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Old 08-24-2018, 02:55 PM
Danny B Danny B is offline
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Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,322
Slide in consumption,,, Amazon to replace the banks

So, the view count has passed 250,000
I suspect that it is mostly from non-members. All the government wonks who are wondering how much longer they are going to collect a paycheck.
For all you wonks who do not understand economics and energy; energy is the master resource. If we can't accomplish price deflation in energy, all prices will continue to rise. Price inflation always outruns wage inflation so, consumption will continue to shrink. This is temporarily papered over by money printing / debt creation. China has set a ceiling on global wages in many sectors. Automation has much the same effect.

"Since all the global 0 to 64 year old population growth is among the lower middle and low income nations of the world, a closer look at their situation is merited. In short, it ain't good. After rocketing higher from 2002 until 2014, the situation is really deteriorating as the growth of the high and upper middle breaks down...without the growing wealthier markets to export to or in need of greater capacity in low cost countries, the engine is stalling in the poorer nations of the world."

China appeared on the scene as a flash-in-the-pan that prompted a lot of consumption from low prices. BUT, after they had gutted the wages of their best customers, it all came crashing down. Credit / debt growth in China was beyond all rationality because the Chinese are such avid gamblers.

"The high income nations represent 64% of global income and the upper middle income nations another 27% while the lower middle and low income nations represent less than 9%, combined. Not coincidentally, these breakdowns of global income, per group, line up very closely with the percentage of global energy consumed "

As the higher-income nations slide down in consumptive ability, they reduce their birth rate. A new awareness in China and Asia is reducing the birth rate. This "new awareness" hasn't appeared in the stupid nations. Falling birth rates and the demographic crash are incompatible with growth of the debt bubble. Everything is being papered over for the short term.

U.S. bank profits have hit a new record.
"as we reported yesterday, there has been a sudden collapse in loan demand, reflecting rising interest rates even as banks loosened loan standards"

"The US credit card system siphons off excessive amounts of money from merchants, who must raise their prices to cover this charge. In a typical $100 credit card purchase, only $97.25 goes to the seller. The rest goes to banks and processors."
"The nightmare for the US financial industry is that a major technology company – whether one from China or a US giant such as Amazon or Facebook – might replicate the success of the Chinese mobile payment systems, cutting banks out."
"China processed a whopping $12.8 trillion in mobile payments in the first ten months of 2017." "More than 90 percent of Chinese mobile payments are run through Alipay and WeChat Pay, rival platforms backed by the country’s two largest internet conglomerates, Alibaba and Tencent Holdings."
"Alipay is free for smaller users of its platform. As total monthly transactions rise, so does the charge; but even at its maximum, it’s less than half what PayPal charges — around 1.2 percent. "

"The SF Chronicle casually notes in parenthesis, "By the way, the poop patrolers earn $71,760 a year, which swells to $184,678 with mandated benefits."
8/24 Italy capital flight is highest two months ever – Mish
Finance doesn't like the new lefties..
8/24 China spending push buoys debt sales, calls for new liquidity – Bloomberg China needs new liquidity to feed the tiger,,,,, so that the tiger doesn't eat the rider.
8/24 Loan demand suddenly tumbles as companies revolt to rising rates – Talk Markets
Wait, what about all the debt that the MUST roll-over?

8/23 China’s July grain imports plunge as tariffs on U.S. supplies bite – Reuters
Russia Is Exporting More Wheat Than Any Country in 25 Years ...

8/23 China again promises not to start currency war – Bloomberg That is AFTER they increased the money supply by 8.6%
8/24 Saudi economic war triggers Yemeni currency collapse – Mint Press Soon to be followed by a Saudi currency collapse.

Western banks will naturally attack Russia when the time seems right. Russia is moving to block that.
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