RBS issues global stock and credit crash alert

The Royal Bank of Scotland has advised clients to brace for a full-fledged crash in global stock and credit markets over the next three months as inflation paralyses the major central banks.

"A very nasty period is soon to be upon us - be prepared," said Bob Janjuah, the bank's credit strategist.

A report by the bank's research team warns that the S&P 500 index of Wall Street equities is likely to fall by more than 300 points to around 1050 by September as "all the chickens come home to roost" from the excesses of the global boom, with contagion spreading across Europe and emerging markets.

Such a slide on world bourses would amount to one of the worst bear markets over the last century.

RBS said the iTraxx index of high-grade corporate bonds could soar to 130/150 while the "Crossover" index of lower grade corporate bonds could reach 650/700 in a renewed bout of panic on the debt markets.

"I do not think I can be much blunter. If you have to be in credit, focus on quality, short durations, non-cyclical defensive names.

"Cash is the key safe haven. This is about not losing your money, and not losing your job," said Mr Janjuah, who became a City star after his grim warnings last year about the credit crisis proved all too accurate.

RBS expects Wall Street to rally a little further into early July before short-lived momentum from America's fiscal boost begins to fizzle out, and the delayed effects of the oil spike inflict their damage.

"Globalisation was always going to risk putting G7 bankers into a dangerous corner at some point. We have got to that point," he said.

US Federal Reserve and the European Central Bank both face a Hobson's choice as workers start to lose their jobs in earnest and lenders cut off credit.

The authorities cannot respond with easy money because oil and food costs continue to push headline inflation to levels that are unsettling the markets. "The ugly spoiler is that we may need to see much lower global growth in order to get lower inflation," he said.

"The Fed is in panic mode. The massive credibility chasms down which the Fed and maybe even the ECB will plummet when they fail to hike rates in the face of higher inflation will combine to give us a big sell-off in risky assets," he said.

Kit Jukes, RBS's head of debt markets, said Europe would not be immune. "Economic weakness is spreading and the latest data on consumer demand and confidence are dire. The ECB is hell-bent on raising rates.

"The political fall-out could be substantial as finance ministers from the weaker economies rail at the ECB. Wider spreads between the German Bunds and peripheral markets seem assured," he said.

Ultimately, the bank expects the oil price spike to subside as the more powerful force of debt deflation takes hold next year.

Source: Telegraph.co.uk

Morgan Stanley warns of 'catastrophic event' as ECB fights Federal Reserve

Heathrow plane crash 'not mechanical failure'

The Air Accidents Investigation Branch has failed to declare why a British Airways Boeing 777 was forced to crash land at Heathrow Airport last month.

While the AAIB showed just how close the 136 passengers and 16 crew came to disaster, it admitted that the crash was not due to “mechanical failure.”

This was expected. As others have noted elsewhere there were a number of anomalies involved in the crash that still haven’t been fully explained.

For a start, immediately after the crash all passengers were taken to a terminal building at Heathrow and held for nearly two hours “debriefing”.

Stranger still was the crash itself. The Boeing lost “all power” on its approach to landing and only avoided complete disaster due to the superb flying skills of the aircrew.

Although the AAIB ruled out mechanical failure or a take-in of ice or a birdstrike, as the cause of the crash, it still didn’t say what actually caused it.

That maybe because investigators were instructed not to fully reveal what they found.

As others have noted, a mere two weeks before the Heathrow crash a similar incident occurred in Thailand.

A Quantas 747, 400 lost all power on its final approach to Bangkok. Despite suffering a total blackout however, the Quantas 747 managed to coast in using its brief emergency battery reserve.

As with the BA Boeing 777, no mechanical faults were reported and significantly no aircraft were withdrawn from service pending further investigation.

So what really caused the total loss of power on these flights?

According to one expert at the Massachusetts Institute of Technology, an electro-magnetic pulse device being developed by the United States military inadvertently brought down TWA 800 off Long Island on July 17, 1996.

Was this the real cause behind these near disasters at Bangkok and Heathrow? If so it may explain why the authorities are saying so little about what caused them and why they are not withdrawing any flights pending further investigations.

Quite simply they know what happened but they don’t want to say too much and scare away potential customers.

Which may explain why they are talking about the crash jet’s fuel supply not being shut off properly: this is simply a diversionary tactic to distract attention and stop people asking if it wasn’t mechanical failure, then what did cause the power to shut off?

Source: Thetruthseeker.co.uk

"I Saw Hitmen Cause Crash"

Two hitmen on a motorcycle shone a powerful flashlight at Princess Diana’s car before it crashed, her inquest was told yesterday.

Francois Levistre was driving in front of the Mercedes when it crashed, killing Diana and her lover Dodi Fayed.

He told the jury the bike stopped and the pillion passenger walked over to the wrecked car, inspected it then signalled like a referee when a boxer is out for the count.

The passenger, dressed like the rider all in black, then signalled that they needed to move quickly out of the Alma tunnel in Paris, the inquest in London heard.

Asked why he had not left his car to help those in the crash, Mr Levistre answered: “Fear.” Asked what he had been afraid of, he replied: “Just like I said, I thought they were hitmen.”

Mr Levistre, giving his evidence via video link from Paris, told how he saw the “major white flash” from the motorbike in his rear view mirror as the bike overtook Diana’s car.

The Mercedes began immediately careering across the road before crashing into the concrete pillars in the central reservation of the dual carriageway in the tunnel, he said.

He told the jury in court 73 at the Royal Courts of Justice it was like the bright flash from a speed camera.

“The light was as if you are caught by police radar,” he said. “The light was very powerful. It came into my car. The light was not directed towards me. It was directed towards the car which was behind.”

The inquest, which is expected to hear evidence for six months before deciding how Diana and Dodi died, heard that after the crash the self-employed businessman had performed tests with different kinds of lights in the Alma tunnel.

He concluded that the intensity of the flash was much greater than that produced by a normal photographer’s flash. He also told the court that he had not seen any photographers in the tunnel in the immediate aftermath of the crash.

Mr Levistre, 63, from Rennes in Normandy, told the inquest he was driving through the French capital in a rented black Ford Ka after spending the day in the city with his wife and 10-year-old son.

He entered the riverside expressway from a sliproad near the entrance to the Alma tunnel after midnight on August 31 1997. A second later he saw in his mirror the motorbike overtake the car behind him and then the bright flash.

“When I saw this light I looked through the mirror in my car,” he said. “There I saw the car going from left to right to left again within the pillars. And then the car had no lights any more. Everything was switched off.”

As he reached the end of the tunnel and viewed the mangled wreckage in his mirror, he brought his car to a halt but left the engine running. He was frightened, fearing it might have been a type of gangland hit.

“I thought it could be as in the south of France when you have gangs and bands fighting together,” he told the court.

“They were dressed in all black with helmets. And the passenger went to the car, looked into the car – because from my mirror I could see everything that was happening – and the passenger he made a gesture with his hands,” the witness said, demonstrating a sign to indicate that it was over.

He told how the passenger then signalled that they should move straight ahead out of the tunnel and got back on the bike before the pair sped off, staring at the car’s occupants as they went by.

Ian Burnett, QC for the coroner, asked him: “Was there any reason you didn’t get out of the car?”

“Fear,” replied Mr Levistre. “It’s just like I said to the magistrates before, I thought they were hitmen.”

Mr Levistre also said he saw a small white car in the tunnel, but maintained there was no contact between that and the Mercedes. He could not confirm it was a Fiat Uno.

The first he heard that the crash victims were Diana and Dodi was when he was watching the television news at 1pm the next afternoon.

He and his family did not immediately report what they had seen to the police because they were scared, he told the inquest.

“We were in the situation in which we thought these two motorcyclists had gone to kill the other people in the car. And we were just scared.”

He told the court that after the crash he had remained in his car for between two and five minutes before driving off without getting out.

When he saw television coverage of the crash, however, he decided to speak out.

“I could hear the word ‘paparazzi, paparazzi,’ but actually I knew that there were no photographers, I knew that there was nobody else up there,” he said.

By the time they arrived he had left the scene, according to his evidence. He got in touch with the Ritz Hotel, which passed his details on to police who soon asked him for an interview.

He reluctantly gave them a statement on September 1 1997 and in April 1998 he also gave a statement to Judge Herve Stephen, the examining magistrate leading the French investigation into the crash.

He told Mr Burnett that French police “looked down on him” when he gave his deposition.

During a long period of questioning Mr Burnett raised several examples where the witness had contradicted himself in statements he had given to police, magistrates and the media as well as yesterday’s inquest.

He had changed his story about whether he had seen the Mercedes actually hit the pillar and had also contradicted himself about the speed he was doing when he got onto the expressway, the court was told.

But Mr Levistre insisted that the French authorities had made up parts of his statements – which he had never read properly – in an attempt to discredit him and that what he had told the court yesterday was the truth.

Princess Diana's Mercedes shortly after it had crashed and before emergency services arrived. Sent in by a reader, his comments are below.

AOL just printed the above photo at the top of their news page. So where are the press? Where are the Doctors, where are the police? And who is driving the black car away over the tyre marks of another car, on the wrong side of the road? The roof is still on the Merc- so Trevor must still be in there? Look at the steam rising... the same photo was heavily cropped to the left in the Daily Mail.

The above testimony is corroborated perfectly by Richard Tomlinson's historic affidavit given to Judge Herve Stephan's inquiry into Princess Diana's death. A former MI6 officer, Tomlinson says he saw plans to assassinate Slobodan Milosovic which bore a strong resmblance to Princess Diana's fatal crash.

According to Tomlinson: "This third scenario suggested that Milosevic could be assassinated by causing his personal limousine to crash. Dr Fishwick proposed to arrange the crash in a tunnel, because the proximity of concrete close to the road would ensure that the crash would be sufficiently violent to cause death or serious injury, and would also reduce the possibility that there might be independent, casual witnesses. Dr Fishwick suggested that one way to cause the crash might be to disorientate the chauffeur using a strobe flash gun, a device which is occasionally deployed by special forces to, for example, disorientate helicopter pilots or terrorists, and about which MI6 officers are briefed about during their training. In short, this scenario bore remarkable similarities to the circumstances and witness accounts of the crash that killed the Princess of Wales, Dodi Al Fayed, and Henri Paul. I firmly believe that this document should be yielded by MI6 to the Judge investigating these deaths, and would provide further leads that he could follow."

Source: Express.co.uk

Thought for the day: Would the 'elite' want the future King of England to have a half brother that was Muslim when they are trying to conduct a war on terror against Muslims.

Rumours of Impending Crash

They said this is the "setup" time for an eventual collapse. The problems of 2 weeks ago was generated by only a tiny % of defaults but THEIR NEW MODELS PROJECT SEVENTY PERCENT of all subprime loans will eventually foreclose in the next 12 or so months. 70%

The hardest hit states are expected to be in the South, and MI and CA.

October is the next month for major adjustments in subprimes, and you should expect trouble. If they go up, teetering foreclosures will skyrocket into failure. The Fed's promise to do what is needed won't work because they won't bail out what is needed.

They said what America has to come to realize is that "Wall St." as we know it is over, a new system must result, and if steps are not taken, a severe crash is UNAVOIDABLE that FORCES a new system. The old system CANNOT be carried much longer.

Here is what else I am hearing as well. The problem is CATASTROPHIC in their words, but things will glide for a few weeks until October and later with the new adjustments.

The public WILL NOT HEAR MUCH IN THE NEWS, JUST LIKE THE 20's WHEN ALL WAS FINE IN THE NEWSPAPERS THE DAY BEFORE THE CRASH AND YET COLLAPSED THE NEXT DAY. PEOPLE MUST NOT BE ALLOWED TO STAGE A RUN ON THE BANKS. Don't look to news for verification. Common sense.

Store food, water and cash and get into metals, and see NESARA. What does it say when Bill Gates, the wealthiest man, now owns 30% of all silver in the world and billions in Euro's and in public said the dollar is going down (MSNBC)? He is not alone, most of the wealthiest have similarly prepared in different ways offshore.

Fortunately the new Treasury Bank system has been ready for years but blocked, but I guess we have to endure the worse before the best before the thousands of thugs in government and multinational companies are ousted. You have time now to protect yourself as best possible in the next few weeks. It will happen, but during the changeover banks and ATM's will not work temporarily!!! Be prepared now!!

Other Source: Telegraph.co.uk