Economic pressures

[Danny B]

Speed bumbs on the downslope

Here is an article listing 2 E-trade commercials that aired just before 2 crashes. The gist of the commercials; throw your money at us and, everything will be good.

https://realinvestmentadvice.com/f-i-r-e-ignited-by-the-bull-extinguished-by-the-bear/

Oil consumption is falling.

https://oilprice.com/Energy/Energy-General/Oil-Will-Go-Bust-If-Recession-Hits.html

Pox Americana can't seem to stop the Nordstream gas pipeline so, they are going to plan "B"
Europe Bans Natural Gas in New Homes

"The Fed meets on July 31 to make an interest rate policy decision. What should the Fed do?
Jim Bianco at Bianco Research says Only a Half-Point Rate Cut From the Fed Will Do.
"Anything less would fail to fix the imbalances in the global bond market"
Ah yes, the global bond market.

https://moneymaven.io/mishtalk/economics/fed-s-asymmetric-bubble-blowing-policy-in-pictures-5Pes3wm4a0m-TZ1kVp0-eg/

Armstrong, The Middle East has been in turmoil and Trump has stood his ground against the neo-cons.


Yep, desperation time. The meltdown of Deutsche bank will ensure that everything melts down.

The pension funds put hedge fund managers in charge of pension money. The hedge fund managers gambled away all the funds because, that's what hedge fund managers do.

"$hit out a bunch of bankers" sounds like a good idea.

Ignore all that BS. It's only the stock market that matters.


The States would like to free themselves from the limitations of the private investors. CAN they print debt-free money and survive. A very big question. Japan seems to indicate that it is possible. Apparently, the ECB will be the next to try.

NO!, he wouldn't do that.

Now, we'll investigate Ukrainegate.

But, but, they're working for a good cause. They should volunteer.


Chicago is on the shores of lake Michigan. There was a study done many years ago about the enormous pool of 34 degree water in the lake. They could pipe mega tons of cold water out of the lake and, use it to run chillers and cool the entire city. The water would be piped through existing coal-delivery tunnels. They could air condition the entire city for just the cost of circulating the water. NOPE, that would cut into energy usage.

[Danny B]

https://www.globalresearch.ca/pitfalls-of-economic-globalization/5458460

CIA wants less transparency

https://www.youtube.com/watch?v=Y9IQWtBWQds&t=237s

Veteran Reporter Seymour Hersh On Trump-Russia 'Collusion' - 'It Was a Brennan Operation' (CIA)
Elizabeth Warren says that a crash is coming and that; only she has the answer.

https://www.zerohedge.com/news/2019-07-23/elizabeth-warren-warns-economic-crash-coming-and-only-she-has-fix

Boris Johnson Wins Britain Right on Target
Posted Jul 24, 2019 by Martin Armstrong


It seems like hacking is here to STAY.


The mainland Chinese Triads (mafia) are beating up those protesting for democracy.

Nuke power is a total economic bust. Britain plans to go ahead anyway and REALLY screw the ratepayer.

https://www.montelnews.com/en/story/uk-considers-charging-consumers-for-funding-nuclear/1028647

Ah, somebody looked into the crash of fracking.
Good article on free riders.

https://dailyreckoning.com/free-riding-investors-set-up-markets-for-a-major-collapse-2/

In the 2007-8 crash, the only liquidity available was the cash coming in from the drug cartels. J.P. Morgan is now pushing drugs. The system just doesn't have adequate liquidity to cover defaults and failing derivatives.

Right,,, look at equities DO NOT LOOK AT BONDS !

They're looking pretty crushed as it is. There is another 10,000 layoffs coming.

The CBs are screaming that monetary policy just isn't working any more. They demand that GOV institute fiscal policy like austerity. It's been well proven in places like Greece that austerity doesn't work either.


The yield curve is inverted because investors have more faith in the long term than they have in the short term. No shock & awe is going to buy confidence.
Remember confidence.

[Danny B]

Big tech hits Kryptonite,, Socialism is the cure

In previous ages, socialism was the firewall between, Darwinian pressures AND, the non-producers. GOV handouts to the unemployable in exchange for votes. If you couldn't / didn't work, you would just vote for somebody who promised freebies. Times have changed and, automation is wiping out huge niches of jobs. Evidently, the PTB have voted for socialism as the least-worst solution for general unemployment caused by automation. Naturally, the financial sector is very much against free money. I talked to an acquaintance who is a jewish banker. He said that it was great that B of A had increased their dividends. I told him that they had cut their workforce by more than 20%. He replied, "That's great, get rid of the fat."
He never considered that all those laid off employees would no longer be spending money.

The banks borrow short (interest on deposits) and, loan long. (30 year house loans). This creates a situation where they are always liquidity constrained. The FED was created to cover any temporary shortages with overnight loans for good collateral. Times have changed and regulatory capture means that the banks get free money. They no longer have to pay interest to attract savings. They earn an even greater margin loaning free money than they do loaning interest-bearing deposit money.
The banking industry is just too crowded and, they got over-extended. TARP gave American banks several hundred $billion. European banks were also over-extended. The FED gave Deutsche bank $ 354 billion.

https://www.youtube.com/watch?v=cHgqL5KTBQc&t=109s

The black hole of derivatives is sucking everything down. The banks are considered so systemically important that GOV will give them anything to keep them from collapsing.
Trump just signed an enormous budget because FED money is the only thing keeping the system afloat.
At the same time, there are forces that consider socialism to be the ONLY solution for automation. Apparently, they are pushing to crash the system to get us all to beg for socialism.
It's Obvious Who Will Replace Trump After The Controlled Demolition Of The Economy
" Once populist groups were entrenched and feeling overconfident, the cabal would then tighten liquidity into existing economic weakness and crash the system on their heads. Populists would get the blame for an economic disaster that the central banks had engineered many years in advance.

Once enough suffering had been dealt to the populace, globalists and extreme leftists would arrive on the scene to offer anti-populism as a solution; meaning the centralization and socialization of everything on a scale never before witnessed except perhaps in the darkest days of the Bolshevik Revolution."
Keep in mind that the writer is talking about jewish controlled Central Banks.
Aaron Liebermann: the father of Jewish socialism - Jstor
https://www.jstor.org/stable/29780126

The Cloward-Piven strategy out of the Chicago School is a strategy designed to collapse GOV with crushing social demands. After GOV is crushed, a marvellous socialist phoenix will rise up out of the ashes.
INSTITUTE FOR HISTORICAL REVIEW
The Jewish Role in the Bolshevik Revolution and Russia's Early Soviet Regime Assessing the Grim Legacy of Soviet Communism

There are credible claims that the left is trying to crash GOV right now.

https://www.youtube.com/watch?v=MvHer5ySzIY&t=49s

Socialism is incompatible with human nature. The corporatocracy seems unconcerned with mass starvation. China and Germany did VERY well with globalism,,,, until their customers were impoverished and quit buying. The same is true of the corporatocracy. They have starved us down to where we no longer have children. NOW, they can only survive with State-created liquidity keeping them afloat. 12% of companies worldwide are zombies. To the corporatocracy, it probably sounded like a great idea to wipe out living wages. OBVIOUSLY, they didn't consider the long-range effects OR, they are trying to promote mass depopulation.

As Billions Pumped Into Restructuring, Deutsche Bank Suffers Biggest Quarterly Loss Since 2015
Yes, the black hole.

The Bay area techies believed that they could attack Trump with COMPLETE immunity.
Big Tech 'monopolies' targeted in sweeping new antitrust probe by US Justice Department
Facebook agrees to pay record $5 Billion fine over privacy violations, critics call it 'parking ticket'


Good article on population growth,,, It's slowing a lot.

https://econimica.blogspot.com/2019/07/how-this-plays-out-deceleration_39.html

Seems that everybody wants to overthrow the government.

https://www.armstrongeconomics.com/world-news/climate/climate-change-is-about-overthrowing-capitalism/

I'm sure that this will all work out in the END!

These are people chasing yield, NO MATTER how risky.

YES, but think of how much money they saved by paying $9 an hour to Indian programmers to write their software. Once again, I claim that a corporation has NO BRAIN.


The CBs are screaming that GOV must cut back instead of printing more money. The systemic collapse that was POSTPONED in 2008, is knocking on the door.

Hacks my be the undoing of everything.

Residential RE is where the upper loop and the lower loop meet. BUT, a household is a money losing proposition. The upper loop has pumped their free money into RE as a store of value. The actual household has been priced out by speculators.

https://moneymaven.io/mishtalk/economics/existing-homes-prices-up-88th-month-nar-can-t-figure-out-why-sales-are-down-r-6Kd7k5Q0aElsAuUI-GXw/

Russian econ minister.

https://www.zerohedge.com/news/2019-07-22/russia-prepare-economic-downturn-2021

[Danny B]

Bunch of headlines

Germany and China benefited from globalism but, eventually wiped out the earning power of their customers

Amazon is going to kill more American jobs than China did ...
https://www.marketwatch.com
Of Course Amazon Destroys More Jobs Than It Creates, That's The ...
https://www.forbes.com/.../of-course...creates-thats-..


This INCLUDES the money Trump & Pelosi are spending.
Hmmm, no doubt.

That giant sucking sound is Russia hoovering up capital that is looking for returns.

Convert their free money into assets,,, Why not?


Yes, unfortunately, we're going to see prices rise.

ALL the CBs are buying it as fast as they can rip it out of the ground.


I'm positive he planned it that way.

So, give us a list of the attackers.

The CIA is more guilty.

France comes to mind.

https://www.armstrongeconomics.com/international-news/france/is-france-moving-closer-to-revolution/

China is signing up EVERYBODY to it's Belt and Road initiative to get one huge Asian economic bloc. At the same time, they are damming rivers and stealing water from India and Pakistan. Not happy with pissing off 1.4 billion people who depend on the Ganges, Indus and Brahmaputra, they are now blocking water to the Mekong delta.

https://news.yahoo.com/missing-mekong-waters-rouse-suspicions-101053291.html

Just to make matters worse, we are going into solar cycle 25 that will last for about 5 years. It will be a time of "highly volatile weather and crop failures as we hit both extremes."

https://www.armstrongeconomics.com/world-news/climate/the-next-solar-cycle-begins-2020-may-be-a-panic-decline-in-solar-activity/

[Danny B]

Too much prior liquidity cured by even more liquidity

Bernanke claimed that the FED caused the great depression one by not pushing enough liquidity into markets. The guy is flat out stupid. GD one was caused by pushing liquidity into the markets before the collapse. The DOT COM and RE crash were caused by pushing liquidity into the markets to keep the finance sector making money no matter how big it got.
In recent years, the CBs have created a reported amount of new liquidity of $ 247 trillion. Regulatory capture means that the banks get pumped up no matter how much legitimate business they have. Deutsche bank is a good example. With a stock price of under $7:00, they have a derivatives book of $45 trillion.
Here is an excellent article with a very clear projection of what we can expect when this bubble comes to an end.

https://www.peakprosperity.com/overdosing-on-crazy-pills/

Keep in mind that regulatory changes have changed the bank--depositor relationship. Your deposit is now considered an investment in the bank, NOT a deposit. Like any other investor, you can lose your money. Generally, when a bubble pops, the investors lose 50---95%
The Bail-In: How You and Your Money Will Be Parted During the Next ...
https://sandiegofreepress.org/.../th...ill-be-parted-...
The FDIC is capitalized to about $2.4 billion BUT, it is covering deposits of about $70 trillion.

[Danny B]

The reign of the CB is coming to an end, everything else with it

Many decades ago, gold was the governor on how much "money" the CBs could create. With that gone, the "bond vigilantes" were the closest thing to a governor. The primary dealers are required to buy discounted new federal debt. They, in turn, sell it to investors. The yield curve in inverted because investors don't want short term paper. Since the State wants NO limitations on it's spending for welfare and warfare, it has used ZIRP to squeeze out the bond vigilantes. The FED credits the BOE or ECB or BOJ with a boatload of pixels with which to buy it's freshly issued debt.
The ECB is not in a position to do the same.

AOL, "Once President Trump signs the budget deal that was passed by the House on Thursday and is expected to be approved by the Senate in a few days, he will have added $4.1 trillion to the national debt, "
OK, so he is trying to pump up an inflated edifice that has major holes / leaks. Besides automation, there are other problems.

"Global debt is currently at $246.5 trillion and primarily in the Wealthier, Consumer Nations of the world.
The population of young in Consumer Nations has fallen 12% or over 100 million Since Peaking in 1975.
Debt on a per capita basis gauged against the consumer nations young is going parabolic."

"For nearly a half century wealthy nations young populations have been declining versus rising young among poor nations...offset by secularly declining interest rates and the addition of over $240 trillion in global debt to maintain unnaturally high rates of economic growth."
"Looking at the same chart but running through 2050, with UN population projections and debt estimated to continue growing at the same pace it has since 1950 (these #'s are inclusive of the impact of immigration and emigration). Continued declines among the wealthy young consumers, growth among poor young non-consumers, and debt running from the current $250 trillion up to $2.6 "

https://econimica.blogspot.com/2019/07/soaring-debt-vs-collapsing-populations.html

The only way to "have" $2.6 quadrillion is to Create it out of thin air.
OK, so there is $2.6 quadrillion in funny money sitting in some giant pixel factory somewhere. UBI could be used to convert this pixel mountain into consumption. This isn't likely because more and more people are seeing the absurdity of growth for growth's sake.

Armstrong makes it clear that stocks are going up because they are attracting fleeing capital. A great many people are only interested in protecting their capital,,, not so much earning interest. At what point do they change their minds?
"However, this was more than offset by negative revisions to US corporate profitability showing a sustained decline in US corporate profits, which have slumped to the lowest level in over 5 years even as the S&P has risen by 50% in the same period, indicating that all of the upside in the stock market was due to PE multiple expansion, "

https://www.zerohedge.com/news/2019-07-27/us-corporate-profit-margins-revised-financial-crisis-lows

The buybacks distorted the price--earnings ratio even as the indices rose to new heights. NO profitability.

House Approves $1.48 Trillion Pentagon Budget 'Unprecedented, Wasteful & Obscene'
Rather than creating some kind of regulated universal basic incomeCredit Bubble Bulletin : Weekly Commentary: Fanning the Flames

The East "stole" the jobs from the West. The West went broke and, is trying to paper over all the problems with fresh CB "money". When the West went broke, this drug down the East because they had lost their markets. Consumption in the West is marginally / temporarily supported by wet ink money. So, while there is lots of "money" , there is falling consumption. The production--- consumption is what normally finances the banks and State. Substituting funny money for money that represented consumption & production is a sure way to get locked into permanent funny money production.

The hordes of beggars, bankers and bureaucrats has just gown too large for the actual economy to support. QE may support all the non-producers, but, the direct taxes and, the inflation tax drive the producers out of business. The FED and the State are trying to hold back the looming huge wave if defaults by pumping in money. Remember that 12% of businesses worldwide are zombies. Instead of whack-a-mole, the State is playing support-a-mole.
Every little niche that looks like it might go bankrupt AND default, is sent some kind of rescue. This just isn't enough. Millions of individuals are defaulting. The banks write off as much as possible and, Uncle Sam pumps them up. The current game is; hold off the default cascade by pumping liquidity into anything that looks to be falling.

The FED, PPT and ESF can create boatloads of liquidity on the sly. The ECB can't do that so, nobody will touch it's paper.

https://www.alhambrapartners.com/2019/07/25/europe-promises-more-stimulus-seven-years-after-draghis-promise-for-stimulus/

Here is a good vid explaining what happens when there is even a little shrinkage of credit.

https://www.youtube.com/watch?v=bx_LWm6_6tA

Just don't tell anyone.

Desperation time.

The CBs are screaming that the State must abandon monetary policy and fix the situation with fiscal policy,,,,, more taxes and, less spending.

This isn't about financial responsibility. It is about avoiding revolution.
We form a State for mutual prosperity and mutual protection.



Give BOJO time to make trade deals outside of the EU structure and, he will be free to kick Macron in the teeth. Farage will have his boot on Macron's neck.


The various States have weighed in against BTC because it allows capital flight.

THAT is an old story. Most houses are bought by speculators. They are losing interest.

Like Trump did to China, he gives them an ultimatum that they can't agree to. England will do a LOT of traded deals. Scotland and Wales will be left behind. Ireland is going to be in deep trouble.
Kunstler is of the opinion that our political crisis will bring big financial problems.

https://kunstler.com/cluster****-nation/a-purview-of-dust/

That's the future all right.
AOC is in congress just because she answered a casting call from the Justice Democrats. They are very finely pulling her strings.

https://www.youtube.com/watch?v=1h5iv6sECGU&t=514s

[Danny B]

Benjamin Fulford

Fulford can always take your breath away.

https://benjaminfulford.net/

[Danny B]

https://mises.org/power-market/when-central-banks-become-market-players

Central Banks' Plunge into Stocks: A Flashing Warning Sign ...
Proof That Central Banks Are 'On The Bid' In Stocks - Forbes
Central Banks Boost Holdings of Equities Beyond $1 Trillion .
It's not just stocks.
Why the World's Central Banks Are Going Embracing Gold - TheStreet
Central Banks' Plunge into Stocks: A Flashing Warning Sign ...
There is a lack of understanding on this process.
Central Banks Have Gone Rogue, Putting Us All at Risk - Truthout

https://truthout.org/articles/central-banks-have-gone-rogue-putting-us-all-at-risk/

https://www.armstrongeconomics.com/markets-by-sector/stock-indicies/central-banks-buying-equities/

If you look at markets from the right angle, you can see that the CBs don't want to be stuck holding nothing but public debt. But, as stated in the articles, this amounts to nationalizing companies. Nationalizing a big part of the economy could be a big step towards global governance.

The State is facing horrendous pension liabilities. The CB doesn't want to get stuck monetizing bonds for bazillions of dollars for pensions. The unfunded public pensions in America reportedly total $213 trillion. (Kotlikoff)

"Preliminary data for 2018 show that assets in pension funds amounted to USD 27.6 trillion in the OECD area, close to 4% lower than in 2017, according to OECD's Pension Funds in Figures. Calculated in national currencies, pension fund assets declined in 12 out of 34 reporting OECD countries, including some of the largest pension markets: Japan (-1.1%), the Netherlands (-1.2%), Switzerland (-0.7%), the United Kingdom (-0.3%) and the United States (-5.0%)."
Global pension statistics - OECD
Keep in mind that private pensions are NOT in good shape either.
S&P 500's Biggest Pension Plans Face $382 Billion Funding Gap

Here is an excellent article on the pension fund apocalypse.

https://www.zerohedge.com/news/2019-07-27/pension-fund-apocalypse

Here is an excellent but, fairly dense article about the battle over the future world monetary system.

https://www.zerohedge.com/news/2019-07-27/bretton-woods-dead-what-next

Related,


And Beijing and Brussels....

[Danny B]

CBs buy up everything,,,, CAFR

The Central Banks are using their printing press to buy up equities and, diversify OUT of public debt. The FED was originally created to give overnight loans for good collateral to banks that had a short-term liquidity problem. NOTHING more. Time and again, they were hitched up to finance whatever war or social problem came along. The State always has so MANY needs. The private banks always have SO many needs. The reign of Central banks is coming to an end,,, at least in their original configuration. The federal government wants complete control over the printing press. What about the States and cities?
Walter Burien has a site that lists and exposes the finances of the 37,000 GOV bodies that tax the snot out of us and, stash it away.
" When Orange County lost a little over $1 billion in derivatives investments, they were crying "poverty" and threatening to shut down schools, police would have to be laid off etc. However someone dug into the Orange County CAFR and found out that the county had about $16 billion in profitable investments! The county, from their profitable liquid investment funds / cash position could have continued performing the same services, without collecting one dime in taxes, and could have done so for another 11.9 years from the existing funds"

"While he was a Mayor, Jesse Ventura's city council wanted to raise $360,000 in taxes to cover a short fall on their "city budget for schools." Ventura objected when he discovered the city owned $48,000,000 in idle investments funds from which the $360,000 could be drawn from without raising taxes!"

https://rense.com/general2/bigsecret.htm

Kotlikoff reports that FED GOV has $231 trillion in unfunded liabilities. What Burien pointed out is; GOV projects it'\s liabilities but, OMITS to project it's income.
GOV always points out it's liabilities to justify more taxes.

Fracking is a net loser to the tune of $280 billion. It's not alone. Ethanol is a net energy loser. It is supported by the junk bond market. It is in trouble too.

https://www.reuters.com/article/us-usa-ethanol/u-s-ethanol-industry-nearing-breaking-point-green-plains-ceo-idUSKCN1UO0FN

I have to stop now. Any time that I link to certain subjects, my computer takes a dump.

[Danny B]

pound / euro,,, saving the banks with unlimited liquidity

Had to restart.
Macron and other assorted idiots decided to play hardball with Great Britain. Bunch a panzies.
Boris Johnson Reportedly Says 'No' to Meeting EULeaders, Ramps Up No Deal Preparations

They're both going to hell,,, locked in a deadly embrace.



The whole nature of warfare has changed so much that it is impossible to protect everything.

U.S. Treasury plans to borrow $800 billion. NOBODY is going to loan that so, they will have to run the printing presses in stealth mode.

https://www.zerohedge.com/news/2019-07-29/us-treasury-now-expects-issue-over-800-billion-debt-two-quarters

California is slipping.
"First of all, the Garlock fault is the second largest fault line in the entire state of California, and it is a major threat to southern California.

Secondly, the Garlock fault runs directly into the San Andreas fault, and many believe that a major quake along one could potentially trigger a major quake along the other."

https://www.zerohedge.com/news/2019-07-29/over-80000-quakes-have-hit-california-july-4th-aftershocks-headed-toward-garlock

The FED will play games with the worldwide dollar shortage to prop up demand for the dollar.

It's for sure that something will kill it.
TARP was just $700 billion to save the banks. It was authorized by congress. What congress did NOT authorize was; $16 trillion for banks worldwide BEFORE the crash.

https://www.armstrongeconomics.com/world-news/corruption/did-the-fed-begin-secret-bailouts-in-2007-before-anyone-knew-of-the-pending-crisis/

[Danny B]

Pumping up markets to avoid starvation and revolution

April to August 2007;
New Century
Bear Stearns
American home mortgage
Countrywide
Starting in December of 2007, The FED started pumping in liquidity, eventually amounting to $16 trillion to any banks that were at risk. Since there was about $13 trillion in dollar-denominated debt worldwide, only the FED could produce the needed liquidity. The total sum of liquidity PLUS guarantees eventually reached $27 trillion. The FED was originally created to backstop domestic, member banks. BUT, as the dollar spread, so did it's "responsibilities". Regardless of where it started the contagion from a collapse would spread everywhere.

https://www.armstrongeconomics.com/world-news/corruption/did-the-fed-begin-secret-bailouts-in-2007-before-anyone-knew-of-the-pending-crisis/

https://www.armstrongeconomics.com/international-news/france/macrons-french-police-opening-attacking-the-people-seriously-injuring-if-not-trying-to-kill-them/

Revealed: The shocking scale of poverty in France in 2018 - The Local

https://www.armstrongeconomics.com/uncategorized/rising-unemployment-is-long-term-the-dream-of-socialism-is-over/

These people are NOT unemployed because of State "mismanagement". They are unemployed because of wage competition. Armstrong goes on to talk about Greek unemployment. Well, the Troika is taxing Greece to death to repay German banks who lent them money KNOWING that they would default. Is it any wonder that many bankers have been hung from lamp posts?

The Wave of Deflation & Rising Unemployment | Armstrong Economics
This so-called "deflation" is deflation of wages & savings of the middle class brought on by the price inflationRevenge of the Corporate Zombies: 15% of Largest US Companies ...
13% of the world's companies are 'zombies.' That's not healthy - CNN
Just imagine what will / would happen if 15% of American companies closed. Just imagine what would happen if American GOV / employment went bust.

Armstrong calls this the "collapse of socialism" BUT, off to the side is another facet that he never mentions.
The cost of the safety net is reckoned at $1.5 trillion a year.
The cost of the safety net for the rich is figured at $15 trillion.
It Costs $685 Billion a Year to Subsidize U.S. Health Insurance ...
United States Spend Ten Times More On Fossil Fuel Subsidies Than education
Study: U.S. Fossil Fuel Subsidies Exceed Pentagon Spending
America spends over $20bn per year on fossil fuel subsidies
NO mention of the $280 billion pumped from the FED to the junk bond market to the frackers.

Subsidies

https://www.investopedia.com/articles/basics/11/introduction-to-government-subsidies.asp

So, what would be the cost of basics if they weren't subsidized?

The State is trying to keep all the balls in the air. Armstrong talks about revolution and general chaos in a clinical sort of way. The French government spends 57% of the GDP and still, people are hungry.
Getting Old & Risking Unemployment Thanks to Socialism | Armstrong ...
The banks are trying to preserve the notional value of the loans they hold. If prices fall drastically, everyone defaults. The banks are trying to maintain the "high price economy" long after high wages have left.

Reportedly, the food industry operates on just 2% margin. A big bout of price inflation would wipe them out.

https://www.zerohedge.com/news/2016-04-18/nine-meals-anarchye.com/news/2016-04-18/nine-meals-anarchy

https://www.zerohedge.com/news/2019-07-28/now-compared-last-time-us-entered-recession-it-couldnt-be-worse

[Danny B]

https://swpcayman.com/media/commentary/will-they-take-all-your-money

I'm sure that this won't cause any capital flight.
Brussels to Build a Berlin Wall in Ireland in the event of a Hard BREXIT .
Boris Johnson Vows UK Will Never Put Physical Checks or Infrastructure on Irish Border
BOJO will be out there with a wrecking ball.


Trump wants to devalue the dollar to make American exports cheaper. The Pound and Euro are crashing. The dollar is more attractive to the markets than anything else.

The CBs created tons of new liquidity but, they didn't have any control over where it went. They tried to direct it to the upper loop. The upper and lower loop intersect quite a bit in Residential RE. House prices have risen for 88 quarters. Price inflation in consumer items has been about 10% (Shadowstats).
Price inflation in the lower loop has not been real bad. Yes, it will get worse.


Wall Street is having record profits by gutting Main Street.
oftwominds-Charles Hugh Smith: Main Street Small Business on the Precipice
YES, on some planet in the Lesser Magellanic clouds.

Because they don't read Armstrong.

[Danny B]

Profit deflation,,,runaway debt,,, crop loss

Much of news articles are about how the Central Banks just can't seem to accomplish the price inflation they are trying to spur with their currency inflation. Why are they adamant that we must have price inflation?
Much of the chain of retail trade is financed by speculators before an item reaches the final vendor. The retail vendor uses his own money to carry inventory. This personal investment is repaid by his profit margin. The speculator is just a middle-man and never has contact with the final consumer. If there isn't constant price inflation, there isn't enough money to finance the speculators. The retailer has a necessary profit margin to keep his doors open. If that, is reduced by the speculators, he goes out of business.

A Dozen or so Companies Amazon Is Slaying This Year - Investopedia
Amazon Will Kill CVS And Walgreens' Business Model -- More Bad ...
Amazon is threatening these industries - Business Insider

As profit margins fall, more and more speculators go broke. The CBs want price inflation to ensure that there is a continuous cash flow for finance.
I needed a connector plug for 3 phase power. It was $46.92 at Graingers. It was $6.02 for an identical plug bought direct from China. China has a payment system that completely bypasses banks.
Why China's Payment Apps Give U.S. Bankers Nightmares - Bloomberg

https://www.bloomberg.com/graphics/2018-payment-systems-china-usa/

The Western CBs demand 2% inflation to keep legions of money renters from going broke. The price inflation created by all these money renters has severely reduced purchasing power for the middle class. They insist on continual price inflation at the same time that we suffer from continual (effective) wage deflation. We stop buying so, they have to increase printing to keep the money renters solvent.
This is nothing new. It's just gotten much worse by the implementation of electronic currency.

"Hudson says that - in every country and throughout history - debt always grows exponentially, while the economy always grows as an S-curve."

https://georgewashington2.blogspot.com/2010/10/michael-hudson-debt-grows-exponentially.html

In the waning days of the empire, debt is increasingly used to sustain everything.
Commonly referred to as the "everything Bubble"

At the same time that we face dissolution of the empire, the ongoing pole flip (started in 1880), means we also face food production problems related to violent and unpredictable weather.
Youtubers depend on hits and, often resort to sensationalism, there is always some truth behind most claims.

https://www.youtube.com/watch?v=-nlkUWt7adA&t=128s

https://www.youtube.com/watch?v=Nun7ftprv6I&t=43s

[Danny B]

https://www.armstrongeconomics.com/world-news/conspiracy/was-911-a-plot-to-seize-power/

India has now slipped to 7th place according to GDP rankings. Last year, India occupied the 5th slot
India buys 1,000 Russian air-launched missiles
It looks like India is going to whip up a war with Pakistan to keep occupied. Keep in mind that both of them are participants in China's Belt and Road initiative of COOPERATION.

There are 2 great graphics on this page about the economic sanctions on China.

https://www.philstockworld.com/2019/08/02/tgif-stop-the-week-we-want-to-get-off-6/

Credit Bubble Bulletin : Weekly Commentary: Trump's China Tariff Tweets


That can be the start of "jingle mail" where home owners drop their keys in the mail box and, walk away. It costs about $50,000 to do a complete foreclosure. If the price is falling and the value is reduced, there is no point in the bank trying to retain the house.

It just doesn't work that way.

Trump tries to put China up against the wall so that they fall first.
DESPERATE.
REALLY ! ?


Powell says NO WAY !

https://www.salon.com/2019/08/02/signs-of-recession-are-hitting-europe_partner/

The guy who correctly predicted the sub-prime crisis and, made billions off it has now warned against U.S. corporate debt.
When the U.S. falls into a recession, a credit bubble will explode ...
Swelling US corporate debt raises risk of global financial meltdown ..
The Countries with the Most Monstrous Corporate Debt Pileups: US ...
Corporate Debt Is Rising and The Debt Bubble Could Hurt Stocks .
Armstrong writes that public debt will blow up but, equities will do OK. How can corporate bonds blow up without blowing corporate stocks also?

[Danny B]

Yes, the recession has started,,,free money for bureaucrats and bankers

In the lower loop, people must actually work for their money. Pumping in liquidity doesn't do anything for them directly. New liquidity is an instant "rush" for the upper loop. Since the majority of people are in the lower loop, they do most of the consumption.
Materials are down 18.5 %,,,, Industrials are down 12.2%. As these sectors fall, the upper loop needs ever-more liquidity pumped in.

https://acting-man.com/blog/media/2019/08/1-Earnings-growth-1024x569.png

https://acting-man.com/blog/media/20...t-1024x676.png

https://acting-man.com/?p=54586

The markets have topped out but, some gamblers still have a fear of missing out. It's called "picking up dimes in front of a steam roller" or "catching a falling knife"
Trump is hard at work trying to keep gamblers from leaving the table. Trump bumps up the trade war another notch and, Powell must lower rates to keep the markets from seizing up.

https://www.zerohedge.com/news/2019-08-03/how-fed-now-underwriting-trumps-trade-war-one-chart

Powell swears, NO MORE cuts.

Endgame: Starting In 2024, All US Debt Issuance Will Be Used To Pay Only For Interest On Debt

https://www.zerohedge.com/news/2019-07-31/endgame-starting-2024-all-us-debt-issuance-will-be-used-pay-only-interest-debt

There is no possibility of continuing to operate with debt-money. MMT is now called absurd by bankers who like charging interest for us to use our money. This isn't going to go down smoothly.
Federal debt, https://acting-man.com/blog/media/20...g-1024x678.png
The rise in total credit market debt.

https://acting-man.com/blog/media/2019/07/1-Debt-more-debt-and-GDP-1024x674.png

https://acting-man.com/?p=54571

As we get a greater and greater amount of automation, the State pumps in a greater and greater amount of new money. It flows everywhere.
Fleetowner, Oct 2010;
New Jersey pays $1.1 million per mile of state road.
Florida pays $671,000 per mile
California $545,000 per mile
South Carolina spends $34,000 per mile
California spends $94,564 for administrative costs per mile.

https://www.fourmilab.ch/fourmilog/archives/2011-08/001328.html

So, GOV is trying to save a system with exponential debt growth. What does the slippery slope look like on the downside?
"Macron has made no decision to remedy the disastrous economic situation in France. When he was elected, taxes, duties and social charges represented almost 50% of GDP. Government spending represented 57% of GDP (the highest among developed countries). The ratio of national debt to GDP was almost 100%.

Taxes, duties, social charges and government spending remain at the same level now as when Macron came in. The debt-to-GDP ratio is 100% and growing. The French economy is not creating jobs. Poverty remains extremely high: 14% of the population earn less than 855 euros ($950) a month."
This is a very sad article about the destruction of a once great nation. There will be no saving of France.

https://www.gatestoneinstitute.org/14643/france-sinking-chaos