Debt Rattle February 24 2016
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Gordon Parks Harlem, New York 1943 • Fantasy and Magic: A New Central Bank Approach (WSJ) • Draghi Has Two Weeks To Pull Another Rabbit Out Of The Bag
[See the full post at: Debt Rattle February 24 2016]400 dead? What an obscene understatement; and no mention of the10,000 missing “migrant” children; almost certainly now in slavery.
On the Perpetual Tepid War Economics front: https://www.washingtonpost.com/opinions/the-exotic-new-weapons-the-pentagon-wants-to-deter-russia-and-china/2016/02/23/b2621602-da7a-11e5-925f-1d10062cc82d_story.html
A billion here, a billion there- is peanuts, of course; but the difference these are “real” dollars paid to real job holders- most likely inside the USA, until we outsource our weapons production to the lowest bidder-
Great economics; consumes petroleum, consumes steel, etc.; and constantly creates more demand for itself.
Confirmed: China tracking basket of currencies, not the US$.
https://www.bloomberg.com/news/articles/2016-01-11/pboc-s-ma-sees-stable-yuan-as-peg-shifts-to-basket-from-dollarUS$ moving up in a black hole of deflation? If the US$ is rising, then how come the whole world is still selling it? Wouldn’t they want to keep them as reserves to ward off the attacks on their own currencies?
So, could we conclude that the entire world is rejecting the US petrodollar, going around it, and cutting the US off from banking, finance, and trade, with shipping, the Baltic Dry and inventory (e.g. at WalMart) drying up in the US? That is followed by the end of technology as the FBI tries to push a new back door on Apple after they were caught with back doors in Cisco, Intel and other core gear. If you’re going to be compromised, the least you can do is pay less for it from China.
US$ goes up as the “synthetic short” of world-wide $ debt makes a constant call, and uncertainty drives everyone into the Treasury bond. But that cannot be sustainable, as worldwide economy is dead (see oil use) and the debt cannot be paid back or even serviced. At that point the US will have to default on their own currency, likely with an internal vs external solution.
It takes time and steps, but isn’t that what China pegging to the basket means?
The Dutch Prosecutor is backtracking on the MH-17 story:
“MH17 – DUTCH PROSECUTOR OPENS DOUBT ON MH17 EVIDENCE”
https://johnhelmer.net/?p=15188
I wonder how they will try and spin the story now. Who are they going to blame? Are they going to tell us that it was an “honest mistake” by a Ukrainian Air Force pilot?
In Australia, despite the loss of 26 Australians, there is a total blackout on anything that might contradict the official line. The Victoria Coroner refused to hear the evidence of the Australian Federal Police and went on to say that he agreed with his colleague in the Netherlands that it was Russia’s fault. It is not part of the job of a coroner under British/Australian law to decide on who is guilty.
Much the same thing happened in the UK with the fake Litvinenko Enquiry. The “judge” came out with amazing statement that it was “probably” ordered by Putin – while providing no evidence.
Someone in Russia has a sense of humour and is warning people against smoking by claiming that “Smoking kills more people than Obama. Don’t Smoke! Don’t be like Obama!”
https://www.rt.com/news/332947-obama-smoking-kills-campaign/
Regarding the Banksters….. why don’t we use their greatest tool against them???
Fractional lending.For every dollar we remove from their books, they have $9 LESS money to lend.
Simple.If we do that quietly and en-masse, then do the math :))
Let’s call it Active Resistance, eh?The Saudi ruling classes are going totally bananas.
Here is a Saudi “political analyst” totally losing his cool on TV. He is unable to speak (in Arabic) coherently and is stuttering. Furthermore, he claims that Saudi Arabia has had nuclear weapons for a long time and the Great Powers are aware of it. It comes with subtitles:
Meanwhile, the Yemenis have apparently sunk, by rocket, their 10th Saudi naval ship that approached their coast in the Bab el Mandab Straits – where the Red Sea meets the Indian Ocean.
https://en.farsnews.com/newstext.aspx?nn=13941205001180
It is amazing how all this stuff is not in the MSM.
Larry Summers is solving that for us. I realize negative interest rates have a number of effects–not just the ones they anticipated. In theory (which I’m not sure they believe) it would encourage people to take out their savings and spend it on foolishness that stimulates the economy. –Foolishness because if it returned a profit, they would be investing in it already. Second part is, yes, they steal working people’s money who don’t have offsetting tax shelters and investments, and give that money to the banks rather than following 1,000 years of law and restructuring in bankruptcy. Robbing the poor to give to the rich, as usual.
Here’s the unexpected though: if you have an economy with very high debt that Federal Marshals are arresting college students for–that is, highly dangerous, extractive debt–and you have a cushion of savings that’s about to be stolen, and you have no real, safe investments that pay interest, then what do you do? Obviously you take your money out of banks before they steal it and pay off your debts. You save both the 5%-19% interest loss and the 1%-4% negative interest rate loss.
Okay, the banks and the rich get paid. Wonderful. Problem? Money=debt. So the only way to destroy money is to repay debt. …With 30:1 leverage. Thanks to Summer’s brilliant plan, the money supply contracts steadily, leveraging the Deflation with rocket boosters–in this case real “D” Deflation by definition, a contracting supply of money and credit. The banks get paid on the front end, but at the same time, the value of the assets/collateral that back their balance sheets drop inexorably. It cannot be fixed until the debt is paid or interest rates go positive and normalize. Because, hey, math + reality.
Bye bye nitwits. Too smart by a half. And going cashless? Sure, nice try. Guess what? Drugs are ALREADY illegal, most of the U.S. is ALREADY in prison, and it’s still easier to buy heroin than cold medicine. I don’t know what will become the de facto cash replacement–cash maybe, as happened with discontinued Iraqi dollar in Kurdistan–or Tide soap (already true), or minibar bottles, but you can bet your life that something will. Cash exists even in maximum security prisons and you’ve got the entire economy below a certain level, and the lives of every poor man at risk. So they can make life horrible–and maybe that’s the real point, killing millions–but they won’t succeed at either of these things.
Jackasters.
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