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Old 02-17-2019, 05:50 AM
Danny B Danny B is offline
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Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,435
Just how big can a bubble get?

Here is an excellent article on the "dimensions" of the bubble. I don't need to excerpt it. Every paragraph has astounding numbers.
Credit Bubble Bulletin : Weekly Commentary: No Holds Barred
An excellent article on the genesis of the income tax.
Peak credit and debt exhaustion are dragging down spending in the lower loop.

2/16 If socialism is so good, why are people moving away? – Miller

They DO have a plan,
This is a crosspost from Kunstler.****-nation/worms-turning/

Armstrong has his own perspective that is very much at odds with a non-investor.
China, "Aggregate Financing up $685 billion in a month. China’s banks made the most new loans on record in January - totaling 3.23 trillion yuan ($477bn)
Bank Loans expanded an imprudent $821 billion over the past three months alone, a full 20% above the comparable period from one year ago. Total Bank Loans expanded 13.4% over the past year; 28% in two years; 45% in three years; 91% in five years; and an incredible 323% during the past decade." Credit bubble bulletin You get the idea.

Here's what Armstrong has to say. " The Shanghai declined 1.37% today. The KOSPI and Hang Seng lost 1.38% and 2.03%, "
OK, Aggregate Financing up $685 billion in a month... 91% in five years
No mention that money creation is rising like crazy but, the markets are falling.
2/15 China’s loans hit all-time high as banks open floodgates in January – SCMP

Armstrong, "The states are broke. Their pensions are consuming everything. It is no longer about servicing the people, it is all about exploiting the people to fund themselves. "With every new tax, they simply reduce disposable net income, which in turn lowers living standards. This process is not sustainable."

Armstrong on gold, "Now with respect to why they have gold reserves, it is simply leftover and they would love to sell it but politically can’t right now. Because of the coming crisis in the euro, which they ALL see behind the curtain but will not speak about publicly, they are at a crossroad. The only currency they can respectfully hold remains the dollar. Both Europe and Japan have destroyed their bond markets. Central banks have been buying equities and gold BECAUSE they have little options but to diversify. "
So, gold is barbaric relic but, the CBs are buying the most they ever have. China just bought 11.2 tons.
The people who have lots of credit hate gold. The people who have no credit love gold. When the great reset hits, nobody will have credit. MOST of the world will have gold.
"They" are making moves to limit the phony gold markets.

Armstrong, "The FX market DAILY trading volume is about $5.3 trillion,which dwarfs the equities and futures markets no less oil and gold. Just look at the numbers."
He is arguing that gold and oil are of little importance in financial markets.
I give you dollars and, you give me Yen. Supposedly, THAT little bit of currency arbitrage is worth many billions every day.

2/16 What happens when more QE fails to reverse the recession? – CHS ZH
The suspicion is that "they" will go to negative interest rates.
2/16 Gundlach: corporate debt blowup will unleash “turmoil” in next recession – ZH I believe it.
LA Times - CA to sue Trump administration over national emergency declaration
2/15 Trump demands CA return $3.5 billion in funds for ‘disaster’ bullet train – CNBC
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