Economic pressures

[Danny B]

Strangling the war machine to bring peace.

This article from David Stockman could go in any of 2 or 3 threads. It is particularly relevant to the muslim problem.
U.S.S.R. gone;We removed the force that balanced the area;Sadly, the war machine churns up a LOT of money for Cheney and friends. It is now rattling sabers in China and Russia.
No, Donald, It’s Not A ‘World War’ | David Stockman's Contra Corner

[Danny B]

Keeping the brain alive while the body dies

GOV is trying to keep confidence going. Every time that some company looks weak and attracts short-sellers, GOV rushes in with tons of liquidity and burns the short sellers. The PPT and ESF have unlimited liquidity and it is no big deal to just pump it in. There have been a LOT of short sellers lately and they got burned. They must now close their positions before they get burned even worse. This has created a lot of demand in the stocks that they must now buy. There is speculation that this will cause a "melt-up".
Has a Stock Market Melt-Up Begun for a Stock Market Crash in 2016? | David Haggith | Safehaven.com

"Enter Ben Bernanke. In the space of a mere eight years, the former Federal Reserve chief has managed to achieve what Vladimir Ilyich Ulyanov Lenin could barely conceive. He's convinced the United States of America, the United Kingdom, Japan and Europe to embark on a revolutionary journey to completely subvert free market instincts."
"For the past five years, however, as markets have shot to new records, the global economy has continued to slow. And central bankers, having driven this boom, now find themselves fearful of taking any action that may undermine it. They can no longer control the monster they've created and now are fearful of incurring its wrath.'
Goodbye Lenin, Hello Bernanke - ABC News (Australian Broadcasting Corporation)
There is a distinct possibility that we will get helicopter money in time for the election cycle.

NO telling what the CBs will do next; http://www.24hgold.com/english/news-...e+Saville&mk=1

The CBs have pumped in about $ 200 trillion. There is no particular demand for this "money". Lack of demand has resulted in lack of interest-income. Long-term ZIRP is a death sentence for segments of the economy.
Global Central Banks Are On A Collective Suicide Mission | Zero Hedgealong with wagesYES, rising wages; China Average Yearly Wages in Manufacturing | 1978-2016 | Data | Chart

What about the fallout of ZIRP?

http://professorconfess.blogspot.com/2016/07/pension-funds-officially-doomed.html

http://www.businessinsider.com/a-stock-market-crash-will-take-the-california-pension-system-along-with-it-2016-7

The bureaucrats of the world see their niche taken by automation. They prefer Marxism to unemployment. Crony capitalism has given capitalism such a bad name that MANY of the young are ready to embrace socialism. https://www.washingtonpost.com/news/...sm-poll-shows/


What a mess.
The Burning Platform weighs in on gun violence; http://www.theburningplatform.com/20...omment-1269137

[Danny B]

The world is 'addicted to debt' - Business InsiderForbes Welcome
Venezuela is PRINTING Bolivars where most States are just growing credit. That makes the difference when it comes to hyperinflation.Colombia

https://www.yahoo.com/news/venezuela-middle-class-forced-drain-061842073.html

" 76 percent of Venezuelans live below the poverty line, up from 52 percent of the population in 2014, according to a recent study."
"The country's economy was expected to contract 10.1 percent this year,"
"Oil accounts for about 95 percent of Venezuela's export earnings and 25 percent of the country's GDP,"
"Oil production fell nearly 11 percent, from an average of 2.78 million barrels per day in 2015 to 2.37 million barrels per day by in May 2016."
" the official exchange rate is ten Bolivars to the dollar, but the black-market rate, which is considered more accurate, was more than one thousand Bolivars to the dollar in mid-2016."
Venezuela's Economic Fractures - Council on Foreign Relations
"State-oil firm PDVSA reported a 41% drop in oil income when compared to 2015, "
Venezuela Enters Point of No Return as Oil Revenue Plummets | Economy Watch

"Even America had debtors prisons until we abolished them at the federal level in the early 1830s. Today's answer is bankruptcy, but can you imagine if debtors' prisons existed today? Some 48 million Americans, or roughly 15% of our population, would be there. Where on Earth would we put them all?"
"In fact, debt has become the world's answer to global economic problems. Check out the video Crazy: A Story of Debt, by Grant Williams. Unfortunately, we've never in history seen debt solve problems. But this world debt clock shows that global obligations continue to pile up, apparently with no stopping their growth."
"Frankly, we need leaders to stand up and say: "Enough! Stop the deficits and let's grow our economies and pay our debts back."
Talk about clueless, 51% of Americans receive a check from GOV. Try yanking out the safety net and see what happens.

http://realmoney.thestreet.com/articles/07/18/2016/were-facing-debt-bomb

From the "deluded file" "The Fed's mission is accomplished -- unless it has some ulterior motive. Thursday we saw jobless claims hovering near a 40-year low, so employment is thriving." https://www.bloomberg.com/view/artic...-why-no-change
Also from Bloomberg; Turmoil!, none dare call it ZIRPWhat happens if GOV goes broke and can't pay it's police State?

https://www.rutherford.org/publications_resources/john_whiteheads_commentary/there_will_be_no_second_american_revolution_the_futility_of_an_armed_r

[Danny B]

Socialism at Jamestown

Socialism is arrested development and the rejection of personal responsibility. A person who demands that the State (or Parents) take care of them is always going to be insecure and ever-demanding.

https://www.youtube.com/watch?v=l3GfCmbPDN0

Originally, Social Security kicked in at age 65 when life expectancy was 57.
Trump 'Close Friend' Unleashes Economic Reality Check: America Is "Lost In The Black Hole Of Entitlement"Socialism at Jamestown | Cato @ Liberty

[Danny B]

WARNING: “Black Swan” Spotted - The Daily Reckoning

The PTB want total world control and total centralization. This goes against rational planning about "not putting all your eggs in one basket".
Hans-Hermann Hoppe claims that we need de-centralization.

https://mises.org/blog/put-your-hope-radical-decentralization

Roberto Vaca wrote about the breakdown of super-systems back in the 60s; http://www.printandread.com/download...arkagefree.pdf

The banks plan to store cash to get away from this NIRP BS; Negative Rates: We’re Gonna Need a Bigger Vault
The "trial balloon" has been floated. "what if governments decide to cancel the bonds owned by their central banks?"
The Hidden Risk to Sovereign Bonds - Bloomberg View

The accepted plan is for GOV to borrow from the Central Bank and drop money from helicopters. Stockman says that there is no possible way that it would work because GOV couldn't get it together in time to pass the legislation. He hasn't mentioned the possibility that GOV could just bypass the CB and print money without borrowing it.

http://davidstockmanscontracorner.com/this-market-discounts-nothing-except-monetary-cocaine/

http://www.zerohedge.com/news/2016-07-19/financial-system-breaking-down-unimaginable-pace

Cut throats. Ah Yes,,, malinvestment. http://www.independent.co.uk/voices/...-a7144386.html

" Correspondent Graham R. summed up the situation very succinctly in a recent email:

"Focusing on the minimum wage is a false flag. The society as a whole is now stressed at every level because Globalism has promised us cheaper prices at the cost of destroying societal structures and their meaning for its members."

Graham identifies a key consequence of globalization that the mainstream media has ignored: the erosion of social/economic structures that supported communities and provided purpose, meaning and stability to their residents. "

http://www.oftwominds.com/blogjuly16/global-win-lose7-16.html

The corporatocracy forced globalism on us. The PTB are in the process of forcing one-world control on us. We're flying blind in the casino while high on cocaine, oxy-contin, heroin and Viagra. We live with extreme complexity and no viable backup monetary system. We are at great risk of the credit system freezing up. Our uber-corrupt leaders are dancing on the brink of world war. World leaders are talking about stiffing their central banks.
What could possibly go wrong?

Hugo Salinas Price

"Our world is approaching a financial tipping-point, which may be only months away. When we do reach the tipping-point, the financial collapse will be vast in its destructive consequences and in a matter of a few days our world will change beyond our power of description.

The shadow of the approaching new reality is upon us and we can already perceive its outlines; this allows us to talk of our civilization in the past tense."

http://www.plata.com.mx/mplata/articulos/articlesFilt.asp?fiidarticulo=288

[Danny B]

Progressive problems

Sr. Price is a real downer BUT, he isn't alone.
Egon von Greyerz has a lot to say also. None of it is good; http://www.24hgold.com/english/news-...n+Greyerz&mk=1

Mac Slavo has a real dark outlook,,, and he isn't even selling gold;
What's Starting Now Will Overturn The Entire System: "Complete Collapse of Everything" | Zero Hedge
The NWO wants total control but, it looks like they will get total chaos; Potential Crisis Triggers Continue To Pile Up In 2016 | Zero Hedge

Krugman is smoking crack laced with angel dust.
Krugman's Solution Is "The Fiscal Equivalent Of War" - Japan Agrees | Zero Hedge
The NWO types have long said that they want a collapse to speedily bring in a new system. It's beginning to look like there will be some "overshoot".

The population in the west could rise or fall without doing any damage IF it weren't for the demands of Keynesian economics. What would be the harm if the population of Germany fell 20 million?
George Soros has created a lot of chaos and havoc and made a lot of money off this chaos. He is hard at work trying to destroy Europe.
Garret/Galland Investment Research You Can Trust
He is demanding open borders in Europe as the fair thing to do. People who have a good niche in their home country don't want to leave and be refugees. Especially people from MENA. Soros seems to believe that bring the leftover garbage from primitive societies is going to save Europe.

http://www.zerohedge.com/news/2016-07-20/george-soros-doubles-down-accept-300k-refugees-costing-30bn-or-risk-eu-collapse

They can't even let their women out without a guard. Much of Western society is built on self-restraint and self-control. If you allow people to immigrate who come from a society that operates primarily on instinct, the West is just TOO MUCH temptation. They don't try very hard to resist.
Soros believes that Europe would somehow fall apart if the population decreased. He wants to drag in tons of trash to save it. Effing marvellous.
A Swiss lawmaker had this to say. BTW, he was censured for saying it.

https://www.youtube.com/watch?v=1IXsTKzOTvo

Does Soros want all of Europe to sink down to the level of Marseille?

http://www.independent.co.uk/news/world/europe/marseille-europes-most-dangerous-place-to-be-young-8166738.html

The Kalergi Plan calls for Europeans to be replaced garbage from Africa. I hope they can stop this.
Culture is what's left behind after you die. With islam, the only thing left behind is a rotting corpse.

[Danny B]

OK, it's easy to see that the glut in the steel market is driving the price down.

What about oil and gasoline?
European Gasoline Stocks Hit All-Time High As China Floods The World With Flamable Liquids | Zero Hedgehttps://srsroccoreport.com/wp-conten...ction-Loss.png
86% of their profits are spent on debt service; https://srsroccoreport.com/wp-conten...s-On-Debt-.png

https://srsroccoreport.com/the-subprime-u-s-economy-disintegrating-due-to-subprime-energy-debt/

19.4 Trillion Dollars In Debt ? We Have Added 1.1 Trillion Dollars A Year To The National Debt Under Obama

"#7 The U.S. economy has lost an astounding 191,000 mining jobs since September 2014. For areas of the country that are heavily dependent on mining, this has been absolutely devastating."
#9 So far this year, job cut announcements are running 24 percent above the exact same period in 2015.

http://themostimportantnews.com/archives/rapture-verdict-ad-1-the-beginning-of-the-end-ad-please-visit-the-economic-collapse-bookstore-new-website-helps-u-s-seniors-piggyback-canadian-social-security-economic-collapse-inve

[Danny B]

Has she yet stopped to think what the next step is? Presidente Maduro told the Venezuelans to grow their own food. She spent her savings. What is she going to do for the next problem?

Household net worth / Disposable net income chart

https://assets.bwbx.io/images/users/iqjWHBFdfxIU/ibVzkV14n.u4/v2/-1x-1.png

http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2016/04/20/druck%202.jpg

"At the 2005 For Stan Druckenmiller This Is "The Endgame" - His Full 'Apocalyptic' Presentation | Zero Hedge
Druckenmiller hints that the markets will take control. For several quarters, there have been huge outflows from stocks and bonds. The FEDs just make up the difference. Can we actually have a crash in the stock market if the FEDs just buy up everything that comes up for sale? The smart investors are front-running the FED by selling over-priced assets to the buyer of last resort.
What could go wrong?

[Danny B]

Maintaing confidence in debt money even after the investors have left the building

Ages ago we bartered things of value. Some time after that, we used gold and other metals for intermediaries in a barter system. Other things like wheat and barley have been used as intermediaries but, they aren't durable enough to serve as stores of value. We arrived at a point where we used warehouse receipts for gold instead of actually handing over the physical item.
We (the State) kept our gold in our treasury and circulated receipts for our gold as an intermediary. These receipts could exchanged for physical wealth at any time.
Those who don't actually produce anything have always tried to live of the fat of the land without doing any actual production. That would be priests and court hangers-on.
Under their control, money that represented actual wealth was phased out. Instead of being a receipt for actual wealth, money became a debt note. Paper currency became nothing more than a piece of information rather than a store of value. That dollar bill carried the information that somebody owed you X amount of goods and services.
Those who controlled the printing press passed out copious amounts of debt notes to themselves and their court hangers-on. That dollar bill became corrupted information. With limited printing, the dollar bill held general acceptance. Also, we were forced to use it by law.
Martin Armstrong's models are models of confidence. In ages past, overprinting caused a loss of confidence and people left the system any way that they could. The system collapsed.
Socialism without limit requires control without limit and funds without limit. Gold was suppressed starting back in the early 80s so that interest rates could be crashed down without investors having a viable alternative to run to.

This was a long-term plan to gradually accomplish Keynes' dream of Euthanasia of the rentier. Removing interest income is a prime objective of the central bank to squeeze out the investors and fund the court hangers-on. Since only the central bank had free money, it could outlast everybody else. The court hangers-on are first spendersHigh-income Americans pay most income taxes
45% of Americans pay no federal income tax
80% of taxes collected are from payroll and income tax. Most of the wealthy are connected to business where paying taxes is just part of the cost of doing business. It is just passed on to the consumer. It is the actual laborer who is creating the wealth that is the basis for the tax structure. Every consumer is paying every time that she buys something.

As wealth creation shrinks ever more, the court hangers-on create ever-more debt to keep the system from collapsing.
Our ENTIRE system is based on debt and credit. There is an increasing loss of confidence in the system. Sovereign bond yields go down as money pours in. Bond holders accept negative interest because the expect stocks to do even worse. Only 3 companies in America have AAA rated credit so investors have legitimate reason to avoid stocks. We are in a "twilight zone" of falling confidence without the attendant (apparent) withdrawal of investor money.

Previously, every time that money was divorced from value, the money crashed in about 30--40 years. The FED is tasked with keeping Pox Americana and the American empire alive and hard at work on world domination. It remains to be seen of the FED can keep the system going even after the confidence of investors is lost.

[Danny B]

London Banker: Testimony of Marriner Eccles to the Committee on the Investigation of Economic Problems in 1933


Eccles, There were some 10 millions seeking work while we
were still at peace. Men spoke of the paradox of poverty in the midst of
plenty. And today's paradox is that huge defense expenditures appear the
only cure for mass unemployment and industrial stagnation.
The common fault and cause of these failures of the past lies not
in our democratic institutions, not in our ability to produce and distribute
goods, but in our thinking. The failure is not due, as yet, to insufficient
material resources or to any lack of scientific and inventive genius in the
world; it is due to our inability to deal with the basic causes of political
and social upheavals abroad that lead to war, in which we inevitably become
involved, and to our failures at home to find any answer, except war or prep*
aration for war, to the problem of distributing oujp abundance

We are too prodigal in diverting our human and
material resources to military preparations for war and defense, and too con*
servative about using them to alleviate human misery
to the tragic conditions existing throughout the world. I noted in a recent
New York Times book review the comment that some contemporary authors contend
that "life has no discernible direction or purpose, that ideals are illusions,
that common values have disappeared, and that a sensitive person is bound to
be destroyed or corrupted in a modern society in which common values have
disappeared"

Those who
complain that the cost of such a program would be exorbitant must remember that we never hesitate to spend for war or defense \<hatever may be necessary,
but we become relatively tight-fisted in our civilian expenditures for main*
taining the peace of the world.
Since we failed in the past to remedy the basic causes of world con*
flict, we find ourselves today confronted with an immediate and pressing need
for providing more adequate national defense in an effort to forestall the
outbreak of another world war. However, we must recognize the fact that our
defense preparedness program is at best a temporary and transitional solution
of a more permanent
solution of the fundamental problems that lead to war. Another global war
would mean total war with atomic and all other weapons of destruction, and
likely could not be won by anyone;- on the contrary, it might well lead to
the destruction of civilization itself. X believe that the people of the
world, including the Russian masses, are against war.

https://fraser.stlouisfed.org/docs/historical/eccles/082_07_0002.pdf

[Danny B]

Credit creation and human nature

Benjamin Strong was a FED chairman nothing like Marriner Eccles. He was elected chairman of the FED in 1914. BUT, he was a New York banker and greedy to the core. By 1920, he was illegally selling discounted U.S. treasury bonds on the secondary market and creating currency inflation for his banker buddies. This currency inflation brought the roaring 20s. This inflation plus the new regulations regarding margin debt created a huge bubble in the stock market. This was money and not wealth. It severely distorted the system. Big, Bad, Bald Ben Bernanke claimed that the FED had caused the Great Depression 1 by not pumping in money and saving the system.

BUT, the best way to cure a bubble is to NOT create one in the beginning.
W-h-o-r-e-s will be w-h-o-r-e-s and bankers will be bankers. They gave themselves the ability to create bubbles and create they did. Great Depression 1 was a liquidation of that debt. The current crop of FED-heads is trying to forestall the liquidation of current debts.
During the upswing in the RE bubble, the FED penalized responsible bankers who refused to do liar-loans to unqualified borrowers. Socialism needs lots of mal-investment to keep the punters happy. Divisions of both the FBI and the SEC warned GOV that an unsustainable bubble was forming in RE. Both divisions were disbanded in '03 & '04.

The bankers want bubbles so that they collect fees and interest. Later, they scoop up the bailouts. GOV wants bubbles so that they have more happy punters. Those who voted to rescind the Glass-Steagal act won't be around to get the blame.
The current FED is trying to do Bernanke pumping BUT, it is going to the wrong places,,, just like last time.
GOV is quickly running out of options. The treasury could cancel the FED debt. The FED/treasury could send ?$ 80,000 to every bank account. FED GOV could create a basic monthly stipend for everybody.
Once the regulator of gold was removed, the CBs and private banks created debt with wild abandon. Eccles argues that the bankers must be saved from themselves. The coming credit collapse has the potential to wipe out much of the developed world. You can bet that most of the PTB want to avoid that.

https://www.opendemocracy.net/uk/austerity-media/frances-coppola/inequality-nexus-of-wealth-and-debt

[Danny B]

London interbank Overnight RateapparentCelebrating 45 Years of Phony MoneyMore drilling,,, less profit.Consumption is falling and Kuroda can't do anything about it.You now have the official denial.

[Danny B]

Problems vs symptoms

The demographic crash and the The Debt Time-Bomb.
An Upside Down World | Chris Puplava | FINANCIAL SENSE
We are on final approach for peak oil-demand, peak debt and peak growth of the young population. Probably, peak jobs. Probably, peak confidence. The most expensive investment you can make is a family. Nobody has the confidence to start a family if they are going to live in poverty.
The Generation Who Refuse to Grow Up – Dotted Dragonfly

"IceCap is fully expecting a crisis in the government bond market"
"Ironically, today the main problem is that governments and central banks will not admit that they are the problem."
"To really understand how serious of a problem this is, just know that a mere 1% rise in long-term interest rates, will create losses of approximately $2 Trillion for bond investors."
The whole system of interest income is in grave danger. Reverting to historical interest rates is an equally grave danger."Champagne Supernova" - IceCap Asks What Happens When The Bond Bubble Finally Pops | Zero Hedge

The CBs are hard at work trying to forestall this explosive rise in interest rates. They just keep pumping in the money and hoping to keep rates down. By keeping rates down, they are starving huge segments of the financial sector.

[Danny B]

Automatic Earth,,, the all encompassing crash

Our entire economic system is wrapped around the idea of pushing future consumption to today. Out entire credit system relies on un-ending growth. There is NO growth in consumption and credit when the producing population is falling. Japan is showing us the way forward. Japanese public debt is just south of 300% BUT poverty is on the rise. Poor people have no confidence to start a family. Kuroda just keeps printing. Bernanke just convinced him to issue perpetual bonds that would never be repaid. You can print money but, you can't print wealth or confidence,,,, or babies.
America forestalled the demographic crash by throwing open the southern border back when the birth rate in Mexico was 6.2 It is now 2.6

Obummer is looking for a new source of warm bodies. The obvious answer was to ask UPS.

https://www.youtube.com/watch?v=btfrM2YpbEE

https://www.theautomaticearth.com/2016/07/hubris-instability-and-entertainment/

John Mauldin: We Can&#39;t Borrow from the Future Anymore

UUmmmm, about your pension plan;
"Last year, our research showed that for fiscal year 2014, states had a total of $80 billion of reported unfunded pension liabilities, but states' actual pension debt was $628 billion. The difference was a result of accounting rules that required states to hide the vast majority of their unfunded pension liabilities off their balance sheets. "
PIOnline : Subscription Center
OK, so we crash. What is the plan for those who make it to the other side? Only 1% of Americans work on the farm. The farm gets more automated every day. If we're working for a global-mean-wage and competing with robots, what are we going to buy outside of food? What are you going to do when the consumer economy goes away?
To end persistent poverty, a guaranteed job or free money? - The Boston Globe

[Danny B]

Big bumps in the financial road

Several writers are claiming that we are going to experience a total crash. Evidently, GOV has a fear of the same thing.
Armstrong; "Rather than reform the political economy, they are digging in their heels and getting ready to fight the civilian population"

https://www.armstrongeconomics.com/international-news/north_america/americas-current-economy/us-government-preparing-for-massive-civil-unrest/

" There are more than 200,000 non-Defense Department federal officers authorized to make arrests and carry firearms. The federal government has tripled the number of agents carrying weapons to defend the government in the past 20 years. They know what is coming. They know the socialistic system they constructed is collapsing. Instead of reform, they are digging in their heels, prepared to plow down any domestic uprising. "

https://www.armstrongeconomics.com/international-news/north_america/americas-current-economy/the-rising-trend-of-anti-establishment-v-civil-unrest/

"They know what is coming. The establishment by no means wants to see Trump in the White House. His is not one of them and they fear he will side with the people and reform government, right down to the pervasive nepotism. "

"Money drives the world. The flow of capital dictates the trend and within that trend lies the rise and fall of empires, nations, and city-states."

https://www.armstrongeconomics.com/armstrongeconomics101/basic-concepts/more-than-just-buy-or-sell-the-world-beyond/

China had a capital outflow last year of about $ 681 billion. China Capital Outflows Rise to Estimated $1 Trillion in 2015 - Bloomberg Capital flows are all about confidence. "They" wanted globalization and unlimited capital movement. As goes confidence, so goes capital.

"The biggest hedge fund in the world is the Federal Reserve, with almost $4,500 billion dollar under management."

https://www.goldrepublic.com/news/this-is-how-independent-central-banks-are?utm_source=GoldRepublic+Newsletter&utm_campaign=4c4596c7d0-RSS_ENGELS_CAMPAIGN_*|RSSFEED%3ADATE|*&utm_medium=email&utm_term=0_570e0455dd-4c4596c7d0-410283837

So, the Yellen hedge fund buys up tons of stocks with free money and drives up the price. She can't very well drive up profits so, companies simply lie about earnings. How the biggest companies in the S&P 500 use made-up earnings numbers
Four possible ways to execute Helicopter money. http://www.zerohedge.com/news/2016-0...1500-inflation
Assange brings us the only good news; https://www.youtube.com/watch?v=nB9u9dSQVkc

http://journal-neo.org/2016/07/28/the-usa-debt-time-bomb-tocking-ticking-tock-tick/

"The European banking crisis is spreading rapidly. There are now concerns in Italy and in Portugal as well. The ECB cannot even understand why people would not want to keep their money in banks with negative rates. They are simply incapable of managing the economy. The ECB is bringing Europe to the brink of a widespread banking collapse. Once this crisis becomes a contagion, there will be no stopping it.

Low rates will NOT encourage borrowing when banks have too much bad debt to begin with. The negative rates are sending savers to hoard cash outside of banks. It is amazing, but the ECB is in complete denial and unable to see that it must reverse its policy to prevent disaster."

https://www.armstrongeconomics.com/international-news/europes-current-economy/ecb-bring-european-banks-to-the-brink-of-disaster/

I can't leave out Britain; https://www.youtube.com/watch?v=9IxZxThvKI4