Economic pressures

[Danny B]

Everything out of control

Nothing much going on at the moment. As everybody already knows, FED printing has carried the whole economy. Does the PPT and ESF have input and control of the economy? Dunno. Nobody is talking.
Ron Paul says that the FED is at a crossroads. OK, who is really running the FED?

https://www.zerohedge.com/news/2018-02-28/ron-paul-fed-crossroads-crisis-coming

Larry Summers is a doomer, https://sputniknews.com/us/201803011...-us-recession/

Just how much control do "they' have? Here is a chart of interest rates.

https://s3.amazonaws.com/bap-assets/editorial/bbd/201802/20180226-bbd-01.png

Here is a chart of the labor participation rate, https://encrypted-tbn0.gstatic.com/i...BkpQkUoU--kUsu
From this site, https://pronkpops.wordpress.com/tag/fairtax-less/

https://bonnerandpartners.com/this-has-predicted-every-market-crash-in-history/

The FED wants to raise rates so that it can fight a possible recession. BUT, raising the rates will cause the recession that they hope to fight. We have peaked out on population and consumption.
Yikes, the URL for the image was a couple of 1000 lines.

https://econimica.blogspot.com/2015/03/amazing-math-from-bureau-of-labor.html

So, the population and wages and consumption are all falling. The FED can raise rates but, the little bit that they just did cause an 11% crash.

[Danny B]

The State & society,,, in flux

As the world shrinks due to rapid communication and rapid transportation, the usual groups try to extend the reach of their power.
The corporatocracy plans to eliminate the State and hold all power.

https://jonrappoport.wordpress.com/2018/02/28/the-world-on-trial-will-globalism-socialism-win/

The technocrats are going to order your life.
China, on the other hand is going to track and manipulate EVERY single detail of Chinese life.

https://dollarcollapse.com/politics-2/china-dictatorship-next-level-history-says-wont-work/

Central Planning doesn't have a good track record of success. Socialism has generally been a bust. It kills all motivation.
Japan has quasi- public banking. China has mostly public banking. In the West, the banks run the State. The fall in the birth rate and the rise in automation are making it an unworkable system.
Everybody is screaming to audit the FED. Up until recently, the FED didn't create much money.
" But the main factor that controls the money supply has been the commercial banking system. The creation of loans creates electronic entries on accounts. If I have $100 in my account and the bank lends you $100, we then both have $100 in our accounts so the money supply is doubled WITHOUT the central bank printing anything."

https://www.armstrongeconomics.com/world-news/central-banks/swedish-central-bank-voice-alarm/

That's not to say that the FED didn't enable the private banking system to blow bubbles. The SEC is equally guilty of allowing insane leverage.

The CB protects the upper loop from default. In the 2008 crash, it was consumer RE that got defaulted on. At the moment, 10% of u.S. companies can not service debt-interest with their profits. The FED is trying / having-to move down the food chain in preventing defaults. That is why there is talk of a basic monthly income. Debt service snuffs out income. Default follows.
China can yank the rug out any time they want. They hold a lot of U.S. debt notes but, given enough incentive, they might act rash. PressTV-China media warn of ‘hell’ if Trump signs Taiwan bill

[Danny B]

End Times at the OD Corral - Kunstler

https://creditbubblebulletin.blogspot.com/2018/03/weekly-commentary-cracks.html

Powell has SLAMMED on the brakes. At first, everybody was complacent. When they could see that the marching orders had been changed, they became nervous. Panic will come soon enough.

https://dollarcollapse.com/monetary-policy-2/doug-noland-no-bailouts-soon-sell-short/

Stockman has a LOT to say about the fake recovery and the bombshell of quantitative tightening.
Contra Corner » The Two Janet’s And The Perfect Storm Ahead
The trade war will be most likely blocked by the courts,, like the muslim ban. It seems like Trump is using the spectre of a trade war to advance some other agenda. After all, Canada is our biggest steel supplier. He won't tip over their apple cart. Like obummer care and the border wall, this will get bounced all over the place. Trump has to use whatever weapons he can hold of.
"But trade is the one policy arena where the Donald can go completely rogue owing to the insidious section 232 of the 1962 trade act. The latter literally gives the President open-ended powers to impose tariffs and other trade protections in behalf of any industry deemed essential to "national defense" "Trump means to become a one-man wrecking crew; and that there is no one around the White House who can take away his primary weapon in the global trade war "
Stockman hates Trump so much that he is blinded as to how he operates. He put an Ace in his hand and, he's going to work it hard.


I think that he kinda likes chaos.

[Danny B]

ZIRP poison and the end of QE

The current belief is that Powell will raise interest rates and execute quantitative tightening to put the brakes on. The current belief is that Powell will relent at some point. It is believed that he will let / force interest rates to continue to raise, at the same time that he will do more quantitative easing. The FED fancies itself that it has a good understanding of "herd mentality". The "Greenspan put" was the start of the injection of confidence into the markets. BUT, it was an injection of confidence into the private markets. The FED invented the BLICKS and other assorted stratagems to show that there were indeed buyers for U.S. sovereign debt.

The CBs have pumped in mega-tons of liquidity in the hopes that every niche would be flooded with hot money. There would be no where to go if an investor tried to flee the markets. Gold has been manipulated down. 10% of crypto-coins have been stolen.
The East is betting on a huge rise in the price of gold. Armstrong says no,,, though he does qualify this be talking about a future "slingshot move"
FOFOA is a VERY well informed gold-bug who says, YES. Sovereign debt is considered a great store of value because the State has taxing authority. Sovereign debt always crashes but, the State talks up a good story,,, between crashes.

ZIRP was a huge mistake in that it wiped out all the funds and savers. Interest rates are going up but, I REALLY doubt that you will see a higher interest rate on your savings account. ZIRP gave a spread on interest rates so that the banks could have some income. It also helped the State to hold down the cost of debt service on public debt. The blowback cost was that all the pension funds went broke.

https://www.armstrongeconomics.com/world-news/pension-crisis/calpers-on-the-brink-of-insolvency/

Keep in mind that the Deep State is personified and embodied as the great mass of public sector "workers" who voted in-mass for whichever candidate promised the most money.
Saudi Arabia is the perfect example of this system carried to ridiculous extremes. 75% of State workers don't even show up.
Ca. isn't far behind, "The insolvency at CalPERS has exceeded $100,000 owed by every private citizen in California to government employees."
THAT is the greater mass of the Deep State.

Governor Moonbeam took a few shots at Trump and FED GOV. What an idiot. Trump fired back with a new measure that will gut the Ca. Treasury.

https://www.armstrongeconomics.com/world-news/taxes/california-in-peril/

https://www.peakprosperity.com/blog/...e-pain-insight
Here is a fascinating chart, https://amp.businessinsider.com/imag...01-750-563.jpg
"The change in debt subtracted from the change in the economy each year. This chart shows that, on balance, we have had to borrow more and more each year to produce the same level of economic growth: "
Keep in mind that GDP INCLUDES advertising and finance. The chart shows the big 1987 crash and then, a small turnaround. From that point forward, it was steadily downward. As America lost it's lock on manufacturing, our true national income fell.
You can easily see the big spurt of QE. As soon as QE ended? we turned right back down. This drop was recently halted but, still negative.

"here's what our economic growth looks like if you subtract the debt we've borrowed along the way. "

https://amp.businessinsider.com/images/4fe3143269bedd492d000000-750-563.jpg

OK, so next time you hear that the economy is growing, you can get a better perspective.

http://www.businessinsider.com/us-economy-debt-2012-6

[Danny B]

Hussman on stocks,,,medical debt,,,hunt for taxes

I try to cut out the BS and not waste your time. But, today takes more reading. NOBODY states things clearer than John Hussman. He said the FEB. 2 was a turning point. I won't excerpt his article. This needs no explanation from me.

https://www.hussmanfunds.com/comment/mc180302/

Here is what Mike Shedlock had to say about the article from Hussman.
"John Hussman has another excellent article out this week, but it will be ignored. Mathematically, it must be ignored.I don't disagree with a word of that. And his images are excellent. But is the message lost in the pictures?"
"Someone has to hold every stock and every bond, at the top and all the way down."
So much for stocks. What about bonds?

"fact #1: 43 million Americans have overdue medical debt on their credit reports

fact #2: 52 percent of all debt on credit reports is from medical expenses

fact #3: 15 million consumers have only medical debt on their credit report"

Europe has a new law. If you do anything bad to someone,,, they fine the snot out of you. They don't say what anything "bad" is.

https://www.armstrongeconomics.com/international-news/europes-current-economy/gdpr-are-your-ready/

Armstrong is advising you to have a bit of extra food as global warming is getting worse.

https://www.armstrongeconomics.com/international-news/britain/britain-buried-in-snow-thank-to-global-warming/

87% poverty in Venezuela, https://www.nextbigfuture.com/2018/0...nevitable.html


China is loudly rattling sabers, 'Descent Into Hell': China Warns of Potential War With US Over Taiwan
The banks are susceptible to contagion and, have stopped lending to each other, https://www.moneyandbanking.com/comm...erbank-lending

[Danny B]

Interest rates,,, legitimacy of the State

Canada gets honorable mention, ". For every $1.00 of income, consumers owe $1.68. This is the highest income to debt ratio in the world. For low-income Canadian households, the $1.00 disposable income to $3.33 debt ratio is even worst."
Oh Canada! The Looming Economic Meltdown - Gold Telegraph
Pretty bad,,, Eh?
The London interbank overnight rate Suffered a run on the banks back on 2007--08. Nobody knew who was solvent and, who was not in the banking industry. The banks have now gotten away from interbank loans. Repost, https://www.moneyandbanking.com/comm...erbank-lending
Since the LIBOR loans have gone away, the interest rate has dropped to nothing. This has killed interest income on anything referenced to the LIBOR rate. "They" have gotten together and come up with a different reference to set the interest rates that were previously referenced to LIBOR.

https://www.reuters.com/article/us-usa-bonds-libor/u-s-libor-exposures-larger-than-thought-at-200-trillion-arrc-idUSKBN1GH2Z8?il=0

"The ARRC in June voted to adopt an interest rate benchmark from the U.S. Treasuries-backed repurchase agreement market (repo) as an alternative to the use of Libor in exchange and privately traded derivatives. "
"The Alternative Reference Rates Committee (ARRC) said that around $200 trillion in U.S. dollar-based derivatives and loans are based on Libor, with derivatives accounting for around 95 percent of the exposures. "
So, what happens to $ 190 trillion in derivatives when the REPO market blows?

Notes on China, "A single cash advance of $100 million can be passed from corporation to corporation in exchange for a new promissory note, used to extinguish an old unpayable promissory note. Repeated enough times, the $100 million can be used as window dressing to prop up $1 billion or even $2 billion of bad debts."
"China has $1 trillion or more in bad debts waiting to explode. These bad debts permeate the economy."
Side note, https://www.express.co.uk
"Both alternatives are unacceptable to the Communists because they lack the political legitimacy to endure either unemployment or inflation. Either policy would cause social unrest and unleash revolutionary potential."
EXACTLY the same as Brussels.

https://dailyreckoning.com/chinas-coming-meltdown-will-rapidly-spread-u-s/

The Chinese system can survive far better than the system in the EU.

He wants to slowly drag away the punch bowl from the party. NOT going to work. The leverage and margin-debt is far too high to take any kind of reduction.

Could it be that debt service is crowding out everything else?
Send him to the front line to lead the charge.

http://theantimedia.org/israel-lebanon-verge-of-war/

[Danny B]

https://www.zerohedge.com/news/2018-03-06/europes-zombies-brace-mass-extinction-2019

Ron Paul weighs in on the stock market, https://www.zerohedge.com/news/2018-...ng-be-calamity
Worldwide, the CBs are pumping money into the markets to support employment. It really isn't working out because automation is crushing wages. Mass unemployment is a big problem. The other problem is; some of the hot-money is flowing from the upper loop into the lower loop as price inflation. So, while mass unemployment is a potential huge problem, pricing people out of the housing market is equally dangerous. So much hot money flowed into the Canadian housing market that affordability has become a huge problem. In an effort to cool off the market, Canada limited foreign inflows. This too has a knock-on effect.

https://www.armstrongeconomics.com/international-news/canada/foreign-investment-into-canada-has-collapsed-by-26-in-2017/

Canada shifts to the left,,,, capital leaves.

Interest rates have a big effect on sovereign debt service, "Who will tell the American people that in a couple of years, almost half their income tax payments will go to pay interest on the debt to Japan, China and all the others who buy American bonds? Who will tell the American people that the debt service we pay will be greater than our expenditures for the military?"
So, do we default OR, reduce the military? The article doesn't mention the HUGE increase in the cost of the safety net.

https://www.cnbc.com/2018/03/05/rising-interest-rates-will-be-devastating-to-the-us-economy-for-one-big-reason.html

The results of the Italian elections brings the world MUCH closer to the deserved death of the mega-parasite called the eurozone.

https://www.armstrongeconomics.com/international-news/europes-current-economy/italian-elections-another-nail-in-the-coffin-of-brussels/

Armstrong has a good article examining the question whether climate change is a linear progression OR, a catastrophic event.

https://www.armstrongeconomics.com/world-news/climate/climate-change-catastrophic-or-linear-slow-progression/

What is left out of the discussion is; It isn't so much the temperature change that we have to worry about. About 1880, the magnetosphere started to weaken. This was the start of a natural progression going into a flip of the magnetic poles. The magnetosphere has weakened about 15%. When it reaches about 50%, we will lose copper-conducted power distribution AND satellite communications. The flip is accelerating (Suspicious Observers). Systems have started to go down,,, like the airlines reservation system.
During the Carrington Event, there was very little transmission by copper wires. The blackout many years later in Quebec showed what we can expect when the magnetosphere gets weak enough.

https://www.scientificamerican.com/article/geomagnetic-storm-march-13-1989-extreme-space-weather/

this would more-or-less correspond with the predictions of Ed Dames in "Killshot".

In the last several years, the sun has burped out MASSIVE solar flares that would have wiped us out IF we happened to be in the trajectory. Just a few months ago, the sun blasted Mars and fried it. We have been lucky so far.
Buy stock in fiber-optics companies.

[Danny B]

https://www.zerohedge.com/news/2018-03-07/what-economic-recovery-half-us-companies-are-losing-money

https://kingworldnews.com/greyerz-the-global-crash-is-about-to-accelerate/

Bank runs in Latvia, https://www.armstrongeconomics.com/w...ean-contagion/
The Eurozone was a flawed construction fated to die in a relatively short time. This led to a reluctance on the part of investors to buy into the Euro currency as a store of value. After all, the EU was simply a full-employment scam for bureaucrats. A big socialist employment scam. The Eurozone suffers from having total idiots like Donald Tusk running the show. Investors are not impressed and, they are leaving.

https://www.armstrongeconomics.com/markets-by-sector/foreign-exchange/euro/how-the-euro-will-be-killed-by-politicians

/
Meanwhile, the changes in the magnetosphere have driven the cold air out of the Arctic and down to lower latitudes. This is going to be an increasing problem.

https://watchers.news/2018/03/05/extreme-cold-results-in-severe-agricultural-damage-across-europe-food-prices-rising/

California is DEMANDING federal money that it claims must be paid. BUT, this federal money is in the form of GRANTS. Governor Moonbeam is desperate to keep CALpers from crashing.

https://theamericanscoop.com/judge-issues-surprise-ruling-on-withholding-funds-for-sanctuary-state/

As long as you aren't muslim.

[Danny B]

Continued destruction of the private sector

Post WW II, America had 24,500 tons of gold and more importantly, it had the reserve currency. It also had 3% of the population and 50% of the manufacturing capacity. Since the U.S. dollar was the reserve currency, foreign States had to EARN dollars by selling stuff to us. They had to undercut our domestic prices if they hoped to sell to us. America set up Japan as a satellite economy with low tariffs. That meant that they could easily undercut American prices. The end result was; they made quite a LOT of money. They could use that money to buy stuff from us. Also, they were urged to buy American GOV securities and bonds. The profits that they earned from the American private sector were recycled into federal debt. This money was spent on the welfare-warfare State. They sent us Toyotas and we sent them confetti.

As Japanese wages reached parity with American wages, Uncle Sam looked around for a new low-wage producer to set up as a satellite economy. China was given a most favored nation trading status. The great wage disparity with China allowed them to gut our manufacturing system. More importantly, the Chinese were "urged" to buy U.S. GOV debt. Over the decades, Japan had to be occasionally threatened to keep them buying U.S. debt AND, allowing U.S. bases on Japanese soil,,, to enforce these threats. Like Germany, Japan is still garrisoned.

China is not about to bend at the knee to placate America. We rattle sabers in the South China Seas and, in Taiwan. China is willing to be a satellite economy BUT, they will NOT be a satrap of the West. China can bring down the West any time that they want. All they have to do is to offer $2500 an OZ. for physical gold and, the system will collapse. They don't want to do this while they hold U.S. treasury debt.

Jim Willie says that they are dumping that debt.

https://www.youtube.com/watch?v=ZSWyUzXz1tE

Taiwan is toast any time that the Chinese say it is. The new hypersonic missiles and long-range cruise missiles would take out any naval assets sent to prevent them from crossing the 110 mile wide Formosa Straight.

In practice, the Bretton Woods agreement mandated that all States had to hold U.S. dollars as reserves. Later, the petro-dollar arrangement with Saudi Arabia meant that all States had to EARN and hold dollars to buy oil. The U.S. oil industry lost $ 20 billion last year. The FED subsidised the speculators who invested in the junk-bond market that lost this $20 billion. We consume about 19.69 million barrels per day.

As the rest of the world phases out the petro-dollar, foreign States have no reason to buy the dollar or Treasuries. The FED invented the BLICS to create a chimera to buy U.S. debt. Sovereign borrowing is screaming up when possible buyers have all run away. The FED plans to raise rates to attract foreign capital while the ECB and BOJ are stuck on zero. Once again, we see that the private sector will be sacrificed on the altar of prolonging the compounding of the public debt. It is expected that at least 50% of companies will go bust when interest rates revert to historical norms.

The State plans to attract foreign capital to the U.S. bond market regardless of what it does to private markets. Everybody in the upper echelons of State finance reads Martin Armstrong. He shows good cause to believe that U.S. public debt will default. The treasury will offer higher and higher rates of interest to attract buyers. Chances are; they will buy 90 day paper. The ECB and the Euro are on a death march. The hot money will flow into precious metals AND, as Armstrong indicates,, into American stocks. The least ugly house on the block.

[Danny B]

Priced out of the American economy with no savings

"The NFIB finds that 34% of all owners reported job openings they could not fill and 22% of owners cited the difficulty of finding qualified workers as their most important problem, exceeding the percentage citing taxes or the cost of regulation."
That would be the "skills gap".
"the Fed ignores rising prices for financial assets (that is, things that benefit the big banks and their favored clients) while focusing intently on grocery store prices and wages, a sudden spike in hourly pay puts extreme pressure on the Fed to raise short-term rates and sell off the bonds it bought to force long rates down during the Great Recession."
So, wage inflation is BAD.

https://dollarcollapse.com/inflation/wage-inflation-coming-spiking-interest-rates/

http://realinvestmentadvice.com/wp-content/uploads/2018/03/Wages-Profits-Ratio-030718.png

There Will Be No Economic Boom – Part II | RIA

The State is to be your god. They will provide for all your needs. This mantra has unfolded as the Welfare State. The nuclear family was destroyed and the safety net was deployed under everybody. BUT,
40% of Americans spend up to half of their income servicing debt ...
40.9 million Americans, both homeowners and renters, spend more than 30% of their income on housing, including 19.8 million who spend over half of their income for housing.
The end result, "About 42 percent of Americans have less than $10,000 saved for when they retire... 18.9% have zero saved."

https://www.cnbc.com/2018/03/06/42-percent-of-americans-are-at-risk-of-retiring-broke.html

The State inspired a false sense of security. The pension funds are gong broke.

When our wages failed to keep up with price inflation, the banks lengthened our credit terms. Now, we are buried in debt.
Student loans, https://www.youtube.com/watch?v=yuT-865Oa1I&t=84s

https://www.youtube.com/watch?v=2LwR4Kmv4nk&t=50s

https://www.youtube.com/watch?v=Sz1Gu_KM4U0&t=31s

https://realinvestmentadvice.com/trumps-volley-hoovers-folly/

So, the private sector gets skinned to keep public debt solvent. BUT, the whole safety net is evaporating. Most of our public debt was incurred fighting wars. Who did that benefit besides the offence contractors?


So, Goldman Sachs is OUT of the White House.
We're still the least ugly house on the block..
Just wait til 5 Star gets into power and blows up everything.

[Danny B]

Labor force baloney

Compensation, http://www.alhambrapartners.com/wp-c...n-per-hour.png
"A little more than half of its expansion was derived from the increase in labor utilization, while a little less than half was through increased efficiency of that labor."
"Or, another way of saying it is that these figures show once the 2015-16 downturn hit, businesses reduced their labor utilization (weaker jobs market, including wage and income growth) that necessarily had the effect of raising productivity given that output was largely the same on average.
"But even before then, productivity had only increased in 2008 and 2009 as a result of massive workforce reductions (layoffs),"
In other words, going back to 2004, the only way American businesses seem able to gain in labor productivity is to cut back on labor growth at the margins. "
Really Looking For Inflation, Part 1 | Alhambra Investments

The PTB use the CB to create constant monetary inflation. The person who sells his labor is always behind the curve. Wage depreciation is baked into the cake. At the same time, 47,000 GOV entities squeeze every American for fees and licenses, and everything else. This is all reported in their annual report. Read the site "CAFR 1". These agencies report that they are holding in excess of $200 trillion. FED GOV constantly squeezes out every penny of tax money that it can find. Your check is sent to a federal reserve bank. The Grace Commission formed by pres. Reagan reported that not one dime of income tax money goes to the GOV.
Keynes said that; "in the future, we would be so rich that we would not have to work more than 15 hours a week."

The FED is tasked with the job of providing constant inflation of the money supply to create constant deflation of our wages.
The money is shuttled to the parasites in the upper loop. Nobody would miss them if they all quit. BUT, if the actual productive worker only worked 15 hours a week, there would be paralysis of the economy.
The Bretton Woods agreement would have kept inflation to a minimum and, it would end all currency wars. It was VERY bad for bankers because they live-or-die based on inflation of the money supply.
With 95 million not in the labor force, there is a huge reduction in the production-consumption cycle. Automation means that there is little constraint in productivity but, a huge slowdown in consumption.

This has cut profitability. The corporatocracy has responded by reducing labor and increasing automation. They refuse and block all wage gains. We cut back on the birth rate. We cut back on non-discretionary spending. Their profits go down. They are too blind and stupid to see that general poverty cuts back on their profits.

Here is Trumps take on fake jobs reports, https://www.youtube.com/watch?v=E5HhT_cMhvo

https://www.washingtonpost.com/news/fact-checker/wp/2016/01/20/trumps-claim-that-the-unemployment-rate-is-23-percent/?utm_term=.ca8fe3f8211e

Banks are getting out of mortgage lending and, non-banks are moving in.

https://imageproxy.themaven.net/https%3A%2F%2Fs3-us-west-2.amazonaws.com%2Fmaven-user-photos%2Fmishtalk%2Feconomics%2FzmfATcSa4EegwR7v_znq6Q%2F_PHWcV3mHEelvFZ_aioElQ

"Brookings provides the failure hierarchy, and failure is a given.
To keep the latest bubble going, nonbanks kept lowering and lowering credit standards as home prices kept rising and rising."

Credit card delinquencies are priced as if they will be paid back. They won't.
As soon as recession hits, defaults and charge-offs will mount. In turn, this will reduce the amounts banks will be willing to lend.
Subprime corporations who had been borrowing money quarter after quarter will find they are priced out of the market, unable to roll over their debt."

https://www.themaven.net/mishtalk/economics/housing-liquidity-crisis-coming-up-YLaO72UxNU-najv2-Khdig

David Stockman has a rant about protectionist tariffs for steel.

http://davidstockmanscontracorner.com/whistling-past-the-graveyard/

Yep, maxing out the credit card.
Maybe they shouldn't have created the problems that brought about MGTOW.
If they are so great, why is he selling out?
No kidding! Student loan defaults are over 40%. Credit cards are soon to follow.

[Danny B]

Credit expansion for bankers and wars

The State works very hard to educate you and convince you that; society & State are mutually beneficial and inseparable. So, you marry up a productive society with a parasitic State,,,, and everything works out fine. ALL States eventually default when they can non longer steal enough in taxes to keep the engorged parasite alive. What they can't steal with taxes, they steal with currency debasement.
Burke said, "war is the health of the State"
"War is the sport of kings."- English proverb
Fundamentals of Central Banking,,,, document from the G-30. Page one.
"Central banks were first established in the 17th century, with the primary purpose of providing war finance to governments"

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

The Creature From Jekyll Island about the creation of the FED. At that time FED GOV was responsible for creating the money supply. The gold standard was a huge constraint on private money lending. The bankers worked for decades to get control of money creation. The State was amenable to this idea because it always needed more money for wars and vote-buying.
The original FED charter allowed for loaning on PRIVATE debt only. Normally, overnight loans backed only by good collateral. The State had the guns and the banks had the money. Guess what happened?

"The ability to create money by the Federal Reserve is essential as originally designed. However, that design was directly beneficial for it would buy ONLY short-term corporate paper in a crisis when banks could not lend. Buying corporate paper saved jobs. The key was a simple fact it was corporate and NOT the government. "
"It was not that the Fed was evil, it was that the Fed was usurped by Congress during World War I and directed to buy only the paper of the government. It was that aspect that has altered the role of the central bank and is demonstrated why the ECB in Europe now own 40% of all government debt and they cannot stop without creating a crisis. Elastic money was a good solution when it actually expanded in a shortage and contracted in surplus. That was ONLY possible when it was corporate paper and when the government ordered government paper should be bought EXCLUSIVELY, the entire system was undermined"

"The Creature of Jekyll Island advocates what Jackson did, and that will lead to a massive Sovereign Debt Crisis among the States and undermined the entire economy both domestically as well as internationally. That is by no means the answer. The answer lies in the curtailment of politicians. The banks owned the Fed BECAUSE it was a bailout system that they paid into. It was never intended that taxpayer money would be used to bail out banks. Once the banks became the seller of government debt, they then had a grip on government and with the Fed only buying government debt, the entire system is nothing like the intended design."

https://www.armstrongeconomics.com/world-news/central-banks/the-creature-from-jekyll-island-unprofessional-book/

The junk-bond market is a leading indicator of financial stress. Is the FED or ESF or PPT holding up the junk-bond market? Will there truly be a cutback in new debt creation?

[Danny B]

https://www.youtube.com/watch?v=aKC51CZ6sKc

Valerie Plame tweets story blaming 'America's Jews' for foreign wars

The CIA runs all the dirty operations for the State.

This brings us to the question of; if we truly live in a democracy, why can't we stop executing and paying for all these wars that we don't want?
The answer is, of course, we don't live in a democracy.

SLOWLY getting to my central idea, here is an article about a looming trade war. BUT, the article has a second theme. The rise of populism is MUCH feared.

Populism, "support for the concerns of ordinary people."
Democracy, "Control of an organization or group by the majority of its members."
Plainly, we don't have a democracy because we are controlled by a minority.

"it's hard to get away from the fact that the overall result was another resounding vote for populism. Indeed over 50% of votes submitted was for a populist party"

"Deutsche Bank's populism index showed, the percentage of votes for populist parties on a population weighted basis was now around 32% - a level its largely held since the Trump inspired surge in 2016. In fact, you had to go all the way back to the WWII period to find the last time that populism had such support."

SO, in the run-up to war, people voted to exit our sham democracy and, support the little guy. AND avoid war.
Good thing that the Germans sank the Lusitania.

https://www.youtube.com/watch?v=XD-RtFX8aYY

Good thing that the Japanese did a surprise attack on Pearl Harbor.

https://www.youtube.com/watch?v=AoafS24TKOg

"Reid's troubling conclusion is that "it's hard to get away from the fact that populism is currently going through an explosion in support at present."

Maybe that is because we have been robbed blind.

"At a time when global central banks are moving towards an unprecedented era of tightening and dealing with years of massive asset purchases, risks from rising populist support has the ability to seriously disturb the prevailing equilibrium of the last few years and subsequently markets."

This so-called equilibrium was a geometric rise in debt laid onto the backs of the working man.

While Reid notes that this is more of a slow burning issue over the next few years, he concedes that populism remains the biggest threat "to the post-1980 globalisation/liberalism world order."
The money renters are terrified that an incumbent Government like 5 Star might actually look out for the little guy.

https://www.zerohedge.com/news/2018-03-09/looming-global-trade-war-12-charts

ALL of this gets back to war financing. Populism is the enemy of war and globalism.
Rise of populism in Europe 'a real threat to democracy' | Euronews
Latest breaking news available as free video on demand | Euronews

http://www.euronews.com/2017/12/29/rise-of-populism-in-europe-a-real-threat-to-democracy-

https://www.youtube.com/watch?v=pd9yKp8ECf4&t=1s

It is also claimed that we are due for another false flag operation to nudge us to where the globalists want us to go.

https://www.youtube.com/watch?v=gKl0Xg_DMOU&t=222s

Rumored that the pension cuts will star before long, https://www.youtube.com/watch?v=FzQpe9UjyFo&t=7s

Mike Adams of Health Ranger says that massive depopulation is the only way for the State to avoid collapse.

https://www.intellihub.com/mike-adams-depopulation-becomes-the-only-way-for-the-government-not-to-collapse/

He must be speaking some truth. They eliminated his entire channel.

https://www.youtube.com/watch?v=dBzQOOt9co0

[Danny B]

The CBs take the helm but, the rudder is broken

https://www.bloomberg.com/view/articles/2018-03-09/the-global-economy-s-wile-e-coyote-moment

Global growth HAS rolled over, https://assets.bwbx.io/images/users/...v0/1000x-1.pngThe $233 Trillion Dollar Dark Cloud of Global Debt - Gold Telegraph

98% of the gold held at the New York FED is owned for foreign states. America is exporting record amounts of gold. Just who is the rightful owner of this gold?

https://www.zerohedge.com/news/2018-03-10/amazing-amount-gold-us-exported-2000

[Danny B]

Meanwhile, China and Russia are locked together in oil deals, https://www.rt.com/business/421021-c...neft-purchase/
On march 24, China will exit the dollar for oil sales. The net is calling for a total crash of the economy. Umm, don't hold your breath.

The new FED head is surprisingly, a gentile. He does NOT have a phd in economics so, that is a good thing. The academics have their heads full of BS. Here is a comment from Zero Hedge.
The bankers also create the money supply from bank credit, so they can create money and demand for the financial assets they produce themselves with interbank trading. They need securitisation so they can get this debt off their books and just keep going until there is a systemic collapse. They securitize the debt and sell it into the markets until this bad debt, used to inflate financial asset prices, saturates the markets.

http://www.whichwayhome.com/skin/frontend/default/wwgcomcatalogarticles/images/articles/whichwayhomes/US-money-supply.jpg

So, the private banks create liquidity until the system is overloaded with debt. Then, the CB has to step in to save the system. What happens if the CB does NOT step in?

So, are the Treasury and congress prepared to go cold turkey? Is this an excuse to pull the rug our from under Trump?
Tell me more. Where does the inflation come from if the FED stops inflating the money supply?
The money drifts upward, no surprise.
Here is an interesting graph showing our current "dead cat" bounce, https://cdn.opendemocracy.net/neweco...t-13.52.41.png
The unfolding pole flip will take out all long-distance power transmission over copper. The IRS is making it easier to have a stand-alone home power system, https://www.greentechmedia.com/artic...lar#gs.lXmAsaQ