Bubbles, Balloons, Needles and Pins
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M. C. Escher Meeting (Encounter) 1940 It’s no surprise that China has its own plunge protection team -but why were they so late?-, nor that Bei
[See the full post at: Bubbles, Balloons, Needles and Pins]Apparently the Chinese are as ignorant of economics as Americans.
LIES …. FAKE NEWS …. PROPAGANDA ….” …. 6%+ for a decade …. doubled in size in 10 years. And none of that is reflected in stocks?”
https://www.bbc.com/news/business-45910262
China has reported its slowest quarterly growth rate since the global financial crisis.
Third quarter growth misses expectations at 6.5%
Down 59% from its all-time bubble peak on October 16, 2007 (6,092)I’m going to start to be concerned when there is a shortage of popcorn and the Dow returns to the peak of the 2007 bubble. Watch the new entertainment program available at THE AUTOMATIC EARTH. (It is similar to “SURVIVOR”)
“SURVIVAL OF THE RICHEST CAPITALIST PREDATORS”
https://www.investopedia.com/features/crashes/crashes9.asp
The S&P 500 declined 57.8% from its intraday high of 1,576.1 on October 11, 2007 to its low of 666.8 on March 6, 2009.
There are more protections in the system against collapse that ever before and more awareness of what letting a crisis run wild will do to all national economies. This has made governments more likely to push on the regulatory side and more ready to dive in on the financial stability side. With any event approaching crash levels, we now get a near immediate government response aimed at slowing the panic and buying time for the market to adjust without collapsing systematically important institutions. (Related: Quantitative Easing: Does It Work?)
CAPITALIST PREDATORS are fighting among themselves.
Look at the proof …. refugees are on the move everywhere.
Quite so.
Communist China was able to become a market society because they were adopting Capitalism 2.0: Central bank and central planners, rigging stocks, bonds, loans, and development, with all insider favors and bailouts. ….Just like us.
They grow up so fast, don’t they?
Now the inherent “distortions” as they say, have ruined the flow of the market mechanism and the gears are all gummed up. Since the corruption, fraud, the sand and rust and sugar taffy is everywhere, in every gear and pinon, every official is involved, they all made their fortunes on corruption for a generation and know only this, they can’t just pull a lever and start fresh. Big trouble ahead.
And I’m talking about us. China may or may not be in the same situation. I don’t know. At least everyone over there understands there is no rule of law; only bureaucracy.
If you look outside of LA-LA-LAND, you can find windmills.
CAPITALIST PREDATORS are causing misery around the world.
United Nations cash provides a vital lifeline for 180,000 Syrian refugee families living in Lebanon. But that’s only 30 percent of the refugee families; there are not enough funds to cover them all.
The World Food Programme has to reassess the situation of all registered refugee families annually and make the decision to redirect its aid towards those who need it the most.Afghan refugees in Pakistan express little hope for the upcoming Afghanistan parliamentary elections but also dream of peace in the neighbouring war-torn country.
Some 3,000 Central American migrants prepared to cross into Mexico from Guatemala on Friday with hopes of eventually arriving to the United States. Busloads of Mexican federal police were gathering in Ciudad Hidalgo and a Mexican military helicopter flew along the river in anticipation.
https://www.wvi.org/topics/child-labour
https://www.wvi.org/laos/article/broken-dream-story-forced-labour
Human trafficking is the world’s fastest growing global crime and the third most profitable organised crime after the trade in drugs and arms trade. An estimated 1.2 million children are trafficked every year for labour or sexual service purposes.
For more than a year, children have been living in fear of the violence in the Kasai region of the Democratic Republic of Congo.
The war in Yemen is now the world’s worst humanitarian crisis, with more than 22 million people — three-quarters of the population — in desperate need of aid and protection,United Nations Secretary General Antonio Guterres said.
As the conflict enters its fourth year, millions are without access to clean drinking water and the country is at high risk of a cholera epidemic, Guterre said at a donor conference in Geneva on Tuesday.
In Yemen, 2018 looks like it will be another grim yearThe Saudis have repeatedly justified their blockade of the western port of Hodeidah by arguing it is a major entry point for smuggled materiel. But fuel, food, medicine, electronics and arms enter ports across Yemen’s southern coast and over land borders with Saudi Arabia and Oman. Overland trade is worth tens, if not hundreds, of millions of dollars a month for everyone from the guys with guns at checkpoints to the top leadership on all sides. Weapons have become so widely available that the price of AK-47s and ammunition has gone down since the war began. Meanwhile, some groups are benefiting from the sale of oil and gas both to local and international markets.
Etc.
Quoting Charles Hugh Smith during the last few minutes of the interview linked below (issued today):
“I think what’s going to happen in the next, say, five years between like 2018 and 2022 / 2023 is we’re going to get a huge recession, you know, depression with tons of unemployed people, debts that are going to default, pensions that are going to go unpaid, and there’s going to be a political crisis, and the Fed, if it still exists, which it probably will, they’re going to try to print their way out of it and they’ll just start GIVING AWAY TRILLIONS TO TRY TO KEEP THE ECONOMY AFLOAT. BUT THAT WILL CREATE INFLATION and rob all of us of our purchasing power, right, because our money is just fiat currency, right, it’s just based on trust. And, so, as people lose trust in paper money, then the economy really will crash, and then we’ll follow the path of Venezuela.”
Earlier in the interview, Smith states, “The Fed is one of the most hated institutions because people finally after a decade of people like you and me talking about it, it’s seeped into the national consciousness that the Fed saved the super-wealthy, not the rest of us, and now … they don’t have the political leeway to save the banks again. There will be huge political resistance to that.”
So, to whom will the Fed be “GIVING AWAY” trillions of “printed” dollars? This certainly flies in the face of the deflationary message maintained for years by the Automatic Earth. Isn’t this source of inflation already exhausted? Many years ago, TAE maintained that the inflation was almost entirely behind us, and that further inflation was becoming increasingly impossible. After all, interest rates can’t go much below zero.
Ilargi: more than anything else, I’d appreciate a comment as to whether you agree with Smith’s prediction of inflation (after a period of bankruptcies), or whether you still see deflation as the driving force for the western nations’ collapsing economies over the coming decade. And again, if $trillions are “given,” then to whom?
DS, the hyperinflation has already happened. The money has been printed. Too much money for the US economy to absorb. It just hasn’t been spent into the economy because we have not yet reached the psychological tripping point, the sudden loss if confidence. It may be that the trigger is a deflationary collapse first, followed by a repeat of the 2008 playbook, but on an even larger scale. The establishment institutions remain confident in the system, at least as measured by their behavior so far. The little guy might have lost confidence, but who cares? He is a slave to the system. Where can he go? I see a huge pile of tinder but no sparks anywhere on the horizon.
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