Economic pressures

[Danny B]

Interest rates, fear,,, the Rubicon

Interest rates are the talk of the town.

Armstrong, "What the IMF is warning about is the risk of interest rates rising and countries who have borrowed in dollars are presenting a major Emerging Market Debt Crisis. Then we have the two-fold risk is the currency and the interest rates. Many others have borrowed but with floating rates. Our model is warning that rates are going to more than DOUBLE. In the face of that probability, we are looking at a very distinct and unique type of debt crisis."

"it seems like short treasuries is the current consensus (I believe they are currently at the biggest net short position in recent history). Since most people need to be wrong, does this suggest that as global debt unwinds that perhaps US Treasuries may still have another rally in them before the final crash?"
"In the case of interest rates, the long-term is clearly staring at higher rates square in the eyes."
"We have NOT yet crossed the Rubicon in interest rates. We still have not yet elected the 4th Monthly Bearish Reversal. When we do, the 30-year will signal the debt crisis is in full gear."
"Hence, the euro looks like death warmed over, political chaos is brewing, so you have to push money out the door to other currencies. Hence, the dollar keeps rising and the political rhetoric against Trump is desperate to hide the trend that his strategies have been working on bringing capital home and renegotiating NAFTA. So with the dollar strong, euro in crisis, you have no choice but to buy Treasuries even if for short-term plays."

"Consequently, you can be correct that the long-term trend is UP UP AND AWAY for interest rates. However, the devil is lurking behind every rock along the path."
"Hence, we have not yet crossed the Rubicon. When we do, it will be time to shout very loud so our readers will hear. We can see that the chart patterns between dollars and euro in the 30-year Treasuries is as different as night and day."
EVERYBODY sees the writing on the wall as far as the Euro is concerned. As capital flees there, it leaves behind DEFLATION. The ECB prints and,,, the new money flees.

https://www.armstrongeconomics.com/markets-by-sector/bonds/bonds-the-record-high-short-position-can-majority-be-wrong/

As capital flees weak economies in favor of the dollar, the dollar price of gold does not rise,,, of course not. It will be later in the future when the dollar blows and gold is in demand. Still at least a couple of years.

https://www.zerohedge.com/news/2018-10-08/trader-italys-situation-truly-unprecedented

Italian debt is 130% of gdp. They will NEVER escape,,, without default. 70% is considered the safe limit.
'We'll close our airports!' Salvini resists Germany's plans to send migrants back to Italy

https://stephenlendman.org/2018/10/americans-have-no-say-over-how-theyre-governed/

AND, what do we get?

https://www.rt.com/news/440511-pentagon-chinese-aggressive-industry/

https://www.zerohedge.com/news/2018-10-04/sign-times-political-divide-america-worst-its-ever-been

[Danny B]

Treasury market BS vs population

The price of money (credit) is a big controlling factor for the economy. That is mostly related to the U.S. treasury market. I'm reading articles about the Treasury market that will make your head spin. The major factors affecting decisions at the FED are; we are at a 48 year low in un

https://www.bloombergquint.com/markets/new-era-of-rising-rates-finally-dawns-on-u-s-treasury-investors-2#gs.IgCcfGI

This article is loaded with LOTS of charts and technical BS.

https://www.advisorperspectives.com/articles/2018/10/08/a-roadmap-for-the-upcoming-u-s-treasury-bull-market-1

It's enough to give you a headache. The one takeaway is just one chart of interest rates.

https://www.advisorperspectives.com/images/content_image/data/88/886b9f26717685a83c7a4f8680afb98c.png

It shows a slow march down that the CB can't escape from.
"The next recession will be a cousin of the 1937/38 recession, the first recession following the Great Depression that shocked everyone with its ferocity."
Reportedly, 5.1 million starved to death in Great Depression I
Japan clearly shows that you can not escape the economic doldrums if you have a falling population.
All the BS articles on interest rates IGNORE falling population.

https://seekingalpha.com/article/1863561-population-growth-and-interest-rates

Armstrong, "Currency is the pressure value for an economy, but with Europe this is forced into the debt markets. The trend and capital flow continues in favour of the US Dollar. "

https://www.armstrongeconomics.com/market-talk/market-talk-october-8-2018/

The dollar is the common currency for the 50 states. The 50 States have a common debt market. The Euro is the common currency for the 28 members of the eurozone,,, minus the UK. The Eurozone does NOT have a common debt market. The European debt markets will blow to smithereens because the individual States can not devalue their currency. Not sure about the British Pound.
The death march of the euro is part of what holds up U.S. stocks.

[Danny B]

https://proxy.duckduckgo.com/iu/?u=h...5%2529.png&f=1

https://news.goldcore.com/ie/wp-content/uploads/sites/19/2018/10/Chartbook-In-Gold-we-Trust-2018-Oct.pdf?x78236

"Central bank policies completely distorted production capacity and global supply chains, crippling corporations with staggering debt loads and zero pricing power. Once global demand declines-- which is the inevitable result of bringing demand forward for a decade-- hyper-indebted corporations won't be able to service their debt. "
" Zombie corporations in emerging markets using currencies that are in free-fall to service USD-denominated debt are doomed.
But many of the USD-denominated loans were issued by European banks, which means they will suffer catastrophic losses as the emerging-market zombies default on their USD-denominated loans.
The defaults and currency crises in the periphery will then move into the core."
oftwominds-Charles Hugh Smith: The Global Distortions of Doom Part 1: Hyper-Indebted Zombie Corporations

https://www.zerohedge.com/news/2018-10-08/corruption-its-no-wonder-so-many-pension-funds-are-insolvent

Sure, economic growth while the population is falling.

China is in a debt trap that will blow up eventually.

Whenever it is quiet, I can always look for Jim Willie.
"game on for President Trump in the clean-up process of the Deep State players after over 30 years of narco-fascist administrations,
the prospects of reconstruction for the USEconomy over the next several years, the requirement to avoid a vaporization of the financial system during the transition which constitutes the Global Financial RESET "
Do you think that this reset can be brought about peacefully when the legislature is locked into a partisan battle to the death?

"The USFed has caused every financial crisis since the 1980s. Both outsourcing of US industry and QE monetary policy assure more crises. The actual price inflation is over 8%, thus the lie on GDP is over 5%, and therefore the USEconomy is stuck in a 12-year recession. The debt engine is broken, since it takes $5 in new debt to create $1 in economic activity."
"This time around the entire globe is participating with national breakdowns in the crisis. Call it the Everything Bond Bubble or the Systemic Lehman Event. The Chinese are using very clever financial tactics which include a Debt-Trap Diplomacy game, using USTBonds for extended credit."
GOLDEN JACKASS.COM - The Golden Jackass Knows Gold, Currencies & Bonds"

[Danny B]

Stocks and bonds never crash together

Corporate America borrowed about $5 trillion to do stock buybacks. This greatly raised earnings and bonuses for corporate cronies. The insiders have recently started dumping their shares. Bonds have broken out of a 30 years downtrend. Junk bonds are starting to crash.

This can be seen as deflation of the circulating money supply.

Will Powell step in?

This doesn't happen.


More deflation.

Yep, all tied to interest rates.


Lega Nord is on a roll. Evidently, they have borrowed a few hand grenades from Trump, AND, they intend to use them.

Did I mention that the UK is a pressure cooker with no pressure release?

OK, everybody is saying that stocks are going to blow. Themarkets have slipped quite a bit. Armstrong says that global capital flight will uphold American equities markets. This is going to be very interesting.

Armstrong, "the market peak on the target week in the Array of 10/01 so it is simply all about the market getting tired. The vast majority are bearish and the most fascinating thing is what happened to the Flight to Quality? Normally, the stock market crashes and you run to bonds. But if the stock market is crashing and bonds are crashing, is this a completely new type of flight?"
Stocks and bonds don't crash together. BUT, corporate America is indebted up to it's eyeballs. Public debt is indebted up to our eyeballs. Nobody wants to risk the bond market.

https://www.armstrongeconomics.com/markets-by-sector/stock-indicies/when-the-market-crashes-the-scenarios-make-no-sense/

https://www.armstrongeconomics.com/markets-by-sector/interest-rates/interest-rates-the-long-broad-trend/

Now, the NASTY part.
"There is absolutely no resolution to the great divide that has unfolded politically. The Democrats advocate violence as Hillary clearly states. She says that civility can ONLY return when the Democrats take back the government. Clearly, this is throwing down the gauntlet that it shall be their way or no way. This is the end of Democracy"
"1985, I warned that we would face a Crisis in Democracy. It would begin as the government loses power over the economy and the people, "
"The next stage is the violence"
"Hillary is effectively advocating the destruction of the United States. She has simply stated bluntly that democracy will no longer be tolerated unless the Democrats win and then subjugate the opposition. "

"We have crossed the line. There is no going back. We will now face the Decline & Fall of the United States "

https://www.armstrongeconomics.com/international-news/politics/hillary-advocates-violence-unless-democrats-win/

https://www.thenewamerican.com/world-news/europe/item/30281-globalist-cfr-g9-committee-must-save-world-order-from-trump

[Danny B]

https://www.theautomaticearth.com/2018/10/of-course-the-fed-is-crazy/

https://www.hussmanfunds.com/comment/mc181002/

We can clearly see the economic indicators winding down. It is unknown just how this will affect investment sentiment.

https://moneymaven.io/mishtalk/economics/four-main-economic-drivers-sputtering-saxo-bank-charts-V8ifyavmPE2r2k2weAEWVg/

Nomi Prins has more to say on this.

https://dailyreckoning.com/pillars-debt-danger-of-collapse/

The "establishment" is trying to uphold investor confidence. Apparently, Zero Hedge is going the opposite direction.

https://sevenfigurepublishing.com/2018/10/11/crash-2/

EVERYBODY is a critic of the FED until they get elected to office,,,, and want to keep the party going during THEIR term.


There really isn't much that China can do. Their corporate sector is rapidly melting down, and everybody knows it. If they sell dollars to buy Yuan, EVERYBODY will dump their Yuan at that artificial valuation.

[Danny B]

Plodding by the milestones

Armstrong, "All the yelling and claims for gold have never changed since the 1970s. They always claim the same scenarios. Meanwhile, gold rallies and then declines. It is a commodity like every other market. It cannot absorb all the cash in the world. The bond market is 10 times that of equities and equities are several hundred times bigger than gold. "

https://www.armstrongeconomics.com/markets-by-sector/precious-metals/gold/gold-has-it-just-died/

VERY disingenuous of him.
The stock-to-flow of gold clearly shows that gold is NOT a commodity.

https://www.goldindustrygroup.com.au/news/2016/7/7/gold-investor-series-stock-to-flow-why-gold-is-not-a-commodity

Here is a graph of the 10 year nots, https://www.zerohedge.com/sites/defa...GPC1011183.png
"This signals a tectonic shift. Throughout the post-2008 era, anytime stocks collapsed, money rushed into bonds.

Not anymore. Indeed, the bond market is now collapsing ALONG with stocks. The yield on the most important bond in the world, the 10-Year US Treasury, has broken its multi-decade trendline."

https://www.zerohedge.com/news/2018-10-11/everything-bubble-has-officially-begun-burst

One more milestone.

The United Nations is hard at work to clearly show that they have feces-for-brains.

https://www.zerohedge.com/news/2018-10-10/united-nations-240-gallon-gas-tax-needed-fight-climate-change

The media is getting a jump on blaming Trump for an economic crash just in time for the 2020 elections.

https://www.zerohedge.com/news/2018-10-11/media-suddenly-warns-recession-end-2020-will-be-worse-great-depression

Ho Hum

You can thank Powell for making Chinese goods more affordable.

Don't worry, as interest rates continue rising, mortgage will continue to crash.

He certainly did his share to bring on the crash.

Even the NSA was hacked. Cyber security is a fleeting chimera.


As Karen Carpenter once sung, we've only just begun.

https://voiceofeurope.com/2018/10/german-politician-sides-with-greece-and-demands-billions-be-repaid-after-forced-ww-ii-loan/

[Danny B]

http://media.peakprosperity.com/images/Hussman-http://media.peakprosperity.com/imag...2018-10-12.jpg

https://www.peakprosperity.com/blog/114445/has-%E2%80%9Cit%E2%80%9D-finally-arrived

https://creditbubblebulletin.blogspot.com/2018/10/weekly-commentary-rude-awaking-coming.html

YES and when the bubble pops, they won't have a red cent to meet margin calls or even,,,, pay their bills.

https://realinvestmentadvice.com/weekend-reading-we-are-all-in-again/

What will it be after the markets and pension funds crash?

Blame it on their ADD

[Danny B]

Credit / interest yo-yo,,,Italian bomb,,,Breakup-nation-state

Lots of notes today.
"If we look at the 180 most important economies in the world, only six have in their estimates of 2018, 2019 and 2020 an evident improvement of their fiscal and commercial imbalances. In other words, almost no government in the world plans to reduce the rate of debt increases."

https://www.dlacalle.com/en/market-crash-another-red-card-for-the-economy/

NOBODY wants to let off the gas pedal.

"Losses will have to taken, and nose-bleed fixed-costs will have to be slashed; reality will eventually have to be dealt with."
"But everyone will resist this process because high fixed costs are the gravy train everyone depends on. Slashing fixed costs destroys the income needed to support asset valuations which are the collateral for the stupendous mountains of debt that define the U.S. economy. Once that debt is written down, the entire financial system collapses."
"If you add up all forms of debt in the United States (government, business, consumer, etc.), it comes to a grand total of more than 68 trillion dollars. Other than hyper-inflating our currency into oblivion, there is no possible way that all of that debt will ever be repaid."
You Can Kick The Can Down The Road, But Reality Will Catch Up With You Eventually

There was never enough money in the system to make all the investors and bankers happy. So, we went off the gold standard so that liquidity could grow into a giant fountain. Still, that wasn't enough for all the millions of speculators worldwide. Greenspan came up with the idea of superseding the business cycle by replacing it with the credit cycle. The markets would all be perfect and there would be no more recessions. The excesses of speculation that drove the business cycle into "small" ups and downs were replaced by enormous excesses of speculation in the credit markets. Greenspan and Bernanke thought that they could play the interest-rate yo-yo so that the economy would never stumble. Here is a graph showing just how violent this yo-yo became.

http://media.peakprosperity.com/images/Hussman-GVA-and-Equities-b-2017-12-05.jpg

https://www.rt.com/business/441146-us-treasury-bonds-china-sale/

China desperately needs dollar to service dollar-denominated debt.

The dollar has been rallying against the yuan since the March low here in 2018. Clearly, the dollar is going to rise further for a trade war will hurt China more so than the USA. While we see critical turning points in January and March in 2019 followed by May, we must keep in mind that this pattern of a dollar rally is impacting the entire world. Trump FAILS to understand Capital Flows and his accusations against China is manipulating its currency to beat the USA in trade is NOT justified."
"We have tremendous Panic Cycles throughout 2019 and we see even the yuan is lining up with the targets concerning BREXIT. This is by no means a Chinese manipulation. "

https://www.armstrongeconomics.com/markets-by-sector/foreign-exchange/currency-war-the-misguided-understanding-of-the-forex-markets/

http://kunstler.com/cluster****-nation/hammer-time/

This is revenge for the Las Vegas shooting.

https://www.zerohedge.com/news/2018-10-12/italy-declares-war-merkel-and-eu

https://www.rt.com/business/422200-death-knell-euro-gold/

Doug Casey also writes on the end of the Nation-State.

https://internationalman.com/articles/doug-casey-on-the-end-of-the-nation-state/

Keep in mind that the nation-State is an artificial creation. Our number one motivation is self-survival and genetic survival. The family and clan represent the basic social-genetic unit. They are basically socialist where the producers willingly support the non-producers.
The Statists try to stretch the umbrella of socialist-genetic unselfish support over a group that is just too big and, too disparate. This is especially true if members of the group are of a different race that we consider "others".
We are BORN with this racial preference. It is part of our genetic makeup to protect and promote our genetic lineage.

It is part of who we are.

I'm perfectly fine with the breakup of the nation-State. Decentralization of wealth, power and control would be great.

[Danny B]

https://www.armstrongeconomics.com/international-news/europes-current-economy/merkels-conservative-lose-absolute-majority-in-bavaria/

https://www.armstrongeconomics.com/international-news/europes-current-economy/the-ecb-on-the-verge-of-collapse/

https://www.armstrongeconomics.com/world-news/taxes/australia-turning-really-authoritative-is-this-how-a-dark-age-begins/

Nobody cares about one journalist. I suspect that the incident is being leveraged to attack Mohammed bin Salman. maybe for ISIS,,, maybe for Las Vegas,,, maybe for Yemen. Dunno.
There have always been a lot of disappearances. https://www.project-syndicate.org/co...hcheva-2018-10


Housing in China is a hot-button issue like guns are in America. Housing is the main store-of-value for the Chinese. If Powell doesn't print, the perceived value of stocks & bonds falls. If XI doesn't print, the perceived value of housing falls. China is trying to slow the printing.


As Italy sets the stage for collapse of the EU, more and more Brits are thinking that an exit is a good idea.

[Danny B]

https://welcome2050.com/in-the-future-you-wont-own-anything-no-car-no-home-f374a3e8846a

Here is a vid that explains the The Collision of Demographics, Automation and Inequality

https://www.youtube.com/watch?v=K5R0xl8KdXQ&t=12s

https://www.youtube.com/watch?v=QkkLUP-gm4Q

The State now has much more powerful weapons.

https://www.youtube.com/watch?v=KEhmFp-Gvyc&t=83s

Everything is monitored. Everything is recorded.
We face a new world where there is almost no employment. We face a world of absolute surveillance. We face a future devoid of jobs that have any meaning.
The sovereign bond market is supposed to crash going in to 2020. (Armstrong)
FED GOV will no longer be able to provide make-work jobs to the legions of people who have no job niche in the private sector. At the same time, pensions will crash.
I suspect that very few people will want to bring children into such a brutal and controlled world.

[Danny B]

Stocks, take your choice,,, China needs an extra $6 trillion

Here is the good news on stocks.
Dow jumps more than 500 points, posts best day since March as earnings fuel rally

https://www.cnbc.com/2018/10/16/wall-street-futures-rise-ahead-of-goldman-sachs-morgan-stanley-earnings.html

The article tells you how great everything is.

https://www.zerohedge.com/news/2018-10-16/what-do-they-know-blackrock-exposes-institutional-exodus-stocks

Great chart, https://www.zerohedge.com/sites/defa...16_7-07-14.jpg

Here is another article of the type that I dismiss.
A full employment economy? What could possibly go wrong?96.2 million Americans of working age who are not in the labor force is dismissed as a bit of surplus labor capacity.

SS China resembles the Titanic steaming into a debt icebergSS China resembles the Titanic steaming into a debt iceberg | Asia Times
They let State-owned companies create unlimited credit instruments. What could possibly go wrong?



They aren't alone.

[Danny B]

What to do when there isn't enough circulating money

I'm trying to get my head wrapped around a new paradigm. Before the industrial revolution, the economy was constrained by limits to productivity. Since then, increasing automation has greatly increased productivity. We have reached a point where the production-consumption cycle is limited by consumption. To a great degree, consumption is limited by the circulating money supply.

Benjamin Franklin is referred to as, the father of paper money. We have to go back to his writings to understand the possible

https://www.peakprosperity.com/forum/hidden-history-according-benjamin-franklin-real-reason-revolutionary-war-has-been-hid-you/4358

We issue it in proper proportion to make the goods and pass easily from the producers to the consumers.
I see no mention of bankers. The State issued paper money in proper proportion to the goods produced. Simply put, the money was infused into the lower (productive) loop of the economy.
The 1907 Panic was created to justify the need for a Central Bank in America. We got the CB in 1913 and, a complete crash in 1929.

Federal Reserve - The Enemy of America

https://www.bibliotecapleyades.net/sociopolitica/esp_sociopol_fed26.htm

The Federal Reserve is NOT Your Enemy - Wealth Daily

https://www.wealthdaily.com/articles/the-federal-reserve-is-not-your-enemy/8334

America's Number One Enemy: The Federal Reserve - Prepare For ...

https://prepareforchange.net/2017/05/.../americas-number-one-enemy-federal-reserve/

Our Enemy The Fed | Mises Institute

https://mises.org/library/our-enemy-fed-0

Central banks are the real enemy of Americans - Winona Post > Article

https://www.winonapost.com/Article/.../Central-banks-are-the-real-enemy-of-Americans

Federal Reserve's Role During WWII | Federal Reserve History

https://www.federalreservehistory.org/essays/feds_role_during_wwii

universal basic income plan is an attempt to infuse money into the lower loop to increase consumption. It will NOT work if it is borrowed debt money. FED money has created 95% of the upper loop living on wet-ink money. You can imagine that the people and corporations who receive this money will fight tooth & nail to keep the system going.

Robots don't pay taxes or buy consumer goods. They have no use for money. Consumption will continue to fall. More automation will be brought online to compensate for falling profit margins. People will cut back even more on childbearing. This may be a good stratagem for reducing world population but, it spells destruction for government and banking.

This brings us to the final question. What can be done about the federal reserve and the current system?

https://www.foxbusiness.com/politics/trumps-biggest-threat-the-federal-reserve

[wayne.ct]

Truth, ethics and justice

These players are dolts. They each think they are doing the right thing and they will defend their assumptions with everything at their disposal no matter whether it is in fact right or wrong. They even have the temerity to assert that their view is best for everybody when it is self serving and has a host of negative consequences. I admit I suffer from many of the same deficiencies but a big difference remains. Namely, in aggregate they have more resources than I. A huge reservoir of resources.

[Danny B]

The new masters & slaves

The good thing about slavery is; you can take all of somebody's production and, only allow them a tiny part to survive. What happens if this idea / plan is taken to extremes? What if the slave is far more qualified than the owner?
Here is the new class of slaves.
Workforce Cut from 650 to 60, Productivity Triples at Unmanned Factory

https://www.youtube.com/watch?v=EsNcoUo7MTU

Viscon Hydroponics - Fully Automated Hydroponic System - Gipmans

https://www.youtube.com/watch?v=V1PcgtWAEnU

Here is the new master.

https://www.youtube.com/watch?v=Pls_q2aQzHg&t=187s

Artificial Intelligence: Mankind's Last Invention Aperture
Artificial intelligence may replace 40% of all jobs: Bridgewater founder Ray Dalio

https://www.foxbusiness.com/markets/artificial-intelligence-may-replace-40-of-all-jobs-bridgewater-founder-ray-dalio

Energy Slaves: every American has somewhere between 200 and 8,000 energy slaves
Energy Slaves: every American has somewhere between 200 and 8,000 energy slaves | Peak Energy & Resources, Climate Change, and the Preservation of Knowledge
22 Billion Energy Slaves
22billionenergyslaves.blogspot.com/
Thisness of a that: Energy Slaves

thisnessofathat.blogspot.com/2012/06/energy-slaves.html
Jun 11, 2012 - For example, it would take 11 energy slaves peddling madly simply to ... In the absence of fossil fuels, the global economy in its entirety would need approximately 66 billion 'energy slaves' to sustain itself
Garden Earth - Beyond sustainability: 250 billion energy slaves
gardenearth.blogspot.com/2011/03/250-billion-energy-slaves.html
Losing our Energy Slaves

https://damnthematrix.wordpress.com/2015/03/12/losing-our-energy-slaves/

The coming financial collapse is unavoidable. It is caused, in great part, by a lack of jobs and wages. FED GOV spends ~34% of the GDP (Armstrong)
If / when the sovereign bond market collapses, there will be a complete reset of public spending. The productive capacity is there. The energy supply is there. The potential wages and profits are NOT there. The tax base is NOT there. Will man be forced to continue to compete with his slaves to survive? That won't work. He can't compete with AI either.

What about the birth rate? Japan hasn't yet found a solution to the problem. Will contraception be outlawed? These are not future problems. They are here now and, getting worse.

[wayne.ct]

When the rulers rule rightly the overall economy is healthy

But when they do as they are doing recently things will go downhill. Some people will follow blindly and even put up with a lot of grief in the process but this is mental abuse and insanity. We seem to be reaching the point where people are ready to rebel against the current abusive regime. Every recession seems to accompany excess industrial capacity. But, which comes first and which is the consequence? In my view, falling demand will cause product to stockpile which will cause layoffs which will cause hardship, unemployment and reduced production. That will reduce demand causing a downward spiral. What will break the cycle? My answer? Reduce the confiscatory taxes and regulations. How can that happen? Only when the corruption at the top is remedied. That could happen at any time. It only takes someone with police authority to arrest the criminal element in the structure. Do they have the spine or are they all weak, compromised and/or corrupt? How does AI fit into this picture? AI is a tool to increase productivity. It is not an independent "solution" or a means that really solves anything important. Maybe some people think we will become the slaves of the machine, but this is science fiction, in my view. Movies have scared people into believing the singularity is just around the corner and have become deluded regarding what machines can do. Machines and robots can grow lettuce but if there were no market for the produce and no way to deliver it, the machines are irrelevant or misdirected capital expense. The "central planners" can be right or wrong and if they are wrong then the economy is put at risk. Do we know where the significant imbalances are? One would be the bubble in the capital markets, stocks and bonds. I am not too worried about robots as such. I am more concerned about the mountains of money being invested in robots where the money invested will never be repaid with interest. The promise of riches coming from that industry is suspicious, in my view, because 99 percent of the investors in that industry don't really understand the risks.

Just to be clear, I consider so called big government and deficit spending to be a sub category of corruption in general. Perhaps that goes without saying. Do you honestly think that AI and automation will be the trigger that blows the economy?