Economic pressures

[BroMikey]

White hats anticipated deep state's new strategies to get replacement money for sanctuary cities who have been cut off and at the same time ruin the Trump economy, all countermoves. Military planning at it's finest. Weaponized virus attacks thru the MSM democratic arm. Same dance different day. Deflate for a while and ride the Trump train up to 40 G's Don't buy, just sit home and pray, hoping you don't die soon Easy money for the machine.

[BroMikey]

CB rate cuts failed to ruin the market. FED corruption

[BroMikey]

Controlled DEFLATION so the bubble does not pop like the CB want's. Good plan huh?

[Danny B]

3/08 Fed chairman confirms Fed’s role as the great enabler – Advancing Time
OK, but, what are they going to do about it?
https://www.zerohedge.com/political/end-fed
3/08 Aramco slashes crude price, starting global oil war – Bloomberg
3/08 Russia just told the world, “no” – Tom Luongo
Russia is going head-to-head with OPEC.
3/07 Crude collapses since start of year: a credit implosion up next – Mish
Saudi Arabia Starts All-Out Oil War: MbS Destroys OPEC By Flooding Market, Slashing Oil Prices


3/08 “We are in an adverse feedback loop” as coronavirus hits consumer spending – ZH
More QE will fix everything.
3/07 Plunging yields force investors and Fed to rethink strategy – AP
NO WAY out.

Zero Hedge
Market Bloodbath: Middle East Stocks Crater; Kuwait Halted; Aramco Below IPO; Dow Indicated Down 500
"We see this panic-selling across the board taking certain markets to lows not seen even during the financial crisis."
Global Air Traffic Set For Worst Year On Record
Lebanon Announces Default On $1.2BN Debt Payment In Historical First
All Hospital Beds In The US Will Be Filled With Patients 'By About May 8th' Due To Coronavirus: Analysis
So, invest in beds.
"It's Like Scenes From A Mad Max Movie" - Americans Continue Epic Run On Costco

Putin Launches "War On US Shale" After Dumping MbS & Breaking Up OPEC+
Port Of Los Angeles Taking "Substantial Hit", Expects Volume To Plunge 15% From Coronavirus
Those 40 vessel cancellations would represent nearly 25% of our normal traffic."
"The Market Slump Is Just Beginning" - Covid-19 Is Not The Cause, It's The Catalyst
Former British Supermarket Boss Warns Of Potential Covid-19 "Food Riots", Army Patrols

This brings up the question of the effectiveness of lockdown. If you lockdown one area, everybody else is going to freak out. 5 million left Wuhan just before it was locked down.
Suppose that rumor about lockdown caused many millions to leave the cities. Just how much of this would it take to cause the city to become dysfunctional? Are regils / cites quarantined to stop the spread of disease?
Are cities quarantined to keep them from collapsing?

[Danny B]

I lean more towards technical issues.

The creation of the stock market was a confluence between; banks who had money to loan AND people who had good ideas that needed finance.
The DOTCOM crash was a confluence between venture capitalists AND people who had bad ideas.
If a widget sells for one dollar, nobody is going to break into a market trying to sell widgets for $2.
Therefore, the purpose of investment is to bring PRICE DEFLATION. Our standard of living goes up (materially) when prices go down.
Capitalism and the stock market function by raising our (effective) purchasing power so that we can live a more comfortable life. ALL the effects of price deflation are also dependent on adequate wages. There are no earnings in the stock market if wages are inadequate to support consumption. At one time, the stock market was a place for investors to earn money by betting on viable ideas/inventors.

With the State creation of the welfare-warfare, the dollar was debased until the gold standard was crashed. This unleashed monetary inflation that went directly to the speculators. Previously, the stock market was a place for investors. With unbridled monetary inflation, the stock market became a casino for speculators. The earnings from the stock market have to come from somewhere. Neither the State, the banks, nor the stock market are producers. The earnings of the stock market can only be squeezed out from the actual producer.
Regulatory capture guaranteed that the parasites would receive unlimited funding in the form of constant monetary inflation by the State. This was institutionalized by the jewish FED heads mandating that we have 2% per year price inflation. This was accomplished by continuous currency inflation. The State was willing to go along with this because all State bureaucracies grow by 6% a year. (Parkinson's Law). The State is primarily worried about STATE finance.
So, we got 6% a year currency inflation and, (reportedly) 2% price inflation. The 2% price inflation was baked-in-the-cake by statute and law.
Wage inflation WAS not baked into any cake. We must have excess income to provide the savings that banks use to invest in the stock market. Income and savings fell. The money renters were handed $trillions to keep speculation (not investment) going. The banks were handed a few $ trillion in excess reserves. ALL of this hot money floating around caused price inflation. Consumption and defaults rose. CBs worldwide created about $250 trillion in additional liquidity. $27 trillion was pumped into American markets. REPOs are running as high as $1 trillion a week.

The stock market is rising because of hot money pumped in. The rise has nothing to do with earnings.

[BroMikey]

Bro Mikey, we can write counterpoints to each other. You can be the good cop. I'll be the bad cop.

Consider these basic numbers:

In the 36 years from the end of World War II to Ronald Reagan’s inauguration in January 1981, the median compensation for American workers almost doubled; it went up about 100 percent. Meanwhile, the return on the S&P 500 over that period (with dividends reinvested) was 700 percent.

In the 39 years since, the median compensation of workers has inched upwards perhaps 30 percent. But during this time the S&P has gone up over 2,100 percent — that is, three times what it did in the decades after World War II."



After decades of attacks on unions, the U.S. has started to experience this dynamic. Corporate America has become ruthlessly successful at holding down the compensation of their workers and using the money saved for their own luscious, luscious profits.

Hi Danny, I am not well schooled in economics, however for the last 50 years of my life during my working years I watched Detroit's auto industry get smashed. Year after year a downward spiral til hardly any blue collar jobs left. So I say to you that first you have to have a job before you start worrying about who is getting the most.

Trump has created 1/2 a million jobs or better in 3 years. I live in Kansas now but back home where I am from in the metro area I am hearing for the first time since the 80's that GM and other auto companies are back. They are starting to build up the industry once again. Of course this will take 5-10 years to get it back full force but at least in 40-50 years we are seeing the start of a reversal. No one else but Trump could do that or would do this. The rest were bought and paid for errand boys. Traitor's. But the Trumplican.

Reagan got a bullet, Kennedy got a bullet for going against the flow, Daddy Bush was a trafficking drug lord who was finally executed for his treason. He tried to sacrifice his son or murder Jr. Clinton and Hillary are drug lords. Obama raised the debt by furthering the work of the previous presidents who are all scull and bones assets. The goal was and still is the destroy America. Not gonna happen.

[Danny B]

Bro Mikey, we can write counterpoints to each other. You can be the good cop. I'll be the bad cop.

"That’s not to say that great news for the stock market never matters for regular Americans. But when it does, it can be bad for most of us. The economic journalist Doug Henwood explains it straightforwardly: “The reason the stock market has done so well for all these years is precisely because the working class hasn’t.”

Consider these basic numbers:

In the 36 years from the end of World War II to Ronald Reagan’s inauguration in January 1981, the median compensation for American workers almost doubled; it went up about 100 percent. Meanwhile, the return on the S&P 500 over that period (with dividends reinvested) was 700 percent.

In the 39 years since, the median compensation of workers has inched upwards perhaps 30 percent. But during this time the S&P has gone up over 2,100 percent — that is, three times what it did in the decades after World War II."

“The rate of profit does not, like rent and wages, rise with the prosperity, and fall with the declension of society. On the contrary, it is naturally low in rich, and high in poor countries, and it is always highest in the countries which are going fastest to ruin.”

The significance of this for the stock market is that the value of a stock is, in theory, the value of its current and future cash flow — essentially the value of the company’s profits. But as Smith wrote, high corporate profits aren’t a good sign for the rest of us.
The straightforward one is that profits are partly a measure of the bargaining power between workers and stockholders. In poor countries, workers are poor and have less leverage, so they can’t get their share of the money, leaving more left over for their employers.

After decades of attacks on unions, the U.S. has started to experience this dynamic. Corporate America has become ruthlessly successful at holding down the compensation of their workers and using the money saved for their own luscious, luscious profits.
Another way to look at the value of stocks is the ratio of the total market capitalization of publicly traded companies to the U.S. gross domestic product. This rarely reached 100 percent until the last 1990s. Before current selloff, the stock market was reporting that America’s public corporations are worth 200 percent of the U.S. GDP, the highest level ever.
The good news is that, again, the stock market has little direct relation to the underlying economy.
https://theintercept.com/2020/03/06/...arket-economy/
YOU can celebrate the rise in the stock market. I won't.

Remember that Armstrong predicts a collapse of government finance.
"More than a decade ago, I began warning of the risks of an inflating “global government finance Bubble”. Policy makers had resorted to an unprecedented expansion of central bank Credit and sovereign debt to reflate global finance (and economies). And for years policymakers have administered near zero rates and egregious “money printing” operations to sustain history’s greatest Bubble, in the process extending a dangerous cycle. The unprecedented inflation of government finance has been alarming enough. Yet I worry most about this “infinite multiplier effect” and how leveraged speculation infiltrated all nooks and crannies – as well as the very foundation - of global finance."

As far as I’m concerned, the evidence is indisputable: We have been witnesses to history’s greatest – and most precarious – globalized Bubble.
For those assuming this is equities bullish, I would offer some caveats. The Fed will be initially hesitant to open the flood gates, one reason being fear of spooking the markets. I could see the FOMC boosting their QE operations to $100 billion monthly at their meeting on the 18th. If, as I suspect, this operation has minimal impact on overall marketplace liquidity, markets will really begin to fret central bank impotence. And I’ll assume the Fed is pressed at some point to raise monthly QE operations to, say, $200 billion.
Indeed, the entire notion of open-ended QE and fiscal deficits creates acute market uncertainty. How does this melt-up in Treasury prices impact “carry trade” speculation in corporate Credit? The odds of the dreadful global “seizing up” scenario are rising. The Modern-Day Bank Run.
http://creditbubblebulletin.blogspot...-bank-run.html

The EU is in worse shape trying to maintain the status quo in the face of widespread change.
https://www.goldmoney.com/research/g...rus-end-the-eu
Jim Rickards, "The Fed is therefore trapped in a conundrum that it can’t escape. It needs to rate hikes to prepare for recession, but lower rates to avoid recession. It’s obviously chosen the latter option."
https://dailyreckoning.com/heading-i...nterest-rates/
3/06 Supply shock and a demand shock coming up – Mish
3/07 Investors see Treasuries tumbling to zero as the Fed fights coronavirus – LA Times
3/07 Wall Street is on notice: the rout isn’t going away – Bloomberg
3/07 Pandemic pandemania causes global economic crisis – Great Recession

HE 4,000 POINT FALL IN THE DOW IS THE MERE BEGINNING


The 14% fall in the Dow last week and similar in many markets around the world is the mere beginning. I warned investors about this stock collapse in recent weeks. In my article on Jan 26, I wrote “Stock Collapse and Gold Surge Imminent” and again on Feb 9, I said “The Crisis will Propel Gold and Sink Stocks”. We have last week seen the beginning of the stock collapse with a 4,000 point fall in the Dow. The gold surge is still to come.
So the coming economic downturn will see all bubble assets like stocks, bonds and property decline at least 90% in real terms. But although markets might bottom within say the next 5 years, the world economy might go along the bottom for a very long time, which could be decades. As always, historians will let the world know afterwards the extent of the coming downturn.
The EU is all but dead now.
https://www.goldmoney.com/research/g...rus-end-the-eu

[BroMikey]

Dow Jones steady climbing in the last 3 to 4 years since Trump came down the escalator. See chart.
Coronavirus dimishing already dropping fast buy stock now market will soar to record high's 40G's

https://www.reuters.com/article/us-h...-idUSKBN20S02J

China’s coronavirus epidemic, will likely see new infections drop to zero by the end of this month

giphy.gif




dow-jones-5y.png

[BroMikey]

Coronavirus gonna git ya

6min of Sean H.

[Danny B]

Travel OR lockdown, that is the big question.


China and Italy locked down. It seems to be a postponement rather than a fix.
Waking Times is pushing the fear button on lockdown.
https://www.naturalnews.com/2020-03-...rtial-law.html
https://www.naturalnews.com/2020-03-...ail-roads.html
Paper shortage.
https://www.reuters.com/article/us-h...ource=facebook
Alternative.
https://www.youtube.com/watch?v=juilRGZXLwM
Armstrong;
"The power went out where my bank was for about a week. Without power, it became a cash-only society very fast if not instantly. There are two risks to digital currency: cyberattacks and power failures."
"Moving to electronic currency may be a desperate attempt to save socialism, but it would also open the door to sophisticated cyber attacks to undermine that economy."

"The EU held an emergency meeting in Brussels today regarding actions required in order to tackle the coronavirus. Meanwhile, the German health minister has ruled out the possible prevention of travel within the EU to curb the coronavirus.
Iran has stated they could be subjected to using force to stop travel due to the global pandemic."

"China’s economy could be contracting this year for the first time since the 70s, according to analysts, as the country grinds to a halt due to the coronavirus. The Caixin purchasing managers index dropped drastically to 26.5 from 51.6," "The EU-India summit, which was scheduled for the 13th of March in Brussels, has been put on hold due to the spread of the coronavirus."
OK, when do they stop all meetings in Brussels?

The Central Bank "put" removed all risk and moral hazard. The coronavirus is bring them back.
https://www.zerohedge.com/markets/de...xogenous-shock
Big world changes were on theri way before the pandemic. Now, they are accelerating.
https://capitalistexploits.at/these-...lobal-markets/

Zero Hedge;
With VIX Hitting 50, The Fed Must Now Step In Or A Catastrophic Crash Is Inevitable
Carnage: Credit, Crude, & The Yield Curve Crushed As Fed Admits "Credibility Eroding"
Boston Fed's Rosengren Says Fed May Soon Have To Buy Stocks
The BOJ already bought 70% of exchange traded funds. The FED can just buy up everything.
Bank Of America: "We Are In A Global Recession"





Officials Resist "Disruptive And Costly" School Closures Over Coronavirus
"Today Will Be A Regretful Day" - Oil Prices Have Collapsed After OPEC+ Talks End Without A Deal
"...the draft communique read like divorce papers."

HI And MD both declare state of emergency as US CV infections explode to 226 - An Air
Traffic lockdown Will Likely Be coming soon Pandemic projection model shows 2.16 million deaths in US by July 4th if nothing Is done to halt nearly all domestic travel
Seattle Post Front Page Asks If Seattle Should Should Try A Total City Lockdown Like Wuhan!

[BroMikey]

The Dow Jones looks good but I can't get my parts from China now for 2 weeks with delays I am losing money.To Bad how sad. I need China to get a sensor.

[BroMikey]

9e7db2359823e21cb0e415703277bcb8.png

[Danny B]

You're just going along for the ride

It is predictable but, people are price gouging anywhere that they can. I found a facebook ad for $100 for a pack of toilet paper.
$300 for 2 bottles of hand sanitizer.
https://www.youtube.com/watch?v=iP1uYl6XP8U
This, in turn causes more people to hoard stuff.
This is a repost of a link to a vid where a doctor talks about great success at preventing contraction of CoVID 19 with mega doses of vitamin C.
https://www.youtube.com/watch?v=6-el...ature=youtu.be
$27 for 1 kilo of ascorbic acid.
https://www.amazon.com/BulkSupplemen.../dp/B00AYIM9Y8

Sad but, predictable
3/06 Demand for Fed’s repos exceeds $100 billion a day as interest rates plunge – GATA
3/06 ‘Almost without precedent’: airlines hit hard by coronavirus – NY Times
3/06 Gundlach warns of “seizure in the corporate bond market”, soaring gold – ZH
The corporate bond market is a cadaver just waiting to keel over. This, in turn, will cause more disruptions in the supply chain. The supply chains were suffering from a lack of consumption. Now, they are also suffering from a lack of productivity. A lack of capital will only make it worse.

3/06 Another half-point Fed cut priced in – Mish
3/06 Very deflationary outcome has begun: blame the Fed – Mish
The FED juiced the markets to keep the money-renters in business. As price inflation galloped away from wage inflation, consumption fell. Money printing was expected to keep everything going even though actual consumption was crashing.

PPT In Da House? Stocks Suddenly Explode Higher As Gold Plunges
'Bloomberg Could Have Given Every American $1Million' - Liberal Media Math Exposed In Stunning Interview
Oil Crashes After Reports OPEC+ Talsk End Without A Deal
US Stocks Crash Into Red On Week, Treasury Yields Are Utterly Collapsing
Gundlach Was Right - Even Investment Grade Credit Markets Are Crashing Today

Stock Market Liquidation Will Continue Until The Fed Does A 75bps Emergency Rate-Cut






...the Fed needs to steepen the curve to stop Japanese and European banks selling to primary dealers and crushing liquidity...

"We Have Never Seen This Before": The Last Time The Market Did This, FDR Confiscated All The Gold
"Unparalleled Disruption": 290 Million Students Around The World Face Weeks At Home
Minimum-Wage Blowback - Fast Food Burger-Flipping Robot Works For $3 An Hour
"Super Puke" - US Stocks Crash As Credit Markets & Yields Collapse
"We Don't Know What's Going On": Wall Street Admits It Is Clueless
"The Lights Are On But No One's Working": How China Is Faking A Coronavirus Recovery

[Danny B]

Mikey, here is an article that you will like.
https://www.zerohedge.com/health/six...ils-sniff-test
You MUST read the comments. That is where you get the best information.
The article talks about the whole thing being staged. It speculates about why this was done. It is (of course) up to you to decide where the truth may be.
Here is the most interesting thing that i found in the comments.
https://www.youtube.com/watch?v=6-el...ature=youtu.be

The doctor points out that Vitamin C produces hydrogen peroxide.
"Hydrogen peroxide can kill viruses and bacteria, and it’s been used for generations to sterilize wounds and help them heal faster. But a new study published in the journal Nature shows that the substance may also serve as a Pied Piper for white blood cells, summoning them to the site of a wound to promote healing.

Damaged tissue hails a variety of cells to defend the body from infectious agents; one type is white blood cells, which kill by initiating a “respiratory burst,” which releases highly reactive antimicrobial molecules, including hydrogen peroxide produced by the body itself"
https://www.discovermagazine.com/hea...ells-to-wounds.

I searched on "does hydrogen peroxide kill coronavirus in the body?"
Not one mention of this.
Hydrogen peroxide has long been touted to cure cancer. The jury is still,out.
https://www.nature.com/articles/182892a0
Nature, "39 mins ago - The coronavirus outbreak has spread to 46 countries other than China — and now seems to ... and it seems that the rate of new infections is declining in China."
3/05 China coronavirus infections spike in central city of Wuhan – Reuters
https://www.naturalnews.com/2020-03-...don-smith.html
https://www.scmp.com/news/china/soci...-139-new-cases
The whole aim of practical politics is to keep the populace alarmed (and hence clamorous to be led to safety) by menacing it with an endless series of hobgoblins, all of them imaginary.”

~ H. L. Mencken

[BroMikey]

Congress eyes $6 billion to $8 billion to combat coronavirus

By Jordain Carney - 02/27/20 10:08 PM EST 896


Lawmakers are discussing a spending package that would provide between $6 billion to $8 billion to combat the coronavirus, a source familiar with the talks confirmed to The Hill.
The zeroing in on the higher spending range comes as negotiators want to finalize a deal by early next week, which would allow for the spending package to go to the House floor for a vote shortly thereafter.

Congress has approximately 10 working days before it is set to leave for a weeklong recess, giving lawmakers a tight timeframe if they are going to finalize a deal, get it passed by both chambers and get it to President Trump's desk before leaving town.

The spending levels under discussion are double to triple the initial $2.5 billion requested by the White House. That request included $1.25 billion in new funding. The rest would be taken from existing health programs, including $535 million from fighting Ebola.
Senate Appropriations Committee Chairman Richard Shelby (R-Ala.) indicated on Thursday that the final figure would be "much higher" than the $2.5 billion initially requested by the White House.

He also indicated that it would be more than $4 billion but that they were "not interested" in going as high as the $8.5 billion, an amount initially requested by Senate Minority Leader Charles Schumer (D-N.Y.).


"We want to make sure if this stuff really spreads that we're doing our job," Shelby said.

Shelby, House Chairwoman Nita Lowey (D-N.Y.) and their staffs have been working behind the scenes to try to get a deal on combating the disease.
The source familiar with the talks added that while the range discussed was between $6 billion and $8 billion, negotiators are looking at the higher end of that range.

The bill, according to Shelby, is being drafted to include a "clawback" option if the agencies ended up not needing the money, as well providing agencies with flexibility on spending the funds.

The movement toward a higher spending figure comes after Republicans, including Shelby and House Minority Leader Kevin McCarthy (R-Calif.), indicated they thought the White House's request was too low.

Trump said during a press conference on Wednesday that he would largely defer the final figure to lawmakers.

"Congress is talking to us about funding, and we're getting far more than what we asked for. And, I guess, the best thing to do is take it. We'll take it," he said.