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  • Danny B
    replied
    Lost decades,,,justifying QE,,,wealth

    It's pretty quiet while everybody digests the reality of the populist revolt in Europe. The Kalergi plan calls for the replacement of native populations in Europe with dumb, brown people. Merkel won the Kalergi plan for her part in the destruction.
    Teresa May has not been a slouch either.
    Violent crime in London SURGING under Sadiq Khan claims damning new report
    https://www.express.co.uk

    They don't have guns so, they have to make do with what they have.
    Ten charts on the rise of knife crime in England and Wales - BBC News
    https://www.bbc.com

    Police officer numbers hit record low as reported crime rises by 14% in ...
    https://www.independent.co

    Just wait til all the money pulls out.

    5/30 Lost decade specter haunts Latin America as big economies falter – Bloomberg
    5/29 China showing signs similar to ‘lost decades’ Japanese housing bubble – SCMP

    The primary causes of Russia's population decrease and loss of about 700,000 to 800,000 citizens each year are a high death rate, low birth rate, high rate of abortions,
    Seems like everybody is having a population decline. Population is falling in most of the world and, the economic system just can't cope.

    All the news and charts show that we have entered a new recession. News travels fast and, greed has turned to fear.
    5/30 Corporations were the biggest buyers of stock, but now they’re selling – CNBC
    5/29 Americans are old and having fewer kids – CNN
    Crony capitalism has meant that nobody can afford to have kids. The economy shrinks. The money renters need ever-more QE. They brought it on themselves.

    Originally, we were cursed with an academician named Bernanke who had a sure-fire cure for economic problems. later, we got a UCLA economist in charge of QE.
    "Potter's arrival was most notable for not only taking over the Fed's QE baton from Sack, currently a director at quant trading giant DE Shaw, but because his arrival also marked the start of a multi-year crash in the VIX future, which collapsed the month Potter took over and has hit ever steeper lows ever since (with the exception of the occasional VIX explosion)."
    FED chairman, "investors really do understand now that we will be there to prevent serious losses. It is not that it is easy for them to make money but that they have every incentive to take more risk, and they are doing so. Meanwhile, we look like we are blowing a fixed-income duration bubble right across the credit spectrum that will result in big losses when rates come up down the road. You can almost say that that is our strategy."

    "The Federal Reserve Bank of New York today announced that Simon Potter, executive vice president and head of the Markets Group, and Richard Dzina, executive vice president and head of the Financial Services Group, will be stepping down from their respective roles effective June 1, 2019."
    June 1,,, why does this sound like they are being forced out?

    "The New York Fed will conduct a broad and thorough search for their successors."
    Does this sound like stalling?
    https://www.zerohedge.com/news/2019-...-team-quitting
    SO, is Trump going to print everything that Wall Street is demanding or NOT?

    Armstrong, "The US military budget comes in about 4% or twice that of the Roman Empire. The Roman Empire lasted far longer than any modern state for it seems to have been much more tolerable of a burden, whereas the U.S. military budget will be around 20% at times of total expenditure."

    QUESTION: You do a lot of comparison to the Roman Empire. What was the size of the government relative to GDP? Can you estimate that?

    . The US military budget comes in about 4% or twice that of the Roman Empire. The Roman Empire lasted far longer than any modern state for it seems to have been much more tolerable of a burden, whereas the U.S. military budget will be around 20% at times of total expenditure.

    The primary purpose of my investigation into the monetary system of the world is very simple. The political unrest ONLY rises when there is economic tension. Turn the economy down and you will get historically civil unrest. Additionally, it is interesting to see what policies produce the best and worst results. Augustus (27-14 AD) created a real land boom as he issued a tremendous amount of coinage creating a booming economy. He was followed by Tiberius (14-37 AD) who imposed austerity and issued very little coinage by comparison. That resulted in an economic depression in 33 AD and this was in part reflected in the Jewish rebellions over taxes."

    This is the road that China is trying to avoid,,, REVOLUTION. Trump is doing all he can to bring it about. QE is a backdoor method of pumping money into the economy to avoid crashing austerity / crashing taxes. Taxing is deflationary to those who don't have the political connections to avoid taxes.
    Earlier this year, ITEP reported Netflix and Amazon paid no federal taxes. Other companies on this list include Chevron, Delta Airlines, Eli Lilly, General Motors, Gannett, Goodyear Tire and Rubber, Halliburton, IBM, Jetblue Airways, Principal Financial, Salesforce.com, US Steel, and Whirlpool.Apr 11, 2019
    60 Fortune 500 Companies Avoided All Federal Income Tax in 2018 ...
    https://itep.org/60-fortune-500-comp...x-in-2018-unde...


    Wages have crashed and, crony capitalism has sent the money to the upper loop where it is frozen. QE is necessary to replace this frozen money. MMT is a program to institutionalize the printing of fresh, debt-free money to hold back deflation and revolution in the lower loop. The money has to be debt-free or, debt-service costs would require $trillions more printing.

    QUESTION: Dear Martin,
    Whereas for years you have put in a solid 5,000 year data for arguing for no individual taxes yet in countries around the Middle East there is no income tax. Yet they have not made any dynamic economic progress as such. I mean the evidence is seen by us live. How do we argue that zero direct individual tax will bring more economic growth? What am I missing?"

    "ANSWER: It is not just taxation. The wealth of a nation is not its resources, but its people. The Middle East has been blessed with oil in many areas. As a result, the emphasis has been historically on a mercantilist model of just selling things to others. If you look closely at the economic model, you will see that Germany may be the strongest economy in Europe, but the wealth of its people is actually less than Italy’s. According to the German Bundesbank, the European reports show a median wealth of around €163,400 in Italy vs. €51,400 for Germans. Germans pay a lot more in taxes than Italians where they make it an art form to avoid taxes.

    China understands this model. This is why they are turning inward to develop their domestic economy. A consumer-based economy creates jobs and provides a stronger economy. This is why the USA has the largest economy and everyone else stands in line to sell things to American consumers.

    Economies are constructed on their people — not resources. You need education and a work ethic to succeed. Commodity-based economies that rely on exports lack the sustainability long-term. The Middle East realizes this and we are witnessing a change in places like the UAE and Saudi Arabia."

    Education and work ethic. Most of the muslim countries turned their backs on education years ago. As the demands of the workplace turn to people with great cognitive abilities, the lazy and ignorant people fall further behind.
    " A consumer-based economy creates jobs and provides a stronger economy."
    This sounds real good. How do you demand decent wages when Robby the robot is breathing down your neck?
    So, the wealth of nations is people.
    But, the population is falling.

    Leave a comment:


  • Danny B
    replied
    Brexit,,,women in politics,,,Anti-competitive taxes

    Naturally, I have to write about Brexit,,, everybody else is.
    Crosscurrents.
    Fleeing a Sinking Ship: New York Becomes World's Financial Centre Due to Brexit
    Reportedly the banks are all leaving Britain. Many to Ireland, then Frankfurt, Madrid and New York.
    " Credit Suisse is moving 250 jobs to Germany, Madrid, and Luxembourg — and in December 2018 told its wealthiest clients to move their money out of the UK quickly."
    https://sputniknews.com/business/201...ancial-centre/
    OK. so money is draining out of the finance center.

    Globalist Elites Rejoice As Brexit Party Rise Increases Odds Of A "No Deal" Crisis
    The claim is ;"Over the past year I have detailed on numerous occasions why I believe a no deal Brexit is the desired outcome for the central banking fraternity. Their goal of creating a global currency framework is entirely compatible with Brexit given the exposure of sterling to a ‘disorderly‘ exit."
    So, a no-deal exit will crash everything and help to usher in a one-world currency.
    https://www.zerohedge.com/news/2019-...no-deal-crisis
    NOPE, there will be no phoenix rise up out of the ashes of Great Britain. There will be a cooked bird unfit to eat.

    Britain imports 50% of their food. The idea is; they won't be able to pay for imports.
    https://sputniknews.com/europe/20190...-spam-peaches/
    GREAT graph, https://moneymaven.io/mishtalk/econo...0igtWCJABnNgA/

    5/29 The welfare state is tearing Sweden apart – Mises Institute
    What Makes the Nordic Countries Gender Equality Winners? | HuffPost
    https://www.huffingtonpost
    Women in Nordic countries reportedly experience high levels of rape ...
    https://www.businessinsider
    Is Sweden's feminist agenda working? - BBC News - BBC.com
    https://www.bbc.

    Women should never been allowed to vote. To many of them vote with their feelings instead of their brain.
    Look at the failures of May, Merkel,,, along with the Prime Minsters of Denmark, Iceland, Finland and others.
    http://content.time.com/time/special...005455,00.html

    "The US Treasury curve is now at its most inverted 3-month to 10-year since 2007, "
    "market rates are so incredibly low everywhere else that China can happily ride those coat-tails. That’s how markets in China (and, increasingly, everywhere else) work: we love it when they go up, but the problems begin when they go down. That’s apparently when central banks need to use their Infinity Stones to change reality, regardless of the fact that they kill 50% of us in doing so."
    https://www.zerohedge.com/news/2019-...are-still-come

    "I explained that Americans are taxed on worldwide income whereas Europeans pay taxes on what is earned in their territory. Why should someone pay taxes on income generated outside the USA when they are not using any services in the United States? It turns out that we are economic slaves because whatever we produce anywhere belongs to the government. It is no different from the 19th century – we are still the property of the state.

    What we must understand is that American companies began to set up offshore just to be competitive. It was not that labor was $5 an hour v $15. That is the popular image they create to target corporations. The real problem is our tax code looks like the brainwave of a schizophrenic."
    "If we are really concerned about jobs, then address the elimination of income taxes which would make American workers more competitive. Restore the Constitution to indirect only."
    https://www.armstrongeconomics.com/w...e/world-trade/

    Leave a comment:


  • Danny B
    replied
    Chaos everywhere.

    I'll start with Kunstler to set the grim mood. He has always been a peak-oil guy. America has long ago reached peak-cheap-oil in the lower 48. Big Oil refuses to drill the enormous proven reserves in the Gull Island area of Alaska.
    https://kunstler.com/cluster****-nation/rumors-of-war/
    The elections in Europe REALLY threw things into chaos,,, along with other recent problems.
    https://www.dollarcollapse.com/stumbling-towards-chaos/

    Assorted headlines.
    5/28 Yield curve flashing biggest recession signal yet: Shilling – Mish
    5/28 Key slice of U.S. yield curve dives further into inversion zone – Bloomberg
    5/28 EU likely to start disciplinary steps vs Italy in June over debt – Reuters

    5/28 Italy’s Salvini seizes on election win to demand new ECB debt role – Reuters BUY OUR BONDS !
    Nope, don't even worry. That won't cause any kind of revolt.
    5/28 Next downturn could see ‘radicalization’ of policies used last time – CNBC
    How do you radicalize NIRP?
    5/28 Former Lehman trader: “investors are acting like frogs in boiling water” – Zero Hedge
    These investors are NOT in a frying pan. They are in a pan with very deep sides.

    5/28 Blain: “We start the week with UK and European politics fractured” – Zero Hedge
    5/28 The slow death of Europe’s traditional center – Atlantic

    5/28 In honor of Memorial day, John Bolton announces 7 new wars – Babylon Bee

    He's worse than McCain.
    5/28 In Baltimore and beyond, a stolen N.S.A. tool wreaks havoc – NY Times
    5/16 Trump declares national emergency over IT threats – BBC
    5/16 Microsoft warns wormable Windows bug could lead to another Wannacry – Ars Technica

    Those NSA tools got out into the wild and, there's no putting the evil Genie back into the bottle.
    The markets are headed down and, Wall Street is screaming for more QE and a rate cut.
    If Trump is going to continue to attack China, he will do it indirectly by crashing their markets by restricting liquidity. They won't have dollars to service dollar denominated debt. We shall see.
    5/28 Falling diesel fuel demand in china paints bleak picture – CNBC
    China did production without consumption. All those ghost cities are stranded assets that are losing value.
    There may be as many as 64 million empty apartments in China.Jun 26, 2018
    A State-directed economy has always been a bad idea.

    Leave a comment:


  • Danny B
    replied
    QE as a TEMPORARY fix for the global mean wage

    Marin Armstrong has a computer program that has all the history of the world and, receives the news from all the RSS feeds. Just the same, he is missing the big picture.
    The West was a high-wage & high-price economy. The BRICs forced a low global mean wage on the world. The bankers absolutely need the high prices to be maintained to preserve the notional value / price of all the stuff they hold. They do not care about high wages for the consumer. The West is on it's way to becoming a low-wage & low price economy. This would wipe out the assigned, artificial value of just about everything. These current prices / values are ONLY maintained by enormous, sustained liquidity injections from the Central banks.

    DANGEROUSLY RIDICULOUS: The World Economic Forum Says We Need $100 ...
    https://www.businessinsider.com/worl...-credit-2011-1

    Jan 20, 2011 - World needs $100 trillion more credit, says World Economic Forum ... After all, there were only three million foreclosure filings last year in the US,


    Global debt hits a new record at $247 trillion - CNBC.com
    https://www.cnbc.com/2018/07/11/glob...-trillion.html
    Jul 11, 2018 -


    All this liquidity is created to hold off defaults that would bring true price discovery. We already have true wages. "They" want to hold back true prices. The State has gotten just too many dependents. They can't afford this anymore. QE has reached it's practical limits. MMT is slated to take over liquidity creation. The bankers are aghast at the idea that GOV would stop borrowing from them. What they don't seem to realize is; It is ONLY CB liquidity that has kept consumption going.
    Mar 23, 2019 - “A $100 Trillion here, a $100 Trillion there, pretty soon you're talking real money. ..

    Globalism has only benefited 6 STATES. It has greatly benefited the bankers because they are first in line for the liquidity injections.
    In this article, Armstrong defends globalism,,, no surprise. He has stridently proclaimed that QE has destroyed public bond markets. Did it never occur to him what would happen if all QE was stopped?
    https://www.armstrongeconomics.com/w...ive-advantage/

    "Here are the share markets based in euros. All peaked in 1999 to 2000, except Spain which entered the euro late. How any analyst could recommend Europe two years ago was just nuts. This demonstrates that they do not understand international capital flows or the importance of the currency in making such forecasts."
    "Now, look at the European share markets that are NOT in the Eurozone. They have all made record highs. The difference has been the currency and regulations pouring out of Brussels with self-interest in maintaining the European Project, even though it has failed."
    https://www.armstrongeconomics.com/m...-always-wrong/
    The Eurozone project is a full-employment program for bureaucrats. It shrunk the GDP of it's member States by 20%. At the same time, it is an attempt by the fascist corporatocracy to wrest all control away from the people.

    As long as the liquidity injections continue, there is a chance that the bankers can hold back true-price discovery. All this currency inflation is gradually bleeding over to the lower loop and causing price inflation. The continuous price inflation causes an effective reduction in purchasing power / wages. The CBs print to hold off defaults by people who depend on wages.
    Since housing is a major store-of-value for the working man AND, an investment target for the upper loop, it is a good indicator of financial conditions.
    In 2005, there were 74.93M owner-occupied housing units. In 2018, there were 79.36 million owner-occupied housing units. All that hot money buying houses is driving up rents.

    Armstrong writes about the recapitalization of Freddy and Fannie.
    https://www.armstrongeconomics.com/m...ublic-in-2020/
    The average wage will no longer buy the average house. Armstrong writes about taking Freddie and Fannie private and, recapitalizing them. There is a very important note in the article.
    "Moreover, we face a period where the interest rate is going to enter a major divergence. Central banks will be forced to create interest rate caps on sovereign debt, assuming people will buy them at these low rates of under 3%. This all hinges upon confidence. When we begin to see economic stress in the sovereign markets, such as in Europe with the ECB unable to stop QE, sovereign rates will become merely artificial and irrelevant. The ECB moved to negative interest rates but that did not lower private interest rates."

    There you have it. The death knell for sovereign bonds. BUT, Armstrong theorizes that private debt will command a higher interest rate than the "capped" sovereign bond rates. NOBODY will buy sovereign bonds. Draghi has already show that the ECB can't stop printing. Any kind of divergence in interest rates between public & private debt will ensure the rollout of MMT.
    Armstrong seems short-sighted in his projections. Public debt is strained and ballooning because of the lack of earning / spending power. That extra $247 trillion has papered over the problem temporarily. The QE money filters down into the lower loop very slowly. It did nothing for wages and just caused price inflation to strain the working man.
    So, what is the alternative?

    The Fed caused 93% of the entire stock market's move since 2008 ...
    https://finance.yahoo.com/.../the-fe...rket-s-move-si...
    Naturally, Wall Street is DEMANDING more QE.

    What will Trump do? All the king's horses and all the king's men can NOT put a bubble back together again.

    Leave a comment:


  • Danny B
    replied
    Bank risk in Mexico,,, shorting the yuan

    This is just a short note on banking risk. I worked for 10 years during the winters driving around Mexico. It was always a mystery how they paid so much interest on bank deposits. Many American expats had Mexican bank accounts. I was there during one of the periodic devaluations. The Expats lost most of their money,,,, all legal, of course.
    I have a Mexican friend who drove his new Suburban into Mexico on a trip. He checked into a hotel and parked his Suburban in a locked, walled compound. In the morning, it was gone. The tapes from the security cameras had several minutes erased.
    In that same era, the American FBI caught the Mexican FBI stealing new cars from American dealerships and, turning them over to Mexican government officials.

    This same thing is happening at Mexican banks.
    "formerly the U.S. Department of the Treasury’s primary representative in Mexico. “Mexican authorities try to prosecute these cases but often aren’t successful.” In 2018 there were 7.3 million complaints of fraud involving 18.9 billion pesos,"
    "Kathy and Jim Machir discovered that their nest egg was gone. When the Machirs and other San Miguel expatriates met with Monex officials in early January, the bankers told some of them that about $40 million was missing from as many as 158 accounts, many belonging to English-speaking Americans. A dozen people interviewed by Bloomberg News say that bank statements Zavala sent them purporting to show full accounts were apparently falsified. "
    https://www.bloomberg.com/news/artic...xican-accounts
    The Mexican economy is shrinking and banking fraud has doubled since 2014. This is just a note for anybody who may have a deposit in a Mexican bank.

    The Yuan is getting weaker and the sharks are smelling blood. China has warned them NOT to short the Yuan. The typical way for a State to support their currency is; sell off dollars or gold and buy up home currency on the international markets. BUT, China and the emerging markets are desperate for dollars. Scrounging around to get dollars and, buy Yuan will just strengthen the dollar. They can punish the Yuan shorts but, it will cost them. The stronger dollar will make it that much harder to service dollar-denominated debt.
    https://www.bloomberg.com/news/artic...short-the-yuan

    5/26 Plunge of CNN, MSNBC ratings reveals fake news as bad business strategy – AT
    5/26 CNN lays off staffers after massive ratings drop – Zero Hedge

    How about that?
    This is a re-post of a vid from Bloomberg.
    https://www.youtube.com/watch?v=SJh_Uir5EMI
    DHL is doing drone delivery in China to cut way back on cost of delivery. The whole world is getting more competitive and trying to get more efficient.
    Just imagine what would happen if Amazon, for instance, took direct payments outside the banking system. Everybody else would have to follow.

    Here is a side note from China. The Chinese are big believers in LUCK. Somebody tossed coins into a jet engine,,, for luck before the flight.
    https://www.cnn.com/travel/article/c...rts/index.html
    When China's air industry hits the news, stories are typically centered on passengers going rogue, punching each other, trying to wrestle open emergency doors mid-takeoff or dangerously tossing coins into airplane engines for luck.

    5/26 Glyphosate exposure linked to fatty liver disease in humans – Beyond Pesticides
    I'm sure that this report is just a mistake.

    Leave a comment:


  • Danny B
    replied
    Trump??? Europeans are turning the suicidal ship of state.

    In December, Powell made a bit of a move that markets did not like. They crashed and, he had to walk back his actions. Now, Trump has a trade war going and, markets want it to END. Also, they want a LOT more money pumped into markets.
    5/26 The bulls continue to bet on the Fed – Investing
    I guess that we have to wait and see.
    5/26 World faces ‘clear and present danger’ from trade war escalation – Reuters
    Certainly, the money renters face danger.
    Good graphs showing that stocks have turned.
    You Know Things are Falling When... - The Great Recession Blog
    So, just how fast will investor confidence turn?

    Here is a graph that is painfully clear.
    https://twitter.com/KathyJones/statu...582662/photo/1
    https://upfina.com/is-this-the-first-recession-warning/

    Intervention is the lifeblood of the markets. What will Trump and the FED do?
    https://www.zerohedge.com/news/2019-...vention-coming
    The trade war will crash the markets. What will Trump do?
    https://www.zerohedge.com/news/2019-...-crash-markets
    Huawei was the flagship of the Chines tech pirates.
    https://www.zerohedge.com/news/2019-...ew-expose-says
    What will Trump do?

    The State, by way of crony capitalism and legislative capture has now made housing unaffordable. Energy is fast becoming unaffordable for many people. Climate change is destroying crops worldwide. What happens when food is unaffordable?
    https://www.zerohedge.com/news/2019-...d-inflation-40
    Three Charts Show Millennials Are Nowhere Close In Buying A Home

    There is very good news from Europe. Farage / Brexit is trouncing everybody. LePen has kicked Macron in the A$$. afD is doing well in Germany. The tribes of Europe are bing emphatic. They refuse to be subsumed by the garbage pouring in from garbage countries. Merkel won the Kalergi Prize for her work at destroying Germany with so called migrants. They wanted to migrate because they had screwed up their home countries.
    Even Greek Prime Minister Alexis Tsipras has called a snap election because of disappointing results for his party. He really screwed his fellow Greeks by going along with the troika of executioners. There will be SO many euroskeptics in the European parliament that it will truly melt down,,,, Just as Armstrong guaranteed them it would happen back in 1987.

    The Brexit party is going to have quite a party when they get to Brussels.
    https://www.armstrongeconomics.com/i...ortant-to-usa/

    Evidently, D.C. does NOT like transparency
    https://www.youtube.com/watch?v=uiHBnpCbZZo
    Headlines
    In Deep State Coup Attempt, All Roads Lead Back To Barack Obama & HRC
    Let's Call The Russian Collusion 'Hoax' What It Really Is - Treasonous Sedition
    America's Cities Are Unlivable - Blame WealthyLiberals And The One Percent
    NYT Admits Dem-Run Cities Unlivable - Dr. Drew Predicts Major Epidemic This Summer


    Pence Tells West Point Graduates They Should Expect to See Combat
    Yeah right, ground troops are going to invade somewhere.
    The army talks about virtue. The soldiers talk about horror.
    https://www.zerohedge.com/news/2019-...ng-horrors-war

    Leave a comment:


  • Danny B
    replied
    Ctrl P or,,, not,,,,,trouble in China,,,Topping,,,crop loss & plague.

    The Chinese didn't believe that he meant what he said.
    Now, it is Wall Street's turn.
    "After years of increasingly close cooperation and collaboration, the relationship has turned strained. Both sides are digging in their heels. Credibility is on the line. If one side doesn’t back down, things could really turn problematic. The Fed is asserting that it’s not about to lower the targeted Fed funds rate. Markets are strident: You will cut, and you will cut soon. Bonds are instructing the world to prepare for the Long March. "
    " The Shanghai Composite declined 1.0%, trading back to around February lows. China’s growth/tech ChiNext index sank 2.4% to the lowest level since February 22nd. Hong Kong’s Hang Seng China Financials index dropped 1.5% to the low going back to January 21st. "

    "During a three-day trip this week to the southern province of Jiangxi, a cradle of China’s Communist revolution, Xi urged people to learn the lessons of the hardships of the past. ‘Today, on the new Long March, we must overcome various major risks and challenges from home and abroad,’ state news agency Xinhua paraphrased Xi as saying, referring to the 1934-36 trek of Communist Party members fleeing a civil war to a remote rural base, "
    "May 19 – Bloomberg (Karen Leigh): “President Donald Trump said he was ‘very happy’ with the trade war and that China wouldn’t become the world’s top superpower under his watch."
    "The president also told Hilton he believed China wants to replace America as the world’s leading superpower, and it’s ‘not going to happen with me.’
    Credit Bubble Bulletin : Weekly Commentary: The Ignore Them, Then Panic Dynamic

    "s we’ve been warning in recent reports, the fundamentals show a global economy sliding into recession. And the technical charts show a dangerously bearish triple-top in the markets,"
    "The chart below from Sven Henrich presents a compelling argument that, using comparable measures from the 2001 and 2008 market routs, the S&P 500 has a very real risk of dropping in half within the coming year:"
    https://www.peakprosperity.com/pain-...g-is-optional/

    All the charts show that the markets have topped out. Wall Street demands more cash to keep the party going a bit longer. I suspect that Trump will let them choke.

    Mother Nature does NOT do extreme centralization. The risk of pandemics and plagues is too high. Air travel has made the risk of plagues much higher. Same for antibiotic resistance. Charles Hugh Smith writes about both the crash in farming and, the rise of plagues.
    oftwominds-Charles Hugh Smith: Superbugs and the Ultimate Economic Weapon: Food
    Rural America is doing very badly. The ongoing floods will greatly reduce food crops.
    https://www.zerohedge.com/news/2019-...verge-collapse

    ice age farmer :: grand solar minimum crop loss map
    https://www.youtube.com/watch?v=diEpXZhML_g

    The Chinese people are well on their way to avoiding banks completely just by using direct payment apps to the vendor.
    https://www.youtube.com/watch?v=SJh_Uir5EMI
    It looks like internet buyers of property are going to be a big problem in the future.
    https://www.youtube.com/watch?v=TYxgY9_AEPM&t=119s
    Eisman says that the crash will probably take out all the banks except for the big 5.
    https://www.youtube.com/watch?v=6aMvJFEjPWw&t=30s

    Leave a comment:


  • Danny B
    replied
    shorting treasuries,,,greenback is a stake in the heart of China

    ' Short selling is an investment or trading strategy that speculates on the decline in a stock or other securities price. ... Before the borrowed shares must be returned, the trader is betting that the price will continue to decline and they can purchase them at a lower cost.
    Short selling makes it possible to sell what one does not own"

    This sounds real lucrative and is used by the sharks any time that they smell blood.
    "For years now, US government bonds have looked like terrible investments, what with those trillion-dollar deficits and multiple wars and all. "
    'But two things are true of bubbles always and everywhere: They tend to go on longer than a reasonable analyst believes possible. And they burst when fundamentals finally win out. Treasuries will go the way of all bubbles someday and, just maybe, today is that day. "
    "The long bonds of any country with government debt and total debt exceeding, respectively, 100% and 350% of GDP are an automatic short, just on simple math. But the US, as the printer of the world’s reserve currency, is a special case in terms of timing. When trouble strikes elsewhere, people still come here to hide. So even in the face of ridiculous, Greek-like numbers, the dollar continues to function as money and Treasuries continue to find a bid.

    There will come a time when shorting Treasuries is the trade that makes fortunes and reputations "
    https://www.dollarcollapse.com/are-t...of-the-decade/
    You can see why U.S. GOV is trying to push MMT to the fore AND, why bankers and money renters hate the idea. The only way that the money renters can stop MMT is to boycott sovereign bonds. If they do that, they make it easier for the State to rationalize the necessity of MMT.
    As debt-service costs go higher, we get that much closer to needing a printing press that is independent of the FED. GOV has the guns and the lawbooks. Shorting U.S. sovereign debt is not a good plan.

    5/24 Trump orders intel community to cooperate with Barr probe – Politico
    Why do I get the idea that he did not say it nicely?
    5/24 Does Ray Dalio really not know better than to invest in GLD? – GATA
    GLD is paper gold. At some point, the paper gold market will break down. With 6400 tons of paper gold traded every day, the crash will be a flash that nobody can escape.
    5/24 Oil plummets, on track for biggest weekly drop in 2019 – Reuters
    If the cost of energy goes up, everything else goes down. Trump has to work overtime to hold down the price of energy.
    5/24 Deutsche Bank CEO pledges tough investment bank cuts as shares hit low – Yahoo
    TOO late to save DB.

    "Initially, the stock market decided the trade war fears were overblown. Inside the Beltway, conventional wisdom said that Trump would reach a deal with China, that all of his tough talk was just a negotiating ploy.

    It wasn’t. Agree or disagree with Trump, he means what he says about tariffs and trade."
    These realities mean that China will not acquiesce but will retaliate for any actions taken by the U.S. It has already proven that. Next time, the Chinese may choose to retaliate not only with further tariffs of their own, but also with other forms of financial warfare.'
    Armstrong said that the financial capital of the world will move to China in 2032. Presumably, Trump wants to stop this.
    "This new trade war will get ugly fast and the world economy, which is already slowing, will be collateral damage. Given the trillions in dollar-denominated debt in emerging markets, a full-scale foreign sovereign debt crisis could be in the making if emerging-market countries cannot earn dollars from exports to pay their debts."
    https://dailyreckoning.com/trump-vs-the-world/

    So, as Trump cuts back on Trade with emerging markets, they have a very difficult time earning dollars to service dollar-denominated debt. He cuts in to their earnings at the same time that they need uninterrupted earnings.
    HOPEFULLY, we will see the inception of cyber-war and economic war displace kinetic war.

    Leave a comment:


  • Danny B
    replied
    The danger in corporate bonds

    5/23 Panic in the bond market: yields tumble, 10y inverts to Fed Funds – ZH
    5/23 Stocks topping, dollar up, gold getting closer – Technical Traders
    5/23 Credit-card charge-offs rise across banking system – Wolf Street

    "Over this period, (19 years)the corporate bond market has grown by 378%, greatly outstripping the 111% growth of GDP."
    ...If a recession causes BBB to BB downgrades, as is typical, ...
    "If only 25% of the BBB-rated bonds were downgraded to junk, the size of the junk sector would increase by $650 billion "
    "Will forced selling from ETF’s, funds, and other investment grade holders result in a market that essentially temporarily shuts down similar to the sub-prime market in 2008?"
    "he graph shows the implied ratings of all BBB companies based solely on the amount of leverage employed on their respective balance sheets. Bear in mind, the rating agencies use several metrics and not just leverage. The graph shows that 50% of BBB companies, based solely on leverage, are at levels typically associated with lower rated companies. BB

    If 50% of BBB-rated bonds were to get downgraded, it would entail a shift of $1.30 trillion bonds to junk status. To put that into perspective, the entire junk market today is less than $1.25 trillion,"
    https://realinvestmentadvice.com/the...-maginot-line/
    Forced selling to WHO?

    The Rouble can and, will be attacked. It is at a disadvantage because it isn't much used in international business.
    BUT, "On a 10:1 trading to clearing multiple, that's the equivalent of 6,380 tonnes of gold traded per day, or 1.6 million tonnes of gold traded per year.Mar 29, 2017"
    " the notional value of daily paper gold trading is around $125.3 billion per day, given a dollar gold price of $1200 /oz. That calculation is based on the equivalent of 3248 tonnes of paper gold being traded daily."
    5/23 Russia adds 500,000 ounces of gold to reserves in March – Smaulgld
    Currently, everybody is trying to suppress the price of gold while they buy as much as possible. One of the biggest gold miners is collecting .24 ounces per ton of mined rock.

    Couple of vids
    https://www.youtube.com/watch?v=BbZz4vcF5ho&t=80s
    5/23 China slams US ‘bullying’ as firms step away fro

    https://www.youtube.com/watch?v=uQfOmaVpYus&t=70sm Huawei – Yahoo!

    I suspect that everything that Huawei builds has lots of back doors.

    Leave a comment:


  • Danny B
    replied
    Crony capitalism failing

    Crony capitalism looks and acts exactly like fascism. Mussolini said that fascism is the marriage of big gov and big business. Crony capitalism has brought us monopolies and cartels. As automation greatly lowers the cost of manufacturing, the monopolies raise prices and increase their profits. This all sounds good to the businessman until nobody can afford his products. Then, the State is tasked with keeping consumption going. This only works for a limited time. Crony capitalism squeezes a lot of people out of the economy. The dispossessed grow in numbers and demands.
    Anti fascism is a movement that equates all business with fascism.
    The Cloward–Piven strategy is a political strategy outlined in 1966 by American sociologists and political activists Richard Cloward and Frances Fox Piven that called for overloading the U.S. public welfare system in order to precipitate a crisis that would lead to a replacement of the welfare system with a socialist government":"
    Presumably, the antifas want to tear it all down to replace current GOV with something else.

    Regulatory capture has brought us to the point where socialism looks more attractive that the current version of capitalism. A nation is held together by people who have common desires and goals. The polarization is only getting worse. I suspect that antifa will make a BIG showing both before and after the election.

    Here is an article with excellent charts. It shows the last few "topping points'. Judge for your self when the next topping point will be.
    https://northmantrader.com/2019/05/22/ghost-chart/
    "Come on. We’re at the end of a bloated debt cycle propagated by easy money and it’s simply not producing growth anymore. Trade wars, blade wars, whatever, fact is growth peaked last year and it was all artificial because of the also artificial tax cuts.

    Let’s just keep things real here. The data shows ZERO uptick in organic growth anywhere.

    And the bond market has been screaming warnings since last year when it tagged its multi-year trend line."

    "While many voices seek to assure us these technologies won't displace human workers, the reality is cutting labor inputs is the core driver. What few pundits seem to understand (perhaps because they've never experienced a truly competitive market?) is that the rush to incorporate these technologies into existing enterprises is deflationary not just to prices but to profits."
    "Reducing labor inputs and improving productivity of capital and the remaining labor force is not going to generate profits if competitors can access the same tools and processes. The race isn't to maximize profits, it's to survive the inevitable deflationary spiral in prices as competitors are forced to pass along cost savings to customers to retain market share."
    So, form a cartel.

    "Pundits glorying in tech profits only consider monopolies or quasi-monopolies like Apple, Facebook and Google or monopolies / cartels enforced by government regulations and policies. Markets open to competition do not enable pricing power beyond a temporary advantage for one or two product cycles. (Please see Two Intertwined Dynamics Are Transforming the Economy: Technology and Financialization)"

    Here is a side note, "10 companies control the food industry - Business Insider
    https://www.businessinsider.com/10-c...ndustry-2017-3

    Apr 4, 2017 - A small number of powerful companies, from Unilever to Coca-Cola, create ... Only 10 companies control almost every large food and beverage ..."

    "Everyone counting on trillions in tech profits is overlooking the inconvenient reality of the S-Curve for cheap credit, cheap energy and cheap labor--the three drivers of global expansion. Once credit dries up or becomes more expensive, once cheap energy is only a memory (or future fantasy) and once employment sags under the pressure to reduce labor inputs, the ranks of those with the earnings or credit to buy, buy, buy will be thinned."
    The State is doing all the buy, buy, buy. What happens when the sovereign bond market collapses/
    "Stagnant wages can only be supplemented with borrowed money until the costs of servicing the debt (interest) eats the borrower's budget. At that point, lenders will have to face the unpalatable truth that any additional loan will end in default, a process that will also collapse the entire unsustainable mountain of debt the household is struggling to service."
    Bring on MMT and UBI
    "As many others have pointed out, energy can be abundant but it only drives expansion if it's affordable to low-wage workers. If it's only affordable to the top 20%, every economy based on mass consumption implodes."
    We're all going to be ridding scooters and living in tiny houses.
    "Sure, there will be jobs for those installing and maintaining the software and robots, but remember: enterprises don't have profits, they only have costs, and the pressure to eliminate entire layers of managerial costs as well as production costs will only increase."

    "That leaves government-enforced monopolies as the only dependably profitable corporations, and the citizenry will soon tire of enriching tech oligarchs who bought political cover and regulatory moats. Deflation eats credit-dependent, mass-consumption economies alive from the inside."
    oftwominds-Charles Hugh Smith: Technology Is Not Just Disruptive, It's Disastrously Deflationary

    5/23 4 reasons why central banks are rapidly buying gold – Birch Gold
    They just don't trust each other.
    5/23 Brexit crisis: minister quits, piling pressure on Britain’s May – Reuters
    Hopefully, May will melt down just like the wicked witch of the West.
    5/23 Morgan Stanley warns Tesla is facing bankruptcy – ZH
    How many weeks / months did it take for Tesla to fall from the top?
    5/22 Glyphosate effects on earthworms – Environment Papers
    There are 20,000 sq. MILES of America farmland that have sterile soil.
    5/22 We’ve hit a new low in campaign hit pieces – Rolling Stone
    You ain't seen nothing yet.

    "My favourite today contains a quote from a US semiconductor maker who states “We’re too far into free trade that the world cannot have countries not trading.” Sorry mate, 1913 called and wants its ‘Great Illusion’ back; indeed, reports are that China’s surveillance camera-maker Hikvision is next in the US firing line. Standing with me not on the side of the (Norman) Angells is Eli Lake writing for Bloomberg, who argues “The tech cold war has begun. To which I can only say: It’s about time. If this ban is just a bit of brinkmanship designed to pry a better trade deal out of Beijing, however, then it’s a blunder. The national security implications raised by Huawei’s technology transcend any trade dispute.” And while US tech is in the headlines, so is US farming, where federal subsidies are set to rise sharply to offset trade-war pain."
    Um, what happens to farming if FED GOV goes broke?
    https://www.zerohedge.com/news/2019-...-crashing-down

    Leave a comment:


  • Danny B
    replied
    Election violence,,,, societal collapse,,,Crash of "no-profit-no dividend business mo

    I have to start with politics. Armstrong speculates about war in Europe starting in 2020.
    https://www.armstrongeconomics.com/i...-european-war/
    Now, keep in mind that the existing S tate powers plan to continue in power. Farage is giving them nightmares, along with S

    Salvini, et al. You saw that mainline Power in Spain violently attacked the secessionists. Armstrong writes, "Unfortunately, the tension should begin to become more pronounced starting in 2020 going into 2022. I am not sure it would be a war, but certainly a rising trend toward independence."

    The MSM is full of stories of antifa violently attacking anything conservative. Armstrong is predicting a LOT of violence around 2020.
    From Indonesia,
    6 hours ago - Violence erupted in Jakarta, Indonesia, after it was announced that President Joko Widodo won re-election.
    A “provocative and violent” crowd turned up from nowhere in central Jakarta at around 11pm on Tuesday (May 21)
    They have suggested that a group of provocateurs may have been responsible for the violence. "A majority of the protesters came from outside of Jakarta,"


    As Trump encourages the indictments of his enemies to grow and go forward, you can expect the extreme polarization to only get worse.

    From Australia, "Here I want to develop one thing that Bendell talks about: social collapse."
    "Bendell chooses to think that social collapse is inevitable, catastrophe probable and extinction possible. That’s my guess too."
    "The ecosystems of the world that have gently held civilizations over the past 10,000 years are collapsing."
    "What will it mean that phytoplankton numbers are dropping like a rock, or that insects are 80% depleted? Nobody knows. What happens next is completely unpredictable. Such is the nature of complex systems."
    "Almost none of those horrors were committed by small groups of savages wandering through the ruins. They were committed by States, and by mass political movements.

    Society did not disintegrate. It did not come apart. Society intensified. Power concentrated, and split, and those powers had us kill each other. It seems reasonable to assume that climate social collapse will be like that. Only with five times as many dead, if we are lucky, and twenty-five times as many, if we are not."
    " would hazard that about 99% of everything in the mainstream media is dedicated to sustaining the unsustainable, and 100% of everything in the financial “markets” is geared towards the same."
    https://www.peakprosperity.com/theyv...-our-future-2/

    The crash of Tesla motors;
    "Since anyone can read all the Tesla stories and draw their own conclusions as to what happens next, lets stick to the consequences. The obvious one is what does it do to confidence in the Modern Disruptive Tech (“MDT”) price model: “We don’t have to pay dividends or make profits because we are a disruptive company that's triggered a paradigm in demand and made ourselves a monopoly – therefore it’s all in our stock price” ? "
    "Tesla’s current stock crash shreds that MDT model. (Down 46% since Dec high, 30% from April.)

    Why? a) Because Tesla did not have anything like a monopoly. Its failing to deliver. I"
    "The MDT Model requires the stock to retain the confidence of the capital markets to keep it capitalised – Tesla has now lost that confidence. "
    "But the consequences of a collapse in the MDT model will be massive. Consider the pain. Consider firms like Softbank which have funded themselves from everywhere and anywhere on the basis they are oh-so-clever at Tech investing. And suddenly they find they own a whole bunch of stocks that have never paid, and never will pay a dividend or repay debt, and yet they have promised Mrs Watanabe (the archetypal Japanese retail investor) their bonds are great value (Junk as far as Moodys and S&P are concerned, investment grade according to local rating agencies)."

    "Asking around the reason for investment holders putting dosh into the fund is that anything is better than paying banks for the privilege of holding your cash."
    Do the smart thing, buy French bonds.
    "It struck me all as bit silly. France, that well know bastion of social equality, industrial peace, sensibility, stability, benevolent banks and companies accounts for over 25% of Euro corporate debt issuance."
    "we turn a blind eye to France breaching its sov debt limits, and corporates owing 125% of GDP because we trust them to spend it sagely?)"
    https://www.zerohedge.com/news/2019-...se-two-reasons

    "The reason young people are turning to socialism is because they aren’t actually experiencing free market capitalism. We are trapped in a paradigm of crony capitalism or corporate fascist capitalism. "
    "But the show must go on. The freakshow of pedophiles, *****s, communists, fake Mexicans and baby killers running for president as Democrats should scare the living **** out of every critical thinking normal American. They make Trump look like a superstar in comparison. No matter who is selected by the oligarchs to represent the Democrat team, the outcome will hinge on three or four swing states, with no definitive victor likely until the day after the election – if then."
    That's when the Soros riots kick in.
    https://www.theburningplatform.com/2...-them-part-ii/

    5/22 GOP Rep. Justin Amash holds ground on Trump impeachment – USA Today
    Just how desperate do you have to be to haul somebody up in front of a court of law when you don't actually have any crimes or charges?
    5/22 Has the day of the nationalists come? – Pat Buchanan
    Nope, not enough blood spilled yet.
    5/22 Housing collapse 2.0 continues as predicted here – Great Recession
    5/22 Central banks urged to join together to raise inflation targets – Bloomberg
    Here it is if you want an inside look at operations at a Central Bank.
    https://www.youtube.com/watch?v=hVoOLdLgWaU

    5/22 Turkey burns bridges with markets as costs of lira defense mount – Bitcoin
    Erdogan is going to do a spectacular flameout.
    5/22 Prepare for difficult times, China’s Xi urges as trade war simmers – Reuters
    Chinese markets are going down FAST
    5/22 British Steel collapses; thousands of jobs could go – Yahoo
    Well, 5$ trillion in debt isn't going to help.

    "Pushing interest rates below zero is both an act of desperation and something that in theory should have a huge, immediate impact of the behavior of borrowers and savers. The fact that negative rates have become the new normal in big parts of the world but haven’t caused the expected behavior change should scare the hell out of everyone. "
    "Businesses in particular should be borrowing and investing like crazy, igniting an epic capital spending boom.

    But that hasn’t happened. In Europe, for instance, negative rates have been in place for five years …"
    No kidding. Maybe it has something to do with crashing wages and spending power.
    "Business capital spending, the engine that in theory should be propelling Europe’s economy, looks like the opposite of a boom."
    Maybe because wanna-be buyers have no jobs or money.
    "even with negative interest rates the Continent continues to dig itself ever-deeper into a financial hole. The same death spiral dynamic is in place in US, Japan and China.

    To put the problem in more familiar terms, the world’s central banks have launched their version of tactical nukes at the problem of slow growth and soaring debt, and the dust has cleared to reveal the enemy unscathed and coming back for another go. "
    "The next recession will begin with interest rates already at emergency levels, leaving central banks with no choice but to launch even bigger nukes. If interest rates are currently at -0.5%, then push them down to -5%. If buying up every investment-grade bond didn’t work last time around, then buy up junk bonds and equities, and maybe pay off everyone’s mortgage and student loans. "
    https://www.dollarcollapse.com/negat...rifying-truth/

    Leave a comment:


  • Danny B
    replied
    Final harvest of the seeds of war

    Trump just signed for sanctions on Ruissia's Nordstream pipeline.
    At the same time, America has greatly increased the importation of Russian oil. How is that going to work out in the future? Fracking is a disaster that loses tone of money to produce oil that we must export because it is too low quality for American refiners.

    I encourage those of you who live in the British Isles to PLANT A GARDEN.
    While all the focus is on Brexit, the UK faces a debt and currency crisis
    UK has over $8T in external debt: 2nd largest debtor in the world after the U.S.

    True UK government debt exceeds £5 trillion as pension liabilities not in official numbers
    Total UK national nominal debt surged over £2 trillion; Increasing at over £5k per second
    Total debt (government, private, business & bank debt) as a percent of GDP is over 500%
    Total UK debt could total £6.7 trillion by 2023, rising to nearly 260% of GDP - PWC
    https://www.zerohedge.com/news/2019-...goldcore-video

    You'll soon be going down the Zimbabwe road.
    https://www.rt.com/business/459879-z...onounced-dead/
    Yep, GOV really knows how to spend money wisely.
    https://www.rt.com/news/455675-zimba...-wigs-outrage/
    Meanwhile, the U.S. Navy has a new research program.
    US Navy wants to create archive of 350 BILLION social media posts for 'research' purposes
    Of course, it is ALL very innocent.
    https://www.rt.com/news/459542-faceb...ign-elections/

    5/22 Nordstrom crashes to 8 year lows after slashing guidance – Zero Hedge
    5/22 Chicago Fed national activity index falls in April, tugged lower by factory slump – MW
    5/22 Checking the pulse of the U.S. economy: too much debt? – The Street

    Pulse,,, what pulse?
    5/22 Ron Paul savages ‘total failure’ Fed Reserve for ‘flat-out broke’ America – CCN
    5/22 Shortage of cheaper houses stifles U.S. homes sales – Reuters

    No mention of low wages.
    5/22 SAT adds parental misfortune score – Bad Daddy
    5/22 California border agents dropping illegal migrants at bus station – Zero Hedge
    I'm sure that this will deter other would-be migrants.

    Kunstler has something to say.
    https://kunstler.com/cluster****-nat...-tranquilizer/

    Originally, when money was connected to labor value, People worked and saved. They put their money in a bank. They merited interest because they had deferred their consumption. The bank lent out the money and merited interest because of the risk of non-payment. As wages froze at a low level, there just wasn't enough money in the banks to loan out to speculators. This necessitated the creation of money that was NOT connected to labor value. Through regulatory capture, the interest value of your deferred consumption (your savings) was stolen by banks that pay no interest on the value of your honest labor. At the same time, the banks still charge interest when they loan money.
    They have very little real risk if the State bails them out for every bad decision.

    The money renters still expect to receive interest even though they pay no interest. avoiding interest payments on bank accounts has gained them $400 billion a year. At the same time, they still charge huge amounts of interest payments on your debts.
    All of this is happening while the world is flooded with liquidity. The liquidity is all stuck in the upper loop which allows them to charge interest on something that is very scarce in the lower loop.
    Not all of this is the fault of the FED. Central banks were created to finance wars. So, while the FED is central to the ongoing robbery, it couldn't have dome it without regulatory capture by the State. War is just TOO profitable to ignore when there is ZERO morality at the top. The FED was created as Europe was slipping into WW I A few years later, America was financially geared up to have a BIG, expensive war.

    Jim Grant has an excellent article.
    https://www.nysun.com/national/regim...t-rates/90694/
    Burke, "war is the health of the State"
    We need a new operating system.

    Leave a comment:


  • Danny B
    replied
    The operating system is frozen up

    "'the fall of the British pound back to 1985 levels"
    Nobody is buying bonds from the ECB. Why should anybody buy them from the BOE?
    5/21 British Steel risks collapse with 25,000 jobs under threat – Reuters
    Containerized shipping combined with automation has made a world with a few winners and, all the rest losers. All the CBs are doing QE by one name or another to keep employment going.
    Margaritaville lyrics.
    Don't know the reason
    Stayed here all season
    Nothing to show but this brand new tattoo

    But there's booze in the blender
    And soon it will render
    That frozen concoction that helps me hang on
    Wastin' away again in Margaritaville

    Eventually, there will be many millions of people stuck in Margaritaville with noting to do and, nothing to show.
    Traditionally, capitalism only rewards those who participate in remunerative enterprise. It offers nothing to those who opt out one way or another. Socialism tries to provide for everybody BUT, it kills the motivation of the entrepreneur. Socialism always fails because nobody has any motivation to make it work.
    Meanwhile the State tries to grow without limit. Traditionally, the State grows until it blows up the public bond market. There are over 22 million working for GOV in America.
    5/21 Four in ten Americans embrace some form of socialism – Gallup
    No surprise since 51% of Americans receive a check from GOV.

    5/21 Stocks come back but bonds flash a ‘dire’ warning about the economy – CNBC
    5/21 QE may be over, but the Fed’s U.S. debt hoard is about to soar – GATA
    Yeah, right.
    Trump is catching on.
    https://www.thegatewaypundit.com/201...want-to-fight/
    5/20 How Republicans gave us Millennial socialists – Aier
    It wasn't just republicans who fostered crony capitalism.
    5/20 Where is the Democratic alternative to forever war? – TruthDig
    Rich donors do not pay for peace.
    5/21 Deutsche Bank death spiral hits historic low. European banks get re-hammered – WS
    As Europe keeps falling, the implications for Europe and everyone else – Alhambra Partners

    Ah yes, centralization breeds contagion.

    Leave a comment:


  • Danny B
    replied
    Crops & food prices,,,speculator vs producer

    As more and more niches are automated, more jobs are lost. As Bricks & mortar gives way to E-commerce, fewer people have a salary. As aggregate purchasing power diminishes, the economy shrinks back to just essentials.
    "Over the past two decades, food prices have risen 2.6% a year on average"
    So, farmers are getting much less for their crops but, food prices are going up. It looks like they may go up much more.

    Canada;
    "– As of today, May 18th, 2019, no farmers (zero) have started planting.
    – In 3 years the percentage of April planting starts has decreased to 0% from 70% just 4 years ago. Typically planting was completed by mid to end of May.
    – Flooding this year from Ottawa to Detroit along with cooler temperatures can wreak havoc on winter wheat crops which are planted in the fall and has germinated. But if the heat doesn’t come to dry up the land then the wheat crop is susceptible to rot.
    – soil temperatures are below the 25-year average by 23 degrees.
    – more rain means less sunshine."
    https://www.armstrongeconomics.com/w...o-plant-crops/

    Armstrong, "There is a lot going on in Britain. Many fear that Jeremy Corbyn will now win because Theresa May has made a real mess of BREXIT. Consequently, the Telegraph is reporting that Britain’s wealthiest individuals are preparing to leave the country. The fear that Corbyn will take over Britain as the prime minister is rising. He is so left-wing that the #1 question coming from the UK is whether a win for Jeremy Corbyn could be the reason the computer has been projecting the fall of the British pound back to 1985 levels"
    https://www.armstrongeconomics.com/i...-to-the-pound/

    Armstrong, "QUESTION: Do you support Trump and his trade war with China?

    QW

    ANSWER: No. Trump is living in an old world view of trade. The numbers are not accurate to begin with. The United States for years actually relied on economic interdependence with China as a stabilizing force in relations with Beijing on geopolitical levels. In other words, China needed the US market to sell products to provide employment for its people. The business between the two nations formed a check on U.S.-China affairs. However, as Trump escalates his trade dispute, he is playing with fire.

    Asian culture is a matter of saving face. You cannot negotiate in this type of confrontational posture that leaves the opponent weak in appearance. Regardless if it works for China or not, it becomes a matter of principle. The result is a reduced incentive for stability and restraint in Washington. We already have the nonsense that the Democrats have done with Russia in re-establishing the Cold War. Here we have the Republicans wiping out relations with China. It was Nixon who opened up China and split the close ties between Russian and China. This policy in the USA has actually encouraged the relationship between Russia and China even if it was never intentional."

    Instant capital transfer has allowed the money-renters to invade & depart ANY market. Globalism is good for them to maximise profits. BUT, when they depart a sector / State / market, it generally crashes down for lack of capital. Armstrong, et al take a very dim view of anything that diminishes profits. The Central Banks are trying to prop up markets that have suffered from wild flights of capital. They do this with debt instruments. This has caused the CBs to create and hold unsustainable debts.

    MMT would give the Treasury the ability to sustain market sectors without incurring new debt. If a market can NOT be shorted and crashed for profit by the sharks, they will stop much of their speculation. For Armstrong and millions of other money-renters, this means a big cut in profits.
    Giving the power to create money SOLELY to the Treasury would short-circuit most of the speculators. Benjamin Franklin proved that paper money CAN work. There just needs to be limits to proliferation. Considering the amount of jobs lost to automation, it is highly doubtful that the welfare state is going to cut back on it's demands for funding.
    5/21 Harry Dent: MMT utter bullsh*t – free checks to everyone! (socialistic nightmare) – MS
    Has he thought about "free anarchy" for everybody.
    5/21 Tight U.S. job market not attracting new people to the labor force – Reuters
    The skills gap just gets worse and, welfare gets more comfortable.
    5/20 Here’s how many U.S. households will run out of money in retirement – Yahoo!
    Is that with or, without a crash?

    Leave a comment:


  • Danny B
    replied
    Oil, Iran, Putin,, Rare earths,, Farming crash,, slipping away

    Putin plays chess.
    The war hawks talk up a big attack on Iran. So what news do we get back?
    Visualizing The Countries In Range Of Iranian Missiles ZH
    Venezuela Oil Output in April Drops to 16-Year Low - US Energy Dept
    Russia's energy ministry does not rule out oil shortages on global market if demand grow
    Bank Of America - $90 Brent May Be Around Corner

    So, what happens to the West when oil spikes? Tar sands is failing. Fracking is a loser,,, Venezuela is screwed up. Maybe now would NOT be a good time to attack Iran.

    B]Trump Says War Will Mean The 'Official End Of Iran' (Total Annihilation) Warns 'Never Threaten US Again'
    US-Iran Showdown Is One False-Flag Attack Away From Global Calamity[/B]
    Sure, attack Iran and see what happens to the West. Even farming is crashing WITHOUT high fuel prices.
    Will Robot Tractors Save America's Farming Industry After It Crashes?
    "The S&P GSCI Grains Index Spot has collapsed more than 50% in 81 months from the August 2012 peak. Meanwhile, inflationary cost pressures have been seen in farming equipment, labor, seeds, fertilizers, fuel"
    https://www.zerohedge.com/news/2019-...ter-it-crashes
    5/20 Oil edges higher as OPEC+ says to stay the course – Reuters
    John Deere Slashes Production Amid A 1980sStyle Farm Crisis Collapse In Midwest

    Xi Sends Trump A Message - Rare-Earth ExportBan Is Coming
    Largest known rare earth deposit discovered in North Korea | MINING

    Buy your Neo magnets real soon.
    IRAN DID IT !
    5/20 Insurer says Iran’s guards likely to have organised tanker attacks – Reuters
    5/20 ‘Sabotage’ of Saudi oil tankers is a dangerous moment in Trump’s feud with Iran – Ind

    There was NO sabotage. Bibi and the war hawks are just using S.O.P. to get a war going.
    5/20 What next? None of the UK cabinet is fit to remain in office – CW
    5/20 Austrian government collapses as far right leader caught in video sting – Reuters

    E-commerce is destroying bricks & mortar. So, all the work will go to warehouse workers,,, who are all robots.
    https://wolfstreet.com/2019/05/18/e-...eres-the-data/
    "Last year, e-commerce sales blew through the $500-billion level for the first time ($513.6 billion). For 2019, e-commerce is on track to hit $575 billion, an increase of $61 billion."

    There is a NEW free money train coming to town.
    5/20 Modern Monetary Theory finds embrace in unexpected place: Wall Street – NY Times
    Not all the big money people are onboard.
    https://www.youtube.com/watch?v=g6iB6QzuQ70&t=27s
    https://www.youtube.com/watch?v=OXuOPEsTQ0k&t=60s

    5/20 Deutsche Bank shares hit all-time low after UBS cuts rating to sell – Zero Hedge
    So, who are they going to sell to?
    5/20 What will the next U.S. recession be like for investors? – Forbes
    What happens to all parasites when the host dies?
    5/20 Ford to cut 7,000 jobs by August, including 900 this week – CNBC

    "In an act of incredible courage the US, which was told (by the Israelis, of course!), that the Iranians were about to attack “somewhere”, Uncle Shmuel sent two aircraft carrier strike groups to the Middle-East. In a “daring” operation, the brilliant USAF pilots B-52 bombers over the Persian Gulf to “send a message” to the “Mollahs”: don’t f*ck with us or else…

    The “Mollahs” apparently were unimpressed as they simply declared that “the US carriers were not a threat, only a target“."
    The AngloZionist Empire: a hyperpower with microbrains and no cred left, by The Saker - The Unz Review

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