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Old 09-25-2018, 02:57 PM
Danny B Danny B is offline
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Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,599
Nobody knows where all the money goes

Regulatory capture allowed bankers to run to great excesses of exploitation. Now, that it is all falling apart, socialism raises it's ugly face. How convenient. It has always failed before but, it will be different this time. The surveillance state combined with the police state will make sure that we all conform and pay the state every penny that it demands.
China has never been reluctant to try new social experiments. Their one-child policy is a good example. Chairman Mao had a bunch of ideas that just didn't work out. China is now experiencing a huge amount of social unrest.
They have 200 million cameras and lots of AI watchers. They have 1 million in camps.
China has to print enormous amounts of liquidity to keep everyone employed. I think that Trump is counting on internal strife to bring down China.

The MICC would very much like to sweep an elephant under the rug.
"The report indicated that in fiscal 2015, the US army (with a budget of roughly $122 billion) had adjustments of $6.5 trillion."
"They found documents indicating a total $21 trillion in undocumented adjustments over the 1998-2015 period, of which $11 trillion were directly linked to the US Army."
"By October 5, 2017 they suddenly discovered that the link to the original OIG report “Army General Fund Adjustments Not Adequately Documented or Supported” of July 26, 2016 had been disabled. Within several days, the links to other OIG documents that had been identified in their search were also disabled."
“In late May 2018, a graduate student at Michigan State University found on the OIG website the most recent report for the DoD, which summarizes unsupported adjustments for fiscal year 2017. However, this document differs from all previous reports in that all the numbers relating to the unsupported adjustments were redacted. That is, all the relevant information was blacked out.”

"one of the Pentagon’s largest agencies couldn’t account for hundreds of millions of dollars’ worth of spending, (curiously just as President Donald Trump was proposing a boost in the military budget.)"
Trying to stave off deflation at every level.
" With the increased spending included in this year's National Defense Authorization Act (NDAA), the Pentagon will get to spend more than $700 billion next year."
Reportedly, U.S. GOV spends 24% of the GDP. Armstrong claims 37%. Imagine the deflation if this missing $ 21 trillion had not been spent.
The FED pumps money into financial institutions and, the MICC pumps money into defence jobs.

As more and more monetary inflation comes to light, there is less and less confidence in FED GOV. Armstrong said that FED debt would crash going into 2020. Investors all know this and, are staying away from auctions that mature in that time frame.
Remember that FED GOV locked him up for many years on bogus charges.

Jamie Dimon admits that Wall Street screwed us good but, we will get over it.
All the money has flowed into passive investment funds. This has reduced volatility because nobody is minding the store. It is expected that the "algos" will cause a meltdown in the next downturn because they only respond. They don't think. The system is NOT set up to deal with a return of volatility.

"During the Great Recession, the debt climbed to over 100 percent of America’s GDP as the government spent to stimulate growth. Now the Great Recession is over, but the national debt will top 105 percent of GDP this year. Politicians talk about reducing the deficit, but each deficit increases the debt.

To carry $21 trillion in debt as it grows quickly to $33 trillion means astronomical interest payments each year. The interest payment on the national debt last year (with low interest rates) was a whopping $263 billion, but it would grow to almost $1 trillion dollars a year by 2028, larger than the annual budget for Medicaid and larger than the defense budget. The current economic growth will not solve the problem; it won’t even pay for the tax cuts that just got approved."

Trump did a tax cut to buy some time. It will wear off in several months. He is hoping to be the last survivor when the emerging markets and Europe melt down. He has to drastically reduce military spending and, the MICC is fighting him all the way. He increases spending now because he knows that the money will never be repaid. The bid-to-cover ratio will continue to fall.
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