Economic pressures

[Danny B]

Lots of headlines

Is California's Second Biggest Utility On Verge Of Collapse Next: Edison Plunges After Saying It May Be Responsible For Deadly 2018 Fire
First PG&E, now Edison. Buy popcorn AND a generator.
Boeing Backlash: India’s IndiGo To Order 300 Jets From Airbus
"IndiGo "is close to placing a near-record order for over 300 Airbus A320neos." "
That is going to suck in Seattle,
India threatens to ground Airbus jets over failure of its US Made engines

Has California Lost 'The Mandate Of Heaven'?
"Beneath the surface, pressures are building and resilience is eroding, and when the tipping point is reached the transition will not be gradual and controllable, it will be non-linear and uncontrollable..."
Keep your BOB packed.

BOJ To Start Lending ETF Shares To Prevent Market Freeze
"The BOJ is on track to surpass the world's largest pension fund, the Government Pension Investment Fund, as the top holder of Tokyo-listed stocks as early as next year."
That will go down in the history books.
Cyberattack Shuts Down India's Largest Nuclear Power Plant
"Kudankulam Plant was hit by a cyberattack and authorities were already alerted of the threat months in advance"
Not Even The Algos Have Any Idea What's Going On Any More
FOMC Preview: If The Fed Doesn't Cut, Brace For Impact; If The Fed Cuts... Then What?

U.S. Shale Braces For Brutal Earnings Season
No doubt.
Armstrong; "The IEA report that was released today suggest that unless global growth recovers, there will not be a sufficient demand for the current production and a large surplus will be built"
"Senator Lindsey Graham stated that this strategy will “deny Assad and Iran a monetary windfall,” further adding, “We can also use some of the revenues from future oil sales to pay for our military commitment in Syria.” However, some question whether the international community will consider this a war crime. Others question the true worth of Syria’s oil reserves. According to the 2018 International Energy Statistics survey, Syria ranked #75 in total petroleum and other liquids production."

Leaving Illinois: "Does Anybody Care About People Like Us?"
"“We’re talking about the bag tax, a progressive tax, a rain tax, a mileage tax, a TV tax, a beer and tobacco tax, a farm tax, a parking tax, a car trade-in tax..."

[Danny B]

The emerging problem that must not be named

The headlines are dancing around the real problem.
10/31 Derivatives’ danger may have gotten too big for central banks, Rickards says – GATA
10/31 What has freaked out the US Fed? – Technical Traders
10/31 Treasury prepares another debt deluge as Fed wades into market – Bloomberg
10/31 How the student debt complex is crushing the middle class – Time
10/30 Fed cuts interest rates, but indicates a pause is ahead – CNBC
10/30 Fed expected to cut rates, but Powell discussion could rattle markets – CNBC
The pile of crashing derivatives grows ever-larger. Wall Street is demanding further rate cuts. Further rate cuts crash more derivatives,, mostly interest rate swaps.
10/31 The toxic bubble of technical debt threatening America – Atlantic
Yes, "technical debt", a euphemism for derivatives.
'It Won't Be Sufficient' - Wall St Reacts To Powell's Final Hawkish 'Insurance Cut'


The Guardian expects, MMT, UBI and, chaos.
https://www.theguardian.com/business...rite-the-rules
10/31 Rosy investment assumptions drive up pension liabilities – Bond Buyer
Until recently, the public pension funds refused to believe that 7% returns were a thing of the past. If they were more realistic, they would have to demand enormous contributions from current workers to maintain payouts in the future.
10/31 A budget deficit looming, L.A. agencies asked to save $100m – Los Angeles Times
10/30 Global economy faces ‘scary situation’ – Dalio warns – GoldCore
Ray Dalio is the bond king. He has automated ALL trading and, doesn't use humans for decisions. Possibly, it has occurred to him that the economy does not work if people don't have jobs.

10/31 ECB will miss its inflation goal – ABN Amro – FX Street
10/29 China’s monetary policy is being hamstrung by inflation surge – Bloomberg
The ECB just isn't trying hard enough.
10/31 Why you should embrace a minimalist retirement – MarketWatch
Because you won't have any money after the pension funds blow up
10/30 Spanish solar developer plans 3.3 gigawatts of subsidy-free PV farms – REW
Murray Energy - America's Largest Private Coal Miner Files For Bankruptcy

Israeli Diplomatic Missions Worldwide Suspend Work Over Conflict With Finance Ministry
The GOV won't reimburse the diplomats for expenses that do not have a receipt. The diplomats have gone on strike worldwide. Coke and prostitutes are a necessity of the job.
Dying Populations, Not Climate Changes,Are The Biggest Threat To Western Civilization
You Are The Slave Property Of A Corporation Called The United States Of America - Must Watch
Well, the slaves have gone on a reproductive strike.
Details on the bad news.
The Boom Turns Into A Bust - Here are 14 Signs That The U.S. Economy Is Steadily Weakening

[Danny B]

Socialism in the long view

Jewish Encyclopedia
The unedited full-text of the 1906 Jewish Encyclopedia

SOCIALISM:
By: Joseph Jacobs, Isaac A. Hourwich
Theory of civil polity which advocates public collective ownership, production, and distribution. Jews have been prominently identified with the modern Socialist movement from its very inception. "
"The essence of Marx's theory, which won for it the name "scientific socialism," as distinguished from the "Utopian socialism" of his precursors, is the principle of social evolution. While Utopian socialism sets before mankind an ethical ideal of a perfect society, and hopes for its ultimate acceptance by virtue of its inherent beauty, Marx maintains that the industrial evolution of capitalistic society leads toward socialism, regardless of its ethical merits, and that, moreover, this industrial process molds ethical standards in consonance with the industrial tendencies of the time. "
The corporatocracy has NO ethical standards

"Marxism, Socialism, or Communism in practice are nothing but state-capitalism and rule by a privileged minority, exercising despotic and total control over a majority having virtually no property or legal rights. As is discussed elsewhere herein, Talmudic Judaism is the progenitor of modem Communism and Marxist collectivism as it is now applied to a billion or more of the world’s population."
"Marx did not actually originate anything, but merely “streamlined” Talmudism for Gentile consumption. The Socialist” system he conceived merely brings about a practical means for a state dominated and controlled through a Jewish minority to rule by absolute dictatorship over everything and everyone, a concept which has been carried out very successfully in those countries of the World brought thus far under Marxist dictatorship."
Dilling X: The Jews and Marxism — Socialism — Communism

Socialism attempts (on the face) to bring everybody up. In practice, it brings everybody to a low level. Socialists don't plan to kill motivation but, that is the result. How would Howard Huges do in a socialist country? Socialism kills hope for a better future. It imagines that all people are equal. It allows no reward for people who ARE better than average. Since it disallows ownership of private property, It erases motivation to save or work for a better future.
This is one facet where socialism differs from fascism.
Fascism and wage-slavery allow some advancement. Socialism does not,,,, unless you chose your parents very carefully.
All socialist States have to erect some kind of barrier to keep their motivated people from escaping. Many years ago, I went to East Germany and Cuba. Both of them had lots of buildings falling down. Socialism is a dead end but "they" keep trying to force it on various populations.

All the FED heads for decades have been jews. All the FED heads have been in agreement that we must have 2% price inflation,,, for stability. 6% monetary inflation was necessary to reach 2% price inflation.
FED head, Paul Volker, a Presbyterian, said that there is NO justification for a target of 2% price inflation.
This constant 6% monetary inflation was directly responsible for the great riches doled out to the money renters.

"the 2018 book Collusion: How Central Bankers Rigged the World by Nomi Prins, a former Wall Street executive who saw the light and is now informing on the crimes of Western imperialism-capitalism. Prins gives a thorough and chronological account of central banker doings in key areas"
"The essence of her thesis is that the US orchestrated collusion among the central bankers of many of the G20 economies and the Eurozone primarily in order to save busted US banks, and then also to maintain the 1%-enriching neoliberal policies of QE, ZIRP and no-strings attached bailouts."
"This acknowledgement that – as long as there are taxes and printed money – the government must always, inescapably be the biggest actor is actually the very foundation of socialism, "

"Young US adults increasingly favor socialism after capitalism’s broken promises. But US already has socialism – for the rich"
" Nearly three-quarters of young Americans are likely to vote for a socialist candidate, a new poll reveals, suggesting capitalism has lost its appeal. But is it really capitalism when government funds all but the working class?

Young Americans view socialism much more favorably than their elders, with 70 percent likely to vote for a socialist, according to a poll released on Monday by the Victims of Communism Memorial Foundation. The survey also found that 50 percent of millennials (aged 23 to 38) have an unfavorable view of capitalism. Only Generation Z (aged 16 to 22) was more anti-capitalist – 51 percent view the economic system negatively."
https://www.rt.com/op-ed/472076-mill...ocialism-rich/

"The report found that support for communism increased by 36 percent from 2018’s numbers as capitalism continues to go out of style. It’s likely due to a shift in higher education, where Marxist ideology is taught favorably.

“The historical amnesia about the dangers of communism and socialism is on full display in this year’s report,” said Marion Smith, Executive Director of the Victims of Communism Memorial Foundation.

“When we don’t educate our youngest generations about the historical truth of 100 million victims murdered at the hands of communist regimes over the past century, we shouldn’t be surprised at their willingness to embrace Marxist ideas."
https://www.zerohedge.com/political/...ote-socialist-

Here is a list of Rothschild owned banks. I'm not so sure that it is accurate but, they do have a lot of control.
https://europeanmediacentre.wordpres...schild-family/

78 members of congress hold israeli passports.
Most of the FED heads have been jews.
Financial deregulation and legislative capture by bankers are directly responsible for the unfolding crash.
As legislative capture has impoverished the people, they leap to embrace socialism.
Our schools are infested with people who teach very favorably about socialism.
Is this all just co-incidence?

[Danny B]

UBI, chaos and, morality

Our current world is a mix of ISMS. We are plagued by fascism, thinly disguised as crony-capitalism. Most of the uber-wealthy received their wealth from legislative advantage,,, certainly not hard work or brains. Many have abused this legislative advantage beyond bounds. Madoff and Milken come to mind. The Central Bankers have repeatedly come to the rescue of the private banks. After all, the CBs are owned by the private banks. The enormous monetary inflation required to rescues failing derivatives is having a very bad effect on the rest of the economy. There is chaos worldwide.

At the same time, we have emerging socialism to hold social unrest at bay. It isn't working very well lately. The corruption is too powerful and, too entrenched. 44 million in America receive direct government assistance. 23 million "work" for the government. Think TSA.
What happens when the sovereign debt crash unfolds? We have spent the last 150 years inventing labor-saving devices while, at the same time, trying to keep full employment.

Trump railed against GOV spending when he was a private citizen. Once he got in office, it was a different story. HUGE increases in military spending. The Pentagon is the largest employer in the world. The wars are a big jobs program. Same with defence contractors.
The American economy revolves around wars and war industries.
America Has Been at War 93% of the Time 222 out of 239 Years – Since 1776

Argentina, though a bountiful country has a major food crisis. There are anti-establishment riots in many countries.
When recession comes, expect central banks to rewrite the rules – Nouriel Roubini
There is no "playbook" that takes into account automation and birth control AND the search engine.

Just how will the rules be revised to take all of this into account? For the present moment, it looks like universal basic income will be brought to the fore.
The corporatocracy brought us economic neoliberalism. A whole new framework for screwing the actual workers.
PEPE ESCOBAR: The Age of Anger Exploding in Serial Geysers
"The presidential election in Argentina was no less than a game-changer and a graphic lesson for the whole Global South. It pitted, in a nutshell, the people versus neoliberalism. The people won – with new President Alberto Fernandez and former President Cristina Fernández de Kirchner (CFK) as his VP.

Neoliberalism was represented by Mauricio Macri: a marketing product, former millionaire playboy, president of football legends Boca Juniors, fanatic of New Age superstitions, and CEO obsessed with spending cuts, who was unanimously sold by Western mainstream media as the new paradigm of a post-modern, efficient politician."
https://consortiumnews.com/2019/10/2...erial-geysers/

Luiz Inacio Lula da Silva, better known as Lula, president of Brazil ... Lula quit school after the fourth grade. He came up with a UBI program that the bankers didn't like but, they couldn't stop. He gave everybody a few bucks and, this brought them some confidence. They spent the money and, it lifted the economy. Here is an article about the ongoing efforts at implementing UBI around the world.
https://www.vox.com/future-perfect/2...-workers-party

The chaos is growing worldwide. The PTB are lamenting the fact that the masses are losing confidence in Government and banking and,,, I suspect that UBI will be rolled out to avoid worldwide revolution.
Crony capitalism was made possible by a complete lack of morality in the legislature. Power corrupts so, I don't expect morality to make a return to the halls of power.

[Danny B]

Disintegrating debt

First, a cross-post about Kunstler.
https://kunstler.com/cluster****-nat...the-jig-is-up/

https://kunstler.com/cluster****-nat...of-fanaticism/
https://www.dailymail.co.uk/news/art...ton-Obama.html
https://www.bing.com/search?q=rep+go...FORM=QBLH&sp=1

Armstrong; "Only during the final wave does the government start to unravel in a Public Wave. In a Private Wave, stock markets outperform bond markets. Here, people lose their faith in government rapidly. By the half-way mark in a Private Wave, the government becomes aggressive because it sees it is losing control of society. This is why governments will become much more aggressive during the last part of this wave into 2032."
https://www.armstrongeconomics.com/a...private-waves/
Armstrong writes about the rotation out of public debt and, into private debt. I don't agree.

"Let us further assume that McKinsey in their annual banking survey of 2019 are correct when they effectively say that 60% of the world’s banks are consuming their capital before a credit crisis. "
ZIRP eats up everything.
"And note the IMF recently warned that $19 trillion in corporate debt is a systemic timebomb, and that collateralised loan obligations and direct exposure to junk held by the US commercial banks is approximately equal to the sum of their equity."
So, how will private debt survive unscathed?

Keiser Report. Max reports that emerging unicorns fire up a BIG IPO,,,,,, and then, The principals in the unicorn pull their money out,,,, sometimes just before the IPO goes public.
https://www.youtube.com/watch?v=mFWZgLeLhRo&t=359s
11/01 Bank run in rural China tests faith in thousands of lenders – Bloomberg
MAGA, baby.
11/01 Wild day in China dollar bonds sees record drops – Bloomberg
11/01 What will stocks do when “consensual hallucination” ends? – Wolf Street
11/01 US stock bubble has already popped, Peter Schiff tells Boom Bust – RT

11/01 Fiscal policy “flop”: US gov’t spent hundreds of billions, and GDP slowed – ZH
Guaranteed that it would have dropped much more.

11/01 Japan must either open up to foreigners or face economic collapse – Forbes
11/01 Japan is in decline — its massive debt is no model to follow – Daily Caller
"In 2013, the Japanese government recorded relative poverty rates of 16%. This was the highest on record. Another study showed that 1 out of 3 Japanese women ages 20-64 and living alone were living in poverty. Japan has some of the highest rates of child poverty in the developed world, according to a Unicef report."
No kidding,,, quite a mystery why the population in Japan is falling.
https://www.bloomberg.com/graphics/2...rtility-crash/

11/01 Fed has shovel, digs bigger hole – MarketWatch
11/01 What will stocks do when “consensual hallucination” ends? – Wolf Street
Do NOT worry. You will learn the answer to this question before long.
11/01 US stock bubble has already popped, Peter Schiff tells Boom Bust – RT
11/01 Negative interest rates are essential for Swiss economy, central bank says – GATA
Somebody spiked their chocolate with airplane glue.
11/01 US Army major: Trump’s antiwar speech deserved a better reception – ZH
50 million Americans depend on war.
11/01 Ending wars – John Stossel, Creators Syndicate
He must be some kind of anarchist.

[Danny B]

Phantom wealth everywhere,,, Real wealth hard to find

“We're Firing Trillion Watt Lasers into the Sky”: Top Scientist Admits to Weather Modification on CBS.

Officials in the US Navy and Air Force recently made clear that they hope to use the lasers they’re developing in the name of anti-ballistic missile defense to shoot down cruise missiles as well.
11/02 Global anxieties soar as China’s military might roars, Japan says – Zero Hedge
They were all smiles when the posed for pictures on the Belt & Road initiative.
11/02 Electric scooters set to transform the $7 trillion mobility market – Oil Price
They will be a boon to the emergency rooms at the same time.
Central Banks & war.
https://www.zerohedge.com/geopolitic...entral-banking

11/02 Fed on ‘thin ice’ by confidently pausing interest rate cuts, investors say – MW
The FED claims to be handing out only $690 billion a week. This rescues failing derivatives. An interest rate cut wouldn't have any beneficial effect on derivatives.
https://wallstreetonparade.com/2019/...media-snoozes/
11/02 Investors reassess the hope-and-hype business model, Grubhub plunges – CNBC
The dumb money isn't near as dumb as it was 10 years ago.
11/02 The Federal Reserve is a barbarous relic – Acting Man
Trump is working on the problem.

South Africa Facing Worst Drought In 1,000 Yrs
In a couple of months, they will be facing the worst flood in 1000 years.

FED chairman Powell;
"From the Chairman’s prepared statement: “Inflation continues to run below our symmetric 2% objective. Over the 12 months through August, total PCE inflation was 1.4% and core inflation was 1.8%… We are mindful that continued below-target inflation could lead to an unwelcome downward slide in long-term inflation expectations.”

Powell: “…The reason why we raised interest rates is because, generally, is because we see inflation as moving up or in danger of moving up significantly, and we really don’t see that now… So, we really don’t see that risk, and inflation expectations have also kind of moved down and sideways both surveys and market based over the course of this, of really the recent months. And… we think that inflation expectations are very important in driving actual inflation, and we’re strongly committed to achieving our 2% inflation objective on a symmetric basis. We think it’s essential that we do that"

Feces-for-brains bankers demand 2% price inflation to bring price stability. All it really does is to finance those closest to the money spigot..
" We’re also, as part of our review, looking at potential innovations, changes to the way we think about things, changes to the framework, that would lead us, that would be more supportive of achieving inflation on… a symmetric 2% basis over time… We’re in the middle of thinking about ways that we can make that symmetric 2% inflation objective more credible by achieving symmetric 2% inflation. And, it comes down to using your policy tools to achieve 2% inflation, and that is the thing that must happen for credibility in this area.”"
Credit Bubble Bulletin : Weekly Commentary: Music to the Market

"2,000 years ago, in Plutarch’s time, it was already ‘old wisdom’ that unhealthy wealth imbalances ended badly for society:" "Even those near the top of the wealth pyramid don’t aspire to live surrounded by an impoverished underclass, forced to live hiding behind their fortifications and guards, hoping the unrest of the masses doesn’t get any worse."
" believe in having a strong and vibrant middle class – something the US Federal Reserve is working to destroy with every intervention. It has been a shameless champion of the entrenched ultra-rich and powerful; at the expense of everyone else. "

"The Three Types Of Wealth

Going further, we can break real wealth into two discrete forms. Primary wealth is the wealth of the land and its functioning ecosystems. It is clear air, fresh water, thick ore bodies, and rich soils:
Secondary wealth is a finished form produced from raw materials. It is primary wealth brought to market. It is fresh produce on the grocery shelf, cut lumber (or even a fully-constructed building), and rolled steel in giant coils:
Tertiary wealth, on the other hand, is not actually “real”. But most people mistake it as a comprehensive representation of “wealth”.

Similar to money, tertiary wealth is merely a claim on primary and/or secondary wealth. A share of General Electic a stock-based claim on the company’s means of production.

And debt (and bonds) is a future claim on money. And money, as we know, is a claim on real things."
"It’s All About The Amount Of Claims

Why is it relevant to parse these distinctions so carefully?

Because there has to be a balance between the claims and the wealth."
"The Wealth Transfer

With the near-inevitability of MMT (a.k.a “free money for everybody”) the wealth transfer will kick into a higher and more obvious gear when MMT arrives (as Charles Hugh Smith brilliantly summarized for us recently).

The basic problem is that money is not real wealth. But newly printed money has real purchasing power. What happens when purchasing power is increased but more real wealth is not auto-magically created at the same time?

Easy: the claims on real stuff become diluted. Every unit of money in circulation has a tiny fragment of purchasing power removed from it when a new unit of purchasing power is created ‘out of nothing."
"Which is why we predict more printing and borrowing. Enormous new piles of money and credit will be issued, likely at ever-lower rates of interest.

The world economy is performing sluggishly and appears to be sickening further. This is due to too much debt. But no matter, the central banker’s response is automatic: The world needs more credit at even cheaper prices!"
"The only remaining questions are whether the wealth transfer comes about in the form of an inflationary destruction, like in Venezuela today, or as a deflationary bust more in the fashion of Greece recently (which lost its ports, roads, and utilities to foreign banks and creditors as a consequence of running up too much debt it couldn’t repay)."
https://www.peakprosperity.com/the-end-of-money-3/

ZH, Demographics & Money Creation... Why Fed Monetization Is Just Getting Warmed-Up
"The weaker the potential growth of demand, the stronger the rationale for the Fed, central banks, and federal governments to delay the inevitable..."
The lack of demand has nothing to do with how much money is in the system.
"Fundamentally Rigged" - Runaway Algos Spark Chaos, Crackdown In World's Most Important Futures Market
"... the chaotic explosion in quotes was caused by a standoff between two firms whose algorithms entered a loop, racing each other to be the market’s biggest player..."

Gundlach: "Intense" Downturn Means "Helicopter Money" Is Coming
""...[MMT] will be part of the transition to a new system – an attempt to forestall the unhappiness by giving money to people..."
Carney's Green Crypto Currency: Prelude To A Financial Meltdown
"...today’s technocrats are hungry for a new fascist solution to the problem of sovereign nation states...We know what almost happened in Germany when the last project funded by the Bank of England failed in 1945..."
Ooou, they used the "F" word.
It looks to be a battle between liberal technocrats and, socialists.

[Danny B]

Crashing Marxism and, rising socialism,,,liqiudity trap

I'll start with Armstrong;
“As we approach the start of BIG BANG (2015.75), which is 26 years from the first crack in Marxism 1989 first observed in China followed by the fall of the Berlin Wall within months, ever since the world has been drastically altered economically. The collapse of the Soviet Union in 1991 was part of this process. That was not a CIA plot, but the unravelling of the Marxist Era. We should witness dramatic political and economic changes going into 2020.05. The bottom of the ECM 2020.05 will also be 31.4 years from the start of the fall of Communism that should culminate in the final stages of the collapse of Socialism. This is part of the cause of BIG BANG that will become focused most intensely between 2015.75 and 2020.05.”

OK, he writes about the fall of Marxism in much of the world. What does that imply for the rise of socialism in the West?
"Socialism is making a major play to win the 2020 elections here in the States. We have an obvious coup unfolding against Trump carried out by the CIA, FBI, and NSA. This target is 31.4 years from the START of the fall of Communism. It is the START of this trend in Western Society NOT THE END!!!!!!! The 2020 election in the USA will be the most contentious since the 1960s and we should expect a rise in civil unrest. It will turn into a major political battle at the peak of the next wave – 2024."

I think the collapse in the confidence of governments has been indeed the pronounced characteristic of this 4.3 year part of the wave. The European and Japanese Bond markets have been destroyed. Both governments are on life support. I think we have some very serious sovereign debt problems and we are looking at that on the state and municipal levels. "
Critical point, "to help keep the banks and governments in play."

“A liquidity trap is a situation described in Keynesian economics in which injections of cash into the private banking system by a central bank fail to lower interest rates and hence fail to stimulate economic growth. A liquidity trap is caused when people hoard cash because they expect an adverse event such as deflation, insufficient aggregate demand, or war. Signature characteristics of a liquidity trap are short-term interest rates that are near zero and fluctuations in the monetary base that fail to translate into fluctuations in general price levels.”

https://www.zerohedge.com/markets/fe...d-states-japan
Berkshire Becomes Global Cash King: $128BN
Farm bankruptcies;
https://www.zerohedge.com/economics/...ankruptcies-24
Also, 400,000 farms have gone out of business in Europe in the last year,,,11 million in the last 11 years. Subsidised small farms in Europe can'\t compete with subsidised large farms in America.
Freight Railroad Traffic Plunged 8% At The End Of October
What happened to the pre-Christmas inventory buildup?
Morgan Stanley Asks "What Returns Can Long-Run Investors Expect In This Market", Offers Frightning Answer
True but, greed keeps everybody in the markets. "Picking up dimes in front of a steam roller"
Ken Fisher Taking Out "Women Friendly" Ads As Redemptions Near $4 Billion

11/02 Warren’s $20 trillion health plan ‘will cause down-ballot damage’ – Politico
She plans to reduce military spending by $800 billion.
CS Monitor, "
"America’s biggest — and only major — jobs program is the U.S. military.
Over 1,400,000 Americans are now on active duty; another 833,000 are in the reserves, many full time. Another 1,600,000 Americans work in companies that supply the military with everything from weapons to utensils."
"Gates can’t even end useless weapons programs. That’s because they’re covert jobs programs that employ thousands.

He wants to stop production of the C-17 cargo jet he says is no longer needed. But it keeps 4,000 people working at Boeing’s Long Beach assembly plant and 30,000 others at Boeing suppliers strategically located in 40 states. So despite Gates’s protests the Senate has approved ten new orders."
40 States, hum. Strange spread.

11/03 The Fed’s policy is like swatting flies with nuclear weapons – Forbes
Those aren't flies. It is a pile of bad derivatives the size of RODAN.
https://encrypted-tbn0.gstatic.com/i...r3kPT-UZcQAHCh

[Danny B]

Socialism, mental health & UBI

Mike King writes about we have been screwed by the Central Bank and income tax.
THE SCAM OF INCOME TAXES AND CENTRAL BANKING
This is what I wrote back to him.
John Maynard Keynes was a brilliant guy. At the Versailles conference where Germany was punished, he foretold that the victors had laid the foundation for the next war.
Keynes also said that; within 80 years, we would be so rich that we would only have to work 15 hours a week. This is verbotten.
First, because we wouldn't be generating enough wealth for the parasites. Second, because mankind stagnates with too much free time.
George Jetson only works one hour a day and 2 days a week.
Shumpeter came up with the plan of creative destruction. Wars fill the bill on that. War spending keeps us producing without actually accumulating riches. Keynes said that we needed continuous war to keep the economy stimulated.
Read the CAFR one site by Walter Burien.
CAFR1 Home Page

GOV admits to having something like $230 trillion stashed away. They collect this at the non-16th amendment level. Taxes, fines and fees. The University of California system reports that it has $91 billion stashed away. Yet, they scream that they have to raise tuition.
The endless bites out of our wallets (and purses) is what keeps us working.
The Report From Iron Mountain says that war is how we organize society. Peace must be avoided at all costs.
So, yes, the CBs rob us blind by way of currency inflation. The State robs us blind by way of taxes, fines and fees.
Post Hiroshima, it became too dangerous to have full scale kinetic war. The cold war was invented to pursue creative destruction without actually killing the biosphere.
It stimulated the economy enormously,,,, a la Keynes.
It also served the purpose of uniting us against a common (perceived) enemy.
A family and a clan is a natural socialist, genetic group. A nation State is an attempt to stretch the umbrella of clan protection over a disparate group that is NOT a genetic group.
Mutual prosperity and / or mutual threat are used as the glue to hold an un-natural group together.

At the upper levels of GOV, there is an appreciation that we must keep working to avoid the stagnation seen in the ghettos, Abo reserves, Indian reservations, and, Alaskan natives who get oil money.
You must contrast this with the wholesale destruction of job niches brought on by automation. It is only going to get worse because there is NO cure for efficiency.
The coming collapse is a collapse of State debt because, it tried to support everybody who had lost their job niche.
https://www.zerohedge.com/political/...ment-has-grown

Armstrong predicts the collapse of European socialism. Socialism will be gone but, the people will still be there. Socialism is the firewall between Darwinian pressures and ,,,people who just can't compete in the private labor market. With the rise in automation, the included numbers are just astronomical. What will happen to public sector employment when public finance has collapsed?

What happens to mental health when everyone is receiving UBI?
https://www.youtube.com/watch?v=NX2ep5fCJZ8&t=31s
What happens when men are cast adrift?
https://www.youtube.com/watch?v=-kkUNZChoeM&t=444s

[Danny B]

Melt ups,,,, followed by melt downs

At one time, the banks were given a couple $trillion in excess reserves that were kept on deposit at the FED,,, collecting interest. Welfare for banks. Now, the FED is having to inject as much as $600 billion a week. The total money injected or, on standby in the 2008 crash was $27 trillion. Various monetary authorities said that the whole system was at the edge of an abyss. Seems like the abyss has re-appeared.
Max Keiser;
“If these banks, like JP Morgan or Deutsche Bank, are unable to settle trades because they don’t have the cash...then when the end of the quarter comes they’re gonna have to, by law, if there is the rule of law anymore, it’s an open question, announce that they’re insolvent. And therefore, they’re gonna set off the cascade... and [it] will be the continuation of the 2008 crisis, but much much worse,”
" The Morgan Report, which covers economic news.He explained that the banks are required to have a certain reserve of cash on hand and if they don’t, they have to borrow overnight to meet this requirement. They may go to other banks to make their books square, but if other lenders turn them away, they have to ask the Fed as a last resort.

“That’s kind of telling that [in] the banking system at large, no bank would loan to me, because I don’t trust the bank that needs the money…So it puts some caution into the system,”
https://www.rt.com/business/472470-f...-intervention/
So, what is the obvious solution??
11/04 Fed’s plan for bailing out Wall Street banks: let them overdraft their accounts – WSOP

11/04 Warning: credit delinquencies to skyrocket in Q4 – Technical Traders
Just imagine what happens when a 30--1 credit leverage goes into reverse. The banks will need a LOT more cash..
Chicago headed for insolvency, get the hell out now – Mish
Panic early or, NO SALE of your RE.
11/04 Harry Dent: absolutely massive real estate crash coming to China – Market Sanity
64 million empty housing units with BAD drywall rotting away. Dozens of empty cities that nobody wants.

11/04 Will “post-truth” politics be capitalism’s undoing? – Salon
The criminal is crony capitalism.
11/04 More airports consider going off the grid to avoid power outages – CNBC
The airlines and airports have proven to be especially vulnerable to solar storms.


This is off-topic BUT, a very important subject.
Scientists Are Working on a Pill to Erase Memories
"Full results of the study have been submitted to a journal, according to the National Post, however, the Post also reports that Dr. Brunet has been hesitant to discuss the results due to the sheer speed and success of erasing specific memories.:"
https://themindunleashed.com/2019/11...-memories.html
Thanks to the pharmaceutical drug pushers, there are millions of people who are addicted and can NEVER forget the rush,,, the high.

42,000 Plaintiffs Sue Bayer Over Glyphosate
The Trump effect,,, law & order
Keystone Pipeline Shut Down After Leaking Oil In ND
The original protests were centered on the contractor who had a history of shoddy work and, numerous leaks.

Zero Hedge;
Africa's Socialism Is Keeping It Poor
The undeniable fact remains that Africa has the lowest living standard of all continents after Antarctica...

American help;
Pentagon Expands Permanent Africa Presence With $110M Drone Base In Niger
Armed drones going operational against regional ISIS factions...
Russian help;
Russia to bring back to life Nigeria’s major steel plant project, abandoned for decades

https://www.rt.com/business/472464-r...nigeria-plant/
Hedge Funds Invested In PG&E Lose $4.1 Billion In Just Four Trading Days
NIRP in Europe;
Lagarde: "We Should Be Happier To Have A Job Than To Have Savings"
"Isn’t it true that ultimately we have done the right thing to act in favor of jobs and of growth rather than the protection of savers?"

We Have Melt-Up: Futures Jump To New All Time High On "Trade Optimism"
Gravity will return eventually.
Blain: "It Feels We've Reached The End Of Something"
"Time has been called on this particular era of irrational market exuberance."
Dow Futures Surge To Record Highs On Yet Another "US-China Trade Deal Close" Headline
It\s called, "hopium"
Four Reasons Why The "Trade Deal" With China Remains A Farce
Aramco IPO Valuation Baffles Bankers With Trillion Dollar Wildcard
...somewhere between $1.22 trillion and $2.3 trillion...

MbS has approved a sale of part of the national oil company. Saudi Arabia is desperate for cash. They have even opened the country up to tourism. It is hard to say just what the IPO is worth because Saudi has never been honest about oil reserves. Also, with a big fall in the economy, oil demand will fall even further.
11/02 Alliant to build 1 gigawatt of solar power in Wisconsin – JT
11/02 Rise of renewables may see off oil firms decades earlier than they think – Guardian

[Danny B]

The inception and, result of the welfare State

The warfare-State started when the war industries got a war started on the Korean peninsula. It grew enormously with Viet Nam.
When did the welfare state get started?
"Johnson and his staff lost no time after Kennedy’s murder in designing their vast governmental expansion, to be financed by America’s post-World War II abundance of wealth and prosperity. “I am a Roosevelt New Dealer,” declared Johnson the day after the assassination. “Kennedy was a little too conservative to suit my taste.”

When Johnson came to office, Americans overwhelmingly trusted the federal government to expand benignly across the continent. World War II had generated widespread confidence in what Washington could achieve. The Johnson administration leveraged that confidence by radically altering the constitutional limits on legislation, regulation, and spending. The Johnson administration shifted the governance of the country from a constitutional republic rooted largely in localism to an opaque, vast regulatory state rooted inside the Beltway."
"What the president outlined was a cornucopia of new programs and funding mechanisms that would seamlessly seep into almost every facet of life "
"Johnson altered forever the relationship between the average citizen and the national government.

Just as the affluence and suburbanization of middle-class America was growing and expanding in ways that seemed boundless at the time, Johnson’s vision was to create an attendant kaleidoscopic role for Washington. Power shifted inexorably from the people to Washington’s managerial class, a growing blob of a bureaucracy."
" The poor would no longer be poor."
"Ironically, Democratic liberals expressed the most initial misgivings about Johnson’s vision. But they soon climbed aboard what quickly became a governmental gravy train of federal spending built upon the central warning of the Great Society: that if the government was not expanded to address these perceived problems, national chaos would ensue,"
https://www.theamericanconservative....uclear-family/

LBJ went a long way towards destroying the nuclear family. The post 1971 bankers went a long way towards the same thing. Their constant monetary inflation caused constant price inflation. This price inflation always outran wage inflation. A family just couldn't survive on one paycheck. Women were dragged out of the household and, into the labor force.
This great "liberation " of women had enormous destructive effects on the children.
The number one job of the parents is; to make their children feel important. Without that, most children are crushed by insecurity for the rest of their lives.
8 In 10 Millennials Believe They Aren't 'Good Enough' ...Massive Inferiority Complex

The result;
https://www.studyfinds.org/majority-...ed-generation/
The destruction of the nuclear family has been especially bad in the black community.
https://www.youtube.com/watch?v=1DxHL2i3cZo&t=690s
Boys without fathers never learn to be men. They never learn to control their impulses.
The democrats have a long history of destroying the family by "helping" it.
Women in government do their part too. They naturally want to coddle people. The societal changes brought on by the welfare State won't easily be reversed.

[Danny B]

Mental health and, the economy

The Overton Window is a structure that attempts to limit discussion to a set of reasonable subjects. It seems to be getting quite a bit of expansion lately.
11,000 Experts Propose Final Solution To Global Warming Just Kill Billions Of People
Conservative Party Hopeful Called For The Culling Of Poor People
The emerging discussion that must not be named; getting rid of the Central Bank.
Everybody knows that the State MUST collect taxes. Here is a vid produced by the IRS that proves this to be true.
https://www.youtube.com/watch?v=VxU6n4pAnrU
For the younger generation, mental health is crashing. Suicide, addiction and anxiety are rising. They just don't see a good future for themselves. Unfortunately, things won't get better as automation eliminated even more job niches. Bummer.

The piss-poor solution from the state; grab more tax money to support more of the blob state.
https://www.armstrongeconomics.com/w...al-wealth-tax/
11/06 The world has gone mad and the system is broken – Ray Dalio
Ray Dalio uses computers to do all the work.

[Danny B]

Gold for the big guys

Tried all day to post something interesting. Blocked every time. I even cut it in half,,, no difference.
Edit STILL can't post my blurb on gold. It also got erased from my drafts folder. I have a copy only because I sent it to myself. Besides that, my computer shuts down spontaneously about 3 times a day.

[Danny B]

Just headlines

Ron Paul said that we are soon to see the end of fiat currency AND the welfare-warfare State.
https://www.youtube.com/watch?v=NMl5zGFF33Y
Don't hold your breath waiting. Fiat currency is here to stay.
What are the real reasons for declining productivity? – Mish
Declining demand
Corporate profits are worse than you think – Real Investment Advice
Wait a minute, "they" have to service $19 trillion in corporate debt.
"Firstly, note the Fed has managed to turn markets into a graveyard. Void of any pulse, void of any intra-day price discovery. Ever since the introduction of ‘not QE’ the character of markets has changed:"
"When yields collapsed this summer pension funds were forced to allocate to record levels into stocks. 47% allocation of assets into risk assets, the highest since 2007. Risk assets are again viewed as risk free."
https://northmantrader.com/2019/11/07/melt-up/

11/08 The fools are rushing in again – Daily Reckoning
Yep, stocks are above their their 200 day moving average but, nobody wants to miss out on the next leg up.
11/08 Alasdair Macleod: plans for a global dystopia – GATA
Will that bring the "omniviolence" that somebody was writing about?
11/08 The economic crash so far: a look at the real numbers – Technical Trader.
NO. don't look!
11/08 Decline in profit margins and investment suggests recession due now – Mish
Buy more popcorn.

11/07 A return to sound money is the major threat to bitcoin, says Peter Schiff – BTC Mgr
That WILL happen just after we return to honest politicians.
Rense, 62% Of Trump Supporters Say There Is NOTHING He Could Do To Lose Their Support -
11/08 Donald Trump is all alone – Atlantic

[Danny B]

Rickards,,,melting up or, melting down, it's all melting

Jim Rickards was the lead counsel when LTCM went bust when Russian bonds defaulted. He managed the unwinding of Long Term Capital Management when several big U.S. banks ponied up the money to save the system.
Jim Rickards was the top guy that the 16 U.S. intelligence agencies brought onboard when they want to use the war-game computers to predict the future of the U.S. economy.
Jim Rickards said that; in 2008, the world was only hours,,, or minutes from having every stock & bond market in the world shut down.. "Nothing was solved, all that happened was; the debt was lifted from private hands to government hands." "If things changed, they changed for the worse."
The Central bank bailed out Wall St. In the next crisis, who is going to bail out the Central Bank?"
https://www.youtube.com/watch?v=puh8cpI-dHM

Ron Paul is still in a downer mood.
https://www.youtube.com/watch?v=DZC9oZpukrQ
Here is a good, concise vid on NIRP. It wipes out a LOT of people and, helps just a few.
https://www.youtube.com/watch?v=FiYTmTHFa9E&t=439s
Ice Age Farmer has been warning about losses in food production for quite a while.
https://www.youtube.com/watch?v=cTGXsyRvPXo
Fed Admits $190 Billion PER DAY Injected Into Financial Markets! Who Gets the Fed Repo Money?
The Money GPS

The Economic Collapse Of China! $40 Trillion Dollar Dark Cloud Of Debt - China’s Yuan CRASH!
The shadow banking sector just ran WILD. Keep in mind that a lot of that liquidity went into foreign markets.
Vid, Fed chairman Jay Powell thinks wages could be much higher

"As the global synchronized slowdown intensifies, Taiwan is now warning if Beijing can't create a soft landing in its economy, the threat of a Chinese invasion would be on the horizon.

Taiwan's Foreign Minister Joseph Wu sounded the alarm in a Reuters interview on Wednesday, when he said, Chinese officials would likely invade self-ruled Taiwan to divert domestic economic pressures if a soft landing cannot be achieved. "
Sounds messy.
https://www.zerohedge.com/economics/...es-deteriorate
So, do you still think that the world isn't tribal?
https://www.rt.com/news/472834-south...-versus-japan/

Armstrong;
PRIVATE BLOG – Gold for Nov 8th, 2019
PRIVATE BLOG – The Euro for Nov 8th, 2019
Armstrong favors nuke power. Frau Merkel is a trained physicist and, she took German off nuke power. I give her credit for that.
11/08 Wind and solar kill coal and nuclear on costs, says latest Lazard Report – RE
Global Debt Is Up To $188,000,000,000,000
Fed Warns Climate Change Is A Major Threat To The Economy

"I suggested the Fed, part of the deep state, was setting up President Trump to be another Herbert Hoover. The deep state wants the market to crash so they can crush capitalism and further consolidate federal government control."
"Pension funds and 401k’s are already in deep trouble. A sudden, major market drop would destroy much of the remaining wealth of all Americans. No president would be likely to survive that kind of catastrophe. Politicians of all flavors should fear citizens storming the castle."

"“The International Monetary Fund has presented us with a Gothic horror show. The world’s financial system is more stretched, unstable, and dangerous than it was on the eve of the Lehman crisis.

…. Even a moderate shock would cause company “debt-at-risk” – that is, where the debtors do not earn enough to cover interest payments – to spiral up to $19 trillion. This is a staggering 40 percent of corporate liabilities."
"The 9 largest banks hold a total of $228.72 trillion in derivatives – approximately 3 times the world economy. No government in the world has money for this bailout. (Emphasis mine)"
"“According to JPMorgan’s 10K, it has sold credit derivative protection on $177 billion of “subinvestment grade” i.e., junk credits."
THAT is where the $160 billion a week is going.
"The Fed’s dilemma is this. Are the banks willing to absorb mind-boggling losses to allow the market to crash for political reasons, hoping for another bailout? Will they continue with more QE, fueling bank profits while driving interest rates down?"
https://www.theburningplatform.com/2...s-our-problem/

11/08 Blain: If yields rise any higher, the melt-up will quickly reverse – Zero Hedge
Print more confidence.
11/08 How Big Tech is dragging us towards the next financial crash – Guardian
The dragging is mutual.
Here is a convoluted article.
European Commission Warns Of Dire Future Unless Germany Issues Much More Debt
https://www.zerohedge.com/economics/...much-more-debt

[BroMikey]

[VIDEO]https://www.youtube.com/watch?v=jkxa5FBhfWs[/VIDEO]