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  • Danny B
    How long can printing hold things together?

    I found another one of those articles that should be read in it's entirety. I will cite and comment on it though.

    There are growing signs that the global economic slowdown is for real. As was the case in 1929, the combination of the peak of the credit cycle coupled with trade protectionism in the Smoot-Hawley Tariff Act are similar conditions to those of today and potentially pose a serious economic challenge to the post-Bretton Woods fiat currency system. Therefore, we must consider the consequences if monetary policy (printing) fails to contain the developing recession and it turns into a full-blown slump. Complacency over broken markets is no longer an option, with rising prices for gold and bitcoin signalling the prospect of a new round of currency debasement (printing)to avoid market distortions unwinding. This article shows why this outcome could undermine fiat currencies entirely and looks at the alternatives of bitcoin and gold in this context.
    $9 Million Lost Each Day In Cryptocurrency Scams - Investopedia
    Crime still plagues cryptocurrencies; $1.7 billion was stolen last year

    Never in all recorded history have financial markets been so distorted everywhere. In our lifetimes we have seen the USSR and also China under Mao attempt to do without markets altogether and fail, having starved and slaughtered millions of their citizens in the process. The Romans started a long period of currency debasement, lasting from Nero to Diocletian, who wrote prices in stone (the origin of the phrase) in a vain attempt to control them. While the Roman Empire was the known world at the time, it was essentially restricted to the Mediterranean and Europe. Subsequently, there have been over fifty instances recorded of complete monetary collapse, the vast majority in the last hundred years, which have led to the breakdown of every society involved.[i]And now we could be facing a global totality, the grand-daddy of them all.
    The last 100 years has seen a huge rise in the unconstrained fractional reserve banking. If a little is good,,,, then more must be better.

    We have become inured to cycles of credit expansion, driven by fractional reserve banking at least since the Bank Charter Act of 1844, which legalised fractional reserve banking. Extra impetus was given by central banks from the 1920s onwards.
    Absolutely,, the wars must go on.

    In Denmark, mortgage lenders are even offering negative-yield mortgages: in other words, Danes are being paid to take out loans with negative interest rates.
    The French government has debts roughly equal to France’s GDP and by any analysis is not a very good credit risk, but it is now being paid by lenders to borrow. Only forty per cent of her economy is the productive tax base
    Investors, particularly pension funds and insurance companies are forced by their regulators to invest nearly all their funds in regulated investments. Their compliance officers, who are effectively state-sponsored bureaucrats, control the investment decision process.
    Additionally, with their highly-geared balance sheets state-licensed banks complying with Basel II and III are also corralled into “riskless” assets, which according to the regulators are government debt.
    The federal government should default on its debt | Fox Business
    Between them, central banks and sovereign wealth funds that are buying equities in increasing quantities further the scope of quantitative easing.
    So, just how long can this levitation go on?

    By all these methods, state control of regulated public and private sector funds coupled with the expansion of bank credit has cheapened government borrowing, and it would appear that governments are now enabled to issue limitless quantities of zero or negative-yielding debt. So long as enough money and credit is fed into one end of the sausage machine, it emerges as costless finance from the other.
    Never mind the destruction wreaked on key private sector investors, such as pension funds, whose actuarial deficits are already in crisis: that is a problem for later. Never mind the destruction of insurance fund finances
    This is now the key question: are we entering a new phase of low-inflation managed capitalism, or are we tipping into a mega-crisis, possibly systemically destructive?

    If the latter, there’s a lot to go horribly wrong. The Bank for International Settlements, the central banks’ central bank, is certainly worried. Only this week, it released its annual economic report, in which it said, “monetary policy can no longer be the main engine for economic growth.” Clearly whistling to keep our spirits up, it calls for structural reforms to boost government spending on infrastructure. Translated, the BIS is saying little more can be achieved by easing monetary policy, so Presidents and Prime Ministers, it’s over to you. You can create savings by making government more efficient and you can spend more on infrastructure.
    The last thing that government wants is to be efficient. That would wipe out State jobs. YES spend more on infrastructure. It didn't work for Japan but, don't worry about that. As long as you borrow this money from us, everything will be fine.

    While the BIS washes it hands of the problem, history and reason tell us increased state involvement in economic outcomes will only make things worse. It is in the nature of government bureaucracy to be economically wasteful, because its primary purpose is not the efficient use of capital resources.
    Following the Lehman crisis, the expansion of money and credit fed into asset inflation, creating an illusion of improving business prospects. The suppression of interest rates was the come-on to businesses to invest in production. The government’s budget deficit created extra spending as a further encouragement. The government’s economists say it’s all down to reviving those animal spirits.
    Those animal spirits. are now working 3 part-time gigs to try to put some food on the table.

    Credit cycles have been generally worsening, at least since the inflationary crisis of the 1970s, which followed the abandonment of the Bretton Woods Agreement in 1971. Central banks have debauched their currencies increasingly over successive credit cycles, building up to an inevitable apocalyptic crash. The approaching one could be our global totality, the grand-daddy of them all.
    The collapse of the Bretton Woods Agreement was an event in a larger cycle of government intervention and failure. Von Mises knew it would happen, and he explained why in his The Theory of Money and Credit, first published in German over one hundred years ago. Ten years before it happened, he predicted the collapse of the mark and other European currencies in the early 1920s. Since then, we have proved that collectively we have learned little.
    This is a lesson that the bankers do NOT want to learn

    In 1929, the Smoot-Hawley Tariff Act was legislated at the end of the 1920s credit expansion, and it was the combination of the two that changed the similarly benign conditions of the 1920s to those of today into the 1929 crash and the depression that followed.
    He mentions the 1920s credit expansion, but, does NOT say a word about the FED. He makes no mention of the fact that FED head, Benjamin Strong was illegally selling Treasury bonds on the secondary market,,,, causing even more effective monetary inflation. 1913, we got the FED and, massive monetary inflation. 16 years later, we got a disastrous crash.
    It must not be assumed that today’s stock markets will fall by nine-tenths, as was the case between 1929-32.

    If an attempt to fully restore confidence fails to do more than provide a short-term fix, government finances will deteriorate further, and monetary inflation will be tried in even greater quantities than we have seen heretofore. Flooded with fiat money, most economies will then experience rising price inflation that can no longer be camouflaged by government statistics

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  • Danny B
    Print money with no plan B,,, rain & food

    Wayne, I'm surprised that more people are not contributing here,,, as you are.
    I can't possibly have all the info,,, all the insight.
    Instant global transfer of jobs and capital has wreaked havoc on all but a few. BUT, as globalism selected a few winners, it eventually destroyed the buying power of the losers. The winners like China and Germany are now crashing because their customers are broke. I firmly believe that the vast majority of people are NOT taking this seriously enough. The PTB do not have a CLUE of how to boot up a new system. We also have to consider that part of the PTB who want to do a gross population reduction.
    How can we have a crash of credit markets and NOT have a crash of carbon energy deliveries? How can we have a crash of Sovereign debt and NOT have a crash in the part of the population who depend on State money?
    As our magnetosphere weakens, the increased cosmic ray bombardment will cause a big increase in precipitation and cloud cover. Our albedo will increase. Cooling and crop destruction will increase.
    Irrigated agriculture represents 20 percent of the total cultivated land, but contributes 40 percent of the total food produced worldwide.
    So, 80% of our cultivated land depends on reliable rain,,,, NOT floods.
    Amazon, "The researchers also looked at the severity and duration of floods and found that extreme floods have tended to be higher and longer-lasting, with water levels over 97.5 feet for more than 70 days occurring once every three years, compared to once every 50 years in the 1900s."

    "More records for both wet and dry weather are being set around the globe, often with disastrous consequences for the people facing such extremes, according to a study published Wednesday that offered new evidence of climate change’s impacts in the here and now.

    Extreme rainfall, and the extreme lack of it, affects untold numbers of people"

    Leave a comment:

  • wayne.ct
    Negative Interest Rates

    The elites seem to have a problem in that they must pay dearly to keep the EU operating. I don't know for sure but someone must be keeping track of the spread between keeping "money" in EU banks vs. US banks. The EU elites see their capital eroding and as much as possible "sell" Euros and "buy" USD. The US elites see their capital eroding as interest rates go up and their bonds collapse. The FED can't raise rates because they will (in their view) collapse the economy and start a revolution. The situation grinds forward with inflation in the US and depression in the EU (not to mention Japan) meaning anyone with sense (and money) is saving not spending.

    Result? EU goes down first then US suffers inflation. Until then, US holds its own.


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  • Danny B
    Capital inflows,,, Iran & the dollar,,, nat gas

    There are a couple good articles on our bizarre markets.
    "According to Bloomberg, the amount of negative-yielding debt globally jumped Thursday to a record $13.4 TN. Rising almost $2.2 TN over the past "
    "However, inflows to bonds were truly out of this world with over $25 billion –a more than 45% increase over the prior record from October of 2014."
    "it’s worth noting M2 “money supply” has surged almost $210 billion over the past six weeks (up $638bn y-o-y) to a record $14.773 TN."
    " outstanding Commercial Paper has jumped almost $80 billion in five weeks to an eight-year high $1.164 TN. Where’s all this “money” coming from?"
    A fair amount of it si coming from European capital flight.
    Credit Bubble Bulletin : Weekly Commentary: Abject Monetary Disorder

    "GDP is slowing. Earnings warnings issued by publicly-traded companies are at a 13-year high. The most reliable recession predictor of the past 50 years, an inverted US Treasury curve, has been in place for the past quarter.

    Yet the major stock indices hit all-time highs earlier this week. And every one of the 38 assets in the broad-based asset basket tracked by Deutsche Bank was up for the month of June — something that has never happened in the 150 years prior to 2019."
    "More than 170 U.S. shale companies have declared bankruptcy since 2015, affecting nearly $100 billion in debt, according to Haynes and Boone. There have been an estimated 8 bankruptcies already this year, with some $3 billion in debt restructured."

    Armstrong, "But much the real trend driving the inverted yield curve is capital inflows seeking long-term yields. Much of the capital has moved in from Europe. In addition, the amount of money in fixed-income exchange-traded funds passed $1 trillion last month, an ascendance that has reshaped the market in which countries and companies raise money to pay their bills. This has also altered the yield-curve. These forces have changed the dynamics of the marketplace and the traditional inverted yield curve does not necessarily mean what it once did "
    Everybody is pointing at the yield curve inversion as an inflexible indicator of recession. With huge capital flight, this is no longer true.

    RenTech Pulls Cash From Deutsche Bank As Insider Warns Of "Lehman-Style" Scene
    This is probably the LAST nail in the cofin for Deutsche bank.
    Mexico Murder Rate Soars To Ave 94 Per Day
    How Mexico Became the World's Second Largest Opium Producer

    7/06 New lows in Germany lead the rest of the world down – Alhambra Partners
    7/06 Ten big steps down the road to recession – Great Recession
    7/06 Three job-market data points investors are overlooking – The Street
    7/05 It wasn’t all great news: multiple jobholders soar to record high – Zero Hedge

    7/06 Fed dumps MBS at record pace, exceeding “cap” for first time – Wolf Street
    So, the FED is dumping mortgage backed securities. I wonder why?
    7/06 Bitcoin uses more energy than the whole of Switzerland – and it’s getting worse – Ind
    7/06 State of Indiana argues in Supreme Court for right to seize anything – ZH

    Well, of course.

    "For almost two centuries, Sterling reigned supreme as the world's reserve currency, propping up the vast British Empire which was the world's superpower during the 19th century and the early 20th. Then, in the span of just a few months, everything changed and the US Dollar took over after a series of dramatic events."
    "Chris Andrew describe the series of events in which Iran and its oil reserves proved to be the final nail in the coffin of sterling and the British Empire. However, what is far more interesting, is their suggestion that the current tensions between Washington and Tehran, and what happens to Iranian gas, could also be the event that results in the end of the dollar's own reserve status."

    "But American oil partnerships in Venezuela and Arabia, based on a 50/50 US/local ownership rule, made Britain’s 70/30 structure in Iran untenable. Iranian nationalists now started to demand, and ultimately obtain, full control of their natural resource.

    With the nationalisation of the AIOC (Anglo Iranian Oil Company), Britain was deprived of sterling oil, and thus became utterly dependent on the Americans to earn enough dollars to pay for their energy. Immediately this started a rapid exodus from holding sterling as a settlement currency and reserve. Iranian oil joined its other dollar-denominated brethren.

    Fast forward 70 years and once again Iran stands at the fulcrum of how the energy source of the future is to be priced."
    "Britain’s loss of sterling- denominated oil was the final nail in the coffin of sterling being a global currency. Its collapse was imperceptible and then a precipice.

    As of today the US finds itself in a similar position as it remains to be seen what currency natural gas will be priced in. The world is transitioning from oil to gas, as, 70 years ago it had transitioned from coal to oil; once again Iran holds the key for this critical resource.

    Today, natural gas is priced in US dollars in America, in euros for Russian gas in Europe, in renminbis for Russian gas in China, and US dollars for Qatari gas. It shall be the pricing of Iran’s massive reserve of gas that will determine the future global currency denominator of this energy source."

    Pox Americana is demanding that Europe ignore and abandon the Russian gas line Nordstream. We demand that the European buy much more expensive American gas.
    The Europeans have SPECIFICALLY designed alternatives to SWIFT so that they could buy Iranian and Russian gas.
    So, what is a hegemon to do? Simple, find some pretext for war..

    Bolton Welcomes UK Seizure of Tanker Containing Iranian Oil
    Yeah, I bet he does.. He's worse than McCain.
    Syria & Iran To Defy Sanctions By Building Railway From Tehran To Mediterranean
    The article mentions that israel will probably bomb the railway.
    Iran Calls Seizure of Its Tanker Maritime Piracy
    Bolton is praying that Iran does something stupid.

    America has a gas problem.
    "In its relentless pursuit of oil, the shale industry continues to burn more and more gas into the air.

    The rate of flaring in the Permian basin reached a record high in the first three months of this year, averaging 661 million cubic feet per day (MMcfd), according to Rystad Energy. That is more than double the amount of flaring for the same period from a year earlier.

    There is little chance of a reduction in the next few months. “We anticipate that basin-wide flaring will stay above 650 MMcfd"
    They don't even mention the Eagle Ford basin.

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  • Danny B
    Wealth sequestration / destruction is crashing

    J.M. Keynes aid in 1930 that; in the time of his grandchildren, we would be so rich that we would only need to work 15 hours a week. The people of the world would have so much accumulated wealth that they wouldn't need to work very much. This is very problematic if people only generate the productivity needed to maintain themselves.
    I've listed the various ways that the bankers inflate the currency to siphon off it's value for themselves. Since they are always first in line at the printing press, price inflation does not bother them. They take all that wet-ink money and, buy up everything that you need. They are always ahead of the game and, price inflation boosts the nominal value of the assets they hold.
    Well, there are just too many of them and, they got too greedy. 95 million Americans of working age are not in the workforce. The rest are working at the global mean wage.
    The income just isn't there for the banks anymore. The CBs pump in $trillions to keep confidence up.

    I suppose that there was some way that we still could have held on to all that accumulated wealth that America had produced.... even after the bankers robbed us.

    Shumpeter came up with the idea of "creative destruction" as a means to keep everybody working. If you don't continue to produce for the bankers and bureaucrats, they might go hungry. We are directly taxed heavily. We also pay heavily for the inflation-tax.
    The Grace Commission created by Ronald Reagan reported that not one dime of federal tax money went to the FED GOV. Various other high level bankers and politicians have said that the GOV does not need to tax.

    Walter Burien has completely proved that the FED GOV does NOT need to tax. Their own financial reports prove that they don't need the money. This is also true for much of non-FED GOV.
    CAFR1 Home Page

    The bankers and bureaucrats take all our money one way or another. The CAFR reports show that the money is just stuffed off to the side.
    The State/military takes a lot of money too. Rather than producing lasting wealth, they spend the money to produce things to later blow them up.

    "A baseline survey to assess the vulnerability of the military’s more than 7,000 bases, installations and other facilities is nearly complete"
    " The global shipping and aviation on which peak profit-making depends is, like the military, exempt from the Paris Accords. "
    " US empire is the world’s largest consumer of fossil fuels or because the same military is the enforcer of the global fossil fuel regime "
    The wealth that we produced has to be constantly fleeced and / or destroyed
    NOBODY complains as the military budget rises past $1 trillion. This $ 1 trillion serves 2 purposes. It keeps contractors and soldiers working. It allows the destruction of $trillions of would-be wealth.
    The Report From Iron Mountain states that peace must NOT be allowed to break out at any cost. We build to destroy.
    The CAFR report from GOV REPORTS shows that <40,000> GOV entities are collectively holding in excess of $200 trillion. The University of California alone system reports that it has $90.1 billion. This wealth accumulates and compounds.
    BUT, Wall Street has sucked out $22 trillion since 1970. Aggregate wages have crashed and the financial services sector needs at least 6% growth a year.
    MMT and UBI are a hoped-for solution. The financial sector is trying to suck ever-more blood from a shrinking / dying host

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  • Danny B
    Gold and, the discipline of the printing press

    To recap, at one time, the FED was constrained on how much currency it could print by the amount of gold in the Treasury. The private banks were constrained on how much credit they could create by the amount of reserves they held.
    Thanks to the welfare-warfare State, gold was leaving the treasury at the rate of 100 tons a week in summer of 1971. When Britain notified that the treasury that they were going to pick up <3360> tons, Nixon slammed shut the gold window 4 days later. He was subsequently eviscerated. Once we were off the international gold standard, the FED was able to create as much debt paper as it wanted.

    With the change in regulations, treasury bonds became "money". They could be used as collateral. Banks could buy treasury bonds without their working capital tied up in something that was not liquid. In essence, this doubled the "money" in circulation as far as FED created "money". The FED also sent lots of "money" to the private bankers to be held as excess reserves. The FED paid interest on these reserves,,, free interest paid on the free money.
    In addition to FED created free money, the banks took your savings to buy up everything and, speculate against the final consumer. When your savings were not enough to keep all of this going, they were given trainloads of fresh money. This meant that they didn't have to pay interest to get your savings.
    No wonder Wall St. is having the Best time in history.
    FED GOV is deathly afraid of a collapse so, they go along with the printing.
    Everybody is caught in a trap that originated when the constraints of gold were removed.

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  • Danny B
    globalism = unworkable,,, trade deficits

    Reportedly, Germany is collapsing because of the "green" agenda.
    This includes their power grid.
    Right now, Alaska has a terrible heat wave. What happens to Europe when it gets hit by another heat wave? They don't even have A.C. in many places? The unfolding of the next solar cycle is going to cause a lot of damage and distress.

    "Allowing cash to die would be a grave mistake. A cashless society is a surveillance society. The recent round of protests in Hong Kong highlights exactly what we have to lose."
    "This week, anti-extradition protests reached another crescendo,"
    "In Hong Kong, most people use a contactless smart card called an "Octopus card"
    "But no one used their Octopus card to get around Hong Kong during the protests. The risk was that a government could view the central database of Octopus transactions to unmask these democratic ne'er-do-wells. Traveling downtown during the height of the protests? You could get put on a list, even if you just happened to be in the area.
    So the savvy subversives turned to cash instead."

    The world is waking up to the fact that; you can't have production in one place and, consumption in another. Recently, Germany had a $1 trillion trade surplus and, the rest of the EU had a $1 trillion trade deficit. While things were good, German flew very high. When the rest of the EU ran out of money, even Germany fell. The same is true for China. They did very well until their customers ran out of money. Now, China is falling fast.
    America has a common public debt market in the U.S. treasury. Armstrong warned the eurocrats back in 1997? that no common currency had ever survived unless the currency union had a common debt union. Being politicians (idiots) they persisted and, went ahead with their plans to force the union. (keep voting until you get it right)

    This whole globalism scheme has thrown markets way out of balance. China doesn't want to change because they benefited so much. The Eurozone doesn't want to change because they are pig-headed politicians who dream of a tightly controlled corporatocracy ruling all Europe. Commenting on Italy's huge deficit, "they" said that the Italians should become more like the Germans.

    This imbalance is reflected in trade imbalances. The trade imbalances, specifically, the trade deficits, are making the system UNWORKABLE.
    take a look at this chart,

    "May exports were $210.6 billion, $4.2 billion more than April exports.
    May imports were $266.2 billion, $8.5 billion more than April imports.
    The May increase in the goods and services deficit reflected an increase in the goods deficit of $4.4 billion to $76.1 billion "
    The FED can't stop printing or, we have to cut way back on imports.
    "Deficits: Deficits were recorded, in billions of dollars, with China ($30.1), European Union ($16.9), Mexico ($9.1), Japan ($6.0), Germany ($5.8), Canada ($3.6), Italy ($2.6), France ($2.1), India ($1.9), Taiwan ($1.5), South Korea ($1.4), and OPEC ($0.1)."
    I seriously doubt that globalism can be unravelled peacefully.

    7/05 Time to end BoJ’s grand experiment? – Japan Times
    This is no grand experiment. The BOJ is trying to save everything on the island.
    7/05 Chicago’s Pritzker signs budget giving teachers a pension spike – PJ Media
    Why not, Chicago is already bankrupt.
    7/05 All this borrowing to consume is unsustainable and the bill is overdue – Claudio Grass
    So, get rid of the military and, cut back on worthless expenditures.
    7/05 US sees most layoffs since the financial crisis, many in retail jobs – USA Today
    Thank Amazon.
    Beijing insists all US tariffs should be removed for a trade deal to happen
    Note to Xi, don't hold your breath.
    'Architect of Austerity' George Osborne Aims to Replace Former IMF Chief Lagarde - Report
    Why not? austerity has a proven track record of being completely destructive.

    Globalist Tech Companies Appear To Be Poised To Boycott Trump Social Media Summit, Spox Silent
    STUPID They seem to think that Trump and the FCC have no power over them. They could go to the summit and, argue their case for continued independence. Nope, they prefer to p[rove their stupidity. They viciously attack Trump, et al. They lie about EVERYTHING. They spy on everybody. They seem to think that they have too much popular support to get FED GOV to put a hex on them. WRONG, they don't have very much popular support at all.

    Leave a comment:

  • Danny B
    What happens when State finances collapse/

    Wayne, your numbers all sound reasonable. I don't know because i follow data sets more than I do confidence levels in different cohorts. On the question of confidence, I can look around at the people I see. Los Angeles is a major port for the trans-pacific trade. Just L.A. and Long beach unload 54,000 containers a day. Much of this stuff is reworked and trans-shipped from here. I don't know what is going on in other places as far as first hand information.
    As far as confidence, I frequently quote Martin Armstrong. I've cited his accuracy record MANY times. Armstrong calls for a collapse of American sovereign debt. This is a HUGE turning point in his models. Could he be wrong? Not very likely.
    51% of Americans receive a check from GOV. 45 million receive direct assistance. If you assume a collapse down to the point where GOV can only spend what it takes in, much of that 51% is going to be $hit out of luck.
    Projecting just this one data point means a collapse of commerce and society.
    Mises said many years ago; "there is no escaping the final dissolution of a credit bubble."
    Could he be wrong this time? Doubtful.

    At the moment, it looks like Europe is going to go down in flames before America.
    7/04 For the first time ever, German bund yields drop below the ECB’s deposit rate – ZH
    7/04 UK likely to fall into recession after no-deal Brexit – Independent
    7/04 “Sad” milestone as all Danish government bond yields dip below zero – Reuters
    7/03 ECB comments knocks euro zone bond yields to fresh lows – Reuters
    7/03 The politicians take charge at the ECB – Bloomberg

    "Christine Lagarde will replace Mario Draghi come the end of his term. Of course, the IMF has not been entirely supportive of Draghi’s policies. But she is predominantly a lawyer and does not have the experience in how markets function She has no idea of what she is walking into. The ECB cannot raise interest rates without blowing up the budgets in the EU and there is no way to stop Quantitative Easing as well."
    "Germany’s Ursula von der Leyen was chosen for the commission presidency. Also based upon reliable inside sources, she is very anti-Russia and believes that war is justified. She seems to be a puppet for the neocons and is reported to be not a dynamic or independent thinker."
    So the Eurozone ship is headed for the rocks and, they put the cook in charge as sailing master.
    7/04 The EU has a new batch of unelected leaders – RT
    Substitute "unqualified" for unelected.

    As far as confidence levels, they just aren't tuned in to the actual situation. The post-war boom that America experienced is dying a hard, slow death in the minds of many people.
    7/04 The manufacturing sector is rolling over but inventories keep piling up – Mish
    7/04 New-vehicle sales fall to 1999 levels – Wolf Street

    7/04 Yield curve craters – Seeking Alpha
    7/04 Defensive stocks surge ahead of payrolls as entire Treasury curve inverts – ZH

    Too many people are hyper-extending their "normalcy bias"
    7/03 Gov. J.B. Pritzker says Illinois can’t take on Chicago’s public pension liabilities – CT
    Chicago figured that the would get the state to cover their losses. Everybody thinks that somebody is going to pick up their tab.
    The confidence level IS turning but, slowly.
    7/03 40% of Americans think a recession is looming – SafeHaven
    7/03 Small business employment collapses “like in march 2008” – Zero Hedge

    I suspect that if every American was aware of the truth of the country's finance, there would eb a lot more preppers.

    7/03 Italian socialist elected president of Europe’s parliament – Zero Hedge
    7/04 American pride in political system hits new low – Gallup
    Rep. Frederica Wilson demands prosecution for those who mock Congress online
    Congressional approval is normally 20% or less. How do they figure that we have a democracy?

    Kunstler was certain that congress would not drag Mueller in to testify BECAUSE republicans could ask him questions also. They are going to drag him in.
    7/03 Stagecraft – James Howard Kunstler****-nation/stagecraft/

    "job to go and work as one of his researchers for the Club of Rome. He then said to me—and these were his exact words that I remember so clearly—‘You’ll be joining us at a very exciting time. We are creating a global environmental problem that’s going to frighten people into wanting global government.’ ”

    “At the time,” Walker continued, “being a Green politician, I thought this was wonderful. I didn’t know the facts about Bilderberg, because this was before [British conspiracy researcher] David Icke [also a former Green Party member] started doing his research and other people started doing their research, to show that there’s a hidden tier of government above our elected governments.”

    He went on to say that, before 1982, “Nobody mentioned manmade global warming. If anything, they were talking about a mini ice-age. And they were talking about acid rain. This was obviously when they started to get the idea that they could latch onto ‘global warming.’ ”

    The latest research shows that global temperatures are most heavily influenced by cloud cover. In a few months, we enter solar cycle 25. The weather is going to get much more violent.

    "Bitter Networks CBS, ABC, NBC, And MSNBC Refuse To Air Trump’s “Salute To America” 4th Of July Celebration"
    They say that he has politicised the 4th of July.

    The FED doesn't really have to print lots of money to cause inflation.
    Armstrong, "ANSWER: Once upon a time before 1971, there used to be a difference between debt and cash. Government bonds were not acceptable for collateral. You could not borrow against them. You had to liquidate them. This is why they once believed that it was LESS INFLATIONARY to borrow than print."
    "We have returned to that whereby TBills are a street name and are good collateral so they have become the equivalent of bearer bonds that merely serve the purpose of currency."
    When we broke the last link to the gold standard, the FED was able to go crazy printing bonds. They didn't have to print currency to cause inflation. All these bonds were pumped through the bankers.

    Leave a comment:

  • wayne.ct
    Inflation, Interest rates and the FED rate

    It is interesting to me how the different groups of people respond or react to the raw "information" that is broadcast concerning these three subjects.

    The large percent of the population that have no reserves, savings and investments (cash based poor) added to the additional large part of the population that are in debt but have jobs or other regular income with which to make payments (debt-credit poor, negative net worth) comprise the first "group". This large group, I would say, have a common view of this subject. It makes up perhaps 80 to 95 percent of the U.S. population?

    Their view? In general?
    Inflation: Negatively affected but mostly ignored because it is "future"
    Interest rates: They don't care as long as they are not "too painful"
    FED rate: They don't care and don't feel any need to understand it.

    Group 2: People with a positive net worth, debts (if any) are well within their ability to pay, not "tied" to the financial industry.

    Their view?
    Inflation? Not worried.
    Interest rates? Can be managed.
    FED rate: "Does not affect me"
    Size of group? Hmmm... 1 to 10 percent? I dunno.

    Group 3: Tied to the financial industry but "dependent"
    Inflation? Very worried
    Interest rates? Very worried
    FED rate: True believers. In denial because the system is "failing"
    Size of group? 10 percent?

    Group 4: Tied to the financial industry but "in power", "controllers", "elite"
    Inflation? "bring it on", afraid of deflation
    Interest rates? Afraid of massive defaults if they get "too high"
    FED rate? Worried that the "masses" will get spooked.
    Size of group? very small.... Is this the 1%?

    So, Is this a reasonable perspective on the situation?

    It seems to me that as long as the first three groups don't rock the boat too much or "wake up" that this situation can go along for quite a while. And this mass of humanity is by and large apathetic.

    I would like to think more about this and it is a problem to consider when reading some of your posts. Any other comments?

    Leave a comment:

  • Danny B
    If the banks go up, everything else must go down.

    Charles Hugh Smith' "The keys to understanding the concealed crisis of decline are purchasing power relative to wages/earnings--how many goods and services can wages buy? For the average American household, wages have risen modestly while the purchasing power of those wages has plummeted. "
    "Bottom line: how much housing, higher education and well-being does the average wage buy now compared to decades past? Not much. The statistics are bleak: wages are basically unchanged from the high water mark 50 years ago, which coincidentally was also the high water mark of U.S. energy production until very recently. Adjusted for purchasing power and quality, the average paycheck buys far less than it did 50 years ago. "
    So, what happened 50 years ago? That would be 1970, when the last link to the gold standard was broken. Who broke that link? It is attributed to Nixon But, his predecessors were the ones who ran up the bills and broke the bank. That would be the welfare-warfare state.
    The rise of currency inflation has brought the greatest gains to the finance industry.

    France recently discovered that they had been paying a salary to people who hadn't shown up for work since 1989.

    7/02 Relief rally fades as growth fears loom – Reuters
    Communication is just too good. Nobody is convinced.


    Due to the increasing value of the dollar, world oil prices rose rather than fell relative to the price of OECD exports between 1980 and 1984. The real crude oil price of OECD countries increased by approximately 30% more than its counterpart for the USA. "
    Energy is the master resource. Much of the prosperity in America is due to the fact that oil-priced in dollars gives us an advantage over most other countries. Fracking has lost $208 billion dollars and, is subsidised by the FED pumping up the junk bond market.
    The FED continues to cheapen the value of the dollar. At the same time, America needs to hold down the price of oil. $10 dollar diesel fuel would cut way back on commerce.
    America reached peak-cheap-oil decades ago. How long can it deflate the value of the dollar and still afford to buy oil?

    7/02 US retailers demand an antitrust probe of Amazon and Google – Zero Hedge
    Winner-take-all economic sounds OK, just like globalism sounds OK. It just doesn't work out in practice.
    7/02 40% of global debt now delivers a negative yield – Kitco
    What a mess !
    7/02 Japan Inc’s inflation expectations stagnate, keep BOJ under pressure – Reuters
    Pretty soon, the BOJ will have to print babies.
    CBN news reports that separation of church and State is problematic for lefties in Calif.

    Leave a comment:

  • Danny B
    Falling consumption,,,BIS warning,,,MMT rises as confidence falls

    During the 2008 crash, there were ships loaded with BMWs sitting off the ports that couldn't unload because there was no place to put the cars. The dealers weren't selling anything. Confidence was lost and, people were holding onto their money. This became self-reinforcing.
    "A third of Americans say they’ve cut spending in the last year, and that percentage is about the same no matter the demographic, according to the Invest in You Spending Survey released on Monday."
    "BIS Warns "Slowdown Is Worsening And Spreading" As Central Banks Run Out Of Ammo"
    " this report too and the speech delivered alongside the Annual General Meeting in Basel by Agustin Carstens, will be summarily ignored by those who matter, until the next financial crisis strikes and everyone is shocked how there were no signals indicating the arrival of what will soon be the greatest financial catastrophe in world history."
    " “The continuation of easy monetary conditions can support the economy, but make normalization more difficult, in particular through the impact on debt and the financial system,” the BIS warned."
    So, get rid of the debt.

    "a better mix is required between monetary policy, fiscal policy, macroprudential measures and structural reforms."
    Ah yes, the MMT camel puts his nose in the tent.
    "The possible costs arise mainly through financial channels. The historically low-for-long interest rates tend to compress banks' margins, lower profits and hence reduce banks' ability to build up capital, essential for a productive economy. "
    Shifting money to the banks that can only come from ONE place,,,, the productive economy. Reducing the operating capital of industry AND the purchasing power of consumers will NOT rescue the economy. As we see right now, Wall St is having the most profitable time in history and main street is crashed
    " These historically high debt levels limit the scope for households to drive economic activity." No kidding,, they can't buy any more Chinese junk.

    "the leveraged loan market is now some USD 3 trillion in size, comparable to the collateralised debt obligations that amplified the subprime crisis. Structured products such as collateralised loan obligations (CLOs) have surged. Credit standards have been declining as investors have searched for yield"
    The CBs pumped in $trillions to rescue the banks AND the State. The flood of money "lifted ALL boats". INCLUDING the leaky ones.
    Those leaky boats are now called "zombies"
    "Meanwhile, even as central bank ammunition has dwindled to almost nothing, global growth is slowing: "If anything, the slowdown appears to be worsening and spreading since the Report went to press. "
    To a certain extent, those leaky zombies were floated to provide a continuation of employment.

    Here is an article from Armstrong proving that NO NYC bank has ever been prosecuted for robbery. MUCH of America's financial capital is concentrated in NYC. What will happen in the inevitable melt down?
    The article mentions something that I have written about before. NOBODY has any physical proof of ownership such as stock certificates. EVERYTHING is held in the name of Depository Trust Company (Cede & Co).
    The physical certificates were held in a vault in NYC. The vault was left open as hurricane Sandy approached and, the certificates were mostly ruined. THEN, there was a fire.

    'Wealthy' Chicago Households On Hook For $2 Million In Debt Each Under 'Progressive Solution' To Pension Crisis
    Germany Plans to Cut Military Spending in 2020-2023 in Affront to US - Report
    They shouldn't do that. You never know when France might invade again.

    Iranian MP Warns 'Only Half an Hour Will Remain of Israel's Lifespan' if US Attacks Iran
    3 years ago, Haaretz published an article that quoted the IDF and stated; Iran has 231,000 missiles that it can launch at israel. No amount of searching with google or Duckduckgo seems to turn up this article.
    The current claim is that israel has 200 nukes that it can shoot at Iran. The IDF report states that israel can expect to receive 11,000 missiles a minute. Bummer

    7/02 On a tiny, isolated island, USDA scientists prep for the pork-pocalypse – New Food
    It was originally projected that China would need to cull 400 million hogs. Now, it is expected to get worse.
    7/02 Georgia court system hit by ransomware attack – Zero Hedge
    6/24 Riviera Beach pays $600,000 cyber ransom to regain data access – PBP

    You have to admit that ransomware is an excellent business model.
    7/02 New solar + battery price crushes fossil fuels, buries nuclear – Forbes
    7/02 Bright futures: efficiency versus cost in solar cell production – Power Tech
    7/02 A fine couple they are (wind and solar power) – Power Mag
    7/02 UAE debuts the world’s largest individual solar power project – Engadget

    I'll be very happy to see ALL fusion power die a gruesome death. There are 231,000 fuel rods in pools in America that must be maintained with no accidents. Japan is covered with stored radioactive material. Parts of Chernobyl are covered with 2 meter thick steel plates. The dirty material just keeps piling up.
    If you read at Eagle Research, they have very interesting articles showing that; the flame from burning HHO gas can REMOVE the radioactivity from radioactive materials.

    7/02 Construction spending unexpectedly weak; single-family down every month – Mish
    Well, family formation is shrinking too.
    7/02 Companies are warning that earnings are going to be brutal – CNBC
    No kidding. Maybe it is tied to consumption. Buy gold if stocks have no earnings.
    7/02 French bond yields slide below zero, hit all time record lows – Zero Hedge
    France has long been out of compliance with EU debt rules.
    7/02 Ron Paul: media and politicians ignore oncoming financial crisis – Eurasia Review
    This was reported in Eurasia review. Don't expect it to be reported here.
    7/02 Why wealth gap has grown despite record-long economic growth – AP
    Yeah, really strange.
    7/01 Morgan Stanley on trade truce: no real progress, downside risks remain – CNBC
    Trump said, no new tariffs.

    Here is a good article on contagion. Keep in mind that banks are free to lend OR, to not lend. In the 2008 crash, the overnight lending between banks came to a halt. Nobody knew which bank was solvent. Banks stretch out a lot and, often need some new funds to cover temporary shortages. If they can't get these funds, it sends ripples through the system. In the 2008 crash, The FED opened it's "overnight" window to make up for the lack of interbank lending.

    "First it was China. The end of May saw the collapse of an obscure Inner Mongolian bank, Baoshang, which had about $90 billion in assets and which had seemed perfectly healthy.

    Why it matters: The government blamed misappropriation of funds by the bank's owner, but the damage was done. The interbank lending market in China seized up, especially for smaller institutions.

    Small and medium-sized Chinese banks are collectively as big as the large players, and they're very reliant on interbank funding. After Baoshang defaulted on its interbank obligations, it became very hard for smaller banks to convince larger ones that they were safe. The central bank ended up having to step in with $125 billion of emergency liquidity, "
    You can see that confidence is all-important.
    "Next came investment funds. The GAM Greensill Supply Chain Finance fund, in Switzerland, imploded in early June, followed in short succession by Neil Woodford’s Equity Income fund in the U.K. Then came French asset manager H20 Asset Management, running into similar problems.

    Much like Chinese banks, funds that invest in illiquid securities suddenly find themselves under extreme scrutiny. Each bad apple seems to infect another."
    You see the problem. So many financial instruments are illiquid if confidence goes away.

    7/02 ‘Bitcoin investors will face FOLE, not FOMO’ says gold proponent Peter Schiff – Coinape Fear of losing EVERYTHING
    7/02 Does Japan vindicate Modern Monetary Theory? – Project Syndicate Only to a certain point
    7/01 It’s no bitcoin: Facebook’s libra currency is tied to government currencies – Mises
    7/01 Laffer: Federal Reserve shouldn’t be independent from White House – NY Post
    The MMT camel sticks his nose further into the tent

    Leave a comment:

  • Danny B
    Slipping confidence,,, Dems and war

    The whole system depends on confidence AND greed. Everybody wants a chunk of the $trillions that the CBs are pumping in. The CBs have tried to make the situation so that there is no alternative TINA. They pumped liquidity into all the markets. Various corporations used $trillions to buy back stock so that there would be fewer shares outstanding. Earnings-per-share would go up even if gross earnings went down. Bonuses would get bigger. This sleight of hand, combined with capital inflows (from capital flight), has kept markets looking far better than fundamentals would indicate.
    John Hussman Phd was focused on fundamentals alone and, lost a LOT of money for his clients. He finally focused on "other" factors and, got a more accurate picture.
    U.S. Stocks Still Look Better Than Anywhere Else - Bloomberg

    Jun 3, 2019 -

    Just the same, these other factors have to deteriorate eventually. As they deteriorate, the money-renters stop looking for yield and, start trying to protect their principle. Money flees markets that have no future earnings. Since Russia already had their financial collapse, they are seeing inflows.
    "Russia recorded a capital and financial account surplus of 31354.85 USD Million in the first quarter of 2019. Capital Flows in Russia averaged 9317.55 USD Million from 1994 until 2019, reaching an all time high of 33092.79 USD Million in the fourth quarter of 2018"
    Gold has gone up quite a bit as investors try to protect their principle.

    7/01 Only 12% of Vancouver families can afford an average home – HuffPost
    7/01 SoCal homes available for sale soar by 37 percent y-o-y – Dr. Housing Bubble

    As socialism bites, people try to get out. Same in Illinois. As taxes go, your home loses market value.
    7/01 “Wealthy” Chicago households on the hook for millions in pension debt – Wirepoints

    7/01 Steve Forbes urges facebook to link its cryptocurrency to a fixed weight of gold – GATA
    Nope, it's linked to currencies and treasury bonds. You can NOT have your transactional currency the same as your store-of-value. The strongest currency goes into hiding and, is used as a store of value. If the Libra was locked to a weight of gold, it would be stashed away and not circulate. The Libra looks to be nothing more than an electronic SDR. It would ultimately be controlled by the CBs.

    6/30 Dutch PM panics as Italy risks eurozone meltdown ‘they can’t escape!’ – Express They were warned back in 1989.
    7/01 Only central banks could handle recent losses on gold futures sales, Turk says – GATA
    The CBs hate gold because it is an alternative to their fiat paper. They did everything that they could to drive it down. Many of them have thrown in the towel and, are now buyers. Keep in mind that they can just create new liquidity and buy gold for free. They want to hold gold but, at the same time, they don't want CB buying to drive up the price and attractiveness.
    7/01 Central banks increased gold purchases by 74% in 2018 – MunKnee
    7/01 Dow futures surge after Trump and Xi agree not to impose more tariffs – CNBC
    The existing tariffs are quite enough to crash China.

    "Zombie companies in China's heavy industries are serviced by networks of ... calculated that zombie companies accounted for 9 per cent of China's total corporate debt. ..."
    "The Federal Reserve Is About To Create A Lot More Zombies | The ...

    6 days ago - The BIS says there are way too many zombies around, and they're killing the ... Lower interest rates are correlated with rising numbers of zombie companies, "
    "The Zombie (Company) Apocalypse Is Here – OpEd – Eurasia Review"
    Everybody is reluctant to kill off zombies because on the lost jobs.
    7/01 America’s greatest bull market rages on against the dying light – Economic times
    7/01 In a few hours, this will be the longest economic expansion on record – Zero Hedge

    7/01 Hedge fund CIO: “the math does not work” – Zero Hedge

    7/01 Global capex has ground to a halt – Zero Hedge
    Nobody will spend money on capacity-expansion when falling wages reduce aggregate purchasing power. The banks demanded $trillions of new money so that they could restart loans and get the economy going again. They just deposited this money at the FED to collect a few points of interest. MUCH safer than loaning it out to support a shrinking economy.
    7/01 BIS warns “slowdown is worsening and spreading” – Zero Hedge
    WAIT, Wall st. is having their best time ever.
    6/30 Deutsche Bank’s medieval medicine – Forbes
    Deutsche bank is valued at $14 billion and, they are going to spin off a $50 billion "bad bank"

    7/01 The Tulsi effect: forcing war onto the Democratic agenda – American Conservative
    7/01 Progressives rage over the humanitarian border crisis – Vanity Fair

    To the Dems, it doesn't matter how many millions we kill in MENA. Mexican kids should NOT have to sleep on the floor. We kill 1/2 million Iraqui kids.
    "raq had been responsible for the deaths of more than 560,000 children ... Madeline Albright replied “I think this is a very hard choice, but the price – we think is worth it."
    "US Has Killed More Than 20 Million People in 37 "Victim Nations ...
    16 hours ago"

    NOPE, we can't let the illegals suffer and discomfiture. DEMS, 2-faced killing 8astards.
    "For the last century, America has been led by one war party or another.
    Democratic administrations brought us into the evils of World War I (Woodrow Wilson), World War II (Franklin Delano Roosevelt), the Korean War (Harry S. Truman), and the Viet Nam War (Lyndon Baines Johnson)."
    "A hundred years of wars have all but destroyed the American economy with taxes, while putting us in such a debt-debacle there is not enough money in the world to pay off the interest and principal the private and foreign shylocks claim we owe them.

    Worse yet, these wars have taken a most savagely devastating toll on the personal freedoms of those whose nation was once the freest in the world."

    "High-ranking Democratic Party officials have told associates of Lyndon LaRouche that the DLC was launched in order to stop the takeover of the party by LaRouche, as well as others who were working to bring the party back to its Franklin Roosevelt orientation.

    - Bury FDR, Bring in the Bull Moose -

    Roosevelt himself, speaking to labor, the poor, Depression-wrecked farmers, the forgotten man, in his 1933 Inaugural Address, blasted "the rulers of the exchange of mankind's goods.... Practices of the unscrupulous money changers stand indicted in the court of public opinion.... Stripped of the lure of profit by which to induce our people to follow their false leadership.... [T]he money changers have fled from their high seats in the temple of our civilization.... Our greatest task is to put people to work.... [T]here must be a strict supervision of all banking and credits and investments; there must be an end to speculation with other people's money...."

    "The DLC, sponsored by the criminal element Roosevelt denounced, has boldly announced their intention to bury Roosevelt's Democratic Party. In the September 1998 issue of their magazine, {Blueprint}, DLC strategists William Galston and Elaine Kamarck propounded certain supposed "Realities That Will Shape 21st Century Politics," whose main premise is that "the New Deal era has ended."

    They declare that America has a "declining working class"--and that is good for politics. They celebrate the collapse of labor unions in the hyper-speculative New Economy, and applaud "the decline of organized labor as a force within the Democratic Party." The "Hollowing Out of the Middle Class" is "mostly for the better"; the "widening gap between the wealthy and the poor" is a good development!"

    7/01 Ocasio-Cortez flames Ivanka Trump: We should have sent a ‘qualified diplomat’ – MW

    Spoken by a former barista.
    In a general sense, it wasn't mainstream Dems that endorsed the war party The party was hijacked by the DLC. In later years, it would be HRC that brought the focus of the Dems to a continual war footing.
    Tulsi Gabbard is forcing the Dems to take an open stand on the wars.

    Leave a comment:

  • Danny B
    Avoiding sanctions,, moral decay,,gold &amp; BTC

    Indian politics, "Furthermore, according to the Metals Focus Consultancy, they forecast even stronger Indian silver demand in 2019 due to rural Indians spending their “Cash Handouts” from the government to assist local economies ahead of the President’s election. "
    Saudi and israel have pushed America to attack and sanction Iran. This has resulted in Europe rejecting American demands to form an attack coalition. It is also causing a rejection of SWIFT and the IMF. It is causing German to move closer to Russia and, depend on Russian energy. Europe desperately needs Nordstream. This may have been Trump's plan all along. Get Western Europe and Eastern Europe so economically entangled that war would be out of the question.

    Fracking, "Still, the shale sector was unprofitable at roughly those levels in the first quarter, and by all accounts, drillers continue to burn through cash. In fact, according to Rystad Energy, the return on investment from oil and gas wells in the Permian peaked in 2017."
    Here is an excellent article from Charles Hugh Smith Morality and decay.
    oftwominds-Charles Hugh Smith: Following in Rome's Footsteps: Moral Decay, Rising Inequality

    6/30 More S&P 500 companies issuing negative EPS guidance for Q2 – Factset
    Well, if earnings per share is negative, you might as well buy gold.
    Keep in mind that $trillions in stock buybacks was done specifically to raise EPS.
    6/30 Pension “death spiral” crisis reaching fever-pitch in the US – Zero Hedge
    With a total of unfunded state liabilities reaching $213 trillion, this comes as no surprise.
    6/30 Dovish central banks to push Asian bond yields lower – Reuters
    Gotta keep the capital flight flowing.
    6/29 80% of the stock market is now on autopilot – CNBC
    Well, if earnings are negative, the plane is out of gas.

    Forbes, "It's no coincidence that gold and bitcoin are both taking off this year."
    6/30 Crypto exchange and XRP refuge Bitsane vanishes, scamming 246,000 users – Forbes
    6/30 Dutch PM panics as Italy risks eurozone meltdown ‘they can’t escape!’ – Express
    Panic early and, avoid the rush.
    6/30 What America needs is a paradigm shift – FFF
    Don't worry. That is exactly what America is going to get. When peak-cheap-oil finally sets in.
    6/30 World’s largest solar power plant switched on – Forbes
    It was switched on 11 billion years ago.
    6/30 The forever war is so normalized that opposing it is “isolationism” – Zero Hedge

    Iran on EU Trade Mechanism to Bypass US Sanctions - 'Beautiful Car Without Fuel'

    Tehran Mocks 'Totally Useless' US Sanctions as Europe's Iran Trade Mechanism Comes Online
    Last edited by Danny B; 07-01-2019, 03:23 AM. Reason: spelling, of course

    Leave a comment:

  • Danny B
    Technocrats and bankers bring it all down

    "According to the McKinsey Global Institute report on consumer financial services, these three service areas generate approximately $6.6 trillion in annual revenue and has tended to grow at a 6% compound annual rate over the preceding decade." (2011)
    "The financial sector has drained as much as $22 trillion from the United States economy:"

    The financial sector can't possibly function without growth. To find this growth, they have had to cannibalize the productive sector. They are responsible to a great extent for the outsourcing to China and India.
    "The Organization for Economic Co-operation and Development (OECD) suggests that financial services typically make up 20-30% of total service market revenue and about 20% of the total gross domestic product in developed economies."
    They produce nothing but, account for 20% of GDP,,, even more in America.
    "grow at a 6% compound annual rate"
    This is a LOT of growth. It takes a LOT of liquidity. The CBs have concentrated on floating their cronies with fresh liquidity.,,,, Reportedly, the latest total has reached $247 trillion.
    Reportedly,,," $184 trillion. Your share is $86,000"
    Why is it YOUR share. You didn't incur it nor, did you benefit from it.
    More importantly, you can't pay it. The CBs are on a treadmill with a 6% (compounding) incline.

    Besides the major sins of the bankers, we have technocrats who plan to rule it all.
    The Mind Of A Technocrat: Tech Oligarchs Are Worse Than The Robber Barons
    You'll End Up With Kleptocrats Rather Than Technocrats
    Global Research has an excellent article.
    The Rise of the Technocrats - Project MUSE - Johns Hopkins University
    Are Technocrats Taking Over Our Democracies? | Gaia
    Technocrats have taken over governments in Southern Europe.
    Technocrats: Minds like machines - The Economist https://www.economist

    The New Rulers Of The World - John Pilger

    So, where does this liquidity come from?
    Shadow banking is now a $52 trillion industry and posing risks

    To the technocracy, only profits are important.
    How Britain stole $45 trillion from India | Colonialism | Al Jazeera
    New Study: Crime, Corruption, Tax Evasion Drained a Record US ...
    Dec 15, 2014 - US$6.6 Trillion Stolen from Developing World from 2003-2012
    Concerns mount over reckless 2008-style lending in the $52 trillion shadow banking system. › Business
    2 days ago

    Outsourcing to China Cost U.S. 3.2 Million Jobs Since 2001 | Data ... › Civic › Data Mine Dec 11, 2014

    "How many jobs are outsourced by the U.S. each year?
    Pinning down the exact number of jobs that are moved overseas each year is difficult. It's estimated that 300,000 positions are outsourced annually. "
    "Wages for outsourced workers vary widely by industry and by the country where they're employed. In the manufacturing industry, for example, Chinese workers make an average of $1.36 per hour, compared to $23.32 for U.S.-based employees. "

    There you have it,,, right there. This caused a massive deflation of American aggregate purchasing power. 95 million not in the workforce. Finance needs to grow without interruption. The CBs need to print without interruption.

    The technocrats have taken over because of the leverage they possess. They openly (kindof) came out and said that they need to make sure that the Trump election mistake never gets repeated.
    Wages / purchasing power has crashed in the West due to the predations of the bankers.
    Globalism has benefited just SIX countries. Most bond markets have been destroyed. The bankers wanted instant shifting of capital. This shifting capital has destroyed almost all markets. There is just too much centralization. Armstrong expects that they will NEVER try to stop the crash. "They" expect to just pick up the pieces. "They" hope for the SDR or a State-run crypto currency.

    " Fox Business: “Dow Celebrates Best June in 81 years, S&P Best in 64 Years.” USAToday: “Stocks Post Best 1st Half Since 1997.” Newsmax: “Wall Street Soars 18%, Global Stocks Surge $18T in 1st Half.”
    Bloomberg headline (Gowri Gurumurthy): “Junk Sales Hit 21-Month High as Issuers Lock in Lower Rates.” Junk issuance jumped to $28 billion in June, following May’s $26 billion. Year-to-date issuance of $130 billion is running 18% above comparable 2018. "
    Party on Wayne !

    Next stop, frugality.
    6/29 Los Angeles seeks record setting solar power price under 2¢/kwh – PV Magazine
    6/29 FT’s Jemima Kelly thrashes Facebook’s “crypto” project – Phil’s Stock World
    FT is a mouthpiece for many of the elite.
    6/29 Iran seizes 1,000 bitcoin mining machines after power spike – BBC
    Just like the pot growers who attracted the cops with their electric bill.

    America's control of the IMF and Swift gives them a LOT of leverage worldwide.
    6/29 EU launches system to circumvent swift and Iran sanctions – Zero Hedge
    China rejects US 'sanctions' on Iran oil vows to protect its energy security

    Pox Americana has crashed SWIFT trying to block Iranian oil from the markets.
    6/29 U.S. is heading to a future of zero interest rates forever – Bloomberg
    6/29 Wall Street wraps up its best June in decades as G20 convenes – Reuters
    6/29 Today’s Wall Street has all the hallmarks of tulip mania – Wall St On Parade

    Leave a comment:

  • Danny B
    What DIDN'T Wall street destroy?

    The markets are demanding a big rate cut BUT, a rate cut makes U.S. debt less attractive to fleeing capital.
    “Chair Powell will have to thread the needle in sounding sanguine on the outlook, but also discuss that the Fed is ready to ease in order to make sure the recovery continues,” Bank of America analysts wrote June 14."
    Powell has to jawbone the markets. If you can't dazzle them with your brilliance, baffle them with your BS.

    "The erosion of much of the American industrial and defense industrial base proceeded like Lucent. First, in the 1980s and 1990s, Wall Street financiers focused on short-term profits, market power, and executive pay-outs over core competencies like research and production, often rolling an industry up into a monopoly producer. Then, in the 2000s, they offshored production to the lowest cost producer. This finance-centric approach opened the door to the Chinese government’s ability to strategically pick off industrial capacity by subsidizing its producers. Hand over cash to Wall Street, and China could get the American crown jewels."

    "This loss goes well beyond telecom equipment. Talking to small manufacturers and distributors who operate in the guts of our industrial systems offers a perspective on the danger of this process of financial predation and offshoring. ""The United States has, for instance, lost much of its fasteners and casting industries, which are key inputs to virtually every industrial product"
    "Hickey told a story of how the United States is even losing its submarine fleet. He had a conversation with an admiral in charge of the U.S. sub fleet at the commissioning of the USS Illinois, a Virginia-class attack submarine, who complained that the United States was retiring three worn-out boats a year, but could only build one and a half in that time. The Trump military budget has boosted funding to build two a year, but the United States no longer has the capacity to do high quality castings to build any more than that. The supply chain that could support such surge production should be in the commercial world, but it has been offshored to China."

    6/28 Blain: “the group photo for the G20 looks line a line up for a Tarantino film” – Zero Hedge
    6/28 Bank of Japan board debates more easing at June meet – Reuters
    6/28 New-vehicle sales drop to where they were 20 years ago – Wolf Street

    Just a temporary glitch.
    6/28 UMich confidence hovers near record highs as business sentiment collapses – ZH
    Just a temporary glitch. It will all collapse in the spring of 2020/
    6/28 Deutsche Bank considers cutting up to 20,000 jobs – Yahoo
    Deutsche bank is a zombie but, the jobs are real.

    Leave a comment: