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  • Can't afford rent,, live in your van

    The FED claims that there is no price inflation. They took all the items that have had a drop in price and lumped them with all the items that have had a rise in price and , Voila!,,, no price inflation. But, the rise in rent and the drop in home ownership has resulted in enormous increases in the cost of housing . Home ownership for those under 65 is the lowest in history. The Mystery Of The "Missing Inflation" Solved, And Why The US Housing Crisis Is About To Get Much Worse | Zero Hedge
    GOV pumped money into housing and it became unaffordable.
    GOV pumped money into education and the cost of an education rose at 3 times the rate of general price inflation. The FED creates "money", but has no control of where it flows. Consumption is way down. The morons in the Eccles building think that they can create a wage-price spiral to bring back consumption.
    March 2015 is the date that America definitively lost control of the financial world. Jesse's Café Américain: A Currency War That Few Economists and Analysts Notice, Much Less Understand


    • Downsizing houses

      Post WW II, America had 50% of the manufacturing capacity and 3% of the population. We had a lock on the main value-added industry. Since WW II, the size of the average house has doubled. Not a big surprise. We are now back-sliding on wages to where we were a few decades ago. There are lots of big houses for sale and it takes a lot of energy to heat / cool them. Investors have bought up tons of them with the hot money from the FED.
      Existing home sales down 4.8%, decline more than expected Mish
      Investors bet on housing again (just in time for another implosion?) Elliott Wave
      Housing starts in US fall in sign of slow, steady recovery Bloomberg ???
      Mortgage applications plunge 7% ahead of Fed decision CNBC
      US existing home sales fall more than expected CNBC
      The rent crisis is about to get a lot worse Bloomberg
      I can't leave out the N.Y Times; Improving housing market bolsters Lennar's bottom line New York Times
      Kunstler has his own observations; Fed Cred Dead | KUNSTLER
      House size is just one more thing that will have to adjust to lower wages.


      • money is money but, liquidity is sentiment

        Money is created as debt. This is leveraged up to an even bigger pile of debt. Page 7 of this pdf shows just how high debt has grown. It is WAY past the level of the tech bubble.
        Liquidity is loosely defined as; when you try to sell something,,, how difficult is it to find a buyer? The more difficult it is to find a buyer, the more likely it is that you are going to have to accept a discount / loss. To sell in a bubble, you must find a greater fool. The internet is making it increasingly difficult to find foolish investors. That is why GOV is buying so many bonds and securities. Not enough fools. They play with free money.
        This works for a while but, it encourages mal-investment. Mal-investment is minimal in free markets because they tend to punish fools in short order. China is much like a communist command economy where everything is dictated from a central GOV. The free market would never have allowed ghost cities to be built. What is the result?
        9/23 The story of China is the story of Japan... just 10x bigger Seeking Alpha
        Bankers buy politicians. Politicians make laws that prevent bankers from failing. The pent up mal-investment is held back until it crashes the system. Instead of little corrective losses here and there, there is one big corrective loss. That was the fate of the U.S.S.R.
        The current financial system in the West is there to protect the bankers from loss. It is socialism for the rich. When the dam breaks, there will be no buyers for inflated instruments.


        • .25%

          It was interesting to read that corporations that did stock buybacks had a better return on investment than corporations that did not do buybacks. How much better? .25% better. So stock buybacks to artificially levitate stock prices would certainly discontinue if the FED were to raise rates the dreaded .25%.


          • Downshifting to poverty

            Search engines have made it about 5 orders of magnitude easier to find information. Computers have made ancient history very accessible. There are a lot more people in the know about a given subject. This makes it much harder to control people.
            "Citi's Matt King (who, as a reminder, is the person whose "Are the Brokers Broken" report issued in the first week of September 2008 was, according to many, one of the catalysts for Lehman's failure simply by explaining to a largely clueless Wall Street just how broken the US financial system had become in late 2008"
            One man's explanation that illuminated a big problem caused a giant result.
            The battleship, "Maine" was blow up in Havana harbor and we got a new war. Strangely enough, ALL officers were ashore. The false flags like Pearl Harbor and Gulf Of Tonkin have been experiencing a shorter and shorter "window of legitimacy". Weapons of mass destruction didn't last very long. More recent efforts at manipulating public opinion to justify more laws or more wars are of increasingly short life.

            The same is happening with economic BS from the district of corruption. Treasury bonds are paid back from the labors of the working class. GOV lies about unemployment to make it appear that plenty of people are working to pay back bonds. The lies must continue to be believed or confidence could possibly be lost. We can't have any large bumps in the road.
            "Congress has five legislative days left before the fiscal year ends. On Oct. 1. If no action is taken, funding will run out for non-essential agencies and personnel. Republican House Speaker John Boehner has yet to articulate a plan."
            Wedge Becomes a Hammer: Republicans Firm on Govt Shutdown Over Planned Parenthood Funding
            I could give them a HUGE list of non-essential personnel in GOV,,, just ask me.

            The article from Matt King was a major catalyst pushing the 2007-8 crash. Armstrong was thrown in prison for 7 years just because the bankers sicced GOV on him. You can bet that he is NOT happy about losing 7 years of his life. A lot of important people listen to him. In the 2008 crash, the Chinese asked him to come over and advise them. They asked NOBODY else. Is Armstrong getting his revenge with his gloomy prognosis? It is MOST gloomy.
            "This is a peak in GOVERNMENT. This is not even a Kondratieff Wave based upon commodities. This is the 309.6-year cycle in government and, unfortunately, the other side of 2015.75 is not looking very pretty. This not about just the collapse of Europe, this is the collapse of Western forms of government "
            "This will be the most difficult period ahead to forecast, so pay attention. We are entering a period of chaos that BEGINS with 2015.75; it does not end there with some crash. THIS IS THE BEGINNING, not the END."
            Yep, pretty gloomy.
            Great Depression I "There was NO SINGLE INVESTMENT left standing ABSOLUTELY NOTHING. So while the charlatans will try to sell you newsletters with promises of making you 20,000%, keep in mind this is a period of survival we are entering, not wild speculation. If you do not understand the nature of the beast, the beast will have you for lunch."
            " As for those who write in, asking which investment will be safe the answer is NONE."
            Bubble Bubble, Where Is the Bubble? | Armstrong Economics
            Yep, he sounds pretty negative.

            So, what happens if GOV collapses. A collapse of GOV bonds and a credit collapse would mean that GOV would NOT be able to do international clearing. Imports and export would stop. THAT would get ugly. The Daily Bell - Hugo Salinas Price on Gold and the Potential for '500 Years of Darkness'
            America lost it's lock on manufacturing. NOBODY wants to downshift their standard of living. China transferred about 350 million self-sufficient peasants off the farm and into the work force. They now find that they can't keep them all busy. One of the largest manufacturers in China just bought 500,000 robots. The workers don't want to return to being peasants. The natives are getting VERY restless.
            China Cannot Let This Happen
            Last edited by Danny B; 09-24-2015, 07:39 PM. Reason: smelllling


            • Deutsche Bank and galloping contagion

              The rumor is out in the open. Deutsche Bank is crashing. "The potential financial chaos to the other side of 2015.75 is just mind numbing. Since Germany has been regarded as the primary driving force holding the euro and Europe together" "We are not talking about Greece here. The structure of the euro undermined the entire banking system of Europe far more profoundly than in the United States, where reserves are only in U.S. federal debt, not the debt of all member 50 states. This is the major difference between European banking and U.S. banking."
              Deutsche Bank – the New Lehman Brothers? | Armstrong Economics
              OK, so U.S. FED GOV can crash and the States can ( maybe) stay at a distance.
              What is the big deal about D.Bank ? "Deutsche Bank's $75 Trillion In Derivatives Is 20 Times Greater Than German GDP"
              It appears that total desperation time is not far off. There is a solution waiting in the wings but, dunno if it would work;
              Money creation is no longer working to create wealth. Your Complete Guide To A World In Which The Fed Is No Longer In Control | Zero Hedge
              Armstrong used the term " mind numbing". Now is NOT the time to have a numb mind.


              • helicopter money

                Haven't they tried "helicopter money" in the US already? Or would that be something totally different?

                In 2008 we had the Bush tax credit of $600 per taxpayer or roughly $51 billion in give away money. I think it would of been better to have gotten 100 times that and given every taxpayer $60,000 at a cost of $5.1 trillion. Stipulations that it must be used to pay down debt or buy US bonds would have allowed everyone to pay down inflated home/car/whatever loan prices in which the FED could of started to raise interest rates to put a lid on re-inflation.


                • public banking

                  Ruphus, "given every taxpayer $60,000 at a cost of $5.1 trillion." What cost? The money is just digitally created. There are different versions of helicopter money. Corbyn’s economic policy agenda backed by leading hedge fund tycoon — RT UK
                  This process would sidestep the banks. You can bet that they don't want that.
                  Ford and Edison; "Objecting to the fact that the Government planned, as usual, to raise the money by issuing bonds which would be bought by the banking and non-banking sector which would then have to be paid back with money raised from taxes, and with interest added they proposed instead that the Government simply create the currency it required and spend it into society through this public project."
                  " People who will not turn a shovelful of dirt nor contribute a pound of material will collect more money from the United States than will the people who supply the material and do the work."
                  "If our nation can issue a dollar bond, it can issue a dollar bill. The element that makes the bond good makes the bill good. The difference between the bond and the bill is that the bond lets the money brokers collect twice the amount of the bond and an additional 20 per cent, "
                  Alistair McConnachie Prosperity Thomas Edison debt free money | Prosperity UK
                  This all sounds real good but, what limitation is there on money creation. The public bank of North Dakota has been VERY responsible at it's job. They do not allow any loan to be created unless an income stream has been dedicated to the repayment. They have had FAR better returns than the banks in New York. The N.Y. banks are in the banking business, ONLY. The N.D. GOV is in the GOV business and doesn't have to make any kind of huge profit on the banking sector.


                  • Days of rage,,, big business

                    Decades ago, when there was a bank failure, the bankers were sometimes hauled out of their houses and hung from lamp posts. We are MUCH more civilized than that nowadays. BUT, it is said that 9 meals are the only thing separating us from anarchy. We'll see.
                    There is very good reasoning to show that BIG business is not as efficient as small business in several respects.
                    Here is something from Ambrose where he has his head completely up his culo..
                    Deflation supercyle is over as world runs out of workers - Telegraph
                    He says that the world has a shortage of workers. NO, it has a shortage of jobs. Unemployment is 23% in America and up to 50% for some sectors in Europe. The guy is normally smart but, completely clueless here.
                    HP layoffs to exceed 55,000 people - Business Insider
                    HP Dumps 30000 Jobs, But Still Cranking Up H1B Guest ...
                    404 Not Found...
                    Sep 16, 2015 - Hewlett-Packard Company was ranked 30 among all visa sponsors. Breitbart News reported in February that the Obama administration just ...
                    Hewlett-Packard - The 8 biggest job-killing companies ...


                    • Cutoff of foreign credit

                      Armstrong says that we are soon to see a collapse of U.S. Treasury bonds. These bonds are what we use to pay for imports. Jim Willie says that we will see refusal from trading partners. Jim Willie: Fascism & Gold |
                      Y'all better buy a spare set of tires for your car.


                      • Sliding from ZIRP to NIRP

                        The economy is dying for lack of consumption. We have reached "peak debt" and are debt saturated. Industry is NOT spending money for expansion. They are sitting on their money on the sidelines. GOV is trying to force this money into the economy. GOV drove interest rates to zero (ZIRP) hoping to force investors to search for return,,, hoping to drive money out of the banks and into the economy. Earnings are close to impossible to gain. At this point; Cash beats stocks, bonds for first time in 25 years - MarketWatch
                        Cash is king when earnings are dead. ZIRP isn't bad enough for savers so, negative interest rates are coming. (NIRP).
                        The whole system is so distorted that nobody wants to invest; It's All `Perverted' Now as U.S. Swap Spreads Tumble Below Zero - Bloomberg Business
                        We are following Japan down the insane Keynesian road. "Japan - which, you're reminded, is the poster child for Keynesian insanity with a debt load that now totals 1,057,224,000,000,000"
                        Why US Rates Can Never Rise: In 1 Awkward Chart | Zero Hedge
                        OK, so we have to raise the debt ceiling in a few days. The democrats say that they have no motivation to work things out. SO, what exactly are they planning to do? The debt is astronomically high. EconoMonitor : EconoMonitor » United States Government Debt is in Uncharted Territory I guess we just have wait and see.

                        1993 Federal Reserve board open market committee meeting.,, Alan Greenspan; " Now, we don't have the legal right to sell gold"
                        There has been a lot of vacillating on who owns America's gold. I believe that it is the Treasury. Who gets the blame when it all comes up missing?


                        • Post 1001

                          There are lots of things that I could post showing the dis-solution of the economy. Maybe later. For now, just this; Debt Debt & more Debt 2015.75 | Armstrong Economics


                          • Evur

                            We already know the rumors coming from Iran concerning free energy from Keshe. Now, India wants to develop the Tewari device.
                            What about EVUR?
                            "As current economic cold facts support, 53% of every tax dollar today, goes to the military, with most of that spent on securing the critical oil "Choke Points" around the globe. Add those costs to the single largest factor in our balance of trade deficit, the cost of imported foreign oil and you have the reason we are the largest debtor nation in the history of mankind using a failed private central bank's, Petro/Dollar "reserve currency scheme" to disguise our current pathetic national insolvency with their worthless Treasury "Note", ludicrously propped up by a 100 year old retarded engine."
                            The props seem to be falling out. What comes next?


                            • Organized crime has brought us poverty

                              When asked why he robbed banks, Willie Sutton replied, "that's where the money is". Organized crime realized decades ago, that digital money would eventually take over. They had to build legitimate businesses. Brown-Ferris Industries is a good example of a company built with Mob money. Still, the lure of easy money from banks was always there. Decades ago, it was realized that the best way to rob a bank was to own a bank. The Savings and Loan crash is a perfect example. NOT perfect enough for the criminals. 1,000 people went to jail. Taxpayers shelled out $1 trillion.
                              The criminals perfected their game by buying more politicians. They reached a point where they could sack and pillage anything.
                              When John Corzine was a member of congress, he voted to the affirmative on a bill that made it a personal felony if the CFO did not know where all the money was. When M.F. Global blew up under his watch, he testified that he had no idea that anything was wrong and no idea where the money went.

                              The problem with erasing moral hazard is that criminals make bigger and bigger heists. This gutting of the economy has resulted in a country that has worse income distribution that some of the poorest countries in the world. "The distribution of income in the US is worse than in Afghanistan, Albania, Algeria,,,,,,, Nigeria, Uganda and about 30 others.

                              Fact 1:
                              A recent study revealed that 40 percent of Americans have $ 500 or less in savings.
                              Fact 2:
                              Another study found out that 28 percent of all Americans do not have a single cent of savings in case of emergency.
                              Fact 3:
                              Nearly 10 million US households dont even have a bank account. That is one million more compared to 2009.
                              Fact 4:
                              Since the last recession, the number of homeless families rose by 23 percent in Washington DC which used to be one of the richest regions in the country.
                              Fact 5:
                              The number of Americans living in poverty rose in the last four years to 6 million people.
                              Read more: Smoke and Mirrors: Numerous Facts Prove US is Sinking in Poverty
                              GOV wanted to make the STATE your only God. GOV worked to destroy the family. With the family destroyed, traditional old-age support has been destroyed. Nobody has any savings. "28 percent of all Americans do not have a single cent of savings in case of emergency."
                              That is about 85 million people. GOV promoted itself as the "ultimate security blanket" but, now it can't pay.


                              • Stalling around, hoping to save the system

                                The system is rigged to profit the criminals. Everybody sees it crashing and now, confidence is lost. There is much talk about reforming the system but, It is far too late.
                                9/28 Will Fed and central bankers give up alchemy to save the world? Talk Markets Give up power, not likely
                                9/28 "The liquidity of everything is being taken down" Zero Hedge Yep, nobody will buy anything.
                                9/28 Wall Street braces for grim earnings season Fortune Ah, yeah. Cash has done as well as stocks and bonds.
                                9/28 New policies needed to prevent a 'third wave' of crisis South China Morning Post The time for new policies was decades ago. China copied all the Western institutions and now,,,, has all the Western disease.
                                As Armstrong emphasizes, it all runs on confidence. FOURTH TURNING: CRISIS OF TRUST ? PART 3 The Burning Platform

                                And then, there are the people who just don't get it. "James Turk: Next Collapse Wont Be a Market Collapse, It Will Be a Dollar Collapse & Hyperinflation!" James Turk: Next Collapse Won't Be a Market Collapse, It Will Be a Dollar Collapse & Hyperinflation! |
                                The dollar is getting stronger and stronger. This is a big part of what is hurting the economy. It will not be a collapse of the dollar. It will be a collapse of GOV. There will be NO hyperinflation.
                                The Council on Foreign Relations that has so much influence and has brought so MANY criminals to power has fielded a proposal that the FED credit every bank account with $ 80,000,,, or some similar amount.
                                Though virtually unknown to the public, the council dominates the Cabinets of both Democrat and Republican presidents, the narrator explains. Since its founding in 1921, the CFR has produced 21 secretaries of war and defense, 19 treasury secretaries, 18 secretaries of state, and 16 CIA directors. ShadowRing Exposes Globalist Agenda
                                If the CFR is proposing a measure that would side-step the banks, you know that the power brokers are seriously worried.
                                They would indeed get their hyperinflation if they gave everybody $ 80k. We are going into a total credit lockup. The only exit is a new dollar or a direct cash infusion. The criminals in charge will try to muddle through and stall. When the debt dam breaks loose, there won't be any possibility of saving the system.