Economic pressures

[BroMikey]

London bridge will fall down. This is the plan, sink the ship

and then come to the rescue to those who humbly bow.

[VIDEO]https://www.youtube.com/watch?v=5sEOl5FFM10[/VIDEO]


[VIDEO]https://www.youtube.com/watch?v=hUiG2UQKhic[/VIDEO]

[Danny B]

Only a moron would believe that supply and demand could be independent for any length of time.
"Keynes wanted a new super-currency, which he called the bancor. Instead the world got the dollar and the "full faith and credit" of the US government expressed through her considerable gold reserves. While central banks could swap dollars for gold at $35 per ounce, there was no effective restraint on the issuance of dollar-money and credit. It allowed America to finance the Korean and Vietnam wars without resorting to domestic taxation. When those dollars-for-export returned home in the late sixties, the run against dollars and in favour of gold began, leading to the Nixon Shock, when the US finally consigned the Bretton Woods Agreement to the dustbin of history."

The Bancor would also have been subject to over-issuance.
" In this respect the lesson of the Lehman crisis is that flooding the system with money and guarantees of more money actually works. Gone will be any pretence of monetary discipline, gone will be any pretence of higher interest rates, and gone will be any constraint on the issuance of yet more debt. A crisis of malinvestment has become a crisis of the financial system, and will soon become a crisis of currencies. We can be increasingly certain that debt will be extinguished not by debtors reckoning with creditors, but by the debasement of money, and that this outcome becomes the unstated objective of policy makers."

https://www.goldmoney.com/research/analysis/economics-of-a-crash?gmrefcode=dollarc

This article talks about hyperinflation being inevitable. Not sure about that. You have to get the money into the system to have hyperinflation. There is a distinct possibility that we will get a second currency. THAT is where hyperinflation will make it's appearance.

"House Budget Committee Chairman Tom Price, a Republican from Georgia, emphasized the need to reduce federal spending."
"But Democrats such as Chris Van Hollen of Maryland, the ranking member of his party on the budget committee, disagreed. He indicated that more spending is the way to attack the deficit, "
The following is taken from comments....

Yet, our so called experts on economics and fiscal policy; Greenspan, Volcker, Summers, Geithner, Ortzag, Bernanke, Krugman, Mankiw, Reich, Williams, Kudlow, Stockman, Laffer and Moore, never tell us about the implications of Nixon abandoning the gold standard and ushering in the fiat currency/dollar standard. This subversive decision protected the monopoly banks have on the creation of debt-money. When a nation becomes monetarily sovereign it never needs to tax, borrow or enforce austerity to fund its budget. It is free of the financial markets."
CBO Report on National Debt Paints Grim Picture

Ellen Brown and Steve Keen write quite a bit about this.
This is a subject that I am not clear on. Socialism kills incentive to work. Capitalism provides incentive to work. If everything is automated, do we still need incentive to work?

[wayne.ct]

What is money?

There are actually several ideas or meanings or definitions of money. The term has been redefined and misused so that people can become confused and deceived. I always question what people mean when they use the word. That way I know if I should trust what they are saying.

So, here is an article that encapsulates what I think "real money" is all about.

Chapter 22: The Mirage of Inflation

Here is one paragraph from the article that I thought might intrigue you enough that you might read the article.

In 1972, a collection of articles by F. A. Hayek was published in Great Britain: A Tiger by the Tail. It was on central bank inflation. The tiger today is much larger. It is much more dangerous. The world is still on the tiger's back

[wayne.ct]

The role of human nature

Human nature can be defined as what people do when confronted with a particular set of circumstances. It is what happens at the individual level when things change in the external environment. (all in my opinion, of course)

So, when some things happen, people spend less. When other things happen, people spend more. Other people try to influence what people buy or where and how people save. Other people collect statistics and some people tell lies because they are paid to tell lies or perhaps they simply repeat lies that they have heard or read. This is all human nature.

These actions, the things people do, are based on thoughts and fears that each person has which are, in turn, based on heredity, upbringing, education and intangibles such as faith and belief.

My point is this: You don't always know why people do what they do but you can observe the patterns and trends as things change. I think that if I look at what I see around me then I can get a feel for the direction and perhaps make some good decisions. But, on the whole, people are going to do whatever they do, and there are millions of people out there that I have no control over. The powers that be don't really have control either, as hard as they try. They don't control things and their loss of control will be devastating. Enough people are seeing what is happening to shift the "center" and the evidence is growing rapidly. More and more people will start to see it, too. It is a wave that is bigger than any single person. So, deal with it as it is. (and good luck!)

By the way, this supposed fact is not true. quote: "In further fact, recessions invariably are cured by financial "stimuli," i.e federal deficit spending."

[BroMikey]

All very flashy and wordy. All of the intricate details of a high

level business man that helps him to move his big chunk around

so he can drag in some free money off interest rates.

Sorry boys but from the perspective of your local street rats who are

looking for a job, all of your reasoning is bliss.

The truth is the truth and will always be the truth. Americans have

been taught to be lazy. Farmers work 3-5 months of the year.

Good ole GMO promises that they are now stuck with keeping

them out of the fields because weeds are no longer a problem.

Never mind that the crop kills everything that eats it.


People retire at age 50 collecting 2000-5000 per month for the next 40

years. Sure the Gov/Fed is cleaning up. But the work force is kicked

around, they have been for the last 30 years, they are the baby boomers.

Our fathers collected for 40 years with Dad retiring at 50.

Boasting in the background (You should have done like me)


No rhyme no reason.


The children like myself who hired into the same jobs at GM auto companies

were released every 3-5 years so no accumulated time could accrue.

Then rehired to use up our youthful strength with no intention on

caring about our ending. Don't I sound like a sissy? All I can do

is whin huh? Just keep calling for war among yourselves.

The appeal to the high mind will have everyone looking down

their noses against one another ready to see them removed

as programmed by the media. Them dern useless eater ain't as

good as me. look at me and my genius. That's it puff

yourselves up and look down your noses fool.

Never mind me I rant like this all of the time.

This is certainly nothing against the owner of the thread, whom

I have spoken with in person. He is a good guy.


Just one example of many, showing no equality in the land.



Of course your youth and your strength is far more valuable than

everyone else, isn't it, fool. I am talking to the high minded.

This spirit of inequality has already murdered our country, all

that is left to witness in the violent rage to follow.


It is coming.


As planned, sex and drug rings rule and have ruled the cities for 30 years,

this way people can still live. This country is already gone to hell and I hope

those of you who are very old are not around to see the end. The tanks in

our cities today will be used against the citizens because a large part of

them are used to having everything their way and have also learned to

live an illegal existence.

I know people who sold drugs on up into their teens and twenties

then took that money and made it grow other ways. After 30years

they have created a good flow of capital. Their beginnings always

effected their business behavior being outlaws at heart.

Some I grew up with turned to internet call girl services and fotos.

Most of them went to jail at one time or another.

They look so cleaned up and like normal folks when you meet them.

The point is very few work and the ones who do, are carrying the ball

for free. If the boomers are permitted to draw a normal income the

system will fall over dead in a few years.

So our system is out of control and this has been an intentional plan.

Like Wayne said, these young people are not the young people

of their fathers generation.

This generation as been taught to lie, cheat, steal, to get their way

do drugs, have wild parties, live high times and still find a way

to GET money without working.

If a man does not work, he should not eat, this is a common sense

principle that our nation has abandoned along with the God who said it.

The cities are already raging. I called Mom 5 years ago before she

moved out of Flint MI and the houses were all boarded.


The cities are all shot up and spray painted, the cities doz them under.

the people turn to whatever makes them enough money to survive.

So all of your words about what newspapers say is just silly talk.

The people alive today have been conditioned to kill each other.

The programming is destroying the will to work. Punch a card, be a

nurse or a city office worker, put in your 20 years and ride the system.

The rest are sentenced to death on the streets.

The guns go off all night long and nobody knows why or what to do.

The newer psychotropic drugs like Flakka and many more are bringing

the real nature of humanity on display. The military boys are given

these drugs by our Gov.

If people are this messed up, how can they work? What are they

working for?

I am sorry boys, it's over. The Fed has tried to extend this system

as long as they could but when no one is used to working it falls.

Pensions at 50 years making 3000 dollars for 30 plus years?

How long do you this this is going to go on?

Revolving credit cards still rule the desperate for the easy good

life of pleasure seeking.

Americans are not the same anymore and this is the key to the

destruction of a nation. When people seek pleasure from the time

they get up as young men till night fall and are unwilling to work

yet collect full benefits or wages, something is going to break.

This system has been setup to fail. Our young men who are willing

to work can not chose their desired occupation, they are confined

to Gov/state and local jobs run by power hungry control freaks who

hate THE HOME OF THE BRAVE AND LAND OF THE FREE IN GOD WE TRUST!!

THEY are using those who are willing to work and their energy to further

remove the American dream.

Sodom and Egypt is the mind of the youth in the USA.

She will do what she has to do to live. I have helped

men out of the 40 degrees below temps, they stayed at my

house. I couldn't let them freeze. I cry everyday for the

hopeless.


https://www.google.com/search?q=miya...k6eFOGAwHHM%3A












[VIDEO]https://www.youtube.com/watch?v=6kYDAuu6qj4[/VIDEO]

[wayne.ct]

I can feel the passion in your words

Compassion for the homeless – Sep 6, 2007 | nealo.com

[Danny B]

[Danny B]

The Great Fall of China | The Economist
While the CBs can create quite a bit of fresh cash, deflation can run a $ trillion a week. So, how do you stop a drop in prices,,, easy, just add more money.
The article is very muddy. They mix price deflation and money-supply deflation together. No can do.
"Citigroup's chief economist Willem Buiter - that a global recession is imminent and nothing but a major blast of fiscal spending financed by outright "helicopter" money from the central banks will avert the deepening crisis. Faced with China's 'Quantitative Tightening', the economist who proclaimed "gold is a 6000-year old bubble" and cash should be banned, ?
Citigroup Chief Economist Thinks Only "Helicopter Money" Can Save The World Now | Zero Hedge
Keynes called gold a barbarous relic. Now, cash has earned the same moniker; The Financial Times Calls for Ending Cash, Calls it a ?Barbarous Relic? | Liberty Blitzkrieg

GOV is going to take all the pension money and convert it to GOV bonds,,,, just like Argentina. They can't have you holding cash or gold. Doug Ross @ Journal: IF YOU LIKE YOUR 401(k), YOU CAN KEEP YOUR 401(k): Obama Labor Dept. Sets Stage for Nationalizing Retirement Accounts

[Danny B]

https://en.wikipedia.org/wiki/Say%27s_law

Nice words; propensity and desire to consume. Total BS. Nowhere is it mentioned that many people have a desire to consume but, they offer nothing in return. With a growing economy, they were able to do a steady extraction. Socialism focuses on creating demand. Say said that demand would create supply. People in hell want ice water.
We have an empty toolbox and a useless guidebook.

[Danny B]

The many faces of deflation

Americans lost their jobs and were no longer able to consume. The oil industry previously "contributed" about $ 450 billion a year to the financial industry pot. This recently turned negative to the amount of minus $ 167 billion. The drive down to the global mean wage resulted in lost wages to about a billion Westerners. Their wage loss resulted in lost sales and lost income for the Easterners. What goes around comes around.
As various States lost aggregate income, they liquidated some of their currency reserves to meet bills. In short, they presented U.S. Treasury bonds for redemption.
" Of course a reduced role for the market means a greater role for the PBoC and that, in turn, means FX reserve liquidation or, more simply, the sale of US Treasurys on a massive scale. "
There is lots more in the article but, it essentially shows why the world is dumping Treasuries. Why The Great Petrodollar Unwind Could Be $2.5 Trillion Larger Than Anyone Thinks | Zero Hedge

Armstrong said that U.S. Treasury bonds would crash in October. I'm guessing that would result from a redemption stampede. I believe that bonds for redemption are presented to the primary dealer banks for cashing out. The bonds were bought with earned trade-dollars. Some years ago, the FED gave the banks a few $ trillion of excess reserves. Will the primary dealers cash out the bonds with this free money,,, dunno.

Since the toolbox is now seen to be empty, there may be a run on CBs everywhere. Dunno. Central banks can’t save the markets from a crash. They shouldn’t even try | Business | The Guardian

Neo cons, neo liberal Neo bull$hit.
" Global wealth, rather than being spread equitably, as neoliberal proponents promised, has been funneled upward into the hands of a rapacious, oligarchic elite, creating vast economic inequality"
Chris Hedges: The Great Unraveling - Chris Hedges - Truthdig
A fair amount of the article is untrue but my focus is the unworkability of so many BS economic ideas.
Bonds and currency are debt notes. Vast economic inequality has made it so that bonds can not be redeemed. When any note becomes worth less or worthless, this is deflation. When a deposit of oil is worth less, this is deflation. The West had massive wage deflation but the Cbs try to fight off deflation of credit (debt notes). The TBTF banks were saved at the expense of the U.S. bond market.
Greece couldn't pay private banks so, European CBs rescued the debt from default. Same as TARP.
The banks were happy to screw the taxpayer so that they could get out from under all the bad loans they made. They put the State debt markets in great danger. This, in turn, puts the entire credit and debt system in great danger. The banks couldn't pay so they transferred the bill to the taxpayer. The taxpayer lost his job and can't pay. The mega danger from globalization is that contagion would reach all corners of the globe. When trust and confidence are destroyed, credit is destroyed. When trust is gone, only gold remains.

[wayne.ct]

Paper money

All sort of bonds, notes, paper money, contracts, derivatives, futures, options, etc. are things that can be bought and sold. There is a fancy technical term for that, but I don't want to be inaccurate. (Fungible?) My point is that the true value of such paper is what someone is willing to give for the article in an unforced, "free" trade, i.e. a free exchange. ALL such things will collapse together until the strongest of them rise to the top of the heap. What will those strongest items be? I can't say for sure, but I think shares in an honest ethical small business may be among those strong items. Other than that, commodities will retain value best. Lucky for most people, they can easily buy a bag of sugar, cocoa or coffee. When the winds change direction, it will become easier to see. The winds are changing.

[Danny B]

ISIS and the Austrian school

The winds are indeed changing. Reportedly, we have moved from "risk on" to "risk off".
The Pentagram, CIA and MOSSAD created ISIS because the U.S. military couldn't afford a full-on assault of Syria. The military refused because a low-budget attack would produce so many casualties. ISIS naturally has a great propaganda presence.
All the toolboxes and all the bogus economic theory have blow up. Austrian economics is a system that works very well. It does NOT allow great power to GOV.
"The video that was "made by ISIS" and which is really just a 55 minutes crash course in Austrian Economics - which is now apparently equivalent to terrorism - can be seen below, at least until the website administrator removes it because it is too evil, and anyone caught watching its evil anti-Fed message deserves to be droned."
The murderous SOBs at ISIS endorse a gold standard so, obviously, a gold standard is evil. OBVIOUSLY,,,,, Keep repeating this until you are a true believer.

http://www.zerohedge.com/news/2015-08-30/austrian-economics-equivalent-terrorism-thanks-latest-islamic-state-gold-standard-pr

How very strange. There seems to be a correlation between bank rescues and humongous debt.
$60 trillion of world debt visualised

[Danny B]

Law Enforcement: Arrest Officials Hiding CAFR Tax Surplus Billions, Trillions | EconomyMichael Hudson’s New Book: Wall Street Parasites Have Devoured Their Hosts -- Your Retirement Plan and the U.S. Economy
Crony-capitalism, aka socialism for the rich is killing the host. The financialization of the medical industry is just one of many rip-offs. The doctors aren't getting rich,,, just the bankers. Medicare Costs May Jump 52% in 2016 | Armstrong Economics

[Danny B]

https://www.wsws.org/en/articles/201.../jobs-a15.html

Brazil, Chile , Columbia,,, they're all crashing. "Brazil Throws In Towel On Budget; Citi Compares Fiscal Outlook To "Bloody Terror Film" Brazil Throws In Towel On Budget; Citi Compares Fiscal Outlook To "Bloody Terror Film" | Zero HedgeThe Dying Institutions Of Western Civilization - PaulCraigRoberts.org

[Danny B]

Screwing Peter to save Paul

The latest bubble burst in 2008. People stopped spending. The FED manipulated interest rates down to (effectively) zero. This removed part of the cost of many things because finance costs were lower. Things got cheaper and people spent a bit more. BUT, all the institutions that depend on interest income were screwed. ZIRP is necessarily very temporary. The banking sector created hundreds of $ trillions of derivatives that essentially locked in ZIRP. There are roughly $ 440 trillion in interest rate swaps.
Huge sectors of investment were screwed by ZIRP. The free money that was originated to create ZIRP flowed into all kinds of mal-investment. Both the interest rate swapsThe "Great Accumulation" Is Over: The Biggest Risk Facing The World's Central Banks Has Arrived | Zero Hedge

Only 3 U.S. companies are rated AAA credit. It is claimed that a rise in interest rates would bankrupt 50% of U.S. companies,,, dunno. FX reserve drawdowns put huge upward pressure on interest rates.
If the FED does not raise rates, outflows rise even faster. If the FED does raise rates, much of the economy is bust or insolvent.They too needed unending growthThey can print til the cows come home. It won't work.ALL currencies have been manipulated. It never works in the long run but, idiots never learn.NOT true. The end of consumption is the cause of China's problems.