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The Anglo-American Financial Empire is in deep shits. Recent reports have revealed that UK troubled banks are tapping into the Emergency Funding Scheme to the tune of £200 billion.
Ouch!
This means that the troubled banks are in worse shape than previously expected.
Recall that in April, The Bank of England announced that it expected that the troubled banks would most likely require funding in the region of £50 billion.
This must be the Mother of Miscalculation!
The scheme is a carbon copy of the rescue efforts by the Federal Reserve in that these troubled banks are allowed to swap worthless securities for liquid treasury bills to meet funding shortfalls.
The global impact of the US and UK financial crisis will be far reaching. As I have stated time after time, the worst is yet to come and this news is a further confirmation. Growth in emerging markets will turn negative.
Badawi’s recent Fairy Tale Budget is nothing but a short term quick fix, not unlike a drug addict’s temporary high, as it has failed to address the issues of the impending banking collapse and the imminent confrontation between the US-UK-Israel Axis and Russia/Iran.
More updates will follow.
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