Economic pressures

[Danny B]

https://www.dollarcollapse.com/are-treasuries-finally-the-short-of-the-decade/

You can see why U.S. GOV is trying to push MMT to the fore AND, why bankers and money renters hate the idea. The only way that the money renters can stop MMT is to boycott sovereign bonds. If they do that, they make it easier for the State to rationalize the necessity of MMT.
As debt-service costs go higher, we get that much closer to needing a printing press that is independent of the FED. GOV has the guns and the lawbooks. Shorting U.S. sovereign debt is not a good plan.


Why do I get the idea that he did not say it nicely?

GLD is paper gold. At some point, the paper gold market will break down. With 6400 tons of paper gold traded every day, the crash will be a flash that nobody can escape.

If the cost of energy goes up, everything else goes down. Trump has to work overtime to hold down the price of energy.
Armstrong said that the financial capital of the world will move to China in 2032. Presumably, Trump wants to stop this.
"This new trade war will get ugly fast and the world economy, which is already slowing, will be collateral damage. Given the trillions in dollar-denominated debt in emerging markets, a full-scale foreign sovereign debt crisis could be in the making if emerging-market countries cannot earn dollars from exports to pay their debts."

https://dailyreckoning.com/trump-vs-the-world/

So, as Trump cuts back on Trade with emerging markets, they have a very difficult time earning dollars to service dollar-denominated debt. He cuts in to their earnings at the same time that they need uninterrupted earnings.
HOPEFULLY, we will see the inception of cyber-war and economic war displace kinetic war.

[Danny B]

Credit Bubble Bulletin : Weekly Commentary: The Ignore Them, Then Panic Dynamic

https://www.peakprosperity.com/pain-is-inevitable-suffering-is-optional/

All the charts show that the markets have topped out. Wall Street demands more cash to keep the party going a bit longer. I suspect that Trump will let them choke.

Mother Nature does NOT do extreme centralization. The risk of pandemics and plagues is too high. Air travel has made the risk of plagues much higher. Same for antibiotic resistance. Charles Hugh Smith writes about both the crash in farming and, the rise of plagues.
oftwominds-Charles Hugh Smith: Superbugs and the Ultimate Economic Weapon: Food
Rural America is doing very badly. The ongoing floods will greatly reduce food crops.

https://www.zerohedge.com/news/2019-05-20/rural-america-verge-collapse

ice age farmer :: grand solar minimum crop loss map

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

The Chinese people are well on their way to avoiding banks completely just by using direct payment apps to the vendor.

https://www.youtube.com/watch?v=SJh_Uir5EMI

It looks like internet buyers of property are going to be a big problem in the future.

https://www.youtube.com/watch?v=TYxgY9_AEPM&t=119s

Eisman says that the crash will probably take out all the banks except for the big 5.

https://www.youtube.com/watch?v=6aMvJFEjPWw&t=30s

[Danny B]

Trump??? Europeans are turning the suicidal ship of state.

In December, Powell made a bit of a move that markets did not like. They crashed and, he had to walk back his actions. Now, Trump has a trade war going and, markets want it to END. Also, they want a LOT more money pumped into markets.

I guess that we have to wait and see.

Certainly, the money renters face danger.
Good graphs showing that stocks have turned.
You Know Things are Falling When... - The Great Recession Blog
So, just how fast will investor confidence turn?

Here is a graph that is painfully clear.

https://twitter.com/KathyJones/status/1131594645488582662/photo/1

https://upfina.com/is-this-the-first-recession-warning/

Intervention is the lifeblood of the markets. What will Trump and the FED do?

https://www.zerohedge.com/news/2019-05-26/intervention-coming

The trade war will crash the markets. What will Trump do?

https://www.zerohedge.com/news/2019-05-26/if-trade-war-doesnt-end-soon-it-will-cause-enough-economic-erosion-crash-markets

Huawei was the flagship of the Chines tech pirates.

https://www.zerohedge.com/news/2019-05-25/huawei-spent-all-their-resources-stealing-stunning-new-expose-says

What will Trump do?

The State, by way of crony capitalism and legislative capture has now made housing unaffordable. Energy is fast becoming unaffordable for many people. Climate change is destroying crops worldwide. What happens when food is unaffordable?

https://www.zerohedge.com/news/2019-05-25/heres-proof-how-cpi-underrepresenting-food-inflation-40

Three Charts Show Millennials Are Nowhere Close In Buying A Home

There is very good news from Europe. Farage / Brexit is trouncing everybody. LePen has kicked Macron in the A$$. afD is doing well in Germany. The tribes of Europe are bing emphatic. They refuse to be subsumed by the garbage pouring in from garbage countries. Merkel won the Kalergi Prize for her work at destroying Germany with so called migrants. They wanted to migrate because they had screwed up their home countries.
Even Greek Prime Minister Alexis Tsipras has called a snap election because of disappointing results for his party. He really screwed his fellow Greeks by going along with the troika of executioners. There will be SO many euroskeptics in the European parliament that it will truly melt down,,,, Just as Armstrong guaranteed them it would happen back in 1987.

The Brexit party is going to have quite a party when they get to Brussels.

https://www.armstrongeconomics.com/international-news/politics/why-is-brexit-important-to-usa/

Evidently, D.C. does NOT like transparency

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

Headlines
In Deep State Coup Attempt, All Roads Lead Back To Barack Obama & HRC
Let's Call The Russian Collusion 'Hoax' What It Really Is - Treasonous Sedition
America's Cities Are Unlivable - Blame WealthyLiberals And The One Percent
NYT Admits Dem-Run Cities Unlivable - Dr. Drew Predicts Major Epidemic This Summer

Pence Tells West Point Graduates They Should Expect to See Combat
Yeah right, ground troops are going to invade somewhere.
The army talks about virtue. The soldiers talk about horror.

https://www.zerohedge.com/news/2019-05-26/army-virtue-tweet-backfires-1000s-expose-heartbreaking-horrors-war

[Danny B]

https://www.bloomberg.com/news/articles/2019-05-23/expats-millions-in-life-savings-disappear-from-mexican-accounts

The Mexican economy is shrinking and banking fraud has doubled since 2014. This is just a note for anybody who may have a deposit in a Mexican bank.

The Yuan is getting weaker and the sharks are smelling blood. China has warned them NOT to short the Yuan. The typical way for a State to support their currency is; sell off dollars or gold and buy up home currency on the international markets. BUT, China and the emerging markets are desperate for dollars. Scrounging around to get dollars and, buy Yuan will just strengthen the dollar. They can punish the Yuan shorts but, it will cost them. The stronger dollar will make it that much harder to service dollar-denominated debt.

https://www.bloomberg.com/news/articles/2019-05-26/china-warns-traders-of-huge-loss-if-they-short-the-yuan

How about that?
This is a re-post of a vid from Bloomberg.

https://www.youtube.com/watch?v=SJh_Uir5EMI

DHL is doing drone delivery in China to cut way back on cost of delivery. The whole world is getting more competitive and trying to get more efficient.
Just imagine what would happen if Amazon, for instance, took direct payments outside the banking system. Everybody else would have to follow.

Here is a side note from China. The Chinese are big believers in LUCK. Somebody tossed coins into a jet engine,,, for luck before the flight.

https://www.cnn.com/travel/article/china-new-airports/index.html

When China's air industry hits the news, stories are typically centered on passengers going rogue, punching each other, trying to wrestle open emergency doors mid-takeoff or dangerously tossing coins into airplane engines for luck.


I'm sure that this report is just a mistake.

[Danny B]

QE as a TEMPORARY fix for the global mean wage

Marin Armstrong has a computer program that has all the history of the world and, receives the news from all the RSS feeds. Just the same, he is missing the big picture.
The West was a high-wage & high-price economy. The BRICs forced a low global mean wage on the world. The bankers absolutely need the high prices to be maintained to preserve the notional value / price of all the stuff they hold. They do not care about high wages for the consumer. The West is on it's way to becoming a low-wage & low price economy. This would wipe out the assigned, artificial value of just about everything. These current prices / values are ONLY maintained by enormous, sustained liquidity injections from the Central banks.

DANGEROUSLY RIDICULOUS: The World Economic Forum Says We Need $100 ...

https://www.businessinsider.com/world-economic-forum-100-trillion-credit-2011-1

Jan 20, 2011 - World needs $100 trillion more credit, says World Economic Forum ... After all, there were only three million foreclosure filings last year in the US,

Global debt hits a new record at $247 trillion - CNBC.com

https://www.cnbc.com/2018/07/11/global-debt-hits-a-new-record-at-247-trillion.html

Jul 11, 2018 -

All this liquidity is created to hold off defaults that would bring true price discovery. We already have true wages. "They" want to hold back true prices. The State has gotten just too many dependents. They can't afford this anymore. QE has reached it's practical limits. MMT is slated to take over liquidity creation. The bankers are aghast at the idea that GOV would stop borrowing from them. What they don't seem to realize is; It is ONLY CB liquidity that has kept consumption going.


Globalism has only benefited 6 STATES. It has greatly benefited the bankers because they are first in line for the liquidity injections.
In this article, Armstrong defends globalism,,, no surprise. He has stridently proclaimed that QE has destroyed public bond markets. Did it never occur to him what would happen if all QE was stopped?

https://www.armstrongeconomics.com/world-news/world-trade/world-trade-competitive-advantage/

"Here are the share markets based in euros. All peaked in 1999 to 2000, except Spain which entered the euro late. How any analyst could recommend Europe two years ago was just nuts. This demonstrates that they do not understand international capital flows or the importance of the currency in making such forecasts."
"Now, look at the European share markets that are NOT in the Eurozone. They have all made record highs. The difference has been the currency and regulations pouring out of Brussels with self-interest in maintaining the European Project, even though it has failed."

https://www.armstrongeconomics.com/markets-by-sector/foreign-exchange/world-view-v-domestic-why-it-has-been-always-wrong/

The Eurozone project is a full-employment program for bureaucrats. It shrunk the GDP of it's member States by 20%. At the same time, it is an attempt by the fascist corporatocracy to wrest all control away from the people.

As long as the liquidity injections continue, there is a chance that the bankers can hold back true-price discovery. All this currency inflation is gradually bleeding over to the lower loop and causing price inflation. The continuous price inflation causes an effective reduction in purchasing power / wages. The CBs print to hold off defaults by people who depend on wages.
Since housing is a major store-of-value for the working man AND, an investment target for the upper loop, it is a good indicator of financial conditions.
In 2005, there were 74.93M owner-occupied housing units. In 2018, there were 79.36 million owner-occupied housing units. All that hot money buying houses is driving up rents.

Armstrong writes about the recapitalization of Freddy and Fannie.

https://www.armstrongeconomics.com/markets-by-sector/interest-rates/fannie-freddie-to-go-public-in-2020/

The average wage will no longer buy the average house. Armstrong writes about taking Freddie and Fannie private and, recapitalizing them. There is a very important note in the article.
"Moreover, we face a period where the interest rate is going to enter a major divergence. Central banks will be forced to create interest rate caps on sovereign debt, assuming people will buy them at these low rates of under 3%. This all hinges upon confidence. When we begin to see economic stress in the sovereign markets, such as in Europe with the ECB unable to stop QE, sovereign rates will become merely artificial and irrelevant. The ECB moved to negative interest rates but that did not lower private interest rates."

There you have it. The death knell for sovereign bonds. BUT, Armstrong theorizes that private debt will command a higher interest rate than the "capped" sovereign bond rates. NOBODY will buy sovereign bonds. Draghi has already show that the ECB can't stop printing. Any kind of divergence in interest rates between public & private debt will ensure the rollout of MMT.
Armstrong seems short-sighted in his projections. Public debt is strained and ballooning because of the lack of earning / spending power. That extra $247 trillion has papered over the problem temporarily. The QE money filters down into the lower loop very slowly. It did nothing for wages and just caused price inflation to strain the working man.
So, what is the alternative?

The Fed caused 93% of the entire stock market's move since 2008 ...
https://finance.yahoo.com/.../the-fe...rket-s-move-si...
Naturally, Wall Street is DEMANDING more QE.

What will Trump do? All the king's horses and all the king's men can NOT put a bubble back together again.

[Danny B]

Chaos everywhere.

I'll start with Kunstler to set the grim mood. He has always been a peak-oil guy. America has long ago reached peak-cheap-oil in the lower 48. Big Oil refuses to drill the enormous proven reserves in the Gull Island area of Alaska.

https://kunstler.com/cluster****-nation/rumors-of-war/

The elections in Europe REALLY threw things into chaos,,, along with other recent problems.

https://www.dollarcollapse.com/stumbling-towards-chaos/

Assorted headlines.

BUY OUR BONDS !
Nope, don't even worry. That won't cause any kind of revolt.

How do you radicalize NIRP?

These investors are NOT in a frying pan. They are in a pan with very deep sides.


He's worse than McCain.

Those NSA tools got out into the wild and, there's no putting the evil Genie back into the bottle.
The markets are headed down and, Wall Street is screaming for more QE and a rate cut.
If Trump is going to continue to attack China, he will do it indirectly by crashing their markets by restricting liquidity. They won't have dollars to service dollar denominated debt. We shall see.

China did production without consumption. All those ghost cities are stranded assets that are losing value.
There may be as many as 64 million empty apartments in China.Jun 26, 2018
A State-directed economy has always been a bad idea.

[Danny B]

Brexit,,,women in politics,,,Anti-competitive taxes

Naturally, I have to write about Brexit,,, everybody else is.
Crosscurrents.
Fleeing a Sinking Ship: New York Becomes World's Financial Centre Due to Brexit

https://sputniknews.com/business/201905281075417975-brexit-london-financial-centre/

OK. so money is draining out of the finance center.

Globalist Elites Rejoice As Brexit Party Rise Increases Odds Of A "No Deal" Crisis

https://www.zerohedge.com/news/2019-05-28/globalist-elites-rejoice-brexit-party-rise-increases-odds-no-deal-crisis

NOPE, there will be no phoenix rise up out of the ashes of Great Britain. There will be a cooked bird unfit to eat.

Britain imports 50% of their food. The idea is; they won't be able to pay for imports.

https://sputniknews.com/europe/201902191072559607-brexit-leeks-spam-peaches/

GREAT graph, https://moneymaven.io/mishtalk/econo...0igtWCJABnNgA/


What Makes the Nordic Countries Gender Equality Winners? | HuffPost

https://www.huffingtonpost

Women in Nordic countries reportedly experience high levels of rape ...

https://www.businessinsider

Is Sweden's feminist agenda working? - BBC News - BBC.com
https://www.bbc.
Women should never been allowed to vote. To many of them vote with their feelings instead of their brain.
Look at the failures of May, Merkel,,, along with the Prime Minsters of Denmark, Iceland, Finland and others.

http://content.time.com/time/specials/packages/completelist/0,29569,2005455,00.html

https://www.zerohedge.com/news/2019-05-29/rabobank-biggest-explosions-are-still-come

https://www.armstrongeconomics.com/world-news/world-trade/world-trade/

[Danny B]

Lost decades,,,justifying QE,,,wealth

It's pretty quiet while everybody digests the reality of the populist revolt in Europe. The Kalergi plan calls for the replacement of native populations in Europe with dumb, brown people. Merkel won the Kalergi plan for her part in the destruction.
Teresa May has not been a slouch either.
Violent crime in London SURGING under Sadiq Khan claims damning new report
https://www.express.co.uk
They don't have guns so, they have to make do with what they have.
Ten charts on the rise of knife crime in England and Wales - BBC News
https://www.bbc.com
Police officer numbers hit record low as reported crime rises by 14% in ...
https://www.independent.co
Just wait til all the money pulls out.


The primary causes of Russia's population decrease and loss of about 700,000 to 800,000 citizens each year are a high death rate, low birth rate, high rate of abortions,
Seems like everybody is having a population decline. Population is falling in most of the world and, the economic system just can't cope.

All the news and charts show that we have entered a new recession. News travels fast and, greed has turned to fear.


Crony capitalism has meant that nobody can afford to have kids. The economy shrinks. The money renters need ever-more QE. They brought it on themselves.

Originally, we were cursed with an academician named Bernanke who had a sure-fire cure for economic problems. later, we got a UCLA economist in charge of QE.
"Potter's arrival was most notable for not only taking over the Fed's QE baton from Sack, currently a director at quant trading giant DE Shaw, but because his arrival also marked the start of a multi-year crash in the VIX future, which collapsed the month Potter took over and has hit ever steeper lows ever since (with the exception of the occasional VIX explosion)."
FED chairman, "investors really do understand now that we will be there to prevent serious losses. It is not that it is easy for them to make money but that they have every incentive to take more risk, and they are doing so. Meanwhile, we look like we are blowing a fixed-income duration bubble right across the credit spectrum that will result in big losses when rates come up down the road. You can almost say that that is our strategy."

"The Federal Reserve Bank of New York today announced that Simon Potter, executive vice president and head of the Markets Group, and Richard Dzina, executive vice president and head of the Financial Services Group, will be stepping down from their respective roles effective June 1, 2019."
June 1,,, why does this sound like they are being forced out?

"The New York Fed will conduct a broad and thorough search for their successors."
Does this sound like stalling?

https://www.zerohedge.com/news/2019-05-28/head-plunge-protection-team-quitting

SO, is Trump going to print everything that Wall Street is demanding or NOT?

Armstrong, "The US military budget comes in about 4% or twice that of the Roman Empire. The Roman Empire lasted far longer than any modern state for it seems to have been much more tolerable of a burden, whereas the U.S. military budget will be around 20% at times of total expenditure."

QUESTION: You do a lot of comparison to the Roman Empire. What was the size of the government relative to GDP? Can you estimate that?

. The US military budget comes in about 4% or twice that of the Roman Empire. The Roman Empire lasted far longer than any modern state for it seems to have been much more tolerable of a burden, whereas the U.S. military budget will be around 20% at times of total expenditure.

The primary purpose of my investigation into the monetary system of the world is very simple. The political unrest ONLY rises when there is economic tension. Turn the economy down and you will get historically civil unrest. Additionally, it is interesting to see what policies produce the best and worst results. Augustus (27-14 AD) created a real land boom as he issued a tremendous amount of coinage creating a booming economy. He was followed by Tiberius (14-37 AD) who imposed austerity and issued very little coinage by comparison. That resulted in an economic depression in 33 AD and this was in part reflected in the Jewish rebellions over taxes."

This is the road that China is trying to avoid,,, REVOLUTION. Trump is doing all he can to bring it about. QE is a backdoor method of pumping money into the economy to avoid crashing austerity / crashing taxes. Taxing is deflationary to those who don't have the political connections to avoid taxes.
Earlier this year, ITEP reported Netflix and Amazon paid no federal taxes. Other companies on this list include Chevron, Delta Airlines, Eli Lilly, General Motors, Gannett, Goodyear Tire and Rubber, Halliburton, IBM, Jetblue Airways, Principal Financial, Salesforce.com, US Steel, and Whirlpool.Apr 11, 2019
60 Fortune 500 Companies Avoided All Federal Income Tax in 2018 ...
https://itep.org/60-fortune-500-comp...x-in-2018-unde...Education and work ethic. Most of the muslim countries turned their backs on education years ago. As the demands of the workplace turn to people with great cognitive abilities, the lazy and ignorant people fall further behind.
" A consumer-based economy creates jobs and provides a stronger economy."
This sounds real good. How do you demand decent wages when Robby the robot is breathing down your neck?
So, the wealth of nations is people.
But, the population is falling.

[Danny B]

Zero Hedge articles

Well, there is certainly no shortage of claims and conner-claims and confusion. I often quote stuff from articles at zero Hedge. Here are some headlines. You can follow up on whatever interests you.

"This Is A Black Swan Event": Futures, Peso Tumble As Trump Unleashes Tariffs On Mexico "Until Illegal Immigration Stops"
"United States will impose a 5% Tariff on all goods coming into our Country from Mexico, until such time as illegal migrants coming through Mexico, and into our Country, STOP."
In all fairness, the port of entry at Tapachula in southern Mexico is very small and easy to control. The Mexicans have been giving a lot of aid to Central Americans who want to come here.
New Satellite Imagery Reveals Chinese Navy Simulating An Invasion On Taiwan
U.S. Will Sell $1.42 Billion Worth of Arms to Taiwan | Time

Kim Jong-Un Executes Four Officials Over Failed Trump Summit Hard core

Trade War Bites As China Manufacturing PMI Tumbles Back Into Contraction
...much worse than expected.

Doing More Of What's Failed Will Fail Spectacularly
Uber Reports Record Cash Burn, $1 Billion Loss In First Quarter As Public Company
Short Sellers Are Ripping Uber Apart

Cryptos & Crude Crack As Credit & Yield Curve Collapse Continues
Which Chinese Banks Will Fail Next?
Here is a list of regional banks that have delayed publishing 2018 reports,
MAGA, baby
Treasury Yields Tumble As Pence Warns US "Can More Than Double" Tariffs On China
I doubt that anybody has given much thought to collateral damage.
China Accuses US Of "Naked Economic Terrorism," Will "Fight Until The End"
The end of WHO?
Credit Flashes Warning For Stocks As Investor Outflows Soar
...traders yanked almost $429 million from HY funds
Pending Home Sales Suffer Worst Decline Streak Since Financial Crisis

Italian Yields Jump As Salvini Threatens To Crash Government
Just DO IT!

Technotyranny: The Iron-Fisted Authoritarianism Of The Surveillance State
PIMCO: "This Is The Riskiest Credit Market Ever, Central Banks' Control Over Markets Is Coming To An End"

https://www.dollarcollapse.com/negative-interest-rates-terrifying-truth/

What is missing from the analysis is; Money pumped into the upper loop does nothing for the lower loop. Wages is the avenue for inflating demand in the lower loop.

PBOC Panics, Floods Market With Liquidity As Interbank Funding Freezes After Baoshang Seizure
The Chinese can't afford a stampede.
Dow Loses 25k As Major US Equity Indices Break Below Critical Support
Lastly, here is an article at ZH that really lays into the younger generation.

https://www.zerohedge.com/news/2019-05-28/snyder-random-encounter-diner-memorial-day-shows-exactly-where-america-heading

[Danny B]

Global realignment,,, Mexico,,,disinflation,,,S-curve

I forgot to include the link to Zero Hedg's front page.

https://www.zerohedge.com/

'Not Winning' - Collapse In Global Trade Escalates: Imports -2.7%, Exports -4.0%
"Capital goods are the US's largest exports and these fell 6.5 percent in the month to $44.3 billion."

https://www.zerohedge.com/news/2019-05-30/not-winning-collapse-global-trade-escalates-imports-27-exports-40

https://www.zerohedge.com/news/2019-05-30/auerback-american-global-hegemony-breaking-down-heres-what-comes-next

https://www.zerohedge.com/news/2019-05-31/if-you-werent-worried-worry-now

https://zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com/s3fs-public/styles/inline_image_desktop/public/inline-images/fwd%20looking%20measures%20of%20inflation.gif?itok=VQj_cqSf

https://www.zerohedge.com/news/2019-05-30/russian-jets-unleash-hell-idlib-after-ceasefire-talks-turkey-fail

Smith weighs in on the S-curve.

http://charleshughsmith.blogspot.com/2019/05/lesson-of-s-curve-doing-more-of-whats.html

"Credit offers a cogent real-world example. When credit becomes available in a credit-starved economy, it generates a rapid, sustained expansion as credit-worthy borrowers borrow and spend on new productive capacity, consumer goods, housing, etc., all of which further drives expansion."
"Either way, credit expansion stops: either lenders prudently refuse to issue credit to risky borrowers and ventures, and credit expansion grinds to a halt, or they foolishly lend money to borrowers and ventures which predictably default, triggering a credit crisis that brings imprudent lenders to their knees and triggers cascading defaults as declining asset prices push marginal borrowers into bankruptcy."
If lenders refuse to extend credit, just print up free money.

[Danny B]

the reset,,,Regulatory capture blocks debt-free money

Communication is amazingly fast and, changes are coming amazingly fast. 300k
Christine Lagarde of the IMF said that the world is going to have a big "reset".
Jim Willie talks about this reset.
https://www.youtube.com/watch?v=5-7b3E5Uv4c Long vid.
Jim Willie: Trump, Putin & Xi Secret Reset Meetings To Beat The Globalists And Avoid WWIII

https://ellenbrown.com/2019/05/31/the-bankers-power-revolution-how-the-government-got-shackled-by-debt/

Regulatory capture is nothing new. We have paid the bankers $trillions for the use of our own money. We're coming to the end of a credit super-cycle. The CBs are printing like mad to uphold the nominal price of the instruments that they hold. But, without decent wages and a growing population, GOV will have QE to infinity. Governments worldwide now face the threat of starvation and revolution. They are ramping up surveillance and control but, that won't be enough. The world has to end the wars and other useless drains on the economy. We have to find another way to stimulate the economy besides ongoing destruction. There just isn't enough jobs / work to go around BUT, war is no longer the answer.


Armstrong writes about religious war in Europe.

https://www.armstrongeconomics.com/world-news/war/cycle-of-war-religion/

[Danny B]

agravation

I wrote a long, detailed post and, near the end, the page just disappeared. I put quite a bit of time into it.
I started over and, after the first paragraph, the page disappeared again with touching any key.
I don't fine it easy to compose in mail or notebook because it wants to put in a big blurb instead of just a link. I'm not completely surprised. I've often had trouble posting here.
I'll try again in the morning.
It was a pretty good post.

[Danny B]

Trump as executioner

There are just TOO many bots on this board. It is a pain to do this in mail.

In 1934, the exchange stabilization fund was created. It was a fund created for the use of the president that would not be subject to the approval of congress. It specialized in currency manipulation.

In 1988, President Reagan created the President's working group on markets, other wise know as the plunge protection team. The PPT is the main avenue for the president to pump up the finance industry.
The secretary of the treasury participates in both funds.
Every time that the markets fall, they get mysteriously levitated by some unknown source. So, while the Federal Reserve is very reticent to pump up markets,,, and, thereby preserve it's reputation, somebody else is inflating like crazy. Both the ESF and PPT are under the direct control of the president.
The FED didn't necessarily have to pump money into the markets. It could get much the same effect by creating no-loss guarantees for stock speculators.

The "Greenspan put" refers to the monetary policy approach that Alan Greenspan, the former Chairman of the United States Federal Reserve Board, and other Fed members exercised from late 1987 to 2000.

In effect, it promoted heavy risk taking. The runup to the dotcom crash was preceded by investors throwing money at unicorns because there weren't enough legitimate opportunities. By creating a no-lose floor under stocks, Greenspan promoted inordinate risk taking.
In recent years, the FED has been responsible for 93% of the rise in the stock market. Who knows what effect the ESF and PPT have had.

Trump talks up what a great economy we have. BUT, he also knows money markets. Obummer inflated the snot out of the markets knowing that his term was coming to an end. He wanted to pave the way for HRC. We are at a turning point. The markets are already headed down. What will Trump do?
His attacks on China give us a hint. His attacks on Europe tell us the same. Now, he has attacked Mexico and, most recently, he has attacked India.
The only one of the BRICs that he hasn't attacked is Russia. That won't work because they are too strong.

The markets are REALLY apprehensive now. Will Trump save their bacon? He has already refused to get us in big, expensive wars that the Pentagon is demanding. Just how far will he go?

https://www.cnbc.com/2019/05/31/investors-who-were-hoping-trump-would-rescue-the-stock-market-are-now-counting-on-the-fed.html

Trump has turned the investment world upside down.

https://creditbubblebulletin.blogspot.com/2019/06/weekly-commentary-so-much-for-trump-put.html

So, how far will he go? All credit bubbles eventually come to an end. Will Trump try to do a controlled demolition. It certainly looks that way. Why else would he sanction our neighbor Mexico,,, and then immediately sanction India. The markets just can't absorb and adjust that fast.

Only six countries benefited from globalization. It has become obvious that it just can't work. Germany has a 1 trillion account surplus. The rest of the EU has a 1 trillion account deficit. Globalization has to come to an end but, nobody wants to pull the plug. Especially China.

The Ugly End of Globalization


VERY clear, concise explanation.

https://economicprism.com/the-ugly-end-of-globalization/

Type and save,,, type and save.

Previously, America was a high-wage & high price economy. As we slide down to a global-mean wage, we become a high-price economy with low wages. All the monetary inflation and credit inflation is an attempt to maintain the high prices.
M.N. Gordon is calling for great domestic price inflation. What he fails to factor in is; as prices go up, most people will be priced out of the market. More and more people will be living on the streets. More and more stores will close. BUT, that is only the start. People will default very heavily.

What about the entities that do NOT have a printing press?

https://www.latimes.com/politics/la-na-pol-us-china-trade-stalemate-20190531-story.html

Trump has never been shy about making enemies. He's really fired up this time.

https://www.zerohedge.com/news/2019-06-01/trump-declares-war-silicon-valley-doj-launches-google-anti-monopoly-probe

[Danny B]

Nuke vs coal,,, desperation unfolding,,, Trump, the executioner

Here are some excerpts from an anti-Trump article.

Reduce, not control

AMLO doesn't have a deep state problem. He has a cartel problem.


Most Americans don't like NAFTA and, they don't want it's successor. Apparently, Trump stabbed USMCA in the back.

So, Trump has driven a stake in the heart of globalism. What's not to like?

ALL nations are trying to attract skilled workers.

NOPE, they refuse to take a job in a chicken rendering plant.

https://tomluongo.me/2019/06/02/whats-the-plan-mr-tariff-man/

Trump recognises that Americans will always lose if they have to work for global mean wages.

Just in case you have wondered at the PERSISTENCE of the global warming cadre, it is simple. They are all funded by the nuke power plant people.

https://www.armstrongeconomics.com/world-news/climate/global-warming-just-follow-the-money/

$5---$10 billion and MUCH more for decommissioning. Nuke plants are so dangerous that they can never get insurance. There are 235,000 spent fuel rods that must be cooled for decades.
Nuke power is FAR too expensive so, they have to keep pounding the drum to push global warming. Fission releases a LOT of heat but, don't worry, it doesn't contribute to global warming because it doesn't make carbon dioxide.

Collapse in bullish narratives, collapse in trade talks, collapse in yields, collapse in technical structures, collapse in rate expectations, collapse in growth projections and yes, collapse in stocks. While the price damage to equities for now seems reflective of a run of the mill correction the larger macro context is screaming danger. Danger that this long business cycle is turning or perhaps has already has turned.


Great graph, https://i1.wp.com/northmantrader.com...24%2C757&ssl=1

https://northmantrader.com/2019/06/01/collapse/

It's not like this is any surprise. All credit booms eventually go BOOM.


The higher that oil goes, the more it opens the door to renewables.

The Economics of Nuclear Power - World Nuclear Association

https://www.world-nuclear.org/uploadedFiles/org/info/pdf/EconomicsNP.pdf

Nuclear energy averages 0.4 euro cents/kWh, much the same as hydro, coal is over 4.0 cents

Electric Generating Costs: A Primer - IER - The Institute for Energy ...

https://www.instituteforenergyresearch.org/.../electric-generating-costs-a-primer/

of course they won't back down. It was all planned that way.MAGA, baby.

[Danny B]

Do the speculators get what they want or, NOT

The New York FED is the most important bank in the world.
"The Federal Reserve Bank of New York today announced that Simon Potter, executive vice president and head of the Markets Group, and Richard Dzina, executive vice president and head of the Financial Services Group, will be stepping down from their respective roles effective June 1, 2019."
2 of the most important people at the NY FED are leaving.

Where does this fit in the puzzle?

the Trump administration will soon be losing one of the market's favorite purveyors of economic optimism

https://www.zerohedge.com/news/2019-06-03/china-throws-trump-counterpunch

There is speculation that Trump is going to throw the trade war into high gear.
'Cutting off oil supplies to China is equal to a declaration of war' - analyst

https://www.dollarcollapse.com/stocks-forcing-feds-hand/

So, 3 VIPs in finance have stepped down in the last couple of weeks.
The money renters are demanding TWO rate cuts in the next few months. Trump is trying to torch China. The EMs are desperate for dollars to service dollar-denominated debt. Chinese banks are crashing. Will the FED / Trump give the markets what they want?
Will Trump hold it all back to crash foreign markets?