Observations Run for the Hills David MacFairlane - Main Street has successfully seized depositors’ bank accounts as a condition of the country’s recent EU bailout and bank rescues, the precedent has been set for similar confiscations in the event of future bank failures anywhere in the world. Investors beware; avoid intermediaries between you and your assets!! The deposit insurance funds simply do not have enough money in them to bail-out all insured bank accounts, so there will be nowhere to turn for relief if the worst comes to pass. That’s what Jim Rogers meant when he referred to not being trapped. He meant that you should get out of the markets while you still can. He lives in Singapore, his kids learn Mandarin, he has no investments in US markets and little cash in US and EU banks. This statement was made by Jim Rogers on a recent CNBC programme, “Squawk On The Street” in reference to the growing banking and sovereign debt crisis relentlessly strangling the global economy. He points out that now that Cyprus He is not alone in issuing warnings to investors that asset prices are over-valued; the stock markets are dangerously over-priced, as are the Sovereign Bond and real estate markets, due to the flood of cheap, fiat currencies sloshing around the world. Due to the absence of foreign buyers, for the past couple of years the Federal Reserve has been the buyer of last resort, purchasing US Treasury Bonds in order to finance the enormous deficits of the US Government. At the same time, through collusion with the TBTF Wall Street criminal banking cartel, the stock market has been kept at absurdly high levels in order to dupe retail investors into believing in the strength of the US economy when, in fact, it is buckling at its knees and 50% of workers are subsisting on government payouts in one form or another. Shadowstats is an organization well-respected in financial circles for providing independent analysis of US Government economic and labour statistics and exposing the flaws in current government economic data. Its CEO, John Williams, just issued a special report containing an ominous warning of an approaching major turning point in domestic and global markets. It does not mince words. It says: “US economic and systemic solvency crises of the last two years are just precursors to a Great Collapse: a hyperinflationary great depression. Such will reflect a complete collapse in the purchasing power of the US Dollar, a collapse in the normal stream of US commercial and economic activity, a collapse in the US financial system, as we know it, and a likely realignment of the US political environment.” The report goes on to warn about the likely panic in the markets, the inevitability of hyperinflation and the deteriorating expectations for domestic political stability. The entire report is available to subscribers on the Shadowstats website, but the overall message is unequivocal: “Be warned. Trouble is ahead. Protect your assets while you can or you could be impoverished.” Elsewhere, another iconic investor and financial wizard, Kyle Bass, CEO of the hedge fund, Hayman Capital Management L.P., warns in his latest investor letter of June 5 that..…. “The combination of rich valuations and further threats to growth has led us to dramatically reduce risk in the portfolio and actively position ourselves to withstand the uncertainty and instability ahead.” His report was issued following a recent trip to Japan, where he “met with ….. the metaphorical Zen priests of finance in Tokyo. … Unfortunately, I had this overriding feeling of sorrow and empathy for most of the people with whom I met because my conclusions regarding their potential financial fate were reinforced on this trip. … Most large and complex problems do not have a single cause. … Japan and its leadership face an unsolvable equation in my opinion. … but it is fascinating to observe the progression of the decline over time and the recent broad acknowledgement of their plight. … I was introduced to a Japanese phrase that encapsulated their strangely fatalistic viewpoint … a willingness to submit to this unfortunate reality, rather than fight a seemingly inevitable or impossible challenge … ‘Shikata ga na’ … ‘It cannot be helped’ ” Another morsel of analysis regarding China is very informative …”China’s direct contribution to global growth is enormous. … A slowdown, whether significant or extreme, in the Chinese “What more do you need to know? Please, you better hurry, you better run for the hills. I’m doing it anyway. I want to make sure that I don’t get trapped. Think of all the poor souls that just thought they had a simple bank account (in Cyprus)… If you’re going to listen to government, you’re going to go bankrupt very quickly.” - Jim Rogers. US Investment banker, co-founder of the Quantum Fund with billionaire George Soros which, famously, broke the Bank of England economy heralds very bad news for asset prices around the world.” In short, Kyle Bass is taking shelter and protecting his billions. How, one might ask, has all this come to pass? Why are we in such a sorry state? The US is still the world’s lone superpower with military and political tentacles encircling the globe, the dollar is still the reserve currency, the US, EU, China and Japan are the leading economic engines driving production and consumption, the Dow and S&P are flirting with all-time highs, the banks are flush with cash, and the rich know no limits - in fact, there is a waiting list for $50 million, 200-foot luxury yachts - so what could be wrong? As Kyle Bass pointed out, most large and complex problems do not have a single cause. Washington’s arrogance and venality have upset the global apple cart and destroyed the mutual trust upon which international commerce is based. According to Dr. Paul Craig Roberts, of the Institute For Political Economy, (former editor, Wall Street Journal and Asst. Secretary, US Treasury) the US Government has bullied its allies for six decades, requiring them to salute and say “Yes, Sir” in order to receive the generous subsidies (bribes) and aid packages that have bought their loyalties in the past, but now they have tired of prostituting themselves for increasingly diminishing returns and the unremitting pain of enduring Washington’s ego-tripping sense of its own exclusive, universal relevance and invincibility. The EU is busy dealing with enormous economic problems of increasing sovereign and banking debts, plunging economic activity, skyrocketing unemployment and spreading civil unrest in the periphery countries. Greece, Spain, Italy, Ireland and Portugal are bankrupt, France’s economy has stalled and civil unrest is simmering as well as extreme dissatisfaction with the Hollande government. Germans are tired of bailing out the EU and Chancellor Merkel’s hold on power becomes tenuous. In short, the US-EU alliance is shredding because US money is diminishing, both in quantity and value, as the dollar declines in influence and purchasing power and China and Russia become more important to Europe in strategic and economic terms. Egypt is in total political disarray, while Syria struggles to survive a civil war supported by the US and allies. Israel is being threatened by Iran, Islamic fundamentalists are stirring up trouble wherever they can in the region and the US is widely maligned for its covert attempts to influence the outcome of political events to its advantage. The US is losing influence and credibility fast around the world, because the perception is growing that the US is a bully, is a liar and exclusively concerned with its own interests only. As Dr. Roberts says, “When, in human history, has Washington told the truth about anything? When has Washington’s reassurance meant anything? It is a proven fact that the US Government lies every time it opens its mouth.” Dr. Roberts concludes by saying, “By now the entire world must know that Washington is not merely lawless, but also totally out of control, reveling in arrogance and hubris, driven by desires for hegemony over the entire world. Washington is so paranoid and distrustful that it doesn’t even trust its own citizens or the (“allies”) that it has bought and paid for.” If one was to search for the real news out there, the true story of a world in deep crisis will appear and give cause to any serious observer to be concerned about the fragility of the structures underpinning our society today. So, be careful dear readers, this hapless, terminal behemoth might crush you in its dying struggles, as it flails around trying to find stable ground to stand upon, while all that surrounds it is only quicksand. The uncertain allegiances of its few “allies” are secured only by veiled threats and the continuance of payouts and not by genuine, mutual commitments. The US gives no genuine affection, loyalty or commitments to any entity, so it receives none in return. What a sad state to exist in, don’t you think? This beast is terminal, the markets are terminal, and the hills are where to run to. Published by Les Éditions Main Street Inc. P.O. Box 874, Lachute J8H 4G5 1 866 660-6246 • 819 242-2232 email: main.street@xplornet.ca www.themainstreet.org Founder: Jack Burger Co-owners: Steve Brecher, Susan MacDonald Advertising Sales: Steve Brecher Editor: Susan MacDonald Associate Editors: Jim Warbanks, June Angus Art Director/Management Consultant: Anne Secor Sales & Special Projects: Colette Couvrette Contributing writers: Ilania Abileah, June Angus, Joan Beauregard, Peter Cloutier, Steve Brecher, Grace Bubeck, Lys Chisholm, Chris Collyer, Dale Dawson, Sheila Eskenazi, Beth Farrar, Steve Friedman, Christopher Garbrecht, Ac, Michael Gevers, Ron Golfman, Joseph Graham, Grif Hodge, Marion Hodge, Michel Labreche, L.L.B. D.D.N, Rosita Labrie, Efrat Laksman, Jim Lawson, Lori Leonard, Lisa McLellan, Yaneka McFarland, Craig McVeigh, Jessica Million, Marcus Nerenberg, Claudette Pilon-Smith, Michael Dubois, Frans Sayers, Michèle St. Amour, Christina Vincelli, Barry Young and countless other contributors from the Laurentian community at large. 14,000 copies distributed throughout the Laurentians © 2013 Les Editions Main Street Inc. - Reproduction in part or in whole wihtout written permission is prohibited • PUBLISHED THE 2ND FRIDAY OF EVERY MONTH • NEXT EDITION: AUGUST 9 REQUEST FOR ADVERTISING MATERIALS BY TUESDAY, JULY 23 main.street@xplornet.ca 2013 4 July 2013
us en avez assez Want to des have connexions up to lentes 100 times faster ar ligne téléphonique ou par satellite? À partir de 29 $ /mois Internet speed than dial-up? residential and Commercial service starting at $ 29 */ month *plus taxes Idéal pour nouveaux développements immobiliers ice internet haute vitesse sans fil dans les Laurentides maintenant à : Brownsburg-Chatham, Mont-Tremblant, Mont-Tremblant-Nord, St-Faustin-Lac-Carré, Brébeuf, Ivry-sur-le-Lac, gathe, Lantier, Sainte-Lucie, Val-David, Val-Morin, Saint-Adolphe-D’Howard, Sainte-Adèle, Estérel, Sainte-Marguerite, Prévost, nne-Des-Lacs, Saint-Sauveur, Morin-Heights, Lac-des-seize-Isles, Wentworth et Wentworth-Nord, Saint-Calixte, La Conception, u, Labelle, Arundel, La Minerve, Montcalm, Weir, Gore (Lac Barron, Grace Park, Lakeview), Mille-Îles, Lachute, Saint-André d’Argenteuil, n, Brownsburg-Chatham, Val-des-Lacs, Grenville, Rigaud. ntôt disponible à : Entrelacs, La Macaza, Piedmont, St-Remi-d’Amherst, Saint-Colomban, Saint-Donat, Saint-Hippolyte, Val-Durn. Code promo du printemps pour les nouveaux clients - # GAC159 notre site web à www.acces.com et remplissez notre demande d’information 1 877 777-3637, poste 13 info@acces.com G12-131 Promotional code for new GAC customers: #GAC 103 $29 off your installation!**If installed by August 8, 2013 GAC serves: Arundel, Brownsburg-Chatham, Harrington, Hawkesbury (ADsL only), Huberdeau, Lachute, Mille-Isles, Mont-Tremblant, Morin-Heights, Prévost, sainte-Adèle, saint-Adolphe-d’Howard, sainte-Agathe-des-Monts, sainte-Anne-des-Lacs, saint-sauveur, val-David, val-Morin, Weir, Wentworth, Wentworth North and many more regions in the Laurentians. www.acces.com and fill out our request form 1-866-530-7777 extension 232 Groupe-Acces July 2013 Main Street Ad Moving fast. So should you. Stock Number: DF942085 OFFER ENDS July 30th, 2013 THE 2013 C 250 SEDAN EQUIPPED WITH SPORT PACKAGE. TOTAL PRICE1: $41,640** FINANCE APR LEASE APR DOWN PAYMENT LEASE PAYMENT , $ ** $ 399 * DURÉE DE 60 MOIS BAIL DE 48 MOIS 0 9 %* 1,9 %* 0 Franke Ste-Agathe 1751 Rue Principale, Ste-Agathe • Tél. : 819-326-9075 www.franke.mercedes-benz.ca www.facebook.com/Frankeauto July 2013 Open saturdays © 2013 Mercedes-Benz Canada Inc. 2013 C 250 Sedan stok number DF942085, National MSRP $39,425. **Total price of $41,640 and 0$ down payment include freight/PDI of $2,045, RDPRM fee of up to $52.49, air-conditioning levy of $100 and a $15 fee covering EHF tires. 1 Taxes extra. *Lease offers based on the 2013 C 250 Sedan equipped with Sport Packages. available only through Mercedes-Benz Financial Services on approved credit for a limited time. Lease example based on $399 per month for 48 months. Down payment or equivalent trade of $0 plus security deposit of $500 and applicable taxes due at lease inception. MSRP starting at $41,485. Lease APR of 1.9% applies. Total obligation is $22,520. 18,000 km/year allowance $0.20/km for excess kilometers applies). Finance offer based on the 2013 C 250 Sedan. Finance example is based on a 60-month term and a finance APR of 0.9% with a price of $45,755. Monthly payment is $699 (excluding taxes) with $0 down payment or equivalent trade in. Cost of borrowing is $945 for a total obligation of $41,658. Vehicle license, insurance, registration are extra. Offers may change without notice and cannot be combined with any other offers. Offer ends July 30, 2013. 5
Change language