Economic pressures

[Danny B]

Cyber crime,,, paper money

Cyber Crime Costs Projected To Reach $2 Trillion by 2019 - Forbes

https://www.forbes.com/.../cyber-crime-costs-projected-to-reach-2-trillion-by-2019/

China's Shutdown Of Bitcoin Miners Isn't Just About Electricity - Forbes
Gold has attributes that BTC does not have.

4/305/01That Collapse You Ordered...? - Kunstler
He never was a ray of sunshine. He does bring up the question of just how fast the unwind will be. Since our money has no tangible value, it is just information. How fast can information and contagion travel?
The repeal of the Glass-Steagal act gave our savings to the bankers to gamble with. The bankers are now looking everywhere for money.

US banks in 'arms race' for deposits as rates rise - Financial Times
https://www.ft.com/content/1bd2ca6c-...b-bc4b9f08f381
So, the banks took our money and, now, they need more.
YOUR money was just an unsecured investment in the bank.

A lot of people are getting nervous about their money in the banks. SO,
"Sky News has also found that the proportion of UK banknotes circulating outside the banking system - in people's pockets, stored at home and outside the country - has now hit the highest level since 1979, as a percentage of GDP."
The cure;

Obviously, if the State does not want you to hold paper money,,,, that is just what you should do.

[Danny B]

About the same for America,,, in spite of leaving the southern border open. https://www.ssa.gov/history/ratios.html

https://www.zerohedge.com/news/2018-04-30/no-longer-reversible-chinas-low-fertility-rate-and-birth-restrictions-set-stage

Excellent infographic on population growth, Visualizing Global Population Growth by Continent - The Sounding Line

Nobody wants to live in an Orwellian world NOR bring children into it.
Giant Chinese companies are outfitting millions of employees -- everyone from factory workers to military personnel to pilots and train drivers -- with special uniform hats containing an unspecified neurological sensor package claimed to be capable of detecting "depression, anxiety or rage"
Chinese Factories Employ "Brain Scanners" To Stop Workers' Mistakes Before They Happen
China's "SkyNet" facial recognition tools can compare up to 3 billion faces per second to help the government enforce its new "social credit score" - the Communist Party's latest and most widespread tool of political repression.

" the Chinese government is pushing to double the size of the economy by 2020 (setting this goal in 2010). "
Have the government idiots taken a look at Japan and their falling population?
"Increasing debt without a concurrent economic gain has inevitably led to the economic downfall. Out of 43 countries that experienced an increase of credit-to-GDP of more than 30 percent in five years, 38 of those countries faced a financial disaster. "
Yep, printing money without a corresponding increase in wealth never seems to work out.
" In 2016, 41 banks wrote off 576 billion yuan in bad loans, up considerably from the 117-billion-yuan bad loan write-offs in 2013."
The Global Debt Addiction: China's Out of Control Debt - Gold Telegraph

Bonds pay very little but, as long as they pay a higher percentage than the percentage lost to price inflation, people buy them. Even using artificially depressed GOV figures for inflation, bonds have been losing for years.

https://www.bloomberg.com/news/articles/2018-05-01/forget-3-that-amazing-bull-run-in-treasuries-ended-years-ago

Keep in mind that people who bought bonds with free money aren't particularly concerned about a drop in value.
If you buy high-yield bonds, you get a higher return but, more risk.

https://www.bloomberg.com/news/articles/2018-04-30/tire-plunge-shows-no-margin-for-error-in-u-s-junk-bond-market

[Danny B]

https://www.theautomaticearth.com/2018/05/marie-antoinette-and-charles-dickens/

The State has definitely turned anti-human. Socialism destroys the family.
The corporatocracy is focused only on profits which is damaging to all living things. England and France are going to fall very hard. Windrush isn't the only problem.
Undoubtedly, the darker ones.

Bond shorts have hit record highs. Commercial traders have taken the opposite view betting on inflation. The upper loop has been HUGELY inflated. The stock markets have rolled over. There isn't going to be any high inflation in the future. It will be turtles (deflation) all the way down. FED GOV is sucking money out of markets with insane borrowing. The FED is (reportedly) pulling out many $ billions. Another 1/2% rise in the 10 year rate will bankrupt 20% of U.S. companies. All of this brings deflation.

https://www.themaven.net/mishtalk/economics/speculative-bond-short-hits-new-high-others-claim-rates-headed-to-zero-rd8QodVmSEuszWT7n0S6wg/

https://www.bloomberg.com/news/articles/2018-05-01/there-s-a-new-curve-in-town-and-it-s-flashing-red-gavekal-says

There is just no escape from a falling population. The Japanese GOV has started a nationwide dating site hoping to get more Japanese births. Japanese women are looking for a FARM boy to marry. Evidently, the city culture is just too negative for a family.


Everything got a bit weaker after the 1987 crash. The 2000 crash demanded a lot of stimulus. The '08 crash demanded MUCH more. The stimulus just isn't working like it used to.

Viewing Employment Without Rose-Colored Glasses | RIA

[Danny B]

https://www.nytimes.com/2018/05/01/opinion/america-china-trump-trade.html

China is an absolutely controlled society. If you jaywalk, an AI program / camera will use facial recognition to automatically fine you. The "brain helmets" that millions must wear can't make life any better. It is highly doubtful that China can reverse it's population slide. China will never escape the trap that Japan is already in.

[Danny B]

401k gone,,, dump the military,,,crashing consumtion

The bankers used regulatory capture to force in their Central bank. They offered LOTS of loans to GOV to create a bond market. GOV just passes on all the cost to the taxpayer. Banker control of the State allowed the banks to take all our retirement money and invest in building up China. There is more profit investing in a low-cost labor market than investing in a high cost labor market. The retirement money is gone. The banks are chipping away on YOUR claims to YOUR money.
"There are tens of thousands of workers who are due lost 401(k) money, but there is no one central depository where you can look for what's rightfully yours. " Forbes

"Even if you still have a good job and a paid up mortgage, chances are your monthly 401(k) statement will remind you that you've lost a good chunk of your savings. Trillions of dollars have evaporated from those accounts " CBS News

The entire pension system is flat busted. Both public and private. Your 401k is gone. The banks are desperate for deposits. Why is that?
"Banks brace for multi-year deposit war | afr.com
404 | afr.com
Aug 5, 2016 - Australia's big banks face a costly battle for household savings to close a $400 billion "funding gap".
So, how big is the "funding gap" in the West?

Armstrong and the mega-corruption in New York.

https://www.armstrongeconomics.com/armstrong-in-the-media/the-forecaster/congress-criticizes-trumps-people-for-meeting-with-russians/

Excellent article on the collapse of Marxist/socialism in America.

https://www.armstrongeconomics.com/international-news/politics/the-changing-wind-in-politics-by-generation/

https://www.armstrongeconomics.com/armstrongeconomics101/economics/trump-v-obama-trill-dollar-deficits/

The total U.S. military budget, including black projects is reckoned at $1 trillion. GOV also reports that $2.3 billion is missing. Later, this is changed to $13 trillion. Dunno what the current figure is. America is in no danger of being invaded by Canada, nor Mexico. The military is mostly an instrument to rampage around the world stealing resources. It is also a very blunt tool used to create a "greater israel" and, protect opium crops in Afghanistan. Did I mention drug distribution all through Europe by way of NATO bases? It is also the enforcement arm of the FED making sure that everybody uses U.S. dollars. What honest and practical uses are there for the U.S. military?

https://russia-insider.com/en/americas-worst-enemy-its-trillion-dollar-military/ri23359

This is not to disparage the soldiers, just their mission. And the politicians who create this mission. FED GOV has tons of money for the military but, hates to spend anything on infrastructure or education. The time WILL come when retired people will demand the benefits that they paid into. Congress will patiently explain that the military is FAR more important and, must be fully funded. This will happen at the same time that most pension funds collapse. Many millions of old people will be demanding to get into the FEMA camps to survive.

So, the banks took all of our money using regulatory capture. The economy crashed because the lower loop could no longer support the predation of the upper loop. Fresh money was injected into the upper loop hoping to create a revival in the lower loop. All this money NEVER went into wages so, the lower loop defaulted. More money was pumped into the upper loop again and again. Money couldn't be pumped into the lower loop or, we would all quit our jobs.
The wage-price spiral never happened and, hoped-for price inflation was almost absent. The only thing that brought any price inflation was; feeding the consumer more and more debt.

This has come to an end and the would-be consumer is locked out of the market.

Ever-increasing tax demands will keep him out of the consumer-goods market.


So, we did a wage and wealth transfer from the West to the East. The Chinese are eating better and, can now afford a scooter. The West is saddled with an enormous debt load and, we can barely afford a scooter.

OK, so, the world is sliding down to a global mean wage. The work force is shrinking. Productivity is rising greatly due to automation. What about jobs? What about consumption?

https://www.youtube.com/watch?v=GrGe6wB5tp0&feature=youtu.be

Crony capitalism brought us this crash. Armstrong calls it a crash of Marxism/socialism. Naturally, he considers enormous bailout for bankers to just be part of good business. The crash will go on for a long time. The State and corporatocracy are both family unfriendly. The credit system only works with a growing debt load. You can't grow the debt load with a shrinking population,,, shrinking workforce and, rising automation. Japan shows us the way.
Consumption will continue to crash and take the credit bubble with it.

[Danny B]

Crony capitalism,,,desperate banks,,,$400 trillion pension gap

The State, by it's very nature is a parasite that must do constant re-distribution to survive. Out of necessity, society allows the State to have guns and lawbooks. The producers in society wish to have a very limited State to minimise the predations. The non-producers naturally wish for an expansive State. Since the State naturally attracts more and more non-producers, it creates more and more laws to rob the producers. It all eventually blows up. The non-producers lament the inequalities of capitalism and, preach socialism. Our current system is top-down socialism for the rich. Crony-capitalism can break the system just as fast as Marxist socialism.

https://www.themaven.net/mishtalk/economics/can-we-please-try-capitalism-_5Fa97FCmEyxzNnoBhZr4Q/

I've written plenty about the rise of automation. Robots don't pay employee taxes that are used to fund public pensions. The bankers stole all the private pension money. The funding gap is growing.

https://www.themaven.net/mishtalk/economics/global-pension-gap-expected-to-hit-400-trillion-us-leads-the-way-R1rSLO12IEePt5W_mIZC5Q/

The banks are desperate for deposits and, desperate to generate fees.
"Ten years ago, Goldman made a killing by betting - alongside some of its best clients such as John Paulson - against subprime Residential Mortgage Backed Securities (and their various synthetic and "squared" derivatives) "
"Now, a decade later, Goldman is once again hoping to profit off America's sub-660 FICO population, only instead of betting against subprime borrowers, it is lending to them.

That's right: Goldman is now a subprime lender itself, because through its retail-facing bank, which both collects deposits and issues loans, subprime borrowers have emerged as one of the most important client bases of the FDIC-backed hedge fund which until just 2 years ago had no conventional, retail-facing banking operations whatsoever."

https://www.zerohedge.com/news/2018-05-03/heres-why-goldman-2008-would-be-shorting-goldman-2018

In the next crash, there will be NO possibility of a bailout. This isn't even a "hail Mary" play by GS. GS is going to walk the metaphorical plank. They have just made the plank a bit longer.

We WILL have price inflation in a few selected areas. But, when astronomical valuations come back to earth, most of what we will see is , deflation.

https://www.themaven.net/mishtalk/economics/velocity-of-money-picks-up-inflation-coming-stagflation-how-about-deflation-awDeglv6cUy-sAkSAlJDNQ/

[Danny B]

https://www.armstrongeconomics.com/world-news/central-banks/ecb-is-charging-the-banks-for-supervising-them/

https://www.armstrongeconomics.com/international-news/europes-current-economy/cologne-institute-of-german-business-warns-of-deposit-protection-may-not-survive-in-europe/

https://www.armstrongeconomics.com/international-news/europes-current-economy/london-remains-the-financial-capital-for-market-execution/

So, the blob State in America has seven times as many bureaucrats sucking up to the banks as London has. The ECB is charging $1/2 billion to supervise the European banks. As long as it generates salaries, the American and European regulatory agencies don't give a hoot what the banks do. The European banks wouldn't have so many NPLs if the regulatory agencies were actually doing their job.

The creation of the Eurozone was a bureaucratic overlay on States already burdened by high taxes. It reduced their GDP by 20%. Socialism always seems to get carried away with itself. If a little bit of tax & benefits
is good, more of the same is better.
Chart of the Day: Europe Runs on Taxes - The Sounding Line
Once again, you can't print debt-money for consumption.



So, just how long can you drive down the value of a currency before tangibles go way up.

Consumption has crashed. Manufacturing that depended on high volume must now depend on high margin to maintain profitability. With no alternative, they cut their own throats.

http://thehill.com/opinion/finance/386187-blame-our-politicians-for-the-retirement-savings-problem

http://nationalinterest.org/feature/global-debt-the-next-great-financial-crisis-25683

"While it can be argued that massive stimulus was necessary to avoid another Great Depression,"
THAT point can certainly be argued but, it is false, non the less. The stimulus was created to save the banks, crony capitalism and Marxist socialism.

[Danny B]

Unprecedented employment picture

I'm constantly trying to get my head "around" various trends to figure out how they affect the whole picture.
"Roughly 10,000 Baby Boomers will turn 65 today, and about 10,000 more will cross that threshold every day for the next 19 years.Dec 29, 2010
Automation could eliminate 73 million jobs, a new McKinsey report says

https://www.usatoday.com/story/money/2017/11/.../automation...jobs.../899878001/

Robot automation will 'take 800 million jobs by 2030' - report - BBC ...
Robot automation will 'take 800 million jobs by 2030' - report - BBC News\
China's working age population will fall 23% by 2050 | World ...
https://www.weforum.org/agenda/2016/...ng-population/

https://www.washingtonpost.com/posteverything/wp/2016/12/02/robots-wont-kill-the-workforce-theyll-save-the-global-economy/?noredirect=on&utm_term=.68b457b0913e

The article blindly goes on about how robots are going to do all the production. There isn't a single word mentioned about jobs, income and consumption. Not ONE SINGLE WORD about the mental health of people who have no job, nor, center in their lives. No mention of the young who have no job prospect. No mention of the young failing to form a household. No mention of the increasing drug use and suicide rate.
Look at the populations that receive the most welfare money. They have the most social problems.

https://www.washingtontimes.com/news/2018/may/3/deaths-despair-suicides-alcohol-or-drug-fueled-dea/

From one point of view, America has 40% unemployment.
Take the working age population. Multiply that number by the possible hours that can be worked per year. The end result is 40% higher than the number of hours actually worked.
David Stockman has a very good article laying it all out

http://davidstockmanscontracorner.com/economic-old-age-part-5-40-unemployment-aint-awesome/

Keep in mind that our current level of employment is maintained to a great degree by CB printing. Minus QE, the economy would have shrunk by more than 7%.
The work force is shrinking. The experienced people are retiring. There are few niches for new entrants. Jobs are getting more technically demanding. The State was instrumental in failing to educate the next generation.

https://www.cnsnews.com/news/article/terence-p-jeffrey/65-public-school-8th-graders-not-proficient-reading-67-not-proficient

The solution, https://www.zerohedge.com/news/2018-...ent-snowflakes

Our current system uses debt-money to support an even-increasing number of retirees and non-producers. The State borrows with no intention of repayment. After the default cascade, there will be no resuscitation of our current system.

https://www.dollarcollapse.com/plunging-birth-rates-great-news/

[Danny B]

This is completely false. The banks are desperate for deposits.The jury is still out as to whether it will be in corporate bonds, OR, credit markets.

https://www.linkedin.com/pulse/great-contagion-danielle-dimartino-booth/

Everybody has a favorite candidate for which sector of the market is going to blow first. Here is an excellent article about politicians buying votes from public service unions.
How a pension deal went wrong and cost California taxpayers billions - Los Angeles Times
The globalization of poverty, https://www.globalresearch.ca/the-gl...-order/5313987Stop and Assess - Kunstler

Venezuela and Argentina, https://www.dollarcollapse.com/argen...rrency-crisis/

Plant a garden !!

[Danny B]

Martion Armstrong,,,, mostly right

Quiet sunday afternoon.
Understanding confidence as related to inflation.
" Hence, Volcker created DELATION as capital then ran away from assets and into bonds to capture the higher interest rates. Then and only then did rates begin to decline between 1981 into 1986 reflecting the high demand for US government bonds, which in turn drove the US dollar to record highs and the British pound to $1.03 in 1985 resulting in the Plaza Accord and the creation of the G5 (now G20).

So many people want to take issue with me over how the stock market will rise with higher interest rates. It is a BELL-CURVE and you better begin to understand this. If not, just hand-over all your assets to the New York bankers now, go on welfare and just end your misery."
"To those who doubt that the stock market can rise with rising interest rates, I really do not know what to say. Keep listening to the talking heads of TV and all the pundits who claim only gold will rise and everything else will fall to dust. Then we have the sublime blind idiots who never look outside the USA and proclaim the dollar will crash and burn, not the rest of the world so buy gold and cryptocurrency you cannot spend and certainly with no power grid."

"PHASE THREE

Is when no level of interest rate will save the day. Capital simply flees the political state for the risk of revolution or civil war means that tangible assets which are immovable will not hold their value such as companies and real estate. This is the period that Goldbugs envision. At that point, the value of everything will even move into the extreme PHASE FOUR where even gold will decline and the only thing to survive is food. There, the political state completely collapses and a new political government comes into being."
I have to argue this point. "a new political government comes into being.". If we reach a point where only food has value, there will be NO Phoenix of GOV rising up out of the hot ashes. Maybe years later when the ashes are quite cold.

https://www.armstrongeconomics.com/markets-by-sector/foreign-exchange/argentina-raises-interest-rates-to-support-currency/

More Armstrong, talking about how very few people actually understand international capital flows.
"What you fail to grasp here is that there are very few of us with international experience. Local economists do not cut it and it seems that nobody else with hedge fund experience who has actually traded billions of dollars when a billion used to be a lot of money is around for consultation."
I have been called into just about every crisis since the mid-1970s.

The markets are bigger than me, and bigger than the Bank of England and ALL the central banks combined. Remember the Louvre Accord? That is when the central banks came out and tried to stop the decline in the dollar going into 1987. NEWS FLASH!!!! They failed! So, what happened? They called me again since I was the one warning them in 1985 they would unleash volatility."
"You cannot manipulate any market beyond the normal channel of daily noise. You cannot make gold rise or fall if it is out of sync with the rest of the world."
This is false because it has already been done with the London Gold Pool. It DOES work in the short termThe banks were found guilty and prosecuted. Once again, it DID work for a few years.

"Those who claim it is proven gold is manipulated to prevent a rally are delusional. You cannot do that without manipulating everything else in the world. So they manipulated the stock market up to keep gold down when the majority of analysts were bearish on the stock market since 2009?"
What a bonehead. The commodities markets were manipulated in this case. The CFTC reported on this very clearly
"The total value of gold traded in 2017 was $6.7 trillion compared to $77.6 trillion in equities and the bond market is about 3 times the size of the global equity market. Gold is just a tiny fraction of the world financial markets "
Well, I guess that he is right. Sell your gold to; Serbia, Greece, Ecuador, Mexico, Kazakhstan, Kyrgyzstan, and Tajikistan. But reportedly no one is buying gold at a faster pace than Russia. Turkey has repatriated their gold from the FED. Germany too. China is buying up anything that glitters. The private stash in India is reckoned at 24,000 tons. Turkey is the highest per-capita.

https://www.armstrongeconomics.com/markets-by-sector/foreign-exchange/pound/influence-meetings-conspiracies-as-always/

"We have been in a DEFLATIONARY mode just in case anyone reads about the real world and quantitative easing did not cause hyperinflation."
Again, what a bonehead. The stock market has tripled in the last 10 years ONLY on QE.

[Danny B]

Carry-trade unwind,,, capital flight

I agree with Armstrong that one can NOT possibly do economic forecasting if one does not follow international capital flows. A capital flow is a capital flow regardless of what artificial borders it crosses. Capital was pumped into emerging markets because they offered better returns than developed markets. This was all well and good for a while. But, when emerging markets had gorged on dollar-denominated debt, they were in great danger from a rise in dollar-interest rates. As interest rates rise from a cutoff of QE, the possibility of default in EMs goes up. As fear overcomes greed, capital flows out of EMs. The weaker EMs try to hold on to capital by raising interest rates,,,, to counteract fear with enhanced greed.

"Argentina raises interest rates to 40% Argentina's central bank has raised interest rates for the third time in eight days as the country's currency, the peso, continues to fall sharply. On Friday, the bank hiked rates to 40% from 33.25%, a day after they were raised from 30.25%.3 days ago"

Argentina can't possibly survive paying 40% interest but, that is all they have as an option. Argentina hasn't changed. Only confidence in their ability to repay has changed. The hot-money knows when a State is weak. They know when to pull out. Argentina isn't the only State with this problem.
"Looking at the growing outflows in the Emerging Markets hard dollar bond funds universe and with the Mexican Peso and Turkish currency taking a correlated pounding"
Turkey is in deep do-do and, Erdogan wants to start a war to deflect attention. He brought turkey's gold home so that it doesn't go missing if he pisses off Pox Americana.

"investors naturally move from an area of low solvency concentration (High Default Perceived Potential), through capital flows, to an area of high solvency concentration (Low Default Perceived Potential). The movement of the investor is driven to reduce the pressure from negative interest rates on returns by pouring capital on high yielding assets courtesy of low rates volatility and putting on significant carry trades, generating osmotic pressure and "positive asset correlations" in the process. Applying an external pressure to reverse the natural flow of capital with US rates moving back into positive real interest rates territory"
VERY good article comparing capital flows to osmosis.

https://seekingalpha.com/article/4170394-wilson-cycle

Japan, et al paid high interest rates. Investors borrowed cheaply in Yen and, loaned to higher interest rate markets. Free money just for shuffling pixels. This is called a "carry trade" As fear rises, the carry trade goes into reverse. The money is flowing OUT of EMs. The Europeans and Emerging Markets have been begging the FED NOT to raise interest rates. The ECB is on it's death bed and, this makes it worse,,, from the point of view of capital flight.

Here is an article about the global credit impulse. Keep in mind that every CB that prints sends liquidity all over the world. At one point, China was printing more that the ECB, FED and BOJ put together.

https://www.zerohedge.com/news/2018-05-06/link-has-been-broken-morgan-stanley-makes-stunning-claim-about-chinas-credit

America is reportedly tightening (the FED). I doubt that the ESF and PPT are just sitting on their hands. The "value" of the stock market has tripled in just a few years. I doubt that the PTB are going to cut it loose now. That is why they are channelling money through Buffett.

China created a mega bubble in credit and spent it on STUFF. EVERY single credit bubble must go into mal-investment. China is packed full of stuff that nobody is using. Most of this done to maintain employment. It remains to be seen just how good or bad this model really is.
Chart of the Day: Chinese Fixed Capital Investment is Nearly 90% of GDP - The Sounding Line
China made TOO MUCH of everything,,, just to keep people employed.

https://www.zerohedge.com/news/2018-05-02/stunning-photos-chinas-haunting-bike-graveyards

China moved more than 300 million people from the farm to the city. As society gets more automated , there are fewer job niches. If the industrial society does not have a job niche for you, you must revert to the agrarian lifestyle. At the same time, their labor force is shrinking by 1 million a year. I have no idea how this will eventually work out.

[Danny B]

Behold The Sudden Stop. Risk of Emerging Markets Collapse | dlacalle.com

https://www.dollarcollapse.com/everyone-known-argentina-implode/

Greece spent 1/2 of their modern history in default. Investors lent to them anyway. If they are that stupid and short-sighted, NOBODY should have bailed them out.
Same is true for Argentina. There is always some fool that looks a yield and NOTHING else.
So, what does all this mean?
"The interest rate currently sits at 40%. That means the Central Bank pays 40% per year on peso-denominated debt, which can imply that they expect the value of the peso to fall somewhere in the ballpark of 40% over a one year period."

https://wolfstreet.com/2018/05/06/what-happened-to-argentina-peso/

https://www.zerohedge.com/news/2018-...-where-go-here

Vids from Dollar Collapse, https://www.dollarcollapse.com/top-ten-videos/
Quantitative Tightening means that there are fewer dollar to service offshore dollar denominated debt. Rising interest rates means that the cost of service is rising. A reversal in carry-trades means that dollars are draining out of offshore markets.
Armstrong lays out the immediate and, eventual effects of the "triumph" of fear over greed. The dollar rises and destroys all other markets and currencies.

https://www.armstrongeconomics.com/markets-by-sector/foreign-exchange/the-dollar-is-not-dead-after-all/

https://www.armstrongeconomics.com/international-news/europes-current-economy/eu-demand-germany-pay-more-to-make-up-for-brexit/

[Danny B]

Rising dollar, counterparty risks,,, Nomi Prins

Italy is the tenth largest economy but, the THIRD largest bond market. This all sounds good until there is a problem and debt service becomes impossible. What about England? Specifically, London? In every credit transaction, there is counter-party risk. What about all the possible margin calls in stock markets. What about failures in money markets?


Remember that U.S. markets are sucking in liquidity from all over the world. That includes London.
But there was hope that the new reform government would do a little better than this. Funny how people never lose faith in politics itself.
And when they do, they buy gold.


What a bonehead. Cross border capital flows. Chinese hot money fleeing questionable jurisdictions.
The Australian dollar has dropped fast, putting pressure on the banks which use plenty of offshore funding. Uhh, about that off-shore funding.
In parts of Canada, the crash is well underway. Business Insider reports on Toronto, where home sales plunged 39.5% in March compared to a year ago, while prices fell more than 30%.

https://www.capitalandconflict.com/geopolitics/housing-bubbles-are-busting/

German banks had tons of exposure to WEAK Greek debt,,,, and then, it blew up. London banks have tons of exposure to weak debt worldwide.

The American banks shuffled off their bad debt to the State and, the State shoved it into the GSEs, Freddie and Fanny and Sally.
Offloading this bad debt makes the American banks look stronger. This is attracting capital from weak European banks. The dollar rises and makes offshore dollar loans that much harder to service. This is a feedback process that continually strengthens the dollar. At some point it wipes out non-dollar markets and non-dollar currencies.

https://www.zerohedge.com/news/2018-05-05/russell-napier-rising-dollar-will-trigger-next-systemic-banking-crisis

"The collusion (or coordination) that the U.S. central bank (the Federal Reserve) forged with other major central banks to fabricate money in the wake of the 2008 financial crisis.

That money went to support the U.S. financial system at first, and it later spread to markets worldwide.

Computers bring GREAT efficiency at tracking every penny. The parasitism of the financial system became ever-more obvious. Money was printed to save every investor on the planet.
The book dives into how central banks rigged markets and ultimately created more inequality and instability as a result.

They did all of this in order to subsidize private banks at the expense of everyday people everywhere

https://dailyreckoning.com/collusion-central-bankers-rigged-world/

Best read the whole article.

[Danny B]

Jim Willie and gold

Jim Willie has his own perspective and, his own informants. Here are some snippets.

April 24th: topics covered include Iran abandoning the USDollar in trade & commerce & banking with full participation in the Eurasian Trade Zone, with Iran engaged with Chinese barter but also with Russian oil sales for funding liquidity, the OPEC situation of moribund status,
the ARAMCO deal with hidden angles with respect to China, the Shanghai Gold-Oil-RMB contract as the death knell for the Petro-Dollar (the most significant financial market event in a generation), the Saudi oil purchases to China in RMB terms as the dagger in the Petro-Dollar heart,
the imminent next subprime bond crisis but much broader in scope of damage (Systemic Lehman Event) as it reaches sovereign bonds and entire national banking systems, the expectation being that Italy to be the site of global breakdown with lit fuse, pressure points to watch in USGovt debt, German relations with Russia, Saudi-China connection, Iran expanding links to Eurasian Trade Zone, and Gold market divided global prices

https://youtu.be/WNZ51ygyjm0

May 5th: topics covered include the crack in the French Govt stability which nears an internal revolt against the cabal prince Macron, the intrigue and failure of the Chinese trade war waged by the inept USGovt which must endure the backlash, the Shanghai Gold-Oil-RMB contracts which sound the death knell for the Petro-Dollar,
the drama behind the Chinese urge that Saudi sell oil in RMB terms (dagger in Petro-$ heart), the Turkish role in the BRICS Gold Trading platform which could give birth to the Gold Trade Note, the Iranian role in the Eurasian Trade Zone formation, the role of Exxon with Tillerson no longer at USDept State as they defy the Russian sanctions in Arctic production sites,
the Syrian War angles that include the tip-off of the Russians by the French Military and the curious chemical plant destroyed inside Syria by the USMilitary, the Saudi Prince MbSalman on a tour of the United States with likely high jinx coercion afoot, the Russian Rosneft Oil Consortium in its development to replace the vacant OPEC in universal non-USD oil sales by courting numerous OPEC nations

https://ochelli.com/import-tariffs-impact-war-trades/

The USDollar is to lose its global currency reserve status. It will lose its monopoly in global trade payments. Major bank structure changes are coming. Trade imbalances must be reduced by directive.
Currency devaluation will be a regular adjustment device. An end to Unipolar geopolitics has already begun. The Gold Standard is arriving in slow gradual unstoppable steps. Gold reserves must be demonstrated by nations. The Dual Universe is becoming an obvious feature in global finance. The development of infra-structure will become a key emphasis. The end of the era of sanctions is near, fast losing their impact, even resulting in increased US isolation. The USGovt has used deeply criminal methods to keep allies in line. Multiple gold prices will soon be posted, the new normal.

Global RESET Challenge: Ultimate Twist

The rest of the world sees that the rising dollar and resulting capital flight will break the system. It has long been know that the breaking of the Bretton Woods agreement would bring hyperinflation of the upper loop. The Western powers planned for the SDR to be the new standard for reserves. The R.O.W. can easily see that an SDR created by the IMF would just be more monetary enslavement by the West. Bretton Woods created the dollar as a proxy for gold. All of that depended on the honesty of politicians. NO MORE PROXIES.
Churchill made it clear that kinetic war against Germany was the answer to the fact that England was losing the economic battle. Bretton Woods was supposed to end currency wars that beget kinetic wars. It failed after just 20 years.
Gold brings stability and discipline. That is why bankers and statists hate it.
Greenspan, "This is the shabby secret of the welfare statists' tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard."
He didn't mention the bankers but, the hatred is just the same.

[aljhoa]

The rest of the world sees that the rising dollar and resulting capital flight will break the system. It has long been know that the breaking of the Bretton Woods agreement would bring hyperinflation of the upper loop. The Western powers planned for the SDR to be the new standard for reserves. The R.O.W. can easily see that an SDR created by the IMF would just be more monetary enslavement by the West. Bretton Woods created the dollar as a proxy for gold. All of that depended on the honesty of politicians. NO MORE PROXIES.
Churchill made it clear that kinetic war against Germany was the answer to the fact that England was losing the economic battle. Bretton Woods was supposed to end currency wars that beget kinetic wars. It failed after just 20 years.
Gold brings stability and discipline. That is why bankers and statists hate it.
Greenspan, "This is the shabby secret of the welfare statists' tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard."
He didn't mention the bankers but, the hatred is just the same.

https://www.memri.org/reports/egyptian-jurists-sue-jews-compensation-trillions-tons-gold-allegedly-stolen-during-exodus

Al