Economic pressures

[Danny B]

Armstrong and the repo storm

Armstrong spent a total of 11 years in prison when crooked NYC banks tried to get his program. Ultimately, the fault was crooked GOV. Later, he advised the Chinese to buy treasury paper directly from the FED GOV and bypass the primary dealers. He got a bit of revenge on the big NYC banks.
Armstrong predicts a rotation OUT of GOV debt and, INTO private debt. This may very well be true.
As is typical, he was correct to the day on his predictions of the economic low point in India.

https://www.armstrongeconomics.com/world-news/govt-incompetence/government-will-never-accept-responsibility-for-their-actions/

Just how much temptation does he have to predict a crash of public debt to get back at the entity who stole 11 years of his life?
The economic writers claim that there is NO legitimate replacement for the U.S.
dollar because, there is no market with the size and depth of the U.S. treasury market.
Currently, the repo market from the FED is going crazy trying to support all the sketchy banks. Will this lead to a breakdown of the public debt markets? I have no idea. If Armstrong is correct, something will lead to a breakdown.

The State is forcing the CB to "fix" everything with monetary policy. The FED is crying for the State to fix everything with fiscal policy. The FED sees the writing on the wall and, is preparing to completely change it's "mission"
universal basic income.

https://ellenbrown.com/2019/09/18/desperate-central-bankers-grab-for-more-power/

It's hard to believe that there is a shortage of cash at the bank level.You can see the problem. Everyone dumps treasury debt. The sovereign bond market collapses. FED GOV is completely insolvent. 51% of Americans receive a check from GOV,,,, 44 million receive direct public assistance. The safety net would be completely useless. The FED now rolls out the Standing Emergency Fiscal Facility This would be activated when the bond market implodes. The banks will, obviously, fight against being bypassed for liquidity injections. This UBI can NEVER be implemented until after a crash.

https://www.armstrongeconomics.com/markets-by-sector/interest-rates/the-panic-in-interest-rates-is-just-getting-started/

Ok, so there is a cash shortage and nobody wants to loan to the government. In 1913, the government gave up it's right to coin new money,,,, gold & silver. I'm sure that, if / when things get bad enough, US GOV will authorize itself to print money directly / electronically.

Russia has reduced it's public debt,,, getting ready for the collapse in public debt.
Here is a good article on mean reversion.

https://realinvestmentadvice.com/caution-mean-reversion-ahead/

[Danny B]

Squeezing liquidity out of the repo market


Well, because the banks need it,,,, because that is pretty much all they can do when ZIRP lays waste to the financial system

Liquidity Shortage Getting Worse: Fed's Repo Oversubscribed As Funding Demand Soars 50% Overnight
"What is immediately notable is that except for agency paper, there was a greater use of both Treasury ($40.9BN to $51.6BN) and Mortgage-backed ($11.7BN to $27.8BN) collateral."
So, they're dumping Treasury paper and mortgage backed paper. That tells you something.
"Yesterday's Fed repo operation - the first direct liquidity injection in a decade - was an unmitigated disaster, with the NY Fed forced to cancel it in the middle due to "technical difficulties" which nobody still know what they were"

https://www.zerohedge.com/health/fed-begins-repo-operation-funding-rates-ominously-elevated-across-board

An ebb tide lowers all boats

Reference to an avalanche?



Seeing this, Trump has put China up against a wall.

https://www.armstrongeconomics.com/market-talk/market-talk-september-19-2019/

[Danny B]

world economy locked in to a fall in consumption

Well, the climate change BS runs deep. Climate change is not a hoax because the sun is indeed changing. Add to that, the pole shift and, weakening of the magnetosphere. Just the same, charging additional taxes will NOT change the magnetosphere.
Germany Disappoints: Announces Massive Climate Plan (That Is Fiscally Neutral)
Despite all the hope of fiscal largesse from the market and pressure from ECB's Draghi, Germany has unveiled a "3-digit-billion" euro plan to address climate change, but it will have "neutral impact" on government finances.
DO NOT WORRY.
OECD Slashes Global Growth Outlook, Warns Germany Already In Recession
Germany readying stimulus plan as contingency for deep recession.
Pox Americana channels it's stimulus through the military-industrial complex.
Apparently, Germany plans to channel it's stimulus through "green" projects.

ZH;


Precious metals manipulation started about 1974 with the creation of the first futures market for gold. Since then, every commodity has been cursed with a futures market. This originally helped producers to lock in profits. Later, it morphed into a system to allow speculators to lock in profits. The gold market is special because it's stock-to-flow ratio makes it exceptionally good as a bastion of stability. Over the years, gold has become suppressed in price by the State so that it would not be considered a store of value in competition with government bonds.
GOV bond markets are falling apart, as predicted by Armstrong. "The Trump effect" is causing the State to go after the commodity manipulators. Theoretically, this could entice investors to move to gold.There are 100 ounces of paper gold for every 1 ounce of physical gold. Any move to true price discovery in gold would blow up most other markets also.

Exposing The Financial-Political-Complex Protecting Its Own In The Gold Manipulation Maelstrom

Regulators Expand Already Massive Precious Metals Manipulation Probe To Other Markets


Russia refuses to blow a bubble and, has no government debt.
China has runaway debt. Armstrong is premature. China will be in revolution and, Russia will NOT.

https://www.armstrongeconomics.com/markets-by-sector/foreign-exchange/all-money-is-backed-even-today/

Armstrong is simplistic on this account. Huge amounts of productive capacity have moved out of America. Automatic machines do most of the actual productivity. 96 million Americans of working age are not in the labor force. The U.S. dollar may very well be backed by our productive capacity but, all the products must be sold. The consumer base of 16 to 62 year olds is shrinking. Much of the productivity in America is absorbed by the war industries to be blown up (consumed). That is why the Pentagon gets so much. funding. Legitimate consumption is FAR below productive capacity.
Massive debt creation is funding consumption in America. ALL the markets are close to blowing up. If additional debt creation is not forthcoming, consumption will crash WAY down. The idea of MMT and UBI is to get consumption going again.
The dollar may very well be backed by our productive capacity but, that capacity has been falling for years.

[Danny B]

https://fred.stlouisfed.org/series/FDHBFRBN

https://hendersonlefthook.wordpress.com/2019/09/20/the-federal-reserve-cartel-the-solution/

Remember; the higher the volatility, the higher interest rate the money renters demand.

Not the ones who bailed out and moved to Florida

This has only just barely started

https://kunstler.com/cluster****-nation/president-of-the-selfies/

"everything except cash money."
Big, Bad, Bald Ben Shalom Bernanke claimed that the FED caused great depression one because it did not pump enough money into the economy. QE has been ongoing for 10? years now. We are still sliding DOWN. At some point, it will become even more obvious that pumping money into the banks to loan to the producers is just not working.
The proposal is to give free money to the lower loop instead of the bankers.
there will be a lot of blood in the streets before that happens.

[Danny B]

https://www.peakprosperity.com/the-importance-of-a-resilient-life/

https://www.zerohedge.com/markets/clueless-new-york-fed-examining-why-banks-excess-cash-failed-halt-repo-panic

OK, so we're in a big liquidity shortage. Some of the banks have cash,,, some don't. The repo market froze up because the banks with cash held on to it. This happened before in the LIBOR markets. As things get more volatile, more banks will refuse to offer funds to the overnight market.

Armstrong cautioned the founders of the EU that no currency union had ever survived unless they had a debt union. "They" said that Germany would NEVER agree to take on the debts of southern Europe. Now, "They" are saying that Germany will have to reluctantly agree to take on those same debts. Is it any wonder that Germany is looking to dump the EU and, pair up with Russia?

https://www.forbes.com/sites/johnmauldin/2018/06/11/the-ecb-will-have-to-mutualize-all-sovereign-debt-to-prevent-an-eu-breakup/#5c04947adb98

They are finally getting serious about putting bankers in jail.

https://www.theguardian.com/business/2019/sep/20/the-men-who-plundered-europe-city-of-london-practices-on-trial-in-bonn

Somebody is going to get burned. It might all depend on the flap of a butterfly's wing,,,, or a tweet.
Or even a hurricane.

https://www.zerohedge.com/health/california-about-get-hit-hurricane-very-first-time-history

[Danny B]

https://www.zerohedge.com/markets/these-are-banks-where-feds-14-trillion-reserves-are-parked

Confidence is replaced by fear.

Reportedly, volatility is going to go crazy in October.
"stock volatility has been 25% higher in October on average since 1928, according to Goldman."
ALL the big crashes have hit in October.

https://www.zerohedge.com/markets/goldman-sachs-has-just-issued-ominous-warning-about-stock-market-chaos-october

Thomas Cook has collapsed leaving thousands stranded.

https://www.bloomberg.com/news/articles/2019-09-23/thomas-cook-files-for-bankruptcy-after-bailout-talks-fail

The ECB will have to mutualize all sovereign debt.

https://www.forbes.com/sites/johnmauldin/2018/06/11/the-ecb-will-have-to-mutualize-all-sovereign-debt-to-prevent-an-eu-breakup/

This means screwing over the Germans. And, how do they p[land to screw the Germans?
Armstrong, "In Germany, the Federal Minister of Research has said that the introduction of a special tax on carbon dioxide is virtually certain. Global warming research is funded by governments in order to raise taxes. They refuse to fund any research to the contrary because this is all about raising taxes. Germany will soon join Canada who imposed a $1,000 tax per home. Of course, where does this money go to stop their claimed global warming? "

https://www.armstrongeconomics.com/markets-by-sector/interest-rates/the-dollar-shortage-liquidity-crisis/

Armstrong, "It is like a trader who cannot understand the thinking process of a non-trader, and likewise the non-trader cannot understand the actions of a trader. Then there is the institutional trader. He has to answer to a board that has no concept of trading and they are supposed to oversee the trading division."

https://www.armstrongeconomics.com/armstrongeconomics101/training-tools/we-all-have-a-little-bubbles/

Bloomberg writes about "helicopter money"

https://www.bloomberg.com/news/articles/2019-09-22/a-long-despised-and-risky-economic-doctrine-is-now-a-hot-idea

They just can't understand why investors run away from hyper-sonic printing presses.

We've seen this movie before. Hopefully, this time the bankers will be jumping from TALL buildings.


It seems that hard times have created quite a market for sugar-daddies,

https://www.zerohedge.com/economics/why-are-so-many-tier-1-college-girls-turning-soft-prostitution

[Danny B]

Damn, my long post just got zapped.
Things are a mess

[Danny B]

Desperation everywhere,,, especially for Dems

Socialism is the firewall between the non-producers and,,, Darwinian pressures. Democracy is socialism-lite and, always, eventually breaks the bank. What happens when computers displace so many productive workers that all that is left is parasites?
At one time, bankers did an expert appraisal of the moral and financial qualifications of a prospective borrower / enterprise. In return, they received a fee. At one time, the State guarded the liberty and prosperity of the people in it's domain.
The current arrangement is; the bankers and the State are pure parasites with very little regard for the actual producer. This is nothing new and, generally continues until the system blows up. The manipulators grow rich and, the producers grow poor. The beggars, bankers and bureaucrats greatly outnumber the producers.
As crony-capitalism robs the producer, socialism starts to look more attractive.

America was founded as a democratic republic to try to find a balance between fascism and democracy. Creating the federal reserve gave fascism a big boost. The balance necessary to preserve a democratic republic suffered greatly in the drive to create an American empire. Fascism has run it's course and, the treasury is just as empty as it would have been under socialism.
Our faux democracy gets the blame.

Democracy Doomed the Money System By Bill Bonner September 19, 2019 Not one mention of war.
"And since it was a consumer-based expansion rather than a capital investment boom, there will be no stream of income flowing from it to pay off the debt."
Yes, the military consumer has a budget of $1 trillion a year but, strangely has misplaced $23 trillion.No mention of the israeli lobby controlling the district of corruption.

https://bonnerandpartners.com/democracy-doomed-the-money-system/

American war protesters were shot and killed at Kent State University. It wasn't democracy that gave us unending wars.

Mises;
"Negative interest rates are just the latest front in the post-2008 era of "extraordinary" monetary policy. They represent a Hail Mary pass from central bankers to stimulate more borrowing and more debt, though there is far more global debt today than in 2007. "
" Demand-side stimulus is the mania bequeathed to us by Keynes, or more accurately by his followers. It is the absurd idea, that an economy prospers by consuming and borrowing instead of producing and saving. "
Riigght Demand-side stimulus when wages are crashing
"Marxists think interest payments represent exploitation by capital owners lending to needful workers. The amount of interest paid in addition to the capital returned was stolen from the debtor, because the lender did not work for it (ignoring, of course, the capitalist lender's risk). "
Right, the CBs pumped in $247 trillion but, the lender "worked" for his money.
"Austrians stress the time element of interest rates, comparing the lender's willingness to forego present consumption against the borrower's desire to pay a premium for present consumption."
Warren Buffet has $72 billion in the bank. Just what kind of present consumption did he forego?
"Our job, among many, is to bring the insights of Austrian economics on money and banking to widespread attention before something truly calamitous happens."

https://mises.org/wire/negative-interest-rates-are-price-we-pay-de-civilization

The canary has died and, the horse has left the barn.

ZH
Mainstream Media Claims Middle Class Isn't Shrinking (By Redefining What It Means To Be 'Poor')
Theology Students Confess "Climate Sins" While Sitting In Front Of A Bunch Of Potted Plants...
Billionaire Hedge Fund Manager Paul Singer Hedges Against Upcoming Market Crash
UK's Thomas Cook Collapses After Rescue Talks Fail; 650,000 Travelers Stranded
Rabobank: There Won't Be A Trade Deal Breakthrough As China Would Have To Change Its Entire Economic Model
The Disconnect Between The Markets & Economy Has Grown
"With 1/5 of incomes dependent on government transfers, it is not surprising that the economy continues to struggle as recycled tax dollars used for consumption purposes have virtually no impact on the overall economy."

Chinese Firms Dump $40 Billion In Global Assets, Turn Net Seller For First Time In Decades
Raising cash
Karl Denniger.

https://www.zerohedge.com/geopolitical/denninger-economic-civil-calamity-possible

https://www.zerohedge.com/political/odor-desperation-jim-kunstler-exposes-3-way-ruse-ukraine-gate

A new form of war;

https://www.sundayguardianlive.com/opinion/new-form-war-taking-shape

[Danny B]

Ending the possibility fo war between eastern and Western Europe

Seldom, do you see an article that has over one paragraph of actual information. Here is an article that is exemplary.

https://www.zerohedge.com/geopolitical/europe-cracks-are-beginning-show#comment_stream

Remember that Keynes advocated for perpetual war to keep the economy stimulated. Post- Hiroshima, it became too destructive and dangerous to have perpetual war. The cold-war was born as a way to stimulate the economy without risking global irradiation. When the U.S.S.R. collapsed, a new bogeyman had to be found to justify an arms buildup. "They" couldn't allow peace to break out.
NATO had been created to counter a Russian invasion. Russia /USSR was never in any position to invade anybody. The war hawks pushed the expansion of NATO until it was on the border of Russia. They tried to provoke a war over Georgia and Crimea. This didn't work because the people were ethnic Russians.
NATO clearly had no purpose other than invading Russia.

Well, globalism is crashing. The permanent stimulus of a war economy has broken the bank. America has long sought to prevent a natural, mutually beneficial cooperation between Russia and Germany. THAT is exactly what is unfolding. Europe is trying to get away from the post-war American control. This is made especially difficult because the European Union is crashing. The atomic bomb brought peace to a destroyed Europe for long enough for them to integrate their economies to the point where war is no longer a workable position in western Europe. There is a very heavy integration between Russia and Germany. If things continue like this, there will be NO viable way to have a war betweenEastern Europe and Western Europe.

MSM and their handlers are hard at work to prevent peace with Eastern Europe. War with Russia is much preferred. "They" are furious with Nordstream because it would/will bring economic cooperation between Eastern and Western Europe. Cooperation leads to peace and, peace must be avoided.

Meanwhile, there is little recognition of the base problem.
AI Will Take People's Jobs But 'Can Be Leveraged to Create Whole New Economy', Conference Told

Automation And The Crisis Of Work
There might be a Whole New Economy but, it won't have very many wage-earners.
Roofing Drone Perfectly Nails Down Shingles Human Jobs Slipping Away To Hi-Tech - Vid
The article goes on to say that people who are displaced can find more interesting work.
Historic House Vote Approves Broad Marijuana Federalism
TONS of cash floating around and, the growers were prevented from depositing it in the banks. What did you think would happen?
They are trying to lock up all the cash from carbon credits. Pot cash is a natural.


NO mention of Japan where GOV debt is 240% of GDP

Still pumping money into the upper loop.

Draghi is leaving and, Lagarde is strict austerity. Even now, it is too late to save the Eurozone.


It is digital money vs the CBs


No mention of israel and Saudi Arabia and Great Britain.

[Danny B]

Accelerating the slowdown

MSM has to turn a profit to stay in business. Alternative media does NOT,,, for the most part. Zero Hedge gets lots of contributors who are experts in a given field. Charles Hugh Smith, for example, asks for $5 a month from contributors. Most of the writers at ZH have some other business or some other income. If you are NOT being paid to write, there is little outside pressure. ZH has writers who are very much on top of things. Not wanting to burden you with too much reading, I try to stick to headlines and blurps.

The Latest Numbers Tell Us That The Global Economic Slowdown Is Accelerating DramaticallyTesla Involved In Deadly Las Vegas Collision Continued Driving And Hit Four Nearby Pedestrians
"Police in Las Vegas are investigating a Tesla that ran a red light and caused a deadly crash "
So, who do you sue for wrongful death?
Central Bankers' Fatal Conceit: "The Goldilocks Syndrome"Community Outraged After City Shuts Down Farm-Stand Run By Preschoolers Trigger'd?
Risk happens fast, especially when markets run on hopium with extended valuations.
How fast?
WTI Extends Losses After Second Weekly Surprise Crude Build
WTI hovered around $57 ahead of the data, and extended the day's ugly losses after API reported the second weekly surprise build in a row...
But, but, the frackers need a higher price.
"That's The Greatest Risk" - Head Of World's Largest PE Firm Warns Of "Asset Bubble Reckoning"

"Billionaires Shouldn't Exist": Bernie Proposes Tax To Cut Billionaire Wealth In HalfCryptos Are Collapsing Led By Altcoin Bloodbath
"Unclear on what the catalyst could be, if anything news-wise, but cryptos are collapsing across the board with altcoins leading the plunge..."
Foreign Buyers Surge In Blistering 2Y Treasury Auction
Complementary to this article, you must read an article from Armstrong regarding capital flows.

https://www.armstrongeconomics.com/world-news/capital-flow/why-did-the-dollar-rally-only-after-1929-high/

"The 1989 Bubble top in Japan was so severe like 1929 BECAUSE it had attracted capital from around the world which intensified the rally. But when the foreign investors sold, Japan crashed and burned because nobody understood the consequences of capital flows.
Even when the CIA came to us and wanted me to build this model for them and I declined, they understood we invented capital flow analysis and it was the key to the rise and fall of nations."

Insider Selling Hits 20 Year High As Stock Buybacks Soar
"Executives across the US are shedding stock in their own companies at the fastest pace in two decades, amid concerns that the long bull market in equities is reaching its final stages."
This is very interesting Armstrong sees capital flows continuing to lift the stock market.
Bitcoin Tumbles After Network Hash-Rate Mysteriously Flash-Crashes By 40%
Dollar Funding Shortage Accelerates As Both Overnight And Term Repo Oversubscribed
The banks are crying POOR and, dumping risky paper back to the FED.
'Work Less, Make More': Labour Party Introduces Plan For 4-Day Work Week

"...Millions are exhausted from overwork..."
Eat less and, live on the street.

"The Dam Could Break On Thursday": Here Are 12 Quotes That Signal Democrats Are Primed To Impeach Trump
It looks like they are really going to do it...
That whole Biden / Ukraine thing has caused a collective cerebral Aneurysm in the Dem party. They have shown their true colors. They hate anybody who is anti war.
Family investment offices are stashing $trillions to protect it AND, buy up everything after the crash.

https://www.zerohedge.com/personal-finance/dash-cash-ahead-next-market-crash-ultra-rich-prepare-economic-storm

It's just not that simple. If Armstrong is correct and, the crash is in sovereign bonds, the government will have to stop consuming. That leaves the public to do all the buying and consuming. That isn't going to happen at a global mean wage.

https://www.project-syndicate.org/commentary/playing-chicken-with-global-economy-trump-china-iran-argentina-by-nouriel-roubini-2019-09

They lie about the inflation rate so that they can claim that interest rates are not negative.:wall

I'm sure that it was a very short speech.


Hopefully, they will all commit suicide.
I have no idea.

[Danny B]

Comes the tribulation, riding on the back of automation

We are approaching a drawn out showdown between communism and fascism,,,, masquerading as crony capitalism. The problem has been brought to a crescendo by the inroads of automation. Boston Dynamics has an untethered robot that can do a gymnastics routine.

https://www.youtube.com/watch?v=_sBBaNYex3E

It is a world for humans but, what niche will the humans have? The communists and redistributionists both have a point. The money renters want their niche to continue on undisturbed. The parasitic loads on the State grow as more politicians give more promises for more votes. Productive capacity grows but, the number of productive employees is shrinking. The operating system of capitalism is unsuited for an automated economy. Mankind is NOT suited for a life of leisure. The whole world is thrashing around trying to find an accommodation for a fast growing population of people who have no productive niche.
The family structure has been destroyed by the bankers. Mental health is suffering greatly. Too many people are cast adrift from family and society. Everybody who has a niche wants things to continue as is,,, even though technology guarantees that it WON'T.

I need to heavily quote Armstrong. I have faulted him because his database could not have a long baseline for automation,,,, birth control,,, instant capital transfer,,,,,, forced immigration to destroy tribal continuity.
Armstrong seems to think (MAYBE correctly) that the computer can project the future without a baseline.

REPLY: This is what I have been saying. You cannot forecast something you have never witnessed that has not taken place before. It takes a computer with a vast database to see things unfold according to historical patterns, but in markets that event has never existed before.
Sorry, I need to do a lot more cites from him.

Here, Armstrong agrees with Ayn Rand in condemning fascism but, much of the rest of the article condemns socialism. Condemning socialism is a natural for capitalists but, they have NEVER offered an alternative or cure for automation. They suggest "retraining"


Keep them poor enough and, they can't refuse to get up and go to work.

Sorry, it just isn't that simple.

I mean what I say that the central banks are TRAPPED!!!!! People have NO IDEA what we face. The system is unraveling but not even those in government have understood how it was interwoven to begin with. This is all part of how we are heading into a major Monetary Crisis Cycle
The system started unravelling when the first computer was used in business.
If you just play out what has taken place in socialism, there will be $400 trillion of unfunded liabilities by the time we get to 2032.
Denominating everything with a $$$$$$$$ sign is the problem. Is there a $ value to a new baby? EVERYTHING comes to a crashing halt without babies.
Governments have functioned on vote for me and I will rob someone else for you legally with a pen. This is how ALL Republics die. The very purpose of civilization was that coming together created a synergy that was beneficial for all. When government has always turned against one class for the benefit of another, the purpose of civilization ceases to exist

https://www.armstrongeconomics.com/armstrongeconomics101/economics/liquidity-crisis-2/

Armstrong decries socialism when it was fascism (brought on by regulatory capture) that makes socialism attractive.

Armstrong The entire climate change issue has become a covert means in this final confrontation between the left and the right. This is the very issue that will destroy the Western Society for it has been elevated to such heights and governments love it for all they see is more power and money. The activists behind the curtain are simply Marxists who are determined to make communism work one more time.
This truly isn't accurate. It is the banks that want the carbon-credits money. It is the blob state bureaucrats that wants all the wage and pension money to continue.

https://www.armstrongeconomics.com/world-news/climate/the-first-clean-air-act-was-535ad/

ANSWER: There will NEVER be such a reset that returns to a gold standard. There is absolutely no likelihood of that happening, for it would mean that socialism has come to an end. There could be no unfunded promises, pensions, etc. It is just total nonsense.
The reset will be in the bond market, NOT in currency. UBI will be the centerpiece of the reset.
Moreover, absolutely EVERY attempt to fix or peg currencies throughout the centuries has FAILED!!!!
BONDS, BONDS, BONDS
Bretton Woods and the gold standard failed because they tried to fix or peg the dollar to $35 an ounce of gold, but then they spent freely and waged the Korean and Vietnam wars.

https://www.armstrongeconomics.com/markets-by-sector/precious-metals/gold/the-rumor-of-a-currency-reset-gold/

That is what happens in a liquidity crisis.

That is what happens when the blob state votes for high wages and high pensions.


That's what happens when you have a liquidity crisis.


Did you hear that the same thing happened to gold?? ,,, Neither did I.

[Danny B]

Still slipping away

C.H. Smith; The financial storm clouds are gathering, and no, I'm not talking about impeachment or the Fed and repo troubles--I'm talking about much more serious structural issues, issues that cannot possibly be fixed within the existing financial system.
Yes, I'm talking about the cost structure of our society: earned income has stagnated while costs have soared, and households have filled the widening gap with debt they cannot afford to service once the long-delayed recession grabs the economy by the throat.
Everywhere we look, we find households, enterprises and local governments barely able to keep their heads above water--in the longest expansion in recent history. This is as good as it gets, and we're only able to pay our bills by borrowing more, draining rainy-day funds or playing accounting tricks.

The expansion was a torrent of new money channelled into the upper loop. This money inflation predictably created price inflation that reduced the effective purchasing power of most people.
" But asset bubbles always pop, and once they do, the wealth effect reverses and people feel poorer as the value of their homes and portfolios decline. They borrow and spend less, and all the capital gains that boosted local tax revenues dry up, too.
Here's reality: wages haven't kept up with expenses. "

WSJ "Families Go Deep in Debt to Stay in the Middle Class
Wages stalled but costs haven't, so people increasingly rent or finance what their parents might have owned outright Median household income in the U.S. was $61,372 at the end of 2017, according to the Census Bureau. When inflation is taken into account, that is just above the 1999 level." True inflation makes this even worse.
"This leaves politicians with one easy way out: borrow enough money to satisfy the demands of every constituency, every clique of insiders and every vested interest. Rather than re-aligning costs with our ability to pay, we're going to use debt to keep all the constituencies happy."
oftwominds-Charles Hugh Smith: Financial Storm Clouds Gather
Now, Smith is a smart guy. NO MENTION of UBI and channelling debt-free money into the lower loop.

Zero Hedge;
Day Trading Bitcoin: Why 95% Of Traders Lose Money And Fail
Three Suicides On USS George H.W. Bush In One Week Sparks Crisis
Sorry for the sailors but, more and more people are seeing war as pointless.
"Who Could Have Known?" ...What The Repo Fiasco Entails
"...the Fed will have to walk back from their early assurances that the 'exit would be easy'..."
The bankers are dumping all their risk assets on the FED. Contagion is making everything risky.

One Of The Biggest ECB Hawks Unexpectedly Resigns In Opposition To Draghi's Massive Easing
Sink or swim.
Desperate Democrats Dig Deep: "Throwing Joe Biden Under The Bus"Repo Market Guru: "Whatever Changed Last Week Is Clearly Still A Problem"Von Greyerz: "Whole Financial System Disappearing Into Black Hole"
He's a gold guy but, he's pretty sharp.

Will The US Become A Socialist Country?
"..in essence, the US is between two-thirds and three-quarters socialist now, depending upon your assessment of what a government should manage."
The Fed Created The Everything Bubble And A Liquidity Crisis - What Happens Next?

https://zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com/s3fs-public/styles/teaser_desktop_2x/public/2019-09/fatsinking1.jpg?itok=2NkYtx4K

Shoot yourself in the other foot.

Even Forest Gump would be mystified.

I'm sure that all of this will work out fine.

[Danny B]

Funding problems as far as the eye can see

Negative interest rates are destroying everything they touch. Savers are hurt badly.
Ellen Brown explains why America does not need NIRP. She also mentions other problems.

https://www.truthdig.com/articles/trumps-recipe-for-economic-disaster/

The FED is, of course, trapped. I believe that "they" prefer formalized UBI over haphazard QE.


Yep, they ignored space weather until Piers Corbyn came along.
I do have to mention Jennifer Lawson who was doing space weather work / predictions before everybody else.

Parting gift from Super Mario Draghi,

https://www.ocregister.com/2019/09/24/californias-pension-debt-cannot-be-ignored/

But, but, what about sanctuary status?


The various private banks are finding more and more garbage to dump on the FED for cash.

Why is this important? Because it means that there is a supply/demand shortfall. Multiple banks and corporations need to borrow money on a short term basis to keep their operations functioning. This makes sense; US companies are currently weighed down by more debt than they were before the crash of 2008. The problem is, no one wants to lend that cash to them right now.
I wonder why.


The Fed Created The Everything Bubble And A Liquidity Crisis - What Happens Next?
"first by a process of inflation,, then by deflation, the banks come to own everything"

The attacks on Trump may very well bring down everything.

https://tomluongo.me/2019/09/24/coup-begun-empire-strikes-back-everywhere/

[Danny B]

Worldwide corruption and failed Marxism

In early 1993, the Russian Ministry of Internal Affairs reported there were over 5,000 organized crime groups operating in Russia. These groups were comprised of an estimated 100,000 members with a leadership of 18,000
Federation of American Scientists
Gangster's paradise: how organised crime took over Russia ...

https://www.theguardian.com

A Tangled Web: Organized Crime and Oligarchy in Putin's Russia
Special treatment gives Israeli mobsters free access to US soil .
Is Israel becoming a mafia state? | The Times of Israel

All criminal enterprises need banks. They need corrupt bankers. Trump and Putin are trying to clean things up. Netanayahooo has been convicted of 3 major corruption charges. His "co- PM" Gantz is a wanted war criminal.
Back to Russia;

https://www.zerohedge.com/markets/danske-bank-executive-center-massive-money-laundering-scandal-found-dead

Netanayahoo is absolutely apoplectic about both Trump and Putin. Their tag-team is cutting into the profits of organized crime. The Russian-israeli crime families would risk thermonuclear (and worse) warfare just to keep the crime families in power.
The democratic party is desperate for funds. They have signed up with organized crime to keep the party going. They reek of DESPERATION. This kind of desperation does NOT play well at election time.
Organized crime is making a HUGE push to maintain control.
Several years ago, there was an Italian prosecutor who went after the Red Brigade. He travelled in a bullet proof limo. Out of desperation, the Red Brigade put 1,000 kilos of explosives in a culvert that the prosecutor regularly drove over. They got him in the end.

Armstrong;
COMMENT: Every ISM has failed. Maybe we are seeing the twilight of Capitalism.
China is a hybrid. Maybe that is why it will be the next world power.
CM

REPLY: People confuse capitalism with corruption. Capitalism is your freedom to choose. Corruption is when republics are available for sale to the highest bidder.
The central problem is thta it takes lots of money to run a campaign. You have to sell your soul and independence to run for office.

https://www.armstrongeconomics.com/armstrongeconomics101/economics/capitalism-v-hybrid-capitalism/

There is a youtube vid of congress giving 23 standing ovations to Netanayahooo

Armstrong;

https://www.armstrongeconomics.com/world-news/corruption/playing-with-the-facts-to-fool-the-majority/

Code orange

https://www.armstrongeconomics.com/future-forecasts/ecm/our-risk-assessment-meter-is-now-in-orange-alert/

Well, organized crime is everywhere. What do you expect?

The meltdown just shows which securities the banks are unloading because of risk.

And why is this important??
US Shale In A State Of "Deep Anxiety", Survey Signals Capex Collapse Imminent
CAPEX is capacity expansion. The well-depletion rate for shale is horrendous. If they don't do furious expansion, productivity crashes. Shale has lost $280 billion and counting.

https://www.zerohedge.com/energy/us-shale-state-deep-anxiety-survey-signals-capex-collapse-imminent

The RICO Act as a shot-across-the-bow of criminal bankers. VERY good read. More of the Trump effect of going after EVERYBODY regardless of their power.

https://www.streetwisereports.com/article/2019/09/24/something-wicked-this-way-comes.html

The coming default cascade is coming onto view like a massive iceberg in the path of the Ship-of-State. The blob State is comprised of people who can do nothing but shuffle papers to each other. Their wage and pension demands have broken the bank in true Marxist fashion. This is NO accident. The Cloward-Piven strategy out of Chicago calls for GOV to be brought down by excessive demands from non-producers. They imagine that a bright new Phoenix will rise up out of the ashes. What will the lefties do when the phoenix fails to appear? You can bet your last bullet that they will blame Trump. Then what?

https://www.naturalnews.com/2019-09-26-the-collapse-will-be-local-proximity-left-wing-cities.html

[Danny B]

Global warming tax ,,,, capital flows

Now that global warming has been elevated to a religion, you can bet that money is behind ALL of it.

https://www.globalresearch.ca/climate-money-trail/5690209

Marvellous idea
Impose a carbon tax on everybody. Use the money to fund the poor so that they can reproduce even more. That will definitely fix global warming.


Wadayoumean wasted? The bankers made $billions by creating a vertical market for popie-opium-heroin.


Kick em while they're down.

95%,,, is that all?

So, what is left?
Armstrong; "Our models based upon reliable source flow data is currently showing that the Eurozone is the NUMBER ONE place in the world with the greatest amount of capital fleeing than any other region in worldwide. This is indicating that the CONFIDENCE in the Euro Project appears to be collapsing "

https://www.armstrongeconomics.com/international-news/europes-current-economy/warning-capital-outflows-from-europe-are-the-greatest-in-the-world-economy/

Capital Flows Not Central Banks Are Holding Up US Economy ...
https://www.armstrongeconomics
Martin Armstrong: How Do Empires Die? Capital Flight, Not Hyperinflation

Capital flows

https://www.armstrongeconomics.com/world-news/central-banks/usa-v-euro-capital-flows/

https://www.armstrongeconomics.com/armstrongeconomics101/economics/why-capital-flows-are-the-only-real-guide-to-market-trends/