Economic pressures

[Danny B]

Buy stocks,,, lay your neck in the guillotine

There can't be a slaughter until the sheep arrive. 9/02 Morgan Stanley issues 'full house' buy alert for stocks – Telegraph
Yep, pull out your wallets.
"Sooner or later, therefore, this mother of all financial bubbles will splatter, bringing untold harm to millions of households which have been lured back into the casino." Stanley Fischer Speaks——-More Drivel From A Dangerous Academic Fool | David Stockman's Contra Corner
Yep, the touts never stop selling.
The very sad part is that MANY millions of people are invested in the stock market without knowing it. Pension funds are already dying from ZIRP. This pushed them into risky deals in search of yield. This will be the "Coup de Splat". In the 2008 meltdown, their 401k became a 201k. This will be far worse.
Quantitative easing was when central banks printed new money. There is a recent new term,,, "Quantitative tightening" This is when central banks spend their FX reserves. China may have spent as much as $ 200 billion just in august. Quantitative Tightening Accelerates——EM Central Banks To Dump $1.5 Trillion Of FX Reserves By 2016-End | David Stockman's Contra Corner
The crash to a global-mean wage crashed discretionary spending and "excess" spending. We spend for necessities. World trade is crashing. Chart Of The Day: World Exports Turn Negative | David Stockman's Contra Corner
Once the sovereign bond defaults occur, international trade will crash even further. If you can't pay for a trade with bonds, then it has to be cash, barter or gold.
SO, how long do we continue down?
"We are now approaching that same last 4.3-year leg in socialism from 1934. This is the peak in confidence in government and it will evaporate rapidly as it did in 260 AD. This is not the end of the world, but it will be a chance to push back to restore our liberty. It will get bad at first because government will fight hard going into 2017. By mid-2018, we should begin to see the trend with more clarity for once and all."
The Next Four Years After 2015.75 | Armstrong Economics
Yes, but WHAT trend?
In "The Collapse of Complex Societies", Tainter states that; as a society collapses, it peels off layers of complexity like an onion. It just can't hold everything together. Panarin says that America will break up into 6 regions.
As if Things Weren't Bad Enough, Russian Professor Predicts End of U.S. - WSJ

The lower 48 is out of cheap oil. We have no train system. We may be going into an even worse drought; http://www.zerohedge.com/news/2015-0...d-mega-drought
Our entire system is over run by criminals. A total collapse of credit is in our immediate future.
EDIT, Kunstler i particularly pessimistic. http://kunstler.com/cluster****-nati...bye-to-normal/
Kilgore says that the entire stock market is blowing up; http://www.marketwatch.com/story/dea...ink=MW_popular
Smith claims that the stock market will be preserved at ALL costs; http://charleshughsmith.blogspot.com...g-to-fail.html
Ho-hum

[Danny B]

Energy markets

Headlines;
9/03 Fortress hedge fund president Bohart departs amid macro losses – Bloomberg So, how big is a macro?
9/03 Japan's trillion dollar pension fund stopped buying stocks – Business Insider Worse yet, they have tons of GOV bonds
9/03 Round two of global meltdown - watch this unfold... – GoldAndOilGuys I was just getting used to round one.
9/03 Not "if" but "when" central banks lose control – Zero Hedge They only imagined that they had control.
9/03 ZIRP + recession = death spiral – Wall Street Daily The world has been there,,, done that.

9/03 End of cheap fossil fuels could have severe consequences – Oil Price
This one is amazing. Egypt just discovered possibly the largest gas field ever. Norway is developing a gigantic field. Plants are going into production to convert natural gas into gasoline very cheaply.
http://pro.oxfordclub.com/DIGAS49PES...RER829/?h=true
http://www.nytimes.com/2015/08/31/bu...-of-egypt.html

We have pipeline wars because U.S. wants to keep Russia from supplying Europe with gas. Now, Egypt will be competing with Russia.
Hopefully, these developments will kill the nuke industry.

When the oil price crashed, Wall Street banks were on the hook for a few $ trillion in derivatives. The FED has been conjuring up about a $ trillion a month to rescue them. Hidden $Trillion QE Monthly Volume | Gold Eagle

"How Bad Are the Energy Sector Losses?

One hundred times worse than the common person can possibly imagine. The foundation of USDollar has had oil sector basis for 40+ years. The USTreasury Bond structural damage has been evident for several months and a dismantled Petro-Dollar factor is at work in a powerful manner.

Fracking shale weak fringe is being destroyed at the margin, the first line of damage. The shale, drillers, producers, and platforms are facing ruin in bonds, stocks. Private Equity firms are facing staggering losses. Fitch just made the bankruptcy call in energy sector, and at 2x to 3x the norm. In 1H2015, companies in energy, metals, mining sectors accounted for 57% of defaults. An armada of junk-rated offshore drillers are headed into bankruptcy, led by Hercules.
Recognized names are going bankrupt, with big collateral damage in the coal niche. There is enormous damage also in the financial sector (banks, private equity, venture cap, big investors). Due to counter-party risk financiers are on the hook. The big banks hold $trillions in energy derivatives, to bring death of Wall St banks finally. Many energy firms removed hedges recently to take profits now, and die soon. Recent losses in the energy sector amount to $1.3 trillion in valuation. "
https://www.perpetualassets.com/news...we-are-at-war/

[Danny B]

Donald Duck looking for trouble.

Headlines;
http://www.zerohedge.com/news/2015-0...estic-citizens
"Understand this now. As Jim Quinn explains, YOU are the enemy of the state. "
Why Are Foreign Countries Repatriating Gold From US Federal Reserve? Considering that they are dumping treasuries, there is no question why they are buying gold.
"Faber explains more... "I have to laugh when someone like you tries to lecture me what creates prosperity"
"It's A Tipping Point" Marc Faber Warns "There Are No Safe Assets Anymore" | Zero Hedge
This is the worst possible environment for stock market investors – Felder Report
Bill Gross's advice on "out of whack" economy: get cash – The Street
9/03 Bill Gross thinks everything sucks – Business Insider
9/03 Tens of thousands of companies fear closure in coming months – Ekathimerini
9/03 Central banker urges lying to the public about bank health – Zero Hedge
9/03 Gold 'claims per ounce' spikes back up to 126:1 – Jesse's Cafe Americain

And for a dose of stupidity, there is the Pentagram up at bat. "US Announces Intention to Set up Ship in the Black Sea" "This year, the US has sent the guided-missile destroyer USS Donald Cook"
Read more: US Announces Intention to Set up Ship in the Black Sea

"The USS Donald Cook (DDG-75) is a 4th generation guided missile destroyer whose key weapons are Tomahawk cruise missiles with a range of up to 2,500 kilometers, and capable of carrying nuclear explosives. This ship carries 56 Tomahawk missiles in standard mode, and 96 missiles in attack mode.

The US destroyer is equipped with the most recent Aegis Combat System. It is an integrated naval weapons systems which can link together the missile defence systems of all vessels embedded within the same network, so as to ensure the detection, tracking and destruction of hundreds of targets at the same time. In addition, the USS Donald Cook is equipped with 4 large radars, whose power is comparable to that of several stations. For protection, it carries more than fifty anti-aircraft missiles of various types.

Meanwhile, the Russian Su-24 that buzzed the USS Donald Cook carried neither bombs nor missiles but only a basket mounted under the fuselage, which, according to the Russian newspaper Rossiyskaya Gazeta [2], contained a Russian electronic warfare device called Khibiny.

As the Russian jet approached the US vessel, the electronic device disabled all radars, control circuits, systems, information transmission, etc. on board the US destroyer. In other words, the all-powerful Aegis system, now hooked up – or about to be – with the defence systems installed on NATO’s most modern ships was shut down, as turning off the TV set with the remote control."
https://futuristrendcast.wordpress.c...the-black-sea/

"The forward deployed U.S. destroyer that was buzzed by Russian fighters in April has returned to the Black Sea, according to photographs of the ship crossing through the Bosphorus.

USS Donald Cook (DDG-75) entered the region on Dec. 26 and is part of an ongoing U.S. and NATO presence mission that has started in shortly after the Russian forced annexation of Crimea from Ukraine.

The ongoing Operation Atlantic Resolve, led in part by U.S. 6th Fleet, to demonstrate U.S., “commitment to the collective security of our NATO allies and support for our partners in Europe, in light of the on-going Russian intervention in Ukraine,” read a statement from U.S. 6th Fleet.
“Donald Cook’s presence in the Black Sea will serve to reaffirm the U.S. dedication to commitment towards strengthening the partnerships and joint operational capabilities amongst U.S., NATO and regional Black Sea partners.”

Cook was in the Black Sea in April when two Russian Sukhoi SU-24 Fencer fighters buzzed the ship in an action the Pentagon called “provocative” and “unprofessional.”
http://news.usni.org/2014/12/29/u-s-...urns-black-sea
"US destroyer “Donald Cook” with cruise missiles “Tomahawk” entered the neutral waters of the Black Sea on April 10. The purpose was a demonstration of force and intimidation in connection with the position of Russia in Ukraine and Crimea. The appearance of American warships in these waters is in contradiction of the Montreux Convention about the nature and duration of stay in the Black Sea by the military ships of countries not washed by this sea."
http://www.veteranstoday.com/2014/11...s-donald-duck/
So, the navy was there illegally. The crew was frightened so badly that many of them requested transfer. Now, the ship is back.
"Provocative and unprofessional". What a crock. They got their butts kicked figuratively and that is all they can come up with.

[Danny B]

Negative effects of globalization

China figured that they could sell us stuff forever. They took our jobs and we quit buying.
"Over the past two decades, globalisation has fired on two engines: the belief that Americans would always buy the world’s goods, of which the Chinese would make the lion’s share – and lend their income to the Americans to buy more. That policy regime was made explicit during the Asian crisis of the late 90s, when Federal Reserve head Alan Greenspan slashed US borrowing rates, making it cheaper for Americans to buy imports.
And it was talked about throughout the noughties by central bankers fretting about the “Great Wall of Cash” flooding out of China and into western assets. The first big blow to that system came with the banking crisis of 2008, which made plain that the US could no longer afford to continue as the world’s backstop consumer."

"But what’s coming to an end is a terribly skewed system in which western consumers made up for disappointing wages by borrowing money from Chinese producers, who in turn bought up western bonds, banks and land."
The Guardian view on China’s meltdown: the end of a flawed globalisation | Editorial | Comment is free | The Guardian

The financial business wanted globalization and an end to trade barriers. That way money could fly to where it got the best return. The best return was usually accomplished where the wages were the lowest. With trade barriers gone, the goods could be shipped to high-wage States without tariffs. American wages have fallen for decades and are close to the wages in the 70s. Globalization has created a temporary "bump" in profits but, has wiped out discretionary spending.
People just don't have money for big-ticket items; https://confoundedinterest.wordpress...5-percent-yoy/
The FED created ZIRP to get the consumer economy moving again. The consumer was unemployed and debt-saturated so, ZIRP didn't help. ZIRP had the side effect in that it wiped out interest income for hedge, insurance and pension funds. ZIRP got little positive effect in the consumer economy and maximum negative effect in the investment industry. Investors live or die on "spread". ZIRP didn't allow enough spread for survival. The FED can't raise rates to give a bit of spread back to the investors without having a huge negative effect on the consumer.
The FED has gone catatonic;
Dollar strengthens after jobs report as Fed backs rate rise – Bloomberg
Jobs number disappoints, stock futures plunge – CNBC
Apparently, the jobs report is good enough to strengthen the dollar and bad enough to weaken stocks. The FED is looking for any excuse to rescue investors. Only 3 U.S. companies are AAA rated. The FED can raise rates to temporarily give interest income to investors but, the resulting crash of the producing economy will wipe out those same investors.

As global profits fall, everybody looks to cut costs. They bring in more and more automation. There is now a 3D printer that prints in 10 materials simultaneously. Cutting-edge 3D printer prints in 10 materials simultaneously - CNET
Additive manufacturing will take over from normal manufacturing. There is a constant fall in demand for human labor. The huge disparity between productive capacity and consumptive ability is increased by globalization.

[Ruphus]

Municipal Bonds

So I was looking into Municipal Bonds since some are free of federal taxes. However it appears that even they are at risk when the FED raises rates. Some of what I read said that Puerto Rico went belly up trying to pay off their bonds.

[Danny B]

Munis

Just be careful where you buy munis. Democrats Run America's Ten Poorest Cities - Eagle Rising
"641 cases of municipal bankruptcy have been filed since Chapter 9 was created. "
"California's pension-related costs rose 20-fold in the decade since 1999. This frightening trend is true almost everywhere in America. And it’s simply not sustainable. A recent Pew research survey found that the gap between state assets and their obligations for public sector retirement benefits is $1.38 trillion. It rose by 9 percent in 2010 alone"

[Danny B]

Kinetic weapons to defend the dollar

The U.S. dollar is mandated as the only acceptable currency in America. Outside our borders, acceptance is optional. You don't have to accept U.S. currency for your exports if you don't want to. Saddam Hussein and many others tried to bypass the U.S. dollar. That plan quickly brings death and destruction. The World accepted U.S. Treasury bonds as payment and a store of value. The bankers ran off quite a bunch more treasury bonds off the press that the treasury had authorized. China and Russia recently dumped hundreds of $ billions of U.S. bonds.
One would assume that; if they dumped extant bonds, they will NOT be buying any new ones. So, how long can we pay for imports from China? How do we pay?
Reportedly, 90% of produced silver goes to industry and 10% is available for investors. The consumption of copper is WAY down and one would expect silver to be similar. BUT, there is a huge shortage of silver for investment.
"SMI’s CEO Reveals US Mint’s Built Up Reserves of Silver Eagles & Blanks CLEANED OUT in Under Two Weeks
Power States Sunshine Has Been Running 24/7 Since 2009, and Reveals SMI’s MASSIVE Estimated Production Numbers for 2015"
Inside Look at Silver Shortage With CEO of US Mint's Silver Eagle Blank Provider | SilverDoctors.com
Previously, China dumped tons of treasuries to buy mountains of commodities. They also used treasuries to finance big foreign projects. They seem to have grown tired of vendor-financing and now want silver and gold.
FED GOV isn't too keen on this rejection of the dollar-bonds and has reportedly retaliated.
https://en.wikipedia.org/wiki/Kinetic_bombardment
China Tianjin Explosion Was Caused By Pentagon ‘Rod Of God’ Space Weapon Strike, According To Conspiracy Theorists
China's covert war with America heats up: warships near Alaska, another industrial explosion, and China unveils cruise missile that renders U.S. carriers obsolete - NaturalNews.com
Tianjin explosion conspiracy theories revealed | Daily Mail Online
"PREDICTION: Watch for yet more war posturing, currency devaluation moves, debt dumping attacks, cyber warfare, strategic hacking and "unexplained" explosions throughout the remainder of 2015. These are not random events. They are all part of the war with China that has already begun."
So, we have "rods from God" and "crowbars".

We are soon to experience a crash of the credit markets. China has formed the Shanghai Cooperation Organization and the BRICS bank. http://www.postwesternworld.com/2015...-organization/
In a crash of credit markets, there is no credit available. China has done currency swaps with dozens of States, including Great Britain. In a credit crash, States will pay with currency. Import-export can continue. When the U.S. bond market dies, all that is left is currency and gold. China and Russia will expedite trade with SCO and BRICS nations. Central Asia has all the oil and will work through the SCO. America does not have any currency swaps. We won't get oil on credit.
The big question is; will the revolutions in China preclude the survival of the SCO? Once the fracking industry is DEAD, American oil production won't be easily revived. Will the revolution in America finally stop our military from trashing the world?

[Danny B]

Ending ZIRP,,, eventually

Headlines;
9/06 Swiss inflation hits 56-year-low – Euro News None dare call it deflation.
9/06 Fed closer to 'monetary Y2K,' but not there yet – CNBC What happens when Y2K hits the FED
9/06 Socialism 101: Venezuela's inflation rate 808% – WND Ah yes, they depend on oil sales.
9/04 Pound's longest drop in 3 years defies signs that foretold gains – Bloomberg They must have been looking at chicken gizzards to get these signs.
9/04 Not even 'scissorhands' can cut Brazil out of its fiscal trap – Bloomberg Death will do it.
9/06 The margin debt time-bomb – Peak Prosperity There are several time bombs.

When currency went to fiat paper, there was little to limit expansion. If there was a bank run, people demanded their paper until the bank ran out. With electronic money, you just withdraw pixels. Suppose that a bank has $ 20 billion in assets and the depositors demand to withdraw $ 40 billion. Just as the bank creates illusory money to create a loan, they can now create illusory money to fulfil withdrawals. You can take your cashiers check home or you can deposit it in another bank. NOBODY has a way to tell if your pixels are fraudulent or not. As long as the FED and FDIC and other regulators keep mum, nobody will know.

"The most intriguing fact is that credit simply doesn’t exist. Credit is created through an accounting trick. If more than a fraction of all bank customers want to withdraw their “money”, it’s just not there. Credit only exists as book entries and in our minds."
"The medium used for indirect exchange is referred to as money."
"We must realize the subject of money is always a matter of trust, because money in itself has no use-value for us humans. "
"Therefore, what we use as money is a social contract to be used in trade and to store value, always based on trust." "Whereas commodity money has its value anchored in the free market economy, the value of fiat money is simply determined by the board of governors of a central bank. "
https://www.bullionstar.com/blogs/ko...oney-illusion/

"global Central Banks realized that their worst nightmare could in fact become a reality: that if a significant percentage of investors/ depositors ever tried to convert their “wealth” into cash (particularly physical cash) the whole system would implode."
"As a result of this, virtually every monetary action taken by the Fed since this time has been devoted to forcing investors away from cash and into risk assets. The most obvious move was to cut interest rates to 0.25%, rendering the return on cash to almost nothing.

This is just the start of a much larger strategy of declaring War on Cash. The goal is to stop people from being able to move their money into physical cash and to keep their wealth in the financial system at all costs."

"According to King, Gold has risen 37.43 fold since 1967. That is more than twice the performance of the Dow over the same time period (18.45 fold)."
http://www.zerohedge.com/news/2015-0...tocks-40-years
Deutsche bank is the largest bank in Europe. They have this to say; Europe's Biggest Bank Dares To Ask: Is The Fed Preparing For A "Controlled Demolition" Of The Market | Zero Hedge
The central banks have been buying tons of GOV bonds. They are running out of bonds to buy. http://www.zerohedge.com/news/2015-0...banks-now-play

Armstrong says that the U.S. dollar will just keep rising and rising. There is $ 9 trillion in dollar-denominated loans from the Emerging Markets. The higher the dollar rises, the harder it is to service these loans. Armstrong doesn't seem to entertain the idea of massive default. Armstrong says that the U.S. dollar will keep rising. He also says that U.S. GOV bonds will collapse. Not sure how that would work. A physical currency note is a demand instrument of zero maturity. A sovereign bond has a future maturity.
The Euro and Why the Dollar Will Not Be Dethroned | Armstrong Economics

Bonner and Associates suggest that we will run out of currency. http://dailyreckoning.com/day-atms-run/
They also suggest that; when the money runs out,,, so does the empire. http://bonnerandpartners.com/when-th...es-the-empire/
Zero Hedge and a few others have been right ALL ALONG. Why didn't the Central bankers get it right?
"That is caused by the fact that they still teach antiquated economic theories in school that are a barbarous relic from the past in and of themselves, and nobody with real world experience is willing to step back into academia to reshape theory. The only people who have to deal at this level tend to be international hedge fund managers who must watch the entire world. So the press airs domestic opinions and Fed the watches while there is a lot more going on behind the curtain."

"he Federal Reserve is trapped. They MUST raise rates to “normalize” the economy. With rates at virtually zero, there is less of an incentive to invest or to keep your money in a bank. We have reasonable bank balances that are probably the most I have ever kept in my entire life in a non-interest yielding checking account. The bank keeps offering 0.5% for fixed CDs and my response is that I would rather hand it to a homeless person. I remain nimble, short-term waiting for the turn. So just because cash deposits at no interest may be at highs keeping VELOCITY low, it does not mean that will not change with the turn of the blink of an eye. Then you will see gold rise, but not before."
http://www.armstrongeconomics.com/archives/36747
Wide reading suggests that the FED will raise rates. Originally, they chose to kill off the financial economy with ZIRP and preserve the producing economy. They seemed to believe that low interest rates would revive spending. The middle class is / was debt saturated and unemployed so, ZIRP didn't help. Also, it killed the income of people who depended on interest income.
94 million not in the labor force and wages way down for the rest. A rise in interest rates will put the brakes on all spending. That will put the brakes on profit in the stock market so, equities will crash too. Armstrong says that the FED must "normalize" the economy. I think he means, euthanise.

[Ruphus]

Let me see if my thinking is correct....


The FED will raise rates. This causes a jump to US bonds/T-bills ect. from a draw back of emerging market bonds. The EM countries will then need to cash in foreign treasury bonds they hold to try to pay off their bonds that everyone is selling to buy UST. Some to most of these FX reserves are most likely UST, so we shouldn't see a spike in the UST until we see many EM bonds defaulting, right?

[Danny B]

leverage in reverse

EMs have about $ 9 trillion in dollar-denominated debt that they issued. Much of this money went into the carry trade. They borrow dollars at ~2% and use that to buy 6% bonds somewhere else. This works until the dollar goes up and it becomes too difficult to repay. The leverage has gone into reverse. Capital is fleeing emerging markets and is not available to service loans. EVERYONE is demanding QE4 to supply the capital that is lacking.
The dollar is going up not because of it's popularity. It is in demand to service dollar-denominated debt.
Everyone wants more QE.

[Danny B]

more downlegs

Armstrong; Gold scam; "Internal Gold Bullion Exchange opened in Florida with the scam of selling gold coins at spot (4% below cost) but with delayed delivery of 90 days. The owner eventually went to prison for 10 years. If you want to trade back and forth, use the COMEX. " Texas Gold Promoter Claiming to Store Metals Found $30 million missing | Armstrong Economics
Armstrong says to use the COMEX.
"Note that, despite the alleged 275,000 ounces of gold deliveries that JPM posted three days earlier, the JPM registered vault hadn't changed."
The COMEX is a well known scam. Comex gold delivery fraud | TF Metals Report
"The information in this report is taken from sources believed to be reliable; however, the Commodity Exchange, Inc. disclaims all liability whatsoever with regard to its accuracy or completeness. This report is produced for information purposes only.

The above liability disclaimer was added to the Comex gold and silver warehouse stock reports about 5 months ago." The Golden Truth: The Comex Fraud Is Growing Larger - 69 Times More Paper Than Gold
This is a warehouse report that claims NO accuracy.

Headlines; 9/07 China cyber sanctions could come next week – CNN. Ah yes, and what will be the repercussions of that action?
9/07 ECB’s Nowotny: Euro zone inflation may turn negative – Press Examiner He managed to avoid the "D" word.
9/07 4 reasons why the Fed will try quantitative easing – Silver Coin Investor There are claims that the FED will print AND raise interest rates. They will double down on toil and trouble. It has been done before; https://www.youtube.com/watch?v=hVoOLdLgWaU
9/07 Bulls set to be tasered again by imminent severe downleg – 24hGold I like the imagery.
9/07 If you think that was a crash... – Burning Platform What crash,, I didn't notice. 9/07 94 million "not in labor force" is 60% of civilian labor force – Confounded Interest
9/07 US drillers about to start hemorrhaging: Schork – CNBC They have been bleeding profusely for a while
9/07 The hedgefundification of bond funds – Financial Times
What about the assigned value of the miners? World’s top 5 miners lose $540 BILLION market worth | Armstrong Economics

Since the economy runs on confidence, any loss of confidence translates into deflation.

[Danny B]

What is money?

I had to break it up.
" Classically it is said that money acts as a unit of account, a store of value, and a medium of exchange"
Armstrong; "The whole crisis stems from antiquated ideas that center on what money actually is. If you do not grasp what the true function which money actually provides within the economy, then you will be unable to get anything else right either. This entire idea of austerity is the crazy notion that money somehow should be a store of value."
What Is Money?
Therefore, interest rates are a reflection of anticipated decline in the purchasing power of money.

The Federal Reserve keeps talking about the “normalization” of interest rates. They will not come out and explain what I am writing right now because it would expose that the emperor is naked. The Fed sees that negative interest rates proposed by the legendary banking advocate Larry Summers who may have been an agent from Hell sent to Earth to wipe out the economy, are highly destructive and amount to a tax on money. Negative interest rates can only be totally destructive to all asset classes and furthers deflation to the extreme."
Money: What Is It? What is Interest? What is the Wealth of a Nation? | Armstrong Economics
Leaving aside the question of interest, there is still the question of store of value. If the viability of your store of value is dependent on the whims of GOV, YOU ARE SCREWED.
Money: What Is It? What is Interest? What is the Wealth of a Nation? | Armstrong Economics

[Danny B]

Lining up the sheep

Zero Hedge; "Second Largest US Pension Fund To Sell 12% Of Stocks Holdings In Advance Of "Another Downturn"
Money Map Dispatch; I want you to get rich off the hedge funds' rush to pick up shares.
This is the worst possible environment for stock market investors – Felder Report
"It is time to assume crash positions because we have not experienced anything approaching a crash thus far. We’ve hit nothing but an air pocket. As Dr. Hussman points out so succinctly, market crashes do not happen at the peak. There is usually an initial 10% to 14% decline as the smart money exits stage left, then the lemming dip buyers pile in and drive the market back up"
IF YOU THINK THAT WAS A CRASH?. « The Burning Platform
Rah, Rah, buy the dip and drive that stock higher in the dead cat bounce. LPI Stock | Today's Dead Cat Bounce Stock: Laredo Petroleum (LPI) - TheStreet

[Danny B]

Will stocks take out the bond market OR vice-versa?

Well, stocks went down. There are plenty of arguments that the smart money left the scene.
"Did the “smart money” know what was about to happen? Since the peak of the market, the Dow has already lost more than 2200 points. All of the gains since the end of the 2013 calendar year have already been completely wiped out."
"Earlier in the year margin debt had risen over $30 billion or 6.5% to $507 billion and was equal to a record 2.87% of U.S. GDP. This surpasses the previous all-time high of 2.78% set in March 2000 – the top of the last largest stock market bubble in history."
Well, now were in the largerist stock bubble. The Elite Have Prepared For The Coming Collapse ? Have You?
The Cloward-Piven strategy developed by the Chicago school of economics calls for people to make so many financial demands of GOV that GOV eventually, financially collapses. After this collapse, the Phoenix of prosperity for everybody is supposed to rise up out of the ashes. The collectivists are ready and willing to take over every facet of GOV and the economy. Agenda 21 has morphed into Agenda 30 and "they" plan to control everything.
"They" are going to kick this off at the end of September. https://solari.com/blog/heads-up-its-a-trap/
How prescient of them to schedule all of this just in time for Armstrong's call of a collapse of the sovereign bond market in October.

Headlines;
9/08 When "virtuous debt" turns ferociously vicious – David Stockman
9/08 China trade data goes from bad to ugly – AFR
9/07 Don't forget China's "other" spinning plate: trillions in hidden bad debt – Zero Hedge
9/08 Stocks, bonds, and housing are at 'peak valuation' – Business Insider
9/08 "If debt grows, it means that the world economy is still expanding" – The Corner Pure BS
9/08 Peak bond demand - now comes the $8 trillion EM Forex unwind – David Stockman
9/07 Forex reserves unwind could reverse bond supercycle – Reuters
9/08 The next battle in this 'currency war' starts next week – Money Morning
It's pretty clear that nothing can save the bond market.

[Danny B]

GOV will eventually eat the banks

China underbid us and took our jobs. Without a job, we couldn't buy stuff from China. China spent $ trillions building real estate that had no end buyers. This isn't a virtuous economic cycle and was doomed from the start. As China crashed, it brought down the resource economies.
" China is consuming 10% of the world’s oil and more than half of the world’s copper and iron. " The world is awash in over-capacity and VERY short of purchasing power. The Way of the Dragon - Beppe Grillo's Blog
China spent $ 236 billion dollars trying to rescue it's stock market,,,, because consumers couldn't do the job.
The banks never de-leveraged and the credit super-cycle is winding down. The Global Credit Supercycle: Full Frontal | David Stockman's Contra Corner

On the home front, SS disability insurance goes broke next year.
http://mercatus.org/sites/default/fi...-fund-vero.png
"Those deficits have been financed by redeeming nonmarketable government securities that were accumulated over the years when the program was bringing in more revenue than was being paid out. The government spent the surpluses on other government programs and credited the fund with the securities." Wars, maybe
The golden rule, "he who has the gold makes the rules" This is soon to be amended, "he who has the guns makes the rules. GOV has both the rule book and the guns.
"The cycle has changed. The wheel of fortune has completed its revolution. Governments are turning against the banks and looking to electronic currency. The days of rumored banking conspiracies are coming to an end, as it always does. The banks will be a giant short. When the Sovereign Debt defaults become a contagion, the banks will not be supported by government."
"Banking establishments are some of the WORST investors throughout history. They always go bust and government devours them every single time. Yes, the government has been protecting the bankers for they have also been fueling the debt and assisting governments to borrow. Therein lies their own demise. EVERY major banking house has been destroyed by this very same flirtation with power. They are like moths attracted to the flame of a candle, hoping to dance by the light and never realizing their wings may get burned."
"This was still not a Phase Transition. Why? Retail participation has been at record lows in stocks. This is a bubble in government debt — it is the reason why we are at a 5000-year low in interest rates."