Economic pressures

[Danny B]

"In short, central banks in the advanced economies have begun ‘exporting their economic stagnation’ to emerging market economies. Can emerging markets repay the interest on their US$40 trillion increase in corporate debt since 2010? Probably not. It is therefore looking increasingly likely the next global financial crisis will originate in emerging markets with more corporate and sovereign debt defaults. It’s just a matter of time, and which comes first"

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Stockman writes about the great unwind; Now Comes The Great Unwind—-How Evaporating Commodity Wealth Will Slam The Casino | David Stockman's Contra Corner

Armstrong calls for the stock market to go to nose-bleed heights. I hate to disagree with him and Socrates but, maybe he missed something.
He says that the stock market will go WAY up because "money has to go somewhere". I'm not so sure. A LOT of money has just evaporated because it wasn't real wealth,,, only a hologram.
Veterans Today has their own take on the situation; Has the Globalist NWO Plan become a Titanic headed for an Iceberg? | Veterans Today
Brazil is up at bat pretty soon; The Inescapable Trap of the ‘Dollar Short’——– Brazil Edition | David Stockman's Contra Corner
As you can see, 2016 isn't going to be boring.

[Danny B]

Socialism crashing,,, consumerism crashing

We don't have to worry about WW III. Gerald Celente; "A global recession and the “Last World War” could be on the horizon, according to renowned trends forecaster Gerald Celente." Scary Trends for 2016 | Inweekly

US stocks close out the worst year for the market since 2008 We can look forward to 2016 being worse.
David Einhorn is a very competent investor; "Einhorn's Greenlight Fund Ends Second-Worst Year Down 20%"
Forbes, "In Europe, 2016 Will Be The Year Of Lawsuits"
Armstrong has lots to say about 2016 AND 2017. He has written that investment will flow out of public debt and into private debt. I can't see that. 50% of U.S. corporate bonds are junk rated. There are about 4,000 publicly traded companies in the U.S. Only three possess the top-most credit rating, which, in the judgement of the three big ratings agencies, means that these businesses will likely meet its obligations under most situations.
Consumption is crashing. Why should anyone buy stock in a company that has few customers?
Armstrong; "What does the BIG SHIFT mean? It means that as we face a meltdown in Socialism which has taken hold of Western Governments destroying our underlying democratic foundations"
"Europe is operating under a dictatorship,,,, The people of European nations have absolutely no means to reclaim their sovereignty by any method other than force. And to prevent that, the EU Commission wants to create its own army."
2016 – the BIG SHIFT | Armstrong Economics

The sum of all our worst fears is coming. You will know it by its number – 2017.
2017 the Year from Political Hell | Armstrong Economics
1/01 Battered, bruised, jumpy the whole world is on edge – Bloomberg Yeah,,, the edge of what?
1/01 China December factory activity shrinks, more stimulus needed in 2016 – Reuters China wants to switch over to a domestic consumer economy but, they don't want wages to rise or they will be less competitive on the world market. Where are these legions of consumers going to get money to buy stuff?
1/01 Expect a huge jump in layoffs in 2015 – Mish
1/01 Half a million bank jobs have vanished since 2008 crisis – Bloomberg
The whole world has a basic-necessity economy. A small part of the world has a consumer economy. As we slide towards a global-mean wage, large chunks of the consumer economy crash because of our lack of discretionary income. GOV / banks try to resuscitate the consumer economy by pumping debt money into the financial sector. This was no help to the consumer economy because it was already debt-saturated.
Nobody is trying to rescue the discretionary spending of the consumer.

[Danny B]

Hormegeddon

When we use credit, we are using tomorrow's earnings to party today. We are moving consumption forward. This works for a while but, eventually catches up to us. Today is the tomorrow that we didn't worry about yesterday.
Carmen Reinhart and Kenneth Rogoff wrote about the effects of debt saturation episodes that occurred during the last 8 centuries. They tell us that the stock market won't have any earnings for the next 12 years.
THIS TIME ISN?T DIFFERENT « The Burning Platform
Yanis Varoufakis said that 1/3 of consumption was done by people who rent out their money and don't produce anything of value. If 1/3 of well-heeled lose their income from the markets, they are going to cut out a lot of consumption.
Brazil went way up in the boom and it is going way down in the bust; Brazil Heads for Worst Recession Since 1901, Economists Forecast - Bloomberg Business
Headlines;
• China Halts Stock Trading After 7% Rout Triggers Circuit Breaker (BBG)
• As Hedge Funds Go, So Goes The World (John Rubino)
• UK Set For Worst Wage Growth Since 1920s, 3rd Worst Since 1860s (Guardian)
1/04 Global stocks tumble following Shanghai's 7% crash – Bloomberg
1/04 Biggest economies face $7 trillion debt refinancing tab in 2016 – Bloomberg
1/04 "This is the worst global dollar GDP recession in 50 years" – Zero Hedge
1/04 The global health crisis will crush the global economy – Of Two Minds

Income in the lower loop of the economy went way down because of low-wage competitors. The upper loop refused to shrink accordingly. GOV pumped $ trillions into the markets. This raised valuations for a while. It did not raise consumption or earnings. The lack of earnings is finally catching up to the stock market, regardless of valuations.
The central bank can print money but, it can't control where the money goes. ZIRP forced people into mal-investment just to get some kind of return. The stock market ended up the year with no returns. But, do not worry, Wall Street "earned" record fees and bonuses.

When people have lots of money, they spend lots of money and the economy does well. It is always a temptation to add a bit more money to make things a bit better. GOV being a parasite is ALWAYS in need of more money. It takes a lot of cash and promises to buy votes. GOV always carries the printing too far. It never understands that there is a limit to how much of a good thing you can add to an economy.
Bill Bonner has written about "hormegeddon".
The Daily Bell - Bill Bonner: His New Book, 'Hormegeddon' and Other Insights
Here is a slide show on the same subject; Hormegeddon: How Too Much Of A Good Thing Leads To Disaster
Edit;
1/05 Atlanta Fed slashed Q4 GDP forecast to 0.7%, down 1.2% in 10 days – Zero Hedge
1/05 European stocks suffer worst start to year ever – Talk Markets
1/05 US economic collapse: Marc Faber has a dire warning for Americans – Profit Confidential

[Danny B]

China collapseing and OPEC beheaded

50% of Chinese companies can not afford the interest on their debt. Bank of America said that there is a 100% chance of China collapsing. "It's Coming To A Head In 2016" - Why Bank of America Thinks The Probability Of A Chinese Crisis Is 100% | Zero Hedge
There is something like $ 40 trillion in emerging market debt. There are $ multiples of that amount in derivatives. Armstrong says that these derivatives won't be honored.
China says that they only grew at the rate of 6.9% in 2015. There is some doubt about that, • China Rail Freight Down 10.5% In 2015, Biggest Ever Annual Fall (Reuters)
The FED is paying off the failing energy derivatives from the reverse-repo window at the rate of about $ 1 trillion a month. The crash of China would / will be more than it can handle.
Surprisingly, American companies are failing faster than emerging market companies.
Bloomberg reports that a whopping 60% of this year’s global defaulters have been U.S. companies, with the second biggest defaulters being the emerging markets at only 23% (Source: “U.S. Companies Led the World in 2015 Debt Defaults, S&P Says,” Bloomberg, December 28, 2015.) U.S. Economic Collapse: Marc Faber Has a Dire Warning for Americans

Then, there is OPEC OPEC Beheaded! - The Daily Reckoning
I wasn't aware that Canadian tar sands oil is going for $ 20 a bbl. They frack the tar and use the resulting oil to heat the tar to transport it. They are using at least 1 bbl of oil-energy to deliver 1 bbl of oil.
Revolution is in the air. It will start with famine. All the oil producers are spending down their reserves of cash. Food imports will be C.O.D.

Edit; I keep leaving out one piece of the puzzle. "China’s lack of external debt, and accumulation of upwards of 30 thousand tons of Gold over the last decade, puts them in a unique position of power. “Foreigners have no way of extracting their money,” Willie said, and made it clear that the real news was their “gradual move toward a Shanghai gold fix,” where the Chinese literally take control of the Gold price."
Read more at https://www.trunews.com/jim-willie-p...HWpgpyqQlFU.99
America has $ 18 trillion in external GOV debt and China has none.

[Danny B]

Saudi Arabia sliding away

As everybody knows, the stock market is pretty bumpy. The Chinese stock market is more than just bumpy. it keeps crashing by about 7% per episode. Not a big surprise when you consider that it doesn't have any earnings.
Spot The Most Manipulated Market In The World | Zero Hedge

The Sauds were just one tribe in the area when the Anglo-American oil interests picked them to be oil barons. The other tribes were left out. There is another division in the area that is becoming increasingly important.
"The map shows that "due to a peculiar correlation of religious history and anaerobic decomposition of plankton, almost all the Persian Gulf's fossil fuels are located underneath Shiites," Schwarz noted."

Read more: Riyadh's Nightmare: Saudi Shiites Could 'Secede' and Take All Oil to Iran
The Saudis need higher oil prices and they are trying to destabilize their competitors. The destabilization is working but, not in the way that they planned.
Saudi Kingdom Now More Likely To Default Than Portugal
Iran Rev Guard Warns Of Complete Saudi Collapse
The Sauds have pissed off the sunnis and there is great danger that the sunnis may break away and cut off the oil.
""If this section of eastern Saudi Arabia were to break away, the Saudi royals would just be some broke 80-year-olds with nothing left but a lot of beard dye and Viagra prescriptions," Schwarz observed."
The Sauds are running out of money but, they have started an expensive war with Yemen. They are not winning.
Also, they are pumping in seawater into their wells to extract more oil. Some wells put out 98% water.

[Danny B]

Deflation,,,, B.I.S. says that the FED are idiots

Headlines;
• Massive US Tax Grab Coming in 2016 at All Levels of Government (FRA)
• Shanghai Fund Manager Dumps All Holdings in ‘Insane’ Market (BBG)
• It’s All Bad News for Markets Buckling Under China, Fed, Economy (BBG)
• George Soros Sees Crisis in Global Markets That Echoes 2008 (BBG)
• China Stock Markets Shuttered -Again- After Falling 7% (FT)

"$2.5 trillion was lost in global equities in three days this year even before the Thursday China trading stop and ongoing oil price decline"
"What we are looking at is debt deflation, in which virtual ‘wealth’ is being wiped out at a fast pace, and it’s taken some real wealth with it for good measure. "
"The PBoC can’t really do QE after the $25 trillion post-2008 credit pump, and the yuan devaluation today achieved the opposite of what it was intended for.
Ultimately, if China is a Ponzi (and $25 trillion in credit spent on overcapacity strongly suggests so), then the entire world economy is one. I would very much argue so, and have for years. And we all know what inevitably happens with Ponzi’s. "
"Do prepare for rising taxes and services cuts: governments suffer along with everyone, and because they’re slow and lagging, probably even more so. And governments think they deserve to have their hands in your pockets. Prepare for mass lay-offs too. The consumption model is being broken and dismantled as we speak."
China, Oil and Markets: It’s All One Story - The Automatic Earth

So, how did we get to where we are?
"The Bank for International Settlements (BIS) - the temple of monetary orthodoxy in Switzerland - has been waiting for this moment, combing through the archives of economic history to mount an unanswerable assault.
The BIS believes it has found the smoking gun in a study of recessions in 22 rich countries dating back to the late 1960s. The evidence suggests that the long malaise of the post-Lehman era - and the strange episode that preceded it - can be explained almost entirely by the destructive effects of boom and bust on productivity growth."
"The BIS has come out and said that the Central bakers are complete idiots. "It has implicitly indicted the US Federal Reserve and fellow central banks for perverting the machinery of interest policy to conjure demand"
Is the whole theory of secular stagnation a hoax? - Telegraph
The B.I.S should have checked in with Reinhart and Roghoff,,, or maybe Armstrong.

[Danny B]

Saudi slipping fast

"US diplomat convinced by Saudi expert that reserves of world's biggest oil exporter have been overstated by nearly 40% "
The shocker; now that Saudi has been pumped dry, they want to sell their oil company; Saudi Arabia considers IPO for national oil group, Aramco | Business | The Guardian
They are pumping water; http://static2.businessinsider.com/i...0000/chart.jpg
Here is a drawing of the depletion on their main field; http://static2.businessinsider.com/i...0000/chart.jpg
Their currency is falling. Their GOV is corrupt and coming apart. They dare not take on Iran which has lots of oil. Here's Why You Don't Need Wikileaks To Know That Saudi Oil Reserves Are Overstated - Business Insider
They also started a war with Yemen that is very costly and will go on for a long time. They claim that they can hang in there for a few years with oil at $ 40. Canadian crude oil is under $ 20.

[Danny B]

China,,, burning through $ 1/2 trillion in cash

Headlines; • Slowing Productivity Fast Becoming A Global Problem (Lebowitz) They have to blame it on productivity. They never mention consumption or wages.
• Dow, S&P Off To Worst Four-Day Jan Start Ever As China Fears Grow (Reuters)
• China Has Not One Insolvable Problem, But Many Of Them (Mish)
• Capital Flight Pushes China To The Brink Of Devaluation (AEP)
Dow In Historic 1,079 Polnt Loss This Week
Globals Stocks In Worst Ever Year Opening
China burned through $ 512 billion in reserves last year,,,, $ 108 billion just in December. " In China, in dollar terms their banking system is almost $35 trillion against a GDP of $10 and their banking system has grown 400% in 8 years with non-performing loans being nonexistent. So what we are going to see next is a credit cycle, and in a credit cycle you see some losses, but if China's banking system loses 10%, you are going to see them lose $3.5 trillion. " This Is The $3.5 Trillion "Neutron Bomb" That Keeps Kyle Bass Up At Night | Zero Hedge
$ 108 billion in one month is a LOT of bucks. They are trying to get rid of dollars.
"China Buys Another 14 Tons Of Gold In October "
When 3 Trillion Just Isn't Enough: Analysts Fret Over "Worrying" China Reserves
When China goes splat, it is going to be bigger than Krakatoa.

The bankers in India are still hard at work trying to steal all the gold; https://www.sprottmoney.com/blog/the...on.html?acc=17
Even the e-trade baby is going broke; https://www.youtube.com/watch?v=AYrpROr9Gmk

[Danny B]

Reality at the FED

Greenspan; " I never said that the FED was independent."
Ben Shalom Bernanke" Yes, the FED caused The Great Depression (one) but we won't let it happen again."
Yesterday, former Dallas Fed President Richard Fisher was on CNBC. “The Fed is a giant weapon that has no ammunition left.”!!! "
"Mr. Fisher in one 7:00 interview wrapped up and confirmed everything us “nutjobs” have been saying all along!

He did stop one step short of the reality we nutjobs see mathematically coming. He got close when using the term “unwind” but stopped short and did not go all the way. This “unwind” is going to end in the closure of markets all around the globe.
Forget about circuit breakers, the only way to stop the selling once it gets out of control …will be to take control by pulling the plug out of the wall! "
Former Fed President: Fed Has No Ammunition Left! | SilverDoctors.com
Vid; https://www.youtube.com/watch?v=7nuzT3rchPU

"If there is anybody due for an early holiday, it’s David Cui and his analysts at Bank of America. They predicted the Shanghai Composite to drop 27 percent over the year—it’s already halfway there in just the first week of January." Meet the Market: China Suffers Triple Blow
It is also B of A that said there is a 100% chance of China crashing.

UBS doesn't have anything good to say; A Disturbing Warning From UBS: "Buy Gold" Because A 30% Bear Market Is Coming | Zero Hedge
Charles Huge smith; "The essence of neoliberal high finance is the vast majority of gamers in the casino lose security and wealth, while the House (the state and the banks) skim the resulting profits."
oftwominds-Charles Hugh Smith: 2016 Theme #5: The Systemic Failure of High Finance
"As this Secret Reset is rolled out the first thing we are likely to see is imported goods rising significantly the first month (maybe even 20%) and another 20% soon after. The sky could be the limit. The standard of living in America (unless free energy is rolled out) is likely to drop to the level of Mexico over a year or two, maybe faster."
http://www.veteranstoday.com/2016/01...set-agreement/

1/08 Data suggest manufacturing recession spreading to entire economy – Zero Hedge Well, shoot,,, when you lose your main value-added sector, you can expect the rest of the economy to be affected.

So, somebody is going to pull the plug out of the wall.
Jim Willie said that we will go to gold-settlement with our trading partners. No more credit or vendor financing. Free energy isn't going to save anything. It can't be implemented fast enough.
Y'all better learn to be breatharians; http://www.breatharian.com/wileybrooks.html

[Danny B]

Bogus job report

JOBS
Kurzweit hits the nail on the head, "1/06 How the world is getting faster, faster – Kurzweil" As the speed and volume of communication goes up and up, delays get shorter and shorter.
Phony BS doesn't "stick" for very long at all.
The MSM reports that unemployment is 5%. Investors actually believe this BS because they are too lazy to check shadowstats.
US Employers Hire at Robust Pace, Defying Global Trends ABC News - 2 days ago
US created 292,000 jobs in Dec vs 200,000 est; unemployment rate at 5.0% CNBC - 2 days ago
The reality;
• Multiple Jobholders Responsible For 64% Of Net US Job Gains (ECRI)
Stockman: Only 11,000 Jobs Last Month, Not 292,000
Read more: Stockman Exposes Jobs Report Lie: Only 11,000 Created
Important: Can you afford to Retire?
1/08 Where the December jobs were: minimum wage deluge – Zero Hedge

Middle -East
I wrote that Saudi plans to sell the state oil company; 1/10 Shock, laughter greet plan for Saudi Arabia's record oil IPO – Bloomberg
1/10 Mid-East massacre: equity markets plunge from Bahrain to Kuwait – Zero Hedge
1/09 If you are an oil bull, don't look at these 2 charts – Zero Hedge

China;
1/10 46 months of accelerating deflation mean Beijing is now trapped – Zero Hedge
1/10 FXCM doubles yuan margins, warns of market "disruption," "illiquid conditions" – Zero Hedge
12/29 China's unprecedented real estate bubble is a ticking time bomb – Economy And Markets
Commodities;
• Mining’s $1.4 Trillion Plunge Like Losing Apple, Google, Exxon Combined (BBG)
Armstrong claims that 2017 is the beginning of the end; The Euro & 2017 – The Beginning of the End | Armstrong Economics
The end is already here for the people who have no job prospects. Many millions of people world wide think that they are rich. When the holographic money fades out, they will stop spending.

Edit; Hugo Salinas Price warned about a complete breakdown of international trade.
"Commerce between Europe and North America has literally come to a halt. For the first time in known history, not one cargo ship is in-transit in the North Atlantic between Europe and North America. All of them (hundreds) are either anchored offshore or in-port. NOTHING is moving.

This has never happened before. It is a horrific economic sign; proof that commerce is literally stopped."
https://www.superstation95.com/index.php/world/750
I find this pretty hard to believe.

[Danny B]

the longest depression

1/11 China's Premier Le: We'll let market forces fix overcapacity – CNBC
1/11 Chinese stocks tumble again as Beijing sits on sidelines – MarketWatch
70% of activity in China is "overcapacity.

The following experts have – at some point during the last 2 years – said that the economic crisis could be worse than the Great Depression:
Fed Chairman Ben Bernanke
Former Fed Chairman Alan Greenspan (and see this and this)
Former Fed Chairman Paul Volcker
Economics scholar and former Federal Reserve Governor Frederic Mishkin
The head of the Bank of England Mervyn King
Nobel prize winning economist Joseph Stiglitz Nobel prize winning economist Paul KrugmFormer Goldman Sachs chairman John Whitehead
Economics professors Barry Eichengreen and and Kevin H. O’Rourke (updated here)
Investment advisor, risk expert and “Black Swan” author Nassim Nicholas Taleb
Well-known PhD economist Marc Faber Morgan Stanley’s UK equity strategist Graham Secker Former chief credit officer at Fannie Mae Edward J. Pinto
Billionaire investor George Soros
Senior British minister Ed Balls
?Future Economic Historians? Will Probably Call the Period That Began In 2007 ?the L-O-N-G-E-S-T DEPRESSION? | Zero Hedge

B of A is a lot more worried than they were a month ago;
Page Not Found | Zero Hedge
16-01-11/panic-building-bofa-admits-asks-how-bad-could-get
When wage growth crashed in about 1970, the FED blew sequential bubbles to keep things going. Each bubble in turn, crashed. This will be the last bubble; http://www.24hgold.com/english/news-...hoenix+Capital
The depression is expected to last between 20 and 26 years.

[Danny B]

comment on money

Here is a comment on money that I find very interesting;

EUbrainwashing MMXVI • a day ago

Money is not the root of all evil, though the love of money is clearly at the root of all kinds evil. Money is also at the root of much good too, indeed it is very hard to imagine a functional world where a store of value that can also be used as a means of exchange does not exist.

Money represents human effort - the more human effort that is required the more money must be exchanged to compensate for it. Gold is worth more than iron not because gold is more rare than iron but because it takes exactly the difference in the value of gold over iron to produce gold over iron.

If money was simply allowed to be produced by the free-market, in whatever form market-demand demanded, a stable mechanism would rapidly derive. But this does not happen because the production of money is monopolised by 'the state' and in turn the most coercive actors work to hijack that power for their own gain.

This will always be. Whilst 'the state' holds to itself the imagined 'right' to use violent force and coerce with violent force, to enforce its edict, it will use that force to monopolise the production of money. And whilst 'the state' uses force to monopolise the production of money, or more correctly 'fiat-currency', there will always be the money/power oligarchy who usurp that power to their own ends.

No form of binding legislation will ever keep this from being the outcome from the existence of 'the state'. The money/power elites need to retain the state. This is because whilst they usurp and control the production of money, 'the state' continues to fain that this system is under state control and so cause human society to be bound to the system, indemnifying/underwriting the system's losses and by suffering the manufactured inflation.

[Danny B]

The China Syndrome

It's important to understand that demand drives profits on the margins: of ten sales, the first nine sales just cover production and overhead costs; only the last sale generates substantial profits.
Now that China's demand is faltering, global demand is weakening and profits are collapsing because China provided the critical marginal demand that fuelled immense profits.
The China Syndrome: The Coming Global Financial Meltdown | Zero Hedge
The old saying goes, "money makes the world go round". Obviously, this isn't true. PROFIT makes the world go round.
I post headlines to save everybody the time of reading long articles when they only need to know the kernel at the focus.

RBS cries 'sell everything' as deflationary crisis nears – Telegraph
Complex systems, feedback loops, and the bubble-crash cycle – Hussman Funds ah yes, beware those feedback loops.
The 'crisis of trust' signals a 'failure of leadership' – Financial Repression Authority Who could he possibly talking about?
1/12 Rail traffic is saying something worrying about the US economy – Bloomberg Well, if the ships stop, we don't need the trains.
1/12 'Extremely normal and realistic’ 26% drop on S&P 500 taking shape – MarketWatch
1/12 Stock market committed to 2008 scenario – 321Gold Not be choice.
1/11 No trade = no commerce = no economy – Gerold's Blog No money, honey.

[Danny B]

ESF, PPT and Jim Willie

After the 1987 crash of markets, the Pres created the plunge protection team..The Exchange Stabilization Fund was created in 1934, "The fund began operations in April 1934, financed by $2 billion of the $2.8 billion paper profit the government realized from raising the price of gold to $35 an ounce from $20.67"
So, we have the FED, Treasury, PPT and ESF all working to control markets and currencies. The ESF works on the currency and the PPT works on markets.

"These sociopathic heathens are and have been conducting stealth QE with direct cash injections from the Treasury’s ESF. The ESF has the resources, all kept off book. No one in the banking system will dare talk about it, because anything connected to the ESF is a matter of National Security."
" The USFed takes in cash and puts out USTreasurys. Consider the perspective of the bank cabal, then the USDept Treasury Exchange Stabilization Fund. The big banks cannot leverage cash but they can leverage USTBonds several times over. The Fed feeds the banker cabal/ESF with collateral (USTBonds) which are leveraged multiple times in order to support risk assets. This in effect is a gigantic pseudo-QE. When one factors in that $200bn (for example) in collateral can be safely leveraged 3x to 10x, the Fed via the cabal/ESF has created liquidity of $600bn to $2 trillion in a blink of an eye."

" A sub-$30 oil price will lead the banks generally to quit with the energy sector. They will throw in the towel and end their support. They will cease with all debt service patches, those additional bridge loans which enable the firms to continue making debt service payments on their massive loans. Big covenant violations are in progress"
Double Barreled Hidden Q.E. to Infinity

So, $30 oil is the trigger for the banks to pull support for the oil industry????????????
• Oil Down 20% Since Start Of Year, $10 Target Looms (Reuters)
• Plunging Prices Could Force A Third Of US Oil Firms Into Bankruptcy (WSJ)

More from Jim Willie; "After 1971, the USDollar was no longer backed by Gold. Quickly the USDollar benefited from the defacto Petro-Dollar Standard in 1973, hastily arranged. No evidence is more clear of a dying USDollar than the collapse of the oil price, practical foundation of the global reserve currency. "
"In time, expect an eventual refusal by Eastern manufacturing nations to accept USTreasury Bills in payment" Wait a minute, they will be supplying us with oil when our oil industry us bankrupt.
"The USMilitary and Langley threats will not work much longer, as they are in retreat. The US must accommodate with the New Scheiss Dollar in order to assure import supply, and to alleviate the many stalemates to come. The United States finds itself on the slippery slope that leads to the Third World, a Jackass forecast that has been presented since Lehman fell "
The latest hardware developments from Russia sealed our fate because we can no longer go around the world blowing up everybody who does not let us rip them off.

[Danny B]

Capital flight

1/11 Europe fears bail-ins: Capital flight intensifies in Italy, France, Spain – Mish
Capital flight in China is causing huge problems. Same for Brazil and Venezuela.
America tried to stop capital flight with FACTA. This essentially keeps American capital from resting for very long in foreign banks. BUT, without American capital, the rest of the world is coming up short.
"FATCA, for example, is directly reversing the global economic expansion by forcing Americans back into a domestic economic environment that is worsening the deflation external to the USA as the dollar is forced higher. The outflow of capital from the USA reconstructed the world economy, whereas now that single tax-hungry law set in motion the reverse consequence of destroying the world economy."
The Coming European Revoluition | Armstrong Economics

Mexico is selling oil at a loss AND oil sales support their entire social net. Mexico Oil Price Drops Below Production Cost
China seems to have a problem with prominent people going missing. Amid Stock Market Panic, Dozens of Chinese Billionaires Are Mysteriously Disappearing
• Chinese Official: Bets Against Yuan Are ‘Ridiculous and Impossible’ (WSJ) Once it has been officially denied, you know that it is the truth.
• China Rout Threatens to Spawn India Crisis (BBG)