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  • Socialism, population, freedom, tax burden, the next currency

    For most of man's history, his reproductive ability outstripped his food procuring ability. In Europe, war was called 'the sport of kings". They engaged in warfare for population reduction almost continuously. The only long interruption was during times of plague when Mother Nature took over the job. England kept large numbers in the navy and overseas outposts. War was thought to reduce the lower class because stupid soldiers would tend to get killed more often than smart soldiers.

    In the outlands, England used famine to reduce population.

    Man has now reached a point where his food producing ability is greater that what is required for a shrinking population (ex sub-Sahara Africa)

    The moneyed class had previously used war to limit population growth. The wars were limited by how much gold a State had to purchase arms.

    The Central Bank was created by the State specifically to finance and prosecute wars on credit.
    Chapter one, page one Page 17


    Investments in war industries had a very high rate of return.

    Since the financiers never created anything, the burden of paying for the wars fell to the producer. The working man had to fight the war. After the end of the war, he had to pay for it. The CB created the bonds to finance the war. The worker / producer paid the "inflation tax" on everything that he needed / bought to repay the bonds.

    J. M. Keynes advocated for constant war to keep the economy constantly producing.

    In the most basic of analysis, capitalism is the only system of production. You take something physical and, add your labor.

    "Marx, who intended to abolish capitalism, Keynes intended to change the system but keep capitalism alive. He suggested social reforms within the capitalist system rather than establishing a whole new system."

    Human nature precludes the abolishment of capitalism. We don't work like ants. That doesn't stop Marxists from dreaming.

    Capitalism is a fine system as long as everybody is working. Our current situation is a distortion of capitalism by groups who pervert the law to gain profit without working. Through taxes, fines, fees and theft, they take about 50% of our earnings. (Armstrong). Now that our perverted system is crashing from the predations of "crony capitalism", numerous people are calling for socialism as a cure.

    Capitalism works just fine. It does not need curing. What we need is an escape from crony capitalism. What we are offered is a continuation of the present system under a new name with the same old controllers.

    Armstrong, "The major difference between the socialism supported by the Democrats/Labour in Western Society is that to them the individual has no value, it is the collective society, which they then elevate themselves to rule. Conservatives believe in the individual has rights and value and that the state is to serve the people. In the eyes of socialism, it is not the individual but the collective society which is the value and they are qualified to rule from above. The socialist always seeks to control others and in so doing, the individual is always sacrificed for the collective state."

    "Nevertheless, the socialist always pretend that they are on your side. They get people to surrender their individuality to the state and always blame the rich when your quality of life declines.
    Keep in mind that career politicians even on the right also support the government against the individual."
    That is why Ron Paul stands out so much.Ah yes, the Champagne socialists like millionaire Sanders.

    "This is why the Founding Father prohibited DIRECT TAXES, which the socialists in the rising era of Marxism embraced at the start of the 20th century. " "Once they created the income tax, every individual was now required to account to the state what they possessed and what they did. Since then, all we have are laws that constantly remove our freedoms because they assume we are all hiding money. "
    "It is now money laundering to keep cash in a safe deposit box for the new interpretation is hiding money from the government is a crime even if you paid your tax."
    " With each passing year, we lose more and more of our human rights and individual security. This can only end in civil war as it has always done throughout history when these two philosophies confront each other. One just wants to be left alone and the other cannot sleep at night if others have what they do not."
    QUESTION: Mr. Armstrong; You have worked with politicians worldwide and both sides. What is your opinion of the politics that has emerged post-Great Depression?


    You can say what you want about Fidel Castro but, like Ian Smith he really cared about his people. Both of them could walk among their people without guards. Chavez and Maduro have stolen billions. They put their cronies in charge which was far more devastating to the oil industry. Both of them sang the siren song of Marxism and, both of them were thieves. Why is it that the Marxists are always so inept at running an economy?

    I feel bad for the Venezuelans. They believed that Chavez would make things better.
    "40% Of Venezuela Stores Go Bust After 3,000% Minimum Wage Hike"
    "7 million Venezuelan employees were to be guaranteed 1,800 bolivars a month - around $20 USD on the black market. "
    ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero


    "Resist Everything": Socialist Within State Department Exposed In Veritas "Deep State" Sting
    Air Force Wants to Surge Growth by More Than 70 New Squadrons ...
    The bond markets will crash and, it is very possible that we will end up like Venezuela. Too many people with not enough to eat.
    Man is voluntarily reducing his population and, the credit markets will NEVER recover. There are small signs creeping in.
    The Most Important Stock in the World Has Broken Its Trendline
    ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero

    David Morgan, "- We could move to a "cryptocurrency type of situation that is government backed"; is a "world currency possibility" or we could "go back to some type of gold standard"
    - "Very difficult to know how the currency reset might come about and I do not think even the elites know at this stage"
    Bretton Woods was an agreement that would limit how much a State could inflate their bond market. Thus, reducing wars. Nothing but gold has ever worked in this role.

    Comment


    • Destroy the family and, you destroy the economy

      200 years ago, Europe was exporting it's surplus population. The mindset of the ptb was focused on population reduction. Population growth fell way off as countries industrialized. We no longer needed large families to work a farm. As the Central Banks made us poorer to pay for wars, women were drawn out of the household and, into the labor force. Population growth fell further. America opened the southern border to keep the population from shrinking. There is no possibility of having a growing credit bubble with a shrinking population.
      As the moneyed class demanded more and more, everyone was pulled into the labor force. With the fragmentation of the nuclear family came the destruction of mental health.
      Removing women from the household may have generated more wealth to be siphoned off by the bankers but, it continues to lower the birth rate. This makes the demographic crash that much worse. Reportedly, U.S. GOV faces a funding shortage of $213 trillion, most of it connected to promised benefits to the elderly. (Kotlikof)
      The State already takes 50% of our earnings. It is doubtful that they can squeeze out much more. The other problem is that the welfare State de-motivates people.
      The BLS reports that 96,157,000 people are not in the labor force.
      The BLS reports that 90,922,000 don't want a job.

      The bankers are squeezing ever-harder on a falling number of workers. Fewer people are having children. Suicide is way up. Family mental health is terrible as evidenced by drug addiction. The birth rate is still dropping.
      To make matters worse, pollution from endocrine disrupters is crashing fertility.


      Phthalate pollution is bad enough. Unfortunately, it isn't the only problem. Here is a graph of projected autism rates.

      So, what are we doing about this?
      Autism Cases on the Rise; Reason for Increase a Mystery
      Between vaccines and glyphosate, we are destroying what few children we do have.
      The moneyed class and the socialists destroyed both the family and, reproduction. They also destroyed confidence. The developing police / surveillance State will just make things worse. No credit bubble can survive a falling population .

      Comment


      • Anatomy of the 2007 event

        I saw the crash coming in summer of 2005. I started writing about it in May of 2007. https://eplaya.burningman.org/viewtopic.php?t=19613No mention that our wages had crashed

        "Although more banks failed during the Depression, these failures were scattered between 1929 and 1933 and involved far smaller balance sheets. In 2008, both the scale and the speed of the implosion were breathtaking. According to data from the Bank for International Settlements, gross capital flows around the world plunged by 90 percent between 2007 and 2008. "
        We're still just getting warmed up.Give it time. Devastation is waiting in the wings.

        "One of the more common tropes to emerge since 2008 is that no one predicted the crisis."
        Au contraire, https://www.zerohedge.com/news/2018-...alled-last-one
        "What U.S. authorities were facing was not a Sino-American meltdown but an implosion of the transatlantic banking system, a crisis of financial capitalism. "
        The bubble that was created was in no way related to capitalism.The bailout was necessary to give prudent people time to get prepared for the eventual unwinding.Sounds incestuous to me.

        "The shutdown in bank funding quickly rippled across the global financial system, even reaching Russia and South Korea, countries remote from the subprime debacle but whose banks relied on the same wholesale markets now under stress. The world was witnessing a trillion-dollar, transnational bank run." For dollars.
        "The Bank for International Settlements estimated that all told, by the end of 2007, European banks would have needed to raise somewhere between $1 trillion and $1.2 trillion in order to cover the gaps on their balance sheets between dollar assets and dollar funding."
        You can see why Bernanke had to send them many $trillions. A freeseup that sudden would result in the death on many millions. "They" bought some time for prudent people to prepare themselves as best as they could. Once again, there were a lot of lives at stake.Auto loans and student loans are a much bigger bubble than sub-prime housing was.

        Comment


        • RE in danger in the next downturn


          We've seen this movie before.

          The markets will control the Yuan, Not the PBOC.

          the median retirement account balance among working individuals was found to be $0.

          "One of the most perverse consequences of the central banks "saving the world" (i.e. saving banks and the super-wealthy) is the destruction of low-risk investments: we're all speculators now, whether we know it or acknowledge it. "
          "In the late 1990s, the stable, boring market for mortgages was fully financialized and globalized, turning a relatively safe investment and debt market into a speculative commodity. We all know the results: with the explosion of easy access to unlimited credit via HELOCs (home equity lines of credit), liar loans (no-document mortgages), re-financing, etc., the hot credit-money pouring into housing inflated a stupendous bubble that subsequently popped, as all credit-asset bubbles eventually do"

          "The "safety" of investments in housing, commercial real estate, stocks, corporate bonds, emerging markets, etc., is illusory: these are now inherently risky markets,"
          "You get the point: virtually every supposedly low-risk asset class is actually a super-risky, super-dangerous bubble. "
          The article had great graphs showing the housing bubble to be greater than 2007.
          Charles Smith, Charles Hugh Smith, Charles H. Smith, journalist, writer, author, novelist, screenwriter, wEssay, wEssays, Four Bidding for Love, Of Two Minds, I-State Lines, Verona in Spring, A Hacker's Teleology, For My Daughter, Claire's Great Adventure, Kama Sutra Cadillac, People's Party of Hawaii, oftwominds.com, oftwominds.net, financial crisis, financial meltdown, recession, U.S. economy, Hapa, Hapas, multi-ethnic, multi-heritage, multiracial, Asia, China, China's economy, How I Fell In Love With A Homeless Woman, book reviews, film reviews, Japan, advice for aspiring writers, stock market, i-statelines.com, Daz and Alex, peak oil, inflation, deflation, sustainability, housing crash, housing bubble, grow your own food, nutrition, what's for dinner at your house, Readers Journal, peak oil, Weblogs and New Media, Marketing in Crisis, Survival+, Survival Plus, Structuring Prosperity for Yourself and the Nation, Survival+ The Primer, Oftwominds.com Weekly Musings, Weekly Musings Reports, An Unconventional Guide to Investing in Troubled Times, investing, personal finance, Resistance, Revolution, Liberation: A Model for Positive Change, political philosophy, Why Things Are Falling Apart and What We Can Do About It, The Nearly Free University, the emerging economy, Get a Job, Build a Real Career and Defy a Bewildering Economy, jobs, careers, A Radically Beneficial World: Automation, Technology and Creating Jobs for All: The Future Belongs to Work That Is Meaningful, Why Our Status Quo Failed and Is Beyond Reform, Of Two Minds Essentials, Inequality and the Collapse of Privilege, Money and Work Unchained


          Carbon energy trading is moving to the blockchain. Maybe to avoid the dollar.
          Commodity traders, energy majors, and large banks have set up a new venture to digitalize and facilitate commodity trade through a blockchain-based open platform

          Comment


          • Big party in October,,,hot money in RE

            I'll start wit Armstrong because he has the most pressing news.
            "This is what the Reversal System was designed for. To be objective in the midst of total chaos and uncertainty. November is shaping up as a Panic Cycle in the Euro, not in the share market. In the Pound, we have a Directional Change and a Panic Cycle in October. "
            "We are looking at everything starting to get crazy in sovereign debt issues globally beginning in October. With the Dow Jones Industrials now making a new high for the year, the Fed will be looking more comfortable about raising rates to help the pension fund crisis that is brewing. So pay attention to interest rates in October!!!!!!!!"

            "There is complete political chaos everywhere you turn. This is not simply supporting or bashing Trump. We are fooling here with the very foundation of CONFIDENCE in the governmental system. "
            " What I mean as to this is the worst I have personally seen in 40 years is that we have uncertainty absolutely everywhere globally. There is no safe place for capital to hide. "
            QUESTION: Marty; Your directional changes are amazing. They signal a change but it can be a turn as well as a sudden blast to the upside. You also mention


            "ANSWER: Regardless of your political persuasion be it for or against any of these political issues, the importance is really the impact upon CONFIDENCE. If you are for or against Trump, we still have one thing in common. We just want stability and some sense of the future to bank on."
            The deep state is absolutely determined to drag down Trump regardless of the fallout. I very much doubt that they are aware of just how much blowback will occur.
            " If Italy pulls the cord to get out, the Euro cannot survive. What I hear from Behind the Curtain is that the ECB may be forced to cut its bond purchases by 50% and there are even those demanding Quantitative Easing MUST end by the end of the year."
            Will lega Nord and 5 Star back down on their new budget? I doubt it.
            QUESTION: Well you called this year the political year from hell. You got that one right again. Between trying to figure out the politics in the US, we have


            OK, Armstrong is showing tremendous panic in European sovereign bond markets.
            Here is a short article on sovereign bonds, https://gainspainscapital.com/2018/0...to-its-needle/
            "Because the entire move in the financial markets since 2008 has been based on Central Banks cornering the bond market. In the simplest of terms, Central Banks dealt with the crash in one major asset class (housing) by creating a bubble in another even more senior asset class (government bonds).

            Because these bonds are the backbone of the current financial system, (the senior-most asset class), when they went into a bubble, everything followed."Everybody assumes that the FED will hyper-print again. I am NOT convinced that this will happen.
            “No one can say exactly when the next crisis will arrive, but there are lots of signs it may be getting close”...


            " the net worth of US households rose to an all-time high $106.9 trillion, increasing for 11 consecutive quarters and up $2.2 trillion as a result of an estimated $559 billion increase in real estate values, "
            YES, they have driven RE out of reach for millions.
            "Total household assets in Q2 rose $2.3 trillion to $122.7 trillion, while at the same time total liabilities, i.e., household borrowings, rose by only $132 billion from $15.6 trillion to $15.7 trillion, the bulk of which was $10.2 trillion in home mortgages. "
            All of this increase was due to speculators buying up housing with hot money. The owner-occupancy rate has not gone up.
            Tyler Durden Blog | Household Wealth Hits A Record $107 Trillion... There Is Just One Catch | Talkmarkets



            Lega Nord has a gun to one side of his head. The ECB has a gun to the other side of his head.

            Comment


            • Jim Willie,,,, unemployment BS

              Time to revisit Jim Willie. He may not be a fountain of truth but, he often knows which way the wind blows.
              June 23, "Deutsche Bank integrally tied to the Italian banking system bust, their tight connection to the LTCM 1998 failure which lost the Italian central bank gold (Rickards crime scene & coverup by Draghi), two trigger events to set off the global financial crisis which will release the controlled Gold market (like DBank/ Italy failure plus Gold Trade Note launch in Shanghai), the fraudulent basis for the entire Euro Monetary Union with excuse for Italy to exit "

              June 28, "the Trump persona to scuttle NATO, the Eurasian Trade Zone formation & SCO protection, the TPX triumvirate to execute the Global RESET as in Trump Putin Xi, the India & Pakistan detente for the ETZone in its southwestern region, the Petro-Yuan oil settlement with respect to the Gold Standard coming into view, the two key trigger events that release the Gold market from 25 years of suppression (DBank & Italy collapse,"

              July 5th: topics covered include the assured failure of Deutsche Bank and the guaranteed collapse of the Italian banking system with French falling dominoes in contagion.
              Aug 4 " the bond market expansion with potential forced pension investment in Special USTreasury Bonds, the emerging Systemic Lehman Event in a global financial crisis during the climax global breakdown underway, as nothing was resolved since 2008 while all major sovereign bonds have turned subprime and many banking systems in ruins,
              "United States must source the gold for a new gold-backed currency with the ongoing concurrent risk from the $600 billion trade deficit, which must be eliminated, or else the USA falls into the Third World"

              Sept 9 "then also a walk down statistical corruption lane on Consumer Price Inflation falsification with its immediate impact of exaggerated GDP economic growth as the USEconomy has endured 12 consecutive years of strong ugly recession,"
              "then also the America First movement of dismissed US Pentagon Generals who defended the country against the globalist and narco baron attacks, which later become the core Trump support basis cited in his inauguration,"
              "trigger events for the Global RESET like Italian banking bust, Deutsche Bank failure, Turkey banking bust, "
              "all Emerging Market nations are mired in crippling severe currency crisis, then also a walk down statistical corruption lane on Consumer Price Inflation falsification with its immediate impact of exaggerated GDP economic growth as the USEconomy has endured 12 consecutive years of strong ugly recession,"

              "The USFed has caused every financial crisis since the 1980s. Both outsourcing of US industry and QE monetary policy assure more crises. The actual price inflation is over 8%, thus the lie on GDP is over 5%, and therefore the USEconomy is stuck in a 12-year recession. The debt engine is broken, since it takes $5 in new debt to create $1 in economic activity. Except the reality is that the new debt only reduces the impact of endless recession. "
              "road to the Gold Standard. It is the inevitable solution, surely to be adopted even by the Basel group of franchise central banks. This time around the entire globe is participating with national breakdowns in the crisis. Call it the Everything Bond Bubble or the Systemic Lehman Event. "
              GOLDEN JACKASS.COM - The Golden Jackass Knows Gold, Currencies & Bonds"
              The CBs did NOT want to do all that printing. They got their mandate from the State. PRINT to save sovereign debt.

              Now for the propaganda. The FED is desperate to raise rates so that it
              can lower them when the next crash hits.
              Fed's Powell between a rock and hard place: Ignore the yield curve or tight job market?
              Great graphic on GOV spending, https://www.zerohedge.com/news/2018-...ing-60-seconds

              Comment


              • Brexit, the Death Star

                Americans tend to focus inwardly. That just isn't enough these days.
                November is shaping up as a Panic Cycle in the Euro, not in the share market. In the Pound, we have a Directional Change and a Panic Cycle in October. " Armstrong
                About that panic cycle.,
                Teresa May went to the EU with a plan.

                *MAY: NO DEAL IS BETTER THAN BAD DEAL
                *MAY SAYS UK, EU AT AN IMPASSE
                *MAY: MUST CONTINUE TO PREPARE OURSELVES FOR NO DEAL
                *MAY: WILL NOT OVERTURN RESULTS OF REFERENDUM


                Things are just not working out, https://www.spectator.co.uk/2018/09/...-blind-brexit/
                Several articles on the subject.

                Don't forget the Irish, https://www.express.co.uk/news/polit...u-leo-varadkar

                Nor, the Scottish, https://www.express.co.uk/news/uk/10...affic.outbrain
                About that panic cycle. November is shaping up as a Panic Cycle in the Euro
                The Brits are trying to get out of the EU before the Eurozone banks crash.
                In the Pound, we have a Directional Change and a Panic Cycle in October
                So, the Pound does a big change in October and the Euro goes into a panic in November. Do the European banks crash in November? Does Draghi stop QE in November? Do the Italian banks crash in November?
                Tusk is playing hardball with May. The rumors say that QE absolutely must be stopped by December. Hardball comes to an end when the Italian banks are a smoldering ruin and capital is fleeing.

                Comment


                • Monetary vs fiscal policy,,,Italy,,,Reduction of wars

                  After the S&L crash, 1,000 people went to jail. Regulatory capture got all the laws changed so that this wouldn't happen again. Moral hazard was removed. This was part of what allowed excessive leverage at the banks. When Greenspan allowed and, sponsored FED backing for the big gamblers, this removed financial hazard. Greenspan claimed that the bankers would manage themselves to be most profitable,,, and therefore safe. He was shocked when it all blew up. It seems that the banks had a group interest in survival. BUT, the individual at the trading desk was trying to ensure personal riches and survival.
                  This did not align with what was best for the bank. By then, it was too late. Each bubble had to be succeeded by a bigger bubble. Since the State was the biggest borrower, it was in the best interest of the State to force the Central bank to continue to buy it's bonds. It could roll them over ad-infinitum.
                  The Central bank did not like this at all. It wanted the State to cut back on expenditures.

                  Monetary policy is primarily concerned with the management of interest rates and the total supply of money in circulation and is generally carried out by central banks such as the U.S. Federal Reserve. Fiscal policy is the collective term for the taxing and spending actions of governments.Jan 8, 2018
                  What's the difference between monetary policy and fiscal policy


                  Bernanke complained about a complete lack of discipline in the fiscal policy. The 2008 crash hit primarily because the banks made loans to people who couldn't pay for a house. In the runup, the State had DEMANDED that they make this type of loan. The banks counted on a bailout right from the start.
                  Along came the 2008 crash. All moral and financial hazard had previously been removed. The world CBs were forced to bail out the bankers. Many millions would have died. Congress passed a couple of scam laws that were supposed to bring a return of moral and financial hazard. The party was in full swing and, the laws were neutered.
                  At this late date, we have learned that the quantity of money theory is NOT valid. The Germans did an admirable job of proving once again that austerity
                  Non-Financial Debt (NFD) expanded at a seasonally-adjusted and annualized rate (SAAR) of $2.283 TN during the second quarter. While this wa...
                  mid-October."

                  So, the Italian Central bank is in a wrestling match with the Italian government.

                  As expected, older Americans are getting hit hard, https://www.marketwatch.com/story/ma...?siteid=YAHOOB

                  I tell everybody to have some cash at home and, PLANT a garden.
                  Stockman, Martenson and Kunstler recently presented a summit.
                  "For manifold reasons that are multiplying fast. So many, in fact, that each of the key speakers at the recent Peak Prosperity/Contra Corner Summit in New York City had difficulty finding enough time to enumerate them all during the six-hour event."
                  "Chris Martenson built on Stockman's evidence of the economy's vulnerability by showing how there simply won't be enough (net) energy in the coming decades to power the growth the world is counting on. To drive this point home, he explains how demand from China alone is on track to consume 100% of world oil exports by 2040"

                  "Here's (part of) Stockman's explanation of why he predicts the Federal Reserve and other central banks will be unable to prevent the next market crash, which he sees coming soon"
                  The common theme amongst Stockman, Martenson and Kunstler? Use the precious time we have today to fully understand the trends in play, take prudent preparation in advance of the coming crisis, and develop trusted bonds within a like-minded community well-positioned to help its members through future adversity."


                  No kidding. They loaned money so that kids could get an over-priced education to prepare for jobs that just aren't there.


                  I travelled by road through India. They have a bunch of things holding them back. Many Indians long for the days of the British Raj running the show.

                  Only 3% had flood insurance. They can't rebuild.
                  Gerald Celente has some interesting speculation.
                  "Gerald Celente: Yeah. We think that Trump is going to play another peace card, possibly with Afghanistan. We're going on, what? It's going to be a 18 year war. And no end in sight. And there's just a dump of money going into it. And also, probably pulling out of Syria, and more positive peace deal with North Korea. And we believe that's going to happen before the mid-terms to give the Republicans a boost. And he's even speaking out more and more about the useless wars in the Middle East."
                  Since 1995, news.GoldSeek.com publishes the leading gold news commentaries, gold market updates and reports providing gold investors with the most updated gold and silver prices, news & precious metals information!


                  Something else of interest. Google should have been more careful of antagonizing Trump. He could easily whack them up the side of the head.

                  Comment


                  • Buybacks and fleeing insiders


                    And
                    Buybacks are used to inflate the price. When it is inflated to a peak, the insiders sell out.
                    "Inflating your stock price by cannibalizing your own shares is not a good long-term strategy for any corporation"
                    Once again,we see a divergence between what is good for a corporation and,,, what is good for individuals in the corporation.

                    "Wall Street is inhabited by con men that are promoting Ponzi scheme after Ponzi scheme, and it is only a matter of time before the entire system collapses under its own weight."
                    "In 2007 corporations were pouring hundreds of billions of dollars into stock buybacks, and it propped up the market for a time. But eventually the bubble burst and the crisis of 2008 was so dramatic that it will be remembered forever.

                    Now we are facing a similar scenario, and it is just a matter of time before this bubble bursts as well."
                    Stock Prices Are Surging Because Corporations Are Spending More Money On Stock Buybacks Than Anything Else
                    A couple of notes on Brexit.

                    In an effort to legalize thousands of settler homes in West Bank, the Israeli government audaciously claims that it can “legislate anywhere in the world”, that it is “entitled to violate the…



                    Maybe so but, they are keeping people employed..

                    He already burned through the cash that he got from Russia.

                    It is worse in China, https://www.youtube.com/watch?v=OQ5LnY21Hgc
                    Last edited by Danny B; 09-24-2018, 02:30 PM. Reason: mis

                    Comment


                    • Nobody knows where all the money goes

                      Regulatory capture allowed bankers to run to great excesses of exploitation. Now, that it is all falling apart, socialism raises it's ugly face. How convenient. It has always failed before but, it will be different this time. The surveillance state combined with the police state will make sure that we all conform and pay the state every penny that it demands.
                      China has never been reluctant to try new social experiments. Their one-child policy is a good example. Chairman Mao had a bunch of ideas that just didn't work out. China is now experiencing a huge amount of social unrest.
                      They have 200 million cameras and lots of AI watchers. They have 1 million in camps.
                      Trying to stave off deflation at every level.
                      " With the increased spending included in this year's National Defense Authorization Act (NDAA), the Pentagon will get to spend more than $700 billion next year."
                      Reportedly, U.S. GOV spends 24% of the GDP. Armstrong claims 37%. Imagine the deflation if this missing $ 21 trillion had not been spent.
                      The FED pumps money into financial institutions and, the MICC pumps money into defence jobs.

                      ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero


                      As more and more monetary inflation comes to light, there is less and less confidence in FED GOV. Armstrong said that FED debt would crash going into 2020. Investors all know this and, are staying away from auctions that mature in that time frame.
                      ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero

                      Remember that FED GOV locked him up for many years on bogus charges.

                      Jamie Dimon admits that Wall Street screwed us good but, we will get over it.
                      ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero

                      All the money has flowed into passive investment funds. This has reduced volatility because nobody is minding the store. It is expected that the "algos" will cause a meltdown in the next downturn because they only respond. They don't think. The system is NOT set up to deal with a return of volatility.
                      ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero


                      Trump did a tax cut to buy some time. It will wear off in several months. He is hoping to be the last survivor when the emerging markets and Europe melt down. He has to drastically reduce military spending and, the MICC is fighting him all the way. He increases spending now because he knows that the money will never be repaid. The bid-to-cover ratio will continue to fall.

                      Comment


                      • Mor bumps in the road


                        Just a coincidence.

                        You MUST believe a guy who only wears bow ties.

                        They just forgot to mention a few details.



                        Nope, I already forgot. Stocks are peaking and insiders are selling out. But, since YOU are in a passive investment fund, you signed up for the roller coaster ride to hades.

                        Get used to it.

                        Yup, they have been snorting Viagra.

                        Yup, the big flashing sign that says EXIT.

                        Just wait til the FED does 2 more rate hikes.

                        Yes, fiscal policy vs monetary pollicy.

                        Don't hold your breath.


                        Having the reserve currency eventually becomes a curse. The R.O.W. DEMANDS that we over-print so that they will have reserves. That leaves us with an enormous trade deficit AND unemployment. Why produce when you can just print? The R.O.W. is reluctantly abandoning the dollar. Trump is hurrying things along. He pushes everybody to abandon the dollar by sanctioning them. We will no longer be able to run our $1.5 billion a day trade deficit. We will actually have to work and produce the things that we previously paid for with green confetti.
                        The FED had to inflate the snot out of the dollar supply to meet the demand for reserves.
                        This monetary inflation created steady price inflation to where we could no longer afford houses and kids.
                        The jobs will return when the trade deficit comes to an end.

                        Parasites NEVER think about death
                        "An active investor is one who does original research and due diligence on her investments or who relies on an investment adviser or mutual fund that does its own research. The active investor makes bets, takes risks and is the lifeblood of price discovery in securities markets."
                        "A passive investor is a parasite. The passive investor simply buys an index fund, sits back and enjoys the show"
                        Personal axe to grind.
                        The algos will roll like a snowball down a mountain slope. Nobody who is a passive investor will have any control.

                        How to Prepare For the Coming Inflationary Storm
                        The financial system just gave us a big “tell.” First and foremost, the US Dollar has taken out both its bull market trendline AND critical support. The technical damage here is severe. We will get…

                        The storm will bring both inflation and deflation.
                        The closer an asset is to a must survival position, the more it will inflate. 1600% for farmland, bought up by investors, rather than farmers.
                        America has a farmland problem. It's too hard to find land at reasonable prices, which makes growth a challenge. Nearly 100 million acres of US farmland will change hands in the next few years, but most of it will go to investors and developers.


                        All that FED hot money went into anything that could be considered a store-of-value. This has really screwed the millennials.
                        There is a serious economic crisis brewing that few seem to be paying attention. According to a new survey from Zillow Group Inc. (ZG - Get Report),

                        The EU / IMF is trying to scare Britain into remain, https://www.armstrongeconomics.com/i...ical-forecast/

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                        • Flight from ZIRP,,,Rotten Rupee

                          Great news;

                          Not so great news;
                          Household debt grows at fastest rate in 11 years - MarketWatch 2018
                          The national debt is rising much faster than the economy - Business .. 2018

                          India’s financial markets are in the throes of this Emerging Market crisis. The Mumbai-based Infrastructure Leasing & Financial Services (IL&FS) is an


                          "Many discounted the proposal as being far too aggressive: after all, a direct assault on SWIFT, and Washington, would be seen by the rest of the world as clear mutiny against a US-dominated global regime, and could potentially spark a crisis of confidence in the reserve status of the dollar, resulting in unpredictable, and dire, consequences."
                          "Trump's latest sanctions on Iran, and as a result, late on Monday, the European Union said that it would establish a special payment channel to allow European and other companies to legally continue financial transactions with Iran while avoiding exposure to U.S. sanctions."
                          Just as much as the sanctions, Europe would very much like to bypass the leeches in the NYC banks that process all the dollar traffic.
                          WAITrobust institutions That is political speak for even more expensive weapons systems.
                          Trump’s threats of war, sanctions and promises to make America great again could be dismissed as the ranting of an eccentric politician. But this isn’t all about Trump. What he advocates is representative of much of the US elite.

                          Trump is anti-globalism. He would like the world to stop using the dollar.

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                          • 10 year note,,, interest burden vs birth rate

                            First, and most importantly, a graph of the 10 year note.
                            Yesterday, the Federal Reserve stated it would no longer be “accommodative” with its monetary policy. On that same day Fed chair Jerome Powell stated that stock market valuations were in the “upper…

                            Armstrong said that U.S. sovereign debt would collapse going into 2020. So, is Powell just pissing into the wind?

                            You should read this entire article but, I will do excerpts.
                            "Accordingly, I contend here that interest rates do negatively affect fertility rates, which if go unchecked can have disastrous effects on nations and the culture of their peoples in the long run. Accordingly, it may be beneficial for nations to consider interest-free financing modes. "

                            The shrinking population problem is a slow grind down and down.
                            Impoverished by Central Bank inflation to keep all the bankers fat and happy, we can no longer afford to have children. This brings the demographic crash where fewer and fewer workers are supporting more and more elderly.

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                            • Italy BBQs the EU.,,, JPM and their special vehicle

                              I travelled through Italy on a camping bus. I watched the sunrise over Sorrento on the Amalfi Coast. I hiked around Capri and swam in the Blue Grotto. I really like the country. They have not grown their economy one bit since they were sucked into the eurozone. The Italians have finally said, ENOUGH,,, Ya Basta.
                              They have finally elected leaders who will tell the EU to shove it. This was NOT supposed to happen. The opposition parties were supposed to be too fragmented and disparate to ever come together. BUT, they did come together to save Italy.
                              The EU in their infinite wisdom has threatened Italy to put a stop to populism. RIGHT, that is going to go over real well.
                              The EU must end national sovereignty over finance in order to kill off populist politics within the euro region, according to the Commission.


                              They try to destroy Italy with Immigration (al la the Kalergi Plan),,, and expect the Italians to just get in line. The EU is determined to enforce German austerity on Italy.
                              The Italians have taken the attitude BURN, BABY, BURN.


                              In for a penny,,,, in for a pound. The Italians are going full bore.

                              The Eurozone was supposed to be such a big improvement. The Italians saw what happened to Greece. The Germans did that to warn others who might think of leaving. They are trying to do the same with Britain. They plan to squeeze Hungary and Poland,,, maybe Austria. The new Italian budget is an unstoppable detonator.

                              Bloomberg says that the populists need to see reason. The Italians have been reamed by the bankers for years. THAT is all that Italians need to 'see'

                              The bankers have a plan. They will cause a sudden stop to Italian credit. I'm sure that the Italians have a plan too. Sudden default.


                              Insiders did a $bazillion in buy-backs to drive up stock prices. Evidently, they believe that the peak has been reached. The insiders are going "outside".
                              As companies boost their stocks with buybacks, share sales by company execs, board members and big investors are at a 10-year high



                              Think about this special vehicle that will essentially bypass SWIFT. This is a very big deal. It cuts out the NYC banks and SWIFT and, negates sanctions.
                              Where did this special vehicle come from???????
                              JP Morgan just launched the largest ever real-world blockchain application, developed to facilitate corporate cross-border payments.
                              There is no way to overstate the importance of this development. Russia has their "MIR" system and China also has a system. It looks like JPM is jumping to the front of the line of American banks.


                              I'm taking my BOV to my BOL and will be AFK for a few days.

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                              • gold clause,,, definition of "funded"

                                I was gone for 3 days and now, I'm a week behind. When I first starting writing, the signs of trouble were not obvious. People really didn't care. That was before the 2008 crash. Since then the signs are more frequent and more obvious. While the stock market is purposely shown as a bellwether indicator, the bond market is far more important. The sovereign bond market is what keeps the State alive.
                                "The US gross national debt jumped by $84 billion on September 28, the last business day of fiscal year 2018, the Treasury Department reported Monday afternoon. During the entire fiscal year 2018, the gross national debt ballooned by $1.271 trillion to a breath-taking height of $21.52 trillion.
                                Just six months ago, on March 16, it had pierced the $21-trillion mark. At the end of September 2017, it was still $20.2 trillion. "
                                "the surge in the debt in fiscal 2018 of $1.27 trillion was 33% more than the already mind-blowing average surge in the debt over the past seven fiscal years"


                                Lest you have any doubts, the debt can't just keep growing like a giant Sequoia.

                                How did we get here? Bill Bonner claimed that 1/2 of the debt burden on the State is lifted off by price inflation. 50% of the pain is printed away. Where and when did that all start?



                                I sent this to Walter Burien at the CAFR1 site.
                                "TIA, a Chicago-based nonprofit dedicated to government fiscal transparency, analysed and graded all 50 state governments’ fiscal health based on their latest Comprehensive Annual Financial Report (CAFRs) filings."
                                "TIA maintains in its report that the state has not funded $10.9 billion in pension and $9.3 billion in retiree health care benefits.“The state has put no money aside to pay for those promises."


                                Here is the reply from Walter Burien.
                                "Understand the slight of hand:
                                The word: Funded???
                                Let's say you bought a house for $625,000. Well if you paid cash, is it funded? No it is not. You still have Property Tax each year and if that is not paid, the local government could take your house. So, if your property tax was $20,000 per year and you established an escrow account, put $400,000 in it that generated $20,000 per yer to pay your property tax, is your house Funded? Well, actually not. There is insurance; maintenance; potential liens, etc., etc. etc....
                                Then there is always the chance you did what most do. That being take out a mortgage for $625,000. So let's see, fully funded??? Here you would need the $625,000 + the Interest on a 30-year mortgage, let's say $310,000 + everything else noted above, then you would be fully funded.
                                When a state now looks at their System Pension funds, they project ahead 20 / 25/ 30 /35 years, determine what the costs will be then and what the pensioner will be making "then" to have on hand "now" to determined "fully Funded".
                                Gives a new meaning to: "The state has put no money aside to pay for those promises."
                                Now enter the clear showing of total on hand now; what is actually paid out now; and most important of all; the additions from participants over that 20 / 25/ 30 /35/40 years. Are they still 11 billion short, or after accounting for the additions from participants over that 20 / 25/ 30 /35/40 years, AND a normal rate of return base on standards, let's say 6.5%, does the word "over-funded" ring clear today after the slight of hand of not including the contributions and return over that 20 / 25/ 30 /35/40 years are accounted for?????"

                                Boston University professor Laurence Kotlikoff says that U.S. GOV has $213 trillion in unfunded future promises. According the the CAFR reports some 37,000 GOV agencies have $200 + trillion stashed away.

                                Taking California as an example, about 50% of the money is in equities. So, 37,000 GOV agencies have $100 trillion stashed in stocks alone. How much are they earning? How about bond earnings?
                                The California University system reports that it has in excess of $90 billion. Just the same, they sell bonds to raise money fro building and maintenance.
                                We are continually squeezed so that the state can grow without limits.

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