Economic pressures

[Danny B]

More predictions

There is a lot going on and, Powell is at the center of it.
Alan Greenspan, " I never said that the FED is independent"
Well, the politicians just couldn't help themselves. They frequently ordered the FED to take domestic actions that would look good in the runup to an election. Paul Volker claimed that he was shocked by this. Over the years. this action pumped up the markets by quite a bit.

"As the financial crisis reached a fevered pitch in 2008, the Federal Reserve took to flooding the financial market with dollars by buying up bonds. Simultaneously, interest rates fell dramatically, as bond yields move in the opposite direction of bond prices. Barnier sees the Fed as responsible for over 93% of the market from the start of QE until today. "

https://finance.yahoo.com/news/the-fed-caused-93--of-the-entire-stock-market-s-move-since-2008--analysis-194426366.html

https://news.wealth365.com/death-of-the-great-recovery-part-1-stocks-in-bondage-and-bonds-in-the-stockade/

The guy does have a good track record of predictions.

The CBs are buying gold. Must be a good idea.

https://www.rt.com/business/442410-gold-demand-up-dollar/

Student loans are the highest debt after mortgages,,, and they are blowing.

https://www.zerohedge.com/news/2018-10-17/delinquency-crisis-levels-student-loan-bubble-about-pop

https://www.zerohedge.com/news/2018-10-26/10-numbers-prove-we-are-rapidly-becoming-nation-government-dependents

Globalization and rural America.

https://www.zerohedge.com/news/2018-10-26/globalization-has-hollowed-out-rural-america

This vid starts out slow but, has very interesting info about our bankruptcy.

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

[Danny B]

Panic in Germany

3 articles on Germany.

https://www.armstrongeconomics.com/international-news/politics/hesse-german-election-merkels-cdu-loses-significantly/

https://www.armstrongeconomics.com/international-news/europes-current-economy/europe-risk-of-revolution/

"What our model is showing is the craziest period in American politics begins here in 2018. We have NOTHING but Directional Changes and Panic Cycles in politics from here into 2021."
"https://www.armstrongeconomics.com/markets-by-sector/foreign-exchange/euro/merkel-to-step-down-as-leader-of-cdu/

"This is incredibly important because undermining the Euro is what our computer is warning about and that can drive the dollar to all-time record highs breaking the back of the entire world monetary system. Curiously enough, December has been shaping up as a major turning point on the Arrays. We may have just got the explanation why."

Investors were buying German Bunds (bonds) in the belief that; after a collapse, they would get Deutsche Marks. The German Political system is blowing up and, this will cause capital flight. Merkel will still try to hang on to power. this will cause more instability.
Powell will continue to raise rates. This will attract more capital. China is trying to block capital flight. At the same time that China is trying to internationalize the Yuan.
Net capital outflow from Russia reaches $21 billion in four months
China's Capital Outflows to Widen to US$37B in Q2 2018 |

[Danny B]

Stocks and Powell


"buy the dip" only works when the money spigot at the FED is turned on.

European banks hold $ trillions in sovereign debt. It will never be paid back. This is a process, not an event.
"Jun 27, 2018 - Shares in Europe's largest banks have shed almost a fifth of their value"
"Bank Stocks Fall As Dollar Proves More Almighty Than God In Turkey"
"Bank Stocks Are On Their Longest Losing Streak Ever - Bloomberg june 26, 2018"
"Europe's banking problems are the elephant in the room | Financial ..."

Since all the banks are connected, the contagion will spread everywhere.

https://www.youtube.com/watch?v=pJ0FqrzrDAs

"Feb 14, 2018 - For European banks, it's a headache that just won't go away: the 944 billion euros ($1.17 trillion) of non-performing loans"

The Fed caused 93% of the entire stock market's move since 2008: Analysis
The FED giveth and, the FED taketh away.
Evidently, the head of Gallup has been a bad boy.

https://kingworldnews.com/gallup-ceo-may-suddenly-disappear-telling-truth-unemployment-numbers/

So, Powell will destroy the economy. This will gave Trump a reason to get rid of the FED.

https://www.zerohedge.com/news/2018-10-29/trump-right-fed-big-problem

Since almost all wealth is debt-money, everything is held up by confidence. Confidence seems to be slipping away.

https://www.oftwominds.com/blogoct18/market-meaning10-18.html

[Danny B]

Energy crash

Nothing earthshaking today.
Th Value Line Geometric Composite is a good indicator of stock market health. It currently shows how mega-tons of free money can drive everything up.
Dana Lyons' Tumblr — The Mother Of All Support Levels?

"in sum, without low-interest Federal Reserve policies the fracking boom might never have been possible. For the world as a whole, a steady decline in energy resource quality has been hidden by massive borrowing. Indeed, since the GFC, overall global debt has grown at over twice the rate of GDP growth. "
"Given the speed at which sweet spots were becoming crowded with wells, it appeared to us that the time window during which shale gas and tight oil could provide such high rates of fuel production would be relatively brief, and that an overall decline in US oil and gas production would likely resume with a vengeance in the decade starting in 2020. These conclusions flew in the face of official forecasts showing high rates of production through 2050. However, our confidence in our methodology was bolstered as individual shale gas and tight oil producing regions began, one by one, to tip over into decline."

https://www.resilience.org/stories/2018-10-29/our-bonus-decade/

There was nothing unexpected about it.

This isn't going to end well.

The algos should be good for a lot of entertainment in the future.

Capital flight and market forces.

Kunstler is in fine form.
The Monster Mash - Kunstler

Jim Willie, "the imminent Second Plaza Accord to bring down the USDollar in coordinated manner (last gasp to avoid broad meltdown), the global USTreasury. the upcoming USTreasury debt restructure, and the climax harbinger signal of USGovt debt servicing costs currently exceeding the entire USGovt tax income (as in the big OOPS) for highly reliable debt failure signal"
First comes default, then comes restructuring.

"The fascist state has commandeered the monetary function and the financial sector. It has also turned the military function into a predatory machine. Despite their grip, Gold acts as the perfect antidote, administered from the Eastern hands. In fact, Gold will restore order and honesty within the global financial system. Many examples are given for the United States in its decayed state, being a champion of fascism in a grand obscenity of a sprawling fascist state.
The list of examples is only partial. The Axis of Fascism can be depicted as the United States, the United Kingdom, and Israel. The TPX triumvirate is in charge of the Global Financial RESET process. Herein we have Trump Putin and Xi to assure that the Gold Standard is installed without global war. The Gold Standard will be rolled out in a long organized tactical efficient schedule. The process has begun, and is not stoppable."
GOLDEN JACKASS.COM - The Golden Jackass Knows Gold, Currencies & Bonds"

[Danny B]

Fracking bust and the debt mountain

This is a repost of a previous article / link showing that almost every bit of the fracking business was created and financed by hot money in the junk-bond market.

https://www.resilience.org/stories/2018-10-29/our-bonus-decade/

You get the idea. Investors are fleeing the fracking industry. Meanwhile, Pox Americana is trying to force Iranian oil off the market.
"Some predicted that $100 per barrel oil by the end of the year was imminent, while Tehran maintained a defiant tone, stating that neither Saudi Arabia nor OPEC would be able to pump enough oil to compensate for the loss of Iranian barrels, estimated between 500,000 bpd and 1 million bpd."

https://www.zerohedge.com/news/2018-10-31/irans-worst-nightmare-coming-true

Iran has a work-around for it's oil.

https://sputniknews.com/middleeast/201810271069260836-iran-usa-sanctions-oil-trade-energy-exchange/

https://energyfactor.exxonmobil.com/gasoline-taxes-and-the-price-at-the-pump/

People complain about the oil companies doing price gouging. A barrel of oil is sold as much as 47 times by speculators before it is consumed.

China is headed down rapidly,

https://gainspainscapital.com/wp-content/uploads/2018/10/GPC1030182.png

America is headed down slowly,

https://gainspainscapital.com/wp-content/uploads/2018/10/GPC10301811.png

https://gainspainscapital.com/2018/10/30/9970/

https://www.zerohedge.com/news/2018-10-30/rickards-chinas-debt-bomb-ready-explode

https://sputniknews.com/europe/201810311069397808-campaigner-eurozone-uncontrolled-collapse/

People will run to gold when it is too late.

https://www.rt.com/business/357890-deutsche-bank-gold-germany/

Jacob Rothschild says the Trump is making big changes.

https://www.rt.com/business/435490-rothschild-new-world-order-stability/

http://www.mauldineconomics.com/frontlinethoughts/debt-alarm-ringing

6 good charts, https://www.bondvigilantes.com/blog/...ght-halloween/

[Danny B]

https://stephenlendman.org/2018/10/eroding-freedoms-in-america/

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

https://www.armstrongeconomics.com/armstrongeconomics101/economics/how-politicians-are-creating-the-worst-economic-crash-in-history/

So, we have an ongoing lockdown from the police state enabled by advanced technology. We have ever-eroding freedoms. The State has ever-increasing debt. The machinery of State is operated by people who know nothing about operating machinery. Most of the employees are people who couldn't make it in the private sector. They all borrow endless sums of money to keep their jobs and pensions funded.
No wonder the birth rate is falling. The State plans to survive no matter how many people it has to crush.

[Danny B]

Plaza Accord, Jim Willie, Yuan, strong dollar

I write because I have some talent for making sense of the mountain range of economic BS that is presented as TRUTH to a public that can't take the time to wade through and learn for themselves. This article is under "Best of the Web" at Dollar Collapse.

"That is the purpose of this article. It can be bewildering when a casual observer tries to follow global events, something made more difficult by editorial policies at news outlets, and the commentary from most analysts, who are, frankly, ill-informed. Accordingly, this article addresses the topic that dominates our future. "

This BIG PICTURE article ignores international capital flows, global mean wages, demographic crash, $247 trillion in debt overhang, the crash of shale oil, pole shift, the financial suicide of China, Eurozone meltdown, the pension crisis,,, and several other small problems.
I'll keep writing. I'm not the only one. Here is an excellent article to be read in it's entirety.

https://www.zerohedge.com/news/2018-10-31/exposing-feds-mandate-pick-your-pocket-real-price-inflation

https://www.dollarcollapse.com/new-york-city-imminent-bankruptcy/

https://www.japantimes.co.jp/opinion/2018/09/11/commentary/japan-commentary/u-s-china-plaza-accord/#.W9vATY9xiR8

The rising dollar is going to wipe out just about everything else. I doubt that any kind of "plaza accord" can change this.

the insanely broad major central bank financial market support (extended to stocks, corporate bonds, and crude oil), like the Emerging Market debt bust, with over $9 trillion on the line. But the focus here is on the Big US Bank Stock Index (BKX) breakdown, confirmed by the comedown in the crude oil price. The entire Wall Street banks are highly vulnerable to the oil price due to shale sector exposure. It signals the death of one or two major US banks. It signals the acceleration of the Systemic Lehman Event. The historical event will feature a global financial crisis an order of magnitude larger in scope than in 2008. It will feature sovereign bond defaults and entire national banking system collapses. THE GLOBAL POSTER BOY SUBPRIME BOND IS THE USTREASURY BOND. The safe haven this time around will not be bonds, but rather Gold.

Bank Index Signals Bank Failures

Armstrong has a special report on the coming bond contagion.
https://www.armstrongeconomics.com/a...is-now-online/

https://www.zerohedge.com/news/2018-10-31/rickards-be-prepared-cheaper-dollar

Most of the article in BS from people who think that the State controls the exchange rates.

[Danny B]

Peace

https://www.rt.com/usa/442697-mattis-space-offensive-weapons/

Dartmouth Prof.: "If We Don't Abolish Capitalism, Capitalism Will Abolish Us"
"We must recognize that the climate crisis and the resurgence of the far right are two of the most acute symptoms of our failure to abolish capitalism," "campus Reform contacted Bray, asking him what his preferred alternative to capitalism would be among other questions, but the professor did not comment in time for press."

https://www.zerohedge.com/news/2018-11-01/dartmouth-prof-if-we-dont-abolish-capitalism-capitalism-will-abolish-us

https://www.alhambrapartners.com/2018/10/30/europe-more-than-europe-from-boom-to-the-precipice-of-recession/

I do not know where people get stupid ideas like this. The upper loop of the economy IS moved by the Central Banks. The CB bailed out the private banks. The private banks bought State debt. The CBs rescued the banks and the bond market. They did NOT bail out the productive loop of the economy. The private banks bought public debt BUT, as things turn bad, ONLY Super Mario Draghi is buying State debt from weak States.

So, what happens when you just bail out the upper loop?
Remember that Germany has a 1 trillion Euro account surplus.

https://www.rt.com/news/442901-germany-people-risk-poverty/

DO NOT WORRY, the military-industrial complex is hard at work.

https://www.rt.com/news/442801-germany-military-equipment-not-operational/

https://www.rt.com/news/413483-germany-submarines-out-of-service/

https://markets.businessinsider.com/news/bonds/the-final-nail-in-the-coffin-may-be-coming-for-the-federal-reserves-freedom-1001554790

Ah yes, the global mean wage.

https://www.truthdig.com/articles/trumps-war-on-the-fed/

How could that be? The tariffs were supposed to do the opposite?

In a word, socialism.

They are closely connected to the free-money spigot.
"Some 44% of people said their expenses exceeded their income in the past year and they used credit to make ends meet. Another 42% said they have no retirement savings at all. "

https://www.marketwatch.com/story/only-3-in-10-americans-are-considered-financially-healthy-2018-11-01

[Danny B]

Powell and, collateral damage

I wouldn't have to write as much if I could find writers who write just what I what to say. I found a great article that explains what the FED is doing and, might do. Keep in mind that we have an economy for the bankers and by the bankers. The upper loop is all jacked up on monetary Viagra/cocaine. They want to keep it going.

https://northmantrader.com/2018/11/04/the-fed-crying-has-begun/

$8 TRILLION. Poof. Gone. The largest drop since 2008.
Remember this number represents DEFLATION of nominal wealth.

"The paragraph above captures everything that has happened, is happening, and will happen during this Fourth Turning. It was written over two decades ago, but no one can deny its accuracy regarding our present situation. The spark was a financial crash. The response to the financial crash by the financial and governmental entities, along with their Deep State co-conspirators who created the financial collapse due to their greed and malfeasance, led to the incomprehensible election of Donald Trump, as the deplorables in flyover country evoked revenge upon the corrupt establishment."
"The chain reaction of unyielding responses by the left and the right accelerates at a breakneck pace, with absolutely no possibility of compromise. A new emergency or winner take all battle seems to be occurring on a weekly basis, with the mid-term elections as the likely trigger for the next phase of this Fourth Turning."

"If Democrats take control of the House, their agenda will be to impeach Trump, pass legislation designed to make Trump look bad, block everything Trump tries to do, and position themselves to win back the presidency in 2020. The frustration of gridlock will lead to Trump utilizing Executive Orders as his means to accomplish his agenda. Not being able to accomplish his domestic goals will lead a bored Trump into foreign escapades, which could potentially lead to unanticipated military conflict. All previous Fourth Turnings have ended in all out war, with death on a grand scale."

https://www.theburningplatform.com/2018/11/04/the-fourth-turning-war-of-the-worlds/

Hedge Funds don't actually produce anything. They just shuffle money around trying to profit by anticipating and/or causing price inflation in some sector that they grab hold of. There is not much chance of causing inflation in a falling economy with a falling population. They live and die on free FED money. The FED has already shrunk the money supply by $ 312 billion. The fallout wiped out $8 trillion and, counting. Volatility is ripping up the funds.

https://www.dollarcollapse.com/hedge-fund-managers-cant-understand-markets/

Shape of things to come;


The FED jacked it up and now, the FED is jacking it down.


Companies did buybacks to make their earnings look better. Now, they have over $6 trillion in debt that they have to finance,,,,, at rising interest rates.

Italy is going to blow up the whole show.

Armstrong suggests that things will turn violent after the Dems lose the upcoming election.

[Danny B]

https://www.zerohedge.com/news/2018-11-03/gold-yuan-why-chinas-monetary-policy-must-change

China clearly sees the writing on the wall,,,, soon.

https://www.zerohedge.com/news/2018-11-01/chinas-senior-leadership-prepares-economic-collision-spring-2019

https://www.rt.com/business/443062-zombie-firms-impacting-employment/#

They're just trying to keep employment up.

China has an export-driven economy that is crashing because their customers ran out of money. What about Germany,,, another export driven economy.
The greatest risk to Germany is the collapse of the Euro means that the single currency relieved their manufacturers of having to manage currency risk. Suddenly, the currency risk returns, the export model fails, and the lack of a domestic consumer market means that the economic conditions in Germany decline rapidly because of their dependence upon everyone else doing well."

https://www.armstrongeconomics.com/markets-by-sector/foreign-exchange/euro/the-fate-of-germany-v-euro-the-export-economic-model-risks/

Here is a good article on Goldman Sachs finally getting dragged into court.

https://www.armstrongeconomics.com/world-news/corruption/goldman-sachs-criminal-charges-at-last/

https://www.peakprosperity.com/blog/114497/will-your-retirement-efforts-achieve-escape-velocity

[Danny B]

CBs as an instrument of war,,, regulatory capture

Hundreds of years ago, a king would have to borrow money from private bankers if he wanted to go to war. No longer.
"Central banks were first established in the 17th century, with the primary purpose of providing war finance to governments" G-30 report. Repost

http://group30.org/images/uploads/publications/G30_FundamentalsCentralBanking.pdf

With a Central Bank, the State could just sell war bonds and, the taxpayer was forced to pay for the war. The war was never for his benefit but, the State and bankers didn't care.

"The Bank War was the name given to the campaign begun by President Andrew Jackson in 1833 to destroy the Second Bank of the United States, after his reelection convinced him that his opposition to the bank had won national support. The Second Bank had been established in 1816, as a successor to the First Bank of the United States, whose charter had been permitted to expire in 1811."
Curiously, the London bankers got a war started here in 1812.He had a lot of people against him.

https://www.history.com/topics/19th-century/bank-war

Big surprise.

"Starting in 1833, Jackson removed all federal funds from the Bank. When its charter expired in 1836, the Second Bank ended its operations as a national institution."

https://www.history.com/topics/us-government/bank-of-the-united-states

So, without all that federal money, it couldn't survive.Unlike CALPERS.

https://www.thenation.com/article/what-if-people-owned-the-banks-instead-of-wall-street/

https://www.forbes.com/sites/stevedenning/2011/11/22/5086/#183a2010f92f

[Danny B]

amount of new paper money was controlled.He escaped the banker control of the issuance of paper money

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

Armstrong said that it will collapse before then.
Economic Brake Lights | Mauldin Economics


Share buy-backs greatly boosted reported earnings,, per share.

[Danny B]

Stock market,,, FED poison,,, war waste

That was quite some election,,, Huh!
"Capital must protect itself in every possible way, both by combination and legislation. Debts must be collected, mortgages foreclosed as rapidly as possible. When, through process of law, the common people lose their homes, they will become more docile and more easily governed through the strong arm of the government applied by a central power of wealth under leading financiers. These truths are well known among our principal men, who are now engaged in forming an imperialism to govern the world. By dividing the voters through the political party system, we can get them to expend their energies in fighting for questions of no importance. It is thus, by discrete action, we can secure for ourselves that which has been so well planned and so successfully accomplished." -- Montagu Norman, Governor of The Bank Of England, addressing the United States Bankers' Association, New York, 1924."

Not surprisingly, the State lies about price inflation. They keep moving the goalposts to show price inflation to be lower than the true picture. Here is a graph from Shadowstats showing true inflation.

http://www.shadowstats.com/imgs/charts/alt-cpi-home2.gif?hl=ad&t=1539264635

Alternate Inflation Charts

https://northmantrader.com/2018/11/06/mind-blowing/

I suspect that the graphs are structured to reflect the State version of inflation, NOT the true version.

1971, "everybody had US Dollars, and so the US Dollar was just selected as the international currency. This has been to great benefit of the United States. Every time we create a new dollar and cause inflation, it doesn'tt just dilute the dollars within the United States since more than half of the dollars reside outside the United States. So, when we cause inflation of the currency supply that's outside the United States, it steals purchasing power from other countries and transfers that purchasing power to the United States."

"One of things that I discovered when I was updating my book was the relatively recent financialization of government. I was looking at a chart of the tax revenues for the Federal Government. I went "Oh my God, this looks like a chart of the stock market." I overlaid tax revenues with the Wilshire 5000 total market cap index and loo and behold, they had no correlation before the year 2000, but since the year 2000, when the stock market goes down, so do tax revenues. When the stock market goes up, so do tax revenues. So, the government now is highly dependent on the stock markets doing well. In the stock market crash in 2000, tax revenues fell 18%. In the global financial crisis of 2008, tax revenues fell 28%."

https://www.peakprosperity.com/podcast/114508/mike-maloney-hell-crisis

[Danny B]

https://dailyreckoning.com/the-united-states-is-going-broke/

https://dailyreckoning.com/the-united-states-is-going-broke/

Don't hold your breath waiting for this to happen.

Good article from David Stockman;
"The 30-year monetary party is over, and the money printers which fueled that global bond bubble of the present era are about to become the bond-dumpers of tomorrow."
"To wit, it is absolutely guaranteed that during the next two years there will be a non-functioning government and that Washington's abject fiscal incontinence will reach the point of downright embarrassment---even down there in the Imperial City."
Keep in mind that the House must originate all spending bills. Sounds like gridlock to me.
"It's as if arsonists were running around a burning building with a can of kerosene screaming that there is a fuel glut. But now for reasons of institutional survival, as we develop below, they have jettisoned the kerosene and manned the water hoses.

Needless to say, you don't remove $21 trillion of supply from the global bond markets without leaving big-time dislocations and distortions in this massively hollowed out financial space-"
"uring the same 15-year period in which central bank balance sheets soared by $21 trillion,"
"It wasn't real, and the next stop on the bubble express is something like the 2007-2009 meltdown shown in the graph above when the global equity market cap plunged by nearly 60% from $60 trillion to $25 trillion.

The equivalent plunge this time would amount to $50 trillion, but a reprise of the V-shaped rebound which occurred after 2009 is now out of the question because the central banks have already shot their wad. The various forms and phases of QT----which were essentially a $21 trillion monetary fraud---- were the work of a one-trick pony.

In fact, the reason the central banks are suddenly pivoting to QT under the leadership of the Fed is to hastily replenish their dry powder. But it's too late. They will destroy the equity bubble long before they get back to "normal" interest rates and balance sheets---even as they fear that after the next crash they will be impotent to reverse the carnage and that the pony will then be taken out back and shot."

"2004) "the $30 trillion of stock market capitalization at the time represented about 68% of global GDP, which was about $44 trillion.

By contrast, the $80 trillion global equity capitalization at the peak of a few months ago represented about 100% of current year worldwide GDP. So even though worldwide income back in 2004 was undoubtedly over-capitalized in the equity markets, it has now become egregiously so after the post-2008 print-a-thons.

Consequently, even if you give the benefit of the doubt to the implicit 2004 cap rate of 68%, global stock markets today would be worth about $55 trillion. You can characterize the $25 trillion excess at the recent bubble top,"
Contra Corner » The Demise Of Bubble Finance And The Folly Of Trump-O-Nomics, Part 2

Goldman Sachs explains gridlock;

https://www.zerohedge.com/news/2018-11-07/what-gridlock-means-us-economy-goldman-sachs-explains

The Ukraine is facing default next year. https://sputniknews.com/europe/20181...t-obligations/

Italy has told the EU and ECB to shove it. The globalist Macron has a plan.
"The comments came a day after French President Emmanuel Macron called for creating a "real European army" in order to protect the residents of EU countries. "

https://sputniknews.com/europe/201811071069582197-farage-eu-army-macron-security/

https://www.youtube.com/watch?v=hI5_pMvLZd8

Here are 2 articles about how German military equipment is junk.

https://www.rt.com/news/413483-germany-submarines-out-of-service/

https://www.rt.com/news/442801-germany-military-equipment-not-operational/

The solution;

https://sputniknews.com/europe/201811061069549592-germany-military-spending/

https://www.zerohedge.com/news/2018-11-05/pentagon-socialism-militarizing-economy-name-defense

[Danny B]

Job markets,,, debt bubbles

I've mentioned over and over that accepted economic theory makes almost no connection to human behavior. I've posted several examples showing that modern economic theory is completely wrong. Here are a couple of articles discussing these ideas.

https://www.theguardian.com/commentisfree/2016/sep/19/its-time-to-junk-the-flawed-economic-models-that-make-the-world-a-dangerous-place

So, all that currency inflation does not cause price inflation which lowers consumption.

More bad theory;

https://publicism.info/economics/fail/3.html

"Trickle-down theory also predicts a positive correlation between inequality and economic growth, the idea being that income disparities strengthen motivation to get ahead. Yet when researchers track the data within individual countries over time, they find a negative correlation."

https://www.nytimes.com/2007/04/12/business/12scene.html

https://www.zerohedge.com/news/2018-11-04/millennial-men-failing-find-jobs-amid-hottest-market-decades

Armstrong, "The Euro area (EA19) seasonally-adjusted unemployment rate came in at 8.1% in September 2018, which was down slightly from the year/year perspective of about 8.9%. This above all proves that the entire theory of the Quantity of Money is bogus. It also demonstrates that the Austerity Policy of Europe has caused unbelievable social damage resulting in what is being called the Lost Generation with unemployment among the youth reach 60% in Southern Europe."

"Without a COMPLETE rejection of Austerity and a COMPLETE overhaul of the European Union structure, there is absolutely NO HOPE what so ever of Europe coming out of the death spiral. This will only get worse as politicians, with ZERO experience in trading markets, will debate and refuse to accept responsibility for their actions. Then you opened the doors to refugees when unemployment is at a serious high? And you wonder why there will be civil unrest and backlash against migrants?"

https://www.armstrongeconomics.com/international-news/europes-current-economy/europe-unemployment-at-8-1-the-economic-death-spiral-of-the-eu/

5 years ago, Armstrong warned Germany about a looming pension crisis. This has finally come out in the open.

https://www.armstrongeconomics.com/world-news/pension-crisis/bundesbank-warns-of-coming-pension-crisis/

"In the United States, housing prices are now 8% higher than they were at the peak of the property bubble in 2006, according to the property website Zillow. The price-to-earnings (CAPE) ratio, which measures whether stock-market prices are within a reasonable range, is now higher than it was both in 2008 and at the start of the Great Depression in 1929."

https://www.project-syndicate.org/commentary/economic-crisis-military-conflict-or-structural-reform-by-qian-liu-2018-11

The FED pumped out $27 trillion. Worldwide, the CBs pumped out $237 trillion. This was all done to rescue bankers and the welfare-warfare State. The monetary inflation created price inflation that priced many people out of markets. The debt creation created and interest burden that is in the process of dragging down everything.

The value of an object is directly related to what somebody else will pay you for this object. What happens if there is a big hiccup in a market that is over-supplied?

https://www.bloomberg.com/news/articles/2018-11-08/a-fifth-of-china-s-homes-are-empty-that-s-50-million-apartments

The creation of global warming to usher in the NWO.

https://www.armstrongeconomics.com/world-news/climate/global-warming-agenda-to-create-authoritarian-government/

Venezuela made the mistake of keeping their gold in England.

https://sputniknews.com/world/201811071069596712-uk-refuses-return-of-venezuelan-gold/

The CBs did unlimited bond printing to save the banks with little regard for the downside.
Since the State is a parasite, it has a perpetual fear of losing outside support. The police-state crackdown is just there to ensure continued financial support. BUT, monetary inflation = price inflation,,, + low-wage competition = falling consumption resulting in falling wealth creation. The State can't very well steal what isn't there,,,, isn't produced.
Trump reduced taxes to try to stimulate the economy. There is no escaping the global mean wage so, a tax reduction won't be a permanent fix.


What other choice do they have?
Italy is on track to blow up the EU. They have been advised that the first-leavers will do the best.

https://moneymaven.io/mishtalk/economics/how-italy-leaves-the-eurozone-step-by-step-lokSSCpqHU-fiOtcTfWJRg/