The Banking System Is Closing In On Collapse

(snippet) BP Plc will default within five years as it tangles with the Obama administration over cleanup costs and claims for the biggest oil spill in U.S. history. The risk implied by credit-default swaps is up from 7 percent a month ago, according to CMA DataVision. BP swaps climbed 112 basis points today to a record 618. Investors are demanding 800 basis points more in yield to own BP debt due next year rather than Treasuries. The Baltic Dry Index, a measure of commodity-shipping costs that’s tumbled 28 percent during its longest losing streak this year, may decline further, according to technical analysis by Barclays Capital. The gauge fell to 3,020 points yesterday, extending a 13- day fall on speculation weaker Chinese construction may curb raw material demand. That may include iron ore, more of which is hauled at sea than any other dry-bulk commodity. The attached chart shows the index’s 200-day moving average of 3,164. It fell as low as 2,911 points in April, 3.6 percent less than now. Fitch lowered BP’s credit rating 6 notches from AA- to BBB-, one notch above junk. Pensioners and other UK investors are about to get crushed, as if the black nobility run by the Queen and the Rothschild’s cared. It is obvious BP is destined for failure. Wait until the public finds out the oil fiasco was a false flag operation to pass Cap & trade and carbon taxes among other things. BP is junk and everyone knows it in spite of the attempted payoffs to Fitch. It won’t be long before the rating is junk and institutions are forced to sell the bonds for virtually nothing. It is even money BP will bite the dust. The bad news on the oil blowout gets worse every day as Obama tries to hide what is really going on so they can get carbon taxes. The Illuminists blew it. They didn’t know they were drilling into an oil volcano. There will be no way to plug the hole. The deluge will flow for years. Between the real estate fiasco and now the oil mega disaster the banking system is closing in on collapse. Unemployment is definitely headed higher as millions of additional jobs are lost. Now the US economy is beset with the worst environment disaster in history that will cost hundreds of thousands of jobs. The banking system is beset with trillions of dollars in toxic assets to accompany financial entities with two sets of books. When have you ever heard of banks being given a trillion dollars to stay in business rather than go bankrupt and the taxpayer is allowed to pay for it. The main culprit in this fiasco, the Fed, is about to be rewarded with new monopoly power to financially subject the American populace. What kind of a system is that? In the meantime the public is thrown a bone. There is no end to the toxic assets and the monetization. Is it any wonder gold and silver are climbing higher? theinternationalforecaster.com