Roubini: Many Davos Speakers Think It’s Like 1914 … Right Before WW1 Broke Out Washington’s Blog
Roubini: Many Davos Speakers Think It’s Like 1914 … Right Before WW1 Broke Out Washington’s Blog.
Nouriel Roubini, Davos Speakers, Kyle Bass, Larry Edelson, Charles Nenner, James Dines, Jim Rogers, Marc Faber, Jim Rickards and Martin Armstrong Warn of Wider War
Well-known economist Nouriel Roubini tweeted from the gathering of the rich and powerful at Davos:
Many speakers compare 2014 to 1914 when WWI broke out & no one expected it. A black swan in the form of a war between China & Japan?
Both Abe and an influential Chinese analyst don’t rule out a military confrontation between China and Japan. Memories of 1914?
Many other economists have forecast war.
Kyle Bass writes:
Trillions of dollars of debts will be restructured and millions of financially prudent savers will lose large percentages of their real purchasing power at exactly the wrong time in their lives. Again, the world will not end, but the social fabric of the profligate nations will be stretched and in some cases torn. Sadly, looking back through economic history, all too often war is the manifestation of simple economic entropy played to its logical conclusion. We believe that war is an inevitable consequence of the current global economic situation.
Larry Edelson wrote an email to subscribers entitled “What the “Cycles of War” are saying for 2013″, which states:
Since the 1980s, I’ve been studying the so-called “cycles of war” — the natural rhythms that predispose societies to descend into chaos, into hatred, into civil and even international war.
I’m certainly not the first person to examine these very distinctive patterns in history. There have been many before me, notably, Raymond Wheeler, who published the most authoritative chronicle of war ever, covering a period of 2,600 years of data.
However, there are very few people who are willing to even discuss the issue right now. And based on what I’m seeing, the implications could be absolutely huge in 2013.
Former Goldman Sachs technical analyst Charles Nenner – who has made some big accurate calls, and counts major hedge funds, banks, brokerage houses, and high net worth individuals as clients – saysthere will be “a major war starting at the end of 2012 to 2013”, which will drive the Dow to 5,000.
Veteran investor adviser James Dines forecast a war is epochal as World Wars I and II, starting in the Middle East.
Billionaire investor Jim Rogers notes:
A continuation of bailouts in Europe could ultimately spark another world war, says international investor Jim Rogers.
“Add debt, the situation gets worse, and eventually it just collapses. Then everybody is looking for scapegoats. Politicians blame foreigners, and we’re in World War II or World War whatever.”
Marc Faber says that the American government will start new wars in response to the economic crisis:
- “The next thing the government will do to distract the attention of the people on bad economic conditions is they’ll start a war somewhere.”
We’re in the middle of a global currency war – i.e. a situation where nations all compete to devalue their currencies the most in order to boost exports. And Brazilian president-elect Rousseff said in 2010:
The last time there was a series of competitive devaluations … it ended in world war two.
Jim Rickards agrees:
Currency wars lead to trade wars, which often lead to hot wars. In 2009, Rickards participated in the Pentagon’s first-ever “financial” war games. While expressing confidence in America’s ability to defeat any other nation-state in battle, Rickards says the U.S. could get dragged into “asymmetric warfare,” if currency wars lead to rising inflation and global economic uncertainty.
As does Jim Rogers:
Trade wars always lead to wars.
Martin Armstrong wrote in August:
Our greatest problem is the bureaucracy wants a war. This will distract everyone from the NSA and justify what they have been doing. They need a distraction for the economic decline that is coming.
Armstrong argued last month that war plans against Syria are really about debt and spending:
The Syrian mess seems to have people lining up on Capital Hill when sources there say the phone calls coming in are overwhelmingly against any action. The politicians are ignoring the people entirely. This suggests there is indeed a secret agenda to achieve a goal outside the discussion box. That is most like the debt problem and a war is necessary to relief the pressure to curtail spending.
And given that many influential economists wrongly believe that war is good for the economy … many are overtly or quietly pushing for war.
In addition, historians say that the risk of world war is rising because the U.S. feels threatened by a rising China … and the U.S. government considers economic rivalry to be a basis for war
Moreover, former Federal Reserve chairman Alan Greenspan said that the Iraq war was really about oil, and former Treasury Secretary Paul O’Neill says that Bush planned the Iraq war before 9/11. And see this and this. If that war was for petroleum, other oil-rich countries might be invaded as well.
And the American policy of using the military to contain China’s growing economic influence – and of considering economic rivalry to be a basis for war – are creating a tinderbox.
Finally, multi-billionaire investor Hugo Salinas Price says:
What happened to [Libya’s] Mr. Gaddafi, many speculate the real reason he was ousted was that he was planning an all-African currency for conducting trade. The same thing happened to him that happened to Saddam because the US doesn’t want any solid competing currency out there vs the dollar. You know Gaddafi was talking about a golddinar.
Indeed, senior CNBC editor John Carney noted:
Is this the first time a revolutionary group has created a central bank while it is still in the midst of fighting the entrenched political power? It certainly seems to indicate how extraordinarily powerful central bankers have become in our era.
Robert Wenzel of Economic Policy Journal thinks the central banking initiative reveals that foreign powers may have a strong influence over the rebels.
This suggests we have a bit more than a ragtag bunch of rebels running around and that there are some pretty sophisticated influences. “I have never before heard of a central bank being created in just a matter of weeks out of a popular uprising,” Wenzel writes.
Indeed, some say that recent wars have really been about bringing all countries into the fold of Western central banking.
» Harvard Professor Warns of “Devastating” China-Japan War Alex Jones’ Infowars: There’s a war on for your mind!
» Harvard Professor Warns of “Devastating” China-Japan War Alex Jones’ Infowars: There’s a war on for your mind!.
Russian study says U.S. could easily defeat Beijing in nuclear conflict
Paul Joseph Watson
January 23, 2014
Harvard Professor Ezra Vogel warned of the devastating consequences of a potential war between China and Japan during a conference in Beijing.
Vogel, a Henry Ford II Professor of the Social Sciences Emeritus at Harvard University, is an expert sinologist having written extensively on relations between the two countries for decades.
During his speech, Vogel highlighted Japan’s historical revisionism, characterized by the refusal in Japanese school textbooks to accept responsibility for the second world war, as well as the territorial dispute over the Senkaku Islands, as the two key factors driving hostilities.
“Any potential war between the two nations would be devastating to both, Vogel said,” according to the Want China Times, “adding that it would take at least 10 years for Beijing and Tokyo to resume normalized relations if a third Sino-Japanese war were to take place.”
Vogel also urged Prime Minister Shinzo Abe to stop visiting the Yasukuni Shrine in Tokyo that honors 14 war criminals who were executed as a result of post-war Allied tribunals. During his speech at Davos yesterday, Abe warned that the global community must restrain military expansion in Asia. Although he didn’t name them directly, Abe’s comments were obviously aimed at Beijing.
Vogel’s warning arrives concurrently with analysis by Moscow-based Expert magazine which suggests that the United States would easily defeat China in a potential nuclear war because Beijing is reliant on decades-old Soviet technology. Back in November, Chinese state-run media released a map showing the locations of major U.S. cities and how they would be impacted by a nuclear strike launched from the PLA’s strategic submarine force.
Earlier this week, state media reported that China’s new hypersonic missile vehicle is primarily designed to target U.S. aircraft carriers.
A deluge of aggressive rhetoric has emerged out of official Communist Party organs in recent months, including discussion about China’s ability to attack US military bases in the Western Pacific, as well as a lengthy editorial which appeared in Chinese state media last month explaining how the Chinese military’s current reformation process was part of a move by President Xi Jinping to prepare the People’s Liberation Army for war.
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Russia’s Growing Regional Debts Threaten Stability – Forbes
Russia’s Growing Regional Debts Threaten Stability – Forbes.
Editor’s Note: The following is the first installment of a three-part series on growing debt for Russia’s regional governments.
Since the 2009 financial crisis, the Kremlin has allowed Russia’s regions to take the brunt of the country’s economic decline in order to keep the federal government seemingly healthy, with a nominally small budget deficit and large currency reserves. But now most of Russia’s regional governments’ debt is so high, it is becoming dangerous for the federal government and big banks and could soon become unmanageable.
Russia is so large that the Kremlin lacks the resources to run each region of the country directly. Currently Russia is split into 83 regions of all shapes and sizes, which fall into categories of oblasts, republics, krais, federal cities and autonomous okrugs. Historically, the Kremlin has given regional leaders (mayors, governors, heads or republic presidents) the power to run their own regions and ensure loyalty to the Kremlin and stability for the country.
However, the Kremlin is constantly concerned with its control over the regions. The federal government’s ability to maintain the loyalty of each region has been tested often throughout history. For instance, dozens of regions attempted to break away after the fall of the Soviet Union, occasionally leading to wars such as those in Chechnya.
The central government’s control over the regions was demolished during the devastating financial crisis in 1998. Many of the regional heads defied the federal government in order to look out for their own regions’ survival. It was the second-worst regional breakdown in Russia following the collapse of the Soviet Union, and it was related directly to the chaos caused by that collapse. This is why the currently growing economic strains in the regions will be of great concern for the Kremlin.
The Regions’ Mounting Debts
Most of Russia’s regional governments have always had some level of debt, but resource-based export revenues have kept it mostly manageable since the 1998 crisis. However, since the 2008-2009 financial crisis, most of the regions’ debt has risen by more than 100 percent — from $35 billion in 2010 to an estimated $78 billion in 2014, and Standard & Poor’s has estimated that this will rise to $103 billion in 2015. Russia’s overall government debt — the federal and regional governments combined — is around $300 billion, or 14 percent of gross domestic product. This is small for a country as large as Russia, but the problem is that so much of the debt is concentrated in the regions, which do not have as many debt reduction tools as the federal government does.
Of the 83 regional subjects in Russia, only 20 will be able to keep a budget surplus or a moderate level of debt by 2015, according to Standard & Poor’s calculations. This leaves the other 63 regions at risk of needing a federal bailout or defaulting on their debt.
Currently, the Russian regions are financing their debt via bank loans, bonds and budget credits (federal loans, for example). Each region has to get federal approval to issue bonds, because regional bonds create more market competition for the federal and business bonds. Most of the banking loans to the regions carry high interest rates and are short term (mostly between two and five years). The federal loans come with much lower rates and longer repayment schedules (mostly between five and 20 years), so naturally federal credits and loans are more attractive for the local governments, though unprofitable for the federal government. The issuance of federal credits or loans to the regions in 2013 was limited; initially, Moscow said it would issue $4.8 billion in new credits to the regions in 2013, but only issued $2.4 billion due to its own budgetary restrictions. This is one contributing factor to the dramatic local-government debt increases.
The next contributing factor to the rise in regional debt is the overall economic stagnation that has plagued Russia since the 2009 financial crisis and subsequent stimulus aimed at pulling Russia out of the crisis. Despite high energy prices all year, Russia’s gross domestic product growth slowed dramatically in 2013 to 1.5 percent growth after an initial 3-4 percent growth target by the Kremlin at the start of that year. This is low compared to the 7-8 percent growth seen yearly in Russia in the mid-2000s. Most analysts believe the only way Russia’s growth remained positive was through its large energy revenues, which make up half of the federal government’s budget and 20-25 percent of the country’s gross domestic product.
There are a handful of reasons for Russia’s economic stagnation. First, investment in Russia was lower than expected in 2013. Fixed investment was down 1.8 percent year-on-year in the first 10 months of 2013, compared with a 9.1 percent year-on-year growth in the same period in 2012. Private sector outflows of capital were high in 2013, with a net outflow of $48 billion leaving Russia in the first nine months of 2013, compared with $46 billion for the same period in 2012. Moreover, the investment sentiment in Russia is poor at the moment, as the Central Bank of Russia has begun closing some 800 smaller banks in a consolidation. Many of those banks were regionally based, and their closure is making investment in the regions less attractive.
Lower investment, coupled with less corporate borrowing and a decline in demand in many sectors, such as metals, led to lower industrial production. In the first 10 months of 2013, industrial production was flat compared with 2.8 percent growth in the same period in 2012. Industrial production is region-specific in Russia; industry provides nearly the entire economy in some regions. Thirty-one Russian regions, including Komi and Barents, had negative industrial production indexes for 2013. This could get worse in 2014, as many of the metals giants are planning to continue shutting down plants due to a lack of demand and low prices. For example, the world’s largest aluminum producer, Rusal, is shutting down five aluminum plants in the Volgograd, Karelia, Leningrad and Urals regions and laying off tens of thousands of workers.
Another factor contributing to the regions’ rising debts is increasingly burdensome obligations to the federal government. Of the income generated in a particular region, only 37 percent of the income stays in that region and the rest goes to the federal budget. The federal government does return some of the funds to the region in the form of subsidies and intergovernmental transfers, but not more than 20 percent. The amount of income that the Kremlin has taken from the regions has increased 12 percent in the past three years (via increases in taxes and decreases in subsidizations), leaving less and less for the regions to work with.
There has also been a large outcry from the regional governments in response to a series of presidential edicts that Vladimir Putin declared when he was re-elected to his third term in late 2011. Putin ordered the regional governments to do a series of tasks, such as replace all dilapidated housing by 2014, and to raise regional and municipal salaries by 7-10 percent in 2014 and another 10 percent in 2015. The regions are calling these “unfunded mandates,” as the federal government is not helping the regions pay for these projects. Already, the Kremlin has had to postpone the housing replacement edict to 2016 due to lack of funding in the regions, but the salary edict remains in place and is estimated to cost the regions $56.6 billion over the next two years.
- Part 1: Russia’s Growing Regional Debts Threaten Stability
- Part 2: Russia’s 1998 Financial Crisis in the Regions: A Case Study
- Part 3: Russia Weighs its Options for Managing Regional Debts
Does Your Gang Affiliation Prevent You From Thinking Clearly? | Zero Hedge
Does Your Gang Affiliation Prevent You From Thinking Clearly? | Zero Hedge.
Whether we will admit it or not, a lot of us engage in gang member-like thinking that destroys our ability to divergently think, critically think and even consider the truth when the truth challenges the group-think of the “gang”.
Ishmael Cisneros, a member of the notorious global crime syndicate, the Mara Salvatrucha, better known as MS-13, says that once you join a gang, “your mind closes off to the rest of the world and you’re capable of doing anything for the gang…don’t get caught up in the world of gangs, especially for those that think there’s something good in it. It’s all lies.”
Yet many of us that deny we ever engage in the vapid and counter-productive gang mentality that Cisneros describes above unintentionally allow ourselves to be bound by this gang mentality by TPTB that deliberately shuttle people into adopting gang mentality through divide and conquer tactics based upon religious, political, and racial affiliations.
If we are truly honest with ourselves, we will all admit to having engaged in “gang-think” at one point in our lives, and perhaps of still engaging in these counter-productive thought patterns today. It’s time to deconstruct this type of mentality so that we can awaken to the truth and always choose what is best for the greater good of humanity over what is best for our gang only as we move forward. Separating ourselves from gang think will be essential for not only survival but also for a positive mental health state in coming years as Central Banks keep destroying the purchasing power of fiat currencies and people’s struggles all over the world consequently intensify.
Your Front Row Seat To Argentina’s (Latest) Currency Collapse | Zero Hedge
Your Front Row Seat To Argentina’s (Latest) Currency Collapse | Zero Hedge.
UPDATE: The Argentine Trade Balance missed surplus expectations by the most in 3 years (and 2nd most on record).
As those who follow Zero Hedge on twitter know, we have recently shown a keen interest in the collapse of the Argentine currency reserves – most recently at $29.4 billion – which have been declining at a steady pace of $100 million per day over the past week, as the central bank desperately struggles to keep its currency stable. Actually, make that struggled. Here is what we said just yesterday:
The decline continues: ARGENTINA’S RESERVES FELL $80M TODAY TO $29.4B: CENTRAL BANK
— zerohedge (@zerohedge) January 22, 2014
As of today it is not just the collapse in the Latin American country’s reserves, but its entire currency, when this morning we woke to learn that the Argentina Peso (with the accurate identifier ARS), had its biggest one day collapse since the 2002 financial crisis, after the central bank stopped intervening in currency markets. The reason: precisely to offset the countdown we had started several days back, namely “an effort to preserve foreign exchange reserves that have fallen by almost a third over the last year” as FT reported.
As the chart below shows, the official exchange rate cratered by over 17% when the USDARS soared from 6.8 to somewhere north of 8.
But as most readers know, just like in Venezuela, where the official exchange rate is anywhere between 6.40 and 11, and the unofficial is 78.85, so in Argentina the real transactions occur on the black market, where they track the so-called Dolar Blue, which as of this writing just hit an all time high of 12.90 and rising fast.
What happens next? Nothing good. “The risk of capital flight is rising by the minute. This will be very hard to control,” wrote Dirk Willer, strategist at Citigroup, adding that liquidity had “largely disappeared” with a risk of Venezuela-style capital controls. Ah Venezuela – that socialist paradise with a soaring stock market… even if food or toilet paper are about to become a thing of the past.
Some other perspectives via the FT:
Siobhan Morden of Jeffries said: “This is not an administration that respects or understands market pressure. They have been in the early stages of currency crisis since December, and yet their main strategy has been to pay off arrears and try to attract foreign direct investment.”
Luis Secco, Buenos Aires economist, said “It is hard to figure out what is the logic behind the authourities decision to let the peso so abruptly, without any other accompanying macroeconomic policy. It’s possible that the authorities would rather see a strong rise in the dollar, than lose, again, a large quantity of reserves.”
“It is a potentially dangerous situation…not least because it could give the impression that the authorities don’t have a very clear idea of how to manage the situation.”
Ricardo Delgado, Buenos Aires economist, said on Wednesday: “The government faces a dilemma. It wants to stop reserves from falling. But that means less imports and thus lower growth, as the economy is very dependent on imports. So the question is: do you want more growth, or higher foreign reserves.“
However, with the “currency run” having once again begun, absent a wholesale bailout and/or backstop by “solvent” central banks of Argentina, a country which has hardly been on good speaking terms with the western central banks, there is little that the nation can do.
So for all those morbidly curious individuals who are curious what the slow-motion train wrecked death of yet another currency will look like, below is a link to the DolarBlue website, aka the front row seats where the true level of the Argentina currency can be seen in real time. If and when this number takes off parabolically, that’s when the panic really begins – first in Argentina, then elsewhere.
Of course, it’s not just Argentina – most of the world’s emerging market FX is getting hammered year-to-date…
Arandis: The uranium capital of the world – Features – Al Jazeera English
Arandis: The uranium capital of the world – Features – Al Jazeera English.
Windhoek, Namibia – Somewhere in the middle of the vast Namib desert is a settlement by the name of Arandis. It has been here since 1975, ever since the Anglo-Australian mining firm Rio Tinto came to set up its Rössing uranium mine.
It needed a place to house its black workforce.
Almost forty years later, the glamour of the olden days has passed, when uranium prices were high and competition low. Arandis is still the home of the workers, but has lost the financial support of the company. It looks like it is doomed to decay. The town lies like an island in the middle of endless rocks, sand and dust. The streets are dull and lifeless and the houses only distinguishable by the colours in which they’ve been painted.
There’s a saying here: “If you leave Arandis, you will die.” One of those who repeat the phrase is Hoseas Gaomab, who worked in the mine’s laboratory for 23 years. He knows many men who have died. But he doesn’t know why.
Gaomab, aged 73, is a fragile old man. He first came to Arandis in 1975, a year before the Rössing mine started operations. He was there when it became the largest open pit in the world. When it almost single handedly turned Namibia into one of the leading uranium producing countries – by supplying Europe, the US and Japan.
The question is, at what expense this has happened. Many men who worked here in the mine’s early days claim to suffer from severe illnesses including cancers, hypertension and anaemia. Gaomab is sick, too. He suffers from a disease that has made his legs and hands numb for the much of the past 20 years.
|I had been feeling weak, but the mine doctors always said it’s okay… The doctors only ever tested us for flu. if I had known, I would have asked them to test me for radiation.Hoseas Gaomab, former mine laboratory worker|
“I had been feeling weak, but the mine doctors always said it’s okay,” he told Al Jazeera. He can barely walk, or get up from the armchair in which he sits.
Discovering the risks, too late
For a long time it simply didn’t occur to Gaomab that his illness could be work-related. Then, in 1993, a medical student named Reinhard Zaire arrived, interviewing miners and taking blood samples. “He asked us how long we worked for Rössing and when we got sick. Then he called us together to tell us we were irradiated.”
This was the first time he heard about the existence of radiation in the uranium mine. “The doctors only ever tested us for flu,” he said. “If I had known, I would have asked them to test me for radiation.”
Aside from Zaire’s claims, there is no proof that Gaomab has been fatally irradiated. And chances are slim that he will ever find out. There are no records available from the company of what happens to workers once they leave Rössing. After their retirement, the men return to their homes in rural Namibia, where they rarely have access to proper healthcare facilities.
“To date, there have been no confirmed occupational illness related deaths,” said Rio Tinto spokesperson Penda Kiiyala.
However, there is great scepticism among people here in Arandis towards the company and their medical staff.
|SPECIAL SERIES: MINING IN SOUTHERN AFRICA|
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– Arandis: The uranium capital of the world
“The mine is a big company, they can tell everyone what to do. They tell you what’s wrong with you and you have to believe them,” said Gaomab. Although scientists have previously linked diseases such as those reported in Arandis to the exposure of radiation, nobody – other than Reinhard Zaire – has investigated them in the context of the Rössing uranium mine.
Zaire studied the effects of long-term exposure to low levels of radiation believed to be found in the Rössing mine. He concluded that there was an increased risk for uranium miners to develop malignant diseases such as cancer. Shortly after the report was published, Zaire was dismissed by the Namibian Ministry of Health and Social Services, his research permission was revoked, and he was accused of practising as a medical doctor illegally.
Rio Tinto – facing a lawsuit in the UK at the time, in which it was accused of damaging an employee’s health – slammed Zaire’s report.
Doug Brugge from the Tufts University in the United States has conducted research on the impacts of underground uranium mining on the Navajo tribe in North America. Brugge is sceptical to give the issue “the kind of framing” Zaire suggested. “For me, to just talk about low-dose ionizing radiation exposure is inadequate. Other things like the metal toxicity of uranium also plays a role and how the workers were exposed to radiation,” he said.
|We had to smoothen out the yellowcake with our hands before we sampled it. There were no gloves, those things only came later.Hoseas Gaomab, former mine laboratory worker|
Gaomab and a former lab colleague, Petrus Hoaeb, described the health and safety regulations at Rössing as inadequate in the early days. “For the sampling we used to suck up the yellowcake through a pipette,” said Hoaeb. “Whenever there was crushing, there was dust everywhere.”
Gaomab agreed: “We had to smoothen out the yellowcake with our hands before we sampled it. There were no gloves, those things only came later.”
Yellowcake is a solid form of concentrated uranium which is produced after the ore has been crushed and processed. It is usually stored in drums for transport and not hazardous if handled with appropriate precautions.
“During the lifetime of the mine, safety measures have been in place based on international best practice and applications at the time,” Rio Tinto’s Kiiyala told Al Jazeera. Monthly urine samples are also taken from each worker. This serves “as a check to ensure no internal contamination risk exists”.
Contrary to what the workers say, Rio Tinto emphasises that all workers have access to the results of tests made on their samples.
Rössing Uranium, the Namibian subsidiary of Rio Tinto, denied that workers were exposed to any kind of radiation in its open pit mine. “The biggest danger for the employees is the silica dust inside the pit,” said Alwyn Lubbe, an external relations officer for Rössing who spoke to Al Jazeera inside the mine’s premises. “The uranium levels are extremely low. The radiation is very low, it’s natural. Even when they process it in the final product recovery.”
Lubbe maintained there was also no toxicity leaking from the waste dumps next to the mine, which loom in the background. “There are no hazards here,” he says. From where he stands on the viewing platform, he looks at the huge hole stretching out below him and says: “Only depleted uranium is dangerous for the human body,” referring to the processed uranium that is used in nuclear power plants and in many weapons ammunitions.
According to Tufts’ Doug Brugge, the biggest threat is not the uranium itself, but its decay products, like radon, a gas that is set free when uranium is mined. “The daughter products of radon are the ones that settle in the lungs,” Brugge said. Solids such as uranium and radium can enter the human system only when inhaled or ingested. “If someone touches the ore, it can get into the body through hand and mouth contact. Once they are in the system the radiation is very strong.
“That there is radiation here and that it can cause health effects is not in question. The question is whether the way the people are exposed to it are leading to those health problems,” he said. “It sounds like what really needs to be done is research on health conditions and exposure.”
Despite the slim chances of success, Gaomab’s former colleague Petrus Hoaeb has decided to take the company to court. Hoaeb met Al Jazeera in his home, sat next to his son. Hoaeb Junior is spearheading the case for his sick father. The lack of knowledge is the biggest hurdle to overcome, he said. “If a researcher comes to you and says: ‘This is what we found,’ then you know how to fight. But if you have limited knowledge, it is very difficult.”
Currently the two parties are negotiating outside of court for a possible compensation package for Hoaeb, who was booked off work sick for twelve years before he was eventually fired in 2012. He failed to provide proof that his sickness was due to radiation exposure.
Hoaeb Jr has a different plan, however. He is about to travel to Namibia’s capital, Windhoek, to discuss further proceedings and to decide what Rössing has to offer.
“We are fighting for a large number of people,” he concluded. “Those who have died and those who are sick.”
Follow Victoria Schneider on Twitter at the Dirty Profits Exposed project: @DirtyProfitsExp
This report was produced with the support of the Facing Finance campaign.
Is The China Bank Run Beginning? Farmers Co-Op Unable To Pay Depositors | Zero Hedge
Is The China Bank Run Beginning? Farmers Co-Op Unable To Pay Depositors | Zero Hedge.
While most of the attention in the Chinese shadow banking system is focused on the Credit Equals Gold #1 Trust’s default, as we first brought to investors’ attention here, and the PBOC has thrown nearly CNY 400 billion at the market in the last few days, there appears to be a bigger problem brewing. As China’s CNR reports, depositors in some of Yancheng City’s largest farmers’ co-operative mutual fund societies (“banks”) have been unable to withdraw “hundreds of millions” in deposits in the last few weeks. “Everyone wants to borrow and no one wants to save,” warned one ‘salesperson’, “and loan repayments are difficult to recover.” There is “no money” and the doors are locked.
The locked doors of one farmers’ co-op…
Shadow Banking has grown remarkably…
…in recent years, opened dozens of Yancheng local “farmers mutual funds Society”, these cooperatives approved the establishment by the competent local agriculture, and received by the local Civil Affairs Bureau issued a “certificate of registration of private non-enterprise units.”
As savers are promised big returns…
Deposit-taking and lending by cooperatives operated operation, and to promise savers, depositors after maturity deposits not only can get the interest, you can also get bonuses.
But recently things have turned around…
However, beginning in early 2013, Yancheng City Pavilion Lakes region continue to have a number of co-op money people to empty, many savers deposits can not be cashed, thus many people’s lives into a corner.
Dong-farmers in Salt Lake Pavilion mutual funds club, a duty officer’s office, told reporters, because many people take money, put out loans difficult to recover, leading to funding strand breaks.
Rough Google Translation:
Salesperson: …the money has been slowly falling and in the end is difficult to ask for money, right? And now there is no money coming in, now people don’t want to save money, and take all the money.
Reporter: But it’s their money, they should be able to…
Salesperson: I know I should [given them money]; however, when the turn started, their is no money, we get cut off and lenders and borrowers took off…
One depositor blames the government (for false promises):
The bank has a deposit-taking his staff, he would say that he is a government action that has the government’s official seal, to give you some interest, as well as the appropriate dividends, because we believe that the government, so we fully believe him , we put the money lost inside, who thought in November, Xi Chu who told us that something was wrong.
But don’t worry – this should all be settled by 2016…
Yu Long Zhang: we put all of his certificates of deposit are received out. You are only responsible for the loan out of the money back to the people against. The people’s money has been invested in other projects go, we have to be tracked to ensure no loss of capital assets, can dispose of his assets disposed of, can recover quickly come back.
Reporter: There is a specific timetable yet?
Yu Long Zhuang: 2014 cashing out the entire program.
Reporter: When did all of these things can be properly resolved?
Yu Long Zhuang: the latest is 2015, 2015, all settled.
So, for the Chinese, their bank deposits have suddenly become highly risky 2 year bonds…