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Old 08-15-2018, 02:58 PM
Danny B Danny B is offline
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Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,329
Contagion and the hunt for taxes

"They" wanted an integrated worldwide financial system. As a bonus, "they" got a worldwide platform for CONTAGION.
They wanted unlimited cross-border capital flows. In good times, capital flows to where it gets the best return. In bad times, capital flows to the State that promises the most stability. The States with the best return are usually very risky places to invest. As confidence shifts, capital shifts. The attitude shifts from return ON capital to return OF capital.
Many investors would rather buy stocks at nosebleed valuations than hold bonds... both sovereign and private.
8/15 Think Turkey, Argentine sovereign debt is bad? Look at companies – Bloomberg

Our world situation; the mega-parasite writes the laws. What can you expect?
"No matter what country we look at, governments are going broke. Consequently, they are all beginning to turn against their people in the hunt for money. Some governments have just completely crossed the line between a free society and moved directly into the classification of authoritarianism. Australia has just been hunting its own citizens and demonizing the rich. They even coined the phrase: “Cash of for Criminals!”
https://www.armstrongeconomics.com/i...out-australia/

"to to answer those who ask WHY will China surpass the USA, the answer is simple. The trend is already set in motion and the West just has to that Marxism not only violated the Ten Commandments, but it suppresses human ingenuity and stunts economic growth. The more we move to try to save the collapse of socialism, it is like Erdogan refusing to accept responsibility for the collapse of the Turkish lira."
https://www.armstrongeconomics.com/i...inst-the-west/

The German Government too is looking for every Euro that it can squeeze out of some producer.
https://www.armstrongeconomics.com/w...ests-for-cash/
Erdogan is a nut-case psychopath. He will never give up his megalomaniac dreams of a new Ottoman Empire. The IMF won't give Turkey money unless he gives up control. He approached Qatar and, was turned down. Turkey can no longer service it's external debt.

Italy came out and said that QE had to continue "to infinity and, beyond"
QE is necessary for the non-producers. The producers actually create something and, have an income. The overlay of the EU bureaucracy on top of the existing state bureaucracy reduced the GDP of Italy (for instance) by 20%.
"The Euro has continued to fall dropping at the time of this post to 11343. The bottom of this channel lies at the 11315 area and behind the curtain, our phone is in meltdown mode. After’s Italy warning that the ECB has to keep QE going or the entire bond market will collapse forcing the breakup of the EU has finally made many of the dollar-haters start to realize that indeed Draghi has destroyed the European economy and bond market."
https://www.armstrongeconomics.com/m...pe-in-reality/
Keep in mind that super Mario Draghi is from Goldman Sachs. I suspect that he believed that; once he got hold of the keys to the printing press, everything would be fine.
He tried to rescue all his banking buddies. When the bond market collapses, he is going to be very unpopular.

8/15 Household debt hits record high $13.29 trillion, led by mortgages, student loans – TM
8/15 Forget about Turkey. Asia is the elephant in the room – Talk Markets

The Asian leaders aren't near as stupid as Erdogan.
8/15 China banks bad loans surge most on record amid deleveraging – Bloomberg
The Chinese seem to gamble without conscience. The shrinkage in working population and, the shrinkage in world markets was never figured into the equation.
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