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Old 10-21-2019, 04:03 AM
Danny B Danny B is offline
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Desperate U.N,,,, anti anti war hysteria

ZH, Civil Unrest Is Erupting All Over The World, But Just Wait Until America Joins The Party...
I've got my remote BOB.
Central Banks Are Out Of Ammo - UN Head Demands Immediate Fiscal Stimulus To Save World From Crisis
Don't hold your breath. This is all part of planned population reduction.
Goldman: The Fed Was The Main Driver Of Markets In 2019
There is an election coming

Democrats Have No Answer For Trump's Anti-War Posture
"Russian Asset" Is A Meaningless Noise War-Pigs Make With Their Face-Holes

It has been firmly established beyond any doubt that it is now literally impossible for an American political figure to vocally oppose US warmongering without being labeled a Russian asset...
Winners & Losers In The Failed American Project For A 'New Middle East'
The winners would be Americans, Syrians, Iranians and Putin. The main loser would be Netanayahoo.

"Toe The Line Or Be Destroyed": Tulsi Gabbard Dismantles Establishment 'Hit-Job' In Viral Video
"If you stand up to the rich and powerful elite and the war machine, they will destroy you and discredit your message..."
10/21 Trump’s anti-war stance is the real target of the latest impeachment push – HL

10/21 Hong Kong police fire water cannon with blue dye as crowds defy ban – Guardian
The new Blue man group.
10/21 Japan’s September exports slip for 10th month, pressuring BOJ to ease – Reuters
Yes, absolutely. Easing has failed for 20+ years. Keep doing it.
Entrenched congressional corruption.
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Download SOLAR SECRETS by Peter Lindemann
Free - Get it now: Solar Secrets

Old 10-21-2019, 03:26 PM
Danny B Danny B is offline
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Responsibility and validation for men in the future

Here is a vid Of George Jetson. He gets up at 11:00 to go to work. He works 2 days a week for 1 hour a day.
Sheep dogs are genetically suited to herd sheep and, only happy when they are doing this. Race horses are only happy when running.
Man is a social creature who is programmed to support the family and clan.
Jordan Peterson argues convincingly that; the meaning of life for men is; seeking and, bearing responsibility. (crosspost)

He also argues that "weak men can't be virtuous."
Moreover, he argues that; young men (especially) feel lost in today's culture because there is no call for them to shoulder responsibility as it was many years ago.

Statistics seem to bear this out. 80% of college students are women. As we perfect ever-more labor saving devices, there are fewer niches that are a good fit for men.
Peterson calls this a crisis. Drug addiction and suicide rates seem to prove him correct.
Militant feminism has alienated him from traditional relationships.
Women seem to believe that men lack enough confidence to approach and, date women.

Women have just become too mercenary.
As women alienate men, the men are thwarted in their natural roles.

How will this play out in the future?
What does George Jetson DO all day?
What is the future of automation.?
Humans are extremely social. What happens when women can't find mates.
What happens when men can find no validation or fulfilment in life?

In Japan, only 42% of couples have sex in a given month. The men have just lost all interest,,, especially in the crowded cities. The Japanese girls are all looking for a "farm boy". The population is shrinking rapidly.
Our natural tendency is to; take on responsibility to support the family and clan.

The antithesis of this is corruption.
As most people know, Aspartame is a neuro-toxin that produces formaldehyde in the body. It's a poison, plain and simple.
Donald Rumsfeld was the CEO of Searle and, when he went to work for the State, he demanded that the FDA approve aspartame. He is responsible for the early death of millions.

Most corruption is simply a question of putting personal gain ahead of the good of the clan. Some of the corruption is a case of putting the interests one clan far above the general good. Theocracies seem to be pretty bad about this. Israel and Saudi being good examples. Erdogan in Turkey is moving in this direction. Turkey is 98% muslim so, it's no surprise.

Automation has brought on a crisis where very few men have a necessary niche in society. The women are floundering because they can't connect with men. They are finding that there are ever-fewer men who will listen to their demands. Much of society is dis-integrating because of these problems.
The coming financial crash will be that much worse because the left-right dynamic will prevent the State from working cohesively.
The banker-caused destruction of the nuclear family will mean that family support will be that much more unlikely. The gender wars mean that supportive men will be mostly unavailable to women.
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Old 10-23-2019, 04:16 AM
Danny B Danny B is offline
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Chaos in every quarter

Pervasive lies. Armstrong is a trader and investor. The current regime of Central Banks is specifically tailored to enrichen the investor at the expense of the actual producer. Naturally, Armstrong is going to support the investors (gamblers) with MY money, no less.
QUESTION: You commented that the central banks had a difficult position when they were on the gold standard compared to post-1971

"ANSWER: The United States created the Federal Reserve in 1913. Prior to World War I, central banks were long-established in Europe like the Bank of England in 1694. What you have to understand is that BEFORE World War I, the central banks of Europe were faced with two duties because there was the gold standard.

1.) The first was to defend their currency’s parity with gold and thereby the entire edifice of the international gold standard. This required raising interest rates and keeping the total volume of money and credit under control, often with contractionary effects."

Back then, we had small "contractionary effects"
CNBC “If you look at the market historically, we have had, on average, a crash about every eight to 10 years"
Abandoning the gold standard has brought big crashes as opposed to small contractions.
The crashes serve to skin the small investors and allow the banks to buy up everything at fire-sale prices.

Armstrong, "2.) The second responsibility was to act as a lender of last resort for their banking system by supplying emergency liquidity. This necessitated an expansion of credit and a lowering of interest rates. "
The original charter of the FED allowed it to do OVERNIGHT loans for good collateral at punitive rates. The FED created the overnight liquidity and then, destroyed it upon repayment. It kept the interest.
Armstrong, "Post-1971, the central banks were no longer required to intervene to maintain the exchange rate relative to the gold standard"
OK, so, the presses went into overdrive to supply liquidity to ALL the speculators.

"Paul Volcker raised interest rates insanely into 1981 to stop inflation, but he ignored the consequences that would have on the value of the dollar on world markets. "
NO MENTION of where this inflation came from. "Ignoring the consequences" came first. Inflation came later.`

As a general rule, A State would go off the gold standard every time that it wanted to get a war going. The Bretton Woods agreement tied the U.S. dollar to gold. And, it tied all currencies to the dollar. The Korean war was small potatoes. Pox Americana had to destroy the Bretton Woods agreement to get the Viet Nam war rolling.
The bankers absolutely hate the idea of a gold standard because it would put most of them out of business.
Trump threatens to put the war industries out of business. The war mongers threaten to get rid of Trump for such effrontery.

China has 10 times the steel producing capacity as America. At one time, the excess steel capacity in china was equal to the total steel capacity in America and Europe.
"China, the world’s No 1 steel producer, has said it would lay off millions of workers in the coal and steel sectors in a bid to reduce industrial overcapacity. However, coal mining and steel making were among the heavy industries that contributed to about 40 per cent of the Chinese economy in 2018."
So, China is going to spend billions producing more steel for more infrastructure.
NOPE, can't have layoffs.

"In the first quarter of 2019, global debt hit $246.5 trillion.
The first-quarter spending spree brought the debt pile to 318% of global GDP,
According to the World Bank, countries whose debt-to-GDP ratios are above 77% for long periods experience significant slowdowns in economic growth. Every percentage point above 77% knocks 1.7% off GDP, according to the study, via Investopedia. The United States’ current debt-to-GDP ratio is 106.5%.
In other words, the country is accumulating about the same amount of debt – currently $22 trillion – as its annual economic output. Each year another trillion dollars gets added to the national debt."

"As the graphics below show, every couple of hundred years there has been a change in the world currency, dating all the way back to the denarius of ancient Rome.
"“Gold is... the trust anchor for the financial system. If the whole system collapses, the gold stock provides a collateral to start over. Gold gives confidence in the power of the central bank's balance sheet.”"
China has quite a large anchor. Is America producing manufacturing gold via Bedini's process?
The rest of the article is an inti0Trump tirade..

Debt per capita.

10/21 Merkel says German multiculturalism has failed – Reuters

That dirty commie 8itch did her best to destroy Germany by bring in unvetted immigrants. Switzerland has Italian cantons,,, French cantons and, German cantons. They get along fine they do NOT have any Somali cantons.
Merkel won the Kalergi prize for the damage she has done.
Wiki, "The Kalergi plan (Italian: piano Kalergi), or sometimes called the Coudenhove-Kalergi Conspiracy, is a far-right, anti-semitic, white nationalist conspiracy theory, ..."
Yes, of course it is anti-semitic and white and a conspiracy.

"a plan to destroy the indigenous nations and peoples of Europe. What Kalergi called for was not only the destruction of European nation states but also the deliberate ethnocide of the indigenous, mostly Caucasian race of the European continent. This, he proposed, should be done through enforced mass migration to create an undifferentiated homogenous mass of serfs to be dominated by a wealthy self-electing elite. These are all Kalergi's crude and racialist words, not mine:"
You can see why this appeals to the master race.
Sweden Is Sliding Into Utter Chaos...and The Media Is Applauding

10/21 Will the Democratic party exist after 2020 election? – OffGuardian
10/22 Pompeo says Trump is ‘fully prepared’ for military action against Turkey – CNBC
Uh, Turkey is a member of NATO and, has 50 nukes. I suspect that Trump is trying to sow enough dissension that NATO is dismantled.
10/22 Is democracy a dying species? – Pat Buchanan
In Catalunya, the Guardia Civil is specifically beating up members of the press.
Trump - US Military Companies Against Bringing Troops Home From Syria

50% Of World's Banks Too Weak To Survive Downturn
Omniviolence Is Coming And World Isn't Ready

Spell check doesn't recognise Omniviolence. Are they going to beat up omnivores?
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Old 10-23-2019, 03:05 PM
Danny B Danny B is offline
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Misc headlines

Zero Hedge has an article titled, "The End of Fiat" It just isn't that simple. We must have an instrument for exchanging goods and services. The acceptance of fiat currencies is mandated by the State in a given currency domain. OUTSIDE this domain, it is a different story. China can't force anybody to accept Yuan. So, the crux of the problem is; a State can only force acceptance of it's notes & instruments inside it's domain.
You can see that the weak point is the sovereign bond market. The BIS mandates that ALL settlement between States is settled in gold. No State can force another State to accept ANY paper instrument for settlement. The use of paper currencies will continue within the borders of a given State.

The global reset that is fast approaching is a rejection of bonds, not currency. Armstrong claims that it will be a rejection of sovereign bonds. He seems to ignore the fact that corporate bonds have been over-issued enormously.
The rationale about gold from the BIS is logical. Many States are loading up on gold.
"This twenty-year agreement between central banks put in place a structure for their gold SALES. When the agreement was not renewed, many wondered if that was due to a desire of central banks to make gold PURCHASES instead.
Well, guess what? That appears to be exactly the case! For the first time since 1998—and the introduction of the euro currency!—the German Bundesbank has added gold to its reserves."

"With ECB mutiny and Deutsche Bank's rapid demise, fears are rising of a looming financial crisis, and with that, Germany has shown a renewed interest in gold.
As a reminder, September's outright purchase of the precious metal comes after Germany’s central bank, the Bundesbank, repatriated 583 tonnes, or $31 billion worth, of gold in 2017, years ahead of schedule."
Dumping treasuries and, buying gold.

Banks May Cut Ties With Facebook If Libra Is Launched: ING CEO
Crypto has been downvoted.
Boeing Revenue Tumbles 20% As Cash Burn Soars Most In 9 Years; 787 Production Throttled
"And yet the stock is up because management,miraculously, expects the 737 MAX to magically fly in the 4th quarter of this year. Good luck with that."
You aren't getting me on a plane that has cracks in the wings.
Trader Warns "Market Dysfunction Will Ultimately Have Its Limits"
40 U.S. States Do Not Have Money to Pay their Bills

10/23 Anxious Democratic establishment asks, ‘is there anybody else?’ – NY Times

10/23 How Democrats became the party of monopoly and corruption – RIA
10/23 Russia and China are buying gold, not bitcoin: Gabelli analyst – U Today

Apparently, they killed Tor.
10/23 US markets “roll over” on earnings and economic data at channel highs – TT
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Old 10-25-2019, 03:00 PM
Danny B Danny B is offline
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Shrinking food production, chaos everywhere

A lot of people have claimed that climate change is just bogus news. For a while, Armstrong went along with that idea. As the weather extremes get more prevalent and pronounced, he has changed his tune.
"The new EU Agriculture Commissioner has publicly stated that Europe loses 1,000 farms per day. He acknowledged that the EU is losing 400,000 farms per year. However, crop and livestock production in Europe is projected to decline and may be completely abandoned Europe’s southern and Mediterranean regions due to the increased negative impacts of climate change, according to a European Environment Agency (EEA)."
How is that for a turnaround?

"The study says that adapting to climate change must be made a top priority for the European Union’s agriculture sector if it is to improve resilience to extreme events like droughts, heat waves, and floods. But the obsession with Climate Change in Europe which is destroying its economy and now its ability to even grow food many are concerned will lead to starvation once again"
Then, he seems to contradict himself; "The nonsense of Climate Change seems to be poised to accomplish what it is designed to do – reduce the population."
You can bet that; when the fall in food production gets more exposure in mainstream news, there will be quite a panic.
10/25 Meet the lender that turned US farms into vortex of defaults and lawsuits – ZH

In the mortgage crisis, the banks were bailed out with several $trillions. Did they forgive interest payments that were in arrears with this new-found wealth?
"During the last Mortgaged Backed Security scandal which undermined the entire world economy, they created mortgage modifications which enabled millions of delinquent homeowners to avoid having their home foreclosed. Since 2007, it has been estimated that some 8.7 million permanent mortgage modifications were created. There are still over $800 billion of these bubble-era loans outstanding. How were they allowed to survive? For at least the past five years, between 75% and 95% of all mortgage modifications have taken the past interest due that was in default, included it in a capitalization of interest arrears, which means the resolution was never for the benefit of the homebuyer.

By adding the past-due interest, they have been paying interest on the interest. This failure to address the issue by some partial debt forgiveness with respect to prior interest means that the mortgage crisis has been simply postponed. "

"Barons did a good review of the problem. They came to the conclusion that re-defaults will be more likely as home values fail to get back to par and these people will just walk away. Indeed, the resolution should have been the forgiveness of past-due interest. Then the value of the homes would have been less impacted. But the bankers refused to accept the loss "
So, the taxpayer was on the hook for $trillions to the bankers but, the bankers refused to take any loss.
"Barrons reported that if we look at JPMorgan Chase (JPM) which holds the second-largest residential mortgage portfolio in the nation, we see in its second quarter of 2019 report, that almost $10 billion of modified loans (known as troubled debt restructuring)remained outstanding. Of this restructured debt, 43% were listed as having re-defaulted. Bank of America (BAC) has stated that 41% of its modified loans had re-defaulted."

Armstrong, "ANSWER: The bail-in laws were passed during the last crisis which was a popular response at that time because no bankers were ever punished for what they did in New York City. The problem with a bail-in is that the ramifications would be far worse than the Great Depression. You would destroy businesses that would then be unable to make payroll and the unemployment would be massive – far greater than the 25% high of the Great Depression."
"The hatred was directed at the New York Banks – and rightly so. Because the federal court in New York City has protected the bankers, they have actually undermined the entire country by their stupid actions."

Armstrong makes a very interesting point, " To the extent that FDIC exists, they would certainly honor that or it would be political suicide. However, the fine print is FDIC cover per person. Putting money at 5 different banks would seem to get around their limitations, but I would not count on that."
The FDIC is capitalized to about $2.4 billion but, it is "covering" accounts worth about $70 trillion.

European banks will be the first to go because they are unprofitable.

10/25 Banks stuck with over $2 billion of loans as investors cut risk – Bloomberg
10/25 Amazon clobbered after a miss on the bottom line and soft guidance – CNBC

No matter how big it gets, Amazon needs to make a profit.
10/25 Fed ups Wall Street bailout to $690 billion a week as media, Congress snooze – GATA
10/25 None dare call it QE4 & getting to the bottom of the repo mess – FSN

ALL of this is necessary to pay U.S. banks for defaulted interest rate swaps (derivatives) from failing Deutsche bank. If you were to graph the payouts from the FED, you would see that they are climbing FAST. Deutsche bank probably has another $20 trillion to go. Just how much can the FED print? Keep in mind that has stated that 41% of its modified loans had re-defaulted."
So, along with interest rate swaps defaulting, mortgage backed securities are defaulting.

10/24 Chicago’s death spiral: There’s no can left to kick – Mish
Kick a democrat instead
An economy is PEOPLE, not money.
10/24 Twitter loses a fifth of its market cap on huge guidance miss – Zero Hedge
10/24 Germany slides into recessionary abyss as employment falls – Zero Hedge
10/24 Fed to increase emergency repos to $120 billion, but hey, it’s not monetary – Mish
10/24 Peter Schiff: QE is monetary ‘roach motel’ for the Fed – Money And Markets

10/25 The Democratic party is dead, and everyone knows it but them – Helen of Destroy
10/25 Impeachers searching for new crimes – Gatestone Institute
10/25 Professor says grading, good grammar are examples of white supremacy – College Fix

10/24 Benghazi coverup discussed on emails to Clinton’s unsecured server – Epoch Times
10/24 Nancy Pelosi, Democrats produce more subpoenas than laws – Washington Times
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Old 10-26-2019, 02:54 AM
Danny B Danny B is offline
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Collapsing cooperation & economioc dis-integration

10/25 Warren and Sanders race to out-left each other — and moderates are terrified – Politico
10/25 Justice Dept launches criminal investigation into its own Russia probe – Hill
10/25 Senate Democrats tell Hillary Clinton: Time to move on – Politico

Rich Dem donors won't support Warren or Sanders. No wonder many are predicting the demise of the Dem party.

10/25 Inflation or deflation and the road ahead – Seeking Alpha
Nope, we will have inflation in necessities and deflation in the price of luxuries.
10/25 One of the world’s largest oil companies just ditched the dollar – Oil Price
Not smart, the dollar will continue to go up for some time to come. The Euro is on it's deathbed. The Yen is nothing to cheer about. The Russian Rouble is very solid. The Russian GOV has reduced State debt to zero.
10/24 Wages in Venezuela are as low as $3 a month as hyperinflation continues – ZH
Venezuela built a big romance with socialism. Notice that all socialist States eventually build walls and fences to keep the people from escaping. Millions of people have abandoned Venezuela.
Slavery is; work without wages.
Socialism is; work without any future.

10/25 S&P 500 heads for record close on earnings, trade-deal optimism – CNBC
10/25 Wall Street firms record best first-half profit in a decade – Reuters

The money renters are doing great as long as the FED keeps pumping in liquidity.
10/25 Subprime auto giant’s loans souring at fastest clip since 2008 – Bloomberg
Sub-prime never went away. It got shoved into the broom closet. Wages never recovered so, the broom closet is going critical.
10/25 How France gets away with breaking EU rules on its budget deficit every year – MW
The French GOV spends 57% of the gdp and, has never been compliance with EU budgetary rules.

10/25 GDPNow forecast unchanged at 1.8% despite dismal economic data – Mish
We don't need no stinkin data.

Chicago Ranked Most Rat-Infested City In America For Fifth Consecutive Time
Well, at least they won't starve in the crash.
For anyone who cares about this ,kind of stuff, Cuba invented a rat killer that gives "rat salmonella" to rats,, ONLY.
'Millennial Millionaires' Banking On $68 Trillion 'Great Wealth Transfer' From Parents
Somebody has been vaping banana peels.
Vegas Casinos In Big Trouble - Many Venues Now Charging 'Service Fees' For Drinks
Do they charge for doobies?

'Chaos Map' Shows Murders, Violent Deaths Will Soar In 10 Yrs Due To Food And Water Shortages
Armstrong reports that America will hit it's lowest point in 2032.
Don't Get Caught Without A Gun When The SHTF
Some people just don't understand a "Mexican standoff"
Bundestag Lawmakers Want US Troops And Nukes Completely Out Of Germany
Germany wants to end the occupation and garrisoning.
'Brink Of Collapse' - Hong Kong Businesses Struggle To Survive Amid Violent Protests
No wonder so many people there want to leave. China is going to make a big mess of things.

UK Women Resorting To 'Survival Sex' To Put Food On The Table Because Of Universal Credit Failure
As we get closer to the default cascade, you're going to hear that term a lot more.,,,Universal Credit Failure
Panic Mode' Run On Lebanon's Banks Feared After 7-Day Closure Amid Protests
UK Slammed For 'under-enforcement' Of Corruption Laws As New Report Identifies £325 BILLION In 'suspect' Cash
NOTHING new there.
Boeing Backlash Begins - Spirit Airlines Orders 100 New Airbus Planes
Boeing outsourced design work to $7 an hour Indians. The plane is cracking at the wing boxes. There is no fix for something that basic.

Trump Education Official Quits, Says Govt Should Forgive 'Fundamentally Broken' Student Loans
So, does that mean that the FEDs PAY OFF all the student loans to all the bankers?

"If employment was indeed as strong as reported by government agencies, then social benefits would not be comprising a record high of 22% of real disposable incomes. Here is the breakdown:

40 million Americans on food stamps
An estimated 50% of the 330 million Americans in this country get at least one federal benefit, according to the Census Bureau.
An estimated 63 million get Social Security; 59.9 million get Medicare; 75 million get Medicaid; 5 million get housing subsidies; and 4 million get Veterans’ benefits."
"With 1/5 of incomes dependent on government transfers, it is not surprising that the economy continues to struggle as recycled tax dollars used for consumption purposes have virtually no impact on the overall economy. In 2018, households received $2.2 trillion in some form of government transfer payments"

"“The ‘gap’ between the ‘standard of living’ and real disposable incomes is shown below. Beginning in 1990, incomes alone were no longer able to meet the standard of living so consumers turned to debt to fill the ‘gap.’ However, following the ‘financial crisis,’ even the combined levels of income and debt no longer fill the gap. Currently, there is almost a $2654 annual deficit that cannot be filled.”"
Scary graph; https://realinvestmentadvice.com/wp-...g-3-101519.png


The automation genie can't be put back in the bottle. The State can't afford to absorb all the surplus workers because there are just too many. MMT would help but, it is hardly compatible with human nature.

This vid is a crosspost from another thread. The relevant part starts at the 5:00 minute mark.
Too many people are living in an echo chamber where they only hear people who agree with them. The middle ground is lost. The hatred just keeps growing. WE are in a downward spiral of dying cooperation.
Man is a very social animal but, he is also a tribal animal.
Here is a vid on the evolution of cooperation.

1,000 farms are closing in Europe every day. (Armstrong). The unfolding credit collapse will drive even more people out of business. As the economy worsens, WE will move our "trust horizons" ever closer until they only include our immediate family.
The family and clan is the original socialist unit. Anything bigger than that strains the idea that we should all work for the good of the collective. As we get poorer, the strain will get greater.
Igor Panarin predicted that America would break up into 6 zones. I doubt that. As food gets in short supply, there will be a disconnect between; people who do actual productive work and,,, paper-pushers and money-renters. All the credit instruments are a claim on the goods produced by the actual producers.
The lefties specialize in gender studies classes and,,, sexual harassment lawsuits.
California now mandates that all employees must take harassment awareness classes. You must respect all choices and, all pronouns.
The collapsing cooperation,,, collapsing food production,,, collapsing credit will all work against societal cooperation.

Suggested reading, Collapse of Complex Societies by Joseph A. Tainter
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Old 10-26-2019, 07:06 AM
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BroMikey BroMikey is online now
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Controlled Collapse

SHC coming fed reserve notes gone.


Last edited by BroMikey; 10-26-2019 at 07:32 AM.
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Old 10-27-2019, 05:38 PM
Danny B Danny B is offline
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MMT,,,, impossible to post

The lower loop of the economy needs to be re-capitalized. MMT looks to be the candidate selected. I need to copy a big article and, do insertions.

Modern Monetary Theory (MMT) is presented as a means to painlessly fund the large-scale infrastructure / alternative energy spending the nation desperate needs to rebuild and modernize.
Partially true.
While most people support the goal of useful fiscal stimulus (as opposed to paying people to dig holes and fill them), the question remains: Will MMT work as advertised?

Rather than dismiss it out of hand, I’m trying to approach the subject without ideological bias.
What Exactly Is MMT?

The basic idea of MMT (as I understand it) is that the economy is not running at 100% capacity–there is capital, equipment, people and resources which could be put to work to better society, and the chief impediment to making full use of our capacity is a lack of funding for projects that would benefit society.
Slightly true
In other words, the only thing standing in the way of broad-based, socially beneficial spending / progress is a lack of money (funding).
Weakly true
In the view of MMT advocates, a blindingly obvious source of funding is already available: the federal government can issue however much new currency it wants, and so the government could fund large-scale socially useful projects if the political will to do so was present.
Weakly true
We have to pause at this point and distinguish between borrowing money to fund projects, which is the current model, and issuing (printing) new currency.

In the current model, the federal government sells Treasury bonds and uses the proceeds to fund government spending. The Treasury pays interest on the bonds, and this mechanism — interest due on borrowed money — creates a “governor” on spending: as borrowing rises, so do interest payments, and as interest payments rise, this crimps other government spending.
The debt is now at $22 trillion and, the governor seems to have a spanner in the guts
The other mechanism in the current model is the central bank (Federal Reserve) can create currency out of thin air and buy Treasury bonds. This is a form of monetary stimulus, i.e. a way to inject new money into the financial system.
Yes, the financial system ONLY
When the central bank creates money out of thin air to buy newly issued Treasury bonds, this is called “monetizing the debt”: in effect, the central bank creates money out of thin air and transfers it to the government by buying Treasury bonds.
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Old 10-27-2019, 05:39 PM
Danny B Danny B is offline
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continued,,, I hope

The basic idea of MMT (as I understand it) is that the economy is not running at 100% capacity–there is capital, equipment, people and resources which could be put to work to better society, and the chief impediment to making full use of our capacity is a lack of funding for projects that would benefit society.
Slightly true
In other words, the only thing standing in the way of broad-based, socially beneficial spending / progress is a lack of money (funding).
Weakly true
In the view of MMT advocates, a blindingly obvious source of funding is already available: the federal government can issue however much new currency it wants, and so the government could fund large-scale socially useful projects if the political will to do so was present.
Weakly true
We have to pause at this point and distinguish between borrowing money to fund projects, which is the current model, and issuing (printing) new currency.

In the current model, the federal government sells Treasury bonds and uses the proceeds to fund government spending. The Treasury pays interest on the bonds, and this mechanism — interest due on borrowed money — creates a “governor” on spending: as borrowing rises, so do interest payments, and as interest payments rise, this crimps other government spending.
The debt is now at $22 trillion and, the governor seems to have a spanner in the guts
The other mechanism in the current model is the central bank (Federal Reserve) can create currency out of thin air and buy Treasury bonds. This is a form of monetary stimulus, i.e. a way to inject new money into the financial system.
Yes, the financial system ONLY
When the central bank creates money out of thin air to buy newly issued Treasury bonds, this is called “monetizing the debt”: in effect, the central bank creates money out of thin air and transfers it to the government by buying Treasury bonds.

The basic idea of MMT (as I understand it) bypasses both paying interest on newly issued money and the artifice of central bank monetization: instead, the Treasury issues new currency directly.
Fairly true
This removes the “governor” of interest payments, freeing the Treasury to issue cost-free currency in virtually unlimited quantities.
The Arguments Against MMT

Various historical studies have concluded that hyperinflation does not occur when governments must pay interest on their debt; True, it brings defaultthe danger with rising interest and debt is default, not hyperinflation.
Happens every time.
Hyperinflation arises when the supply of goods and services — the output of the economy — remains roughly the same while the supply of currency skyrockets. As money increases but the sum of goods and services available for purchase remains flat, the value of existing money declines accordingly.
Patently false. . Both productivity and consumption are crashing, NOT remaining flat.
If the supply of money in an economy is $1 billion, each unit of currency buys X (the purchasing power of each unit of currency). If the money supply is doubled without any expansion in the consumers’ pool of goods and services, the purchasing power of each unit of currency falls in half. This reduction in the purchasing power of each unit of currency is called inflation.
Once again, the worldwide supply of goods would be falling drastically if it weren't for the FED money flowing into the upper loop.
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Old 10-27-2019, 05:41 PM
Danny B Danny B is offline
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Governments facing soaring demands and limited tax revenues are naturally tempted to meet these demands with “free” new currency, since the political and financial pain caused by skyrocketing taxes leads to governments being tossed from power.
Keep in mind that these "soaring demands" are greatly tied to Social security. SS was robbed by being forced to invest in GOV securities that paid almost nothing
This temptation explains the regular occurrence of hyperinflation and debt default, as the temptation to over-borrow and pile up interest payments leads to governments defaulting on their debt. In both cases — hyperinflation and debt default — there’s a currency/ governance/ financial crisis that upends the status quo.

This is one common objection to MMT: the freedom to issue new currency is difficult to limit, as there will always be more demands for government spending. Without some “governor” to limit the issuance of new currency to align with the expansion of goods and services, then governments tend to issue new currency far in excess of what the real economy is creating. This generates inflation, which impoverishes everyone using the currency.

MMT advocates claim that since MMT generates goods and services, it won’t generate inflation. But as noted earlier, rebuilding a bridge doesn’t actually create any new goods and services, or increase productivity: it generates wages and consumes materials and energy. Since it doesn’t generate more consumable goods and services, the expansion of wages and demand for materials will drive prices higher.

The core difficulty here is that the democratic political process is intrinsically skewed to short-term, politically expedient dynamics: politicians focus by necessity on winning re-election, and they will naturally approve new issuance of currency and new spending to placate the demands of constituents, lobbyists and campaign donors.

I honestly don’t see any intrinsic limit on political expediency. Politicians need to be forced to say, “I know your need is legitimate, but the money’s simply not there.” Without some real-world limit on the issuance of new money, money will be issued in surplus because the issuance isn’t an economic process, it’s a political process.

This is a fatal flaw in MMT. Relying on politicians to impose limits on their own desire to win re-election is to deny human nature.

A second concern is the entire notion of “slack” in the economy — untapped capacity. Have you noticed the “help wanted” signs in every Home Depot and many other retail outlets and restaurants? We read about millions of people who aren’t working, but if they wanted to work, or had to work, why are there so many unfilled positions? The answers are complex: the wage being offered isn’t sufficient incentive, the unemployed don’t have the requisite skills, etc.

In other words, in some important ways, the economy appears to be very close to full capacity. New programs such as The New Green Deal will basically be poaching experienced workers from existing projects, driving up wages (good for workers) which can generate a wage-price spiral (bad for everyone who can’t demand higher incomes).

My third concern: as someone with 45 years of construction experience, I am keenly aware that the vast majority of the infrastructure and New Green Deal spending many people see as socially beneficial requires skilled labor. Rebuilding bridges, electrical grids, etc. all require highly specialized labor. Installing solar arrays also requires trained workers with physical stamina.
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Old 10-27-2019, 05:50 PM
Danny B Danny B is offline
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Cont,,, maybe

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The process of training a large new workforce is time-consuming and expensive, and doesn’t necessarily generate new goods and services. In other words, it’s inherently inflationary as it puts new money into the economy but doesn’t increase the goods and services — at least until the newly trained workforce starts generating goods and services.

My fourth concern is related: ultimately, “wealth” (as measured in new goods and services generated by capital and labor) is generated by increasing productivity, via investment in greater efficiencies.

Much of the spending people want — repairing bridges, supplanting natural gas electrical generation with solar or wind, and so on — are not necessarily increasing productivity: the repaired bridge carries the same number of vehicles as it did before, so there is no increase in productivity.

In other words, efficiency and productivity are core dynamics, yet the MMT process is fundamentally political, and politics has little interest in efficiency or productivity. It is, as noted above, politically expedient, with a default setting to put off tough decisions into the future.

In the private sector, return on capital and the productivity of labor and processes are the core dynamics. These rationalize decisions to prioritize efficient use of capital, labor and resources. Absent this rationalization, resources can be squandered for politically expedient reasons. In other words, capital, resources and labor can be mal-invested, which brings up the opportunity cost: all the capital, labor and resources squandered on “bridges to nowhere” and other pork-barrel projects are no longer available for truly productive use.

The key question here is: How do we harness our intrinsically scarce capital, labor and resources to increase productivity and socially/ecologically beneficial investments in a sustainable way?

MMT’s diagnosis is that a lack of currency is the primary problem. The MMT solution assumes the new currency can be efficiently invested within the existing political system without disrupting the increasingly precarious existing financial system.

While the appeal of MMT is self-evident, it seems to me that both the financial and political systems are broken in ways that MMT, no matter how it’s managed, cannot fix.

The problem is we’re misallocating capital, resources and labor on a vast scale. That’s the problem. Adding more currency and capacity/”growth” doesn’t fix this problem, it actually makes it worse.

If we look around at the trillions of dollars in recently issued currency floating around the world looking for a yield, the trillions poured into asset bubbles that only benefit the few at the top, the billions of gallons of fuel wasted in traffic jams and other consequences of “endless growth on a finite planet”, the gargantuan waste of capital, resources and labor squandered in maintaining a “growth at any cost” Landfill Economy of mindless consumption, regardless of consequences, it’s hard not to see MMT as a “green” Band-Aid for a profoundly broken, wasteful, unsustainable system.

MMT leaves the existing status quo essentially untouched and adds a new layer of newly issued currency and spending, and a new layer of “growth” and consumption, consumption that no matter how socially beneficial is still an additional burden on the planet.

In effect, MMT is another attempt to preserve a dysfunctional status quo by adding another layer of newly issued currency and “growth.” More “growth,” even the sort envisioned as “Green,” is simply adding to a destructive system. What’s needed is a radical reduction in consumption and a diversion from a consumerist Landfill Economy to one driven by incentives other than “more of everything” in the name of “growth.”

As longtime readers know, I see a new system of private-sector currency, DeGrowth and decentralization and the institutionalization of a more sustainable (i.e. less perverse and destructive) set of incentives as the only set of solutions that can fix what’s broken in the current socio-economic model.

But that doesn’t mean MMT won’t be tried, as the three engines of “growth” over the past 20 years — soaring debt, financialization and globalization — all falter.
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Old 10-27-2019, 07:19 PM
Danny B Danny B is offline
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Pervasive moral decay,, stock market decline

That was last night's post. Even if it said that it was posted, it didn't show up this morning. It is a long post and, that might have been part of the problem. Just the same, why would "It" tell me that it was unable to connect to the internet?

Douglas MacArthur, “History fails to record a single precedent in which nations subject to moral decay have not passed into political and economic decline. There has been either a spiritual awakening to overcome the moral lapse, or a progressive deterioration leading to ultimate national disaster.”
Davos Group;
"We must re-moralize globalization
The greatest danger is the loss of trust in presidents, Prime ministers, in political parties, in international organizations, in banking systems, in multinational corporations, in democracy itself"

Protests rage around the world – but what comes next ...
https://www.theguardian.com › world › 2019 › oct › protests-rage-around-th...
A world on fire: Here are all the major protests happening ...

“If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the ... the people of all property until their children wake up homeless on the continent their Fathers conquered"

There you have it. Rockefeller said that the internet shouldn't have been invented. The dissemination of information is too too rapid, too targeted, too pervasive.
How Hong Kong protests are inspiring movements worldwide

From blocking airports to using encrypted messaging apps, the tactics used by anti-government demonstrators in Hong Kong have been increasingly adopted by protesters in places like Indonesia and Catalonia.

Add in Chile, Lebanon, et al.

MacArthur wrote about morality. Morality left the world stage and, has been replaced by surveillance. The decay and corruption has touched the police, the courts, the politicians and, everything in between. Everyone marvelled at the honesty of Ron Paul because they have come to expect politicians to be corrupt.

The greed and immorality of the bankers inspired them to look for, AND support politicians that they felt could be corrupted,,, or blackmailed. They have been quite successful,
The bankers unwittingly brought their own (hopefully) destruction. As they robbed the masses, the masses refused to reproduce. The bankers privatized their gains and, socialized their losses. We now live in a world with crashing demographics.

"Since 2007, US federal debt has risen 150% while annual US births (legal and otherwise) have fallen almost 14%. Said otherwise, over the dozen years since 2007, federal debt has increased by $13.8 trillion while 5.2 million fewer births have occurred over the same period than the Census projected."
Births vs debt, https://static.seekingalpha.com/uplo...9409741313.png
".and as of 2019, every child born a citizen of the US (regardless their parents status) is liable for a ludicrous $6.2 million in federal debt. And this is just a fraction of the actual liability that is owed, if even faster rising unfunded liabilities were included."
"To repeat, since 2007, total births have declined almost 14% versus a 150% increase in federal debt"

Armstrong predicts a crash in sovereign debt. Currently, FED GOV is printing an acknowledged $120 billion a day. It remains to be seen just how much longer that can go on. The Davos group worried about a loss of trust in GOV. That, of course, gets back to confidence. The FED isn't actually printing money. They are printing confidence.
Armstrong predicted the stock market to rise enormously,,, mostly from foreign capital inflows. This just doesn't seem to be happening.

"There remains zero evidence that markets can sustain new highs as all highs in the timespan between 2018 and 2019 have been sold and any new marginal highs have been selling opportunities in the same way that dips have been buying opportunities.
Volumes have completely collapsed. While shrinking volumes are a common aspect during rallies (as are increasing volumes during sell-offs), this here is not your daddy’s market. $SPY average daily volume has shrunk throughout the years and now averages around 73M shares a day.

Not this week. Volumes collapsed to the lowest volume week ever
"Data. Let’s not beat around the bush, but this rally, all rallies, continue on multiple expansion. Retail sales? Missed. Industrial Production? Missed. Durable goods? Missed. Home sales? Missed. Consumer confidence? Missed."
"Have you noticed how all gains are driven by magic gap ups and then nothing but tight ranges void of any real price discovery?"
There's an election coming.
"And so perhaps it’s no accident that on Thursday they upped their $75B facility to $120B, dropped over $134B in total liquidity on that day and magical markets print new highs on the next day as another $77B in liquidity rolled in. "
All of this news is centered on the stock market but, the bond market is the more improtant venue.

10/27 The big squeeze on banks is back and badder than ever! – Great Recession
The banking sector is too crowded but, Bernanke figured he could save all of them.
10/27 China’s downturn threatens global growth – MoneyWeek
No doubt, Trump really put the torch to them.
10/26 Confused Fed maintains course and continues QE “as necessary” – Birch Gold
Necessary being the operative word.
10/26 Can Europe be saved from demographic doom? – American Conservative
No problem . Just ship in more Somali garbage. There is a very good reason that Somalia is such a messed up place,,, the people.
10/26 Bitcoin price back over $10k following 36% gains on the day – Coin Telegraph
Gold is desired for it's stability.
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Old 10-28-2019, 03:05 PM
Danny B Danny B is offline
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No earnings in the stock market,,, headlines

Bonds are the important market BUT, the stock market is easier to manipulate. The FED pumped in money and, the companies used it to buy-back their stock. This cut back on shares outstanding and, made earnings-per-share rise. Total earnings depend on actual business and consumption,,, which is falling.
" Arguments against a recession next year rely on the still-strong US consumer remaining resilient. The counterargument is that the consumer depends on Corporate America for a paycheck, and Corporate America is hurting, with the average company’s earnings shrinking by 5-10% year-to-date."
Yeah, resilient,,, with $15 trillion in consumer debt.
" Arguments against a recession next year rely on the still-strong US consumer remaining resilient. The counterargument is that the consumer depends on Corporate America for a paycheck, and Corporate America is hurting, with the average company’s earnings shrinking by 5-10% year-to-date."
Buybacks caused al most ALL the rise in the stock market. The buybacks were made possible by all that cheap credit. Profitability is falling and, corporate debt is about $15 trillion. Interest rates MUST be cut to allow corporate debt to be serviced just a little bit longer. The rate cut also cuts the profitability of the funds. Somebody is always going to get gored.

10/28 What if the Fed stops cutting rates? – Daily Gold
Don't ask, don't tell.
10/28 The loan market is freezing up again: “there is growing risk of credit accidents” – ZH
$120 billion a day in new liquidity and,,,, we're freezing.
10/27 Signs of stress in leveraged credit are ‘numerous and multiplying,’ warns B of A – MW
10/27 Enter the selling zone 2.0 – Global Macro Monitor
NO, NO ! don't sell stocks will go up forever.

10/28 After recovery to $10,000, bitcoin ‘should hit $100,000 in 2021’ – Forbes
10/27 In a world of false economies, bitcoin offers an alternative – SA Crypto
Yeah, a false store of value
10/27 30% and counting: bitcoin exterminates traditional asset classes – Crypto Briefing
I'm sure that the State will just let this go on unhindered.

10/27 Tulsi Gabbard vexes leaders in her party much as Ron Paul did in his – Newsday
10/28 Tulsi nails it on national TV… US regime-change wars – Strategic Culture

"They" may have decided that it is time to rein in imperial over reach and that she is the only honest person left in the field.
10/27 Gabbard ends congressional reelection campaign to focus on presidential bid – NA
The donors probably whispered in her ear.

10/26 MIT engineers develop a new way to remove carbon dioxide from air – MIT
What could be simpler than planting a tree?
What happens if you remove TOO MUCH CO2?

10/26 In 2030, our protein will come from a lab—and we’ll all be better off for it – Singularity
So, we'll get rid of the beef, poultry and fishing industries. That might cause some dislocation. Where will the feedstocks come from.

10/28 Hezbollah warns of chaos, civil war in Lebanon – Israel Hayom
That might be problematic.
10/27 Over 1 million Chileans take to the streets to demand political reform – CD
Sorry, you're out of luck.
10/22 China and USA locked in a virtual cyberwar alongside trade disagreements – Scroll
10/21 China talks up cybertech prowess in face of US rivalry – Yahoo

Historically, the U.S. DOD got hit by 3 million attacks every day.
10/24 Edward Snowden searched the CIA’s networks for proof that aliens exist – CNN
He also failed to find any mention of chemtrails.
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Old 10-29-2019, 04:15 AM
Danny B Danny B is offline
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It isn't going to end well for China,,,, bubble dimensions,,, headlines

China is the new face of economic miracles. They are going to surpass America and, rule the world. They have BIG pans and, great ambitions.
List of rebellions in China - Wikipedia https://en.wikipedia.org
China moved <300 million poor, self-sufficient peasants to the cities and, put them to work. They put them to work alright but, the jobs were temporary. The took the wages of their best customers and, lost that business. They built cities that they couldn't afford to live in. The government is now desperate to keep these, formerly self-sufficient peasants from starvation.

"22% of urban Chinese consumers would permanently leave China of they had the means to do so. This rises to 36% of high income earners."
it is a pretty good article on conditions in China.
The Chinese leaders have instituted their draconian, Orwellian social credit system to maintain control. China is riding a credit tiger that they can't get off of. They have almost nothing of a safety net. They long ago ran out of legitimate work for their people. All they can do is to continue to build bridges to nowhere.
They were hoping to develop the whole Eastern world as a consumer base. They are stealing water from about 3 billion people in their area so, it is doubtful that their Belt & Road initiative will work out.

"An alternative investment strategy is now necessary because the Fed decided around 20 years ago that recessions could be abrogated and it had the tools to repeal the business cycle. It kept pushing interest rates lower every time there was either a downturn in the economy or a sharp selloff in stocks. This is exactly what happened in the wake of the NASDAQ bubble of 2000 and the Housing Crash of 2008. Indeed, Greenspan started this practice in 1987; but its roots were planted in 1971 when the US left the gold standard completely."
"it should be noted that National Home prices have increased for 91 months in a row and have advanced 5.9% y/y—far above the pace of income growth. The sad truth is that the Fed, in full cooperation with Wall Street, has once again made home prices unaffordable for many first-time buyers."
Maybe so, but, prices are affordable to the speculators who get free money.

Total market cap of equities as a share of GDP is now 145%. That ratio was 100% in 2007, and has averaged just 80% since 1971.
$15 trillion worth of sovereign debt with a negative yield
500 billion euros of junk bonds in Europe with a negative yield
$5.4 trillion of BBB, Junk and Leveraged Loans in the US, there was only $1.5 trillion of sub-prime mortgage debt in 2007
The US Treasury yields 1.7% but its average is above 6%
US deficits breached above $1 trillion in fiscal 2019 and the CBO projects deficits will be $1.2 trillion each year for the next decade but that assumes interest rates never normalize and the economy never has a recession. If rates rise and/or we have a recession, the annual deficit could approach 15% of GDP. Adding to our already-huge national debt of $22.6 trillion.
Total global debt has soared to $250 trillion up over $70 trillion from 2008 and is now a record 330% of GDP
US Non-financial debt has soared from $33 trillion in 2007 to $53 trillion in 2019
US National Debt was $9 trillion in 2007 and has skyrocketed to $23 trillion today
Business debt has jumped by nearly 60% since12 years ago

Here is a picture of the Vredefort crater with a ringwall diameter of about 190 miles.
There is going to be something similar in New York when this all blows up.

10/28 Central bankers aren’t sure what to believe anymore – Zero Hedge
10/28 Italian bonds stumble as cracks start showing in political calm – Bloomberg
You can count on Italian bonds falling fast.
10/28 S&P 500 jumps to record high on strong earnings, trade-deal progress – CNBC
BOTH lies.

Argentina recently elected a Peronist.
10/28 Argentina central bank bleeds reserves ahead of election, peso crumbles – Reute
10/28 Argentina cuts dollar purchase limit sharply as forex reserves tumble – Reuters

The people want to buy dollars to avoid the inevitable fall in the value of the peso.
10/28 Argentina’s Peronists sweep back into power as Macri ousted – Reuters
Argentina Imposes Draconian Capital Controls As Peronists Return To Power After Macri Defeat
10/28 Merkel’s leadership under threat as political extremes in Germany gain support – CNBC

AfD simply wants German for the Germans,, or at least, Europeans.
10/28 Brexit: European leaders agree extension to 31 January – BBC
Armstrong, "The critical factor is when the GENERAL public loses confidence in the government. That is more likely to take place AFTER the turn in the business cycle in January 18, 2020."

We Now Have Mass Public Unrest In France, Spain, Algeria, Iraq, Lebanon, Egypt, Hong Kong, Venezuela,Chile, Ecuador And Bolivia
Mexican Mothers Discover Dozens Of Bodies Buried In Mass Grave Near Resort Town South Of AZ Border
Authorities Brace For Worldwide Protein Shortage After 'Quarter Of ALL Earth's Pigs Wiped Out
Innovation BIS 2025 - A Stepping Stone Towards An Economic 'New World Order'
Won't work.
Russia, China & India To Set Up Alternative To SWIFT Payment System
Might work.
Lebanon Bans Removal Of Large Dollar Sums From Country Amid Bank Run 'Panic'
No mention of Euros??
Pentagon's Map Of Afghanistan - An Eldorado Of Mineral Wealth And Natural Resources
And opium, Don't forget the opium.

"1) Stocks are more overvalued today than they were in 1929

Back in 1929, the price/earnings ratio of the average company trading on the New York Stock Exchange was about 15."
"In 2010, Coca Cola generated $5.06 in profit (earnings) per share. In 2018, just $1.50.

And Coca Cola’s total equity, i.e. the ‘net worth’ of the business, was $31 billion in 2010. By 2018, equity had fallen to $19 billion.

So over the past eight years, Coca Cola has lost nearly 40% of its equity, sales are down, and per-share earnings have fallen by 70%.

Clearly the company is in far worse shape today than it was eight years ago.
Yet Coke’s share price has nearly DOUBLED in that period."
"2) Stocks fell by nearly 90% in 1929… and it took decades to recover.

The ‘crash’ wasn’t isolated to Black Monday.

From the peak in September 1929, stocks ultimately fell nearly 90% over the next three years. The Dow bottomed out in 1932 at just 42 points.

42 is lower than where the Dow was trading in 1885… so the crash wiped out DECADES of growth"
apan’s stock market peaked in late 1989 with its Nikkei index reaching nearly 39,000.

Within a few years the Nikkei had lost half of its value and would ultimately fall by 80%.

Even today, thirty years later, the Nikkei index is still 40% below its all-time high.
3) Adjusted for inflation, stocks have returned just 1.7% per year since 1929.
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Old 10-29-2019, 02:59 PM
Danny B Danny B is offline
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Melting banks

"JPMorgan Chase is the largest bank in the United States with $1.6 trillion in deposits from more than 5,000 retail bank branches spread across the country."
"According to the filings that JPMorgan Chase makes annually with the Securities and Exchange Commission (SEC), since 2013 JPMorgan Chase has spent $77 billion buying back its own stock. That includes the whopping $17.01 billion it has spent in just the first nine months of this year buying back its stock.

But here’s the shocking news. According to its SEC filings, JPMorgan Chase is partly using Federally insured deposits made by moms and pops across the country in its more than 5,000 branches to prop up its share price with buybacks. "
What could possibly go wrong?

Quietly, U.S. and Foreign Banks Have Increased their Borrowings from U.S. Money Market Funds
Fed Ups Its Wall Street Bailout to $690 Billion a Week as Media Snoozes
Elizabeth Warren Demands Repo Loan Answers as NY Fed Repo Data Disappears
News Articles on the Fed’s Secret Trillions in Loans to Wall Street During the Last Crisis Have Been Purged from Bloomberg News
Two Investment Banks Eligible for Today’s Fed Loans Got Over $2 Trillion from the NY Fed in the Last Crisis
Where Are the Hundreds of Billions in Loans from the Fed Actually Going on Wall Street? Fed’s Powell Admits a Bigger Bailout for Wall Street Is Coming; Fed’s Balance Sheet Ballooned by $176 Billion Since September
There’s Nothing Normal About the Fed Pumping Hundreds of Billions Weekly to Unnamed Banks on Wall Street: “Somebody’s Got a Problem”
Derivative Risks Rising: Sell-Off in Interconnected Mega Banks and Insurers

Wall Street’s Mega Banks Report Earnings Today, Capping the Craziest Banking Era in U.S. History
Two Investment Banks Eligible for Today’s Fed Loans Got Over $2 Trillion from the NY Fed in the Last Crisis
Fed Says It Will Offer $310 Billion More in Term Loans to Wall Street as Over 68,000 Job Cuts Planned at Mega Banks
Wall Street Bank Stocks Closed in a Sea of Red Yesterday as Fed Pumps in Another $105 Billion of Liquidity
The Fed’s “Emergency” Actions this Week Were Dated 48 Days Earlier
In the WeWork IPO, the Money Trails End Up at JPMorgan’s Doorstep
Here’s the Proof the Federal Government Is Overtly Lying to the Public about Wall Street’s Derivatives

OK, you get the idea. With the escape from the restrictions of the gold standard, monetary expansion took off. The FED heads just started printing and, never looked back. The money-renters just started pumping in liquidity ad infinitum. Every natural pullback was met with ever-greater liquidity creation. The business was just too crowded. It was also to integrated. Anything that happened in London or NYC or Beijing reverberated around the world.
The economy is supported by printing rather than consumption and wages. The merry-goround is now moving too fast for the bankers to get off. Printing is all they know. Just the same, the banking system is in a terminal phase.
"Bank Stocks Closed in a Sea of Red "
J.P. Morgan is taking depositors money to prop up it's stock..
"Fed Ups Its Wall Street Bailout to $690 Billion a Week"
The failure of derivatives, primarily from Deutsche bank is sucking out $trillions from various counter-parties. The suction hose has been connected directly to the FED.
How much longer can this go on??? I have no idea.

10/29 The end of accountable government is close at hand – Paul Craig Roberts
"Accountable government" has always been an oxymoron. It is only accountable to the money powers.
10/28 We now have mass public unrest in France, Spain, Algeria, Iraq, Lebanon … – ZH
The net has made the linkage between the rich power mongers & the State that much more obvious.

Lebanon 'days' away from economic collapse if no solution to ...
https://www.msn.com › en-us › news › world › ar-AAJtaDB
9 hours ago -
10/29 Why is unemployment declining while inflation is below target? – Forbes
10/29 US trade partners need to stimulate economies – CNBC

U.S. GOV spends 20% of the GDP trying to uphold employment.
"Headline Unemployment at a 50-Year Low of 3.52%"
96 million NOT in the labor force.
THAT explains why inflation is below target.
10/29 Consumer cracks emerge as banks say everything looks fine – Bloomberg
Sure, everything looks fine as long as they receive $100 billion a day.
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Old 10-30-2019, 04:17 AM
Danny B Danny B is offline
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Lots of headlines

Is California's Second Biggest Utility On Verge Of Collapse Next: Edison Plunges After Saying It May Be Responsible For Deadly 2018 Fire
First PG&E, now Edison. Buy popcorn AND a generator.
Boeing Backlash: India’s IndiGo To Order 300 Jets From Airbus
"IndiGo "is close to placing a near-record order for over 300 Airbus A320neos." "
That is going to suck in Seattle,
India threatens to ground Airbus jets over failure of its US Made engines

Has California Lost 'The Mandate Of Heaven'?
"Beneath the surface, pressures are building and resilience is eroding, and when the tipping point is reached the transition will not be gradual and controllable, it will be non-linear and uncontrollable..."
Keep your BOB packed.

BOJ To Start Lending ETF Shares To Prevent Market Freeze
"The BOJ is on track to surpass the world's largest pension fund, the Government Pension Investment Fund, as the top holder of Tokyo-listed stocks as early as next year."
That will go down in the history books.
Cyberattack Shuts Down India's Largest Nuclear Power Plant
"Kudankulam Plant was hit by a cyberattack and authorities were already alerted of the threat months in advance"
Not Even The Algos Have Any Idea What's Going On Any More
FOMC Preview: If The Fed Doesn't Cut, Brace For Impact; If The Fed Cuts... Then What?

U.S. Shale Braces For Brutal Earnings Season

No doubt.
Armstrong; "The IEA report that was released today suggest that unless global growth recovers, there will not be a sufficient demand for the current production and a large surplus will be built"
"Senator Lindsey Graham stated that this strategy will “deny Assad and Iran a monetary windfall,” further adding, “We can also use some of the revenues from future oil sales to pay for our military commitment in Syria.” However, some question whether the international community will consider this a war crime. Others question the true worth of Syria’s oil reserves. According to the 2018 International Energy Statistics survey, Syria ranked #75 in total petroleum and other liquids production."

Leaving Illinois: "Does Anybody Care About People Like Us?"
"“We’re talking about the bag tax, a progressive tax, a rain tax, a mileage tax, a TV tax, a beer and tobacco tax, a farm tax, a parking tax, a car trade-in tax..."
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Old 10-31-2019, 03:04 PM
Danny B Danny B is offline
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The emerging problem that must not be named

The headlines are dancing around the real problem.
10/31 Derivatives’ danger may have gotten too big for central banks, Rickards says – GATA
10/31 What has freaked out the US Fed? – Technical Traders
10/31 Treasury prepares another debt deluge as Fed wades into market – Bloomberg
10/31 How the student debt complex is crushing the middle class – Time
10/30 Fed cuts interest rates, but indicates a pause is ahead – CNBC
10/30 Fed expected to cut rates, but Powell discussion could rattle markets – CNBC

The pile of crashing derivatives grows ever-larger. Wall Street is demanding further rate cuts. Further rate cuts crash more derivatives,, mostly interest rate swaps.
10/31 The toxic bubble of technical debt threatening America – Atlantic
Yes, "technical debt", a euphemism for derivatives.
'It Won't Be Sufficient' - Wall St Reacts To Powell's Final Hawkish 'Insurance Cut'

The Guardian expects, MMT, UBI and, chaos.
10/31 Rosy investment assumptions drive up pension liabilities – Bond Buyer
Until recently, the public pension funds refused to believe that 7% returns were a thing of the past. If they were more realistic, they would have to demand enormous contributions from current workers to maintain payouts in the future.
10/31 A budget deficit looming, L.A. agencies asked to save $100m – Los Angeles Times
10/30 Global economy faces ‘scary situation’ – Dalio warns – GoldCore

Ray Dalio is the bond king. He has automated ALL trading and, doesn't use humans for decisions. Possibly, it has occurred to him that the economy does not work if people don't have jobs.

10/31 ECB will miss its inflation goal – ABN Amro – FX Street
10/29 China’s monetary policy is being hamstrung by inflation surge – Bloomberg

The ECB just isn't trying hard enough.
10/31 Why you should embrace a minimalist retirement – MarketWatch
Because you won't have any money after the pension funds blow up
10/30 Spanish solar developer plans 3.3 gigawatts of subsidy-free PV farms – REW
Murray Energy - America's Largest Private Coal Miner Files For Bankruptcy

Israeli Diplomatic Missions Worldwide Suspend Work Over Conflict With Finance Ministry
The GOV won't reimburse the diplomats for expenses that do not have a receipt. The diplomats have gone on strike worldwide. Coke and prostitutes are a necessity of the job.
Dying Populations, Not Climate Changes,Are The Biggest Threat To Western Civilization
You Are The Slave Property Of A Corporation Called The United States Of America - Must Watch
Well, the slaves have gone on a reproductive strike.
Details on the bad news.
The Boom Turns Into A Bust - Here are 14 Signs That The U.S. Economy Is Steadily Weakening
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Old 11-01-2019, 04:05 AM
Danny B Danny B is offline
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Socialism in the long view

Jewish Encyclopedia
The unedited full-text of the 1906 Jewish Encyclopedia

By: Joseph Jacobs, Isaac A. Hourwich
Theory of civil polity which advocates public collective ownership, production, and distribution. Jews have been prominently identified with the modern Socialist movement from its very inception. "
"The essence of Marx's theory, which won for it the name "scientific socialism," as distinguished from the "Utopian socialism" of his precursors, is the principle of social evolution. While Utopian socialism sets before mankind an ethical ideal of a perfect society, and hopes for its ultimate acceptance by virtue of its inherent beauty, Marx maintains that the industrial evolution of capitalistic society leads toward socialism, regardless of its ethical merits, and that, moreover, this industrial process molds ethical standards in consonance with the industrial tendencies of the time. "
The corporatocracy has NO ethical standards

"Marxism, Socialism, or Communism in practice are nothing but state-capitalism and rule by a privileged minority, exercising despotic and total control over a majority having virtually no property or legal rights. As is discussed elsewhere herein, Talmudic Judaism is the progenitor of modem Communism and Marxist collectivism as it is now applied to a billion or more of the world’s population."
"Marx did not actually originate anything, but merely “streamlined” Talmudism for Gentile consumption. The Socialist” system he conceived merely brings about a practical means for a state dominated and controlled through a Jewish minority to rule by absolute dictatorship over everything and everyone, a concept which has been carried out very successfully in those countries of the World brought thus far under Marxist dictatorship."
Dilling X: The Jews and Marxism — Socialism — Communism

Socialism attempts (on the face) to bring everybody up. In practice, it brings everybody to a low level. Socialists don't plan to kill motivation but, that is the result. How would Howard Huges do in a socialist country? Socialism kills hope for a better future. It imagines that all people are equal. It allows no reward for people who ARE better than average. Since it disallows ownership of private property, It erases motivation to save or work for a better future.
This is one facet where socialism differs from fascism.
Fascism and wage-slavery allow some advancement. Socialism does not,,,, unless you chose your parents very carefully.
All socialist States have to erect some kind of barrier to keep their motivated people from escaping. Many years ago, I went to East Germany and Cuba. Both of them had lots of buildings falling down. Socialism is a dead end but "they" keep trying to force it on various populations.

All the FED heads for decades have been jews. All the FED heads have been in agreement that we must have 2% price inflation,,, for stability. 6% monetary inflation was necessary to reach 2% price inflation.
FED head, Paul Volker, a Presbyterian, said that there is NO justification for a target of 2% price inflation.
This constant 6% monetary inflation was directly responsible for the great riches doled out to the money renters.

"the 2018 book Collusion: How Central Bankers Rigged the World by Nomi Prins, a former Wall Street executive who saw the light and is now informing on the crimes of Western imperialism-capitalism. Prins gives a thorough and chronological account of central banker doings in key areas"
"The essence of her thesis is that the US orchestrated collusion among the central bankers of many of the G20 economies and the Eurozone primarily in order to save busted US banks, and then also to maintain the 1%-enriching neoliberal policies of QE, ZIRP and no-strings attached bailouts."
"This acknowledgement that – as long as there are taxes and printed money – the government must always, inescapably be the biggest actor is actually the very foundation of socialism, "

"Young US adults increasingly favor socialism after capitalism’s broken promises. But US already has socialism – for the rich"
" Nearly three-quarters of young Americans are likely to vote for a socialist candidate, a new poll reveals, suggesting capitalism has lost its appeal. But is it really capitalism when government funds all but the working class?

Young Americans view socialism much more favorably than their elders, with 70 percent likely to vote for a socialist, according to a poll released on Monday by the Victims of Communism Memorial Foundation. The survey also found that 50 percent of millennials (aged 23 to 38) have an unfavorable view of capitalism. Only Generation Z (aged 16 to 22) was more anti-capitalist – 51 percent view the economic system negatively."

"The report found that support for communism increased by 36 percent from 2018’s numbers as capitalism continues to go out of style. It’s likely due to a shift in higher education, where Marxist ideology is taught favorably.

“The historical amnesia about the dangers of communism and socialism is on full display in this year’s report,” said Marion Smith, Executive Director of the Victims of Communism Memorial Foundation.

“When we don’t educate our youngest generations about the historical truth of 100 million victims murdered at the hands of communist regimes over the past century, we shouldn’t be surprised at their willingness to embrace Marxist ideas."

Here is a list of Rothschild owned banks. I'm not so sure that it is accurate but, they do have a lot of control.

78 members of congress hold israeli passports.
Most of the FED heads have been jews.
Financial deregulation and legislative capture by bankers are directly responsible for the unfolding crash.
As legislative capture has impoverished the people, they leap to embrace socialism.
Our schools are infested with people who teach very favorably about socialism.
Is this all just co-incidence?
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Old 11-01-2019, 02:39 PM
Danny B Danny B is offline
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UBI, chaos and, morality

Our current world is a mix of ISMS. We are plagued by fascism, thinly disguised as crony-capitalism. Most of the uber-wealthy received their wealth from legislative advantage,,, certainly not hard work or brains. Many have abused this legislative advantage beyond bounds. Madoff and Milken come to mind. The Central Bankers have repeatedly come to the rescue of the private banks. After all, the CBs are owned by the private banks. The enormous monetary inflation required to rescues failing derivatives is having a very bad effect on the rest of the economy. There is chaos worldwide.

At the same time, we have emerging socialism to hold social unrest at bay. It isn't working very well lately. The corruption is too powerful and, too entrenched. 44 million in America receive direct government assistance. 23 million "work" for the government. Think TSA.
What happens when the sovereign debt crash unfolds? We have spent the last 150 years inventing labor-saving devices while, at the same time, trying to keep full employment.

Trump railed against GOV spending when he was a private citizen. Once he got in office, it was a different story. HUGE increases in military spending. The Pentagon is the largest employer in the world. The wars are a big jobs program. Same with defence contractors.
The American economy revolves around wars and war industries.
America Has Been at War 93% of the Time 222 out of 239 Years – Since 1776

Argentina, though a bountiful country has a major food crisis. There are anti-establishment riots in many countries.
When recession comes, expect central banks to rewrite the rules – Nouriel Roubini
There is no "playbook" that takes into account automation and birth control AND the search engine.

Just how will the rules be revised to take all of this into account? For the present moment, it looks like universal basic income will be brought to the fore.
The corporatocracy brought us economic neoliberalism. A whole new framework for screwing the actual workers.
PEPE ESCOBAR: The Age of Anger Exploding in Serial Geysers
"The presidential election in Argentina was no less than a game-changer and a graphic lesson for the whole Global South. It pitted, in a nutshell, the people versus neoliberalism. The people won – with new President Alberto Fernandez and former President Cristina Fernández de Kirchner (CFK) as his VP.

Neoliberalism was represented by Mauricio Macri: a marketing product, former millionaire playboy, president of football legends Boca Juniors, fanatic of New Age superstitions, and CEO obsessed with spending cuts, who was unanimously sold by Western mainstream media as the new paradigm of a post-modern, efficient politician."

Luiz Inacio Lula da Silva, better known as Lula, president of Brazil ... Lula quit school after the fourth grade. He came up with a UBI program that the bankers didn't like but, they couldn't stop. He gave everybody a few bucks and, this brought them some confidence. They spent the money and, it lifted the economy. Here is an article about the ongoing efforts at implementing UBI around the world.

The chaos is growing worldwide. The PTB are lamenting the fact that the masses are losing confidence in Government and banking and,,, I suspect that UBI will be rolled out to avoid worldwide revolution.
Crony capitalism was made possible by a complete lack of morality in the legislature. Power corrupts so, I don't expect morality to make a return to the halls of power.

Last edited by Danny B; 11-01-2019 at 02:41 PM. Reason: duhh
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Old 11-02-2019, 03:28 AM
Danny B Danny B is offline
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Disintegrating debt

First, a cross-post about Kunstler.


Armstrong; "Only during the final wave does the government start to unravel in a Public Wave. In a Private Wave, stock markets outperform bond markets. Here, people lose their faith in government rapidly. By the half-way mark in a Private Wave, the government becomes aggressive because it sees it is losing control of society. This is why governments will become much more aggressive during the last part of this wave into 2032."
Armstrong writes about the rotation out of public debt and, into private debt. I don't agree.

"Let us further assume that McKinsey in their annual banking survey of 2019 are correct when they effectively say that 60% of the world’s banks are consuming their capital before a credit crisis. "
ZIRP eats up everything.
"And note the IMF recently warned that $19 trillion in corporate debt is a systemic timebomb, and that collateralised loan obligations and direct exposure to junk held by the US commercial banks is approximately equal to the sum of their equity."
So, how will private debt survive unscathed?

Keiser Report. Max reports that emerging unicorns fire up a BIG IPO,,,,,, and then, The principals in the unicorn pull their money out,,,, sometimes just before the IPO goes public.
11/01 Bank run in rural China tests faith in thousands of lenders – Bloomberg
MAGA, baby.
11/01 Wild day in China dollar bonds sees record drops – Bloomberg
11/01 What will stocks do when “consensual hallucination” ends? – Wolf Street
11/01 US stock bubble has already popped, Peter Schiff tells Boom Bust – RT

11/01 Fiscal policy “flop”: US gov’t spent hundreds of billions, and GDP slowed – ZH
Guaranteed that it would have dropped much more.

11/01 Japan must either open up to foreigners or face economic collapse – Forbes
11/01 Japan is in decline — its massive debt is no model to follow – Daily Caller

"In 2013, the Japanese government recorded relative poverty rates of 16%. This was the highest on record. Another study showed that 1 out of 3 Japanese women ages 20-64 and living alone were living in poverty. Japan has some of the highest rates of child poverty in the developed world, according to a Unicef report."
No kidding,,, quite a mystery why the population in Japan is falling.

11/01 Fed has shovel, digs bigger hole – MarketWatch
11/01 What will stocks do when “consensual hallucination” ends? – Wolf Street

Do NOT worry. You will learn the answer to this question before long.
11/01 US stock bubble has already popped, Peter Schiff tells Boom Bust – RT
11/01 Negative interest rates are essential for Swiss economy, central bank says – GATA

Somebody spiked their chocolate with airplane glue.
11/01 US Army major: Trump’s antiwar speech deserved a better reception – ZH
50 million Americans depend on war.
11/01 Ending wars – John Stossel, Creators Syndicate
He must be some kind of anarchist.
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Old 11-03-2019, 04:50 AM
Danny B Danny B is offline
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Phantom wealth everywhere,,, Real wealth hard to find

“We're Firing Trillion Watt Lasers into the Sky”: Top Scientist Admits to Weather Modification on CBS.

Officials in the US Navy and Air Force recently made clear that they hope to use the lasers they’re developing in the name of anti-ballistic missile defense to shoot down cruise missiles as well.
11/02 Global anxieties soar as China’s military might roars, Japan says – Zero Hedge
They were all smiles when the posed for pictures on the Belt & Road initiative.
11/02 Electric scooters set to transform the $7 trillion mobility market – Oil Price
They will be a boon to the emergency rooms at the same time.
Central Banks & war.

11/02 Fed on ‘thin ice’ by confidently pausing interest rate cuts, investors say – MW
The FED claims to be handing out only $690 billion a week. This rescues failing derivatives. An interest rate cut wouldn't have any beneficial effect on derivatives.
11/02 Investors reassess the hope-and-hype business model, Grubhub plunges – CNBC
The dumb money isn't near as dumb as it was 10 years ago.
11/02 The Federal Reserve is a barbarous relic – Acting Man
Trump is working on the problem.

South Africa Facing Worst Drought In 1,000 Yrs
In a couple of months, they will be facing the worst flood in 1000 years.

FED chairman Powell;
"From the Chairman’s prepared statement: “Inflation continues to run below our symmetric 2% objective. Over the 12 months through August, total PCE inflation was 1.4% and core inflation was 1.8%… We are mindful that continued below-target inflation could lead to an unwelcome downward slide in long-term inflation expectations.”

Powell: “…The reason why we raised interest rates is because, generally, is because we see inflation as moving up or in danger of moving up significantly, and we really don’t see that now… So, we really don’t see that risk, and inflation expectations have also kind of moved down and sideways both surveys and market based over the course of this, of really the recent months. And… we think that inflation expectations are very important in driving actual inflation, and we’re strongly committed to achieving our 2% inflation objective on a symmetric basis. We think it’s essential that we do that"

Feces-for-brains bankers demand 2% price inflation to bring price stability. All it really does is to finance those closest to the money spigot..
" We’re also, as part of our review, looking at potential innovations, changes to the way we think about things, changes to the framework, that would lead us, that would be more supportive of achieving inflation on… a symmetric 2% basis over time… We’re in the middle of thinking about ways that we can make that symmetric 2% inflation objective more credible by achieving symmetric 2% inflation. And, it comes down to using your policy tools to achieve 2% inflation, and that is the thing that must happen for credibility in this area.”"
Credit Bubble Bulletin : Weekly Commentary: Music to the Market

"2,000 years ago, in Plutarch’s time, it was already ‘old wisdom’ that unhealthy wealth imbalances ended badly for society:" "Even those near the top of the wealth pyramid don’t aspire to live surrounded by an impoverished underclass, forced to live hiding behind their fortifications and guards, hoping the unrest of the masses doesn’t get any worse."
" believe in having a strong and vibrant middle class – something the US Federal Reserve is working to destroy with every intervention. It has been a shameless champion of the entrenched ultra-rich and powerful; at the expense of everyone else. "

"The Three Types Of Wealth

Going further, we can break real wealth into two discrete forms. Primary wealth is the wealth of the land and its functioning ecosystems. It is clear air, fresh water, thick ore bodies, and rich soils:
Secondary wealth is a finished form produced from raw materials. It is primary wealth brought to market. It is fresh produce on the grocery shelf, cut lumber (or even a fully-constructed building), and rolled steel in giant coils:
Tertiary wealth, on the other hand, is not actually “real”. But most people mistake it as a comprehensive representation of “wealth”.

Similar to money, tertiary wealth is merely a claim on primary and/or secondary wealth. A share of General Electic a stock-based claim on the company’s means of production.

And debt (and bonds) is a future claim on money. And money, as we know, is a claim on real things."
"It’s All About The Amount Of Claims

Why is it relevant to parse these distinctions so carefully?

Because there has to be a balance between the claims and the wealth."
"The Wealth Transfer

With the near-inevitability of MMT (a.k.a “free money for everybody”) the wealth transfer will kick into a higher and more obvious gear when MMT arrives (as Charles Hugh Smith brilliantly summarized for us recently).

The basic problem is that money is not real wealth. But newly printed money has real purchasing power. What happens when purchasing power is increased but more real wealth is not auto-magically created at the same time?

Easy: the claims on real stuff become diluted. Every unit of money in circulation has a tiny fragment of purchasing power removed from it when a new unit of purchasing power is created ‘out of nothing."
"Which is why we predict more printing and borrowing. Enormous new piles of money and credit will be issued, likely at ever-lower rates of interest.

The world economy is performing sluggishly and appears to be sickening further. This is due to too much debt. But no matter, the central banker’s response is automatic: The world needs more credit at even cheaper prices!"
"The only remaining questions are whether the wealth transfer comes about in the form of an inflationary destruction, like in Venezuela today, or as a deflationary bust more in the fashion of Greece recently (which lost its ports, roads, and utilities to foreign banks and creditors as a consequence of running up too much debt it couldn’t repay)."

ZH, Demographics & Money Creation... Why Fed Monetization Is Just Getting Warmed-Up
"The weaker the potential growth of demand, the stronger the rationale for the Fed, central banks, and federal governments to delay the inevitable..."
The lack of demand has nothing to do with how much money is in the system.
"Fundamentally Rigged" - Runaway Algos Spark Chaos, Crackdown In World's Most Important Futures Market
"... the chaotic explosion in quotes was caused by a standoff between two firms whose algorithms entered a loop, racing each other to be the market’s biggest player..."

Gundlach: "Intense" Downturn Means "Helicopter Money" Is Coming
""...[MMT] will be part of the transition to a new system – an attempt to forestall the unhappiness by giving money to people..."
Carney's Green Crypto Currency: Prelude To A Financial Meltdown
"...today’s technocrats are hungry for a new fascist solution to the problem of sovereign nation states...We know what almost happened in Germany when the last project funded by the Bank of England failed in 1945..."
Ooou, they used the "F" word.
It looks to be a battle between liberal technocrats and, socialists.
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Old 11-04-2019, 03:34 AM
Danny B Danny B is offline
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Crashing Marxism and, rising socialism,,,liqiudity trap

I'll start with Armstrong;
“As we approach the start of BIG BANG (2015.75), which is 26 years from the first crack in Marxism 1989 first observed in China followed by the fall of the Berlin Wall within months, ever since the world has been drastically altered economically. The collapse of the Soviet Union in 1991 was part of this process. That was not a CIA plot, but the unravelling of the Marxist Era. We should witness dramatic political and economic changes going into 2020.05. The bottom of the ECM 2020.05 will also be 31.4 years from the start of the fall of Communism that should culminate in the final stages of the collapse of Socialism. This is part of the cause of BIG BANG that will become focused most intensely between 2015.75 and 2020.05.”

OK, he writes about the fall of Marxism in much of the world. What does that imply for the rise of socialism in the West?
"Socialism is making a major play to win the 2020 elections here in the States. We have an obvious coup unfolding against Trump carried out by the CIA, FBI, and NSA. This target is 31.4 years from the START of the fall of Communism. It is the START of this trend in Western Society NOT THE END!!!!!!! The 2020 election in the USA will be the most contentious since the 1960s and we should expect a rise in civil unrest. It will turn into a major political battle at the peak of the next wave – 2024."

I think the collapse in the confidence of governments has been indeed the pronounced characteristic of this 4.3 year part of the wave. The European and Japanese Bond markets have been destroyed. Both governments are on life support. I think we have some very serious sovereign debt problems and we are looking at that on the state and municipal levels. "
Critical point, "to help keep the banks and governments in play."

“A liquidity trap is a situation described in Keynesian economics in which injections of cash into the private banking system by a central bank fail to lower interest rates and hence fail to stimulate economic growth. A liquidity trap is caused when people hoard cash because they expect an adverse event such as deflation, insufficient aggregate demand, or war. Signature characteristics of a liquidity trap are short-term interest rates that are near zero and fluctuations in the monetary base that fail to translate into fluctuations in general price levels.”

Berkshire Becomes Global Cash King: $128BN
Farm bankruptcies;
Also, 400,000 farms have gone out of business in Europe in the last year,,,11 million in the last 11 years. Subsidised small farms in Europe can'\t compete with subsidised large farms in America.
Freight Railroad Traffic Plunged 8% At The End Of October
What happened to the pre-Christmas inventory buildup?
Morgan Stanley Asks "What Returns Can Long-Run Investors Expect In This Market", Offers Frightning Answer
True but, greed keeps everybody in the markets. "Picking up dimes in front of a steam roller"
Ken Fisher Taking Out "Women Friendly" Ads As Redemptions Near $4 Billion

11/02 Warren’s $20 trillion health plan ‘will cause down-ballot damage’ – Politico
She plans to reduce military spending by $800 billion.
CS Monitor, "
"America’s biggest — and only major — jobs program is the U.S. military.
Over 1,400,000 Americans are now on active duty; another 833,000 are in the reserves, many full time. Another 1,600,000 Americans work in companies that supply the military with everything from weapons to utensils."
"Gates can’t even end useless weapons programs. That’s because they’re covert jobs programs that employ thousands.

He wants to stop production of the C-17 cargo jet he says is no longer needed. But it keeps 4,000 people working at Boeing’s Long Beach assembly plant and 30,000 others at Boeing suppliers strategically located in 40 states. So despite Gates’s protests the Senate has approved ten new orders."
40 States, hum. Strange spread.

11/03 The Fed’s policy is like swatting flies with nuclear weapons – Forbes
Those aren't flies. It is a pile of bad derivatives the size of RODAN.
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Old 11-04-2019, 03:59 AM
Danny B Danny B is offline
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Socialism, mental health & UBI

Mike King writes about we have been screwed by the Central Bank and income tax.
This is what I wrote back to him.
John Maynard Keynes was a brilliant guy. At the Versailles conference where Germany was punished, he foretold that the victors had laid the foundation for the next war.
Keynes also said that; within 80 years, we would be so rich that we would only have to work 15 hours a week. This is verbotten.
First, because we wouldn't be generating enough wealth for the parasites. Second, because mankind stagnates with too much free time.
George Jetson only works one hour a day and 2 days a week.
Shumpeter came up with the plan of creative destruction. Wars fill the bill on that. War spending keeps us producing without actually accumulating riches. Keynes said that we needed continuous war to keep the economy stimulated.
Read the CAFR one site by Walter Burien.
CAFR1 Home Page

GOV admits to having something like $230 trillion stashed away. They collect this at the non-16th amendment level. Taxes, fines and fees. The University of California system reports that it has $91 billion stashed away. Yet, they scream that they have to raise tuition.
The endless bites out of our wallets (and purses) is what keeps us working.
The Report From Iron Mountain says that war is how we organize society. Peace must be avoided at all costs.
So, yes, the CBs rob us blind by way of currency inflation. The State robs us blind by way of taxes, fines and fees.
Post Hiroshima, it became too dangerous to have full scale kinetic war. The cold war was invented to pursue creative destruction without actually killing the biosphere.
It stimulated the economy enormously,,,, a la Keynes.
It also served the purpose of uniting us against a common (perceived) enemy.
A family and a clan is a natural socialist, genetic group. A nation State is an attempt to stretch the umbrella of clan protection over a disparate group that is NOT a genetic group.
Mutual prosperity and / or mutual threat are used as the glue to hold an un-natural group together.

At the upper levels of GOV, there is an appreciation that we must keep working to avoid the stagnation seen in the ghettos, Abo reserves, Indian reservations, and, Alaskan natives who get oil money.
You must contrast this with the wholesale destruction of job niches brought on by automation. It is only going to get worse because there is NO cure for efficiency.
The coming collapse is a collapse of State debt because, it tried to support everybody who had lost their job niche.

Armstrong predicts the collapse of European socialism. Socialism will be gone but, the people will still be there. Socialism is the firewall between Darwinian pressures and ,,,people who just can't compete in the private labor market. With the rise in automation, the included numbers are just astronomical. What will happen to public sector employment when public finance has collapsed?

What happens to mental health when everyone is receiving UBI?
What happens when men are cast adrift?
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Old 11-04-2019, 03:47 PM
Danny B Danny B is offline
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Melt ups,,,, followed by melt downs

At one time, the banks were given a couple $trillion in excess reserves that were kept on deposit at the FED,,, collecting interest. Welfare for banks. Now, the FED is having to inject as much as $600 billion a week. The total money injected or, on standby in the 2008 crash was $27 trillion. Various monetary authorities said that the whole system was at the edge of an abyss. Seems like the abyss has re-appeared.
Max Keiser;
“If these banks, like JP Morgan or Deutsche Bank, are unable to settle trades because they don’t have the cash...then when the end of the quarter comes they’re gonna have to, by law, if there is the rule of law anymore, it’s an open question, announce that they’re insolvent. And therefore, they’re gonna set off the cascade... and [it] will be the continuation of the 2008 crisis, but much much worse,”
" The Morgan Report, which covers economic news.He explained that the banks are required to have a certain reserve of cash on hand and if they don’t, they have to borrow overnight to meet this requirement. They may go to other banks to make their books square, but if other lenders turn them away, they have to ask the Fed as a last resort.

“That’s kind of telling that [in] the banking system at large, no bank would loan to me, because I don’t trust the bank that needs the money…So it puts some caution into the system,”
So, what is the obvious solution??
11/04 Fed’s plan for bailing out Wall Street banks: let them overdraft their accounts – WSOP

11/04 Warning: credit delinquencies to skyrocket in Q4 – Technical Traders
Just imagine what happens when a 30--1 credit leverage goes into reverse. The banks will need a LOT more cash..
Chicago headed for insolvency, get the hell out now – Mish
Panic early or, NO SALE of your RE.
11/04 Harry Dent: absolutely massive real estate crash coming to China – Market Sanity
64 million empty housing units with BAD drywall rotting away. Dozens of empty cities that nobody wants.

11/04 Will “post-truth” politics be capitalism’s undoing? – Salon
The criminal is crony capitalism.
11/04 More airports consider going off the grid to avoid power outages – CNBC
The airlines and airports have proven to be especially vulnerable to solar storms.

This is off-topic BUT, a very important subject.
Scientists Are Working on a Pill to Erase Memories
"Full results of the study have been submitted to a journal, according to the National Post, however, the Post also reports that Dr. Brunet has been hesitant to discuss the results due to the sheer speed and success of erasing specific memories.:"
Thanks to the pharmaceutical drug pushers, there are millions of people who are addicted and can NEVER forget the rush,,, the high.

42,000 Plaintiffs Sue Bayer Over Glyphosate
The Trump effect,,, law & order
Keystone Pipeline Shut Down After Leaking Oil In ND
The original protests were centered on the contractor who had a history of shoddy work and, numerous leaks.

Zero Hedge;
Africa's Socialism Is Keeping It Poor
The undeniable fact remains that Africa has the lowest living standard of all continents after Antarctica...

American help;
Pentagon Expands Permanent Africa Presence With $110M Drone Base In Niger
Armed drones going operational against regional ISIS factions...
Russian help;
Russia to bring back to life Nigeria’s major steel plant project, abandoned for decades

Hedge Funds Invested In PG&E Lose $4.1 Billion In Just Four Trading Days
NIRP in Europe;
Lagarde: "We Should Be Happier To Have A Job Than To Have Savings"
"Isn’t it true that ultimately we have done the right thing to act in favor of jobs and of growth rather than the protection of savers?"

We Have Melt-Up: Futures Jump To New All Time High On "Trade Optimism"
Gravity will return eventually.
Blain: "It Feels We've Reached The End Of Something"
"Time has been called on this particular era of irrational market exuberance."
Dow Futures Surge To Record Highs On Yet Another "US-China Trade Deal Close" Headline
It\s called, "hopium"
Four Reasons Why The "Trade Deal" With China Remains A Farce
Aramco IPO Valuation Baffles Bankers With Trillion Dollar Wildcard
...somewhere between $1.22 trillion and $2.3 trillion...

MbS has approved a sale of part of the national oil company. Saudi Arabia is desperate for cash. They have even opened the country up to tourism. It is hard to say just what the IPO is worth because Saudi has never been honest about oil reserves. Also, with a big fall in the economy, oil demand will fall even further.
11/02 Alliant to build 1 gigawatt of solar power in Wisconsin – JT
11/02 Rise of renewables may see off oil firms decades earlier than they think – Guardian
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Old 11-06-2019, 03:49 PM
Danny B Danny B is offline
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The inception and, result of the welfare State

The warfare-State started when the war industries got a war started on the Korean peninsula. It grew enormously with Viet Nam.
When did the welfare state get started?
"Johnson and his staff lost no time after Kennedy’s murder in designing their vast governmental expansion, to be financed by America’s post-World War II abundance of wealth and prosperity. “I am a Roosevelt New Dealer,” declared Johnson the day after the assassination. “Kennedy was a little too conservative to suit my taste.”

When Johnson came to office, Americans overwhelmingly trusted the federal government to expand benignly across the continent. World War II had generated widespread confidence in what Washington could achieve. The Johnson administration leveraged that confidence by radically altering the constitutional limits on legislation, regulation, and spending. The Johnson administration shifted the governance of the country from a constitutional republic rooted largely in localism to an opaque, vast regulatory state rooted inside the Beltway."
"What the president outlined was a cornucopia of new programs and funding mechanisms that would seamlessly seep into almost every facet of life "
"Johnson altered forever the relationship between the average citizen and the national government.

Just as the affluence and suburbanization of middle-class America was growing and expanding in ways that seemed boundless at the time, Johnson’s vision was to create an attendant kaleidoscopic role for Washington. Power shifted inexorably from the people to Washington’s managerial class, a growing blob of a bureaucracy."
" The poor would no longer be poor."
"Ironically, Democratic liberals expressed the most initial misgivings about Johnson’s vision. But they soon climbed aboard what quickly became a governmental gravy train of federal spending built upon the central warning of the Great Society: that if the government was not expanded to address these perceived problems, national chaos would ensue,"

LBJ went a long way towards destroying the nuclear family. The post 1971 bankers went a long way towards the same thing. Their constant monetary inflation caused constant price inflation. This price inflation always outran wage inflation. A family just couldn't survive on one paycheck. Women were dragged out of the household and, into the labor force.
This great "liberation " of women had enormous destructive effects on the children.
The number one job of the parents is; to make their children feel important. Without that, most children are crushed by insecurity for the rest of their lives.
8 In 10 Millennials Believe They Aren't 'Good Enough' ...Massive Inferiority Complex

The result;
The destruction of the nuclear family has been especially bad in the black community.
Boys without fathers never learn to be men. They never learn to control their impulses.
The democrats have a long history of destroying the family by "helping" it.
Women in government do their part too. They naturally want to coddle people. The societal changes brought on by the welfare State won't easily be reversed.
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Old 11-06-2019, 04:05 PM
Danny B Danny B is offline
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Mental health and, the economy

The Overton Window is a structure that attempts to limit discussion to a set of reasonable subjects. It seems to be getting quite a bit of expansion lately.
11,000 Experts Propose Final Solution To Global Warming Just Kill Billions Of People
Conservative Party Hopeful Called For The Culling Of Poor People
The emerging discussion that must not be named; getting rid of the Central Bank.
Everybody knows that the State MUST collect taxes. Here is a vid produced by the IRS that proves this to be true.
For the younger generation, mental health is crashing. Suicide, addiction and anxiety are rising. They just don't see a good future for themselves. Unfortunately, things won't get better as automation eliminated even more job niches. Bummer.

The piss-poor solution from the state; grab more tax money to support more of the blob state.
11/06 The world has gone mad and the system is broken – Ray Dalio
Ray Dalio uses computers to do all the work.
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Old 11-08-2019, 12:47 AM
Danny B Danny B is offline
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Gold for the big guys

Tried all day to post something interesting. Blocked every time. I even cut it in half,,, no difference.
Edit STILL can't post my blurb on gold. It also got erased from my drafts folder. I have a copy only because I sent it to myself. Besides that, my computer shuts down spontaneously about 3 times a day.

Last edited by Danny B; 11-08-2019 at 04:32 AM.
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Old 11-08-2019, 05:13 AM
Danny B Danny B is offline
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Just headlines

Ron Paul said that we are soon to see the end of fiat currency AND the welfare-warfare State.
Don't hold your breath waiting. Fiat currency is here to stay.
What are the real reasons for declining productivity? – Mish
Declining demand
Corporate profits are worse than you think – Real Investment Advice
Wait a minute, "they" have to service $19 trillion in corporate debt.
"Firstly, note the Fed has managed to turn markets into a graveyard. Void of any pulse, void of any intra-day price discovery. Ever since the introduction of ‘not QE’ the character of markets has changed:"
"When yields collapsed this summer pension funds were forced to allocate to record levels into stocks. 47% allocation of assets into risk assets, the highest since 2007. Risk assets are again viewed as risk free."

11/08 The fools are rushing in again – Daily Reckoning
Yep, stocks are above their their 200 day moving average but, nobody wants to miss out on the next leg up.
11/08 Alasdair Macleod: plans for a global dystopia – GATA
Will that bring the "omniviolence" that somebody was writing about?
11/08 The economic crash so far: a look at the real numbers – Technical Trader.
NO. don't look!
11/08 Decline in profit margins and investment suggests recession due now – Mish
Buy more popcorn.

11/07 A return to sound money is the major threat to bitcoin, says Peter Schiff – BTC Mgr
That WILL happen just after we return to honest politicians.
Rense, 62% Of Trump Supporters Say There Is NOTHING He Could Do To Lose Their Support -
11/08 Donald Trump is all alone – Atlantic
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Old 11-09-2019, 05:04 AM
Danny B Danny B is offline
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Rickards,,,melting up or, melting down, it's all melting

Jim Rickards was the lead counsel when LTCM went bust when Russian bonds defaulted. He managed the unwinding of Long Term Capital Management when several big U.S. banks ponied up the money to save the system.
Jim Rickards was the top guy that the 16 U.S. intelligence agencies brought onboard when they want to use the war-game computers to predict the future of the U.S. economy.
Jim Rickards said that; in 2008, the world was only hours,,, or minutes from having every stock & bond market in the world shut down.. "Nothing was solved, all that happened was; the debt was lifted from private hands to government hands." "If things changed, they changed for the worse."
The Central bank bailed out Wall St. In the next crisis, who is going to bail out the Central Bank?"

Ron Paul is still in a downer mood.
Here is a good, concise vid on NIRP. It wipes out a LOT of people and, helps just a few.
Ice Age Farmer has been warning about losses in food production for quite a while.
Fed Admits $190 Billion PER DAY Injected Into Financial Markets! Who Gets the Fed Repo Money?
The Money GPS

The Economic Collapse Of China! $40 Trillion Dollar Dark Cloud Of Debt - China’s Yuan CRASH!
The shadow banking sector just ran WILD. Keep in mind that a lot of that liquidity went into foreign markets.
Vid, Fed chairman Jay Powell thinks wages could be much higher

"As the global synchronized slowdown intensifies, Taiwan is now warning if Beijing can't create a soft landing in its economy, the threat of a Chinese invasion would be on the horizon.

Taiwan's Foreign Minister Joseph Wu sounded the alarm in a Reuters interview on Wednesday, when he said, Chinese officials would likely invade self-ruled Taiwan to divert domestic economic pressures if a soft landing cannot be achieved. "
Sounds messy.
So, do you still think that the world isn't tribal?

PRIVATE BLOG – Gold for Nov 8th, 2019
PRIVATE BLOG – The Euro for Nov 8th, 2019

Armstrong favors nuke power. Frau Merkel is a trained physicist and, she took German off nuke power. I give her credit for that.
11/08 Wind and solar kill coal and nuclear on costs, says latest Lazard Report – RE
Global Debt Is Up To $188,000,000,000,000
Fed Warns Climate Change Is A Major Threat To The Economy

"I suggested the Fed, part of the deep state, was setting up President Trump to be another Herbert Hoover. The deep state wants the market to crash so they can crush capitalism and further consolidate federal government control."
"Pension funds and 401k’s are already in deep trouble. A sudden, major market drop would destroy much of the remaining wealth of all Americans. No president would be likely to survive that kind of catastrophe. Politicians of all flavors should fear citizens storming the castle."

"“The International Monetary Fund has presented us with a Gothic horror show. The world’s financial system is more stretched, unstable, and dangerous than it was on the eve of the Lehman crisis.

…. Even a moderate shock would cause company “debt-at-risk” – that is, where the debtors do not earn enough to cover interest payments – to spiral up to $19 trillion. This is a staggering 40 percent of corporate liabilities."
"The 9 largest banks hold a total of $228.72 trillion in derivatives – approximately 3 times the world economy. No government in the world has money for this bailout. (Emphasis mine)"
"“According to JPMorgan’s 10K, it has sold credit derivative protection on $177 billion of “subinvestment grade” i.e., junk credits."
THAT is where the $160 billion a week is going.
"The Fed’s dilemma is this. Are the banks willing to absorb mind-boggling losses to allow the market to crash for political reasons, hoping for another bailout? Will they continue with more QE, fueling bank profits while driving interest rates down?"

11/08 Blain: If yields rise any higher, the melt-up will quickly reverse – Zero Hedge
Print more confidence.
11/08 How Big Tech is dragging us towards the next financial crash – Guardian
The dragging is mutual.
Here is a convoluted article.
European Commission Warns Of Dire Future Unless Germany Issues Much More Debt
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Old 11-09-2019, 06:44 AM
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BroMikey BroMikey is online now
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