulence in global currency markets, say economists at the Dubai International Financial Centre Authority (DIFCA).

Diversifying more of their reserves from US dollars to the yellow metal would help to offer central banks in the region higher investment returns, said Dr Nasser Saidi, the chief economist of DIFCA, and Dr Fabio Scacciavillani, the director of macroeconomics and statistics at the authority.

“When you have a great deal of economic uncertainty, going into paper assets, whatever they may be – stocks, bonds, other types of equity – is not attractive,” said Dr Saidi. “That makes gold more attractive.”

Declines in the dollar during recent months have dented the value of GCC oil revenues, which are predominantly weighted in the greenback. GCC urged to boost gold reserves

According to a report in People`s Daily;

The latest rankings of gold reserves show that, as of mid-December, the United States remains the top country and the Chinese mainland is ranked sixth with 1,054 tons of reserves, the World Gold Council announced recently.

Russia climbed to eighth place because its gold reserves increased by 167.5 tons since December 2009. The top ten in 2010 remains the same compared to the rankings of the same period of last year. And Saudi Arabia squeezed to the top 20.

Developing countries and regions, including Saudi Arabia and South Africa, have become the main force driving the gold reserve increase. … .

The International Monetary Fund (IMF) and the European central bank are the major gold sellers, and the IMF’s gold reserves decreased by 158.6 tons. (China’s gold reserves rank 6th worldwide – People’s Daily Online

It should be understood that actual purchases of physical gold are not the only factor in explaining the movement of gold prices. The gold market is marked by organized speculation by large scale financial institutions.

The gold market is characterised by numerous paper instruments, gold index funds, gold certificates, OTC gold derivatives (including options, swaps and forwards), which play a strong role, particularly in short-term movement of gold prices. The recent increase and subsequent decline of gold prices are the result of manipulation by powerful financial actors.