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Old 03-08-2019, 06:10 AM
Danny B Danny B is offline
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Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,492
ECB and Italy,,,Netanayahoo going down at last,,, lies from Armstrong

There is a lot going on but, nothing of special note.
Italy is going to dump it's debt and pull out of the EU. The ECB was the only entity buying Italian debt. Draghi ended bond buying to try to bring some confidence back. The Italians plan to default.
3/08 ECB warns slowdown isn’t temporary: Draghi announces bold stimulus – Mish
My, isn't he bold. His term ends shortly. après nous le déluge.
Italy has a plan "B"
Italy joining China’s new Silk Road raises eyebrows in Washington
BRICS bank to issue loans of up to $40 billion by 2022

Italy plans to suck up to whoever has cash.

Armstrong, Private Blog – Euro Crash
Posted Mar 7, 2019 by Martin Armstrong

PRIVATE BLOG – Euro Crash Private blog posts are exclusively available to Socrates subscribers.
EU SHOCK PREDICTION: Eurozone will BREAK UP in 2019 amid ... › News › World

Jan 2, 2019 - EU SHOCK PREDICTION: Eurozone will BREAK UP in 2019
EU on brink of FINANCIAL TURMOIL: Bloc TURNS in dire economic ... › Finance › City & Business
Jan 5, 2019
I fear that the Europeans are going to have a big drop in their standard of living. You French get special mention. Your debt is higher than the Italian debt. Worse yet;
3/07 Truly not getting it: French president Emmanuel Macron’s manifesto – Mish

France has laid a new tax on a few mega companies. This will DEFINITELY blow up in their face.

Long article but, what it boils down to; The European bond market si pretty much destroyed and investors are going to gold.

The tide is finally turning against israel. It's about time. Netanayahooo has been indicted for corruption but, says that he is not leaving. He is at least as bad as Dick Cheney. Israel has what they call, "the Samson option". They have threatened to nuke ANY State that does not go along with they demands. They have made it very clear that they include Europe as well. Netanayahoooo may have taken his threats too far.
Israeli Navy ready to block Iranian oil exports in transit – Netanyahu
This isn't a threat against Iran. It is a direct threat against the West and Japan.

A century ago, a hard rock miner had to find <3 ounces> of gold per ton of rock to make it worthwhile. Today, a mining company can survive on 3 grams per ton. The same is true for agriculture. As more machinery and more carbon energy were applied to agriculture, yields went WAY up. OAC talks about getting rid of fossil fuel usage. So, we all go back to farming by hand with no tractors. She shoots her mouth off without ever considering the effects of her so-called policies.
Bob Dylan,

You're going to hear a LOT of lies about MMT. Here is Armstrong with additional lies

"That book all focuses on the elastic creation of money and puts all the blame on the Fed and bankers. I understand that central banks have been demonized and the great conspiracy centers around their ability to create money. Creating money is not really the issue for the amount they have created is peanuts compared to the continued debt created by politicians. Congress just created $1 trillion-plus in December 2015 and nobody noticed."
Yes, the money created by the FED is peanuts. He lumps the private bankers in with the FED. The private bankers have created endless $ trillions. Much of it at the behest of the government
"You now have people proposing the Modern Monetary Theory (MMT or Modern Money Theory) because they have witnessed central banks increasing the money supply post-2007 and have been unable to create inflation."
In 2007, the stock market was at 13,178. Now, it is at 25,473. The inflation was all pumped into the upper loop to keep ALL the bankers and speculators from going broke. The stock market grew,,,, currency inflation bled over into the lower loop, while wages fell.

"The approach of MMT typically seen as an evolution of Chartalism and is sometimes referred to as Neo-Chartalism. They argue that in sovereign financial systems, banks can create money but these “horizontal” transactions that do not increase net financial assets as assets are offset by liabilities. "
What a crock of crab. The entire bond market is counted as an asset. BUT, it is pure debt. When you buy stocks, you are buying future earnings.. For most companies, there are no future earnings. CURRENT government printing is the only thing holding stocks up to their current valuation of 2.6 times historical prices This is MMT in everything but name..

"In MMT, “vertical” money enters the economy through government spending. Since money is legal tender meaning the government accepts it for taxes, this creates the demand for currency. You need the paper dollars to pay the government its pound of flesh."
Another half-truth. We need money for commerce.

"Because the government can issue its own currency at will, under MMT it is argued that the level of taxation relative to government spending is, in reality, a policy tool that regulates inflation. Therefore, under MMT, the dreams of Bernie Sanders making everything free becomes possible."
True, control is necessary. When millions of elderly can not afford to eat, a basic income will be very important.
"We need central banks as a clearing mechanism and to maintain reserves of member banks."
NOPE, that can all be done by the Treasury

"The destruction of the central bank resulted in the Panic of 1837 and the sovereign defaults of the states during the 1840s that occurred after the states had issued debt in an attempt to bailout state banks that went nuts without a central bank to control anything.
You ended up with banks creating their own money and they would print notes and sell them at a discount to brokers in New York"
So, the problem was the private banks.
"The wholesale creation of money did not work well "
This was NOT money. It was private bank debt notes.
So, evil president Jackson destroyed the central bank and private banks ran wild. 1913, we got the FED. 16 years later the economy crashed.
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