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  • The biggest party is about to kick off

    Mankind moved from the agrarian society to the industrial society. He no longer has much of a niche in the industrial society. Maduro told the Venezuelans that they better start growing their own food. If a society / economy is not inclusive enough, it will fail. No society can survive massive revolt and widespread death and destruction. A modern economy is built on credit and trust. Division-of-labor depends on honest money. Trust is essential.
    Western man is NOT in a good position to revert to an agrarian lifestyle.

    Argentina was the last big economy completely looted by rapacious bankers. They have struck in Portugal, Spain, Ireland and Italy. They are lining up to steal everything in Greece. The Looting Stage of Capitalism: Germany’s Assault on the IMF

    America is coming up on the hit list of the bankers.
    "Since October 1, 2011, the S&P 500 has risen 82% on the heels of a 0.75% decline in earnings."
    "The U.S. Energy Industry has added so much debt that it took nearly half of all its operating profits to just pay the interest on its debt in 2015:" "the U.S. Energy Sector paid 86% of its total profits just to service the interest on its debt."
    " This is nearly a 10% decline in U.S. oil production in less than a year." "While $5.1 billion of U.S. energy debt matures this year, $25.1 billion will mature in 2017."
    Armstrong, "But I realize that government is like water in a bathtub. There will be no place to hide. History teaches us that. So the question becomes, how fast will this be over? I follow our models. Once the plug is pulled, everything will go down the drain very rapidly. We spend tens of millions of dollars recreating the world monetary system to answer the question: how fast do governments die?"
    "So while Rome lasted over 1,000 years, its monetary system collapsed in just 8.6 years. That was without internet, radio, or TV for communication."

    "Japanese Prime Minister Shinzo Abe warned his Group of Seven counterparts today that the world may be on the brink of a global financial crisis on the scale of Lehman Brothers."
    "The Japanese Prime Minister Shinzo Abe failed in his attempt to have the G7 leaders warn of the risk of a global economic crisis "
    That's GOV for you,,,, keep on pretending. Global Financial Crisis Coming - Japan Warns of "Lehman-Scale" Crisis At G7

    5/27 Yellen: interest rate rise coming “in months” – MarketWatch


    • The 3% down mortgage

      As I stated a few posts before....

      Wells Fargo Reintroduces 3% Down Mortgages | Zero Hedge


      • Systemic collapse and killing the competition

        David Stockman was a budget director and he really knows his numbers. The FED is hard at work trying to create 2% inflation. 5/29 China thinks the US will default via inflation – Birch Gold That is plan "A". The FED gooses all the numbers to show that inflation is lower than they want. Stockman re-calculates inflation using realistic metrics and shows that inflation is far higher than the FED claims; Losing Ground In Flyover America, Part 1 | David Stockman's Contra Corner
        5/28 Deflation is a direct result of our attempts to create inflation through easy money – FRA
        5/28 Earnings fall at fastest rate since the Great Recession – MarketWatch
        The producing economy is deflating while the finance sector is inflating.

        The BLS must continue all the happy talk about how low the unemployment rate is. Growing automation is making that ever-more difficult;
        So, what about wages? 5/29 Nobody has a job in 20% of all US families – Most Important News
        5/28 Nearly 50% of recent college graduates overqualified for their jobs – My Budget 360

        The stock market is way up but, earnings are down. No reason to stay in stocks.
        " What happened in 2008 with the Lehman Brothers failure event is currently underway with almost every single financial platform, structural entity, financial market, banking structure, and arena"
        "the entire Western financial system has been lashed together, tied together, and connected among its many member parts. The main parts are the big banks, which use derivative contracts to lash themselves together. They believe there is strength in numbers, which is true to some extent. But the consequence turns out to be that all will fail at the same time in a cascade of insolvency marred by illiquidity while steeped in corruption and market rigging. The breakdown could be described as having begun in full force, in earnest power, at the start of this 2016 year. "

        " No nation will be spared from the urgent nasty effects of being forced to achieve trade balance." Our $ 1.5 billion a day trade deficit will come to an end.
        "One can combine the energy sector debt distress with the commodity derivative exposure, to see a systemic Lehman event on the near horizon. The many factors are lining up to force a systemic failure event, a massive financial crisis globally with numerous sectors in failure mode"
        "The USGovt, led by fascists and advocates of endless war, are working feverishly with war and sanctions and bank pressures and undermined coalitions and and contract bribery and heavy propaganda to prevent the unification via trade between Europe and Russia, and between Europe and Iran. "
        "It matches the attack and ruin of Fukushima by the Bush Crime Family, after Japan began work with China on a regional currency. "

        "As Ron Paul has stated, one cannot blame capitalism for the current failure, since we have had almost none! He can take credit for the independent audit conducted on the US Federal Reserve itself in 2009. From the audit, it was learned that $23 trillion in near zero cost loans were granted to the USFed owners, by the banker cabal to itself."
        The Next Systemic Lehman Event | Gold Eagle

        The poor people can't afford to pay off the world's debts so, the rich will have to do it. There is a problem in that many people of very modest means depend on income from pension and investment funds. That big aggregation of money will be at great risk when the cascade of default hits.

        ALL governments eventually default. In the interim, GOV rates GOV debt as the best in the land. Jim Willie, et al have written about the coming default of U.S. GOV. If you look at the numbers, it is obvious that it can't inflate away the pain of payback. U.S. GOV is hard at work to kill off all competitors, "The destruction of the European Union is a project well along. It began with the Russian sanctions after the US & Israel worked their magic in orchestrating and engineering a coup d'etat in Kiev Ukraine. " There is general agreement that capital will flee to the strongest economy / currency. Pox Americana hopes to benefit from crashing the Euro.

        The rationalizations are coming to the fore:
        "For a long time, I’ve advocated that the world’s governments should default on their debt" "There’s another reason government debt should be defaulted on: to punish the people stupid enough, or unethical enough, to lend governments the money they’ve used to do all the destructive things they do."
        " Not one currency in today’s world is backed by a commodity (like gold); they’re backed only by confidence (which can vanish like a pile of feathers in a hurricane). And, of course, the ability of governments to steal from the people. But the euro doesn’t even have that going for it. The European Union doesn’t have the power to tax. Right now, the Eurocrats in Brussels really only have the power to regulate. I’ve long said, “While the U.S. dollar is an ‘IOU nothing,’ the euro is a ‘who owes you nothing.’”

        So, I think the euro will reach its intrinsic value long before the dollar does. As it is, I’m short the euro, mainly via selling naked calls.
        Why The Euro Is A Doomed Currency | Gold Eagle


        • The fears of the self-styled elites

          "They’re geniuses. No doubt about it. That’s why they’re in charge and we’re not. They’re the elite. They run the Deep State. "
          "One of the endearing features of the ruling classes is their abiding faith in their own judgement. Despite inexhaustible evidence that they are bumbling incompetents, the power elite stick to their guns – literally – and to their cushy sinecures.

          We are now seven years into the “recovery” supposedly engineered by the PhDs at the Fed. At a cost variously estimated between $4 trillion and $10 trillion, we have now achieved a growth rate that is about half what it was 40 years ago – before the internet and debt-based money allegedly freed the economy from earthly tethers."
          "It is now 45 years since the PhDs took control of America’s money. Over those four and a half decades, how much financial progress do you think the average family has made? Approximately zero."
          "“How to defeat rightwing populism” is a headline in the Deep State newspaper of record, the Financial Times, written by Elitist-in-Chief, Martin Wolf. “How to protect the status quo” is his real challenge.

          He readily acknowledges the charges against him and other insiders: “[T]he greed, incompetence, and irresponsibility of elites.” This has “brought great populist rage,” he admits."
          "What if, he worries, because of the Deep State’s errors… what if the elite should lose control?

          Horrors! “In any country,” he writes, “embrace of the delusions of populism is disturbing.”
          Four Lost Decades: The Bumbling Incompetence Of The Power Elite | Zero Hedge

          "Juncker has a very long history of supporting financial elites and big banks as Prime Minister of the tax haven and financial speculation center of Luxembourg from 1995 to 2013.
          Simply put - Juncker is owned by the banks."
          His Wikipedia entry Jean-Claude Juncker - Wikipedia, the free encyclopedia
          "Farage continued, "but Mr Juncker said there can be no democratic choice against the European treaties, so there it is folks. It doesn't matter how you vote, which government you elect, these treaties are designed to be there forever and agreements by previous governments bind parliaments that come for years and years afterwards. And what it means is that the European project is in fact the very antithesis of the democratic principle"
          The EU is the enemy of democracy and if Greece stands firm, the free world will applaud them - UKIP

          The TTP and other agreements are an attempt to lock-in GOV deals that can't be negated by popular vote. This is simply a tug-of-war between fascism and socialism.
          “[T]he greed, incompetence, and irresponsibility of elites.” Focusing on incompetence, these self-styled elites have NOT taken into account automation and/or birth control. They are only catching on slowly to the fact that wind and solar power undercut the need for carbon energy. They wish us to be in the cities for better control. The collapse that they have engineered through incompetence will make the cities uninhabitable.
          They create a invasion of immigrants to break social cohesion. The only cities that will survive will be the ones with some degree of social cohesion.
          When Rome collapsed, the population fell from 1 million to just 25,000.
          If a city can't support agriculture, it can't support people.

          Their support for their cronies has placed grossly immoral people in control. The crash in morality will bring a crash in trust and commerce.

          "As the elites scramble to preserve their legal privileges, the productive middle class that defined early America is staggering under an ever-increasing burden of taxes, fees, and other legal disadvantages. More and more, productive people are driven into poverty and a despair that could easily turn into rage.
          The parallels between pre-Revolution France and today's America are clear."

          " And here's the thing: the real American majority – the silent American majority and even the dispossessed American majority -- which does not have proper representation in the elite will be somewhere between Trump and Sanders, but on the opposite side of Hillary, Rubio and Cruz. That is, the American society is simultaneously to the right of Trump and to the left of Sanders. This is the real America, American America, held hostage by the globalist liberal sects, possessed by the new world order and fulfilling the order not of the American majority, but the global financial elite."
          Alexander Dugin: America is Righter than Trump and Lefter than Sanders, Facing Revolution (VIDEO) - Fort Russ
          Last edited by Danny B; 05-29-2016, 09:47 PM. Reason: forgot the title


          • Asymetric financial warfare

            Hervé Falciani wanted a better world for his daughter so, he turned over information that implicated a LOT of people in financial scams. Recently, anonymous attacked the FED, "Anonymous" Hacks Federal Reserve; Grabs Stock Ownership files! "
            Reportedly, they have hit lots of targets; "Anonymous Hits New York Stock Exchange, World Bank, The Fed, And Vatican — Total Media Blackout"
            Anonymous Hits New York Stock Exchange, World Bank, The Fed, And Vatican — Total Media Blackout

            Education was cheap or free in Chile. The banks came in and financialized everything and made it VERY expensive. The result; "Artist named Fried Potatoes removed tuition contracts he says were worth up to $500m from private university and burned them "
            Chile students' debts go up in smoke | World news | The Guardian


            • Jubilee,,,, maybe

              The FED buys treasury bonds and gives the Treasury dollars. The FED now holds something over $ 4 trillion in Treasury bonds. Nobody is sure. It is recognized that the "people" can not possible pay back the FED. Essentially, the FED is left holding the bag.
              "Bill Gross just made headlines by explaining that Japan was bankrupt and its central bank would have to acquire the nation’s debt and then “forego repayment.”

              What billionaire Gross is talking about here is a debt jubilee. And we’re not surprised. We’ve predicted this after all. I’ve often said that Japan will be the first to fall."
              "Nearly a year ago, we launched our Shemitah analysis by predicting near-term market chaos. Markets promptly crashed late in August. Then at the beginning of 2016, we explained that the upcoming year was a historical “Jubilee” and that it would continue to worsen until the end day on October 2, 2016 – though larger Shemitah Trends would be ongoing."
              "Along the way we’ve taken note of statements about Jubilee 2016, including one from a top executive of the Bank for International Settlements, William White. Just a few months ago, in an explosive statement reported by the UK Telegraph, he said that world debt was impossible to pay down and that a debt jubilee would be necessary to give the world a fresh start."
              Billionaire Gross: Jubilee Debt Relief as Prelude to New Global Economic Order :: The Market Oracle ::

              "3. The Coming Debt Jubilee Could Send Bitcoin Easily above $10,000… Maybe $100,000… Maybe More

              Probably the biggest reason we will see bitcoin go exponential in the coming months and years is due to the coming debt jubilee. All Western governments are bankrupt and all Western banks are bankrupt.

              As this comes to a head and we have a crisis that makes 2008 look like a wonderful time we will see currencies collapse, banks collapse and potentially the entire financial and monetary systems collapse. It’s actually all been planned as we have shown in our Shemitah and Jubilee video series (see here)."

              Wealth management products are now investing in other WMPs It is critical to understand this.
              The risk of a default chain reaction is looming over the $3.6 trillion market for wealth management products in China.

              WMPs, which traditionally funneled money from Chinese individuals into assets from corporate bonds to stocks and derivatives, are now increasingly investing in each other. Such holdings may have swelled to as much as 2.6 trillion yuan ($396 billion) last year,

              This is only one of many chain reactions that will be set off at some point. There is no doubt that the debt will be defaulted on. We could see a somewhat orderly jubilee OR a disorderly cascade of default. The destruction and death from the former would be less than the destruction and death from the later.
              It's not just China, 5/30 Australia’s debt problem looks worse than China’s – Financial Review

              "in the good old days before the economy (and pension funds) became dependent on debt-fueled asset bubbles for their survival, pension fund managers expected an average annual return of 3.8%"
              "everyone who rode the great bubble of 1994 - 2000 (including pension funds) soon reckoned 10%+ annual returns on equities was The New Normal, so expecting 7.5% - 8% annual returns seemed downright prudent."
              Of Two Minds - Here's Why All Pension Funds Are Doomed, Doomed, Doomed


              • Jubilee, helicopter money, shemitah

                If you search on debt jubilee, there is a lot to read.
                "South Park tackled this a couple years back in the episode Margaritaville when Stan gets a credit card with no spending limit and pays off everyone’s debts. Then, amazingly, everyone is off spending again.

                Of course, this raises other issues, like why wages have stagnated for most Americans while consumer debt has risen. In many ways rather than creating a sustainable economy built around steadily rising middle and working class wages, we’ve built an unsustainable economy built on consumer debt. That debt has propelled the growth we’ve seen in recent years, acting as a sort of perpetual Keynesian injection into the economy. Now we’re paying the price.

                A debt forgiveness program is a great idea, but it won’t go far enough if we don’t find ways to breathe life back into real wages" Ah yes, wages. Our global competitors (and robots) have set the prevailing wage.
                Forbes Welcome

                There is lots more; Is This The Debt Jubilee? -
                Supposedly, Europe would be first in line. I would have thought that Japan would go first; Former BIS Chief Economist Warns of Massive Debt Defaults, Need for Debt Jubilee; Fingers Europe as First in Line | naked capitalism

                I was travelling in Mexico back in the 80s when they did a currency change overnight. All of the Mexicans lost three zeros. They can NOT announce it to anybody. Obviously, the people at the top are given a chance to get out of a currency before the devaluation.
                One percent of Americans is about 33 million. IF all of them knew about a jubilee ahead of time, they would all flee into precious metals, real estate and tangible stuff. This would price the 99% out of housing and food and other important stuff.
                A jubilees would have to be done in secret AND in conjunction with helicopter money. There is no way that a new currency could be distributed efficiently in a couple of days. Everyone would have their account credited with X amount of dollars overnight.
                CBs have injected $ 57 trillion into the economy with no effect for the producing sector. They know that they need a plan "B".
                Bill Gross has bet against the entire credit system.
                Socialism, the consumer economy and automation are crashing together like matter, anti-matter and poop.

                There are some credible claims that the "Shemitah" will play a part in this;


                • No middle class,,,, no bond service

                  Confidence is the only thing holding together what's left of our economy. The cheerleaders are ever-more hallucinating.
                  "Lonski of Moody’s said it’s premature to predict that the U.S. is heading into a recession because the labor market is still strong. "
                  The Debt Binge This Time—–The Corporate C-Suites Have Borrowed Trillions To Fund Financial Engineering, Not Growth | David Stockman's Contra Corner

                  "Indeed, the single most important number in today’s report is 102 million, which is the rounded sum of adults either not in the labor force or unemployed, and it amounts to 41% of the adult population."
                  September Jobs: Some Numbers Bubblevision Didn’t Mention | David Stockman's Contra Corner
                  "there are 110 million Americans living in households receiving means-tested benefits and 158 million in households that receive transfer payments of all types."
                  20 States have more people on the dole than they have people working.

                  6/01 GM sales plunge 18% in May, Ford down 5% – CNBC
                  6/01 Alan Greenspan: “We’re running to a state of disaster” – Zero Hedge
                  6/01 It costs $150 to buy a dozen eggs in Venezuela right now – LA Times
                  5/30 Sam Zell dumps holdings, warns “the Fed deferred reality for too long” – Zero Hedge
                  Japan has shown the world that no amount of stimulus in the financial sector will get households to spend,

                  The downward slide in wages for the Western world started in about 1970. Labor's share of GDP has fallen for several decades. The banks thought that this was great. BUT, as the rich took ever-more of the profits, they hoarded them rather than turning them over in the economy. The poor buy beans,,, the rich buy bonds. Bonds can only be repaid by the productivity and spending of the middle class. This has come crashing down.

                  The rich are creating financial instruments and "wealth products" that they have been selling to each other. There are no underlying tangibles to these wealth products so, when they are vaporized, there won't even be any smoke.


                  • Production depends on machines, consumption depends on people

                    When the Japanese economy began to fail, GOV spent tons of money on infrastructure projects to stimulate the economy. But, population was falling and no amount of stimulation could revive their economy.
                    China instituted a one-child policy and drastically cut back on population growth. China has spent tons of money on infrastructure projects.
                    “In recent years, China’s growth has come heavily from massive infrastructure investment; China poured more cement and concrete between 2011 and 2013 than the US did in the whole of the 20th century. This, too, is unsustainable."

                    "India's economy grew at 7.6% in the year ended March, making the South Asian giant the fastest-growing large economy in the world."
                    " India has overtaken China as the fastest growing major economy in the world"
                    India does not have a one-child policy.
                    The bitter truth is slowly starting to become obvious. An economy can't grow unless the population grows. Production and consumption go hand-in-hand. Blowing up goods and materials in endless wars to stimulate the economy is straight out of the Keynesian handbook. Importing raggedy-a$$ refugees to stimulate consumption is a losing game. You might stimulate consumption but, the destruction of social cohesion erases any possible gains. Import a passel of Pakistanis and Somalis and you end up with an economy like Pakistan and Somali.

                    China has ended their one-child policy but, won't see any effect for 20 years. Even then, the effect will be muted because the Chinese have gotten used to the idea of spending money on a better lifestyle rather than on a horde of kids.
                    The birth rate is falling in the developed world. Considering the overload of the environment, that is probably a good idea. The muslim world intends to conquer the Western world with the dick because they can't conquer it with the sword. The West is slowly waking up to this problem and will use famine to prune back the muslim world. Natural changes will prune back population in some States; 'Calamity is coming' as Pakistan struggles with climate change - Pakistan - DAWN.COM

                    The Western economies will collapse because credit growth has far outstripped population growth.

                    We voided the last vestige of the gold standard 45 years ago. That allowed unlimited currency expansion. That period (bubble) is coming to an end and will never come back. The high return on investment was paid for with funny-money.

                    6/03 Americans not in the labor force surge to record – Zero Hedge
                    6/03 ISM New York collapses to 7-year lows – Zero Hedge If we're not working, we can't afford manufactured goods.
                    6/03 Why your pension could be reduced to “virtually nothing” – Casey Research
                    6/03 Martin Wolf: Will there be another huge financial crisis? – Irish Times Huger
                    6/03 Greece continued implosion and Venezuela going Mad Max – FSN


                    • Support the people, OR

                      GOV more-or-less recognises the importance of people to the economy. It opened wide our southern border to bring in more people. It subsides a LOT of people.
                      "Welfare paid more than the average pre-tax first year wage for a teacher in 11 states, more than the starting wage for a secretary in 39 states, and more take-home money than an entry-level computer programmer in the three most generous states.
                      The pre-tax wage equivalent for welfare recipients exceeded the median salary in the state in eight states. (That is far from 35 states.)
                      In 35 states, welfare paid more than a minimum wage job, even after accounting for the Earned Income Tax Credit, and paid more than $15 per hour in 13 state.
                      51% of Americans receive a check from GOV and our unfunded liabilities amount to $ 212 trillion (Kotlikov).
                      There are economic pressures that demand a higher population growth.
                      There are fiscal pressures that demand a reduction in expenditures to support the population. There are environmental pressures that demand a lower population. The collapse of the credit bubble will mean that FAR less money is circulating in the economy. The collapse could possibly be managed to mitigate some of the worst effects. I don't trust GOV to do that.
                      Maduro told the Venezuelans to grow their own food. A serious collapse would mean that the cities are no longer viable.


                      • GOV has run out of both tools and money

                        After WW II, America had a huge economic surge and a baby boom. The baby boom has come and gone.
                        This is more-or-less true worldwide except for India.
                        "They" have manufactured a credit bubble to service debt that the shrinking (consumer) population can not service. This works for a while but, we gradually spend ourselves down. Our trade deficit is $ 45 billion a month. The same story is more-or-less true for Western Europe.
                        China has been doing vendor-financing. They don't want to rock the boat because they have a very shaky finance system. They have about 80 million empty buildings,,, 64 million empty housing units. The wages to buy all these buildings never appeared.
                        The whole world went on a debt binge. Then, the whole world discovered that nobody could pay off the debt. The Central banks pulled out their old, rusty toolbox of interest rate reductions. The tools no longer work with a falling population. BUT, this is the only toolbox they have.
                        ZIRP didn't do it so, NIRP is applied to the patient.
                        Both ZIRP and NIRP destroy capital.

                        Say's Law is immutable. When consumption falls, production eventually falls. The tools don't work so, they are applied even more vigorously.
                        oftwominds-Charles Hugh Smith: The Structure of Collapse: 2016-2019
                        Armstrong says that the U.S. dollar will be the last currency to fall. Dunno.
                        Boeing says that it will accept Euros for it's planes BUT, Russia is now building airliners.
                        The U.S. dollar was backed by gold. Later, it was claimed that the U.S. dollar was backed by the full faith and credit of the U.S. GOV. Still later, it was claimed that the U.S. dollar was backed by our manufacturing capacity. The dollar was actually "energised" by it's use for buying petroleum. That too, is fading. Socialism is very expensive.

                        LBJ kicked off modern socialism in the mid-60s with his "Great Society" program. 6 years later, gold was flowing out of the treasury at the rate of 100 tons a week. Nixon stemmed the flow but, was impeached by the London bankers when he burned them for 3700 tons of gold.
                        Socialism was later financed by our position as the reserve currency and the petro-currency. This is fading and there is nothing new on the horizon to subsidise socialism.
                        Many millions of Americans expect to be supported by the GOV. BUT, we have a GOV of the people, for the people and by the people. Not really but, that is the mantra. The people are broke.
                        GOV will print dollars until our trade partners refuse to accept them.


                        • Falling trade, falling employment, growing debt bubbles

                          Trade is lagging terribly and the economists blame it on a lack of demand. It didn't occur to them to blame it on a lack of jobs and earnings.

                          "Such extended weakness, then, as has been the case since the onset of the Great Recession means something more serious than a severe business cycle. Had the global economy continued to follow that prior baseline expansion, global trade would have been $30 trillion in 2015, not $22.4. That nearly $8 trillion shortfall explains a great deal as to why nothing works. And it only gets larger the longer this slump continues increasing the greatest cost there is, lost compounding: the baseline for 2017 jumps to $34.3 trillion while the OECD estimates trade will only total $23.6 trillion (and that forecast is typically optimistic, meaning that actual trade by the end of 2017 is very likely to be significantly less still). The world economy is therefore facing a fourteen digit trade gap.

                          "There is no currency war save one: the "dollar" is in a total war with itself, meaning everything will be a casualty at some point. The list of central banks falling victim grows bigger."

                          Indeed. Only now are we starting to figure the true economic costs of all that because the mainstream remains committed to the idea none of this is possible. To them, the world just needs a little more of the right kind of "stimulus", as if pumping the Hindenburg with more hydrogen would have gotten it safely to the ground after it had erupted in conflagration. The answer to great instability is not more of it, even if that "stimulus" were to actually be of the right type and category. The eurodollar system effectively ended on August 9, 2007, a fact the global economy only continues to confirm."
                          The Dollar Is In a Total War With Itself | RealClearMarkets
                          The world was built for that $34.3 trillion in trade"

                          China attempted to create / manage a command economy. Their market desires were severely out of line with world market demand. They went off the rails and there is no way back;

                          "There’s been a lot of talk lately about a growing bubble in the subprime auto loan market, and even student loans.

                          But the biggest subprime bubble of all is the negative interest loans being made to sovereign governments.
                          All over the world now there are governments that are issuing sovereign bonds with negative yields… and many of these governments are totally bankrupt.
                          Japan, with its debt level at more than 220% of GDP, is the latest entrant into the world of negative interest bonds.
                          Japan’s debt is so high, in fact, that it takes 41% of government tax revenue to service."
                          "At the peak of the housing bubble ten years ago, there was about $1.3 trillion worth of subprime mortgages in the financial system.
                          That $1.3 trillion bubble was enough to bring down several major banks and cause cascading damage across the global financial system.
                          Today’s bubble is EIGHT TIMES the size of the last one, with more than $10.4 trillion worth of government bonds that yield negative interest."
                          "So this gigantic sovereign bond bubble where governments are being paid to borrow money has practically doubled just in the last several months."
                          financial bubble - NIRP Hits 10 Trillion Dollars 8 Times Subprime
                          Keep in mind that all governments eventually default.

                          The Eurozone is going all-out on printing money. Trade has crashed; "When Britain joined the Common Market in 1973, the EU (as it is now) produced 38% of the world’s goods and services. In 1993, when the EU began, it produced just shy of 25%. Today it produces 17%. In a generation the EU’s global economic share has more than halved."

                          Read more: Dominic Frisby on Brexit: ‘Nothing will ever be possible again’ | WOW247
                          Trade fell because of global competitors. Simple and painful.


                          • Déjŕ vu wealth flowing into gold, Déjŕ vu, Déjŕ vu, Déjŕ vu,,, help, I'm stuck, Déjŕ

                            France had an empire but, the world grew too big for it to maintain it's position. England had an empire but, the world grew too big for England to maintain an empire. The Pound Sterling crashed as the reserve currency. After WW II, LONDON -New York conspired to make the U.S. dollar the reserve currency. After Bretton Woods concluded, the U.S. dollar was backed by gold and declared the world's reserve currency.
                            Triffin's dilemma states that; as the world grows richer there will be an ever-increasing demand for the reserve currency to be used as a storage of wealth.
                            The dollar was gold backed and this limited the issuance. The world outgrew the U.S. dollar as a store of wealth. The gold-backing was removed and issuance shot to the moon. This was especially advantageous to America because it could just print paper to pay for it's imports. Japan converted the profits from selling Toyotas into U.S. GOV bonds to store the wealth.
                            The world is just too rich and there is a big shortage of dollars. The world is out-growing the U.S. dollar. The dollar is at war with itself because there are just not enough and no other currency has the ability to absorb the huge (nominal) wealth.
                            Pox Americana doesn't want a return to the gold standard as a store of wealth because it would lose the ability to print confetti to buy everything.

                            JFK started printing U.S. notes backed by OUR 4 billion ounces of silver. The bankers bumped him off because they didn't / don't want any competitor for the FRN. They wanted unlimited currency expansion. We previously blockaded Japan (an act of war) and "staged" the SURPRISE attack at Pearl Harbor. The base commanded later testified to congress that "intelligence" knew when and where the attack would occur.
                            This was the same scenario that had worked so well the get America to go to war against Spain. (battleship Maine) , The Gulf of Tonkin, WMD here, there and everywhere.

                            It is a tried-and-true tactic that works very well. There is a lot of profit in war and the bankers wants it to go on forever. The 9/11 attack was rolled out for the same effect BUT, with a few added bonuses. Trash israel's competitors, the biggest bank robbery in history, the hidden liquefication of the $ 250 billion in bonds that were used to attack Russia, The unrolling of the police state, etc. The bankers are well motivated to incite (and finance) constant war. What about the people?

                            "Hermann Göring: Why, of course, the people don't want war. Why would some poor slob on a farm want to risk his life in a war when the best that he can get out of it is to come back to his farm in one piece? Naturally, the common people don't want war; neither in Russia nor in England nor in America, nor for that matter in Germany. That is understood. But, after all, it is the leaders of the country who determine the policy and it is always a simple matter to drag the people along, whether it is a democracy or a fascist dictatorship or a Parliament or a Communist dictatorship."

                            So, what can be expected when the leaders are under the control of the bankers? Churchill stated that WW II could have been avoided but, the bankers wanted it. So, the London Bankers brought death and destruction down on,,,London.
                            Do you think that the hildebest has thought it through as to what the results would be to her (neocon) actions against Russia?
                            ClubOrlov: A Russian Warning

                            Everywhere we look, we see the programs of the leaders at complete odds to what the common man wants.
                            Rense-10,000 Black Africans A Week Invade Italy
                            Do you think that the average Italian wants this? F***ing marvellous. The chastity belt is making a comeback to prevent rape. Invader Sex Attacks Spur “Rape Protector” -

                            The Bretton Woods agreement was meant to stop currency wars and the following shooting wars. The Marxists and the war-mongers managed to break the agreement. No reserve currency can ever be used in the long run as a transactional currency. Gold is not really a currency, it is a store of wealth. Judas was paid with 30 pieces of silver, NOT 2-3 pieces of gold.
                            A paper currency can never be a store of value.

                            The world demanded that pox American print a ton of dollars. One ton is just not enough. Because of momentum, the U.S. dollar is still the preferred currency. The blood-thirsty neo-cons have used the reserve status to trash the world. This is all the more reason to go back to a gold standard.
                            The morons in charge are completely clueless;
                            Greenspan, “a global problem of a shortage in productivity growth.” Feces-for-brains won't admit that wages and consumption are the problem. I guess that his ivory tower is just to lofty to see what is really going on. China is telling the Chinese people to stock up on gold. ALERT: Whistleblower Andrew Maguire Says China Just Put A Huge Floor Under The Gold Market | King World News

                            There is just too much nominal wealth in the world for it to crowd into tangibles. "There is no greater manifestation of the wealth divide in the UK than land ownership. 70% of land in the UK is owned by fewer than 6,000 people. Yet these people are not paying tax on the land they own, they are receiving subsidy for it." Imagine if it got worse?
                            I posted this link earlier. This site lists it as an "attack page"
                            Search on "Dominic Frisby on Brexit: ‘Nothing will ever be possible again’" Now, I've had a few links deemed to be attack pages.
                            The guy is a comedian,,, they can be especially brutal on politicians.

                            If the wealth can't squeeze into tangibles and bonds default, AND stocks are crashing because of a lack of consumption,,, it will try to squeeze into precious metals. GOV bonds will default because they always default. Gold is expected to reach $55,000 and ounce in today's purchasing power. (FOFOA)


                            • No interest, no hope, not interested

                              The FED was hoping for some kind of good news on employment. Instead, they got; "6/05 Americans not in the labor force soar to record 94.7 million" – Casey Research
                              This resulted in ; "6/05 Rate hike odds collapse; Fed’s Evans discusses “delays for years” – Mish
                              So, the FED is saying that; pension funds, hedge funds, insurance funds, et al can count on NO returns for many years. Also true for savers. $ 10.4 trillion in sovereign bonds are now negative interest. BUT, this number is growing rapidly. How can a person or fund sell an instrument that has no earnings? How can they sell an instrument that steadily devalues? If you can't sell it, what is it actually worth?
                              If these assets are no longer tradeable, what can you do with them? They have become "stranded assets" and aren't worth very much. Just like shares in a coal mine, there is no market. That is why ZIRP and NIRP are said to destroy capital.

                              Crony-capitalism brought us obamacare for big pharma. Socialism brought us poverty from living beyond our means, 6/05 13 of 23 co-ops created under Obamacare have failed – Zero Hedge WE (collectively) are not prepared for this. The lullaby of GOV support has mesmerized us to the point where we no longer save for the future.

                              Grasshopper Nation: Planning For Those Who Aren't Prepared | Peak Prosperity
                              What is the future for members of a species that do not pay particular attention to self-survival? Just like Europe, we are sliding down; "After World War 2, America boasted 40 percent of global economic activity. Thirty years later that world domineering number had fallen to 23 per cent and last year was just 16 per cent of world output. "
                              You are being redirected...
                              We're clawing the walls as we slide and taking a lot of other States down with us. Some of them will beat us on the rush to economic oblivion, "America’s struggle to keep up has seen it actively attempt to destabilise more than fifty countries, 38 successfully toppled over the decades in its brutal struggle for economic domination as it asserts a global hegemony without care or accountability."

                              It's our fault for not paying attention. Congress has about a 5?% approval rating BUT, "This election year — the year of the outsider, the year of unbridled contempt for establishment, Washington, D. C., politicians — has seen only one incumbent congressman defeated by the voters.

                              Just one. It came late last month in the wake of a 29-count felony indictment " This sucker is going down.


                              • UBI, Treasury accuses the FED, banks melting

                                The rich got all the money and thought that it was pretty cool. They are finally waking up to the fact that the general populace is close to starvation and revolution. People can't revert to an agrarian society in the cities so, the cities will be abandoned and destroyed. This is a definite non-starter for the rich.
                                Zero Hedge published 9 graphs of official numbers that show most people have NO future.
                                The trajectory is unmistakeable and getting worse.
                                The Wall Street Journal, of all people, has come out and advocated a basic income for everybody. This is an admission that things are really bleak.

                                "The UBI is to be financed by getting rid of Social Security, Medicare, Medicaid, food stamps, Supplemental Security Income, housing subsidies, welfare for single women and every other kind of welfare and social-services program, as well as agricultural subsidies and corporate welfare. As of 2014, the annual cost of a UBI would have been about $200 billion cheaper than the current system. By 2020, it would be nearly a trillion dollars cheaper.

                                Finally, an acknowledgement: Yes, some people will idle away their lives under my UBI plan. But that is already a problem. As of 2015, the Current Population Survey tells us that 18% of unmarried males and 23% of unmarried women ages 25 through 54—people of prime working age—weren’t even in the labor force."

                                There just isn't enough purchasing power in the population. Wages can't be raised or more jobs will be outsourced to low-wage competitors.
                                "In my version, every American citizen age 21 and older would get a $13,000 annual grant deposited electronically into a bank account in monthly instalments. Three thousand dollars must be used for health insurance (a complicated provision I won’t try to explain here), leaving every adult with $10,000 in disposable annual income for the rest of their lives."
                                "as well as agricultural subsidies and corporate welfare. " These amount to10 times the cost of personal welfare.

                                ALL the reliable indicators say, "would imply that the economy could enter recession as soon as the second half of this year."
                                When Will The Recession Start: Deutsche Bank's Disturbing Answer | Zero Hedge
                                OK, so the crash is unavoidable. EVERYONE is screaming that the FED is responsible for all of this mess. BUT,
                                "The net effect is that it is as if the Treasuries bought by the Fed didn't exist. But they do exist on the Fed's balance sheet. Technically, the Treasury must pay the Fed back one day. Until then, the Fed has given the Federal government more money to spend."
                                How Is the Fed Monetizing Debt?
                                The FED gets it's marching orders from GOV. A debt jubilee would cancel the debts from the U.S. Treasury owed to the FED
                                The FED may have the printing press but, GOV is stepping on the gas pedal.

                                There are a lot of smart people at the FED and many of them knew that ZIRP is always a trap. Well, GOV wanted to stimulate and GOV is severely lacking in brain power. There is NO POSSIBLE exit for the FED.
                                Why The Fed Is Trapped: A 1% Increase In Rates Would Result In Up To $2.4 Trillion Of Losses | Zero Hedge
                                The FED lowered the rates. The money flowed into mal-investment. If the FED raises the rates, it blows all the mal-investment. If it doesn't raise rates, it destroys all investment funds.

                                Sorry guys but, Aussie is going to tank as bad as all the rest. Time to go "bush" for a couple of years. 5 Reasons This Country Is In For Big Trouble | Zero Hedge

                                The financial system was just too big for the underlying economy. various stratagems were introduced to try to save all the banks. It was just a postponement, "Europe’s STOXX 600 Banks Index sank 5.4% this week (down 2.17% Friday), increasing 2016 losses to 19.6%. Italian bank stocks were clobbered 8.4% (down 2.84% Friday), ending the week just off early April’s three-year lows. Italy’s banks closed the week down 39% y-t-d. The Italian stock market (MIB) was down 3.8% this week, increasing y-t-d losses to 18.3%" Credit Bubble Bulletin: Weekly Commentary: Monkey with Money at Your Own Peril

                                6/06 Goldman finds that China’s debt is far greater than anyone thought – Zero Hedge Naturally, you should trust everything that Goldman says.
                                6/06 World faces pensions crisis, warns OECD – The Telegraph No kidding, when did they figure that one out?

                                "we are now 8 years into the fourth turning with at least a decade to go",