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  • Danny B
    The rising cost of ransomware

    Very quiet at the moment. There are still a couple of things to write about.
    Man proposes,,, god disposes. Competing States keep raising their capabilities for war-making and competition. MUCH of the competition between States is for economic reasons. Many States AND independent actors are turning to cyber warfare instead of kinetic warfare. Their actions are often untraceable. Who are you going to retaliate against?

    The latest release of hacking tools from "vault 7" has spread around the world.
    "One reason WannaCry has proven so vicious? It seems to leverage a Windows vulnerability known as EternalBlue that allegedly originated with the NSA. The exploit was dumped into the wild last month in a trove of alleged NSA tools by the Shadow Brokers hacking group."

    Reportedly, the latest attack hit 74 States, Cyber attack spreads across 74 countries; some UK hospitals crippled | Fox News
    The problem is; ransomware is a GREAT business plan. It makes lots of money so, it will continue and get bigger.
    1. Cybercrime will cost the world $6 trillion annually by 2021
    2.We will need to secure 200 billion “Internet of Things” devices over the next three years.
    3. “Cybercrime is the greatest threat to every company in the world.” — IBM CEO Ginni Rometty.
    " $6 trillion annually"
    " You don’t even have to open the email for the hackers to get into your system. Your PC’s malware scanner will activate the virus when it automatically inspects it."
    Shadow Brokers stole 234 megabytes of data from the NSA. What chance do the rest of us have? What about all the other back-doors that NSA, et al have inserted?
    Last edited by Danny B; 05-13-2017, 04:02 AM. Reason: mistaeke

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  • Danny B
    The Marxist road

    Europe is headed for BIG trouble and the election of the Macaroon in France highlights the problems. The European Monetary Union was formed knowing ahead of time that it would crash without a debt union. Now that it is at the edge of the abyss, the Marxists roll out the plans for Eurobonds.
    Because of favorable trade laws, Germany has a current account surplus of about 900 billion Euros. The EU has a great plan to load up Germany with the debt of the failing economies.
    The old economies of Europe were like a big barge floating down the Rhine. Globalism and digital capital have facilitated instant transfer of capital. NOTHING is stable. The new economies are like a kayak rather than a barge. any little thing causes an upset. Consider Germany; it has an enormous surplus, actually ILLEGAL under EU rules BUT,

    "I have warned that about 50% of the German municipalities are on the verge of bankruptcy. The pensions have been unfunded and are absorbing everything."
    "German municipalities face rising debt levels that mimic Greece. They cannot afford the investment to even maintain schools and roads any more. We are headed into an economic abyss beyond contemplation. And people worry about hyperinflation?"
    2014 It's only gotten worse.
    The economic system is like a kayak. Nobody can stand up.

    Back to the Macaroon.
    The Marxists are celebrating his election but, they expect him to roll over and hand ALL control of France to Brussels.
    The Marxists and the bankers are in agreement; RAISE THE SNOT OUT OF TAXES. They say that they need 10% of your money to improve things,
    Consider GOV to be an enormous mass of bureaucrats. Their full-time job is to squeeze out funding for their salaries. Everything else if secondary.

    Macaroon is the darling of the Marxists and was quickly groomed when it appeared that Hollande was going down.

    Merkel is a communist, of course BUT she isn't in any hurry to fork over Germany's wealth to the macaroon.

    5/12 China stocks are tumbling again. Unlike 2015, world doesn’t care – Bloomberg
    5/12 The troubling truth behind China’s banking ‘recovery’ – Nikkei
    5/12 China bond yields invert for the first time on record – MarketWatch

    SO, China is flying under the radar at the moment. Give it a few days.
    5/12 US gold exports to China and India surge in 2017 – GoldCore
    Another way to look at this; the U.S. is importing more and more dollars from India and China.

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  • Danny B
    What happens to the debt load?

    America has public debt overhang of $20 trillion. With $212 trillion of unfunded liabilities, we can expect the debt overhang to grow. Our trade deficit is about $45 billion a month. Globalization has brought VERY low profit margins and very low wages. The old debt that we have been carrying and rolling over for decades can no longer be serviced by our new, low earnings. We just roll it up higher and higher by printing new debt to service the old. Nobody wants to be paid with U.S. Treasury notes so, nobody buys them.
    I do not understand how we are paying for our imports if nobody will take treasury notes. I don't believe that we have enough gold left to settle trade imbalances UNLESS somebody is manufacturing elemental gold.

    Our debt must necessarily grow but,,, how... and to who will we owe it? The EMs have borrowed tons of money,,, maybe they figure on not paying it back.

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  • Danny B
    Puputovs, MMT,, poor Italy

    Well, the proverbial $hit is flying in Venezuela, Venezuelan Protesters Unleash 'Poop Bombs' As Currency Collapses 99.5% | Zero Hedge I feel real bad for the Venezuelans. Many of them are going to die. If they took all the effort they spend protesting and used it to do gardening, they would be much better off.

    Italy is following Greece because the eurocrats refuse to deal with reality. A lot of Italians are going to die. In Bleak Prognosis, Italy’s Financial Regulator Threatens EU with Return to a “National Currency” | Wolf Street
    An article on modern monetary theory

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  • Danny B
    Money, wealth and gold, FOFOA

    This post not only calls for quite a bit of reading, it calls for quite a bit of thought and understanding. There were 3 writers over a period of a few decades who had an inside window to gold AND a serious understanding of economics.
    Another, Friend of another and Friend of friend of another. The following article if from FOFOA. He continues a tradition of fantastic insights into economics. You should read the whole article. It's long. The only thing better than a good book is a long, good book. The article centers on Money, gold and wealth. You have to read it slowly to let some of the foreign concepts sink in.

    "The debt built up from all of the past, unfree, protectionist old world trade is killing the transition. (to digital currency)
    The policy is to sell free trade and the narrow margins it produces as they shut down entire economies because the low profits cannot service the old debt.
    This brilliant, modern free trade system and all of its benefits cannot be implemented using the US dollar as a reserve currency.
    Government guarantees would require the treasury (and Fed) to print unbelievable amounts of new currency to cover the unserviceable debt that Free Trade would create!
    Back in 2014, I wrote a series of three very long posts, Fiat 33, Dirty Float and Global Stagnation, which explained, at length, my view of the future monetary system I call Freegold, which, ironically I think, has almost nothing to do with gold. Excellent articles to read.

    Please see Moneyness and Moneyness 2: Money is Credit for more on this subject More EXCELLENT information.
    Building upon FOA, I tend to think of three spheres of trade in which the ancients would have engaged each other. The three could be described as distant, local, and "among trusted acquaintances" or what we could call "super-local". As FOA explained, gold was best suited for distant trade, and, therefore, gold was always "On the Road,"
    1. Gold was not money, in fact it was practically the antithesis of money in ancient times. If you understand that money was credit, and that credit was used proportionately at the local and super-local levels, gold was the tradable wealth item used where money (credit) couldn't be used, over long distances between strangers.

    "To understand gold we must understand money in its purest form; apart from its manmade convoluted function of being something you save. Money in its purest form is a mental association of values in trade; a concept in memory not a real item.
    Let me repeat, to be perfectly clear. I think that gold gets its value today, its real value, which will be apparent come Freegold, from the way the Giants (LARGE holders of gold) use it.
    That 52,000 tonnes of new gold (has gone underground,,, disappeared)
    Here's what the above means to me. There is a hidden level of demand for physical gold which is virtually infinite.
    In total, adding up all twenty years in the table above, that's $1.38 trillion that bought up the new supply coming out of the mines, and I'm suggesting that money (actually around 95% of it) did not come from one of the known sources

    Money is essentially the antithesis of wealth. A balance in the monetary plane represents an unsettled imbalance in the physical plane.
    We can theoretically have balanced trade without being an island of self-sufficiency. It feels odd including the word "theoretically", but we haven't had balance in so long, it almost seems necessary. Again, this is the basic idea, to head toward balanced trade. The problem is that the 40 straight years of trade deficit need to be settled before we can have balanced trade.

    We have run a trade deficit every year since 1975, and just like coins have two sides, there's a flipside to a trade deficit too. That flipside is that we've been exporting dollars every year since 1975, net-exporting that is. And as I mentioned above, money is essentially the antithesis of wealth, a balance in the monetary plane represents an unsettled imbalance in the physical plane, and for 40+ years, the rest of the world has accumulated a huge balance of dollars which represents an unsettled imbalance between us and them.

    "The only thing that kept this process from showing up in the prices of everyday goods was the support other Central Banks showed for our currency through exchange intervention. As I pointed out in my other writings, this support was convoluted at best and done over 15 to 20 years. Still, it's been done with a purpose all this time. That purpose was to maintain the dollar for world economic trade, without which we would all sink into depression…

    We got here, of course, because the dollar was used globally for many decades, so it wasn't exactly like using our own currency. It was the world's currency, so it was okay in a way that we became "Financial Island" for the dollar. The problem is the vicious circle that created, leaving us with no escape other than currency collapse.
    You need to get competitive again (both Obama and Trump get this), but you can't until all this debt is either settled or wiped out through currency collapse (this is the part they don't get), and there's no chance it will ever be settled in real terms at today's prices. So you're stuck, or as FOA put it, "it's the dollar that's caught in a vice."

    In our time and for the first time in the modern US dollar history, the US will embark into a classic hyperinflation for the sake of retaining its own lessened dollar for trade use. As destructive as that might be to players in this financial house, it is better than immediate total economic failure.
    The debts and the dollars would remain; only 90% of their current illusion of value would vanish."
    Oh we'll get there alright, the only part that might surprise a lot of people, President Trump included, is that 40+ years of debt will be wiped out through currency collapse along the way. But get there we will! ;D
    Modern money is fine. Repair the concept of wealth at the personal level, and everything will be fine.

    FOFOA: Money or Wealth?

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  • Danny B
    China right on track for default...Systemic meltdown in Europe

    The wealth in China is underpinned by commodities. 5/11 China iron ore prices crash through key support to 6-month lows – Zero Hedge
    So, what to do when commodities crash?
    Simple !!! Borrow more money,
    If you are looking for some humor, GOV is ready to provide it. Keep in mind that the day before 9/11, GOV reported that $ 2.7 trillion was missing. Since then, several more $ trillions have simply gone missing. GOV has now created a website so that Joe average can track every dollar of GOV spending.
    For The First Time, You Can Track Every Dollar The Government Spends | Zero Hedge

    In France, the newly elected Macaroon is the anointed darling of the Rothschilds. Emmanuel Clinton and the revolt of the elites | Asia Times
    This is an act of desperation. Nothing can save the Euro.
    "Contrary to global perceptions, the biggest issue in this election was not immigration, it was actually deep resentment toward the French deep state (police, justice, administration) – perceived as oppressive, corrupt and even violent."

    I can't forget Kunstler;
    "Europe’s economic fate may be determined by forces far away and beyond its power to control, namely in China, where the phony-baloney banking system is likely to be the first to implode in a global daisy-chain of financial uncontrolled demolition. Much of that depends on the continuing stability of currencies."
    "The trouble is they are all pegged to fatally unrealistic expectations of economic expansion. Without it, the repayment of interest on monumental outstanding debt becomes an impossibility. "
    "Consider, though, that what you take for the drumbeat of nationalism is actually just a stair-step down on a much-longer journey out of the globally financialized economy. Because the ultimate destination down this stairway is a form of local autarky that the current mandarins of the status quo can’t even imagine."

    "That journey has already begun, though neither the public nor its elected leaders, have begun to apprehend it. The first spark of recognition will come in the months ahead when the current cover story on markets, “money,” and growth falls away and political leaders can only stand by in wonder and nausea that the world has the impertinence to change without their permission."
    Paris Afterparty - KUNSTLER

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  • Danny B
    Setting up for the bloodbath

    Much of American wealth was tied up in real estate. When RE crashed in 2008, that brought down most of the rest of the system.
    Much of Chinese wealth is invested in commodities. Commodities are headed down,
    Investors believe that stocks are going to go screaming up. Stocks are going up because CBs are buying them. P/E is close to 30--1. The CBs see stocks with no earnings as being superior to bonds that are expected to blow all to hades. Investors also see emerging market debt to be a good investment. IF the EMs are sucking up every dollar they can get PRIOR to blowing up and defaulting, those investors will get hosed very well.

    "The bond debt from developing countries is growing exponentially with total commitments reaching around $425 billion+. This crop of bonds have an average maturity of 6.3 years as compared to 10 year maturities for investment grade rated as risk-free.

    This is adding to the crisis we see on the horizon and a dollar rally will set off a debt crisis like nobody has ever seen in more than 100 years. Private debt among emerging markets is almost about $1.6 trillion with maturity due to foreign creditors over the next five years. It looks like about 90% of this debt is in US dollars."

    Yep, they are setting up the West for a BIG blowup,
    Armstrong, "Additionally, we have produced a very important report on the Fate of the Euro & the ECB. This report dives into the crisis faced by central banks and illustrates how it is now possible for central banks to actually fail."
    Armstrong stated VERY clearly that the State is NEVER proactive.
    "More importantly, we have offered a SOLUTION on how to save the ECB.

    Stockman, " I would target sometime between August and November because that’s when the rubber is going to meet the road on a debt ceiling increase when they are out of cash. Washington is going to end up in vicious political conflict over what to do about the debt ceiling. . . . It is going to be one giant fiscal bloodbath the likes of which we have never seen.”
    Fiscal Bloodbath Coming this Fall-David Stockman | Greg Hunter’s USAWatchdog

    Keep in mind that Trump must increase the debt to $40 trillion over a period of a few years.

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  • Danny B
    Oil companies rapidly dying

    You can well imagine that I find it difficult to separate the BS from the truth. I also find it difficult to pull together ideas from many different sources. You have to sort out all this stuff in your own mind.
    America had a boom post WW II. Things started to go down when the R.O.W. rebuilt their manufacturing capacity. In the mid-60s, the politicians inflated the system to create the welfare-warfare State. By 1971, gold was leaving the treasury at the rate of 100 tons a week. Not knowing any better, Nixon broke the gold standard rather than revaluing the gold/dollar. This incident prompted Ron Paul to go into politics. The chief strategist in China said that this was the single most important action taken by America, NOT the world wars.

    Wages in America have been going down for decades.
    Purchasing power has been going down for decades.
    Oil supplies in the lower 48 have been going down for decades.
    Fracking brought expensive oil online.
    Our wages go down, the price of oil goes up.
    Up until a few years ago, the oil majors sent about $1/2 trillion to the banking industry for investment. This has rolled over and the number is NEGATIVE. The oil majors are spending huge amounts of money for debt service. This high price for gasoline and diesel is made worse by GOV taxes. GOV adds about 70 cents per gallon. The oil companies profit about 5 cents per gallon.
    California just added $ 50 billion in taxes to fuels.

    Our wages are going down. The price of oil is going up. Profits are going down. Demand is going down. Oil companies have stopped paying for exploration and are cutting back on maintenance. They have cut back their stock dividends. The oil companies are sinking beneath the waves.
    We can't afford their oil any more. The taxes just make it worse.
    Our wages go down and the net change in money pushed into the system from the oil majors has been about a negative $750 billion. The credit bubble MUST grow but, input from the oil industry is crashing.

    "This next chart says it all. The top three U.S. oil companies, ExxonMobil, Chevron and ConocoPhillips cleared a hefty $16.3 billion after CAPEX and dividends were paid during the first half of 2011:"
    I arrived at that figure by taking these three companies Cash from Operations and then deducted Capital Expenditures (CAPEX) and Dividends. Now, if we look at the same figure five years later, these three U.S. oil companies are in the HOLE for $18.1 billion. "
    Their interest payment on debt is 86% of profit,
    It is a good idea to read the whole article, THE COMING BREAKDOWN OF U.S. & GLOBAL MARKETS EXPLAINED… What Most Analysts Miss – Truth is Justice

    Infrastructure maintenance is also killing the oil majors, A Sobering Look At The Future Of Oil | Zero Hedge

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  • Danny B
    Oil-PM link... death of big oil

    Energy is the master resource. Here is a chart of the price of silver compared to the price of oil.
    Even copper seems to be connected to the price of oil.
    "Now, if you read that, you would understand that the Fed and Central Banks CANNOT push the price of gold and silver (too far) below their cost of production. The only TRICK the Central Banks have, is to CAP the precious metals prices. And the reason they do this, is too make sure that the 99% of the WALKING DEAD keep funnelling their funds into stocks, bonds and real estate."

    "Thus, Central bank market intervention is to keep this INSANELY COMPLEX world of ours going for another day, week, month or year. Unfortunately, time is running out. Not because the Central Banks are running out of paper to print money, but because the cheap and affordable energy that runs the system…. IS RUNNING OUT.

    I wrote about this in my article, THE BLOOD BATH CONTINUES IN THE U.S. MAJOR OIL INDUSTRY:"
    There is lots of cheap oil, just NOT in the lower 48.
    "David Stockman discussed this in his recent interview, Fiscal Bloodbath Coming This Fall – David Stockman, on In the interview, Stockman goes on to say that the Fed and Central Banks have propped up the Bond market by purchasing $20 trillion in Treasuries and Bonds over the past 20 years. This doesn’t include the Trillions spent propping up the global equity (stock) markets.
    All this is being done to hold off the world’s largest bank run in history."

    "I am working on an article about the U.S. OIL INDUSTRY IS NOW CANNIBALIZING ITSELF"

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  • Danny B
    CBs buy equities to hedge against the collapse of sovereign debt

    Well Macaroon got elected. He is the choice of the bankers and billionaires. He was even endorsed by obummer.
    Emmanuel Macron Topless on LGBT Magazine Garcon | Mediaite
    Emmanuel Macron is a 'gay psychopath,' claims best-selling Russian ...

    Armstrong, "But the election of Macron was the worst possible outcome as it should have been for it now seals the fate of Europe. The Euro that will crumble as Brussels now tries to federalize everything to secure its own survival against the people of Europe to defeat this populist movement by political decree."

    "Merkel has already made it clear that she will not relax Eurozone spending rules to help Macron. The defeat of Le Pen has sealed the fate of Europe because there will be no reflection upon how to reform the EU to save Europe."
    "Only a sublime idiot would now think everything in Europe will be just great. We are looking at a major hard landing for Europe"

    Worldwide, the Central Banks are buying equities. This appears to be an effort to support stock markets and keep confidence running high. There is a secondary reason. The Central Banks are diversifying OUT of GOV debt.
    "The central banks are trapped. Lowering interest rates to virtually zero reduced their yield on reserves and they cannot sell off government securities. The only viable hedge is US treasuries in the bond world against the chaos of the Eurozone. That offers no diversification, just more government debt. "
    "The ECB owns 40% of European government debt. The Swiss are buying US equities as a hedge against the Euro and political unrest. This is not manipulation. They lost a fortune trying to maintain the peg and franc with the Euro. They cannot use pegs, so the only alternative to just buying US Treasuries is private equities."
    Equities still depend on consumers being able to spend money. The CBs are pumping in $250 billion every quarter. GOV spends 24% of the GDP. With a crash in sovereign debt, GOV WON'T be spending all these billions. Equities will not survive.

    The Canadians easily survived the '08 crash. They have had a change of heart and, are now embracing the American attitude of spending far more than they earn.

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  • Danny B
    Wars & banks

    Bankers don't want to ever lose a penny. They won't trust anybody who looks weak.
    5/09 Some Chinese banks suspend “interbank business” – Zero Hedge
    It's hard to say just how fast this contagion will spread.
    5/09 ‘Soft’ data collapses back to ‘hard’ data reality – Zero Hedge
    It doesn't seem to matter, investors just keep pushing money into markets.
    They figure that the FED will always save them. They aren't worried.
    Citi Warns Of Volatility Surge As Its Macro Risk Index Crashes Near Record Lows | Zero Hedge

    " When the cost of past wars and the surveillance state expenditures are included, the U.S. spends in excess of $1 trillion per year."
    A Problem Emerges: Central Banks Injected A Record $1 Trillion In 2017... It's Not Enough | Zero Hedge
    “It is no coincidence that the century of total war coincided with the century of central banking.” – Ron Paul, End the Fed"

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  • Danny B
    Economic war

    A recap of the war with China.
    Many years ago, Armstrong reported that the war cycle would turn way up around 2018. Other than religion and ideology, most wars are for economic reasons. The Chinese are GREAT admirers of Armstrong. Armstrong REALLY hates the N.Y bankers that put him in prison for 7 years. I imagine that he advised the PROC that they would eventually be attacked by Pox Americana. He probably advised them to let their credit system run wild until it blew. He would get his revenge on the bankers who put him in jail AND the crooked GOV.
    One day after the PBOC devalued the Yuan, Pox Americana attacked China.

    5/09 Chinese deleveraging spilling over into other countries – Seeking Alpha
    5/09 China has now become the biggest fear for markets – CNBC

    PressTV-'US Navy to challenge China in South China Sea'
    "The US Navy will restart so-called Freedom of Navigation Operations (FONOPs) in the South China Sea.
    Pox Americana is trying to restrict China in any way that it can. China is starting to unwind it's debt system. The R.O.W. had been depending on ALL the CBs to print in turn and inject liquidity into global currency markets. The $ trillion a year is no longer enough so, somebody has to rev up the printing presses even faster. The emerging markets are borrowing like crazy. This tends to dry up liquidity and somebody must print like crazy.

    "If you owe the bank $100, you have a problem. If you owe the bank $10 million, the bank has a problem." The emerging markets are borrowing hundreds of $billions. As their debt/credit system blows, they will be unable to pay the Western banks.
    The West loaned tons of dollars to China and expected the Chinese GOV to regulate banks in the best manner to preserve the Chinese credit system. The whole system will melt down and take the western banks with it.
    Asia will close ranks against the West.

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  • Danny B
    China, the ultimate black swan

    I've speculated that China will crash their OWN debt markets to cripple the West/AVOID world war three. The signs are all around. China holds about $1 trillion in US GOV paper that they don't want to see evaporate.
    China is spending half of that to help other States on the Silk Road.
    Roosevelt got America dragged into the war by the simple ploy of blockading Japan and,,, just waiting for their response. GOV moved the important ships from Pearl and waited for the Japs. Naturally it had to be a dastardly surprise attack.

    History repeats and Pox Americana is doing the same thing again; The US Bill H.R. 1644 to kill Russian food export and Chinese trade | The Vineyard of the Saker
    BUT, China is NOT Japan. China is not going to be maneuvred and pushed around. The sons of Sun Tzu are going to ACT.
    "I’m of the opinion this kerfuffle with N. Korea may be the catalyst which drives China to either embark on an outright kinetic posture against the West to resolve. (e.g., If no one backs down or worse) Or – will be the inflection point as to allow the monetary fallout within its financial markets to begin in earnest. Crippling the entire global economy in ways not fully understood (or envisioned) by many, especially “The West”, in what may be akin to a “First Strike” monetary (rather than kinetic) action."
    Is North Korea The Excuse China Needs To Launch Monetary Armageddon? | Zero Hedge

    How many missiles are they going to allow to be placed around them? Same with Russia.
    "The current financial underpinnings within the Chinese economy are once again under pressure in ways very few understand. With that said all one needs to watch as to perceive significant clues into the health of its underpinnings is the price stability in commodities. For much of China’s internal, and interwoven financial constructs for collateral are based on them. And one of the main players of that is iron ore. And guess what? Hint: Prices are/have collapsed at a precarious pace."

    "Commodities are the collateral and pricing foundation to much of China’s financial obligations " "Just remember what a sudden (like in 2007/08) real estate value collapse can do (or did) to an economy, and you have the same scenario in earnest via commodity prices currently happening in China,"
    "If the politburo decides that there is no other way (and easier timing for a scapegoat) than now as to suddenly devalue the currency and put a world of financial hurt squarely on the West (and the U.S. in-particular) while simultaneously using all the turmoil as to hasten the pace (and possibly secure the position for more SDR influence) the table for such a move has probably never been set so neatly, so perfectly, and so probable as it is today."
    This is a VERY important observation BUT, forget everything that you read about the SDR.

    Logic says that this is coming.

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  • Danny B
    Student debt... pumping liquidity into every orifice

    The debt has doubled under each successive administration. That has been a necessity because of the nature of the debt. Every time that debt growth has threatened to slow down, the FED GOV pumps in more money to one sector or another. Using Fanny, Freddy and the FHA, the CB pumped money into residential RE. Currently, the CB is pumping money into stocks and corporate bonds. This is done by all the CBs. The Swiss national bank pumped $80 billion into the American stock market.
    ANYTHING to keep the credit markets from slowing down.
    5/07 US student, auto loans hit new all time high of $2.6 trillion – Zero Hedge

    The credit bubble MUST grow. The debt must be assigned to someone, anyone. No matter how bad their credit rating is. This brings us to student loans. Many of the people who received student loans use them for paying day-to-day expenses. Many of the students have Pell grants and don't even show up for class. Schools have been caught signing up hobos and deadbeats for classes just to keep the money rolling in.
    Student loans went up 12% in just one year, Obama Unveils Student Loan Debt Bubble Bailout | Zero Hedge
    THAT is what it takes to keep the debt bubble going.

    The TARP money was used to bail out the banks after the crash of unqualified borrowers. True to form, the GOV must now bail out the students who have no money and no job prospects, Here Comes The Student Loan Bailout | Zero Hedge 2013

    "Why Seven Million Student Loan Defaulters Are In A Standoff With Uncle Sam" ... (which the article above today merely adds another wrinkle to) ... Students, whether they like it or not, and regardless of to whatever degree that they do, or, more likely, do not, understand their situation, are trapped within the runaway debt slavery systems that they were born into,
    Those runaway debt slavery systems MUST continue to double down on their total debts
    That is WHY President Bush II presided over America doubling its total debts, and then President Obama also presided over American continuing to double it total debts.
    When all money is debt-money, you can NEVER slow down.
    If President Trump does not preside over the total American debts continuing to double at about an exponential rate (as those have doubled since 1971), through whatever excuses are possible to allow that to happen, then the entire system would collapse into chaos.

    Much of the TARP money was never paid back. Debt is extinguished when it is repaid. The State and CB desperately need currency inflation to achieve debt inflation. With that mentality, you can see that repaying student loans is a "bad" thing.
    "The Crisis Has Become Pandemic" - System To Collect Defaulted Student Loans Is No Longer Functioning | Zero Hedge
    The debt bubble can't grow if idiots pay back their loans.

    "US consumers owed $1.44 trillion in student loans, an increase of $32 billion for the quarter and $80 billion for the year, as well as $1.12 trillion in auto loans, an increase of $8 billion Q/Q and $73 billion Q/Q. "
    You can see that these increases are ASTRONOMICAL.
    US Student, Auto Loans Hit New All Time High Of $2.6 Trillion | Zero Hedge
    THAT is what it takes to attempt to double the debt.

    So, where does this money come from? How much does it take? Keep in mind that Trump must double Obummer's $20 up to $40 trillion.
    "October 2014, Citi's Matt King calculated that it costs central banks $200 billion per quarter to avoid a market crash"
    "On the surface, these sums appear vast; however in the latest weekly report by Deutsche's Dominic Konstam, the credit strategist finds something even more troubling: $1 trillion in central bank liquidity YTD - or roughly $250 billion per month - is not enough. "

    "Which means that when stocks realize just how insufficient the record $1 trillion in central bank liquidity has become, central banks - which have stepped into every single market correction over the past 7 years with some "liquidity supernova" - will, for the first time since the financial crisis - be out of tools... something Janet Yellen appears to have realized some time ago."
    A Problem Emerges: Central Banks Injected A Record $1 Trillion In 2017... It's Not Enough | Zero Hedge

    Debt money is non-tangible,,, essentially non-existent. BUT, when they pump it into physical markets, it changes the whole picture. The FED, being the uber-speculator tries to save the whole speculator class. The State just runs wild on the spending and eventually blows the whole thing.
    YOU are along for the ride.

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  • Danny B
    Finance & economics,,, total strangers

    Well, stocks just keep going up. The central banks just keep buying them, hoping for some kind of miracle. 7 years ago, it was considered "fake news" if you reported that the CBs were buying assets. No more.
    "Mystery" Central Bank Buyer Revealed, Goes On Q1 Buying Spree | Zero Hedge

    Traders are engaged in "wilful blindness".
    "It’s not all that astounding that markets disregard troubling issues unfolding in Chinese finance. The bullish narrative is focused on Trump administration tax cuts, deregulation and infrastructure spending. Throw in a European recovery and hope for EM.
    Talk is clearly not of a historic global Bubble vulnerable to a massive and fragile Credit Bubble in China. That is an analytical perspective markets avoid like the plague. " The "plague" moves on the wind.
    Credit Bubble Bulletin : Weekly Commentary: Belly of the Beast

    "Why did Keen get it right when the grandees of his profession flunked? Institutional dominance appears to have placed the mainstream economists at an intellectual disadvantage. Long before they were blindsided by the Lehman Brothers bust, many in the economics elite had become a self-regarding bunch, worldly from a careerist perspective, eager to dominate policy discussions but cut off from the real world, inhabiting an echo chamber where only received opinions were entertained."
    "In a withering speech, Paul Romer, the chief economist of the World Bank and a former New York University professor, accused his fellow macroeconomists of forming a monolithic intellectual community, which deferred to authority, disregarded the opinions of those outside of their group and ignored unwelcome facts. They behaved more like cult members than genuine scientists." Hey, the State pays my salary.

    "mainstream economics had come to rest on a number of gloriously improbable assumptions. In their models, millions of households were reduced to a single “representative agent,"
    "Both Romer and Keen agree that the most serious error of modern macroeconomics is that it ignores finance."
    "Money and credit are the essence of capitalism: economic transactions can only take place after financing."
    " In Minsky’s world, the tail of finance wags the real economy dog."
    "So what of the next crisis? With his eye on credit growth, Keen sees China as a terminal case. The People’s Republic has expanded credit at an annualized rate of around 25 per cent for years on end."
    "Australia shows, says Keen, that “you can avoid a debt crisis today only by putting it off till later.” GO AUSSIE!
    The current value of U.S. financial assets is more inflated relative to GDP than at any time in the country’s history.
    Review: Can we avoid another financial crisis? | Reuters
    OZ is locked in to the commodities boom in China. Commodities are falling back hard. Hot money from China went towards the property boom in OZ.

    "According to the Bank of International Settlements, this (FOREX) market has swelled to some $5.1 trillion a day, 25 times global GDP and 73 times all trade in goods and services. Yet all the vast shuffle of money fails to achieve the crucial function of money and markets: to yield a reliable guide for international transactions."
    73 times all trade in goods and services How many millions of parasites make a living shuffling around debt paper?
    "This is happening, mind you, at a time when the banks are in their 8th straight year of enjoying practically-free money from the world's central banks, "
    The CBs are financing/supporting VAST hordes of fellow speculators. MANY of these speculators have high salaries. There is?was a hope that these vast hordes would create enough of a trickle-down effect to support consumption in the lower loop. This hope has faded away. The current hope is; this money pumping into the upper loop will hold back the avalanche of deflation.I avoided the word, tsunami.
    "The Theory of Information holds that an economy is an information system "
    "When money becomes merely a reflection of the policies of central banks, it can no longer guide enterprise or international trade.

    In the years after NAFTA took effect in January 1994, the Mexican peso lost 87 percent of its value, dropping from nearly 35 cents American to under a nickel. The peso has dropped 5.8-fold while Mexican exports have risen 6.6-fold."
    "With incomes in the financial sector nearly tripling as a share of all corporate income since 1971, the economy suffers from a bloat of banking. Yet as gold prophet Nathan Lewis observes in a forthcoming book, Gold: The Final Standard, the banks' "old roles had actually become even less profitable ... eroded by competition and advances in information technology"
    The axe is slowly falling on the banking system. Before long, it will be falling rapidly. Information technology and super-fast algorithms do NOT receive bonuses.

    "Instead, financial profits have risen to 30 percent of all corporate profits, mostly through the shuffling of currencies and derivatives." Gravity will soon take over.
    "After World War II, the Bretton Woods gold-exchange standard sustained another 27 years of unparalleled world economic growth at 2.5 percent per year." That just wasn’t adequate for the bankers and warmongers,,, not to mention the Marxists.
    "According to the conventional wisdom, though, the gold standard led to gold hoarding and the Great Depression. But that hoarding was not an effect of irrational panic. Gold was signaling a tragic breakdown of civilization and a global turn against free markets."
    How very strange. Nobody wanted to lose their hard-earned money to the predations of the bankers.

    Eurasia is going to move to (effective) barter with gold settlement of deficits.
    The banks won't have access to global capital flows. The computer has made it possible to keep perfect track of the flow of goods without assigning a currency value to same goods. I give you 2 shiploads of oil in exchange for one shipload of iron ore. We never mention currency.

    "Unfortunately, the absence of growth portends not stagnation but collapse as society fails to generate enough new wealth to pay its debts.
    But the dishonesty at work is pretty obvious, and the problem with dishonesty in financial affairs is that it represents unreality. The accrued momentum in colossal sums of money flowing this way and that way has allowed unreality to reign in international finance for a while. But that is now flying apart. The ultimate reality, politicians and economists will soon discover, is that you can’t create your own reality.****-nation/ready-set-splat/

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