Debt Rattle September 19 2019

 

Home Forums The Automatic Earth Forum Debt Rattle September 19 2019

Viewing 12 posts - 1 through 12 (of 12 total)
  • Author
    Posts
  • #49960

    Pablo Picasso Cafe Royan [The Coffee] 1940   • Foreign Exchange Trading Soars to $6.6 Trillion a Day, US Dollar is King (WS) • Repo Chaos Tests W
    [See the full post at: Debt Rattle September 19 2019]

    #49961
    V. Arnold
    Participant

    Pablo Picasso Cafe Royan [The Coffee] 1940
    Lovely. I love coffee and it certainly deserves a place in our daily lives…

    What is the saying? A picture is worth a thousand words?
    Bingo; this picture.
    Thanks Ilargi…

    When a system is so completely corrupt; why in all good conscience, would one continue to give it any relevance?
    Unless I’m delusional (a possibility) I’ve left the system as defined and gone to metals.
    I’m still a prisoner of the dollar because my income is in dollars; but I’ve done my best to mitigate that…

    #49962
    Dr. D
    Participant

    “Repo Chaos Tests Wall Street Confidence in NY Fed’s Williams (R.)”

    “Marty [Armstrong]; You warned that there would begin a cash shortage and real rates would rise in the private sector starting in September after Labor Day. Ok, it’s about 15 days past that marker and Repo rates have gone completely nuts hitting 10% forcing the Fed to intervene. They were calling it Armstrong’s revenge here in the dealing room. It certainly appears the Fed has lost control of short-term rates as you warned. Is this the start of the chaos you have warned about?”

    “Indeed, the Fed has lost control of short-term rates. Trump can jawbone all he wants for zero to negative rates. Sorry! The free markets are showing something else lies in wait…The Repo Rate reached a high of 10% by about 9 am just before the stock market opened.”

    The Panic in Interest Rates is Just Getting Started

    Let’s do a review: Originally Britain started two wars with the U.S. over Hamilton’s “American System” where the government itself printed money for needed projects. No banks profited: not allowed. Later, the Fed was installed where in order not to be ‘political’ – you know, like Fed governors picking Presidents, picking corporate winners and running everything in the whole economy? — the U.S. borrowed money from and were beholden to billionaire bankers like JP Morgan.

    So what happens when there are 0% interest rates? Not really a loan, is it? And the Fed is also useless because they no longer set interest rates or “regulate” the economy. They just print money for free and hand it to the Treasury. Pretty redundant. What does the Treasury need the Fed for then?

    Okay, so what happens when there are NEGATIVE interest rates? In that case, the billionaire banks are PAYING the U.S. people and government for the PRIVILEGE of being a monopoly bank. And isn’t that how it is supposed to be?

    Now this will cause other problems – for one thing, it signals that money is worthless and you should get out of cash and bonds into anything, like oil, gold, or stocks. A Crack-up VonMises. But if you WANT to destroy the Fed, the petrodollar, and the billionaire bankers that undermine democracy and install puppet rulers with unrestrained and unaccountable power, it looks pretty good, doesn’t it?

    What happens next?
    AZ
    You return to a commodity (gold) standard, or in our case, a digital one. Gee, not like written in white papers since 1970 and published on the front page of the Economist in 1988, no? What do you think the ‘null’ symbol is for the new ‘coin’? It’s nothing. It doesn’t exist. It has no underlying value. It’s virtual money.

    And IF you were doing this, wouldn’t you have to prosecute and unseat the universal manipulation and go back to free, real markets?

    “Prosecutors, Regulators Broaden JPMorgan Precious Metals Desk Probe (CNBC)”

    Huh. Wot a coincidence! Morgan may want to keep rigging and pick the president, but I do not think the TRADERS are going to run 10-in-the-Pen to help them!

    “Rothschild Emerges from Shadows for Centenary of London Gold Fixing (Manly)”

    Rothschild gave up their seat in London after stealing all of England’s gold in “Brown’s Bottom”, a few months before the whole rigging-and-fixing thing got white hot back when. Got to get out of Dodge while you still have the dough and no Marshall on your tail. Rigging did indeed persist – along with the GFS holding together a few years, but honestly no one expected it to hold together this long. No one saw the U.S. printing $40 Trillion off-book to make it.

    “UK has 12 Days to Set out Brexit Plans – Finnish PM (BBC)”

    Or else what? They invade? Or they therefore de facto approve of and indeed force a “No Deal” on BoJo? He’ll be super-duper mad about that. “Oh noe Finland! Don’t throw me in that briar patch!”

    “Purdue Pharma Seeks To Halt Opioid Suits Against Company, Sacklers (R.)”

    This is why it’s so infuriating and necessary for regulators to do their jobs, or rather, for law enforcement to actually investigate and indict enormous open coast-to-coast, multi-billion dollar crimes, because it is indeed legal for the company to go bankrupt and shelter private assets, and if you break that, you break a very base level of modern capitalism. So…how did their crimes get this big y’all 30 States’ Attorneys General? Nobody knew nuttin’ up ‘til now? 30,000 opioid deaths a year for a decade with 1,000 prescriptions for every man, woman and child in some counties not a clue for ya?

    Do me a favor: go arrest yourselves first, and the Sacklers after.

    “Scientists Set out How to Halve Greenhouse Gas Emissions by 2030 (G.)”

    By 2030? You might as well say “by Thursday”. Here’s the only way: “Halve the Population by 2030,” and they are slap leather for it every day. Humans are bad m’kay? Shut off every delivery truck, coal plant, ship, medical plastics plant, shut off every air conditioner and every furnace worldwide, be it oil or gas, let your house fall in and live in caves and tents, letting typhus and hepatitis run wild. Oh wait! They are doing EXACTLY THAT in Eco-Green California! It’s called being “sick,” “homeless,” and “dead” but it sure is environmental! Greenies will even cannibalize your bodies! Soylent Green is People. And they wonder why people have turned out against these maniacs, and don’t trust their ‘science’.

    They may need to get a taller keeper to teach that Giraffe how to Giraffe.

    #49963
    zerosum
    Participant

    Can I, also, peek behind the curtain?


    “So what happens when there are 0% interest rates? ….

    MMT

    …. What happens next?”


    A different social/economic structure.

    Could it be a better social/economic system?
    Maybe…. for some people.
    If you happen to be homeless. You might be able to find an empty home to squat into with lots of junk that you could burn in the fireplace.

    #49964
    John Day
    Participant

    http://www.johndayblog.com/2019/09/completely-different.html
    Asymmetric-warfare-changes-everything update:
    ​ ​We are the Houthis and we’re coming to town. With the spectacular attack on Abqaiq, Yemen’s Houthis have overturned the geopolitical chessboard in Southwest Asia – going as far as introducing a whole new dimension: the distinct possibility of investing in a push to drive the House of Saud out of power…
    ​ ​The only missile parts shown by the Saudis so far come from a Yemeni Quds 1 cruise missile. According to Brigadier General Yahya Saree, spokesman for the Sana’a-based Yemeni Armed Forces, “the Quds system proved its great ability to hit its targets and to bypass enemy interceptor systems.” …
    ​ ​My conversations with sources in Tehran over the past two years have ascertained that the Houthis’ new drones and missiles are essentially copies of Iranian designs assembled in Yemen itself with crucial help from Hezbollah engineers.
    Professor Mohammad Marandi from the University of Tehran, who has very close relations with the Foreign Ministry, is adamant: “It didn’t come from Iran. If it did, it would be very embarrassing for the Americans, showing they are unable to detect a large number of Iranian drones and missiles. That doesn’t make sense.”…
    ​ ​Now we are entering a whole new dimension in asymmetric hybrid war.
    ​ ​In the – horrendous – event that Washington would decide to attack Iran, egged on by the usual neocon suspects, the Pentagon could never hope to hit and disable all the Iranian and/or Yemeni drones. The US could expect, for sure, all-out war. And then no ships would sail through the Strait of Hormuz. We all know the consequences of that.
    ​ ​Which brings us to The Big Surprise. The real reason there would be no ships traversing the Strait of Hormuz is that there would be no oil in the Gulf left to pump. The oil fields, having been bombed, would be burning.
    https://www.asiatimes.com/2019/09/article/how-the-houthis-overturned-the-chessboard/

    ​ ​In comments to reporters on Wednesday, President Trump is continuing to reject the idea of starting a war with Iran. After dismissing Sen. Lindsey Graham’s (R-SC) calls, saying not starting a war was a sign of strength, he continued to roast Graham, citing Graham’s support for the Iraqi War, and saying reporters should ask “how did going into Iraq work out?“

    Trump Mocks Sen. Graham’s Calls for War, Asks How Iraq Worked Out

    Russian President Vladimir Putin has during talks with Saudi Crown Prince Mohammad bin Salman called for an unbiased investigation to be carried out into the recent attack on Saudi oil facilities on 14 September, the president’s press service reported.
    ​ ​”The issue of the attack on Saudi oil refineries has been discussed [during talks]. Vladimir Putin expressed his concern with regard to the situation and has called for conducting a thorough and unbiased investigation of the incident”, the statement said.
    https://sputniknews.com/world/201909181076831796-putin-calls-for-unbiased-investigation-of-saudi-aramco-attacks-in-talks-with-crown-prince/

    #49965
    Charles Alban
    Participant

    re the MAX issue. i understand the problem with the plane is that the MAX version uses larger engines and this has upset the aerodynamics. the article I read said that if this had been Howard Hughes he would have just had the plane redesigned to accommodate the larger engines.

    but with the current regulatory environment this would entail recertifying the plane as a new aircraft which would be prohibitively expensive and time consuming. so they came up with a quick fix.

    you could argue that it is the certification process that is to blame.

    but mass airtravel is an environmental disaster anyway, so anything that dissuades people from flying is a good thing. i quit flying years ago. i take the train or i don’t go.

    #49966

    It wasn’t the cost of (re)designing, from what the first reports said, but that Airbus already had a new plane ready in the same category, so time was the issue.

    #49967
    boscohorowitz
    Participant

    A cui bono review suggests that not only do the Houthis benefit but also, the USA. Our military weakness is already become apparent to enough of the world that the rest would soon catch on, so having the missiles/drones get through hardly matters at this point: that screw has already turned.

    Meanwhile, we have another pretext for ‘protecting’ Saudi Arabia by taking over. Everybody hates the Saudis so having odious Unca Sam in there won’t be all that infuriating, at least for a few years, which is as long as anything will hold together in this era.. Meanwhile, we can control the oil flow from Saudi Arabia. And if somebody blows them up again, so much the better for North American shale oil sellers.

    Either way, our economy, the Euromerican economy in general, will tank when energy costs rise too high, whatever fiscal/financial shenanigans have also eroded its base.

    For USA, either controlling or knocking out Saudi oil production is a win either way, and the defense contractors and the Dominionist nutheads infesting our armed services, would enjoy the process.

    In the long run, the Houthis may well not benefit if the USA decides to invade which would require slaughtering Yemenis on an industrial scale.

    Oh, we’re likely to outdo Hitler, Mao and Stalin combined when we’re through.

    #49968
    anticlimactic
    Participant

    John Day

    There are at least two photos of the devices used in the Saudi attack. Both photos were obviously taken in the same room but give very different impressions!

    The first shows the remains of a missile. I assume this is the one most shown in Western media as it supports the idea of the attack from another country.

    The second photograph distinctly shows the remains of seven small delta winged drones – about 2 to 3 metre wingspan which can ONLY have been launched locally, supporting the idea of a Houthi attack using suicide drones.

    Anyone who claims the attack was from Iran or any other country is lying!

    The drone photo can be seen on the twitter.com feed “/NewsAlertUK_”

    #49970
    Doc Robinson
    Participant

    An article published yesterday that counters the NYT whitewash piece on the 737 MAX:

    https://newrepublic.com/article/154944/boeing-737-max-investigation-indonesia-lion-air-ethiopian-airlines-managerial-revolution

    Crash Course: How Boeing’s managerial revolution created the 737 MAX disaster
    by Maureen Tkacik, The New Republic
    September 18, 2019

    Any program coded to take data from both sensors would have had to account for the possibility the sensors might disagree with each other and devise a contingency for reconciling the mixed signals. Whatever that contingency, it would have involved some kind of cockpit alert, which would in turn have required additional training—probably not level-D training, but no one wanted to risk that. So the system was programmed to turn the nose down at the feedback of a single (and somewhat flimsy) sensor. And, for still unknown and truly mysterious reasons, it was programmed to nosedive again five seconds later, and again five seconds after that, over and over ad literal nauseum.


    And then, just for good measure, a Boeing technical pilot emailed the FAA and casually asked that the reference to the software be deleted from the pilot manual.


    So no more than a handful of people in the world knew MCAS even existed before it became infamous. Here, a generation after Boeing’s initial lurch into financialization, was the entirely predictable outcome of the byzantine process by which investment capital becomes completely abstracted from basic protocols of production and oversight: a flight-correction system that was essentially jerry-built to crash a plane. “If you’re looking for an example of late stage capitalism or whatever you want to call it,” said longtime aerospace consultant Richard Aboulafia, “it’s a pretty good one.”

    …Indeed, most of Boeing’s response to the MAX disasters has involved disseminating a kind of misinformation and doubt that makes the crashes look more complex than they really are. First Boeing issued, then instructed the FAA to circulate, a terse directive to the aviation community essentially copying-and-pasting the 737 flight manual’s instructions for handling a runaway stabilizer—a rare (but terrifying, and well-understood) situation in which the plane’s horizontal stabilizer doesn’t respond to a pilot’s commands. Then, when the airlines informed pilots about MCAS, they dispatched executives to talk pilots off the ledge about the deadly software—explaining, in the words of a Boeing vice president Mike Sinnett to the American Airlines pilots’ union, that Boeing simply didn’t want to “overload the crews with information that’s unnecessary.” Sinnett also suggested that an MCAS malfunction would never happen to American pilots, because the AOA “Disagree” light, an optional feature for which American had paid extra to outfit its fleet, would alert the crew before takeoff that the plane’s angle-of-attack sensors were contradicting each other and that the plane was not airworthy.


    That part turned out to be a lie. (The plane needed to be at least 400 feet in the air to activate the Disagree light—at which point the pilots, already preoccupied with getting the plane in the air, would only have a few seconds to turn it around.) But the idea that some safety feature existed that would have saved American planes perpetuated the fiction that an MCAS crash couldn’t have happened in a civilized country, even if its pilots were ill-informed enough to fail to remember the runaway stabilizer checklist.
..

    But… The Ethiopian pilots had followed the Boeing checklist. They had switched the stabilizer trim cutout switches to the “cutout” position and attempted to turn the nose of the plane back up using the manual crank—they just couldn’t. In accordance with the prescribed fix for an alert they were getting on the flight control computer, the pilots had been flying extremely fast, and above the speeds of about 265 miles per hour at which the manual trim wheel became unbearably heavy…

    The upshot was that Boeing had not only outfitted the MAX with a deadly piece of software; it had also taken the additional step of instructing pilots to respond to an erroneous activation of the software by literally attempting the impossible. MCAS alone had taken twelve minutes to down Lion Air 610; in the Ethiopian crash, the MCAS software, overridden by pilots hitting the cutout switches as per Boeing’s instructions, had cut that time line in half. Lemme had seen a lot of stupidity from his old employer over the years, but he found this whole mess “frankly stunning.”


    Lemme was on the brink of going public with his analysis of the manual crank fail when a federal agent showed up at his door with a subpoena demanding all his electronic correspondence. He was dumbfounded that the feds wanted talk to someone who hadn’t worked at Boeing in 22 years, and a little concerned that the criminal probe would “chill the open dialogue” he considered foundational to a functional safety culture..

    .

    #49971
    ezlxa1949
    Participant

    By one estimate we can’t do much about reducing CO2 levels for a thousand years. Stable. Horse.
    But there IS way to cool the climate using THE greenhouse gas. Look here:

    Part 1 (15m 46s) https://www.youtube.com/watch?v=uBngaoG_-6A
    Part 2 (11m 24s) https://www.youtube.com/watch?v=mMFNqaBXBwo

    The real question is whether the human race and its BAU-obsessed leaders will or can do any of it.

    #49972
    VietnamVet
    Participant

    The 737 Max, Purdue Pharma and Houthis revenge attack show that the Emperor has no clothes. Indeed, in fact, with the UK self-destructing, there is no Empire. Israel and Saudi Arabia must learn to live with their neighbors or they will vanish in the convulsions of the end of civilization that they initiated. Likewise, to survive climate change, the USA must convert the wealth that it spends on warfare to protecting mankind and the environment; if not, it will cease to exist.

Viewing 12 posts - 1 through 12 (of 12 total)
  • You must be logged in to reply to this topic.

Sorry, the comment form is closed at this time.