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Old 03-07-2017, 04:24 AM
Danny B Danny B is offline
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The EU said that Britain must pay a huge settlement to leave the union. The house of Lords told them to "shove it"

" What I’m saying is that the buy-Europe!™ story that has been pitched by the sell-side ad nauseam for the past six months is broken and that these stocks are defenseless against the steady stream of anti-Europe political news "
"Because every sell-side strategist and his cousin has been pounding the table that Europe is recovering and Europe is cheap and why worry about all those elections"
"The European 'Story' Is Broken" | Zero Hedge

FED GOV has been lying about numbers for so long, nobody believes them,,, except the ignorati investors.
" Since 2009, the BLS has added 4.78 million jobs through the so-called birth/death of businesses adjustment, although the numbers of business formations per U.S. Census have actually been declining. "
" Trump may change the way we calculate trade deficits, unemployment, and maybe even GDP."

So politicians in the United States have manipulated figures to present lower unemployment, better trade, and a higher GDP. Trump, as usual, is going against the trend of how economic figures are usually adjusted, by trying to expose the weakness of the U.S. economy, which he says the previous administration left him. "
"In 2014, desperate European nations Italy and Great Britain changed their GDP methodology to include drug dealing and prostitution. For Britain, this resulted in added “production” of 9.7 billion pounds in 2009, equal to 0.7 percent of GDP."
"As for trade, the whole world has a bigger numbers problem than American re-export calculations. According to the International Monetary Fund, the account balance of the whole world was $247.4 billion in 2015. This means the earth exported more goods and services than it imported."
The Economic Numbers Conundrum

"The value of China’s banking system is now more than 310% the size of its GDP, compared to "only" 280% for the eurozone and its banks. "
"China became the world's growth dynamo during and after the financial crisis, spewing out between $3 and $4 trillion in credit creation each year,"
"While in recent weeks, China's top leaders have signalled that they intend to shift policy focus away from stimulus towards risk control, the truth is they have done so on numerous occasions in the past only to fail" MANY times.
"by the end of 2017, China's banking syste, will be roughly $37 trillion and rising precipitously."
China's Banking System Hits $33 Trillion, Overtaking The Eurozone As World's Largest | Zero Hedge

"America’s trade deficit in goods is "large and persistent, about $2 billion every day."
"suggest that as a result of foreign investment in the US to plug the current account shortfall, foreigners may - to cite Warren Buffett - eventually own so much of the U.S. that Americans will wind up working longer hours just to eat and to service the debt."
" The U.S. has begun to lose control of its food-supply chain, and foreign firms are eager to purchase large swaths of Silicon Valley’s treasures.
Much of Wall Street and most economists simply don’t care. But to paraphrase Mike Pence on the 2016 campaign trail, the people of Fort Wayne know better. The analysts at the Pentagon know better, too. That’s why, for both economic and national-security reasons, it is important to bring America’s trade back into balance—through free, fair and reciprocal trade."
In WSJ Op-Ed, Peter Navarro Writes Deficits "Could Put US National Security In Jeopardy" | Zero Hedge

Rhodesia destroyed itself when it killed and persecuted the White Boers. Now, Zuma of South Africa is proposing that they do the same thing, http://www.zerohedge.com/news/2017-0...ion-white-land
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Old 03-07-2017, 03:57 PM
Danny B Danny B is offline
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Floating on a sea of red ink,,, until the plug is pulled

The State pumps out lots of sovereign bonds and injects the money into the upper loop of the economy,,,, hoping for a trickle-down effect. BUT, the bonds must be repaid by productive workers. Their future wages are handed out to the rich. It is actually a trickle-up scheme. The rich aren't actually producing anything. As more and more of production is done by machines, there is a lower and lower wage base to repay the sovereign bonds. The State responds by creating ever-more debt.
As the productive sector of the economy tries to cope with the ever-lower wages, it utilises more and more automatic machines.

The price deflation promised by automation was stillborn and never allowed to compensate for the lower wages brought by automation.
The finance sector is growing ever-larger as wealth production and consumption continue to shrink. The sovereign bonds can never be repaid by the productive sector. The stock market no longer serves any useful function and must rely on cash infusions from the State. These infusions aren't adequate to make "normal" dividend payments even though the state has pumped in $trillions.

In 1913, we got the FED and the economy crashed 16 years later. In 1999, we got the repeal of Glass-Stegal and the 2008 crash 9 years later.
There has NEVER been enough money in the system to support the huge overload of bankers.
"when Bill Clinton defends repeal of Glass-Steagall, you get a hindsight rationalization of his action to let the banking street to go wild. Surely he or his Fed toadies would never admit that tearing up Glass-Steagall separation had anything to do with the 2008 crash. "
"Understanding How Glass-Steagall Act Impacts Investment Banking and the Role of Commercial Banks, explains the principle. Goldman Sachs had the crucial need for the infusion of major capital to keep itself afloat. With the conversion from a partnership to a public company Goldman gained access to Secret Fed Loans Gave Banks $13 Billion Undisclosed to Congress.

" Add up guarantees and lending limits, and the Fed had committed $7.77 trillion as of March 2009 to rescuing the financial system, more than half the value of everything produced in the U.S. that year."
"The ultimate day of reckoning and economic collapse from the next panic cannot be prevented. The scope of a future financial apocalypse will make a $7.77 trillion bail out look like chump change. Wall Street is never held accountable for their uncontrolled greed and criminal practices. Glass-Steagall was one of the few regulatory interventions that served the country well. For that reason alone it was destined for oblivion. The central banksters have proven that they are the definitive parasites in all money matters."
Glass-Steagall Essential Banking Regulation

The middle class has been bled-out.
"What is even more striking is that among Americans who earn more than $75,000 per year - a third more than the typical U.S. household earns - almost half also said they wouldn’t be able to cover a $500 surprise expense. "
"The Bankrate survey findings echoed research published last year by the Federal Reserve, which found that 46% of respondents said they would be challenged to come up with even less, or $400, to cover an emergency expense, and would likely borrow or sell something to afford it. When the Fed asked what types of emergency expenses Americans had actually faced in the last year, more than one out of five cited a major unexpected medical expense. The average expense: $2,782, or almost seven times higher than the Fed’s hypothetical $400 surprise bill. "
"The Reality Is, Half Of Americans Can?t Afford To Write A $500 Check" | Zero Hedge

"This year, we have the [19th National Congress of the Communist Party of China] in the fall, "
" China is creating debt five times faster than incremental GDP. Beijing can grow the economy with ghost cities and high-speed railways to nowhere, but that’s not free, and it’s not sustainable.
Gordon Chang: 'China Is Going to Go Into Free Fall'
After the Party congress, China is going to go into free fall."
"China Accounts For Half Of All Global Debt Created Since 2005." So, what happens to global liquidity when China hits the wall at mach7 ?
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Old 03-07-2017, 07:01 PM
Danny B Danny B is offline
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NO zombies to be seen

Kunstler deserves special mention for his writing style,
Great Expectations (Not) - KUNSTLER
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Old 03-08-2017, 04:00 PM
Danny B Danny B is offline
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Marching downhill

MOSSAD /CIA created Stuxnet and it got away and created havoc. As most people know, the entire? toolbox of CIA hacks has been released. Vault 7 is the biggest Pandora’s box yet. Hundreds of banks and other corporations were hacked before the release of Vault 7. What will happen when the hackers get the best tools to be had?

Margin debt is back up to nosebleed territory; https://www.advisorperspectives.com/...277b47d2a6.png
The FED backstopped the investors somehow believing that it would only be a temporary measure. BUT, trickle-up economics can't work when too few people are working.

"Obama and his minions jabber about the tremendous jobs recovery during his reign of error. In 2007 there were 122 million full-time workers among a working age population of 233 million, or 52.3%. After Obama’s eight year economic “recovery”, there are 125 million full-time workers among a working age population of 254 million, or 49.2%.

We’ve added 3 million full-time jobs in the last 9 years, and the captured mainstream media touts this as a success story. The deceitfulness – it burns. When 125 million full-time workers, of which 22 million are non-producing government drones, have to support 102 million non-working Americans, most living on the dole, you have a financially unsustainable paradigm."
Personal spending has gone off a cliff, http://www.zerohedge.com/sites/defau...01_spend_0.jpg

"And if anyone believes that the GOP will patch up its differences and fall into ranks to vote a $24 trillion debt ceiling through in order to accommodate the Trump tax cuts, a huge defense increase, border walls and thousands of more armed guards, they need look no further than the Obamacare “repeal and replace” campaign.
It’s already DOA."
"This prospect means, in turn, that there is no path to a Congressional majority to raise the debt ceiling when it freezes into law at about $20 trillion on March 15."

Sooner or later, the fallout from automation will have to be addressed. Until then, we will drag along the bottom with falling spending and falling consumption.

There is SO LITTLE appreciation for the fact that the working man has been replaced by the machine. We invented machines to take away the physical burden of heavy labor. Now, we have machines to take away most of the burden of mental work. The owners of the machines insist on being paid as if it were a human doing the labor.
Bankruptcies are done by machines now. They still charge ~ $3,000. They should charge 5 bucks plus filing fees. Our economic system just doesn't work when the parasites outgrow the host.
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Old 03-10-2017, 05:52 AM
Danny B Danny B is offline
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Coming attractions,,, NY Times

Coming attractions; Are We Witnessing The Weirdest Moment In Economic History? | Zero Hedge
It's 1994 Again: Why Albert Edwards Expects An Imminent "Bond Market Bloodbath" | Zero Hedge
Marine Le Pen is getting a reality check; Marine Le Pen: "I Will Introduce The New Franc At A Rate Of One-To-One To The Euro" | Zero Hedge

More coming attractions; https://dailyreckoning.com/four-economic-triggers-2017/
The New York Times has done some soul-searching;
" When it bursts, there will be no new round of bailouts like the ones the banks got in 2008. Instead, America will descend into an era of zero-sum austerity and virulent political conflict, extinguishing even today’s feeble remnants of economic growth.

THIS dyspeptic prospect results from the fact that we are now state-wrecked. With only brief interruptions, we’ve had eight decades of increasingly frenetic fiscal and monetary policy activism intended to counter the cyclical bumps and grinds of the free market and its purported tendency to underproduce jobs and economic output."
state-wrecked That would be money printing to support crony capitalism and socialism.
"above all, bailing out Wall Street — they have now succumbed to overload, overreach and outside capture by powerful interests. The modern Keynesian state is broke, paralysed and mired in empty ritual incantations about stimulating “demand,” even as it fosters a mutant crony capitalism that periodically lavishes the top 1 percent with speculative windfalls. "
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Old 03-10-2017, 03:41 PM
Danny B Danny B is offline
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Creeping parasitism,,,, creeping socialism,,,killing the family

When money/capital is invested, it becomes ill-liquid. It goes into tangible things and can't be readily paid back as money. There have always been periodic bank runs for one reason or another. The bank isn't a storehouse of all the depositor's money. In a panic, they simply run out of cash. The original charter of the FED allowed it to make overnight loans from it's discount window for good collateral only. This is a perfectly logical way to deal with human emotions that cause bank runs. The original charter of the FED was a good idea. It brought enough confidence and stability that bank runs became very infrequent. Subsequent changes to the FED charter have made it a completely different beast.

The FED now follows a mantra of constant 2% inflation as being GOOD for the economy. 50% of the cost of everything that you buy is for finance costs. BUT, this isn't so much for actual finance, it is for speculation.
100% markup to keep all the speculators in business. Since the stock market doesn't produce anything tangible, it is simply a parasite. It is a VERY popular parasite because so many people depend on dividends and profits. Those dividends must come from somewhere. The consumer pays them. Those who are invested in the stock market receive dividends to offset the extra cost they pay as a consumer. Those who are not invested in the stock market pay the full burden of the parasitic drain from the stock market.

For decades, the head of the FED has been a jew. For decades, the FED has insisted on expanding the money supply by 2% or more. It wasn't always this way.
"Consider the following. William McChesney Martin fought against a proposed 2% inflation target, stating that “there is no validity whatsoever that any inflation, once accepted, can be confined to moderate proportions.” At a hearing, he summarized his views on how to steer policy in a free society: "We are dealing with waste and extravagance, incompetency and inefficiency, the only way we have in a free society is to take losses from time to time. This is the loss economy as well as the profit economy."
"Now the Fed seems to be diametrically opposed to these views. It is openly pursuing a 2% inflation target; and its actions since the 2008 financial crisis have been specifically designed to prevent losses."
" When William McChesney Martin left the Fed in early 1970, financial industry profits as a percentage of total stood at 15%. Today it is double that amount"
"William McChesney Martin’s tenure, the economy and the stock market clocked some remarkable gains, with very little inflation and moderate credit growth"
William McChesney Martin was not jewish.
"In contrast, his successors particularly since Alan Greenspan all have brilliant academic credentials in economics, but very little hands-on experience in real world affairs"
The Fed Then And Now ? Remembering William McChesney Martin, Jr. | Zero Hedge
These brilliant academic credentials are worthless in the real world of business.

Pox Americana has managed to unite much of the world against it. This will be a big deal going forward.
Washington Makes Biggest Geopolitical Blunder Since 1776
Even, that insane criminal Netanayahooo has figured that the winds of change are blowing against him,,, and the West.
Netanyahu Demands Summit With Putin After Russia and Iran Ruin Israel’s Plan For Syria

"Socialism has necessitated equal rights because politics have also targeted the individual for regulation and taxes. If there was nothing government could do to a woman, then we would return to the ancient days of Athens. Once you imposed income taxes (direct taxation), which the Founding Fathers prohibited, then everything changed. Today, women have lost the right to stay home and raise the children in the average home because it takes two incomes to pay the taxes that in 1950 were paid by just one salary. The issues of equality in the work force have been more important ONLY because of socialism."
OK, then,, you force the women out of the house so that they can pay taxes. The tax money is used to finance socialism and BIG government. Socialism focuses on consumption only and leaves productivity to blow in the wind. Socialism has always been extremely short-sighted and always crashes.
ALL MANNER of productivity crashes; US Fertility Rate At Lowest Point Since Records Began In 1909 | Zero Hedge

We just aren't going to win on this one; https://www.armstrongeconomics.com/a...ily-structure/
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Old 03-11-2017, 02:56 PM
Danny B Danny B is offline
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Reality slowly coming into view

Nothing much new going on. The big boys are pulling OUT of the stock markets because they see that valuations are WAY too high. The private investors just seem to miss ALL the obvious signs.
Investors cash out of U.S.-based junk bond funds | Reuters
The Smartest Money In Finance Isn't Buying This Rally. | Zero Hedge
When California got into a financial tight squeeze, it sold revenue anticipation bonds.
The entire Eurozone is crashing badly and they want to offer floating rate bonds. NOBODY will buy them. The Eurozone is shrinking but, the bonds would be linked to growth.
"Global efforts to create a market for growth-linked bonds that could help avert debt crises have stalled because none of the wealthy economies backing the drive are willing to take the lead and be the first to issue, sources told Reuters."
"They were told that the main obstacles to the project was a lack of investor demand and the stigma attached to such instruments, according to two sources close to the discussions. These kind of bonds have so far only emerged from debt restructurings as a way to coax creditors to accept writedowns. "
They're trying to kick the can just a bit further down the road. G20 plan to stave off debt crises stalls as no country takes lead | Reuters

3/11 Oil’s plunge below $50 sends options trading into a frenzy – Bloomberg Maybe they will all go and run off a cliff.
3/11 US subprime auto loan losses reach highest level since crisis – Bloomberg No kidding,,, maybe it is all those liar-loans. Whuda thunk?
3/11 US stocks rise, dollar falls as data back hike: markets wrap – Bloomberg They pulled that "data" right out of their culo.
3/11 Massive cascade of eurozone defaults coming up – Mish
What a surprise.
3/11 As ECB charts economic course, politics complicate the picture – NY Times
3/11 European Central Bank: Global politics now the bigger risk – Crossroads Daily
No kidding,,, you mean that there is a connection between politics and the economy?
3/11 Why do politicians continue to push the zombie creed of austerity? – Guardian That "zombie creed" comes straight from academia.
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Old 03-11-2017, 03:22 PM
Danny B Danny B is offline
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Oil and Gull Island

Lindsey Williams is intimately connected to the oil business in Alaska. He wrote a book, "The Energy Non-Crisis".
The Energy Non-Crisis by Lindsey Williams
20+ years ago he wrote about a place called Gull Island. He said that test wells showed that they had found enough oil to last 100 yeas. It was all capped. Move forward 20 years and they are now going to tap Gull Island.

There is a LOT of oil in Alaska; Repsol Announces Largest U.S. Onshore Conventional Discovery In 30 Years | OilPrice.com
FAR more than is let on to the public. The reserves are generally hidden to preserve price support. While fracking is getting more cost effective, it still doesn't have a long-term future. The Saudi national oil company is up for sale but, it is only believed to be worth 10% of the asking price. One would guess that they are running out of oil.
As the dollar crashes, we won't be able to pay for imports and will have to rely on domestic supplies. The problem comes in that the original ALYESKA pipeline is abrading from the sand in the oil. The diminished flow from the Prudhoe field is causing it's own set of problems.
Alyeska Pipeline - TAPS - Pipeline Operations - Low Flow Impact Study
The Alaska oil may stay in Alaska.

Gasoline consumption is falling and the consumer is broke.
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Old 03-12-2017, 05:46 AM
Danny B Danny B is offline
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A cluster bomb in Europe

Well, it looks like the race to crash will be won by the Europeans. The mileposts in the race track are, bad banks that are saved by the State. The G-20 tried to offer bonds that are tied to growth. Nobody would buy.
Jean Claude Junker youtube headlines;
Nigel Farage; Jean Claude Juncker EU President Drunk drinks Cognac for breakfast?
Jean-Claude Juncker : " I have met several leaders of other planets "
Jean-Claude Juncker - Some Alien Species Are Worried About the EU ?!?! [CC
Jean Claude Juncker, President of the European Commission drunk and ***** slaps leaders

A week ago; https://www.youtube.com/watch?v=3MOrGI9jOFE

Evidently, he never got the memo; the Eurozone was designed/destined to crash. After the crash, the corporatocracy will take over everything.
The article 50 process for a Brexit is supposed to commence by next week. The EU says that there has to be a cash settlement BEFORE the divorce. The House of Lords said,,, piss off!

Draghi must be smoking some BAD weed.
"Weidmann said that he agreed with Mario Draghi that a country that exits should settle its Target2 liabilities in euros. But then he made an important qualification:

“What that looks like in practice, and whether a government was willing or able to meet these claims, is a wholly different issue altogether.”
"We see it exactly the same way. Any exit would cause so much financial stress, and give rise to such political recriminations on both sides, that it is inconceivable that these balances would ever be paid up. This is why a euro exit invariably constitutes a series of massive defaults – without parallel in economic history."
"Some may be wondering what is it that would cause a cascade of defaults. The answer pertains to the Eurozone treaty which designates the ECB itself cannot cover defaults or bail out nations."

"For example, if Italy Italy left the Eurozone and paid back €364 billion of Target2 liabilities in Lira at a 40% discount to the Euro, where does the money come from?

And might not Italy be tempted to just declare the entire amount null and void?"
"They" knew ahead of time that the EU could never work.

No fiscal union: No currency union without a fiscal union has ever survived
Treaty requires unanimous approval to make anything but a minor change
Single interest rate policy cannot possibly be suitable for countries with varying degrees of productivity

There is no way to fix this mess, and no way to stop the imbalances from growing until it all blows sky high in a massive cascade of defaults"
They created the Euro charter in such a manner that the voters could not escape or materially change things. When it all begins to blow all to hell,,,, they can't materially change things to attempt to save it.
The over-riding concern in all of this is the preservation of agriculture
and food distribution. In a default cascade, all trust is gone because you never know who is solvent and who is insolvent. The politicians will be frozen like a deer in the headlights. The politicians are the only ones who can organize a rescue of agriculture and food distribution.
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Old 03-12-2017, 07:22 PM
Danny B Danny B is offline
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Robots don't drink Koolaide,,, they're just stupid

Martin Armstrong's program, Socrates runs 21,000 variables and has "all" the financial history of the world for the last 5,000 years. The robo-traders on wall Street have investment algorithms.
"In some ways, Skynet is already here with Alphabet (GOOG) having bought the robot firm Boston Dynamics. Not to mention we have high-frequency trading in which bots account for up to 80% of the daily volume on the stock market and buy and sell stocks in microseconds."
The "algos" look ONLY at numbers.

"The VIX index — Wall Street’s “fear gauge” — nears its lowest point in a decade — 11.6. It peaked at 60 in the teeth of the 2008 crisis. Historically, 20’s about par.
“We haven’t seen levels this low since early 2007,” notes Andy Crowder of Wyatt Investment Research, a slight crack in his voice."
"Volatility’s so low it’s even got the Fed — the Fed! — arching an eyebrow. Per Bloomberg, some in the ranks have “expressed concern that the low level of implied volatility in equity markets appeared inconsistent with the considerable uncertainty attending the outlook.”
Has the market reached “peak complacency”? Peak robo !
"It seems the market’s guzzling orange Kool-Aid. Trump’s opening the purse for infrastructure and defense. He’ll slash taxes… gut regulations… let American business off its leash."

"David’s conclusion: The coming debt crisis will yield a financial crash of “unbelievable proportions.” But the robo-machines are missing it:

“I am seeing reality; the machines [on Wall Street] are simply trading on sound bites, tweets and hourly sentiments. "
“The optimist thinks this is the best of all possible worlds,” waxed satirical fantasy novelist James Branch Cabell. “The pessimist fears it is true.”

"the Treasury has no idea what is happening within its own joint. In the first 46 days of the Trump Administration they have burned through $294 billion of cash. They started with $382 billion. It is now down to $88 billion and dropping by the day.”
“It will soon become clear that the tax cuts aren’t going to happen, that this debt ceiling crisis is going to take down the whole system. Why did they allow $294 billion of cash to be burned up? Only $237 billion of that was to cover the inherited deficit that you can’t blame Trump for but he used $57 billion in cash to lower the debt ceiling.”

Eric Janszen in 1998 called the Ka-POOM theory.
"This theory rests on the belief that the Federal Reserve along with the other world central banks looked at Japan's several decades of economic stagnation and decided that deflationary recessions are to be avoided at all costs -- even if that means blowing asset bubbles and then cleaning up the destruction left behind in their aftermath." How much destruction?
Eric Janszen wrote VERY good stuff. Haven't seen him in years.
"This stark fact makes the Fed's entire money printing misadventure not just pointless, but dangerously destabilizing from a social and political perspective. The world's central banks, especially the Fed, have done an enormous amount of damage. "

"A credit bubble occurs when the issuance of credit grows faster than income supporting it." http://media.peakprosperity.com/imag...-2-17-2017.jpg
"Look, millions -- likely billions -- of people are at risk of getting badly hurt. When this bubble blows, it’s going to be enormously destructive and take out a lot of wealth along the way. Millions of jobs will be destroyed. What people think of as wealth will evaporate as though it never existed in the first place (it didn’t). Political dynasties and major financial institutions will be ruined."
Writers never mention death.

I can't leave out Kunstler.
"Glowering in the spotlight at center stage will be President Donald Trump, designated bag-holder of the Deep State and its myrmidons. And what’s in that bag he’s holding? Just a couple of $hit sandwiches and a hair shirt for his journey down the lonely road to exile. But getting rid of Trump would only leave the Deep State with a bigger problem: itself. That is, an economy and a society that can’t be governed by any means."
"All this hugger-mugger may be further mooted by the financial disorders of Spring 2017. Don’t underestimate the Federal Reserve’s eagerness in sending Trump on the road to political perdition with his $hit sandwiches and hair shirt. The Fed’s board of governors knows full well that their interest rate hike could sink even the carefully fabricated Potemkin appearance of a healthy economy. It would also create more dire debt-servicing problems for the US Treasury when and if the debt ceiling problem ever gets resolved. They’re holding a hand grenade in the old USA bunker and they’re getting ready to pull the pin. Just watch."
The Bag Holder and His Bag - KUNSTLER

If you're still looking for more reading, here is 4 parts of a survival story from Survival Sullivan. He writes about martial law in every burg, no matter how small. It's a bit overblown but, fairly interesting. Part one is at the bottom of the page. http://www.survivalsullivan.com/cate...were-declared/
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Old 03-14-2017, 12:55 AM
Danny B Danny B is offline
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Stay in cash, stay out of China

The economic news is all trite or BS or plain false. BUT, I can always fall back on Armstrong. His stuff is always timely.
I previously wrote about Preet Baharara prosecuting LOTS of politicians. Armstrong writes that Preet prosecuted politicians but, let all the bankers off the hook. https://www.armstrongeconomics.com/i...kers-is-fired/

His advice to an old guy with cash, "ANSWER: Right now stay in cash. We will most likely see a change come May."
NB, Warren Buffet has $ 86 billion in cash on the sidelines.

"While Europe is certainly not turning bullish, what we do see is a bounce due to the fundamental focus of the pending US debt ceiling battle looming on the horizon. Naturally, the press will be blaming Trump so we should be prepared for headlines like US going to default. The press will use this incident created by Obama and Boehner to score as many points against Trump as possible. Facts mean nothing to mainstream press. They have their agenda and that is not going to suddenly change. So we should expect dire headlines about how the USA will default and all this may provide a bounce for the Euro for up to two months until the French elections on May 7th. "
"There is traditionally the false move that get people off-side so we should bounce before we collapse."

"However, because of the Sovereign Debt Crisis, we will begin to see this surface with the Obama-Boehner Debt Crisis Crisis that pushed off into 2017 when they would not be accountable. As this starts to become more and more aware to the general public, that is when the confidence in currencies begins to drop. That appears to be on schedule for 2018.

All tangible assets will rise in value according to the decline in a currency. This will be “currency inflation”
"When we swap to a new currency, then tangible assets will make that transition in value. It is not that you will make a profit, the name of the game is that you just break-even."
This is the FIRST mention of a new currency from Armstrong. Jim Willie had been talking about the new currency for a couple of years. (Scheiss dollar)

"Democrats talk a good game how they are for the poor, but then sell tax loopholes to special interests in return for financing their campaigns. Why would the bankers and hedge funds back Democrats if they were really against them?"
"Plus we have the debt ceiling about to explode and that will hurt the dollar short-term defeating ultimately Trump for the press will turn this around and blame 50 years of spending on him.

What I do support is the people. They elected Trump because they want a change. This is the anti-establishment movement that is growing globally. This is what will bring the whole system crashing down. This is separate and distinct from Trump. "

Trump talks over and over about China. Everybody is talking about the new Silk Road. IT WON'T WORK. China has tried for years to change over from an export economy to a domestic-consumption economy. THEY CAN'T. China has pumped in trillions and trillions. They are still stuck at a global-mean-wage. With runaway automation, nobody can break free of low wages.

The hard times in China likely will become worse.
China’s economic miracle, like that of Japan before it, is over. Its resurrection simply isn’t working, which shouldn’t surprise anyone. Sustained double-digit economic growth is possible when you begin with a wrecked economy. In Japan’s case, the country was recovering from World War II. China was recovering from Mao Zedong’s policies. Simply by getting back to work an economy will surge. If the damage from which the economy is recovering is great enough, that surge can last a generation."
"The more mature an economy, the more the damage has been repaired and the harder it is to sustain extraordinary growth rates. The idea that China was going to economically dominate the world was as dubious as the idea in the 1980s that Japan would. "

"China’s deepest fear was unemployment, and the country’s interior remained impoverished. If exports plunged and unemployment rose, the Chinese would face both a social and political threat of massive inequality. It would face an army of the unemployed on the coast. This combination is precisely what gave rise to the Communist Party in the 1920s, which the Party today fully understands. So, a solution was proposed that entailed massive lending to keep non-competitive businesses operating and wages paid. That resulted in even greater inefficiency and made Chinese exports even less competitive."
China’s economic miracle is over - MarketWatch
"It now has a political problem: how to manage massive disappointment in an economy that has become simply ordinary. "
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Old 03-14-2017, 01:22 AM
Danny B Danny B is offline
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Stagflation,,, Jim Willie

"STAGFLATION: "Is persistent high inflation combined with high unemployment and stagnant demand in a country's economy"
The stock market exists for no other reason than to create price inflation. Prices have increased 40 fold. Wages have increased 17 fold.
"Why Has Labor’s Share of Gross Domestic Product (GDP) been declining for 40 Years? " "But labor’s declining share of GDP hasn’t reversed course as macro conditions change; labor’s share keeps dropping"
"Why does this matter? If wages and salaries–earned income–is a steadily decreasing share of the entire economy, this means household earned income is eroding even when the economy is expanding.

And this is precisely what we see now: household income actually declined 8.5% since 2000 when adjusted for inflation." ah yes, price inflation.

"How can households pay rising taxes, borrow more money and spend more to support a consumer economy on an income that’s shrinking even when the economy is expanding?

Answer: they can’t. “Something’s gotta give”: they can’t pay higher taxes, borrow more money (and incur more monthly payments) and spend more on goods and services when their incomes are stagnating. It simply isn’t possible."
"As every clock-cycle in CPUs (central processing units) and every byte of memory became cheaper, replacing human labor with automation became increasingly affordable.

As the working-age population expanded (for two reasons–the Baby Boom and women entering the workforce en masse)" so they could be taxed.
"If these factors continue to play out–and I see no reason they won’t–we can expect labor’s share of GDP to continue its slide as human labor is automated in a highly globalized economy.

This long-term erosion of earned income and household finances does not enable “growth” that is based on rising spending and borrowing. If these are no longer possible, the status quo has no Plan B."
Is Stagflation Stalking? | Gordon Long | Safehaven.com
Don't forget, Plan A is to keep the moneyed class rich.
It's worldwide; CONVERSABLE ECONOMIST: Labor's Falling Share, Everywhere

The FED bet the farm on trickle-down economics saving the system,,,, no matter how stupid that sounds. Well, it did NOT save the system. The price inflation that resulted from the currency inflation is crushing everybody who isn't connected to the free-money spigot. The natives are getting VERY restless.

Jim Willie recounts the major threats that we face; Seven Bowls - Current Threat

"the Trump Admin will have tremendous challenges in setting up a solid industrial base to relieve the $550 billion annual trade deficit, which is the major problem for the nation… any new asset backed USDollar would result in the forfeit of 13,000 tons of gold in the first year from the trade deficit… the USEconomy is the fast moving locomotive heading over the cliff with numerous indicators of steep decline… the US leadership has had for years no initiatives, no direction, and no progress toward remedy or reform of any imbalances or any crisis conditions…
... the USGovt is dedicated to fraud, corruption, propaganda, and war… the nation can work toward business creation and job growth if it can get past the political squabbles and sabotage and sedition… many juicy topics are included with the fascist theme permeating the entire nation with politics, industry, banking... the Fascist Business Model has been at work since the Clinton Admin... the US nation cannot be fixed in less than 10 years even if very positive moves are made"
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Old 03-14-2017, 02:31 PM
Danny B Danny B is offline
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Equities, Venezuela, Brazil,,, eliminating the debt ceiling

The price/earnings of the stock market is higher now than it was before the '29 crash. "The Wall Street Journal reports that insider buying — company brass buying its own stock — is at its lowest level in 29 years:"
"As the Daily Reckoning’s International Man, Simon Black tells us this morning the government’s cash hoard is down to just $34 billion. "
"But at 26.6, today’s P/E ratio crosses the 26.5 red line — and is bleeding from the nose holes." Robo-trading algorithms don't have nose holes.
Stock traders vacillate between fear & greed. Algos don't know fear.

The sharks are circling the malls; Wall Street has found its next big short in U.S. credit market | Business | stltoday.com
Venezuela and Brazil once had very strong economies. Both are now spiralling down into chaos. As the U.S. dollar gets stronger, it is ever-more difficult for them to service dollar-denominated debt. The same thing is starting to happen in Mexico.
“I think they are going to hike” on March 15, Sri-Kumar said on “Squawk Box,” echoing a theory shared by many analysts. “But that is going to prompt capital outflows from the euro zone, especially with the political risk. It is going to increase the capital outflow from China, and the U.S. economy will feel the impact.”

This Region Of The World Is Being Hit By The Worst Economic Collapse It Has Ever Experienced

"Despite collecting a record amount in individual income taxes, the Treasury still ran a $348,984,000,000 deficit in the first five months of this fiscal year."
"Trump is inheriting a built-in deficit of $10 trillion over the next decade under current policies that are built in. "
"It doesn’t even begin to add up, and it won’t happen when you are struggling with the $10 trillion of debt that’s coming down the pike and the $20 trillion that’s already on the books.”
“They need a budget resolution for the next fiscal year. They have to have a debt ceiling increase before then. It is a chicken and egg conundrum. "
"The market is totally missing the fact that the tax cut isn’t going to happen. That instead there is going to be this terrible showdown on the debt ceiling. This will create a panic and sell-off like we haven’t seen before." Blame the algos

"The careerist politicians are far less fearful of defaulting on the official debt ceiling, because the off budget and total unfunded obligations is so enormous that the entire international monetary system would have to be re-invented to rescue world commerce."
"If the Treasury was serious about creating financial breathing room to the burden of unsustainable current interest payments, the short term national debt should be substituted for 30 or even 50 year bond obligations while interest rates are so low. However, this strategy was never used, because the moneychangers have no intention of even providing a temporary relief to the taxpayer."
"If this is the fate that befalls us, eliminating the debt limit ceiling becomes immaterial. Trump may well have to resort to directly issuing Treasury bonds and by pass the Federal Reserve note legal tender laws."
The economy can't possibly survive on debt money.
Raising the Ides of March Debt Limit

"#3 California has the highest state income tax rates in the entire nation. For many Americans, the difference between what you would have to pay if you lived in California and what you would have to pay if you lived in Texas could literally buy a car every single year."
16 Reasons Why You Shouldn?t Live In California
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Old 03-15-2017, 03:14 AM
Danny B Danny B is offline
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Neoclassical model of banking

Lots of technical stuff on money.
" In reality in the modern economy, commercial banks are the creators of deposit money .... Rather than banks lending out deposits that are placed with them, the act of lending creates deposits — the reverse of the sequence typically described in textbooks."
" The bank does not actually make any money available to the borrower: No transfer of funds from anywhere to the customer or indeed the customer’s account takes place. There is no equal reduction in the balance of another account to defray the borrower. Instead, the bank simply re-classified its liabilities, changing the ‘accounts payable’ obligation arising from the bank loan contract to another liability category called ‘customer deposits’."
" The bank’s liability is simply re-named a ‘bank deposit’."

"How Can Banks DO This?
Professor Werner explains the reason that banks - but no one else - can create money out of thin air is that they are the only institution exempted from normal accounting rules. "
"Specifically, every other company would be busted for fraudulent accounting if they conjured new money out of thin air by reclassifying a liability (i.e. an accounts payable) as an asset (i.e. a deposit). But the banks have pushed through exemptions so that they don't have to follow normal accounting rules:

What enables banks to create credit and hence money is their exemption from the Client Money Rules. Thanks to this exemption they are allowed to keep customer deposits on their own balance sheet. This means that depositors who deposit their money with a bank are no longer the legal owners of this money. Instead, they are just one of the general creditors of the bank whom it owes money to."
"What distinguishes banks from non-banks is their ability to create credit and money through lending, which is accomplished by booking what actually are accounts payable liabilities as imaginary customer deposits,"

"Mainstream economists believe that private debt doesn’t even “exist“ as a force that acts on the economy. For example, Ben Bernanke and Paul Krugman assume that huge levels of household debt don’t hurt the economy because more debt among households just means that savers have loaned them money … i.e. that it is a net wash to the economy. To make this assumption, they rely on the myth debunked above ... that banks can only loan as much money out as they have in deposits. "

"By failing to take into account the fact that banks create money, economists and governments are sowing the seeds for future crashes. But the economics field is very resistant to change ... Economics professor Steve Keen notes in Forbes:

In any genuine science, empirical data like this would have forced the orthodoxy to rethink its position. But in economics, the profession has sailed on, blithely unaware of how their model of “banks as intermediaries between savers and investors” is seriously wrong, and now blinds them to the remedy for the crisis as it previously blinded them to the possibility of a crisis occurring."
The Banking Secret that Neither Economists Nor Laypeople Know ? Which Is Destroying the Real Economy (While Making a Few King) | Zero Hedge
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Old 03-15-2017, 03:16 AM
Danny B Danny B is offline
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Part 2 , had to break it up

Wouldn't post in one bite.

From Comments;
"On a systemic basis, once banks start pulling a lot of future money into the present to provide credit for spending that does not maintain or increase economic productivity, the future money they are paying out now does nothing to grow the economy"
"Robert H. Hemphill, Credit Manager of the Federal Reserve Bank of Atlanta, said:

If all the bank loans were paid, no one could have a bank
deposit, and there would not be a dollar of coin or currency in
circulation. This is a staggering thought. We are completely dependent
on the commercial Banks. Someone has to borrow every dollar we have in
circulation, cash or credit. If the Banks create ample synthetic money
we are prosperous; if not, we starve. We are absolutely without a
permanent money system. When one gets a complete grasp of the picture,
the tragic absurdity of our hopeless position is almost incredible, but
there it is. It is the most important subject intelligent persons can
investigate and reflect upon. It is so important that our present
civilization may collapse unless it becomes widely understood and the
defects remedied very soon."
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Old 03-15-2017, 03:17 AM
Danny B Danny B is offline
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3 break it again

"And the Bank of England writes:

Just as taking out a new loan creates money, the repayment of bank loans destroys money. For example .... if the consumer were then to pay their credit card bill in full at the end of the month, its bank would reduce the amount of deposits in the consumer’s account by the value of the credit card bill, thus destroying all of the newly created money.
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Old 03-15-2017, 03:18 AM
Danny B Danny B is offline
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4 break it AGAIN

Odd, right?

How's about this:
Greenspan Was Worried that the U.S. Would Pay Off It’s Debt, Causing the Fed to “Lose Control of Monetary Policy” … So He Suggested Tax Cuts for the Wealthy to INCREASE the Debt"
"Avoiding facing the facts that political economy operates inside human ecology enables people to continue to propose and promote bogus "solutions" which fail to admit and address the roles of the murder systems that backed up the money systems. Moreover, that failure then enables the ways that natural selection pressures drove artificial selection systems to become most socially successful by becoming as dishonest as possible"
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Old 03-15-2017, 03:18 AM
Danny B Danny B is offline
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5 again

Socialism demands that GOV increasingly pull money from the future to finance consumption TODAY. Automation has much the same effect. The honest, displaced worker has the same needs as the worthless sluggard who has never worked a day in her life. There really is no formula from differentiating between the two. We continue to pull-ever-more money from the future.
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Old 03-15-2017, 03:39 AM
Danny B Danny B is offline
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Financialism, Not Capitalism

It probably seems like I'm trying to crash my way to 2,000 posts. THAT doesn't concern me in the slightest. Some stuff just won't post.
"It wasn’t just the Founding Fathers who called private property the “bedrock of capitalism”,
"As private property defines capitalism and freedom, it offends collectivism and socialism."
"To all sides, banking has been a subject of so much consternation because it is a basic offense to all these perhaps intrinsic ideals. To the socialists and collectivists, banks are a primary source of inequality and oppression"
"...Great Depression. Banking had become a vital, central instrument of trade and general commerce, and therefore pure emotions of the people who had by their rights as property owners deprived banks of necessary funds with which to maintain trade and the nation’s economic welfare. "

"Monetary policy is supposed to reduce instability through its various methods of currency elasticity, which is itself another form of socialism in money; "

"It is perfectly obvious that repo fails had been rising almost steadily since 2011, marked by short but intense bursts of illiquidity in the middle of 2013 and again in the middle of 2014. That all changed the week of August 12, 2015, a week we should all know very well by what happened with the Chinese yuan; not because it happened with CNY and the global importance of China, rather due to how the Chinese relate their system to the “dollar” system. Since repo fails are a highly observable form of unstable money becoming more unstable, the financial and economic results of the past year and a half are wholly unsurprising.

Since the last week in August 2016, repo fails have not been less than $200 billion (both “to receive” and “to deliver”) in any week. Of those fifteen weeks (thru the week of December 7), they have been greater than $300 billion eight times, including each of the past four weeks going back to the week after the election (which does not propose the election as the cause). Fails have been above the $500 billion level three times, and each of those weeks corresponding with a whole lot of Chinese money market instability (which does propose more than the contours of causation within a global monetary system)."

So, socialist GOV can print and print. Printing debt money for consumption just doesn't work when it comes time for repayment. Eventually, the defaults mount up. Since the debt can NEVER be repaid, it is debt-free in a manner of speaking. There is speculation that Trump will eventually be forced to by pass the FED. That should be exciting.
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Old 03-15-2017, 04:17 AM
Danny B Danny B is offline
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Still sliding downhill

"Long USD Will Be the Biggest Spoof Ever: And once the world has loaded up on dollars, there will be nothing left to go to when the Fed aggressively debases our currency to increase inflation and decrease our debt burden."
How will they load up on dollars if Congress won't raise the debt ceiling?
The article is about politics driving the markets and NOT the economy.
While the World Binges on USD, Gold Awaits the Purge | Zero Hedge

Excellent Videos on Money Systems Marijuana Party ? Parti Marijuana | Excellent Videos on Money Systems

For these articles, just take a look at the first couple of lines.
Just so you know: Total U.S. debt and other obligations now total $69 trillion
A Mountain of Debt: Is China's Economy Going To Crash? | The National Interest

Chart of the debt ceiling vs the price of gold; https://www.goldbroker.com/media/ima...t-16.40.00.png
Most of the article is BS, https://www.goldbroker.com/news/the-...ilver-669-1095
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Old 03-16-2017, 04:10 AM
Danny B Danny B is offline
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The money-pumping machine has been crammed into reverse

So many cross-currents,,,, so much deception.
Just don't lose sight of the fact that bankers like to loan money to people who can't actually pay it back. The money loaned didn't actually come from the bank,,,, it was created by the signature of the debtor. There was no exchange of anything of value. The banker hopes for a default and seizure of the tangible property. This is especially true in the case of seizure of cash-generating assets.

"the way professor Hudson does. If someone owes you a substantial amount of money, the last thing you want to do is make sure they cannot pay it back. You want such a person to have a -good- job, a source of income, that pays enough so that they can pay you back. Unless you have your eyes on their home, their car, their daughters, their assets."
"when Greece fails, that’s a success for the foreign investors that want to buy the Greek railroads. They want to take over the ports. They want to take over the land. They want the tourist sites."
None of the bailout money went to Greece. It went to German and French banks. The debt climbed from 160 B to over 600 billion. ALL according to plan.
VERY good article.

Here is a link to a previous post about States going bankrupt. Is that the plan for all of us? It would demand a police state to hold down the revolutions.

“The first and most important thing to understand about politics is this: forget Right, Left, Center, socialism, fascism, or democracy. Every government that exists — or ever existed, or ever will exist — is a kleptocracy, meaning ‘rule by thieves."
"After police secured a search warrant, the safe was opened and found to contain $201,000 and a bill of sale for a home in Pennsylvania.

Neither the Leonards nor Kane were found to be in possession of illegal drugs. However, the state initiated civil forfeiture proceedings against the $201,100 on the ground that it was substantially connected to criminal activity because Highway 59 is reputed to be a drug corridor."

David Stockman is a former budget director for Reagan. He really know his stuff in relation to the FED budget and cash flow.
"During the run-up to the election, the deep state bureaucrats at the Treasury built up what I described Friday as Hillary’s debt ceiling “war chest,” sending the cash balance to $425 billion shortly before election day.

By contrast, shortly after the election the Treasury stopped selling new debt, and began to actually pay down maturing bills and notes. The Treasury has burned over $338 billion of cash since then. That depleted Hillary’s war chest since she wouldn’t be around to benefit from it.
Or rather, it pumped a veritable tsunami of cash into the canyons of Wall Street."
"In a word, the Treasury took its boot off the neck of the bond dealers, thereby enabling the 15% frolic higher in the stock market that has become known as the Trump Reflation Trade."
"Needless to say, those myths begin to die March 15 and the screaming aberration of the past four months — that is, a broke Uncle Sam paying down his debt — goes into reverse.

In a word, the canyons of Wall Street will get hit with a double whammy of cash withdrawal as the Fed finally launches on a long-overdue tightening campaign while the U.S. Treasury gets back into the market doing what it does best — sucking up cash hand-over-fist."
"Eccles Building consists overwhelmingly of Keynesians. They are under the mistaken impression that they have reflated the main street economy back to solid health and the nirvana of full employment,"

"the Fed has pumped so much cash into the financial system since the crisis that there is still $2.1 trillion of excess reserves.

This huge liquidity overhang means that the Fed cannot simply “announce” that it wants to peg the money market rate 25 basis points higher at its meetings; it must actually tilt the money market supply and demand balance by draining a considerable amount of cash out of the system.

Indeed, as the money price controllers at the Fed embark on a path of steadily ratcheting up the federal funds rate there will be a substantial and consistent cash drain from the canyons of Wall Street.
And that’s whammy #1 to the stock market."
"the U.S. Treasury should have been maximizing its borrowings prior to the expiration of the debt ceiling holiday on March 15 — even if it meant pushing the public debt over the $20 trillion threshold. That way it would have had a $400-$500 billion cash war chest with which to fight the coming debt ceiling battle on Capitol Hill.

Instead, at the going rate it is now going to run out of cash before even the bloody battle over Obamacare Lite now underway in the House has been completed. That means that there will not be even a glimmer of hope for the Trump tax cut stimulus and economic rebound on the horizon when the GOP backbenchers will be called upon to raise the debt ceiling by trillions."

"But here’s the newsflash that will come as a shocker to both the Wall Street casino and the Savings and Loan Guy running the Treasury Department. These gimmicks only work because the public debt ceiling includes about $5 trillion of trust fund “investments” that represent nothing more than intergovernmental accounting confetti.

Needless to say, borrowing from the public means draining cash from the government bond dealers who must bid for Uncle Sam’s newly issued securities. And there’s your #2 whammy to the stock market."
"The first is that both the Fed and the Treasury will be draining hundreds of billions from Wall Street on a recurring basis for the first time in 20 years."
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Old 03-16-2017, 04:21 AM
Danny B Danny B is offline
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maintaining the power structure has gotten very costly

The FED has just one "product", and that is DEBT. Too many people are maxed-out on credit and can't spend any more. NO PROBLEM. "They" will just erase the bad stuff on their credit report so that they can afford to spend LOTS more. Video; The Elite Are Prepped And Ready For The Economic Crisis | Zero Hedge

" The fragmentation of political consensus (i.e. the consent of the citizenry) is presented by the Powers That Be and their media servants as being a disaster. The implicit fear is real enough: how can we rule the entire nation-empire if it fragments?

As I noted the other day, fragmentation terrifies the Establishment of racketeers and insiders, for when the centrally-enforced rentier skims and scams collapse, those who own and control the rentier skims, scams and rackets will lose the source of their wealth and power. "

" In a top-down, centralized hierarchy of political power (i.e. the central state), the pharmaceutical company only needs to lobby a few authorities in the central state to impose its rentier skim/scam on the entire nation.

Lobbying/bribing a relative handful of federal officials and elected representatives is remarkably inexpensive: a financier or corporation only needs to focus on these few key players, and smoothing the PR pathway via a highly concentrated corporate media.

A mere $5 million spent in the right places guarantees $100 million in future profits-- profits earned not from open competition in a transparent market, but profits plundered as rentier skims"
"If we look at the source of the 2008 Global Financial Meltdown, we find that the centralization of capital and power were the primary enablers of the meltdown. If the financial system were composed of 1,200 local banks, each of which had to comply with local and state regulations instead of five behemoth banks that had the capital and klout to buy Washington D.C.'s approval of their leverage and shady dealings"

" If we want a resilient, flexible, low-cost system, we must replace the centralized system of enforced consent and artificial consensus with a fragmented, transparent one of smaller scaled, competing organizations of governance, capital and enterprise.

The intrinsic limits of a corrupt, inefficient and rigged-to-serve-the-few-at -the-expense- of-the-many centralized pyramid of power and wealth is why centralization is the problem rather than the solution:"
Good article, Of Two Minds - Why Fragmentation Is the Solution, Not the Problem

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Old 03-17-2017, 02:54 PM
Danny B Danny B is offline
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It's really hard to tell if the monetary mavens are incredibly stupid or incredibly blind.
"The implication from the market's reaction is that at current levels, financial conditions are poised to make a substantial positive contribution to growth in 2017, from a starting point of essentially full employment, inflation close to the target"
The money supply has been growing at about 9% per year and price inflation is about 10% per year. Unemployment is at about 23%.
"This Is Not The Reaction The Fed Wanted": Goldman Warns Yellen Has Lost Control Of The Market | Zero Hedge
"In other words, whether on purpose or otherwise, according to Goldman, the Fed, which now wants to tighten financial conditions (i.e., see asset prices lower) not only achieved the opposite, but has now lost control of the market."
In the battle to save the rentier class, there is no lie too big or too obvious.

In the battle to save the State, there is no tax too big and no benefit cut too big. The most important factor is to save the bureaucratic herd.
" In 2014 a new Federal law made it possible for pension funds to cut benefits for their recipients.
[I]n October of [2015] the canary in the coal mine fell over and died when Illinois announced that the State was posting pension payments because it ran out of money.
Fast forward a few more months and things have been taken to the next level. The Central State pension fund in Kansas became the first such fund to take advantage of the 2014 law as 400,000 Americans who depend on their monthly pension income to pay for such things as their mortgage, groceries and medical expenses saw an average of $1,400 per month sliced of their monthly benefits."
"But take a look South Carolina’s government pension plan, which covers roughly 550,000 people — one out of nine state residents — but is a staggering $24.1 billion in the red"
"California’s Calpers public retiree system is notoriously underfunded and doomed to implode. Chicago, Detroit and other urban wastelands are sagging under abysmal debt. Dallas, Texas pensions went insolvent. Puerto Rico is nothing but a propped up holding corp(se)."
Are Collapsing Pensions "About To Bring Hell To America"? | Zero Hedge

Post WW II, America became a high-wage, high-cost State. We are painfully transitioning to a low-wage, low cost State. The low wages come first and later the low costs will arrive. There will be an explosion of defaults and bankruptcies before that happens. We have 10% price inflation with continual wage deflation. The whole economy is shrinking in spite of all the money printing. The printing was directed at the top loop only. The younger cohort of the lower loop is sliding down the fastest because they can't move into employment.
We also see in Japan that the younger cohort refuse to form families so there are fewer and fewer people in the consuming class. Japan has the highest number of robots per capita and the Japanese salaryman has to work 16 hours a day to keep his place. NO confidence = no children.

The bond market pulls the future earnings of the (growing) working class to the present day. What happens to the solvency of the bond market when the working class is suffering wage deflation and high unemployment? The finance industry may delude itself into believing that it produces wealth. It produces parasitic drain, nothing else.
There have been proposals for a financial-transaction tax (Tobin Tax) to pull a bit of money from the finance industry but, they block it. Historically, it has been ANATHEMA to tax a man's labor. Currently, it is fine to tax a man's labor. Currently it is NOT fine to tax the profits of the speculator who produces NOTHING.
Labor and wages are falling way behind. What does this eventually imply for the bond market?
Get Ready for a “Credit Implosion” | Casey Research

The finance industry is going to (delude) itself right off a cliff.
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Old 03-18-2017, 02:25 AM
Danny B Danny B is offline
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Report from the gold-bugs and pessimists

Repost Get Ready for a “Credit Implosion” | Casey Research
" If 2.60% is broken on the upside—if yields move higher than 2.60%—a secular bear bond market has begun. Watch the 2.6% level. Much more important than Dow 20,000. Much more important than $60-a-barrel oil. Much more important that [sic] the Dollar/Euro parity at 1.00.

Since Gross issued this warning, I’ve been watching 10-year Treasurys like a hawk.
On Monday, it finally happened. The 10-year hit 2.62%.
"Our highly levered financial system is like a truckload of nitro glycerin on a bumpy road"

The gold-bugs do us a favor by pointing out things that aren't generally known.
"But Bernanke did not “strictly limit” the supply of U.S. dollars. He engaged in the Bernanke Helicopter Drop, the most-reckless dilution of a major currency in history. In four years, he quintupled the supply of U.S. dollars – quintupling a supply accumulated over the previous 80 years, combined. "
Hey, it's very costly to save all the banks and gamblers.

"What is meant by that is that we have previously had episodes of extreme unemployment and/or poverty. But we have never had permanent levels of unemployment and poverty at the levels they are at today. Historically unprecedented."
"This is because real wages have been in a downward spiral for more than 40 years. Ever since the bankers removed their own Golden Handcuffs by assassinating the last vestige of our gold standard, they have been diluting our currencies at an historically unprecedented rate (except for Germany).

Real wages have fallen by more than 50% . A two-wage family of today does slightly less well than a single-wage household of 45 – 50 years ago. This translates into a drop of more than 50% in our standard of living. "
"An imbalance between rich and poor is the oldest and most fatal ailment of all Republics.
- Plutarch, Greek philosopher (46 – 120 CE)

For more than 40 years, wages have spiralled lower. For more than 40 years, our economies have gotten sicker and sicker and sicker. Coincidence? "
Our wages haven't gotten nominally lower. They just haven't grown as fast as the FED created price inflation.
"Regular readers now understand the inflation/GDP charade . If you lie about inflation, then for every percentage point you understate the rate of inflation you overstate GDP, since all GDP calculations must be fully deflated by the current inflation rate. Our governments grossly understate the real rate of inflation. This means they grossly exaggerate real GDP. Our crippled economies are not growing, they are shrinking. "
Shadowstats says that we are shrinking by about 7%.

Sr. Price; "I would like to take this chance to share a few of my thoughts on this. To me it is pretty clear that the American gold is encumbered. Not because of the usual reasons found on the web but because America defaulted on its gold under the Nixon administration. There are still, many foreign claims on that gold. If America starts to use that gold officially, the gold vultures, like the bond vulture funds, will be out en masse and with force. So it is in America’s best interest to ignore that gold – and gold in general. "
England tried to pick up 3400 tons of gold 3 days before Nixon closed the gold window.
" If I were in the position of the globalists, I would aim for the Roman model. Split the money concept. Currency for spending and settling debts but use gold and silver as a final debt extinguisher. This would function to prevent the kind of mess the EU countries are now in. The debts of the south are the assets of the North. This is a recipe for disaster. "
Jim Willie has long written about all trade settlement being done in gold.

And now, the good news,,,, from Armstrong;
"As a result, there is nobody in Washington, Republican or Democrat, who would prefer to prevent a crisis when they will never receive a vote or any credit. It is always better to allow the crisis and then emerge as your champion. Therefore, the sad realization is that we simply must CRASH & BURN, for only then will anyone pay attention.

Keep in mind that this CRASH & BURN is government – not the private sector. Therefore, the danger lies in government assets"
"Consequently, I simply gave up. I have worked behind the curtain for 40 years even testifying before Congress and answering questions in the middle of a panic. There is absolutely NOTHING anyone can possibly do to change the trend – IMPOSSIBLE."

"ANSWER: Nobody can manipulate the currency market forcing it to change trend. Trump will fail because he cannot manipulate the dollar down when the FX market’s $5.3 trillion per day in trading volume dwarfs the equities and futures markets. Yes, the Treasury has less than $150 billion in its Exchange Stabilization Fund to try to manipulate the currency. Good luck. That amounts to a drop of rain in the ocean."
"We are looking at a crisis in European banking as their reserves are made of of Euro members. The ECB hold 40% of member states bonds. A breakup of the Eurozone holds far more chaos than anything you have read about Europe – AND THAT IS AN UNDERSTATEMENT. Then we have the Sovereign Debt Crisis that will hit Europe, Japan, China, and the United States. There is no escape."
Interesting article on capital flows; https://www.armstrongeconomics.com/w...-he-will-fail/

"The Democrats led by Chuck Schumer and Nancy Pelosi are fighting tooth & nail to save socialism." "The Democrats are tearing the country apart and in their quest to stop Trump at all costs, will indeed change the United States as we have known it. They are going way too far this time."
"The Republicans are hopelessly lost. They cannot fix the system. The only way to do this is to the scrap the entire mess. Anyone who could not obtain insurance should simply be put on Medicare/Medicaid. Nancy Pelosi is just a worthless politician hell bent of maintaining a corrupt system that is doomed. She said: “The Republican bill is one of the largest transfers of wealth from working families to the richest people in our country — Robin Hood in reverse.” (Pelosi lives at a far higher standard or living than I ever did! She is by no means middle class.)"

"Then you have the Democrats and the left, allegedly funded now by Soros, deliberately creating civil unrest to keep the socialist system intact. However, we have crossed that point of no return. The silent majority who voted for Trump have been pushed as far as they can go. Remove Trump, and we will descend into civil war. There will be no other democratic process to save the future "
"The left is never satisfied with allowing people to make their own decisions. I have been in discussions and the undertone is always the same. They hate anyone who makes more than they do and they covet whatever anyone else has and feel wronged that they are being cheated out of the same thing, but never wish to work for the same goals. The bottom line has always been that whatever society earns, belongs to the state and the state decides how much they are allowed to keep."
"This is the GREED of insurance companies who are perhaps far worse than the bankers ever were. They own the Democrats and the press pretends this is a transfer of wealth from the poor to the rich when it is the exploitation of the youth and no money goes to the “rich”. It is going to the Insurance companies who have paid the Democrats to impose Obamacare on the nation."

"If the Democrats force Trump out or tie the government in knots so nothing gets done, I may have no choice but to leave, "
Obummer ran the national cash register down close to zero. Trump should have reflated it immediately. BUT, Trump has a talent for getting his opponents to fight each other. He can't submit a budget until the debt ceiling is raised. He can post his budget and wait for congress to raise the limits. They will fight endlessly. BUT, time grows short. He can play innocent and let congress take the heat. The more heat, the more they will be paralysed.

Armstrong writes that the crash and burn will be limited to GOV debt. How can he write that? States, counties, cities and banks hold huge amounts of GOV debt. No amount of stability,,,, no amount of change will bring back the lost jobs. Even with 22 million working in GOV jobs, unemployment is at 23%. Wiping out GOV employment will drive down consumption that much more. The stock markets are NOT going to do well when the consumer can't consume.
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Old 03-18-2017, 04:07 AM
Danny B Danny B is offline
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Latest from Jim Willie

I wrote this to Jim Willie;
Long ago, you wrote about the scheiss dollar.
Martin Armstrong recently wrote about a new american currency
Long ago,You wrote about gold trade settlement
Hugo Salinas Price recently wrote about gold trade settlement

His reply;
next is Germany flipping East
next is Saudi Kingdom collapsing

Germany is guarantor for TONS of European bonds. Germany is rich and fat right now but, a lot of their "assets" are foreign debt. Jim thinks that they will pivot to Russia. It would make good sense.

Saudi is run by inbred wahabbi idiots. They foolishly got into war with Yemen and they aren't doing very well. They are obliquely attacking Iran. Iran is rich and NOT run by Arabs,,, it's run by Persians. Saudi recently offered up for sale their national oil company,,, ARAMCO. The tenders seem to be only 10% of what was expected. It has long been speculated that they are running out of oil. Many of their wells have been damaged from pumping in too much salt water. Some wells output 30% seawater.
Idiots shouldn't gamble.

Trump did NOT block muslims from Saudi even though it was all Saudis who attacked the WTC towers.
Rense; Qataris Own More Of London Than The Queen
As Saudi disintegrates, their money will flow into American banks.
Even the Chinese are sending money here because they trust the American banks more than they trust the Chinese government.
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Old 03-18-2017, 02:40 PM
Danny B Danny B is offline
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Consensus is not spelled F*** Y**

We're all going to hear about endless fighting over the debt ceiling and budget. I won't rehash all of it but, here are a few observations.

"U.S. Treasury has less cash on hand than Apple or Google,
The Trump administration is pushing hard to get the debt ceiling raised, and this is a complete reversal from how Donald Trump felt about the debt ceiling back in 2013. The following comes from the L.A. Times…

Trump sided with hard-liners in 2013, publicly opposing an increase. “I cannot believe the Republicans are extending the debt ceiling — I am a Republican & I am embarrassed!” he tweeted then.
As things get tighter and tighter, the Trump administration will become increasingly desperate to get the debt ceiling raised. No mention of congress getting desperate?
You would think that since Republicans control the House that this should be easy, but the truth is that there are a lot of conservative Republicans that are not inclined to agree to a debt ceiling increase without substantial accompanying budget cuts.
The Dems indicate that they will raise the debt ceiling if there are no stipulations.

"If they raise the debt ceiling and continue adding more than a trillion dollars a year to the national debt, they will lose all credibility with conservative voters on fiscal issues.

But if they try to force the federal government to start living within its means that is going to severely harm the economy in the short-term." and long term
"Donald Trump is going to have to try to figure out a way to navigate this crisis. He has already promised that he will not touch Social Security and Medicare, and those are the two biggest drivers of our budget deficits. In fact, it is being projected that entitlement spending and interest on the debt will eat up every single penny that the federal government takes in within 20 years."
"In addition, many of the conservatives in Congress absolutely hate the new Republican health care plan, and they hope to use this debt ceiling crisis as leverage to change the bill.

If Trump can’t work out something with conservatives, perhaps he could turn to the Democrats. But most Democrats are extremely resistant to work with him on anything after all that has been said and done, and so for Trump to get a deal with them he would have to make extreme concessions."
It's called, "gridlock"
The Debt Ceiling Deadline Has Passed, And Now The Biggest Test Of Donald Trump?s Presidency Begins?
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Old 03-18-2017, 04:44 PM
Danny B Danny B is offline
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Regulatory capture and crony-capitalism will bring our final destruction

"Yellen may not believe the Fed is “pushing down on the accelerator,” yet the truck is racing down the mountain.
March 14 – Bloomberg (Claire Boston): “Companies are issuing bonds in the U.S. at the fastest pace ever"
Credit Bubble Bulletin : Weekly Commentary: Another Missed Opportunity
" It was an article I recently stumbled upon in Bloomberg. In it, the author explained how U.S. companies are issuing debt at breakneck speed. You see, U.S. companies have already issued more than $360 billion worth of investment-grade bonds just this year."
" In short, the bond market is unraveling. This isn’t some conspiracy theory. It’s a fact.
And yet, investors are buying bonds by the fistful.
These people don’t understand how much danger they’re in. Hell, they don’t even know what they’re buying anymore."
Gross leverage ratio for US companies http://d1w116sruyx1mf.cloudfront.net...is-soaring.png

Cash to debt ratio; http://d1w116sruyx1mf.cloudfront.net...ash-levels.png
A Corporate Debt Crisis Is Underway… And Nobody Cares | Casey Research

" A week ago, bullish sentiment among investment advisors soared to the highest level in 30 years" "My impression is that the S&P 500 is likely to surrender its entire gain since 2014 merely as the opening loss of the coming cyclical decline. "
Credit Bubble Bulletin : Weekly Commentary: Another Missed Opportunity

"Rewarding failure encourages more failure. There were over 8,000 banks in the US and it was only 10 or 20 who almost destroyed the world. They should have paid the price for their criminality and recklessness. Their executives should have gone to jail. Not one did."
"Eisman, the man of the people, said nothing about how real median household income is lower today than it was at the height of the crisis, while Wall Street bonus pools are at record highs. He said nothing about senior citizens who used to count on 5% money market returns to scrape by now getting .25% because the Fed used ZIRP to save the Wall Street banks."

(He) "completely ignores the fact the Fed bought $3.6 trillion of their toxic debt at one hundred cents on the dollar, and the Obama administration took on $10 trillion of national debt to give the economy the appearance of recovery " "Even though stock valuations are at highs only seen in 1929, 2000, and 2007, Eisman sees no stock market bubble."

Short and to the point; https://www.peakprosperity.com/blog/107415/banks-evil
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Old 03-19-2017, 06:16 PM
Danny B Danny B is offline
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Private equity,,,, The end of a very long road

I won't mention the D*** C****** but, Kunstler has a good view on health care.
"As if being trapped in a political minefield isn’t bad enough, the remaining safe patch Trump is stranded on turns out to be the LaBrea Tar Pit of health care reform. At this point, the crusade is doing worse than going nowhere — it’s getting sucked into the primordial bitumen where the mastodons and camelops sleep."
A Bad Week and Getting Badder Bigly Fast - KUNSTLER

Michael Hudson on how you got where you are; How Bankers Became the Top Exploiters of the Economy
Armstrong always has a good historical perspective.
"Meanwhile in Greece, people are not taking property that is left to them because they cannot pay the inheritance taxes to accept the property. This was one of the final stages in the collapse of Rome. People just walked away from their property because of taxes."
"The Left is fighting so hard to keep dominating everyone else, that it is hard not to see how society in starting to implode in the West. In Norway, the hunt for taxes has been so bad, they have now even been raising property taxes to include a dog house in the back yard."

There are hundreds of trillions of currency units (mostly disguised as debt) that are sloshing around the economy looking to, NOT get vaporized. The productive economy shrinks and the "money" has no where to go to get a return. Return was mostly killed off by ZIRP and now, investors are just looking for a safe haven. Corporations are hard at work trying to make safe havens,,,, unsafe.
" It also said it had carved out what analysts estimate are about $500 million worth of assets into a separate subsidiary, out of bondholders' reach, diluting lender collateral.

Meanwhile, there were reports that competitor Hudson's Bay Co. wants to buy the company, but leave the debt behind. "
"Retailers backed by private equity dominate the list of most-distressed U.S. store operators. "
"Take J. Crew, which finagled a way to insulate valuable intellectual property (think: trademarks, web domains, etc.) from creditors by transferring the assets into a separate subsidiary. "
"Citigroup analyst Jenna Giannelli pointed out PE firms haven't taken a lot of money out of these retailers yet and are doing everything they can to stave off bankruptcy in order to protect their equity. She said bond investors should be concerned about weak bond covenants giving the companies "flexibility to move assets out, to the detriment of the creditors."

Venture capital and private equity are pulling out of the Silicon Valley too.
Signs That The Silicon Valley Tech Bubble Is About To Burst | Zero Hedge
San Francisco RE, http://my.paragon-re.com/Docs/Genera...ercentages.jpg

Back to Armstrong. He only mentions gold when prodded. As an investor, he has no use for an asset that just sits there and does nothing. I believe that he has a blindness towards gold.
"There are times when the private sector cannot stand and everyone runs to bonds/cash. Likewise, there are times when government can no longer stand and the only thing that survives is private assets." No mention of gold.
"People get burned on real estate, they then move to stocks. The get burned in stocks, then run to bonds/cash. Then they run to commodities. The key remains when there is a great alignment, which we are headed into. That warns the big Crash & Burn lies in government not private for this one."

Armstrong is a Princeton professor and has an unequalled command of historical fact. He understands all the intricacies of economic action. He mentions the demographic crash but, makes no specific projections. He is aware of birth control but, makes no projections. He seems to be very weak on the capabilities of cyberwar.
Economica makes very good cause to believe that the FED funds rate is locked into the population of the consumer class. Armstrong claims that the crash will be in public debt and not private. FED GOV is spending about 24% of the GDP. How can a crash in GOV debt leave private debt unscathed?
How can the debt-money system survive shrinking population and shrinking consumption?

If the industrial economy has no niche for you, you have to revert to an agrarian economy or a hunter-gatherer economy. What if the agrarian economy has n o niche for you? https://www.youtube.com/watch?v=N7Q9ITJAcOE
A currency war is concentrated on preserving domestic productivity and JOBS.
There is no possibility that our current system of debt-money can survive widespread unemployment, falling birthrate and crashing consumption. Armstrong is hallucinating if he thinks that private enterprise will come through OK while public debt crashes and employment disappears.
Our systems are FAR to complex and integrated to survive a collapse of credit.

The bankers refuse to see that the system is no longer workable. The PTB and deep State refuse to see that the working man has been superseded. Nobody is willing to relinquish power and advantage to see general society survive.
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Old 03-20-2017, 01:05 AM
Danny B Danny B is offline
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wilfull blindness on all fronts

The investment "community" seems to embrace a wilful blindness. They don't read Shadowstats because it doesn't paint a rosy picture.
Shadow Government Statistics - Home Page The sub-prime crash was predictable with classical economics but, NOT with neoclassical economics. I see TONS of BS garbage in print at supposedly reputable sites.
"The official jobless rate fell to 4.7 percent, from 4.8 percent in January,"
"the official jobless rate is near what the central bank considers full employment — a threshold where, in theory at least, everyone who wants a job at the going rate can find one.”
"Fed chairman Janet Yellen sees the uptick in new hires as a vindication of her steady-as-she-goes 8-year zero rate monetary policy that has shifted trillions to the investor class while working people have seen their incomes and wages stagnate, their prospects for retirement dwindle, and their living standards fall."

"At present, inflation hasn’t even reached the Fed’s 2 percent target while, according to Reuters, workers wages have gone up by a pathetic 6 cents per hour." How much is that in purchasing power when price inflation is running at 10%?
"Keep in mind, that when stocks double or triple in value providing mountains of cash for the parasite class for whom Yellen works– it’s a sign of boundless optimism and confidence in the illusory recovery, but when wages make even the slightest movement upwards, the shift is greeted with howls of “runaway inflation” followed by a series of excruciating rate hikes that boost unemployment, reduce activity and weaken growth. "
Stronger Economic Growth? Over My Dead Body, Says Janet Yellen - The Unz Review

"I know that lots of investors keep talking about interest rates not mattering in the property sector because rents will go up with a stronger economy. Rents will need to go up a whole lot to keep pace with cap rates going from 4 to 6. "

That was the good news.
"the Empire in engaged in some bizarre slow motion version of seppuku and the only mystery left is who, or what, will serve as the Empire’s kaishakunin (assuming there will be one).
A kaishakunin (Japanese: 介錯人) is an appointed second whose duty is to behead one who has committed seppuku, Japanese ritual suicide, at the moment of agony.
"I would even argue that the Empire is pursuing a full-spectrum policy of self-destruction on several distinct levels, with each level contributing the overall sum total suicide."
"Political suicide: the Neocons’ refusal to accept the election of Donald Trump has resulted in a massive campaign to de-legitimize him. What the Neocons clearly fail to see, or don’t care about, is that by de-legitimizing Trump they are also de-legitimizing the entire political process which brought Trump to power and upon which the United States is built as a society. "

" the ultimate unmasking of the viciously evil true face of that 1% must be credited to Hillary with her truly historical confession in which she openly declared that those who oppose her were a “basket of deplorables”. We already knew, thanks to Victoria Nuland, what the AngloZionist leaders thought of the people of Europe, now we know what they think of the people of the USA: exactly the same thing."
"The Neocons want a war with Russia which the Trump people don’t. The Trump people, however, want, well maybe not a war, although that option is very much on the table, but at least a very serious confrontation with China, North Korea or Iran, and about half of them would also like some kind of confrontation with Russia. "

"There is absolutely nobody, at least at the top, who would dare to suggest that a confrontation or, even worse, a war with China, Iran, North Korea or Russia would be a disaster, a calamity for the USA. In fact, serious people with impressive credentials and a lot of gravitas are discussing these possibilities as if they were real, as it the US could in some sense prevail. "
"Eventually, something crazy inevitably happens. Like in Syria were the State Department had one policy, the Pentagon another and the CIA yet another one"
"How did a country which produced the UH-1 Huey or the F-16 suddenly start producing Apaches and F-35s?! The explanation is painfully simple: corruption.

Not only did the US military industrial complex bloat beyond any reasonable size, it also cloaked itself in so many layers of secrecy that massive corruption became inevitable. And when I speak of “massive corruption” I am not talking about millions but billions or even trillions. How? Simple – the Pentagon claimed did not have the accounting tools needed to properly account for the missing money and that the money was therefore not really “missing”
Well, some of the money went to build our space fleet but, that won't help the economy when the default comes. The US NAVY & NASA have a fully operational 'Space Fleet' » The Event Chronicle

"I could list many more types of suicides including an economic suicide, a social suicide, an educational suicide, a cultural suicide and, of course, a moral suicide. But others have already done that elsewhere, and much better than I could ever do myself. So all I will add here is one form of suicide which I believe the AngloZionist Empire has in common with the EU: a “Suicide by reality denial”: this is the mother and father of all the other forms of suicide – the stubborn refusal to look at reality and accept the fact that “the party is over”

"Alexander Solzhenitsyn used to say that all states can be placed on a continuum which ranges from states whose authority is based on their power to states whose power is based on their authority. "
"Should the AngloZionists succeed in triggering a war between Iran and the Empire, then Iran will end up being the Empire’s kaishakunin. "
The Empire should be placed on suicide watch - The Unz Review
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Old 03-21-2017, 03:46 AM
Danny B Danny B is offline
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Somebody, sometime is going to have to cut entitlements

Pretty quiet out there. The various power brokers are slowly coming to the realization that the budget and debt ceiling fight will have NO winners,,, only losers. Much of the budget is on autopilot.
Autopilot Spending Devours Budget - Federal Budget in Pictures
With $ 212 trillion of unfunded liabilities, there are going to be a LOT of losers.
"CBO’s Long-Term Budget Outlook includes the following projections, trends and analysis:
By 2040, federal debt will climb to over 100 percent of GDP under current law, and could reach 175 percent of GDP under less optimistic assumptions."

"Mick Mulvaney, the nominee for budget director, told senators Tuesday that he’d recommend significant changes to entitlement programs—even if they contradict the president’s campaign pledges."

"Last year, the cost to taxpayers for the three largest entitlement programs (Social Security, Medicare, and Medicaid) was $1.9 trillion. Total discretionary spending, which includes the Pentagon’s budget, was about 1.2 trillion. Just under half of that figure is defense spending, which the President Trump says he wants to increase. So even if the administration succeeded in eliminating all non-defense discretionary spending (about $600 billion), it wouldn’t be nearly enough. Then there’s Trump’s undefined intention to boost infrastructure spending, which Vice President Mike Pence recently told the U.S. Conference of Mayors is “going to be big.” And while President Trump still says he wants to repeal Obamacare, he now says he wants to offer “insurance for everybody,” under the new plan. How much will that cost?

"President Donald Trump’s pick for budget director, Mick Mulvaney, said Tuesday the nearly $20 trillion national debt needs to be “addressed sooner rather than later” and that he would push Trump to break his campaign promises and cut Social Security and Medicare."
"But, Mulvaney said, he does support prioritizing payments should the nation need to do so." SO, who is going to get the shaft?
"The opinions and views of Mr. Mulvaney are way out of touch of what the American people want,” Sanders said. "

It's going to get very ugly. So much of the budget projections are predicated on having a good economy. less optimistic assumptions
Jeff Nielson, part one; https://www.sprottmoney.com/Blog/whe...f-nielson.html

Part two; https://www.sprottmoney.com/Blog/whe...f-nielson.html
The standard of living is; the GDP divided (unequally) by the population. Wages in the West have been falling for decades and people have consciously cut back on reproduction. Many States in Africa have done the opposite and are already having problems with the population outgrowing the economy.
The Global Famine Begins: UN Announces That The Worst Food Crisis Since World War II Is Happening Right Now
"Poverty has risen in Nigeria, with almost 100 million people living on less than a $1 (Ł0.63) a day"
The economic reset that Nielson writes about will hit them very hard.

A virus with no file body,,, what a clever idea; Russian ATMs Spit Out Cash After Malware Attack | Zero Hedge
Years ago, Canada invaded America and nearly burned down the White House. Time for payback; http://www.zerohedge.com/news/2017-0...-invade-canada
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