The Economy
An interesting perception on Credit Crunch
“ Is this an explanation of what went wrong in the global economy?”
JONATHAN MAY TELLS THE "SECRETS" OF WORLD BANKERS! The Arabs Will Be Completely Robbed Out Of Their Clothes.
"There are thirteen families which effectively control the central banks of the hard currency countries of the world. The hard currency countries are those whose currency is not allowed to fluctuate as much as the other countries' currency fluctuates. These thirteen families have the control of the policy-making and decision-making of the central banks of
those countries. They all practice fractional reserve banking.
Fractional reserve banking has allowed the central banks to permit the prime banks to lend up to twenty-six units of currency for every one unit of currency they have on deposit. The owners andcontrollers of the prime banks are the same people who own and control the central banks.The initial final stage of System 2000 was put into effect in the mid-seventies. System 2000 is the global creditors unilateral totalitarian plan for the control of the world.
A Pentagon official and three other U.S. government officials went to the Prime Minister of Nigeria. They paid him $50,000,000 to more than double the price of body light crude oil.
This is the crude oil of Nigeria which is some of the most valuable crude oil in the world. At the same time that the Prime Minister of Nigeria was being persuaded, other Trilateral Commission members were in the Middle East persuading the Middle East nations and England to consolidate OPEC. The deal cut with the Middle East oil producers was that the oil buyers were prepared
to pay significantly higher prices for oil if the Middle East nations would invest the revenues in the big banks in America.
Sheik Yamani's nephew assured us that Sheik Yamani and other oil
min-isters did not know until late in the seventies or in the eighties that the controlling interest of the prime banks is held by the same people who have the controlling interest in the major oil companies.
They control through a joint stock trust which was set up by the original Rockefellers here in America in 1870. This was three years before the United States government declared joint stock trusts illegal in 1873. It is this entity which is the ultimate controlling factor in America of the prime banks, the Federal Reserve, the major oil companies, and many other multi-nationals. This trust is in joint control of the Rockefeller Foundation and their European interest.
To read further on please visit: http://www.incapabledesetaire.com/edito2/jmay.htm
Our Weekly Update on the Economy
Central bankers in Europe sat on their hands last week, moved to action neither by green shoots on the one hand nor deteriorating labour markets on the other. Indeed, it is an indication of how unusual the economic environment has become that the loss of 350K jobs in the US in May was seen as a move towards recovery.
The UK’s Monetary Policy Committee (MPC) held its course on quantitative easing.Rather than being persuaded by recent signs of stabilisation to abandon the programme prematurely, the MPC made clear it would spend the whole £125bn pot allocated for asset purchases. With interest rates held firmly at 0.5%, this remains the main tool in their armoury to support the economy.
Lending figures suggest that households and firms are concentrating on rebuilding their finances. Lending to the household sector grew £2bn in April, but the yearly rate of growth continued to moderate (to 3.4% from 3.8%). Lending to private companies turned negative, with bank loans falling £5bn in April. Weak lending reflects diminished appetite for borrowing as companies and households focus on repairing their balance sheets (e.g. paying down debt).
Survey evidence suggests business activity in the UK may have taken a tentative step out of contraction territory for the first time in thirteen months in May.The key purchasing managers index (PMI), reached 50.9 driven by a jump in the service sector, pushing the overall index just above the 50 mark that signals stable output. This is more an indication of a stabilisation than a return to form, but it was a welcome improvement nonetheless, after several quarters of hefty declines in activity.
House prices also rose in May, chalking up the largest monthly gain in seven years, according to the Halifax.This brought the average price up by £4,000 to £159K, although prices remain 16% below their May 2008 level. This rise is more likely to be a blip than the start of a trend. One-off up-ticks are not unusual (in January prices rose 2% before falling back), affordability remains stretched on a number of metrics and the labour market continues to soften.
Compared to the 650K average monthly job loss seen over the December to April period, the loss of 345K jobs in May in the US was a positive development.Hopefully this represents the beginnings of a stabilisation in the wider economy. Nevertheless, there is still a long way to go. The unemployment rate leapt to 9.4% suggesting that US consumer spending - the motor of the wider economy for so long - is unlikely to come roaring back any time soon. On the business side there were some encouraging signs, with the new orders component of the ISM manufacturing survey entering expansion territory for the first time since the recession started. But the overall activity index remains consistent with a contracting economy, and service sector confidence remains battered.
General Motors, once the largest company in the world, filed for bankruptcy protection last week.This is the fourth largest bankruptcy filing in history and the largest for an industrial company. With a $30bn government investment, GM will continue to make cars, but restructuring is inevitable. Plants will be closed and jobs lost as excess capacity is taken out, hitting the American Midwest, the home of the Big-3 (GM, Ford and Chrysler), hard. Indeed, each job at GM supports as many as nine jobs in the broader economy.
The European Central Bank (ECB) kept interest rates on hold in May as it released details of its asset purchase programme.ECB President Trichet described the current 1% rate as “appropriate” for the economic environment, but did not rule out further action if conditions warrant it. Details of its plans to buy “covered bonds”, the ECB’s version of “quantitative easing”, were well received, but didn’t answer questions about how purchases would be distributed across member countries and what maturities would be targeted. Nonetheless, the announcement itself last month had a positive impact, reducing the spread between yields on corporate and government bonds. If spreads continue to tighten and issuance increases, the programme will have helped to ease corporate financing conditions and be seen as a success.
Eurozone growth figures continue to argue for additional policy support.The rate of contraction in the euro area was unrevised at -2.5% q/q in Q1. The picture from the underlying detail wasn’t any prettier. Spending fell across the private sector, with businesses clearly under severe pressure. Firms aggressively ran down inventories (which alone wiped one percentage point off growth) while investment was slashed by 10% y/y as companies prepare for a sustained period of lower demand
