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murder systems that backed up the money systems. Moreover, that failure then enables the ways that natural selection pressures drove artificial selection systems to become most socially successful by becoming as dishonest as possible"
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5 again
Socialism demands that GOV increasingly pull money from the future to finance consumption TODAY. Automation has much the same effect. The honest, displaced worker has the same needs as the worthless sluggard who has never worked a day in her life. There really is no formula from differentiating between the two. We continue to pull-ever-more money from the future.Comment
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property owners deprived banks of necessary fundsdebt money for consumption just doesn't work when it comes time for repayment. Eventually, the defaults mount up. Since the debt can NEVER be repaid, it is debt-free in a manner of speaking. There is speculation that Trump will eventually be forced to by pass the FED. That should be exciting.
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Still sliding downhill
"Long USD Will Be the Biggest Spoof Ever: And once the world has loaded up on dollars, there will be nothing left to go to when the Fed aggressively debases our currency to increase inflation and decrease our debt burden."
How will they load up on dollars if Congress won't raise the debt ceiling?
The article is about politics driving the markets and NOT the economy.
While the World Binges on USD, Gold Awaits the Purge | Zero Hedge
Excellent Videos on Money Systems Marijuana Party ? Parti Marijuana | Excellent Videos on Money Systems
For these articles, just take a look at the first couple of lines.
Just so you know: Total U.S. debt and other obligations now total $69 trillion
A Mountain of Debt: Is China's Economy Going To Crash? | The National Interest
Chart of the debt ceiling vs the price of gold; https://www.goldbroker.com/media/ima...t-16.40.00.png
Most of the article is BS, https://www.goldbroker.com/news/the-...ilver-669-1095Comment
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Here is a link to a previous post about States going bankrupt. Is that the plan for all of us? It would demand a police state to hold down the revolutions.
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maintaining the power structure has gotten very costly
The FED has just one "product", and that is DEBT. Too many people are maxed-out on credit and can't spend any more. NO PROBLEM. "They" will just erase the bad stuff on their credit report so that they can afford to spend LOTS more. Video; The Elite Are Prepped And Ready For The Economic Crisis | Zero Hedge
" The fragmentation of political consensus (i.e. the consent of the citizenry) is presented by the Powers That Be and their media servants as being a disaster. The implicit fear is real enough: how can we rule the entire nation-empire if it fragments?
As I noted the other day, fragmentation terrifies the Establishment of racketeers and insiders, for when the centrally-enforced rentier skims and scams collapse, those who own and control the rentier skims, scams and rackets will lose the source of their wealth and power. "
" In a top-down, centralized hierarchy of political power (i.e. the central state), the pharmaceutical company only needs to lobby a few authorities in the central state to impose its rentier skim/scam on the entire nation.
Lobbying/bribing a relative handful of federal officials and elected representatives is remarkably inexpensive: a financier or corporation only needs to focus on these few key players, and smoothing the PR pathway via a highly concentrated corporate media.
A mere $5 million spent in the right places guarantees $100 million in future profits-- profits earned not from open competition in a transparent market, but profits plundered as rentier skims"
"If we look at the source of the 2008 Global Financial Meltdown, we find that the centralization of capital and power were the primary enablers of the meltdown. If the financial system were composed of 1,200 local banks, each of which had to comply with local and state regulations instead of five behemoth banks that had the capital and klout to buy Washington D.C.'s approval of their leverage and shady dealings"
" If we want a resilient, flexible, low-cost system, we must replace the centralized system of enforced consent and artificial consensus with a fragmented, transparent one of smaller scaled, competing organizations of governance, capital and enterprise.
The intrinsic limits of a corrupt, inefficient and rigged-to-serve-the-few-at -the-expense- of-the-many centralized pyramid of power and wealth is why centralization is the problem rather than the solution:"
Good article, Of Two Minds - Why Fragmentation Is the Solution, Not the Problem
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It's really hard to tell if the monetary mavens are incredibly stupid or incredibly blind.
"The implication from the market's reaction is that at current levels, financial conditions are poised to make a substantial positive contribution to growth in 2017, from a starting point of essentially full employment, inflation close to the target"
The money supply has been growing at about 9% per year and price inflation is about 10% per year. Unemployment is at about 23%.
"This Is Not The Reaction The Fed Wanted": Goldman Warns Yellen Has Lost Control Of The Market | Zero Hedge
"In other words, whether on purpose or otherwise, according to Goldman, the Fed, which now wants to tighten financial conditions (i.e., see asset prices lower) not only achieved the opposite, but has now lost control of the market."
In the battle to save the rentier class, there is no lie too big or too obvious.
In the battle to save the State, there is no tax too big and no benefit cut too big. The most important factor is to save the bureaucratic herd.
" In 2014 a new Federal law made it possible for pension funds to cut benefits for their recipients.
[I]Are Collapsing Pensions "About To Bring Hell To America"? | Zero Hedge
Post WW II, America became a high-wage, high-cost State. We are painfully transitioning to a low-wage, low cost State. The low wages come first and later the low costs will arrive. There will be an explosion of defaults and bankruptcies before that happens. We have 10% price inflation with continual wage deflation. The whole economy is shrinking in spite of all the money printing. The printing was directed at the top loop only. The younger cohort of the lower loop is sliding down the fastest because they can't move into employment.
We also see in Japan that the younger cohort refuse to form families so there are fewer and fewer people in the consuming class. Japan has the highest number of robots per capita and the Japanese salaryman has to work 16 hours a day to keep his place. NO confidence = no children.
The bond market pulls the future earnings of the (growing) working class to the present day. What happens to the solvency of the bond market when the working class is suffering wage deflation and high unemployment? The finance industry may delude itself into believing that it produces wealth. It produces parasitic drain, nothing else.
There have been proposals for a financial-transaction tax (Tobin Tax) to pull a bit of money from the finance industry but, they block it. Historically, it has been ANATHEMA to tax a man's labor. Currently, it is fine to tax a man's labor. Currently it is NOT fine to tax the profits of the speculator who produces NOTHING.
Labor and wages are falling way behind. What does this eventually imply for the bond market?
Get Ready for a “Credit Implosion” | Casey Research
The finance industry is going to (delude) itself right off a cliff.
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Report from the gold-bugs and pessimists
Repost Get Ready for a “Credit Implosion” | Casey ResearchOur wages haven't gotten nominally lower. They just haven't grown as fast as the FED created price inflation.
"Regular readers now understand the inflation/GDP charade . If you lie about inflation, then for every percentage point you understate the rate of inflation you overstate GDP, since all GDP calculations must be fully deflated by the current inflation rate. Our governments grossly understate the real rate of inflation. This means they grossly exaggerate real GDP. Our crippled economies are not growing, they are shrinking. "
Shadowstats says that we are shrinking by about 7%.
https://www.armstrongeconomics.com/w...-he-will-fail/
Obummer ran the national cash register down close to zero. Trump should have reflated it immediately. BUT, Trump has a talent for getting his opponents to fight each other. He can't submit a budget until the debt ceiling is raised. He can post his budget and wait for congress to raise the limits. They will fight endlessly. BUT, time grows short. He can play innocent and let congress take the heat. The more heat, the more they will be paralysed.
Armstrong writes that the crash and burn will be limited to GOV debt. How can he write that? States, counties, cities and banks hold huge amounts of GOV debt. No amount of stability,,,, no amount of change will bring back the lost jobs. Even with 22 million working in GOV jobs, unemployment is at 23%. Wiping out GOV employment will drive down consumption that much more. The stock markets are NOT going to do well when the consumer can't consume.Comment
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Latest from Jim Willie
I wrote this to Jim Willie;
Long ago, you wrote about the scheiss dollar.
Martin Armstrong recently wrote about a new american currency
Long ago,You wrote about gold trade settlement
Hugo Salinas Price recently wrote about gold trade settlement
Congratulations
His reply;
next is Germany flipping East
next is Saudi Kingdom collapsing
Germany is guarantor for TONS of European bonds. Germany is rich and fat right now but, a lot of their "assets" are foreign debt. Jim thinks that they will pivot to Russia. It would make good sense.
Saudi is run by inbred wahabbi idiots. They foolishly got into war with Yemen and they aren't doing very well. They are obliquely attacking Iran. Iran is rich and NOT run by Arabs,,, it's run by Persians. Saudi recently offered up for sale their national oil company,,, ARAMCO. The tenders seem to be only 10% of what was expected. It has long been speculated that they are running out of oil. Many of their wells have been damaged from pumping in too much salt water. Some wells output 30% seawater.
Idiots shouldn't gamble.
Trump did NOT block muslims from Saudi even though it was all Saudis who attacked the WTC towers.
Rense; Qataris Own More Of London Than The Queen
As Saudi disintegrates, their money will flow into American banks.
Even the Chinese are sending money here because they trust the American banks more than they trust the Chinese government.Comment
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No mention of congress getting desperate?
You would think that since Republicans control the House that this should be easy, but the truth is that there are a lot of conservative Republicans that are not inclined to agree to a debt ceiling increase without substantial accompanying budget cuts.
The Dems indicate that they will raise the debt ceiling if there are no stipulations.
"If they raise the debt ceiling and continue adding more than a trillion dollars a year to the national debt, they will lose all credibility with conservative voters on fiscal issues.
But if they try to force the federal government to start living within its means that is going to severely harm the economy in the short-term." and long termIt's called, "gridlock"
The Debt Ceiling Deadline Has Passed, And Now The Biggest Test Of Donald Trump?s Presidency Begins?Comment
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Credit Bubble Bulletin : Weekly Commentary: Another Missed OpportunityGross leverage ratio for US companies http://d1w116sruyx1mf.cloudfront.net...is-soaring.png
Cash to debt ratio; http://d1w116sruyx1mf.cloudfront.net...ash-levels.png
A Corporate Debt Crisis Is Underway… And Nobody Cares | Casey Research
" A week ago, bullish sentiment among investment advisors soared to the highest level in 30 years"
"My impression is that the S&P 500 is likely to surrender its entire gain since 2014 merely as the opening loss of the coming cyclical decline. "
Credit Bubble Bulletin : Weekly Commentary: Another Missed Opportunity
"Rewarding failure encourages more failure. There were over 8,000 banks in the US and it was only 10 or 20 who almost destroyed the world. They should have paid the price for their criminality and recklessness. Their executives should have gone to jail. Not one did."
"Eisman, the man of the people, said nothing about how real median household income is lower today than it was at the height of the crisis, while Wall Street bonus pools are at record highs. He said nothing about senior citizens who used to count on 5% money market returns to scrape by now getting .25% because the Fed used ZIRP to save the Wall Street banks."
(He) "completely ignores the fact the Fed bought $3.6 trillion of their toxic debt at one hundred cents on the dollar, and the Obama administration took on $10 trillion of national debt to give the economy the appearance of recovery " "Even though stock valuations are at highs only seen in 1929, 2000, and 2007, Eisman sees no stock market bubble."
Short and to the point; https://www.peakprosperity.com/blog/107415/banks-evilComment
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A Bad Week and Getting Badder Bigly Fast - KUNSTLER
Michael Hudson on how you got where you are; How Bankers Became the Top Exploiters of the Economy
Armstrong always has a good historical perspective.
"Meanwhile in Greece, people are not taking property that is left to them because they cannot pay the inheritance taxes to accept the property. This was one of the final stages in the collapse of Rome. People just walked away from their property because of taxes."
"The Left is fighting so hard to keep dominating everyone else, that it is hard not to see how society in starting to implode in the West. In Norway, the hunt for taxes has been so bad, they have now even been raising property taxes to include a dog house in the back yard."
PRIVATE EQUITY
There are hundreds of trillions of currency units (mostly disguised as debt) that are sloshing around the economy looking to, NOT get vaporized. The productive economy shrinks and the "money" has no where to go to get a return. Return was mostly killed off by ZIRP and now, investors are just looking for a safe haven. Corporations are hard at work trying to make safe havens,,,, unsafe.
" It also said it had carved out what analysts estimate are about $500 million worth of assets into a separate subsidiary, out of bondholders' reach, diluting lender collateral.
Meanwhile, there were reports that competitor Hudson's Bay Co. wants to buy the company, but leave the debt behind. "
"Retailers backed by private equity dominate the list of most-distressed U.S. store operators. "
"Take J. Crew, which finagled a way to insulate valuable intellectual property (think: trademarks, web domains, etc.) from creditors by transferring the assets into a separate subsidiary. "
"Citigroup analyst Jenna Giannelli pointed out PE firms haven't taken a lot of money out of these retailers yet and are doing everything they can to stave off bankruptcy in order to protect their equity. She said bond investors should be concerned about weak bond covenants giving the companies "flexibility to move assets out, to the detriment of the creditors."
Venture capital and private equity are pulling out of the Silicon Valley too.
Signs That The Silicon Valley Tech Bubble Is About To Burst | Zero Hedge
San Francisco RE, http://my.paragon-re.com/Docs/Genera...ercentages.jpg
Back to Armstrong. He only mentions gold when prodded. As an investor, he has no use for an asset that just sits there and does nothing. I believe that he has a blindness towards gold.
"There are times when the private sector cannot stand and everyone runs to bonds/cash. Likewise, there are times when government can no longer stand and the only thing that survives is private assets." No mention of gold.
"People get burned on real estate, they then move to stocks. The get burned in stocks, then run to bonds/cash. Then they run to commodities. The key remains when there is a great alignment, which we are headed into. That warns the big Crash & Burn lies in government not private for this one."
Armstrong is a Princeton professor and has an unequalled command of historical fact. He understands all the intricacies of economic action. He mentions the demographic crash but, makes no specific projections. He is aware of birth control but, makes no projections. He seems to be very weak on the capabilities of cyberwar.
Economica makes very good cause to believe that the FED funds rate is locked into the population of the consumer class. Armstrong claims that the crash will be in public debt and not private. FED GOV is spending about 24% of the GDP. How can a crash in GOV debt leave private debt unscathed?
How can the debt-money system survive shrinking population and shrinking consumption?
If the industrial economy has no niche for you, you have to revert to an agrarian economy or a hunter-gatherer economy. What if the agrarian economy has n o niche for you? https://www.youtube.com/watch?v=N7Q9ITJAcOE
A currency war is concentrated on preserving domestic productivity and JOBS.
There is no possibility that our current system of debt-money can survive widespread unemployment, falling birthrate and crashing consumption. Armstrong is hallucinating if he thinks that private enterprise will come through OK while public debt crashes and employment disappears.
Our systems are FAR to complex and integrated to survive a collapse of credit.
The bankers refuse to see that the system is no longer workable. The PTB and deep State refuse to see that the working man has been superseded. Nobody is willing to relinquish power and advantage to see general society survive.Comment
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wilfull blindness on all fronts
The investment "community" seems to embrace a wilful blindness. They don't read Shadowstats because it doesn't paint a rosy picture.
Shadow Government Statistics - Home PageHow much is that in purchasing power when price inflation is running at 10%?Stronger Economic Growth? Over My Dead Body, Says Janet Yellen - The Unz Review
"I know that lots of investors keep talking about interest rates not mattering in the property sector because rents will go up with a stronger economy. Rents will need to go up a whole lot to keep pace with cap rates going from 4 to 6. "
A kaishakunin (Japanese: 介錯人) is an appointed second whose duty is to behead one who has committed seppuku, Japanese ritual suicide, at the moment of agony.The US NAVY & NASA have a fully operational 'Space Fleet' » The Event ChronicleThe Empire should be placed on suicide watch - The Unz Review
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Somebody, sometime is going to have to cut entitlements
Pretty quiet out there. The various power brokers are slowly coming to the realization that the budget and debt ceiling fight will have NO winners,,, only losers. Much of the budget is on autopilot.
Autopilot Spending Devours Budget - Federal Budget in Pictures"But, Mulvaney said, he does support prioritizing payments should the nation need to do so."less optimistic assumptions
Jeff Nielson, part one; https://www.sprottmoney.com/Blog/whe...f-nielson.html
Part two; https://www.sprottmoney.com/Blog/whe...f-nielson.html
The standard of living is; the GDP divided (unequally) by the population. Wages in the West have been falling for decades and people have consciously cut back on reproduction. Many States in Africa have done the opposite and are already having problems with the population outgrowing the economy.
The Global Famine Begins: UN Announces That The Worst Food Crisis Since World War II Is Happening Right NowRussian ATMs Spit Out Cash After Malware Attack | Zero Hedge
Years ago, Canada invaded America and nearly burned down the White House. Time for payback; http://www.zerohedge.com/news/2017-0...-invade-canadaComment
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