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  #1681  
Old 09-28-2016, 02:14 PM
Danny B Danny B is online now
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Growing realization of our big slide

“Banking today is like playing Russian roulette with someone else’s head,” one banker said. Review: Joris Luyendijk's 'Among the Bankers' - The Atlantic
9/28 WTO slashes global trade forecast by 39% since April – Mish The great slide.
9/28 Forget China – Japan’s economy is scarier – Standard
9/28 ‘Debt binge’ will implode world financial system – GATA

9/28 China debt could wreck the global economy – Daily Mail
9/28 Why a banking crisis in China seems unavoidable – Vox
9/28 “Now is the most treacherous time ever. I’ve never seen this before” – Zero Hedge
9/28 Federal Reserve note “dollar” is dying, but not next week – Money Metals Exchange
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  #1682  
Old 09-29-2016, 03:52 AM
Danny B Danny B is online now
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Bank stockholders and bondholders running away

Our neighbor to the north has their own problems; "The online survey of of 1,502 Canadians conducted between Sept. 6 and Sept. 12 also found 31 per cent are already not paying their bills on time" Canadians are just $200 away from being overwhelmed by debt, new survey finds | Financial Post
"This has put the system in an unstable equilibrium: on one hand, central bankers - as even they admit - need to hand over the growth impulse over to governments, yet on the other hand, they terrified of even the smallest change to the status quo as they know they may undo some 7 years of "wealth effect" creation overnight.
How much longer can this charade continue? "
"One of the key themes that have emerged in the past year is that, having loaded up their balance sheets with tens of trillions in various assets, central banks are "running out of road."
Bridgewater Calculates How Much Time Central Banks Have Left | Zero Hedge

"Draghi’s promises and in Merkel’s strength and in the willingness of all of them to do whatever it takes to protect bank bondholders and stockholders"....
The bondholders and stockholders are running scared; http://wolfstreet.com/wp-content/upl...-week-high.png
EU Banking Mayhem, One Bank at a Time, then All at Once | Wolf Street

"It’s believed that a major war writes off all debts, and the more “cannon fodder” of different nationalities you can bring into it- the more debt you can write off…"
US: The Mega-Bubble That’s Going to Go Bust | New Eastern Outlook

9/28 IMF warns central banks could lose deflation fight – Yahoo!
9/28 Euro “might start to unravel” if collapse of Deutsche Bank – GoldCore
9/28 You better get used to negative interest rates – Casey Research
You better get used to the death of banks, pension funds, hedge funds, insurance funds and retirement accounts.
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  #1683  
Old 09-29-2016, 03:07 PM
Danny B Danny B is online now
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China problems,,,, Deutsche problems

Here is a chart that shows global wealth creation vs debt. Keep in mind that "they" believe that money printing is wealth creation; http://financialrepressionauthority....f_Envelope.jpg
Financial Repression Authority

“I’d find it earth-shatteringly surprising if we don’t have a significant problem between now and China’s leadership change” in the fall of 2017 when the 19th Party Congress convenes, said Leland Miller, China Beige Book’s president."
"It?s A Lot More Negative Than People Think" - China Beige Book Issues Stark Warning About The Economy | Zero Hedge
China bet the farm on housing as the "best bet" for storage of wealth. Most people in China can't afford to buy these houses. Wang says that housing as a store-of-value is a very bad idea; China's Richest Man Says Mainland Real Estate Is The "Biggest Bubble In History" | Zero Hedge

Jim Willie claims that the FED is doing a LOT more printing than it reports. This graph shows that it "is" printing a LOT less than other CBs http://www.zerohedge.com/sites/defau...and%20more.jpg
The FED doesn't report that it is sending $ trillions up and down the financial food chain to rescue every potential defaulter. https://www.peakprosperity.com/blog/...s-being-served

Lotsa charts on Deutsche bank. Keep in mind that their derivative book is around $ 70 trillion. There can't realistically be a bankruptcy and resolution that doesn't wipe out many other institutions. http://www.bloomberg.com/news/articl...k-in-12-charts

The ECB says that they aren't at fault for the problems in German banks; http://www.zerohedge.com/news/2016-0...fault%E2%80%9D
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  #1684  
Old 09-30-2016, 01:01 AM
Danny B Danny B is online now
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Bogus plans from Bogus CBs

Draghi says that negative interest rates are helping everybody. The ECB just needs more time to make it all work out splendidly; Mario Draghi says everyone better off because of negative rates - Business Insider
"Notwithstanding the persistent growth shortfall, central bankers remain steadfast that their approach is working, by delivering what they call “mandate-compliant” outcomes. The Fed points to the sharp reduction of the US unemployment rate – from 10% in October 2009 to 4.9% today "
https://www.project-syndicate.org/co...-roach-2016-09
The Fed can’t be faulted for trying, argue the counter-factualists who insist that only unconventional monetary policies stood between the Great Recession and another Great Depression. The night is still young.

Freight is expected to crash from it's summer peak. Truck sales are crashing. https://mishtalk.com/2016/09/29/heav...from-year-ago/

The BOE talks about perpetual ZIRP. Bank Of England Governor Warns Of ZIRP/QE "In Perpetuity" | Zero Hedge
The IMF clearly knows that austerity is NOT the answer but, they are still forcing it on Greece; The planned destruction of Greece continues … | Bill Mitchell – billy blog

9/29 Negative interest rates threaten a new banking crisis – The Street
9/29 Negative interest rates have made everyone better off – Business Insider
9/29 Why ‘radioactive’ Deutsche Bank could go nuclear any time – Express
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  #1685  
Old 09-30-2016, 01:25 AM
Danny B Danny B is online now
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Henry George & Fred Harrison

There is much talk about how bad things are. There is much stupid speculation on how to fix the situation. ALL this talk and speculation is contingent on those in power holding on to all of their advantages.
There is another avenue that is well known; Social Credit.. This solution is generally offered as a solution financed by taxes and borrowing. That doesn't have a chance of a snowball in hell. Our Western economy is all built on the idea of unending growth. It can not exist with a static production level.
Sharia-compliant banking doesn't NOT depend on interest. The bank partners with the entrepreneur and takes a share of the profits rather than collecting interest. This is a more stable system.
The West has executed a "color revolution" in EVERY center of Islamic banking.
There is MUCH written about debt-free money and systems like WORGL.

The rich very much like their advantages. Warren Buffet said that his secretary pays more taxes than he does. How the IRS Helps the Rich Get Richer - Bloomberg

Henry George offered some interesting answers. Fred Harrison has taken up where George left off.
"Harrison warned that there would be a two-year explosive growth in prices and property speculation before the market imploded in the winter of 2007/08 with heavy damage to the financial markets. As shown by the 2008 subprime mortgage crisis, he was essentially correct on all points. His prediction that the problems with debt economics and scaling would contribute to a worldwide economic depression has been borne out.
He has been widely acclaimed as the only commentator to get the timing of the 2007 recession correct. Notably, he warned Gordon Brown as far back as 1997[6] that the UK economy would hit the peak of the cycle in 2007[2] – and turn down into a depression in 2010.

According to Harrison, economists erroneously "assume that the health of the property market depends upon the condition of the rest of the economy. In fact ... property is the key factor that shapes the business cycle, not the other way around."[8]

In 2009, Dirk Bezemer, a Professor of Economics at the University of Groningen in the Netherlands, pointed out that Fred Harrison was the first and earliest economist to have predicted the global financial crisis, as far back as 1997,
Both in the UK and worldwide, until 2008 most media commentators and economic theorists dubbed him the 'Prophet of Doom'[2] and his pragmatic approach was rebuffed in favour of mainstream assertions that the "new economy" was destined to sustain growth.[9] Some niche media outlets agreed with his thesis and continued to publish his work. His books are widely distributed. With the collapse of the US and UK banks in 2008, some elements of the media began to reconsider his ideas,[

In 2015, Harrison published the first of a trilogy of Handbooks on Humanity. He integrated cultural studies with economic theory to test hypotheses that seek to explain why governments persist with sub-optimal fiscal policies.[12] Harrison concludes that western ("neo-liberal") culture has been shaped by rent-seeking to deliver sub-optimum outcomes through tax policies that have the permanent effect of mal-distributing income and retarding economic growth.
https://en.wikipedia.org/wiki/Fred_H...n_%28author%29

https://www.youtube.com/watch?v=uG3MyE16WBQ

George; https://www.youtube.com/watch?v=VX5j7BOqoa8
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  #1686  
Old 09-30-2016, 02:18 PM
aljhoa aljhoa is offline
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Quote:
Originally Posted by Danny B View Post
What is a land patent on real estate?

United States Land Patents, 1788-2012



Al
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Last edited by aljhoa; 09-30-2016 at 02:19 PM. Reason: 113,545
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  #1687  
Old 09-30-2016, 02:58 PM
Danny B Danny B is online now
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Pitchforks for plutocrats. Death spiral of Deutsche bank

Along with the proposed Georgian land tax, there have been proposals for a tax on financial transactions,,, Tobin Tax
Tobin Tax Definition | Investopedia
The VERY rich are starting to notice that things are going from bad to worse. The billionaire, Nick Hanauer has said that soon the pitchforks and torches will come out.
"The Pitchforks Are Coming… For Us Plutocrats … Memo: From Nick Hanauer To: My Fellow Zillionaires … You probably don't know me, but like you I am one of those .01%ers, a proud and unapologetic capitalist. I have founded, co-founded and funded more than 30 companies across a range of industries—from itsy-bitsy ones like the night club I started in my 20s to giant ones like Amazon.com, for which I was the first nonfamily investor."
An Unfortunate Politico Promotion? | The Daily Bell

Julian Robertson has predicted that the crash will start in the bond market and spread out;
Hedge fund legend Steve Cohen is recruiting young trading talent in London and Asia - Yahoo Finance
140210505.html

9/30 Yellen says Fed buying stocks is “a good thing to think about” – Zero Hedge It didn't work for Kuroda of Japan so, obviously, Yellen is going to try it.
9/30 “People are mad” – Dave Collum warns “existential change is in the air” – Zero Hedge Change has been in the air for quite some time. It's just that now, the air is quite noxious and stifling.
9/30 Deutsche Bank hedge fund clients withdraw excess cash – Zero Hedge A bank run by any other name is still a bank run.
9/30 The world’s economic system failing fast – Daily Bell I told them 1 1/2 years ago that this was happening. They disagreed. I wrote back, " Rome wasn't destroyed in a day".
9/30 Deutsche Bank falls 8% in early Friday Frankfurt trading – Bloomberg A paperless bank run.
The Run Begins: Deutsche Bank Hedge Fund Clients Withdraw Excess Cash | Zero Hedge

Getting your cash out in time; I’m in Awe of How Fast Deutsche Bank is Falling Apart | Wolf Street
Deutsche Bank is counterparty to 55 *trillion* euros of derivatives ...
Moody's downgrades Deutsche Bank's ratings (senior debt to Baa2

What about the counterparties to the securities at Deutsche bank? http://www.bib.eu/content/1/0/6/0/2/...2016.03.17.pdf
What about the counterparties to these people?
senior debt to Baa2 For many investment firms, they are forced by their charters to withdraw from any corporation with a rating this low. The contagion from a bank run this large will spread all around.
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  #1688  
Old 10-01-2016, 05:11 AM
Danny B Danny B is online now
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Still falling apart

The FED desperately wants to raise interest rates. What happens of they go to the historical average of 5%?
"Lastly, to give you an idea just how insane our $402 billion of annual interest expense is, let’s look at the following figures below:

2015 U.S. Govt Outlays

Food Assistance = $104 billion
Education = $70 billion
Housing & Community = $63 billion
Internal Affairs = $41 billion
Energy & Environment = $39 billion
Unemployment = $36 billion
Transportation = $26 billion
Total = $379 billion

If we total all the U.S. Federal Govt outlays above from Food Assistance to Transportation, it equaled $379 billion in 2015. The U.S. Govt forked out more money just to service its debt last year than it did in all eight government sectors shown above."
https://srsroccoreport.com/must-see-...s-gold-silver/
The FED is getting prepared for something; Just Spotted In Front Of The New York Fed | Zero Hedge

All that hot money floating around has a huge amount control of the futures markets; The Biggest Scandal | SilverSeek.com
The speculators are making all the money. NOT the actual producers. In America, the egg market does not allow speculation. If you buy a future load of eggs, you must pay a 10% penalty for non-delivery. If this was applied to all markets, it would cut prices WAY down.

Gold has given a better return than Berkshire Hathaway. GOV must continually disparage gold to keep people in the markets where they can be robbed. Why Krugman, Roubini, Rogoff And Buffett Dislike Gold

10/01 Near ‘collapse,” Minnesota to raise Obamacare rates by half – Bloomberg That will undoubtedly fix everything.
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  #1689  
Old 10-02-2016, 03:11 PM
Danny B Danny B is online now
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SDR substitution fund

I guess that we are going to hear a LOT more about special drawing rights. The Chinese Yuan was just added to the basket of currencies that comprise the SDR. It has become obvious that an un-backed dollar as a reserve currency just won't work. We are moving to a brave new world where; the unbacked yuan joins the unbacked yen, the unbacked dollar and the unbacked Pound to be a "backing" for the un-baked SDR.

"‘The brilliance of the SDR solution is that it solves Triffin’s dilemma. Recall that
the paradox is that the reserve-currency issuer has to run trade deficits, but if you run deficits long enough, you go broke. But SDRs are issued by the IMF. The IMF is not a country and does not have a trade deficit. In theory, the IMF can print SDRs forever and never go broke. The SDRs just go round and round among the IMF members in a closed circuit. "
" These countries have no desire to break the new SDR system,
because they’re all in it together. The United States is no longer the boss. Instead, you have the “Five Families” consisting of China, Japan, the United States, Europe and Russia operating through the IMF. The only losers are the citizens of the IMF member countries—people like you and me—who will suffer local-currency infla-tion."

It's well known and well proved that the transactional currency can not be the same as the store of value currency. The SDR would get around that. This puts the SDR in competition with gold.
I see all of this as being a "bridge too far". There is a lot of speculation how this is going to work out. https://www.imf.org/external/np/sec/memdir/members.aspx
http://www.uni-heidelberg.de/md/awi/...26.08.2013.pdf

The Euro is failing because it locks all of it's member States into a single currency system even though their levels of productivity vary considerably.
The SDR would lock everybody into the same reserve system even though they could be created at will. This is definitely a bad recipe. China has initiated much of the revival of the SDR to get away from the dollar. This was before they bubbleized their banking system beyond all reason. It is impossible (for me) to give any prediction of how the dynamics of this would work out.
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  #1690  
Old 10-02-2016, 03:54 PM
Danny B Danny B is online now
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What would be the fallout from sovereign default?

The world economy is collapsing mostly because of corruption, falling wages and rising automation. The State GOV is going broke at all levels. The SDR is "backed" by sovereign governments. What happens when sovereign GOVs are insolvent and no longer able to pay?
https://www.milesfranklin.com/inevit...debt-collapse/

https://www.armstrongeconomics.com/u...n-debt-crisis/

https://www.armstrongeconomics.com/w...debt-crisis-2/
Make no mistake, many States around the world are in serious competition. We talk of war with Russia and China. We are already in cyber-war with many States. What kind of economic cooperation are we going to have? When the sovereign debt collapse hits, every leader is going to worry first and foremost about feeding HIS countrymen.
Martin Armstrong On "The Coming Dark Age" | Zero Hedge

Everybody is worried but, nobody knows for certain what will blow first. We're Issuing a Formal Alert: Something Major is Coming in the Markets

Walter Burien shows that 45,000 GOV agencies have MANY $ trillions in cash and investments stashed away. http://www.cafr1.com/
Will this liquidity come into play? Is it actually available? Have the banks vaporized it. Will they take it if a bail-in is deemed necessary?
I haven't a clue.
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  #1691  
Old 10-03-2016, 02:26 AM
Danny B Danny B is online now
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Promoting bank runs

Much of what was taught in schools of economic planning was only marginally applicable up until about 50 years ago. There were plenty of collapses but, they were fairly predictable with what economists already knew. Times have changed. We have instant global capital flows, global wage arbitrage, containerized shipping, birth control, automation, etc. The old, barely applicable rules are of no use now. Many of the fundamentals are still in force though.
Here is an article of total BS citing Alvin Hansen and Kark Marx. "The Only Way Out Is Creative Destruction" Sinn Fears "Self-Inflicted Malaise" | Zero Hedge
Why do people write such tripe?

"In a traditional bank run, perceptions of the bank drive depositors to withdraw from the bank’s vault of money and cash rather than trust that the bank can meet all withdrawals, sticking the depositor with some unknown scale of loss. The intensity of the run, really illiquidity, is driven by further rumors about the bank’s position. At some point, the withdrawals themselves just confirm the negative perceptions, thus locking the bank into a downward spiral toward failure."
"Deutsche Bank stands at the center of the European financial system - it is a major counterpart of all relevant European banks, and broader."

"This is where Deutsche Bank is very different from Lehman, and far riskier, because if the institutional panic spreads to the depositor base, which as the table below shows amounts to some €566 billion in total, and €307 billion in retail deposits...... then all bets are off."
"3. or implement a bail-in, eliminating billions in unsecured claims (and deposits) and leading to a full-blown systemic bank run as depositors everywhere rush to withdraw their savings, leading to a collapse of the fractional reserve banking mode (in which there is only 10 cents in physical deliverable cash for every dollar in depositor claims).

Which of the four choices Deutsche Bank will pick should become clear in the coming days."
This Is How Much Liquidity Deutsche Bank Has At This Moment, And What Happens Next | Zero Hedge
This report was produced by Goldman Sachs.

"The head of Germany's financial regulator warned on Saturday of "negative perceptions that could lead to downward spirals on the markets", at the end of a week that saw Deutsche Bank shares battered by a crisis of confidence. Felix Hufeld,
But he said: "I warn people not to let themselves be drawn into a kind of downward spiral of negative perception. Not every nervous market reaction is backed by objective facts."

Roughly translated as "Don't panic, we have everything contained." Now where have we heard that before?"
This report was brought to you by J.P. Morgan It seems that they want to create a run on European banks.
According To JPMorgan, This Is The Biggest Risk Facing Deutsche Bank At This Point | Zero Hedge

Putting gasoline in the radiator.
“A new report issued by the Swiss bank Credit Suisse finds that global wealth inequality continues to worsen and has reached a new milestone, with the top 1 percent owning more of the world’s assets than the bottom 99 percent combined.

Of the estimated $250 trillion in global assets, the top 1 percent owned almost exactly 50 percent, while the bottom 50 percent of humanity owned collectively less than 1 percent. The richest 10 percent owned 87.7 percent of the world’s wealth, leaving 12.3 percent for the bottom 90 percent of the population.” (“Top 1 percent own more than half of world’s wealth“,
The Biggest Heist In Human History | Zero Hedge

Three Reasons Why The Banking System Is Rigged Against You | Zero Hedge

Jim Rogers is smoking loco-weed; https://www.rt.com/op-edge/361317-chinese-yuan-imf-sdr/
Max Keiser; https://www.rt.com/news/348307-keise...emic-collapse/
"Even gold is not as secure as un-hackable Bitcoin currency - Bitcoin Foundation CEO " Let me know when you get an un-hackable bitcoin.
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  #1692  
Old 10-03-2016, 03:10 PM
Danny B Danny B is online now
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A lot more GOV debt than advertised

The FED, the president's working group on markets, and the exchange stabilization fund, collectively known as the FED, PPT and ESF have been pumping vast amounts of currency into the markets. They try to make up for huge amounts of legitimate commerce that just isn't happening. These three have been operating fairly quietly. They don't want any slips in confidence. But, they have left their tracks in the budget numbers.
"Since 2003, the government deficits published by the Office of Management and Budget amounted to $9.26 trillion. So the Treasury should have had to borrow that much to make up the difference. But over the same period, the national debt rose by $13.3 trillion. Meaning, $4.04 trillion had gone up in smoke."

"And there’s another thing I know: our government’s accounting of what it spends and therefore the deficit numbers are BIG lies: since 2003, it admitted to an accumulated deficit of $9.26 trillion, but the national debt during that time rose by $13.3 trillion. That’s not a rounding error, but a liar margin of 43%!!" This is Why US Gov. Deficit Numbers are a BIG Lie | Wolf Street

"The State is a gang of thieves, writ large, the most immoral, grasping and unscrupulous individuals in any society. “If you have the power to print money, you’ll do it. Regardless of any ideologies or statements, that you should limit your counterfeit operations to three percent a year as the Friedmanites want to do. Basically you print it. You find reasons for it, you save banks, you save people, whatever, there are lot of reasons to print.” — Murray N. Rothbard WARNING: We Are Going To Be Living In An Incredibly Chaotic World | King World News

https://www.youtube.com/watch?v=eKqs7GJ0jdY

10/03 WSJ reports “no settlement deal” between Detusche, DOJ – Zero Hedge The "fix" is in and GS and JP will make a killing shorting Detucshe Bank.
10/03 Meanwhile, Saudi stocks crash near 7 year lows – Zero Hedge
10/03 Global bond markets shackled to Japan by Kuroda’s 0% quest – Bloomberg
Yep, lowest common denominator is dragging down everybody.
10/03 SDR poised to become de facto global reserve currency – Business Insider
10/03 Yuan becomes world’s fifth reserve currency, can bitcoin be sixth? – Coin Telegraph
Wait until the bond markets blow and see what the reserve currency is. Au

10/03 Pentagon caught paying PR firm $540 million to make fake terrorist videos – Activity Post And people wonder why the military budget is so high.
10/03 Christine Lagarde, scourge of tax evaders, pays no tax – Guardian She is a criminal, she isn't stupid.
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  #1693  
Old 10-03-2016, 06:31 PM
Danny B Danny B is online now
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The flambe of Deutsche bank

Deutsche bank has reduced their derivative exposure from $71 trillion to just $55 trillion. BUT, the big American banks smell blood and they are trying to create a death spiral of bad news, more withdrawals, bad news.
10/03 Systemic risk: Deutsche Bank #1 at $100 billion – Mish
10/03 How arrogant Deutsche Bank fell from grace – MarketWatch
10/03 Deutsche Bank received US bailout twice as big as Lehmans – Wall St. On Parade
Lehman received a bailout BUT, Treasury sec Paulson was from Goldman Sachs and he later locked Lehman OUT of access to their capital that they wanted to liquidate to stay alive. GS was happy to kill Lehman and take the best parts real cheap.

10/03 Deutsche Bank shares slip again in race to reach U.S. settlement – Reuters The proposed settlement amount is $ 14 billion. They don't have it. Every day that goes by sees their capital base falling. GS/U.S. regulators can stall until death. By now, the shorts have taken positions. EVERYONE will join in.
Merkel did exactly the wrong thing with the Greek crisis.
Merkel did exactly the wrong thing with the muslim influx.
There is a good chance that she will do the wrong thing for Deutsche bank.
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  #1694  
Old 10-04-2016, 03:34 AM
Danny B Danny B is online now
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Couple of good graphs

http://kingworldnews.com/wp-content/...-I-9282016.jpg
http://kingworldnews.com/wp-content/...II-9302016.jpg
As The Monetary Madness Continues, Here Is A Dire Warning | King World News
“Inflation makes it possible for some people to get rich by speculation and windfall instead of by hard work. It rewards gambling and penalizes thrift. It conceals and encourages waste and inefficiency in production. It finally tends to demoralize the whole community. It promotes speculation, gambling, squandering, luxury, envy, resentment, discontent, corruption, crime, and increasing drift toward more intervention which may end in dictatorship.” — Henry Hazlitt"

The gold bugs are all talking DOOM.
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  #1695  
Old 10-05-2016, 12:41 AM
Danny B Danny B is online now
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The CB is the greater fool that everybody depends on.

The banks should have crashed in '08. The FED/GOV didn't want them to fall so, they pumped in money.
"No, the great Pyrrhic victory of the Fed has been to enable the third most extreme financial bubble in history, on the basis of capitalization-weighted indices, and the single most extreme bubble in history from the standpoint of individual stocks."
"Every financial bubble rests on the presumption that there is still some greater fool available to purchase overvalued assets, no matter how overvalued they might become. In the recent half cycle, central banks have intentionally extended this speculation by promising that they, themselves, could be relied upon to be those greater fools. "
"central banks (whose activist interventions have essentially zero correlation with subsequent real economic outcomes). "
"the bubble peak in 2000 was the most extreme level of valuation in history on a capitalization-weighted basis, the recent speculative episode has actually exceeded that bubble"
Hussman Funds - Weekly Market Comment: Sizing Up the Bubble - October 3, 2016
Stocks have gone to nosebleed heights. When they fall, they will fall a LONG way.

"Delinquencies of 60 days and higher among subprime auto ABS increased by 22% year-over-year in August, Fitch Ratings reported on Friday – now amounting to 4.9% of the outstanding balances that Fitch tracks and rates. And subprime annualized losses increased by 27% year-over-year, reaching 8.9% of the outstanding balances of auto ABS." "And according to Fitch, the toxicity level in the subprime auto ABS space isgoing to rise, with “subprime auto losses to pierce 10% by year-end.” "they hit $1.07 trillion"
Subprime Auto-Loan Backed Securities Turn Toxic | Wolf Street
These loans were sliced and diced and re-sold to investors like pension funds.

Good article from John Perkins, "They’re not allowed to impose tariffs under the trade agreements—NAFTA and CAFTA—but the U.S. is allowed to subsidize its farmers. Those governments can’t afford to subsidize their farmers. So our farmers can undercut theirs, and that’s destroyed the economies, and a number of other things, and that’s why we’ve got immigration problems."
More Confessions Of An Economic Hit Man: "This Time, They?re Coming For Your Democracy" | Zero Hedge

There is a U.S.---EU war of fining each other; https://www.rt.com/business/361419-d...-economic-war/

“Looking at the current average price [of real estate] and personal income in Shenzhen, it would take an average person more than 1,200 months—that is, 100 years—of not eating or drinking to afford a 90 square-meter house,”
Bubble Watch: Experts Sound Alarm on Chinese Real Estate
Maybe real estate isn't such a good store of value after all.

The gold manipulations go on and on; http://kingworldnews.com/andrew-magu...-market-today/
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  #1696  
Old 10-06-2016, 01:11 AM
wayne.ct wayne.ct is offline
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What do I have that is worth anything?

I think this is a question people should ask. If you want any personal power or freedom you need to have some resources. As Mr. Wemmick in Great Expectations might say, everyone should have some portable property. (That is a good book, by the way. I recently read it for the first time.)

You should have portable assets, including tools of your trade, if you have valuable skills. With these portable items of value you can, perhaps, survive in difficult times.

I bring this up to answer a question from several days ago. The question has to do with government assets and government financial assets in particular.

As long as people attribute value to paper currency and there is "enough" paper currency to transact business, they will transact business and the government will be able to pay its enforcers and the enforcers will enforce the decrees of the government figureheads.

Look at what has happened in Zimbabwe in the recent weeks or days. The common citizen has been stripped of cash (the ATMs are empty) but the soldiers and police are paid in US dollars, aka "hard" currency. Never mind the fact that the only real hard currency is gold and silver.

Note the evil behavior on the part of the powers that run the Zimbabwe state government. They are corrupt and can't hide their unethical behavior.

OK. Here is what I am getting at. The electronic dollars and the contracts and agreements at the government and CB level are pretty much irrelevant when ethics breaks down at those higher levels. It does not really matter what the Consolidated Statements of Assets of the various States and Agencies say or don't say. The decision makers will do whatever they think is necessary to protect their position or reputation and the accountants and auditors will make whatever bookkeeping entries are called for to cover their tracks. The bankers will move money around, create loans, etc. so things look "reasonable" on the surface. People, by and large, will accept anything as long as they have something to eat and something to entertain them.

Analysts and commentators will make both reasonable and outlandish statements and a few people will adjust their behavior to protect what they can. The majority of people will "suddenly" wake up and find they are not prepared.

So, do what you can to prepare.

I expect the situation to evolve into some sort of police state. Perhaps some public entities will set aside real assets beside guns and ammo. They have land and buildings, but can they act independent of the higher levels of gov? The Federal, State and County levels with their agencies and police are pretty much locked together in one vast interlocking bureaucratic monolith.

Here and there, there may be a few ethical politicians, but they are rare. Where is the critical mass that can effectively move the needle?
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  #1697  
Old 10-06-2016, 02:58 AM
Danny B Danny B is online now
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Consider the Amish

Originally, all wealth came from Mother Earth. Some people produced surpluses. Barter was invented. Excess wealth allowed some people to live in towns. Later, priests and kings appeared to steal wealth rather than directly producing it. Hunting and gathering gave way to agriculture and animal domestication. The agrarian lifestyle produced enough excess wealth to support cities. More and more people became distanced from Mother Earth.

We progressed to an industrial economy. In the early '40s, 44% of Americans worked on the farm. Farming was mechanized and people moved to manufacturing. Post WW II, America had 3% of the population and 50% of the "free" world's manufacturing capacity. Manufacturing has been mechanized and many people have tried to move to the service economy. BUT, our trade deficit is $1.5 billion a day. This slowly bleeds out the money needed to continue the service economy. We start numerous wars to keep our arms exports selling.

Our basic economy is the "Amish" economy. Everything else has been glued on by the great wealth brought us by plunder and brains. That wealth is slipping away as we send jobs and money out of the country. The lower loop is shrinking considerably. The upper loop is printing to keep from shrinking. That can only go on for so long. Globalization has brought everything down to a common LOW level.
Backlash to World Economic Order Clouds Outlook at IMF Talks - Bloomberg
“I’m characterizing the global economy as something akin to a driverless car that’s stuck in the slow lane,” said David Stockton. EVERYBODY is focused on trade but, nobody is giving any thought to wages.

With globalization, ONLY the low-cost producer works. This leaves out everybody else. In a normal corporation, when there is a turn-down in business, they retire productive capacity. This doesn't work very well when productive capacity is people. There is no solution for efficiency.
The best survival strategy is to position yourself to revert to the agrarian economy. Those who are not prepared will try to revert to the hunter/gatherer strategy.

Our cities are centers of finance and manufacturing. They are NOT centers of other value-added industries. They are not conducive to the agrarian lifestyle.
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  #1698  
Old 10-07-2016, 03:21 AM
Danny B Danny B is online now
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Useless battle plan against deflation

"The International Monetary Fund has urged governments to take action to tackle a record $152tn debt mountain before it triggers a fresh global financial and economic crisis." https://www.theguardian.com/business...152tn-says-imf
No kidding. Just what do they mean by tackle. They've tried everything that they can think of and failed every time.
"It was (and still is) widely believed that the way to add jobs was to destroy the value of the nation’s money. This the Fed has done with gusto. " Fed for Hillary
THAT has never worked so, it was tried over and over.

"Reducing interest rates to 0% again benefited those with the most debt: Wall Street banks, mega-corporations, and the U.S. government. It destroyed the finances of senior citizens living off their savings, penalized people for saving, and incentivised heavily indebted consumers to borrow more. >How did allowing Wall Street banks to borrow at 0% so they could charge consumers 15% on credit card balances and 6% on auto loans benefit consumers? Dohmen Capital Research, Inc. Is the Inevitable Debt Collapse Predictable? - Dohmen Capital Research, Inc.

This is a graph of Deutsche Bank compared to Lehman; https://plnami.blob.core.windows.net...anDeutsche.jpg
"It is interesting to note in particular that the mainstream media tends to become more over-the-top in its certainty of economic stability the closer the system comes to collapse. That is to say, the nearer we edge towards financial calamity, the more violently the mainstream media attacks people who suggest that danger is on the horizon."
The Noose Is Tightening Quickly On The Global Economy | Zero Hedge

Japan, "Lower interest rates were deemed the harbinger of aggregate demand" The feces-for-brains make no mention of wages nor crashing population.
http://www.financialsense.com/contri...cy-rabbit-hole As long as they can't see past the veranda of their ivory tower, everything that they do will be wrong.

http://www.zerohedge.com/news/2016-1...d-new-york-fed
RADICAL idea from Ray Dalio in his address to a group of Central bankers,
"1) Debt growth has to be in line with the income growth that services those debts "
"2) Economic operating rates and inflation rates can’t be too high or too low for long, because if an economy is depressed or too hot for long, that will lead to changes to reverse it, and"
About that reversal,,,
"Holders of debt believe that they are holding an asset that they can sell for money to use to buy things, so they believe that they will have that spending power without having to work. Similarly, retirees expect that they will get the retirement and health care benefits that they were promised without working. So, all of these people expect to get a huge amount of spending power without producing anything. At the same time, workers expect to get spending power that is equal in value to what they are giving. They all can’t be satisfied. "
So, what does this portend for the FED et al who hold all this debt?

"it appears to me that there will have to be greater purchases of riskier assets and more direct placements of purchasing power in the hands of spenders, especially as the previously described squeeze intensifies. " warm up the helicopters.
Most of the holders of debt are going to get screwed badly, https://media.licdn.com/mpr/mpr/AAEA...MmM0YWZjNQ.jpg

10/06 Abusing our trust is the business model of modern finance – Financial Sense That's fascism for you.
10/06 EU readies plan for clearing crisis, the new too-big-to-fail – Bloomberg The spectre of this super-bail-in is causing everybody to flee the banks. http://www.zerohedge.com/news/2016-1...system-bailout
10/06 Goldman warns of “upward shock” to rates, hints at trillions in losses – Zero Hedge
10/06 Global debt hits all-time high of $152 trillion – Telegraph
10/06 $152 trillion debt simply not enough to stimulate economy! – Mish
Shoot, make it $ 200 trillion.

Poorer than their parents; http://www.salon.com/2016/10/04/elec...-we-feel-fine/
If a State has a strong currency, it loses market share. When one State devalues it's currency to maintain market share and JOBS, everybody else has to follow. Japan sets the standard for devaluing it's currency to maintain market share. As every State devalues it's currency, it diminishes the purchasing power of it's people. The interest rate at the FED is higher than the BOJ and ECB.
FED GOV pumps more and more into the economy as legitimate commerce slows down. When GOV prints money, it adds this amount to the GDP. When FED GOV spends money it adds this sum (again) to the GDP. Our GDP is shrinking by about 5%. Almost ALL of the holders of debt instruments believe that they are going to be paid back. This just isn't so. GOV lies about all the figures just to keep these people from trying to dump all that debt.

The CBs are already buying big gobs of stocks, bonds and miscellaneous debt. BUT, the debt is growing FASTER than exponentially.
When this all blows, just hope that GOV has enough money to put a jacuzzi in your favorite FEMA camp.
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Last edited by Danny B; 10-07-2016 at 03:25 AM. Reason: forgot a LINK
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  #1699  
Old 10-07-2016, 02:58 PM
Danny B Danny B is online now
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Peak bad models, peak credit, peak BS

Banks have created great monetary inflation. Stocks have no earnings and the money bleed into other areas. Here are real estate prices. http://d1w116sruyx1mf.cloudfront.net...tatePrices.png
Monetary inflation from the upper loop creates price inflation in the lower loop. Since the lower loop depends on wages rather than the printing press, we can't absorb higher prices. We just cut back on purchases. One of the World’s Most Respected Investors Predicts 2016 Stock Crash | Casey Research

Italy is set to crash the Eurozone. The technocrats tried to do away with all voting in the EU. Brexit shows what a disaster democracy is for fascism. Italy is next. The Coming Collapse of the World’s Biggest Economy | Casey Research
Our wages drop. The corporatocracy tries to compensate for our diminished purchasing power by forcing wages lower.

"The majority of Venezuela’s problems are simply due to catastrophically bad economic management stemming from big-government, Chavismo-style policies. These policies have dismantled private industry and domestic food production over the last two decades. Due to this, Venezuela now imports 95 percent of its food and has the highest inflation rates in the world."
Homeland Security Chairman McCaul: Venezuela?s life threatening ?Maduro diet? is no joke | Fox News

Greenspan says that GOV needs to cut way back on entitlements,,, for the poor. He didn't mention that subsidies for the rich are 10 times as expensive. Greenspan "doesn’t know what he is talking about and there is a mountain of evidence, including his own words, that show that he never did," Snider, in a recent blog, explained.
"We are stuck in this economic depression not just because of his past tenure, but more so now because constant reverence prevents acceptance of these facts. The recovery doesn’t start until the “maestro’s” legend dies, and with it all the confusion and misconstruction about how markets and the economy actually work," Snider wrote.
Greenspan's Advice to Yellen on Political Bias Accusations: 'Grin and Bear It'

B of A on "peak everything" http://finance.yahoo.com/news/bank-a...161247044.html
Yep, America hit peak wages in the early '70s. Credit was increased to paper-over wage stagnation. Now, we have reached "Peak Credit" and "peak jobs". Not to mention "peak BS" from GOV. Actually, we haven't yet reached peak BS. Kuroda is trying to prove that BS is in endless supply.
The IMF called for GOV to "tackle" the debt problems. I was thinking of a rolling-block
Now, "BOJ Kuroda calls for quick solution to Europe's banking woes
[Reuters] http://finance.yahoo.com/news/boj-ku...214602792.html

No scheiss, Sherlock. A quick solution. He wouldn’t dream of studying Austrian Economics. Just because Austrian Economics has been right all along is no reason to "change horses" now. The eventual "solution" is going to be traditional Japanese style, Hari-Kari.
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  #1700  
Old 10-08-2016, 01:52 AM
Danny B Danny B is online now
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Statistics vs fractals...default risk moves up the chain

The FED and other central banks made it clear that they were going to do away with the business cycle by backstopping all markets. Effectively, this transferred risk from the investors to the central bank. The risk didn't just go away. The central banks bet the farm that, with enough support, the good times would eventually return and they could sell all of their GOV bonds into the open market. They fired up the pixel-presses and waited for the free money to the upper loop to work it's magic.
They ignored wages and, the corporatocracy actively tried to diminish wages in the lower loop. Things didn't work out because China is exporting massive deflation in manufactured goods and wages. CAPEX investment crashed, profit margins crashed, credit demand from solvent consumers crashed.

All the risk has been transferred up the chain to the central bank.
" Unfortunately for the credulous investors who believe this, risk cannot be extinguished, it can only be transferred to others or to the system itself. "
"In a nutshell: while modern portfolio management is statistically based (all those "standard deviations" you always see referenced in quantitative analyses), the markets behave fractally. Fractals are known as the geometry of chaos, for they describe how seemingly stable systems can quickly, and unpredictably, degrade into chaos. "

"This is how you get a total systemic collapse of the entire choice architecture. And by this I mean not just the financial markets, but the backstop provided by central banks. " "Central bank market intervention doesn't extinguish risk--it simply transfers it to the system itself."
Of Two Minds - Sorry, Central Banks: Risk and Volatility Cannot be Extinguished

The FED is just starting to get an inkling about the importance of consumers; https://www.washingtonpost.com/news/...economic-mess/

10/07 The great debt unwind: Business bankruptcies soar 38% – Wolf Street
10/07 US state public pension unfunded liabilities to hit $1.75 trillion – CNBC
10/07 Central banks wage war on markets: Bill Bonner says they will lose – Mish
10/07 Liar loans surge in Australia’s housing bubble – Wolf Street Good on ya mate.
10/07 Posen says pound decline may mark shift too big for the BOE – Bloomberg They're all "Greek" now.
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  #1701  
Old 10-09-2016, 02:19 AM
Danny B Danny B is online now
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Globalization is on the way out.. TAE

There is a LOT of trading done by computers. They are FAST;
“Pound Is the Latest Flash Crash That Traders Won’t Easily Forget.” The article summarized some recent Flash Crashes: May 6, 2010: U.S. Stocks (“Dow Jones Industrial Average tumbled as much as 9.2%”); October 15, 2014: U.S. Treasuries (“37-basis-point range during a 12-minute period”); August 24, 2015: U.S. Stocks (“$1.2 trillion of market value… erased”); Aug. 25, 2015: New Zealand Dollar (“8.3% intraday”); January 11, 2016: South African Rand (“9% in 15 minutes”); May 31, 2016: China Index Futures (“suddenly dropped… 10% daily limit”). And let’s not forget “frankenshock,” the January 2015 dislocation (39% move) in Swiss franc trading as the SNB untethered the swissy peg from the euro."
Credit Bubble Bulletin: Weekly Commentary: Matthew, Near Misses and Flash Crashes

“We’d like to see an end to the creeping protectionism in the world and more progress on moving ahead with free-trade agreements and other trade-creating measures,” Maurice Obstfeld, director of the IMF’s research department"
"First, do no harm, which above all means resisting the temptation to throw up protectionist barriers to trade."
At the same time; "EU imposes import duties of up to 73.7% on cheap Chinese steel " https://www.theguardian.com/business...rt-talbot-tata

Back to TAE, https://www.theautomaticearth.com/20...-other-losers/
“I’m characterizing the global economy as something akin to a driverless car that’s stuck in the slow lane,” said David Stockton
"What I think is the appropriate metaphor, is not “a driverless car that’s stuck in the slow lane”, but one of those cars in a carousel at a carnival, a merry-go-round, where you can sit in it forever and you always end up in the same spot. And the only one who’s in control in the boss who hollers that you need to pay another quarter if you want to keep on riding. "

"Globalization is done. And while we can discuss whether that’s of necessity or not, and I continue to contend that the end of growth equals the end of all centralization including globalization, fact is that globalization was never designed to share anything at all, other than perhaps wealth among elites, and low wages among everyone else."
"We are transcending into an entirely different stage of our lives, our economies, our societies. Growth is gone, it went out the window long ago only to be replaced with debt."
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  #1702  
Old 10-09-2016, 02:48 AM
Danny B Danny B is online now
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Smoot-Hawley, trade wars, imported oil

"In 1930 a large majority of economists believed the Smoot-Hawley Tariff Act would exacerbate the U.S. recession into a worldwide depression. On May 5 of that year 1,028 members of the American Economic Association released a signed statement that vigorously opposed the act. The protest included five basic points. First, the tariff would raise the cost of living by “compelling the consumer to subsidize waste and inefficiency in [domestic] industry.” Second, the farm sector would not be helped since “cotton, pork, lard, and wheat are export crops and sold in the world market” and the price of farm equipment would rise. Third, “our export trade in general would suffer. Countries cannot buy from us unless they are permitted to sell to us.”

Fourth, the tariff would “inevitably provoke other countries to pay us back in kind against our goods.” Finally, Americans with investments abroad would suffer since the tariff would make it “more difficult for their foreign debtors to pay them interest due them.” Likewise most of the empirical discussions of the downturn in world economic activity taking place in 1929–1933 put Smoot-Hawley at or near center stage."
https://fee.org/articles/the-smoot-h...at-depression/

"The Smoot-Hawley Tariff Act is a U.S. law enacted in June 1930 which caused an increase in import duties by as much as 50%
In a sign of disapproval towards this act, other countries retaliated and also increased their tariffs. As a result, banks in foreign countries began to fail and international trade declined drastically, resulting in a world trade decline of 66% between 1929 and 1934."
Smoot-Hawley Tariff Act Definition | Investopedia

We're probably looking at new rounds of protectionist measures;
Beginning of a Breakdown in International Trade-Hugo Salinas Price | Greg Hunter’s USAWatchdog

"EU imposes import duties of up to 73.7% on cheap Chinese steel " https://www.theguardian.com/business...rt-talbot-tata
Currency wars often degenerate into tariff wars. This would, predictably, cut way back on international trade. NAFTA is being violated to protect Canadian real estate. There are a few other examples.
The excess steel capacity in China is equal to the total steel capacity in Europe and America combined. They keep producing to avoid layoffs and shutdowns.... JOBS

The West gave China Most favored nation trading status. WTF did they think would be the eventual outcome? Because of our belligerent actions towards Russia and China, the trade wars should come pretty fast. What will the fallout be?
In new oil world, Russians win role as ‘honest broker" In new oil world, Russians win role as ‘honest broker’ | The National
Will Russia End Up Controlling 73% of Global Oil Supply? http://oilprice.com/Energy/Energy-Ge...il-Supply.html
The world respects Putin as being a "straight shooter" I can't think of ANYONE in the West who is regarded as honest.

The EU fired the first major shot in the trade wars. The GIGANTIC bureaucratic overlay of the Brussels / European Union reduced the GDP of it's members by 20%,,, to support the enormous cadre of parasitic bureaucrats. A trade war WILL bring the end of both NATO and the EU.
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Old 10-09-2016, 06:52 PM
Danny B Danny B is online now
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Fallout from the rising dollar

It seemed like a quiet Sunday until I checked Martin Armstrong. I have a lot of excerpts. One thing to focus on now is the rise of the dollar. China moved 300 million+ peasants to the cities,,, the jobs ran out when they impoverished their main best clients. They have to print like mad to keep the peasants from revolution. Europe is sucked dry supporting enormous hordes of bureaucrats and socialists. America is still coasting along on the "fat" of the reserve currency. This has facilitated a flight to the dollar from the Euro and the Yuan.

The Russian stock market is the strongest but, most people aren't aware of this. The flight to the dollar is working the opposite of the desired result from the currency war. Also, dollar-bonds are the only ones that aren't yet negative.
As the U.S. dollar rises, it is more difficult to sell our exports. Our trade deficit grows faster.
Another item; We have a global price for commodities and labor. The Japanese CB ZIRP and NIRP has caused a global price for GOV bonds. Any State that has a higher interest rate than the Japanese attracts hot money,,, the currency rises and exports become too expensive. Any labor market that tries to pay higher wages sees the jobs outsourced to low-wage competitors. The same is true for taxes.; If Trump cut corporate taxes to 15%, then companies would bring their cash home. I testified on that before Congress and explained they had to match the best tax rates of 15% as in Hong Kong and the corporations would all return.
We are getting that pop in the dollar now against the Euro, Yen, and Sterling. This has been what the Fed is frightened about.

Unquestionably, there remains a risk that we could see a complete monetary reform as early as 2018 going into 2020 or the latest 2032 insofar as a change in the currency base system. This is likely to follow a Sovereign Debt Crisis which should begin to erupt by 2018.”
https://www.armstrongeconomics.com/i...ing-collapses/

"The central banks have been trying to keep the dollar down because a rising dollar will undermine Europe exposing the ECB total failure, and then there is the risk of major sovereign defaults among emerging markets who issued their debt in dollars. The IMF has lobbied hard with the Fed pleading not to raise rates for this fear of capital pouring into the dollar. They do not appear to be able to sustain this policy beyond January."
"Gold is not something to avoid. True, institutions cannot buy gold for they earn no income. Gold is really for the individual and it will eventually be the hedge against government and the change in the monetary system which could come as early as 2018 but by 2020 if on schedule."
https://www.armstrongeconomics.com/m...-dollar-bonds/

"The hunt for taxes is destroying the world economy and on January 1, 2017, all governments will begin sharing info on foreigners. The assumption is that anyone doing anything outside the USA is hiding money from taxes. With this attitude, world trade will continue to collapse into 2020."
https://www.armstrongeconomics.com/w...g-on-schedule/

"Does the FED actually also see these trends coming (strong US dollar, bond crash) ?
ANSWER: Yes. The Fed has sent people to the major banking houses and told them outright that their models are wrong. They have been telling them quietly that there may not be a rush to quality being bonds. Moreover, the selling of US Treasuries by some central banks has been an effort to try to prevent the dollar from rising. China’s holding of US Treasuries has declined to its lowest level in several years, but it is having little effect causing markets to simply coil." Is that, "coil",, like a cobra?
https://www.armstrongeconomics.com/m...ly-bond-crash/

Lowering corporate taxes is a "fascist" move in an economy where GOV is pushing socialist schemes to try to forestall revolution. The corporations pass on taxes to the consumer so, nothing is really improved. EVERYBODY is trying to stash their cash and now, there just isn't enough in circulation.
Finance just keeps creating more debt-bonds when there is nobody that can ever pay off a fraction of them.
All tangible wealth comes from Mother Earth. As the lower loop creates ever-less tangible wealth, the upper loop creates ever-more debt-wealth. We will come to a point where the upper loop realizes that they can't sell their paper to anybody.
Most of the paper-wealth is dependent on profits and taxes from the lower loop. China exported wage & price deflation that wiped out profit margins and the discretionary spending from wage earners.
Armstrong writes about a new monetary system. If it does not include debt-free money, it will fail very rapidly. GOV currently has $ 212 trillion in unfunded liabilities. No debt-money monetary system can absorb such a large shock. The alternative is to let many millions of baby-boom pensioners die.

We don't have a lot of time left; Stock & Bond Bubbles Much Worse Than 1929-David Stockman | Greg Hunter’s USAWatchdog
The dollar is falling but, other currencies are falling faster; "Since the mid 1970’s, Salinas-Price points out the peso exchange rate has plunged compared to the U.S. dollar. Salinas-Price says, “From 1976 to date, from 12.50 pesos (to $1 US) we are now at 15,100 pesos (to $1 US) and going further down. "
http://usawatchdog.com/apocalypse-an...salinas-price/

Things are slipping away fast and it is doubtful that our cretins in the district of Corruption will do anything in a timely manner. " in August, new vehicle sales (in units) fell 7.2% year-over-year, having plunged 20% year-to-date, with new car sales down a spine-chilling 28.6% year-to-date, and even truck and SUV sales down 13.9%. It takes a lot of headwinds for a Texan to give up on buying a new truck."
http://wolfstreet.com/2016/10/08/tex...economy-drops/
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Old 10-10-2016, 04:19 AM
Danny B Danny B is online now
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$31 trillion in extra debt,,,,, Thermodynamic oil collapse

Kunstler is reliably pessimistic about the future of techno-society; "Now it’s up to natural forces — and their galloping horsemen — to get the job done. "
Sizing Up the Endgame - KUNSTLER

" He says that, Forex markets (and many other markets - too) are going to be volatile until a "New World Order" is implemented. Or to quote him
verbatim "Price discovery will be an issue as we move to a New World Order." The "NWO" he is referring to, is some sort of market panacea, where price discovery is so efficient, well - that's not a market! "
"Fast forward, it's 10-8-2016, and leading FX strategists are telling us that markets are waiting for a "New World Order"
" It seems that over the past 100 years really, not much has really changed, it is the same group of banks pulling our nose (historically speaking), whether they're funding Hitler or Clinton, whoever wins, nothing seems to change. In war there are no winners, only victims. "
Hitler's New World Order alive in the markets - FX History Lesson 28 | Zero Hedge

"Well, let's say by a staggering $31 trillion in the past six years. According to the wonderful folks at the Federal Reserve, U.S. net worth increased from $57.9 trillion Q2 2010, to a stunning $89 trillion Q2 2016:"
"I would imagine a lot of wealthy Americans believe they are living life "High On The Hog" today. However, that $31 trillion in additional wealth is a nothing more than a "Digital Mirage." For wealth to grow, more energy must be burned and positive economic activity must be generated. This is the foundation of all economic principles.

Unfortunately, Americans did not burn more energy to create this additional $31 trillion in U.S. net worth. Matter-a-fact, total U.S. energy consumption in 2016 will likely turn out to be less than it was in 2010:"
"Moreover, total U.S. energy consumption will likely be lower in 2016 (96.5 quad Btu's) compared to 2010 (97.4 quad Btu's). On the other hand, total U.S. net worth has climbed to $89 trillion versus $57.9 trillion in 2010. So, the real question is... where did this extra $31 trillion in U.S. net worth come from if total energy consumption was flat?"

"Last week, I spoke with Bedford Hill of the Hills Group about their "Thermodynamic Oil Collapse" model. What an interesting conversation it was. Bedford Hill was the project manager of a group of engineers that put over 10,000 hours in designing their Thermodynamic Oil Collapse model.

Bedford told me that after they ran the model, the results were so shocking, they sat on the damn thing for two years before publishing. I asked him did any of the engineers that worked on the model disagree with the results? His answer was, "Not a single one disagreed."
The Coming Collapse Of U.S. Net Worth Will Wipe Out Millions Of Americans | Zero Hedge
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Old 10-11-2016, 12:22 AM
Danny B Danny B is online now
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Powder keg, Italy

All over the Western world, we see the same thing; Bureaucrats creating a bureaucratic mess to create more work for bureaucrats. The GIGANTIC bureaucratic overlay of the Brussels / European Union reduced the GDP of it's members by 20%,,, to support the enormous cadre of parasitic bureaucrats.
"The European Union evolved, devolved actually, from basically a free trade pact among a few countries to a giant, dysfunctional, overreaching bureaucracy. "
" The Eurocrats, instead, created a treaty the size of a New York telephone book, regulating everything. This is the problem with the European Union. They say it is about free trade, but really it’s about somebody’s arbitrary idea of “fair trade,” which amounts to regulating everything. In addition to its disastrous economic consequences, it creates misunderstandings and confusion in the mind of the average person. Brussels has become another layer of bureaucracy on top of all the national layers and local layers for the average European to deal with."

"The European Union in Brussels is composed of a class of bureaucrats that are extremely well paid, have tremendous benefits, and have their own self-referencing little culture. " "All of the Italian banks are truly and totally bankrupt at this point. Who's going to kiss that and make it better? Is the rest of the European Union going to contribute hundreds of billions of dollars to make the average Italian depositor well again? I don't think so. "
Doug Casey on “Quitaly” and the Collapse of the EU | Casey Research

" Italy has had virtually no productive growth since it joined the euro in 1999.
Today, the Italian economy (real GDP per person) is smaller than it was at the turn of the century.
That’s almost two decades of economic stagnation." "the IMF is basically saying it has no idea how or when the Italian economy could ever recover."
"Prior to joining the euro, Italy would regularly post large trade surpluses with Germany. Since joining, it has posted large trade deficits."
"The Italian banking system is insolvent, and now everyone knows it. Shares of Italian banks have plummeted more than 50% so far this year.

Italian banks combined have a staggering $400 billion-plus worth of loans that are 90 days past due and unlikely to be repaid in full. These nonperforming loans (NPLs) account for over 18% of all outstanding bank loans and add up to over 20% of the Italian GDP."
" Making the problem worse with Italian banks is their financially incestuous relationship with the Italian government and its debt.
Italy’s government has borrowed over $2.4 trillion. "
"In Italy, government spending accounts for a whopping 50%-plus of GDP."

" A former IMF official speaking to the media put it this way:
Both the public debt and the banking sector are on a powder keg, being maintained by a process of non-recognition of accumulated losses in the system that they keep rolling over. The real problem is that somebody has to take the losses eventually."
A Mile-High House of Cards | International Man
Bureaucracies and the giant sucking sound.

Here's Where The Next Bank Deposit "Bail-In" Will Strike... | Zero Hedge
"Italians are rightly afraid of bail-ins. That fear is leading them to withdraw their savings as cash and also to buy gold. This further drains the banks’ capital, making it more likely they’ll need to do a bail-in to remain solvent, which fuels even more withdrawals. It’s like a self-fulfilling prophecy."

"The Financial Times recently put it this way:
An Italian exit from the single currency would trigger the total collapse of the eurozone within a very short period. It would probably lead to the most violent economic shock in history, dwarfing the Lehman Brothers bankruptcy in 2008 and the 1929 Wall Street crash."
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Last edited by Danny B; 10-11-2016 at 12:27 AM. Reason: moar info
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  #1706  
Old 10-11-2016, 03:04 PM
Danny B Danny B is online now
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The coming political gridlock and your survival

Deutsche bank claims that we "are past the point of no return." I saw the crash coming in 2005. There are a LOT of people waking up to the coming disaster. What does Mother Nature hold in store for a species that doesn't pay attention to self-survival? Several elements of the PTB are pushing for population reduction and the coming crash may have been orchestrated for that purpose.
From 7 Billion People To 500 Million People – The Sick Population Control Agenda Of The Global Elite » Alex Jones' Infowars: There's a war on for your mind!
The world is going to need VERY good leaders to try to stabilize the economies when the cascade of defaults hits. Nobody in their right mind wants the job so, we are left with psychopaths. The new leader of UKIP resigned after 18 days. "Diane James quits as Ukip leader after just 18 days "
She had no consensus backing her.

Charles Hugh Smith; "Regardless of who wins the presidency, a much larger question looms: will the U.S. be ungovernable 2017-2020? For all the reasons that are tiresomely familiar, whomever wins the presidency will remain deeply unpopular with roughly 40% of the adult populace.
It's not too difficult to foresee not just gridlock, but angry gridlock. Neither candidate can count on even the slightest shreds of goodwill from the other party, and with bi-partisanship already dead on arrival,

"The finance industry has effectively captured our government--a state of affairs that more typically describes emerging markets, and is at the center of many emerging-market crises. If the IMF’s staff could speak freely about the U.S., it would tell us what it tells all countries in this situation: recovery will fail unless we break the financial oligarchy that is blocking essential reform. And if we are to prevent a true depression, we’re running out of time."
All the "red button" issues boil down to this: the top .01% make all the important decisions to serve their own interests; the top 5% of technocrats and professionals who have done very well for themselves in the past seven years will support the elites, and the bottom 95% are effectively powerless-- not just politically, but financially.

Regardless of who wins the election, the U.S. will be ungovernable in a period of self-reinforcing crises.
oftwominds-Charles Hugh Smith: USA 2017-2020: An Ungovernable Nation?

Kunstler; "The only good to come out of this sordid election is the certainty that a lot of political debris will be swept away in the Fourth Turning underway. Out of the miasma of idiocy and posture that is this election campaign, the hard-edged realities of our time will emerge and the TV audience will come to the stark recognition that it is not just another mere entertainment.

The other major nations of the world are not so much ganging up on America, as Hillary would have it, but reasonably attempting to ring-fence the mad bull that the USA has become — as the two candidates vie to start World War Three with China and Russia respectively.
In background of it all looms the train-wreck of global finance, which will be the true determinant of what the American people will have to do in the years ahead. During the weeks of the election distraction, the European banks struggle to conceal their insolvency while the politicians of Euro-land desperately try to paper over the cracks in these fracturing institutions.

The potential for wrecking markets and currencies around the world is extreme at this moment. It may only be a matter of whether it happens before or after the election.

Then we’ll see what happens when financial institutions can’t trust each other. Trade stops. Economies crumble. Pretenses evaporate. If it gets bad enough, the shelves of the supermarkets go bare in three days and you’re living in a permanent hurricane disaster without the wind and rain. Believe me, that will be bad enough. Hillary, if elected, will not get to play FDR-2. Rather, she’ll be stuck in the role of Hoover, the Return, presiding over a freight elevator of an economy with a broken cable. Expect problems with the US dollar. Expect “emergency” actions. Expect the unintended consequences of those actions.

Nigel Farage; "The first signs of a political rebellion took the form of the Tea Party. The satirist Ian Hislop once described it as rather like Ukip – but with God and guns. They not only railed against the Washington elites, but made the link between big business, Wall Street banks and Washington politics. "
Not only did JP Morgan and Goldman Sachs help to fund the Remain campaign but they increasingly give the appearance of owning a whole section of our political class.
As the rich get richer and big companies dominate the global economy, voters all across the West are being left behind.
The little people have had enough - not just here, but in America too

Wages crashed and the 95% had no money. The banks used regulatory capture to pass all the losses and default risk up the financial chain to the GOV and central banks. BUT, the GOV and central banks are financed by our wages. The risk has come full circle.
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  #1707  
Old 10-12-2016, 01:22 AM
Danny B Danny B is online now
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No rudder on the Titannic

Stumbled on; " A $7 Trillion Moment of Truth in Markets is Just Three Days Away. What will Libor do once the dust settles?" Oct 11
"Now, analysts are debating whether the looming Oct. 14 deadline will mark a turning point for the interbank borrowing rate, as money markets acclimatize to a new reality. " A $7 Trillion Moment of Truth in Markets is Just Three Days Away - Bloomberg

Margin debt has turned; Is this ‘bone-chilling’ indicator really saying ‘sell’ stocks? - MarketWatch
Investors have woken up to the fact that earnings just don't happen if you depend on a very poor middle class for sales; https://cdn0.vox-cdn.com/thumbor/BVD...ensation.0.png

" In fact, a paper written by San Francisco economist Vasco Curdia last year argues that the natural interest rate has been so low, the Fed's policies were contractionary rather than stimulative even with the federal funds rate at the zero lower bound.

While Curdia's focus was on the level of the equilibrium interest rate, Gagnon and his colleagues attempt to determine why it has fallen.

To do so, they cleverly contrasted the modeled equilibrium interest rate that would have resulted from fertility, mortality and employment rates remaining at their 1960 values to the modeled equilibrium rate that results from the shift in these trends.

They found that "the entirety of the decline in the equilibrium real [or inflation-adjusted] interest rate that our model finds for the recent decades is a direct consequence of the demographic changes that happened from 1960 onward."
The biggest economic horror story is real, according to a new Fed paper

The Glass-Steagal act was slowly gutted by the banks and Greenspan until regulation was gone, especially in the case of derivatives. "The day after the Supreme Court effectively decided the fate of the 2000 Presidential election, the Commodity Futures Modernization Act of 2000 passed in Congress, attached as a rider to an 11,000-page spending bill. The legislation, passed without debate or review, exempted derivatives from regulation"
http://cepr.net/documents/publicatio...ne-2009-07.pdf

"Bastiat & Hazlitt are so clear and concise in their obliteration of the fallacies that socialism and government control of the economy are beneficial to society, that only a brain dead liberal, Ivy League economist, mainstream media shill, or a corrupt politician like Hillary Clinton wouldn’t understand. "

"Despite overwhelming factual evidence that crackpot Keynesian spending machinations; debasing the currency; interest rate manipulation; globalization; perpetual war; incurring unpayable levels of debt; making $200 trillion of unfunded welfare promises; scorning and ridiculing those who propose living within our means; record levels of wealth inequality; stagnant wages; the loss of good paying jobs; and permanent recessionary conditions for 90% of America; has created a seething anger across the land, Hillary Clinton and her establishment flunkies propose doubling down on those same failed policies."
http://www.theburningplatform.com/20...ions-part-one/

Jim Rogers and Deutsche bank; https://www.rt.com/op-edge/362254-us...deutsche-bank/
10/11 Australian property bubble on a scale like no other – Acting Man GO Aussie
10/11 UBS’ Weber warns on danger of ‘massive interventions’ by central banks – GATA No kidding. This is after they already printed up an extra $ 150 trillion.
10/10 Top central banks are set to double down – Reuters
10/10 The World Bank and the IMF won’t admit their policies are the problem – Guardian

"Now the IMF is warning that a record US$152 trillion of debt – 225 per cent of global GDP – poses a threat to the global economy. " http://www.thenational.ae/business/m...ut-its-welcome
10/11 China property bubble could cause $600 billion in bad debts – Bloomberg The debts are bad but, they just haven't been recognised as such.
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Old 10-12-2016, 03:17 PM
Danny B Danny B is online now
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Tug-o-war between Marx and the bankers

Barclays says that the party is soon to end; Barclays Warns The Party Is Almost Over As Payouts Exceed Cash Flow By $115 Billion | Zero Hedge I guess that earnings DO matter.
Apparently, collateral matter also; Collapsing Collateral, Derivatives, And Systemic Risks | Zero Hedge

"I created the chart below for an article I wrote in 2011 when the national debt stood at $14.8 trillion, with my projection of its growth over the next eight years. I predicted the national debt would reach $20 trillion in 2016 and was ridiculed by arrogant Keynesians who guaranteed their “stimulus” (aka pork) would supercharge the economy and result in huge tax inflows and drastically reduced deficits. As of today, the national debt stands at $19.7 trillion and is poised to reach $20 trillion by the time “The Hope & Change Savior” leaves office on January 20, 2017."
HILLARY: DECEIT, DEBT, DELUSIONS (PART TWO) – The Burning Platform

The ruling class, especially the Anglo-American ruling class has consistently worked to destroy collective bargaining and unions. Bringing in immigrant workers and outsourcing jobs to low-wage competitors has driven wages way down for the Western worker. As our wages stagnated and dropped, credit terms were stretched out to keep us buying. The price deflation that was promised by automation was sucked up and handed out as stock dividends.
ALL of that floated on the credit bubble because we couldn't afford to keep the consumer economy growing on just our wages.

As Payouts Exceed Cash Flow By $115 Billion The PTB can block the price deflation that we so desperately need but, if they also block wage increases, we can't buy stuff. They loaned us LOTS of money but, we can't pay it back. They pump $trillions into the upper loop to make up the difference. Some of this bleeds over into the lower loop as price inflation.
We are constantly losing ground on wages and they are constantly losing ground on dividends.
The upper loop of the economy (banks) are non-producers. They put the squeeze on the lower loop until we can't consume. Consequently, we have no particular reason to produce. This downward spiral threatened to take down the banks. They print mountains of debt to compensate. Every human on earth owes $ 20,000. These debts are viewed as assets for future collection.
BUT, they have starved the goose that lays the golden eggs.

They are going to squeeze even more. The End of Social Security (Leaked Evidence Stumps Obama, Stuns Retirees.) - The Sovereign Investor

The corporatocracy is looking to take over governments so that they can drive wages even further down. BUT, at the same time, they would like to keep the consumer economy humming along. They can't have it both ways.
The corporatocracy would like to get all the deadwood out of productivity and GOV. This is stupid and unrealistic considering the rise of automation.

The Marxists are at the other end of the rope in this tug-o-war. They focus on consumption with little thought for productivity. The rope is going to break and both parties are going to go spinning off into oblivion.
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Old 10-13-2016, 03:52 AM
aljhoa aljhoa is offline
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Quote:
Originally Posted by Danny B View Post
The corporatocracy would like to get all the deadwood out of productivity and GOV.
Giggling FEMALE Reporters

Women Are Defeating Donald Trump


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  #1710  
Old 10-13-2016, 02:49 PM
Danny B Danny B is online now
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Shifting risk up the chain. The currency markets

The bankers would like it very much if there was NOT a connection between employment in the lower loop and the fortunes of the upper loop. But, that isn't the case.
Layoffs; US layoffs jump in September by 38% – WEALTHY DEBATES
Stocks; HSBC: There's Now a Very High Chance of a 'Severe Fall' In U.S. Stocks - Bloomberg
Exports; China's exports drop sharply in September - MarketWatch
Resulting in; One Measure of Investor Worry Just Hit Its Highest Level Ever - Bloomberg
More worry; Why Europe’s Biggest Bank Is on “RED ALERT” | Casey Research

The bond market is easily manipulated by the FED interest rate. The stock market is a different story. It depends on earnings. Earnings have been flat for about 6 quarters. GOV minimises the rate of inflation to make investors believe that they are actually gaining by speculating. If investors paid attention to the real rate of inflation as reported by Shadowstats, they would leave the markets and go to cash and/or gold. The stock and bond markets are what many people pay attention to. There is a FAR bigger market that many do not look at.


1. Globally, the stock market is roughly $69 trillion in size and trades about $191 billion in volume per day.
2. The bond market (including corporates) is a little over $199 trillion and trades about $700 billion in volume per day,
3. The currency markets are unmeasured in size as every currency trade is ultimately a pairs trade (meaning to buy one currency you have to sell another). However, we do know that the currency markets trade $5.3 trillion in volume per day.


"Put another way, the currency markets trade over 26 times more volume than the global stock market every single day. As such they are the most liquid, sensitive markets in the world."
"I want to also stress that at this size, the currency market is much larger than Central Banks. If the currency market begins to revolt against a particular Central Bank, there isn’t a thing said Central Bank can do about it."
"Central Banks are losing control of the markets. The next round of the Financial Crisis is about to begin.

During the first round banks went bust. During this round entire countries will be going bust."
http://www.zerohedge.com/news/2016-1...not-contain-it
The default risk has been moved up the chain of finance until it arrived at the Central Banks.
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