Economic pressures

[wayne.ct]

Why do economists call inflation deflation?

Because they are looking at the other side of the coin. One side is inflation and the other side is deflation. When it costs 10 percent more for the same item at the store, the customer says we are having inflation. The store says we are having deflation because the dollar buys 10 percent LESS that what it did earlier. So, does everyone understand now? Of course not. Hardly anyone understands anything at all. To 95% of the people it is hardly a topic worth talking about. However, when people, businesses and governments REDUCE the amount of borrowing they are doing, the multiplier effect of partial reserve banking goes into reverse. The LENDERS that profited from the LOANS the banks were writing no longer profit. They actually LOSE money instead. We had better watch out and be careful. Things are not looking good. The numbers that tell what is happening are available to anyone that wants a look see.

[Danny B]

We do NOT have employment growth but, Hussman follows the official line to avoid problems.Yep, it's just a sign of desperation.It's called a desperate move because it really never works.
"The outcome of years of yield-seeking speculation induced by central banks is that investors across the globe have now locked in zero prospective total returns in virtually in every asset class for the coming decade."
Hussman Funds - Weekly Market Comment: The Decade of Zero and its Chaotic Unwinding - August 15, 2016

The focus of the article is that there just won't be any returns for many years. The body of the analysis is based on faulty numbers for employment AND inflation. Factoring in the price inflation and unemployment number from ShadowstatsThe Most Important Market in the World. Are We at a Tipping Point? | Kitco News
.
The focus of the article is ; the central banks losing control of the interest rates no matter how much money they print and inject.

Jim Rickards was asked by the American intelligence alphabet groups to do a war-gaming exercise about the U.S. economy. They undoubtedly look at the same data that Amstrong, Hussman, et al are looking at. They have reached the same conclusions as the private sector investors have.
BUT, the deep state and the military are determined to stay in control of everything.

https://www.theguardian.com/environment/earth-insight/2014/jun/12/pentagon-mass-civil-breakdown

The Western Currencies are the backing and reference point for the SDR. China can talk about joining the SDR community because it doesn't cost them anything to talk. BUT, if Western currencies are in crash mode, the SDR will never achieve liftoff. Rickards and the NWO want a one-world currency to take up the reins after sovereign currencies crash. BUT, the spontaneous combustion of Western currencies will push gold to the forefront, NOT the SDR.

[Danny B]

Dr. Judy Shelton and gold-backed bonds

Gresham's Law states that the strongest currency will go into hiding to be used as a store of value. This is the main reason that a State can not use it's transactional currency as a store of value at the same time. After Bretton Woods, the U.S. dollar was used as a transactional currency in America and a store of value in many other States. As the world got richer, post WW II, there was an ever-increasing demand for U.S. dollars to be used as a store of wealth worldwide. The world demanded that America run a current-account deficit so that it could provide enough dollars. This was described by Robert Triffin;

https://en.wikipedia.org/wiki/Triffin_dilemma

"It's Not Some Barbarous Relic" - Trump Adviser Urges Return To Gold Standard | Zero HedgeAh, but this wasteful spending is what keeps the welfare-warfare State moving along. You can see why everybody with money is against Trump and everybody who has to actually work is FOR Trump.

[Danny B]

Defaults and front-running the bond market

The 2 articles from Hussman and Kitco claim that the FED will lose control of interest rates. This is expected to be brought about by an upturn in the default rate. The "junk bond" market is called "junk" because it is a market for risky investments.


In the '30s, Germany created it's own money independent of the money masters in London. Churchill said that this was the prime reason for WW II. This was the "German miracle" that brought so much prosperity. Russia is now in the process of doing the same thing.
Dollar Disaster Looms? China and Russian Currencies Break Away | Global Research - Centre for Research on Globalization

If a little bit of desperation doesn't do the job,,,, get even more desperate;
GOV is just buying up everything,
Not to be outdone in the stupidity competition, the FED proposes injecting another $ 4 trillion into the economy. This is a sign of desperation squared. Fed Admits Another $4 Trillion In QE Will Be Needed To Offset An "Economic Shock" | Zero Hedge
They hope to drive interest rates way down further out on the curve. A very large part of the financial system depends on interest income. It has been WELL proven that QE doesn't help the producing economy or the bulk of consumers. SO, they propose to do more of it.


David Stockman has written a book; "It also delves into the good and bad of the Trump campaign and platform and outlines a more consistent way forward based on free markets, fiscal rectitude, sound money, constitutional liberty, non-intervention abroad, minimalist government at home and decentralized political rule." Bubbles In Bond Land——A Central Bank Made Mania, Part 1 | David Stockman's Contra Corner

Stated very simply, the jews have always championed socialism and world domination. Israel destroyed their domestic bond market back in the 80s. Our bond market is close to destruction because of over-reach in both welfare and warfare. Israel has just over 4 million people and we send them about $ 10 million a day to survive. It's not the multitudes who are the problem. It is the power-mad leaders.
They claim otherwise; German President Booed, Attacked; Claims "The People Are The Problem, Not The Elites" | Zero HedgeWildly overpriced! What about defaults?The Impossible Italian Job | Wolf Street

"their trigger finger on the sell button." So, the bond buyers are front-running the CBs and will dump in an instant. The "algos" in the stock market will dump in a pico second. Any hint of a downturn will cause problems VERY fast. The 2010 "flash crash" happened in about 2.1 seconds.

[Danny B]

Transmutation of gold

I try not to ramble but, I read in so many disciplines that it is difficult to stay on topic. This post starts out about transmutation in nature. First, the background
reading.
Transmutation in Plants

Extraordinary Biology
There is most likely a connection between LENR and spontaneous transmutation. I haven't had time to search. There are indications that the alchemists had some control of transmutation; The Platinum Cannon Shipwreck - Mango Metal Report

https://geopolitics.co/2016/07/14/russian-scientists-announce-historic-discovery-rendering-the-entire-system-obsolete/

The claims are interesting. Who knows?
Researchers Discover Bacteria That Produces Pure Gold

http://www.abc.net.au/science/articles/2006/07/14/1686120.htm

[Danny B]

Central Banks Actions Indicate They Are Terrified?But Of What? | Gold Eagle
There seems to be a general feeling that an upturn in the default rate will push interest rates up and cause the derivative market to blow.

That will pop eventually.
No money, honey. We can't buy anything.
No kidding. We must be close to 4% unemployment then.

The clearinghouse for derivatives is way underfunded for any kind of problem; https://geopolitics.co/2016/08/18/de...ancial-system/https://geopolitics.co/2016/08/07/du...ers-surrender/Philippines President Threatens to Quit UN
The neocons are masters at creating un-anticipated consequences; https://geopolitics.co/2016/08/16/th...s-been-sealed/

[Danny B]

Debt as far as the eye can see

Here is an article from a writer who insists that we must have a gold standard and that it will only work if we have a debt jubilee. This is a good example of somebody who hasn't thought things through. Since our currency is a debt note, cancellation of all debts would be the definition of pandemonium. All credit would come to an end also.

https://www.sprottmoney.com/blog/the-gold-standard-and-debt-jubilee-jeff-nielson.html

A couple of years ago, there was a well-publicised picture of the Queen touring the gold vault of the Bank of England. STACKS of gold all around. BUT;
Just for the record, the BOE vault stores approximately 5,134.37 tonnes of gold. [2] As you can see from the chart, the BOE only owns 310.3 tonnes of that gold.
FOFOA: Eight!Interest is eating up about 46% of earnings. Maybe they shouldn't have borrowed in the high-yield debt market.Never happen.Damn, I was betting on Italy.Japan needs a plan "B"No kidding. What brain-trust came to that conclusion?It never occurred to the PTB that confidence would fall when they killed insurance and pension funds, savers,,, fixed income, etc. ?Socialism combined with crippling stupidity results in crippling costs.No kidding. Who could have predicted that?At least they didn't use the words :tsunami or "gate"Damn, I was betting on ItalyYour socialist tax dollars at work.

[Danny B]

Sovereign debt slip-sliding away

U.S, Treasury bonds have been a bull market for at least 30 years. BUT; Aug 6. 2011, S&P Downgrades U.S. Debt for First Time - WSJ
Fitch Ratings has this to say; Fitch Sees $3.8 Trillion Of Losses For "Investment-Grade" Sovereign Bond Investors | Zero Hedge
Evidently, a lot of investors have been reading Zero Hedge; "It's Gone" - Why Foreign Demand For US Treasuries Has Disappeared | Zero Hedge
Another factor; since oil is sold in other than U.S. dollars, there is less need for foreign CBs to hold dollars. The U.S. dollar has slipped to 35% usage in world transactions. It doesn't matter if you have the reserve currency if nobody uses it. Previously, the central bankers were co-ordinating their actions so that nobody would have an advantage. As we slip down, they are starting to fight each other; The Era of Centralization Is Ending Right Before Our Eyes | Zero Hedge

Helicopter money would work for a while,,, maybe permanently. BUT, the State will never cooperate enough to make it happen. This writer assumes that helicopter money would be borrowed. It will never work if it is debt money. On The Impossibility Of Helicopter Money And Why The Casino Will Crash | Zero Hedge
ALL the CB plans have been BS that didn't work. Now, we are in quite a pickle; "The Global Economy Can No Longer Rely On Debt" - BIS Warns Central Bank Actions "Have Started To Backfire" | Zero Hedge

Armstrong warned about the collapse of sovereign debt. It looks like it is shaping up that way.

[Danny B]

Destruction of the old paradigms but, nothing to replace them

NIRP is wiping out almost everything across the land BUT,
Then, there is the monetary "lab rat" Japan;
SO, GOV survives a bit longer at the expense of everything else. Deutsches bank is NOT happy with this.
Deutsche Bank CEO Warns Of "Fatal Consequences" For Savers | Zero Hedge
Here is a graph comparing Deutsches bank to Lehman Bros. http://www.zerohedge.com/sites/defau...EUpanic2_0.jpg

It appears that the State is willing to give the banks a good rogering to save it's own skin (socialism).
The banks have seen the writing on the wall and are creating a "work-around" to the reaming by Wall street and the district of corruption.

https://www.sovereignman.com/trends/four-more-mega-banks-join-the-anti-dollar-alliance-20120/

The lead bonehead talks the same as all the other boneheads. The base problem isn't productivity. It is consumption. "We're In Trouble": Alan Greenspan Delivers Stark Warning | Zero Hedge

Zero Hedge points out a troubling truism; A Gold Standard "Comes After War, Not Before" Macquarie Warns "The Private Sector Will Never Recover" | Zero Hedge
EXCELLENT article.
Ah yes. The global mean wage doesn't allow for a lot of discretionary spending.

America had a wage boom after WW II. As the rest of the world rebuilt their manufacturing capacity, the boom tapered off. NAFTA was an attempt to lower "overhead" for the manufacturing industry to meet our diminished consumptive power. When containerized shipping was perfected, manufacturing could be sent to an even-lower-wage producer. The TTP is an attempt to push manufacturing costs even-lower to meet the buying power of our ever-shrinking wages. Obviously, this is a downward spiral of the financial system trying to hold on to a large part of an ever-shrinking pie.

The working-man's share of profit from increased productivity is constantly shrinking. Greenspan, et al lament the fall in productivity but, don't seem particularly concerned with the fall in remuneration for the worker. The financial industry is FAR TOO BIG for the amount of money available for investment and discretionary spending.

The corporatocracy that demands control over GOV so that it can increase productivity and margin just doesn't catch on to the fact that it can never win. It fosters a LOW global mean wage and then, goes in search of a large body of consumers for it's products.

The article by Viktor Shvets points out that there will never be an exit from automation. GOV, finance and industry need to become aware that all the old paradigms are useless in the approaching world.
Advanced automation is incompatible with debt money. Advanced automation is incompatible wit human nature. We work for the sense of self esteem. Even if the State were to pass out debt-free money, society would stagnate.

[Danny B]

GOV will fire up helicopters but, the financial system has another idea.Japan Is Signalling The End-Game For The U.S. | Investment Research Dynamics
Japan and China are rattling sabers over territorial disputes. Stupid Americans don't know Kabuki theatre when they see it.

Venezuela bet everything on oil. They have lost the bet. Is Doomsday Inevitable For Venezuela? | OilPrice.com
It will catch up to us eventually, "On Wednesday, US public debt was more than $19.4 trillion, or almost $60,000 per citizen and $164,432 per taxpayer."

https://www.rt.com/business/357028-us-budget-deficit-approaches-600bn/

The economy will crash. The stage is being set to blame it on Trump; CITI: If Trump wins, it would be a disaster for the global economy - Business Insider
We just have too many major problems that have grown past the point of no return;
5 Factors That Could Turn America Into Another Collapsed Empire | Zero Hedge

[Danny B]

Jackson Hole, fiscal policy.. the State & the family

The CBs are getting together in Jackson Hole to discuss what to do about the economy. They are crying ever-louder that monetary policy is losing effectiveness and MUST be replaced by fiscal policy.
Contraction in the form of "austerity" has been well proven to be a complete dead end. Therefore, "expansion" is the only option left. The central bankers talk about fiscal policy but, don't explicitly espouse expansion.

" The passing of the baton from monetary to fiscal policy
Implementation of monetary policy globally

Monetary policy has been the dominant policy tool post global financial crisis, as central banks from around the world have repeatedly fed their economies caffeine shots in an effort to jump-start activity. The central bank baristas have moved from serving basic coffee to extra-large, triple shots of espresso just to keep the pulse ticking."

"The decreasing potency of monetary policy has led to the passing of the baton to fiscal policy, with Japan announcing a stimulus package in July and the UK poised to provide fiscal stimulus in the wake of Brexit. Additionally, the U.S. looks set to increase fiscal spending regardless of who wins the White House."
Stop worrying about interest rates. Here's what we should be focusing on—commentary

https://www.theguardian.com/business/2016/aug/25/jackson-hole-2016-five-big-problems-facing-central-bankers

The good news department;

http://www.aomarkets.com/price-gold-declines-seen-peak/

That is financial growth, not production growth.


That $1 trillion would have to come from additional GOV debt.

Wal Mart is going down and closing stores. Now,
HERESY;

Eventually, it will become apparent that there are just too many people for the number of jobs. If you reduce the number of people, this will further reduce the number of needed jobs. Like the austerity imposed on Greece, there is a downward spiral. The central bankers want GOV to do fiscal stimulus. Japan ALREADY tried that to no avail. They had gargantuan infrastructure projects.
Martin Armstrong's central model is a model of CONFIDENCE. Previously, when people lost confidence they did not invest in the chimera of future prosperity. TODAY, when people lose confidence, they do not invest in children and a family. Japan proves this very clearly. Armstrong's models have no baseline for this factor.

The State creates a hostile environment for the child and then wonders why nobody wants to create children. The State is focused on growth and specific goals BUT, "In fact, being a parent is valuable precisely because it is so unlike goal-directed productive work." https://www.theguardian.com/books/20...-alison-gopnik
Both the State and the finance industry are toxic to the family. The more centralized the State, the more toxic it is. If the State wants to co-exist with the family, it will have to radically change.
Globalism Is A Barbaric Relic - Voluntary Tribalism Is The Future | Zero Hedge

[Danny B]

How Illinois politicians consciously created these debt and pension crises - Chicago Tribune
"Walstrum doesn't go here, but in countless cases that lavish spending, especially in sweetheart pension deals for public employees' unions, bought incumbents the votes, campaign contributions and Election Day muscle that got them re-elected time and again. Not only did the public officials spend other people's money, they spent money that didn't exist. To cover their tracks, they borrowed vast sums and knowingly underfunded the very pensions they had sweetened."
Nothing new.

"At issue was whether the Illinois Teachers Retirement System board should lower expectations about how much the fund might earn in the stock market. For the past two years, TRS has assumed that its investments will earn an average rate of return of 7.5 percent." NOT with NIRP.
" state government would be on the hook to make up the difference, estimated to cost an extra $400 million to $500 million a year, an expense that would come due starting in July. The governor and lawmakers would have to find that extra money, " An extra $ 1/2 billion,,, no problem.
Rauner loses $400 million vote on teacher pension fund issue - Chicago Tribune

April; "This Is Going To Be A National Crisis" - One Of The Largest U.S. Pension Funds Set To Cut Retiree Benefits | Zero Hedge
Actuaries figure on a 7--8% return to pension funds.
Government-worker retirement plans had 0.36% return last year
Underperformance may lead to higher bills for states, cities
U.S. Public Pensions Post Worst Returns Since Market Crash - BloombergNo problem. We'll just squeeze and extra $ trillion out of the taxpayers.Good math.
The Pension Fund That Ate California | City Journal

"The US Healthcare System Bubble Is Going To Burst; This Is No Different Than The Subprime Crisis" http://www.zerohedge.com/news/2016-0...ubprime-crisis

[Danny B]

Gold in Denver

"Gold and silver have been used as money worldwide for thousands of years. All things used as money have had one thing in common, they were all tangible wealth. They were all things you could touch. They were all things you could weigh and measure. Credit, however, is intangible. You cannot touch credit. You cannot weigh and measure it because there is no substance to weigh and measure. It is all imagination."

https://topstocks.com.au/threads/gold-at-usd-806

Has the Federal Reserve Sold the Gold at Fort Knox?

Alexander Lassen; "He predicted: 'Long before we wake up from our dream of prosperity through an inflated currency, our gold- which alone could have kept us from catastrophe- will have vanished and no rate of interest will tempt it to return.' " The Federal Reserve: An Astounding Exposure 1934

J.P. Morgan sold off it's gold vault in New York because they had no gold. There is fairly good evidence that there is a tunnel from their vault that goes just 90 feet to the FED vault. Why Is JPMorgan's Gold Vault, The Largest In The World, Located Next To The New York Fed's? | Zero Hedge

FOFOA has an article about local newspaper reports in Kentucky showing lots of heavy trucks leaving the gold depository at Fort Knox. The cited articles are easy to find. Reportedly, Robert Rubin sold off the gold.

In August of 2014, the Denver mint reported that it was storing gold and silver.

http://www.zerohedge.com/sites/default/files/images/user227218/imageroot/2016/08/12/Denver%20Aug%202014.png

In September of 2014, the Denver mint reported that it was storing silver.

http://www.zerohedge.com/sites/default/files/images/user227218/imageroot/2016/08/12/Denver%20Sept%202014.png

http://www.zerohedge.com/news/2016-08-26/there-any-gold-bullion-stored-us-mint-denver

The Central bankers seem to be in panic mode even though we aren't technically in a recession. There is over 5,000 tons of gold traded every day,,, almost entirely paper trades with no delivery. In May of 2016, there was an emergency shipment of gold from Switzerland to America that matched almost perfectly ounce-for-ounce of the physical deliveries demanded from the COMEX warehouses.

Then, there is GLD. It is never audited. They say, trust us. http://www.goldensextant.com/GLD.html

[Danny B]

They can't find the money and don't even know what it looks like.

"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."
From Gold to Federal Reserve Notes excerpted from the book Web of Debt The Shocking Truth About Our Money System And How We Can Break Free by Ellen Hodgson Brown

"We say in our platform that we believe that the right to coin money and issue money is a function of government .... Those who are opposed to this proposition tell us that the issue of paper money is a function of the bank and that the government ought to go out of the banking business. I stand with Jefferson... and tell them, as he did, that the issue of money is a function of the government and that the banks should go out of the governing business"

Greenspan; "The problem is that we cannot extract from our statistical database what is true money conceptually, either in the transactions mode or the store-of-value mode. One of the reasons, obviously, is that the proliferation of products has been so extraordinary that the true underlying mix of money in our money and near money data is continuously changing. As a consequence, while of necessity it must be the case at the end of the day that inflation has to be a monetary phenomenon, a decision to base policy on measures of money presupposes that we can locate money. And that has become an increasingly dubious proposition."

http://www.alhambrapartners.com/2016/08/25/the-reckoning/

This, from a long-time moneymaker, https://www.rt.com/business/356148-r...world-economy/

"Stated differently, home equity was tapped out last time and wage and salary incomes have been fully leveraged for years. So households have nothing else left to hock.
Accordingly, they now only spend what they earn" The Market’s Being Set Up For A Hard Fall - The Daily Reckoning

"According to several sources, the U.S. population was 122 million in 1929 while total public debt was $16.9 billion. Thus, the average debt per American in 1929 was $139. Compare that to a population of 320 million and $19.4 trillion in debt at an average $60,625 per American today."
"What is interesting about total U.S. debt is that after each World War, the total level of debt declined for several years. For example, after the end of World War I, total U.S. debt fell from $27.4 billion in 1919 to $16.1 billion in 1930 (source). This was also true after World War II when total U.S. debt fell from a high of $269 billion in 1946 to a low of $252.7 billion in 1949."

"Over the next several, as total U.S. debt continued to increase, there were a few years that experienced declines (1951, 1956 & 1957)."


VERY strange coincidence. Our money is debt money. Every time that our debt load threatened to drop, we had to have a new war. J.M. Keynes advocated perpetual war. With all the wars we've been having, we definitely have a high debt load; https://srsroccoreport.com/wp-conten...erican-NEW.png
Is perpetual warfare the 8astard child of debt money?

https://srsroccoreport.com/gold-debt-the-1929-great-depression-vs-the-next-great-collapse/

Edit; "In the World War [I] a mere handful garnered the profits of the conflict. At least 21,000 new millionaires and billionaires were made in the United States during the World War." http://wakingtimesmedia.com/donald-s...st-understood/http://www.321gold.com/editorials/mo...rty082416.html

[Danny B]

Hyperinflation of debt money? The tectonic battle between gold and the SDR

There are numerous forecasts for hyperinflation. The first entry in a google search is CORRECT. The next 5? entries are incorrect.
Hyperinflation Definition | Investopedia
Investopedia
When associated with depressions, hyperinflation often occurs when there is a significant increase in the money supply not supported by gross domestic product (GDP) growth, resulting in an imbalance in the supply and demand for the money. Left unchecked, this causes prices to increase, as the currency loses its value.

It's simply an increase in the money supply. Price inflation can result from an increased supply of money chasing a fixed supply of products. not supported by gross domestic product (GDP) growth.decreasing supply of goods. The FED calls for a 2% (price) inflation rate at the same time that it GROSSLY inflated the money supply. QE acts like anti-matter to wealth by destroying investment income. When you destroy all possibility of future earnings, you destroy all interest in future investment.
America’s biggest economic problem: Nobody is investing for tomorrow - MarketWatch

GOV loves NIRP. "Meanwhile, the European Central Bank (ECB) demands interest rate payments from the banks which deposit their money at the ECB."

https://mises.org/blog/how-central-banks-are-bleeding-middle-class-dry

From this point of view, NIRP is a mechanism to perpetuate socialism at the cost of all future development.

Essentially, GOV piles on more debt to create price inflation. They want a wage-price spiral to diminish the pain of paying off the debt. Asset prices are going up while wages are going down. Earnings are in the basement while asset prices are in nose-bled territory. What could go wrong?

There has been a war on gold to keep it from being considered as a store of wealth outside of GOV/banker control. The crash of the London Gold poolNOT going to happen without helicopter money.He lists this point and then drops the ball.Not going to happen.
Jim Rickards: "There Will Be A War On Gold" - Sprott Global Resource Investments Ltd.
Rickards wrote a book, "the Death of Money and the New Case for Gold."
How can he write about the death of fiat currencies and then think that the R.O.W. will accept a new fiat paper, the SDR?
The cascade default of the credit system will take out every non-tangible instrument. That includes your bank balance. The paper dollar will go UP in value because they are so rare.
Rickards writes about a loss of confidence in currency and then proclaims that the SDR is the new currency. It's been around for decades and nobody wants it.

Yep, everybody is getting tired of all the shuking and jiving out of the FED with no rate increase.
Think that might affect the price of oil?