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Old 01-09-2019, 04:57 AM
Danny B Danny B is online now
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Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,281
Debt as far as the eye can see,,, killed by ZIRP

As communication speeds up, changes in confidence speed up.
Michael Pento, " The bond bubble continues to build and become a dagger over the worldwide economy and markets.
The amount of publicly traded debt in the U.S. has soared to 58% of GDP. This is up from 29% in 2007 when the U.S. 10-year Note was yielding 5%. The Fed is now selling $50b of bonds each month, with an extra $7.8T in publicly traded debt that it doesn’t own; and that equates to nearly 2x the amount of debt compared to GDP than what existed just prior to the Great Recession."
"This debt must now be absorbed by the private market and at a fair market price, instead of just purchased mindlessly by the Fed…and yet yields are still falling. This means investors are piling into sovereign debt for safety ahead of the global economic crisis even though they understand that debt is, for the most part, insolvent."
At one time, They" claimed that the BLICS were buying the debt,,, even though Belgium didn't have any dollar reserves at all. Later, They claimed that American households were buying up all the treasury debt.

"Meanwhile, the nucleus of the next credit crisis (the leveraged loan and junk bond markets) implode; as corporations need to roll over more than $800 billion of debt at much higher interest rates this year."
"My Inflation/Deflation and Economic Cycle Model has 20 components. 19 out of 20 indicators are indicating we are about to enter into a recession. Only initial unemployment claims remain at a positive level."
"sovereign debt skyrockets at an even faster pace than the breakneck speed witnessed since the Great Recession. In this same vein, in the U.S. the federal budget deficit surged to a record for the month of November to reach a negative $204.9 billion" ,,,,, ?X 12?
"This massive increase of $70 trillion in debt since 2007, which adds up to $250 trillion globally, must now rely on the support of investors instead of the mindless and price insensitive purchases of central banks. "
Yeah, right.
"The total value of the market could drop by 25% and still be at a valuation level that is equal to 100% of GDP. And that assumes GDP doesn’t drop. But at 100% of GDP the market would still be, historically speaking, about twice as overvalued as it was from 1974-1990. Hence, I predict the worst of the stock market is still very much in front of us."

"And finally, 2019 will be marked by a conflagration in our government. The year will be marred by budget showdowns and shutdowns, debt ceiling brinksmanship and indictments from Special Prosecutor Robert Mueller. Those hoping for cooperation between Democrats and Republicans on things such as a massive debt-funding infrastructure spending package to save the economy will be greatly disappointed"
"Household net worth (think real estate and equity portfolios) as a percent of GDP reached over 525% at the start of Q3 last year. According to Forbes, the average for that figure is 380% going back to 1951."

ZIRP is never done because it is so destructive. ZIRP allowed the banks to collect $400 billion a year in interest differential between what you pay and, their free money.
ZIRP allowed Obummer to really run up the debt. So, both the banks and the State benefited. BUT, it destroyed the pension funds, et al who depend on interest income. There will be no recovery for them.

"This is the year that mounting hammer blows to the Western alliance system and the edifice of global governance threaten to bring the old order tumbling down."
Trump is swinging the hammer.
"urasia says President Donald Trump should take a large share of the blame for the state the world finds itself in. CREDIT:AP"
"Pax Americana is unravelling. The transatlantic concord underpinning the West since the Fifties is dying. Nato, the G7, the G20, the WTO and the EU are all in varying degrees of crisis."
"transatlantic concord" was a euphemism for endless war to benefit our masters.
"Anti-liberal strongmen are tugging away at the edges in Turkey, Brazil and Hungary. Some in the twilight zones of the democratic world are drifting -towards the Putin-Xi camp."
Anti-liberal, my arse. Anti war and anti cultural destruction.
"The West is shutting out Chinese manufacturers of 5G high-speed equipment. Digital globalism is in retreat."
About that 5G,

"Donald Trump is - in Eurasia's view - the central catalyst and accelerant for much of what is going wrong in the world. It starts at home in Washington.

"Damage is being done to the legitimacy of democratic institutions in the world's largest economy," it said."
Legitimacy of mass murderers.
"Europe is in no fit state to step into the leadership vacuum as America turns its back on the liberal alliance system and nexus of shared values."
Our shared values are with the European people, NOT the European leaders.
"Yet the drift of events is clear. The Western liberal order we took for granted at the end of the Cold War is under existential threat."

Just tell the middle class that they are the upper, rich class. Then, you can justify increasing the snot out of their taxes.

"This is one of the issues I have pointed out in discussions in Washington and it has gone back to the Federal Reserve and is one of the reasons why the Fed has been raising rates. They MUST get them back to normal levels in interest rates or debt is really dead. Insurance and pension funds along with some banks have gone into the property markets and emerging market debt to compensate for the low interest rates.

I have been warning that the European and Japanese central banks have DESTROYED their bond markets. There is NO BID and capital has rushed off into other areas."
"The last Documentary film I did was on this very crisis of destroying the bonds markets. The central banks were buying the government debt BECAUSE nobody else would at such low levels! "
So, let all the sovereign bond markets crash. That will stop the welfare-warfare State model.

En Mexico, es dicho, "un trabajo sin oportunidad robar no es un buen trabajo."
"A job without opportunity to steal is not a good job."
The State run oil company in Mexico suffered $3billion in losses from theft of fuel. 80% of it was stolen by employees.

Here is a good article on Macron. He is on a mission to destroy France,
1/08 Sears plans to shutter after 126 years in business – CNBC
Destroyed by corporate raiders.
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