Economic pressures

[Danny B]

EU stimulus,,,media ramping up the blame game for Trump prior to the blowup and ele

Germany was the bog cho cho pulling Europe.

Yep, massage the numbers if you need to justify pumping in more liquidity. The banks say, "If we just had more money, we would be able to start lending into the economy again."
They need the money to roll-over all their bad paper from all the defaults.

Iran plans to knock off 4 zeros off the Rial notes.
"If passed by parliament and approved by lawmakers, Iran's central bank would in effect devalue the rial "
YES, absolutely ! Give the money renters time to switch into another currency before it goes into effect. They'll buy Roubles, dollars and gold. The Rial will crash even further when there is no demand for it in the FX markets.

Trump is NOT playing games when it comes to opioid production coming from China.

https://www.zerohedge.com/news/2019-08-21/treasury-targets-chinese-kingpins-opioid-distribution-crackdown

https://www.zerohedge.com/news/2019-08-21/real-reasons-why-media-suddenly-admitting-recession-threat

China's Gold Reserves Jump For 7th Month; 1H19 Consumption, Production Slump
".has "rooted out" 31 zombie company gold-producers that rely on government bailouts to survive."
You see, China wants gold so bad that they will underwrite gold production at companies that are not profitable. In a general

https://realinvestmentadvice.com/the-dog-whistle-heard-around-the-world/

Yeah right,,, break it to them easy.

The trade war is going to push the economy off a cliff. Trump precipitates the trade war early to give China a better shove off same cliff. There is speculation that Trump believes that America won't be affected. He knows better.

City Council to declare Portland a 'sanctuary city' - oregonlive.com
Portland Mayor: Trump's Threat to Bus Immigrants to Sanctuary Cities
Portland begins sending homeless people to other cities, including Coos Bay
The City of Portland introduced a program in 2016 called Ticket Home .... We are getting homeless being shipped to Coos Bay

[Danny B]

https://www.armstrongeconomics.com/markets-by-sector/foreign-exchange/the-gold-standard-fell-as-all-currency-pegs/

"People do not realize but Pharmaceuticals/Health Products are the #1 contributor as an industry to bribing Congress. They have given almost $4 billion to them to get this monopoly status."

https://www.armstrongeconomics.com/armstrongeconomics101/opinion/medical-reform/

"Once again, even going back to 1995, estimates placed about $200 billion to $250 billion of U.S. currency was circulating abroad. That was more than 50% given the physical money supply even back then was about $375 billion in circulation outside of banks. More recently, the amount of US currency in circulation outside the United States has now exceeded 70%. The world is hoarding dollars for they fear the cancellation of their own currencies as talk of eliminating cash in Europe has escalated with the prospect of Christine Lagarde replacing Draghi.

As Americans have moved increasingly toward debit and credit cards, the rest of the world has been sucking-up US dollars beyond belief. Anyone who questions whether the US dollar is the reserve currency, well the cash is not being held by governments or central banks. The people are now hoarding US dollars at record levels. "

https://www.armstrongeconomics.com/markets-by-sector/foreign-exchange/usd/there-are-more-100-bills-in-circulation-that-1-bills/

Keep in mind that Iran, and now, Peru have been printing up $100 bills for many years. Armstrong mentions that American currency has never been cancelled YET.

America has a war economy. It is disgusting.

https://www.zerohedge.com/news/2019-08-20/too-many-count-pat-buchanan-blasts-americas-endless-wars

Here is a video interview with a retired general who lays it all out. Everything in America is wrapped around the war economy.

https://www.youtube.com/watch?v=kgig1QVU2lY

France is demanding that U.K. pay up for the Bexit divorce.

https://www.youtube.com/watch?v=kgig1QVU2lY

I'm sure that this is some kind of a mis-print.

So, what is progressive about mountains of rats, garbage and feces?

Like kinetic warfare, there is nothing that you can build that somebody else can not blow up.
Trump again says US can 'win' Afghan war 'in a week' Without Nukes Or killing 10 million
Yep, just pull out and, call it a win.
Pox Americana invaded Afghanistan a few months after the Taliban cut out opium production. WE got production way back up because the bankers needed the liquidity. The Taliban plan to clean up the country.

https://www.presstv.com/Detail/2019/07/27/602009/Afghanistan-Taliban-US-Khalilzad-peace-talks-Ghani

[Danny B]

https://www.armstrongeconomics.com/world-news/taxes/australia-making-it-2-years-in-prison-for-paying-more-than-10000-in-cash/

Here are 2 conflicting articles on oil.

https://www.rt.com/business/467045-us-to-drown-world-in-oil/

And

https://oilprice.com/Energy/Energy-General/Shale-Bleeds-Cash-Despite-Best-Quarter-In-Years.html

The first article glosses over the enormous financial losses in the oil sector.

3 articles to skim on bonds. if bond yields are negative, what happens to bond funds?

https://www.zerohedge.com/news/2019-08-22/what-happens-bond-etfs-when-interest-rates-go-negative

Decades ago, Albert Edwards predicted an "ice age" in bond markets. As of today, there are $19 billion with negative yields. Edwards claims that investors are discounting the future and, have piled in to all the negative paper.
"This means that "the bubbles are not in the government bond market in my view. They are in corporate equities and corporate bonds."

If Edwards is correct about the locus of the next mega-bubble, it is very bad news for risk assets as the "global deflationary bust will wreak havoc with financial markets", prompting Edwards to ask a rhetorical question:

Does anyone seriously believe that in the next global recession equity markets will not collapse? Do market participants really believe fiscal stimulus and helicopter money will save us from a gut wrenching global bust that will make 2008 look like a picnic? "
OK, he talks about a collapse of corporate paper and equity markets. Remember that Armstrong predicts that sovereign debt will collapse and private equity

https://www.zerohedge.com/news/2019-08-22/man-who-predicted-collapse-bond-yields-reveals-what-happens-next-there-lot-more

Another article on negative yield bonds.

https://www.kpvi.com/news/national_news/economic-twilight-zone-bonds-that-charge-you-for-lending/article_c82e430b-4943-5768-93ae-9653b2b630c7.html

I can't help but think that this is an implementation of Keynes, "euthanasia of the rentier"


It has never worked before so, by all means, give it a try.

https://glintpay.com/en_us/economics/dirty-harry-time/

Gold is slowly coming into view as an alternative to GOV manipulation.

The State doesn't want any competition with it's paper being regarded as a store-of-value. It will never allow a real competition in crypto. Gold is another story. The CBs are loading up on gold.

Trump refuses to kick off a war for israel so, they are trying to get one going on their own. Sooner or later, they are going to push too far.

[Danny B]

Everybody trying to guard a niche

A tribe is an extension of a genetic family. A state is just an administrative creation purportedly created to facilitate mutual protection and prosperity.

"The Treasury and Justice departments deposited more than $5 billion into their respective asset forfeiture funds. That same year the FBI reports that burglary losses topped out at $3.5 billion."
Crime pays. GOV service pays even more.
Rummel, "His research shows that the death toll from democide is far greater than the death toll from war. After studying over 8,000 reports of government-caused deaths, Rummel estimates that there have been 262 million victims of democide in the last century. According to his figures, six times as many people have died from the actions of people working for governments than have died in battle.
One of his main findings is that liberal democracies have much less democide than authoritarian regimes.[10] He argues that there is a relation between political power and democide. Political mass murder grows increasingly common as political power becomes unconstrained. At the other end of the scale, where power is diffuse, checked, and balanced, political violence is a rarity. According to Rummel, "The more power a regime has, the more likely people will be killed."


Sean Hannity: Media, Democrats 'want people to suffer' in recession
Trump accuses news media of trying to crash the economy
Rooting for a Recession Is Dangerous The Nation
Washington Post praying for a recession to defeat Trump.Opinion: Another Tiananmen Square in Hong Kong?
The Chinese fertility rate is below replacement. Like America and several other countries, the more that the police State cracks down, the fewer people are willing to bring children into a messed up world. Japan is a different story altogether.

The big question is; Will paralysis at State level make the recession even worse?
Everybody wants to guarantee the continuation of the power and success of their particular niche.

[Danny B]

The Central Bank Time Machine | Pento Portfolio Strategies LLC | Mid-week Reality Check PodcastHow Government Failure Caused the Great Recession - AEI
So, the State forced banks to loan to people who could never pay it back.

[Danny B]

Recession biting harder

Steve Keen is a very smart guy who really understands the many problems. He has a vid where he explains the reason and order in which the zombies will fail.

https://www.youtube.com/watch?v=qk_17ewZzow

Rense,
One Of The Largest TBTF Banks In America Boldly Declares The Wheels For A Slowdown Are In Motion'
Investors searching for safe havens hoard 'paper gold' in record numbers
Yep, Morgan Stanley says that the wheels are going to come off. Paper gold is a speculative vehicle, NOT a safe haven.
Australia's Millionaire Visa Programme Surges as Hong Kong's Wealthy Flee Amid Protests
US 'Totally Unprepared' to Deal With Recession Warns Union Bank Chief Economist

I'm sure that Trump is shaking in his loafers.



Not as long as it is debt money.

WE already have the SDR. What else do you need?

[Danny B]

Nope, no precedent for birth control and electronic money.

https://www.armstrongeconomics.com/armstrong-economics-upcoming-events/world-economic-conference/wec-2019-orlando-knockin-on-havens-door-or-the-big-fake-out/

"I am publishing for attendees for the first time the Dark Age Cycle. In addition the Manipulating the World Economy which is a detailed account of central banks and how the entire system has been managed which is now slipping through their fingers, we have indeed the first time in modern history when such things have converged. Historical accounts exist, but well before the 17th century"
" Here you will learn a shocking reality behind the curtain of the Euro.

The Fate of Europe is a very important report for you need to understand the backdrop to what we face going forward. Like the Great Depression, the crisis will begin in Europe and spread like a contagion."
Great Depression One started in an Austrian bank, Credit Anstalt.
"With the majority of economists now talking up a bear market and a recession in an effort to desperately overthrow Trump in the 2020 election, "
Be VERY careful what you wish for.

https://www.armstrongeconomics.com/armstrong-economics-upcoming-events/world-economic-conference/what-to-expect-at-the-2019-wec-this-year/

In his blog, Armstrong shoots from the hip. I find tons of mistakes in word choice, syntax, punctuation. Here is a funny one.

Obviously border is misspelled. I don't care.
Climate change and corruption.

https://youtu.be/RUBrV0VFcbY

[Danny B]

Contagion,,, zombies have employees

Way back in the 1920s, the world's banks were not integrated to any great degree. Just the same, when Credit Anstalt blew up, it spread to everything. In 1989 when Russian bonds defaulted, the meltdown of Long Term Capital Management nearly brought down the entire financial system.
This brings us to China. The Yuan is crashing.

https://www.zerohedge.com/news/2019-08-23/yuan-crashing

China is underestimating its US$3 trillion dollar debt and this could trigger a financial crisis, says economist
Does China have enough US dollars to survive the US trade war
China desperately needs dollars to service dollar-denominated debt. If the Yuan drops by half, China needs twice as many dollars to service a given loan. As Trump cuts off China trade, the Chinese get ever-more desperate for dollars.

Don't ever forget; scratch a Chinaman,,, find a communist. The Chinese central party has it all planned out. BUT, central planning has never worked out. It ALWAYS results in massive malinvestment. The Chinese built up a massive export economy never considering the fact that they were taking the income of their best customers. They planned to eventually switch over to a domestic consumption economy. They never considered that they might not be able to escape from the global-mean-wage that they had created. As automation bites in to low-skill jobs, billions of people vie for China's job niches. The proposed Chinese switch to high wages never happened. China built MANY millions of houses and infrastructure projects that a low-wage country can't sell to it's own people.

https://www.youtube.com/watch?v=nGHmk4UeK_w&t=231s

Global banks are 17 times more exposed to China than Greece -
Bank of England warns on UK exposure to China's credit boom
European banks have $3 trillion of exposure to emerging market debt

13 percent of the world's companies are 'zombies
One in 10 US companies is a "zombie" at risk of default
The Fed Created An Economy Of Zombies And Unicorns - Forbes
Central Banks Are Spawning A Zombie Apocalypse
Nobody will come out and say that wages and employment are inadequate to keep the economy going.


Don't worry, You'll get your chance


China will have 626 million cameras in operation to keep an eye on EVERYBODY.

https://www.dailymail.co.uk/news/article-7379255/China-one-CCTV-camera-TWO-PEOPLE-year.html

After blowing up the American political establishment, Trump is moving on to a bigger target.

https://www.washingtonexaminer.com/news/six-ways-donald-trump-can-blow-up-the-g-7-summit

[Danny B]

Musical chairs atop the bond volcano

Couple of short vids on the China slowdown.One is from the Financial Times, a globalist mouthpiece.

https://www.youtube.com/watch?v=t487ILVf87k&t=111s

https://www.youtube.com/watch?v=dN8SoArb2rk&t=113s

https://www.youtube.com/watch?v=nGHmk4UeK_w&t=231s

Keep in mind that Trump is doing his best to shove them off the cliff. At the bottom of the cliff lies revolution.

China desperately needs dollars/
China built itself relying on purloined technology. At one time, they had 22,000 workers mining the net for non-classified tech. Their workforce is shrinking,,, a holdover from their 1-child policy. They are short 22 million women so, it is safe to assume that they drowned 22 million female infants. As they lose the huge influx of peasants, the wages are rising, making them less competitive with low-wage competitors.

Armstrong, "I have reviewed the buyers of these negative bonds which now amount to $15 trillion outstanding globally. What is actually taking place in the market is really dominated by punters rather than investors. In other words, the people have been buying them to flip assuming rates would just go lower."
"The crisis on the horizon is MASSIVE!!!! These punters are going to get caught as they did with the Russian bonds when they collapsed in 1998 which led to the Long-Term Capital Market crisis. This is a game of musical chairs. Nobody thinks twice as long as rates decline. But the appetite for negative yields does NOT exist insofar as people actually investing in them."
"The trend looks to be getting ready to change when the ECM turns. BUYER BEWARE!!!!
We may yet see the biggest bubble in the modern history of finance explode far worse than the 2007-2009 debacle."
There you have it. Bond values tank and, we have massive "deflation"

"QUESTION: Marty, you have said this is the historic bond bubble of all times with interest rates at a 5,000 year low. Will you elaborate on the bond bubble at the WEC? It seems like this may be the granddaddy of all shorts."
"ANSWER: We have an Institutional Report on the Bond Bubble. We have a lot of pension funds and institutional clients where that is the main focus. Nevertheless, we cannot lay out the future of all markets without diving into the Bond Bubble. It is this which will influence the Monetary Crisis Cycle and dictate the trend in share markets as well as commodities."
In other words, buy my report. The money renters want to continue to make money on sovereign debt. The States want to implement debt-free money. That would be the end of the bond market. This is a huge struggle to implement Keynes "euthanasia of the rentier"
An Indian proverb, When the elephants fight, it is the grass that suffers.

Here is an excellent article about corporate debt. Armstrong claims that sovereign debt will crash. BUT, the State has a printing press and, the private sector does not. Corporate debt WILL eventually blow.

https://www.zerohedge.com/news/2019-08-24/corporate-debt-risk-flash-crash

Here is another article on bonds that projects "daily liquidity" problems.

https://www.zerohedge.com/news/2019-08-25/history-being-made-negative-rates-fake-markets-imminent-daily-liquidity-crisis

Trump has put the PPT to work to give the "can" a good kick down the road.

https://www.zerohedge.com/news/2019-08-25/offshore-yuan-crashes-new-record-low-tests-pboc-peg-band

This next article is completely off-topic. Reportedly, a Texas company has come up with a method for eliminating back EMF in an electric motor.

https://www.zerohedge.com/news/2019-08-19/texas-firm-claims-have-developed-holy-grail-electric-motors

Somebody should repost this to a more appropriate thread.

Art of the deal UK style;
Johnson to Announce Cut in Brexit 'Divorce Bill' to $11 Billion In Case of No-Deal - Reports
Mega Group, Maxwells and Mossad - The Spy Story at the Heart of the Epstein Scandal - Or...The US Is Now Being Totally Controlled By Organized Crime
Galloway - 'Ghislaine Maxwell Is A Mossad Informer Who Was Epstein's Handler'

[bistander]

No bemf?

...
This next article is completely off-topic. Reportedly, a Texas company has come up with a method for eliminating back EMF in an electric motor.

https://www.zerohedge.com/news/2019-08-19/texas-firm-claims-have-developed-holy-grail-electric-motors

Somebody should repost this to a more appropriate thread.
...

No need. It is BS hype to get funding. Where do you read or hear "elimination of back emf"? I didn't see that particular BS claim among so many others. FWIW, without back emf, a motor will have zero output power.

Regards,

bi

[Danny B]

I hope that i can get my $ 4.5 million back.

[Danny B]

https://www.theautomaticearth.com/2019/08/globalization-just-peaked/

Varney - Trump 'Dominated' G7 Like No
Other President In Many Years
The Donald did not go there to play nice. He planned to do the G7 what he did to the Dems.

Roberts - US Corporations The Problem Not China
There's no law against outsourcing.
Apple and Samsung sued over 'cancer risk'from cell phone radiationJohnson Refuses To Pay Brexit Divorce Bill If No Deal With EU
Brussels says Britain must pay EU bill in full in case of no-deal Brexit
What would Trump do?
Trump is really waking up jewish groups in America,,, along with Christian zionists.

https://www.theatlantic.com/politics/archive/2019/08/trump-israel/596731/

Gold prices have jumped 25% this year in India. If you want to get a bank loan, you have to turn over your gold. Nothing else will do.

[Danny B]

https://www.armstrongeconomics.com/world-news/taxes/germany-the-spd-proposed-wealth-tax/

OBVIOUSLY we all need to pay much more for climate change and refugees.

Armstrong's entry into investing. https://www.armstrongeconomics.com/a...ow-it-evolves/ALL the money went to wars
Keep in mind that most of the people who got rich did so with legislative capture and crony capitalism.
"Socialism is when they tax people under the pretense of helping in a way that goes beyond the common needs of society. Once you move beyond the infrastructure that is a common function to allow for commerce, you then begin to approach the Marxist theory which has been proven time and time again to fail. Self-interest is critical and government will NEVER act in the self-interest of others, only itself."
"There can be no liberty when the courts are controlled by the government. Socialism ends up being the excuse used to exert power and nothing more."

https://www.armstrongeconomics.com/armstrongeconomics101/economics/the-true-nature-of-socialism-exerting-power/

https://gnseconomics.com/en_US/2019/08/26/will-central-banks-survive/

THAT is going to leave a mark when it blows.

You can't blame that on the FED. It is the fault of the corporate mentality.
Public Pension Crisis: Who Will Cover the $4 Trillion Shortfall?
The Coming Pension Crisis Is So Big That It's A Problem For Everybody
Starving pensioners will be the ones that demand debt-free money and MMT.

[Danny B]

Trump is fighting the FED, the FED is trying to get rid of him

Preparing For Financial Apocalypse - Insiders Are Selling '$600 Million Of Stock Per Day In August'
After Carney Admits That Low Rates Lead To War SF Fed Suddenly Changes Its Mind On NIRP
'Things Will Never Be The Same Again' Here Are 20 Questions As Central Banks Admit Defeat
BoA Says Buy Gold As Central Banks Lose Control

Ex NY Fed President Urges Fed's Powell To Prevent Trump Re-Election - Political Sabotage By Private Bank
Bloomberg Op-Ed - Ex Fed President Says Bank Should Work To Prevent A Second Term For Trump Via Recession - This Is Against Its Franchise Legal Mandate
This is a very big deal. If the FED works against Trump, he can then blame them for the upcoming collapse.

https://www.zerohedge.com/news/2019-08-27/bill-dudley-shocker-ex-ny-fed-president-urges-feds-powell-prevent-trump-re-election

https://borgenproject.orgGerman Wage Repression | Dollars & Sense

The Trump effect.
Ruling - Johnson & Johnson must pay $572 Million for its part in US opioid epidemic
Creator Of Global-Warming's Infamous 'Hockey Stick' Chart Loses 'Climate-Science' Lawsuit
Hollywood's Man in Washington, Arrested for Alleged 'Rape and Blackmail'
More and more lawsuits are going through against formerly untouchable corporations like Monsanto.


They can set the "fix" wherever they want. It is the FX markets that will have the final say. China can ONLY support the Yuan by selling dollars-for-Yuan.

They are so NEEDY.

[Danny B]

Ending the FED by sabotage and subterfuge

Running late and, there is a lot to read. FED head Dudley came out and said that the FED should work to get rid of Trump. Has he never read the Sedition Act? I'm starting to suspect that Trump, Powell and Dudley, et al are conspiring to destroy the FED. It has pained itself into a corner.

oftwominds-Charles Hugh Smith: The Fantasy of Central Bank "Growth" Is Finally Imploding
Armstrong has 2 good, short articles about how Trump is taking all the wrong actions.

https://www.armstrongeconomics.com/world-news/sovereign-debt-crisis/big-bang-in-full-motion-set-to-collide-in-a-real-mess/

"We must separate the USA from the rest of the world"
"But the Fed cannot stand against the entire world. The USA has the ONLY viable bond market. Lowering rates in the USA will also destroy the US bond market"
That may just be what "they" are trying to do.

"President Trump just does not understand the dollar. This old school idea that lowering the currency will increase domestic jobs and exports sounds logical, but the value of any currency is determined by the level of international confidence. It is absurd to think you can lower interest rates and the dollar will decline to support more exports. Nobody considered that you then wipe out pensions and force the elderly to work because they cannot live off the interest from the savings."
Trump has been consistently under-estimated. He has already implemented three recommendations from Armstrong. Armstrong said that all of the U.S. intelligence agencies are clients of his. Years ago, all 16 agencies got together with Jim Rickards to "war game" the progress of the economy. They brought in Rickards because he is an expert in the bond market. Their conclusion; America was going to have a giant crash.
Remember that a crash of sovereign debt WILL affect the paychecks of the spooks.

"I really get tired being called into meetings over the same childish one-dimensional theories that it seems only an idiot would believe in. Trump has voiced his dismay over the strong dollar claiming U.S. manufacturers are at a disadvantage."
Trump is not worried about U.S. manufacturing. He wants to bring revolution to China.

"Those in power just cannot bring themselves to address the issue because of class warfare is the main argument the Democrats use to inspire people to vote for them."
"The only Democrat to ever listen to me was Governor Jim Florio of New Jersey who I debated at Princeton University. I pointed out that the poor and middle class have to pay income taxes and wait for a refund at the end of the year, so you are borrowing from the poor and middle class and cheat them on interest."
"Many analysts believe the Federal Reserve will yield to the demands for a further rate cut at the September meeting. This is due to the world economy imploding outside the USA not simply because of Trump-bashing the Fed. We live in a world where we are in the midst of a Dollar Contagion that is impacting the entire world because SOCIALISM is collapsing outside the United States first."

https://www.armstrongeconomics.com/markets-by-sector/foreign-exchange/usd/dollar-contagion-trump/

Not ONE effing word about the collapse brought on by crony-capitalism.



The former house-flippers have bought bonds at, say 2%. They plan to flip them to investors when bond yields go to, say, one %.
There are $17 trillion in negative yield bonds. We are advised to NOT buy gold because it pays no interest.

Probably by the CBs.

"

NO, NO, NO, WAIT. What about dollar-debt service?

No, of course. They'll just pump a few $trillion into the BACK door of the stock market.



Ah, the Italians,,,, gotta love them.
The Trump effect.


Trump claims he wants a weak dollar but, uses a strong dollar to lash the rest of the world.