Rickards:
The China bubble is bursting - (www.darientimes.com) China
is on the verge of a financial collapse of unprecedented magnitude... The only
investments available to most Chinese other than low-rate bank deposits are
gold, real estate and so-called "wealth management products." These
wealth management products are offered by banks but are not guaranteed by them.
Investor assets are pooled into the products and then invested in commercial
projects with the proceeds shared among the investors. The banks promise high
returns on these products, which resemble the notorious collateralized debt
obligations popular in the U.S. before the Panic of 2008. Eventually some event
such as a project failure or admitted fraud will start a panic in which
investors demand that the banks redeem their wealth management products all at
once. The banks will be unable to do so and will suspend redemptions on the
products... Since China represents about 10% of global GDP, any problems in
China will not stop there but will ripple around the world in dangerous ways.
This could hit the U.S. in 2015, just as the U.S. debt and deficit problems
begin to negatively impact our own economy. A continuation of the depression
that began in 2007 is likely and a new more dangerous stage of the depression
is possible.
Slaughterhouse
accused of selling meat from cows withcancer - (www.sfgate.com) Rancho Feeding Corp.,
the Petaluma slaughterhouse that recently recalled 8.7 million pounds of beef,
is under criminal investigation by the federal government for killing and
selling meat from dairy cows with cancer, according to sources who would speak
only on the condition of anonymity. Rancho was allegedly buying up cows
with eye cancer, chopping off their heads so inspectors couldn't detect the
disease and illegally selling the meat, the sources said. Although it's
against federal law, experts say eating the meat isn't likely to make people
sick. So far, no one has reported becoming ill from eating the meat. The
huge recall and criminal investigation hasn't just affected Rancho. Private
cattle producers, who used the facility for custom slaughtering, have also been
swept up, leaving the shelves with a dearth of local, natural and
high-end beef.
Tea
Party probe has cost IRS $7.9 million - (www.usatoday.com) The
Internal Revenue Service says 255 employees have spent 97,542 hours responding
to congressional investigations into the scrutiny it gave conservative
political groups before the 2012 election — at a cost of at least $7.9 million.
Those numbers came in a letter from IRS Commissioner John Koskinen to two House Democrats. He said the accounting
took a "conservative approach" that did not include some support
staff, the press office, congressional liaisons and other top IRS officials. The
costs include $259,849 for travel. For staff time, the numbers work out to an
average hourly rate of more than $79 an hour.
Putin
puts troops in western Russia on alert in drill - (www.reuters.com) President
Vladimir Putin ordered an urgent drill to test the combat readiness of his
armed forces across western Russia on Wednesday, flexing Moscow's military
muscle amid tension with the West over Ukraine. Russia said the exercises were
not linked to events in Ukraine, where the ouster of a president who turned his
back on the European Union and sought closer ties with Moscow has raised
worries in the West over possibility of military intervention. Putin has
ordered several such surprise drills in different Russian regions since he
returned to the presidency in 2012, saying the military must be kept on its
toes, but the crisis in the neighboring nation gave them added geopolitical
resonance.
REPORT: FBI PROBING POSSIBLE CRIMINAL VIOLATIONS AT MTGOX - (www.businessinsider.com) Bloomberg's Patricia Hurtado reports the FBI is probing possible criminal violations at MtGox, citing two people familiar with the case. She also confirms WSJ's Christopher Matthews' report from last night that NY U.S. Attorney Preet Bhara is investigating. "Bharara’s office has requested documents from businesses that provide Bitcoin services and the FBI is reviewing the matter, said the people, who requested anonymity because the matter isn’t public," she writes. "One of the people said that the matter is in its preliminary stages and isn’t yet a formal investigation."
Turks
Are Glued to a Sensational Drama, This One Political - (www.nytimes.com)
Ukraine Vows to Protect Bank Deposits as Government Vote Delayed - (www.bloomberg.com)
Ukraine Vows to Protect Bank Deposits as Government Vote Delayed - (www.bloomberg.com)
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