Debt Rattle March 23 2016
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Jack Delano Atchison, Topeka and Santa Fe, Sibley, Missouri 1943 • Bank Earnings Get Mauled by “Leveraged Loan” Time Bomb (WS) • Former Stock Darlings
[See the full post at: Debt Rattle March 23 2016]“A so-called Tobin tax would be … “short-sighted” and would drive away foreign investors.”
What are you talking about? What makes you think they WANT foreign investors meddling, having any economic pull in China at this sensitive time? I think if they could expel them all they happily would. And they can’t stop the currency outflows? What makes you think they want to do any more than just control it? At the moment, China just clicked $13 billion Yuan into existence and bought a worldwide hotel chain. Again, with Yuan they invented yesterday out of nothing. That’s the best deal ever made!
So at a time when China is in trouble and the Yuan may be shaky, they can either a) fold and return back to their shell to be picked off by the financial oligarchs, or b) stabilize their portfolio by buying trillions in assets worldwide, mitigating any downturn local to China. Which would you pick? And what if better, c) you could buy worldwide assets, including Spain, Greece, France, UK, America, NYC, stabilize your portfolio, by simply *saying so*, through no more than authorizing the PBC to print money and hand it to Party Members? And all you had to do was feed some cock-and-bull story that “we’re weak” and “we couldn’t help it.” I’m sorry, your honor, that I counterfeited the money to buy all of New York. I promise to never do it again.
I know which I would choose. So are they strong, or are they weak? Yin warfare at work.
Raul,
You wrote “be afraid” above the UK property article…
It seems like fear is the main driver for these vertiginous increases in house prices that we are seeing in these countries. Fear of bail-ins, fear of devaluation, fear about the real health of the financial markets. In the UK one of the main planks of the Brexit Project Fear is that it will hit house prices. That is meant to send all homeowners rushing to vote to stay in, yet the way things are developing elsewhere in the economy, property is probably the premier safe haven right now anyway.
Absent an increase in interest rates – which is about as likely as Jeremy Corbyn receiving favourable press coverage – these price increases in the wealthy areas will not reverse. They cannot be allowed to reverse. There is simply too much at stake to allow that to happen. The government has already guaranteed price support with their loan schemes and other wheezes.
Or am i missing something here?
Spot on, there debtserf. Three legs of great estates are precious metals, collectibles and real estate. This is the counter to the game of central banks, which now even own the very currencies in which it is all denominated.
As Faber stated, they have plenty of ammo left. Decades worth,,,before this all ends in a feudal collectivist quagmire, collapsing as it’s 10% ruling elite sit on the curb, hungry, with their hands out, wondering what happened.
It’s going to be a long journey to the bottom,,,maybe 60-70 years, ala the USSR?
Such is the Moral Hazard road TPTB decided to embark on back in 08. (Or maybe 1971 when the wealth was confiscated from the public via the decoupling of gold from money?)
It is far too late to turn it around now. And politicians will only accelerate the process, but the masses will still proceed to the prefabricated polls and cast their meaningless vote for the likes of trump/clinton or clinton/trump, or whomever promises to redistribute, an ever diminishing in value, pool of dollars from others to themselves.
Humm? Maybe there’s something worth looking at in that three legged analogy there? Trick is, of course, once it’s acquired, how to keep it until the system implodes.
Meanwhile, a good read, written back in 1840’s Russia,,,while we wait,,,
https://www.eastoftheweb.com/short-stories/UBooks/Over.shtml
The more things change, the more they remain the same.
All said, are real estate prices really rising,,,or is the value of fiat currency falling? All being relative, it sure is hard to determine value for value anymore. Of course, there’s this;
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