Economic pressures

[Danny B]

Slow poison

Short recap When money is loaned with interest, the bankers create the principal but, not the interest. The volume of loans must always grow to create the capital to pay the interest. The income of the banker is dependent on always loaning out more and more money. This is the general principle of low-power money. The principal is destroyed on repayment of the loan and the interest goes to the banker.
With the fractional reserve system and Keynesian economics, it is mandatory to have growth in the credit system, money supply AND population. One person can only consume just so much and you must have 2 persons.
China has 1.39 billion people. India has 1.27 billion people. China had a one-child policy and is now crashing. India never had a one child policy and is getting by pretty good. Japan has a falling population and can't seem to get out of the dumps, no matter how much QE they do. China is doing more QE than Japan and America. It has been well proven that economic growth is directly connected to the number and % of 15---62 year olds.

When the consumption within a State is inadequate to keep air flowing into the the low-power money supply bubble, new consumption must be found outside the State. This is the foundation of the currency war. Cheapen your currency and you get more access to external consumption. A currency war is a round-robin devaluation of currencies by overprinting.
All of this is done to keep the money bubble inflated and people working. But, a currency devaluation is also a cut in wages for the workers in that currency bloc.
The production-consumption cycle is the bread-and-butter of the lower loop of the economy. The bankers thrive by creating more debt slaves BUT, this pulls money out of the producing/consuming economy.
When the income of the financial community starts to fall (commensurate with the fall in the lower loop), the Central Bank rides in with free money (high power) to keep the lower loop inflated. The free money goes into savings or investment or spending. It isn't paid back so, it inflates the low-power money supply as it bleeds in to the consumer loop. Meanwhile, the lower loop is deflating from lost wages and spending power. Most of the high-power money stays in the upper loop as debt instruments.

Celente says that a currency war has started. Gerald Celente: Globalists Will Collapse the Entire World Economy As "Currency War Has Begun"
As we sink ever-lower towards a global-mean wage (and automation), the trickle down from the inflated upper loop goes into everything EXCEPT wages. The transmission mechanism is broken and there is much talk of direct cash injections into the lower loop.
Some years ago, Paris Hilton was criticized for buying an expensive Ferrari. She paid for a lot of Christmas presents for Italian kids. Suppose instead that she had invested the money in a bond of some sort. The investment would have giver her a return but, it wouldn’t have increased consumption. The world is crashing for lack of consumption. TOO many people have forgone consumption to try to live off the interest income from their money.

This plan has gotten too crowded and nobody is getting interest-income.
7/02 Negative yield in 50-year bonds and entire Swiss yield curve – Mish
From The CFR, Euro area banks should have been recapitalized years ago, with public money if needed The mantra is; no bank will ever fail as long as we can bleed the taxpayer for the money. Follow the Money » Post-Brexit

As ZIRP moves deeper into the markets, investors take more and more risk looking for return. The more money that is printed, the more it goes into mal-investment. If investors or funds do NOT take risks, they see their principle shrink as price inflation eats away at it. Bank stocks are falling badly because ZIRP and NIRP are not compatible with their business plan. If the prime rate goes up, the financial side of the lower loop crashes. If the prime rate does not go up, the financial side of the upper loop crashes.

The free money combined with NIRP was a double dose of sweet poison. The high was great but, the extremities are starting to go numb.
"Goldman Sachs admitted as much this week when their top analysts claimed that the third wave of the financial collapse of 2008, is rapidly approaching. Aside from how weird it is to hear a major financial institution admit that the crash of 2008 never ended, a fact that Austrian economists, conservatives, and libertarians have been saying for years, they also admitted that debt will be at the root of the approaching crisis."
Goldman Sachs: The Third Wave of the Financial Crisis Is Upon Us

[Danny B]

Strange looking helicopter

This is news to me. Never heard it before;
The Oxford Club

[bistander]

This is news to me. Never heard it before;
The Oxford Club

So, did you buy it?

[aljhoa]

So, did you buy it?

opportunity to choose to deduct either state and local income taxes or state and local sales taxes when you file your return with the IRS…. but by “fairly recent” I mean, “passed into law a little over ten years ago.” This isn’t new.

Wait, but they said Obama just signed it in December!

Yes, but what was signed in December was the “permanentization” of that tax break. For the past ten years, this has been an exception that Congress has voted in each year — but it wasn’t part of the “permanent” tax code, so Congress had to renew it each year.

Now, it’s a permanent part of the tax code.

Which doesn’t mean your tax calculation will be any different this year than it was last year or the year before… but it does mean that you should be able to have more confidence that the tax break will remain on the books.

Can you really “Collect a ‘Cash Rebate’ on Nearly EVERY Single Purchase Made in 2015?” | Stock Gumshoe


Al

[Danny B]

Hugh Grant & Kyle Bass

I never looked into it but, Aljhoa has it covered.
The baby boomers are retiring at the rate of 10,000 a day signing up for SS. They need a lot of retirement money to keep alive.
"The total U.S. Retirement Market collapsed 21% from 2007 to 2008 ($17.7 trillion down to $13.9 trillion). The current U.S. Retirement market is valued at $24.1 trillion. When the U.S. broader markets finally crack, I forecast a 50% decline in the U.S. Retirement market in the first wave. This could take place over a few years. A 50% decline would put the U.S. Retirement market at $12 trillion, a little less than what it was in 2008."
Why The Collapse Of The U.S. Economic & FInancial System Has Accelerated | Zero Hedge

Kyle Bass;
"Bass said the country’s $3 trillion corporate bond market is “freezing up” amid rising defaults and cancelled debt sales. “We’re starting to see the beginning of the Chinese machine literally break down.”
"It's too late." The credit excesses had already been built. And in China, the credit excesses are already built. They've got, we can go into numbers, but they have asset-liability mismatches in their system, in the wealth management products, that are more than 10% of their system. And our asset-liability mismatches were two and a half percent of our system" Before the 2008 crash.

Bass: I think the behavioural psychology plays a huge part. I think the first inalienable right of human nature is self-preservation, and when you get into a thought of, okay, Hugh's position, is if it...if this were to happen, it would be so globally terrible that therefore, they're going to not let this happen.
Williams: When you talk about this handicapping the central banks, which we've all had to do, and it's essentially impossible. How do a group of free market capitalists handicap a group of academics? We speak different languages.
So we're starting to see...the academics will never turn and say, "We were wrong." The academics will go "more,"

Grant: this idea of helicopter money, and the idea of banning cash, and all these things that, when you sit here in the cold like that, you can see exactly why they need to do these things. You watch the narrative unfold in the media, and then the trial balloons get floated. But you're right, they have to go to helicopter money, they're really not going to have a choice. And it seems to me that they are going to have to try to ban cash. Because, as you say, the U.S. savings rate has tripled since 2007, and that's literally the last thing they want or need. So is there any way out for these guys? Because that's the thesis that I keep checking. I can't see a way out, absent cold fusion. Cold Fusion,,, how did that get dropped into the discussion?
Kyle Bass Shares The "Stunning" Thing A Central Banker Once Told Him | Zero Hedge

"Total public debt on Thursday was $13.93 trillion, and government loans to itself are $5.45 trillion." National debt jumps nearly $100 billion in one day to record high | Washington Examiner

Gold’s shimmer is sign of dark days ahead – Huffington Post
Deflation is blowing in on an eastern trade wind – Automatic Earth
Why Treasury yields are about to really plunge – Zero Hedge No interest income as far as the eye can see.
7/03 The EU is breaking up politically and financially – 24hGold Maybe the technocrats weren't so smart after all.
7/03 Japan clobbered by weak inflation, business confidence – Daily Times Japan is clobbered by a falling population and killed by competition.
7/03 Did she say QE 4? – GoldAndOilGuy if the economy can't support the too-numerous banks, the printing press will be enlisted forever.

7/03 Bad-loan ultimatum in India sees default risk climb most in Asia – Bloomberg Shoot, just yesterday, I wrote that India is doing ok.
7/03 All paper currencies are doomed, Marc Faber says – CNBC Nothing new there.
7/03 Central banks playing competitive devaluation, fund manager says – GATA Nothing new there.
7/03 When government controls ALL wealth – Bonner & Partners We have GOV, of the bureaucrats, by the bureaucrats, for the bureaucrats. That is why there is a revolving door between Wall st. and the District of corruption. The bureaucrats are living well and spending quite a bit of money. Our trade deficit is $ 45 billion a month. Should our credit card be torn up, the bureaucrats will scramble to squeeze out a LOT more from the productive sector.

7/02 America’s offshore tax cheats are feeling the heat once again – Bloomberg If GOV doesn't have access to your money, obviously, you are a cheat.
7/02 Canadexit: how to escape the clutches of Donald Trump and Nigel Farage – Guardian YES, you must remain in the clutches of Rothschild.
7/01 Crescat Capital 2016 investor letter: China QE dwarfs Japan and EU – ValueWalk The crash could very well set off the San Andreas AND the New Madrid
7/03 We may have reached peak pensioner – Guardian This calls for more chemtrails and more graves.

More graves, THAT is what we need;
(1) The US Senate Committee on Homeland Security and Governmental Affairs (3 October 2012) has established that there is no domestic terrorist threat;

(2) There are 300 or more FEMA camps distributed around the country and we know that Congress has authorized 30,000 drones for domestic surveillance;

(3) Since there is no domestic terrorist threat, the domestic surveillance and those FEMA camps are not intended to survey terrorists or to imprison terrorists;

(4) Since those drones and FEMA camps are either intended to survey terrorists or US citizens, it follows that, since they are not for terrorists, they are for US citizens;

(5) DHS has acquired more than 1.5 billion rounds of .40 caliber hollow-point ammunition, which is not even permissible in warfare under the Geneva Conventions;
(6) Since DHS does not conduct operations abroad, it has been acquired for domestic consumption and, since there are not terrorists, it must be for US citizens;

(7) Congress is planning for funeral homes, cemeteries and mortuaries being “overwhelmed” from a mass terror attack, natural disaster or other crisis; but,

(8) there is no domestic terrorist threat and no conceiveable natural disaster would justify this dramatic authorization for coping with staggering numbers of bodies.
Conclusion: The United States is planning for massive civil war, involving massive casualities, with the citizens of the United States. Consider the evidence. There is no way around it. That’s what’s happening.
Homeland Security: Preparing for Massive Civil War | Veterans Today

[Danny B]

Phantoms and proxies for trangible wealth,,, and BS theories

The FED funds lots of chairs and positions at many universities. The FED believes that it has a huge toolbox full of tools that it can use to control the economy. Lots of economists agree with the FED.
"This doesn’t work, so you create record amounts of new money and push interest rates into negative territory in an attempt to devalue your currency. But this — amazingly — doesn’t work either. " "What we’re witnessing, in short, is a catastrophic loss in the currency war. Contrary to every mainstream economic theory, debt monetization and full-throttle currency creation have resulted in a rising yen and falling prices."
"Abenomics and the desired impact of central bank policies are going into reverse. "

"Meanwhile, negative rates are especially murderous for bank shares. “Why should a central bank policy that hurts bank shares be good for a credit-driven economy?”
Something Huge Is Coming From Japan - DollarCollapse.com

Alan Greenspan; “You want to have as simple a model as you can get that actually captures the complexity of the forces in play… The FRBUS (Federal Reserve Board US) model… that model works exceptionally well for the non-financial area… The financial model was awful. It captured nothing. It didn’t grasp what the issue is.
"And I demonstrate what we have going - that we don’t measure correctly - are bubbles and their implications. Bubbles per se are not toxic. The 2000 bubble collapsed. We barely could see a change in economic activity. On October 19, 1987, the Dow Jones went down 23% in one day. You will not find the slightest indication of that collapse of that bubble in the GDP number – or in industrial production or anything else."
Credit Bubble Bulletin: Weekly Commentary: Greenspan on Bubbles

The Ivory Tower types are so distanced from the lower loop of the economy that can't possibly predict anything right. BUT, they are running the show for the pea-brains in the district of corruption.

[Danny B]

Arrested development,,, when GOV owns it all

All of Mother Nature's creatures must be able to care for themselves shortly after birth. The human child is an exception. Man relies minimally on natural programming and must spend a huge amount of time on brain development and learning. The child must be supported for years while it does basic development. After several years of basic development, the child must be self-motivated to learn to survive on it's own. A LOT of children can't/don't want to leave the comfort of the "nest". The basic family unit is socialist in nature because it supports the little non-producers.
BUT, it is the natural order for the non-producers to take on responsibility for their own survival. If a child refuses to take responsibility for it's own maintenance and survival, this is a case of Arrested development.

The ideal of socialism is centered on arrested development where we expect the State to take care of all our needs and desires. One of the things that makes capitalism "work" is that the profit motive encourages some people to produce far more than they consume. If you remove the profit motive, those people will not feel motivated to produce any extra. The U.S.S.R. slowly spiralled down into bankruptcy.

The non-productive people of the world, many being lawyers, bankers and bureaucrats, are great fans of socialism as long as they are above the rabble. The State exists only for control. As long as everybody is sucking at the government teat, the State has a great deal of control on everybody. Frederic Hegel said that the individual should be completely submerged and in total service to the State.

“It is just a matter of time,” says a friend writing from Switzerland, “before the feds own all our assets. They’re determined to keep prices high and they have unlimited resources.”

Yes, stocks, bonds, old copies of Mad Magazine… everything will be owned by the government.

Then our liberty will be complete. We will have nothing… and nothing to lose. We will have become what leading progressive economist Wilhelm Röpke had anticipated: the “stable fed” animals that depend on their masters to keep them going.

At last, we will have the kind of capitalism another economist – Karl Marx – dreamed of: capitalism without private capital.

The Deep State will control all our wealth. We will go to college on federal loans…
…we will drive cars, leased of course, at federally subsidized low rates…
…we will live in houses mortgaged by federal mortgage lender Fannie Mae… with the mortgage rates pushed down by its fellow manipulator, Freddie Mac…

…we will work for companies that depend on the Fed’s EZ money financing…

…and, of course, our medical care will be in the hands of the feds… and our retirement finances too.
Cradle to grave – Chapter 1 to Chapter 11… all on central bank credit."


"Each dollar in the private sector is either earned or borrowed. The feds and their crony friends get their money for free. Gradually, they own more and more assets… while the rest of the people owe more and more debt."
"The feds got out the knife in 1971. They changed the money system itself. They severed the link between gold and the dollar… and between value and price.

It was so subtle almost no one objected… and so clever almost no one saw what it really meant.
It took us more than 40 years to figure it out. "
When Government Controls ALL Wealth

J. M. Keynes wanted euthanasia of the rentier Nobody would have any capital except for GOV. Since GOV can print an infinite amount of free money, it can outlast everybody who depends on interest income. NIRP and ZIRP are destroying the banks. ZIRP and QE will hang around until the banks are bust. Instead of being slaves to the private bankers, we would be slaves to the central bank and central GOV.
Walter Burien shows GOV records that come out yearly demonstrate that GOV already own a ?$ 200 trillion in cash and asets. CAFR1 Home Page

Having the reserve currency allowed U.S. GOV to over-print the dollar to the point where it could buy up the private markets. The actions of the FED seem inane. The FED is buying up risky assets by the TON. WELL, they aren't risky if you are buying with free money. The FED can claim that it is stimulating the economy with all that free money. Job loss to automation and outsourcing gives it cover for buying everything that isn't nailed down.

The credit bubble is expected to collapse. Only entities with a printing press and GOV enforcement can be expected to sail on through the disaster. If GOV can successfully control petroleum and food distribution AND it's enforcers, it will have quite a lock on everybody in the collapse.

Thought of the day; "famous American scientist claims we live in 'zoo for aliens' who use us as entertainment
Renowned astrophysicist Neil DeGrasse Tyson says our planet could have extra-terrestrial keepers who created the ongoing political crisis for their own amusement"
http://www.mirror.co.uk/news/weird-news/after-brexit-trump-famous-american-8331944#rlabs=6%20rt$category%20p$8

[Danny B]

Splintering the EU,,, more bad economic theory

Italy is the third largest bond market in the world. It's banking system has started crashing. Renzi wants to save it by printing. He is telling the ECB and EU to "get stuffed" "We Won't Be Lectured" - Italy's Renzi To Defy Brussels Over Banking Bailout | Zero Hedge

"according to which the net income of virtually every social group of Americans has devolved dramatically in recent years. As a recent Pew survey showed, by 2014, median income had fallen by 13 percent from 2004 levels, while expenditures had increased by nearly 14 percent. "
Chicago Disintegrates - Gun Shootings Soar An Unprecedented 89%: "It's The Struggling Economy" | Zero Hedge

"The bail-in scheme was supposed to shift losses from governments to bank creditors and depositors, but it has served instead to scare off depositors and investors, making shaky banks even shakier. On top of that, heightened capital requirements have made it practically impossible for Italian banks to raise capital. According to Lorenzo Cordogno, former director general of the Italian Treasury, the result has been that the ECB is “unwittingly destabilizing the banks in an overzealous attempt to make Europe’s banks safer.”
Brexit and the Derivatives Time Bomb

"The social mood was darkening globally " Going… Going… Gone! The EU Begins to Splinter | David Stockman's Contra Corner

Western bankers and politicians, all being parasites, try to stimulate the economy so that they can rake off the best part,,, with the least effort. They pump in "money" into the upper loop and expect that it will stimulate the lower loop. This "wealth effect" is supposed to work magic. BUT, eventually, the bills come due.
"unleashed by the People’s Printing Press of China after 1994. But the incendiary hot house economy which resulted is now pinned under $30 trillion of unserviceable debt and the greatest eruption of malinvestment, excess capacity and sheer investment waste in recorded economic history "
The Curse Of ‘Wealth Effects’ Central Banking | David Stockman's Contra Corner

"So for the third time this century, a business cycle contraction will come without warning from the Fed. Once again the Cool-Aid drinking perma-bulls, day traders and robo-machines will be bloodied as they stampede for the exist ramps." "At the same moment, the futures market was signaling an open on the cash S&P 500 at 2110 or within 0.09% of its all-time high and at nosebleed PE ratio of 24X reported earnings."
"That’s right. Since the auto cycle bottom in mid-2010, retail motor vehicle sales have rebounded at a $360 billion annual rate, whereas auto loans outstanding have risen by $355 billion." NO problem, we're only $5 billion out of pocket.
http://davidstockmanscontracorner.co...building-wall/

GOV (bankers) took the interest on our savings account. Then, they figured that we would just spend the money since it wasn't earning interest. We did just the opposite and saved even more. Money velocity is down in the dumps and they need us to spend MORE. MORE consumption. On anything EXCEPT gold. Evidently they are starting to block gold sales.
http://www.silverdoctors.com/gold/go...anking-system/

7/04 Bear Stearns 2.0? UK’s largest property fund halts redemptions – ZH

[Danny B]

What can't go on,,, won't

"The S&P has more than doubled since 2009, while the Dow Jones has actually tripled." ,,, even though consumption is down.
"Real gross domestic product -- the value of the goods and services produced by the nation's economy less the value of the goods and services used up in production, adjusted for price changes" is going steadily down.
"When the Organization for Economic Cooperation and Development (OECD) examined income inequality, it found that the U.S. has the fourth highest income Gini coefficient — 0.40 — after Turkey, Mexico, and Chile. "
Ahead of The Herd - Quantifornication Revisited

"Two years in succession, the American unit of Deutsche Bank has failed the FED’s “stress test” "In 2007, Lehman had a leverage (the ratio of total assets to shareholder’s equity) of 31:1. At the time that Lehman filed for bankruptcy,"
"In comparison, DBK has a mind boggling leverage of 40x,"
"On June 29th, 2016 the IMF stated that “among the [globally systemically important banks], Deutsche Bank appears to be the most important net contributor to systemic risks," " We will not only see a repeat of this occurrence, again, but it will be exponentially larger than Lehman’s was!"
"The nominal value of derivatives risk that DBK holds on its’ books is $72.8 trillion" "What is more concerning and alarming is that the market cap of DBK is less than $20 billion."
Deutsche Bank to initiate the next “financial crisis”! - ETF Forecasts, Swing Trades & Long Term Investing Signals

7/05 Brexit is a Lehman moment for European banks – Bloomberg Bad news for Deutsche Bank
7/05 VIX, the market’s fear gauge, plunges in historic one-week move – CNBC
7/05 Investor fears spike – Wolf Street
The VIX isn't showing the fear but, the SKEW is.
7/05 This economist thinks China is headed for a 1929-style depression – MarketWatch They should be so lucky.

[wayne.ct]

Triggers and Indicators

I have (informally) been making a note of mentions in comments in blogs that I happen to read. Specifically, posts where people threaten or mention any sort of tax rebellion, refusing to pay taxes, etc. There has been an uptick in such posts. Again, specifically, a slew of posters latched on to the same notion. That notion being, if HC does not have to obey the laws, then the poster won't either. The bottom line being some form of tax rebellion.

This rebellion or civil war can be compared to the knee in a graph. The pressure builds up and then suddenly there is this abrupt movement. It has to do with confidence in the paper currency and the controllers of the circulation. I think we can count on the FED and Congress doing what they think is best to control the paper in circulation, but what is really critical and what they cannot control is the perceived value of a unit of circulating paper. When confidence is lost it will happen quickly. The people stocking the shelves with goods will follow directions and the prices will skyrocket. Confidence will be lost and people living on-the-edge will freak out.

The government employees and hired goons will get raises to cover their increases in cost-of-living, and everyone else will get destroyed. THEY will clean out the shelves of goods for sale and that will be the end. The people talking tax rebellion is an indicator or trigger of a change that is in motion.

That is how I see things at this moment. Tomorrow I may feel differently.

[Ruphus]

I'll just leave this here

Did The System Collapse?

[Danny B]

Details of the crash

Great graphic, Ruphus.
Here is a GREAT article. I won't excerpt it;
https://beforethecollapse.com/2016/0...1/#comment-497
Another great article;
"Brexit is just a symptom of the disease eating away at the fabric of our global economy. Lehman’s collapse was not the cause of the 2008 worldwide financial crisis. It was just the excuse for something that was going to happen no matter what. Bad debt, bad bankers, bad regulators, bad politicians, "
IT’S NOT THE BREXIT STUPID – The Burning Platform

Here is an article speculating about which currency will crash first and what will be used on the street for money; What Will Happen to You When the Dollar Collapses? | International Man

"When compared with official inflation this difference amounts to 7.5%. This enables us to verify the US GDP growth rate – officially at 2%. Using more accurate numbers we can see that the US economy is shrinking by 5.5% each year. " GREAT GRAPHS. Druckenmiller, Soros, Spitznagel, Gross Warn Of Crisis - ValueWalk

GOV "invented" paper gold a few decades ago so that the P.O.G. could be controlled. Why?
"Former US Treasury Secretary Larry Summers wrote that a phenomenon called Gibson's Paradox identified that rising gold prices have historically forced interest rates higher. These rising rates thwart prolonged inflationary money and debt creation by central banks."
"The scheme of suppressing global gold and silver prices for decades has allowed loose monetary policy globally by central banks over this period and has created a secular global bond bubble with worldwide bond holdings now exceeding $220 trillion and 340% of GDP - twice the historically sustainable level of 150% of GDP."
http://www.24hgold.com/english/news-...r=David+Jensen

So, was the bond bubble created to make the bankers rich and pay for wars and socialism, OR, was the bond bubble created to cause a mega-crash resulting population reduction and one-world control?

A word from your owners, 7/05
Letting central banks manage the economy might not be so bad – Bloomberg
You will have no other gods. 7/06 EU moves to crack down on bitcoin, prepaid credit cards – The Hill
7/06 Spain, Portugal said to face EU sanctions for budget failings – Bloomberg That sounds expensive.
7/06 Spain’s Social Security program will go bust in 2018 – Mish
Global investment skids to a halt
http://sputniknews.com/business/2016...-meltdown.html

All the rotten scum at the top are getting desperate to maintain power and wealth. Some of the rotten scum are trying to institute world socialism to maintain control. A lot of people are going to die earlier than they planned.

[Ruphus]

It's not mine. I did email the creator of the site to see if he will come share here as well.

[Danny B]

Dead bank walking,,, running for the exits

It takes your breath away to see how fast things are coming apart at the seams.
"Deutsche Bank is back on top, though on the wrong peak. According to a recent IMF report, it poses a bigger threat to the global financial system than any other bank in the world. "
"share prices on the floor, and a stock market value of only $19 billion"
"Deutsche Bank still has around $1.9 trillion of investments on the books. That amounts to more than half of Germany's entire GDP. " Why did the article not mention $ 70 trillion in derivatives?
"7,800 lawsuits have been carried out against the bank worldwide." " record losses of over $6 billion" "Deutsche's share price has halved itself once again this year. "
Opinion: The downfall of an institution | Business | DW.COM | 04.07.2016

The contagion;
7/06 US stocks, bonds, gold jump as EU banking system collapses – Zero Hedge
7/06 Italy may spur pan-Europe bank crisis – Bloomberg
/06 EU banks crash to crisis lows as funding panic accelerates – Zero Hedge
7/06 Government bond yields signal “something very nasty is coming” – Zero Hedge
7/06 Asia markets tumble as investors scurry into safe-haven plays – CNBC
7/06 Markets worry as Italian banks face the perfect storm – CNBC
7/06 Brexit erodes UK economic pillars, property investors flee – Bloomberg
7/06 Brexit shocks push the pound to fresh 31-year low – Bloomberg
7/06 Forget Brexit — China’s currency is falling again – GATA

[Danny B]

Bonner, the difference between paper money and credit

Steve Saville; "Most rational people with some knowledge of economic history will realise that the US$ will eventually be the victim of hyperinflation."
It's amazing how many writers, economists and, people in general believe that hyperinflation is coming because the FED increased the "money" supply.

Bonner; "The Fed is not printing money. If it were printing money, we’d have more money around… and higher consumer prices." "Yes, their new system is totally fraudulent and absolutely ruinous – just like an old fashioned money-printing scheme. But the fraud takes much longer to uncover… and the ruin is only obvious at the end. "
"Instead of printing money itself, the Fed allows banks to create an almost unlimited amount of credit "
" At first, this new credit-money acts much like printing-press money: It gives people money to spend that nobody ever earned. Everybody is happy.

But if you keep on creating more and more paper money, the fraud is soon obvious. Prices rise. People realize that they have no more purchasing power than they had before. " " By setting up this credit-money system, on the other hand, the feds avoided that problem… or at least, postponed it.

Between 1980 and 2016, for example, Americans spent $32 trillion in net, excess credit. That’s credit (and debt) above and beyond the historic relationship between GDP and debt. "
" If the feds had handed out paper money, prices would have gone up. But even in a recession, or a debt deflation, the cash would still be there. Printing-press money raises prices, permanently.

But a credit-money system is very different. Every new dollar that comes into the system is also another dollar of debt." "Now, American consumers, businesses, and government all drag behind them about $60 trillion in debt."
" Debt is just the flip side of credit. As debt goes bad, credit disappears. And then the system that created so much credit-money will go into reverse, destroying the nation’s money supply.

The money supply (actually, the supply of ready credit) will shrink – suddenly and dramatically. And what should have been a minor, routine pullback in the economy will become a catastrophic panic."
The Fed’s “Doomsday Device” Is About to Explode
Once you inject paper money into the system, you can't get it back out. A paper note exists forever. Credit is just a belief that relies entirely on confidence. "Americans spent $32 trillion" We've already had hyperinflation but, only in the credit supply, NOT in the paper money supply.

Planet Debt and the Deep State; Planet Debt
Armstrong said that 26% of Americans are hoarding cash at home.
"During the first and second quarters of 2014, the velocity of the monetary base2 was at 4.4, its slowest pace on record. This means that every dollar in the monetary base was spent only 4.4 times in the economy during the past year, down from 17.2 just prior to the recession. "

U.S. Banks Hoard $2 Trillion of Ultra-Safe Bonds - Bloomberg
Why Are Corporations Hoarding Trillions? - The New York Times
America's companies are hoarding $1.4 trillion in cash - Sep. 25, 2015 CNN
The Rich Are Hoarding Cash And It's Making Us A Lot Worse Off Huffington Post
Report: It's YOUR Fault: Fed Says Americans Who "Hoard Money" SHTF Plan

The cash supply is going into hiding and the credit supply is soon? to go into reverse.

7/07 A furious Italian Prime Minister slams Deutsche Bank – Zero Hedge Italy is the 10th largest economy and the third largest bond market. Was that a good idea?
7/07 Voodoo banking isn’t the answer – Bloomberg
7/07 “It’s starting to feel like 2008” – Daily Reckoning
7/07 Goldman warns of bear market in next few months – ETF Daily News
7/07 Our future is (literally) crumbling before our eyes – 24hGold
7/07 How to prepare for the worst bear market you’ve ever seen – Casey Research
7/06 Forget Brexit — China’s currency is falling again – GATA China already has $ 30 trillion in debt that it can't service. As it's currency falls, it's dollar-denominated debt will become much more difficult to repay.
7/07 Panic withdrawals force three more UK property funds to freeze assets – Zero Hedge The property funds allow instant redemptions BUT, it takes a long time to sell properties and raise the cash.
7/06 Brexit shocks push the pound to fresh 31-year low – Bloomberg That set off the redemptions. Every breach of confidence creates even more flight out of investments and into alternatives.