Kim Jong Un says he's ready for war in New Year speech

In his annual New Year's speech Friday, North Korean leader Kim Jong Un said he is ready for war if provoked by "invasive" outsiders.

In the address, his fourth since taking power in 2011, Kim spoke of the need to increase the "political and military might" of his country "in every way," according to the official Korean Central News Agency.

"The year 2015 was a year of gigantic struggle recorded with significant events and eye-opening successes and a year of victory and glory that strikingly demonstrated the dignity and might of socialist Korea," Kim said in the 30-minute televised speech.

USA TODAY

North Korea ready for 'war' with 'American imperialists'

"We will continue to work patiently to achieve peace on the Korean Peninsula and regional stability," he added. "But if invasive outsiders and provocateurs touch us even slightly, we will not be forgiving in the least and sternly answer with a merciless, holy war of justice."

Such remarks aren't unprecedented. In an October speech marking the 70th anniversary of the founding of the ruling communist Workers' Party, Kim said he was prepared to wage war against the United States if necessary.

Credit to USA Today

Financial Armageddon Approaches: U.S. Banks Have 247 Trillion Dollars Of Exposure To Derivatives

Did you know that there are 5 “too big to fail” banks in the United States that each have exposure to derivatives contracts that is in excess of 30 trilliondollars?  Overall, the biggest U.S. banks collectively have more than 247 trilliondollars of exposure to derivatives contracts.  That is an amount of money that is more than 13 times the size of the U.S. national debt, and it is a ticking time bomb that could set off financial Armageddon at any moment.  Globally, the notional value of all outstanding derivatives contracts is a staggering 552.9 trillion dollars according to the Bank for International Settlements.  The bankers assure us that these financial instruments are far less risky than they sound, and that they have spread the risk around enough so that there is no way they could bring the entire system down.  But that is the thing about risk – you can try to spread it around as many ways as you can, but you can never eliminate it.  And when this derivatives bubble finally implodes, there won’t be enough money on the entire planet to fix it.

A lot of readers may be tempted to quit reading right now, because “derivatives” is a term that sounds quite complicated.  And yes, the details of these arrangements can be immensely complicated, but the concept is quite simple.  Here is a good definition of “derivatives” that comes from Investopedia…

A derivative is a security with a price that is dependent upon or derived from one or more underlying assets. The derivative itself is a contract between two or more parties based upon the asset or assets. Its value is determined by fluctuations in the underlying asset. The most common underlying assets include stocks, bonds, commodities, currencies, interest ratesand market indexes.

I like to refer to the derivatives marketplace as a form of “legalized gambling”.  Those that are engaged in derivatives trading are simply betting that something either will or will not happen in the future.  Derivatives played a critical role in the financial crisis of 2008, and I am fully convinced that they will take on a starring role in this new financial crisis.

And I am certainly not the only one that is concerned about the potentially destructive nature of these financial instruments.  In a letter that he once wrote to shareholders of Berkshire Hathaway, Warren Buffett referred to derivatives as “financial weapons of mass destruction”…

The derivatives genie is now well out of the bottle, and these instruments will almost certainly multiply in variety and number until some event makes their toxicity clear. Central banks and governments have so far found no effective way to control, or even monitor, the risks posed by these contracts. In my view, derivatives are financial weapons of mass destruction, carrying dangers that, while now latent, are potentially lethal.

Since the last financial crisis, the big banks in this country have become even more reckless.  And that is a huge problem, because our economy is even more dependent on them than we were the last time around.  At this point, the four largest banks in the U.S. are approximately 40 percent larger than they were back in 2008.  The five largest banks account for approximately 42 percent of all loans in this country, and the six largest banks account for approximately 67 percent of all assets in our financial system.

So the problem of “too big to fail” is now bigger than ever.

If those banks go under, we are all in for a world of hurt.

Yesterday, I wrote about how the Federal Reserve has implemented new rules that would limit the ability of the Fed to loan money to these big banks during the next crisis.  So if the survival of these big banks is threatened by a derivatives crisis, the money to bail them out would probably have to come from somewhere else.

In such a scenario, could we see European-style “bail-ins” in this country?

Ellen Brown, one of the most fierce critics of our current financial system and the author of Web of Debt, seems to think so…

Dodd-Frank states in its preamble that it will “protect the American taxpayer by ending bailouts.” But it does this under Title II by imposing the losses of insolvent financial companies on their common and preferred stockholders, debtholders, and other unsecured creditors. That includes depositors, the largest class of unsecured creditor of any bank.

Title II is aimed at “ensuring that payout to claimants is at least as much as the claimants would have received under bankruptcy liquidation.” But here’s the catch: under both the Dodd Frank Act and the 2005 Bankruptcy Act, derivative claims have super-priority over all other claims, secured and unsecured, insured and uninsured.

The over-the-counter (OTC) derivative market (the largest market for derivatives) is made up of banks and other highly sophisticated players such as hedge funds. OTC derivatives are the bets of these financial players against each other. Derivative claims are considered “secured” because collateral is posted by the parties.

For some inexplicable reason, the hard-earned money you deposit in the bank is not considered “security” or “collateral.” It is just a loan to the bank, and you must stand in line along with the other creditors in hopes of getting it back.

As I mentioned yesterday, the FDIC guarantees the safety of deposits in member banks up to a certain amount.  But as Brown has pointed out, the FDIC only has somewhere around 70 billion dollars sitting around to cover bank failures.

If hundreds of billions or even trillions of dollars are ultimately needed to bail out the banking system, where is that money going to come from?

It would be difficult to overstate the threat that derivatives pose to our “too big to fail” banks.  The following numbers come directly from the OCC’s most recent quarterly report (see Table 2), and they reveal a recklessness that is on a level that is difficult to put into words…

Citigroup

Total Assets: $1,808,356,000,000 (more than 1.8 trillion dollars)

Total Exposure To Derivatives: $53,042,993,000,000 (more than 53 trillion dollars)

JPMorgan Chase

Total Assets: $2,417,121,000,000 (about 2.4 trillion dollars)

Total Exposure To Derivatives: $51,352,846,000,000 (more than 51 trillion dollars)

Goldman Sachs

Total Assets: $880,607,000,000 (less than a trillion dollars)

Total Exposure To Derivatives: $51,148,095,000,000 (more than 51 trillion dollars)

Bank Of America

Total Assets: $2,154,342,000,000 (a little bit more than 2.1 trillion dollars)

Total Exposure To Derivatives: $45,243,755,000,000 (more than 45 trillion dollars)

Morgan Stanley

Total Assets: $834,113,000,000 (less than a trillion dollars)

Total Exposure To Derivatives: $31,054,323,000,000 (more than 31 trillion dollars)

Wells Fargo

Total Assets: $1,751,265,000,000 (more than 1.7 trillion dollars)

Total Exposure To Derivatives: $6,074,262,000,000 (more than 6 trillion dollars)

As the “real economy” crumbles, major hedge funds continue to drop like flies, and we head into a new recession, there seems to very little alarm among the general population about what is happening.

The mainstream media is assuring us that everything is under control, and they are running front page headlines such as this one during the holiday season: “Kylie Jenner shows off her red-hot, new tattoo“.

But underneath the surface, trouble is brewing.

A new financial crisis has already begun, and it is going to intensify as we head into 2016.

And as this new crisis unfolds, one word that you are going to want to listen for is “derivatives”, because they are going to play a major role in the “financial Armageddon” that is rapidly approaching.

Credit to Economic Collapse

SATANIC TEMPLE PERFORMS ITS FIRST PUBLIC CEREMONY AT MICHIGAN STATE CAPITOL

December 19, the Satanic Temple of Detroit ceremony on the steps of the state Capitol in Lansing, MI. 

The Michigan State Capitol has been the venue of numerous controversies because organizations and religious groups are free to book the capitol grounds for their cause-oriented events or displays. Last December 12, the supporters of presidential hopeful Ted Cruz held their version of the Christmas nativity. 

And a week after, the Satanic Temple of Detroit made its very first public satanic ceremony after being granted with the permit to do so. 

Jex Blackmore, the director of the Detroit Satanic Temple spearheaded the ceremony and delivered her speech which mainly aims to define who Satanists are, detailing some of their beliefs, including their key agendas. Blackmore started by saying that the Satanist group represents the enlightenment of all humanity. She cites that Satanists promote “moral, spiritual and sexual freedom, personal independence, and insist upon personal choice in all things.” She also reiterated the idea of religious and individual freedom in America with emphasis on the separation of religion and the state. 

Andrew 3X UK @3xandrew

Satan's House- WOW! 'The Satanic Temple performs the nation's first state-sanctioned Satanic Ceremony in history' http://wp.me/p11mpq-1xs 

4:52 AM - 30 Dec 2015

 WordPress.com

The Satanic Temple performs the nation's first state-sanctioned Satanic Ceremony in history

This is the awakening. Do you feel it? The shift in the atmosphere as Satan gathers his flock. Listen to the devils servant. Witches rise from the ashes and take your place under the Black Flag of ...

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Blackmore claimed that the group’s event is not an anti-Christian demonstration “To be clear, we are not anti-Christian, and we are not anti-religion. We are anti-degradation. We are anti-oppression.” But in her speech, the Satanic Temple director criticized Christian groups several times. Blackmore pointed that the earlier anti-same-sex marriage protest made by Christian activists at the same venue is a slander to the U.S. principle of embracing the diversity of its citizens. 

According to Blackmore “The word of god has been evoked time and time again to justify opposition to the civil rights movement, to squash women’s liberation, and stand in the way of same-sex marriage. This is not ‘religious freedom.’ The inclusion of all is not oppression and the voices of the minority are not without value… These so-called ‘godly’ institutions call themselves a victim and call for radicalization – they are a snare upon our hooves. America is not an instrument of any one religious group.” 

The director also detailed some of the advocacies of the Satanic Temple which revolved around juctice, honor, freedom and equality in the American society. Blackmore ended her speech by calling the audience to hail Satan “All hail the eternal rebel within all of us. To liberty, humanity, and justice. To the Satanic emancipator and end of repressive traditions. HAIL SATAN.” 

The Satanic Temple’s ceremony is also marked by its very own version of nativity, the “Snaketivity.” Early this year, the Temple has also unveiled their “Baphomet” deity sculpture at their headquarters in Detroit.

Credit to World Religion news
Read more at World Religion News: "Satanic Temple Performs Its First Public Ceremony at Michigan State Capitol" http://www.worldreligionnews.com/?p=22184

January 1, 2016: The New Bank Bail-In System Goes Into Effect In Europe

If you have a bank account anywhere in Europe, you need to read this article.  On January 1st, 2016, a new bail-in system will go into effect for all European banks.  This new system is based on the Cyprus bank bail-ins that we witnessed a few years ago.  If you will remember, money was grabbed from anyone that had more than 100,000 euros in their bank accounts in order to bail out the banks.  Now the exact same principles that were used in Cyprus are going to apply to all of Europe.  And with the entire global financial system teetering on the brink of chaos, that is not good news for those that have large amounts of money stashed in shaky European banks.

Below, I have shared part of an announcement about this new bail-in system that comes directly from the official website of the European Parliament.  I want you to notice that they explicitly say that “unsecured depositors would be affected last”.  What they really mean is that any time a bank in Europe fails, they are going to come after private bank accounts once the shareholders and bond holders have been wiped out.  So if you have more than 100,000 euros in a European bank right now, you are potentially on the hook when that bank goes under…

The directive establishes a bail-in system which will ensure that taxpayers will be last in the line to the pay the bills of a struggling bank. In a bail-in, creditors, according to a pre-defined hierarchy, forfeit some or all of their holdings to keep the bank alive. The bail-in system will apply from 1 January 2016.

The bail-in tool set out in the directive would require shareholders and bond holders to take the first big hits. Unsecured depositors (over €100,000) would be affected last, in many cases even after the bank-financed resolution fund and the national deposit guarantee fund in the country where it is located have stepped in to help stabilise the bank. Smaller depositors would in any case be explicitly excluded from any bail-in.

And as we have seen in the past, these rules can change overnight in the midst of a major crisis.

So they may be promising that those with under 100,000 euros will be safe right now, but that doesn’t necessarily mean that it will be true.

It is also important to note that there has been a really big hurry to get all of this in place by January 1.  In fact, at the end of October the European Commission actually sued six nations that had not yet passed legislation adopting the new bail-in rules…

The European Commission is taking legal action against member states including the Netherlands and Luxembourg, after they failed to implement rules protecting European taxpayers from funding billions in bank rescues.

Six countries will be referred to the European Court of Justice (ECJ) for their continued failure to transpose the EU’s “bail-in” laws into national legislation, the European Commission said on Thursday.

So why was the European Commission in such a rush?

Is there some particular reason why January 1 is so important?

This is something that I will be watching.

Meanwhile, there have been major changes in the U.S. as well.  The Federal Reserve recently adopted a new rule that limits what it can do to bail out the “too big to fail” banks.  The following comes from CNN…

The Federal Reserve is cutting its lifeline to big banks in financial trouble.

The Fed officially adopted a new rule Monday that limits its ability to lend emergency money to banks.

In theory, the new rule should quash the notion that Wall Street banks are “too big to fail.”

If this new rule had been in effect during the last financial crisis, the Federal Reserve would not have been able to bail out AIG or Bear Stearns.  As a result, the final outcome of the last crisis may have been far different.  Here is more from CNN…

Under the new rule, banks that are going bankrupt — or appear to be going bankrupt — can no longer receive emergency funds from the Fed under any circumstances.

If the rule had been in place during the financial crisis, it would have prevented the Fed from lending to insurance giant AIG (AIG) and Bear Stearns, Fed chair Janet Yellen points out.

So if the Federal Reserve does not bail out these big financial institutions during the next crisis, what is going to happen?

Will we see European-style “bail-ins” when large banks start failing?

And exactly what would such a “bail-in” look like?

Earlier this year, I discussed the concept of a “bail-in”…

Essentially, what happens is that wealth is transferred from the “stakeholders” in the bank to the bank itself in order to keep it solvent.  That means that creditors and shareholders could potentially lose everything if a major bank in Europe fails.  And if their “contributions” are not enough to save the bank, those holding private bank accounts will have to take “haircuts” just like we saw in Cyprus.  In fact, the travesty that we witnessed in Cyprus is being used as a “template” for much of the new legislation that is being enacted all over Europe.

Many Americans assume that when they put money in the bank that they have a right to go back and get “their money” whenever they want.  But if we all went to the bank at the same time, there wouldn’t be nearly enough money for all of us.  The reason for this is that the banks only keep a small fraction of our money on hand to satisfy the demands of those that conduct withdrawals on a day to day basis.  The banks take the rest of the money that we have deposited and use it however they think is best.

If you have money at a bank that goes under, that bank will still be obligated to pay you back, but it may not be able to do so.  This is where the FDIC comes in.  The FDIC supposedly guarantees the safety of deposits in member banks, but at any given time it only has a very, very small amount of money on hand.

If some major crisis comes along that causes banks all over the United States to start falling like dominoes, the FDIC will be in panic mode.  During such a scenario, the FDIC would be forced to ask Congress for a massive amount of money, and since we already run a giant deficit every year the government would have to borrow whatever funds would be required.

Personally, I find it very interesting that we have seen major rule changes in Europe and at the Federal Reserve just as we are entering a new global financial crisis.

Do they know something that the rest of us do not?

Be very careful with your money, because I am convinced that “bank bail-ins” will soon be making front page headlines all over the world.

Credit to Economic Collapse

Missouri Ravaged By Historic Flooding As Disaster After Disaster Continues To Hit America

Why does this keep happening to America?  Since the month of September, the United States has been absolutely pummeled by a devastating series of disasters, and this most recent one may be the worst of all.  Right now, communities all along the Mississippi, Missouri and Arkansas rivers are dealing with “historic” flooding.  In Missouri, it is being said that nobody “that is living has ever seen anything like this“, and it is being projected that rivers could reach levels not seen since “the Great Flood” of 1993.  Portions of Interstate 44 have been totally shut down, and thousands of people have either already been evacuated from their homes or are preparing to evacuate.  It would be difficult to overstate the utter devastation that we are witnessing.  Personally, I have some very good friends in southern Missouri, and I will definitely be keeping them in my prayers.

The governor of Missouri, Jay Nixon, is warning people to be very careful.  Thirteen people have already been killed by the flooding, and Nixon says that the waters are going “places they’ve never been before”…

Thirteen people in Missouri have died in floods caused by severe storms over the weekend, and although the rain has moved on, swollen rivers are still rising and won’t crest for days, Gov. Jay Nixon said.

“It’s very clear that Missouri is in the midst of a very historic and dangerous flooding event,” Nixon told reporters Tuesday. “The amount of rain we’ve received, in some places in excess of a foot, has caused river levels to not only rise rapidly, but to go to places they’ve never been before.”

A state of emergency was declared in Missouri on Monday, and yesterday Governor Nixon activated the National Guard.  But the river is still rising, and the worst is yet to come.

At this point, some communities have already been totally wiped out.  This includes the little town of Rockaway Beach, which is not too far away from Branson.  The following comes from USA Today…

In Missouri, some areas have already been hit hard by the first wave of rising water. Rockaway Beach, located near Branson in southwest Missouri, was swamped by waters from the swollen White River.

The tourist town of 800 “has just been demolished,” Mayor Don Smith told KYTV. “It’s devastating, and we are all so exhausted.”

It is being reported that the Mississippi River is now a mile wide is some places, and there are debris piles that are up to two stories tall.  Authorities are projecting that the flooding along some areas of the river will match or break all-time records that were set back in 1993…

In some parts of the Missouri, rivers are expected to crest as high as they did during devastating flooding in 1993, which is known as the “great flood,” Nixon said.

The National Weather Service predicted that the Mississippi River at Chester, Illinois, would crest at 49.7 feet Friday, matching the 1993 record, the governor’s office said. The Mississippi at Thebes was expected to crest Saturday at a record-breaking 47.5 feet.

The Mississippi River is expected to reach nearly 15 feet above flood stage on Thursday at St. Louis, which would be the second-worst flood on record, behind only the devastating 1993 flood.

What is happening in the center of the country right now is just the continuation of a trend that has been building for months.  Just check out this list of flooding events that we have seen in the U.S. since the end of the summer…

-Moisture from Hurricane Joaquin caused the worst flooding in the history of the state of South Carolina.

-Flash flooding caused “rivers of mud” to cover highways in southern California.

-The remnants of Hurricane Patricia caused tremendous flooding in many parts of Texas.

-One of the strongest El Ninos ever recorded has sent an endless stream of storms barreling into coastal areas of Oregon and Washington.  This has caused horrible flooding in some areas.

Meanwhile, we continue to witness a rise in earthquake activity as well.

Oklahoma, which had already shattered an all-time state record for earthquakes in 2015, was hit by a 4.3 magnitude earthquake yesterday.

And just within the last 24 hours, a 4.4 magnitude earthquake hit near San Bernardino, California, and a 4.8 magnitude earthquake shook northwestern Washington and Vancouver Island.

Also, let’s not forget all of the wildfires that have been happening.  On Christmas Day, a massive 1,200 acre blaze erupted near Ventura, California, and that topped off a year during which wildfires burned more acres in America than ever before.

Of course I could also mention the extremely rare EF-4 tornado that ripped through Garland, Texas just a few days ago and the ongoing multi-year drought that is still plaguing most of the state of California.

On top of everything else, a huge solar storm is going to hit our planet on New Year’s Eve.  Fortunately, authorities do not expect that it will do that much damage.

Nobody can deny that our weather is getting really, really crazy.

So precisely why is this happening?

There is certainly a lot of debate about this.  It is almost as if someone flipped a switch in September and turned on a disaster machine, because since that time there has been an endless parade of major events.

Do you have a theory that can explain what we are witnessing?

Credit to Economic Collapse