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Old 10-05-2018, 03:35 AM
Danny B Danny B is online now
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Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,383
Rising defaults

One of the major weak points of the Chinese economy is; They aren't really working for profits, just expansion. This makes them particularly vulnerable to slowdowns.
'Chinese companies with dollar-debts (liabilities) will watch it grow compared to their falling assets (denominated in the weakening Yuan). And with rising debt burdens always comes the higher risk of default.
Already 2018’s turning out to be a record year for onshore Chinese bond defaults. . .
Goldman noted that in the last two months alone – there were at least eight new defaults."
https://www.zerohedge.com/news/2018-...hit-new-record

"The House on Wednesday passed an $854 billion spending bill to avert an October shutdown, funding large swaths of the government while pushing the funding deadline for others until Dec. 7."
“Two pieces of deficit-financed legislation explain the vast majority of this increased borrowing – the Tax Cuts and Jobs Act of 2017 (TCJA) and the Bipartisan Budget Act of 2018 (BBA18). Looking at next year alone, TCJA is projected to add about $230 billion to the deficit, including its effects on interest costs and economic growth. BBA18 is projected to add another $190 billion. Other legislation, including to delay health-related taxes, provide for disaster relief, and fund the government, is projected to add about $30 billion.”

"Debt to GDP will rise to nearly 100% of GDP."
"In a word, what was a $20 trillion national debt when the Donald arrived in the White House is no longer. Now it’s barreling toward $40 trillion within the next decade."
https://realinvestmentadvice.com/deb...n-train-wreck/

"The Leahy Law provision of the 2001 Foreign Operations Appropriations Act (FOAA) (Sec. 8092 of PL 106-259) states:

“None of the funds made available by this Act may be used to support any training program involving a unit of the security forces of a foreign country if the Secretary of Defense has received credible information from the Department of State that a member of such unit has committed a gross violation of human rights, unless all necessary corrective steps have been taken.”
"Beginning in 2019, Washington will give Israel $3.8 billion annually for the next 10 years, $38 billion in total – plus countless amounts more on request."
https://stephenlendman.org/2018/10/1...-israel-daily/

"Wall Street banks are now collecting more from Los Angeles just in fees than it has available to fix its ailing roads."
Keep in mind that the gas tax money was sucked into the general fund to be handed out as welfare payments.
Los Angeles wants to have it's own bank for it's own money. The bankers are in a panic.
https://ellenbrown.com/2018/10/03/br...to-the-voters/

It looks like it's 'game on" now for Italy.
10/04 ‘Complete insanity’ of Italy debt plans may lead to huge restructuring – Reuters
10/04 Stocks fall as 10-year US yield hits its highest level in 7 years – CNBC
10/04 3 Important takeaways from the US yield shock – Zero Hedge

Powell will get something to break but, what will break first?
There is talk of breaking up the big banks.
https://sputniknews.com/us/201810031...-bank-breakup/
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