Saturday, September 27, 2014

90 Economic Facts to Consider

1.) The country that receives “Foreign Aid” is not allowed to use "Foreign Aid" the way it wants.  Instead, the “Foreign Aid” must be used the way the lender wants you to use it. Why corruption and bribery occurs and not “change” in the Third World.  This is not only an individual problem but a structural problem in place.  The citizens are the pawns.


2.) U.S. BANKS EXPOSED TO THE MOST TOXIC DERIVATIVES:
JP Morgan Chase
Total Assets: $2,476,986,000,000 (about 2.5 trillion dollars)
Total Exposure To Derivatives: $67,951,190,000,000 (more than 67 trillion dollars)

Citibank
Total Assets: $1,894,736,000,000 (almost 1.9 trillion dollars)
Total Exposure To Derivatives: $59,944,502,000,000 (nearly 60 trillion dollars)

Goldman Sachs
Total Assets: $915,705,000,000 (less than a trillion dollars)
Total Exposure To Derivatives: $54,564,516,000,000 (more than 54 trillion dollars)

Bank Of America
Total Assets: $2,152,533,000,000 (a bit more than 2.1 trillion dollars)
Total Exposure To Derivatives: $54,457,605,000,000 (more than 54 trillion dollars)

Morgan Stanley
Total Assets: $831,381,000,000 (less than a trillion dollars)
Total Exposure To Derivatives: $44,946,153,000,000 (more than 44 trillion dollars)


3.) (a) The stock market increasing but the job market decreasing AND (b) creating wealth by creating debt CAN ONLY LEAD TO INEQUALITY OVER TIME. This is the present structural formula in play in consumer, globalized, and hyper-capitalized societies.

4.)  "Shortages" in certain export products at different times are used by corporations and national governments in order to hide inflation that is filtering into the economy due to weakening currencies

5.) The Fed's total assets and S&P 500 are correlated.  When the Fed stops, S&P 500 drops simultaneously.  Therefore, the more money the Fed prints the more the S&P soars.

6.) The US government is the biggest sub-prime debtor presently.

7.) China "Faked and Forged" Documents for Exports and Imports: At Least $10 Billion in Fake Trade Exposed in 2014.

8.) BEST CASE: Countries seize foreign assets, letting them operate, yet keeping the operating taxes instead of the country they represent. 
WORST CASE: Countries seize foreign assets, letting them operate, but keeping all the profits and operating taxes instead of the country, they represent.

9.) US government confiscated gold bullion and then made owning it illegal back in 1933.

10.)  STRONGEST CURRENCIES IN THE WORLD in 2014: Pound, USD, Yen, Rubble, Euro, IMF (SDR)

11.) Passports, Citizenship, Guns, Gold or Silver, and Porno (referred to as “contraband”) can be seized from safety deposit boxes inside banks. The individual however, needs to go to court to have it released.

12.) Default rates go up when more loans are given out to borrowers.

13.) Cash buyers and foreign buyers are buying up houses presently, not citizens or the middle class. Purchasers are not "every day" citizens.


14.) The longer Russia waits the more Ukraine collapses (financially)

15.) Banks confiscate real wealth in order to recapitalize banks

16.) Central Banks trade and buy S&P 500 futures.  By doing so, it props up S&P 500 futures. (Includes contracts, metals, options, and futures).

17.) "Dumpster diving" growing in Western nations (as well as Food Stamps dependency).

18.) The main party buying government bonds presently are banks

19.) Wall Street banks are getting hit by cyber attacks every single minute of every single day. A massive onslaught is not highly publicized because the bankers do not want to alarm the public. However, as you can see, one big Wall Street bank is spending 250 million dollars a year just by themselves to combat this growing problem.

20.) Other economies slowing down slows down China, China slowing down automatically slows down other countries (vicious downward circle with no end in sight)

21.) What is "real" GDP in any economy anymore? Adjustments continue to be made by national governments and institutes presently to keep the GDP propped up and higher than it really is.

22.) "Subprime" -people with no money borrowing money to buy things

23.) If the economy is doing good, you don't have to be told it, you will feel it.

24.) Higher and Bigger bubble than in 1929, 1987, and 2008. Hence, bigger crash than ever before.

25.) "Warfare state" VS "Welfare State".  You can only have one not both.  Most nations presently are switching from "Welfare state" to "Warfare State".

26.) Big banks presently are getting into trailer park mortgages to make profit.

27.) Refinancing debt is occurring by countries presently;  Refinancing mortgages is what people do when they don't have any more money.

28.) "Hot" spots and "Cold" spots will always get hit hard differently. Which area do you live in? The "Hot" area is the last to go down.  The "Cold” area goes down first by: (a) becoming stagnant, (b) people moving away, (c) businesses moving away, (d) filled with immigrants and the poor who depend on the welfare system to survive, (e) ghost towns created filled with empty decrepit buildings and rampant homelessness (are is financially broken).

29.) The four largest banks in China, the banks that have to officially show big profits and profit growth no matter what because they’re an integral part not only of the government but also of China’s miraculous debt-driven expansion, are showing officially tolerated signs of increasing stress. For perspective, in 2009, following the Lehman moment, as other banks were collapsing and were bailed out, the profits of these four banks grew even then, if only by a combined 2.9%. These four mastodons – Industrial & Commercial Bank of China, China Construction Bank, Agricultural Bank of China, and Bank of China – admitted to 384.7 billion yuan ($62.6 billion) of bad loans on their book at the end of June, a 13.2% jump from just six months earlier. The jump in bad loans ranged from 11% at Agricultural Bank of China to 17% at Bank of China.

30.) Their "recovery" is the stock markets and people borrowing money from the banks.

31.) Always ask yourself, "what is the trend line?" (when it comes to stocks -does it fluctuate or is moving in one angle? This is always a Telling sign of how companies and the economy is doing!)

32.) National Governments have insured banks, builders, and major transnational corporations in case of an economic collapse.  This is why they do not have a problem lending money, building property, and opening new stores.

33.) Indicators VS. Stock Markets (Indicators predict stock market crash about to occur; Stock Markets predict that we are in good times)

34.) This system cannot be saved because it has incurred too much debt.

35.) Derivatives, Fractional Reserves, and Real Assets are always in play.  Real Assets are already owned.  Not sure what people are actually putting their money in now and investing in.

36.) Interviews is what is counted in the job reports data, not sending out resumes, or getting a low paying part time job therefore quitting the job search altogether, or being a "freelancer" and looking for any work to stay afloat.

37.) Several Wall Street firms are selling securities backed by longevity risk - the risk that retirees receiving benefits will live longer than expected.

38.) A bad economy depends on cheap oil.  However, low oil prices affect -Russia, Saudi Arabia, Iran, Iraq, and Venezuela the most.

39.) If you don’t have to buy oil in USD then you won’t buy USD, therefore leaving USA with too much USD. This is why America remaining as the Reserve Currency is important because this forces countries to use the PetroDollar when trading.

40.) Industrial Revolution sped up life. Reality could never go back afterwards. Colonialism without Industrial Revolution would just have been like ancient Greek or ancient Rome expanding.
(Emergence of Christianity, Emergence of industrial revolution, Emergence of technological revolution were 3 things that could never be reversed once they had started and been implemented).

41.) Banks do not put foreclosed houses back on the market, which allows house prices to remain high and therefore everyone makes money.

42.) Robots and Machines that will replace Human jobs and Human beings are presently created, stored, and at worst -on blue print, designed, and patented by major companies.  Presently, these Robots and Machines are slowly being manufactured, implemented, and used in locations and major companies.  Robots and Machines just haven't been mass manufactured yet.

43.) The "permanent recession" is an oxymoron because you can only go down so far and once you hit rock bottom, there has to be an "up" and presently we are "free falling" waiting for that "boom" moment before the "up" moment can occur.

44.) When the dollar returns to the US after countries and people de-dollarize and make another currency their reserve (meaning no one else will buy the dollar) prices in the US will sky rocket, and everything falls apart.  Presently many nations are doing their trade either in Yuan, Rubles, gold, Bilateral trade, or in silver.  The dollar is being squeezed out of deals currently.

45.) The S&P 500 index is near a record high yet the U.S. has the lowest level of stock ownership since 1995.

46.) In Venezuela -first, they came for the financial paper(s) -currency, then the Toilet Paper, and then they came for the News Paper.  Then the country was absolutely broke.

47.) Social contract =paying for national debt, being drafted, and paying taxes


48.) Financial delinquencies are skyrocketing presently

49.) Gas is cheap presently because less people are driving and pumping gas.  Less air travel, less road travel, less travelling by car unless it is a necessity.  Gas being cheap also deflates the price of gold and props up the American currency. 

50.) Banks are currently loaning for Sub-prime commodities.  This is occurring presently in order to keep people borrowing and spending, in order for companies to make profit and the economy from not weakening (ex: sub-prime I phone purchases)

51.) Why use America’s exchange rate and buy American treasuries when you can avoid it altogether and do barter trades with each other?, and do bilateral trades with one another?  This allows you to bypass the American system and simultaneously weaken it.

52.) Housing loan, then car loan, then student loans. The student loan is the last loan standing in this stagnant economy because it enables people to hope in a better future which neither a housing loan or car loan can give you.  When student loan go -no hiding the bad economy.

53.) When people pull money out quickly they generally do not rush to put it back in.  No incentive for them to do it.

54.) National congestion fee (tax) and Carbon tax –for traffic congestion and gas creates government revenue but also weakens purchasing power for individuals and families.

55.) In 2014, the Ontario provincial Liberal government passed a 148% tax hike on "aviation fuel".  Sun wing Airlines will now be operating certain flights and flying out of Buffalo in order to be profitable therefore cutting staff members in Ontario.

56.) More taxes mean less money to spend which means less choices and therefore less individualism.  Freedom and individuality is over for Collective mainstream society (after being manufactured in the 1960's & 1970's by social institutes, governments, and corporations in order to prop up consumerism and capitalism.  Now, due to financial constraints people will not be able to shop in "high end" retail stores and be an individual).

57.) Say goodbye to the "Era of Wishful Thinking".  Many observers have been waiting for the moment when the fog of pretense lifts and exposes all the broken machinery within.

58.) When will the “sell off “occur?  That is the question.  When will the “sell off” and “bank run” occur? Huge “sell off” will prevent “buy back”.  “Buy Back” will not occur when there is no money to be made by investors. 

59.) Being eternally in debt is not as import for those that are presently in debt and have nothing (or very little) to do with the stock market. Most of the wealth (money) is in the hands of a few of the richest families in the world and they can support the stock market forever if they want. So do they want the market crash? And when do they want it? That is the question. At present, it seems that they do not want the market to crash. However, it is their game and they will decide when they want to fold and there is nothing the majority of people can do.  Those in debt cannot save the stock markets. 

60.) "The Working Poor" keep the Banks and Credit Card companies alive; "The Middle Class" keep the Retailers alive; "The Wealthy" keep corporations (especially with the “buyback” option) and stock markets alive.  The "Middle Class" however is shrinking and therefore retailers are feeling this shock (hence many mergers and takeovers are taking place in order to keep these retailers alive).

61.) Outside of top cities (Toronto, Vancouver and Calgary), the Canadian housing is ‘mediocre at best’

62.) A "Currency war" can take down an economy quicker than a "Hot war" could.

63.) Banks use your money for fractional reserves, bail-ins, and for their monthly revenue.

64.) "The rich get richer and the days get shorter for everyone else"

65.) Currently, Russia is replacing their foreign currency reserves with gold, dumping USD treasuries.

66.)  "It Doesn't Matter Until It Matters" and this is why many people are not paying attention to the economic or political situation at a macrocosmic level.  Most people think the "game" will be played for ever, the situation will remain the same, and therefore they continue onward with the same behavior patterns that they have always known.

67.) The US-EU Russian Sanctions is actually helping Russia from collecting useless US treasuries and instead it enables them an opportunity to engage in bilateral trade with other nations.

68.) A deflation occurs when people lose faith in the financial system and begin paying down their debt.  However, our paper money system is based on debt and is designed to continuously increase. When the trend begins to reverse, a deflation sets in.  The US will enter a state of significant deflation. At this point, they will fire up the printing presses, causing a HYPERINFLATION. In Weimar Germany, the Reichbank was printing quadrillions of Marks everyday! That's the magnitude of hyperinflation that the Fed is racing towards. Based on historical data, it won't be a case of inflation or deflation. It will most likely be one after the other. The deflation won't last very long before it RAPIDLY changes into inflation. Food stamp usage will break records, as well as disability and other social assistance programs. In a not-so-shocking coincidence, the deflation will allow the elite to pick up stocks and other paper investments at rock-bottom prices.

69.) “It is impossible to earn interest without creating poverty”

70.) "Credit Freeze" and Deflation are worst than Inflation because Inflation still enables banks to lend money, interest to be earned for banks, the "American Dream"  to continue, purchases to continue for people who always need worthless stuff (commodities), and businesses to continue making profit thus hiring people.  “Credit Freeze” is the opposite where banks do not lend money and everything shrinks, "bank runs" occur, and people lose jobs.

71.) Under the guise of stopping "Climate Change", some governments have decided to tax any industry that outputs carbon dioxide and greenhouse gases.  At the same time giving
waivers to companies like G.E. so that they can maintain a 0% tax rate.  Of course, the businesses simply pass their increased overhead onto the customer, equating to higher prices, environmental fees, and other hidden taxes.

72.) China will launch its International Gold Exchange.  The significance of China's gold exchange is that the western banking system will no longer be able to dominate the price of gold to protect their paper assets.

73.)  "You can't feed a family with G.D.P." (Or gold for that matter.  You will need a buyer and hence the buyer is in charge if you are starving -not you and a smart buyer knows this.  This occurs because you will take anything for the gold in order to eat and stay alive.  You will not pick and choose and wait for the right price or the right buyer because you are desperate for food in order to stay alive.  If you have food, you would not sell it for gold, because you do not know how long this crisis will last.  Therefore, non perishable food becomes gold so what good is storing gold for?  You will always be suspicious as well and have to tell no one about the gold.  Possessing gold is more problematic than not possessing gold).  You will also have to be careful who you tell about your stockpiling of food as well because people will come to take it away from you and you must find a way to protect yourself from that scenario.

74.) If you take out Oil investment and Coal investment from National governments and Corporations, you automatically eliminate jobs as well, and weaken the national economy. To compensate for the lost government revenue from Oil investment and Coal investment, governments will implement a Carbon tax.  However, individuals lose either way because the individual will have to pay the Carbon tax and the higher cost for gas and coal products that he needs to use.

75.) When the Dollar’s ‘Pre-Eminent Reserve Currency Status’ Erodes -the US Will Face a New World of Funding Constraints.

76.) First, the world is divided between “the Takers” and “the Taken” (and then afterwards, the “Haves” and “Have-nots”).

77.)  “the Investor” and “the Entrepreneur” – are Symbols of the Hyper Capitalist, Globalized, and Consumer system in place presently.

78.) Bombing ghettos such as the one in Brazil are on the table. Presently, these ghettos are unprofitable and inhabitable presently.  The ghettos are difficult for gentrification to occur because there is no investor interested and also because it would still create a housing problem for those living currently in the ghettos who are poor, unemployed, and impoverished with nowhere to go in modern society and no land to give them.  This is not like the past with people living in the forests and governments being able to force them into the cities and therefore force them into the urbanization process that was occurring.  Presently, there is not much land that can be used by those leaving the ghettos unless they were able to get the lands in the Rain forest after deforestation occurs.  However, deforestation will slow down in Brazil soon and in the next war, Brazilian ghettos that are populated will be a target either by the Brazilian government or a foreign government or by "Terrorists".

79.) "Professional Resume Submitter (is the biggest job in the market today)

80.) The reason there is circular stagnation is because the economy crashed after the last, housing, bubble (which itself was a response to the dot com bubble preceding it) reached epic proportions and burst. So what is going on now is merely the global central bank cartel reflating the next bubble, and final, bubble.  Central banks may be doing so with good intentions, "to get back to full employment", but the bottom line is the entire world is now gripped in what is without doubt the biggest asset bubble in history. The good news: everyone will be able to top-tick the bubble and sell just before everyone else sells.

81.) Easy money is always the wrong medicine, but most especially for an economy that is already and self-evidently saturated with too much debt.

82.) No way to make money for a "savers" because of low interests so they go into stocks, bonds, mutual funds, etc.  "Savers" take risks presently that they would not otherwise because the banks favor lenders and borrowers not savers.  If banks worked the way they should normally work, "savers" wouldn't take as much risk as they do presently in order to make a profit.

83.) The system is not just flawed - it is terribly misguided and structurally destructive -financially and politically.  Presently, people play the roles and positions available for them.  They can do nothing to change the system in place.

84.) History may not repeat exactly because technology, resource discoveries, and political dynamics change the nature of society, but it does rhyme the same because the human foibles of greed, lust for power, arrogance, and desire for conquest do not vary across the ages.

85.)
When China was made the "number 1 trade partner" for the USA by Nixon in the 1970's it put China into USA's economic orbit.  It pulled China away from the USSR and eliminated the Tibetan freedom guerrilla movement simultaneously.  This meant the USA now had a cheap labor force at their disposal, China had an export nation to send its products to which allowed for it's economy to boom, hyper-Consumerism  and globalization could begin worldwide, the FIAT currency system could be introduced which allowed the USA to step away from the Gold Standard, and it isolated the USSR even further.  By 1979, due to all of these occurrences -USSR invades Afghanistan.  Without USA, China would not be the mass exporter they are today and the global/regional superpower they are presently.  In return, China however would not have been USA’s main buyer of US treasuries and US bonds.  Mutual beneficial relationship for both China and the USA.

86.) Good Job, Fed: After Mucking up Housing Market, Investors Fled. What is Left presently is a Toxic Mix: Dropping Sales, Still Rising Prices, and Ballooning Inventories.

87.) “The Secret” published in 2006 led to the most amount of volatile behavior by investors and borrowers in 2006-2008 (which led to the Subprime Mortgage crisis in 2008).  Hope fuels many volatile behaviors and risky actions.

88.) Presently major Corporations are offering Credit Cards and Checking Accounts in order for individuals to go to their stores instead of the banks.  This enables Corporations to continue making profits -on sales and on interest loans (ex: Walmart, Tim Hortons, etc.).

89.) Using the "PetroYuan" and the "PetroRubble" means lessening of the "Petrodollar".  This means no need to purchase USD in order to trade in the markets.  This is why America and the West is reacting militarily in Asia and the Middle East.  Both sides are creating military alliances and bases that they will use against one another and against their enemies (domestic and international).

90.) Just Admit It: You (and your kids) are "State Property".  You are not as free as you believe and you cannot escape the reach economically or politically of your government and the nation you live in.  You can renounce your citizenship, move away, and buy another country's citizenship however, you are still State Property no matter where you go.

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