Economic pressures

[Danny B]

If the party is over, will they turn out the lights?

Alex Jones says that the globalists will attack Trump with economic collapse; https://www.youtube.com/watch?v=AJp6GygI92Y&t=264s

https://mishtalk.com/2016/11/08/greenspan-foresees-5-percent-interest-rates/

Greenspan said "problem' what he meant to say was collapse and revolution
So the bankers got an 8 year bout of currency inflation that just happened to coincide with the term of the bum they put in the White House.
The next bum in line turned out to be such a criminal that NOBODY could stomach her. Will the bankers freeze credit to provoke a collapse?

NOT by accident.
Yep,, capital outflows,,, they're buying up everything that they can.

[Danny B]

The banker plan to neutralize Trump

" it would only take a 100 basis point rise in Treasury bond yields to trigger the worst price decline in bonds since the 1981 bond market crash."
"a violent move starting around the time of the Trump election was guaranteed after midnight"
"which in turn, have seen their biggest absolute jump in yields since the Taper Tantrum in 2013"
"If this is indeed how China plans on "celebrating" the Trump presidency, namely by liquidating billions in US Treasurys on a daily basis.....
China Is Suddenly Dumping Treasuries | Zero Hedge

James Dale Davidson, "I would not be surprised to see the Federal Reserve raise interest rates to underline their bogus theory that the economy is strong. Soon thereafter, however, a recession will be declared. The establishment will try to ring-fence Trump and make him the scapegoat for the inevitable decline of the economy. "
Trump the Collapse With Gold
The 2 writers quoted in this article have a very good track record of being correct.

[Danny B]

The long game

The long game is; the bankers trying to regain control. BUT, these are Western bankers. The East has no plan to be subservient to the West. So, while the West plans to rule the world, the East will close ranks against the West. If for no other reason, they will do it for survival and independence. It remains to be seen if the West can outmanouver the East.

"The bottom line is, Trump is on the way to the White House because the elites WANT HIM THERE. Now, many liberty proponents, currently in a state of elation, will either ignore or dismiss the primary reason why I was able to predict the Brexit and a Trump win. These will probably be some of the same people that were arguing with me only weeks ago that the elites would NEVER allow Trump in office."
This IS going to happen. The elites play the long game"
Is this strictly the game of Western elites OR everybody?
"He Won Because The Elites Want Him There, The Global Economy Will Collapse" | Zero Hedge

Democracy always morphs into socialism and always breaks the bank. That is why America was founded as a democratic republic. We have morphed into a socialist State and the bank is definitely broken. The Marxists advocate that GOV tax the beans out of everybody to hire more and more people into GOV. That way, everybody approves of GOV. The problem comes in when you can no longer pay all those people who depend on a GOV salary. You print more and more money until your trading partners don't want your currency any more.
What happens when the State can no longer function as the "firewall" between the non-producers and the cold, hard world of Darwinian pressures?
The self-appointed Western elites must drag the whole world into socialism to avoid having their western currencies shunned in the global market.
Socialism means; A few work and the rest sit on their A$$ The East will never want to work while the West sits on it's collective A$$.

The Western PTB may very well have a plan to rule-run the world but, I don't believe that R.O.W. will go along with it.
49% of Americans pay no income tax. 51% of Americans depend on GOV for a paycheck. The PTB may very well crash the system and hope to regain control many years later. I doubt that this will work. Jim Rickards preached for may years that the SDR would be the new "world money". He is now resigned to the fact that the PTB will never be able to introduce it fast enough when the collapse hits.

The State has created a huge cadre of people who depend on GOV. This sounds like a good idea from the perspective of GOV,,, until GOV can no longer pay for the enormous clamoring horde. China is at war with the FED and this will ensure that the party ends pretty soon. What will happen to all those people who live in a State-supported bubble?
What will they do if economic reality intrudes into their comfortable bubble?

https://www.theburningplatform.com/2016/11/10/sorry-snowflake-but-its-not-over/

Some people figure on going to Canada to continue the free ride;
https://www.theburningplatform.com/2...s-from-canada/

https://mishtalk.com/2016/11/10/not-getting-it/

[Danny B]

Trade imbalances and gold

The banks cut off the credit to Hanjin Shipping and it completely collapsed. While the banks could cut off general credit to purposely crash the economy,,, to crash Trump,,,, the memories of LTCM, AIG, Freddy, Fannie and Lehman Bros. are not for off. The banks can indeed crash the system BUT, they can't control how far it goes down.

Pax Americana and the FED planned to de-couple the economy from the rest of the world and watch the rest crash. That did NOT work.
The End of the Federal Reserve hegemony - 2017? [Video] - Fort Russ

Advice for Trump;
"Trump will be offered much advice, all of it bad. Apart from the usual lobbying from political groups, Wall Street and the Fed have set themselves up in their own cosy world, freed from political intervention, where they quietly rob the poor and reward themselves and their business cronies through monetary inflation, made justified as monetary policy. Exceptionally, Trump has not yet been bought by the banks, unlike presidents before him."

The article is deeply flawed but, it has just a couple of good points.Perilous government finances

Deflation by any other name is still deflation.
Desperation by any other name is still desperation.
This shows that the NY Times can reliably be expected to be wrong all the time. The FED created gobs of currency inflation to hold down the interest rates in the upper loop. This was done so that the banks could always "earn" some "spread". The FED can raise interest rates and completely crater the economy. That would by an enormous deflation implosion.

Mish,,, irresponsible lenders.
"there seems to be an aggrieved sense on the part of creditors that after providing so much helpful funding to undisciplined debtors, the creditors are going to be left with losses. There is, they claim, something terribly unfair about the whole thing."

Trade Imbalances Lead to Debt Imbalances

https://mishtalk.com/2011/07/08/hugo-salinas-price-and-michael-pettis-on-the-trade-imbalance-dilemma-golds-honest-discipline-revisited/

[Danny B]

But then again linear thinking extrapolated too far in a dynamic world produces thisAs mentioned earlier we believe that bonds turned back in March of this year.

https://capitalistexploits.at/2016/11/asymmetry-action-charts-telling/

[Danny B]

What The Hell Is Suddenly Going On With Foreclosures? | Zero Hedge

This is a comment that I pilfered;
The FED
" Yup, they own 2.5T worth of mortagages which are title on land. You and I have to bust our asses to work to get cash to buy a house, not the FED, oh no! They get their banker buddies to give loans, with money that does not exist, to idiots that could never afford to pay and then when they can't pay, instead of letting the bank fail....the FED bails the bank out with....wait for it....more money printed out of thin air and get title of the property.

Did you girls follow that? Once again, loan out money that doesn't exitst to someone who can't pay to buy a house.
The loan goes bad, the bank gets in trouble so the FED buys the loan from the bank with fresh new money just printed.
FED now owns the house."

[Danny B]

https://www.theguardian.com/world/2016/nov/10/rupee-note-cancellation-panic-in-india-banks-500-1000

The finance system is about to get pummelled again from a further crash in oil prices. Oil Tankers Used to Store Millions of Barrels as Land Sites Fill - Bloomberg

[Danny B]

The end of a credit cycle and beginning of a default cycle.

Al Gore has a brilliant strategy for fighting climate change, Spend $90 Trillion To Ban Cars From Every Major City In The World. https://mishtalk.com/2016/11/12/krug...e-is-clueless/Run for the exits.Mama Mia
Weekend Edition: Get Ready for the Greatest Financial Mania the World Has Ever Seen, Part 2 | Casey Research

There is already a lot of cash on the sidelines. What happens to this cash when debt instruments crash? Sidelined Cash Could Move Gold in Big Way

As the default cycle heats up, the banks will tighten credit. As we saw with Hanjin shipping, the loss of a credit line brought quick bankruptcy. If corporate debt is 45% of GDP, you can see that tightening credit will start feedback effects of collapse and unemployment. The world has so much over-capacity in manufacturing that the credit collapse will take down 60--70% of manufacturing before the dust settles. The CBs have started outright buying of equities to hold back the default cycle.
At some point the wheels will come off the roller coaster ride as it blindly flies through the casino while the riders are hopped up on monetary Viagra, snorting monetary oxycontin while sitting on a powder keg of $1 quadrillion in derivatives at the same time that they are trying to avoid flames shooting out of the U.S. Treasuries market.

[Danny B]

Like It or Not, Donald Trump Saw the Economic Crisis the Others Didn?t - The Daily Beast

California is now going to use radar to write tickets for speeding bicycles.
Trump has some good ideas for lightening student loans; https://www.armstrongeconomics.com/i...student-loans/

https://jonrappoport.wordpress.com/2016/11/11/trump-wins-coloring-book-and-play-doh-therapy-for-college-kids/

ALL the markets have rolled over and we have entered the default cycle. Just what are these kids going to do when 60--70% of the economy collapses?,,, other than blame Trump.
"Character is best developed in the stormy billows of the world" What stormy billows?,,,, a broken fingernail? These kids are not going to make it.

[Danny B]

All quiet on the western front,,, not so quiet on the eastern front

There really isn't much happening at the moment because markets don't know how to react to the political changes.

As the dollar rises, the emerging markets will find it ever more difficult to service dollar-denominated debt. It also makes U.S. exports less competitive.

There's more than one way to fight a war. Oil has fallen and it won't get up any time soon. The exporters have run out of room to store it. The bankruptcies will continue to pile up.

The BS nears the tipping point.

[Danny B]

The next phase of the crash is starting..... Kunstler

By electing Rat Ryan, the GOP has indicated that they are going to block Trump's spending plans. That is going to cause big problems down the road.
The bankers backing the chump from Kenya were happy to inflate with no limit. BUT, they have locked the economy into ZIRP and Trump can't break the pattern without a total crash. Trump's Mandate to Yellen: Print More Money or You're Fired! | Michael Pento | Safehaven.com
The House originates all spending bills and they may very well decide that now is the time to become responsible.
We are faced with financial death by explosion OR, financial death by implosion.

(Marx), "In this view, there is no meaningful class difference between the well-paid liberal technocrat with the $1 million (mortgaged) house on the Left/Right Coast and the rural conservative "deplorable" wage earner. Both must sell their labor and neither earns a livelihood from wealth-generating capital."

" Both are precarious, but not equally so. The well-paid technocrat believes his skills will protect him from unemployment, and he is equally confident that the "wealth" in his mortgaged house and stocks/bonds 401K retirement account is secure and permanent.
He feels superior to the "deplorable" wage earner, but this superiority is contingent on 1) asset bubbles never popping (ahem, which they always do, eventually; 2) software that's eating the world will not eat his job or the premium he is currently being paid, and 3) the skills he currently has won't become over-supplied as the global work force expands into the sectors that require high levels of education."

" The urban liberal technocrat feels morally superior to the "deplorable" wage earner because he 1) considers himself a "winner" and the "deplorable" a loser and 2) he has mastered the politically correct speech acts that signify his superior "progressive" status.
There are two ironies in this presumed superiority:
1. The urban liberal technocrat is one credit/asset crash and one pink slip away from a rapid and catastrophic decline in living standards to "loser" status"
oftwominds-Charles Hugh Smith: The New Nobility Uses Political Correctness to Fragment the PrecariatsBlame Tel Aviv

"As it happens, America may be forced by economic circumstances to yield the burdens of empire. The world is about to become a bigger place again as globalism winds down and the larger nations establish more realistic spheres of influence. We better get with the program." It happened to Great Britain, France, et al
What Now? - KUNSTLER

[Danny B]

Revolution Edition

"There is an attempt to create a socialist revolution in this country led by the youth and Obama and Hillary seem happy with that. This is a very dangerous situation and the computer does show rising civil unrest. The Democrats seems to be intent on burning down democracy if they do not win. I have never seen this get so out of hand in my lifetime."
Martin Armstrong Warns "We Are Spiraling Toward Civil War If This Is Not Stopped" | Zero Hedge

John Rubino; https://www.youtube.com/watch?v=lFBgQJNwd2A

Jim Willie; https://www.youtube.com/watch?v=7FytpzuAVw8
Charles Hugh Smith on the slide into disorder; oftwominds-Charles Hugh Smith: Now Is the Winter of our Discontent: Our Era of Rising Discord
Venezuela lost their income in the fall of oil prices. America will lose it's income in the rejection of Treasury bonds. We will have to actually pay for what we import.
As the U.S. Smolders, Venezuela Burns - Bloomberg


ANY rate hike at all will bring total disaster. Our debt is reckoned as 250% of GDP. A rate hike would crater the bond market and make most markets insolvent.
Buy a snorkel. You're going to need it for everything.
Costa Mesa firemen cost over $ 250,000 a year each.
There will be a day of reckoning and the public employees are going to be very unhappy.

The head of the SEC was instrumental in promoting the paper-gold scam. This was done to hold interest rates down and allow huge monetary inflation,,, so we could have lots of wars on our credit card.
She is leaving as Trump is entering. There is over 4500 tons of gold traded daily. It is doubtful that Trump will appoint a crook to the head of the SEC.
Everybody will abandon the paper-gold market if they fear it will have an attack of honesty on bogus position limits. Should this occur, you won't find physical gold for sale at any price.

Jim Willie has been adamant that we will get a new currency. GOV will print to try to keep all the GOV programs and GOV employees happy. That is when we will see price inflation. That is when imports will fall drastically in volume. That is when GOV will convert retirement funds into GOV bonds.

[Danny B]

Trump laid out plans for massive infrastructure spending and big tax cuts. The markets assume that he plans to borrow tons of money. Will the “Rout” in Government Bonds Turn into Carnage? | Wolf StreetThere is definitely a flight from U.S. GOV bonds. Saudis, China Dump Treasuries; Foreign Central Banks Liquidate A Record $375 Billion In US Paper | Zero Hedge

It's not just Federal governments that have over-spent.Who’ll Get Hit by Fallout from the $11-Trillion Commercial Property Bubble in the US? | Wolf Street
Our wages went down,,, our spending went down,,,,, commerce went down,,, there are over 1 billion sq.ft. of empty retail real estate. Manufacturing went down. Many of these buildings were financed in the good times. As the good times ended, the loans were rolled over to keep cash flow moving.
The bad times are still with us and the loans are defaulting.

Trump will eventually have to make a decision about debt-free helicopter money. The banks will probably fight it even though it is the only thing that might save them.

We actually DO need a central band. Human nature being what it is, we are prone to panics. The banking industry is prone to over-reach and crash. The job of the central bank is to keep the panic from spreading. This is a legitimate function and, was the only function of the original FED. They would make emergency loans to banks for GOOD collateral. This prevented GOOD banks from crashing. The wildcat/bad banks were left to crash. Subsequent changes in the FED charter are what brought us to the sad state where bad banks are saved. There are frequent demands that the FED be abolished. We need a central bank that is independent of banker control.
Why Donald Trump Must Shut Down The Federal Reserve And Start Issuing Debt-Free Money

When it comes to credit, why should we expect either the banks or the public to have any self-imposed limits?
"#9 Total household debt in the United States has now reached a grand total of 12.3 trillion dollars."
"#4 Approximately 35 percent of all Americans have a debt that is at least 180 days past due."
"#1 Nearly 7 out of every 10 Americans have less than $1,000 in savings. That means that about two-thirds of the country is essentially living paycheck to paycheck at this moment."
11 Very Depressing Economic Realities That Donald Trump Will Inherit From Barack Obama
Credit is a poison-pill for most people.

[Danny B]

Dollar illiquidity

Alternative currencies in Spain, https://sputniknews.com/europe/20161...cial-currency/
Eurozone Ready to Sign Off on Sanctions Against Portugal, Spain
Fed's Kashkari Releases Plan To End "Too Big To Fail", Compares Banks To Terrorists | Zero HedgeDollar Illiquidity Getting Critical: A $10 Trillion Short Which The Fed Does Not Understand | Zero Hedge
Yep, the flight to the dollar can bring everything else down.



Tel Aviv West and Tel Aviv East both agree that Syria must be destroyed as a State. The Russians have put in enough missile to keep everybody out. If Syria was destroyed, Tel Aviv can come in and steal the goodies.

https://sputniknews.com/middleeast/201510071028142336-israel-golan-heights-oil-discovery/

McCain is frothing at the mouth at the prospect that Trump will make peace with Russia.
Trump,,,,,,, America first,,,, how dare he?

[Danny B]

Justifying a rate hike

The dollar rises as investors flee weak markets/States; The FED talks about raising rates,,,, which will attract more capital and make the dollar stronger.
Dollar Illiquidity Getting Critical: A $10 Trillion Short Which The Fed Does Not Understand
So, dollars are in very short supply to service dollar-denominated debt. Investors are searching for yield and will flock to on-shore dollar investments if the FED raises rates.
GREAT, with full employment, we can definitely use a rate hike.

Neither Trump, nor god can turn the economy around soon. He has to continue current policies for a while. The FED has held rates down for most of the tenure of the Kenyan bum. The December FED meeting should give us an indication if the economy is going to die of implosion OR explosion.

An article on the problems in India by; Jayant Bhandari
Scenes Of Panic In India As Gold Price Skyrockets After Currency Ban | Zero Hedge
Turns out, they elected a tea seller as Prime Minister.