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  • Too, too big,,, punishing the productive

    Too much centralization must fail. Repost;
    "The crisis currently playing out on the world stage is a crisis of growth. Not, as we are regularly told, a crisis caused by too little growth, but by too much of it. Banks grew so big that their collapse would have brought down the entire global economy. To prevent this, they were bailed out with huge tranches of public money, which in turn is precipitating social crises on the streets of Western nations. The European Union has grown so big, and so unaccountable, that it threatens to collapse in on itself. Corporations have grown so big that they are overwhelming democracies and building a global plutocracy to serve their own interests. "

    "In fact, Kohr’s message is a direct challenge to them. “Wherever something is wrong,” he insisted, “something is too big.”
    "Published in 1957, The Breakdown of Nations laid out what at the time was a radical case: that small states, small nations and small economies are more peaceful, more prosperous and more creative than great powers or superstates."
    "Kohr’s claim was that society’s problems were not caused by particular forms of social or economic organization, but by their size. Socialism, capitalism, democracy, monarchy—all could work well on what he called “the human scale”: a scale at which people could play a part in the systems that governed their lives. But once scaled up to the level of modern states, all systems became oppressors. "
    "We have now reached the point that Kohr warned about over half a century ago: the point where “instead of growth serving life, life must now serve growth, perverting the very purpose of existence.”
    We Got Too Big For the World | Literary Hub

    "All major political parties in Western Europe, regardless of their different names and party programs, are nowadays committed to the same fundamental idea of democratic socialism. They use democratic elections to legitimize the taxing of productive people for the benefit of unproductive people. They tax people, who have earned their income and accumulated their wealth by producing goods or services purchased voluntarily by consumers and they then re-distribute the confiscated loot to themselves"

    "They do not call this policy by its right name: punishing the productive and rewarding the unproductive, of course. That doesn’t sound particularly attractive"
    "The EU and the ECB are a moral and economic monstrosity, in violation of natural law and the laws of economics. You cannot continuously punish productivity and success and reward idleness and failure without bringing about the disaster." Good article;

    "taxing of productive people for the benefit of unproductive people". If the productive people don't have the money, just print a bunch more. If nobody pays back their loans,,, just print a bunch more.
    "there remains nearly €1 trillion in bad loans within the European banking system. This represents 6.7% of the EU economy, according to a report and action plan considered by EU finance ministers earlier this month. That compares with non-performing loans (NPL) ratios in the US and Japan of 1.7 per cent and 1.6 per cent of gross domestic product, respectively."
    Europe's Banking Dysfunction Worsens | Zero Hedge
    European socialism will crash before American socialism.


    • Crony capitalism scalping the productive economy

      Over the last several years, the finance industry went from 5% of the economy to about 20% of the economy. How did it do that?
      Many years ago, your deposit in the bank was "call money". It was yours. Over the years, the banks needed more and more money. Your deposit became an "unsecured loan to the bank". The banking industry refused to contract when the economy contracted. Your deposit is now called, "an investment in the bank".
      The State, for it's part, started confiscating cash where ever they found it. Obviously, your cash is the proceeds of criminal activity. The war on cash is in full stride. The banks are screaming if anybody has cash outside the banks. YOU are the problem if you hide away your cash for yourself.
      Aussie 'War On Cash' Tsar: "Consumers Are Part Of The Problem" | Zero Hedge

      So, what do the banks want your cash for? In a shrinking economy, the bankers are having a hard time trying to generate fees.
      "Mega-Banks Blow 100% of Earnings on Share-Buybacks & Dividends, Crimp Lending, Constrain Economy "
      Mega-Banks Blow 100% of Earnings on Share-Buybacks & Dividends, Crimp Lending, Constrain Economy | Wolf Street
      The banks don't want to lend money into a shrinking economy so, they use the money to jack up their bonuses. Even during the big 2008 crash, their bonuses didn't shrink.

      The pension system in a nutshell, What Ponzi Scheme? Public Pensions Average 0.6% Return In 2016 Despite 7.6% Assumption | Zero Hedge
      A note for all you preppers, Forbes Says Self-Reliant Homesteaders Are "Delusional" And "Mooching" Off "Civil Society" | Zero Hedge
      "Ah, poor misunderstood dorks. But what else can they expect? Read any of this stuff and you know: few preppers are smarter than a 5th grader"
      " be prepared to neuter preppers by any means available.
      Not only will such noblesse oblige ensure a stronger gene pool going forward, but hey — those bastards have all the gear and food and fish antibiotics you'll ever need."
      The pension gap,

      8/04 UK and US savings rate plunges, debt comes full circle – Mish Maybe because we don't have any money.
      8/03 Loan default rates deja vu 2008: “right before the SHTF” – Silver Doctors We're going to need a bigger fan.

      "Thus, upwards of $1 billion in capital was supplied to Blum’s fund by the California Public Employees’ Retirement System, the California State Teachers’ Retirement System and the Los Angeles County Employee Retirement System, among others. "
      This money was then used for leverage buyouts and asset stripping.
      "Nor is the fact that his fund was among a pack of hedge fund jackals that ran up the stock prices of for-profits education companies to absurd heights based on growth momentum that was totally unsustainable. In fact, these outfits harvested hundreds of billions of student loans from hapless enrollees — of which 33% of the tuition proceeds went to selling bonuses and expenses, 33% to operating profits and the left-overs to the purported cost of education."
      Ah yes,,, fees and bonuses.
      "That is, negative cash flows are signaling a need for tsunami of bankruptcies, job-layoffs and store liquidations that significantly exceed the fundamentals of the sector.

      Finally, the scramble for yield among money managers has fostered the financial liquidation of retail sector equity for the sole purpose of redistributing windfalls to the top of the economic ladder."


      • Productivity,, property rights

        Pax Americana experienced a post-war boom in manufacturing because everything in Europe got blown up. In the mid-60s, we started the welfare-warfare economy. Since then, it is claimed that we spent $25 trillion on the war on poverty. By 1970, we had overspent and lost our gold. We also started losing market share. Our credit terms were lengthened so that we could work LOTS more and still "enjoy" our great standard of living. The competition has just gotten too great and we're losing more and more manufacturing.
        Reportedly, we're in the process of switching over to a service economy. A service economy doesn't produce enough value-added industry to support / offset our imports.

        "America and Western Europe exported almost their entire manufacturing capacity to China etc. And how can you be productive if you don’t manufacture anything? "
        "What if the decline in US productivity measured since the 1970s isn’t happening in spite of technology, but because of it?"
        " Productivity In America Now On Par With Agrarian Slave Economy"
        "US productivity growth peaked in 1972 – incidentally the year after Nixon took the US off gold. The productivity decline witnessed ever since is unprecedented."
        No mention that 102 million Americans of working age are not in the labor force.
        "In other words, we have seen a progressive (pun intended) weakening of the US economy from the 1970s and the reason is simple enough when we know that monetary policy broken down to its most basic is a transaction of nothing (fiat money) for something (real production of goods and services). Modern monetary policy thereby violates the most sacred principle in a market based economy; "
        "The central bank does not need to worry about such trivial things. They can manufacture the medium of exchange at zero cost and express purchasing power on the same level as the producer. However, consumption of real goods and services paid for with zero cost money must by definition be pure capital consumption."
        Yep, debt creation just so that the parasites don't go hungry. They can create lots of tokens without doing anything productive.

        "Productive structures cannot be properly funded and the economy must regress"
        "We’ve used all those trillions in new debt to, as far as productivity is concerned, run to not even stand still: productivity (GDP per capita) continues to decline despite all the debt. Why is that? Well, Bohm-Bawerk answers that question earlier: “.. consumption of real goods and services paid for with zero cost money must by definition be pure capital consumption.” In other words, as I said before, if you don’t use it to actually make things, you’re basically just burning it."
        "Things would look different if we used the “zero cost money” for production instead of consumption. But that’s not what the central bank money is used for at all. "
        Ah yes, create debt-free money just for production. don't hold your breath.

        Don't waste your time going to college, Only Employment Gains In The Past Year: Those With A High School Diploma Or Lower | Zero Hedge
        Japan is hard at work to disprove the economic theories that haven't already been disproven.

        No currency union has ever worked if it didn't also have a debt union. The IMF listened to the siren-song of world socialism and ignored long history. They have come out and admitted that they completely screwed up. Almost all the economic theories have proved to be just worthless theories. Not to worry though. They still teach them worldwide.
        IMF admits disastrous love affair with the euro & apologises for the immolation of Greece! ?

        "When the two basic tenets of a market economy—the rule of law and property rights—are abolished, the private sector doesn’t have the incentives to invest time and resources in productive enterprises."
        "And even though the state oil company Petróleos de Venezuela, S.A. (PDVSA) is state-run and therefore has better security, the Chávez regime made it hopelessly inefficient, such that it isn’t profitable when oil falls below $50 per barrel.

        “The Chavistas kicked out everybody who wasn’t one of them—19,000 people. So they only had And even though the state oil company Petróleos de Venezuela, S.A. (PDVSA) is state-run and therefore has better security, the Chávez regime made it hopelessly inefficient, such that it isn’t profitable when oil falls below $50 per barrel.

        “The Chavistas kicked out everybody who wasn’t one of them—19,000 people. So they only had political appointees and the real experts left the country. " political appointees to run the oil industry.
        "If the current government stays in power, Venezuela could end up like Zimbabwe, where President Robert Mugabe is still dictator at age 93 and steers the country from one economic crisis to another."
        How to Crash an Economy

        Zimbabwe has money for GOV officials but, none for the people.


        • Neocons,,, no bubbles in sight

          "still think, that confidence in central banks and policymakers has been unjustified and thus could erode or collapse at any time. Since the major financial institutions which comprise the financial system are still way overleveraged and opaque (in fact with record amounts of debt and derivatives at present), such a break in confidence could happen abruptly and without warning.
          Investors should come to grips, intellectually and viscerally, with the likelihood that most fiscal and monetary policymakers' knowlege of the world is somewhere between "close to nothing" and "way less than zero," and that their pronouncements and policies usually range from "silly but harmless" to "dumb and dangerous."
          In Epic Letter, Elliott's Singer Rages Against Everything From Passive Investing To "Safe Spaces" | Zero Hedge

          Trump signed the sanctions bill while admitting that it was unconstitutional. It specifically limits the power of the president, which is absolutely against the separation of powers.
          Text of signing statement Trump issued alongside the Russian sanctions bill - MarketWatch
          What will happen at budget time?

          "These are the folks who in spite of their 100% ironclad control of the media and Congress lost the Presidential election to Donald Trump and who are now dead set to impeach him. "
          "Keep in mind that the historical record shows that while the Neocons are fantastically driven, they are not particularly smart. Yes, they do have the kind of rabid ideological determination which allows them to achieve a totally disproportionate influence over US policies, but when you actually read what they write and listen to what they say you immediately realize that these are rather mediocre individuals with a rather parochial mindset"

          "Even the 100% russophobic Bloomberg is beginning to realize that, if anything, all these sanctions have made both Putin and Russia stronger."
          Sanctions, smoke and mirrors from a kindergarten on LSD | The Vineyard of the Saker

          The chief bubble blower seems to have smoked some ganja OR drunk some bad Port.
          "Bubblicious Debate: Greenspan Says “Bond Bubble About to Break”, No Stock Market Bubble"
          The P/E is the highest in history BUT, there is no bubble.

          Here is a very deep article from Hugo Salinas Price, .:Plata:.

          8/05 German bitcoin exchange hands private info to investigators – Coin Telegraph
          8/05 ‘Bitcoin cash’ prices fall by 57% – CNBC
          8/05 Hackers move $140k from bitcoin wallets, Marcus Hutchins arrested – Coin Telegraph

          If it isn't physical,,, it isn't safe.


          • Risky banks,,, uneven liquidity

            The ECB is openly talking about closing the banks and burning the depositors. The CB can print money but, they can't control where it goes. The banks in the southern European countries are insolvent. The ECB prints BUT, the money flows into the good banks. Nobody wants their money in a bad bank. The ECB just can't figure it out.
            "Many European banks are lacking liquidity, despite the fact that the ECB has already pumped more than €1.5bn in the market and will continue to do so at least until the end of 2018. " Sloppy work. That €1.5 bn is supposed to be €1.5 trillion.
            "The authors of the study are not sure what accounts for the unequal distribution of liquidity."
            "The fact that this liquidity ends up in wealthy states within the Eurozone instead of in states where it is badly needed is contrary to the goals of the ECB." Feces for brains politicians can't understand that; anybody that desperately needs money,,,, is always a credit risk.
            Explaining the Uneven Distribution of Liquidity in the Eurozone - The Market Mogul

            Armstrong, "ANSWER: No. Even FDR closed the banks. While bailouts have ceased, the government will simply now expropriate depositors money to save the banks. Keep in mind that the big banks sell the government debt known as the primary dealers. So no matter what they say, they will protect the banks before the people. The risk is greater in the EU than in the USA."

            " Meanwhile, the Treasury Dept is burning through its dwindling cash reserves, and all government activities will face a shutdown at the end of the summer unless congress votes to raise the debt ceiling — which may be way harder than passing the stupid Russia sanctions bill."
            Russiatosis - Kunstler
            The MSM and neocons are so focused on destroying Trump that they are oblivious to all the financial dangers that they create.
            Last edited by Danny B; 08-06-2017, 04:37 AM. Reason: spppeling


            • paper money, delusion,, fees & bonuses

              This is a repost of the South park vid, "poof, it's gone".
              The money is gone because the bank SAYS it's gone. The depositor agreement has been changed. Now, you are an investor in the bank. If they SAY that your investment is gone, well,,, then it is.
              A bank is just a consumer. They don't produce anything. They depend on constant growth so, they are also a Ponzi scheme. When there is a bank closure, they close the doors and figure out how much of the money they need to steal to stay in business,,, if possible. In the '29 crash, 9400 banks closed. They look at the funds of the bondholders, stockholders and depositors. Always looking out for themselves, they try to preserve the senior bondholders.

              "Mega-Banks Blow 100% of Earnings on Share-Buybacks & Dividends, Crimp Lending, Constrain Economy "
              The banks see no point in lending into a shrinking economy. It is far less risky to put the free money into markets that the FED is backstopping.
              Meanwhile, the fees, bonuses and dividends just keep rolling in.

              "Using public data to analyze the 10 largest bank holding companies, Hoenig found they will distribute more than 100 percent of the current year's earnings to investors, which could have supported to $537 billion in new loans.
              On an annualized basis they will distribute 99 percent of net income, he added." "Since Bank managers are personally heavily rewarded on the share price of the Banks through bonuses and share options, the cause of this is clear."
              "This problem was addressed by Glass-Steagall and functioned very well, keeping the banking system essentially sound for almost seventy years, until it was repealed under the Clinton Administration in conjunction with a Congress all too willing to sacrifice the interests of their voters to Big Money."
              Don't blame me. It takes LOTS of money to get elected,,, to be a public servant.
              "If at times his [Andrew Jackson's] passionate devotion to this cause of the average citizen lent an amazing zeal to his thoughts, to his speech and to his actions, the people loved him for it the more. They realized the intensity of the attacks made by his enemies, by those who, thrust from power and position, pursued him with relentless hatred. The beneficiaries of the abuses to which he put an end pursued him with all the violence that political passions can generate. But the people of his day were not deceived. They loved him for the enemies he had made."
              Sounds familiar.

              "An overwhelming proportion of the material power of the Nation was arrayed against him. The great media for the dissemination of information and the molding of public opinion fought him. Haughty and sterile intellectualism opposed him." Check.

              Your receipt for a deposit is just a piece of paper that can become worthless at the whim of the bankers. Your dollar bill is a different story altogether. Your deposit receipt is only tradable in your bank. Your dollar bill is tradable everywhere.
              "Keep in mind that the big banks sell the government debt known as the primary dealers. So no matter what they say, they will protect the banks before the people."
              The banks and State are desperate to get those dollar bills OUT of the hands of the general public. The dollar bill is a bearer-bond and a demand note. Neither the banks, nor the State can make that bill in your pocket vanish. The open market operations of the FED are used constantly to make liquidity vanish in whatever market the FED is trying to constrict or slow down. They absolutely do not want paper money in circulation because they lose all control of it. Aussie wants to chip big bills to recover control.

              The State knows well the "power" of cash. "The $100,000 dollar bill is actually not a dollar bill at all, it’s a gold certificate. What’s a gold certificate? Well a gold certificate is money that the government prints that only they can own and use. It is intended for only the use in Fiscal Channels. There were only 42,000 $100,000 dollar certificates printed and the only ones around today are not for sale "

              The stock market has topped-out and is headed down,
              Dead.Market.Walking | Zero Hedge

              The stock market has ZERO connection to the real economy. The stock market is ONLY a money laundering mechanism for the bankers.
              The bankers could print trillions at will. But they're afraid to do all of it out in the open. So this is what they do, for example: Banks A and B set up a private bank C with non-publicly traded stock in the Cayman islands, which thus doesn't have to disclose who owns it because its shares are not publicly traded. Bank A sells short an S&P 500 Futures contract to Bank B. Bank C buys call options on Bank A stock and put options on Bank B stock. S&P 500 index goes up. Bank B makes money. Bank A loses money (and writes off much of it as losses lowering the amount of tax due). Bank C makes lots of money and extends loans at low or inflation-adjusted inexistent interest rates to Bank A and Bank B. Bank A and Bank B buy Bank B's stock at significantly lower prices than they were before above operation was booked. Next round, Bank A and Bank B trade places. When it gets boring after a while, Bank C declares bankruptcy. Its receivership who is an attorney who also works for Banks A and B writes off loans made to Banks A and Bank B as nonrecoverable. Shareholders of Bank C do not object to the total loss on their bond portfolio that ensues.

              The S&L crash was an egregious example of bankers making bad loans to other bankers and waiting for the whole thing to blow up,,, and be bailed out.
              "Communism was not created by the masses to overthrow the bankers, Communism was created by the bankers to overthrow and enslave the masses. "

              Here is an article from the brightest of the bright. It is a good study in delusion and confusion. I won't take time to dissect and rebut it.
              Here is another BIG dose of delusion.
              "Unemployment bottomed at 4.4% "
              "The labor participation rate remains a dismal 62.9%."


              • Freedmanite economics,,,runaway automation.

                The default cascade will kick in. The banks will close to avoid insolvency. They will take your investment (aka, deposit),,,, they will shed crocodile tears for your loss.
                "President Nixon embraced the woolly theory of Milton Friedman and declared the irredeemable dollar a Monad, that is, a thing that exists in and of itself. According to this theory the government has the power to create irredeemable debt ― debt that never needs to be repaid yet will not lose its value ― subject only to a “quantity rule”, e.g., it must not be increased by more than 3 percent annually. This idea is so preposterously silly that “only very learned men could have thought of it”.
                "For all its seductive attractiveness Friedmanite economics is ignoring the effect of irredeemable debt on productivity."

                "The reason for the decline is that irredeemable debt causes capital destruction. It adds nothing to the per capita quota of capital invested in aid of production."
                "Perhaps the worst aspect of the regime of irredeemable debt is the lowest level of morals followed by governments in modern history. It is epitomized by an elaborate check-kiting conspiracy between the U.S: Treasury and the Federal Reserve. Treasury bonds, contrary to appearances, are no more redeemable than Federal Reserve notes. It's all very neat: the notes are backed by the bonds, and the bonds are redeemable by the notes."
                GOTTERDÄMMERUNG- The Twilight of Irredeemable Debt :: The Market Oracle ::

                The financial industry is a non-producer. The state is a non-producer. We got pushed off a cliff when our jobs were outsourced. Unfortunately, things will only get worse.
                “Within 30 years, half of humanity won’t have a job. It could get ugly. There could be a revolution."
                "You don't realise it but we're in a race between technology and politics, and technologists are winning. They're way ahead."
                "They will destroy jobs and disrupt economies before we even react to them and we really should be thinking about that."
                "The big secret in Silicon Valley is that the next wave of disruption could tear apart the way capitalism works, and as a result the way we live our lives could be utterly transformed."
                Artificial intelligence pioneer Jeremy Howard said: "People aren't scared enough."
                "They're saying 'Don't worry about it, there will always be more jobs'."

                "My response: Sorry to deliver the bad news, we don't have anything close to 30 years. The scientific decay rates for lots of things predict a much short time frame that will alter our reality. With the earth polar shift now underway and Sun hibernation cycle set to begin, our realities in this world are about to begin to change radically. "
                "Society AS WE KNOW IT will collapse.

                The robot revolution will usher out the "work to live" system and replace it with the "work to self-actualize" system. People will do productive work for their own benefit rather than material gain, because they already have all the material they could ever want, thanks to an unlimited robotic workforce comprised of a near-infinite number of ASI super-beings doing the drudgework of providing us will all the goods and services we could ever want."

                "There are two, and only two, outcomes of the "automate to zero" model: Complete abundance or total dictatorship. There is virtually no funding or research for the former, with the rare exception of the cypherpunks. Your vision of the future may come to fruition, but the odds are heavily against you.

                Y'know, there was a Harvard professor back in the day who was a victim of MKULTRA at the University of Michigan. Wrote a book called "Industrial Society and its Future." Some called it a Manifesto. It's a fascinating read and equally as prescient as Timothy May's early writings on cryptoanarchy, but from the other side of the coin. A Dutch team did a fantastic documentary on this subject back in the mid-2000s but you'd never see anything like it aired Stateside: "
                EXCELLENT vid,


                • 0000000000000000 everywhere,,, Hacker noon

                  "Your receipt for a deposit is just a piece of paper that can become worthless at the whim of the bankers."
                  "Since the global debt position, including unfunded liabilities and derivatives, amount to over $2 quadrillion, so should global assets. But global assets are not even a fraction of that. Supposedly, global assets are $250 trillion, but these are all bubble valuations that will implode as the debts and liabilities implode"
                  "Nobody realises that their money is just an electronic entry that can be turned off in a second by the government. "

                  "Three large (G-20) countries are flashing warning signals today for impending banking crises based on such imbalances:China, Canada, and Australia. No mention of Italy,,, the third largest bond market?
                  Great article but, it doesn't copy right.

                  The "violence hack",,, "The true power of cryptocurrencies is the power to print and distribute money without a central power.
                  Maybe that seems obvious, but I assure you, it’s not. Especially the second part.
                  That power has always rested with the divine right of kings and nation-states. Until now."

                  Mish lays out a list of the main BS monetary theories.
                  Keep in mind that these theories are the only justification for printing money for the parasites.
                  The State convinced us that it would take care of us in our old age. That was a good thing because emerging socialism had destroyed the family. The unfunded liabilities of the FED GOV are reckoned at $212 trillion. BUT, the State isn't the only entity that is running short on money.
                  Legg Mason Survey Finds Baby Boomers Are Roughly $30 Trillion Short On Retirement Savings | Zero Hedge


                  • Hussman, Kunstler & BTC

                    I noticed in 2005 that the economy was headed down. Since then, I've read everybody. After a while , you learn to skip the people who make no sense. When you read the people who make sense, you learn to anticipate their "slant".
                    John Hussman does excellent work with historical stock values. Based on this, he claims that the fall will be about 87%. BUT, historically, there is no precedence for the CB pumping in so much liquidity. This doesn't necessarily make his models and projections incorrect.
                    Hussman Funds - Weekly Market Comment: Estimating Market Losses at a Speculative Extreme - August 7, 2017

                    Kunstler is another story. I won't excerpt.
                    Just Wait a Little While - Kunstler
                    Pox Americana has made so many enemies that I expect the worst.

                    8/04 Hacker who stopped WannaCry malware facing federal charges – WaPo
                    You already know that the state is the originator of much malware like Stuxnet.
                    The State / banks have started to catch on to just how dangerous the blockchain is.
                    8/05 ‘Bitcoin cash’ prices fall by 57% – CNBC
                    "They" need to induce as much volatility into crypto as possible to prevent it from catching on.

                    The Central Banks are spoofing the snot out of BTC.
                    Mysterious Trader With "Nearly Unlimited Bankroll" Said To Manipulate, Dominate Price Of Bitcoin | Zero Hedge
                    If BTC catches on well enough, they will no longer be able to spoof it. BTC is not a futures market so, it doesn't lend itself to the usual manipulations. You can bet that much of the hacking of BTC is done by it's enemies.


                    • The new function of banks

                      Pretty near everybody is claiming that share prices are way too high. Armstrong is an exception.
                      "This index has been correlated to major shifts incredibly often one month leading events. It may be our best index ever created. It has been back tested starting in 1790. It is something I most certainly look at to see where we are historically. So while everyone has been screaming CRASH, this index has stood its ground just saying – sorry boys – just no way."

                      Man is hard-wired to support his genetic lineage. Socialism requires you to support those who are NOT your genetic lineage.
                      " So under socialism, you are not allowed to be charitable with your own family. This is what the new hunt for taxes in Canada is all about. Take this with the other two proposals for tax increases and the combination will send taxation on small business to potentially as high as 93%. Government never really cares about the impact of their proposals. It is always just about them"

                      A STARK look at obamacare,

                      Living on plastic, Americans now have the highest credit-card debt in U.S. history - MarketWatch
                      8/08 US credit-card debt surpasses record set at brink of crisis – Bloomberg
                      Greenspan argued that the banks would do what was best of the economy and that, they shouldn't be regulated. He NEVER considered the idea that individual bankers would do what was best for that individual. A few banks were destroyed by the excesses of their employees. Even if the whole bank does what is best for that bank, it is generally bad for the rest of the economy.
                      The bankers and investors are motivated for the biggest profits. That does nothing for the economy.
                      "The big New York banks no longer perform the banking function of lending to consumers and businesses. Thanks to government policies that foster increased financial concentration, banking incentives have changed fundamentally. The big banks today are focused on higher risk-return speculation and on trading and fee-based income. "
                      "their ability to lend is foreclosed by the fact that the big banks pay out all or more than all of their net income in dividends and buy-backs of their own stocks in order to drive up executives’ bonuses. The extraordinary payouts of earnings leave the banks’ capital position too weak to support more lending."
                      Financial Presstitutes Cover Up for the Big Banks -
                      The various regulatory changes have allowed the banks to change their motivation and purpose from lending to,,, churning for fees and bonuses.

                      8/08 Fannie-Freddie might need $100 billion in new crisis – Bloomberg Don't worry, be happy
                      8/08 Avis plunges on huge miss, margin collapse, guidance cut – Zero Hedge Blame Uber


                      • Oil subsidies,,, millennials spending habits

                        The State knows that it must stop BTC from catching on. They are currently thrashing around trying to work out a strategy.
                        "EU Rules Bitcoin is a Currency, US Says Bitcoin is a Commodity; Which Side is Correct? What About Gold and BitGold?"

                        The oil industry lost $20 billion last year,,, mostly from the junk bond market. The CB has pumped out so much money that big oil managed to survive well the $20 billion loss. The Journal, World Development claims that there is a worldwide subsidy for carbon energy.
                        We aren't going to electric cars any time soon because the infrastructure isn't prepared.
                        We still need a lot of oil. Russia, Iran and Venezuela have a LOT of oil. We are in the process of destroying Venezuela for their oil. We talk about destroying Iran but, it isn't going to happen. The Sino-Russian Bloc would rather stand behind than stand with their backs against the wall.

                        Kissinger is having a coniption fit because the Wolfowitz doctrine of world domination is soon to blow up if Pox Americana can't control Iran.
                        Kissinger Fears ISIS Defeat Will Lead To "Iranian Radical Empire;" Russia Rejecting Atlanticist World Order

                        Here is an excellent article on driverless cars. Apparently, millennials are not bothering to get a drivers license. They don't want to own a car.
                        A new kosher cryptocurrency has been introduced,
                        Apparently, the millennials have fallen out of love with satellite TV,
                        their consumer habits are rocking a lot of markets.


                        • Politicians for sale,,, European debt

                          Obama care is in a drastic death spiral, Death Spiral: 6.5 Million People Choose To Pay Tax Rather Than Buy Obamacare | Zero Hedge
                          It is dragging down everything else,

                          So, why won't congress get rid of it?
                          "According to the Center for Responsive Politics, since 1998, Citigroup has spent more than $98 million lobbying Congress while JPMorgan Chase has spent approximately $85 million. Those figures are dwarfed, however, by the hundreds of millions of dollars that Wall Street’s trade groups spend lobbying Congress. It is also dwarfed by the corruption that flows from the disintegration of campaign finance laws which now allow the millionaires and billionaires on Wall Street to make obscene political donations to both of the major political parties as well as individual candidates."
                          Everybody is their own special-interest group. THAT is why the system will blow.
                          Financial System of U.S. Rests on Health of Just Five Mega Banks

                          Following the Following Gramm-Leach-Bliley act that killed the Glass-Steagal act, the banks were incentivised to end loans and just speculate.
                          Federal Bank Regulator Drops a Bombshell as Corporate Media Snoozes

                          Armstrong claims that stocks are not over-valued. Everybody else disagrees. Earnings are dead.
                          The CBs are buying all the stocks and have killed volatility.
                          "Mystery" Central Bank Buyer Revealed: SNB Now Owns A Record $84 Billion In US Stocks | Zero Hedge
                          Does that necessarily make them safe?

                          Following Gramm-Leach-Bliley [legislation in 1999]"
                          This really allowed the finance system to take off. Here are the results.
                          European public debt and European banks.
                          "the selling by Italian banks is the most emphatic example yet of a broader trend: banks sold €46 billion of government paper in June across Europe, taking the total reduction since the start of this year to €257 billion."
                          " that sovereign debt is not the place to be in a world of rising interest rates, said Jefferies’ senior European economist, Marchel Alexandrovich."
                          If ZIRP remains, all interest-income is stillborn. If interest rates go up, public debt blows up.
                          "End of a century of illusions"

                          Here is a chart of money printing. Notice what happened when Nixon was forced to close the gold window. Mid 1971,
                          Surprise, surprise, look at this chart,


                          • Real Value Added, VIX and VEGA,,, lefties going broke

                            The CBs buy up the stock market to keep valuations up. It seems to have been working up til now.
                            "Thanks to Jesse Felder, we recently stumbled upon a measure of economic conditions that has reliably signaled every recession since 1948. The data point, Real Value Added, is currently in negative territory and may, therefore, be a harbinger of an economic downturn. If it is a false signal, it would be the first in a 70-year history of observations."
                            "Of concern, however, is that negative RVA readings have an impeccable pattern of signaling recession as a coincident indicator."

                            We aren't way negative yet. Wait til February.
                            An Indicator Of Peril | Zero Hedge

                            Nasdaq is tumbling and the VIX is exploding, As VIX Explodes, A Painful Warning: The Vega Of VIX ETFs Has Never Been Higher | Zero Hedge
                            The net Vega of VIX,

                            Eliminating ALL the middle-men, Great Disaster Looms as Technology Disrupts White Collar Workers - GoldCore Gold Bullion Dealer

                            “The economy in the UK is not stable. It’s in the aftermath of the biggest financial crisis since the great depression, and there’s still a lack of awareness in the political classes about what actually caused the crisis in the first place,” Keen said.

                            “The Tories were incredibly successful in convincing the electorate that the crisis was caused by government spending, which is absurd. That is technically saying government spending in the UK caused the financial crisis in the United States. Which is just nonsense.

                            “And that gave us austerity for the last 10 years. That austerity has actually further weakened the economy.”
                            "Keen says the level of private debt in the UK peaked at about 195 percent of gross domestic product (GDP) post-crisis. While it is now down to about 170 percent of GDP, it is roughly three times the level of debt England carried before the Margaret Thatcher era, he says."
                            "What is cause for concern, Keen says, is what he calls the “zombie-to-be” economies, such as Australia, Belgium, China, Canada, and South Korea, which avoided the 2008 crisis by borrowing their way through it."
                            "Keen sees China as a terminal case. It has expanded credit at an annualized rate of around 25 percent for years on end. With private sector debt exceeding 200 percent of GDP"

                            " Illinois’ leftist tax-and-spend politicians are continuing to increase all sorts of taxes, which were already high in the first place.
                            The state just passed a 32% income tax hike."
                            "Illinois is the most financially distressed state in the US. Every month, it spends $600 million more than it takes in."
                            " According to a former budget adviser to the governor, soon more than 25 cents of every tax dollar collected will go to retired state employees.

                            Politicians in Illinois—like a number of other distressed states—have amended their state constitutions to prohibit reducing these pension payments."
                            "California’s public pension system is also broken beyond repair. It’s $750 billion underfunded."
                            "Unfunded public pension liabilities in the US have surpassed $5 trillion. And that’s during an epic stock and bond market bubble."

                            "The global economy really has suffered some horrible fate, but what? Inflation underwhelms because the economy does and has, but policymakers in 2017 are trying to figure out why in a way that leaves them blameless."

                            "Today, we stand back… and our mouth drops open as we behold a bigger picture – a breathtaking tableau worthy of Bruegel or perhaps Bosch.
                            Yes, there are the sinners and the saints… the fools and the rascals… the blessed and the damned. All there.
                            The scene brought to light by the latest connecting of dots answers the No. 1 economic question of our time: What went wrong with the 21st century?
                            The simple answer: Economists backed a truck over it. "

                            "In fact, by some calculations – using non-fiddled measures of inflation – growth has been negative for the whole 21st century. "
                            "Political and social developments have been similarly dud-ish – including the longest, losingest war in U.S. history… the biggest government deficits… the most vulgar public life… the least personal freedom… and, in our hometown, Baltimore, a record murder rate.
                            What went wrong?"

                            "Debt is a burden that the past imposes on the future. As the weight increases, it becomes harder and harder to move forward. (In their book This Time Is Different, Harvard professors Rogoff and Reinhart showed that as debt increases, growth declines.)"


                            • Blowing out the bond markets,,retail,,hot money in housing

                              Here are 2 articles from Armstrong where he talks about previous predictions.
                              The thing to keep in mind is; he predicts a crash in sovereign (GOV) debt.
                              Illinois comes to mind in that they can't possibly pay what they owe. California is in the same boat.
                              In 1985, Armstrong predicted a big change in the confidence model on 2015.75 On that day, Russia entered the war in Syria. Since then, we see various countries moving towards the umbrella of Russian protection or cooperation. Germany being the most notable.
                              China has now said that it will block an attack on North Korea.

                              Fear / confidence in Pox Americana is waning. I suppose that this shrinkage of confidence will affect the sovereign bond market at some point.
                              September 29 – U.S. Treasury Secretary Steven Mnuchin says that the debt ceiling will be breached on this day if Congress does not raise it by then.

                              September 30 – If Congress does not pass a budget by the end of this day, there will be a government shutdown just like we witnessed in 2013.

                              On top of everything else, the month of September is when the Federal Reserve is scheduled to begin unwinding their 4.5 trillion dollar balance sheet…

                              12 Critical Events That Are Going To Happen Over A 40 Day Period From August 21st To September 30th
                              I suspect that one of these events will shake confidence.

                              The CBs pumped in money to save the markets. They have done their share of making bond markets go completely crazy.
                              An Insane Bond Market In 4 Charts: "Italian Junk Bonds Yield Less Than US Treasurys" | Zero Hedge
                              Italian banks are so bankrupt that their debt should demand 25---30 % interest. They pay 2.2 %
                              8/11 Central banks are hiding the true price of risk – Mises Institute No doubt.
                              "Americans had borrowed more than $1.443 trillion in student loans and $1.116 trillion in auto loans through the first quarter of the year. "
                              Drowning: Debt Hits ALL-TIME High!Â*

                              America has 5 times the retail space per person that France has. Kunstler says that it is going to shrink drastically.
                              Charles Huge Smith believes that the elites will shift into BTC to avoid getting vaporised in the meltdown.
                              Goldman Sachs tells us that the FEDS are going after people who don't pay capital gains tax on cryptocurrencies.

                              "Thanks to dark pools, off-market trading operations, and foreign governments providing shields for undocumented exchanges of currency, commodities, and in some case equities (so as to hide stock market purchases by foreign central banks) the crash could be 90% complete before trading even begins at 9:30 a.m. Eastern Time, "
                              "private stock markets housed inside some of Wall Street’s biggest banks. Created to let big investors swap large blocks of shares in secret, they’ve expanded to become a significant part of daily stock trading. More shares now change hands in dark pools than on the New York Stock Exchange."
                              "total volume of the NYSE and NASDAQ combined was far less than the private dark pools and thus provides and advantage to the large financial houses when preparing for or initiating a crash"
                              "This time it is truly different as the average person will be so swamped by the liquidation of equities long before the market opens,"
                              " In the end, the government will be forced to swoop in and buy what is left of most portfolios with guarantees from the Federal Reserve and emergency action by Congress to nationalize pension program, IRAs, and 401K’s to prevent retirees from being put out on the street. "
                              I don't see this happening smoothly.

                              Hot Chinese money flows into housing and the locals can no longer afford it.
                              Last edited by Danny B; 08-12-2017, 12:30 AM. Reason: spelling


                              • Socialism vids

                                We currently have an opioid epidemic and an alcoholism epidemic.
                                Socialism sounds like a good system as long as you don't examine too deeply,
                                Our system can only end in one outcome,
                                David Icke weighs in,

                                The smart contract platform
                                Socialism rises,,, everything else falls,
                                With socialism, there is an ever-increasing number of bleating parasites that NEED your money. They don't go away,