Debt Rattle October 24 2015

[Raúl Ilargi Meijer]

William Henry Jackson Hospital Street, St. Augustine, Florida 1897 • China Cuts Interest Rates, Reserve Ratios to Counter Slowdown (Bloomberg) • China
[See the full post at: Debt Rattle October 24 2015]

[Greenpa]

I read the entire article. 🙂

My long range prediction: This situation is ample justification for Japan to open mining operations in Antarctica. They can now point to China’s rather astonishing move in building artificial islands so it can claim, forcefully, that it owns great chunks of ocean- with the accompanying oil and gas. “See?” Japan can say. “National self-interest is totally acceptable motivation for grabbing undefended assets.”

And when they start mining for rare-earths in Antarctica; building nice new nuclear power plants using their abundant MOX fuel, to provide power for smelting (with zero environmental controls) – exactly who is going to stop them?

I assign this scenario a Bayesian probability of 41%, over the next 2 decades. Not certainty; but high enough for everyone to lose sleep.

[George P]

The European Union, a loose confederation of peoples, capitals, goods and ideas, created to prevent more bloody wars from happening, has sadly been reduced to the role of a loan shark, right after the Stability and Growth Pact reform of ’05. It has slowly turned to a lackey who facilitates the continent’s banks and elites in the expense of its people. We can all now see that we are quickly approaching the breaking point for this whole faulty endeavor. Recent events, such as ignoring the will of the 62% of the Greek people in the recent Greek No referendum or the 50% + of the Portuguese people in the recent elections, by forbidding the formation of an anti-euro left coalition government, clearly show us how desperate, inept, useless, childish and failing the established plutocratic political system is.

There is big difference between abolishing democracy with a coup to fight communism or God knows who and doing it just to get richer than God, by stealing from the majority of the people living in a society, while attacking the very livelihood. It is evident that this operation is not a mere folly, but a part of a sick plan involving preemtive measures by the elites to amass all wealth in their hands and maintain their power, because they foresee a collapse event in the near future. They act to establish a kind of caste feudal system that places them on the very top, living like Pharaohs, along with a 10% of the population that comprises of assistants, accountants, lawyers, doctors, judges, police, soldiers, warlords, drag dealers, upper and middle managers and politicians, that they believe will serve them and insulate them from the lower 90%, the Invalids, the prols, the poor, the peasant masses.

Just imagine the level of perversion that haunts their minds… They simply believe they can live without the poor. That they can exist without a working society that allows and facilitates them to be on top. They simply believe they don’t need the poor, anymore because they have high tech solutions for their problems, so maybe they can even get rid of them in a grand Final Solution plan. They also believe they alone should consume the products of their own fully automated micro-factories, live for the next thousand years, do anything they want without accountability or remorse and be an entire new species. Their plan involves acting like spoiled children and they expect to keep doing this for the rest of eternity.

Unfortunately, all this has been a terrible misunderstanding. Their core belief that “there is no society”, something their British Idol, Baroness Thatcher planted in their heads sometime ago, is very, very, very flawed notion. Not only human society exists as a living meta-entity, but it is so important to social creatures such as we are, that individuals can hardly survive outside it, no matter how hi-tech they get. So this Church of Selfishness dogma that drives them with their plan has a deadly flaw in its fundamental teachings: It ignores reality. And no matter how hi-tech their power base has become, the system is now so complex that it creates holes and contradictions, which lead it to failure. Reality always wins, no matter what the best laid plans of men and mice say.

Especially now, when Chaos has entered the system and taken over. The madness we’re we’re seeing around us is Chaos taking over economics, finance, politics, society and all other aspects of Reality, leading to endless pain and suffering for everyone, not just the poor.

[rapier]

Just a heads up. The US Treasury is essentially now at the debt limit and so net new supply is approaching zero. On Thursday the Treasury announced it would not hold its typical month end auction of 2 year notes which have typically been approximately equal to the expiring notes, so meant to roll over the debt. That leaves $32 billion that are expiring at the end of the month with nowhere to go or rather needing a place to go. 4 week bill offerings have fallen from $40bn a month to $5bn as well.

The point is that this is liquidity for the markets and stocks are feeling the love. When the debt ceiling theater comes to an end the process will reverse. The Treasury is going to hit the market for huge amounts and this will hurt the markets badly. There are endless stories that are written about why the stock market moves, both bull and bear, consensus or alt., but there is only one real story why and that is money. Liquidity drives stocks, period.

[Author]

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