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Of course, wars are NECESSARY,,,interest rates
There are many millions of people who suffer (and die) and chafe under the control of the Khazarian Mafia. The press and military establishment have it all under control. War spending must grow and go on forever. Trump demanded that the Germans spend tons more money for NATO if they are so worried about Russia invading. He pointed out that the Germans send many billions to Russia for oil. So, are the Russians an enemy that justifies a big army or, NOT.
Italian infrastructure is falling apart and crashing down. Trump asks; what is the justification of spending billions on armament when the country is disintegrating.
Putin is doing his part. No matter how much provocation is piled on Russia, he refuses to respond belligerently.
Kim and Moon are trying to do their parts and end the state of war.
The one thread that you see constantly is; NO spending on infrastructure. lavish spending on "defense". In spite of the presence of NATO, "they" are pushing for a European army.
Peace must be avoided at all costs, The Report From Iron Mountain.
Trump, Putin, Xi and many others are trying to pull the world OUT of a constant war mentality and, into a mentality that does NOT include HUGE expenditures for arms. The army is still a convenient place to stash all the young males who would be shiftless and problematic in the general society. The huge arms budgets are an entirely different story.
The debt is growing faster than exponentially and, a spending solution will be forced on the world before long. NONE of this is something new. Our Bretton Woods credit card has managed to carry us along far longer than thought possible. Just the same, belligerent empires go bust.
"In reality, the United States and its Western European allies are now discovering the hard way the same lesson that drained and exhausted the Soviet Union from the creation of the Warsaw Pact in 1955 to its dissolution 36 years later. The tier of Central European nations has always lacked the coherence, the industrial base and the combined economic infrastructure to generate significant industrial, financial or most of all strategic and military power."
"Far from strengthening the Soviet Union, those nations weakened and distracted it. Today, NATO is repeating the Soviet Mistake and that fatal move is inexorably draining the alliance of all its strength and credibility."
U.S. Media’s Use of Its Collective Voice Reveals a Tragic Truth about AmericaComment
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sovereign debt Kabuki theater
All the big funds are required to follow the ratings agencies. If something is rated too low, they must sell. The plug gets pulled and, it is a self-reinforcing trip down the credit drain.
Of course, fallout is to be expected.
Thierry Meyssan wants the State to seize transnational companies.
Seize the transnational corporations to rebuild Syria?
I just don't have faith in either idea.
So investors have abandoned the sovereign debt of several States, Turkey, Greece, Argentina, Poland, Italy, et al.
REPORTEDLY, investors are buying up U.S. debt.
Japan and China are cutting way back. China MUST keep some U.S. debt so that they can sell dollars and buy Yuan if the Yuan is attacked.
Since the capital inflows are all just pixels, the Treasury can report ANY amount of inflows that it wants. America is attracting global capital because of the apparent health of U.S. sovereign debt. I seriously doubt that the reported capital inflows are legitimate.
"Britain has NEVER benefited from the EU. Your economic growth has declined ever since joining back in 1973"
"the computer pinpointed the crisis in the Euro would begin during the 3rd quarter here in 2018 where we had both a Directional Change and the beginning of a Panic Cycle."
"Note that there is a turning point showing up in the 1st quarter next year but the big one will be the 3rd quarter 2019."
"As far as price against the dollar, there is support technically in the 92 area. The very worst support is at 53, but that does not seem likely absent war in Europe."
Erdogan has no friends and, too many people read Armstrong.Comment
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Still trying to save the un-savable
Armstrong's program predicted an upturn in earthquakes beginning on the 20th. He was off.
The models at Suspicious Observers also predicted it. https://www.youtube.com/watch?v=RLvp7zXzXno&t=252sAh yes,,, losing ground.
"The renminbi has now declined 8.7% from March 30th trading highs "
" New yuan loans stood at 1.45 trillion yuan, versus a projected 1.275 trillion yuan and 1.84 trillion yuan the previous month. Broad M2 money supply rose 8.5%,"
Could there be a connection?
No problem,,, as long as the FED reports that the CIA money-laundering havens are still buying U.S. bonds.
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What are you doing in 2020?
"The turning point, according to the computer model, which was verified at the time by Australia's largest computer, is the year 2020. "At around 2020, the condition of the planet becomes highly critical," ABC said. After that, a precipitous drop in quality of life is predicted."
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TOO EARLY.
Sadly, Stockman is ignoring foreign capital inflows.
Whatever works.
As long as people continue to believe that legitimate investors are buying U.S. treasury bonds.
So sad.
So, all the millions of people and entities who loaned money to GOV will find their investments near worthless. THEY will stop spending money.
Merkel continues down the road to destruction.
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War debt,,, gold
The U.S. debt is about equal to the missing money from the Pentagon,,, $21 trillion. Jack Ma (alibaba) said that America was in huge debt because of all the wars. It's hard to argue with that and now, Netanayahooo is trying to get us in another war over gas pipelines.
Immigration, Globalization, Political Correctness: The Jewish Elites Attack On The Western World: The Two Jewish-led Globalist Camps... In Competition For Global Control
At the same time, we are told that America is broke because of all the generous promises made by politicians.
Yeah, that would be real smart. When it gets out in the wild, nothing would be safe.
Gold,
"The Large Speculator (hedge funds, managed money, trading funds) NET position is now SHORT 3,688 contracts. This is the first reported NET short position for this group since December of 2001.
The Large Speculator GROSS short position is 215,467 contracts. This is a new ALLTIME high."
"hus, with a GROSS position of 215,467 contracts, the Large Speculator category is short 21,546,700 ounces or about 670 metric tonnes."
"The Commercial Banks have positioned themselves to profit handsomely from any combination of a lower dollar, higher gold prices, lower interest rates and/or a crashing stock market."
Too many people, especially Germans, have this stupid belief that the quantity of money controls the markets. Merkel is deathly afraid of hyperinflation. She demands austerity. She destroyed Greece. Now, she intends to destroy Italy with austerity.
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Alternative to SWIFT,,,Chinese dragon has arthritis
Germany has a $1 trillion account surplus. The rest of Europe has a $1 trillion deficit. The Germans are getting very nervous because, even though SWIFT is based in Brussels, it is under quite a bit of control of America. EVERYONE wants to escape the dollar,,,, mostly because of the politicians. Germany is calling for a new global settlement mechanism that does NOT include America. I can't say that I blame them.
Keep in mind that China, et al have an independent system already.
There is also a widely used banking identification system.
All of this depends on perception.
Everybody believes that there are legitimate buyers of American treasury bonds. This is highly doubtful. Belgium is reported as buying billions. Last time that Belgium was reported to be buying U.S,. bonds, it didn't have ANY U.S. dollars with which to buy them. The the tax havens are buying them. That would be mostly C.I.A. and who knows if the sales are even legitimate.
So, the dollar goes up.
Super Mario Draghi was the only buyer of State debt of many EU States. So, that is out in the open.
The BOJ is buying all the state debt AND TONS of stocks. That is out in the open.
" New yuan loans stood at 1.45 trillion yuan, versus a projected 1.275 trillion yuan and 1.84 trillion yuan the previous month. Broad M2 money supply rose 8.5%,"
How can the Yuan be perceived as a competitor to the dollar if China prints bazillions AND, the FED prints almost nothing?
The FED doesn't need to print because investors loan it money by the truckload. The U.S. dollar is the best currency because,,, it is perceived as being the safest currency.
The better the dollar looks, the sooner that offshore dollar-denominated debt crashes.
A new reference for judging the stock market.
China pumped out bazillions of Yuan to get the Belt & Road initiatve rolling. Now, it is finding that unlimited credit creation to help out numerous States is getting too expensive.
All the major Central banks appear to be tightening. The graphs on this page are very good but, they are blurred. You have to open them in another tab.
A case of cause & effect.
Unions were created to protect the working man. Unfortunately, they protect him whether he is bad or good at work. The pipe fitters union is known for having a lot of druggies and deadbeats. Some of them do terrible work. Stick welding pipeline takes a lot of concentration. Protesters blocked the Keystone pipeline construction because the contracted company had a TERRIBLE record of faulty pipelines.
The Alaskan pipeline had to have major sections dug up and repaired because the X-ray QC people faked a lot of inspections. 1100 welds were bad. 36 of them could not be repaired and had to have a section cut out. These welds were buried and under rivers etc.
Keep in mind that 50% of the welds were done by sub-arc in Valdez.
So, America pipeline welders have a terrible reputation. The Pacific Northwest needs crude oil but, the governors refuse to have American pipefitters build a pipeline across their State. Driven by this, Washington and Oregon must import Russian oil.
We get to find where the death cross comes in. Reportedly at about 3.25--3.50%
Italian bonds are selling off AND Draghi says that he won't be buying any more after the end of the year. The new populist GOV is going to be in quite a squeeze.
10,000 boomers retire every day and, the skills gap gets worse.
You Brits are not doing very well.
"More men in the UK have died by suicide in the past year than all British soldiers fighting in all wars since 1945."
Glyco-phosphate has contaminated 20,000 sq. miles of America farmland. Now it seems that we are going to finish off the job with Fracking.
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Coca & Roundup,,,Saudi Arabia,,, Skills gap
Colombia Is Testing Drones to Drop Herbicide on Crops Used for Cocaine
The Central Banks have rescued the upper loop of the economy. The lower loop is supposed to get by on trickle-down. It just isn't trickling fast enough and, the defaults are picking up/
Each successive Industrial Revolution reduces the need for human labor. At what point does this become a recognised problem?
"The majority of baby boomers support their adult children
According to a survey from the National Endowment for Financial Education, 59% of baby boomers who are parents are financially supporting their children ages 18-39.
45% of baby boomers report having no retirement savings whatsoever."Comment
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Slide in consumption,,, Amazon to replace the banks
So, the view count has passed 250,000
I suspect that it is mostly from non-members. All the government wonks who are wondering how much longer they are going to collect a paycheck.
For all you wonks who do not understand economics and energy; energy is the master resource. If we can't accomplish price deflation in energy, all prices will continue to rise. Price inflation always outruns wage inflation so, consumption will continue to shrink. This is temporarily papered over by money printing / debt creation. China has set a ceiling on global wages in many sectors. Automation has much the same effect.
"Since all the global 0 to 64 year old population growth is among the lower middle and low income nations of the world, a closer look at their situation is merited. In short, it ain't good. After rocketing higher from 2002 until 2014, the situation is really deteriorating as the growth of the high and upper middle breaks down...without the growing wealthier markets to export to or in need of greater capacity in low cost countries, the engine is stalling in the poorer nations of the world."
China appeared on the scene as a flash-in-the-pan that prompted a lot of consumption from low prices. BUT, after they had gutted the wages of their best customers, it all came crashing down. Credit / debt growth in China was beyond all rationality because the Chinese are such avid gamblers.
"The high income nations represent 64% of global income and the upper middle income nations another 27% while the lower middle and low income nations represent less than 9%, combined. Not coincidentally, these breakdowns of global income, per group, line up very closely with the percentage of global energy consumed "
As the higher-income nations slide down in consumptive ability, they reduce their birth rate. A new awareness in China and Asia is reducing the birth rate. This "new awareness" hasn't appeared in the stupid nations. Falling birth rates and the demographic crash are incompatible with growth of the debt bubble. Everything is being papered over for the short term.
U.S. bank profits have hit a new record.
MANDATED BENEFITS
"The SF Chronicle casually notes in parenthesis, "By the way, the poop patrolers earn $71,760 a year, which swells to $184,678 with mandated benefits."
Finance doesn't like the new lefties..
China needs new liquidity to feed the tiger,,,,, so that the tiger doesn't eat the rider.
Wait, what about all the debt that the MUST roll-over?
That is AFTER they increased the money supply by 8.6%
Soon to be followed by a Saudi currency collapse.
Western banks will naturally attack Russia when the time seems right. Russia is moving to block that.
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Yield curve and refi of junk
And what a FINE recovery it is. Powell is pedal-to-the-metal on rate hikes. DAMN THE TORPEDOES, FULL SPEED AHEAD. Ah, those torpedoes,,,,
I found some comments that I can not corroborate.
"As pointed out yesterday by Simon Black via the Wall Street journal 60% of all Russell 2k corporations carry junk bonds status.
Another 37% carry a BBB bond rating."
"That's right people 97% of all Russell 2k corporations have the lowest investment grade rating or junk.
Combine the above with the fact that I think around 40% of R2K companies are not even cash flow positive."
Whatever the reason, nobody wants bonds.
Bond spread, "And the 2s10s spread is now in the teens for the first time since Aug 2007..." Why does that date ring a bell? Here is a chart of the spread between 10 year and 2 year.
So, they refuse to refi but, they need to roll over junk-rated debt.
Yield-curve inversion isn't an infallible predictor of a crash but, it has been pretty accurate.
China Inc. is an export driven economy. The shrinkage of the middle class around the world is death to their models. As the global mean wage bites deeper, they will have to print more and more . This brings them more capital outflow AND, they have to print more.Comment
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Powell's big bet,,, curve inversion,,, Turkey
The focus right now is; rising U.S. interest rates and, falling everything else. Bernanke conducted a huge experiment to see if mammoth money printing could stave off a recession. Powell now has an experiment of his own. Raising rates will wipe out American corporate debt service. Raising rates will wipe out emerging market currencies. Raising rates attracts capital to America. What will be the balance point?
Rising rates are a direct attack on European banks. Bond buyers are in the driver's seat. The ECB is screwed when it comes to buying bonds. They have to do it out in the open.
The U.S. treasury can depend on the PPT, ESF and CIA. The FED has visibly bowed out of the market, to create confidence. After all, if private investors have confidence in U.S. bonds, then, everybody else should have confidence.
Emerging markets desperately need dollars to service dollar-denominated loans.
"the total dollar denominated debt is 11 trillion outside of the U.S., and that's up 83% since 2009. And one-third of that is owned by emerging markets."
"There's an increase of $70 trillion worth of global debt since 2007. That's an increase of over 40% and it all hinges on one thing, Mike. It all hinges on the fact that interest rates can never be allowed to rise much above zero, for if they did the entire artificial edifice comes crashing down."
Ah yes, but, where does it crash first? Powell is making big bets on this.
"the spread between the 10-year note and the two-year note is just 22 basis points. That is by far the lowest it's ever been outside of the great recession. And the reason is very simple why we're concerned about this. Nine of the last ten times this has occurred since WWII, the economy entered into a very steep recession,"
"The yield curve is inverting as it always does because the Fed is raising short term interest rates. But here's the question, why is it that the long term interest rates across the world are falling still, if we are in a global synchronized boom or recovery as the carnival barkers like to call it? I mean, why is the 10-year note now well below 3%? It's just about 2.83% today? Why are the long-term bond yields falling in the spectrum of global growth"
"They'll go in September, they'll probably go in December. That's my best guess. Then the long bond will retreat back towards where it was in 2016, about 1.4%, and the yield curve will be very, very inverted, steeply inverted. And what happens when the yield curve inverts? Why is important? It's a good question that you asked. It's because the credit channel gets shut off. That liquidity pump gets turned off. "
Corporate America desperately needs dollars to roll over debt. Emerging markets desperately need dollars to service debt. Will the 2 blow sequentially OR, at the same time?
"people are talking about the stock market being cheap because it's only 17 times next year's earnings." "corporate debt as a percentage of GDP is at a record high, and the corporations took on this debt to buy back shares."
"The Fed has no choice, as I mentioned, the year on year rate of consumer price inflation is up 2.9%. Now, that's even way above the Fed's fatuous 2% target. So, the Fed has no choice but to react or they risk a spike in long-term borrowing race, which is the last thing they need. Now, a spike in rates would mean to the yield curve didn't invert, but it would also mean that the housing market, which is on life support, is going to roll over big time."
"the market cap of equities as a percentage of GDP is 145%. Now, it was 110% in 2007 and that ties the record set back in March of 2000, the 145%."
"China had two major credit waves since 2007. They had a huge one in 2008, another one in 2015 and 2016. They now have the most destabilizing credit bubble in the history of the planet earth. And they're sitting on a $30 trillion in debt. That debt is up 56% in the last five years. "
Pento: Trade War to Continue, Global Debt Default and Higher Interest Rates Unavoidable
It will get worse.
So, will Powell do the planned rate hikes to head off price inflation?
Stay tuned for further developments.
Mexico gets a big screw job from American agriculture. Mexico isn't price competitive because American farmers get $ 20 billion in subsidies. Don't call this a tariff?
The FED sent over $8 trillion to European banks in response to the 2008 crash. That was the Bernanke-bet that he could fix everything by pumping in liquidity. The French government spends 57% of the GDP. THAT is called socialism. No amount of money can fix socialism.
What is true in France is also true in Illinois.
Yep, Erdogan spent to much buying votes and building the second Ottoman empire.
"After decades of near-100% annual inflation, the Central Bank of Turkey knocked six zeros off the lira on 1 January 2005, making one new lira worth $0.74. Today it is only $0.15, having lost nearly half its purchasing power this year alone."
"Indeed, loss of confidence in unbacked currencies is the greatest threat to their credibility, a fact which almost all governments and their central banks are reluctant to accept. Central bankers are all trained in mathematical economics, which allows no room for subjectivity in currency valuation, so when their currency is rejected, they are always surprised."
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There is NO CURE for automation. When the credit collapse hits sovereign bonds, the government will collapse. The paper-pushers will not be in demand in the labor market.
The ECB is the only entity buying Italian bonds. They plan to stop this about the end of the year. The Italians want the ECB charter changed so that the ECB can buy bonds in perpetuity. This goes completely against German where they mistakenly believe the Quantity of Money theory. Armstrong has shown the theory to be BS. He has also shown that the theory of fixing everything with austerity is pure BS also. Will the Germans relent? Who knows?
Venezuela is following in the Zimbabwe model.
The world crash in 2008 was caused to a great degree by the slide down to a global mean wage. All the debt held by the working class had to be bailed out. The bailout consisted of pumping liquidity into the upper loop after the lower loop had crashed. Wages never recovered. The lower loop soldiered on by borrowing LOTS more money. Nothing was actually fixed for the lower loop.
OZ gets special mention for burning through a list of Prime Ministers very quickly.
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Well, they haven't just been sitting around. Keep in mind that SWIFT is based in Brussels. The broad hints from Germany and Britain claim that America controls SWIFT to the detriment of Europe. I expect that the feds use SWIFT to punish Germany for Nordstream. The Europeans are presently creating an alternative to SWIFT to escape control.
Add to this, the Russian system, MIR. The Chinese have their own system. ALL of these systems route $trillions away from passing through New York banks. I expect that the N.Y. banks will eventually go up in a cloud of smoke.
It's not just the NYC banks.
The London banks want unrestricted access to European markets.
The instigator of all the Russian sanctions is an Israeli born woman. The sanctions are all part of the pipeline wars. BUT
NOPE, they want unlimited bond purchases from the ECB. They don't want the music to ever stop.
Priced out by hot-money flows.
That boogeyman (pl) would be Greenspan, Bernanke, & Yellen
Obviously, politicians can not be trusted. I've made the claim that bonds will eventually be backed with gold and, migrate to the blockchain. There is a bit of a start in that direction.
Thejuicemedia has some great vids. here is "trickle down economics".
Apparently, millennials don't want to be landscapers.
Jim Willie has some articles. Dunno about aliens.
Israel apparently holds final veto power on American ambassadorial appointments.
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The Ron Paul Institute for Peace and Prosperity : Turkey Now, America Later?
"Meanwhile, South Korea is pursuing good relations with the North regardless of US backtracking. Washington is reportedly considering sanctions on its South Korean ally if Seoul continues on a peace path with Pyongyang. "
The wars must go on no matter what.
"The neocons are not going to give up on their obsession with "regime change" in Syria. Over the weekend National Security Advisor John Bolton all but called for another "chemical attack" in Syria to justify what he promise would be a massive US strike on Damascus."
Striking Damascus is about the worst thing imaginable.
So, we stop spending.
The Yuan is gradually being brought in as a reserve currency.
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