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Showing posts from June 11, 2016

The Money Cult

By Dmitry Orlov

Previously, I have written about the progression from positive interest rates to zero interest rates (since 2008) and finally to negative interest rates. And I asked my readers a simple question: How will negative interest rates blow up the financial system? And apparently none of you knew the answer. Now, I must confess that to start with I didn’t know the answer either, which is why I asked the question, and my first attempts at finding it were somewhat tentative. But now, having thought about it, I do seem to have found the answer, and it is that…

But first let us back up a bit and answer several preliminary questions:

1. Why did zero interest rates become necessary?
2. Why are negative interest rates now necessary? and,
3. Why are negative interest rates a really excellent idea?*

* if you ignore certain unintended consequences (which is what everyone does all the time, so let’s not worry about them just yet).

1. Interest rates went to zero because economic growth went t…

Iraqi Government Demands Saudi Authorities to Clarify Their Financial Donations for ISIS

The Iraqi Foreign Ministry has demanded of the Saudi government to clarify their action regarding the gathering of financial contributions for ISIS terror group within the kingdom.

The ministry spokesman Ahmad Jamal said, we are waiting the Saudi authorities to clarify their interior ministry press statement about the existence of financial contributions within the Kingdom for the benefit of ISIS terror group, adding that any aid for a terror group under the guise of helping "children of Fallujah" represents a clear violation of Security Council resolutions, Alsumaria reported.

Syrian Forces Detain Dozens of ISIS Suicide Bombers in Western Raqqa

Dozens of ISIS suicide bombers were arrested by the Syrian forces along al-Tabaqa airbase road before they could carry out their operations, military sources said.

"The army men and the National Defense Forces (NDF), tipped off by the intelligence agents, surrounded the group of the ISIS terrorists carrying suicide-belts and arrested them," the sources said, adding, "The suicide attackers were mostly between 16-20 age and even one of them was at the age of 13."

"Three of the suicide bombers exploded their explosives but none of the army men was injured in the blasts," the sources said.

Earlier reports said that the Syrian Army troops and NDF, who captured al-Rasafeh energy-rich region earlier today, hit ISIL's positions around the region's oil and power facilities and captured them after hours of heavy clashes.

The Syrian government forces won the battle against the ISIS in al-Rasafeh triangle and captured oil pumping station and power station in this…