View Single Post
 
Old 03-13-2019, 04:30 AM
Danny B Danny B is online now
Platinum Member
 
Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,492
More speedbumps

MMT would essentially amount to printing up whatever money is needed for State expenses. Armstrong seems to equate this with a repudiation of FED GOV debt. I don't see this as necessarily true. Armstrong said that FED GOV would NEVER default on FED debt because so much of it is owed to foreigners.
Years ago, FED debt was bought by the BLICS. This included Belgium. Belgium had NO dollars to buy bonds. The other entity was the Cayman Islands. This is all hot CIA money. Following the BLICS came "households" and "Other" The FED would send a boatload of pixels to Great Britain and, GB would buy FED bonds. The argument that the U.S. GOV would never default is tenuous at best.
https://www.armstrongeconomics.com/a...allacy-of-mmt/
The bankers have gotten so used to creating the money supply that the froth at the mouth at the prospect of the Treasury doing it. One of the MANY reasons that JFK was killed was because he issued U.,S. notes. LBJ cut that off 11 days after JFKs death.

Greenspan warned of a housing bubble many years ahead of time. Reportedly, he claimed that the creation of the FED was a disaster.
https://www.zerohedge.com/news/2014-...d-dissertation


QUESTION: Marty, just reported this past week America’s trade deficit hit a record $891 billion
"ANSWER: What is reported as trade is not simply trade. The numbers are all screwed up. It tracks actual goods as well as services and that includes capital flows. The accounting system is set up in such a way that capital investment buying bonds, stocks, and real estate go into the Capital Account. However, all dividends and interest earned by a foreigner on US assets then are accounted for in the Current Account. It is the Current Account that people report as trade which is not correct because it also includes interest and dividends. Thus, the more foreigners invest in a country, the more it will erroneously appear to be expanding the trade deficit as interest and dividends flow back on their capital investment."

"Last week, Robert S. Kaplan – who heads the Dallas Fed – penned an essay titled “Corporate Debt as a Potential Amplifier in a Slowdown.”

You can read the entire essay here if you’d like. But it’s not necessary.

In short, Kaplan is worried about how much corporate debt there is since the global financial crisis. He’s also concerned by the huge deterioration in corporate debt quality. "
It's called "rollover",,,, and, play dead.
$9 trillion corporate debt bomb is 'bubbling' in the US economy
goldman warns of $1.3t of corporate debt maturing through 2020
Record Corporate Debt And The Next Financial Crisis:
S&P Global, U.S. Refinancing Study--$4.88 Trillion Of Rated
Corporate Debt Is Scheduled To Mature Through 2023

Most of this debt is rated so low that NOBODY will buy it. Armstrong is predicting a crash in January of 2020.

3/12 Syria vows to attack Israel unless it withdraws from the Golan Heights – Jerusalem Post
I have heard NOTHING from the Trump camp He refused to commit CENTCOM when Syria was re-taking it's lost provinces that were taken by the Saudi-israeli-american-British mercenaries. This will be a litmus test of just how much the chosenites control Trump.
A war in the Golan will definitely affect markets.

3/12 New York City could be about to become much more dangerous – NY Times
3/12 The tragedy of Baltimore – NY Times
3/12 20% of California community college student are homeless – Zero Hedge

A national disgrace. WE spend more per prisoner than we spend per student.

China, like the West allowed everybody and their donkey to create debt instruments. Evidently, they didn't keep good track of this.
"China watchers added another 40% of debt/GDP to the total when, as S&P calculated, China’s local governments had accumulated 40 trillion yuan ($6 trillion) - or even more - in off-balance sheet, or Local government financing vehicles (LGFV)"
https://www.zerohedge.com/news/2019-...ic-credit-risk

3/12 I’m so, so, so sorry: Baby boomer apologizes on behalf of his generation – NY Daily
What a crock of crab. It was / is the politicians who screwed it up. The District of Corruption demanded that the social security fund buy non-negotiable treasury bonds. Had they bought stocks instead, SS would have lots of money. BUT, the money was needed for wars so, SS has a drawer full of non-negotiable bonds. They pilfered every fund that they could find. It's not the boomers fault. They worked hard.
Kunstler has lots to say.
Ides and Tides - Kunstler
__________________
 
Reply With Quote