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Running on fumes emanating from huge piles of steaming BS
THAT is the story on Europe. Armstrong said that the collapse would start there.
The story in America is somewhat different. I need to post more and, excerpt less. The articles are just too good.
C.H. Smith;
"
The global economy and financial system are both running on the last toxic fumes of financialization and globalization.
For two generations, globalization and financialization have been the two engines of global growth and soaring assets. Globalization can mean many things, but its beating heart is the arbitraging of the labor of the powerless, and commodity, environmental and tax costs by the powerful to increase their profits and wealth.
In other words, globalization is the result of those at the top of the wealth-power pyramid shifting capital around the world to exploit lower costs of labor, commodities, environmental regulations and taxes.
This manifests as offshoring of jobs, the stripmining of forests, minerals, etc., the degradation of local ecosystems, the decline of tax revenues derived from capital and the explosive rise in stock market valuations as wages stagnate or decline.
A key element in globalization is the transfer of risk from the owners of capital to the workers and public resources. Examples of this transfer of risk abound: rather than pay workers benefits, corporations game part-time/full-time labor laws so workers' health insurance is paid by taxpayers (Medicaid). Corporations pay wages too low to survive so workers depend on public-sector assistance (food stamps, etc.)"
Yes, privatizing the gains and, socializing the losses. Did it never occur to them that the public purse might go bust?
"
Financialization is the exploitation of assets/income that were previously safe from predation by those with access to low-cost central bank credit. While definitions vary, mine is:
Financialization is the mass commoditization of debt collaterized by previously unsecuritized assets, a pyramiding of risk and speculation that is only possible in a massive expansion of low-cost credit and leverage for those at the top of the wealth-power pyramid: financiers, banks and corporations.
One example is the student loan "industry," which prior to financialization did not exist. A previously safe from predation asset/source of income--college degrees--has been securitized so that loans issued to students for largely worthless diplomas can be sold globally as "secure assets with guaranteed yields."
That the exploited class of students have little to no income and no guarantee of income doesn't matter. What matters is a previously unexploited asset can be turned into debt that can be sold at an immense profit."
"
And so student loan debt has skyrocketed from near-zero to $1.6 trillion in less than a generation. This rapacious, ruthless exploitation would not have been possible without the central bank (Federal Reserve) and federal government enabling and enforcing the supremacy of private capital and the predation of the higher-education cartel."
"The subprime mortgage loan bubble was another example of financialization: a previously inaccessible asset/income--the earnings of households with poor credit ratings--was suddenly available for exploitation, and guaranteed-to-default subprime mortgages were packaged with lower-risk mortgages and sold globally as "secure assets with guaranteed yields."
"Alas, all good predations end when the herd of prey has been dragged to the ground and consumed. All the fruit of financialization and globalization have been plucked by the powerful, and now both the engines of "growth" are sputtering."
"The prey always seem limitless to the predators, but this illusion expires when suddenly there is no longer enough for the ravenous pack of financial predators. At that point, the predators turn on each other. That is the narrative that will come to the fore in 2020 and play out in the decade ahead."
http://charleshughsmith.blogspot.com...ecline-of.html
David Stockman;
"The trade chaos that Trump’s creating is probably the catalyst that will bring down the whole house of cards.
At end of the day, it’s about the Red Ponzi. The world economy would be not nearly as good as it looks had the Chinese not been borrowing like there’s no tomorrow and building regardless of whether its efficient or profitable.
This has kept the global economy inching forward on a totally artificial basis. You could track it; some people call it the “China credit impulse.” Every time they get into trouble, they turn on the printing press. That causes commodity prices to rise and industrial activity and trade to pick up. It shows up in the GDP numbers, and then everybody gets all excited."
"Each time, we have to remember the rulers in Beijing are digging themselves deeper into the hole. They’ve got an economy now that they claim is worth $13 trillion of GDP, but it’s got $40 trillion of debt on it. That’s just bank debt! I’m not even talking about the other forms of debt, such as trade debt, bond debt, so on and so forth."
LARGE TIGER.
"China is getting clobbered by Trump’s trade war.
Recently, exports to the United States were down 23% from the prior year." maga, BABY
"Whether President Trump knows it or not, in the guise of pursuit of MAGA [Make America Great Again], he is shaking the Red Ponzi to the core, and I think it’s very fragile.
The whole global economy is really dependent on China piling even more debt onto the $40 trillion pile they already have. Trump’s trade war is basically an economic cruise missile barrage aimed right at that gargantuan pile of unsupportable debt." The damn smilies here don't work either. rofl, rofl,rofl
"Christine Lagarde, who is even crazier than was Draghi when it comes to money printing. And competing with Japan, which is basically drowning its economy with money printing.
The Bank of Japan’s balance sheet is 100% of GDP. It’s out of this world."
https://internationalman.com/article...cial-collapse/
"“Fed’s Clarida says economy in good place, does see inflation rising to 2%. Clarida says Fed’s repo operations could continue at least through April.”
April !
"An economy that’s in a good place does not need hundreds of billion of dollars in central bank balance sheet expansion and certainly not $70B, $80B, $90B, $100B of repo every day or whatever the run rate is on any given day.
Reality is the Fed is forced to do repo or overnight rates go out of control, and if that were to last for more than a few days the economy would suddenly not be in a “good place”. The house is not on fire as long as I keep dousing it with water."
‘We are going to have a horrible time,’ Jim Rogers tells Boom Bust as global debt skyrockets
Invest in popcorn. thumbsup thumbsup P.O.S.
"Former Treasury Secretary Lawrence Summers dismissed the optimism of former Federal Reserve Chairman Ben Bernanke, who recently said the central bank could likely fight off the next recession despite the low level of interest rates.
Bernanke’s speech was “a kind of last hurrah for the central bankers,”
https://www.bloomberg.com/news/artic...rnd=markets-vp
E-mails are forever + the 737.
https://www.zerohedge.com/markets/pl...management-faa
THAT is the story on Europe. Armstrong said that the collapse would start there.
The story in America is somewhat different. I need to post more and, excerpt less. The articles are just too good.
C.H. Smith;
"
The global economy and financial system are both running on the last toxic fumes of financialization and globalization.
For two generations, globalization and financialization have been the two engines of global growth and soaring assets. Globalization can mean many things, but its beating heart is the arbitraging of the labor of the powerless, and commodity, environmental and tax costs by the powerful to increase their profits and wealth.
In other words, globalization is the result of those at the top of the wealth-power pyramid shifting capital around the world to exploit lower costs of labor, commodities, environmental regulations and taxes.
This manifests as offshoring of jobs, the stripmining of forests, minerals, etc., the degradation of local ecosystems, the decline of tax revenues derived from capital and the explosive rise in stock market valuations as wages stagnate or decline.
A key element in globalization is the transfer of risk from the owners of capital to the workers and public resources. Examples of this transfer of risk abound: rather than pay workers benefits, corporations game part-time/full-time labor laws so workers' health insurance is paid by taxpayers (Medicaid). Corporations pay wages too low to survive so workers depend on public-sector assistance (food stamps, etc.)"
Yes, privatizing the gains and, socializing the losses. Did it never occur to them that the public purse might go bust?
"
Financialization is the exploitation of assets/income that were previously safe from predation by those with access to low-cost central bank credit. While definitions vary, mine is:
Financialization is the mass commoditization of debt collaterized by previously unsecuritized assets, a pyramiding of risk and speculation that is only possible in a massive expansion of low-cost credit and leverage for those at the top of the wealth-power pyramid: financiers, banks and corporations.
One example is the student loan "industry," which prior to financialization did not exist. A previously safe from predation asset/source of income--college degrees--has been securitized so that loans issued to students for largely worthless diplomas can be sold globally as "secure assets with guaranteed yields."
That the exploited class of students have little to no income and no guarantee of income doesn't matter. What matters is a previously unexploited asset can be turned into debt that can be sold at an immense profit."
"
And so student loan debt has skyrocketed from near-zero to $1.6 trillion in less than a generation. This rapacious, ruthless exploitation would not have been possible without the central bank (Federal Reserve) and federal government enabling and enforcing the supremacy of private capital and the predation of the higher-education cartel."
"The subprime mortgage loan bubble was another example of financialization: a previously inaccessible asset/income--the earnings of households with poor credit ratings--was suddenly available for exploitation, and guaranteed-to-default subprime mortgages were packaged with lower-risk mortgages and sold globally as "secure assets with guaranteed yields."
"Alas, all good predations end when the herd of prey has been dragged to the ground and consumed. All the fruit of financialization and globalization have been plucked by the powerful, and now both the engines of "growth" are sputtering."
"The prey always seem limitless to the predators, but this illusion expires when suddenly there is no longer enough for the ravenous pack of financial predators. At that point, the predators turn on each other. That is the narrative that will come to the fore in 2020 and play out in the decade ahead."
http://charleshughsmith.blogspot.com...ecline-of.html
David Stockman;
"The trade chaos that Trump’s creating is probably the catalyst that will bring down the whole house of cards.
At end of the day, it’s about the Red Ponzi. The world economy would be not nearly as good as it looks had the Chinese not been borrowing like there’s no tomorrow and building regardless of whether its efficient or profitable.
This has kept the global economy inching forward on a totally artificial basis. You could track it; some people call it the “China credit impulse.” Every time they get into trouble, they turn on the printing press. That causes commodity prices to rise and industrial activity and trade to pick up. It shows up in the GDP numbers, and then everybody gets all excited."
"Each time, we have to remember the rulers in Beijing are digging themselves deeper into the hole. They’ve got an economy now that they claim is worth $13 trillion of GDP, but it’s got $40 trillion of debt on it. That’s just bank debt! I’m not even talking about the other forms of debt, such as trade debt, bond debt, so on and so forth."
LARGE TIGER.
"China is getting clobbered by Trump’s trade war.
Recently, exports to the United States were down 23% from the prior year." maga, BABY
"Whether President Trump knows it or not, in the guise of pursuit of MAGA [Make America Great Again], he is shaking the Red Ponzi to the core, and I think it’s very fragile.
The whole global economy is really dependent on China piling even more debt onto the $40 trillion pile they already have. Trump’s trade war is basically an economic cruise missile barrage aimed right at that gargantuan pile of unsupportable debt." The damn smilies here don't work either. rofl, rofl,rofl
"Christine Lagarde, who is even crazier than was Draghi when it comes to money printing. And competing with Japan, which is basically drowning its economy with money printing.
The Bank of Japan’s balance sheet is 100% of GDP. It’s out of this world."
https://internationalman.com/article...cial-collapse/
"“Fed’s Clarida says economy in good place, does see inflation rising to 2%. Clarida says Fed’s repo operations could continue at least through April.”
April !
"An economy that’s in a good place does not need hundreds of billion of dollars in central bank balance sheet expansion and certainly not $70B, $80B, $90B, $100B of repo every day or whatever the run rate is on any given day.
Reality is the Fed is forced to do repo or overnight rates go out of control, and if that were to last for more than a few days the economy would suddenly not be in a “good place”. The house is not on fire as long as I keep dousing it with water."
‘We are going to have a horrible time,’ Jim Rogers tells Boom Bust as global debt skyrockets
Invest in popcorn. thumbsup thumbsup P.O.S.
"Former Treasury Secretary Lawrence Summers dismissed the optimism of former Federal Reserve Chairman Ben Bernanke, who recently said the central bank could likely fight off the next recession despite the low level of interest rates.
Bernanke’s speech was “a kind of last hurrah for the central bankers,”
https://www.bloomberg.com/news/artic...rnd=markets-vp
E-mails are forever + the 737.
https://www.zerohedge.com/markets/pl...management-faa
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