Economic pressures

[Danny B]

running on fumes everywhere.

Keynesian economics demands an ever-growing economy in a finite world. Our ever-growing debt burden demands an ever-growing economic bubble to generate the interest.
What about birth control?
"In 2007 the entirely predictable fuel of consumer debt ran out as the 25-54yr old US population (and likewise for advanced economies globally) peaked and began declining while the 55+ and 65+ populations skyrocketed. The indebted younger segment didn't have the size, the income, the savings, or credit worthiness to buy up the older generations assets. The older set (along with large banks) with little money but significant assets found the value of those assets falling precipitously."
"So, as the fuel of consumerist credit fueled excess was exhausted, the engines flamed out. We began a government debt binge attempting to postpone and substitute whom would be left holding the inevitable crash."

"However, opening ones eyes and parsing the data shows the ground is fast approaching and the nose is down but the landing gear aren't...a very bad outcome is imminent. "
"the 25-54yr old population and employment bust that followed the baby boomers exit. As the 25-54yr/old segment peaked in '07...the US (and global) economy stuttered and began it's fall"

The fall was QUICK. GDP minus federal debt is almost vertical. There is a great graph but, I can't link it.
"From '00-->'07, Intra-Government purchasing (with social security surplus dollars) funded the largest portion of the growth in US debt "
"From '08-->'11 the Intra-Government purchasing slowed as the 25-54yr old population segment began declining and their employment (and SS revenues slowed even faster while SS payouts ramped with the retiring baby boomers)."
A good dose of chemtrails will cut down on all those pesky baby boomers.
"However, since '12, almost all Treasury debt buying has fallen to the Fed / Foreign held category." SO, who is doing the buying?

"An overview of purchasing during the 3 periods. The collapse of the SS surplus and the US's inability to purchase it's own debt is clear...but also clear is the US's inability to slow the growth of debt."
Wait a minute. Social Security has no surpluses. What is going to fund my retirement?

" but that the only buyer of the debt left is "foreign holders"
"So who among "foreigners" is buying??? The chart below shows six nations are carrying the weight of maintaining US Treasury yields at multi decade lows. It's Japan plus the "BLICS" nations (Belgium, Luxembourg, Ireland, Cayman Islands, and Switzerland). Japan is running record trade and budget deficits while the BLICS (the antithesis of the "BRICS"), have no dollar trade surplus or budget surplus' in need of dollar recycling. So the BLICS massive purchases, on par with the Fed since July '11, of record low yielding US Treasury debt is more than dubious. It's preposterous. It points to a 3rd party purchasing with a political rather than profit motive. Again, the Federal Reserve is the only one with means, motive, and opportunity to buy this debt through offshore, untraceable intermediaries."
Belgium bought $ 141 billion of U.S. treasury debt to bring their total to $ 400 billion. That is 29% of their GDP even though they had NO dollars in reserve.
Dr. Paul Crag Roberts: Belgium and US Treasury Debt | Greg Hunter’s USAWatchdog

The FED claims that they have stopped QE. It's Belgium, Luxembourg, Ireland, Cayman Islands, and Switzerland doing all that buying.

Hambone's stuff: Veneer of US Growth & Normalcy Has Worn Paper Thin...Reality Plainly Visible Through the Fraud
OK, so no landing gear,,, no social security,,, no buyers of U.S. treasury debt. What could possibly go wrong?
The bond bubble is $ 86 trillion. What,,, me worry?
Mind The $76 Trillion Global Bond Bubble——Even The ‘Experts’ Are Getting Scared | David Stockman's Contra Corner
93 million Americans are not in the labor force. Why should that matter?
http://www.zerohedge.com/news/2015-0...ecord-93194000

[Danny B]

Markets running on vapor,,, no hyperinflation

93 million not in the labor force. 50% of the population receiving a check from GOV. GOV is injecting the bucks that keep that keep things rolling. Even with all the GOV printing supporting the economy, consumption is dead. How can the stock market rise when consumption is dead?

"Over the past year I’ve talked quite a bit about how sales seem to have disappeared from valuation models altogether. This is factual. I’ve had a look at BMO’s economic/market outlook (2yrs) and not once did they mention sales, not one time. "
Here is a graph showing sales vs price in the S&P;
http://www.firstrebuttal.com/wp-cont...1.10.07-PM.png
" What we find here is that real sales have yet to make it back to pre crash levels. " So, the stock market is rising even without sales or earnings.
"by diverting capex to income justify just about a 40% increase in market valuation. That’s right, while CEO’s have been maintaining average PE ratios by shrinking the business, investors have been rewarding them with record high valuations. Investors have been getting rich, C-suite managers have been getting rich and employees have been getting laid off. Sounds like a can’t lose growth strategy eh??" This is called "eating your seed corn".
This Is What It’s All About Boys!!! | First Rebuttal

Here is a horrible graph of stock market volume vs price;
http://www.24hgold.com/24hpmdata/art...-05-08-002.gif
"the rally out of the 2009 low has been stretched into the longest 4-year cycle advance since the inception of the Dow Jones Industrial Average in 1896."
"Fact is, the secular bull market and the underlying economy peaked in 2000. Pushing this market to new highs once again and extending this cycle has been an attempt to jump start the underlying economy and in the process it has masked the secular bear market from the general public. "
Ah yes, and all of it done with faulty models.

" that this has become the most dangerous stock market environment since the inception of the DJIA in 1896. "
"This is the longest 4-year cycle extension ever and yes, the Money Masters have done a masterful job at manipulating the market. But, they have not changed the underlying characteristics of the market. They are losing their effectiveness. The deflationary forces will have their way."
"I told my subscribers in December 2013 that commodities had peaked and that has obviously been proven correct as commodities have lead the way this time. Equities and housing will be the next shoe to drop and once the setup is solidified, there will be nothing the Money Masters can do. "
http://www.24hgold.com/english/news-...=Tim+Wood&mk=1

All of this prompts the question; IF
The bond market blows to smithereens on schedule,
The stock market finally shows the effects of NO earnings,
Commodities have peaked,
Real estate valuations come down to earth,
Where will investors flee to?

Armstrong shows pretty good reason to believe that hyperinflation is caused by a loss of faith in GOV. Everybody flees savings and crowds into tangibles. Our current levitated economy that ignores fundamentals seems to be a pretty good example of that. We have inflation of markets but, NOT hyperinflation. Many forecasters are calling for eventual hyperinflation.
I suspect that market valuations are so transparent that investors WON'T flee into a given sector when it passes a certain valuation level.
The mania of "tulip bulbs" is beyond what current investors will fall for.
The widespread dissemination of sound financial advice keeps investors away from the mania necessary to hyperinflate any given sector.
GOV is trying to counter this by charging investors to store money. Negative interest rates.

It is painfully obvious that investors would rather lose principle than invest into a mania. German Bunds are negative through the whole maturity range. The CBs want hyperinflation to carry away the debt load like some magic carpet.
The Western consumer has been impoverished by his low-wage competitor. The stock market knows this and refuses to invest in CAPEX. Since the whole
productive sector and the consumer have crashed, the financial sector refuses to sign on to a mania that would bring hyperinflation.
The CBs print but, nobody wants more debt notes. The hoped-for hyperinflation refuses to appear, mostly because of the internet. How can you produce a mania when EVERYTHING is scrutinized by 5 million people within 10 minutes. Look at the Facebook IPO.

GOV is rabidly desperate to keep the bubble levitated. They were hoping for a period of hyper levitation. They captured academia hoping that there would be no dissenting opinions from the ivory towers. They couldn't capture many of the independent financial analysts. The word got out. The manias are/were stillborn. ZIRP didn't do enough to light up the "animal spirits". I suspect that the curtain will fall without hyperinflation,,, except in gold.

[wayne.ct]

Thank you, Danny

I must first thank you because you read and summarize sources that I, frankly, am not following. I thought the Jeff Nielson article made a particularly important point. It also explained some of the reasons behind the point. The point I refer to is the way ALL the banks are connected and move in lock step. They have a way of rewarding fellow bankers that exhibit certain behaviors and punishing those that exhibit contrary behaviors. Likewise, large customers and the "governments" are locked in to certain reactions and responses. Why? Because their dollar based assets are too large to reallocate in any meaningful way. If they were to try it, they would suffer enormously. They will ALL be in a lot of pain when the velocity of money collapses. The collapse of cash flow is already becoming evident in the charts shown and it is something that cannot be controlled by government edict. If even as little as 10 percent of the population cannot be fed and entertained, it will be "game over" for the current "economy". I don't see things continuing as they are much longer.

[Danny B]

Bank ratings for the upcoming default

wayne. ct, you're very welcome. It takes a lot of reading and background information to make sense of market moves. I try to condense down to the important items.
You can smell the fear in the air. GOV is trying to do away with cash, partly to eliminate bank runs. Bank runs can be done with the click of a mouse. In Switzerland, they forced negative interest on the funds. The funds went to cash and placed it in their vaults. GOV is confiscating cash right and left. They can't very well accuse the funds of abetting criminal activity by holding cash. GOV can make a bit of headway on the little guy but, Can't very well control the big guys.

Martin Weiss rates all of the financial institutions;

Strongest & Weakest Lists

Annuity Insurers
Strongest | Weakest
Auto Insurers
Strongest | Weakest
Banks & Thrifts
Strongest | Weakest
Business Insurers
Strongest | Weakest
Credit Unions
Strongest | Weakest

Health Insurers
Strongest | Weakest
Homeowner Insurers
Strongest | Weakest
Life Insurers
Strongest | Weakest
Long-term Care Ins.
Strongest | Weakest
Medigap Insurers
Strongest | Weakest

Weiss Ratings
It's a no-brainer to look at your bank or find another. You can bet that the big money managers do this regularly.

Sadly too few people will take the time to find a relatoively safe place for their money.
"Personal savings, according to the Bush 2007 Bankruptcy Reform Act, are treated like donations to banks, then structured as unsecured debt. The bank derivatives are treated as secure debt. In the event of bank failure, the derivatives will be honored first. In so doing, the entire national savings held in banks will be wiped out, since the derivative debt is in the hundreds of $trillions, far outweighing the volume of national savings in the low $trillions."
U.S.A. Caught in Enormous Policy Vise

All the pension funds will be wiped out. BTW, the Amish don't pay into social security. They take of ALL of their own.

[Danny B]

bankers an runaway greed

"The big money center trading banks have been not the conquerors of the economy, they have sealed their own death wish."
"They cannot see that they will be trading only with themselves and that will be their downfall. The term Black Friday was not a shopping day. It was when they stormed Wall Street and hanged the bankers. Greed and stupidity will be their downfall. "
Velocity of Money – The Harbinger of Future Omens | Armstrong Economics

[Danny B]

currency wars and controlling the world

Poiticians created both the Viet-Nam war and the Great Society program. They printed money to pay for them. Various States asked for gold because the dollar was being debased. In the summer of 1971, gold was leaving the treasury at the rate of 100 tons a week. Nixon closed the gold window. This caused various monetary authorities to hang their heads in both fear and sorrow. This one occasion was what prompted Ron Paul to enter politics. America now had the Bretton Woods credit card to make wars.

NO fiat currency can serve as the reserve currency. The various monetary authorities knew that a new reserve currency would have to be concocted. They came up with the idea of the Euro. It would be insanely dangerous to let the U.S. dollar / reserve curency collapse if there were no replacement or alternative. The Euro was a flawed design because no currency union had ever survived if it didn't also belong to a political union. The Eurocrats figured that they would force a political union after the inevitable crash.

The IMF$ crowd did not like the idea of a competing currency supplanting the U.S. dollar. The Eurocrats figured that the crash could be postponed until Brussels had enough entrenched bureaucrats so that there was no danger of a popular rebellion. The Eurocrats didn't take into account that the cultural differences between variious States doomed the Euro.
FOFOA: Clean Float – Why the Dollar Must Collapse

They also didn't count on attacks from the dollar camp. Goldman Sachs did the dirty work making sure that various southern States were able to hide their debt until it turned REAL toxic. The ECB has done so many crazy maneuvers that it is hard to picture the Euro as a competing reserve currency.
Plan "A" was for a GS technocrat to run Greece and sell off everything super cheap to the bankers. It was critical that a technocrat ran the show.
The Greeks managed to escape plan "A".

GS didn't plan for the banks to get screwed by a Greek default. The District of Corruption did NOT figure on Greece kicking out NATO. The criminals in D.C hope to bottle-up Russia. They can't do that if Russia still holds the port in Sevastepol. They can't do that without the participation of Greece. They want Greece to collapse but, they don't want to lose NATO. They also shot themselves in the foot over Turkey. They are crazy about controlling the Bosphorous but, they treat Turkey like feces.

Between Langley and D.C. we continue to screw the world and blow things up. We have a huge garrison in Japan to insure that they continue to buy treasury bonds. Lately, we have threatened their leaders with death if they don't inflate and supply liquidity to continue to buy treasuries.

Our Bretton Woods credit card is close to expiration. The world has built up their industrial capacity and does not need ours. They are not rolling over our bonds. They are cashing out. They will refuse to accept treasury notes for OIL. They will gladly accept G.O.D. for settlement of accounts,,,NO MORE rolling over the debt. Gold on Demand.

[Danny B]

The curse of having lawyers run politics

A currency is called "fiat" if it is mandated by law and not the choice of the markets. The average life of a fiat currency is 40 years. The dollar became completely fiat in 1971. That makes it about 44 years old. It's reserve status extended it's life. The reserve status is winding down. The dollar is winding down. Many people envision a crash ahead. They picture a crash of some market or another.
Armstrong; "The interesting aspect is how outside the United States people are much more aware that there is a huge problem. They tend to not grasp the debt is the problem this time and just using the word “crash” automatically invokes visions of the stock market rather than government."
This time, it will be the dollar and GOV.

"The best way to explain the crisis in the Euro that is tearing Europe apart at the seams is the blunt fact that politicians do not understand CURRENCY. The downfall of lawyers running everything is that they assume if they merely write a law that ends the problem. The Swiss/Euro peg failed precisely because of this attitude. When people think I am an amazing forecaster to have stood up in Berlin and said the peg would go, I merely explain that to the contrary, pegs have NEVER worked even one time no less fixed exchange rates. So just playing the odds would be on my side even if I did not have a computer. This is the downside of lawyers. They assume a law can prevent the free market forces. Sorry – they ALWAYS lose."
"The politicians are lawyers so they did not understand currency, and then they created a huge central government in Brussels that is dependent entirely upon the survival of the Euro. They will defend the currency to save their jobs at the expense of the entire European economy."
Dresden | Armstrong Economics

Lawyers/ politicians make laws that run counter to human nature and / or market forces. 55 mph speed limit,,, alcohol prohibition,,, pot prohibition, et al. While these stupid laws are in force, it rakes in a LOT of money to lawyers and the court system. They will try to enforce these laws til the walls come crumbling down. The parasites just don't give up. What else can they do,,, get a job at Home Depot?

It wasn't always this way. At one time, bankers had morality. It enforced a gold standard and was enforced BY the gold standard. The original charter of the FED was very reasonable. It was strictly a back-up for commercial banks in the case of a panic. The war mogers took control and the gold standard was tossed so that we could make war with our national credit card. The lawyers took control from the bankers. It wasn't always that way.
http://www.zerohedge.com/news/2015-0...-gold-standard

We are in a situation where market forces have been held back like a coiled spring. The lawyers make decrees. Everyone but the parasites suffer. Human nature and the market will have the last say. The lawyers/bankers have made new laws. In the event of a crash, all the wealth goes to them.
Post script; I just changed to a SSD and "Mint".

We have an operating system that uses bad models. We are constantly repeating failed policies. Our administrators are corrupted by power. We have lost our job to low-wage competitors. The parasites will take it to the limit just to save their jobs,,, no matter the effect on the economy. The FED has created about $ 27 trillion but, Summers says that we need more stimulus. Academia is absent to save their jobs.
It seems that spellcheck has deserted me. Expect more mistakes.

[Danny B]

More cashless BS

"Forcing everyone to spend only by electronic means from an account held at a government-run bank would give the authorities far better tools to deal with recessions and economic booms,” states the introduction to Leaviss’ article.

If you think that sounds authoritarian enough, it gets worse. Leaviss then suggests that your hard earned money be “monitored, or even directly controlled by the government,” with authorities then working to “encourage us to spend more when the economy slows, or spend less when it is overheating.”

Once wonders what form this ‘encouragement’ will take. A tax on bank deposits? Negative interest on savings? Limits on how much you can spend each month?

That’s precisely what Leaviss advocates when he calls for a “transaction tax” that would penalize people for spending their own money.

Under this system, commercial banks would stop taking any money from depositors, instead relying on central banks to provide all their funds. "

Prison Planet.com » Economist: Ban Cash and Force Everyone to Have a Government-Controlled Bank Account
"commercial banks would stop taking any money from depositors, instead relying on central banks to provide all their funds"
What a marvelous idea. Why didn't they think of this earlier?

[Danny B]

America crashed badly and GOV tried to print and borrow to support everybody. The FED is owned by bankers. The FED was mandated to create zero interest so that GOV debt didn't grow too fast. The bankers responded by creating ~ $ 440 trillion in interest rate swaps that essentially locked the FED into zero rates that had been expected to last about 6 months. If the FED raised rates, the bankers expected to make great profits from the default of the swaps. Under new legislation, they could legally take all accounts in a crash.
While investors were stumbling along looking for yield in a ZIRP world, the economy crashed even further because interest-income became a thing of the past. Evidently, the banks are willing to crash and loot the entire productive economy to grab up all the savings and property. With no interest income except in the junk-bond market, safe investment became a thing of the past.

The corporate world thought that ZIRP was just great because they could easily finance buybacks. The other side of the coin was; consumption was dead because $ trillions were extracted ( lost interest income ) from spending into the economy.
Yields are collapsing because nobody wants to invest long-term into an economy that is obviously crashed. Yields Are Collapsing on Short-End | Armstrong Economics

The bankers and their swaps have essentially locked up the politicians who control the FED and Treasury. The very large segment of the economy that depends on interest income is getting weaker every day. This whole segment is preparing for a crash.
http://www.zerohedge.com/news/2015-0...ency-liquidity
Theoretically, GOV could declare all swaps and derivatives to be null and void. Practically, this will never happen even with good intentions from GOV. This is all moving too fast.

[Danny B]

Reflation attempts

Here is a graph showing wages-to-corporate-profit;
http://streettalklive.com/images/1da...tio-051215.PNG
The rich and powerful are living in la-la land. They are quite pleased that they have driven wage-cost way down by outsourcing. This euphoria has blinded them to the fact that there is no economy if the consumer has no money.
STREETTALK LIVE - The Daily X-Change - 3 Things: The Labor Hoarding Effect
When we crashed into low-wage markets, we crashed into deflation. What else can you expect when 94 million of the labor force are not laboring. Giving China, Most favored Nation status helped the bottom line in the short term. Today is the "tomorrow" that we didn't worry about yesterday.
The financial industry is dependent on the producing economy to generate revenues. Post WW II, we had a lock on manufacturing. We lost that. We went into crashing economic deflation.
The PTB injected $ trillions into the financial loop of the economy to REFLATE the upper loop. Our wages had steadily dropped since the early 60s. We were offered longer and longer credit terms to keep the economy and credit structure from shrinking. We were supposed to BORROW this reflation money. Because we were debt-saturated from the unwise over-use of credit, we couldn't qualify for more credit.

The faux money just sat in the banks garnering .25% interest for the bankers.
GOV keeps claiming that good times are just around the corner. Statistics show that this isn't possible;
Wake-Up Call For B-Dud And The New York Fed Staff—-This Isn’t “Transitory” | David Stockman's Contra Corner

It has become obvious that reflation of the upper loop hasn't done any good, except for the rich. There are 2 proposals for reflation of the lower loop.
1. Mail a BIG check to everybody; To fix the economy, let's print money and mail it to everyone - Vox
2. Mail a monthly check to everybody; A bipartisan proposal to make a universal basic income a reality in America

[Danny B]

socialism, capitalism, and the other ism.

Here are a few quotes that show part of the problem.
“Not only our future economic soundness but the very soundness of our democratic institutions depends on the determination of our government to give employment to idle men.”
~Franklin D. Roosevelt
Democracy cannot succeed unless those who express their choice are prepared to choose wisely. The real safeguard of democracy, therefore, is education.
Franklin D. Roosevelt
Woodrow Wilson, still president of Princeton University in 1909, speaking to the New York City High School Teachers Association: "We want one class of persons to have a liberal education, and we want another class of persons, a very much larger class of necessity in every society, to forego the privilege of a liberal education and fit themselves to perform specific difficult manual tasks."
Eugene V. Debs, president of the American Railway Union, mounted his candidacy for US president in the election of 1912, attracting over 900,000 votes on the strength of his belief that "the workers are the saviors of society, the redeemers of the race."
The Servant Problem | Mother Jones

Capitalism apportions it's rewards to those directly involved. Charity, theft and trickle-down are available to those who are not producers. Pure free-markey capitalism is like Mother Nature. She spreads her wealth to those who work hard. Even the bible says; The seed that falls on stony ground shall wither and die.
Socialism calls for; from each as to his abilities,,, to each as to his needs. This has never, ever woirked.

The Industrial Revolution is slowly working it's way up the Ability Ladder. Almost all heavy manual labor is now done by machines.
AI, CNC and mechanised productivity is eliminating the need for many workers. As programers get smarter, there will be ever-less need for managers. Politicians are essentially managers. Leave out the part about thieving, corrupt and incompetent. AI can do a far better job of managing the economy. This has engendered a worldwide call by politicians for socialism. Naturally, they also call for GOV to control ALL money.
Gordon Brown Adopts Marx’s Theory – Eliminate Cash Will Eliminate the Boom Bust Cycle | Armstrong Economics

We are motivated to work for personal survival. We are also motivated to work for the survival of our direct genetic lineage. Sometimes, this is carried as far as our "clan". After that, we are motivated by profit. Socialism, essentially removes the profit motive. Socialists would have us substitute the good of the e-x-t-e-n-d-e-d group for personal profit. As we have less and less need for politicians and managers, we see an ever-greater push for socialism to preserve the life style of our public servants.
These perks must be preserved at all costs ( to us ).
Champagne wars in the Lords as peers say no to a cheaper vintage | Politics | The Guardian
There is a very large number of people who have nothing worthwhile to offer to the productive economy. Some are employed, some are not.
There is a very large number of people who DO have something worthwhile to offer. Some are employed, some are not.
Socialism never works. There is no current paradigm or plan to support all those who have been displaced. The PTB are pushing for world socialism as a default plan.

[Danny B]

Blow up the economy to reduce food production.

Everywhere you look, there is some "agent" working for population reduction. Poison vaccine, water, drugs, air, food, etc. Deagel projects a very large drop in population for America.
http://www.thecommonsenseshow.com/20...-depopulation/
There seems to be an endless supply of infectious agents at work killing as many people as possible. This program doesn't seem to be killing fast enough. Historically, the PTB have relied heavily on famine to cut down population.
Then and Now: British Imperial Policy Means Famine

Argentina was a big food exporter,,, they were crashed economically.
Ukraine was a VERY important food exporter,,, they have been crashed economicaly.
California is crashing thanks to HAARP and the drought.
Our current economioc crash was completely predictable. Also, incompetent people were put in charge to ensure that there was no change of course. The lowest point is expected to be in 2020.
The Coming Crash of All Crashes – but in Debt | Armstrong Economics

How can we possibly have a crash in the bond market,,, and still preserve the Futures and options market? Farmers rely on the F&O market for financing. The farmers are ALREADY doing badly.
http://www.zerohedge.com/news/2015-0...quidity-crunch

This isn't just limited to a few countries. Catastrophic Fall in 2009 Global Food Production | Global Research - Centre for Research on Globalization
Food shortage are not just an accident. Corn ethanol is a net energy loser BUT, it reduces available food.
"On July 4, 2008, The Guardian reported that a leaked World Bank report estimated the rise in food prices caused by biofuels to be 75%."
http://www.world-crisis.net/food-crisis.html

2012, "For six of the last eleven years the world has consumed more food than it has produced. "
http://thetruthwins.com/archives/glo...lmost-40-years
The credit bubble in America was no accident. Both the FBI and SEC warned in 2004. Both were silenced. The bubble must continue to grow. When it is popped, I expect it to have a very big effect on farmers.

[Danny B]

Demurrage currency

There is little that is new under the sun in the financial world. Many years ago, some do-gooder parasite came up with the idea of taxing money ( currency ). This was supposed to force you to spend it and keep the economy booming. Negative interest rates are already doing this to savings held in banks. Widespread confiscation of cash ( it MUST be drug money ) is causing people to avoid cash savings. Some big funds are holding huge gobs of currency in their vaults to avoid negative interest rates.
GOV plans to simply depreciate all cash that is held in savings. NOT really a new idea.
"the Fed should be permitted to “tax” physical cash to force cash holders to spend it (put it back into the banking system) or invest it."
Ahhh yes, hand it over to the bankers and GOV.
"Again, the Fed has declared a War on Cash, and a “carry tax” is coming."
http://www.zerohedge.com/news/2015-0...-physical-cash

Oz seems to be the test platform. "We have to stop this confiscation of all wealth and the continual borrowing and taxation. This will lead to the total destruction of Western culture, for we are plagued by insane power-hungry politicians, who cannot see past their nose.

The new compulsory control is provided in the 2015 Australian budget, so that everyone who has any savings must pay taxes on their savings. The measure is expected to serve as a global test balloon for Europe and North America, who will watch for the outcome in Australia."
"For the banks, the government’s plans are anything but good news. Abbott’s anti-capitalism view will undoubtedly put him up there with Lenin, once history is allowed to be honestly documented, perhaps in a hundred years or so."
"The introduction of this tax on money in Australia led by Tony Abbott is the trial balloon for the global economy. The IMF’s Christine Lagarde has led the battle to impose French socialism/communism upon the entire world. I have warned that she is the most dangerous woman on the planet. Do not forget, it was the French elite who sold the idea of communism to Marx – not the other way around. Now the French elite have control of the IMF and they have persuaded all other global financial institutions to also require such a compulsory levy for several years because they see it as the only way to resolve the debt crisis – just confiscate the people’s money."
Australia First to Introduce a Compulsory Tax on Money Itself | Armstrong Economics

The mega-parasites plan to tax your DOLLARS. They are all in this together so, the G-20 will work together to make sure that no Western country will be a safe haven for currency. You can expect them to tax your Euros and Pounds,,, and Aussie dollars. The simpletons seem to think that there is nowhere to flee. What about the Yuan?
China's ICBC to set up offshore yuan center in Los Angeles | Reuters
The Russian currency and stock market are doing very well also.

The socialists will drive capital flight. Investors have abandoned bonds. What happens when the stock market rolls over? Even NBC recommends investing in Russian stocks.
Ignore sanctions, invest in these Russian stocks
When France collapsed financialy from the machinations of John Law, you couldn't leave the country until your coach had been searched to ensure that you weren't carrying any gold out of the country.
All it takes now is the click of a mouse.
GOV enacted FACTA to stop people from depositing in foreign banks. Capital controls never work in the long run.

[Danny B]

The Debt To GDP Ratio For The Entire World: 286 Percent

"Just prior to the last recession, the U.S. national debt was sitting at about 9 trillion dollars. Today, it has crossed the 18 trillion dollar mark. "
"total Chinese debt has grown from 7 trillion dollars in 2007 to 28 trillion dollars today. "
"When the loss of confidence in the Fed, the ECB etc. begins, the stampede out of stocks and bonds will start."
To where??? That is the big question. The money can't flow into commodities,, not into emerging markets. It is trying to flow into investments that are far distanced from reality.
"Internet companies that have gigantic valuations without gigantic revenue streams are being called “unicorns”…"
" Social-sharing site Pinterest has soared to $11 billion. Ride-hailing company Uber is now worth a staggering $50 billion."
"Yippee!!! JC Penney ONLY lost $167 million in the first quarter. The Wall Street shysters are ecstatic because they BEAT expectations. Buy Buy Buy.

This loss now brings JC Penney’s cumulative loss since 2011 to, drum roll please, $3.5 BILLION."
All these $ trillions are looking for a home. Forget return,,, they're just looking for safety.
The Debt To GDP Ratio For The Entire World: 286 Percent
There will be NO safety because the god of supply-and-demand will be the final arbiter. There is no demand for all these debt instruments.

The "Tobin Q" ratio says that stocks will fall regardless of what the money printers do. http://www.zerohedge.com/news/2015-0...stocks-crashed

[Danny B]

Slicing up the shrinking pie

The West is crashing economically. Everybody wants a guaranteed income. Obamacare is supposed to give a guaranteed income to big pharma and the medical profession. The Trans Pacific partnership; "If the Trans-Pacific Partnership passes, investors will be guaranteed their “expected profits” no matter what."
The Trans-Pacific Partnership and the Death of the Republic | WEB OF DEBT BLOG
EVERYBODY wants a guaranteed slice of the pie. The pie is shrinking FAST.
GOV is creating new debt at the fastest pace ever.
"We have our eye on the U.S. bond market. Prices have been going up – and yields have been going down – for 32 years."
Our “Junkie Economy” Will Soon Hit Rock Bottom - Bonner & Partners
The only thing backing the bonds is the productivity of the American worker.

The ULTIMATE guarantee of an endless income is GOV approved theft. It's called "fascism" if it's done by the big guys and socialism if it's done by the little people. Naturally, it must be enforced by guns. The less you produce, the more attractive that socialism is. if you are productive and hoping to build a career, it isn't very attractive and you look for new pastures.
CBN TV - France's Reckoning: Rich, Young Flee Welfare State

All the non-productive entities are looking for someone productive to hitch their cart to. The pie is shrinking every day. The cart will have to be unloaded.
https://www.youtube.com/watch?v=tWa_QMuQLoc