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November 19 2008 By: Sam Jones
The CMBS crash
Posted byu/duckfishwave
13 hours ago October 2020
Commercial Real Estate, CMBS delinquency, and CRE crash
"We're seeing 2008-2011 levels for CMBS delinquency and overall performance. This time instead of residential real estate taking the brunt of the crash, this will be CRE."
The lockdowns meant that people were working from home and, nobody needed office space. Commercial real estate is crashing.
CMBS Borrowers Are Giving Back The Keys To Their Properties In Droves
Remember that these loans are highly leveraged. This leverage goes into reverse when there is a default.
10/26 Bond defaults deliver 99% losses in new era of U.S. bankruptcies – Yahoo
Nobody is paying on anything
10/26 Existential crisis for colleges: $1.64 trillion in student debt and a pandemic – MB 360
Banks face a flood of covid-related credit card defaults
Once again, everybody is defaulting. When the underlying financial instrument defaults, there is a corresponding default of the derivative. The leverage goes into reverse and the lender goes broke. Here is a list of banks that went bust in the great recession.
https://en.wikipedia.org/wiki/List_o...reat_Recession
"
Apr 17, 2020 — America's big banks are planning for the worst anyway. ... Big banks built a $35 billion fortress to protect against coronavirus bankruptcies and defaults ... $35 billion during the first quarter to cushion against loans that go bust, ..."
You can see that $35 billion isn't any kind of "fortress" when the total of the derivatives is $1.5 quadrillion.
The State is desperately trying to make good on all the failing derivatives. Will this continue after the election?
Who knows?
10/26 Emerging markets’ dollar debt tops $4 trillion for first time, BIS says – Reuters
They pretty much have to get dollars from Powell to service dollar-debt.
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“Stocks have reached what looks like a permanently high plateau” | This was said by Irving Fisher, one of America's greatest economists, in October 1929. Within two weeks, stocks plunged, pushing America into the Great Depression. These stocks didn't reach the highs they fell from for 25 years."
Bernanke, "“At this juncture, however, the impact on the broader economy and financial markets of the problems in the sub-prime market seems likely to be contained” | Ben Bernanke, the Chairman of the Federal Reserve said this to a Congressional committee in March 2007. He downplayed the subprime debt crisis that swallowed the US stock market whole a year later, in the September 2008 recession."
"“We’re going to reach a point where stocks are correctly priced, and we think that's 36,000 … It’s not a bubble. Far from it. The stock market is undervalued” | James Glassman released his book in 1999 titled "Dow 36,000".
"The Soviet economy is proof that, contrary to what many skeptics had earlier believed, a socialist command economy can function and even thrive."| This statement by Nobel Prize-winning American economist Paul Samuelson in 1989 was extremely ill-timed as two years after this, the Soviet Union collapsed."
Joseph Cassano, head of the insurer AIG's financial products division, said in August 2007, that he couldn't see AIG "losing one dollar in any of those (credit derivative) transactions." AIG collapsed in 2008
"The power behind the Japanese juggernaut is much greater than most Americans suspect, and the juggernaut cannot stop of its own volition, for Japan has created a kind of automatic wealth machine, perhaps the first since King Midas." | In his book ‘Trading Places’, economist Clyde Prestowitz said this in the late 80s, just as Japan was reaching the end of its long economic boom.
Abby Joseph Cohen, Goldman Sachs chief investment strategist made a prediction in December 2007, that the S&P 500 would hit 1,675 by the end of 2008, a climb of 14 percent — it actually ended below 900.
“Bear Stearns is fine! Do not take your money out. It is not in trouble, do not move your money” | Jim Cramer, host of CNBC’s Mad Money had given this disastrous advice to his viewers in March 2008, five days before the company crashed and its stock price went from $62 per share to $2 per share.
OK, so much for citations. What about the motivating force behind all of this?
As Armstrong continually points out, everything runs in cycles. The human cycles are dictated, to a large extent, by confidence. It is human nature that confidence grows in the good times. It also seems to be human nature that confidence & exuberance seem to "overshoot" reality. When the smart people see this coming, they sell out to the muppets. Robinhood seems to be the current nexus for the muppets.
So, we continuously get cycles. We continuously get recessions. We get credit cycles driven by confidence.
The problem comes in when; Central Bankers attempt to erase / defeat the business cycle. We always get credit cycles BUT, banker intervention is an attempt to PERMANENTLY escape the trend line. The crash of 1929 was the end of a SUPER CYCLE. Because of repression of small corrections, we got a big correction.
The FED and, the State, working in tandem have pumped in liquidity to avoid any unpleasantness in the economy.
Apr 4, 2020 — So it is worth taking a broader look than just the next few days. BCA Research introduced the concept of the debt supercycle in the 1970s, ...
What a coincidence, just when we cut the last link to the gold standard?
The End of the Credit Super Cycle. July 12, 2016. By Peter D. Scholtz.
RAY DALIO: The 75-year debt supercycle is coming to an end
Apr 8, 2020 — The Coronavirus Crisis Will Kill the Private Sector's Debt Supercycle
Suppression of a natural debt cycle tied to confidence has brought us to the threshold of an end to a debt SUPER CYCLE. We can expect to have a super-recession.
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The nominal value of derivatives is reckoned at $ 1.5 quadrillion.
The nominal global wealth is reckoned at $400 trillion.
"Funds invested in derivatives alone total at minimum $544 trillion, and the high-end estimate is $1.2 quadrillion. In fact, there is more money in derivatives than in all the stock markets combined, which is a comparatively paltry $73 trillion."
EXCELLENT visual representation here.
https://www.marketwatch.com/story/th...art-2015-12-18
So, we have human capital that is "worth" just so much. Now, we have influence capital that is putatively worth $1 quadrillion.
https://medium.com/@drfazal/influenc...y-845871c113da
"Since income is the return on wealth, the total wealth of any given country should be on the order of 20 times its gross domestic product. Instead the average observed ratio from the balance sheet accounts of the System of National Accounts is a factor of 2.6 to 6.6, depending on whether natural resource stocks are included in the balance sheet. The clear implication is that the System of National Accounts wealth accounts are incomplete, with the most obvious omission being human capital. Estimating the value of human capital using the lifetime income approach for a sample of 13 (mostly high-income) countries yields a mean share of human capital in total wealth of 62 percent -- four times the value of produced capital and 15 times the value of natural capital. But for selected high-income countries in the sample there is still an average of 25 percent of total wealth that is unaccounted -- it is neither produced, nor natural, nor human capital. This residual intangible wealth is arguably the "stock equivalent" of total factor productivity -- the value of assets such as institutional quality and social capital that augment the capacity of produced, natural and human capital to support a stream of consumption into the future."
Currently,we see liquidity injections of a few $trillion here and, a few $trillion there.
"They" are trying to rescue the nominal value of $quadrillions of contracts that have no underlying value.
“Creative financial instruments” was the Orwellian name given to the new financial asset popularized by Greenspan, but otherwise known as “derivatives”.
"These nebulous bets on insurance on bets on collateralized debts known as derivatives didn’t even exist a few decades ago,"
You can see the obvious problem.
We have crony capitalism that is just a shade away from outright fascism. BUT, neither the banks nor the State produce any wealth. Both have grown to enormous proportions by stealing the wealth of the producers. They use"fear of poverty" to keep us motivated. The derivatives book is a perfect example of creating financial instruments but, NOT creating any tangible wealth. The new liquidity being created worldwide is an attempt to feed in enough new liquidity to keep the derivative book from having a nuclear meltdown. There is an ongoing attempt to "sterilize" this new liquidity so that it does NOT filter into the price structure of the consumer loop.
Imagine the price of bread at $50 a loaf.
Derivatives are BETS on some particular financial instrument that is tied to some contract that is tied to something more-or-less tangible in the lower loop of the economy. Derivatives are a second-order instrument. The primary instrument must be carefully safeguarded to avoid a default cascade. What happens when many millions of people do not pay their mortgage,,, student loans,,, credit cards?
The State MUST inject $trillions into the finance industry to keep hundreds of $trillions of derivatives from melting down as the Primary instruments are defaulted on. You can complain about all the many $trillions channelled to the banks. What other choice is there.
From the SAKER;
"It shouldn’t come as a surprise that the Vice President of the World Bank Carmen Reinhardt recently warned on October 15 that a new financial disaster looms ominously over the horizon with a vast sovereign default and a corporate debt default."
So, the State rescues the private banks AND, in turn, sovereign debt collapses. Once the FED heads set us on this course, our future was locked in.
"no matter what the Federal Reserve and European Central Bank have attempted to do to stop a new rupture of this overextended casino bubble of an economy in recent months, nothing has worked. Zero to negative percent interest rates haven’t worked, opening overnight repo loans of $100 billion/night to failing banks hasn’t worked- nor has $4.5 trillion of bailout unleashed since March 2020. No matter what these financial wizards try to do, things just keep getting worse."
"In 1986, the City of London announced the beginning of a new era of economic irrationalism with Margaret Thatcher’s “Big Bang” deregulation. This wave of liberalization took the world by storm as it swept aside the separation of commercial, deposit and investment banking which had been the post-world war cornerstone in ensuring that the will of private finance would never again hold more sway than the power of sovereign nation-states. For those who are confused about London’s guiding hand in this process, I encourage you to read Cynthia Chung’s impeccable essay “Sugar and Spice, and Everything Vice: The Empire’s Sin City of London”."
You can see here that; Slick Willy & Greenspan started us on a road to techno-fascism where bankers had more power than States. That was the Graham-Leach-Bliley Act. George Soros famously used fabricated derivatives to attack the British Pound and, break it. He walked off with $1 billion.
"When Alan Greenspan confronted the financial crisis of October1987, markets had collapsed by 28.5% and the American economy was already suffering from a decay begun 16 years earlier when the dollar was removed from the fixed exchange rate and was “floated” into a world of speculation. This departure from the 1938-1971 Industrial growth model ushered in a new paradigm of “post-industrialism” (aka: nation stripping) under the new logic of “globalization”. This foolish decision was celebrated as the consumer-driven, “white collar society” which would no longer worry about “intangible things” like “the future”, infrastructure maintenance, or “growth”. Under this new paradigm, if something couldn’t generate a monetary profit within 3 years, it wasn’t worth doing."
"Paul Volcker (Greenspan’s predecessor at the Federal Reserve) exemplified this detachment from reality when he called for the “controlled disintegration of society” in 1977,"
https://larouchepub.com/eiw/public/1...ant_by_con.pdf
"Greenspan confronted the 1987 crisis with all the gusto of a black magician, and rather than re-connect the economy to physical reality and rebuild the decaying industrial base, he chose instead to normalize “creative financial instruments” in the form of derivatives (aka: “creative financial instruments”), which quickly grew from several billion in 1988 to $2 trillion in 1992 to $70 trillion in 1999."
"No matter what level of regulation were attempted under this new structure, the degree of conflict of interest, and private political power was uncontrollable, as evidenced in the United States, by the shutdown of any attempt by Securities and Exchange Commission head Brooksley Born to fight the derivative cancer at its early stages.
When Bill Clinton repealed Glass-Steagall bank separation of commercial and investment banks as his last act in office in 1999, speculators had un-bounded access to savings and pensions which they used with relish and went to town gambling with other people’s money. This new bubble continued for a few more years until the $700 trillion derivatives time bomb found a new trigger and the subprime mortgage market nearly burned the system down."
"Just like in 1987, and the collapse of the Y2K bubble in 2001, the Mammon worshipping wizards in the ECB and Fed solved this crisis by creating a new system of “bailout” which continued for another decade."
The current bailouts are just one in a long chain of screwings from the bankers. Trump / Powell are working converting the FED to a public bank. The graham-Leach-Bliley cat took out money and, gave it to the banks. The revamp of the FED would take it all away.
With Glass-Steagall now removed, legitimate capital such as pension funds could be used to start a hedge to end all hedges.
New “sub-prime” bubbles have been created in the Corporate Debt sector which has risen to over $13.8 trillion (up 16% from the year earlier). A quarter of which is considered junk, and another half graded at BB by Moodys (a step above junk)."
Combined with the controlled destruction of global food supplies internationally, COVID has ensured that strategic food chain supplies are being ripped to shreds with the UN reporting the worst food crisis in over 50 years (and that is not accounting for the oncoming blowout of the bubble economy).
Why was this permitted to happen? Well besides the obvious intention to induce “a controlled disintegration of the economy” as Volcker so coldly stated, the idea was always to create the conditions described by the late Maurice Strong (sociopath and Rothschild cut-out extraordinaire) in 1992 when he rhetorically asked:
“What if a small group of world leaders were to conclude that the principal risk to the Earth comes from the actions of the rich countries? And if the world is to survive, those rich countries would have to sign an agreement reducing their impact on the environment. Will they do it? The group’s conclusion is ‘no’. The rich countries won’t do it. They won’t change. So, in order to save the planet, the group decides: Isn’t the only hope for the planet that the industrialized civilizations collapse? Isn’t it our responsibility to bring that about?”
"At this point nation states will have re-asserted their true authority over the pirates of private finance controlling the Trans-Atlantic financial system"
"It should be obvious to all that the United States must get its head out of its proverbial ass before it is too late by imposing these reforms onto the murderous sociopaths on Wall Street and London who would rather promote a “Great Reset” onto the world economy under the fog of COVD in order to control the terms of the blowout and also the rules of the new post-nation state operating system which they wish to see brought online as a (final) “solution”."
https://thesaker.is/what-the-great-r...out-economics/
The Great Reset is all about bring in communism. Why is it that all communist takeovers seem to involve a LOT of killing?Leave a comment:
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Random headlines.
"China does not have enough fresh food to go around — and neither does much of the world. The pandemic and extreme weather have disrupted agricultural supply chains, leaving food prices sharply higher in countries as diverse as Yemen, Sudan, Mexico and South Korea.4 days ago"
Youtube vids;
China Heading To A Major Food Shortage! You Need To Get Prepared For Worldwide Starvation
Indonesia strongly warned the CCP by arresting and detonating 170 Chinese ships. | Fishing vessel
Argentine coast guard opens fire on Chinese fishing boat
Hot News:The US fought and chased 3,000 Chinese fishing boats with armed forces and caught illegally
U.S. Navy Arrest and Sink 300 Chinese Fishing Ships Off South America Coast in Security Worries
South Korean Coast Guard shot 44 Chinese fishing boats, killing 2 people and injuring 4 people
Fishing on verge of ‘irreversible collapse’ amid China tensions.
Korea gets tough on Chinese illegal fishing boats
Unexpected patterns of fisheries collapse in the world's oceans
South China Sea: Fisheries on the verge of collapse as tensions soar | World | News
PAKISTAN BLOCK CHINESE FISHING FLEET! 3 Million Fishermen At Risk Of Losing Livelihoods
Exposed: Chinese ship chases, rams and sinks Vietnamese fishing boat
OSLO (Reuters) - The amount of fish in the oceans has halved since 1970, in a plunge to the “brink of collapse” caused by over-fishing
Premier Xi has to worry about running out of fish. Of course, the swine flu killed off most of the hogs and, the floods have wrecked a lot of farmland.
But wait, That isn't all.
Youtube titles
China faces an unemployment crisis 65,000 factories closed, more than a thousand companies left
Xi Jinping is angry when South Korea provides fees for more than a thousand companies to leave China
The US blacklisted all Chinese companies, and the CCP fears an economic collapse. Xi was confused
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SIGH, there is so much going on.
The new Euro currency was rolled out over a period of a few years.
The new digital dollar is to be force-fed into the system on short notice at the beginning of 2021.
From the United Nations; Kenya, Tanzania, Uganda, Côte d'Ivoire, Egypt, Nigeria and South Africa are also bellwethers of cashless payment use in Africa
Banking In A Cashless Society. Access.mobile is another major success story, testing and growing its health innovation offerings for seven years in East Africa.
The plandemic was hitched up to fast-forward the system to digital money because the pension systems ARE collapsing from ZIRP
https://news.northeastern.edu/2020/0...-the-pandemic/
Wharton says that going cashless is very bad.
https://knowledge.wharton.upenn.edu/...-long-way-off/
Keep in mind that hundreds of millions of State bureaucrats depend on control over the masses / producers to keep their paychecks coming in. THEY are at the forefront of control and lockdown. The second wave of the plandemic is/was timed to coincide with the rollout of digital cash at the beginning of the year. The "necessary" second lockdown would finally annihilate the economy. We would go along with ANYTHING to eat.
Here are 2 links from Rense that paint a VERY bad picture of the situation. They are focused on Canada. Keep in mind that Trudeau, the wanker in chief has gone completely communist.
The NORMAL sequence of events is;
The State institutes Repressive measures.
The populace demonstrates against them
You can't have demonstrations with social distancing
Next, the police repress the demonstrations
Police crack down even harder
Aussie police have started this
The police get worse. The soldiers are brought in
The number one issue at that point is; do the soldiers back the people OR, the leaders?
THEN comes the question? Are the people armed or not?
Here are the links
Watch Dr. Buttar Describes Canadian Parliament
Whistleblowers Revealing The PLAN Just Ahead
This Video Is Set To Start At 31:00...Begin There
Here's The PLAN For Canada As It Has Been Created
They Will Be Put Through Hell Under The CV-19 Hustle
Then Forced To Give Up ALL Property In Exchange For
Debt Forgiveness And Universal Basic Income...& More
...This Sort Of Plan Will Likely Come To The US Next
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Armstrong looks at global capital flows. Americans don't seem to look past the oceans. If you search on "death of the dollar", it returns,,
About 262,000,000 results (0.57 seconds)
What about the reality? Here is the chart, https://zh-prod-1cc738ca-7d3b-4a72-b...?itok=tBwKe_CF
https://www.zerohedge.com/markets/wh...gin-call-looks
Charles Hugh Smith sees MMT as being hyper inflationary,,, like many others. Armstrong has pointed out that hyperinflation shows up when people loses confidence in the State and, the currency. IF, money is doled out to people to survive, that would improve confidence.
Contrast that with conditions in El Salvador. People stand out on the side of the highway with their starving children. They wave a white flag to show that they
have nothing to eat. They don't ask for money. They beg for any scrap of food that you can give them.
Smith, 10/20 Will the stock market be dragged to the guillotine? – Charles Hugh Smith
10/20 The Fed says the federal budget is unsustainable – Mises Institute
10/20 America’s political and financial institutions are broken – Money Metals
The great reset and, digital currency is the hoped-for solution. I'm not so confident.
10/20 Fed’s Bostic says significant parts of U.S. recovery are nonexistent – Reuters
Someone finally noticed.
10/20 Loose monetary policy is worsening wealth inequality – Live Mint
Yeah? think so?,,, Stop all stimulus and see what happens.
10/20 Glenn Greenwald trashes media ‘cone of silence’ around Biden emails – Fox
Here's one for you old timers.
https://www.youtube.com/watch?v=HWtPPWi6OMQ
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Notes from Armstrong;
There is ABSOLUTELY no way we are headed back to normal. This is NOT going away. They are pushing for Digital Currencies very rapidly. The target is still by January 1st. They will default on the debt outside the country by converting everything to perpetual bonds.
The central banks will simply declare this as capital. It will clean the balance sheets and allow them to start over again with normal interest rates set by credit risk.
We have reached the end of an era. There remains a serious risk depending on where the market closes for year-end, but we are staring in the eyes of rising rates on the 10-year level across the board in European debt with the dramatic expansion of the ECB balance sheet. It is smelling like the end is near
This is not going back to the pre-COIVID normal. It will also not be what the majority think.
However, this attempt for the Great Reset is also pushing the crisis in reducing the food supply at a time when we should be stockpiling it.
QUESTION #1: If China is held liable for the virus damage then why could we not void all the bonds they hold as a payment for their damage to our economy? That would free up some debt and be a stimulus as well it would seem to me. The CCP is working every day to bring down the USA and this release of a virus that has crushed our economy. Yes, this is part of a global cabal for sure.
MTB
ANSWER#1: If the US, Europe, or Canada ever did that, they will forfeit their credit standing and nobody else will ever trust them again.
My fear is that this Great Reset is a real agenda and they are trying to take over the United States. Why do you think all the Tech companies are blocking anything negative about Biden? They have been promised a piece of the action when the digital currency is introduced. The Democrats have already put in legislation to create the digital dollar.
Yesterday where you talking about a big reset in the economy, on the first hand here in Europe there Europe states are redoing all present debt to perpetual bonds.
If they have a return rate of 0% or lower are the value in the practice zero or negative. Unless it’s possible to force the state to redeem those in the future. Overtime will they have no value at all because inflation will destroy them.
ANSWER #4: The central banks holding the debt will simply become part of their capitalization. I have been in meetings with Central Bankers and pointed out the problem with pension funds already even at 1%. I have explained that they will have to provide some yield in return at least 3% by our calculations in exchange for making them perpetual. They will not default outright like Argentina. Politically that would be disastrous internationally.
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OK, it looks like numerous States will force-feed digital currency into the system. Armstrong is certain that all external sovereign debt will be converted to perpetual bonds.
"start over again with normal interest rates"
I wouldn't bet the farm on that plan. The FED is setting up for MMT. If they print money, ex nihilo, they don't need to incur ANY interest charges. They don't need to worry about what other States would think or do.
"rising rates on the 10-year level"
Armstrong shows a distinct lack of imagination here. FED and Treasury don't need to sell debt or, pay interest. I don't know how this is going to play out but, the payment plans put forth by the Cleveland FED don't mention selling debt to finance liquidity transfers.
The gorilla in the room who's name must not be mentioned is; the pension system. A return to 3% interest won't save them. It would prolong the agony a bit, but, nothing more. The consumer is broke. How are stock returns going to finance the 7% minimum needed by most pension funds?
The stimulus will be formalized as MMT liquidity transfers directly to individuals.
Many pundits talk about a return to 5-6% interest rates. Wages are flat and, the population is shrinking. There is no possible way for a shrinking economy to finance rising interest rates.
This great reset is planned to bring us digital currency by 2021 according to Armstrong. This move alone will be catastrophic. You just can't blow up the entire financial system and expect a new system to just smoothly take over.Leave a comment:
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I know that I sometimes ask for a lot of reading. BUT, your personal survival will soon be moving closer to center stage.
The FED was creating about $1 trillion a month in new liquidity. Even this isn't enough. All Central Banks desperately need a new system. That is why the IMF is talking about a complete reset. The plandemic is just part of what was created to force this issue onto a fast track.
The new rage is a government crypto coin. The CBs and State are running out of time before markets collapse. They are desperate to get a new system in place.
"Congress, which is actively drafting bills to send "digital dollars" to the unbanked. For those just catching up, read the following recent articles:"- Did The Fed Just Reveal Its Plans For A Digital Dollar Replacement?
- House Stimulus Bill Creates "Digital Dollar" To Send Virus-Aid To The 'Unbanked'
- The Fed Is Planning To Send Money Directly To Americans In The Next Crisis
- Fed's "Direct Money Transfers" Are Coming: Brainard Says Fed Collaborating With MIT On "Hypothetical" Digital Currency
- In Unprecedented Monetary Overhaul, The Fed Is Preparing To Deposit "Digital Dollars" Directly To "Each American"
- ECB Trademarks "Digital Euro" As It Begins Experiments On Digital Currency Launch
- The Circle Is Complete: BOJ Joins Fed And ECB In Preparing Rollout Of Digital Currency
"Bill Campbell, who warned that "Pandora's Box Of Fed's Digital Currency Will Ignite An "Inflationary Conflagration" - which is spot on in its assessment that this is at its core a central bank Hail Mary attempt to spark drastic inflation across the globe in hopes of "reflating away" the world's untenable debt load"
COMPLETELY INCORRECT
"80% of central banks around the world are exploring the idea." Powell also noted that of the $2 trillion in dollar currency in circulation - with this number spiking following the covid pandemic - about half remains outside the US."
OK, HERE IS A SIDE NOTE;
https://roundtablereport.com/?p=6402
News
Article: Fed Announces It Will Quit Printing Paper Money
Something tells me that this is a WILD card in the plans.
"Powell also listed the main reasons why central banks are obsessed with to launching CBDCs, saying that "there are a number of ways that a CBDC might improve the payments system, and it is mainly this area that motivates our interest" which include:- Faster and cheaper transactions
- Addressing a decline in the use of physical currency
- Modernizing the payments infrastructure"
This is a MUST READ article explaining just what is at stake for our future.
https://www.strategic-culture.org/ne...y-vs-republic/
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Well, the cat is out of the bag. China created the Wuhan virus with the sponsorship of elements in the West. Primarily, the world health organization.
Who else is guilty? Who else is involved?
The IMF has been expounding on the great reset for years now. This great reset is a complete reorganization of the world economy. The world economy is currently, nominally,,,, capitalistic.
Regulatory capture has brought crony capitalism that closely resembles fascism. Capitalism is the only system that works because it is the only system that allows an individual to get personally RICH. This motivation spreads throughout society. If you take away the motivation of the possibility of becoming rich, you depress motivation in general. all socialist systems eventually go broke because nobody sees any reason to put out more than minimal effort.
The overlay of the EU bureaucracy on top of existing European State's bureaucracy reduced the GDP of the member States by 20%. What did they get for it?,,, meaningless regulations.
Martin Armstrong's program, Socrates shows that the government would be MUCH more efficiently run by artificial intelligence. The State does not want to be run efficiently.
The State is now focused on providing make-work jobs for hundreds of millions of people who have no niche in the private sector. This takes a lot of money.
In America, we work 105 days every year until tax freedom day. This is the number of days every year that we must work to pay our taxes. In France, it is 205 days. The French government spends 57% of the GDP.
The great reset is a collaboration of governments worldwide to reset the economy to a Marxist construct. Theoretically, This would provide "eternal" funding for hundreds of millions of bureaucrats. The blob State has always resisted bringing automation to State jobs.
Parkinson's Law states that GOV bureaucracy grows by 6% a year. Our money supply previously grew by 6% a year. Currently, out money supply is growing by 63% annualized.
Socialism is the firewall between Darwinian pressures and, the non-producers. What happens when you get too many non-producers?
Armstrong, "Here is a message from a member of Parliament in Britain. We are looking at the repeal of all rights in Britain, Australia, Canada is moving with internment camps as is New Zealand. They desperately want to do the same in the United States if they can get rid of Trump. Welcome to the “New Norm” it is just out in the open."
The blob State has previously supported itself by the sale of sovereign bonds. As Europe gets more and more socialistic, they have destroyed their sovereign bond market. They can't sell anything.
Every 1$ in additional taxes reduces the productive economy by 3$. It also reduces motivation if you see that you will never get ahead. The various left-leaning governments see the limitations of increasing taxes. They are now printing to finance all the non-producers.
"They" have called for a new Bretton Woods agreement to try to finance emerging socialism.
Armstrong, "Here is a message from a member of Parliament in Britain. We are looking at the repeal of all rights in Britain, Australia, Canada is moving with internment camps as is New Zealand. They desperately want to do the same in the United States if they can get rid of Trump. Welcome to the “New Norm” it is just out in the open."
The blob State has previously supported itself by the sale of sovereign bonds. As Europe gets more and more socialistic, they have destroyed their sovereign bond market. They can't sell anything.
Every 1$ in additional taxes reduces the productive economy by 3$. It also reduces motivation if you see that you will never get ahead. The various left-leaning governments see the limitations of increasing taxes. They are now printing to finance all the non-producers.
https://www.armstrongeconomics.com/w...-woods-moment/
The great reset is simply a grab for money. To help bring on the great reset, The Marxists engineered the plandemic & lockdown.
The Cloward-Piven strategy calls for a complete destruction of government so that a wonderful new socialist system that is equitable for all will emerge.
Evidently, they have never read a history book. Socialism always fails.
https://www.youtube.com/watch?v=5Qnkqg4HzeA&t=379s
Armstrong believes that all these bankrupt socialist States will convert everything to digital currency AND, all sovereign debt will become perpetual bonds.
https://www.armstrongeconomics.com/m...nterest-rates/
Trump is the big spoiler in this new-found system for financing socialism. He refuses to go along with the agenda. The Marxists have always claimed that socialism would work if it were worldwide. The planned new world order would enforce this.
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All nations go off the gold standard when they are preparing for war. The war would be over shortly if it couldn't be fought on a credit card. State war bonds.
The Bretton Woods agreement tied all currencies to the U.S. dollar. The U.S. dollar was linked directly to a fixed amount of gold. This precluded States from creating war finance.
The creators of the welfare-warfare State ended this arrangement.
The IMF has just called for a new Bretton Woods agreement.
https://www.imf.org/en/News/Articles...n-woods-moment
This call for a new Bretton Woods agreement comes from the IMF.
Reportedly, the IMF is a member of the Club of Rome.
The club of Rome wants to reduce U.S. and, world population by several billion.
http://conspiracywiki.com/new-world-order/club-of-rome/
The original Bretton Woods agreement was a means of stabilizing currencies. The State and the bankers need unlimited elasticity in currency to continue to loot us, and the system.
23.6% of All US Dollars Were Created in the Last Year
https://imageproxy.themaven.net/http...fp-debug=false
There is no possible way to stabilize the U.S. dollar.
Here is an EXCELLENT article if you can wade through it.
https://www.goldmoney.com/research/g...lation-is-here
The speedbumps are just getting bigger.
"October 15 – Bloomberg (William Shaw, Liz Capo McCormick and Tasos Vossos): “It’s being called the ‘big bang,’ and it has derivatives traders on high alert. In a critical development in the global shift away from old benchmarks that was triggered by Libor’s shortcomings, interest-rate swaps on more than $80 trillion in notional debt will transition this weekend to a new rate for determining their value."
$80 trillion is going to get re-priced in just one movement.
That isn't all;
US Budget Deficit Triples To Record $3.1 Trillion In 2020 As US Spends 90% More Than It Collects
Here are a couple of vids
https://www.youtube.com/watch?v=43xrrFW5L3Q
https://www.youtube.com/watch?v=EGeJ2JJsSyU
10/17 World Bank economist: Pandemic morphing into ‘major economic crisis’ – Fox
https://www.zerohedge.com/economics/...pting-oblivionLeave a comment:
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Here is a vid that lays it all out. The Banking for All act has all the provisions for you to have an account at the FED no later than December of 2021. You can still have an account at a private bank. Keep ion mind that this vid is full of lies.
https://www.youtube.com/watch?v=uX7VpTqXJhYLeave a comment:
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McConnel wants stimulus for big business.
Pelosi wants stimulus for democrat governors.
Trump wants stimulus for individuals
It is OBVIOUS that the FED can create liquidity out of thin air. What is contested; where should this liquidity be "injected"
Socialism is the firewall between the non-producers and,,, Darwinian pressures.
The 3 classes of non-producing parasites; Beggars, bankers and, bureaucrats.
Parkinson's Law states that a State bureaucracy will grow by 6% a year regardless of work load. State employment programs seem to grow adequately to absorb the endless flow of bureaucrats.
What about bankers? When capital was scarce, they served the function of intelligently allocating this capital. When we abandoned the gold standard, capital was no longer scarce. Bankers nowadays are strictly self-serving. They create a loan out of thin air and, collect the interest. The food chain for the bankers is initiated by the FED. The sovereign bond market is the source-spring for speculator liquidity. The money supply grows by 6% a year. Price inflation is always much higher than wage inflation. Poverty of the working class is built into the system.
Tax receipts and the sovereign bond market are used to finance the blob State.
The Treasury bond market is used to "finance" the bankers.
Capitalism is the ONLY successful economic system. Socialism focuses only on consumption and, ignores production. It always goes bust.
Our current system is "socialism for the rich". FED GOV is creating $ trillions in new liquidity to keep that system going. This necessitates an enormous increase in the quantity of money.
https://www.visualcapitalist.com/wp-...e-1000x600.jpg
Socialism for the rich, otherwise known as "crony capitalism" appears to require stupendous new liquidity to keep it going. NOT a good prognosis.
The creation of the blob State AND, the creation of crony capitalism are both grand departures from true capitalism. Historically, ALL departures from true capitalism have always failed.
The over-generous financing of bankers and bureaucrats has created a simulacrum of the real thing.
Liquidity creation has gone vertical on the charts so, that is an indication that the simulacrum is not a viable alternative to the real thing.
Charles Hugh Smith writes VERY well about this situation.
"I use simulacrum to describe a carefully constructed representation of a once-authentic system that is intended to shape our behavior to suit the interests of those constructing the simulacrum.
The simulacrum has the look and feel of the once-authentic system but it's rigged to benefit the few whose interests are better served by the simulacrum than they could ever be served by an authentic system.'
The point of a simulacrum is to mimic an authentic system realistically enough so nobody notices it's rigged to benefit the few at the expense of the many.
French Postmodernist Jean Baudrillard's 1981 book Simulacra and Simulation attempts to differentiate Simulacra and Simulation by noting that a simulacrum is not a copy of an original (i.e. a counterfeit) because the original is no longer accessible.
Contrast this authentic form of capitalism with the monopoly-finance-state version we inhabit, a simulacrum of authentic capitalism that retains enough superficial similarities to the original that the vast majority of participants don't even realize that their experience of this simulacrum is entirely different from an experience of authentic capitalism.
Rather than draw benefits from this hyper-real monopoly-finance-state version, the vast majority of participants are exploited, as the value of their labor and capital is extracted by the simulacrum version of "capitalism"
The problem is our system only survives by cannibalizing its weakest parts, and once they've been consumed, the system can no longer sustain itself and it expires.
Simulacra are not fake, but they are profoundly unstable and prone to collapse. Everything gluing the monopoly-finance-state system together is unraveling due to the excesses of extraction and exploitation the system has perfected.
http://charleshughsmith.blogspot.com...m-economy.htmlLeave a comment:
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Dow Jones running wild and millions are left to starve.
This video is a condensed view of the House and Senate.
Both sides against the middle AND the President.
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In 1975, there was a worldwide scare that manmade emissions were causing global cooling. It was true that earth was cooling a bit. After a few years, the temperature swung the other way.
Obviously, manmade emissions were causing this. Al Gore championed this situation and, eventually amassed a fortune of $300 million. He needed some of this money to pay his electric bill of $10,000 a month. He steamrollered anyone who disagreed with him. A typical lefty tactic. Obviously, a worldwide carbon tax was needed to placate the sun god. This tax would also be useful to fund the blob State. The worldwide collection of hundreds of millions of State employees who knew very well that they contributed nothing to the economy.
This world of parasites were constantly worried about personal funding. Hence, they were perpetually worried about control of the host.
Gore was their champion because he was a proponent of control.
Fast forward to our present situation with the lockdown. This has been a very convenient ploy to ratchet up the mechanisms of control. They have pounded an enormous amount of fear into the populace to justify the removal / suppression of all human rights.
Armstrong has 2 short articles with 2 short vids.
The second article has a great vid that explains that the Davos crowd that initiated the lockdown now wants this situation to become the NEW NORMAL.
https://www.armstrongeconomics.com/w...world-opinion/
https://www.armstrongeconomics.com/i...wab-his-davos/
Other writers have pointed out that the lockdowns have been most strict in States that have Draconian gun control. I do hope that you Aussies do come to your senses and protest En Masse.Leave a comment:
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I had to break this up some. I managed to do the entire previous post without any links. I have to start with a link here. It is a repost.
https://www.clevelandfed.org/en/news...-pandemic.aspx
"central bank digital currency (CBDC). Legislation has proposed that each American have an account at the Fed in which digital dollars could be deposited, as liabilities of the Federal Reserve Banks, which could be used for emergency payments. Other proposals would create a new payments instrument, digital cash, which would be just like the physical currency issued by central banks today, but in a digital form and, potentially, without the anonymity of physical currency. Depending on how these currencies are designed, central banks could support them without the need for commercial bank involvement via direct issuance into the end-users"
That says it all right there.
"could be deposited, as liabilities of the Federal Reserve Banks," It does NOT say that these liabilities would be borrowed or paid "back"
This is the only way that the State can avoid drowning in debt service. This is the only way that the private sector can return to normal interest rate charges.
Armstrong, "The European and Japanese governments will have little choice moving forward, for they have destroyed their bond markets and are UNABLE to issue bonds that institutions will buy at these crazy rates. It is more than a simplistic printing of money. We are looking at the bond market is collapsing. This is the DESTRUCTION of Capital Formation so in the end, capital must flee anything connected with governments and seek shelter in primarily the stock markets."
Armstrong's definition of capital formation, ,,GOV prints bonds to finance it's expenditures. The taxpayer is loaded down with taxes to pay the speculators. In addition to
the tax burden, there is the "inflation tax" that we must all pay.
Armstrong, "Increasing the money supply, which is what the Fed is doing right now, is not going to save the day because the amount of money lost on a leverage basis is 20 to 30 times that. It’s like throwing a bucket of water into the wind, it’s going to come right back in their face. They can’t stimulate enough. It’s impossible to overcome this."
GOV knows that the stimulus can only be a temporary measure. They need to get the FED public bank ,,, and, digital money operating ASAP. The quantity of money is rising straight up on a graph.. Like Armstrong says, this won't work. And, why is that? Simple arithmetic. Here is a VERY good explanation of second order effects. This explains a LOT of things.
https://realinvestmentadvice.com/mac...vative-effect/
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