Economic pressures

[Danny B]

What goes up,,, must come down.
The IMF and BIS have been warning us all along; The Next Financial Crash. ?The Writing is on the Wall?. Don?t Say ?You Weren?t Warned? | Global Research - Centre for Research on Globalization

Jim Willie makes it VERY clear. America will change to a third-world country.
The Automatic Earth has a very good article on this subject. Read it twice,,, including some very astute comments. Deflation, Debt and Gravity - The Automatic Earth

The J.P. Morgan gold vault is the largest private gold vault in New York. They ran it out of gold and sold it off. Reportedly, it is connected by a short tunnel to the vault of the Federal reserve. Reportedly, Robert Rubin was responsible for the loss of America's gold. One could easily suspect that J.P. sold off the FED gold before they emptied their own vaults.

http://www.zerohedge.com/news/2013-03-02/why-jpmorgans-gold-vault-largest-world-located-next-new-york-fed

Executive Order for Your Gold - Gold Forecast - Silver Forecast - ETF Trading Strategies - ETF Trading Newsletter

Previously, the FED reported total dollars in circulation. They stopped reporting in 2006 because it cost too much to collect the information.
The End of M3 - Hiding the Truth About Inflation

Paul Craig Roberts has a plan / prescription for an escape / recovery. It's doubtful that the money powers will allow it to come to fruition.

http://www.paulcraigroberts.org/2015/08/05/prescription-peace-prosperity-paul-craig-robert/

[Danny B]

Europe?s Greatest Cover-Up Could Mean The Death Of The Euro [Vanguard FTSE Europe ETF, Proshares Trust II] | ETF DAILY NEWS
Yep, both China and Germany did vendor-financing. Now, they are left holding the bag.

http://www.nakedcapitalism.com/2012/06/yanis-varoufakis-greece-is-finished.html

"Far Worse Than 1986": The Oil Downturn Has No Parallel In Recorded History, Morgan Stanley Says"
InvestingChannel: "Far Worse Than 1986": The Oil Downturn Has No Parallel In Recorded History, Morgan Stanley Says

Hussman; "
In 1972, 2000 and 2007 each of those peaks was followed by a dramatic stock market crash. Now, for the first time since the last financial crisis, all four of those signals appeared once again during the week of July 17th."
Why The Next Great Stock Market Crash In The U.S. Is Coming | ETF DAILY NEWS

At least the TTP is dead. The only problem is that it died from what is killing the general economy. The Economist: The TPP is Dead | naked capitalismhttp://www.nakedcapitalism.com/2014/...s-economy.html
How big a parking lot do you need for 3.45 million cars and trucks? How many jumper cables will it take to start them?

[Danny B]

Contagion; copper to bank centers

The commodity crash is taking out a few economies in South America. Chile is the biggest exporter of copper. Chile is crashing. Venezuela is a big oil exporter. Venezuela is crashing. Brazil is a big exporter of iron ore to China. Brazil is crashing. Emerging Market Mayhem: Gross Warns Of "Debacle" As Currencies, Bonds Collapse | Zero Hedge
Venezuela will soon default on their bonds. http://www.zengardner.com/south-amer...l-crisis-2015/
Many of the emerging market countries are carrying huge loads of dollar-denominated bonds. As their currencies weaken, it is ever-more difficult to service dollar-denominated debt.
Commodity-currencies were seen as a sure / safe bet for investors. This was true when China was a huge importer. BUT, as a rising China wiped out the wages of it's client base, it's exports fell off. So did it's resource imports. There is a glut of resources sitting in warehouses and tank farms.
Banks have huge exposure to formerly prosperous EM States that can no longer service their debt. More contagion.

[Danny B]

Trend Alerts - Trends Research Institute$60 Trillion of World Debt in One Visualization - Visual Capitalist

Wealthy Hindu temples hold $ 1 trillion worth of gold and the GOV wants it.
PressReader - Connecting People Through News
One of the temples handed over 5 tons of gold. Guess they didn't miss it. The private stash is reported to be 20,000 tons and they import 1,000 tons a year.

[Ruphus]

Europe prepares to reduce risk in $505 TRILLION in derivative market!!!

Europe Moves to Cut Risk in $505 Trillion Derivatives Market - Bloomberg Business

[Danny B]

Endless war to provide endless debt

Churchill stated that WW II could have been avoided but, the bankers wanted it. They need to create continuous debt. https://www.youtube.com/watch?v=JyGmkotXLtY
The bankers financed the whole shebang and made quite a bit of money. American Banks Funded the Nazis | Global Research - Centre for Research on Globalizationhttps://www.youtube.com/watch?v=Zfg2dxUXzG0
Everybody wanted a BIG war and did their best to get it financed; Never mind the Czech gold the Nazis stole... - Telegraph

The war debt just goes on and on and on and on. Government to pay off WW1 debt - BBC News
Great Britain has invaded every country but 22. They have had an unbroken century of warfare. http://www.theguardian.com/uk-news/2...ry-warfare-end
New York carried on the tradition from London. Ron Paul said that he can't remember any time in his lifetime when war wasn't being discussed.
Obummer wants unlimited war authorization to fight ISIS. Imagine how much that could be expanded and prolonged.

[Danny B]

Deflationary shocks and the supernova

Europe Moves to Cut Risk in $505 Trillion Derivatives Market (Bloomberg) " By redirecting these transactions to a clearinghouse, the derivatives market should become safer. If a counterparty goes bust, the clearinghouse will spread the losses incurred between all its member firms. Companies have to post collateral with clearinghouses to use them."
SO, who is going to post a few $ trillion of collateral?
"The "debt supernova" of the last decade or two has created massive over-capacity and this commodity deflation "is not temporary, it's the end of the central bank bubble." The catalyst has already happened -"It's China," Stockman exclaims, "China is the most lunatic pyramid of credit and speculation.. and capital is now fleeing the swaying towers of the China ponzi."
"debt supernova,,, I like that imagery. PIMCO calls it a "credit supernova". PIMCO'S Gross sees U.S. economy on road to extinction
"The Top's In" David Stockman Warns Of "Epochal Deflation" | Zero Hedge
I found a cool image; http://www.nasa.gov/sites/default/fi...ge/15-044a.jpg

http://mercenarytrader.com/wp-content/uploads/2010/12/supernova-situation.png

Monetary authorities know very well the dangers of ZIRP. This article explains them very well. https://mises.org/library/unseen-con...st-rate-policyCredit Bubble Bulletin: Weekly Commentary: Core of the Core
State and local GOV increased taxes at double the rate that the economy grew. They are in no position,, and have no desire to cut back. http://charleshughsmith.blogspot.ca/...aw-coming.html

http://www.theautomaticearth.com/2013/08/the-global-economy-suffers-from-hypothermia/

[Danny B]

When A Train Wreck Is No Accident | Zero Hedge
Armstrong said that the sovereign bond market will collapse 2015.75.
The stock market has rolled over and many investors are fleeing. They will move their funds to the safety of the banks.

[Danny B]

Gibson

The FED has been a champion of 2% inflation. People resent direct taxation so, theft-by-inflation does a quieter job. Inflation has reached it's limit and we have flipped over into deflation. The Deflationary Implosion On The Road To Full-Blown Global Collapse | King World News
Armstrong has this to say;
" When we put out our forecast back in 1997 that oil would rise from $10 to $100 going into 2007, many people said we were crazy arguing the world could not sustain such high energy prices. We warned that unless oil rose to $100, new technology would not emerge. Oil had to rise in order to create alternatives. Now that we have warned that oil will move back to retest $35, everyone likewise said we were wrong for the world would not be sustainable at such a low level. "
The Age of Deflation & the Fed | Armstrong Economics

The Central Bankers generally accept and operate on the "monetarist" principle. THE INTEREST RATE IS THE PRICE OF MONEY. The number crunchers have apparently proved this to be untrue. This would mean that our whole operating system is founded on faulty information and faulty logic.
,,,,,"which seek to control prices by setting interest rates, have no theoretical justification behind them. They are the consequence of blindly accepting the quantity theory of money, upon which macroeconomics is based."
"A mistake made by central bankers is to believe that the price of money is its interest rate, instead of the reciprocal of the price of the products for which it is exchanged. Interest rates are money's time preference, which in free markets broadly reflects the average time preference of all the individual goods bought with money. The problem with monetarism is that it ignores this temporal aspect of exchange."
Gibson's Paradox: The Consequences For Gold | Zero Hedge

[Danny B]

Gibson's Paradox

The FED has been a champion of 2% inflation. People resent direct taxation so, theft-by-inflation does a quieter job. Inflation has reached it's limit and we have flipped over into deflation. The Deflationary Implosion On The Road To Full-Blown Global Collapse | King World News

The Central Bankers generally accept and operate on the "monetarist" principle. THE INTEREST RATE IS THE PRICE OF MONEY. The number crunchers have apparently proved this to be untrue. This would mean that our whole operating system is founded on faulty information and faulty logic.
,,,,,"which seek to control prices by setting interest rates, have no theoretical justification behind them. They are the consequence of blindly accepting the quantity theory of money, upon which macroeconomics is based."
"A mistake made by central bankers is to believe that the price of money is its interest rate, instead of the reciprocal of the price of the products for which it is exchanged. Interest rates are money's time preference, which in free markets broadly reflects the average time preference of all the individual goods bought with money. The problem with monetarism is that it ignores this temporal aspect of exchange."
Gibson's Paradox: The Consequences For Gold | Zero Hedge
The world is laboring under false theories and false paradigms. If Gibson's paradox is indeed correct, then, the interest rate is NOT the price of money. China is laboring away trying to save their economy. Like many countries, they are playing with interest rates. Things are crashing anyway. http://www.zerohedge.com/news/2015-0...st-matter-time
Their exchange rate is locked in with the dollar. The dollar is perceived as a safe haven and is rising. This forces up the price of goods from China and their export market is crashing. They need to devalue the Yuan to compensate for this. They need to NOT devalue the Yuan if they hope to have it included in the SDR basket of currencies.

"instead of the reciprocal of the price of the products for which it is exchanged"
This is an interesting idea. What happens to money if products are NOT exchanged? Zero velocity of money is described as barter. Barter doesn't incur finance or interest charges and bankers hate it more than anything.
"products for which it is exchanged" The FED has been able to inflate the upper loop of the economy because no "products" are exchanged. They haven't been able to inflate the lower loop of the economy. ZIRP has proved to be a failed tool of a faulty paradigm.

[Danny B]

Inventories are up because retailers aren't able to sell. There are other cheerleaders who completely distort the labor numbers, etc. Why does everybody keep citing October?These aren't the kind of people that you would invite to a party.
8 Experts That Are Warning That A Great Economic Crisis Is Imminent

ALL democracies fail. Democracy is socialism-lite. MANY influential people are pushing for world socialism. Central bankers have always claimed that the CB must be independent so that it won't respond to demands from the collectivists and overprint. Well, that idea isn't working out too well. The CBs responded to the demands of their banking buddies and,,,, overprinted.

The failing of socialism is that it tries to give a high standard of living to non-producers using DEBT. "Rather than using these lower rates to pay off its substantial debts, Greece funneled as much money as possible towards Government employees (nearly one in three Greek workers).
As a result, Government wages nearly doubled to the point that your typical Government employee was paid 150% more than his or her private sector counterpart." Greece's Collapse Was a Reversion to the Mean? Who's Next? | Zero Hedge
The collectivists always try to harness up the producer to support his fair share of non-producers..... Beggars, bankers and Bureaucrats. Man is hard-wired to provide support to his close genetic lineage,,, maybe.

[Danny B]

China's exports are falling because their preferred clients are out of work. They are out of work because of the Chinese. Just as austerity has been proven to NOT work, the Chinese are going to prove once again that currency wars do NOT work. 12 Signs That An Imminent Global Financial Crash Has Become Even More LikelyPurchasing power in the rich nations has collapsed and the people are spending far less. Wage deflation,,,,economic deflation.Another bummer of a guy that I would NEVER invite to a party.
Gerald Celente Is Now Predicting That A Stock Market Crash Will Happen By The End Of 2015

Edit: OPEC just kicked oil into the $30s OPEC just kicked oil into the $30s
I suspect that the "junk bond" market will be the first to vaporize. The Next Financial Disaster Starts Here | Casey Research

[Danny B]

Having the reserve currency in a currency war

Gibson's Paradox, Triffin's dilemma, Gresham's Law. Essentially, a reserve currency is a DRAG. Everybody flees to it for safety and drives it up.
John Kerry Warns "Dollar Will Cease To Be Reserve Currency Of The World" If Iran Deal Rejected | Zero Hedge
China was pegged to the dollar. The rise cut way back on their export market and they had to devalue. It was a big kick in the teeth for many currencies / States. Currency wars are never successful but, the CBs are doing it anyway. " It is mathematically impossible for every country to devalue its currency to boost exports. Yet Japan, the eurozone countries, and China seek to do that.
Read more at Mish's Global Economic Trend Analysis: Don't Worry, There's Only One Cockroach

There is so much cash sloshing around and nowhere for it to go.
"They look only at the USA debt and assume the dollar must crash, when in fact, the problem we face is on a global scale and $18 trillion in U.S. debt is simply not large enough for international capital to hide. " China & the Dollar | Armstrong EconomicsIf Gerald's Right, Are You Ready? | SilverSeek.comThe solution for Triffin's Dilemma and Gresham's Law is to let gold return to it's former status.
In the meantime, we have Hindenburg Omen And Death Cross to worry about along with something even worse.
The FED printed dollars and they went into emerging markets and commodities. These have both crashed. If the FED prints more dollars, they have no place to go. They can't go into stocks any more. They already own much of the bond market. Like Voldemort's ghost, all these digital dollars are circling the globe looking for something to make them tangible.

[Danny B]

Deflation for fun and profit

Job # 1 for the bankers is to convert their thin-air money into tangibles. "If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered"
Since the dollar has lost about 97% of it's purchasing power, you can say that we have had quite a bit of inflation. We managed to suck a lot of money from the rest of the world so, we didn't lose too much of our standard of living,,,,YET.
Deleveraging and it's attendant deflation are baked in the cake and on the way.
Deleveraging as a Biblical Plague - The Automatic Earth
Unemployment claims foretell a big downturn. Initial Claims Send Longest Bubble Peak Warning In History | David Stockman's Contra Corner
The CBs have lost control and are now fighting each other. http://www.zerohedge.com/news/2015-0...nancial-crisisThe original FED charter did NOT allow a discount rate nor, selling of Treasury bonds on the secondary market. The FED chief, Benjamin Strong ILLEGALLY sold bonds on the secondary market.

"Under the same law of money, as the discount rate arose
and bonds and securities were sold and money and credits
withdrawn from circulation, commodities, values, and the
price level fell." This deflation (reduction in the supply of money and credit) made it impossible for people to service their loans. PRESTO, the bankers got everything.
The G-20 countries have agreed to bail-in laws. The banks will take all accounts. Nobody will have money or credit to service their loans. NO PROBLEM, the banks will have tons of money to buy up everything when the prices are depressed,,,,, everything that they didn't already foreclose on.

You can see why they don't want a gold standard. It prevents any big manipulations of the money supply. A Rush to Judge Gold | Cato @ Liberty

[Danny B]

Total U.S. Auto Lending Surpasses $1 Trillion for First Time - WSJThis Alarming Indicator Is Back At A Level Last Seen 10 Days Before The Bear Stearns Collapse | Zero HedgeThe Great China Ponzi—-An Economic And Financial Trainwreck Which Will Rattle The World | David Stockman's Contra Corner
Social Security holds tons of non-negotiable securities issued by the Treasury. The SS fund is empty and benefits of $ 800 billion are paid out of current accounts.