Economic pressures

[Danny B]

Right date,,, wrong party

"According to an editorial in The Guardian, Armstrong incorrectly predicted that a sovereign debt crisis, or "Big Bang" as he called it, would begin on 1 October 2015.[11]"
QUESTION: Hello Mr Armstrong
I have not forgotten when I saw the reportage about you on TV when you announced that in October 2015 will start the big economic collapse. do you think that that date was bit early or really there is some thing happened?"
"ANSWER: No, October 2015 was spot on. What you have to understand is this is really a complete process. That is the day Russia invaded Syria and that I said would mean that Syria would become a key focal point. "
Armstrong called for a "big bang" on 2015.75.
Evidently, he thought that it would be a crash of sovereign debt. What happened on that day was, Russia proved that it could stand up to U.S. military.
CENTCOM can no longer call all the shots in places like China, Russia, Venezuela, Germany, Turkey, Iran, Syria and, the former soviet satellites. LOTS of oil producers.
Armstrong was correct in forecasting a big change in the confidence model. He was incorrect in calling for a sovereign debt crisis on that day.

[Danny B]

It has all crashed but, it's not technically a recession

The reality on the ground is getting uglier by the day.
Ron Paul, "There is no doubt we are witnessing the last days of not just the Federal Reserve but the entire welfare-warfare system. Those who know the truth must do all they can to ensure that the crisis results in a return to a constitutional republic, true free markets, sound money, and a foreign policy of peace and free trade."
Many millions of beggars, bankers and bureaucrats depend on a lack of " true free markets, sound money, and a foreign policy of peace and free trade"

https://www.zerohedge.com/news/2019-08-12/endgame-fed

People tend to gloss over a cessation of federal spending. It will bring death and revolution.

"When it comes to T-Bills the decision is simpler: it's all about liquidity preference - does one keep cash equivalents in the form of US Dollars, whether paper or electronic, or does one purchase Bills, with a maturity from 4- to 52-weeks. If investors are mostly happy to exchange money for Bills, it is generally said that liquidity in the financial system is ample; if however investors are unwilling to part with their "cash" in order to fund the US Treasury (as a reminder, in a time of chronic budget deficits, Uncle Sam has to issue debt to fund its operations), then there is a liquidity shortage.

We bring this up because last week we warned that as the Treasury scrambles to rebuild its cash balance to roughly $350BN from the latest $133BN in Treasury cash, a process that will require the aggressive gross and net issuance of T-Bills, liquidity in the system was set to collapse."
"In fact, according to Bank of America the liquidity shortage over the next two months - a period in which as shown in the chart above the Treasury would aggressively be issuing bills - would be so acute, that the Fed may be forced to launch QE, a conclusion which JPMorgan echoed just days later."

https://www.zerohedge.com/news/2019-08-13/terrible-52-week-auction-confirms-plunge-market-liquidity

The Treasury is going to have to find some phantom buyers for it's paper.

India's car market is crashing the worst in 18 years. Consumption is dying.

https://www.zerohedge.com/news/2019-08-13/indias-car-market-just-crashed-had-its-worst-month-18-years

China is much the same;

https://www.zerohedge.com/news/2019-08-13/china-datapocalypse-confirms-deeper-economic-slump-everything-missed

Thiel: "Globalist" Google Is In Bed With Chinese Military; Must Be Investigated By FBI/CIA
They thought that there would be no price to pay for attacking Trump and conservatives. Collusion will be found, fines levied and, laws passed.
Middle Class Death-Spiral: Consumers Have Never Been Deeper In Debt, And Bankruptcies Are Surging
Stockman writes about the so-called savings glut. Keep in mind that cafr1 reports that self-reporting from 37,000 GOV agencies shows $237 trillion stashed away. Also, off-shore wealth stashed away is supposed to be $27 trillion bit, who really knows.
There may be a savings glut but, not for the middle class.

https://www.zerohedge.com/news/2019-08-13/stockman-slams-risible-myth-savings-glut-and-lunacy-sub-zero-yields

[Danny B]

The herd is slowly moving to the exits

No matter how bad it gets for the lower loop, it's still not technically a recession.
USPS Reports First Drop In Package Volume In Nearly A Decade
"We Are Struggling:" Air Cargo Performance Slumps Across Major European Air Ports June registering a drop of 7.1%

https://www.zerohedge.com/news/2019-08-13/federal-reserve-might-well-use-carrier-pigeons

The "Trump effect" is wiping out criminals around the world. Let's see if this cleanup extends to the vampire squid.

https://www.armstrongeconomics.com/world-news/banking-crisis/17-more-goldman-sachs-people-indicted/

It’s Official: The Worldwide Bail-ins Are Coming | The Nestmann Group

https://www.nestmann.com/the-r-word-is-rearing-its-ugly-head

If you read all of this clearly, you can see that regulatory capture will be used to move heaven & earth to rescue the banks no matter the cost to savers and investors.
We're in recession and investors are heading for the exits. The cheerleaders are trying to keep them at the table. Something will eventually set off a stampede,,, probably China.
That is when gold will become unavailable.

[Danny B]

Danse macabre everywhere you look

Automation has caused a collapse of employment. The bankers have held a position at the top of the money chain. They are trying to preserve / maintain their position even though they have no position in productivity. Their solution has been to produce megatons of new debt. Since so much of this debt is loaded on CBs, it is theoretically loaded on the back of the taxpayer. This isn't going to work out as planned. The crash will be justification for the State to get rid of the CB and, unroll debt-free money. Because of regulatory capture, debt-free money can't be rolled out before a CRASH.
We are now in a danse macabre

https://www.armstrongeconomics.com/world-news/central-banks/world-of-central-banks/

"Some" plan to lock in globalism or world GOV or cashless society or a borderless world or one-world currency. Then, there is the faction that wants to do forced population reduction. They will probably be the most successful. It is easier to destroy something than to support it.

Greenspan is part of a faction that thinks negative rates are fine.

https://moneymaven.io/mishtalk/economics/zero-has-no-meaning-says-greenspan-i-disagree-so-does-gold-34jDCw4yqE6Htkh76jz1yw/

"From my perch the only way the Fed can avoid a recession is to blow an even bigger valuation bubble versus the size of the underlying economy, a larger one than what we saw during the tech bubble or the housing bubble."

https://northmantrader.com/2019/08/13/tight-rope/

The CBs pumped in megatons of liquidity in the hope that everything would get uplifted AND, there would be no escape nor alternative. They have pumped up every market except physical gold.l That, they have depressed. Just the same, the money renters HATE negative rates. There are bazillions in new liquidity but, everybody expects to rent their part of the bazillions for a high interest rate. EVEN JUNK BONDS HAVE NEGATIVE RATES. Remember that 12% of companies worldwide are zombies that can't even pay the interest on their debt. They charge you for the privilege of loaning them money.


Armstrong, "Some people have asked why do we have Private Blogs that are all different Basic, Plus, and Pro. I promised to not leave anyone behind. "


The larger the bubble the more input it takes to offset the leakage.

Yeah, yeah, yeah,,, the yield curve.

The danse macabre Hindenburg style.

Just like China, they took the jobs of their best clients.


Could there be a connection?

The S L O W danse macabre.


Everybody walked past Walmart and went to Dollar General. BTW, the Waltons gain $4 million per hour. They pay $11 per hour.
https://www.newsweek



Israel lobby in the United Kingdom - Wikipedia

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

The Israel lobby in the United Kingdom is the diverse coalition of those who, as individuals ... Its first objective is "to maximise support for the State of Israel

Yep, the Epstein / MOSSAD honetytrap caught a LOT of British flies.


He must be quite a ventriloquist to scream while he is hanging.

[Danny B]

https://www.armstrongeconomics.com/armstrongeconomics101/economics/crisis-ahead/

https://www.armstrongeconomics.com/armstrongeconomics101/economics/is-california-the-worst-economic-nightmare-in-the-usa/

"QUESTION: What makes currencies rise & fall in value?

ANSWER: Many people want to reduce this to a logical explanation. It reminds me of when I testified before Congress at the House Ways & Means Committee. They had to put me on a panel with academics. I told them to make me last. The Committee was asking about changes in taxes and the impact upon currency. The academics said there should be no impact. When they came to me, I dealt with the truth."
"Currencies will rise and fall BECAUSE, first and foremost, this is the way international capital gets to vote on the CONFIDENCE in that political government. You see this in the spreads within the Eurozone such as buying Germany selling Italy or Greece for an example. The dollar has been rising of late BECAUSE the confidence in Europe has been collapsing. This becomes self-evident just plotting the Dow Jones Industrials in dollars v euro. If capital perceives a problem, it will flee from that region to another. The dollar rose during World War I and II, but it declined with the Korean War because the former was a reservoir of capital and the latter was not."

https://www.armstrongeconomics.com/markets-by-sector/foreign-exchange/what-makes-currencies-rise-fall-in-value/

So, bring on debt-free money.

Why are they afraid of gold now?

One more guaranteed Argentine bond default.

The new confidence barometer.

[Danny B]

Credit creation alone does not make a healthy financial system

Armstrong said that investors would flee public debt and, move to private debt. How do you flee when somebody has chopped off your feet?
"Corporate debt to GDP is at its highest level in all of recorded history.
50% of that debt is BBB, or one level above junk.
Decreased cash flows and less corporate debt demand in a recession will stop buybacks and lead to insolvency in the junk bond market.
This may lead to another wave of bail outs and increased sovereign debt.
Increased sovereign debt will lead to Japanese and European-like economic malaise unless the U.S. creates inflation."
QE didn't create substantial inflation,,, what's next?

" wages have remained relatively stagnant for decades, credit has become the engine of economic growth in the U.S."
"Without wage growth, the credit economy must be pumped up to increase consumption (and therefore GDP)."
"Then credit froze as banks held worthless mortgage backed securities until the government stepped in. Government balance sheets assumed most of the banks' debt "
And now, the GOV is bust.

"Corporate debt has doubled since the 2008 crisis. Corporate debt to GDP is at its highest level in all of recorded history. Naturally, too much debt lowers your credit quality. This is evident by the fact that roughly 50% of the corporate debt market is BBB, or just one level above junk. "

https://seekingalpha.com/article/4285648-corporate-debt-bubble

https://www.peakprosperity.com/we-interrupt-this-market-plunge-to-bring-you-this-important-message/

This article has an excellent explanation of the reason and process of an inverted yield curve. Good read.

https://dailyreckoning.com/major-recession-alarm-sounds/

Also an excellent article on the strengths and weaknesses in China. MUCH depends on what they do in Hong Kong.

https://dailyreckoning.com/china-paper-tiger/

Here is a good, comprehensive on the life cycle of the dollar as the reserve currency.

https://www.zerohedge.com/news/2019-08-13/why-dollar-rules-world-and-why-its-reign-could-end

Now, to the bad news.
Farming in the U.K.

https://www.theguardian.com/politics/2019/aug/15/half-of-uk-farms-could-fail-after-no-deal-brexit-report-warns

The bees are losing the battle with pesticides.

https://www.businessinsider.com/world-without-bees-food-less-nutritious-more-expensive-2019-8

Lagarde doesn't have a prayer.

Seems like it was only yesterday when it was only $13 trillion.

But, not gold

It's simple. Our central black hole is getting prepared to be joined by our local black hole,,, Wall street.

[Danny B]

Banks are currently leading the meltdown

Everyone speculates what the "black swan" will be. There are so many candidates, it is impossible to predict. Armstrong called a for a collapse of the world economy on January 18, 2020. Evidently, his program, Socrates knows just what will happen. BIG subscribers pay $millions and, don't want him giving out info for free. Armstrong's time in prison gave him an appreciation for the plight of the common man. He said that he would not leave us behind. A worldwide crash would seem to involve a worldwide system for it to all go down at once.

"As we've previously reported, five mega-banks on Wall Street hold the fate of the entire financial system of the United States in their crony, frequently soiled hands. Yesterday's trading action clearly showed the ugly warts between those banks and their derivative counterparties in the insurance industry. "
"The Dow Jones Industrial Average lost a whopping 800 points or 3.05% percent but each of the five mega-banks outpaced the Dow's losses on a percentage basis. That's not a good thing when Congress has left the fate of a nation in such perilous hands -- especially when those very same banks caused the greatest financial crash in 2008 since the Great Depression.

Citigroup, the bank that received the largest government bailout in U.S. history in 2008, including a secret $2.5 trillionYesterday’s Market Plunge Shines Harsh Light on Big Banks and their Derivative Counterparties
So, the markets are going down and, the banks are leading the way.
CITI is always in trouble.
82% of Wall Street Bank Analysts Have a Buy Rating on Citigroup: Run for Cover


When the paper-gold market eventually blows up, it will take most other markets with it.

There is growth in finance but, a fall in manufacturing.

https://imageproxy.themaven.net/https%3A%2F%2Fs3-us-west-2.amazonaws.com%2Fmaven-user-photos%2Fmishtalk%2Feconomics%2FzmfATcSa4EegwR7v_znq6Q%2FvdAYPDHDskGyLICDqrOrwg?w=981&q=30&h=1175&auto=format&fit=crop&crop=focalpoint&fp-x=0.5&fp-y=0.5&fp-z=1&fp-debug=false

Markit reports Germany Manufacturing PMI at seven-year low as downturn gathers pace.

https://moneymaven.io/mishtalk/economics/tale-of-two-economies-industrial-production-vs-retail-spending-z9gSrn8Eikal8Umv-ibTAw/

Obviously, this must be some kind of mistake in reporting.

NO, of course there won't be a recession.

The VIX is the "fear index" and, the cheerleaders have been pumping money into it (futures) to keep everything looking rosy. The Yield Curve is a measure of market confidence where the greater investing public "vote" on actual markets. The cheerleaders have pumped in $trillions but, funny money doesn't buy confidence.

Have you got $400 trillion to spare?

https://www.armstrongeconomics.com/armstrongeconomics101/economics/why-i-thank-god-i-am-not-25/

[Danny B]

https://www.armstrongeconomics.com/international-news/politics/will-governments-ever-listen-before-there-is-blood-in-the-streets/

https://d33wjekvz3zs1a.cloudfront.net/wp-content/uploads/2019/08/Hillary-56-Suicides-600x409.jpg

https://tomluongo.me/2019/08/15/the-battle-of-the-flations-has-begun/

[Danny B]

The new liquidity injection channel

Everybody and their pet chimpanzee is attacking the FED. The FED is a tool of the private banks. It is also highly manipulated by the State. Many writers are talking about the end of the central bank era. The CBs are a focal point of the "elites" trying to maintain control. All are working towards a cashless society where your "money" would be worth just what they tell you it is worth.
At the same time, the economy at large is crashing down. Capitalism endeavors to reward only it's participants / producers. This system is no longer viable when most production is done by machines. The money-renters are fading away because the finance sector has grown so much larger than the actual productive sector. The State grows enormously as an attempt to compensate for job loss in the private sector. More and more resources are shifted to the parasitic sector. Then, there is the cost of pensions.

"Distortion' is inadequate to describe the situation.

Could gifting free money boost the economy? - BBC News
Why doesn't the Central Bank give people money directly
But then, there is another view;
Central banks should sell money, not give it away - Econlib

https://www.econlib.org/central-banks-should-sell-money-not-give-it-away/

Aug 2, 2019 - Central banks should sell money, not give it away.

https://stevenguinness2.wordpress.com/2019/08/14/lost-within-the-rate-cut-the-feds-drive-to-establish-a-new-payment-system/

'Imagine instead that, people also kept accounts at the central bank. New money could be added to their accounts, providing a direct, equitable boost to spending. That is one of several potential benefits of individual central-bank accounts, which are among the more intriguing of the radical policy ideas in circulation.'

https://www.economist.com/finance-and-economics/2018/05/26/central-banks-should-consider-offering-accounts-to-everyone

So, there you have it. The FED wants to create a mechanism where every person can draw liquidity directly from the Central Bank. This would OF COURSE be electronic liquidity. Cash would fall into disuse and, be abandoned. China has their social credit system where EVERY action that you do is recorded and, affects your credit rating.
China also has their direct payment system that eliminates the banks. If you are a good upstanding citizen, your account balance never goes to zero. By eliminating cash, all outside transactions must be done by barter.

[Danny B]

Ice age bond market

"It has been a thesis over 20 years in the making, but with every passing day, SocGen's Albert Edwards - who first coined the term "Ice Age" to describe the state of the world in which every debt issue ends up with a negative yield as capital markets and economies collapse into a deflationary singularity - is that much closer to having the victory lap of a lifetime. Although, we doubt he is happy about it.

Commenting on the interest rate collapse he has been (correctly) predicting ever since he first observed Japan's great bubble bust of the 1980s and which resulted in both NIRP and QE, and which he (correctly) expected would spread across the rest of the world, leading to a "Japanification" of every major bond market..."
"... Edwards said that what bond markets are telling us is "that the cycle is ending with the central banks having failed to drive core CPI inflation higher. So Japanese-style outright deflation lies ahead at a time when western economies have piled debt sky high."

Needless to say that's not good, not least of all because we now live in a world in which the bond universe with negative yields continues to grow at an exponential pace, rising rapidly over the past two weeks and reaching a record $16.4 trillion..."

"Here, a perverse "negative gamma" type of feedback loop emerges, as this growing universe of negatively yielding bonds becomes self-reinforcing as certain investors such as insurance companies and pension funds rush to avoid locking in negative yields to maturity. This has been a contributing factor to the significant flattening of the Euro area and Japanese curves, with most curves now firmly in negative territory, and leaves USTs as the last high yielder left among core bond markets. Indeed, as BofA shockingly found yesterday, the US share of global investment grade yields has climbed to 94% in the entire world, and is set to become 100% in the coming days.."

"Europe, is less of a reflection of an improving economy and more a reflection of European pension funds and insurance companies being forced to shift into corporate bonds to avoid very negative yields in the government space. "
So they are abandoning European government debt.
"Needless to say this would be a historic catastrophe for capital markets, where central banks - in control over interest rates for the past century - will have officially lost control"

https://www.zerohedge.com/news/2019-08-17/12-reasons-why-negative-rates-will-devastate-world

The world of bonds is looking pretty shaky.

Argentina is looking at total collapse once again.
Argentina Treasury Minister Dujovne Resigns Amid Currency Crisis
Hard Brexit will hit UK with food, fuel & medicine shortages, leaked govt doc warns
Juncker Warns of Brexit Calamity: C'est la Bullsh!t Says French Ports Chief

https://moneymaven.io/mishtalk/economics/juncker-warns-of-brexit-calamity-c-est-la-bullsh-says-french-ports-chief-asScdkXg5kewjxtGJM5OrQ/

According To The Feds, 19 Million Acres Of Farmland Went Un-Planted With Crops This Year
The Average US Farm Is $1.3 Million In Debt, And Now The Worst Farming Crisis In Modern History Is Upon Us
Wells Fargo Blindsides Customers By Charging Thousands In Overdraft Fees On 'Closed' Accounts
Deutsche Falls To New Record Low Showing 'Lehman Shock' Contagion Risk


So, just how aggressive are we talking about?


We dont need no stinkin recession.


We're all going to die in the waiting room.



Get used to it.


Get used to it. It is a marvellous business plan.
Kunstler, https://kunstler.com/cluster****-nat...he-yang-of-it/

[Danny B]

Hong Kong,,, rising debt

China is an authoritarian regime. When Hong Kong protested the extradition law, China should have backed off. NOPE, they have sent the army to the border of Hong Kong.
Armstrong, "The War Cycle is by far on schedule. We have tensions rising almost everywhere."
"In Hong Kong, there are fears that China will send in troops and take military action, which would trigger an international crisis as fear in Asia as a whole will rise sharply over the future of economic stability. This could send the yuan crashing and even force the break of the Hong Kong peg. The Hong Kong share market peaked in January 2018. It has not made new highs in 2019 and remains at risk of breaking the 2018 low of 24540.43. That gives way and capital is showing its concern for the future of Hong Kong."
"We have a serious crisis building in Asia on three fronts.
Right now, I am working from Asia in the middle of a real crisis with a front-row seat."

https://www.armstrongeconomics.com/international-news/east_asia/the-rising-tensions-kashmir-hong-king-korea/

China wants to "save face" but, that is soon to become impossible.

https://sputniknews.com/asia/201908171076573754-hong-kong-opposition-says-may-seek-foreign-help-after-us-diplomat-meets-with-activists/

The Blob State;
"I believe that ever since Bush Jr was elected, the power shifted from the president to the bureaucracy."
'Ever since that point in time, the bureaucracy rose to power. They took on a mantle of authority that no one has been able to challenge. Trump has tried, but look at what they have done to him. This is what people are calling the Deep State."

https://www.armstrongeconomics.com/world-news/corruption/the-deep-state-reality/

https://acting-man.com/?p=54671

'SET" huh,,, we'll see.
C. H. Smith writes about the wobbly stock market.
oftwominds-Charles Hugh Smith: A Wobbling Stock Market

How many months does it take for fear to turn to reality?

The economy is constrained by a lack of consumption, NOT a lack of loanable funds.



Just wait til China crashes. They won't even have any bazookas.

The Indian CB has been trying to trade paper for gold for years.

There was a proposal to credit everybody's account with $80,000 from the FED. The Current federal debt is far too high to be payable. If the FED pumped in $bazillions, this would create high inflation. This would have the final effect of making it much easier to pay down the debt. The banks are deathly afraid of inflation so the CBs always lean towards deflation.

"It kept interest rates at 2 percent, and intoned that "the downside risks to growth and the upside risks to inflation are both significant concerns."
"It brought to mind what economist R. G. Hawtrey had said about the Great Depression. Back then, central bankers had worried more about the possibility of inflation than the grim reality of deflation. It was, Hawtrey said, like "crying Fire! Fire! in Noah's flood."
"The world changed on August 9, 2007. That's when French bank BNP Paribas announced that it wouldn't let investors withdraw money from its subprime funds anymore. It couldn't value them, because nobody wanted to buy them. The effect was immediate. Banks stopped trusting, and lending to, each other. "

https://www.theatlantic.com/business/archive/2014/02/how-the-fed-let-the-world-blow-up-in-2008/284054/

The article is a long examination of FED policy as it related to flation.


THAT show is going to run for a long time.

[Danny B]

China,,, social credit,,,Kudlow BS,,,about face in Germany

I have to do a correction. The Chinese DID withdraw their extradition law. Paul Craig Roberts claims that the CIA is behind the protests in Hong Kong. China is really screwed on this one.
Hong Kong's ultra-rich lose patience with protesters as their profits dive
Germany has a pathological fear of high inflation. They push austerity for Europe. Now that Germany is slipping away, they have been newly converted to stimulus.

https://www.zerohedge.com/news/2019-08-19/germany-prepares-stimulus-case-deep-recession

Oil prices go down,,, frackers go bankrupt.

https://www.zerohedge.com/news/2019-08-16/report-bankruptcy-filings-rise-among-us-energy-producers

China has social credit and facial recognition. This has allowed "1984" on steroids.
China restricted 2.56 million discredited entities from purchasing plane tickets, and 90,000 entities from buying high-speed rail tickets in July
Trump Advisers Accuse China of Reneging on Trade Commitment
Fentanyl Flowing Into US Overwhelmingly Sourced From China

Brexit Begins - Stephen Barclay signs 'commencement
order' formally starting the process that will take Britain out of the EU on October 31

[Danny B]

Persecution of UK,,, fundamental economic laws that havs never been correct

Armstrong has GREAT perspective and, a front row seat. The cheerleaders can't "interpret" his statements.
Keep in mind that most of our problems are a result of regulatory capture. The banks get the laws that they want. The London banks want continued access to Continental markets.
"The recent polls in Britain show that the people are MORE AFRAID of Labour and Jeremy Bernard Corbyn than they are about BREXIT!
"This is a chart that speaks 1,000 times that Britain has NEVER received a fair deal since joining the EU. This is data from your own government which I have not altered. The peak in GDP took place in 1973 just before Britain joined the EU. There was a major faction that believed joining the EU would create a global economy that would surpass the USA. That never happened because each member state can veto what any other state tries to do. "
Ah yes,,, tribal politics.

"On the subject of Phillip Hammond and Brexit, this is just the latest in a long list of pro-elite politicians who are looking to protect their career interests by aligning with the globalist system.

Blair made hundreds of millions, Brown and Darling bailed out the banks and then went to work in the financial sector and failure that is Nick Clegg is now an exec at Facebook. Theresa May will no doubt have her payday coming. These politicians are selling out their country "
"REPLY: All of these politicians who are for the REMAIN side, which included Theresa May, all have a self-interest which is counter-trend to their own country. They like the establishment of the political class to be left alone."

https://www.armstrongeconomics.com/international-news/britain/why-the-remain-politicians-only-speak-their-own-self-interest/

Armstrong, "Come September, Draghi at the ECB will make loans to Eurozone banks on a long-term basis at rates less than the short-term lending window. The objective is to encourage banks to lend money to businesses."
"The world economy is crashing BECAUSE of negative interest rates. These insane people have REFUSED to consider that this entire idea of lowering interest rates to stimulate the economy will NEVER work. You are wiping out pension funds and the elderly who are a vital part of the economic base. They keep using the same theories that are decades old and have ALWAYS failed each and every time."
" Lowering interest rates has NEVER worked even once, yet they keep trying the same theory over and over again because they cannot think of anything else to try."

https://www.armstrongeconomics.com/world-news/central-banks/ecb-going-to-lend-to-banks-long-term-in-hope-they-will-in-turn-lend-again/

May I suggest Seppuku?

"Mr. Armstrong;. They constantly try to ignore you in the press and even Wikipedia distorts everything and fails to mention the banks pled guilty and had to repay your clients."
"ANSWER: There is ABSOLUTELY no historical evidence that negative interest rates will ever stimulate the economy no less are they even viable. This wipes out pension funds where many around the world are obligated by law to buy government paper. Social Security in the USA is 100% in government bonds. It is beyond comprehension where all these people cheer negative rates as if this is a good thing. The US share market declined with the rate cut, it did not rally."
"rumors of Roosevelt devaluating the dollar creating a currency inflation. Am I wrong when I understand they feared losing money so they bought tangible assets?"
"Correct. Tangible assets are always the hedge against a decline in the currency. This is why gold has been rising more so in other currencies than US dollars."

Gold acts as a barometer of confidence in a given currency. As the currency crashes, money renters buy up tangibles and, create price inflation. Capital flight also acts as a barometer of confidence in a sovereign currency.
We are now in a holding pattern while they try to save the banks at ALL costs.
"ECB will make loans to Eurozone banks on a long-term basis "
Who knows when it blows?

[Danny B]

More big speedbumps

I've already written about how the banks take your savings and, front-run / buy up everything that you need. Add to that the free money from the FED, ESF and PPT.
There is another mechanism at work in other sectors / markets. Here is an excellent article about the reason that education and health care have risen so far and fast.

https://mises.org/wire/what-student-loans-and-health-care-have-common

https://antoniusaquinas.com/2019/08/19/the-geopolitical-consequences-of-a-coming-recession/

Negative Rates, Gresham's Law And A Parabolic Move In Gold | Investment Research Dynamics
No such thing. Contagion will flow everywhere.

Get used to it.

JPMorgan Spoofer Pleads Guilty To Gold Manipulation, Faces 11 Yrs In Jail
Mark Mobius = Buy Gold At Any Price
This is a big change. Physical gold could break loose from paper gold.
Rich Danes will be forced to PAY bank to hold their deposits
The markets peaked a long time ago.

https://www.zerohedge.com/news/2019-08-20/11-reasons-why-so-many-experts-believe-us-economic-crisis-imminent

Major big tech antitrust investigation to start as early as September
You can tell that the bay area lefties have NO political awareness. They are techies who think that; you push a button and, get the results that you want. "anti-trust" never occurred to them.

[Danny B]

Too much inter connection,,, social credit,,, bankers still in control of the State

Big oil still holds a stranglehold on the State. It would like to get control of the oil in Venezuela and Iran. This doesn't look very likely. Same for the mega-deposit in the Golan Heights. America reached cheap-peak-oil years ago. CURRENTLY, American oil majors refuse to tap into the enormous reserves in Alaska. Search "Gull Island".
Our GDP is locked in to energy production. We produce Stuff by applying stored energy to raw materials.
Energy Slaves: every American has somewhere between 200 and 8,000 energy slaves
22 Billion Energy Slaves

https://kunstler.com/cluster****-nation/there-is-no-normal/

https://www.reuters.com/article/us-usa-fed-jacksonhole/its-the-fed-but-the-world-will-have-its-say-idUSKCN1VA24V

Globalism and the drive down to a global mean wage have seeded a lot of big problems. They are soon to grow into giant blooms.

https://www.zerohedge.com/news/2019-08-20/11-reasons-why-so-many-experts-believe-us-economic-crisis-imminent

As long as regulatory capture continues to favor the banks over ALL else, everybody will continue to slip down. The banks are slipping badly but, they survive by hollowing out everything else.

I don't blame him for wanting to get re elected. He has done a lot of good. The deep state stalled him for 2 years with the Russian hoax. He lost 2 years on his agenda. The crash will hurt his chances. 'They" hope to squeeze him out in the primaries.
Armstrong said that the critical question would be, 'What comes after Trump?"


For now, gold will slowly rise in dollar terms. it will rise rapidly in the weaker currencies.

Must be the same investors that recently bought the 100 year Argentine bonds that are now crashing.


Sorry Donald, you're out of time.

The FED deludes itself and, everybody else that it is actually in control for the long-term.


They still don't get it. Trump puts a noose around their collective necks NEXT MONTH.


Kitson, Soddy and Douglas originally created the concept of Social Credit. You would receive a payment as a national dividend for being a good, law-abiding, productive citizen.
Their system was all "carrot" and, no "stick"
The Chinese system is a system that is all "stick" and, no 'Carrot"
I don't think that it will work out in the long run.