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Old 01-06-2015, 04:34 AM
Danny B Danny B is offline
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Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,898
big banks and even bigger debts.

I honestly feel very bad for the people who suffer from the global collapse. I bought 10 acres of farmland in Western Oregon hoping to help out as many good people as possible. That said, this is getting very entertaining. New headlines.
" Runaway dollar could make deflation unstoppable"
Runaway Dollar Could Make Deflation Unstoppable
" $6 trillion of EM dollar bonds pummeled by rising $" I thought it was only $ 3 trillion
$6 Trillion Of EM Dollar Bonds Pummeled By Rising $, Falling Commodities | David Stockman's Contra Corner
" China's cities face judgement day on debts as costs soar " This is part of that $ 6 trillion that is very difficult to service.
China’s Cities Face Judgment Day on Debts as Costs Soar - Bloomberg
" Greece and Spain on verge of revolt" That's what happens with 50% unemployment.
Squeezed By Austerity Imposed By Germany, Greece and Spain on Verge of Revolt

"How J P Morgan Chase helped wreck the economy " Followed by, Goldman Sachs says that JPM should break itself up.
" Knowing it will end badly and turning a blank eye "
Knowing It Will End Badly And Turning A Blind Eye | Zero Hedge
What do you mean,, blind eye? I'm all packed up waiting to go to camp FEMA.
Not to be left out, it seems that Citi is getting close to blowing all to kingdom-come. They have recently been on a buying frenzy for derivatives. With the bill they just got through congress, they have about $ 70 trillion "supposedly" covered by the FDIC.

"To big to fail" has another name. "Alan Greenspan talked about this when I worked in the government. He basically said, ‘Everybody focuses on the too big too fail, but the real question is: What happens when you are too big too save?’ "
Former White House Official Warns Of Terrifying Cyprus-Style Global Endgame | King World News
The pension funds will be fleeced. "

The world is currently in deflation because of all the credit drying up. The CBs are printing like crazy but, the currency isn't moving from the upper loop into the general economy. There are a few plans floating around to send everybody several thousand dollars to get things moving again.
There is one very good analyst, FOFOA who has insisted that the CBs will eventually be able to create inflation. FOFOA

I'm not so sure. Deflation is a shrinkage in the supply of currency and credit. Currency; "There was approximately $1.29 trillion in circulation as of October 1, 2014, of which $1.25 trillion was in Federal Reserve notes. "
There are supposed to be one quadrillion in contracts denominated in U.S. dollars. There are about $ 1 quadrillion in Derivatives. There are about $ 15 trillion in Treasury bonds. We have a fractional reserve banking system. There isn't very much actual paper currency compared to the notional value of all those instruments and pixels.
I'm suspicious that much of the coming deflation will be in the notional value of all those instruments. The BOJ is buying everything that isn't nailed down just to support the notional value of stocks, bonds and whatever. They still have deflation. Can the FED buy everything in sight and still avoid deflation?

The FED bought up all those mortgage backed securities to keep the price of residential RE up high. They are buying every stock in sight to hold up the perceived value of stocks. They buy at least 80% of U.S. treasury bonds. They buy corporate bonds. Can the markets still crash if the CB has bought everything in sight? We may get to find out.
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