PROVE IT WRONG OR PASS IT ON

PROVE IT WRONG OR PASS IT ON BannerFans.com

BE THIS GUY

BE THIS GUY
August Landmesser, Hamburg Shipyard Worker Who Refused To Make Nazi Salute

Saturday, June 28, 2008

Barclays warns of a financial storm

Source:
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/06/27/cnbarclays127.xml

Barclays warns of a financial storm as Federal Reserve's credibility crumbles

Last Updated: 3:02pm BST 27/06/2008US central bank accused of unleashing an inflation shock that will rock financial markets, reports Ambrose Evans-Pritchard Barclays Capital has advised clients to batten down the hatches for a worldwide financial storm, warning that the US Federal Reserve has allowedthe inflation genie out of the bottle and let its credibility fall "belowzero". "We're in a nasty environment," said Tim Bond, the bank's chief equity strategist. "There is an inflation shock underway. This is going to be very negative for financial assets. We are going into tortoise mood and are retreating into our shell. Investors will do well if they can preserve their wealth." Barclays Capital said in its closely-watched Global Outlook that US headline inflation would hit 5.5pc by August and the Fed will have to raise interest rates six times by the end of next year to prevent a wage-spiral. If it hesitates, the bond markets will take matters into their own hands. "This is the first test for central banks in 30 years and they have fluffed it. They have zero credibility, and the Fed is negative if that's possible. It has lost all credibility," said Mr. Bond. Strategists at Barclays accuse Ben Bernanke of a policy blunder* RBS issues global crash alert



The grim verdict on Ben Bernanke's Fed was underscored by the markets yesterday as the dollar fell against the euro following the bank's dovish policy statement on Wednesday. Traders said the Fed seemed to be rowing back from rate rises. The effect was to propel oil to $138 a barrel, confirming its role as a sort of "anti-dollar" and as a market reproach to Washington's easy-money policies. The Fed's stimulus is being transmitted to the 45-odd countries linked to the dollar around world. The result is surging commodity prices. Global inflation has jumped from 3.2pc to 5pc over the last year. Mr. Bond said the emerging world is now on the cusp of a serious crisis."Inflation is out of control in Asia. Vietnam has already blown up. The policy response is to shoot the messenger, like the developed central banks in the late 1960s and 1970s," he said."They will have to slam on the brakes. There is going to be a deep global recession over the next three years as policy-makers try to get inflation back in the box. "Barclays Capital recommends outright "short" positions on Asian bonds,warning that yields could jump 200 to 300 basis points. The currencies of trade-deficit states like India should be sold. The US yield curve is likely to "steepen" with a vengeance, causing a bloodbath for bond holders. David Woo, the bank's currency chief, said the Fed's policy of benign neglect towards the dollar had been stymied by oil, which is now eating deep into the country's standard of living. "The world has changed all of a sudden. The market is going to push the Fed into a tightening stance," he said. The bank said the full damage from the global banking crisis would take another year to unfold. Rob McAdie, Barclays' credit strategist, said: "The core issues have not been addressed. We're still in a very large deleveraging cycle and we're seeing losses continue to mount. We think smaller banks will struggle to raise capital. We're very bearish - in the long-term - on high-yield debt. The default rate will reach 8pc to 9pc next year. "He said investors had taken their eye off the slow-motion disaster engulfing the US bond insurers or "monolines". Together these firms guarantee $170bn of structured credit and $1,000bn of US municipal bonds. The two leaders - MBIA and Ambac - have already been downgraded as the rating agencies belatedly turn stringent. The risk is further downgrades could set off a fresh wave of bank troubles. "The creditworthiness of many US financial institutions will decline in coming months," he said. The bank warned that engineering and auto firms we're likely to face a crunch as steel and oil costs surge. "Their business models will have to be substantially altered if they are going to survive," said Mr. McAdie. A small chorus of City bankers dissent from the view that inflation is the chief danger in the US and other rich OECD countries. The teams at Société Générale, Dresdner Kleinwort, and Banque AIG all warn that deflation may loom as housing markets crumble under record levels of household debt. Bernard Connolly, global strategist at Banque AIG, said inflation targeting by central banks had become a "totemism that threatens to crush the world economy". He said it would be madness to throw millions out of work by deflating part of the economy to offset a rise in imported fuel and food prices. Real wages are being squeezed by oil, come what may. It may be healthier for society to let it happen gently.

1 comment:

David Rothwell said...

Most people, even people who should know better, have their heads buried in the sand when it comes to the looming financial crisis in this country and in the world. What we have seen so far is just the tip of the iceberg. The news that came out this week about the precarious positions of FannyMae and FreddyMac, and the possibility of government imposed conservatorships over these institutions should have made the hair stand up on the backs of people's necks. But the opinion of the average man on the street is that the worst of the housing slump is over. Good old American optimism at its worst. As you know, before it gets better, its going to get ugly -- real ugly. Thanks for putting this article up on your blog, my friend.

ALL TIME - Most Popular Posts

Secrets Hidden In Plain Sight

Theory of EVERYTHING: GOD, Devils, Dimensions, Dragons, Illusion & Reali...

Loading...

A Lamp In The Dark - Enter The Jesuits

USE YOUR HEAD & OPEN YOUR EYES

USE YOUR HEAD & OPEN YOUR EYES
This is the truth...

Julian Assange

Julian Assange
"Courage is Contagious."

Milton William Cooper PREDICTED 9/11

Milton William  Cooper PREDICTED 9/11
CLICK PHOTO FOR MORE: Milton William Cooper. Naval Intelligence Officer, UFO believer and conspiracy intel expert. Shot and killed in the 3rd attempt on his life. He had only one leg from an earlier attempt. His life was conveniently taken less than a month after September 11th, 2001 after he predicted it and Osama Bin-Laden as the scapegoat. Bill Clinton called him "the most dangerous man on radio". His book "Behold a Pale Horse" proves he was on to something that got him murdered. He was a true American patriot and spoke truths of things he could prove, not rumors that he heard. His research is a valuable beginning to understanding that everything you have been taught is a lie, what you thought you knew, you don't know anything about.

It just takes one...

It just takes one...
ONE MAN WITH COURAGE IS A MAJORITY

Quotes:

"Do not fear your enemies, The worst they can do is kill you. Do not fear your friends, At worst, they may betray you. Fear those who do not care, They neither kill nor betray, but betrayal and murder exists because of their silent consent"

-Bruno Jasienski


If you're not confused, you're not paying attention.


-
Tom Peters



Good character is more to be praised than outstanding talent. Most talents are, to some extent, a gift. Good character, by contrast, is not given to us. We have to build it, piece by piece -- by thought, choice, courage, and determination.

-
H. Jackson Brown


This I believe: That the free, exploring mind of the individual human is the most valuable thing in the world. And this I would fight for: the freedom of the mind to take any direction it wishes, undirected. And this I must fight against: any idea, religion, or government which limits or destroys the individual.

-
John Steinbeck

‎"Those who would give up essential liberty to purchase temporary safety, deserve neither liberty or safety."

-Benjamin Franklin



Character is like a tree and reputation like a shadow. The shadow is what we think of it; the tree is the real thing.

-
Abraham Lincoln

"I don't want a nation of thinkers, I want a nation of workers."
- John D. Rockefeller, (1839-1937)


One who asks a question is a fool for five minutes; one who does not ask a question remains a fool forever.

- Chinese Proverb

Thanks for taking the time to read this.

Prove it wrong or pass it on..., DO SOMETHING.


IF VOTING REALLY CHANGED ANYTHING, IT WOULD ALREADY BE ILLEGAL.


“Most charities are public relations for the rich, a scam on the middle class, and a disservice to the poor.”

--NL

Put not your trust in the donkey or the elephant, but in the Lamb.

O-bamanation - WE ARE BUILDING A RELIGION

O-bamanation - WE ARE BUILDING A RELIGION
"Out of MANY, we are ONE." Is this the new "Messiah"? People are comparing Barack Obama to Jesus Christ

George Orwell's warning to us in 1984 coming true.

George Orwell's warning to us in 1984 coming true.
"One Nation, Under a New Obama Salute"

CLICK PICTURE FOR EYE OPENING VIDEO

CLICK PICTURE FOR EYE OPENING VIDEO
WE ARE BUILDING A RELIGION

9/11 Ripple Effect

SHEEP TASTE LIKE CHICKEN

SHEEP TASTE LIKE CHICKEN
Visit Search For Truth's TOP CONSPIRACY SITES

The NEVER ENDING War on Terrorism

The NEVER ENDING War on Terrorism
This means NEVER-ENDING FUNDING and ENDLESS ways to take your rights away from you, dissolve the U.S. Constitution and pillage other nations.

Federal Reserve Bandits

Federal Reserve Bandits

Herbert W. Armstrong

Herbert W. Armstrong
A Voice Crying Out in the Wilderness. Mr. Armstrong - Pioneer for the 20th Century Church of God, he began the modern day true teachings of Christ and spread the true Gospel, the same one Jesus taught- that of a World Tomorrow. He taught peace, love and a better way to live. His early revival of God's message, the true Sabbath, the annual Holy Days and the pagan teachings of Christianity in Christmas, Easter...etc., gave those preaching the Word of Jesus today a guideline for the Bible and the prophecies of troubling times ahead.

Think your vote counts? You're not paying attention!

Sir, YOU ARE A LIAR!

Welcome to a NEW WORLD ORDER.

You Ready For This?

Julian Assange interview - 60 Minutes

Esoteric Agenda (FULL LENGTH)

Comprehensive Look into the Myths Surrounding the Events of 9/11

From Evolutionist to Creationist - Walter Veith

From Evolutionist to Creationist - Walter Veith
This is the testimony of Walter Veith, a South African Professor of Biology. Walter Veith did not grow up as a Christian, but through a number of amazing encounters, he came to a knowledge of the reality of God, and how wonderful He is.

Hungry In America

Hungry In America
Hungry Children in America Bringing attention to the children living in poverty that go hungry in America. Encouraging charity — your support through the many choices available — such as making a donation, volunteerism, or sponsorship of a child in the US. Today, please help a child that is Hungry In America.

Banksy

Banksy

Enjoy the simplicity

Enjoy the simplicity
...OF THE TRUTH

Gas Prices Daily

The past present and future of America...and the world.

"Our rulers can have authority over such natural rights only as we have submitted to them. The rights of conscience we never submitted, we can not submit. I have ever thought religion a concern, purely between our God and our consciences, for which we were accountable to him and not to the priests. For it is in our lives and not from our words that our religion must be read. But this does not satisfy the priesthood. They must have a positive, a declared ascent to all their interested absurdities. My opinion is that there would never have been an infedel, if there had never been a priest."

-
Thomas Jefferson

Fascism in American Political Culture

Fascism in American Political Culture
Notice the two Fasci under each arm of President Lincoln. These Fasci (the universal sign of fascism) are everywhere if you look. They're on the back of a dime, on the walls of congress and here. WHY? I decided to find the real meaning behind it and found it terrifying. I hope you look into it for yourself and pass on what you learn. Etymology The term fascismo is derived from the Italian word fascio, which means "bundle" or group, and from the Latin word fasces. The fasces, which consisted of a bundle of rods that were tied around an axe, was an ancient Roman symbol of the authority of the civic magistrate. They were carried by his lictors and could be used for corporal and capital punishment at his command. The word fascismo also relates to political organizations in Italy known as fasci, groups similar to guilds or syndicates. The symbolism of the fasces suggested strength through unity: a single rod is easily broken, while the bundle is difficult to break. Similar symbols were developed by different fascist movements. For example the Falange symbol is a bunch of arrows joined together by a yoke.