Debt Rattle March 7 2021
- This topic has 29 replies, 15 voices, and was last updated 3 years, 1 month ago by
.
-
Posts
-
Vincent van Gogh Red Vineyards at Arles 1888 • American Rescue Plan Could Set Stage for $4 Trillion of Debt (CRFB) • Yellen Coddles Up to Powel
[See the full post at: Debt Rattle March 7 2021]Another common medication to help in the fight against Covid. This one is apparently endorsed by big pharma in the form of AstraZeneca, presumably because they can make money from it.
“In a defining move of his Presidency.”
WaPo either has very, very low standards for the next 900 days, or a great sense of irony. Screwing the base for no discernible reason while they watch and are aware could indeed be a defining act for him and the party.
“Showers the people”? Yeah, at $300/year I feel showered on alright. We have a term for that shower in America, and it starts with “gold.”
“The American Rescue Plan Act is estimated to cost over $1.9 trillion through 2031, but the ultimate price tag could be twice as high”
Failing or filling irony, this one seems to believe in positive bailouts while believing in the negative of paying for it. You know how they make fun of the GOP over the impossibility of “pulling yourself up by your bootstraps”? This is the Democratic version: that everyone can live at the expense of everybody else. Everybody, is going to pay everybody else’s taxes. But you make it up on the volume. Once I can’t math that high, the math just goes away.
But: price. Hasn’t the Fed handed out $200B/mo since 2008 in just one program? That would be $2.4T we didn’t even discuss and we probably have five of these programs. Common knowledge of everyone says they just HAVE to hand the most money to the most richest, least useful group.
“they’re a sign that the economy is getting back on track,”
They very well might be. But that won’t change tripling the interest rates on $70T in America alone. And rates are what? Going to go to negative 20%? No. So what happens if rates aren’t local noise but start a cyclical reversal to somewhere higher, even a normal 5 – 8%? Yeah, the whole world explodes. Why?
Well, bonds are safer (not true) and are essentially required by law (not smart). So funds would be thrilled to get out of stocks and balance their portfolio risk into bonds. Sooooo, stocks fall? Right. Okay, but again, not just locally. If stocks start falling people aren’t going to just sit around. They’re going to sell stocks and get cash. But they can’t just sit on dead cash, they buy bonds to clip a little interest. Bonds go up AGAIN. So rates rise AGAIN. So stocks are sold AGAIN. In an unstoppable feedback loop all the way to the moon. Da moon?
Yes, in the 1970s, although you don’t see it on the charts, real purchasing power of the Dow fell 90%, wWhich is the standard average for bear markets. US Treasury Bonds rose to 20% to keep people from fleeing the utter disaster that was the U.S. system. And top gold trader Jim Sinclair, son of a top trader on par with Jesse Livermore, made from $40 to $880 on gold, 10x leverage, compounded, threw in the towel on the gold run, saying “It’s over, boys, 20% rates will suck money off the moon.” And so they did. Many people locked in a 20% US$ coupon and lived off the interest for 20 years.
Next problem, so you should run to bonds, obviously. Duh. Stocks are falling. FALSE! Okay, so today you got ahead of the game you smart guy, sold out of Tesla at $100,000/ share or whatever it shouldn’t be today, bought a rising bond at 3%, and are sitting pretty. Except…
Today your bond is 3% and worth, let’s say 90c, prorated to expiration in the future. So what if all the other bands around yours slowly begin to pay 6%? Why would anyone want your crappy, low-paying trash? And face-value of your bond crashes to 60c, because only a fool would buy a bond at 3% when they could get 6%. But THAT’S TRUE UNTIL THE CYCLE ENDS, at 20%, 50%, 100%, 100,000% wherever it is. No one can buys bonds of any type at the same time they can’t buy Stocks of any type. They’re “Certificates of Confiscation”, as they called them in the ‘70s. A guaranteed dead loss.
So where do BOTH the stock market AND the bond market flee for safety? Historically, the Commodities market, which includes gold. So now we have the worst of all possible worlds: your STOCKS are tanking, your BONDS are tanking, and your costs are rising fast. And when that happens, the economy craters and comes unhinged. No one has money, you can’t get loans. That’s the “Misery Index” from the ‘70s, Inflation + Unemployment. The only good thing is that commodity markets are 1/3 the length of stock and bond markets, and are over in ~10 years. The other great thing is that they transfer all national wealth to speculators and insiders, so only the rich get rich. The poor fall to a desperate, sub-Stone Age state. Which is why oligarchs run inflations in Argentina, Venezuela, etc. as much as possible, perpetually in fact.
Hey, wasn’t Mr. Gates just buying some of that farmland that makes those imminent rising prices? And establishing UBI (so you don’t go hang him), while introducing shortages, rationing, and price controls last year? But that is a coincidence, and not suspicious at all. I’d rather hang him for several levels of mass murder (plus the world’s worst operating system) but that needs to be adjudicated in a court of law.
So food rises, oil might even rise, economy crashes. These inflations are NOT from health and speed nearly ever. They are always in the worst, most ruined, and unfree, central controlled economies, like Zimbabwe. But all the money printed, all the money “made” in stocks and bonds is now trying to get on the 5 lifeboats of the Titanic: Silver, gold, real estate, oil, inventory, and Bitcoin.
So it doesn’t matter Mrs Yellen, if it’s the wondr’us success of the vaccine Biden invented. If rates rise, it ends. Worldwide. We have an Economic Reset. Maybe you’ve heard that phrase before. So they’re going to hand that reset to serial failures and fraudsters like McKinsey. Technocrats: killing all life on earth since 1930. So clearly the answer is to give them more power and ourselves less.
“US Covid Cases Continue to Decline after Brief Plateau (JTN)”
Because Vitamin D, so seasonal, peaking the day of winter +2 week lag. Because PCR now down to 30. Because lockdowns end so people go out.
“Connecticut Lifting All Covid-19 Capacity Restrictions On Businesses (F.)”
Didn’t get to see a Congressman cry, but did get to see Fauci (nearly) cry, which is almost as good. “Mr. Governor, DO NOT tear down this wall!!!” When nothing has happened, and he changes his mind hourly. I mean, I literally do not know what the rules are, actual, practiced, or theoretical. No one can keep up. But luckily it makes no different since none of them are based on science. The virus sleeps after 10pm, and only happens in restaurant doorways, not at tables. And only for peasants, in coach, never for Lords in 1st class. That’s just common sense. Which Fauci several times this month said we are using instead of science.
“customers’ Microsoft Exchange servers.”
Well there’s your first problem. Gates never saw a virus he didn’t like. 5-to-1 it’s Microsoft themselves or the U.S. services using their own built-in back doors instead. Does no one read Snowden? It’s not rocket science. It’s very very easy. 1) open document 2) read words. Alphabet = lies. 4A = violated. Now reclaim your humanity and go do something about it. Oh, also it would be more likely for CIA to do this simply to CAUSE a war (tensions) with China than vice-versa.
“Bitcoin Could Soon Run Head First Into US Money Laundering Laws (ZH)”Top and almost only money laundering medium worldwide is the US$. Yellen’s got a lot of ‘splainin’ to do. But in any case, they’ll never outlaw it. How will Senators make briefcase payoffs and buy gay prostitutes? They’re not going to outlaw themselves, you know. There’ll be something and it won’t be Tide Pods.
“ The Dark Side Of “Eating Lower On The Food Chain” (Turchin)”
Yes, cancel meat is a health-destroying scam. It’s yet more complicated. It may not be the “thing”, but that veg oils are GMO, soy has estrogen and hormone as well as other bad elements, rapeseed oils (and non-virgin oil) are poison-processed in a chemical factory, wheat is sprayed with glyphosate a day before eating, wheat is bred into an unnatural protein gene for appetite stimulant and gluten intolerance, peanuts are stored in elevators with trace fungus toxins, and so on. You COULD, most probably eat any of these in their non-deadly state. Paleo just happens to go around the majors. They will add a new deadly poison, in lab meat or something, and the fad diet cycle starts all over again.
Denninger has a stellar post on his night and day reversal from eliminating most carbs. They are causing “inflammation” which obesity is one response. I believe it from my experience, but haven’t knuckled down to do the uncomfortable myself. Maybe this week.
As I wrote in Cows and Acres and elsewhere, everyone loves cows, animals, and they are far more adaptable, out of the factory concentration camp methods, if they are done small scale, the way we know they should. If we don’t, they will all go extinct, which is the plan from the Schmarty-pants technocrats. But our dependence and interaction with other living things and environment is very complex and not one-dimensional, which is why the mentally-ill like them cannot understand it.
The Wokesters are Jacobins
Let’s cancel the Wokesters
They deserve the same fate, round them up and stuff them all in an industrial wood chipper, the new Le Rasoir National. They can then at least serve some trivial purpose in life as mulch for the ornamentals.
@ Dr D
“You know how they make fun of the GOP over the impossibility of “pulling yourself up by your bootstraps”? This is the Democratic version: that everyone can live at the expense of everybody else. Everybody, is going to pay everybody else’s taxes. But you make it up on the volume.”
As someone who trained in engineering and physics, this is called a ‘Perpetual Motion Machine’, the Holy Grail of the basic ‘science challenged’ pronoun.
“Follow the Science!”
Over the Edge
John Keely’s Perpetual Motion Machine
How John Keely Screwed Investors And Tricked The World With His Perpetual Motion Machine
“A machine that almost revolutionized the world and could have provided cheap, efficient energy to mankind for centuries to come! Then John Keely had the machine for you. Once perfected, the “hydro-pneumatic pulsating vacuo-motor engine” would have been used by every person in the world…”
• The Nightingale Alternative (Gillian Dymond)
covid passports for the jet setters
Why anybody else?
Essential workers, politicians, enablers, lawyers, accountants are busy working for the elites and never stopped travelling.
The old, and obese are locked up in care home and cannot afford to buy the travel insurance.
Everyone who can afford to travel on a plane has herd immunity, or has been vaccinated, or already had covid.
Of course mentally challenge people with more money than brain will pay through the nose to get a test before getting on a plane.
Therefore, Why do people need covid passports?Electronic media ia altering the minds of everyone who comes into significant contact with it. Our dog, our cat, and our parrot have all learned to watch the magic screen. We are a tiger that has caught itself by its own tail.
On the other side of this darkening century, people will learn how to tell stories and sing together (without a karaoke machine!) again. A new Fall from Eden mythos will emerge. Life will be demanding for my great-great-grandchildren but much more meaningful and satisfying than this vapid brain batik that is modern human culture.
I envy them. I do not envy my grandchildren, torn between a childhood of video games while commuting between divorced parents, and a life of hard-scrabble do-it-yourself and be-sure-it’s-dead-before-picking-it-up.
^&*
I hear a lot of talk about some glorified cold called covid or something. People are freaking out about it. Well, I guess it’s good practice for when the REAL freaking out begins.
^&*
Paleo? Vegan? Both are better than starvation. Guess what? I can but certified non-GMO cigarettes. Didn’t have those when I was a young dumb smoker. Healthy carcinogens!
How many soldiers can a farmer feed?
How many starving immigrant?https://en.wikipedia.org/wiki/2020%E2%80%932021_Indian_farmers%27_protest
2020–2021 Indian farmers’ protest
2020 Indian farmers’ protest – sitting protest.jpg
Date 9 August 2020[1] – present
(6 months, 3 weeks and 3 days)
Location India
Caused by
Passing of three Farm Bills by Lok Sabha and Rajya Sabha
Goals
Revocation of all the three Farm Bills
Legally ensure minimum support price
(see section Demands for more details)
Casualties and losses
Over 300 policemen injured during Farmers’ Republic day parade (including cases of stabbings)[2][3][4]
248 dead (as of 5 March 2021), hundreds injured
(see section Fatalities for more details)
Infrastructure damage:
National highways dug up by police to stop protestors from marching to capital[5]
Over 1,500 telecom tower sites damaged by protestors (as of 28 Dec)[6][7]
Government buses and 30 police vehicles damaged on Republic Day[8]I don’t see rising interest rates. What I see is a very common reversion to the mean. Interest rates are super low. The current 1.5% for the ten year hasn’t been seen for decades. Besides, I don’t expect rates to remain this high for long. Now if the ten year yield went to 4% and appeared to be headed higher, then we could start talking about rising rates. Wolf Richter is right to refer to Wall Street crybabies.
Cancel culture: Public discussion usually focuses on the trivial to distract from the serious:
“500,000 dead, 2.3 million incarcerated, 750,000 homeless, more than 10 million without work, record income inequality, rising sea levels, millions without power or water for more than a week and it’s….“cancel culture” that’s destroying America. If that’s what Bill Maher considers American normal, perhaps it deserves to be destroyed.” Jeffrey St. Clair, Counterpunch.
If there is a global elitist plan to place the world under One Rule, the USA military isn’t in on it. They KNOW Putin can wipe us out in a nuclear exchange while minimizing its losses. They know that Iran can knock that bomber out of the sky if so inclined. No prob.
I agree with Bismark: “God has a special providence for fools, drunkards, and the United States of America.”― Otto von Bismarck
Methinks that God is tired of covering the USA’s tushie. Methinks we’ve become too stupid and destructive to even plead the insanity defense. We are, I suspect, what God might call “hopeless”.
I miss Trump. He wasn’t a drunkard but he was at least a fool. Now we have wall-to-wall arrogant dipshits running our affairs. It was nice to at least have a fool in alleged charge for awhile.
I wonder if the other players, Putin, Xi, et al, are working on a major color revolution in the States. One that puts Trump in charge on an extra-constitutional basis. Sounds crazy, but Putin/Xi don’t want us collapsing too harshly because the debris might bury them too. It seems to me highly unlikely we’ll have another successful presidential election.
So I’d like it if someone would put someone actually in charge so we have someone to fight other than each other.
“Here I come to save the day!”
Farmers in India -doing what we all should be doing. Interesting doc on women’s suffrage in the U.S. — those women took actions in the streets not different from what our street protesters do today. Men spit on the demonstrators. Nothing changes by writing nice letters to politicians.
Paleo and all that jazz – not taking into account methods of animal treatment and treatment of the earth (ie feeding these meat animals “conventionally” is missing a key point. Conventionally-raised beef comes from cows fed GMO corn in massive filthy, inhumane feedlots. That GMO corn renders the meat a heath hazard for converting healthy animal fat into omega 6 unhealthy fat.
In Canada, dairy cows are being fed palm oil to improve the texture of butter-yes you read that correctly.
Conventionally-raised chickens (during their incredibly short lives of about 8 weeks before slaughter) are fed GMO, glyphosate-coated grains, you know, those grains you would not want to eat.
There’s much more to eating healthy than simply switching from conventional grains to conventional meat.Bonds are in a 240 year high in the US and 300+ years in England.
That’s a very long time for any financial trend to hold.
Nature Always balance out the ledger however.
Bonds are the Foundation Layer of the world economy.
Far more essential than stocks, equities or commodities
When the Bonds burst, it really will be
This word press seems to fail posting when I included both a link and the same image address as an inline image. Sound like a software bug in WordPress, I’m shocked speechless
The only global trial of potential COVID-19 treatments is languishing. The World Health Organization’s (WHO’s) Solidarity trial, set up last year to quickly test potential COVID-19 therapies with tens of thousands of patients, produced headlines in October 2020 when it showed that four candidate treatments offer little benefit. But since then, it hasn’t launched any new tests. On 27 January, John-Arne Røttingen, who works at Norway’s foreign ministry and chairs the trial’s executive group, pulled the plug on the study’s only remaining arm, which tested the antiviral remdesivir. “The Solidarity trial is now on pause,” he says.
Science 05 Mar 2021:
Vol. 371, Issue 6533, pp. 972-973
DOI: 10.1126/science.371.6533.972link: https://www.sciencemag.org/news/2021/03/international-megatrial-coronavirus-treatments-standstill
The national government can run deficits with little consequence as long as the bond market allows them to refinance the debt at a slightly lower interest rate.
Having effectively hit zero rates, and now on the event horizon of negative interest rates, something that shouldn’t exist in any sane dimension, the bond market is being squeezed to raise rates not just back to ‘normal’ 5-8% range, but my guess is to ‘Tall Paul Volcker” levels (20%+)
This will really put the Kibosh on Bedpan Biden’s hopes and dreams of Building Back Better
“Kevin Gosztola: Jobless benefits were $600/week for 4 months in the COVID-19 relief that passed under Trump in March 2020. Biden and Senate Democrats are cutting jobless benefits for citizens in crisis to $300/week for same period—half of what passed in GOP-controlled Senate.”
Bedpan Biden and his ‘bait & switch’ with unemployment bennies to his Base, how sweet!
And controlling both halves of Congress, impressive!
Build Back Better Bedpans!
The Democratic tagline should be pink hats with MAMA stitched on them:
All politicians talk about how they will achieve lalaland.
Pick your favorite – Biden, Putin, and Xi
(Putin, and Xi, are too busy taking care of running their own countries and are not paying attention to the fooling antics of the USA.)
//news.cgtn.com/news/2020-03-06/President-Xi-Jinping-attends-online-symposium-on-battling-poverty–ODF6iJcMKI/index.html
Xi Jinping urges eradication of poverty in China by year-end despite COVID-19
Updated 23:15, 06-Mar-2020Xi, is on another 5 year plan
//news.cgtn.com/news/2021-03-07/Xi-joins-deliberation-of-Qinghai-delegation-at-legislative-session-Yr8zuFRR5e/index.html
Chinese President Xi Jinping on Sunday called for efforts to advance high-quality development and improve people’s well-being throughout the country during the ongoing legislative session.President Xi made the remarks when taking part in a group deliberation with lawmakers from northwest China’s Qinghai Province at the fourth session of the 13th National People’s Congress, China’s top legislature.
High-quality development is the theme of China’s economic and social development in the 14th Five-Year Plan period (2021-2025) and beyond, he said. Different regions should find paths of high-quality development suited to their conditions and take concrete actions to improve people’s livelihood, he added.
Xi said Qinghai should prioritize ecological protection, promote high-quality development and create high-quality life for the people, calling on the province to make new achievements in protecting the ecology in the Qinghai-Tibet Plateau and advancing sustainable development.
I fully agree with your comment
If only we could make America even medoicre.
@ Michael Reid
Full agreement scares me. 😉
^&*
btw, the North American plains weren’t covered with buffalo when we first arrived. It took the removal of most of the Indians, and the various agri/horti-cultures they practiced, to do that. Those plains covered with bison were a massive population bloom created by a rapidly and majorly altered ecology. One can read about such things here:
1491: New Revelations of the Americas Before Columbus
“There was extensive disruption of societies and loss of environmental control as a result. Decreased environmental influence and resource competition would have led to population explosions in species such as the American bison and the passenger pigeon. Because fire clearing had ceased, forests would have expanded and become denser.”
We don’t know what the Good Old Days were like. We usually destroy most of the evidence one way or another and then tell ourselves stories that fit our views.
Did Merck just re-invent Ivermectin (cheap, off patent & very effective in treating Covid) as Molnupiravir?
https://www.foxnews.com/health/covid-19-pill-preliminary-testing-dr-marc-siegelPlease don’t be afraid. Maybe I will drop by to say hello the next time I drive by get a Llewellins setter pup.
I was referring to your first comment
Bartender Yellen needs to keep filling up the punch bowl or the drunken sailors might notice the ship’s rats are abandoning the sinking ship! The rising water is a sure sign the economy is growing!
So now the corrupt RINOs controlling the Republican party are going to have trouble raising money without Trump! Serves them right for putting their corrupt interests above the people’s best interests. There are going to be some very upset billionaires too! This is a good thing!
So Indians lived in harmony with the environment! Who would have known they were avid arsonists! Cleared forests after all provided more grass fed deer! Too bad about all those other crispy fried critters losing their homes! Deer burgers tasted better! Imagine what the Indians could have done to their environment if they had only invented the wheel!
TopCat:
The problem for us practicing engineering is, more often than not, we keep running into Dr. Murphy!
Mr. Roboto, yesterday;
Fear is the New Smart
That NYT hit-piece on Ivermectin was disturbing, because what it told me was that the globalist powers that be don’t really care about helping all those people who are sick and dying. They care about whatever other agenda they have that doesn’t have helping all those people who are sick and dying as one of its priorities. I guess I really shouldn’t be surprised, but I’m still quite disgusted. We do have an awful lot of poor people with health problems in the USA. Maybe somebody wants there to be less of them around. I’m no fan of conspiracy theories, but it’s starting to become difficult to arrive at any other conclusion, at this point.I don’t disagree, however, it’s complicated by a number of factors, education (or its lack) being of paramount importance, IMO.
The public education system in the U.S. is irreparably broken. The poor are sentenced to ignorance by a malfuntioning educational system.
I’m not victim blamming here; just attempting to point out broken links in a chain resulting in major failures in a defective system.
Blaming will not, cannot accomplish anything positive: action of the correct type is the only solution.
Unfortunately there is no will to act by those in leadership roles; only Pablum, doled out as $1200 spoonfuls, that only give a moments respite in a tsunami of indifference…
- You must be logged in to reply to this topic.
Sorry, the comment form is closed at this time.