Christian refugees claim ISIS living among migrants in Germany

Christian refugees from Syria claim they saw a former Islamic State member living in Frankfurt, and that this is not an isolated case. Police investigated but refused to file charges because the alleged terrorist has done nothing criminal in Germany.

On his last visit to the Saarland region of Germany, on the border with France, RT’s Peter Oliver met with a group of Assyrian Christians who had been held hostage by Islamic State (IS, formerly ISIS/ISIL).

They recalled that while being held in IS captivity, the only thing they prayed for was to be shot instead of being beheaded.

The same community, now living in the city of Saarlouis, say the horrors of that experience have followed them all the way to Germany, after they found out that a man they say had ties to Islamic State is living among them.

A refugee, who only agreed to speak to RT on condition of anonymity, said he is positive the man living in his town is the same member of IS he encountered in Syria.

“He stopped me many times at the checkpoint near our village; we were even able to find him on Facebook, I go to the web page and there’s this guy again,” the refugee said.

When the man first saw the jihadist in Germany, his reaction was that of panic.

“I was very scared that this terrorist is in a democratic state like Germany just living here,” the refugee told RT, adding that he does not understand how those who kept whole families hostage now have Syrian refugee status in Germany.

The Assyrian community now feels very insecure as “this was not the first case” a former IS member had been recognized, the man said. He added that some people are even considering leaving Germany, but do not know where to run to.

Community leaders say that once they were convinced the ‘refugee’ was in fact a former jihadist, they went straight to the police.

“The police have taken this very seriously, but we worry that the law cannot back this up with a strong case. They have to wait until this person does something criminal here,”

Charlie Kanoun, the chairman of the Assyrian Culture Association, told RT.

“But those people were killers in Syria and fly the ISIS flag here even. Such people should have no place in Germany,”Kanoun said.

Turk - Frightening Situation, The World Is On A Knife’s Edge

With continued volatility in global markets, today King World News interviewed James Turk out of Europe. Turk told KWN, “The world is on a knife’s edge.”  He also stated, “Monetary history shows that currencies under political control are always destroyed -- always.  And the dire result is economic chaos.”  Here is what Turk had to say about what he termed the, “frightening situation”:  “Europe had its big meeting last week, and one conclusion is clear, Eric, Europe still has to learn that bailouts are not a solution.  When a government or a bank, or any borrower for that matter, has too much debt -- more debt than they can handle -- adding more debt just worsens the problem.  This ultimately has the effect of making the inevitable bust that much more difficult when it eventually arrives.”

“There are other serious problems here as well.  For example, there are several countries in Europe, of which Germany is the largest, that want to pursue a monetary policy in which the euro maintains its purchasing power.  They want to make sure the currency is not debased by inflation or other bad monetary steps, such as the ECB purchasing debt/bonds of countries, to enable those countries to fund their operating expenses.

In other words, this group of countries wants the euro to be managed like the deutsche mark was managed, which, after all, is what the rules of the eurozone provide.  But these rules are being broken left and right, with the result being that the euro is just like all of the other fiat currencies around the world -- completely at the mercy of politicians, and that is a frightening situation....

“Monetary history shows that currencies under political control are always destroyed -- always.  And the dire result is economic chaos, which is then followed by political chaos and the opportunity for a demagogue to rise to power by promising order.  Given its history, is it any wonder that thinking Europeans do not want to go down that path?

But it is clear that the central planners are now in charge in Europe, Eric. It is a dangerous road for Europe to take.  I keep going back to one of my favorite Margaret Thatcher quotes:  ‘The problem with socialism is that you eventually run out of other people's money.’  Europe ran out of money long ago.  Sadly, this reality is still being ignored in Europe, and for that matter, in every socialist country, which today is just about everywhere in the world.”

Turk also added: “The precious metal markets feel just like the summer of 2010.  In fact, this weekend I spent some time going through the KWN archives and listening to my interviews from that time period (2010).  It was eery, because just about everything I was saying back then also applies to our present situation, particularly sentiment being at rock bottom.

We had big rallies in both gold and silver starting in the summer of 2010.  These are the rallies that took gold over $1900 and silver to $50.  Last week's big move should mean that massive rallies are starting again, and because the banking and economic situation is so much worse today, on this new rally, gold and silver are going to break their old highs.

The world is on a knife’s edge, Eric.  The geopolitical situation is worrying.  Economic activity around the world is rapidly deteriorating, and this is having the effect of putting more and more people out of work.  It is noteworthy that the eurozone jobless rate, in May, hit a record-high of 11.1%.  If we then factor bank runs into this toxic brew, the opportunity for the fear event I have been worrying about seems all the more likely.

As that fear event begins to manifest itself, physical gold and silver will be your best safe-haven.  It is extremely important that KWN readers, around the world, position themselves into the metals ahead of the coming chaos.”

Leaders plotting EU superstate: 'Fiscal union' looms... with the Germans in charge

By James Chapman, Political Editor

European leaders are edging closer to a federal union in response to the financial crisis engulfing the Continent.

In crisis talks yesterday, Britain and the US joined forces to urge Germany to create a central Brussels body that could assume sovereignty over individual countries’ budgets and fiscal policies.
There is growing frustration in London and Washington at Germany’s reluctance to take steps towards a single economic government and put its vast resources behind the struggling countries in the eurozone.

Their fears were aired yesterday in a conference call between finance ministers from the G7 group of leading nations.

Four EU leaders have been asked to draft proposals for a deeper eurozone fiscal union, to be presented to an EU summit at the end of this month.

Senior Tory MPs are to press David Cameron to hold a referendum on Britain’s future in Europe if the moves go ahead.

They insist the Government must seek a mandate from voters to demand that key powers are repatriated from Brussels to Westminster in exchange for agreeing to treaty changes that would allow eurozone countries to pool sovereignty.

They fear a core eurozone, led by Germany, would be in a powerful position to push whatever policies it wanted affecting the rest of the 27-member EU.

The Prime Minister and Chancellor George Osborne have long argued that a single currency can only work if the eurozone creates an effective fiscal union.

They believe that for any single currency to work, richer areas must pay to support poorer ones.
Britain would stand outside any such arrangement, and Mr Cameron refused to sign a treaty taking more tentative steps towards a fiscal union last year.

But senior Conservatives say such a move would so fundamentally alter the balance of power and daily running of the EU that a referendum would have to be offered to determine whether British voters wanted to remain in Europe’s ‘slow lane’.

Up to ten chairmen of Commons select committees are understood to be preparing to call for a popular vote on Britain’s future place in the EU if a fiscal union goes ahead.

Some believe Britain should leave the EU in such circumstances, while others argue that a demand for a looser relationship with Brussels would be given greater force if endorsed in a referendum.

Conservative MP Bernard Jenkin, chairman of the public administration select committee, said: ‘Clearly the European Union becoming a federation which expressly does not include the UK is a dramatic change in the terms of our relationship with our EU partners.

‘The Government needs to lay its demands on the table so British law and British taxpayers’ money are both protected by a sovereign UK Parliament.

‘Any new arrangements should be subject to a referendum.’

The Coalition has changed the law to ensure that no more powers can be passed from Westminster to Brussels without a referendum. But it is far from clear that one would be triggered if the eurozone countries decide to pool sovereignty.

German Chancellor Angela Merkel confirmed this week that measures to create a closer union for countries in the euro were being considered.

‘The world wants to know how we see the political union in complement to the currency union,’ she said.

‘That requires an answer in the foreseeable future and Germany will be a very constructive partner.’

Berlin does not expect to take final decisions on strengthening economic policy coordination until March 2013, with only a ‘roadmap’ being agreed at the Brussels summit this month.

Three Months to Save the Euro: George Soros

By Catherine Boyle / CNBC

Euro-zone governments have around three months to ensure the survival of the single currency, billionaire investor George Soros said in a speech on Saturday.

“We are at an inflection point. After the expiration of the three months’ window, the markets will continue to demand more but the authorities will not be able to meet their demands,” he warned in a speech at the Festival of Economics in Trento, Italy. (Read the text of his speech.) 

The European Union is “like a bubble” – not a financial bubble but a political bubble -- that could pop as a result of the euro -zone crisis, Soros said.

“In the boom phase, the EU was what the psychoanalyst David Tuckett calls a ‘fantastic object’ – unreal but immensely attractive,” he said.

“In retrospect, it is now clear that the main source of trouble is that the member states of the euro have surrendered to the European Central Bank (ECB)  their rights to create fiat money. They did not realize what that entails – and neither did the European authorities,” he said.

The euro zone needs a European deposit insurance scheme for banks, Soros said, as well as direct financing by the European Stability Mechanism (ESM) for banks, which “must go hand-in-hand with euro-zone-wide supervision and regulation.”

The “blockage” at the moment is coming from the Bundesbank and the German government, he said. German Chancellor Angela Merkel has been cautious about increasing Germany’s support for the rest of the euro zone.

Soros believes Germany will eventually do what it takes to keep the euro zone going because of the large losses German banks would suffer if it broke up and the damage to exports which could be caused by a return to the Deutschmark, which would likely be substantially stronger than the euro.
“A German empire with the periphery as the hinterland,” could be the result of the current predicament, he warned.

The ECB has been instrumental throughout the crisis and its liquidity injection via a long-term refinancing operation helped boost European markets earlier this year, giving policy makers some much-needed breathing space.

Soros said that too much blame had been placed on peripheral euro-zone countries such as heavily indebted Greece and Spain, and that creditors like Germany had to share responsibility.

“The “center” is responsible for designing a flawed system, enacting flawed treaties, pursuing flawed policies and always doing too little too late.

“In the 1980s, Latin America suffered a lost decade -- a similar fate now awaits Europe,” he said. “That is the responsibility that Germany and the other creditor countries need to acknowledge.”
Soros argued that the focus on austerity instead of growth had been a mistake by the European authorities.

“The authorities didn’t understand the nature of the euro crisis; they thought it was a fiscal problem, while it is more of a banking problem and a problem of competitiveness. And they applied the wrong remedy: You cannot reduce the debt burden by shrinking the economy -- only by growing your way out of it,” he said.

“The crisis is still growing because of a failure to understand the dynamics of social change; policy measures that could have worked at one point in time were no longer sufficient by the time they were applied,” he said.

These views are echoed by well-known economists including Paul Krugman. An increasing number of politicians in the euro zone are also arguing for less austerity and more promotion of growth. The debate has come to prominence during both the Greek election campaign and the Irish referendum on the EU fiscal pact for euro-zone-wide austerity measures.

Marc Faber: 100% Chance of Global Recession

By: Lee Brodie

The stock market appears to be at a critical inflection point. That’s the takeaway from widely followed economist Marc Faber, author of the Boom, Gloom & Doom newsletter.

Faber’s bearish market calls have been followed closely since 1987 when he warned his clients to cash out before Black Monday.

And in a live interview on CNBC’s Fast Money Halftime Report, Faber again warned that economies of the world may be on the brink of a serious slowdown.

Faber indicated that while investors remain focused on Greece and Europe – other issues, bigger issues are looming. And they’re more threatening.

“As an observer of markets – whenever everyone focuses on one thing – like Greece and Europe – maybe they miss issues that are far more important – such as a meaningful slowdown in India and China.”

The latest reports from Beijing would support Faber's assertion. The HSBC Flash Purchasing Managers Index, slipped to 48.7 in May from 49.3 in April. That marks the seventh straight month that the index has been below 50, a level which indicates economic activity is contracting.

Faber also cited weakness in the high-end as another key catalyst that’s very negative.

“There are more and more stocks that are breaking down – economic sensitive stocks and companies that cater to the high-end,” he said. "That suggests to me the economy is likely to weaken and the huge asset run is likely to come to an end with significant asset deflation.”

Earlier in the week Tiffanylowered forecasts citing slower sales. At that time, Fast Money trader Dan Nathan warned that results such as these were foreboding and suggested the high-end was starting to crack.

When taken in concert, Faber says all the economies of the world could take a hit from these negative developments.

“I think we could have a global recession either in Q4 or early 2013." When asked what were the odds, Faber replied, "100%."

However, in the near term Faber also sees potential for a market rally.

Faber said the bullish catalyst would be Greece exiting the EU.

“I think the market would be relieved if finally Greece exited the euro. There would be some clarity. Although it wouldn’t be good for banks and insurance (stocks) in general I think markets are oversold and with an exit – markets would rally.”

It’s worth noting that Faber is talking hypothetically; he does not think Greece exits the EU in the near future.

“What I think will happen is that Germany will show more flexibility and issue more euro bonds.”

Faber pointed to the recent decline in the euro as evidence that the currency markets share his view. “More bonds will challenge the quality of the euro. That’s why the euro has been very weak, lately."

For investors looking to navigate what could be a serious economic storm, Faber said the best thing to do is keep the portfolio in US dollars and own gold, “knowing that sentiment is negative and in the near-term it could trade down to the Dec 29 low of $1522.”