Economic pressures

[Danny B]

www.teleSURtv.net/english

Stockman writes about the great unwind; Now Comes The Great Unwind—-How Evaporating Commodity Wealth Will Slam The Casino | David Stockman's Contra Corner

Armstrong calls for the stock market to go to nose-bleed heights. I hate to disagree with him and Socrates but, maybe he missed something.
He says that the stock market will go WAY up because "money has to go somewhere". I'm not so sure. A LOT of money has just evaporated because it wasn't real wealth,,, only a hologram.
Veterans Today has their own take on the situation; Has the Globalist NWO Plan become a Titanic headed for an Iceberg? | Veterans Today
Brazil is up at bat pretty soon; The Inescapable Trap of the ‘Dollar Short’——– Brazil Edition | David Stockman's Contra Corner
As you can see, 2016 isn't going to be boring.

[Danny B]

US stocks close out the worst year for the market since 2008 We can look forward to 2016 being worse.
David Einhorn is a very competent investor; "Einhorn's Greenlight Fund Ends Second-Worst Year Down 20%"
Forbes, "In Europe, 2016 Will Be The Year Of Lawsuits"
Armstrong has lots to say about 2016 AND 2017. He has written that investment will flow out of public debt and into private debt. I can't see that. 50% of U.S. corporate bonds are junk rated. There are about 4,000 publicly traded companies in the U.S. Only three possess the top-most credit rating, which, in the judgement of the three big ratings agencies, means that these businesses will likely meet its obligations under most situations.
Consumption is crashing. Why should anyone buy stock in a company that has few customers?
Armstrong; "What does the BIG SHIFT mean? It means that as we face a meltdown in Socialism which has taken hold of Western Governments destroying our underlying democratic foundations"
"Europe is operating under a dictatorship,,,, The people of European nations have absolutely no means to reclaim their sovereignty by any method other than force. And to prevent that, the EU Commission wants to create its own army."
2016 – the BIG SHIFT | Armstrong Economics2017 the Year from Political Hell | Armstrong EconomicsYeah,,, the edge of what?China wants to switch over to a domestic consumer economy but, they don't want wages to rise or they will be less competitive on the world market. Where are these legions of consumers going to get money to buy stuff?

[Danny B]

Hormegeddon

When we use credit, we are using tomorrow's earnings to party today. We are moving consumption forward. This works for a while but, eventually catches up to us. Today is the tomorrow that we didn't worry about yesterday.
Carmen Reinhart and Kenneth Rogoff wrote about the effects of debt saturation episodes that occurred during the last 8 centuries. They tell us that the stock market won't have any earnings for the next 12 years.

Yanis Varoufakis said that 1/3 of consumption was done by people who rent out their money and don't produce anything of value. If 1/3 of well-heeled lose their income from the markets, they are going to cut out a lot of consumption.
Brazil went way up in the boom and it is going way down in the bust; Brazil Heads for Worst Recession Since 1901, Economists Forecast - Bloomberg BusinessThe Daily Bell - Bill Bonner: His New Book, 'Hormegeddon' and Other Insights
Here is a slide show on the same subject; Hormegeddon: How Too Much Of A Good Thing Leads To Disaster
Edit;

[Danny B]

China collapseing and OPEC beheaded

50% of Chinese companies can not afford the interest on their debt. Bank of America said that there is a 100% chance of China collapsing. "It's Coming To A Head In 2016" - Why Bank of America Thinks The Probability Of A Chinese Crisis Is 100% | Zero HedgeU.S. Economic Collapse: Marc Faber Has a Dire Warning for Americans

Then, there is OPEC OPEC Beheaded! - The Daily Reckoning
I wasn't aware that Canadian tar sands oil is going for $ 20 a bbl. They frack the tar and use the resulting oil to heat the tar to transport it. They are using at least 1 bbl of oil-energy to deliver 1 bbl of oil.
Revolution is in the air. It will start with famine. All the oil producers are spending down their reserves of cash. Food imports will be C.O.D.

Edit; I keep leaving out one piece of the puzzle. https://www.trunews.com/jim-willie-p...HWpgpyqQlFU.99
America has $ 18 trillion in external GOV debt and China has none.

[Danny B]

Saudi Arabia sliding away

As everybody knows, the stock market is pretty bumpy. The Chinese stock market is more than just bumpy. it keeps crashing by about 7% per episode. Not a big surprise when you consider that it doesn't have any earnings.
Spot The Most Manipulated Market In The World | Zero Hedge

The Sauds were just one tribe in the area when the Anglo-American oil interests picked them to be oil barons. The other tribes were left out. There is another division in the area that is becoming increasingly important.
"The map shows that "due to a peculiar correlation of religious history and anaerobic decomposition of plankton, almost all the Persian Gulf's fossil fuels are located underneath Shiites," Schwarz noted."

Read more: Riyadh's Nightmare: Saudi Shiites Could 'Secede' and Take All Oil to Iran
The Saudis need higher oil prices and they are trying to destabilize their competitors. The destabilization is working but, not in the way that they planned.
Saudi Kingdom Now More Likely To Default Than Portugal
Iran Rev Guard Warns Of Complete Saudi Collapse
The Sauds have pissed off the sunnis and there is great danger that the sunnis may break away and cut off the oil.
""If this section of eastern Saudi Arabia were to break away, the Saudi royals would just be some broke 80-year-olds with nothing left but a lot of beard dye and Viagra prescriptions," Schwarz observed."
The Sauds are running out of money but, they have started an expensive war with Yemen. They are not winning.
Also, they are pumping in seawater into their wells to extract more oil. Some wells put out 98% water.

[Danny B]

China, Oil and Markets: It’s All One Story - The Automatic Earth

So, how did we get to where we are?
"The Bank for International Settlements (BIS) - the temple of monetary orthodoxy in Switzerland - has been waiting for this moment, combing through the archives of economic history to mount an unanswerable assault.
The BIS believes it has found the smoking gun in a study of recessions in 22 rich countries dating back to the late 1960s. The evidence suggests that the long malaise of the post-Lehman era - and the strange episode that preceded it - can be explained almost entirely by the destructive effects of boom and bust on productivity growth."
"The BIS has come out and said that the Central bakers are complete idiots. "It has implicitly indicted the US Federal Reserve and fellow central banks for perverting the machinery of interest policy to conjure demand"
Is the whole theory of secular stagnation a hoax? - Telegraph
The B.I.S should have checked in with Reinhart and Roghoff,,, or maybe Armstrong.

[Danny B]

Saudi slipping fast

"US diplomat convinced by Saudi expert that reserves of world's biggest oil exporter have been overstated by nearly 40% "
The shocker; now that Saudi has been pumped dry, they want to sell their oil company; Saudi Arabia considers IPO for national oil group, Aramco | Business | The Guardian
They are pumping water; http://static2.businessinsider.com/i...0000/chart.jpg
Here is a drawing of the depletion on their main field; http://static2.businessinsider.com/i...0000/chart.jpg
Their currency is falling. Their GOV is corrupt and coming apart. They dare not take on Iran which has lots of oil. Here's Why You Don't Need Wikileaks To Know That Saudi Oil Reserves Are Overstated - Business Insider
They also started a war with Yemen that is very costly and will go on for a long time. They claim that they can hang in there for a few years with oil at $ 40. Canadian crude oil is under $ 20.

[Danny B]

They have to blame it on productivity. They never mention consumption or wages.This Is The $3.5 Trillion "Neutron Bomb" That Keeps Kyle Bass Up At Night | Zero Hedge
$ 108 billion in one month is a LOT of bucks. They are trying to get rid of dollars.
"China Buys Another 14 Tons Of Gold In October "
When 3 Trillion Just Isn't Enough: Analysts Fret Over "Worrying" China Reserves
When China goes splat, it is going to be bigger than Krakatoa.

The bankers in India are still hard at work trying to steal all the gold; https://www.sprottmoney.com/blog/the...on.html?acc=17
Even the e-trade baby is going broke; https://www.youtube.com/watch?v=AYrpROr9Gmk

[Danny B]

Former Fed President: Fed Has No Ammunition Left! | SilverDoctors.com
Vid; https://www.youtube.com/watch?v=7nuzT3rchPUMeet the Market: China Suffers Triple Blow
It is also B of A that said there is a 100% chance of China crashing.

UBS doesn't have anything good to say; A Disturbing Warning From UBS: "Buy Gold" Because A 30% Bear Market Is Coming | Zero Hedge
Charles Huge smith; "The essence of neoliberal high finance is the vast majority of gamers in the casino lose security and wealth, while the House (the state and the banks) skim the resulting profits."
oftwominds-Charles Hugh Smith: 2016 Theme #5: The Systemic Failure of High Finance
"As this Secret Reset is rolled out the first thing we are likely to see is imported goods rising significantly the first month (maybe even 20%) and another 20% soon after. The sky could be the limit. The standard of living in America (unless free energy is rolled out) is likely to drop to the level of Mexico over a year or two, maybe faster."

http://www.veteranstoday.com/2016/01/09/the-secret-global-reset-agreement/

Well, shoot,,, when you lose your main value-added sector, you can expect the rest of the economy to be affected.

So, somebody is going to pull the plug out of the wall.
Jim Willie said that we will go to gold-settlement with our trading partners. No more credit or vendor financing. Free energy isn't going to save anything. It can't be implemented fast enough.
Y'all better learn to be breatharians; http://www.breatharian.com/wileybrooks.html

[Danny B]

The reality;
The end is already here for the people who have no job prospects. Many millions of people world wide think that they are rich. When the holographic money fades out, they will stop spending.

Edit; Hugo Salinas Price warned about a complete breakdown of international trade.
"Commerce between Europe and North America has literally come to a halt. For the first time in known history, not one cargo ship is in-transit in the North Atlantic between Europe and North America. All of them (hundreds) are either anchored offshore or in-port. NOTHING is moving.

This has never happened before. It is a horrific economic sign; proof that commerce is literally stopped."

https://www.superstation95.com/index.php/world/750

I find this pretty hard to believe.

[Danny B]

70% of activity in China is "overcapacity. ?Future Economic Historians? Will Probably Call the Period That Began In 2007 ?the L-O-N-G-E-S-T DEPRESSION? | Zero Hedge

B of A is a lot more worried than they were a month ago;
Page Not Found | Zero Hedge
16-01-11/panic-building-bofa-admits-asks-how-bad-could-get
When wage growth crashed in about 1970, the FED blew sequential bubbles to keep things going. Each bubble in turn, crashed. This will be the last bubble; http://www.24hgold.com/english/news-...hoenix+Capital
The depression is expected to last between 20 and 26 years.

[Danny B]

[Danny B]

The China Syndrome

It's important to understand that demand drives profits on the margins: of ten sales, the first nine sales just cover production and overhead costs; only the last sale generates substantial profits.
Now that China's demand is faltering, global demand is weakening and profits are collapsing because China provided the critical marginal demand that fuelled immense profits.
The China Syndrome: The Coming Global Financial Meltdown | Zero Hedgeah yes, beware those feedback loops.Who could he possibly talking about? Well, if the ships stop, we don't need the trains.Not be choice.No money, honey.

[Danny B]

Double Barreled Hidden Q.E. to Infinity

So, $30 oil is the trigger for the banks to pull support for the oil industry????????????Wait a minute, they will be supplying us with oil when our oil industry us bankrupt.
"The USMilitary and Langley threats will not work much longer, as they are in retreat. The US must accommodate with the New Scheiss Dollar in order to assure import supply, and to alleviate the many stalemates to come. The United States finds itself on the slippery slope that leads to the Third World, a Jackass forecast that has been presented since Lehman fell "
The latest hardware developments from Russia sealed our fate because we can no longer go around the world blowing up everybody who does not let us rip them off.

[Danny B]

The Coming European Revoluition | Armstrong Economics

Mexico is selling oil at a loss AND oil sales support their entire social net. Mexico Oil Price Drops Below Production Cost
China seems to have a problem with prominent people going missing. Amid Stock Market Panic, Dozens of Chinese Billionaires Are Mysteriously DisappearingOnce it has been officially denied, you know that it is the truth.