China earthquake shears off mountainsides, kills 180 people

Chinese residents sleep in open areas for fear of aftershocks in Sichuan province, China, on Sunday, April 21. A 7.0-magnitude earthquake hit China's southwest Sichuan province on April 20. More than 100 people were killed and 3,000 injured.

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Photos: Deadly earthquake strikes Sichuan, China

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STORY HIGHLIGHTS

• 180 are dead and 24 others are missing, authorities say
• More than 11,200 people are reported to have been injured
• Chinese Premier Li Keqiang travels to the area
• The quake struck about 70 miles from the city of Chengdu in Sichuan

Lushan, China (CNN) -- With each passing hour, the casualty count continues to rise from a strong earthquake that struck the southwestern Chinese province of Sichuan. By Sunday afternoon, authorities reported 180 deaths, 24 missing and more than 11,200 injuries.

Thousands of emergency workers, including soldiers, rushed to reach the affected zones in the hilly region, but their progress was impeded.

"Huge chucks of the mountain in certain areas have sheared off and fallen into the valleys," CNN's David McKenzie reported from near the quake's epicenter in Lushan. "Big boulders have landed onto the roads, making emergency work difficult."

Severe structural damage with some buildings flattened was evident in Lushan.

Xu Mengjia, the Communist Party chief of Ya'an, the city that administers the area where the quake struck, told state broadcaster CCTV that because of landslides and disruption to communications, determining the total number of casualties may take some time.

Chinese Premier Li Keqiang traveled to the area from Beijing on Saturday, state media reported.

Students gather outside to escape the quake

Quake strikes China's Sichuan province.

See earthquake rattle China

The quake struck just after 8 a.m. local time Saturday, about 115 kilometers (70 miles) away from the provincial capital, Chengdu, at a depth of around 12 kilometers, according to the U.S. Geological Survey. There was conflicting information about the earthquake's strength, with the USGS putting the magnitude at 6.6 and the China Earthquake Networks Center gauging it at 7.0.

It was followed by a series of aftershocks, some of them as strong as magnitude 5.1, the USGS said.

Authorities have responded by sending rescue workers to the area around the epicenter, briefly halting flights at the airport in Chengdu and suspending high-speed rail operations, state media reported.

"There's definitely a huge government response -- soldiers driving past me now," McKenzie said. "Triage centers have been set up by the government and the Red Cross."

The event stirred memories of the devastating earthquake that hit Sichuan in 2008, killing more than 87,000 people.

First responders to Saturday's quake reported that the damage caused didn't appear to be as severe as what was seen in the aftermath of the 2008 disaster, according to CCTV.

Fan Xiaodong, a student in Chengdu, said when the tremors began to shake buildings in the city, many of his startled classmates rushed out of their dorms, some of them wearing only the clothes they'd been sleeping in.

At first, Fan said, he only felt a slight trembling as he dozed in bed.

"I thought it was my roommates shaking the bed," he said. "But the shock became stronger soon, and it came to me that an earthquake happened."

The epicenter was in Lushan country, a district of Ya'an. That area is home to China's famous giant pandas and houses the country's biggest panda research center.

CCTV reported that the pandas at the facility, which is about 40 kilometers (about 25 miles) from the epicenter, were safe.

Residents of Chongqing, a sprawling metropolis more than 300 kilometers (about 190 miles) from Ya'an, said the quake also shook buildings there.

Are you there? Send your iReports

CNN's David McKenzie reported and from Lushan, China. CNN's Ed Payne reported from Atlanta.

China quake kills scores in rural Sichuan

Sichuan province in south-west China was also was struck by a devastating earthquake five years ago

Continue reading the main story

A powerful earthquake has killed at least 160 people and injured at least 5,700 in China's rural south-west, officials say.

The 6.6-magnitude tremor sent people fleeing from buildings across Sichuan province, which was devastated by a massive quake five years ago.
Villages close to the epicentre in Lushan county were left in ruins.
The rescue operation is being hampered by collapsed roads, broken telephone lines and regular aftershocks
Thousands of troops have been sent to Sichuan, and Premier Li Keqiang has arrived in the area.
"The current most urgent issue is grasping the first 24 hours since the quake's occurrence, the golden time for saving lives," Mr Li was quoted as saying by Xinhua state news agency.
Rescuers have been able to pull some bodies and survivors from the rubble of devastated villages.
There have been at least 710 aftershocks, further damaging buildings and leaving them dangerous.
Power and water supplies have been knocked out in Lushan county.
'Everything collapsed' The quake struck at 08:02 local time (00:02 GMT) on Saturday, with the China Earthquake Administration categorising it as a 7.0 magnitude, and the US Geological Survey (USGS) reporting it as 6.6.

Dobromir Zaprianov: "It was the longest 15 seconds of my life"

Its epicentre was 115km (70 miles) west of provincial capital Chengdu, according to the USGS.
A square outside the Lushan county hospital has been turned into a triage centre, with dozens of people being treated in tents.
State broadcaster CCTV showed images of bloodied people being treated in tents.
One injured man told the channel: "We still live in our old house, the new one is not ready yet. Our house just collapsed. Everything collapsed."
The quake was measured at 12km below the surface - a shallow depth that usually indicates extensive damage.
CCTV footage suggested entire villages around the epicentre had been flattened.
People in Chengdu felt the tremor and came running into the streets wrapped in blankets.
Chengdu resident Aaron Ozment told the BBC there was huge confusion in the city.

Lushan county appears to have sustained extensive damage

"I threw on a some clothes quickly and made my way into the courtyard of my complex," he said.
"Making calls was almost impossible; everybody was trying to contact everybody they knew."
Residents in the nearest city to the epicentre, Ya'an, felt jolts from the quake and aftershocks, but the city does not appear to have suffered major damage.
Correspondents said almost 30,000 rescuers had begun work in the quake zone. The Chinese premier was flown to Ya'an by helicopter as soon as he arrived in Sichuan, Xinhua reported.
Aircraft had begun flying over the area to assess the damage and deliver supplies.
Five years ago a massive quake hit Sichuan, killing tens of thousands.
The 2008 disaster left some five million people homeless.
Many of the collapsed buildings were schools and nurseries, leading to widespread criticism of local government's planning policies.

Are you in China's south-western province of Sichuan? Please send us your comments and experiences.

My interview of David Morgan Silver-Investor - Confirmed U.S. banks will go Cyprus. Paper prices separating from physical. Get metals while you can!

David Morgan, Silver-Investor.com  spoke to me this morning about the Federal Reserve Governor Jeremy Stein, coming right out and saying the U.S. will do as Cyprus if needed and take the creditors (depositors) money so a bank will not fail.  Your money in the banks is not yours it is the bank's money and when you signed the signature card, you acknowledge that.

The blue print has been established.

Great last minute interview with David and he provides Very Important information.  He points out Everyone needs to protect themselves, immediately.  The Physical market is tight now and getting tighter even in the U.S., get gold and silver right now while you can.

He says the U.S. citizens need to Wake Up and get smart and informed NOW!

Are You Just A Believer Or Do You THINK?

B’Man’s Revolt
I’ve studied and graduated EMT-B certification with the state of Oregon. I’ve been on calls with heavy arterial bleeds, internal bleeding, fatalities, doa’s. I am speaking from direct personal experience with severe trauma.
Here is a telling photograph of the amputee actor. I encourage readers to view the photo side by side with my analysis.
http://www.kaotic.com/media/pictures…42b556ee65.jpg  
If you loose both your legs from explosive trauma half your blood is gone in one minute via the femoral arteries, youre dead after two. Bleeding out is worse with blunt force trauma (like shrapnel) because flesh is torn rather than cut, exposing more arterial and vascular tissue. The human body holds 5 to 6 LITERS of blood. If that really happened you would see blood EVERYWHERE, the guy would be drenched in it. You would also see what’s called arterial spurtting from the injury. Most likely he would vomit after turning ghost white from shock, then turning delirious or passing out. As for the “tourniquet”…
Its not even tied off, its suspended via gravity, which would literally do nothing to an arterial sever. There’s no pressure applied. There’s no knott with a turn stick for leverage. You can clearly see a gap in the nonexistent wrap job on his left inner thigh (left anterior proximal for you experts) His hands have no blood on them. There’s no blood on the ground. The color in his hands and lips shows good circulation.
This is an actor. This is staged. How did they pull it off though? I can show you.
Here in frame six on the left we see the the man with a hood setting up the fake leg wound prosthetics. His attention and hands are right there. The woman is acting as a shield covering what’s happening.
Frame 6

Here in frame eight the prosthetics are in place. Amidst all this chaos seconds after the explosion the hooded man takes the time to put on his sunglasses which is a signal.
Frame 8

Here in frame nine with sunglasses now on the hooded man and the woman make eye contact, signal received.
Frame 9

In frame eleven after recieving the go signal the woman makes an open hand gesture the direction both of them are looking, signaling the staged injuries are in place for cameras. The prone amputee raises his left prosthetic injury into the air over the woman’s shoulder. No blood is present. The bone is dry, no blood on his leg above the knee, no blood on the woman, no arterial spurt, nothing.
Frame 11

Here in frame fourteen the woman turns her head right but is still holding up that open palm signal with her left hand. The hooded man again busies himself pouring fake blood on the pavement behind the woman. The amputee has both fake injuries in the air now. There is still no blood on his legs, his skin above the injury is clean and dry.
Frame 14

Frame twenty, the fake blood and prosthetics are in place. The amputee gives an open hand gesture along with the woman to bring the cameras in. We’re now twenty frames in and still not a drop of fresh blood from a double leg amputation. His legs are dry, the woman is dry and unscathed. Both are making the same hand gesture.
Frame 20

These are actors. This is staged. It was flash powder. There was no crock pot nail bomb. There are no bombers, only patsy. If your looking for a gunman look at the Army in the streets of Boston. Share this knowledge with everyone.
ATS

Something about this entire thing smells to high heaven. When have you ever heard of someone with a blown off leg not bleeding? Some make the claim that it was cauterized, but obviously, the picture of them wheeling the guy out on the wheelchair shows ‘blood and gore’ (a cauterization is a burn that seals the wound). Something changed between these images and when they wheeled him out in front of the cameras.
And there is more analysis from Fist-Of-Freedom:
This image was taken by a third party photographer seconds after the first explosion. There is clear evidence of false flag staging here. The man in the red coat and baseball hat on the right is kneeling down giving directions to the guy in the white T-shirt. Also looking to this pair for direction are the woman sitting to the right and the man in a hood and sunglasses who set up the double amputee prosthetics.
Notice the relaxed posture and face of the hooded man. Notice also the calm prepared posture of the woman sitting down on the bottom right. See how her shirt sleeve is severely torn, yet her skin underneath is clean and clear of injury and blood. From where she’s sitting look right to the bottom right corner and you can see an unmarked bottle of fake blood.
Look to the left and see the cowboy hat man standing there doing nothing. This is the same man who will pretend to hold the tourniquet of the fake amputee actor later on. Look to center of the photo and you will see the african woman moving herself away from the amputee actor since her shielding him from camera’s job is over. Next to her is a woman with red hair leaning on her elbow.

Compare this now with another photo taken seconds later. Putting them side by side is very helpful.
The man with the hood and sunglasses, who was just sitting up looking fine and healthy after fixing up the amputee actor’s prosthetics, is now on his back being evaluated by two people. Notice the rips in his jeans have no sign of blood or injury on the skin. The woman with red hair however is in the exact same pose as a minute ago. Meanwhile the double amputee actor is completely ignored by everyone when he is clearly in the most dire need of attention. There is a small amount of fake blood around him where the african lady shielding him used to be, she has dissappeared. What happened to her? Compare this photo with the first in my post.

The african woman who was sitting up, shielding the hooded man and amputee actor’s prosthetic rigging, giving hand signals, looking left and right, having no visible blood or injuries, is now covered in blood and strapped into a spine board stretcher.
In a real medical scenario the amuptee would receive immediate treatment or die from bleed out. The fact this actor woman is removed from the scene via stretcher while the double amputee is left on the ground is ludacris. He would be dead from blood lose before they could even begin spinal assessment procedures involved in moving a patient to a stretched. Not to mention his blood lose would be over five liters, enough to cover the entire scene around these people in a thick puddle.

From firsthand experience with trauma in the field of EMS work, this is not real. These are actors. This is all staged.

I know that many just want to believe. But I can’t help but think. So much doesn’t add up.
http://buelahman.wordpress.com/2013/04/20/are-you-just-a-believer-or-do-you-think/

De Niro Prepares For Role As Bernie Madoff

How I'm Preparing To Play Madoff
De Niro Discusses Preparation For Madoff Role
April 17 (Bloomberg) -- Producer Jane Rosenthal and Robert De Niro discuss their upcoming HBO film on Bernie Madoff.

---
Funny Stuff

The Ballad Of Bernie Madoff
Thirty seconds you'll never get back.

COMEDY: The Madoff Recovery Plan (Hilarious)

Kyle Bass: "I'd Much Rather Own Gold Than Paper"

We've moved to an ideology of unlimited printing.

"I'm perplexed as to why gold is as low as it is.  The largest central banks in the world have all moved to an unlimited printed ideology.  If monetary policy is the only game in town, then we're all in for a world of trouble."

--
From Bloomberg:
Trust in Gold Not Bernanke as U.S. States Promote Bullion
Distrust of the Federal Reserve and concern that U.S. dollars may become worthless are fueling a push in more than a dozen states to recognize gold and silver coins as legal tender.  Arizona is poised to follow Utah, which authorized bullion for currency in 2011.  Similar bills are advancing in Kansas, South Carolina and other states.
Read more here...

Kyle Bass: The Best Way To Get Paid Back By Fannie

Jim Willie - Golden Jackass Information from his April Hat Trick Letter: Physical Gold Premiums will be $500 or more in the near future, Silver 40%. Dealers Sold OUT Now

Jim Willie, The Golden Jackass and writer of the Hat Trick letter is allowing me to publish a little of his April subscriber Hat Trick Letter.

Jim emailed me this information today along with an article (and link) about physical gold and silver being bought out and major dealers do not have any for sale now.

Here are a few paragraphs (with his permission of publishing here) from Jim's April Hat Trick Letter for subscribers only:

_______________________________________________________________________________

PREMIUMS FOR GOLD PURCHASES WILL RISE QUICKLY. THE PROCESS HAS ALREADY BEGUN. THE GOLD PREMIUM WILL EVENTUALLY BE $500 TO $600 PER OZ, LIKE IN A COUPLE MONTHS, MAYBE A LITTLE LONGER. THE DIVERGENCE WILL BE VISIBLE IN REALTIME FOR GOLD, BUT FOR SILVER IT IS ALREADY 40%. PUBLIC DEFIANCE WILL RISE AGAINST THE BANKERS, LIKE WITH PREMIUMS IMPOSED. WATCH FOR LAWSUITS RELATED TO THE ALLOCATED GOLD ACCOUNTS. WATCH THE BAFIN INVESTIGATION AGAINST DEUTSCHE BANK, WHERE OFFICIALS ARE SIGNING IN A CHORUS. $$$

A client close to the gold trade in Dubai United Arab Emirates has offered to provide a regular update on the DBX gold price. My hope is to be updated almost daily, but that is asking too much, since he is busy running an office. The premium reading is like an EKG for a man suffering a heart attack with monitors attached. He wrote on Friday and again on Saturday, shooting updates. He wrote, "No more physical Au available in Dubai. The big refineries tell people they might be able to fill orders for 100 kg bars in a week or two, but they might not be bound to the screen price. Premium now $18 over spot Gold price and rising (on Friday). We shall see $500 over spot not before long. Investment grade Ag is already trading at 40% over spot if you want physical in volume. Saturday here in DXB and the premium is now $25. There is no physical anywhere. Now the premium is $30 (one hour later)." 

For newbies, Au means Gold and Ag means Silver. Some simple math permits one to conclude that a $500 premium could arrive in fifty days if it comes at $10 per day. My belief is that the full premium will come more quickly, as the jumps will tend not to be linear. The traders in control of scarce inventory will sense the injustice and smell the destination of a true valid Gold price!!

The defiance against the criminal power jockey bankers will be visible in the open very soon, with public statements and calls for lawsuits and prosecution. Worse, the events and premium rise will be accompanied by direct formal action taken against thefts of Allocated Gold Accounts. Watch the German story, since the political response by their Parliament has begun for repatriation of their national account held (sold) by the New York Fed. The latest chink in the armor is a BAFIN investigation against Deutsche Bank in Germany. Several high level officials wish to avoid prison time, which motivates them to sing in a chorus tune. They are providing information on the $79 trillion in D-Bank derivatives, which permitted them to do illicit balance sheet extensions in the past. It is all tied to gold and the malfeasance behind the gold account management.

_________________________________________________________________________

Jim had sent me the below about physical demand of metals being off the chart.  

http://www.libertygoldandsilver.com/GoldandSilverBlog/?p=174

PHYSICAL DEMAND OFF THE CHARTS!

We are in the midst of experiencing two of the most radical weeks in the history of the precious metals markets. Paper prices for gold and silver, those prices determined by the fraudulently managed commodities exchanges (namely the COMEX and the London Bullion Marketing Association – LBMA) and regulated by the equally corrupt and complicit Commodities Futures Trading Commission (CFTC), have been driven into the basement.
Simultaneously, the available physical supplies of precious metals, especially silver, have suddenly nearly disappeared. Some of the most extreme shortages for silver in memory have caused premiums for all types of bullion and coins to skyrocket. Nearly all major wholesalers in the United States, and for that matter the world, are completely out of stock for smaller denominated silver rounds and bars, with no projected delivery dates in sight. This phenomenon is a worldwide event.
Here is a brief overview of the extraordinary world events highlighting the tremendous surge in precious metals demand.
India
Last week, the highly reputable Business Standard of India reported that there are “acute” shortages of gold in southern India. Reports the Standard, “Major jewelry manufacturing centers in southern India are facing an acute shortage of gold ahead of the wedding season despite the industry’s claim to have seen a record import of the yellow metal last financial year.”
Thailand
US ex-patriots living in Bangkok are reporting that gold dealers in that city are completely out of bullion products other than minor amounts of jewelry. These reports are stating that there is not one ounce of gold bullion available for sale! Dealers are taking orders but these are limited to 2.5 ounces per person.
China
Gold demand is surging. China’s domestic gold consumption is outpacing its internal production 5.5 to 1. China’s mining output was up 5.8% in 2011 but its domestic consumption of the yellow metal increased by 33%.
Hong Kong
Reports from Hong Kong have seen line-ups out the doors of precious metals dealers. Dealers are reporting massive buying with almost zero selling. Some dealers are reporting that they have sold more gold in one day than they normally do in three months with walk-up clients buying over a million dollars in gold with cash and taking it out the doors in gym bags!
Europe
Dutch Bank Shuts Down Gold Deliveries
Possible major shortages of its clients’ deliverable gold has forced Dutch megabank ABN Amro last month to dramatically change its custodian rules. ABN Amro announced March 24th that it “will no longer allow physical delivery.” Hysterically, ABN Amro account managers attempted to soothe their clients by saying, “You need to do nothing” as “we have your investments in precious metals.”
Major German Auto Manufacturer Hoarding Silver
It is being reported from Switzerland that a world famous German automaker is now resorting to storing thousands of pounds of .999 fine silver for perceived future shortages. The company’s purchasing manager has been quoted saying, “For some metals, like silver, there’s no such thing ‘just in time’ delivery anymore.” It has further been reported that this company is buying every available ounce it can in preparation for severe world shortages.
Switzerland to Buy a Stunning 1,000 Tons of Physical Gold?
A political movement inside Switzerland has acquired one hundred thousand signatures towards new legislation to eliminate future gold sales by the Swiss National Bank as well as to require the Swiss government to buy back immediately one thousand tons of gold that it already sold. If this becomes law, it will have a significant impact on tightening world gold supplies.
United States
16% of US Annual Silver Production Vaporized in Mine Collapse
A massive landslide at Rio Tinto’s Kennecott mine in Utah, on April 12, 2013, has wiped out five million ounces of annual silver production and five hundred thousand ounces of gold production. Taking into account that the US Treasury requires all US Eagles be manufactured exclusively with US mined gold and silver, the extreme shortages of these products can only increase.
US Mint Reports Massive Silver Sales
The US Mint reported that it has sold one 1.645 million ounces of Silver Eagles through the first six business days in April, bringing its 2013 total to an extraordinary 15.868 million ounces this year. This is on pace to completely crush the current annual record. Because of unprecedented demand, all dealers are on very tight allocations with almost all retailers as well as major wholesalers completely out of stock. Earliest expected shipments are at least 4 – 6 weeks out!
US Mint Gold Sales Setting Monthly Records
In April 2012, the US Mint sold 20,000 ounces of gold bullion coins. As of April 16th this year, the US Mint has sold over 50,000 ounces of gold and the month is only half over!!
Precious Metals Sell/Buy Ratio Going Hyperbolic
An unofficial but reputable survey of US bullion wholesalers is reporting a sales to buy ratio over 50 to 1. There are no forecasts for this to ease any time soon.
Huge Wholesale Premium Increases
Unprecedented shortages in silver have resulted in huge premium increases for silver dealers at all levels. Premiums for US Eagles and Canadian Maple Leafs have jumped $1 in the last week.
Premiums for “junk silver” are completely off the charts. It has been reported to us that buyers in areas such as northern New Jersey are paying an incredible $9 an ounce over spot for pre-1965 US silver coins. As far as we know, this may be the highest in history. Wholesale premiums for “junk silver” have risen 2,000 percent in the last six months. Most importantly, there is almost none to be found anywhere. Some dealers are taking orders with three months waiting time.
Zero Inventories at Major Private US Mints
Two of the largest silver bullion fabricators in North America, A-Mark Precious Metals of Santa Monica, California, and the NTR Bullion Group of Dallas, Texas, have just notified their retail dealers that they have suspended sales of most of their silver products. A-Mark has announced that it is ceasing taking orders for all its one ounce, ten ounce, and one hundred ounce rounds and bars. There is no projected date for resumption of sales!
Retail Coin Stores Completely Out of New Stock
It is being reported to us that the majority of local retail coin dealers are entirely out of stock of any silver products. Our unofficial surveys reveal almost no customers selling where buying requests are reaching a frenzied level. The silver shortage situation is fast approaching the extreme level currently experienced in ammunition sales. Basically, neither can be found!
Ladies and gentlemen, it is becoming patently obvious that world citizens are waking up fast to the inherent risks of fractional reserve private central banking, and the extreme threat that burgeoning government debt means for them. Wise people everywhere are no longer looking for yield but are seeking safety in ever increasing numbers. And, they are looking for it hard and fast. What they are finding is the ultimate safety for wealth protection, namely, gold and silver.

As I have stated before, Jim gives real information that everyone needs to know about what is really happening in the physical world of Gold and Silver.  

FLASHBACK - $66 billion in gold missing from Fort Knox

Fitch Downgrades United Kingdom to 'AA+'; Outlook Stable

LONDON, April 19 (Fitch) Fitch Ratings has downgraded the United Kingdom's Long-term foreign and local currency Issuer Default Ratings (IDR) to 'AA+' from 'AAA'. The Outlook is Stable. At the same time, the agency has affirmed the UK's Short-term foreign currency rating at 'F1+' and the Country Ceiling at 'AAA'. The rating actions follow the conclusion of the review of the UK's sovereign ratings initiated on 22 March and resolve the Rating Watch Negative. The previous Negative Outlook on the UK's sovereign ratings had been in place since 14 March 2012. KEY RATING DRIVERS The downgrade of the UK's sovereign ratings primarily reflects a weaker economic and fiscal outlook and hence the upward revision to Fitch's medium-term projections for UK budget deficits and government debt. Despite the loss of its 'AAA' status, the UK's extremely strong credit profile is reflected in its 'AA+' rating and the Stable Outlook. - Fitch now forecasts that general government gross debt (GGGD) will peak at 101% of GDP in 2015-16 (equivalent to 86% of GDP for public sector net debt, PSND) and will only gradually decline from 2017-18. This compares with Fitch's previous projection for GGGD peaking at 97% and declining from 2016-17 and the 'AAA' median of around 50%. - Fitch previously commented that failure to stabilise debt below 100% of GDP and place it on a firm downward path towards 90% of GDP over the medium term would likely trigger a rating downgrade. Despite the UK's strong fiscal financing flexibility underpinned by its own currency with reserve currency status and the long average maturity of public debt, the fiscal space to absorb further adverse economic and financial shocks is no longer consistent with a 'AAA' rating. - Higher than previously projected budget deficits and debt primarily reflects the weak growth performance of the UK economy in recent years, partly due to headwinds of private and public sector deleveraging and the eurozone crisis. Fitch has revised down its forecast economic growth in 2013 and 2014 to 0.8% and 1.8%, respectively, from 1.5% and 2.0% at the time of the last review of the UK's sovereign ratings in September 2012. The UK economy is not expected to reach its 2007 level of real GDP until 2014, underscoring the weakness of the economic recovery. - Despite significant progress in reducing public sector net borrowing (PSNB from a peak of 11.2% of GDP (GBP159bn) in 2009-10, the budget deficit remains 7.4% of GDP (excluding the effect of the transfer of Royal Mail pensions) and is not expected to fall below 6% of GDP and GBP100bn until the end of the current parliament term. The slower pace of deficit reduction means that the next government will be required to implement substantial spending reductions (and/or tax increases) if public debt is to be stabilised and reduced over the medium term. The Stable Outlook on the UK's sovereign ratings reflects the following factors. - Under Fitch's baseline economic and fiscal scenario, which assumes a continued policy commitment to reducing the underlying budget deficit and medium-term annual growth potential of 2%-2.25%, government debt gradually falls as a share of national income in the latter half of the decade. - The long average maturity of public debt (15 years) - the longest of any high-grade sovereign -exclusively denominated in local currency and low interest service burden implies a higher level of debt tolerance than many high-grade peers. - The international reserve currency status of sterling and the ability and willingness of the Bank of England to intervene in the UK government debt market largely eliminates the risk of a self-fulfilling fiscal financing crisis. - The gradual improvement in the UK banking sector's capital and liquidity position has further reduced contingent liabilities arising from this sector. The UK's 'AA+' rating is underpinned by its high-income, diversified and flexible economy as well as a high degree of political and social stability. The monetary policy framework as well as sterling's international reserve currency status afford the UK a high degree of financial and economic policy flexibility. Strong civil and policy institutions and a high degree of transparency enhance the predictability of the business and economic policy environment that compares favourably with peers in the 'AA' category. Weak economic performance and growth prospects, relatively high levels of private and foreign as well as public debt, along with sizeable twin fiscal and current account deficits, are weaknesses relative to rating peers. RATING SENSITIVITIES The Stable Outlook indicates a less than 50% chance of a change in the UK sovereign ratings over the next two years. The main factors that could lead to a negative rating action, individually or collectively, are: - Failure to stabilise the government debt to GDP ratio over the medium term. - Increased threat to macro-financial stability, for example arising from an intensification of the eurozone crisis or an erosion of confidence in the UK's policy commitment to price stability. The main factors that could lead to a positive rating action, individually or collectively, are: - Stronger economic recovery and rebalancing of the UK economy than currently forecast. - Government budget deficits and debt declining at a faster pace than currently projected so that GGGD is on a sustainable path towards 90% of GDP and below. KEY ASSUMPTIONS A key assumption underpinning Fitch's medium-term fiscal projections reflected in the 'AA+' rating and Stable Outlook is that the growth potential of the UK economy is around 2%-2.25% pa. This assumption is based on the UK's labour market and demographic outlook and expectation that labour productivity will revert to its long-run trend of around 2% pa. In the event that productivity and hence economic growth is permanently lower than its long-run historical average prior to the financial crisis, the fiscal outlook would be materially worse than currently assessed with adverse implications for the UK's sovereign credit profile and ratings.Global Economic Outlook - AmendedAdditional Disclosure Solicitation StatusALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

Americas End Predicted by Past History