Economic pressures

[Danny B]

Thrashing an empire in the marketplace

Post WW II, America had a lock on manufacturing. We raised our standard of living way up. We lost that lock and our standard of living is going to move way down. oftwominds-Charles Hugh Smith: Welcome to the Future: Downward Mobility and Social DepressionCould that be ISIS?Morally bankrupt; could that be hillary, jeb, et al?

http://www.zerohedge.com/news/2015-10-04/lawrence-wilkerson-american-empire-deep-deep-trouble

Apparently, our empire is in deep do-do.
The American worker lost his job in the global job market. Commodities are a world market also. The lowest-cost oil producer sells his oil. Those with expensive oil go ka-boom. http://www.zerohedge.com/news/2015-1...-simply-vanish

[wayne.ct]

[aljhoa]

While private sector workers pay in 8% and receive around 40% of their salary,
government workers have a different deal. They pay in nothing, and retire with pensions up to 95% of their final salary.

Maybe the solution is to have everyone work for the government.



Al

[wayne.ct]

They already do

Maybe the solution is to have everyone work for the government.

They already do, they just don't know it. What do you think the IRS is all about? They are the boss and your only revenge is to not give them any satisfaction. Have no income and pay no taxes. Spend your FRNs for tangibles.

[Danny B]

currency insurance, Chinese style

The FED claims that it has a toolbox full of tools. They have recently discovered that their toolbox is full of stale dog turds. Federal Reserve paper on the replicability of economic studies - Business InsiderOK, so what do you buy if you dump dollars?They dump foreign currencies and buy Chinese Yuan. http://wolfstreet.com/2015/10/06/rise-of-yuan-fails-to-dent-dollar-hegemony-but-slams-euro/
The largest retirement fund is moving into junk bonds while they are crashing. They can not get their money out of the system so, they risk it all.
All previous crashes of the reserve currency happened while there was an alternative strong currency,,, NOT this time. There is gold and silver though.
The problem is that the money supply includes credit. What happens if credit crashes along with the dollar?

http://www.zerohedge.com/news/2015-10-06/how-developed-markets-become-banana-republics-debt-much-easier-way-gather-consensus

It's going to get ugly.

[Danny B]

Keynesian economics and the demographic crash.

There is a growing appreciation for just how important population growth is to the economy. Keynesian economics is based on uninterrupted growth. What happens when population growth stops?
Repost; the FED-finds rate is tied to the growth, or lack of, for the core population. Demographics - The Real Opponent The Fed Has Been Fighting For Decades | Seeking Alpha
Global annual population growth peaked in 1988 and is decelerating.
Forget Peak Oil - It's All About Peak Population Growth | Seeking Alpha
Japan is in the crapper and has the highest population loss. Why one map shows Japan as the biggest country in the world - MarketWatch
Italy too, is in serious trouble. Italy is below replacement in the birth rate.
The PTB may quash us down to poverty but, they can't make us have children.

[Danny B]

Nothing new

The IMF says that we are definitely going to crash. Ho Hum. Next financial crash is coming – and before we've fixed flaws from last one | Business | The Guardian
This cheerful writer has a prediction also, "The initial, unanimous answer was you can expect anywhere from 25 million to 50 million dead in the first 90 days. "
We Are Entering the Time of Financial Collapse Point-V the Guerrilla Economist | Economy
This is a good article about the growing disconnect between the rich and the poor. oftwominds-Charles Hugh Smith: When the Aristocracy Leaves the Commoners in the Dust, The Empire Is Doomed

[Danny B]

Dollar Dissonance And The Remonetization Of Gold | David Stockman's Contra Corner
The rest of the world REALLY wants to get rid of the dollar because we use it as a weapon so often. The US government just crossed the RubiconJP Morgan private banker: “We can’t make money anymore…”
The CBs shoved money (debt) into the financial system at the corporate level without any thought whether or not it could be repaid. Liar loans to corporations. Corporations over borrowed by $ 3 trillion and can't pay back. The coming defaults will make quite a stir. https://www.youtube.com/watch?v=RY5s1OcPa_U

[Danny B]

Is Quantitative Easing the Same as Printing Money? | Armstrong Economics
So, GOV just runs up more debt when debt is the problem.
Households cut back debt growth from 8.5 to 2.8. No, No, NO we can't have that. The financial sector cut back from 9.4 to 2.9. No,no,no.
GOV went from 5.8 to 9.3 http://static.safehaven.com/authors/saxena/39180_a.png
Calm Before the Storm? | Puru Saxena | Safehaven.com

[Danny B]

Taylor Camp, "John Wehrheim remembers the utopian community, rejecting materialism for the therapeutic power of nature, in a golden hue."
"Taylor Camp thrived as a community independent of any outside influence for eight years until in 1977, government authorities condemned the entire camp, evicted its residents, and set fire to the homes, gardens, churches and community schools, leaving little but charred ashes and beautiful memories."
Take a peek inside this magical 1969 hippie tree house village in Hawaii
Yep, escape the matrix and they burn you down.
Here are a few people that are more successful in Tofino. This family lives on a floating fortress of greenhouses in the middle of the ocean
You MUST spend big bucks or GOV will throw you off your land. "Camping" on Your Own Land is Now Illegal — Gov't Waging War on Off-Grid Living

[Danny B]

Hedge funds and carbon energy crashing

There are several things in the news that are interesting. Puerto Rico has already closed 100 schools. The hedge funds want then to close all of them,,, so that they can pay back the hedge funds. Hedge Funds Urge Puerto Rico to Close Schools, Pay Back $5.2 bn
Hedge funds lost $ 78 billion in August. Hedge Funds Suffering Record Losses Worldwide
There has been a radical crash in the carbon energy industry and the "climate change" people are saying that we need to slow that down or there will be major financial repercussions. How very wise of them. After coal investments, derivatives and hedges crashed through the basement, they are worried about major sectors of "stranded Assets". Norway is opening up a HUGE oil field. Iran is going to start 50 new projects. They have even found oil in the Golan Heights. Shift from fossil fuels risks popping 'carbon bubble': World Bank - Yahoo News

Here is a CEO who read that optimal happiness can be achieved with a salary of $ 70,000 SO, he pays everyone of his employees $ 70,000. The $70,000 Minimum Wage Experiment Reveals A Dark Truth
The truth is, the FED should have known better. Greenspan said that the FED is NOT independent. We can safely assume that GOV forced all the QE. Socialism just doesn't work if you run out of money.
Apparently, this has produced a negative feedback loop. http://finance.yahoo.com/news/story-...123615050.html
I don't want to leave out something from the stupid people. Households have $ 14 trillion in liabilities. Economists just can't figure out why they don't want to take on more debt. 94.6 million workers,,, NOT working might have something to do with it. http://www.businessinsider.com/savin...s-fall-2015-10
"result people saved less as they believed in their ability to spend money now and have enough for retirement."
"This, then, reversed, as expected, in the financial crisis and people started saving as asset prices declined. But the continued saving of consumers is the puzzle here for central bankers."
No kidding. Maybe it is because the financial crisis never ended.

[Danny B]

"Outweigh,, that sounds ominous. Dollar Death Sentence - The Daily Reckoning
The IMF says that currency wars "work". The World Bank says that they don't. The real fight to win the international currency wars - Telegraph
Tantalizing Stupidity and the Case for Gold
Read more at Mish's Global Economic Trend Analysis: Tantalizing Stupidity and the Case for Gold
Bernanke says that he is the smartest and the greatest, Credit Bubble Bulletin: Weekly Commentary: Courage to Print
Armstrong; REPLY: Yes, it appears our politicians on a global scale have degenerated to the worse state of incompetence. This appears to be the final nail in the coffin of Europe. The whole idea of Brussels is failing and this is why lawyers as politicians are dangerous. They do not have a clue as to how the economy or society functions. They try to write laws to command an outcome and never listen. Then on top of that, they will never admit a mistake. Once a policy is adopted, they will not change and this is the problem in motion for Europe.

There is just no way out because they will never admit this idea of one government is a total failure. Merkel & the Fate of Germany | Armstrong Economics
The only thing as bad as lawyers and psychopaths running the show is; ivory tower academics running the show.
A lot of well known investors have advised that you get out of the markets and go to cash. The new bail-in laws would allow the banks to confiscate the money of depositors. There is something like a $ quadrillion in derivatives, mostly held by banks. "Go to cash" sounds like a trip to the slaughter house.

Jim Willie said that energy derivatives and hedges were being bailed out to the tune of $ 1 trillion a month. NOBODY else will touch that topic. BUT, the latest chart shows a huge spike in the reverse-repos from the FED. This validates what he claimed. As more and more derivatives fail, how can the FED print a $ 100 trillion?
The Bundesbank is reporting a $ 9 billion loss. They were holding about $ 75 trillion in derivatives. How much of that went bad? Even Credit Suisse is reporting financial trouble.

[Danny B]

dumping EM debt

Emerging market debt is reckoned at about $ 14 trillion. There is a shortage of dollars worldwide to service this debt. HUGE defaults are expected. Mark Carney: Emerging market debt is the biggest risk right now. Mark Carney: Emerging market debt is the biggest risk right now - Telegraph
"China's Central Bank has started a global payment system which provides cross-border transactions in yuan. " ML-Implode News - China launches global yuan payment system
What happens if the EMs just default completely on dollar debt and start off fresh with the Chinese system?
Bankers typically and periodically pump up a huge credit bubble and then,,, cut off new credit. This causes defaults and the bankers grab everything. The EMs are outside the jurisdiction of U.S. courts. They could tell the hedge funds to go piss up a rope.
The FED pumped up QE and then cut it off. The hedge funds are lined up to take everything tangible from any country that can't service it's debt. Read, "Diary of an Economic Hitman" to get the full game plan. If they didn't cough up everything valuable, we sent in the military to screw the place up good.
The new Russian super-sonic cruise missiles and jamming system have proved themselves to be unstoppable. Iran is going to do a huge ground invasion. China is going in to Syria also. This is a huge object lesson. China and Russia are proving that they can give "cover" to any country that wants to escape the double whammy of the FED and armed forces. The Pentagram is paralysed. They say that they are Putin's "prison *****". A U.S. carrier left the gulf when Russian ships entered. Israeli fighter jets turned and ran when they encountered Russian jets.
Some of the more vocal fools in the district of corruption have called for war with Russia. McCain is catatonic. Obummer is paralysed.
If Russia can successfully thwart neo-con ambitions, dozens of countries will entertain the idea of doing a mass default on dollar debt.

German banks loaned money to Greeks. This is a civil matter for collection. The German GOV took over the PRIVATE debt and made it GOV debt. This allowed Germany to use GOV power to force the collection of debt. The banks shift loss exposure to GOV so that GOV can use military force to collect debts. America has long used military force to collect on bad private debt. If the Sino-Soviet powers can provide an umbrella of protection from America, everybody in the SCO will dump their debt. https://en.wikipedia.org/wiki/Shangh...n_Organisation

Armstrong was VERY correct in predicting that 2015.75 would bring great changes. The total thrashing of ISIS, CIA, MOSSAD in Syria will show the world that POX Americana is coming to an end. His model is, after all, a confidence model.
China does long-range planning where American politicians don't think past the next election. Russia, for the time being, has missile superiority. China has control of important shipping choke points. In Push for Power, China Seeks Control Over Global Trade ChokepointsEdit China Joining Russia In Syria Brings Risks Of World War - Investors.com

http://www.businessinsider.com/china-russia-brazil-others-dumping-us-debt-2015-10

The thing to remember here is; if they are dumping U.S. dollars, they will NOT accept dollars for continuing trade.
This is what Jim Willie has been talking about all along. The SCO includes a few billion people. They don't need to trade with Amerika. They have plenty of commerce without us. They will only trade for gold. That means that we will NOT have access to cheap oil.

[Danny B]

Here?s What We?ll Try ? And What Will Fail ? Next

Here is the same article but, with socialist leanings. They blame the crash on libertarian and anti-state policies. "The grip of libertarian, anti-state philosophies on the dominant Anglo-Saxon political right in the US and UK makes such intervention as probable as a Middle East settlement."
The world economic order is collapsing and this time there seems no way out | Will Hutton | Comment is free | The Guardian

A few people are starting to notice that all is not well in the economy. Citi's Willem Buiter: we're about to go into global recession - Business Insider

[Danny B]

Fiscal union will never fix a dysfunctional eurozone, warns ex-IMF chief Blanchard - Telegraph

https://agenda.weforum.org/2015/10/why-we-shouldnt-borrow-money-from-the-future/

In widespread deflation, it is this psychic wealth that disappears.