Economic pressures

[Danny B]

This peabrain actually used the word "realistic"
IMF walks out of Greece bailout talks | Business | The Guardian

The problem with all that free money is that there is no legitimate place for it to go. The world is sliding DOWN to a global-mean wage. All that free money flows into productivity gains even though aggregate consumption is falling. Wages have been static since about 1980 but, prices have gone up. The free money MUST flow into mal-investment.
China is a poster child for mal-investment. Their excess steel capacity EXCEEDS the total steel capacity of U.S. plus Europe.
The world’s worst investment bubble will burst soon - MarketWatchNo kidding,,, consumers have maxed out their credit.
Policy of Debt and Destruction | A Scientific Economic Paradigm ProjectThe boneheads completely ignore aggregate consumptive power in a country that has outsourced too many jobs.


Everyone knows that Andrew Jackson killed the central bank. They almost killed him. He is rightly given much credit for this. The current central bank put his image on the $ 20 note as revenge.
Armstrong;
"When Andrew Jackson shutdown the Second Bank of the United States, ending central banking, that begun the age of Wildcat Banking with every bank issuing their own money. That led to the collapse in banking"
"Andrew Jackson unleashed the Sovereign Debt Crisis of the 1840s as states issued debt to try to bail out banks and then defaulted. The period led to civil unrest and killing immigrants on the street of Philadelphia, as people blamed the Irish for taking their jobs and causing rising unemployment."
"The period was especially rough for the economic recession following the dissolution of the Second Bank of the United States"
Andrew Jackson unleashed the Sovereign Debt Crisis
states issued debt to try to bail out banks and then defaulted.
The States tried to bail out the banks BUT, it was Jackson's fault for the collapse. The U.S. treasury was authorized to issue gold and silver coin of exactly specified weights. If somebody lost their a$$ because they tried to use unregulated, unbacked paper money from the banks,,, that was Jackson's fault???
Private Money | Armstrong Economics

Edit; "and that is simply unacceptable to Brussels and also to Germany, where economy minister Sigmar Gabriel has given up all pretences that this is about Greece and not about Spain:"
Yep, Spain is next in line.

http://www.zerohedge.com/news/2015-06-12/greece-refuses-blink-eu-says-noncompliance-not-option

[Danny B]

September party

October is when the U.S. bond market collapses but, there will be some excitement leading up to that event in September.
7 Key Events That Are Going To Happen By The End Of September

[Danny B]

Germany had all that money and nothing to do with it.Greece had spent 50% of it's history in default. How could it's bonds be riskless? All that money sitting in banks in Frankfurt was sorely tempted by the high interest rates in Athens. The bankers turned a blind eye to the risk because they believed that their derivatives erased the risks. When the nominal value of the derivatives surpassed a hundred trillion,,,,, and later a quadrillion, the risk became apparent, again.

https://www.youtube.com/watch?v=Zvl9N9GdraQ

Re-edit Greece says that it is willing to cut back to free up $ 400 billion by cutting military expenses. The IMF says NO,,, NO EFING WAY. The war mongers won't allow any reduction in their pound of flesh.
Europe Offered Greece A Deal To Meet Its Obligations By Cutting Military Spending. The IMF Said No Way.

[Danny B]

Capital isn't the same as riches

Everywhere you look people and institutions are looking to accumulate enough capital that they can stop working and live off the proceeds or interest from their capital. The CAFR1 site shows that American GOV institutions have socked away MANY $ trillions. CAFR1 Home Page
Pension, insurance and investment funds look to accumulate enough capital to avoid diminishing their principle. Everybody wants to live off interest income and avoid working. The machines are doing most of the work anyway. BUT, that income has to come from somewhere.
Yanis;
"It contains an academic and mathematical "proof" of his thesis, plus empirical data to back it up, which is that capitalism leads to the rich getting richer and the poor getting poorer at a rate where the return on wealth (the risk-free income received from savings, investments, wealth and capital without doing any work and without touching the principle) amounts to a third of GDP and the total liquidation value of that wealth grows to six times GDP.

In other words, one third of all of the productive output of the global labor force goes to service the consumption of the non-working capitalists, and the remaining two-thirds goes back to the labor force. "

Corporate Japan is sitting on $ 70 trillion. Corporate Japan sits on 70 trillion nest egg -- and sits and sits- Nikkei Asian Review
U.S. GOV agencies ( 47,000 ) are sitting on $ 200 trillion,,, or so. The rich are sitting in $ 21 trillion. Super Rich Hide $21 Trillion Offshore, Study Says - Forbes
This capital is represented as debt notes. Only workers with salaries can create the wealth AND consumption that pays off these debts. We see endless claims to all these hundreds of $ trillions of wealth. How is a debt note wealth

"In short, production and growth depends on material or physical capital. And while capital is a form of wealth, a great deal of wealth is not a form of capital; i.e. it is not an input into any production process generating hitherto non-existent commodities. "
Without salaries and consumption, most wealth is just a chimera.FOFOA: February 2015
SO,,, what does the law of supply-and-demand have to say about the recently created $ 200 trillion in new "wealth"?Russia, China, MMT And Gold Against US Dollar And Military Hegemony – An Interview With Michael Hudson
SO, while the rich may very well get RICHER, by sucking out every penny, they have impoverished the majority. The VERY rich are holding piles of debt notes and / or shares in companies that depend on consumption. They currently believe that their huge piles of debt notes have great value BUT, they own the machines. Human labor is diminishing,,, machine labor is increasing. Will they put a labor tax on the salaries of their machines? As long as capital is a huge pile of debt notes, it needs a large, vibrant economy to survive.

[Danny B]

Mandated profits but, no prosperity

Purchasing power drops,,, corporations try new schemes to make a profit. Big Pharma is one of the major backers of the junk food industry. It's an intelligent corporate decision to create markets for your products. Produce more unhealthy people. They ship tainted vaccines to create pandemics and ,,, more demand for their products. They forced obamacare for more guaranteed profits.
They are forcing the TPP to ensure more profit. They can sue GOV if they don't receive their expected profits.
Big Pharma Revealed As Puppetmaster Behind TPP Secrecy | Zero Hedge
This is the fascist business model where GOV mandates what you must buy.

It ignores the fact that profits are falling because consumption is falling due to shrinking wages relative to prices. Corporations want GOV to mandate and insure their profits. In the long-term, GOV only has the wealth that it's citizens have.
If corporations draw from GOV more than the "people" have, GOV goes broke. GOV prints up faux wealth but, this has a short life span. These entities create all kinds of paper profits but, there is no wealth.

https://hbr.org/resources/pdfs/comm/fmglobal/profits_without_prosperity.pdf

The fascist business model depends on GOV granted monopolies. It can't compete in a free market. The eventual collapse of the State brings the collapse of the fascist business model. Big Pharma spends $ billions to get monopolistic privileges but, it all eventually blows up.

[Danny B]

Nobody wants Greece to stay

The IMF recently walked out on debt negotiations in Greece. The IMF represents the dollar and the Euro is the "pretender" in waiting for the crown of "reserve currency". No surprise that they walked out. The ECB represents the Germans. The Germans know that Greece will never be able to repay. It is now obvious that the demanded $ hundreds of billions will never be generated in an economy saddled by austerity. The populists have taken over in Spain and it is only a matter of time before Spain leaves. The Germans can see this clearly now.
Shortly after the Euro currency was imposed / introduced, some very important Germans sued the German GOV claiming that the project could never work. The Germans can easily look back at their arguments.
The Eurocrats had originally planed to force the missing fiscal union when the unavoidable currency union breakdown came. New insights prove that even a fiscal union won't cure the imbalances between European States.
The Germans don't want to be the ones who called, "time" on the Euro project. They are forcing Greece to default so that they can then leave with a minimum of guilt. The latest meeting lasted 45 minutes.
Greece and creditors fail in 'last attempt' to reach deal - Yahoo News
Everybody has been making impossible demands to ensure that Greece defaults.
The Europeans have FAR more important things to take care of at the moment. America is moving heavy weapons into States bordering Russia with a mind to push Europe into a war that will forever alienate them from Russia. Europe in one "false flag" away from widespread war for American and British bankers.

[Danny B]

Backdoor QE,,, treasury dumping,,, Texas

The FED buys U.S. Treasury securities. They are forced to by FED GOV. BUT, their internal portfolio rules place a limit on how much they can hold in portfolio. They have now run up against this limit. They have instituted currency swaps with several countries and these countries buy the U.S. treasuries with their new-found riches. Those nations are Japan and the BLICS: Belgium, Luxembourg, Ireland, Cayman Islands, and Switzerland.
None of them have much in the way of dollar reserves but, they hold $ 818 billion in U.S. treasuries . The FED sends them truckloads of digits and pixels and they buy treasuries. Japan does it under pain of death for their leaders. Cayman Islands is a British front.

You can see from this graph that most States are dumping U.S. GOV debt.

http://goldseek.com/news/GoldenJackass/2015/5-28gj/1.jpg

The USGovt and USFed have conspired as a Ponzi Scheme, using digital counterfeit to purchase perhaps all net new USTreasury debt since July 2011. The States who export to us have been doing "vendor financing." We have used all their hard earned money to attack States all over the world who try to slip out of the dollar noose. They have had some success at converting maturing treasury notes into gold. They would like to quit financing our war machine before it destroys the world.
The non-western domestic markets are maturing to the point that they don't need western consumers. The vendor financing will stop.

"expanded QE will be exposed, certainly not to continue as the system enters the next phase of failure. The climax will be two-fold, in the arrival of the Gold Trade Note, and the launch of the New Scheiss Dollar. The current USDollar will soon find a shut door on trade settlement, as Eastern nations will demand proper payment for products sold in good faith. When you go to the hardware store to purchase a hammer, they will not take fancy toilet paper in payment at the cash register."
We will have VERY widespread shortages. They will probably cut off oil exports to us. Jim Willie says that we will get a new dollar that will be over-printed and unacceptable to trade partners.
Everybody will want gold and silver as opposed to paper.
Exported QE Travesty: Meet the BLICS

http://www.zerohedge.com/news/2015-06-13/writings-wall-texas-pulls-1-billion-gold-ny-fed-makes-it-non-confiscatable

Jade Helm is a practice run for stealing Texas' gold.

[Danny B]

You need to go out and spend more

FED GOV and the bankers just can't understand why consumers are not spending the way they used to spend. The Burning Platform lays it out in great detail why we are not spending as before.

Part of the lack of understanding from the district of corruption may be due to the fact that they are rolling in cash.
Map resizes each state proportionally to real GDP - Business Insider
One out of every eleven people in the beltway is a lawyer. It may appear that they can get blood out of a stone. I'm hoping that they all get the chance to try,,, sucking on stones.

[Danny B]

Oh, so they need a sharp fall in wages to compensate for a fall in sales. It never occurred to the feces-for-brains that the fall in sales might have something to do with a fall in wages.
Finland's Problem Is The Same As Greece's; Neither Should Be In The Euro As Krugman Says

Fascist corporatism has perfected the (black) art of regulatory capture. Currency wars are obviously and strictly a mechanism to drive down effective wages. Every country wants to be a net exporter but, by definition, this is impossible. So, the fascists continue to drive down wages all the while wondering why people won't spend.

[Danny B]

Liars, fools and silver

You can well imagine that it is very difficult to separate the truth from the fiction in economic forecasting. The parties that are trying to extend the current party are lying and obfuscating everything. Academia knows where it's bread is buttered and it parrots the party line. Evidently, it even believes the party line. The endowment fund at Harvard lost many $ billions. They refused to even consider the alternative views provided by the Mises institute even though the institute correctly predicted the Russian and Japanese meltdowns.

Everybody is banging their own drum.
FOFOA is focused on gold and says that silver will reach 50 cents an oz. He neglects the fact that China was on a silver standard for centuries. Germany was on a silver standard until the Comstock lode was discovered. Silver has always been a monetary metal.
FOFOA: Silver Dollar

I asked FOFOA about Jim Willie and Walter Burien (CAFR1)
He said that Jim Willie was super paranoid and Burien was a convicted criminal. He attacked the messenger and had nothing to say about the message. I asked Jim Willie about CAFR1. He said that it was beyond the scope of his newsletter. $ 250 trillion and he didn't consider it.
I asked Burien about Willie's claims. He didn't reply this time, though he had previously. I have to read everybody,,, liars and fools included.

The gold to silver ratio has historically been about 16--1 It may very well go back to that.

http://www.free-bullion-investment-guide.com/images/fbig_gold_to_silver_ratios.jpg

If gold reaches the purchasing power in the future equal to $ 54,000 of today's purchasing power, most people will be left out. An asset is worth what others will pay for it. Silver will be very much in demand.

[Danny B]

Defaults and population reduction

Armstrong speaks about GOV default. Since socialists write the history books, they leave out the fact that all government eventually default.

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

He also speaks about "rotation" of crashes. Sometimes it's in stocks,,, sometimes in private bonds,,, sometimes in public bonds. 50% of municipalities are bankrupt.
In this vid, he proposes that stocks will also crash in October when the Treasury bonds collapse.

https://www.youtube.com/watch?v=sFDbl7G9QdQ

As we automate more and more of our economy, we produce more and more candidates for socialism. Meanwhile, the corporate world steers legislation towards a fascist economy. The fascists ignore consumptive power and focus on productivity. The socialists focus strictly on consumption and have no particular scheme for production.
GOV is a non-productive parasite that is controlled by the fascists but, is beholden to the socialist tendencies of the voters.

The FED has no army and is held in thrall to the GOV. The FED chairman has repeatedly stated that monetary policy has reached the end of it's effectiveness and must be supplanted by fiscal policy. The FED prints pixels and FEDEXs them the the BLICS countries. They buy treasury bonds. The fiscal policy that the CB demands would be a reduction of GOV spending,,,, like what is prescribed for Greece.

5.4 million starved to death during Great Depression I when 44% of the population worked on the farm. About 45 million are now on food stamps. GOV has spent our treasury on wars. They (WE) are broke but, reluctant to cut loose the safety net. The safety net will most like rip asunder when the sovereign bonds crash. The FED holds about $ 4.5 trillion of debt from the treasury. GOV may very well tell them to go pound sand.

America is working hard to send LOTS of weapons to all the countries surrounding Russia. Russia has their doomsday bomb. It is a standard fusion bomb(s) clad in cobalt. Those who really control the world (five eyes) may want a reduction in population BUT, the Russian bomb would exterminate ALL life on the planet. It would take 7 years.
Soviet Doomsday Device Still Armed and Ready | WIRED

The world controllers may very well crash the West down to the dirt to accomplish population reduction and avoid extermination. We shall see.

[Danny B]

ATM collapse?Guy Who Manages $112 Billion Sees No Bond Buyers - Bloomberg View
Much of our investment system depends on one investor being able to find a greater-fool to buy his losing investment. Fools with money may be hard to find.

[Danny B]

Starvation Is The Price Greeks Will Pay For Remaining In The EU -- Paul Craig Roberts - PaulCraigRoberts.org

Here is an article stating that GOV would never confiscate gold or silver because they can always devalue the dollar to free up money. The article is total BS because our trading partners are going to demand trade settlement in gold. https://www.goldrepublic.com/news/gold-confiscationActually, there are quite a few people who are willing to borrow money today just to support their image.That is going to make quite a big splash when it implodes.

http://www.bestmindsinc.com/documents/BMI_SellingOut_IgnoringCorruption_forthe_TemporaryWealthImage_June16.15.pdf

[Danny B]

Rape of Ukraine, stalled rape of Greece

Ukraine has LOTS of farmland. The IMF is going to rape them good. Even though they can't pay, the IMF is still loaning them money. Same happened to Greece. Greece isn't following the plan and has a plan of their own.
"Greek Parliamentary Debt Committee Declares All Debt Illegal"
Greek Parliamentary Debt Committee Declares All Debt Illegal - The Automatic Earth
The European Union was originally a coal and steel union. The socialists gradually morphed the agreement into a political union. The various participants were "allowed" to vote and vote until they got it right.
BUT, GOV is heavily infested with lawyers. Being parasites who contribute nothing to the economy, they need to create some sort of niche where they can't be pried loose. GOV is the perfect place for them. it is close to impossible to pry out a GOV employee.
The bureaucracy of the European Union was overlaid on top of the State bureaucracy. This reduced GDP by 20% in every victim country. MORE GOV,, more lawyers and less money in your pocket. The facts prove it. The lawyers and bureaucrats are sucking the life out of Europe. http://ei.marketwatch.com//Multimedi...5-2257ba3ca026Europe’s secret fear about Greece - MarketWatch

EVERYWHERE you look, GOV and bankers are preparing for the crash. They are desperate to convert their thin-air money into tangibles. That is why the hurry to take over Ukraine, Greece and who ever else they can suck up. The very system that we use and live in is fatally flawed. The petabytes of information that flow daily have hastened the crash. In 1934 or so, Eccles, the head of the FED said that a debt currency can NOT work. Well, it worked for a while. That time is swiftly coming to an end.

New post;

[Danny B]

The FED has always insisted on a 2% inflation targetThe system necessarily wipes out labor and eventually reaches a point where it "makes" all it's profit off of speculation. It prints "money" and buys up all the assets.... a HUGE disconnect. Labor is left out of the equation BUT, only temporarily.
"As we know, the false value or the illusion of wealth creation ended with total wealth for 90% of the US falling by 40% (a staggering statistic that remains unimproved even 6 years on). The thing to understand is that this was entirely predicable and was predicted by Ron Paul in a 2001 speech to Congress (and Peter Schiff, and many others subsequently). The point being the system was fatally flawed from its very birth and so its death was, in fact, absolute and predictable. There was no uncertainty as to its fate, as the system design necessitated its own end. I will show that inherent within our monetary system exists a similar fatal flaw and predictable end."
The Fed’s Fatal Flaw: A Predictable End | First Rebuttal
Like the Eurozone agglomeration, the FED was on an inevitable path to destruction. The banks create the dollar but, NOT the interest.
From 1944 to 1964, we floated along by having a lock on manufacturing for the world. This brought in enough wealth that we were able to carry the interest burden. In the mid-60s, we became the welfare-warfare state. We over-printed the dollar and gold left the treasury at the rate of 100 tons a week in the summer of 1971.
We would have crashed then but, we offered the Saudis a carrot and a stick.
The petro-dollar was born and this scheme brought in enough wealth that we avoided collapse. We enforced the petro-dollar to keep the money rolling in BUT, that enforcement was very expensive.
Our national debt is very close to what our war debt is. This is, of course debatable because David Walker, the head of GOV accounting said that he couldn't possibly certify that the budget was honest.

Wealth was constantly being sucked out to service the debt. When we crashed into low-wage competitors, wealth left our shores. Wealth has gone down enormously but, the financial system is resisting a similar shrinkage.
The system was flawed from the beginning but, we papered over the shortcomings by pillaging other States and the environment.
51% of Americans receive a check from GOV and the pillaging just can't keep up with the drain.
Manufacturing is gone. The petro-dollar is gone. We stole the Saudi gold in London and they are attacking. Our cannibalistic central banking system needs a constant influx of wealth. In lieu of that, we are reduced to creating currency instead of wealth. Our fate was sealed with the inception of the FED but, we got constant reprieves by pillaging other countries.