The Top 1% of Americans Have Taken $50 Trillion From the Bottom 90%—And That's Made the U.S. Less Secure
The money-renting business just became too crowded. There wasn't enough profit to go around.
The Graham-Leach-Bliley Act undid the Glass-Steagal Act that protected Americans from rapacious banks.
Slick Willy and Greenspan pulled that one off.
This opened the door for the banks to front-run EVERYTHING.
At the same time, a new operating system was needed.
Market Capitalism has given way to crony capitalism.
Regulatory-capture ensured monopoly control by the corporations.
This new operating system was given a blessing from the academics residing in FED-funded chairs at major universities.
C. H. Smith;
Global supply chain logjams and global credit/financial crises aren't bugs, they're intrinsic features of Neoliberalism's fully financialized global economy.
To understand why the global economy is unraveling, we have to look past the headlines to the primary dynamic of globalization: Neoliberalism, the ideological orthodoxy which holds that introducing market dynamics to sectors that were closed to global markets generates prosperity for all.
This is known as Neoliberalism, as liberalizing markets means opening up sectors that had previously been restricted. Neoliberalism holds that global market forces introduce efficiencies and opportunities that then pave the way for growth. Global market forces include not just new buyers and sellers of goods and services but the introduction of vast new markets for credit and risk that far exceed what was available in local marketplaces.
So far so good: opening markets creates efficiencies and prosperity, blah blah blah. But the real dynamic behind this happy-story shuck-and-jive is unprecedented prosperity for those with access to low-cost credit generated out of thin air by central banks.
In other words, introducing market forces leads to the dominance of those who control those forces --banks and corporations. Once a local economy is exposed to global capital, those with the most expansive access to the lowest-cost credit can outbid local buyers, snapping up the most productive assets and dominating the local economy to their own benefit.
Since the core mechanism of Neoliberalism is access to low-cost credit, Neoliberalism concentrates financial power and risk in a handful of financial nodes which every market participant unknowingly becomes dependent on.
The teleology of Neoliberalism--every human activity must be turned into a market exposed to global credit markets--cannot be reversed once a partially monetized (i.e., a loosely bound system) economy is fully financialized (i.e., a tightly bound system). There is no going back to a localized economy because global markets quickly replace decentralized local marketplaces with markets that are dependent on global chokepoints.
Tightly bound markets run supplies, credit and transactions through central nodes; there are few if any point-to-point links that don’t pass through a central node.
Tightly bound markets are thus exquisitely vulnerable to any disruptions in any node. This system may be optimized for profitability, but it is inherently fragile and prone to collapse due to the dependence of every point on tightly bound nodes: if one node fails, the entire system logjams.
To summarize: Neoliberalism generates systemic fragility by organizing what were once decentralized, redundant connections through credit/trade nodes controlled by elites. Global supply chain logjams and global credit/financial crises aren't bugs, they're built-in features of Neoliberalism's fully financialized global economy.
The unraveling we're witnessing is just getting started. The first dominoes have fallen, and there's no going back to the artificial stability that was sold as permanent stability. Instability and collapse are the inevitable result of the system's structure.
https://charleshughsmith.blogspot.co...nraveling.html
Announcement
Collapse
No announcement yet.
Economic pressures
Collapse
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Keep in mind that the insiders have the best financial information.
The markets are starting to roll over in spite of all the pumping.
The Smart Money Has Already Sold
Generations of punters have learned the hard way that their unwary greed is the tool the 'Smart Money' uses to separate them from their cash and capital...
Stocks Plunge, Commodities Tumble, Dollar Soars On Global Risk-Off Wave
Industrial Metals' Plunge Accelerates Amid Global Growth Scare
Stocks Panic-Bid Back To Unchanged After Ugly Overnight Session
Overnight,, huh?
One whiff of "taper talk" and the markets puke. The FED has to mop it up after hours.
Rabobank: Does The Fed Have The Intelligence To Prevent A Collapse
Frankly, if one does not laugh at the black comedy of the moment, one cries.
"This Is Not A Taper Tantrum" - Nomura Warns Of "Lurking Delta One" Collapse As Gamma 'Unclenches'
Fed Monetary Policy Hides Risk... Nothing More
Toyota Slashing September Production By 40%, Sparking Stock Crash And Risk Off Rout
Quick, tell the Taliban to buy more trucks,
Central Banks Are Now In The Endgame
This time will not be different...
8/19 Liquid cryptocurrency exchange hacked, more than $90 million stolen – CNBC
8/19 Fed’s Kashkari says cryptocurrencies are 95% fraud, hype, and noise – BI
8/18 The Fed is worried the rise of stablecoins could impact financial stability – CNBC
Yep, outlaw them and limit us to just a FEDcoin.
8/18 The constitutional questions on money need to be answered – GATA
NOT true. When your money is all created by debt creation, there is no future.
8/19 61% of Americans paid no federal income taxes in 2020 – CNBC
We're too poor to support the mega-parasite.
8/19 Get ready for a nationwide eldercare shortage on mandatory vaccines – CTH
Granny will die due to lack of staff.
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Blackrock is the new financial squid
https://www.globalresearch.ca/more-b...magine/5748159
Former Spook Warns This Is "One Of The Most Dangerous, Unpredictable Times In History"
"America's Elites are trash...China knows it..."
US Hemorrhaging Money From Entitlement Fraud & Waste
We can’t fix the social safety net by making it bigger and expanding the government’s reach...
Maybe not, but you can get more votes with more freebies.
President Xi Calls For "Redistribution Of Wealth" To Help "Expand The Middle Class"
Once a communist,,, always a communist
Here Comes Stagflation: Goldman Slashes GDP Estimate For Second Time In 3 Weeks, Sees "Bigger Inflation Surge"
Fed's Taper Talk Tanks The Dollar, Oil, & Bond Yields; Stocks Puke
"When All The Experts Agree, Something Else Is Going To Happen..."
“if everybody’s optimistic, who is left to buy?”
The FED, of course
Rabobank: 'Deadly Serious Season' Unleashing "Trumpian Earthquakes" Around The World
SoftBank Unloads $14 Billion In Tech Stocks After NASDAQ Gamma Squeeze
You can see why the FED has to print ever-more.
They must buy up every distressed asset
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8/18 Why the global economy is unraveling – Charles Hugh Smith
8/18 Fed’s Powell: there’s no returning to pre-pandemic economy – AP
8/18 Retail sales peaked in March and have declined ever since stimulus ended – Mish
Can't throw the transmission into reverse.
8/18 Blackrock and Vanguard could own almost everything by 2028 – FP
8/18 Just 30% of the poorest families have a savings account – CNBC
8/18 Palantir purchases $50 million in gold bars as cash pile grows – GATA
"When the spooks tell you a false flag is coming, a false flag is coming."
8/18 Financial times: Believe in unicorns, not gold – GATA
Is Afghanistan The Thread That Unravels Western Dreams Of A "New World Order"
The drama playing out in Afghanistan right now has enormous implications for the entire planet, because it represents a colossal defeat for western globalists...
Businesses Are Refusing To Enforce France's Vaccine Passport
...anecdotal evidence suggests it might have been one big bluff.
Egypt's Bread Subsidies May Bring Millions To The Brink Of Starvation
...Relying on the state for food is a bad idea...
Pepe Escobar: The 'New Great Game' In Eurasia Has Just Been Reloaded
The US 'loss' of Afghanistan is a repositioning and the new mission is not a 'war on terror,' but Russia and China...
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"Panic" As Afghani Crashes After Central Bank Chief Flees, Says No More Dollars Left
US Treasury Freezes Billions In Afghan Reserves, Depriving Taliban Of Cash
Kyle Bass: China To 'Move In Under Security And Diplomatic Guise' To Pilfer Afghanistan's Trillions In Minerals
"Afghanistan is plagued with the curse of plenty. They have, we think, upwards of $3T worth of minerals..."
Afghanistan imports 34% of their food.
You can bet that the West won't release any of their reserves.
They won't be able to buy any food, except possibly from China.
China doesn't have enough food for themselves.
USDA Crop Tour Warns: Megadrought Impacting Corn And Soybean Yields
This is all over the world.
The Afghan army just rolled over and, let the Taliban in.
Once the starvation sets in, they may regret not fighting.
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The great Keynesian coup of August 1971: fifty years later – Mises Institute
What Trick Did Tricky Dick Pull 50 Years Ago Today?
In the summer of 1971, gold was leaving the treasury at the rate of 100 tons a week.
The inception of the welfare-warfare State had destroyed the value of the dollar and, everybody wanted gold.
That was NOT Nixon's fault.
The straw that broke the camel's back;
"British ambassador to the US. the 3rd Earl of Cromer, a.k.a. George Rowland Baring, showing up at the US Treasury offices in Washington D.C. on 12 August 1971 and demanding that US dollars held by Britain be converted into gold."
https://www.zerohedge.com/news/2021-...ed-gold-window
Nixon closed the gold window and, stiffed the London bankers.
He was subsequently impeached.
By definition, the Bretton Woods system was destined to end in this way, as described by Triffin's paradox.
By definition, the nation that issues the international reserve currency MUST run a deficit. Otherwise there won't be enough reserves for the rest of the world to use.
So it doesn't matter whether the deficit is caused by too many imported washing machines; or too high salaries for domestic Fred Flintstone-type factory workers; or (the real reason) LBJ's Guns and Butter policies - it's going to die regardless.
It's actually a mirror for what happens on a smaller scale at the national level - in any debt-based monetary system, if you pay off all the debt, you actually destroy all the money in the process - and as such, there must always be debt in order for the system to stay intact and function.
https://www.zerohedge.com/news/2021-...ed-gold-window
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The Chinese economic miracle depended on growth, rather than profit. Growth is gone, partially due to lockdowns.
"Our Prices Cannot Fall, Otherwise There Will Be No Profit At All": China Now Caught In Stagflationary Vice
"We don't dare to increase our prices...but our prices cannot fall, otherwise there will be no profit at all,"
The world has had a huge inflationary splurge.
China lead the way. Debt-to-GDP is at 300%.
There isn't enough profit to service the debt.
https://www.dollarcollapse.com/borrow-money-china/
China has cut back on credit creation.
ALL bubbles revert to the mean.
The CBs are trying to avoid having the credit engine slammed into reverse.
Neo-liberal economists IGNORE private debt when looking at economic statistics. If the private sector is credit constrained by excess debt, the public sector is supposed to take up the slack and, suck up credit.
https://www.zerohedge.com/economics/...omy-unraveling
The State is supposed to borrow until the cows come home.
The State prints liquidity, gives it to the banks,, then borrows it.
"Banks in the United States currently hold $2.4 trillion in excess reserves"
Dear Fed: are you insane? – Charles Hugh Smith
8/16 Marc Faber: investing for the end of the world as we know it (video) – Wealthion
The government is flat broke and, sliding into the abyss.
On the way down, they are grabbing at anything and everything that they can find.
Feds accused of seizing $85 million from safe deposit boxes without 'any legal basis'
Class-action suit claims FBI exceeded its search warrant and is forcing renters of boxes to prove their innocence.
U.S. law enforcement took in more than $5 billion from the American ... Criminal asset forfeiture occurs when government seizes private ...
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The Davos group is using the threat of global warming AND the plandemic to destroy as much of the economy as possible.
I would say that CB head Powell is an accomplice. What else can he do? They are talking about replacing him to get somebody who is more aligned with the values of the democratic party.
The Cloward-Piven strategy calls for total destruction of the economy. The WEF calls for the same.
Both groups call to "build back better".
The demonic party is bringing in millions of immigrants to guarantee some kind of future majority.
The WEF plans to kill off ALL of them.
Finance, insurance & real estate is the FIRE economy. It produces nothing so, must survive by sucking blood from the producers. Thus has always been done using the inflation tax. 5 year old number; 98% of the gains in the stock market are from money printing. This robs from the producer but, regulatory capture ensures that it continues. The State is also a parasite so, it isn't going to stop the growth of the inflation tax.
All these parasites are deathly afraid of economic growth going into reverse and, bringing deflation. This would bring the closure of every financial institution.
Greyerz: We’ve Entered The Dangerous Period And Final Endgame For The Global Financial System – Here Is How Much Time Is Left
https://kingworldnews.com/greyerz-we...-time-is-left/
Greyerz laments that the States and central bankers never learn.
All the war mongers, parasites and, non-producers are aware of the eventual outcome. They hope to make a financial killing in the interim period between collapses.
We constantly hear the mantra "this time is different" It NEVER is. BUT, this time actually IS different.
There is a global push to effect population reduction by attacking all of the economy and society.
Ousted Afghan President Fled Country With Cars, Helicopter "Stuffed Full Of Cash"
Eyewitnesses said "some of the money was left lying on the tarmac"...
Stocks, Bond Yields, & Black Gold Tumble At US Open
...and gold is back above flash crash highs, erasing post-payrolls losses.
Rabobank: When The Penny Drops It Will Be You And Your Portfolio On That Kabul Tarmac
And a year from now can become six weeks can become 72 hours can become Sunday afternoon. When markets are closed.
Empire Manufacturing Survey Crashes In August, Prices Soar
Outside of last March and April's collapse, this is the biggest drop in the Empire Manufacturing sentiment ever.
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Better watch now because it is a 24hr preview from UNITEDNETWORK.NEWS Talking about former President Trump and his late moves.
https://www.unitednetwork.news/conte...-Force-Meeting
Last edited by BroMikey; 08-16-2021, 04:56 AM.
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"I’ve witnessed scores of spectacular booms and busts during my career. I’ve witnessed nothing comparable to China’s Bubble. The world should be panicky. Instead, there is near absolute faith in the Beijing meritocracy.
Late-eighties “decade of greed” excesses were incredible – until they were completely overshadowed by the “roaring nineties”. I thought 1999 was a once-in-a-career experience. The 2008 mortgage finance Bubble collapse destroyed the myth that Washington had everything under control. Yet we’re now into the 13th year of the global government finance Bubble. Especially since the pandemic crisis response, manic excess has gone off the rails. The world should be panicky. Instead, it’s all business as usual, with near absolute faith in the power of central bank QE."
There you have it; government finance.
"I have posited that the great vulnerability of contemporary finance is that it doesn’t work in reverse. It appears miraculous, so long as finance is expanding and asset prices are inflating"
https://creditbubblebulletin.blogspo...certainty.html
As Main Street Confidence Crashes, Wall Street Is The Most Bullish In 20 Years
China has decided to cut back credit growth
https://www.youtube.com/watch?v=kjLOP1oFdqk&t=73s
We will soon learn just what effect the China slowdown will have.
Meanwhile, all Western GOVs are flat broke.
8/15 Summers says ‘bizarre’ for U.S. to borrow so much in short-term – Yahoo
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China: The Regime's Managed Economy Is Stagnating
All command economies crash.
Woke Nonsense Is Warping Everyday Life
If we don't wake up from wokeness, we will continue on our sure trajectory to self-inflicted, systemic paralysis... followed by civilizational collapse.
Even In Their "High Earning Years", Millennials Saddled With Debt Aren't Making Enough
The Federal Reserve Bank of St. Louis found in 2019 that debt-to-income ratios for millennials were 23% higher than expected.
50 Years After Nixon Ended The Gold Standard One Bank Asks "Can We Continue To Do This?"
"G10 central bank balance sheets have increased from just below $5 trillion in 2007 to just below $30 trillion today. So we’ve milked the flexibility of fiat money for 50 years to solve our real time problems and kick many cans down the road."
Supply-Chains Brace For Collapse: Port Of LA Fears Repeat Of "Shipping Nightmare" As China Locks Down
The existing shortages will get much worse.
"A Sudden Negative Change In The Economy": Consumer Spending Slides As Majority Now Expect A New Slowdown
“We were slowly ramping up in anticipation of a robust third and fourth quarter. You can drop the ‘ro’ part. It seems like it is just a bust.”
20 Years Of War In Afghanistan Has Cost US Taxpayers Over $2.2 Trillion
Maybe so but, "it was worth it" to the war mongers.
The Data Shows The Fed Is Behind The Surging Wealth Gap
... the Fed’s financial engineering fueled the demand for speculative risks by those with capital but left most American families behind...
"Transitory"? Pelosi Boosts Max Staffer Pay By 15% To $200K
I'm sure that they earn every penny of that.
Rabobank: Very Soon Our Comfortable Market Narrative Will Collapse Like A House Of Cards
Until those cards come tumbling down, we can cling to our comfortable delusions supported by comfortable theories and comfortable gibberish, peddled by comfortable people in comfortable jobs, with comfortable pensions or comfortable after-dinner speaking fees
Where There's Fire There's Smoke
Specifically, a total of 10 Hindenburg Omens have triggered on the Nasdaq over the past six months, a level that has regularly warned of significant stock market turbulence ahead...
8/13 The Biden inflation tax, made clear in one chart – Real Clear Politics
The State has made it very clear. They are going to print for every problem.
This is kicking the can because printing causes a whole new set of problems.
https://www.youtube.com/watch?v=fDf24HkFXKE&t=1020s
Portland Begs Police to Come Back, But Nobody Even Applies | No Refunds After Defunds
https://www.youtube.com/watch?v=CuwwPcQSPrI&t=361s
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