Economic pressures

[Danny B]

Now is definitely the right time to buy stocks

Institutional investors have a one $ trillion short position against the stock market. Obviously, they are all stupid and wrong.
“There’s an enormous demand coming,” said Thomas J. Lee, managing partner at Fundstrat Global Advisors LLC., in an interview with Bloomberg TV . “Retail investors are about to put a lot of money into the equity markets because they’re trend followers and the S&P has had two positive quarters in a row" I call BS
The $1 Trillion Short Underlying Stocks' Spring Awakening - Bloomberg
Obviously, the institutional investors are just a bunch of worriers. The economy is all roses.
"In terms of wholesale sales, as noted this morning, overall sales peaked in July 2014 – meaning nineteen months (thru Feb 2016) of deceleration into sustained contraction." http://www.alhambrapartners.com/2016...hain-slowdown/

“Despite risk assets enjoying a few weeks in the sun our fail-safe recession indicator has stopped flashing amber and turned to red”
"Fed Chair Janet Yellen joined her predecessors Ben Bernanke, Alan Greenspan and Paul Volcker, all of whom argued that the U.S. economy is not only not in a bubble, but is on solid footing and a good trajectory."
There you have it. The official denial by FOUR FED chairmen.
"Once again our best and brightest – the very people who caused the problems to begin with – are telling us that everything is fine and there is no bubble." Economist Warns: ?A Tidal Wave Is Coming? Recession Indicator Has Turned Red? « InvestmentWatch

Here is a long article arguing that; the more systemic a bubble is, the harder it is to recognise. Credit Bubble Bulletin: Weekly Commentary: Bubble Economy or Not?
4/09 The debt bubble is bursting. Could this be curtains for stocks? – Economy And Markets
The internet is making it increasingly more difficult to fleece the sheep.
Reggie Middleton shows good numbers to prove that 50% of the portfolios of banks are JUNK. They are leveraged to the moon with very small loan-loss-provisions.

Zero Hedge - RationalWiki
rationalwiki.org/wiki/Zero_Hedge
Feb 4, 2016 - Zero Hedge is a bat**** insane Austrian school finance blog run by a pseudonymous founder who posts articles under the name "Tyler Durden ...
A large percentage of their readers are in the finance industry. It's amazing how many dumb people there are in finance.
The FED is having an emergency meeting tomorrow because the wheels have come off in the last 4 weeks; Full-Blown Panic Mode At The Fed? | Zero Hedge

"French economist Richard Cantillon noticed something especially nefarious about this dynamic way back in the early 1700’s. When such a fiat money system is employed, the people who receive the new money first – always the politically connected and financial elite – become fantastically wealthy while everyone else becomes poorer over time. In other words, Cantillon said, this system actively transfers purchasing power away from everyone who holds money, and it funnels this purchasing power directly to the few people who are on the receiving end of the printing presses!"
http://www.zerohedge.com/news/2016-0...th-great-reset

[Danny B]

Deutshces bank,,, Jim Kirwan

Just 2 links with no excerpts;
Deutsche Bank Says World "Past The Point Of No Return" In The Default Cycle | Zero Hedge
'Something Wicked This Way Comes'

[Danny B]

Crashing socialism

The people of India are poor. They were born that way and they live with it. Socialism tends to take money from the future to raise living standards. It's one thing to have a continuing, low standard of living. It's a whole different story to have a better standard of living and then, crash down. This makes people very cross.
"It's Pure Chaos Now; There Is No Way Back" - Venezuela Morgues Are Overflowing | Zero Hedge
Venezuela has more oil than Saudi Arabia but, they mismanaged it and spent their future oil earnings,,, today.
Brazil has the same problem; Economic Collapse Is Erupting All Over The Planet As Global Leaders Begin To Panic

GOV is made up of fools and power-mongers at the upper levels. They are ALWAYS too late at taking action; ZIRP, NIRP, QE, Bank Collapse and Helicopters Coming Too Late - The Lehman Effect Hits Europe - Hard! | Zero Hedge

The State wants no competition for your loyalty. Marx was very clear in his hatred of the family;
"Kengor begins by examining Marx’s sanguine conviction that the dissolution of bourgeois marriage was an historical certainty. This was desirable as well as inevitable as the root of social problems was the child’s antisocial education within his family. The work of John Dewy, upon which the Soviet education system is grounded, and numerous other “progressive” education philosophers of the era supported the idea. One wrote that it was the task of the educator to take “bigoted, homophobic religious fundamentalist” students and assure that they left college “with views more like our own.” (p 25, quoting Richard Rorty)"
How the Left has taken down family, marriage, and the nation
It didn't seem to occur to them that destruction of the family would cause destruction of both mental health and society.

For the last couple thousand years, gold moved up when interest rates moved down. Investors moved out of bonds when interest rates went down because gold tends to minimise their losses from the currency inflation that is necessary to drive interest rates down. The warfare-welfare State did not want money flowing out of bonds. In 1980, paper gold was invented.
The turnover in the paper gold market is 200,000,000 ounces a DAY. This has worked OK for a while at driving down the price of gold even when interest rates are low. BUT, there are just too many parties who are taking physical delivery.
"The LBMA thus has next to no visible London gold stocks backing the estimated 11,000 to 19,000 tonnes of spot gold open interest. And bullion banks are now attempting sell their once needed, now empty, London vaults. Only one recent vault sale of note has occurred with a Chinese bank buying the new 1,500 tonne vault that Deutsche Bank put on the market"
Moving to the Post LBMA-Era Gold Price Reset - Watch Out | David Jensen | Safehaven.com
The biggest vault in New York has also been sold. So, DB sold a vault that they just completed.
World socialism has been cruising along on it's "future" gas tank of unlimited credit. It's running on fumes because the ratio of producers to non-producers has gotten skewed too far.

Here is a graph of the population of Rome; http://s3.amazonaws.com/armstrongeco...tionofrome.jpg
"People left the cities fleeing taxes. The population of Rome itself just collapsed. No city ever matched that size again until the Victorian era in London. This is how empires die. The cost of government always rises oppressing the private sector since the public sector is like a drunk – it just consumes and has the hand out claiming he needs money to eat instead of drink. The people either leave or revolt in their struggle to cope with the persistent unpredictable demands of government that historically NEVER lives within its means."
https://www.armstrongeconomics.com/w...o-empires-die/

Historically, people leave a collapsing empire to go to the countryside and do subsistence farming.

[Danny B]

Scrambling to squeeze out the last penny.

Reportedly, the Japanese have $ 365 million worth of Yen stashed at home. Americans have plenty too. The quantity of money is very important but, the velocity is important also.
"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. This implies that the unprecedented monetary base increase driven by the FED’s large money injections through its large-scale asset purchase programs has failed to cause at least a one-for-one proportional increase in nominal GDP."
Report: It's YOUR Fault: Fed Says Americans Who "Hoard Money" Are To Blame For Poor Economy

Low velocity causes much the same effect as a deflation in the currency supply.
"today 40% of all interest paid by the United States goes overseas" This too, is deflationary. https://www.armstrongeconomics.com/w...o-empires-die/
Here is the effect; http://s3.amazonaws.com/armstrongeco...-cl1.jpg?w=269
The central banks are injecting money into the upper loop at the same time that the lower loop is losing money. We have deflation in the lower loop and inflation in the upper loop. They average it out and claim"stagflation".

China, India, Viet Nam, Bangladesh, et al crashed down wages. We slide towards a global mean wage. Our purchasing power has crashed and velocity crashes with it. With purchasing power crashed, industry and finance don't do any investment. Their customers are broke. Trying to hold on to margin, they cut overhead by outsourcing. Wages trend lower.
Not surprisingly, ALL components of the stock market are crashing; "This Is Where The Good News Ends" - JPM Says All Margin Subcomponents Are Rolling Over | Zero Hedge

GOV is not about to go quietly into the good night. It is going to rip out every dime it can find.
"Those in power are simply liars; why we elect such people is beyond me. We cannot afford career politicians because they ALWAYS create a divide between themselves and the people. NO REPUBLIC has ever resisted converting into an oligarchy. It just does not work. I reported that Obama slipped and actually said the truth by mistake. In the case against Apple, he said if the government could not break into phones then EVERY American had the equivalent of a Swiss bank account in their phone. This is not about terrorism; it is about the hunt for money and their mismanagement of the economy."
https://www.armstrongeconomics.com/p...ng-encryption/

[Danny B]

The death of the petrodollar and the death of U.S. treasury bonds

Armstrong is brilliant but, I have to disagree with a few of his conclusions.
'If the dollar is the CORE RESERVE CURRENCY and the reserves around the world are really in US government bonds, just how does anyone assume you can flee" He postulates that international reserves are in U.S. Government bonds.
"One of the more surprising market developments of 2016 has been the violent obliteration of those who had taken part in the biggest consensus trade of 2015, namely long the USD." "The result: this week saw the biggest two-day USD collapse against a basked of foreign currencies in years"
"The decline started in late January and has occurred during the critical local New York trading hours. The US hours downtrend looks likely to continue in the near future."

What becomes immediately visible when one looks at the chart below is that all of the USD selling in 2016 has taken place during US hours. "
A Strange Pattern Emerges When Trading The US Dollar In 2016 | Zero Hedge
Armstrong; " When an empire dies, it historically has ALWAYS been by DEFLATION/STAGFLATION. How? Real wealth is driven from the ABOVEGROUND economy into the UNDERGROUND economy where it is hoarded and tucked away. This is why we find hoards of Roman coins. This reduces the VELOCITY of money and commerce collapses. This is ALWAYS AND WITHOUT EXCEPTION how empires die. "
https://www.armstrongeconomics.com/w...o-empires-die/

The gold bugs are expecting hyperinflation,,, not me. GOV would very much like hyperinflation to take most of the pain out of paying off debts but, it can't happen without a wage-price spiral. That isn't going to happen with a global mean wage. That is why GOV talks about using helicopters to drop free money.
Armstrong postulates that worldwide wealth is held in the form of U.S. bonds. This is absurd. NOBODY is buying U.S. GOV paper. The FED is buying all of it. https://srsroccoreport.com/the-crash...two-scenarios/

Armstrong's premise is incorrect. Where does that leave his conclusion? Away from GOV pressures, money is whatever people say it is. This is also true for the store of value. It has never worked to have your transactional currency the same as your store of value. Most of the world has agreed that gold is the best store of value,,, no matter what the pendejos in the West say.
If nobody is holding U.S. GOV bonds as a store of value, they can't very well have worldwide circulation.
Armstrong is adamant that confidence in public debt will completely crash. How can he claim a crash in public debt but, a rush to hold U.S. T bonds?

Central banks are buying each other's bonds; Someone Behind the Curtain Buys... | Silver Doctors
Armstrong is correct that public debt will crash. He is wrong that people (worldwide) will run to U.S. Treasuries.
U.S. GOV is going to print a new dollar that is expected to be devalued by 30% at the start. Other devaluations will follow as GOV over prints to fund itself. If no State wants U.S. treasuries, they certainly won't want to hold any large amount of U.S. dollars. We will have to pay as we go.

We defaulted when Nixon closed the gold window. We got a reprieve with the petrodollar. The reprieve has run it's course.
U.S. GOV bought votes with promises. These promises have gotten too expensive and GOV goes in the red by $5 trillion a year. Ron Paul said that everyone who depends on GOV money is going to be screwed.

[Danny B]

The dollar gets a daily thrashing

The petro-dollar is getting hammered every day. The banks have $140 billion in unfunded loans to energy companies. While the price of oil goes down, the banks can look forward to throwing away a LOT of money; The Bearish Case Against Oil Gets... Bearier... | Zero Hedge
Andrew Levin aimed a bazooka at the FED. "A lot of people would be stunned to know” the extent to which the Federal Reserve is privately owned, Mr. Levin said. The Fed “should be a fully public institution just like every other central bank” in the developed world"
He is Bernanke's former advisor. Bernanke's Former Advisor: "People Would Be Stunned To Know The Extent To Which The Fed Is Privately Owned" | Zero Hedge

The desperation is certainly showing; Ben Bernanke: "Helicopter Money May Be The Best Available Alternative" Ben Bernanke: "Helicopter Money May Be The Best Available Alternative" | Zero Hedge

The consumer economy is kept going by discretionary spending. That is long gone; 19 Signs That American Families Are Being Economically Destroyed | Zero Hedge
The heavyweights have weighed in and their conclusion, BAD crash ahead.
http://www.24hgold.com/english/news-...n+Popescu&mk=1

Power corrupts and attracts the already corrupted. A gold standard is the only thing that can keep the corrupted in check. A State will go off the gold standard every time that it is getting ready for war. In the case of Pox Americana, it started the Viet Nam war before going off the gold standard. It went off 7 years later.
A gold standard is also incompatible with a welfare State. A free market rewards those who work. Socialism rewards everyone regardless if they earn a living or not. Fascism rewards the rich in excess of what they actually earn or produce. The reserve-currency status of the U.S. dollar has allowed both socialism and fascism to grow. The rich don't want trump because they are on the GOV gravy train.
It's kinda stupid. The crash is going to bring them down anyway.
Wages went down,, prices didn't. The rich were able to skim off even more money. They have slowly come to the realization that they "have starved the goose that lays the golden eggs. Money has to circulate or it loses it's value. See, the rich can't actually spend very much of their money. They stash away $ billions. That stash is always at risk of evaporating.

"There have been over 3,400 fiat currencies, and all of them have failed. According to the article on Washington’s blog, The Average Life Expectancy For A Fiat Currency Is 27 Years …"
Their best chance for preserving the value of the DEBT instruments that they hold is; to stabilize the economy AND currency. This is accomplished by preserving as large a middle class as possible. This gives the best confidence and the best currency circulation. "They" are talking about using helicopters to replace our lost money. That would be just another bandage. Won't work for long. https://srsroccoreport.com/must-see-...money-vs-gold/

[Danny B]

Oil and banks,, China and China,, Charles Hugh Smith

There are 200 million barrels of oil waiting to be loaded with super tankers parked for miles. The can't unload but, they must pay a daily rental. Stunning Photos Of Huge Oil Supertanker Lines Forming "World's Biggest Traffic Jam" | Zero Hedge
• OPEC Warns of Deeper Cuts to Oil Demand (BBG)
• US Banks Not Prepared For Another Financial Crisis (G.) Oil will bring a crash right to them.
• SocGen: Corporate America Is Nearing A ‘Toxic’ Debt Crisis (BI) 50% of their paper is rated junk.
China;
• China’s Trade Data Has Never Been This Fake (ZH)
• China’s Leaders Are Blowing Their Last Chance To Avert An Economic Crisis (AEP)
• IMF: $1.3 Trillion In Corporate Bank Loans At Risk Of Default In China (Sky) Every loan that defaults brings a cascade of defaults.

Charles Hugh Smith;
This can't be said politely: the entire status quo in America is a fraud.
The financial system is a fraud.
The political system is a fraud.
National Defense is a fraud.
The healthcare system is a fraud.
Higher education is a fraud.
The mainstream corporate media is a fraud.
Culture--from high to pop--is a fraud.
Need I go on?
We have come to accept fraud as standard operating practice in America, to the detriment of everything that was once worthy.
"centralized hierarchies select for fraud and incompetence. Now that virtually every system in America is centralized or regulated by centralized hierarchies, every system in America is fraudulent and incompetent."
oftwominds-Charles Hugh Smith: The Entire Status Quo Is a Fraud

[Danny B]

Gold backed Yuan for international trade

China bought several thousand tons of gold. The standard bar for CBs and investors is 400 oz in gold and 1,000 ounces in silver. China sent all this gold to Switzerland to be remelted into 1 kilogram bars. Since the gold went directly from London (et al), there could be no tampering. When the gold was melted, the various cores and blanks of tungsten were obvious. I suspect that the purveyors of tungsten had their payments reduced correspondingly.
The one kilogram bars are pristine. You can trust the Swiss.

China produces no sovereign government bonds. I believed that China would offer gold-backed GOV bonds to draw in investment. Gresham's Law shows that the best currency will be used for a store-of-value. I did not believe that China would offer a gold-convertible Yuan. A gold backed bond could go into hiding without any problems. A gold-backed currency can not.

"And with a new gold-backed Yuan to be issued next Tuesday, the entire world will have a choice of a new currency to use for international trade: "
Maybe if it is used exclusively for international trade it can avoid the problems enumerated by Gresham's Law.

"When this new currency is issued, countries that have been forced to use US Dollars for decades, and have had to keep billions of dollars in their foreign currency reserves, will be free to dump those dollars. But they won't be able to dump them to China for the new gold-backed, Yuan!

China has reportedly decided "there can be no conversion of gold-backed Yuan to or from US dollars." What China fears is that many countries around the world will want to trade their reserve US dollars for the new Yuan, leaving China with mountains of worthless US dollars. "
https://www.superstation95.com/index.php/world/1152

https://www.armstrongeconomics.com/m...ril-19th-2016/

[Danny B]

The rising dollar

America is the largest tax haven. This attracts a lot of money that is driving the dollar up.
"The dollar will rise and with it this will break the monetary system. It is unlikely that would unfold before 2018. Nevertheless, this could come in 2020. We get major monetary reform ONLY when the dollar rises. A declining dollar will will see US corporate profits rise. Only a rising dollar will break the system. US banks are far safer than European. Those preaching the dollar will be destroyed so buy gold now do not even understand finance nor do they comprehend history. It was the rise in the dollar in 1933 because of the Sovereign Debt Crisis in 1931 that sent the dollar to record highs resulting in its devaluation and confiscation of gold."
https://www.armstrongeconomics.com/i...while-you-can/

The dollar may very well rise to the detriment of other currencies. BUT, if other currencies crash, the blowback may very well take out all the U.S. banks.
London is slowly losing power. https://hendersonlefthook.wordpress....ritish-empire/

[Danny B]

China revolution,,, Peter Schiff

50? million people live off the rental of their money. They justify the interest charge because they have forgone consumption to lend the money to you. When money is created out of thin air, this argument becomes very tenuous. We lost our jobs in the West and were on the brink of default. The CBs created huge mountains of new debt money so that we wouldn't default.
"In China, 45% of new company debt is raised to pay interest on existing debt"
"As shown below, Macquarie Research found that 23% of bonds issued were by companies that don’t generate enough operating profit to cover their interest."

"China’s total debt levels grew to about 300% of GDP last year from about 250% of GDP in 2014 and set a new record for a single month in January, growing at roughly 5% of the size of the economy. "
China’s giant bonfire of debt needs one spark to become an inferno - MarketWatch

Looks like it's time to bring back the old tradition of revolt; Amazon.com: China: A Century of Revolution (Three Disc Set): Will Lyman, Sue Williams: Movies & TV

We may get our turn too.
“Nothing can compare to what’s coming. Peter Schiff is right again.”– Ron Paul"
Wall Street Daily

[Danny B]

Hot in Saudi Arabia

Some of the guys who hijacked the holograms that hit the twin towers were from Saudi Arabia. Apparently, they don't want any further info on this to get out; Saudi Arabia Threatens To Liquidate Its Treasury Holdings If Congress Probes Its Role In Sept 11 Attacks | Zero Hedge
Saudi has already sold some? U.S. treasuries to pay their bills. The U.S. dollar is going to survive for a while longer. The U.S. treasury bond market is a dead duck. Everybody wants out.
The oil ministers are all meeting this week to discuss a freeze in production. It WON"T happen; Why Tomorrow's "Secret" Meeting Between Russian, Saudi Oil Ministers Will Not Lead To A Cut In Production | Zero Hedge
The bankers DESPERATELY need a cut in production to save their energy portfolios. Jim Willie reports that the bankers in London and New York stole all the Saudi gold that was in their custody. Jim Willie: London and U.S. bankers are stealing Saudi Gold – Secrets of the Fed

Now, the bankers need the oil producers to cut back. The oil producers have unanimously said NO, NYET, LA, N.F.W. America the Beautiful has already bombed half of the oil producers and would bomb the other half if they thought it would help. The oil producers plan to drown Pox Americana in oil; U.S. Has Too Much Oil. So Why Are Imports Rising? | Zero Hedge

The petro-dollar system can't survive cheap oil so, cheap oil is poured down the gullet of the bankers. The bankers / FED / military have screwed the world real good and the world is going to wipe out the petro dollar. The United States of Insolvency: Can America Afford Its Debt?
Saudi, Iran and Russia will pump til the cows come home. The banks are already bleeding red ink. If oil continues down, they will be screwed. maybe they should have thought of that before they stole the Saudi gold.

[aljhoa]

Some of the guys who hijacked the holograms that hit the twin towers were from Saudi Arabia. Apparently, they don't want any further info on this to get out; Saudi Arabia Threatens To Liquidate Its Treasury Holdings If Congress Probes Its Role In Sept 11 Attacks | Zero Hedge
Saudi has already sold some? U.S. treasuries to pay their bills. The U.S. dollar is going to survive for a while longer. The U.S. treasury bond market is a dead duck. Everybody wants out.
The oil ministers are all meeting this week to discuss a freeze in production. It WON"T happen; Why Tomorrow's "Secret" Meeting Between Russian, Saudi Oil Ministers Will Not Lead To A Cut In Production | Zero Hedge
The bankers DESPERATELY need a cut in production to save their energy portfolios. Jim Willie reports that the bankers in London and New York stole all the Saudi gold that was in their custody. Jim Willie: London and U.S. bankers are stealing Saudi Gold – Secrets of the Fed

Now, the bankers need the oil producers to cut back. The oil producers have unanimously said NO, NYET, LA, N.F.W. America the Beautiful has already bombed half of the oil producers and would bomb the other half if they thought it would help. The oil producers plan to drown Pox Americana in oil; U.S. Has Too Much Oil. So Why Are Imports Rising? | Zero Hedge

The petro-dollar system can't survive cheap oil so, cheap oil is poured down the gullet of the bankers. The bankers / FED / military have screwed the world real good and the world is going to wipe out the petro dollar. The United States of Insolvency: Can America Afford Its Debt?
Saudi, Iran and Russia will pump til the cows come home. The banks are already bleeding red ink. If oil continues down, they will be screwed. maybe they should have thought of that before they stole the Saudi gold.

"Father, forgive them; for they (Babylonian psychopaths) do not know what they are doing."


Al

[Danny B]

The SDR will join the Amero in the grave

OBVIOUSLY, you aren't a psychopath. They know exactly what they are doing. Look into Hillary Clinton's eyes and tell me that she doesn't know exactly what she is doing.

Earnings in the stock market are pretty much zero because consumption has crashed. No reason to risk your money in stocks if there is nothing to be gained. It's REDEMPTION time.
Hedge Funds Slammed: Tudor Hit With $1BN In Redemptions; NYC Pensions To Pull $1.5BN From Key Names | Zero Hedge

Armstrong; "I reported that Obama slipped and actually said the truth by mistake. In the case against Apple, he said if the government could not break into phones then EVERY American had the equivalent of a Swiss bank account in their phone. "
If the banks won't pay you any interest on your savings, why bother risking your money by leaving it in the bank? There is Bitcoin, paypal and various electronic wallets. Investors can leave their money in brokerage accounts.
FACTA was all about trying to "ringfence" Americans into keeping their money in American banks.
The oil industry went from $ 650 billion positive flow into banks to a negative flow of a couple 100 $billion. This reversal is snowballing and the banks are getting drained dry.

Bill Bonner; " But for the first time we can recall, not just one but three (bank) suits came to visit. Personable and intelligent, they were worried when they saw how much cash we were keeping on hand.

No kidding. They came to visit to propose ways we could “put it to use.”
Too Much Cash?

“You really should take some of that cash and invest it in municipal bonds” was the motion on the table.

“What if the municipalities can’t pay?” we asked.

“Don’t worry about that. Historically, the odds of default are extremely remote,” one of them answered.

“But what if interest rates turn up? Wouldn’t the default rate go up?”

“Well, maybe. But we keep the maturities short and invest only in the most creditworthy municipalities. The risk is very low.”

“Oh…but what if we just need some cash.”

“No problem. We’ll give you a line of credit.”

“Let me get this straight. You’re proposing to put me into debt so that I can keep my money invested in somebody else’s debt?”

“Uh…well…yes…and we’ll charge you less interest than you will earn from the municipal bonds.”

“Wait. You can earn a fee for putting my money in bonds…and earn another fee for lending me money…and I still end up ahead?”

“Yes. We just try to find ways to help clients with their financial needs.”

“Oh.”
Weekend Edition: Why Bankers HATE It When You Hold Cash | Casey Research

4/17 Iran central banker dismisses idea of output cut – CNBC Why even bother with tomorrow's meeting?
4/16 Oil deal falls apart, Saudis “selling at ever opportunity” – Zero Hedge

The CBs pushed interest rates to zero, or lower. They wanted to stimulate the economy by making it easier to borrow money. They negated hundreds of $ billions on interest income, impoverished millions and spooked the economy. Mostly because of these problems that they created, people stopped consumption and borrowing. The CBs just went too far. Credit Bubble Bulletin: Weekly Commentary: Pushing Desperate Measures Too Far

BUT, there is the long-standing claim that the system is to be crashed on purpose to usher in the one world bank and currency. Post WW II, the U.S. dollar permeated all the Western economies + Japan. This allowed the IMF to rape a lot of nations. The U.S. dollar is slowly being squeezed out by all the vast multitudes who hate the IMF. The U.S. / IMF/ SDR crowd seems to think that they can push their latest creation, the SDR down the throats of the rest of the world.
The U.S military is losing ground to Russian innovation and will NOT be able to enforce the dictates of the FED. The rest of the world is tired of getting a continual screw job. Many thousands of years of history has proved that you/we can not trust man to create a stable fiat currency. The R.O.W. will definitely fight the SDR.
A Global Central Bank, Global Currency & World Government

Even Canada is starting to rebel. A 9 year old gives them a focal point; https://www.youtube.com/watch?v=JHQOX8EVNmE
The rebellion is spreading, 4/17 Hungary issues yuan bonds; another nail in dollar’s reserve currency status – Mish

[Danny B]

J.P.M. melting fast

The FED is quite worried about J.P. Morgan. Something to do with taking down the entire financial system from systemic risk; The Fed Sends A Frightening Letter To JPMorgan, Corporate Media Yawns | Zero Hedge
https://lh5.googleusercontent.com/-R...a+E+Newman.jpg

China seems to be betting on gold; China Embraces Gold In Advance Of Post-Dollar Era | Zero Hedge
4/17 OPEC meeting ends without agreement, oil price tumbles – CNBC Well, at least they went through the motions.
Citigroup Quarterly Profits Plunge 27%
• Greece’s Creditors Weigh Extra Austerity Measures to Break Deadlock (WSJ) That should starve out a few hundred thousand people.

[Danny B]

Unwind of the 40 year credit boom

Stockman;
"In 1960, at the peak of what I call the golden era — the twilight of fiscal and financial discipline — we had $30 billion on the balance sheet of the Fed. It had taken 45 years to build that up. Then, as they began to rapidly expand the balance sheet of the Fed during the inflation of the ’70s and the ’80s, even then it took us until September 2008 — the Lehman collapse — to get to $900 billion. Had the balance sheet only grown at 3%, which is what the capacity of the economy to grow, I think, really is, it would have been $300 billion, so they were overshooting.

David: Where we should have been by the Lehman crisis event. In the next seven weeks, this crazy lunatic who’s running the Fed increased the balance sheet of the Fed by $900 billion, in seven weeks. In other words, they expanded the balance sheet of the Fed as rapidly in seven weeks as it had occurred during the first 93 years of its existence. And that’s not all, as they say on late night TV: in the next six weeks they added another $900 billion. So in thirteen weeks they tripled the balance sheet of the Fed."

"As I was saying when the great margin call comes and they start selling the Treasury bond, they’ll take everything else with it. Real estate is priced off Treasuries. Mortgaged-backed securities are priced off Treasuries. Corporates are priced off Treasuries. Junk bonds are priced off Treasuries. Everything. The stock market will go into a panic. We don’t know when the timing will come — we’ve never been in a world where there is $15 trillion worth of central-bank balance sheets, like we have today."
the great margin call in the sky comes down.
So, were are overdosed with monetary Viagra while kicking the can down the road and engaged in cannibalism while waiting for the great margin call from the sky.
"David: Well, the dollar, in theory, people would think is going to crash. I don’t think it is because all the rest of the currencies in the world are worse."
"So my point is that we’ve gone through a thirty-year expansion of the balance sheet" We'll unwind 30 years worth in a few months.
The Disastrous 40-Year Debt Supercycle | David Stockman's Contra Corner