Economic pressures

[Danny B]

Ronald Reagan famously said, "if it moves tax it... if it doesn't move, subsidize it"

Keynes said, "We need perpetual stimulation through perpetual war."

FED GOV pumped in $trillions through the banks and arms industry. The idea was; there would be a trickle-down to the working man. There was a trickle-down in wages BUT, it was offset by even faster inflation of prices.

The FED was created in 1913 and, the economy crashed 16 years later. The bankers scooped up every dollar to speculate on everything. The Glass-Steagal act of 1932 separated investment banking from retail banking so that the speculators wouldn't have your money to buy up everything and "front run" your every purchase.

"November 1999, President Bill Clinton publicly declared "the Glass–Steagall law is no longer appropriate"

1999 Gramm–Leach–Bliley Act (GLBA), which repealed the two provisions restricting
Regulatory capture brought us crony capitalism that was a very close cousin to outright fascism.

Then came Trump, From X22;
"Donald Trump has just taken over the Federal Reserve ....dare Isay it? "IN A HOSTILE TAKEOVER.....:-) He has just cut off the Cabals money (cut their balls off) and changed the entire worlds monetary system with one blow. Our central bank as well as everyone else's will HAVE to change"

Historically, State stimulus was channeled through the bond market & banks first. Once Trump got control of the FED, he put them to work figuring out how to destroy the private banks. 50% of the cost of everything that you buy is for interest expense. The FED now has a comprehensive plan to bypass the bankers.
In Unprecedented Monetary Overhaul, The Fed Is Preparing To Deposit "Digital Dollars" Directly To "Each American"

https://www.zerohedge.com/markets/lo...-each-american

The article states very clearly that the banks will be "disintermediated"

The article and comments scream about high inflation of prices because of all the free money circulating. There was recently TONS of free money circulating in the UPPER loop of the economy and, it created enormous inflation in the upper loop. Shifting this stimulus to the lower loop will increase consumption but, it will not increase speculation.

Price inflation is often caused by too much money chasing too few goods. The stimulation of the upper loop caused price inflation of asset prices. It trickled down as price inflation at the same time that wages were static.
Previously, the FED was able to create new liquidity but, it was not able to direct where the money flowed.
If each and every person has an account at the FED, the FED can easily control where the money flows.

The markets are re-tracing the dot com crash in their movements.
https://www.marketwatch.com/story/th...article_inline

9/24 Stimulus checks: House Democrats push to renew second $1,200 effort – CNBC
Too clunky and cumbersome.
Sovereign debt is crashing and;
9/24 Australia’s “eye popping” budget deficit and public debt blow out – Share Cafe

Australia has an eye popping lockdown to prepare for debt default.
9/24 New Jersey’s debt of nearly $58,000 per taxpayer is nation’s highest – ForbesYeah, with socialism, you run out of people to pay the bills.

870,000 Americans Filed For First-Time Unemployment Benefits Last Week
One of the many things that just can't go on.
The States have slid into socialism but, they don't have a printing press.
https://www.zerohedge.com/political/...ay-their-bills

The stock market has given up all it's gains for the year. The default cascade won't be held off very much longer.
FED GOV MUST have some kind of plan in place to get money to people to survive.
5.1 million starved to death in Great Depression One when 44% of Americans lived on a farm.
125 million Americans received a stimulus check in a test to see just how a direct-stimulus system would work. Too much stimulus,,, nobody goes to work. Too little stimulus, everybody riots.

[Danny B]

The PTB are well aware that automation leaves very little for the working man to do. The Great Reset is an attempt to change every facet of the whole system. "They" talk about social justice and equality. Mother nature does not do equality. She pushes improvement and culling. Socialism attempts to prevent culling of people who contribute nothing to the general well being of society as a whole.
In a general sense, society is managed and coordinated by the State.
Armstrong, "Governments are simply incapable of proper management of society, for every action they take is to retain their own power. They will not act in the self-interest of the people or the nation. It is not that they may even do this in a knowing manner. They simply think they are preserving the nation when that to them is government."
Armstrong claims that all this lockdown mess is an attempt to maintain & preserve control in the face of a coming sovereign bond default.
https://www.armstrongeconomics.com/i...ower-underway/

Socialism always bankrupts a country. Will world socialism bankrupt the world?
Hundreds of millions of bureaucrats "work" for the government. Most of they would not be qualified for their current salaries if they worked in the private sector.
Parkinson's Law says that their numbers grow by 6% a year.
It is the NON-producers who demand an elastic currency. The farmer doesn't need speculation & currency inflation to survive.
It is the beggars, bankers and bureaucrats that depend on the theft of inflationary policies.

A fiat currency is the hallmark & requisite of a State that ventures too far into welfare & warfare. A gold standard limits both of these aberrations.
The demands of most Western States for welfare & warfare were previously met with the "inflation tax". A gold standard severely limits the inflation tax. A fiat currency is necessary. In our current situation, the demands of government-sponsored welfare have out-stripped the ability of an inflated fiat currency to meet all those demands.
A digital currency is seen as the answer to finance the new socialism (The grossly inflated rolls of State dependents.)
Armstrong strongly predicts a crash of sovereign bonds. This implies a crash of State support for the new socialism.
Can digital currency manipulations be substituted for sovereign bonds? Can the new socialism be financed by the creation of super-elastic digital currency without creating hyperinflation?

Armstrong, "Who knows what the Deep State has in mind. Our model does not look well post-2022"
https://www.armstrongeconomics.com/i...-behind-biden/

Armstrong, "The Monetary Crisis Cycle & Sovereign Debt Crisis. Granted, they may be doing this because of our models, but only because they are also trapped by their negative interest rates and cannot raise them anymore. The central banks are screaming behind the curtain, “Hey, this isn’t working!” I warned that Big Bang would begin 2015.75. Indeed, the ECB moved to negative interest rates in 2014. They never considered what would happen it that experiment failed."
https://www.armstrongeconomics.com/i...ower-underway/

[Danny B]

J. M. Keynes said that we would be so rich in the future that we would only have to work for 15 hours a week. This would bring complete stagnation of society if we just sat around all the time.
Shumpeter proposed "creative destruction" as a way to keep us working. Keynes proposed perpetual war to keep the economy forever stimulated.
We build stuff and then, blow it up. Hot war got too dangerous so, we have cold wars. We build lots of bases and weapons and, abandon them.
This plan necessitates that we have credible enemies to keep us employed preparing for war.
This plan necessitates continual high taxes to steal our income and, keep us working.
How long do we work for the government every year?
USA: 105 days
United Kingdom: 148 days
Canada: 164 days
France: 209 days
Fascinating list; https://www.lovemoney.com/gallerylis...ay-their-taxes

U.S. GOV is so wealthy that it doesn't need to collect taxes. They report this fact every year.
http://cafr1.com/

"Factoring in federal, state and local taxes, those ultra-wealthy households pay a total rate of about 23% — that compares with just over 24% for the bottom half of households."
Yep, the riches families don't actually produce anything. If they don't show up for work, nobody notices. If the actual producers don't show up, everything falls apart.
This is one of the main facets of the stimulus programs. Too much stimulus and, everybody stops working.
The departure from the gold standard allowed the bankers to make inflation run "hot" at the same time, that wage increases ran cold.
The bankers motto, "keep them working".

There is much discussion to reverse all this inequality that kept us working.
https://www.zerohedge.com/markets/bi...uality-overdue

The French work for the State for 209 days a year.
The French GOV spends 54% of the gdp.
Socialism is expensive.

[BroMikey]

Mikey, since you're writing about the CCP, I have some news for you.
https://www.newsx.com/world/pla-vete...dissident.html

https://tfipost.com/2020/08/xi-is-a-...lls-the-beans/

https://www.youtube.com/watch?v=EVeoKW96DME

[Danny B]

https://newrepublic.com/article/1540...-fascism-today
I added this link and, erased ALL the text. I think I have it saved in mail. The post had been up for hours but, this link erased it.


The ultimate blowup of class war in America.

Historically, a corporation was created as a temporary construct for a certain, specific project. When corporations became permanent bodies, They were forced / incentivised to compete with everything else. The corporation become immortal and, immune from prosecution. Regulatory capture made the corporation (eventually) more powerful than the State.
As far as the common man, the corporation constantly fought against organized labor. The wealth created by the worker was channelled into stock dividends rather than wages.
As wages diminished, procreation diminished. The worker was no longer able to supply his replacement in the production line. At the same time, the low birth rate and low wages meant that overall consumption diminished. The State was harnessed to produce forever wars to boost consumption. The working man was increasingly taxed to finance wars / increase consumption. This further diminished consumption and procreation.
Production was outsourced to give the working man more affordable prices and, pay bigger corporate dividends. BUT, the job losses further diminished consumption and procreation.
The operational system became more fascist as it accumulated more regulatory capture. Free-market capitalism gradually morphed into fascism that has been painted as "crony capitalism".
Mussolini said that Fascism was a marriage between BIG GOV and BIG business. Regulatory capture makes this a convenient arrangement. After all, both the banks and the State are parasites.


We have fallen into a system where the parasites take everything. The slowly emerging problem is; the parasites depend a regular extraction of wealth from normal economic activity. This wealth is siphoned out as,,, taxes & interest.

The working man has been losing ground since just after we abandoned the gold standard in 1971. Charles Hugh Smith writes very clearly about the economy becoming extractive rather than cooperative. Wages diminished. Consumption contracted and, was only rescued by grossly increased credit. Increased consumption was only maintained by creating sequential credit bubbles.

The CBs intend to do whatever it takes to hold back deflation.
Stockman, "Uncle Sam will spend $6.6 trillion during the current fiscal year (FY 2020) while collecting only $3.3 trillion in revenue."
The CBs are pumping in $trillions trying to prop up everything. It takes more than just liquidity. Monetary velocity has crashed.

Powell, "the ten-year, eight-month expansion, the longest in our recorded history, it included an awful lot of quantitative easing and low rates for seven years. And I would say it was notable for the lack of the emergence of some sort of a financial bubble, a housing bubble or some kind of a bubble - the popping of which could threaten the expansion. That didn’t happen."

Stockman, "the Fed printed $3 trillion in three months, and Wall Street drove the S&P 500 to 52X reported LTM earnings in the context of a deeper economic plunge than occurred in the worst quarter of the 1930s."

Powell claims that there aren't any bubbles. This deep economic plunge is; deflationary forces trying to escape control. I suspect that "they" can hold back the tide until the election. Printing $ 3 trillion in 3 months can't go on forever. "They" set off the lockdown to try to advance the "great reset". It appears that they have been successful in blowing things up. Powell is hard at work to glue things together for a bit longer.

[Danny B]

Mikey, since you're writing about the CCP, I have some news for you.
https://www.newsx.com/world/pla-vete...dissident.html

https://tfipost.com/2020/08/xi-is-a-...lls-the-beans/

https://www.youtube.com/watch?v=EVeoKW96DME

[BroMikey]

[BroMikey]

Puppet masters CCP (Control & Command, Positions)

MADE in CHINA

Right click "VIEW IMAGE"

chinas-great-wall-of-murder-ben-garrison-cartoon-2.jpg

[Danny B]

The welfare-warfare Statists from the mid-60s forced the closure of the gold window by Nixon in August of 1971. Remember that it is the Parasites who are most in favor of an elastic currency. The producers don't want the value of their work stolen by currency devaluation. The bureaucrats and bankers live & breathe currency inflation. The "State" may look like a governing body but, it is just a growing horde of parasites.

ap·pa·rat·chik

/ˌäpəˈräCHik/

noun
plural noun: apparatchiks

• historical
  a member of a Communist Party apparat.
  • derogatory•humorous
    an official in a large political organization.
    "Tory apparatchiks"

Parkinsons Law states that this bureaucracy will grow by 6% a year. The money to pay them has to come from somewhere. You work about 1/3 of the year to pay all your taxes.

Next, we suffer the burden of carrying the bankers. The gold window was closed in summer of 1971. By about 1974, our financial system switched over from being cooperative to extractive. The little guys got screwed by the millions.
http://charleshughsmith.blogspot.com...ne-for-me.html

Once again, the rich got the laws they needed to fleece everybody.
New research published Monday found that the top 1% of U.S. income earners have taken $50 trillion from the bottom 90% over the past several decades, and that the median worker salary would be around twice as high today as it was in 1945 if pay had kept pace with economic output over that period.

The study’s authors, Carter C. Price and Kathryn Edwards of the RAND Corporation, examined income distribution and economic growth in the United States from 1945 to the present. The researchers found stark differences between income distribution from 1945 to 1974 and 1975 to 2018.
https://www.wakingtimes.com/2020/09/...a6d87-54347961

Our wages and consumptive power are gone. Wall Street is trying to maintain the value of high-priced assets when the necessary high wages are long gone.
"They" see no end to stimulus to try to maintain these nose-bleed valuations.
9/18 US Treasury & the Fed are partners in crime ripping off Americans – RT
Nobody can see a way to let Wall Street crash without it taking down Main Street.
It remains to be seen just how this conundrum can keep going.

[Danny B]

5. From Winston Churchill:

The inherent vice of capitalism is the unequal sharing of blessings; the inherent virtue of socialism is the equal sharing of miseries.

“Socialism is a philosophy of failure, the creed of ignorance, and the gospel of envy"
Socialism has a 100% failure rate but, lots of people keep trying to make it work. WHY?
Socialism results in the annihilation of motivation to produce.
BUT, a large part of humanity do not possess motivation to be productive. They are only motivated to consume. Between inception and failure,,, these people are happy to live as parasites. Their numbers grow larger and larger. Their demands, greater and greater.
As of 3 years ago, 51% of Americans received a check from GOV. The stimulus has increased those numbers.
"How many Americans will get these payments? Roughly 125 million people will receive a check"

The Central Banks have gone from war finance to social finance. They pump up zombie companies to keep the employees working. They prop up all markets to keep confidence going. It remains to be seen just how long this can go on. How many millions of people is the FED propping up? The FED has long focused on productivity and, for the most part, ignored consumption. That is all changing. Now, that C/V has popped the employment bubble, the FED is much more focused on Employment.

All the hundreds of millions of people who are not part of the productive economy are looking for a new age,,, a new dawn,,, the Great Reset. They have championed the cause of socialism to put bread on their tables.
The government workers, the bankers and the bureaucrats are all espousing the cause of higher taxes and electronic money. Socialism always crashes financially. Can digital currency change this paradigm? Will digital money reduce the number of parasites?
Parkinson's Law states that a gov bureaucracy will grow by 6% a year regardless of work load. At what point does the parasitic drain become too much? Can digital currency change the outcome?
A gold standard prohibits runaway currency expansion and runaway government. It acts the same on bankers who live & breathe currency inflation.
Bankers & bureaucrats are only looking out for themselves. You are naive to believe that the State cares about you,,, outside of your role as a "tax donkey"

You work 1/3 of the year to pay your taxes. 50% of the cost of anything that you buy is for finance. 19% for trash collection,,, 78% for public housing,,, 50% average. Do you think that GOV and bankers have any concerns for you.?
It wasn't always like that.
Charles Hugh Smith;
"My 50 years of work have given me a ringside seat in how the economy has changed from inclusive to extractive.
My colleague Mark Jeftovic explains how systems can be inclusive or extractive. Systems that automatically bail out the greediest, wealthiest socially-useless speculators via the Federal Reserve are not just extractive, they're exploitive and predatory. The Reversion Will be Mean.
The economy was not dependent on endless asset bubbles and bailouts of the most venal speculators. The Federal Reserve whines that it has to bail out the greediest scum of the nation again and again and inflate one asset bubble after another because otherwise this sucker's going down."
Greenspan started us down that road.

"Now costs and regulatory burdens have soared to crushing levels. This plays perfectly to government bureaucracies, which have monopolies on the power to raise junk fees, penalties, etc. at will, and Corporate America, whose core drive is eliminate any and all competition so profits can soar on the basis of monopoly, not on superior products or services."
Once again, all the wealth flows to paper-pushers.
"Can we be honest for a change and admit that ours is an extractive system in which anything goes for the wealthy and powerful and winners take most?"
EXCELLENT ARTICLE
http://charleshughsmith.blogspot.com...ew-system.html

[Danny B]

Here is a headline out of the blue by a guy with an enviable record.
https://www.youtube.com/watch?v=LMuUwinnoqo
9/14 Biden says stay in Mideast, increase military spending – Antiwar
Well, a least the Dems give us a clear choice.
9/13 DHS proposes massive expansion of “biometric modality” collection – Zero Hedge
9/13 Chinese government combines ‘track and trace’ with social credit score – Summit
It's ALL about State control to finance State bureaucracy

PRIVATE BLOG – Official Agency New Report Warns Economic Damage May Take Decades to Recover
Posted Sep 14, 2020 by Martin Armstrong
NOT a chance with a falling population.

China claims that it is no longer socialist /communist. BUT, you don't own the land under your house. As usual, the commies are going broke and, stealing private property.
https://www.youtube.com/watch?v=BTZLA2rIumo&t=314s
https://www.youtube.com/watch?v=dAO1nFOPae8&t=149s
Something very wrong going on in OZ. Seems that you are running out of grains.
https://www.youtube.com/watch?v=GKM_ABZrplE&t=130s

[Danny B]

I got my first erasure of the day.
It is painfully obvious that the globalists are hard at work to reduce world population. The birth rate is falling EX-Africa but, that isn't fast enough for the globalists. There is a special plan for Africa;
https://www.globalresearch.ca/gates-...uction/5723257
Population reduction is lightly accomplished by war but, heavily accelerated by disease & famine. Famine is a favorite of the British,
https://larouchepub.com/other/2008/3...al_famine.html
Also;
Jun 21, 2010 - VIDEO: Omni Vegetation Plague hits the South near the Gulf killing all vegetation including weeds, both organic and inorganic crops.

https://endrtimes.blogspot.com/2009/...em-nearly.html
There are several sites that write about problems in agriculture;
Ice Age farmer
Adapt 2030
Crop loss.com

The pole flip at the same time as the start of solar cycle 25 is causing huge crop losses, especially in china.
https://www.youtube.com/watch?v=XQ-XIbDqKAA
America is sleep-walking into food shortages.
https://www.youtube.com/watch?v=NitRykl4ORY

https://www.youtube.com/watch?v=BT4RgpcyfLg
PLANT A GARDEN

[Danny B]

Dunno Mikey. We'll have to agree to disagree.
The United States & its constitution have two months left – Paul Craig Roberts
PCR is something of a pessimist but, just the same, the tribe is going all out to bring a crash and, socialism.

A permanent shift in valuations? – Real Investment Advice
America was previously a high-price and high-wage economy. There is GREAT resistance to the changeover to a low-wage and low-price economy. $trillions are being pumped in to (temporarily) maintain the price levels of all assets. The pumping can never stop as long as the wgae base is so low.

State-directed credit splurge – Doug Noland, Credit Bubble Bulletin
The CB was originally created to provide war finance. Later, it morphed into an entity to do State finance and welfare finance. The State is always looking out for itself. BUT, at the same time, the State has acquired a LOT of dependents. 51% of Americans receive a check (old number) from GOV. Back when GOV wrote actual checks, it sent out 80 million checks a month. Socialism ALWAYS crashes the banks. FED GOV is betting on a cashless society to try to support all of it's many millions of dependents.

This is how it ends: all that is solid melts into air – Charles Hugh Smith
Very interesting speculation.

9/13 The coming wave of defaults – The Hill
We have become "bailout nation" just to avoid this wave.

Some humor;
9/13 Academy strips ‘Schindler’s List’ of Oscar due to lack of diversity – Babylon Bee
9/13 Woodward withheld interview since ‘journalism hasn’t worked’ on Trump – Onion
9/13 DNC pours funding into NY, CA to win popular vote by even more than 2016 – Onion
9/12 Nobel Peace Prize committee: Trump hasn’t launched enough drone strikes – BB
9/12 Dogs for Trump – SNL

The tribe's takeover of MSM and, it's strident calls for sedition has turned many people off entirely.
https://www.armstrongeconomics.com/w...d-than-police/

[BroMikey]

I haven't been writing much because it is so dispiriting.
"They" created the welfare-warfare State

Don't worry, every generation behind the next are young, energetic, desiring to get out and about to work. A few couch taters will always remain. have some faith dudes. In fact just this little stretch bottled up in the house peeps are finding it nearly impossible to continue as the shutdowns threaten to crash the eco. Welcome to the same ole playbook used in the 1940's.

Passed down one generatin to the next American's want to race their boats, cars, planes, you get the idea and it take big bucks. The stuff you flaunt. See mine? Humm...? That is America. Welfare is for those who don't have enough which has pretty much been half the USA at one time or another. The problem with these American's is they keep right on working thru all of their weaknesses and problems. A very obstinate bunch.

In the last 20 years the farmers have been on food stamps in the winter because the white coats change the unit price as they pull into the elevator. They have to then go to the bank for either a loan or refinancing. Those tractors required with the other implements come in at a 1 $million dollar tag for starters. The payments go out and they live on food stamps, go figure.

Of course this is all some sort of accidental phenomena

[Danny B]

I haven't been writing much because it is so dispiriting. In the beginning, I wrote to warn people of what is coming. It is pretty much here. I'm still writing to try to get some idea of just how bad it will be.
"They" created the welfare-warfare State that eventually forced Nixon to abandon the gold standard. Since then, the bankers have been able to create very high price inflation that FAR outran wage inflation. They have been skimming EVERYTHING. WE are no longer to support the system with our measly wages. The FED is creating megatons of liquidity to try to make up the difference. This too will bring price inflation that erodes consumption. Stimulus money is an attempt to make up the difference between our wages AND, the cost of survival/consumption.
Ron Paul on FED inflation.
https://www.zerohedge.com/economics/...-higher-prices

Then, there is the major problem of automation & outsourcing.
John Maynard Keynes said that we need perpetual war to create perpetual economic prosperity.
"Trump Gave More Money to Pentagon Than Even the Brass Asked For. Now He Says It’s All a Racket"

New watchdog report decries ‘revolving door’ between the Pentagon and defense contractors

Top US general rushes to defend Pentagon after Trump accuses it of colluding with weapon manufacturers to fight endless wars

WE need a new paradigm that replaces war as the main economic driver.

Meanwhile, "However, "the oligarchs of Silicon Valley running America's technology companies loath Trump and will do anything to ensure Trump's second term never happens," he suggests."
https://sputniknews.com/us/202009091...never-happens/

What could that new paradigm possibly be? What happens if we don't develop it?
https://www.zerohedge.com/markets/wh...rized-disorder

Two important articles on China.
https://www.zerohedge.com/markets/wh...g-all-possible
https://www.zerohedge.com/commoditie...-food-shortage
The huge disasters in China will force food prices way up worldwide.
Meanwhile, Gates is hard at work to make sure that Africa will starve in the coming credit collapse.
https://www.globalresearch.ca/gates-...uction/5723257

Charles Hugh Smith has his views on how it unravels.
https://www.zerohedge.com/markets/ho...olid-melts-air