Economic pressures

[Danny B]

Deflationary Ice age and papadrops of cash

Japan can print their own currency and they just keep creating more and more of it. Greece can not print and they just keep going farther and farther in the hole. All of you know who The Council on Foreign Relations is (CFR). The CFR just reported that austerity and debt restructuring just aren't working in Greece. They won't come out and say that massive default is in the winds. Macro and Markets » Greece’s Bailout Dead EndNomi Prins – Keynote Speaker Who Recently Addressed The Fed, IMF And World Bank, Warns “It’s All Coming To An End” | King World News Nuff said
"deflationary Ice Age" is upon the world" "There is, of course, one way to short circuit said Ice Age, and it involves paradropping money in an act of terminal fiat desperation (the outcome is always hyperinflation) " The CFR also endorses helicopter money.
YES, the dreaded hyperinflation BUT, the alternative is revolution.

A large State is un-natural and artificial. It must be held together by external forces when internal forces are inadequate. The internal forces are centered on mutual prosperity. That has left the room. The external force is ;fear of a common enemy. Why do you think that the CIA goes around murdering people at wedding parties along with general murder? They are trying to create as many enemies as possible. America needs the threat of external enemies to keep the masses from going their own way. The terror attacks will continue until morale improves.
Albert Edwards Explains Why The "Global Economy Will Be Thrown Into Chaos" | Zero Hedge

The cheerleaders for the Eurozone are getting more desperate to hold it together. EU Commissioner's Dire Warning: "The Only Alternative To Europe Is War" Short-sighted idiots.

[Danny B]

Europe and war

It's often claimed that "all wars are banker wars". London was certainly the epicenter of banking decades ago. Many of the London bankers were jewish. Is there any connection? What does history say in retrospective? I'm posting quotes from the people in the "know", people who were there.

"Judea declares War on Germany." - Daily Express (March 24, 1934)

"Germany is the enemy of Judaism and must be pursued with deadly hatred. The goal of Judaism of today is: a merciless campaign against all German peoples and the complete destruction of the nation. We demand a complete blockade of trade, the importation of raw materials stopped, and retaliation towards every German, woman and child." - Jewish professor A. Kulischer (October, 1937).

"The fight against Germany has now been waged for months by every Jewish community, on every conference, in all labor unions and by every single Jew in the world. There are reasons for the assumption that our share in this fight is of general importance. We shall start a spiritual and material war of the whole world against Germany. Germany is striving to become once again a great nation, and to recover her lost territories as well as her colonies. But our Jewish interests call for the complete destruction of Germany..." - Valadimir Jabotinsky, in Mascha Rjetsch (January, 1934)

Winston Churchill: "We will force this war upon Hitler, if he wants it or not." - Winston Churchill (1936 broadcast)

"Germany becomes to powerful. We have to crush it." - Winston Churchill (November 1936 to US-General Robert E. Wood)
Now, we get close, it was economic competition.

"The war wasnt only about abolishing fascism, but to conquer sales markets. We could have, if we had intended so, prevented this war from breaking out without doing one shot, but we didn't want to." - Winston Churchill to Truman (Fultun, USA March 1946)

"Should Germany merchandise again in the next 50 years we have led this war (WW1) in vain." - Winston Churchill in Times (1919)

"Hitler and the German people didn't want this war. We didn't answer Hitlers various petitions for peace. Now we have to admit that he was right. Instead of a cooperation with Germany, which he had offered us, now stands the gigantic, imperialistic might of the Sovjets. I feel ashamed to see how the same intentions which we accused Hitler of now are pursued under a different name." - Sir Hartley Shawcross, British chief-accuser in Nuerenberg
Hitler made NUMEROUS attempts to try to avoid war. ALL of them were rebuffed by Anglo-Americans and French.

"We made a monster, a devil out of Hitler. Therefore we couldnt disavow it after the war. After all, we mobilized the masses against the devil himself. So we were forced to play our part in this diabolic scenario after the war. In no way we could have pointed out to our people that the war only was an economic preventive measure." - US foreign minister Baker (1992)

What about later on when understanding set in?
"Germanys unforgivable crime before WW2 was its attempt to loosen its economy out of the world trade system and to build up an own exchange system from which the world-finance couldnt profit anymore. ...We butchered the wrong pig." - Winston Churchill, The second World War (Bern, 1960)
Important Quotations For A Better Understanding Of WWII


There is NO reason at all to have a war with Russia. The neocons are arming Germany to the teeth hoping that some provocation will appear. Other States in Europe are being loaded up with offensive arms. The basis of this is pipelines; Competing Gas Pipelines Are Fueling The Syrian War & Migrant Crisis | Zero Hedge
The new Russian cruise missiles show Europe that they do not have a missile shield. Hopefully, the epiphany that came to Churchill AFTER the war will come to European leaders BEFORE a planned war.

[Danny B]

A change of guard

The FED jawbones the market and the market goes up. "Absent the performance on FOMC days, the stock market has gone nowhere in 17 years. "
What Hath The Fed Wrought? | Zero Hedge
Investors flee precious metals. They are fleeing ELECTRONIC precious metals. Investors Flee Precious Metals as ETF Outflows Top $1 Billion - Bloomberg Business
Meanwhile in China, "Roughly 21 tonnes, or 685,652 troy ounces of gold in .999 fine kilo bars, was withdrawn, net of a small deposit of 27,328 ounces, from the Brinks warehouse in Hong Kong yesterday."
Jesse's Café Américain: About 38% of All the Comex Gold in Hong Kong Left the Warehouses YesterdayYou can see that the new Russian military systems counter the military strength of America,,, especially if we have to rely on turkeys like the F-35.

[MonsieurM]

A large State is un-natural and artificial. It must be held together by external forces when internal forces are inadequate. The internal forces are centered on mutual prosperity. That has left the room. The external force is ;fear of a common enemy. Why do you think that the CIA goes around murdering people at wedding parties along with general murder? They are trying to create as many enemies as possible. America needs the threat of external enemies to keep the masses from going their own way. The terror attacks will continue until morale improves. [/B]


The cheerleaders for the Eurozone are getting more desperate to hold it together. EU Commissioner's Dire Warning: "The Only Alternative To Europe Is War" Short-sighted idiots.

..... Dead on

It is only necessary to make war with Five things; with the maladies of the body, the ignorances of the mind, with the passions of the body, with the seditions of the city and the discords of families.
--- Pythagoras

[Danny B]

Refi NOW,,, sucha deal

The biggest economic crime of all? The biggest economic crime is when international bankers lend the entire money supply of a nation at compound interest, placing the burden of providing national purchasing power upon home buyers and and home equity refinancers where the standard contracts stipulate front-loading of interest payments, so that when deflation from interest drain makes it impossible for households to pay their bills without refinancing to consolidate credit card debt etc. they refinance and in so doing forfeit 100 percent of the interest they have worked so hard for so long to to pay so they must start over paying full interest on principal that, that in many cases has not been paid down even one cent. Over 90 percent of people who refinance do not realize that in doing so they make a gift to the owners of the bank of all the interest they have been paying for, often several years as they are forced to start all over paying full interest on the original full principle -- except that over this time deflation continued and earning each dollar of principal and interest will be even harder than before. The biggest economic crime of all is having this kind of monetary system, this kind of theft of people kept in ignorance of the crime, when money can and should be provided free of charge by government as a public utility, as necessary infrastructure required for a market economy that serves the common good.
~ Dick Eastman Yakima, Washington

[wayne.ct]

Refi

Yup, I have noticed how the banks want me to refi when the net benefit to me is zero. They really are greedy.

[Danny B]

Money from thin air

It has always been considered the right of bankers to create money. Very little of our money supply is created by the FED. Money creation is at a standstill because we are debt saturated. There are increasing calls for the central bank to BYPASS the private banks and create public money that would be injected into the economy by direct deposit.
Monetary authorities around the world are scratching their collective heads wondering why growth has stopped. They still refuse to connect financial growth to population growth. Their actions impoverished us and we cut back on family size. Pre-birth control, this wasn't a widespread option. "They" are operating on assumptions that are no longer valid.
We slide towards a shrinking population that has lower and lower wages. "They" have come up with the grand idea of paying is directly so that we don't have to rely on our shrinking paycheck. This idea is loudly denounced by private banking.
BUT, as we slid further into deflation, the State sees revolution on the horizon. Here are a couple of articles on public money creation.
Why Not Just Print More Money? - The New Yorker

http://www.24hgold.com/english/news-gold-silver-how-the-great-depression-2-0-will-soon-unfold.aspx?article=7734781028H11690&redirect=false&contributor=Michael+Pento&mk=1

Our claimed debt is $ 18 trillion. The GAO says that it is closer to $ 65 trillion. https://www.rt.com/usa/322377-debt-c...reform-walker/
FED GOV can't realistically print new money to pay off the debt. The further we slide into deflation, the more calls there will be to create free public money.
The bankers are very happy to create money out of thin air to LEND to us. They MOST certainly don't want to be paid back with money created out of thin air by GOV.

[Danny B]

Avoiding reality as long as possible

State sponsored terror.
It Is Time to Knock off the Bull**** About Surveillance for Terrorism | Armstrong Economics
When The State Is Not Your Friend—–Police Asset Seizures In 2014 Exceeded All Burglaries | David Stockman's Contra Cornerhttps://www.youtube.com/watch?v=evOelfBZbnAStockman CNBC Interview: Last Spasm Of The Bull, Meltdown Ahead | David Stockman's Contra Corner
Here is an excellent article with several links that lays out the strategy of China.

http://www.24hgold.com/english/news-gold-silver-gold-is-the-dollar-s-achilles-heel.aspx?article=7732495530H11690&redirect=false&contributor=Dan+Popescu&mk=1

Sooner or later, the financial sector will learn that very few people are needed in the productive economy BUT, every person wants to be part of the consumptive sector.

[Danny B]

Fiat currencies and gold backed bonds

"This process was facilitated by a system of lend-lease, in which supplies of arms, equipment and strategic materials to recipient countries were paid for in gold. As a result, the US built up its gold reserves from 13,000 tons in 1938 to 21,800 tons in 1949, concentrating 70% of the world's reserves of the yellow metal in one place.
Read more: http://sputniknews.com/business/2015...#ixzz3s0FU44Az
Pretty good for a barbaric relic.
De Gaulle, "In 1965, he demanded that the United States exchange $1.5 billion dollars for gold. America had no choice but to agree. In two years, de Gaulle made US gold stores 3,000 tons lighter.

Following this, Germany and other countries made the same exchange. And by 1970, the gold reserves of the United States had decreased by more than half, to 9,838.2 tons."
"The largest gold reserve stored by the Fed belongs to Germany, at 674 tons. On the whole, the country holds nearly 3,500 tons of gold.

However, both sides were content with the situation: the US received money for storage, and Germany knew its reserves were finely protected.

The first major attempts by foreign countries to return their gold reserves first began in 2012. At the time, Germany made attempts to withdraw its gold, but it was denied by Washington.

The US said it could not provide the required security for audit. Then, Washington said it was impossible to differentiate the US gold bars from German ones."
Read more: http://sputniknews.com/business/2015...#ixzz3s0GRAyQw
That is very strange. All bars have a number and are not supposed to be re-melted.

China is onboard to join in on the SDR BUT, they say that it is just temporary. http://www.24hgold.com/english/news-...n+Popescu&mk=1

[Danny B]

http://www2.um.edu.uy/dtrupkin/Walsh.pdf

The oil glut is going to take down a LOT of hedges and derivatives; Goldman eyes $20 oil as glut overwhelms storage sites - TelegraphThe Most Important Question About ISIS That Nobody Is Asking | Zero HedgeMaybe because we are too broke to buy anything.YES, banks are left holding the bag. What about the Chinese?No surprise. It's the same for British and American steel producers.

"What exactly do we mean by deflation? Back in 2008 the central banks of the developed world, as well as China, had a choice:

1. admit that prior policies geared towards encouraging borrowing at a faster rate than income growth were a horrible idea, or
2. double down and push those failed policies even harder

As we all know, they chose option #2. And so here we are, just 8 years later, with nearly $60 trillion in new debt piled on top of the prior mountain -- while GDP grew by only $12 trillion over the same time period:
Deflation Warning: The Next Wave | Peak ProsperityWell, if it wasn't for 50% youth unemployment, there might be more confidence.No kidding,,, raise prices. What about raising employment?Liar-loans to sell more cars. What a novel idea.
Charles Hugh Smith on currency revaluation;
" But raising interest rates has a brutally negative effect on the domestic economy, as higher rates choke off domestic lending, which then pushes the economy into recession.

It's a no-win double bind, though, for doing nothing and letting one's currency implode drains the nation of capital and makes imports unaffordable. "
" The bone-dry half-dead forest awaiting an igniting lightning strike is the global mountain of debt--debt which is no longer supported by current valuations of commodities and risk.

In effect, a currency crisis is simply the abrupt revaluation of the currency to reflect new realities. That revaluation then raises the risk premium on debt denominated in that currency or owed in other currencies.

As emerging market currencies decline, the income streams needed to service all the debt denominated in U.S. dollars declines, a self-reinforcing dynamic: as income and valuations fall, capital flees, pushing the relative value of the currency down even more, which further raises the risk premium that then triggers even more capital flight.

The sums in play are so staggering (an estimated $11 trillion in emerging market debts denominated in other currencies) that even the Fed won't be able to stop the meltdown. "
Of Two Minds - Is This How the Next Global Financial Meltdown Will Unfold?
So, things are going to get even worse for States with weak currencies, especially for commodity exporters.
Yep, there is a big chain of defaults in the future.

[Danny B]

No way out

The dead-cat bounce, When Wall Street Gets DeFANGed———Look Out Below! | David Stockman's Contra Corner
Hedge fund implosion,,, close cousin to the dead-cat bounce, What Hedge Fund Panic Looks Like | Zero Hedge
NOBODY is spending money on capacity expansion. Why bother if nobody has any money? It Is Different This Time——–Now Comes The Global CapEx Depression | David Stockman's Contra Corner

"Saudi Arabia cannot balance its budget unless the price of oil is at least $106 a barrel"
First appeared: Saudi Arabia’s Economy is Coming Apart at the Seams | New Eastern Outlook
Goldman eyes $20 oil as glut overwhelms storage sites - Telegraph
BMW REALLY wants you to buy a car, http://www.silverdoctors.com/us-econ...-out-of-money/
If the FED raises rates, they will wipe out the emerging markets. (they can't be saved anyway). If they don't raise rates, they will wipe out the hedge funds. Plus, " We must normalize rates ASAP to prevent a major crisis in Pension Funds of which the average hold 40% in government debt and cannot meet future obligations."

http://www.armstrongeconomics.com/archives/39604

Liar-loans to the rescue.

[Danny B]

more and more contraction

Th FED, reportedly has a toolbox full of tools. I posted from their "Bible" and it shows that their tools are defunct.
"Seven years after the Fed unleashed ZIRP and QE to "fix the economy", it has finally admitted that ZIRP and QE failed to do that" " in other words, the Fed's experiment has weakened the economy so much, its potential growth rate has been cut in half in the past decade. " Whadda you mean"experiment"?
"For example, if nominal growth is 3 percent and the debt GDP ratio is 300 percent, the implied equilibrium nominal rates is around 1 percent. This is because at 1% rates, 100% of GDP growth is necessary to service interest costs.' Bunch of effing "tools" they are.Here Is The Complete Scenario In Which The Fed Hikes Rates, Starts A Recession, And Launches QE4 | Zero Hedge
All this unconventional BS will do nothing for employment.

"During a liquidity crunch, there will be very little money in circulation, leading to very little economic activity, and under such circumstances, cash will be exceptionally important. Managing risks to liquidity (cash) makes the difference between being at the mercy of changing circumstances and having the freedom of action to respond to both opportunities and threats as they develop"
"As we have pointed out at the Automatic Earth many times before, trade is very vulnerable when the credit it relies on dries up, meaning that economically contractionary times typically lead to trade collapses. "

Nicole Foss presents: Challenge and Choices - The Automatic Earth
In 2007, I started a thread "The Long Cold Winter". https://eplaya.burningman.com/viewtopic.php?t=19613
I see a recent article with the same name. The Long, Cold Winter Ahead |
"Winter Is Coming" - Wall Street Economists At Work | Zero Hedge
Morality goes away = trust goes away = credit goes away = trade goes away. Stock up on imported beer, NOW.
Saudi produces oil for about $ 15 a bbl. EVERYBODY and their brother is trying to sell oil to meet deteriorating economics. How long can the higher-cost producers keep pumping? Many copper mines are selling copper for less than it costs to mine. What about U.S. oil producers? Rig count is down 60%. EVERYBODY lies about profitability. A large part of the energy sector is crashing; Short These Oil & Gas Companies - They Are Going To Zero | Seeking Alpha
NOBODY will finance U.S. oil producers because nobody will trust them. Nobody will take U.S. Treasury bonds in payment for imported oil,,, only cash or gold.
Better finish building your wood-gas truck.

[Danny B]

http://kingworldnews.com/the-500-trillion-ticking-time-bomb-that-will-devastate-the-global-financial-system/

The masters of finance are VERY worried. It just occurred to them that China planned to default all along, Masters of the Finance Universe Are Worried About China - Bloomberg BusinessDavid Stockman – This Will Scare The World To Death | King World News
Hmmm, I guess that it WAS and experiment
The FED meeting is in a few weeks. Just imagine the FED as a stationary train in the middle of the RR tracks. There are 2 trains loaded with high explosives converging from either direction.
Pray to all the gods that you believe in that the massive credit lockup doesn't take out the agriculture sector.

[Danny B]

( It turned out to be closer to $ 100 billion ) Even Michael Lewis Was Surprised Hollywood Bet on The Big Short | Vanity FairThe big Wall Street banks had become the dumb money.
YES, Wall street had become the dumb money BUT, it was your money that they were losing.

15 people.
On Wall Street, the losers in the collapse of the housing market are legion. The biggest winner looks to be John Paulson, a little-known hedge fund manager who smelled trouble two years ago.

Funds he runs were up $15 billion in 2007 on a spectacularly successful bet against the housing market. Mr. Paulson has reaped an estimated $3 billion to $4 billion for himself -- believed to be the largest one-year payday in Wall Street history.
"Michael Burry was one of the first investors in the world to recognize and invest in the impending subprime mortgage crisis. "

[Danny B]

Demmurage currency.Hang Onto Your Wallets: Negative Interest, the War on Cash and the $10 Trillion Bail-In( didn't work for Japan with their shrinking population) or low-interest loans to states Will it somehow go to the working man or just be handed out for the dole?; or by funding free tuition for higher education Yeah right. Just what we need, more unemployed students). Consumers will hit the malls when they have some new discretionary income to spend. Just what we need, buy tons more junk from China.
There are no simple answers. The simpletons in GOV haven't a prayer of coming up with a solution. The financial industry ignores social issues like; demographic crash, unemployment, falling core population, falling wages, pollution, birth-control, etc. The final arbiter will be the Grim Reaper.