Economic pressures

[Danny B]

The biggest party is about to kick off

Mankind moved from the agrarian society to the industrial society. He no longer has much of a niche in the industrial society. Maduro told the Venezuelans that they better start growing their own food. If a society / economy is not inclusive enough, it will fail. No society can survive massive revolt and widespread death and destruction. A modern economy is built on credit and trust. Division-of-labor depends on honest money. Trust is essential.
Western man is NOT in a good position to revert to an agrarian lifestyle.

Argentina was the last big economy completely looted by rapacious bankers. They have struck in Portugal, Spain, Ireland and Italy. They are lining up to steal everything in Greece. The Looting Stage of Capitalism: Germany’s Assault on the IMF

America is coming up on the hit list of the bankers.
"Since October 1, 2011, the S&P 500 has risen 82% on the heels of a 0.75% decline in earnings."
"The U.S. Energy Industry has added so much debt that it took nearly half of all its operating profits to just pay the interest on its debt in 2015:" "the U.S. Energy Sector paid 86% of its total profits just to service the interest on its debt."
" This is nearly a 10% decline in U.S. oil production in less than a year." "While $5.1 billion of U.S. energy debt matures this year, $25.1 billion will mature in 2017."

https://srsroccoreport.com/the-next-big-crash-of-the-u-s-economy-is-coming-heres-why/

Armstrong, "But I realize that government is like water in a bathtub. There will be no place to hide. History teaches us that. So the question becomes, how fast will this be over? I follow our models. Once the plug is pulled, everything will go down the drain very rapidly. We spend tens of millions of dollars recreating the world monetary system to answer the question: how fast do governments die?"
"So while Rome lasted over 1,000 years, its monetary system collapsed in just 8.6 years. That was without internet, radio, or TV for communication."

https://www.armstrongeconomics.com/armstrongeconomics101/understanding-cycles/india-joining-cashless-society-pulling-the-plug-on-govt/

"Japanese Prime Minister Shinzo Abe warned his Group of Seven counterparts today that the world may be on the brink of a global financial crisis on the scale of Lehman Brothers."
"The Japanese Prime Minister Shinzo Abe failed in his attempt to have the G7 leaders warn of the risk of a global economic crisis "
That's GOV for you,,,, keep on pretending. Global Financial Crisis Coming - Japan Warns of "Lehman-Scale" Crisis At G7

http://pre03.deviantart.net/24a2/th/pre/i/2015/075/f/f/living_in_a_powder_keg_and_giving_off_sparks_by_mymelody95-d8m0q4c.png

[Ruphus]

The 3% down mortgage

As I stated a few posts before....

Wells Fargo Reintroduces 3% Down Mortgages | Zero Hedge

[Danny B]

Systemic collapse and killing the competition

David Stockman was a budget director and he really knows his numbers. The FED is hard at work trying to create 2% inflation. That is plan "A". The FED gooses all the numbers to show that inflation is lower than they want. Stockman re-calculates inflation using realistic metrics and shows that inflation is far higher than the FED claims; Losing Ground In Flyover America, Part 1 | David Stockman's Contra Cornerhttps://3.bp.blogspot.com/-s5fwqMjyt...2B21.39.46.png
So, what about wages?


The stock market is way up but, earnings are down. No reason to stay in stocks.
" What happened in 2008 with the Lehman Brothers failure event is currently underway with almost every single financial platform, structural entity, financial market, banking structure, and arena"
"the entire Western financial system has been lashed together, tied together, and connected among its many member parts. The main parts are the big banks, which use derivative contracts to lash themselves together. They believe there is strength in numbers, which is true to some extent. But the consequence turns out to be that all will fail at the same time in a cascade of insolvency marred by illiquidity while steeped in corruption and market rigging. The breakdown could be described as having begun in full force, in earnest power, at the start of this 2016 year. "

" No nation will be spared from the urgent nasty effects of being forced to achieve trade balance." Our $ 1.5 billion a day trade deficit will come to an end.
"One can combine the energy sector debt distress with the commodity derivative exposure, to see a systemic Lehman event on the near horizon. The many factors are lining up to force a systemic failure event, a massive financial crisis globally with numerous sectors in failure mode"
"The USGovt, led by fascists and advocates of endless war, are working feverishly with war and sanctions and bank pressures and undermined coalitions and and contract bribery and heavy propaganda to prevent the unification via trade between Europe and Russia, and between Europe and Iran. "
"It matches the attack and ruin of Fukushima by the Bush Crime Family, after Japan began work with China on a regional currency. "

"As Ron Paul has stated, one cannot blame capitalism for the current failure, since we have had almost none! He can take credit for the independent audit conducted on the US Federal Reserve itself in 2009. From the audit, it was learned that $23 trillion in near zero cost loans were granted to the USFed owners, by the banker cabal to itself."
The Next Systemic Lehman Event | Gold Eagle
Why The Euro Is A Doomed Currency | Gold Eagle

[Danny B]

Four Lost Decades: The Bumbling Incompetence Of The Power Elite | Zero Hedge

"Juncker has a very long history of supporting financial elites and big banks as Prime Minister of the tax haven and financial speculation center of Luxembourg from 1995 to 2013.
Simply put - Juncker is owned by the banks."
His Wikipedia entry Jean-Claude Juncker - Wikipedia, the free encyclopedia
"Farage continued, "but Mr Juncker said there can be no democratic choice against the European treaties, so there it is folks. It doesn't matter how you vote, which government you elect, these treaties are designed to be there forever and agreements by previous governments bind parliaments that come for years and years afterwards. And what it means is that the European project is in fact the very antithesis of the democratic principle"
The EU is the enemy of democracy and if Greece stands firm, the free world will applaud them - UKIP

The TTP and other agreements are an attempt to lock-in GOV deals that can't be negated by popular vote. This is simply a tug-of-war between fascism and socialism.
Focusing on incompetence, these self-styled elites have NOT taken into account automation and/or birth control. They are only catching on slowly to the fact that wind and solar power undercut the need for carbon energy. They wish us to be in the cities for better control. The collapse that they have engineered through incompetence will make the cities uninhabitable.
They create a invasion of immigrants to break social cohesion. The only cities that will survive will be the ones with some degree of social cohesion.
When Rome collapsed, the population fell from 1 million to just 25,000.
If a city can't support agriculture, it can't support people.

Their support for their cronies has placed grossly immoral people in control. The crash in morality will bring a crash in trust and commerce.

"As the elites scramble to preserve their legal privileges, the productive middle class that defined early America is staggering under an ever-increasing burden of taxes, fees, and other legal disadvantages. More and more, productive people are driven into poverty and a despair that could easily turn into rage.
The parallels between pre-Revolution France and today's America are clear."

https://mises.org/library/next-american-revolution-wont-be-first

Alexander Dugin: America is Righter than Trump and Lefter than Sanders, Facing Revolution (VIDEO) - Fort Russ

[Danny B]

https://www.superstation95.com/index.php/world/1384

Anonymous Hits New York Stock Exchange, World Bank, The Fed, And Vatican — Total Media Blackout

Education was cheap or free in Chile. The banks came in and financialized everything and made it VERY expensive. The result; "Artist named Fried Potatoes removed tuition contracts he says were worth up to $500m from private university and burned them "
Chile students' debts go up in smoke | World news | The Guardian

[Danny B]

Billionaire Gross: Jubilee Debt Relief as Prelude to New Global Economic Order :: The Market Oracle ::https://www.dollarvigilante.com/blog...ilee-year.html

Wealth management products are now investing in other WMPs It is critical to understand this.
The risk of a default chain reaction is looming over the $3.6 trillion market for wealth management products in China.

WMPs, which traditionally funneled money from Chinese individuals into assets from corporate bonds to stocks and derivatives, are now increasingly investing in each other. Such holdings may have swelled to as much as 2.6 trillion yuan ($396 billion) last year, 3.8%"
"everyone who rode the great bubble of 1994 - 2000 (including pension funds) soon reckoned 10%+ annual returns on equities was The New Normal, so expecting 7.5% - 8% annual returns seemed downright prudent."
Of Two Minds - Here's Why All Pension Funds Are Doomed, Doomed, Doomed

[Danny B]

Ah yes, wages. Our global competitors (and robots) have set the prevailing wage.
Forbes Welcome

There is lots more; Is This The Debt Jubilee? - DollarCollapse.com
Supposedly, Europe would be first in line. I would have thought that Japan would go first; Former BIS Chief Economist Warns of Massive Debt Defaults, Need for Debt Jubilee; Fingers Europe as First in Line | naked capitalism

I was travelling in Mexico back in the 80s when they did a currency change overnight. All of the Mexicans lost three zeros. They can NOT announce it to anybody. Obviously, the people at the top are given a chance to get out of a currency before the devaluation.
One percent of Americans is about 33 million. IF all of them knew about a jubilee ahead of time, they would all flee into precious metals, real estate and tangible stuff. This would price the 99% out of housing and food and other important stuff.
A jubilees would have to be done in secret AND in conjunction with helicopter money. There is no way that a new currency could be distributed efficiently in a couple of days. Everyone would have their account credited with X amount of dollars overnight.
CBs have injected $ 57 trillion into the economy with no effect for the producing sector. They know that they need a plan "B".
Bill Gross has bet against the entire credit system.
Socialism, the consumer economy and automation are crashing together like matter, anti-matter and poop.

There are some credible claims that the "Shemitah" will play a part in this; https://www.youtube.com/watch?v=pVShXvu6qo0

[Danny B]

The Debt Binge This Time—–The Corporate C-Suites Have Borrowed Trillions To Fund Financial Engineering, Not Growth | David Stockman's Contra CornerSeptember Jobs: Some Numbers Bubblevision Didn’t Mention | David Stockman's Contra Cornerhttp://www.alhambrapartners.com/2016...pathy-for-now/

The downward slide in wages for the Western world started in about 1970. Labor's share of GDP has fallen for several decades. The banks thought that this was great. BUT, as the rich took ever-more of the profits, they hoarded them rather than turning them over in the economy. The poor buy beans,,, the rich buy bonds. Bonds can only be repaid by the productivity and spending of the middle class. This has come crashing down.

The rich are creating financial instruments and "wealth products" that they have been selling to each other. There are no underlying tangibles to these wealth products so, when they are vaporized, there won't even be any smoke.

[Danny B]

India does not have a one-child policy.
The bitter truth is slowly starting to become obvious. An economy can't grow unless the population grows. Production and consumption go hand-in-hand. Blowing up goods and materials in endless wars to stimulate the economy is straight out of the Keynesian handbook. Importing raggedy-a$$ refugees to stimulate consumption is a losing game. You might stimulate consumption but, the destruction of social cohesion erases any possible gains. Import a passel of Pakistanis and Somalis and you end up with an economy like Pakistan and Somali.

China has ended their one-child policy but, won't see any effect for 20 years. Even then, the effect will be muted because the Chinese have gotten used to the idea of spending money on a better lifestyle rather than on a horde of kids.
The birth rate is falling in the developed world. Considering the overload of the environment, that is probably a good idea. The muslim world intends to conquer the Western world with the dick because they can't conquer it with the sword. The West is slowly waking up to this problem and will use famine to prune back the muslim world. Natural changes will prune back population in some States; 'Calamity is coming' as Pakistan struggles with climate change - Pakistan - DAWN.COM

The Western economies will collapse because credit growth has far outstripped population growth.

We voided the last vestige of the gold standard 45 years ago. That allowed unlimited currency expansion. That period (bubble) is coming to an end and will never come back. The high return on investment was paid for with funny-money.

http://image.exct.net/lib/ff021270746501/m/9/40643+-+TL-Bill+Gross+Investment+Outlook_June+2016+JID_exp+06.30.17.pdf

If we're not working, we can't afford manufactured goods.Huger

[Danny B]

Support the people, OR

GOV more-or-less recognises the importance of people to the economy. It opened wide our southern border to bring in more people. It subsides a LOT of people.
"Welfare paid more than the average pre-tax first year wage for a teacher in 11 states, more than the starting wage for a secretary in 39 states, and more take-home money than an entry-level computer programmer in the three most generous states.
The pre-tax wage equivalent for welfare recipients exceeded the median salary in the state in eight states. (That is far from 35 states.)
In 35 states, welfare paid more than a minimum wage job, even after accounting for the Earned Income Tax Credit, and paid more than $15 per hour in 13 state.

https://www.washingtonpost.com/news/fact-checker/wp/2015/09/16/is-welfare-the-highest-paying-entry-level-job-in-35-states-read-the-study-again/

51% of Americans receive a check from GOV and our unfunded liabilities amount to $ 212 trillion (Kotlikov).
There are economic pressures that demand a higher population growth.
There are fiscal pressures that demand a reduction in expenditures to support the population. There are environmental pressures that demand a lower population. The collapse of the credit bubble will mean that FAR less money is circulating in the economy. The collapse could possibly be managed to mitigate some of the worst effects. I don't trust GOV to do that.
Maduro told the Venezuelans to grow their own food. A serious collapse would mean that the cities are no longer viable.

[Danny B]

GOV has run out of both tools and money

After WW II, America had a huge economic surge and a baby boom. The baby boom has come and gone. http://www.pewresearch.org/files/201...youngOldUS.png
This is more-or-less true worldwide except for India. https://upload.wikimedia.org/wikiped..._1950-2050.png
"They" have manufactured a credit bubble to service debt that the shrinking (consumer) population can not service. This works for a while but, we gradually spend ourselves down. Our trade deficit is $ 45 billion a month. The same story is more-or-less true for Western Europe.
China has been doing vendor-financing. They don't want to rock the boat because they have a very shaky finance system. They have about 80 million empty buildings,,, 64 million empty housing units. The wages to buy all these buildings never appeared.
The whole world went on a debt binge. Then, the whole world discovered that nobody could pay off the debt. The Central banks pulled out their old, rusty toolbox of interest rate reductions. The tools no longer work with a falling population. BUT, this is the only toolbox they have.
ZIRP didn't do it so, NIRP is applied to the patient.
Both ZIRP and NIRP destroy capital.

Say's Law is immutable. When consumption falls, production eventually falls. The tools don't work so, they are applied even more vigorously.
oftwominds-Charles Hugh Smith: The Structure of Collapse: 2016-2019
Armstrong says that the U.S. dollar will be the last currency to fall. Dunno.
Boeing says that it will accept Euros for it's planes BUT, Russia is now building airliners.
The U.S. dollar was backed by gold. Later, it was claimed that the U.S. dollar was backed by the full faith and credit of the U.S. GOV. Still later, it was claimed that the U.S. dollar was backed by our manufacturing capacity. The dollar was actually "energised" by it's use for buying petroleum. That too, is fading. Socialism is very expensive.

LBJ kicked off modern socialism in the mid-60s with his "Great Society" program. 6 years later, gold was flowing out of the treasury at the rate of 100 tons a week. Nixon stemmed the flow but, was impeached by the London bankers when he burned them for 3700 tons of gold.
Socialism was later financed by our position as the reserve currency and the petro-currency. This is fading and there is nothing new on the horizon to subsidise socialism.
Many millions of Americans expect to be supported by the GOV. BUT, we have a GOV of the people, for the people and by the people. Not really but, that is the mantra. The people are broke.
GOV will print dollars until our trade partners refuse to accept them.

[Danny B]

Falling trade, falling employment, growing debt bubbles

Trade is lagging terribly and the economists blame it on a lack of demand. It didn't occur to them to blame it on a lack of jobs and earnings.

"Such extended weakness, then, as has been the case since the onset of the Great Recession means something more serious than a severe business cycle. Had the global economy continued to follow that prior baseline expansion, global trade would have been $30 trillion in 2015, not $22.4. That nearly $8 trillion shortfall explains a great deal as to why nothing works. And it only gets larger the longer this slump continues increasing the greatest cost there is, lost compounding: the baseline for 2017 jumps to $34.3 trillion while the OECD estimates trade will only total $23.6 trillion (and that forecast is typically optimistic, meaning that actual trade by the end of 2017 is very likely to be significantly less still). The world economy is therefore facing a fourteen digit trade gap.

"There is no currency war save one: the "dollar" is in a total war with itself, meaning everything will be a casualty at some point. The list of central banks falling victim grows bigger."

Indeed. Only now are we starting to figure the true economic costs of all that because the mainstream remains committed to the idea none of this is possible. To them, the world just needs a little more of the right kind of "stimulus", as if pumping the Hindenburg with more hydrogen would have gotten it safely to the ground after it had erupted in conflagration. The answer to great instability is not more of it, even if that "stimulus" were to actually be of the right type and category. The eurodollar system effectively ended on August 9, 2007, a fact the global economy only continues to confirm."
The Dollar Is In a Total War With Itself | RealClearMarkets
The world was built for that $34.3 trillion in trade"

China attempted to create / manage a command economy. Their market desires were severely out of line with world market demand. They went off the rails and there is no way back; http://www.nytimes.com/2016/06/05/op...path.html?_r=1financial bubble - NIRP Hits 10 Trillion Dollars 8 Times SubprimeDominic Frisby on Brexit: ‘Nothing will ever be possible again’ | WOW247
Trade fell because of global competitors. Simple and painful.

[Danny B]

storage of wealth.
The dollar was gold backed and this limited the issuance. The world outgrew the U.S. dollar as a store of wealth. The gold-backing was removed and issuance shot to the moon. This was especially advantageous to America because it could just print paper to pay for it's imports. Japan converted the profits from selling Toyotas into U.S. GOV bonds to store the wealth.
The world is just too rich and there is a big shortage of dollars. The world is out-growing the U.S. dollar. The dollar is at war with itself because there are just not enough and no other currency has the ability to absorb the huge (nominal) wealth.
Pox Americana doesn't want a return to the gold standard as a store of wealth because it would lose the ability to print confetti to buy everything.

JFK started printing U.S. notes backed by OUR 4 billion ounces of silver. The bankers bumped him off because they didn't / don't want any competitor for the FRN. They wanted unlimited currency expansion. We previously blockaded Japan (an act of war) and "staged" the SURPRISE attack at Pearl Harbor. The base commanded later testified to congress that "intelligence" knew when and where the attack would occur.
This was the same scenario that had worked so well the get America to go to war against Spain. (battleship Maine) , The Gulf of Tonkin, WMD here, there and everywhere.

It is a tried-and-true tactic that works very well. There is a lot of profit in war and the bankers wants it to go on forever. The 9/11 attack was rolled out for the same effect BUT, with a few added bonuses. Trash israel's competitors, the biggest bank robbery in history, the hidden liquefication of the $ 250 billion in bonds that were used to attack Russia, The unrolling of the police state, etc. The bankers are well motivatedLondon Bankers brought death and destruction down on,,,London.
Do you think that the hildebest has thought it through as to what the results would be to her (neocon) actions against Russia?
ClubOrlov: A Russian Warning

Everywhere we look, we see the programs of the leaders at complete odds to what the common man wants.
Rense-10,000 Black Africans A Week Invade Italy
Do you think that the average Italian wants this? F***ing marvellous. The chastity belt is making a comeback to prevent rape. Invader Sex Attacks Spur “Rape Protector” -ALERT: Whistleblower Andrew Maguire Says China Just Put A Huge Floor Under The Gold Market | King World News

There is just too much nominal wealth in the world for it to crowd into tangibles. "There is no greater manifestation of the wealth divide in the UK than land ownership. 70% of land in the UK is owned by fewer than 6,000 people. Yet these people are not paying tax on the land they own, they are receiving subsidy for it." Imagine if it got worse?
I posted this link earlier. This site lists it as an "attack page" https://www.wow247.co.uk/2016/06/02/...eu-referendum/

[Danny B]

http://media.peakprosperity.com/images/retirement-savings-chart.jpg

Grasshopper Nation: Planning For Those Who Aren't Prepared | Peak Prosperity
What is the future for members of a species that do not pay particular attention to self-survival? Just like Europe, we are sliding down; "After World War 2, America boasted 40 percent of global economic activity. Thirty years later that world domineering number had fallen to 23 per cent and last year was just 16 per cent of world output. "
You are being redirected...

[Danny B]

10 times the cost of personal welfare.

ALL the reliable indicators say, "would imply that the economy could enter recession as soon as the second half of this year."
When Will The Recession Start: Deutsche Bank's Disturbing Answer | Zero Hedge
OK, so the crash is unavoidable. EVERYONE is screaming that the FED is responsible for all of this mess. BUT,
"The net effect is that it is as if the Treasuries bought by the Fed didn't exist. But they do exist on the Fed's balance sheet. Technically, the Treasury must pay the Fed back one day. Until then, the Fed has given the Federal government more money to spend."
How Is the Fed Monetizing Debt?
The FED gets it's marching orders from GOV. A debt jubilee would cancel the debts from the U.S. Treasury owed to the FED
The FED may have the printing press but, GOV is stepping on the gas pedal.

There are a lot of smart people at the FED and many of them knew that ZIRP is always a trap. Well, GOV wanted to stimulate and GOV is severely lacking in brain power. There is NO POSSIBLE exit for the FED.
Why The Fed Is Trapped: A 1% Increase In Rates Would Result In Up To $2.4 Trillion Of Losses | Zero Hedge
The FED lowered the rates. The money flowed into mal-investment. If the FED raises the rates, it blows all the mal-investment. If it doesn't raise rates, it destroys all investment funds.

Sorry guys but, Aussie is going to tank as bad as all the rest. Time to go "bush" for a couple of years. 5 Reasons This Country Is In For Big Trouble | Zero HedgeCredit Bubble Bulletin: Weekly Commentary: Monkey with Money at Your Own PerilNaturally, you should trust everything that Goldman says. No kidding, when did they figure that one out?

"we are now 8 years into the fourth turning with at least a decade to go", http://www.theburningplatform.com/20...ou-are-here-2/