Economic pressures

[Danny B]

Running out of funding for welfare and warfare

This is an official report from the G-30, "Central banks were first established in the 17th century, with the primary purpose of providing war
finance to governments" Page 17

http://group30.org/images/uploads/publications/G30_FundamentalsCentralBanking.pdf

All government is fascist and communist at the same time. It does redistribution to both the rich and the poor in whatever portions it deems necessary. Most governments lean towards socialism to get popular approval and keep the main body of natives from rebelling. Pure socialism demands a command economy where GOV is dictating everything. This has never worked but GOV continues to pull the knobs and twist the levers hoping to make the economy run smoothly without any highs and lows.

The crash in wages brought on by our low-wage competitors has brought quite a LOW to the West. The CBs have tried to smooth out the lows BUT, they are failing. A quick shot of NIRP,,,, and then ZIRP was supposed to get the economy back on track. It was a lost cause from the beginning but, they gave it a try. Massive job losses weren't a complete surprise.

https://www.youtube.com/watch?v=J4_BrgpR8r8

The CBs blew an enormous credit bubble and maintained that they had permanently banished the business cycle. They had to be pretty stupid to ignore wages. https://www.armstrongeconomics.com/w...-a-bitter-end/Well, it should.
The 11 Bone-Chilling Things I Gleaned from Yellen’s Chart | Wolf Street

"the entire trans-Atlantic banking and financial system is drowning in worthless debt and engaging in the same gambling games that led to the 2008 blowout. And the remedies being peddled by the ECB and other central banks are accelerating the blowout." https://larouchepac.com/20160825/deu...interest-rates

Jim Rogers; http://www.zerohedge.com/news/2016-0...orld-comes-end
Tyler Durden; http://www.zerohedge.com/news/2016-0...lted-rebellionhttps://www.armstrongeconomics.com/w...ey-laundering/

[Danny B]

If money is electronic, the PTB will have control of all of it.

There are quite a few people who have more money than they could possibly spend. Harold Hamm offers $975 mln divorce check; ex-wife rejects it | Reuters
They just like to see it grow. If you can't spend it, you have to leave it in a bank. Banks and GOV have lots of plans for your money. If you can't actually spend it, how will you know if it is there or not. Since currency now is just information, it can be endlessly duplicated.
One World Currency introduced by The Cartel - Settlement Coin | Zero Hedge

First, they need to get rid of tangible currency.
Harvard Professor Demands Ban On $20, $50, $100 Bills | Zero Hedge
The CBs have assured the crash; http://www.24hgold.com/english/news-...x+Capital&mk=1
Equities are at an all-time high but, nobody is funding their pensions plans; https://www.rt.com/usa/357407-corpor...rker-pensions/
Well, they wanted a crash to force one-world GOV on us but, I don't think that it is going to work out as planned.

[Danny B]

The runup to the default cascade




It didn't work so, do lots more of it.
http://data.whicdn.com/images/22508554/superthumb.png

YES, we need higher prices while our wages are falling.
Corporate; " If you can believe it, corporate debt has approximately doubled since the last financial crisis. In other words, since the last recession we have essentially matched the total amount of corporate debt that we accumulated from the beginning of the country up to 2009."
America The Debt Pig: We Are A ?Buy Now, Pay Later? Society ? And ?Pay Later? Is Rapidly Approaching

"Abstract: Conflation of real capital with finance capital is at the heart of current misunderstandings of economic crisis and recession. " Finance is Not the Economy - The Unz ReviewThe Right Lessons from Obamacare’s Meltdown - The Unz Review
We don't need no stinking legitimacy.

We have real capital and finance capital. Our money is a debt note. The more debts we have the richer we are. There is a dawning recognition that automation will wipe out the job market even in low-wage States. India To Face Massive Unemployment, Social Unrest Amid Demographic Boom Productivity is shutting down for lack of purchasing power. The demographic crash brings ever-more imbalance between the number of producers and non-producers.
Every State would like to see it's people fed. Numerous States would like to see their people employed. The PTB are in panic mode because monetary policy is losing effectiveness. Downward fiscal policy like austerity just shrinks the economy even more.
With ZIRP, they can print debt-free money for the moment to keep everybody eating. They have to institutionalize debt-free money for the long-term or face mass rebellion. BUT, debt free money destabilizes everything else.

Socialism raised the birth rate particularly for non-producers. This is in line with Keynesian economics that demand an ever-growing consumption and credit edifice. We have reached peak credit and are debt saturated. The ratio of non-producers grows ever higher. GOV is trying to beat back the default cascade to keep the masses from starving and rebelling.
FED GOV has a lot of warm blooded non-performing assets that are costing a lot of money. Unfunded liabilities are reckoned at $212 trillion.
Apparently GOV prefers helicopter money to open rebellion. We shall see.

[Danny B]

Germans "Lose Faith In Banks", Rush To Buy Safes | Zero Hedge

https://www.armstrongeconomics.com/world-news/sovereign-debt-crisis/hoarding-cash-prelude-to-the-crash-burn/

https://www.rt.com/business/357510-b...uclear-winter/

https://www.rt.com/business/357516-canada-economy-oil-property/

"By 1991, the first scandal erupted as the commodity boys took over Wall Street and brought their manipulations to the world of finance." https://www.armstrongeconomics.com/w...s-at-it-again/

[Danny B]

Wages down so, manufacturing and shipping follow

The assets of the lower loop are backed by labor. The assets of the upper loop are backed by nothing. These two were mixed together and it poisoned everything. Wages crashed in the high-wage States, later followed by employment in low-wages States. The 99% just don't have the income necessary to keep the consumer economy rolling along. China wanted to switch over to an internal consumption economy. Can't happen with LOW wages. Manufacturing has peaked in China and is falling.
What Rail Freight Volume just Said about China | Wolf Street

With manufacturing falling, shipping is falling. Shippers operate at a loss and the 7th largest just went bankrupt. Goods on these ships may be locked up for 2--3 months.
"if, as expected, the company's ships remain "frozen" and inaccessible for weeks if not months, the impact on global supply chains will be devastating, potentially resulting in a cascading waterfall effect, whose impact on global economies could be severe as a result of the worldwide logistics chaos. "
Global Supply Chains Paralyzed After World's 7th Largest Container Shipper Files Bankruptcy, Assets Frozen | Zero Hedge

What happened to shipping rates is now happening to food commodity prices and farm income. USDA Sees 2016 Farm Income Crashing As Farmer Leverage Spikes to 34 Year HighsDebt, Deficits & Economic Warnings | Zero Hedge

So,,, currency wars lead to trade wars. Then, everything slows down; Trade wars: Why the central pillar of global order is in danger of collapse as TTIP disintegrates

A German bank was the first to charge negative interest to it's retail savers,,,prompting everybody to go out and buy a safe. Now, a German bank has refused delivery of physical gold as required in it's contract. http://www.zerohedge.com/news/2016-0...ld-upon-demand

India has a huge unemployment problem. Brazil is now making news for the same thing; http://www.zerohedge.com/print/571163

The bankers want the right to produce unlimited amounts of currency BUT, they want that currency to maintain it's value. The Marxists want unlimited currency to support all the non-producers BUT, they want a huge cadre of motivated producers that will bear the burden of hard work.The bankers buy GOV bonds with the free money that GOV gave them. GOV uses this money for consumption rather than investment. It always eventually defaults.

[Danny B]

Credit expansion and the NWO

Various central bankers are printing with wild abandon but, "Of the main central banks the Fed has been largely neutralised even if they manage to add a fresh hike in September or December" Stunning Chart Shows That Central Bank Liquidity Is Now Driving All Asset Prices
Japan is up to the stratosphere;
BUT,

http://www.acting-man.com/blog/media/2016/08/4-GDP-per-decade.png

How Does It All End?

Construction spending; The Last 7 Times (Since 1970) This Happened, The US Economy Entered Recession | Zero HedgeThe Central Banks Are Now Ready To Launch Their 'Brave New World' | Zero Hedge

"39."The Trilateral Commission is intended to be the vehicle for multinational consolidation of the commercial and banking interests by seizing control of the political government of the United States."
"45."The most powerful clique in these (CFR) groups have one objective in common: they want to bring about the surrender of the sovereignty and the national independence of the U.S. "
"119."The environmental crisis is the cornerstone for the New World Order" Maurice strong ( U.N. environmental leader ) was quoted as saying, " Isn't the only hope for the planet that the industrialized civilizations collapse? Isn't it our responsibility to bring that about?"
"125."The ultimate aim of the CFR (Council on Foreign Relations) is to create a one-world socialist system"

http://twoday.net/static/omega/files/quotes_from_people_who_consider_us_subjects.htm

So, the crash was planned to bring in world GOV.
"We are not going to achieve a New World Order without paying for it in blood, as well as in words and money."---Arthur Schlesinger, Jr.,

On the "grand chessboard", Pox Americana has crashed. It won't be the West that dictates the new world order.

[Danny B]

Never enough workers to support the debt load

Greenspan; "The problem is that we cannot extract from our statistical database what is true money conceptually, either in the transactions mode or the store-of-value mode."
This is illustrated by looking the the levels of Exter's Pyramid; http://www.goldcore.com/ie/wp-conten...er_pyramid.png
The pyramid starts with gold, then currency, then near-money, then near, near money,,,, At the top is unfunded

[Danny B]

Nobody wants to be aboard the Death Star of debt



ALL the Central Bankers are buying up assets. Investors are fleeing. The results are AMAZING.

" if all this weren't enough, now they are buying the entire stock market with money provided by the Federal Reserve's quantitative easing policies"
"Or as Dark Bid's Daniel Drew previously noted, The Stock Market Is Disappearing In One Giant Leveraged Buyout "
"According to Lazonick, the American economy has transformed from a system of value creation to one of value extraction"
Fewest Stocks Traded In 32 Years - The Market Is Disappearing In One Giant Leveraged Buyout | Zero Hedge

This article is hard to get your head around but, you better understand it; We?re rapidly approaching that zero point of debt creation - Business Insider
The banks promoted liar-loans for cars. It worked for a while but,

There is a flight from all the markets and the CBs are trying to make up the difference.
Ms. Fitts; https://www.youtube.com/watch?v=1dAjAhy7uHo
Jim Willie; https://www.youtube.com/watch?v=0p8JVMbT5ys
The indications and prognosis is for the default cascade to start in the first quarter of 2017.

[Danny B]

Producers down, Parasites up


OK, so, what next?
So, what happens to all those junk-bonds when China blows?

The Hanjin disaster is spreading FAST,
When money is debt, it is FAR easier to stack it up higher and higher; ECB Throws Twelfth Zero at Inflation - Bloomberg

The CBs printed $zillions in debt money to control all markets. It is speculated that they plan to crash all markets to create chaos and introduce one-world control. The CBs have now lost control. Nigel Farage Warns "The Establishment Is Losing Control Over The People" | Zero Hedge
There is no going-back from a credit collapse. "They" may very well plan to regain control after the chaos BUT, they can't do it with confidence. They have to do it with force. Force is very expensive.

Manufacturing is the prime value-added industry. Manufacturing ran off to low wage markets. Pox Americana tried to forestall this by throwing open the southern border and forcing domestic wages down.
As a remedy for falling wages, GOV hired TONS of people to shuffle papers and intimidate people in airports. BUT ,GOV is a parasite, NOT a producer. Here is a graph that clearly shows the progression.

http://www.cnsnews.com/s3/files/styles/content_100p/s3/gov-manufacturing-chart-august-2016.png?itok=K_3RyF8O

SO, the ranks of producers fall and the ranks of parasites grows. It costs a lot of money to pay all these people and GOV runs a deficit of more than $ 1 trillion a year. 51% of Americans rely on a check from GOV. GOV writes 80 million checks a month. Americans are saddled with 80,000 GOV agencies. The saddle isn't that hard if you are receiving a check from GOV. These 80k agencies all charge $tons for permits and approvals.
Government Workers Now Outnumber Manufacturing Workers by 9,932,000

"government employed 17,989,000."
"In August 2016, about 125.89 million people were employed on a full-time basis. "
One out of every eleven people in the beltway are lawyers. There are millions of pages of laws in the federal register. How many law firms exist just to deal with GOV regulations? GOV uses (assumed) regulatory powers to demand generous payment to GOV workers. In the case of sovereign default, GOV workers will find that being a parasite is more risky than being a producer.
U.S. GOV spends about 24% of the GDP. What happens when it can no longer do that?

The restaurant business has been shrinking for years due to a loss of discretionary spending. Just the same, GOV reports;

[Danny B]

Honest money and crooked governments

Benjamin Franklin; "We have no poor houses in the Colonies; and if we had some, there would be nobody to put in them, since there is, in the Colonies, not a single unemployed person, neither beggars nor tramps."

Thanks To Free Money Issued By The Nation
His friends could not believe their ears, and even less understand this fact, since when the English poor houses and jails became too cluttered"
"That is simple. In the Colonies, we issue our own paper money. It is called 'Colonial Scrip.' We issue it in proper proportion to make the goods and pass easily from the producers to the consumers. In this manner, creating ourselves our own paper money, we control its purchasing power and we have no interest to pay to no one."
"The first law was passed in 1751, and then completed by a more restrictive law in 1763. Franklin reported that one year after the implementation of this prohibition on Colonial money, the streets of the Colonies were filled with unemployment and beggars, just like in England, because there was not enough money to pay for the goods and work. The circulating medium of exchange had been reduced by half."
America Created It's Own Money In 1750 How Benjamin Franklin Made New England Prosperous

Simply put, our colonial miracle came to an abrupt end because the European bankers were aghast at the idea that we created money just for productive projects and NOT to generate interest.

https://21stcenturycicero.wordpress.com/fraud/how-benjamin-franklin-made-new-england-prosperous/

https://forum.codoh.com/viewtopic.php?t=8347

Germany created high employment by printing interest-free GOV money for WORKS,,,, The German miracle. And what did it get them? Churchill;"WW II could have been avoided but, the bankers wanted it".
Ben Franklin told the Europeans that the colonies printed interest-free money for WORKS. That immediately got us a war.

EDIT: We can't forget the economic miracle in Lybia that the bankers killed; Libya: From Africa?s Richest State Under Gaddafi, to Failed State After NATO Intervention | Global Research - Centre for Research on Globalization

The problem is NOT interest-free money. The problem is NOT interest-free money for productive work. The problem is huge amounts of money created for speculation by the parasites who have no history or intention of working.
"We issue it in proper proportion to make the goods" YES, purchasing power equivalent to GDP.
The Marxists and the Fascists, being strangers to hard work, have no interest in a standard of living that is commensurate with the effort they expend to produce. "Money" must be created FAR in excess of actual productivity for them to survive. They survive quite handsomely at that.
The gold standard is universally hated by those who shun actual productive work. BUT by negating the gold standard, they have removed ALL restrictions on currency creation.
Jacob Rothschild referred to the failure of the "experiment"
The PTB inflated the money supply to supply a high standard of living for as many people as possible. As usual, they got carried away.

Confidence has been lost and people are deserting the markets and banks. They are all hollowed out. The non-producers certainly don't want honest markets OR, those markets would demand honest money and honest labor.

Gold is on it's way back into prominence.
The Coming Gold Super-Spike - The Daily Reckoning

https://www.armstrongeconomics.com/future-forecasts/the-postponement-sling-shot-move

"The end game is really the collapse of the monetary system and hopefully that coincides with a collapse in government power. That is where gold will make the transition from the old to the new.

Therefore, what we are ultimately looking for from gold is the hedge against government to make that transition, which historically always happens. "
" https://www.armstrongeconomics.com/m...-really-worth/Moooooo !
"paper money will be swapped. It will not become toilet paper for then you have all out revolution and the heads of officials typically are lost during such events adorning the spikes for display."
As I've mentioned several times, paper currency will continue to be in demand.

[Danny B]

Interest drain, wealth trasnsfer and the inevitable crash

"As of March, S&P 500 companies had bought back more than $2 trillion in stock over the last five years, making buybacks the biggest source of demand for stocks since 2009, HSBC estimated." Investors don't want them.This Labor Day, let’s acknowledge why our job-creation machine is broken - MarketWatch

SO, what happens when you fire all the workers to squeeze out the last penny in profits? ; WTF Chart Of The Day: US Factory Orders Tumble For Longest Streak In History | Zero Hedge
I already posted that stock trading is at it's lowest level in 32 years. Maybe the corporate raiders weren't so smart after all.

Our central bank is a private corporation owned by private bankers. The bankers choose the head of the FED. The FED head is generally a jew. Paul Volker was an exception to that rule. Talmud תלמוד: Is Paul Volcker Jewish?Sorry Losers! | Peak Prosperity
We ALL get the shaft thanks to the FED head.

NO KIDDING, the brain dead have figured out that they weren't as smart as they thought. Shoot, let's just raise interest rates. Don't even give a thought to the ?$500 trillion in interest rate swaps that will blow all to hell.

"They" lowered rates. The banks wrote swaps to ensure that they could never raise rates again. ZIRP has gone on FAR too long but, the FED is locked in by the swaps.
Well, they admitted it and now, I feel OK about the perpetual screwing.
There is one silver lining to all the dark clouds; https://www.armstrongeconomics.com/a...acing-lawyers/https://www.armstrongeconomics.com/w...spend-on-food/

"The City of Chicago recently reported an alarming 50% increase in interest expense from 2014 to 2015. Last year, the city spent over $860 million in interest, before spending a dime on any public services."

http://www.chicagonow.com/dennis-byrnes-barbershop/2016/09/chicagos-pension-debt-still-is-a-sinkhole/

This money withdrawn from the productive economy in the form of taxes just slows down the lower-loop of the economy that much more. The situation always has the same ending.

https://www.armstrongeconomics.com/world-news/sovereign-debt-crisis/its-time-to-turn-out-the-lights-in-illinois-sell-all-government-debt-there-before-its-too-late/

" Fitch has decided to keep the BBB-minus rating on the city's $9.2 billion in outstanding general obligation bonds. That means that it is only one step above junk bonds." " the two other ratings services--Moody's and Standard and Poor's have kept the negative outlook on Chicago's general obligation bonds."

[Danny B]

Automatic Earth,,, blaming the FED

Automatic Earth has an excellent article that runs rather long but, is VERY informative. The economy is now subject to negative feedback loops; https://www.theautomaticearth.com/20...war-on-cash-1/
A chart of earnings vs price of the S&P 500. The Most Irrational Chart In the World - Take a Look - munKNEE dot.com
That's what happens when the CB buys all the stocks.

"even Yellen admitted she has no idea what will happen in just the next 3 years " "an article which set the stage for the pivot to the US issuance of much more debt, because apparently $9 trillion in new debt under Obama is not considered enough "fiscal stimulus."
ECB Board Member Lashes Out At Central Banking: Ignore "Mathematical Models", Focus On Reality | Zero Hedge

More fallout from Hanjin; Shops set for Christmas price hikes as millions of shipments stranded at sea | The Independent

U.S. Federal GOV recently announced that it was going to need a LOT more money for it's operations. The House of Representatives is responsible for originating spending bills. In a general sense, Congress notifies the treasury of the projected shortfall. The Treasury notifies the FED that it will be sending over more bonds to be monetized for cash. Congress gets the cash and the FED gets the blame. https://www.armstrongeconomics.com/q...deral-reserve/
Congress throws sticks and stones at the FED and threatens to audit it. Why hasn't this happened?

https://www.armstrongeconomics.com/qa/fed-v-congress-v-bankers/

Oil is expected to go lower, thereby killing even more banks and oil companies. Then it is projected to go WAY up and kill the rest of the economy. http://www.zerohedge.com/news/2016-0...ng-moon-shot:D
Deutsche bank is always in some kind of trouble; http://www.zerohedge.com/news/2016-0...s-gold-derivat

[Danny B]

More spend, less thrift | The Economist
Globalization sends the jobs and capital to the most efficient low wage producer. EVERYBODY else is left out.

Because of global-capital flows, the high-wage producers are simply left OUT of the capital flows for manufacturing. THE ANTI-CINDERELLA MAN (PART ONE) – The Burning Platform
In the short term, this benefits the low-wage manufacturer. In the long term, it impoverishes all of it's customers. THAT economy falls into a debt trap because it's previous debt load becomes unsustainable.

No kidding,,, new ideas

It's never worked so, Draghi is going to keep doing it.
They are too poor to afford torches and pitchforks.

The Marxists gambled that they could raise everybody's standard of living by pumping in gobs of DEBT money. This may have raised the standard of living (temporarily) but, it didn't create an increase in sustainable wealth creation. NOW, the bills are coming due and the CBs are pumping in $200 billion a month to service old debt.
Here is a chart of their monetary Viagra; http://www.zerohedge.com/sites/defau...d%20more_0.jpg
How Central Banks Are LBOing The World In One Stunning Chart | Zero Hedge

[Danny B]

The Matrix Exposed | First Rebuttal

The CORPORATION was not making as much profit as it desired. It turned toregulatory capture to get the required laws to force global-wage-arbitration (trade agreements). As the CORPORATION took an increasing percentage of the profits from trade, labor's share of profit continued to shrink. The main body of the population was forced to subsist on increased debt and welfare.
Every Trade agreement forces wages lower and welfare higher. It forces DEBT / CREDIT higher. We have now reached debt-saturation in the consuming public. This has resulted in the increasing debt load being transferred to the State. Armstrong has predicted a crash in public debt.
The State, through regulatory capture has ensured it's own death.

The CORPORATION is calling for the State to drop money from helicopters to make up for the purchasing shortfall in the consuming population. The CORPORATION has diminished it's profits by starving the wage earner. The wage earner has responded by refusing to reproduce new little workers/consumers. This further reduces prospects for future consumption.

The bankers INSIST that all money carry an interest burden. They have destroyed every economy that tried to produce interest-free money. BUT, with the advent of birth control, the have locked-in a shrinkage of future profits. A crash in public debt and welfare will only make it worse. At the same time, the burden from the demographic crash will increase demands on the State.

Decades of price-deflation brought by increasing automation were siphoned off and handed out as stock dividends. Our shrinking wages were insufficient to maintain our standard of living in the face of price inflation. China has exported massive deflation in wages & prices. This has upset the apple cart by transferring earning power to the East.
The Chinese flourished by being the low-wage manufacturer. The fiscal consequences to their markets are coming back to haunt them.
Wall street flourished by driving down wages with global wage arbitrage. The fiscal consequences are coming back to haunt them.

The money-masters have brought about world poverty, now approaching world bankruptcy.

[Danny B]

https://srsroccoreport.com/this-one-chart-should-drive-investors-into-buying-gold-silver/

https://www.rt.com/op-edge/358414-oil-prices-russia-saudi-arabia/

The people became debt-saturated. The, the government became debt saturated. Congress held a gun to the FED-head and said, keep printing.