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Guest Post: Is The UK About To Engage In A Stealth Default?

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Submitted by Mike Krieger of Libertblitzkrieg

Is the UK About to Engage in a Stealth Default?

If there was ever an article that should spark every British citizen to immediately shift their savings into physical gold this is it.  Basically, proposals are on the table to change the way inflation is calculated for bonds that payout based on the rate of change in prices.  Unsurprisingly, they are purposely attempting to use an alternative measure of inflation that allows substitution (so when people can no longer buy a steak and must spend the same amount of money on spam this shows up as no inflation)!  If this goes through, it is blatant theft.  This is why owning TIPS in the U.S. is a total fool’s game.  They will mark inflation to whatever level they want at the end of the day.  To whatever is most convenient at the moment.  You know, just like the banks mark their balance sheets.  But don’t take my word for it…

Key quotes from the FT article:
 

Holders of some UK index-linked gilts could see more than 40 per cent wiped off the value of their bonds, according to M&G Investments, as a result of technical changes to the way the retail price index, which underpins these “linkers”, is calculated.

 

The mooted changes are designed to eliminate “unjustified” causes of the persistent gap between inflation as measured by the RPI and the normally lower consumer price index, narrowing the “wedge” between the two measures by altering the way the RPI is calculated. Some industry figures believe the gap between the two measures could be eliminated entirely.

 

“To eradicate the wedge altogether would be tantamount to an event of default,” said Ben Lord, portfolio manager at M&G.

Full article here.

 


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Mon, 06/04/2012 - 12:41 | Link to Comment bigdumbnugly
bigdumbnugly's picture

stealth default?

quiet desperation is the english way.

Mon, 06/04/2012 - 12:45 | Link to Comment nope-1004
nope-1004's picture

"Blatant theft" is all they have left Mike.  This has been going on now for some time.  I'm not surprised - disappointed, but not surprised.  TPTB have no remorse at all about grabbing all they can.

 

Mon, 06/04/2012 - 12:52 | Link to Comment Ahmeexnal
Ahmeexnal's picture

Happy Diamond Jubilee, Lizzy Dei Gratia Regina!!
Let the sheeple eat melamine fish and chips!!

http://www.direct.gov.uk/en/Nl1/Newsroom/Features/DG_WP200687

And don't remember BoE is also about to embark in more QE:

http://www.telegraph.co.uk/finance/economics/9308789/Bank-of-England-to-...

Mon, 06/04/2012 - 12:53 | Link to Comment sunaJ
sunaJ's picture

We live in both a different and similar time to our grandparents of the 1930s.  Back then, people had to wait in lines to get food and to withdraw their money from banks.  Today, it is all done digitally.  You do not have to wait in line for your SNAP card or to withdraw your money from the bank.  We do not see long lines to do so because it is all done with conjured ones and zeroes over computers and telephones.  It remains, however, a clear indicator of the failure of economic fundamentals.  50 million people on SNAP in this country and tens of billion$ fleeing the most vulnerable economies each month are klaxons that would traditionally alarm even the most complacent. 

For me, all it means is that when the cardiac arrest comes, it will be fast and systemic.  Under the veneer of business-as-usual are the lurking fundamentals that someday (I pray soon) can no longer be manipulated to appear as if everything is okay (I could give a shit about how many DOW or S&P points they can conjure).  Until then, there can only be fraud and oppression.

Mon, 06/04/2012 - 12:54 | Link to Comment Ahmeexnal
Ahmeexnal's picture

Ambrose Evans-Pritchard throws in the towel.
The euro is unsaveable:

http://www.telegraph.co.uk/finance/economics/8691310/Ambrose-Evans-Pritc...

Mon, 06/04/2012 - 13:00 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Buy Silver - Crash JPM, the ultimate British Banking House!

The Silver Movement:

http://lhmarketwatch.blogspot.com/

Mon, 06/04/2012 - 13:07 | Link to Comment The Big Ching-aso
The Big Ching-aso's picture

 

 

Well if they just keep a stiff upper lip the climax should be satisfying.

Mon, 06/04/2012 - 13:18 | Link to Comment SilverIsKing
SilverIsKing's picture

Soon they will start mixing tungsten in the gold bars and tell you it's still a gold bar.

 

Mon, 06/04/2012 - 13:36 | Link to Comment Pinto Currency
Pinto Currency's picture

 

This internet thing is a bloody nuisance old chap.

Everyone is watching us.

It simply won't do.

 

On a serious note, see that the Real Inflation is yet higher than the RPI:

http://www.marketoracle.co.uk/Article26314.html

Mon, 06/04/2012 - 13:54 | Link to Comment PivotalTrades
PivotalTrades's picture

When you accept the concept that 20 % of one persons income is confiscated and 40% of another persons income being extorted by the government as each paying his fair share the you will accept anything as being fair. 

Mon, 06/04/2012 - 13:21 | Link to Comment JPM Hater001
JPM Hater001's picture

I'm in. Ill head the party committee.

Mon, 06/04/2012 - 14:29 | Link to Comment francis_sawyer
francis_sawyer's picture

"Yeah baby"

~Austin Powers

Mon, 06/04/2012 - 13:28 | Link to Comment Treeplanter
Treeplanter's picture

JPM may become the biggest buyer in a couple more dips.  They know they can't prevail much longer.  The only thing that can save their sorry ass is to be on the moon shot.   

Mon, 06/04/2012 - 13:01 | Link to Comment Oh regional Indian
Oh regional Indian's picture

And this again brings up the QuEstion. Why was the UK one of the biggest buyer of American Paper last year?

The city of Londonium continues to fleece it's own populace, to make their prized plantation survive another day/week/year. 

And Ahexuhmeenal....

The Stone, Of Scone, Is not a treat With Tea.

It's a Pillow, For Jacob. This shit you cannot make-up.

The UK is a Joke, going up in Smoke.

Regina get's the Jubilee, While her Sub-jects go Broke.

ori

 

 

Mon, 06/04/2012 - 13:03 | Link to Comment Ahmeexnal
Ahmeexnal's picture

Breakdown in Ogolfer's Choom cabinet: Eric placeHolder about to be fed to the wolves?

http://www.telegraph.co.uk/news/worldnews/barackobama/9309372/War-in-the...

 

Eric Holder, who heads Mr Obama's justice department, is said to have become "incensed" after being accused by David Axelrod of complaining publicly about political interference in his office.

"That's bull****," Mr Holder said in a confrontation after a cabinet meeting, according to author Daniel Klaidman. He writes: "The two men stood chest to chest. It was like a school yard fight".

Mon, 06/04/2012 - 12:48 | Link to Comment ITrustMyGut
ITrustMyGut's picture

one word.. PURPOSEFUL

expand -> contract -> buy it all up kids at pennies on the dollarzzz..

 

no idiot could makes this many "mistakes" in a row... statisically impossible!

listening to this helps remind me who runz the joint..

www.weebls-stuff.com/toons/aaaaaaaaaaaaahaha/

Mon, 06/04/2012 - 12:56 | Link to Comment grove300
grove300's picture

So... the Queen took her toys out for a ride this past weekend before she needs to give all her stuff back.

 

Mon, 06/04/2012 - 12:48 | Link to Comment timbo_em
timbo_em's picture

+100 for the Pink Floyd quote

Mon, 06/04/2012 - 12:54 | Link to Comment WhyDoesItHurtWh...
WhyDoesItHurtWhen iPee's picture

how can you have your pudding if you don't eat your Ponzi

Mon, 06/04/2012 - 13:07 | Link to Comment sdmjake
sdmjake's picture

Who are you and who am I

To say we know the reason why?

Some are born, Some men die

Beneath one infinite sky

There'll be war, There'll be peace

But everything one day will cease

All the iron turned to rust

All the proud men turned to dust

And so all things, time will mend

 

"on a long enough timeline....."

Mon, 06/04/2012 - 12:55 | Link to Comment redpill
redpill's picture

The time is gone, the song is over, Thought I'd something more to say.

Mon, 06/04/2012 - 13:11 | Link to Comment XitSam
XitSam's picture

For the want of the price of tea and a slice 

The old man died

Mon, 06/04/2012 - 12:57 | Link to Comment Rusticus
Rusticus's picture

"quiet desperation is the english way."

... funny, that's not the prevalent trait  observed when they lose a football game.

 

 

Mon, 06/04/2012 - 13:23 | Link to Comment JPM Hater001
JPM Hater001's picture

This is all really groovy...I saw Waters last night in St. Paul.  Really cool...and man is he getting old.

Mon, 06/04/2012 - 12:59 | Link to Comment Joshua_D
Joshua_D's picture

Ahh ... hitting "Play" as we speak.

Mon, 06/04/2012 - 13:15 | Link to Comment Jumbotron
Jumbotron's picture

the time is gone, the song is over....thought you'd something more to say.   :)

Mon, 06/04/2012 - 13:23 | Link to Comment London54321
London54321's picture

Desperate people soon lose all civility.

 

Jan

www.SmartJapaneseStocks.com

Mon, 06/04/2012 - 13:26 | Link to Comment Uchtdorf
Uchtdorf's picture

So you run and you run to catch up with the sun but it's sinking...

Remember those haughty days of yesteryear when it was said that the sun never set on the British Empire? Frothy nonsense designed to get parents to ship their sons off to malaria-stricken places to fight for the elites.

Mon, 06/04/2012 - 12:41 | Link to Comment lasvegaspersona
lasvegaspersona's picture

Don't the Brits see that we in the US have been dealing with this same data abuse for years?

Mon, 06/04/2012 - 12:48 | Link to Comment Zero Govt
Zero Govt's picture

to be fair the British used data abuse before the Americans ...and Rome and China before us

the politburo lying is an ancient game

Mon, 06/04/2012 - 12:43 | Link to Comment achmachat
achmachat's picture

"engage!"  (Patrick Steward)

http://www.youtube.com/watch?v=3jd1Ih8EUmw

Mon, 06/04/2012 - 12:45 | Link to Comment midgetrannyporn
midgetrannyporn's picture

usa tips don't behave like bonds, they move with stocks. the cpi is a lie. :fools rush in:

Mon, 06/04/2012 - 12:44 | Link to Comment monopoly
monopoly's picture

They are just taking a picture from our playbook. Nothing new. And love the way all I could find this AM, outside of ZH was bears on gold. Bloomberg advised nothing but a massive short covering. Gold going lower.

Marketwatch advising gold not "worth the trouble". Another blog has GDX right at resistence and time to load up on shorts. And gold down 10 bucks so those who just trade the only currency worth anything selling. That all tells me to buy more, right here. 

Mon, 06/04/2012 - 12:45 | Link to Comment CPL
CPL's picture

Lucky me, finished getting my physical lined up along with all the other prep.

 

Let the world burn as required.  Beer is in the fridge, fresh pot of coffee on the counter.

Mon, 06/04/2012 - 12:45 | Link to Comment Dermasolarapate...
Dermasolarapaterraphatrima's picture

Snickers bar packs have gone from 80 cents for a 10 pack...to $1.40 for a "Six Pack of Fun Size bars."

So how does the CPI count that?

Mon, 06/04/2012 - 12:52 | Link to Comment ParkAveFlasher
ParkAveFlasher's picture

So how does the CPI count that?

You are paying a $.15 premium / bar for "Fun", ergo, apples and oranges. 

Mon, 06/04/2012 - 13:38 | Link to Comment Winston Churchill
Winston Churchill's picture

As a price reduction according to the hedonistic (not kidding )rule.

Mon, 06/04/2012 - 15:45 | Link to Comment Meatier Shower
Meatier Shower's picture

It's not hedonistic, it's hedonics.

*snicker*

 

Mon, 06/04/2012 - 17:38 | Link to Comment HungrySeagull
HungrySeagull's picture

4 decades ago they stopped making Hershey bars because there was not sufficient amount of choclate that is able to last more than one or two bites for a nickel, then a dime then a quarter.

Gas was all Leaded, divided by octqane and .29 a gallon back then too.

Mon, 06/04/2012 - 12:47 | Link to Comment Dr. Engali
Dr. Engali's picture

I agree TIPS are bullshit but people still buy them thinking they are protected from inflation. Uncle Sam wouldn't lie ...would he?

Mon, 06/04/2012 - 13:27 | Link to Comment MachoMan
MachoMan's picture

It only makes sense that if one is going to dilute the dollar to repay bonds that one would also jigger with CPI to ensure that repayment of TIPS are likewise diluted.  The error here is thinking that there is escape after reaching the event horizon...  our monetary and fiscal policies prohibit the morts from winning.  Jump in the water and get eaten by the sharks, fail to jump in the water and wither away from inflation.  Simple proposition, difficult at best to navigate...

Mon, 06/04/2012 - 12:49 | Link to Comment q99x2
q99x2's picture

I think the new propaganda law covers financial fraud so we likely won't get a recession this year. Plus EU governments are getting their own predator drones in case anyone says there is a recession anywhere.

Mon, 06/04/2012 - 12:49 | Link to Comment Roland99
Roland99's picture

Been doing that for years here in the U.S.  About bloody time they caught up, eh?

 

Mon, 06/04/2012 - 12:49 | Link to Comment Transitory Disi...
Transitory Disinflation's picture

I am still waiting for the UK house price crash... it has been a long time coming...

 

Anyone have any ideas?  Do I really have to wait for UK interest rates to go up a couple of percent?

Mon, 06/04/2012 - 12:51 | Link to Comment Ahmeexnal
Ahmeexnal's picture

UK real estate can keep inflating longer than you can stay solvent.
Remember the UK is THE place to buy a second home for the power elite. Has been for centuries.

Mon, 06/04/2012 - 12:54 | Link to Comment Enkidu78
Enkidu78's picture

Apart from over here and our old Empire the Queen owns the lot... God bless the Queen

http://www.whoownstheworld.com/about-the-book/largest-landowner/

 

 

Mon, 06/04/2012 - 12:56 | Link to Comment Transitory Disi...
Transitory Disinflation's picture

Yes true but mostly in london.  This distorts the average price across the country and so you get 99% of the UK having prices at 10 times average salary, low wages in most parts of UK, unstable job, low interest rates for mortgagees..

 

surely it cannot go on...

Mon, 06/04/2012 - 13:08 | Link to Comment Ahmeexnal
Ahmeexnal's picture

Chelsea winning UEFA champions league 2012 will give the most violent of the sheeple a year to get drunk and celebrate. And don't forget they also get the upcoming uglympics.  Real UK housewives about to go on air too.

Mon, 06/04/2012 - 13:26 | Link to Comment Acet
Acet's picture

London has been subsidized by the rest of the country at the tune of £700 bln, which is the amount that was officially spent on the bailout of financial institutions (which, surprise, surprise, have the vast majority of their employees in London) which has kept unemployment from increasing too fast in the capital and thus sustained house prices at the low and mid-levels. At the high-levels prices were sustained by flight-to-safety purchases from abroad (from the likes of Chinese billionaires and Saudi Arabian princes).

So things won't rally blow up in London.

The rest of the country, however, has been in pain. Maybe things will blow up there?

Not holding my breath though - with their class system and the miriad social ways in which people both at the lower and higher levels "keep people in their rightfull place" (I had a long talk with some English friends of mine the other day and it was an eye openner) most brits seem to be far too prone to bend over to their "betters" ...

Methinks they will believe the lies and bend over and take it for far longer than, say, the French.

Mon, 06/04/2012 - 12:51 | Link to Comment ElvisDog
ElvisDog's picture

Yep, any time a financial adviser recommends TIPS, you know he/she is an idiot. It's like if you were a landlord and told your tenant "I'll let you decide how much rent to pay me".

Mon, 06/04/2012 - 13:30 | Link to Comment MachoMan
MachoMan's picture

Advising bonds or even cash would be subject to the same scrutiny...  all perfectly capable of complete devaluation by powers outside your control and who have a penchant for prolifigacy.

Mon, 06/04/2012 - 12:51 | Link to Comment Enkidu78
Enkidu78's picture

This should be titled "UK about to have even more stealth inflation"

Things are getting really expensive over here!

Mon, 06/04/2012 - 12:56 | Link to Comment Colonial Intent
Colonial Intent's picture

Ken Clarke, UK "justice minister" at bilderberg meeting.

http://www.guardian.co.uk/world/us-news-blog/2012/jun/04/bilderberg-2012...

"We had a load of the hotel staff gathered round a computer in the back office, watching Aled Jones – and they're all rooting for him."

Mon, 06/04/2012 - 12:56 | Link to Comment bankonzhongguo
bankonzhongguo's picture

It just goes to show that reality is what your see on main street and buy with your cash, not some monthly statement on your passive investments.

Baby boomers' wealth is being vacuumed up and sent to developing markets, all the while the industrial west (the cockroaches at least) will see the standard of living deleverage sidewise to subsistence levels.

While I used to use the Big Mac Index and the PPP, now its counting the emerging number of home made trailers built for bicycles in my fair city to gauge economic prosperity.

I still have never met an economist than ran a business or made a timely payroll.

 

 

Mon, 06/04/2012 - 13:05 | Link to Comment tarsubil
tarsubil's picture

Impossible! No economy that fake can have a cloaking device.

Mon, 06/04/2012 - 13:11 | Link to Comment tony bonn
tony bonn's picture

criminals rule!!!

Mon, 06/04/2012 - 13:15 | Link to Comment orangegeek
orangegeek's picture

Stealth default?

 

Is that similar to kinda pregnant?

Mon, 06/04/2012 - 13:23 | Link to Comment tarsubil
tarsubil's picture

No. It is similar to silent but deadly.

Mon, 06/04/2012 - 13:16 | Link to Comment ArrestBobRubin
ArrestBobRubin's picture

TAKE OUT THE CITY

Simple, elegant, effective. Benefits begin to accrue immediately and are compounded DAILY

Sound like a plan?

Mon, 06/04/2012 - 13:19 | Link to Comment JR
JR's picture

Another nail in the coffin; but with all the nails driven in so far, being able to lift the lid and escape burial while you’re still alive will require a chain saw and not just a scream. Europeans have faced increasing criminal actions against their livelihoods and their rising antagonism toward their political leaders shows they are beginning to understand they are the victims of a system they did not create—an intricate network of financial traps set not only to steal their money but to steal their countries.

It’s significant that the financial traps are getting larger and with the lies on inflation, which have always been central planning’s greatest weapon, it won’t be long before Europeans will view individual economic pronouncements from the Powers To Be, not as separate developments, but as one all-inclusive criminal campaign.

“Remember – when stakes are high – there are no higher stakes than in power politics – your enemy plays for keeps… He will give you no credit… he will twist everything that you say or do when it suits him, and use it to his own advantage. He intends to win … he intends you to lose. Your hopes against his plans.” – Helen MacInnes, The Snare of the Hunter

When will be the last straw? Soon. The death rattles throughout the architecture of the European Union are harbingers of massive victim backlash.

Mon, 06/04/2012 - 16:43 | Link to Comment RockyRacoon
RockyRacoon's picture

One wonders how the hedonic rules will apply when we are all reduced to eating sawdust and tree bark?

The mind reels.

Mon, 06/04/2012 - 13:20 | Link to Comment ZIRP Hedge
ZIRP Hedge's picture

Not really a suprise the BOE has been forecasting inflation incorrectly for the last 3 years, they realize they can only do this for so long before the everyone starts to ask questions. So why change the forecast when you can change the data. Pretty convienent really. The nanny state is backed into a corner and will use any dirty trick in the book to survive. 

Mon, 06/04/2012 - 13:22 | Link to Comment ebworthen
ebworthen's picture

Isn't non-stop printing of currency using Ctrl-P and trillions in unpayable debt another word for default?

Mon, 06/04/2012 - 13:26 | Link to Comment ArrestBobRubin
ArrestBobRubin's picture

No, it's another word for "our financial system"

Mon, 06/04/2012 - 13:22 | Link to Comment derek_vineyard
derek_vineyard's picture

The secondary market could rebel against these changes, but it won't.

Mon, 06/04/2012 - 13:24 | Link to Comment Zaydac
Zaydac's picture

Funny, when my wife and I bought our maximum entitlement in the most recent tranche of inflation-linked National Savings certificates I thought there would be a catch, and having read Shadowstats a few times I thought this might be it, but it's a very odd feeling being proved right. Usually I am dead wrong.

OK, that's it, sell the National Savings and buy physical sovereigns.

Doing my best to crash UK M1 at the same time in my puny way.

Mon, 06/04/2012 - 13:25 | Link to Comment distopiandreamboy
distopiandreamboy's picture

God save the Queen?

Mon, 06/04/2012 - 13:27 | Link to Comment BandGap
BandGap's picture

Linkers and floaters, it's all the same.

Mon, 06/04/2012 - 13:29 | Link to Comment The Gooch
The Gooch's picture

"Bad teeth, worse weather... you know - LONDON"

Mon, 06/04/2012 - 13:47 | Link to Comment billsbest
billsbest's picture

Weaker Gold & Silver Prices Spurs Stampede to Physical Coins

Will JP Morgan be down for the count by end of year?

Mon, 06/04/2012 - 13:47 | Link to Comment Sandmann
Sandmann's picture

They have pulled these stunts before by excluding housing costs. The British diet has switched from meat and eggs to plasma TVs and iPods in recent years and the indigestion has been ameliorated by the falling prices of electronic gadgets as food prices increased rapidly.

unlike the RPI, the CPI takes the geometric mean of prices to aggregate items at the lowest levels, instead of the arithmetic mean

Mon, 06/04/2012 - 13:50 | Link to Comment Lord Peter Pipsqueak
Lord Peter Pipsqueak's picture

Yet another out of touch UK based non news article from Zero Hedge,the UK has been "quietley defaulting" since the end of the First World War,yet noone recognises nor comments on it.The general UK populace has had a tacit agreement with the two main political parties(Labour and Conservative) since the end of the second world war that is to ensure house price appreciation as the price of re-election for any party at the next election.Any party that does not deliver is consigned to the wilderness for four years,this combined with a pliant central bank(Bank of England) that has always favoured the short trem fix of inflation via currency debasement has always ensured difficult decisions regarding the economy have always been avoided because the short term fix of cheap devalued money has always been preferred to the hard decision of sorting out the long term economic malaise of UK plc.Add into the mix the current imbalance of the UK economy which is hopelessly tilted towards the housing market and consumption,the exploding demands of the welfare state fuelled by an increasing number of poorly educated unemployable school leavers,those unemployed as a result of the collapse of the manufacturing sector from the 1980's, and a massive underclass of immigrants totally reliant on the welfare state the future looks far from rosy.In fact,the articles in "serious" newspapers regarding the UK as a "safe haven" are nothing more than a sick joke to anyone who lives in the hellhole once known as "England" and such people find the rarified talk of financial journalist who talk of the UK as some form of sanctuary from the economic malestrom currently affecting the world totally asinine.

Millions of British(US and Canadian and Australian) soldiers fought and died in two world wars for what?The UK AS WELL ALL EUROZONE COUNTRIES is now being taken over by immigrants brought in by deliberate government policy of uncontrolled immigration.The major cities of the UK and the other states of the European Union have been, or are in the process of being taken over by immigrants, so that the indigenous population will become the minority,as part of a bankster controlled European Superstate whereby the indigenous population that would naturally object to a European central government are ethnically cleansed via the higher birth rate of the immigrant population leading to the ultimate dilution of the anti EU vote. 

Consequently, individual national idenities and cultures are eliminated and hence the nationalistic objections to a single European government and central bank are wiped out since the electorate of the resulting countries are a mixture of nationalities with no allegiance to any particular country or its cultiure.

Keep up the good work Zero Hedge regarding the Fed and the Wall St caball,but as regards Europe and the UK,why not consult those nearer the ground?

The trial of Anders Brevik should help to educate you all.He may have been a monster and a murderer but his observations are worth considering.

Mon, 06/04/2012 - 14:02 | Link to Comment Fuh Querada
Fuh Querada's picture

confirm all your observations. I left after Barber's Mega- property bubble in the 70 s never to return. Wasn't it a ladies toilet that was sold in London recently as residential property for several hundred thou?

Mon, 06/04/2012 - 16:40 | Link to Comment JR
JR's picture

 George Soros put it in banker language over the weekend at the Festival of Economics in Italy:

“In the boom phase the EU was what the psychoanalyst David Tuckett calls a ‘fantastic object -- unreal but immensely attractive. The EU was the embodiment of an open society – an association of nations founded on the principles of democracy, human rights and rule of law in which no nation or nationality would have a dominant position.”

The international bankers who have worked for the eventual establishment of world government realized that it would be a step by step process, based on fiat currency established in major nations and on regional political entities which bring nations together under a central government, namely a European Union, a North American Union, etc. (in the most populated state in America, California with more than 37 million residents, whites now comprise only 31 percent of the school population; Hispanics 50 percent).

The failure of the EU, of course, will be a major setback for the banker-controlled world government. They had it within their grasp but they now are running up against the people.

Again, this from Soros at Trento:

“The German public does not see any deflation at home: on the contrary, wages are rising and there are vacancies for skilled jobs which are eagerly snapped up by immigrants from other European countries. 

According to the Pew Forum: “The number of Muslims in Europe has grown from 29.6 million in 1990 to 44.1 million in 2010. Europe’s Muslim population is projected to exceed 58 million by 2030.”

There has been a 43 percent increase in the Hispanic population the USA between April 1, 2000, and April 1, 2010.  The projected Hispanic population of the United States on July 1, 2050 is 132.8 million.

A recent survey suggested more than 30% of Germans believed the country was "overrun by foreigners".

At a recent “Integration Summit Conference” in Berlin, Merkel vowed to help immigrants become more at home.”

Mon, 06/04/2012 - 14:13 | Link to Comment Herdee
Herdee's picture

Just don't put your gold or other valuables in a safety deposit box,history shows that governments will confiscate what they want at will if people are foolish enough to think that "politicians would never do that".Best place to hide it is in the garage or basement in amonst a pile of junk.(just don't throw it out).It'll be safe from corrupt politicians unless it comes to the point of henchmen coming to your door with guns.

Mon, 06/04/2012 - 14:22 | Link to Comment Problem Is
Problem Is's picture

"so when people can no longer buy a steak and must spend the same amount of money on spam this shows up as no inflation)! "

OOOhhhhh....

You mean the B(L)S-CPI steak for hamburger substitution...

Mon, 06/04/2012 - 15:09 | Link to Comment tony wilson
tony wilson's picture

http://www.youtube.com/watch?v=dmwqEg-06Ww

 

1997 tony blairs incoming theme tune and video was things can only get better.

 

the bands name was d ream. the dream was just that. the ream was an elites anal in joke we will ream these fuckers clean

just do it at the end was are tony telling his banker friends to rape,plunder sell all the gold as cheap as chips.

distract the medicated controlled scum with wars and football and soaps.

they will get so fat on junk food and telly plus chem spraying they won't even realize they have been sodomized.

but billions being spent on queen and olympic distractions and the scum lap it up..it's da bestist fing ever like.

and waiting for commander cameron to get back from the 5 hour rapid visit to billdeberghs gaff in chantilly with instructions for the next war to reset past theft.

mi6 i am sure have already picked the patsies for the next iran or syrian blame false flag fest.

what i want to know is why has the prime minister of the uk employed israeli security teams for the olympics.

probably the same guys that where keeping fuckishimashitsa safe in japan

Mon, 06/04/2012 - 15:02 | Link to Comment vh070
vh070's picture

The Old World learns something from the New World.  Anyway, the Greeks and Spaniards are buying flats in London, but there's nowhere safe nowadays.  You can run but...

Mon, 06/04/2012 - 17:19 | Link to Comment onebir
onebir's picture

Not to mention the impact on RPI-linked benefits & pensions. Big savings for the public purse in the QE+devaluation world they've gotten themselves stuck in.

Mon, 06/04/2012 - 20:21 | Link to Comment SmittyinLA
SmittyinLA's picture

Every six months or so the content of "pink slime" in hamburger is increased "just a lil bit more" along with your potential for mad cow, at the frontof the cow  the content of "ground cow parts" in cattle feed is also increased-also increasing mad cow potential, at the other end of the cow (the rear) the state is imposing an array of taxes on cow emissions, as well as allowing an increasing amount of contaminants into our water supply.

I bet  the state has kept the ground beef quality constant regardless of pink slime debasement and our water quality constant in spite of dramatic increases in contaminations and pollutants, not only that they'll be reducing your food "ration" even more by not accounting for massive new taxes on meat.

Meat will cost lots more (like 50% to start), and it won't be reflected in inflation nubers and it will be of significantly lower quality.

4 ounces of 30%  pink slime and 70% round beef & fat will be in the state's eyes treated exactly the same as a 1 pound Prime Filet Mignon.

 

 

Mon, 06/04/2012 - 20:24 | Link to Comment tradewithdave
tradewithdave's picture

When you can't change the length, change the ruler. 

This comment brought to you by Procrustes Bed & Breakfast... where size matters and blood splatters. 

www.tradewithdave.com

Mon, 06/04/2012 - 21:46 | Link to Comment Red Sole Shoes
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Tue, 06/05/2012 - 04:30 | Link to Comment EmileLargo
EmileLargo's picture

And this is shocking? How? I found it amusing three years ago as "pundits" recommended buying "index-linked gilts" as a way of hedging against inflation. Joke.

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