Economic pressures

[Danny B]

Zero Hedge

The headlines at ZH give you a good idea of what is going on without having to wade through tons of text.

Galloway: "Markets Are Emerging From A Psychotic Break With Reality"
"The ugly process of repricing risk has begun..."
Final Collapse Is InexorableWhich Banks Were Behind The "Repocalypse" Funding Squeeze?
We'll find out next friday WHICH banks.
Here is an interesting article showing that GOV waits til the last (budgetary) minute to spend like a drunken sailor.

https://www.zerohedge.com/economics/why-us-decoupling-miracle-ends-72-hours

Consumer Stress: Defaults Rise To Highest Level In 2019
"...and it's a ticking time bomb that could shock millions since they haven't planned for a recession."
There are a LOT of people who, either don't think about it OR, think that that they are insulated / isolated.
Stunning Clip Shows Billions In Gold, Cash Hidden In Chinese City Mayor's Secret Basement
"..the official will be executed." The wages of sin and, the cost of corruption

Want To Save The Environment? De-Fund The Pentagon
"...the hundreds of environmentally toxic military bases circling our planet, exists solely for the benefit of murderous dominating imperialists and sociopathic war profiteers..."
Yes, yes, yes. BUT, Keynes said that we had to have perpetual warfare to stimulate the economy.
Debt Bombs: Here Are The States With The Most Debt
"New Jersey, Illinois, Connecticut, Massachusetts, Hawaii, Delaware, Kentucky, California, and New York. 40 states do not have enough money to pay all of their bills and in total the states have racked up $1.5 trillion in unfunded state debt."
How can ANYBODY think that the default collapse won't affect them?

Trump, FDR, And WarIt's A Numbers Game In The Coup To Stop Johnson And BrexitItaly: Salvini Out, Migrants In
The Italy that we once loved is melting away.
NATO Rejects Putin's Request To Ban Missile Deployments In Europe
NATO has zero justification for it's existence. Like much of the blob state it has to conjure up a reason to keep it from going up in vapor.

Yet More, High-Quality Video Of Trudeau In Blackface Has Emerged
"The only one who dons blackface and afro" among the many people filmed on the rafting trip."
It probably seemed funny at the time.
Is This How GOP Will Answer Pelosi's Pre-Planned, Lawfare-Assisted Impeachment Plan?
"Perhaps, just perhaps, that is why the IG Horowitz report has been delayed... As in, hold it back until Pelosi, Schiff, Nadler and Cummings fire their impeachment cannons..."
Somebody is going to get blow out of the water.
"This Market 'Stalemate' Is Coming To An End One Way Or Another..."
Don't discount inflows from capital flight.
After Trump Accused Of Cover-Up, Susan Rice Admits Obama Put Transcripts On Top Secret Server Too
Obummer will get dragged down eventually.

Massive Mystery Blaze Engulfs High-Speed Rail Station In Saudi Arabia
Kinda like the mysteriously accurate attacks on the refinery.
Clinton Emailers Rattled After State Department Fires Off 'Culpability Letters' For Homebrew Server Messages
A 'remarkably aggressive crackdown.'
Apparently HRC has forgotten that she doesn't run State anymore..

[Danny B]

still falling liquidity,,,, UBI creeping into the system

During the Weimar hyperinflation, many Germans gave up. They spent their life savings and bought one last, great meal. Then, they went home, turned on the gas,,, and went to sleep. This is till heavily ingrained in the German psyche. THAT is why they are so afraid of hyperinflation. Armstrong argues that hyperinflation is brought on by loss of confidence, NOT by excess fiat money creation.
Armstrong;

There more $100 bills in circulation than $1 bills. Most of them are held outside America. Gresham's Law states that the best currency will go into hiding. The U.S. Treasury prints the $100 bill for 3 cents. In return, they receive a pile of Euros. The Euro continues to fall on the FX markets. Draghi has restarted QE which makes the Euro less attractive. Powell is pumping money into the repo market. It was slated to be short term but, it is a very convenient way to do QE without appearing to do QE.

Kunstler is getting even more descriptive.

https://www.zerohedge.com/political/kunstler-democrats-set-dumpster-fire-their-own-garbage-barge

"Honest government" talks about the dole in OZ.

https://www.youtube.com/watch?v=9RZSTx9khWw

Crony capitalism;
Poll - 70% Of Americans 'Angry' At Political System For Only Serving Insiders With Money And Power
The other 30% are on the dole.

All the money was sucked out of the lower loop. There is no practical way to move it back out of the upper loop. Instead, they will recapitalize the lower loop. BUT, not without a fight. Millions of pensioners will be collateral damage in this fight.

They have aligned themselves with a rogue, criminal State that admits to being run by organized crime.

Apparently, the cashless welfare card being rolled out in OZ is an attempt to find the best way to rollout UBI.
Repost, https://www.youtube.com/watch?v=9RZSTx9khWw
How long will it take to discover that it can't work with debt money?
How badly will it demotivate needed workers? Stay tuned

Can't have that. Money renters will demand higher interest to compensate.

Wait til the pension funds go belly-up.

[Danny B]

https://news.goldcore.com/ie/gold-blog/cashless-society-risks-war-on-cash/

Banning cash so you pay the bank to hold your money is what the IMF wants

https://www.abc.net.au/news/2019-09-30/open-banking-the-revolution-that-could-break-the-banks/11558740

It has worked very well in China.

CEO pay vs workers pay.
"Companies keep lavishing astronomical amounts of money on chief executives, despite repeated studies which show huge pay doesn't equal huge performance.

One of those studies, by Morgan Stanley Capital International, looked at hundreds of the biggest companies in the United States over more than a decade.

It found those with the lowest-paid bosses outperformed those with the highest pay by around 40 per cent."
"Chief executive pay in the United States rose nearly 900 per cent between 1978 and 2012, a trend that Australia followed. "

https://www.abc.net.au/news/2019-09-28/how-did-ceo-pay-get-to-500-times-the-wages-of-ordinary-workers/11556394

[Danny B]

State debt,,, imagination,,, confidence,, MMT

I keep pounding on the drum of job-loss created and enforced by automation. Since there is NO cure for efficiency, GOV does what it can to absorb the unemployable into State jobs.

The blob state has no intention of going quietly into the night. Armstrong predicts a collapse of sovereign debt. How will GOV pay the blob State? Illinois has a special tax assessment to pay for pensions. Californians are on the hook for about $100k each to pay for pensions.
Armstrong seems to ignore the climb of automation up the ability ladder. Any help offered to the unemployed is constantly referred to as "socialism". In pre-computer days, this may have been mostly correct. Armstrong also makes note of the fact that law firms and law schools are closing down right and left. At what point will he concede that; we either let the unemployable people die or, we support them. Don't forget that "unemployable" includes many millions of retired people who depend on pension funds that are soon to collapse.
Here, Armstrong writes about the historical battles between labor & Conservative.

https://www.armstrongeconomics.com/international-news/britain/was-the-labour-government-the-caused-of-the-british-pound-losing-reserve-currency-status/

Capital in Great Britain has always tried to impoverish the people to try to limit reproduction. A couple could not marry until they had a house. The battle will go on.

Bad-mouth a Rothschild,,, go to jail.

Ellen Brown and others have long campaigned for public banking. MMT in France would pull them out from under the Rothschild yoke.


Alain Soral Sentenced to 2 Years Jail for Sharing <i>“Gilets-Jaunes”</i> Anti-Rothschild Rap Video, by Guillaume Durocher - The Unz Review

It seems to me that the greedy bankers just do NOT have the perspicacity to see that they are $hitting in their own nest.. Every time that their greed brings a meltdown, they run to the State for a bailout. Privatise the gains and, socialise the losses. Did they never predict the long-range consequences? ALL sovereign debt eventually crashes and defaults. Is that OK with them. The bankers who caused WW II (Churchill) must have known that they would bring enormous destruction. Were they OK with that?
The bankers have bankrupted the State. Do they imagine that they will come out OK?

Public debt becomes increasingly risky. Armstrong claims that there will be a bifurcation of interest rates. Money-renters will demand higher interest rates from the State.
Did they never project what the State would do in response? Did they forget that the State has the guns and the law books?
MbS in Saudi Arabia has told the rich princes that don't agree with him that they can't leave the country OR move money out.
Do the bankers lack all imagination? Do they believe that millions of pensioners who are starving are going to go quietly into that long, dark night? Do they imagine that millions of GOV employees are going to peacefully clean out their desks and, walk away?
51% of Americans receive a check from GOV.

Here is the article from Armstrong,

https://www.armstrongeconomics.com/markets-by-sector/interest-rates/split-between-official-real-interest-rates/

"I fully understand that nobody has ever heard of a split in the interest rates between public and private that can be at odds with one another. But in assembling all of this data and allowing the global correlations to unfold, we actually have a shot at understanding how the economy truly functions and where we are headed. All of the economic theories we were taught in school have FAILED!!!!! Quantitative Easing for more than 10 years has utterly failed to produce inflation despite the vast increase in the supply of money. That alone stands as a witness that Keynesian Economics does not work."

The QE money went to a small group of non-producers who could not possibly carry out the necessary consumption to keep the economy going OR create the hoped-for price inflation to erase the pain of servicing State debt. Yes, QE for the upper loop failed to rescue the larger economy.


The FED instantly pumped money into the markets when the repo rate hit 10%. The liquidity crisis is already here. If Berkshire Hathaway wouldn't lend at 10%, you know that there is a big rat plugging up the plumbing.

NOPE, the trade negotiation yo-yo will run until there is a revolution in China.


The creation of the EU was terribly flawed. This ensures that there will be flight from the euro to the dollar. Same is true for many other currencies.
A bit more on the UIkraine problem.
WHAT IF Trump Really is Playing 4-D Chess, and the Ukraine Krisis is the Biggest Baddest Political Trap Ever Set? - The Great Recession Blog

[Danny B]

Pushing the MMT meem,,,lotsa speedbumps,,, setting up Trump

The Yellow Vests in France are demanding an end to CB created debt money when the State can just print it debt free. Here is a vid of a 12 y.o. Canadian girl who lays out the problem VERY clearly about how Canada has been poor ever since it got a central bank.

https://www.youtube.com/watch?v=Bx5Sc3vWefE

Super Mario Draghi has come out in favor of MMT and, QE for the people. Most people just do not realize how heretical this is for a Central Banker.

"

ignoring government deficits
There IS NO DEFICIT with debt-free money
Japan wasted trillions of dollars building bridges to nowhere

Absolutely correct. Japan was pouring more concrete than the rest of the world combined. THAT is a waste of resources. Paying people directly so that they can survive does not waste resources like bridges to nowhere. Japan has a high poverty rate for women and children. Japanese politicians cry in their Sake about the terrible Japanese birth rate.

https://moneymaven.io/mishtalk/economics/draghi-open-to-mmt-and-a-people-s-qe-qmCyyJz1d0G8DZ-OHs0rTA/

Zero Hedge again.

Credit Suisse 'Spy' Found Dead As 'Espionage Scandal' Stuns Swiss Banking Establishment
There will be many more.
Americans Reject Universal Basic Income While Canada & UK Embrace It
"Not entirely surprising but younger residents in each country are more supportive of UBI than older residents are, with at least 8-in-10 young adults (aged 18 to 29) in the U.K. and Canada - and nearly 6-in-10 in the U.S. - supporting the idea."
Just wait til the older residents lose their pension
Here Are The Billions Of Loans Exposed To A Potential WeWork Bankruptcy
Another financial speedbump.

Iraqi PM For First Time Confirms Israel Responsible For Multiple Strikes On Iraq
On Friday evening, the government here in Puerto Rico made an announcement to local retirees that many of them would have their pensions cut... Poof. Just like that.
Bolton Slams Trump's "Bromance" North Korea Policy In First Public Remarks Since Ouster

https://www.youtube.com/watch?v=7DYO4_VFf0Y

South Korean Consumer Prices Just Did Something They've Never Done Before
...they dropped.
The head of the CB in S. Korea recently said, "We can't print babies"
Kyle Bass: Hong Kong Protests Are Chinese Regime's "Worst Nightmare" In US Trade War
Why is the Chinese economy so dependent on US dollars?
A hard rains a gonna fall.

Ron Paul Asks: "Impeachment... Or CIA Coup?"
...at every turn we see the fingerprints of the CIA and its allies in the US deep state...
Trump was warned in the beginning NOT to mess with the intelligence agencies. He was told that they have dozens of way to get back at him.

Rense;
Trump Allies Worried He Doesn't Understand The
Gravity Of The Impeachment Inquiry

'We will move as expeditiously as possible' - Schiff
On Trump Impeachment Inquiry - Subpoenas Fly - Vid

Hillary - Trump 'Knows He Is An Illegitimate President' - Vid
Pelosi - Trump Impeachment Is Worth Losing
Control Of The House In 2020
A impeachment is a hearing. The defense gets to question whoever they want. You just know that all the dirty laundry is going to get aired out.
Why would the Dems be so stupid?

C. H. Smith may have the answer.
"The reason why Karma runs over Dogma is that nobody clinging to a dogma sees themselves as dogmatic. The true believer never sees their conviction as dogma, but as Revealed Truth, as self-evident, a view that is buttressed by all the other True Believers who surround the believer, reinforcing their conviction"
As the increasingly detached-from-reality leadership senses their power waning, they double-down, exhorting the faithful to support the orthodoxy even as the orthodoxy reaches new heights of fanaticism.

Military dogmas get discredited on the field of battle, often in dramatic fashion
To an alarming degree, the U.S. is dominated by dogmas that benefit the few at the expense of the many, and by leaders who are doubling or tripling down to defend the dogma and their power. As already noted, dogmas support extractive systems that enrich the few by bamboozling the many.
The leaders, safely protected from the consequences of their elitist dominance and fearing the loss of their wealth, power and prestige, ramp up the time-honored strategy of increasing demands for loyalty and public virtue-signaling, jacking up media propaganda in support of the orthodoxy, and moving to ban, shadow-ban, suppress, punish, discredit, demoralize, de-platform, demonetize and marginalize critics, i.e. heretics who challenge the status quo's foundational dogmas.

The consequences and costs inexorably pile up, and neither Inquisitions to silence heretics nor virtue-signaling one's loyalty will stop the trajectory over the cliff.

https://www.zerohedge.com/political/so-sorry-your-karma-ran-over-your-dogma

Chris Hedges writes a scathing article about Trump. In the end, he blames the rise of Trump and people like him on; the corporations and MSM. You end up once again at regulatory capture and, a lack of morality.

https://www.truthdig.com/articles/the-problem-with-impeachment/

Pass the trash to the FED.

Umm, what about a few hundred $billion of interest rate derivatives? Somebody always has the other side of a derivative.

The 70th anniversary of the founding of the People's Republic of China 1 October 2019

What will the Chinese do to save face?

TAE shows that the rules were changed just prior to charging trump with Impeachment. The whole thing looks like a CIA / Dem setup.

https://www.theautomaticearth.com/2019/09/twisted-pair-1-us/

[Danny B]

Stanley Fischer and the helicopter fleet

Stanley Fischer; "Fischer had joined the influential Washington-based financial advisory body, the Group of Thirty."
"Fischer was appointed Governor of the Bank of Israel in January 2005 " "by Prime Minister Ariel Sharon and Finance Minister Benjamin Netanyahu. "
"American President Barack Obama nominated Fischer as vice chair of the Federal Reserve System"
"He is a member of the Bilderberg Group and attended its conferences in 1996, 1998 and 1999. Apparently he also attended the Bilderberg conference in 2011 in St. Moritz, Switzerland.[46] However, his name does not show up on the list of participants for the year 2011 as of March 2016. He is also a Distinguished Fellow in the Council on Foreign Relations (CFR). "
" He was also Ben Bernanke's, Mario Draghi's and Greg Mankiw's Ph.D. thesis advisor.[26]"

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

https://www.bloomberg.com/quicktake/helicopter-money

Reportedly, Japan is going to try it.

https://www.bloomberg.com/news/articles/2016-08-24/mobius-says-helicopter-money-will-be-japan-s-next-big-experiment

Stanley Fischer is now promoting QE for the people. It will be a hard-sell trying to get past the bankers. A bad crash will be necessary before it can be introduced. The EBT card in America and the cash card in Australia are test runs to see how to best get money to people. Direct deposit cash is more like to be used for drugs and gambling than an electronic card.

[Danny B]

More speed bumps

The E.U is getting quite tired of both SWIFT and sanctions.

https://www.rt.com/news/469936-eu-countries-join-instex/

The Taliban eradicated poppy production in Afghanistan so, America immediately invaded to get the big cash crop back in production. The Taliban are now taking out all the Saudi-British-Turkish mercenaries.

https://sputniknews.com/asia/201909291076918557-taliban-burn-homes-of-daesh-militants-in-afghanistan/

China has found more oil and, is quite happy about it.

https://www.rt.com/business/469906-china-huge-oil-discovery/

Good thing too.



They need their own fleet of helicopters.

Yep, the CBs are dumping them and, savers are hoarding them.

Push the meme

About 12 years too late.

They see NIRP riding in on the horizon.


The saudi slowdown drove up prices but, demand is falling.
MAGA baby
The Federal reserve education department has a marvelous GRAPH.

https://imageproxy.themaven.net/https%3A%2F%2Fs3-us-west-2.amazonaws.com%2Fmaven-user-photos%2Fmishtalk%2Feconomics%2FzmfATcSa4EegwR7v_znq6Q%2FS-3GCFQVD0OeYu7a7Cc-Ow?w=999&q=30&h=674&auto=format&fit=crop&crop=focalpoint&fp-x=0.5&fp-y=0.5&fp-z=1&fp-debug=false

VERY good article.

https://moneymaven.io/mishtalk/economics/nixon-shock-the-reserve-currency-curse-and-a-pending-dollar-crisis-CUveB9D01kG03mpO7o-SqA/

There is no possibility of maintaining fixed exchange rates. No possibility of a gold-backed currency. BUT, gold backed bonds are a different story. There are claims that America will no longer be able to run a trade deficit after the collapse. A post-collapse world would entail UBI to keep people alive. It would entail gold settlement for foreign trade. All prices would be quoted in gold-ounces. Trade settlement would be in gold. Without a trade deficit, Americans will be quite a bit poorer. It would be a big help if we could if we could get rid of the $1.25 trillion military expenditure.

[Danny B]

Armstrong,,, melting confidence &amp; melting markets

I mentioned that the Saudis went to the credit markets looking for a $billion. MbS is trying to force Saudi princes to buy the IPO for ARAMCO. Nobody is really interested in the IPO. Saudi oil production suffered more than reported by the Houthi attack. I'm sure that Saudi regrets getting sucked into Yemen. Now;
Saudi Credit Rating Cut In Face Of 'further Threats'
Maybe war wasn't such a good idea.

Armstrong writes about the Thucydides Trap. This has to do with a war resulting from the rise of a new power & the fall of the old one. It often results in war.
"The US trade with China will by no means send the US economy into a deep recession. However, blocking US investment into China would send the Chinese economy down even harder."
MAGA baby
" The West will fall because of the economic conflicts internally between the left and right as socialism is dying and all the promises cannot be funded. "
I fault Armstrong for not having enough imagination. The promises of socialism can not be funded with DEBT money. UBI is emerging in the West. Automation will have the same effect in the East. China is unfolding draconian surveillance as a means of maintaining control. I believe that is the wrong solution.

https://www.armstrongeconomics.com/armstrongeconomics101/economics/thucydides-trap-war-between-china-usa/

Armstrong writes about the "contagion of discontent" This is definitely something to keep in mind for the West.

https://www.armstrongeconomics.com/world-news/civil-unrest/indonesia-riots-over-new-laws/

Side note
European banks big Fed borrowers in 2008 crisis - Reuters
The European banks got $trillions. ALL banks have exposure to all other banks. The FED has to save all of them OR, none of them.
Op-Ed: The bank bailout of 2008 was unnecessary. Fed ...
https://www.latimes.com

"As I have REPEATEDLY warned, we are facing scenarios that nobody has ever seen before. The interconnectivity runs so deep, this clash in public policies can result in a serious crisis emanating from Europe."
Ah yes CONNECTIVITY.

"If there is truly a will to address the critical issues at the core of this crisis, we have a team ready to provide guidance. As for our central banking clients outside of Europe, please monitor our services on Socrates."
Armstrong has a team already to go. They won't be called. Certainly NOT before the default cascade. I am sure that the plan calls for Germany ( 1 trillion capital account surplus) to shoulder the debts of the rest of the EU (1 trillion capital account deficit.)
I long ago mentioned that this scenario would be Versailles all over agina but, without the war.

https://www.armstrongeconomics.com/world-news/banking-crisis/liquidity-crisis-the-pending-european-banking-crisis/

"They" will push Germany into the arms of Russia.

When Rome collapsed, the population fell from 1 million down to 20,000.
Charles Hugh Smith writes about a meltdown in the affluent communities.
oftwominds-Charles Hugh Smith: Could Pricey Urban Meccas become Crime-Ridden Ghost Towns?
This is now happening in cities like Durban, Pretoria, Cape Town and Jo-burg
The markets are melting and nobody wants to be left holding the bag.

https://marketsanity.com/peter-schiff-the-party-is-over-dont-be-the-last-to-leave/

I'm sure that antifa can think of a good use for a drone.

Will it stop cyber-attack?


America had 5 times the retail space per person as France had.


Billions of pixels are in danger of massacre.

Maturity, maturity. The dollar is a zero-maturity bearer bond. It is the most fungible instrument in the world.
If a foreigner wants to obtain a $100 bill, he must surrender $100 worth of stuff to us. The bill costs the treasury 3 cents to print. When this foreigner buys the U.S. note, he is buying confidence.


We don't need no stinkin manufacturing. We got no money to buy that stuff.

Ah yes, the venture capital pushers. IPOs are in complete meltdown.
There are $trillions and $trillions of nominal capital that are trying to avoid going up in smoke. Sorry Charlie,,,, smoke it is.


So, who is going to see those flares and, ride to the rescue. It isn't going to be the IMF and SDR. The East won't accept that. Fracking is crashing and, America needs to import even more oil. Russia and China have bet on gold. Rubin got rid of America's gold. There were plenty on newspaper articles with pictures showing lots of army trucks driving away from Ft. Knox. As far as the gold in NYC, the treasury has admitted that it is in deep storage for it's rightful owners.


I suppose that we shouldn't blow up China.

Poverty is up, everything else is down,,, so, they raise taxes. Why do that? The BOJ is buying all GOV debt. They don't need taxes.

You're going to hear a LOT about margin calls. You will see gold go DOWN in price. When you get a margin call, you sell what you CAN sell, not what you want to sell. You can always sell gold. Market dumping will lower the price of gold until it runs out. There are 100 owners for every 1 ounce of physical gold. The DOJ is using the RICO act against the gold manipulators. It will blow higher than the super caldera under Yellowstone.

[Danny B]

Bad news here and there

I went to my BOL for a few days and, things really melted down. I'll hit the highlights.
A good article explaining an inflationary depression.

https://www.zerohedge.com/economics/macleod-last-happened-was-1929-32

Keep in mind that Bernanke confessed that the FED caused Great depression one. He claimed that the FED caused GD 1 because it did not pump in enough money. What do you expect from a jewish central banker? The FED pumped in lots of money but, ONLY into the upper loop. SAME as this time. Pump the money into the banks and wait for the economy to recover.

Bank Crisis Hits India - 'Bank Stops Functioning, People Crying Outside Bank Branches'
Boris Johnson's Plan To 'sabotage' The EU's BudgetIf Brexit Is Delayed
He's going to veto the EU budget.
Brexit - Tusk Accuses Bojo Of 'Stupid Blame Game' As No. 10 Signals Talks About To Collapse
As Hong Kong ATMs Run Out Of Cash, Central Bank Steps In To Prevent 'Pubic Panic'
If they use their smart cards, they can be tracked everywhere.

US Railroads Are Already In Recession With No End In Sight

Global Air Cargo Rates Continue To Plummet Hit Four Year Low
Just an inconsequential; blip.
Stephen Miller Exposes The Deep State As 'A Collection Of Permanent Bureaucrats Enmeshed Inside The Fed Govt'
I already copyrighted the term "blob State"
Paul Craig Roberts is fairly old but, now believes that he will live long enough to witness the complete collapse of western Civilization.

https://www.paulcraigroberts.org/2019/10/04/a-witness-to-the-collapse/

$10 Oil - How Far Could Oil Prices Fall IfWe See A 2009 Style Crash?

Oil Prices Tank On Global Recession Fears

The Fed's Latest Bailouts Are More Proof Of Big, Bad Times Just Ahead
Saudi needs $85 a barrel to meet domestic policies.

https://assets.weforum.org/editor/large_i_StU-d-4IC384P0cf2ZPNHrrdC3Oqxy_eq3zAkKhrM.JPG

US Financial Suicide - The Budget Deficit Rises 26% In 1 Year Under Trump As Federal Spending Spirals Wildly Out Of Control
Regulatory capture insured that no banker would be left behind. The State is fast going broke.

https://onenewsnow.com/science-tech/...d-like-ai-tool
"They" are going to watch EVERYTHING.
Saturday Humor: New Facebook TOS Includes Compulsory Conscription Into Zuckerberg's Army

https://www.zerohedge.com/technology/saturday-humor-new-facebook-tos-includes-compulsory-conscription-zuckerbergs-army

AI is chewing up more white collar jobs.

https://www.zerohedge.com/technology/dramatic-change-ahead-robots-are-coming-200000-us-banking-jobs

Misc headlines

Pigs can get REALLY mean.

Get ready for more and more violent storms and crop loss.





Those women effed it up badly.
Sweden will teach immigrants to have sex with Swedish women
Right,,, at the point of a knife.

Just wait til the Provo company shows up.

The Dems specialize in corruption to get wealth.


Regulatory capture

https://aheadoftheherd.com/Newsletter/2019/The-Later-United-States-Empire.htm

[Danny B]

Notes from Armstrong

Armstrong always has something important to say. Here is one post that you really should keep in mind for the future.
"reading about money shortage and hoarding. Would it be good for US citizens to hoard also? Is there any difference in hoarding dollars or gold and silver coins?"
"ANSWER: In order for gold and silver to be a medium of exchange, it requires the general population to accept that. The older generations know what a silver quarter or a $20 gold coin might be. However, the younger generation does not. Paper dollars will still be best to hoard for every day use until about 2022. At that time, we will have to reassess the climate of the monetary system."

[
Italy today launched new debt in US dollars instead of euros in hopes of attracting dollar investors

https://www.armstrongeconomics.com/market-talk/market-talk-october-8-2019/

QUESTION: Sir,
Given the liquidity crisis and the problem to arrive from Europe, I have a question for us Europeans:
when you are talking about Europe and failures to come, you mean:

1. euro zone countries ONLY?
2. EU countries which still hold their currency (eg. Romania)?
3. what about the UK?

"ANSWER: The policy of a bailout will be carried out by the central bank. Those members of the EU who are NOT in the Eurozone will fair much better than the Eurozone banks. This is one reason countries should NOT join the euro at this time.

However, there will be risks for non-Eurozone banks deeply involved in derivatives. They will probably have exposure that can lead to losses emerging from the Eurozone which is rejecting a bailout policy. "
So, is a bailout "rejected" OR "carried out"

https://www.armstrongeconomics.com/world-news/banking-crisis/the-risks-are-in-the-eurozone-banks-but-beware-of-global-contagion/

https://www.armstrongeconomics.com/world-news/banking-crisis/risk-banks-bailouts-conflicts-in-laws/

The take-away from all this is; when problems hit, the bank management will be completely blindsided.

Armstrong, "The precious metals Desk at JP Morgan Chase on September 16, 2019, was criminally charged by the U.S. Department of Justice with being a criminal enterprise for approximately eight years in its manipulation of the prices of gold, silver, and other precious metals. The head of that desk and two other precious metals traders were charged with racketeering under the RICO statute which was originally passed to target organized crime."
There are roughly 100 ounces of paper gold for every ounce of physical gold. The movement against the gold-price manipulators ruins a very high risk of blowing up the paper-gold markets. When this finally happens, There will be huge craters where New York and London are now located.

China has cracked down on it's people FAR beyond anything that George Orwell could have imagined.

https://www.armstrongeconomics.com/world-news/civil-unrest/hong-kong-anti-mask-riot-will-this-become-a-worldwide-contagion/

https://www.armstrongeconomics.com/armstrong-economics-upcoming-events/world-economic-conference/wec-tickets/

Great Depression one started in Austria. Bank managers have no understanding of what debt-traders do. When the crisis starts, they will all be completely lost and, close the banks. The contagion will spread around the West in just a few hours. There will be no chance to do cash withdrawals.

[Danny B]

Armstrong,,, more speedbumps

For quite a few years, the U.S. dollar was backed by gold. This was a way to buy confidence. More importantly, gold-backing acted like a governor on the sovereign bond market. This, in turn, made it much more difficult to start wars that had to be financed up-front. As the gold backing melted away, the wars financed by credit spread around the world.
Gold backing thus served 2 purposes. Of primary importance was the prevention of credit bubbles to finance wars. The secondary purpose of creating confidence in the currency was secondary. When everybody went off a gold / silver standard, confidence in currency levelled out. Gresham's Law made sure that no single currency could be gold-backed. The economy needs a transactional currency. If a superior currency is hoarded, it isn't available for trade. A gold backed currency would be used as a store of value instead of a transactional device.
Bonds are a different story because they are not used for transactions.

For many years, the German Mark was very strong even though Germany had NO gold. So, what truly makes a currency strong?
Armstrong argues that the strength of a currency is dependent on the skills, work ethic education and GOV restrictions.

https://www.armstrongeconomics.com/armstrongeconomics101/economics/culture-workforce-are-key-to-the-value-of-a-currency/

So, within a given economic sphere, fiat currency is OK. Since all States try to do competitive devaluation, this argues for gold-backed bonds. The BIS demands that ALL settlements between States are settled in gold. This prevents State "A" from printing up fresh Money to pay State "B".

OK, the strength of a currency is dependent on the education and skills of the workforce. What if that workforce is shrinking?

https://econimica.blogspot.com/2019/10/how-low-will-us-births-go.html

At the same time, automation is making much of the workforce redundant.
Electricians are now making 6 figure salaries. You can't find an electrician or plumber in Germany. everybody wants to sit at a desk and, not get their hands dirty.

Armstrong; "General Electric Co announced it was freezing its pension fund for about 20,000 U.S. employees with salaried benefits as the Pension Crisis continues to build. Its pension deficit is up to $8 billion."
"This is the cost of Quantitative Easing and lowering interest rates to artificially low levels. This is the collapse of socialism. All the promises are collapsing."
The private pension funds are about $380 billion in arrears at funding their in-house pensions. The PRIVATE pension fund shortfall has NOTHING to do with socialism.

https://www.armstrongeconomics.com/world-news/pension-crisis/ge-pension-crisis-escalates/

Armstrong, "The interesting thing is as revenues decline in these state, they raise taxes and enforcement to make up the short-fall which in turn then send more people out. If a retail store sees a recession and sales decline, they run a sale to entice people to buy. The government is incapable of proper management. This is like a recession comes so the store doubles its prices to make up for the decline in prices. Duh?"


Graham should go to the front lines and, make a stand.

Both South Africa and Zim have a huge population but, severely degraded infrastructure.

But, nothing like that here at home.

They can join the homeless camps.


The main part of this gold deposit will yield one gram per ton of rock. Imagine all the energy spent to get just one gram.

So, how much longer will this all be "quiet"?


Rense;
Robin Hood In Reverse - US Billionaires Paid Lower Tax Rates Than Working Class In 2018 In Latest Blow To Capitalism
Communist UN Facing Cash Crisis - Warns Staff Could Go Unpaid In November

[Danny B]

too much &quot;money&quot; in all the wrong places

In Sweden, The Central government mandated to bring in tons of immigrants with no possible employment prospects. The Central government mandated that the municipal government pay for the invasion. The municipal government is now broke.

https://www.armstrongeconomics.com/international-news/scandinavia/sweden-how-bad-can-it-get/

Apparently, the Canadian government is on a hunt for additional taxes and fines.

https://www.armstrongeconomics.com/world-news/taxes/canada-368-fine-if-your-phone-is-even-visible-in-your-car/

"How bad is this going to be (Europe), and how does this compare to 2008?"
"ANSWER: The answer is very bad. The structure of the Eurozone is an absolute disaster. It is promoted as a single country, but it lacks everything that stands behind a currency. Just look at the tariffs starting between the USA and the EU. It is IMPOSSIBLE to negotiate a trade deal with Europe because each country can veto any deal, proving this is not a single country, and thus there is no substance behind the single currency. This is why I say Brexit is the only way for Britain to survive."
"If the US had to seek the approval of all 50 states before it could do any national policy, nothing would ever get done."

"The only way for Europe to survive is for the Eurozone to actually collapse. Then each country could negotiate for itself without a veto from another over something irrelevant to their economy.

If the Eurozone were to survive, each country must surrender all autonomy to Brussels on everything retaining only local culture and laws. Brussels is trying hard to make it the United States of Europe, but the first thing that must go is the refusal to consolidate the debts and end the bail-in policy. Anything shy of that is playing with fire."
consolidate the debts ; means; take Germany's 1 trillion account surplus and, use it to pay off the debts of the lazy countries like Portugal, Italy, Greece, and, Spain.
Tell me that this idea isn't socialism writ large.

https://www.armstrongeconomics.com/international-news/europes-current-economy/europe-how-bad-can-this-get/

ah yes, government finance.daily average turnover daily average turnovernvestment-grade bond funds saw inflows of $1.840 billion, while junk bond funds posted outflows of $1.500 billion (from Lipper)
So, junk bonds had a $1.5 trillion outflow. That should bring a lot of them down.

https://creditbubblebulletin.blogspot.com/2019/10/weekly-commentary-what-heck-is.html?spref=tw

fund current expenditure[i]"

https://www.youtube.com/watch?v=uRpt4a6H99c

https://www.goldmoney.com/research/goldmoney-insights/monetary-failure-is-becoming-inevitable?gmrefcode=gata

News on developments in electric cars.

https://www.autoblog.com/2019/10/07/hunsable-electric-turbine/?yptr=yahoo

https://www.zerohedge.com/energy/dyson-ditches-electric-car-project-admitting-it-can-never-be-commercially-viable

[Danny B]

Kunstler

Hyper-unreality (shudder)
https://kunstler.com/cluster****-nat...reality/#more-'

https://kunstler.com/cluster****-nat...rd-rain/#more-'

There is increasing talk about civil war. Keep in mind that Civil War one was caused by taxes.
Abraham Lincoln said war was over taxes, not slavery - al.com
https://www.al.comWar of 1812 was strictly an attack by England to bankrupt America and force open the economy to big European bankers. Andrew Jackson resisted.
English born Richard Lawrence shot Jackson but, did not kill him.

Eventually, the European bankers got control of the American economy through the Federal Reserve. They have siphoned off many $ trillions and fomented many expensive wars.

[BroMikey]

Phase 1- Writing on the wall

[VIDEO]https://www.youtube.com/watch?v=cK7Shgw72aE[/VIDEO]

[Danny B]

Competitive devaluation,,, gold,,, crypto

Mikey, I rarely watch the X-22 report because they don't demonstrate enough technical understanding / proficiency. I don't know if they just don't have it OR, they simplify things to keep in a time limit. You just can't lump together financial instruments.
A fiat currency note is a bearer bond of zero (time) maturity. Fiat currency is NOT going to go away. With the proviso that electronic money does not replace it. The State would VERY much like to see full electronic money to supply unlimited tax power. The State just can't help itself. Given unlimited tax power, the State would foster unlimited wealth transfer. This would be effective communism and, would destroy wealth creation.
Trump seems to be pulling away from the saturated facial recognition that would make unlimited identification & taxing a reality.

X-22 seems to make NO differentiation between bonds and currency. A bond can have a maturity out to 100 years. A currency is a transactional instrument. A bond is nominally a store-of-value. You can't lump them together. No transactional currency can serve as a store of value. BUT, because of a loss of confidence in most world currencies, the dollar is now serving as a worldwide store-of-value instrument. A store-of-value currency will go into hiding and, deprive the economy of a transactional instrument. The FED has responded to this potential problem by flooding the world with fresh $100 notes. This does not cause deflation of the value of the note because there has been no deflation of confidence in the dollar.

A gold backed / denominated bond can go into hiding and, that isn't a problem. A gold-backed currency isn't truly gold backed unless it is gold convertible. Since the State can't help but print, all the currency would soon get converted.

Automation fosters unemployment. Unemployment fosters social unrest. Every currency dominion is going to try to avoid unrest and chaos. Every currency dominion is in competition with every other currency dominion. We saw that in the late'30s. Germany was too productive and too efficient for France and England to compete. Worse yet, Hitler had kicked out the European banks and, injected money into the economy for actual work. He squeezed out the speculators.
Churchill; "Germany doesn't want a war but, we will force one on her."
Churchill; "WW II could have been avoided but, the bankers wanted it"
So, the West sided with the jewish Bolsheviks and attacked Christian Germany.
In the '60s, Churchill commented, "we butchered the wrong pig."

As automation increases, unemployment / chaos increases. As the government takes on more debt, It's finances become more perilous. This all shows up in the bond market. Currency is an entirely different story because is a zero-maturity note. It never trades at a discount. The "people" could do without bonds. They could never do without a currency. Barter is too limited. Imagine trying to barter with Exxon for a tank of gas.

China is over a barrel right now because of food shortages,,, especially pork. Wasn't it fortunate for America that swine flu wiped out Chinese pork producers.
China is in a dealing mood now.

Jim Willie claimed that; after the reset, international claims will be settled in gold. He said that America would have to lease 10,000 tons of gold from China.
Here is a collection of Articles from Armstrong on the sovereign debt crisis.

https://www.armstrongeconomics.com/category/world-news/sovereign-debt-crisis/

https://www.zerohedge.com/markets/central-bank-issues-stunning-warning-if-entire-system-collapses-gold-will-be-needed-start

https://www.zerohedge.com/markets/qe-people-endgameand-gold-will-see-it-coming-first

Morgan Stanley Makes A Stunning Observation: 28% Of The US Population Has FICO Score Below 650
J.P.Morgan Warns About The "State" Of The American Consumer
"Dear Jay Powell, How Stupid Do You Think We Are?" Monetary Failure Is Becoming Inevitable
...the consequences are unthinkable for the authorities.
Retail Investors Are Acting As If A Financial Crisis Is Just Around The Corner
IRS Adds Question On Crypto Usage To New Income Tax Form Draft