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Old 12-04-2018, 04:55 AM
Danny B Danny B is online now
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Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,856
No blinking in the FED and Italy,,,French taxes,,,Corporate debt smoking

The cheerleaders are desperately trying to keep the party going.
They said that the FED "blinked". No such thing. He said "we'll see."
This isn't the first time for this kind of thing.
Paul Volcker fought 10 percent annual inflation rates with contractionary monetary policy. He courageously doubled the fed funds rate from 10.25 percent to 20 percent in March 1980. June 1983: Inflation falls to 2.5 percent, after peaking at 14.6 percent just three years earlier.

Italy, 12/03 Italy caves to EU demands on deficit – Bloomberg When you read the article, it is a different story.
"ready to back down on their hard-line deficit target demands, newspaper Il Messaggero reported"
So, some newspaper said that maybe they would back down.
"Messaggero reported, without saying where it obtained the information"
They are trying to buy time for the hedge funds to dump Italian debt without starting a panic.
12/03 Mnuchin says China agrees to lower auto tariffs; Beijing silent – Bloomberg
Bloomberg again

Look at this graph. Enormous quantities mature in the next 2 years.
Yep, corporate debt is soon to start smoldering,,,,, soon to burst into flames.

Mises "It must come to an end sooner or later. For paper money and bank deposits are not a proper substitute for non-existing capital goods. Economic theory has demonstrated in an irrefutable way that a prosperity created by an expansionist monetary and credit policy is illusory and must end in a slump, an economic crisis. It has happened again and again in the past, and it will happen in the future, too.”
"created by a feckless Fed captured by Wall Street banks and corrupt Washington politicians who took Dick Cheney’s “deficits don’t matter” mantra to obscene levels, will end in another financial crisis. Our Deep State controllers have “solved” a financial crisis caused by too much debt by tripling down on more debt."

"The current artificial boom would have ended in 2018, but Trump’s massive tax cut for corporations, who used their windfall to buy back their stock at all-time highs, and reckless government spending increases directly into the pockets of the military industrial complex, gave the GDP one final burst."

"It will take a fall in America’s economic power, specifically the loss of the dollar as the world’s reserve currency, which will ultimately bring down the empire. That is what has neocons like John Bolton concerned.
Day of Reckoning

Unfortunately, until that time, the US will continue its rampaging ways. The day of reckoning, however, appears to be fast approaching and instead of a defeat on the field of battle, the US Empire will collapse under a mountain of debt."
"The treaty, signed in 1987, was a landmark achievement of the Reagan Administration which deescalated tensions between the two super powers and kept a lid on a costly arms buildup that neither can afford."
YES, but the MIC doesn't want a lid on arms spending.

That caravan of illegals is on the road for a very good reason.

" technology is now destroying jobs faster than it’s creating them? What if America has hit peak jobs?"
"Well, the notion that ‘jobs are how the rewards of our society are distributed, and every decent human being should have a job’ is becoming cultural technical debt.

If it’s not solved, then in the coming decades you can expect a self-perpetuating privileged elite to accrue more and more of the wealth generated by software and robots, telling themselves that they’re carrying the entire world on their backs,"

Paris protests: Emmanuel Macron orders PM to hold talks with 'yellow ... › News › World › Europe
2 days ago
"It’s also proving to be extremely tricky to defuse, as there’s no single protest leader to negotiate with.
. Demonstrators marched on Paris’s Avenue des Champs-Elysees two weeks later, triggering social unrest. Surprisingly, the protest is benefiting from a significant backing, with 84 percent of the French public calling it “justified,” according to Odoxa-Dentsu poll for Le Figaro."

Parallels to 2008,

"The REAL problem, the one that is going to crash the markets, is occurring in the BOND/ debt space, NOT stocks.

The US Corporate bond market is larger, more leveraged, and lower quality than it has EVER been in history.

Today, over 34% of ALL corporate debt is high risk.. as in JUNK… as in there is a HIGH probability the corporation will default on it.

Put another way, over $1 out of every $3 in the corporate debt market is going to be defaulted/restructured during the next downturn.

By the way, that downturn is already here. The Junk Bond markets has taken out its bull market trendline AS WELL as support."
"Consider that 50% of the Investment Grade (IG) bond market is rated BBB, the lowest possible credit rating within the IG space. And there is considerable evidence that much of this stuff is actually JUNK."
"even the IMF expects 20% of corporates to default in the coming months, you’ve got the makings of another 2008… only this time in corporate debt, not mortgages."

The ECB spent EUR 2.6 trillion and created 9.6 million jobs.
The FED created about 4.1 trillion for the State and, created several million jobs. $280 billion was lost to
"This Fed Policy Enabled the Fracking Industry's $280 Billion Loss"
China has been exporting unemployment but, this won't go on much longer.
Walmart will soon deploy hundreds of robot janitors to clean stores, the retailer announced on Monday.
Any questions?
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