Economic pressures

[Danny B]

In spite of TINA, confidence is slipping

Ludwig von Mises said that all credit bubble eventually collapse. FED GOV has produced enormous bubbles ever since it escaped the restriction of gold. GOV must pay for all it's toadies, it's 22 million employees,,, it's wars and, it's welfare dependents. The Japanese model seems to indicate that it can just print new money to pay for everything.
At $21 Trillion, The National Debt Is Growing 36% Faster Than The US Economy. March, 2018
Since Pox Americana has no intention of ever repaying this debt, the debt-service cost is what matters. The original idea was; since the CBs passed out all the free money, money renters only worried about interest income and NOT, repayment. This free money meant that banks no longer had to pay interest on deposits nor attract capital. Free money to them and, 22% credit card interest to you.
Just how long could this arrangement be maintained?

Negative interest on bonds ($13 trillion worth) should be good for stocks. here is a good article showing that this just hasn't happened.
https://www.zerohedge.com/news/2019-...ime-zero-rates
Stocks are pumped up by the CBs and, nobody is attracted to them.
Banks, transports and small caps are below their 200 day moving average.
https://northmantrader.com/2019/06/25/the-4-horsemen-2/
While everybody is pushed to keep their money in the markets, NIRP and falling dividends is a big negative. The CBs are counting on TINA, there is no alternative.

Armstrong, "ANSWER: Nothing. What is happening is that we are running into reality. The entire Quantitative Easing has completely failed. The focus on interest rates has been lost insofar as we are dealing with a major question of a structural crisis."
So, just how bad will the collision with reality be?

More reality;
US shale an 'unmitigated disaster' with industry hundreds of billions in debt - shale pioneer
https://www.rt.com/business/462622-s...king-disaster/

$9 trillion corporate debt bomb is 'bubbling' in the US economy Nov, 2018
Gundlach: Corporate Bonds Could Be a Repeat of the Sub-Prime Crisis It is expected that corporate debt will blow this time around.
Keep in mind that most of the recent rally has been in JUNK corporate debt.
6/26 Trouble at the Bakken: oil production finally peaking? – SRSrocco Report
Profits peaked about 8 years ago.
/26 It’s 2007 all over again: JPM is pushing synthetic CDOs to the masses – ZH
Those aren't masses, they're muppets.
6/26 Trickle down theory: Powell chastises Trump, praises himself – Mish
It's price inflation that is trickling down, NOT wage inflation.

6/25 “We’re nearing the moment when everyone tries to exit the bond market” – ZH
To WHERE? stocks are more than 2 times overbought.
6/25 Leonid Bershidsky: Putin’s big bet on gold is paying off – GATA

The price of gold does go up an down a bit. Most of the change in price is just a change in the value of the currency that is used to buy the gold. Gold doesn't go up. It's just the currency going down.
6/26 Big tech, big banks push for “cashless society” – FX Street
6/26 MSM silent after Google election meddling bombshell – ZH
That will definitely bite them in the A$$.

God messed up and, failed to make all people equal. The libtards are trying to correct this oversight.
https://www.zerohedge.com/news/2019-...be-merit-alone
https://www.theguardian.com/environm...survive-crisis

MSM has far too much power over the public. It is going to get even more ,concentrated.
https://www.youtube.com/watch?v=Tv2fOXDUt2c&t=426s

[Danny B]

Create more debt because, nobody has a better plan

Where to start? There is a lot of news that affects the economy.
The CBs have created megatons of "money' but, still expect this "money" to retain it's previous value.
The vast majority of this "Money" is denominated as DEBT.
How much debt? $184 trillion. Your share is $86,000 Even if you live on an aborigine reserve south of Darwin, you still owe $86k
https://www.rt.com/business/446526-g...t-hits-record/
Interest rates reflect the value / demand for money. Supply is gargantuan and, interest rates are falling.
"Citing a report from the Bank for International Settlements, which found that 12% of publicly listed companies around the world can be described as zombie firms (meaning they don’t earn sufficient profits with which to cover their interest payments), Sharma concluded that simple policy miscalculations are on display:"
These are not policy miscalculations. This is a calculated attempt to maintain employment.
https://www.zerohedge.com/news/2019-...ce-living-dead
Along with employment, we have energy problems. Fracking has lost $208 billion. The FED is pumping it up by proxy.

QE is an attempt to float businesses that employ people. It is soon to be institutionalized as MMT and UBI.
Janet Yellen has now warned about excess debt.
https://www.rt.com/business/446355-u...ancial-crisis/
Saudi Arabia's business model may guide the future bankers.
https://www.rt.com/business/449687-s...urge-creative/
Everybody knows that Germany is the powerhouse pulling along the Eurozone. No more.
https://www.rt.com/business/456903-g...-worst-growth/
Everybody knows that gold is just a pet rock. Italy plans to pay off debts with mini-bots. The ECB plans to take Italy's gold.
https://www.zerohedge.com/news/2019-...-gold-ours-now

The Chinese are manufacturing millions of Carats of gem quality diamonds.
https://www.rt.com/business/450869-c...global-market/
The gold ETFs trade 50% of world supply every day. They claim that physical gold is an old anachronism.
https://www.rt.com/business/442007-d...e-marketplace/
Paul Craig Roberts shows exactly where we are economically.
https://www.zerohedge.com/news/2019-...erican-economy

6/27 Something’s wrong with this rally in the stock market, JP Morgan says – CNBC
6/27 UBS: world economy ‘one step away from global recession’ – Yahoo!
6/27 A leveraged-lending bust could hit economy quicker than subprime blowup – MW
6/26 Apple doubles down on buybacks, spending a record $23.8 billion in Q1 – Axios
6/26 A group of five stocks are so big they’re essentially the stock market – CNBC
There is good reason to believe that the unwinding will hit VERY fast.
6/26 Time for an international gold reset – Deviant Investor
The State and the bankers want unlimited power to do unlimited money / debt expansion. They don't nee no stinkin gold reset.

6/26 Trump says Twitter, other tech giants are ‘all Democrats’ and censor him – CNBC
6/26 Special Counsel Mueller to testify before House on Trump Russia probe – CNBC
6/26 MSM silent after Google election meddling bombshell – Zero Hedge
6/26 More than 500 arrested after protests as India water crisis worsens – CNN
Water is going to be big news for many decades to come.

Video: 200 Israeli Nuclear Weapons Targeted against Iran - Global ...
https://www.globalresearch.ca/video-......iran/564103...
Jun 19, 2019 - Video: 200 Israeli Nuclear Weapons Targeted against Iran ..


https://www.rt.com/news/462743-israe...es-losing-gps/
President Donald Trump on Tuesday suggested that the US is "not going to need an exit strategy" if war broke out with Iran.
That is very true. All the oil shipping points would be closed. Much of Iran and Saudi would be in flames. Insurance companies would refuse to insure cargoes. Hezbollah and the IRGC would overrun israel. Nuclear winter would add to the already present global cooling.

[Danny B]

Web 3.0,,, emerging cryptos,,, CB control of cryptos

As more and more payment is made electronically, we slide ever-closer to a cashless society. The banks want a cashless society so that ALL wealth is stored with them. The State wants a cashless society so that all transactions can be audited by them.
Armstrong has a report sector just on the State's hunt for taxes.
https://www.armstrongeconomics.com/tag/hunt-for-taxes/
This cashless society would / will need some kind of baseline token of exchange value. The bankers and the State are fighting any connection with gold. They want some sort of crypto. The banks originate most of the debt-denominated "wealth" and, they want to keep it that way. ALL new money is first run through their greedy fingers.

https://antoniusaquinas.com/2019/06/...tcoin-demonic/
The emerging crypto systems are created to maintain private / sovereign bank control of wealth exchange with the bankers still taking a big cut.
Here is a must-read article from Ellen Brown where she clearly explains how the banks plan to maintain their parasitism on all transactions. She also explains how payment systems in China do NOT involve this parasitism.
https://www.truthdig.com/articles/fa...n-wall-street/

"According to Ivanov, who has been labeled by some as a Russian ‘cryptobillionaire,’ we are currently at the stage of developing a new generation of internet.

“We are already engaged in Web 3.0 technologies. They combine different blockchain-based technologies. This revolution is taking place rather slowly, but it is already beginning, and we want to stake this niche in Russia,” he said."
https://www.rt.com/business/449613-b...encies-russia/

Milton Friedman talks about how the world economy works without government.
https://www.armstrongeconomics.com/a...ut-government/

6/27 Bitcoin has quadrupled in value in six months – Mashable
BTC is good for speculation for some people but, it just lacks stability.
Charles Hugh Smith writes Local Government Is an Engine of Inflation
The blob State generally expands without limit. It taxes and taxes.
"Since personnel costs are 70+% of city and county budgets, those ever-increasing payroll, pension and benefits costs are the key driver of budgets expanding."
http://charleshughsmith.blogspot.com...inflation.html
While Smith looks at government as an engine of inflation, this is the wrong way to look at things. The more money that the blob state sucks out of the producing economy, the more that it causes deflation of the rest of the economy. California is now owed more than $10 billion in unpaid fines. People just don't have the money to satisfy the demands of the blob State.
6/27 As Democrats push a “wealth tax,” here’s why other countries got rid of it – Mises
6/27 New software glitch found on 737 Max that results in “uncontrollable nosedives” – ZH
That's what happens when you cut corners. I have a friend who was head of R&D at Rockwell. Rockwell clearly told NASA NOT to launch if it was too cold. On launch day, it was too cold. The NASA people said "we need to take off our engineering hats and, put on our public relations hats". So, the shuttle blew up.
6/27 Colorado’s snowpack is 40 times normal after rare summer solstice dump – Stamford
A good, warm rain will fix that.

[Danny B]

BTC,,,, more recession warnings

The Swiss plan to pull the plug on their financial treaties with the EU.
https://www.zerohedge.com/news/2019-...-battle-builds
Britain has been trying to do the same.
6/27 Boris Johnson: odds of no-deal Brexit are ‘a million-to-one against’ – Guardian
We all know that bitcoin is better than gold. It goes up faster.
6/27 Bitcoin has quadrupled in value in six months – Mashable
6/27 Bitcoin meets gravity – Seven Figure Publishing
https://www.zerohedge.com/news/2019-...s-1500-minutes

The SDR didn't fly because nobody wanted that garbage. They are trying a different angle of attack.
https://www.zerohedge.com/news/2019-...nancial-system
100% of the experts say that the economy is doing well. The working people,,,, not so good.
https://www.activistpost.com/2019/06...xperts-do.html

Here is one takeaway from the debates.
https://hotair.com/archives/2019/06/...randpa-leaves/
Tulsi Gabbard is campaigning against more wars.
https://www.zerohedge.com/news/2019-...ocratic-debate
Treasonous Trump;
Trump Rejected Attacking Iran 'We Don't Need Any More Wars'
6/27 Facebook to unmask ‘hate speech’ suspects in France – Zero Hedge
Just for the record, I hate facebook.
6/27 Bob Pisani: earnings this year may end up flat and that’s a problem – CNBC
Yep, might as well buy gold.
6/27 Global carmageddon continues: Ford set to slash 12,000 jobs across Europe – ZH
6/27 Goldman warns risk of market crash is highest since the financial crisis – ZH
How very strange. Consumption is falling even though the stock market is at all-time highs.
They got 40 times the normal amount of snow in Colorado. Some of it seems to have made it's way to London.
https://sputniknews.com/europe/20190...-uk-lawmakers/

[Danny B]

Robbed by finance,,, capital flight,,, OTHER indicators

The CBs created about $250 trillion of new debt money. The plan was for this money to seep into all markets and raise up everything. But, with mountains of new money, how could money command an interest cost? Money renters are faced with loaning out their money for 100 years at 1 %.
Armstrong,
"Why would anyone in their right mind buy a 100-year bond for 1%? The buyers appear to be pension funds who MUST own government debt as a matter of law."
"There is a serious problem brewing where as a matter of law pension fund must buy government paper and at low rates, the pension funds face massive failures going into the next 6 years."

Armstrong, (Germany and Italy are both crashing) and "YEP, Turkey has a very bad smell under it… Some European banks exposure to Turkey is going to result in them getting their arses kicked. Just add in ECB stupid policy to help the problem… How that ex G Sachs person was named ECB head and there isn’t/hasn’t been a revolve from European banks towards HIM I’LL NEVER KNOW… THEY are asleep at the wheel over there in Euroland MA (and not just in Europe I might add.. try Australia also), Europeans sending billions to US of A only goes to show some investors know the game is up in Europe ..and now lies eco ruins and perhaps WAR."
The take away is; the stupider the government is, the more capital flight to other jurisdictions like America and Russia. The more capital flight, the more QE is needed to keep things going.

The Daily Reckoning has good, informative articles that are easy to read and understand.
You should read the whole article.
"Since 1990, they conclude…

The financial sector has drained as much as $22 trillion from the United States economy:

What has this flawed financial system cost the U.S. economy?… We estimate these costs by analyzing three components: (1) rents, or excess profits; (2) misallocation costs, or the price of diverting resources away from nonfinancial activities and (3) crisis costs, meaning the cost of the 2008 financial crisis. Adding these together, we estimate that the financial system will impose an excess cost of as much as $22.7 trillion between 1990 and 2023, making finance in its current form a net drag on the American economy."

“Given the finite ability to service debt outstanding… future economic growth, if we are to have it, will need to be based largely on gains in productivity.”
Ten percent of GDP in 1970, the finance industry grew to 20% of GDP by 2010… like weeds in an abandoned factory.
And like spreading weeds, finance choked the path of labor…
The bottom 90% of American earners advanced steadily from the early 1940s through the early 1970s."

THEN we left the gold standard and, finance was able to create almost unlimited debt. This new debt money was channelled to money renters who were able to front-run everything we buy. Finance didn't so much choke off labor. Finance choked off purchasing power.

"A liberated Federal Reserve finally broke loose from its golden shackles… spread its nets… and ensnared the nation in debt.

Michael Lebowitz of Real Investment Advice:

The stagnation of productivity growth started in the early 1970s. To be precise it was the result, in part, of the removal of the gold standard and the resulting freedom the Fed was granted to foster more debt… Over the last 30 years the economy has relied more upon debt growth and less on productivity to generate economic activity."
https://dailyreckoning.com/gdp-the-new-slow-normal/
Keep in mind that most of the gains in productivity were the result of automation. Productivity has grown quite a lot but, this didn't do anything for wages. With falling / static wages combined with price inflation, consumption would be expected to fall. This was forestalled by increasing credit. Hence, the growth in the finance industry. We have reached credit saturation and, there is no growth on the horizon. FED GOV takes over consumption to make up the difference. Now, FED GOV is debt saturated.

Hussman Funds famously crashed because they were looking at fundamentals that have been reliable indicators over history. The world has never had endless mountains of debt money and; as it turned out, this was a game changer.
"Because of their reliability across history, we prioritized those syndromes following our 2009-2010 stress-testing exercise against Depression-era data. In hindsight, amid the novelty of quantitative easing and zero-interest rate policy, our pre-emptive bearish response to those “overvalued, overbought, overbullish” syndromes turned out to be detrimental. No incremental adaptation was enough until I threw my hands up in late-2017 and completely abandoned the notion that it was still possible to define any “limit” to speculation.

Since then, our requirement has been straightforward: Regardless of how extreme valuations or other conditions might become, we will defer adopting or amplifying a “bearish” investment outlook unless our measures of internals have explicitly deteriorated"
Hussman has a set of internals that do a much better job of predictions in the debt-money enviornment.
https://www.hussmanfunds.com/comment/mc190626/

6/28 Albert Edwards: This was the final recessionary shoe, and it has now fallen – ZH
6/28 Tulsi Gabbard wrecks Dems with powerful anti-war debate answers – Reason
There is speculation that the Chinese Yuan could displace the U.S. dollar. Not going to happen any time soon. Capital flight is eating them up.
https://moneymaven.io/mishtalk/econo...d-notification

Bitcoin Is All About Chinese Capital Flight - Forbes
Trade war triggers capital flight - South China Morning Post
China's Capital Outflows Are Suddenly Soaring Again... And Why This ...
Quiet capital flight dents China's sway as $1.2tn 'disappears' - Nikkei .
China constricts capital outflows with eye on yuan stability - Reuters

China is trying to conquer 'The Impossible Trinity': an economic puzzle no-one has ever solved
https://www.businessinsider.com/chin...trinity-2016-1
NOBODY can legislate stability and confidence. China is cracking down on Hong Kong. That, by itself will reduce confidence and, there is a lot fo money in Hong Kong.
So, while stock market fundamentals have deteriorated greatly in American markets, there are other important markers that are very important.
"unless our measures of internals have explicitly deteriorated"
The Euro crashes, capital flees.
The Yuan thrashes, capital flees.

[Danny B]

What DIDN'T Wall street destroy?

The markets are demanding a big rate cut BUT, a rate cut makes U.S. debt less attractive to fleeing capital.
“Chair Powell will have to thread the needle in sounding sanguine on the outlook, but also discuss that the Fed is ready to ease in order to make sure the recovery continues,” Bank of America analysts wrote June 14."
Powell has to jawbone the markets. If you can't dazzle them with your brilliance, baffle them with your BS.

"The erosion of much of the American industrial and defense industrial base proceeded like Lucent. First, in the 1980s and 1990s, Wall Street financiers focused on short-term profits, market power, and executive pay-outs over core competencies like research and production, often rolling an industry up into a monopoly producer. Then, in the 2000s, they offshored production to the lowest cost producer. This finance-centric approach opened the door to the Chinese government’s ability to strategically pick off industrial capacity by subsidizing its producers. Hand over cash to Wall Street, and China could get the American crown jewels."

"This loss goes well beyond telecom equipment. Talking to small manufacturers and distributors who operate in the guts of our industrial systems offers a perspective on the danger of this process of financial predation and offshoring. ""The United States has, for instance, lost much of its fasteners and casting industries, which are key inputs to virtually every industrial product"
"Hickey told a story of how the United States is even losing its submarine fleet. He had a conversation with an admiral in charge of the U.S. sub fleet at the commissioning of the USS Illinois, a Virginia-class attack submarine, who complained that the United States was retiring three worn-out boats a year, but could only build one and a half in that time. The Trump military budget has boosted funding to build two a year, but the United States no longer has the capacity to do high quality castings to build any more than that. The supply chain that could support such surge production should be in the commercial world, but it has been offshored to China."
https://www.theamericanconservative....-the-military/

6/28 Blain: “the group photo for the G20 looks line a line up for a Tarantino film” – Zero Hedge
6/28 Bank of Japan board debates more easing at June meet – Reuters
6/28 New-vehicle sales drop to where they were 20 years ago – Wolf Street
Just a temporary glitch.
6/28 UMich confidence hovers near record highs as business sentiment collapses – ZH
https://www.zerohedge.com/news/2019-...ment-collapses
Just a temporary glitch. It will all collapse in the spring of 2020/
6/28 Deutsche Bank considers cutting up to 20,000 jobs – Yahoo
Deutsche bank is a zombie but, the jobs are real.

[Danny B]

Technocrats and bankers bring it all down

"According to the McKinsey Global Institute report on consumer financial services, these three service areas generate approximately $6.6 trillion in annual revenue and has tended to grow at a 6% compound annual rate over the preceding decade." (2011)
"The financial sector has drained as much as $22 trillion from the United States economy:"

The financial sector can't possibly function without growth. To find this growth, they have had to cannibalize the productive sector. They are responsible to a great extent for the outsourcing to China and India.
"The Organization for Economic Co-operation and Development (OECD) suggests that financial services typically make up 20-30% of total service market revenue and about 20% of the total gross domestic product in developed economies."
They produce nothing but, account for 20% of GDP,,, even more in America.
"grow at a 6% compound annual rate"
This is a LOT of growth. It takes a LOT of liquidity. The CBs have concentrated on floating their cronies with fresh liquidity.,,,, Reportedly, the latest total has reached $247 trillion.
Reportedly,,," $184 trillion. Your share is $86,000"
Why is it YOUR share. You didn't incur it nor, did you benefit from it.
More importantly, you can't pay it. The CBs are on a treadmill with a 6% (compounding) incline.

Besides the major sins of the bankers, we have technocrats who plan to rule it all.
The Mind Of A Technocrat: Tech Oligarchs Are Worse Than The Robber Barons
https://www.technocracy.news/the-min...robber-barons/
You'll End Up With Kleptocrats Rather Than Technocrats
Global Research has an excellent article.
https://www.globalresearch.ca/the-ne...d-beyond/27908
The Rise of the Technocrats - Project MUSE - Johns Hopkins University
Are Technocrats Taking Over Our Democracies? | Gaia
Technocrats have taken over governments in Southern Europe.
Technocrats: Minds like machines - The Economist https://www.economist
The New Rulers Of The World - John Pilger
johnpilger.com/videos/the-new-rulers-of-the-world

So, where does this liquidity come from?
Shadow banking is now a $52 trillion industry and posing risks
https://www.cnbc.com/.../shadow-bank...-and-posing-ri..
To the technocracy, only profits are important.
How Britain stole $45 trillion from India | Colonialism | Al Jazeera
New Study: Crime, Corruption, Tax Evasion Drained a Record US ...
https://gfintegrity.org/.../new-stud...ed-a-record-us...
Dec 15, 2014 - US$6.6 Trillion Stolen from Developing World from 2003-2012
Concerns mount over reckless 2008-style lending in the $52 trillion shadow banking system.
https://www.telegraph.co.uk › Business
2 days ago

Outsourcing to China Cost U.S. 3.2 Million Jobs Since 2001 | Data ...
https://www.usnews.com › Civic › Data Mine Dec 11, 2014
"How many jobs are outsourced by the U.S. each year?
Pinning down the exact number of jobs that are moved overseas each year is difficult. It's estimated that 300,000 positions are outsourced annually. "
"Wages for outsourced workers vary widely by industry and by the country where they're employed. In the manufacturing industry, for example, Chinese workers make an average of $1.36 per hour, compared to $23.32 for U.S.-based employees. "

There you have it,,, right there. This caused a massive deflation of American aggregate purchasing power. 95 million not in the workforce. Finance needs to grow without interruption. The CBs need to print without interruption.

The technocrats have taken over because of the leverage they possess. They openly (kindof) came out and said that they need to make sure that the Trump election mistake never gets repeated.
Wages / purchasing power has crashed in the West due to the predations of the bankers.
Globalism has benefited just SIX countries. Most bond markets have been destroyed. The bankers wanted instant shifting of capital. This shifting capital has destroyed almost all markets. There is just too much centralization. Armstrong expects that they will NEVER try to stop the crash. "They" expect to just pick up the pieces. "They" hope for the SDR or a State-run crypto currency.

" Fox Business: “Dow Celebrates Best June in 81 years, S&P Best in 64 Years.” USAToday: “Stocks Post Best 1st Half Since 1997.” Newsmax: “Wall Street Soars 18%, Global Stocks Surge $18T in 1st Half.”
Bloomberg headline (Gowri Gurumurthy): “Junk Sales Hit 21-Month High as Issuers Lock in Lower Rates.” Junk issuance jumped to $28 billion in June, following May’s $26 billion. Year-to-date issuance of $130 billion is running 18% above comparable 2018. "
Party on Wayne !

Next stop, frugality.
https://www.peakprosperity.com/extreme-frugality/
6/29 Los Angeles seeks record setting solar power price under 2¢/kwh – PV Magazine
6/29 FT’s Jemima Kelly thrashes Facebook’s “crypto” project – Phil’s Stock World
FT is a mouthpiece for many of the elite.
6/29 Iran seizes 1,000 bitcoin mining machines after power spike – BBC
Just like the pot growers who attracted the cops with their electric bill.
https://finance.yahoo.com/news/ve-go...170413527.html

America's control of the IMF and Swift gives them a LOT of leverage worldwide.
6/29 EU launches system to circumvent swift and Iran sanctions – Zero Hedge
China rejects US 'sanctions' on Iran oil vows to protect its energy security
Pox Americana has crashed SWIFT trying to block Iranian oil from the markets.
6/29 U.S. is heading to a future of zero interest rates forever – Bloomberg
6/29 Wall Street wraps up its best June in decades as G20 convenes – Reuters
6/29 Today’s Wall Street has all the hallmarks of tulip mania – Wall St On Parade

[Danny B]

Avoiding sanctions,, moral decay,,gold & BTC

Indian politics, "Furthermore, according to the Metals Focus Consultancy, they forecast even stronger Indian silver demand in 2019 due to rural Indians spending their “Cash Handouts” from the government to assist local economies ahead of the President’s election. "
Theocracies,
Saudi and israel have pushed America to attack and sanction Iran. This has resulted in Europe rejecting American demands to form an attack coalition. It is also causing a rejection of SWIFT and the IMF. It is causing German to move closer to Russia and, depend on Russian energy. Europe desperately needs Nordstream. This may have been Trump's plan all along. Get Western Europe and Eastern Europe so economically entangled that war would be out of the question.

Fracking, "Still, the shale sector was unprofitable at roughly those levels in the first quarter, and by all accounts, drillers continue to burn through cash. In fact, according to Rystad Energy, the return on investment from oil and gas wells in the Permian peaked in 2017."
https://www.rt.com/business/462880-u...tcies-looming/
Here is an excellent article from Charles Hugh Smith Morality and decay.
oftwominds-Charles Hugh Smith: Following in Rome's Footsteps: Moral Decay, Rising Inequality

6/30 More S&P 500 companies issuing negative EPS guidance for Q2 – Factset
Well, if earnings per share is negative, you might as well buy gold.
Keep in mind that $trillions in stock buybacks was done specifically to raise EPS.
6/30 Pension “death spiral” crisis reaching fever-pitch in the US – Zero Hedge
With a total of unfunded state liabilities reaching $213 trillion, this comes as no surprise.
6/30 Dovish central banks to push Asian bond yields lower – Reuters
Gotta keep the capital flight flowing.
6/29 80% of the stock market is now on autopilot – CNBC
Well, if earnings are negative, the plane is out of gas.

Forbes, "It's no coincidence that gold and bitcoin are both taking off this year."
6/30 Crypto exchange and XRP refuge Bitsane vanishes, scamming 246,000 users – Forbes
6/30 Dutch PM panics as Italy risks eurozone meltdown ‘they can’t escape!’ – Express
Panic early and, avoid the rush.
6/30 What America needs is a paradigm shift – FFF
Don't worry. That is exactly what America is going to get. When peak-cheap-oil finally sets in.
6/30 World’s largest solar power plant switched on – Forbes
It was switched on 11 billion years ago.
6/30 The forever war is so normalized that opposing it is “isolationism” – Zero Hedge

Iran on EU Trade Mechanism to Bypass US Sanctions - 'Beautiful Car Without Fuel'

Tehran Mocks 'Totally Useless' US Sanctions as Europe's Iran Trade Mechanism Comes Online

[Danny B]

Slipping confidence,,, Dems and war

The whole system depends on confidence AND greed. Everybody wants a chunk of the $trillions that the CBs are pumping in. The CBs have tried to make the situation so that there is no alternative TINA. They pumped liquidity into all the markets. Various corporations used $trillions to buy back stock so that there would be fewer shares outstanding. Earnings-per-share would go up even if gross earnings went down. Bonuses would get bigger. This sleight of hand, combined with capital inflows (from capital flight), has kept markets looking far better than fundamentals would indicate.
John Hussman Phd was focused on fundamentals alone and, lost a LOT of money for his clients. He finally focused on "other" factors and, got a more accurate picture.
U.S. Stocks Still Look Better Than Anywhere Else - Bloomberg
https://www.bloomberg.com/news/.../u...-anywhere-else

Jun 3, 2019 -

Just the same, these other factors have to deteriorate eventually. As they deteriorate, the money-renters stop looking for yield and, start trying to protect their principle. Money flees markets that have no future earnings. Since Russia already had their financial collapse, they are seeing inflows.
"Russia recorded a capital and financial account surplus of 31354.85 USD Million in the first quarter of 2019. Capital Flows in Russia averaged 9317.55 USD Million from 1994 until 2019, reaching an all time high of 33092.79 USD Million in the fourth quarter of 2018"
Gold has gone up quite a bit as investors try to protect their principle.

7/01 Only 12% of Vancouver families can afford an average home – HuffPost
7/01 SoCal homes available for sale soar by 37 percent y-o-y – Dr. Housing Bubble
As socialism bites, people try to get out. Same in Illinois. As taxes go, your home loses market value.
7/01 “Wealthy” Chicago households on the hook for millions in pension debt – Wirepoints

7/01 Steve Forbes urges facebook to link its cryptocurrency to a fixed weight of gold – GATA
Nope, it's linked to currencies and treasury bonds. You can NOT have your transactional currency the same as your store-of-value. The strongest currency goes into hiding and, is used as a store of value. If the Libra was locked to a weight of gold, it would be stashed away and not circulate. The Libra looks to be nothing more than an electronic SDR. It would ultimately be controlled by the CBs.


6/30 Dutch PM panics as Italy risks eurozone meltdown ‘they can’t escape!’ – Express They were warned back in 1989.
7/01 Only central banks could handle recent losses on gold futures sales, Turk says – GATA
The CBs hate gold because it is an alternative to their fiat paper. They did everything that they could to drive it down. Many of them have thrown in the towel and, are now buyers. Keep in mind that they can just create new liquidity and buy gold for free. They want to hold gold but, at the same time, they don't want CB buying to drive up the price and attractiveness.
7/01 Central banks increased gold purchases by 74% in 2018 – MunKnee
7/01 Dow futures surge after Trump and Xi agree not to impose more tariffs – CNBC
The existing tariffs are quite enough to crash China.

"Zombie companies in China's heavy industries are serviced by networks of ... calculated that zombie companies accounted for 9 per cent of China's total corporate debt. ..."
"The Federal Reserve Is About To Create A Lot More Zombies | The ...
https://www.thewealthadvisor.com/......t-more-zombies

6 days ago - The BIS says there are way too many zombies around, and they're killing the ... Lower interest rates are correlated with rising numbers of zombie companies, "
"The Zombie (Company) Apocalypse Is Here – OpEd – Eurasia Review"
Everybody is reluctant to kill off zombies because on the lost jobs.
7/01 America’s greatest bull market rages on against the dying light – Economic times
7/01 In a few hours, this will be the longest economic expansion on record – Zero Hedge
7/01 Hedge fund CIO: “the math does not work” – Zero Hedge

7/01 Global capex has ground to a halt – Zero Hedge
Nobody will spend money on capacity-expansion when falling wages reduce aggregate purchasing power. The banks demanded $trillions of new money so that they could restart loans and get the economy going again. They just deposited this money at the FED to collect a few points of interest. MUCH safer than loaning it out to support a shrinking economy.
7/01 BIS warns “slowdown is worsening and spreading” – Zero Hedge
WAIT, Wall st. is having their best time ever.
6/30 Deutsche Bank’s medieval medicine – Forbes
Deutsche bank is valued at $14 billion and, they are going to spin off a $50 billion "bad bank"

7/01 The Tulsi effect: forcing war onto the Democratic agenda – American Conservative
7/01 Progressives rage over the humanitarian border crisis – Vanity Fair
To the Dems, it doesn't matter how many millions we kill in MENA. Mexican kids should NOT have to sleep on the floor. We kill 1/2 million Iraqui kids.
"raq had been responsible for the deaths of more than 560,000 children ... Madeline Albright replied “I think this is a very hard choice, but the price – we think is worth it."
"US Has Killed More Than 20 Million People in 37 "Victim Nations ...
https://www.globalresearch.ca/us-has....in.../5492051
16 hours ago"

NOPE, we can't let the illegals suffer and discomfiture. DEMS, 2-faced killing 8astards.
"For the last century, America has been led by one war party or another.
Democratic administrations brought us into the evils of World War I (Woodrow Wilson), World War II (Franklin Delano Roosevelt), the Korean War (Harry S. Truman), and the Viet Nam War (Lyndon Baines Johnson)."
"A hundred years of wars have all but destroyed the American economy with taxes, while putting us in such a debt-debacle there is not enough money in the world to pay off the interest and principal the private and foreign shylocks claim we owe them.

Worse yet, these wars have taken a most savagely devastating toll on the personal freedoms of those whose nation was once the freest in the world."
https://rense.com/general96/warparty.html

"High-ranking Democratic Party officials have told associates of Lyndon LaRouche that the DLC was launched in order to stop the takeover of the party by LaRouche, as well as others who were working to bring the party back to its Franklin Roosevelt orientation.

- Bury FDR, Bring in the Bull Moose -

Roosevelt himself, speaking to labor, the poor, Depression-wrecked farmers, the forgotten man, in his 1933 Inaugural Address, blasted "the rulers of the exchange of mankind's goods.... Practices of the unscrupulous money changers stand indicted in the court of public opinion.... Stripped of the lure of profit by which to induce our people to follow their false leadership.... [T]he money changers have fled from their high seats in the temple of our civilization.... Our greatest task is to put people to work.... [T]here must be a strict supervision of all banking and credits and investments; there must be an end to speculation with other people's money...."

"The DLC, sponsored by the criminal element Roosevelt denounced, has boldly announced their intention to bury Roosevelt's Democratic Party. In the September 1998 issue of their magazine, {Blueprint}, DLC strategists William Galston and Elaine Kamarck propounded certain supposed "Realities That Will Shape 21st Century Politics," whose main premise is that "the New Deal era has ended."

They declare that America has a "declining working class"--and that is good for politics. They celebrate the collapse of labor unions in the hyper-speculative New Economy, and applaud "the decline of organized labor as a force within the Democratic Party." The "Hollowing Out of the Middle Class" is "mostly for the better"; the "widening gap between the wealthy and the poor" is a good development!"
https://rense.com/general37/huj.htm

7/01 Ocasio-Cortez flames Ivanka Trump: We should have sent a ‘qualified diplomat’ – MW

Spoken by a former barista.
In a general sense, it wasn't mainstream Dems that endorsed the war party The party was hijacked by the DLC. In later years, it would be HRC that brought the focus of the Dems to a continual war footing.
Tulsi Gabbard is forcing the Dems to take an open stand on the wars.

[Danny B]

Falling consumption,,,BIS warning,,,MMT rises as confidence falls

During the 2008 crash, there were ships loaded with BMWs sitting off the ports that couldn't unload because there was no place to put the cars. The dealers weren't selling anything. Confidence was lost and, people were holding onto their money. This became self-reinforcing.
"A third of Americans say they’ve cut spending in the last year, and that percentage is about the same no matter the demographic, according to the Invest in You Spending Survey released on Monday."
https://www.cnbc.com/2019/06/28/why-...-spending.html
"BIS Warns "Slowdown Is Worsening And Spreading" As Central Banks Run Out Of Ammo"
" this report too and the speech delivered alongside the Annual General Meeting in Basel by Agustin Carstens, will be summarily ignored by those who matter, until the next financial crisis strikes and everyone is shocked how there were no signals indicating the arrival of what will soon be the greatest financial catastrophe in world history."
" “The continuation of easy monetary conditions can support the economy, but make normalization more difficult, in particular through the impact on debt and the financial system,” the BIS warned."
So, get rid of the debt.

"a better mix is required between monetary policy, fiscal policy, macroprudential measures and structural reforms."
Ah yes, the MMT camel puts his nose in the tent.
"The possible costs arise mainly through financial channels. The historically low-for-long interest rates tend to compress banks' margins, lower profits and hence reduce banks' ability to build up capital, essential for a productive economy. "
YOU LIE LIKE A RUG !
Shifting money to the banks that can only come from ONE place,,,, the productive economy. Reducing the operating capital of industry AND the purchasing power of consumers will NOT rescue the economy. As we see right now, Wall St is having the most profitable time in history and main street is crashed
" These historically high debt levels limit the scope for households to drive economic activity." No kidding,, they can't buy any more Chinese junk.

"the leveraged loan market is now some USD 3 trillion in size, comparable to the collateralised debt obligations that amplified the subprime crisis. Structured products such as collateralised loan obligations (CLOs) have surged. Credit standards have been declining as investors have searched for yield"
The CBs pumped in $trillions to rescue the banks AND the State. The flood of money "lifted ALL boats". INCLUDING the leaky ones.
Those leaky boats are now called "zombies"
"Meanwhile, even as central bank ammunition has dwindled to almost nothing, global growth is slowing: "If anything, the slowdown appears to be worsening and spreading since the Report went to press. "
https://www.zerohedge.com/news/2019-...s-run-out-ammo
To a certain extent, those leaky zombies were floated to provide a continuation of employment.

Here is an article from Armstrong proving that NO NYC bank has ever been prosecuted for robbery. MUCH of America's financial capital is concentrated in NYC. What will happen in the inevitable melt down?
https://www.armstrongeconomics.com/w...mf-global-era/
The article mentions something that I have written about before. NOBODY has any physical proof of ownership such as stock certificates. EVERYTHING is held in the name of Depository Trust Company (Cede & Co).
The physical certificates were held in a vault in NYC. The vault was left open as hurricane Sandy approached and, the certificates were mostly ruined. THEN, there was a fire.

'Wealthy' Chicago Households On Hook For $2 Million In Debt Each Under 'Progressive Solution' To Pension Crisis
Germany Plans to Cut Military Spending in 2020-2023 in Affront to US - Report
They shouldn't do that. You never know when France might invade again.
FRANCE ATTACKED GERMANY FIRST - Tomato Bubble
tomatobubble.com/id804.html
Iranian MP Warns 'Only Half an Hour Will Remain of Israel's Lifespan' if US Attacks Iran
3 years ago, Haaretz published an article that quoted the IDF and stated; Iran has 231,000 missiles that it can launch at israel. No amount of searching with google or Duckduckgo seems to turn up this article.
The current claim is that israel has 200 nukes that it can shoot at Iran. The IDF report states that israel can expect to receive 11,000 missiles a minute. Bummer

7/02 On a tiny, isolated island, USDA scientists prep for the pork-pocalypse – New Food
It was originally projected that China would need to cull 400 million hogs. Now, it is expected to get worse.
7/02 Georgia court system hit by ransomware attack – Zero Hedge
6/24 Riviera Beach pays $600,000 cyber ransom to regain data access – PBP
You have to admit that ransomware is an excellent business model.
7/02 New solar + battery price crushes fossil fuels, buries nuclear – Forbes
7/02 Bright futures: efficiency versus cost in solar cell production – Power Tech
7/02 A fine couple they are (wind and solar power) – Power Mag
7/02 UAE debuts the world’s largest individual solar power project – Engadget
I'll be very happy to see ALL fusion power die a gruesome death. There are 231,000 fuel rods in pools in America that must be maintained with no accidents. Japan is covered with stored radioactive material. Parts of Chernobyl are covered with 2 meter thick steel plates. The dirty material just keeps piling up.
If you read at Eagle Research, they have very interesting articles showing that; the flame from burning HHO gas can REMOVE the radioactivity from radioactive materials.

7/02 Construction spending unexpectedly weak; single-family down every month – Mish
Well, family formation is shrinking too.
7/02 Companies are warning that earnings are going to be brutal – CNBC
No kidding. Maybe it is tied to consumption. Buy gold if stocks have no earnings.
7/02 French bond yields slide below zero, hit all time record lows – Zero Hedge
France has long been out of compliance with EU debt rules.
7/02 Ron Paul: media and politicians ignore oncoming financial crisis – Eurasia Review
This was reported in Eurasia review. Don't expect it to be reported here.
7/02 Why wealth gap has grown despite record-long economic growth – AP
Yeah, really strange.
7/01 Morgan Stanley on trade truce: no real progress, downside risks remain – CNBC
Trump said, no new tariffs.

Here is a good article on contagion. Keep in mind that banks are free to lend OR, to not lend. In the 2008 crash, the overnight lending between banks came to a halt. Nobody knew which bank was solvent. Banks stretch out a lot and, often need some new funds to cover temporary shortages. If they can't get these funds, it sends ripples through the system. In the 2008 crash, The FED opened it's "overnight" window to make up for the lack of interbank lending.

"First it was China. The end of May saw the collapse of an obscure Inner Mongolian bank, Baoshang, which had about $90 billion in assets and which had seemed perfectly healthy.

Why it matters: The government blamed misappropriation of funds by the bank's owner, but the damage was done. The interbank lending market in China seized up, especially for smaller institutions.

Small and medium-sized Chinese banks are collectively as big as the large players, and they're very reliant on interbank funding. After Baoshang defaulted on its interbank obligations, it became very hard for smaller banks to convince larger ones that they were safe. The central bank ended up having to step in with $125 billion of emergency liquidity, "
You can see that confidence is all-important.
"Next came investment funds. The GAM Greensill Supply Chain Finance fund, in Switzerland, imploded in early June, followed in short succession by Neil Woodford’s Equity Income fund in the U.K. Then came French asset manager H20 Asset Management, running into similar problems.

Much like Chinese banks, funds that invest in illiquid securities suddenly find themselves under extreme scrutiny. Each bad apple seems to infect another."
You see the problem. So many financial instruments are illiquid if confidence goes away.

7/02 ‘Bitcoin investors will face FOLE, not FOMO’ says gold proponent Peter Schiff – Coinape Fear of losing EVERYTHING
7/02 Does Japan vindicate Modern Monetary Theory? – Project Syndicate Only to a certain point
7/01 It’s no bitcoin: Facebook’s libra currency is tied to government currencies – Mises
7/01 Laffer: Federal Reserve shouldn’t be independent from White House – NY Post
The MMT camel sticks his nose further into the tent

[Danny B]

If the banks go up, everything else must go down.

Charles Hugh Smith' "The keys to understanding the concealed crisis of decline are purchasing power relative to wages/earnings--how many goods and services can wages buy? For the average American household, wages have risen modestly while the purchasing power of those wages has plummeted. "
"Bottom line: how much housing, higher education and well-being does the average wage buy now compared to decades past? Not much. The statistics are bleak: wages are basically unchanged from the high water mark 50 years ago, which coincidentally was also the high water mark of U.S. energy production until very recently. Adjusted for purchasing power and quality, the average paycheck buys far less than it did 50 years ago. "
So, what happened 50 years ago? That would be 1970, when the last link to the gold standard was broken. Who broke that link? It is attributed to Nixon But, his predecessors were the ones who ran up the bills and broke the bank. That would be the welfare-warfare state.
https://www.oftwominds.com/blogjuly1...risis7-19.html
The rise of currency inflation has brought the greatest gains to the finance industry.

France recently discovered that they had been paying a salary to people who hadn't shown up for work since 1989.
https://www.breitbart.com/europe/201...ont-have-jobs/

7/02 Relief rally fades as growth fears loom – Reuters
Communication is just too good. Nobody is convinced.

"Abstract

Due to the increasing value of the dollar, world oil prices rose rather than fell relative to the price of OECD exports between 1980 and 1984. The real crude oil price of OECD countries increased by approximately 30% more than its counterpart for the USA. "
Energy is the master resource. Much of the prosperity in America is due to the fact that oil-priced in dollars gives us an advantage over most other countries. Fracking has lost $208 billion dollars and, is subsidised by the FED pumping up the junk bond market.
The FED continues to cheapen the value of the dollar. At the same time, America needs to hold down the price of oil. $10 dollar diesel fuel would cut way back on commerce.
America reached peak-cheap-oil decades ago. How long can it deflate the value of the dollar and still afford to buy oil?
https://inflationdata.com/Inflation/...lInflation.asp

7/02 US retailers demand an antitrust probe of Amazon and Google – Zero Hedge
Winner-take-all economic sounds OK, just like globalism sounds OK. It just doesn't work out in practice.
7/02 40% of global debt now delivers a negative yield – Kitco
What a mess !
7/02 Japan Inc’s inflation expectations stagnate, keep BOJ under pressure – Reuters
Pretty soon, the BOJ will have to print babies.
CBN news reports that separation of church and State is problematic for lefties in Calif.
https://www.youtube.com/watch?v=ZDE7I50Br3Y

[wayne.ct]

Inflation, Interest rates and the FED rate

It is interesting to me how the different groups of people respond or react to the raw "information" that is broadcast concerning these three subjects.

The large percent of the population that have no reserves, savings and investments (cash based poor) added to the additional large part of the population that are in debt but have jobs or other regular income with which to make payments (debt-credit poor, negative net worth) comprise the first "group". This large group, I would say, have a common view of this subject. It makes up perhaps 80 to 95 percent of the U.S. population?

Their view? In general?
Inflation: Negatively affected but mostly ignored because it is "future"
Interest rates: They don't care as long as they are not "too painful"
FED rate: They don't care and don't feel any need to understand it.

Group 2: People with a positive net worth, debts (if any) are well within their ability to pay, not "tied" to the financial industry.

Their view?
Inflation? Not worried.
Interest rates? Can be managed.
FED rate: "Does not affect me"
Size of group? Hmmm... 1 to 10 percent? I dunno.

Group 3: Tied to the financial industry but "dependent"
Inflation? Very worried
Interest rates? Very worried
FED rate: True believers. In denial because the system is "failing"
Size of group? 10 percent?

Group 4: Tied to the financial industry but "in power", "controllers", "elite"
Inflation? "bring it on", afraid of deflation
Interest rates? Afraid of massive defaults if they get "too high"
FED rate? Worried that the "masses" will get spooked.
Size of group? very small.... Is this the 1%?

So, Is this a reasonable perspective on the situation?

It seems to me that as long as the first three groups don't rock the boat too much or "wake up" that this situation can go along for quite a while. And this mass of humanity is by and large apathetic.

I would like to think more about this and it is a problem to consider when reading some of your posts. Any other comments?

[Danny B]

What happens when State finances collapse/

Wayne, your numbers all sound reasonable. I don't know because i follow data sets more than I do confidence levels in different cohorts. On the question of confidence, I can look around at the people I see. Los Angeles is a major port for the trans-pacific trade. Just L.A. and Long beach unload 54,000 containers a day. Much of this stuff is reworked and trans-shipped from here. I don't know what is going on in other places as far as first hand information.
As far as confidence, I frequently quote Martin Armstrong. I've cited his accuracy record MANY times. Armstrong calls for a collapse of American sovereign debt. This is a HUGE turning point in his models. Could he be wrong? Not very likely.
51% of Americans receive a check from GOV. 45 million receive direct assistance. If you assume a collapse down to the point where GOV can only spend what it takes in, much of that 51% is going to be $hit out of luck.
Projecting just this one data point means a collapse of commerce and society.
Mises said many years ago; "there is no escaping the final dissolution of a credit bubble."
Could he be wrong this time? Doubtful.

At the moment, it looks like Europe is going to go down in flames before America.
7/04 For the first time ever, German bund yields drop below the ECB’s deposit rate – ZH
7/04 UK likely to fall into recession after no-deal Brexit – Independent
7/04 “Sad” milestone as all Danish government bond yields dip below zero – Reuters
7/03 ECB comments knocks euro zone bond yields to fresh lows – Reuters
7/03 The politicians take charge at the ECB – Bloomberg

"Christine Lagarde will replace Mario Draghi come the end of his term. Of course, the IMF has not been entirely supportive of Draghi’s policies. But she is predominantly a lawyer and does not have the experience in how markets function She has no idea of what she is walking into. The ECB cannot raise interest rates without blowing up the budgets in the EU and there is no way to stop Quantitative Easing as well."
"Germany’s Ursula von der Leyen was chosen for the commission presidency. Also based upon reliable inside sources, she is very anti-Russia and believes that war is justified. She seems to be a puppet for the neocons and is reported to be not a dynamic or independent thinker."
So the Eurozone ship is headed for the rocks and, they put the cook in charge as sailing master.
7/04 The EU has a new batch of unelected leaders – RT
Substitute "unqualified" for unelected.


As far as confidence levels, they just aren't tuned in to the actual situation. The post-war boom that America experienced is dying a hard, slow death in the minds of many people.
7/04 The manufacturing sector is rolling over but inventories keep piling up – Mish
7/04 New-vehicle sales fall to 1999 levels – Wolf Street
7/04 Yield curve craters – Seeking Alpha
7/04 Defensive stocks surge ahead of payrolls as entire Treasury curve inverts – ZH
Too many people are hyper-extending their "normalcy bias"
7/03 Gov. J.B. Pritzker says Illinois can’t take on Chicago’s public pension liabilities – CT
Chicago figured that the would get the state to cover their losses. Everybody thinks that somebody is going to pick up their tab.
The confidence level IS turning but, slowly.
7/03 40% of Americans think a recession is looming – SafeHaven
7/03 Small business employment collapses “like in march 2008” – Zero Hedge

I suspect that if every American was aware of the truth of the country's finance, there would eb a lot more preppers.

7/03 Italian socialist elected president of Europe’s parliament – Zero Hedge
7/04 American pride in political system hits new low – Gallup
Rep. Frederica Wilson demands prosecution for those who mock Congress online
https://www.washingtonexaminer.com/n...ongress-online
Congressional approval is normally 20% or less. How do they figure that we have a democracy?

Kunstler was certain that congress would not drag Mueller in to testify BECAUSE republicans could ask him questions also. They are going to drag him in.
7/03 Stagecraft – James Howard Kunstler
https://kunstler.com/cluster****-nation/stagecraft/

"job to go and work as one of his researchers for the Club of Rome. He then said to me—and these were his exact words that I remember so clearly—‘You’ll be joining us at a very exciting time. We are creating a global environmental problem that’s going to frighten people into wanting global government.’ ”

“At the time,” Walker continued, “being a Green politician, I thought this was wonderful. I didn’t know the facts about Bilderberg, because this was before [British conspiracy researcher] David Icke [also a former Green Party member] started doing his research and other people started doing their research, to show that there’s a hidden tier of government above our elected governments.”

He went on to say that, before 1982, “Nobody mentioned manmade global warming. If anything, they were talking about a mini ice-age. And they were talking about acid rain. This was obviously when they started to get the idea that they could latch onto ‘global warming.’ ”
https://teapartypac.org/bilderberg-g...-green-agenda/

The latest research shows that global temperatures are most heavily influenced by cloud cover. In a few months, we enter solar cycle 25. The weather is going to get much more violent.

"Bitter Networks CBS, ABC, NBC, And MSNBC Refuse To Air Trump’s “Salute To America” 4th Of July Celebration"
https://teapartypac.org/bitter-netwo...y-celebration/
They say that he has politicised the 4th of July.

The FED doesn't really have to print lots of money to cause inflation.
Armstrong, "ANSWER: Once upon a time before 1971, there used to be a difference between debt and cash. Government bonds were not acceptable for collateral. You could not borrow against them. You had to liquidate them. This is why they once believed that it was LESS INFLATIONARY to borrow than print."
"We have returned to that whereby TBills are a street name and are good collateral so they have become the equivalent of bearer bonds that merely serve the purpose of currency."
https://www.armstrongeconomics.com/a...-become-money/
When we broke the last link to the gold standard, the FED was able to go crazy printing bonds. They didn't have to print currency to cause inflation. All these bonds were pumped through the bankers.

[Danny B]

globalism = unworkable,,, trade deficits

Reportedly, Germany is collapsing because of the "green" agenda.
https://moneymaven.io/mishtalk/econo...d-notification
This includes their power grid.
https://www.armstrongeconomics.com/m...rious-trouble/
Right now, Alaska has a terrible heat wave. What happens to Europe when it gets hit by another heat wave? They don't even have A.C. in many places? The unfolding of the next solar cycle is going to cause a lot of damage and distress.

"Allowing cash to die would be a grave mistake. A cashless society is a surveillance society. The recent round of protests in Hong Kong highlights exactly what we have to lose."
"This week, anti-extradition protests reached another crescendo,"
"In Hong Kong, most people use a contactless smart card called an "Octopus card"
"But no one used their Octopus card to get around Hong Kong during the protests. The risk was that a government could view the central database of Octopus transactions to unmask these democratic ne'er-do-wells. Traveling downtown during the height of the protests? You could get put on a list, even if you just happened to be in the area.
So the savvy subversives turned to cash instead."

The world is waking up to the fact that; you can't have production in one place and, consumption in another. Recently, Germany had a $1 trillion trade surplus and, the rest of the EU had a $1 trillion trade deficit. While things were good, German flew very high. When the rest of the EU ran out of money, even Germany fell. The same is true for China. They did very well until their customers ran out of money. Now, China is falling fast.
America has a common public debt market in the U.S. treasury. Armstrong warned the eurocrats back in 1997? that no common currency had ever survived unless the currency union had a common debt union. Being politicians (idiots) they persisted and, went ahead with their plans to force the union. (keep voting until you get it right)

This whole globalism scheme has thrown markets way out of balance. China doesn't want to change because they benefited so much. The Eurozone doesn't want to change because they are pig-headed politicians who dream of a tightly controlled corporatocracy ruling all Europe. Commenting on Italy's huge deficit, "they" said that the Italians should become more like the Germans.

This imbalance is reflected in trade imbalances. The trade imbalances, specifically, the trade deficits, are making the system UNWORKABLE.
take a look at this chart,
https://imageproxy.themaven.net/http...fp-debug=false

"May exports were $210.6 billion, $4.2 billion more than April exports.
May imports were $266.2 billion, $8.5 billion more than April imports.
The May increase in the goods and services deficit reflected an increase in the goods deficit of $4.4 billion to $76.1 billion "
The FED can't stop printing or, we have to cut way back on imports.
"Deficits: Deficits were recorded, in billions of dollars, with China ($30.1), European Union ($16.9), Mexico ($9.1), Japan ($6.0), Germany ($5.8), Canada ($3.6), Italy ($2.6), France ($2.1), India ($1.9), Taiwan ($1.5), South Korea ($1.4), and OPEC ($0.1)."
https://moneymaven.io/mishtalk/econo...d-notification
I seriously doubt that globalism can be unravelled peacefully.

7/05 Time to end BoJ’s grand experiment? – Japan Times
This is no grand experiment. The BOJ is trying to save everything on the island.
7/05 Chicago’s Pritzker signs budget giving teachers a pension spike – PJ Media
Why not, Chicago is already bankrupt.
7/05 All this borrowing to consume is unsustainable and the bill is overdue – Claudio Grass
So, get rid of the military and, cut back on worthless expenditures.
7/05 US sees most layoffs since the financial crisis, many in retail jobs – USA Today
Thank Amazon.
Beijing insists all US tariffs should be removed for a trade deal to happen
Note to Xi, don't hold your breath.
'Architect of Austerity' George Osborne Aims to Replace Former IMF Chief Lagarde - Report
Why not? austerity has a proven track record of being completely destructive.

Globalist Tech Companies Appear To Be Poised To Boycott Trump Social Media Summit, Spox Silent
STUPID They seem to think that Trump and the FCC have no power over them. They could go to the summit and, argue their case for continued independence. Nope, they prefer to p[rove their stupidity. They viciously attack Trump, et al. They lie about EVERYTHING. They spy on everybody. They seem to think that they have too much popular support to get FED GOV to put a hex on them. WRONG, they don't have very much popular support at all.

[Danny B]

Gold and, the discipline of the printing press

To recap, at one time, the FED was constrained on how much currency it could print by the amount of gold in the Treasury. The private banks were constrained on how much credit they could create by the amount of reserves they held.
Thanks to the welfare-warfare State, gold was leaving the treasury at the rate of 100 tons a week in summer of 1971. When Britain notified that the treasury that they were going to pick up <3360> tons, Nixon slammed shut the gold window 4 days later. He was subsequently eviscerated. Once we were off the international gold standard, the FED was able to create as much debt paper as it wanted.

With the change in regulations, treasury bonds became "money". They could be used as collateral. Banks could buy treasury bonds without their working capital tied up in something that was not liquid. In essence, this doubled the "money" in circulation as far as FED created "money". The FED also sent lots of "money" to the private bankers to be held as excess reserves. The FED paid interest on these reserves,,, free interest paid on the free money.
In addition to FED created free money, the banks took your savings to buy up everything and, speculate against the final consumer. When your savings were not enough to keep all of this going, they were given trainloads of fresh money. This meant that they didn't have to pay interest to get your savings.
No wonder Wall St. is having the Best time in history.
FED GOV is deathly afraid of a collapse so, they go along with the printing.
Everybody is caught in a trap that originated when the constraints of gold were removed.