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Capital flows out of control
Peak oil; " World petroleum production will exceed consumption by an average of 1.7 million barrels per day (mb/d) in 2015, " Oil Bankruptcies Hit Highest Level Since Crisis And There's "More To Come", Fed Warns | Zero Hedge
This problem should be re-named, "Peak Bankruptcy". Oil is headed for $ 20 a bbl.
Job ProgramsChristmas Then? and NowWhy Erdogan is Terrified Over Prospects of Russian Dialogue With Kurds
"You also know the Fed has been going around warning banks that their models are wrong" "The Fed can see that negative interest rates have FAILED to work. Even QE has not worked in Japan or Europe. This alone disproved that the idea of increasing money supply will cause hyperinflation."
Armstrong makes a very good argument that capital flows control the economy. Globalism has greatly influenced the volatility and magnitude of capital flows.
GOV made lots of promises to lots of people. It looks like those who rely on SS and interest income are going to get a real screw job. http://armstrongeconomics-wp.s3.amaz...risis-2917.jpgBlog | Armstrong Economics | Forecasting the World
Puerto Rico is in default, https://www.yahoo.com/news/puerto-ri...211247012.html
U.S. GOV pays very well; http://www.cheatsheet.com/money-care...-compare.html/
"The International Monetary Fund last week made a big push to position its SDR currency as a replacement for the US dollar. The US Congress finally (after 5 years foot-dragging) approved IMF voting reform, diluting G7 power, after which the organization announced it was doubling its money to 477 billion SDR (US$660 billion) from 238 billion SDR (about $330 billion)."
OK, so they just doubled it with a keystroke. How much confidence does that inspire? "Somebody apparently was not pleased because, immediately after this announcement, French police pressed criminal charges against IMF head Christine Lagarde.
"The last IMF head, Dominique Strauss-Kahn, was arrested on trumped up rape charges and dismissed from office when he tried to push the SDR as a US dollar replacement. The CIA was behind that operation, according to CIA sources. Let us see if Lagarde does any better."
"The real reason for this rate hike was to protect the no-longer American US Dollar, not the US economy. In any case, the rate hike was a failure in that the dollar fell instead of rising. Long term interest rates also fell, meaning the market expects deflation and not the supposed inflation the rate hike was supposed to stop.
The US government finally agreeing to dilute its power at the IMF while the Fed raises interest rates are probably connected to US corporate government efforts to stave off bankruptcy. In other words, as a condition for additional funding, the US was forced to hand over de facto control of the IMF and pay more interest to foreigners who own US dollars.
The fact the US sent B52 bombers over Chinese territory last week was also almost certainly connected to high level, secret, negotiations to keep the US corporate government afloat. " http://benjaminfulford.net/
From 2008 to 2015, the Fed purchased over $4 trillion worth of bonds to stimulate growth in the economy. To sterilize the vast sums of money that would otherwise circulate throughout the economy and cause price inflation, the Fed pays an above-market interest rate of 0.50% to banks on reserves, or digital cash, held at the Fed. Currently, banks are holding $2.5 trillion at the Fed and are paid $34.5 million per day in interest.
The FED prime rate was set at 0--.25%. The FED raised it to .25--.50% BUT, when it was at 0-.25%, it only floated up to .13%. There was NO DEMAND. The FED gave the banks $2.5 trillion and kept them at the FED. "would otherwise circulate throughout the economy and cause price inflation" BUNCHA BS. So, the FED created trillions of digital dollars and kept them in their digital basement so that they could justify giving the banks $34.5 million a day. This is soon to double. Banks don't lend their reserves, they create new money with your signature. "Assuming the Fed raises rates four times‑-once at each of the meetings that are accompanied by a press conference--payments to banks at the end of 2016 would amount to $103.6 million per day."
So, we pay the Treasury,, the treasury pays the FED,,, the FED pays the banks. NONE of these entities creates anything of any value or social use.
"Not only is the Fed a creature of the Financial markets, it is beholden to the markets. For some treasury durations, the Fed became the market.
Unfortunately, it's not just the Fed.
Global Crisis Coming Up
Global imbalances have never been worse.
The Bank of Japan is the only market for Japanese government debt.
Read more at http://globaleconomicanalysis.blogsp...sSPFxXQ7VG4.99
As Armstrong said, it is always corrupt GOVs that crash the system.
Peak oil; " World petroleum production will exceed consumption by an average of 1.7 million barrels per day (mb/d) in 2015, " Oil Bankruptcies Hit Highest Level Since Crisis And There's "More To Come", Fed Warns | Zero Hedge
This problem should be re-named, "Peak Bankruptcy". Oil is headed for $ 20 a bbl.
Job ProgramsChristmas Then? and NowWhy Erdogan is Terrified Over Prospects of Russian Dialogue With Kurds
"You also know the Fed has been going around warning banks that their models are wrong" "The Fed can see that negative interest rates have FAILED to work. Even QE has not worked in Japan or Europe. This alone disproved that the idea of increasing money supply will cause hyperinflation."
Armstrong makes a very good argument that capital flows control the economy. Globalism has greatly influenced the volatility and magnitude of capital flows.
GOV made lots of promises to lots of people. It looks like those who rely on SS and interest income are going to get a real screw job. http://armstrongeconomics-wp.s3.amaz...risis-2917.jpgBlog | Armstrong Economics | Forecasting the World
Puerto Rico is in default, https://www.yahoo.com/news/puerto-ri...211247012.html
U.S. GOV pays very well; http://www.cheatsheet.com/money-care...-compare.html/
"The International Monetary Fund last week made a big push to position its SDR currency as a replacement for the US dollar. The US Congress finally (after 5 years foot-dragging) approved IMF voting reform, diluting G7 power, after which the organization announced it was doubling its money to 477 billion SDR (US$660 billion) from 238 billion SDR (about $330 billion)."
OK, so they just doubled it with a keystroke. How much confidence does that inspire? "Somebody apparently was not pleased because, immediately after this announcement, French police pressed criminal charges against IMF head Christine Lagarde.
"The last IMF head, Dominique Strauss-Kahn, was arrested on trumped up rape charges and dismissed from office when he tried to push the SDR as a US dollar replacement. The CIA was behind that operation, according to CIA sources. Let us see if Lagarde does any better."
"The real reason for this rate hike was to protect the no-longer American US Dollar, not the US economy. In any case, the rate hike was a failure in that the dollar fell instead of rising. Long term interest rates also fell, meaning the market expects deflation and not the supposed inflation the rate hike was supposed to stop.
The US government finally agreeing to dilute its power at the IMF while the Fed raises interest rates are probably connected to US corporate government efforts to stave off bankruptcy. In other words, as a condition for additional funding, the US was forced to hand over de facto control of the IMF and pay more interest to foreigners who own US dollars.
The fact the US sent B52 bombers over Chinese territory last week was also almost certainly connected to high level, secret, negotiations to keep the US corporate government afloat. " http://benjaminfulford.net/
From 2008 to 2015, the Fed purchased over $4 trillion worth of bonds to stimulate growth in the economy. To sterilize the vast sums of money that would otherwise circulate throughout the economy and cause price inflation, the Fed pays an above-market interest rate of 0.50% to banks on reserves, or digital cash, held at the Fed. Currently, banks are holding $2.5 trillion at the Fed and are paid $34.5 million per day in interest.
The FED prime rate was set at 0--.25%. The FED raised it to .25--.50% BUT, when it was at 0-.25%, it only floated up to .13%. There was NO DEMAND. The FED gave the banks $2.5 trillion and kept them at the FED. "would otherwise circulate throughout the economy and cause price inflation" BUNCHA BS. So, the FED created trillions of digital dollars and kept them in their digital basement so that they could justify giving the banks $34.5 million a day. This is soon to double. Banks don't lend their reserves, they create new money with your signature. "Assuming the Fed raises rates four times‑-once at each of the meetings that are accompanied by a press conference--payments to banks at the end of 2016 would amount to $103.6 million per day."
So, we pay the Treasury,, the treasury pays the FED,,, the FED pays the banks. NONE of these entities creates anything of any value or social use.
"Not only is the Fed a creature of the Financial markets, it is beholden to the markets. For some treasury durations, the Fed became the market.
Unfortunately, it's not just the Fed.
Global Crisis Coming Up
Global imbalances have never been worse.
The Bank of Japan is the only market for Japanese government debt.
Read more at http://globaleconomicanalysis.blogsp...sSPFxXQ7VG4.99
As Armstrong said, it is always corrupt GOVs that crash the system.
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