Sunday, January 25, 2015

Economics in 2015 (part 2)

1.) BANKISM -(a) Central Banks print money and buy ALL debt, (b) then they buy ALL stocks, and (c) then they give themselves and their cronies raises.  Then they repeat this process again.  Meanwhile, "dumb money" jumps into property or stocks when this process is in play and lose everything.

2.) Financial Repression is Financial Authoritarianism -Financial repression is a term used to describe measures used by governments to boost their coffers and/or reduce debt. These measures include the deliberate attempt to hold down interest rates to below inflation, representing a tax on savers and a transfer of benefits from lenders to borrowers. Financial repression is also used to describe measures to facilitate a domestic market for government debt and the imposition of capital controls. The combined effect of all these measures means funds are channeled to the government that would otherwise flow elsewhere.

3.)  “Breaking the stranglehold of vested interests is the essential step to rebuilding an economy that isn't totally dependent on manipulated money and statistics”.  A Free Market is the only way to break out of Government dependency, Government Regulations, and Corporate Control.  Free Trade Deals strengthen this and unless we eliminate Public Service Sector Unions we are headed straight into Free Trade Deals and further away from an actual Free Market.

4.) "The longer the price of oil stays this low, the worse our problems are going to get. At a price of less than $50 a barrel, it is just a matter of time before we see a huge wave of energy company bankruptcies, massive job losses (where we are presently), a junk bond crash followed by a stock market crash, and a crisis in commodity derivatives unlike anything that we have ever seen before”.

5.) "Until 2004, oil was trading between $20-$30. Then speculators took over and they drove it to $150 before the BIG COLLAPSE. After 2008, China started its massive construction boom, driven by trillions of stimulus dollars which created an increased demand for oil and in which in consequence drove the price of oil to over $100. Now China is clearly slowing, with the debt to GDP ratio over 250 it is unlikely we will see more bridges to nowhere, or ghost cities builtWith Europe, Canada, and China slowing, lower prices could stay here for couple of years". (Canada was another country that had a massive construction boom after 2008 which allowed for an increased demand for oil).

6.) The oil during 2008 came from companies that borrowed money to drill. They assumed oil at $80+. With $60 oil, they can't pay, and therefore bonds default.  “Falling oil prices could prompt a rout in global bond market as shale companies’ default on vast debts

7.) This is just the beginning of the Great American Oil Bust.  "It is going to be a painful period of time for quite some time".

8.) Presently, low oil prices will allow for governments to implement Carbon Taxes on drivers.  How much of a carbon tax is the only question that will be decided by individual governments.  Low oil prices and a weak economy will allow for the introduction of carbon taxes in order to stabilize the economy.  When the oil prices rise (sometime in the future) or Corporations and Cars switch to Alternative fuels (most likely) -the Carbon Tax will be kept in place and government(s) will argue, "it is for the good of the environment and for stability of the government and for the economy that Carbon Taxes not be removed".

9.) In the last 10 years, oil prices went up even though more oil was found and pumped out.  Logically oil should have dropped in price but because of speculators, the "peak oil scare" pushed by the media and institutional experts, and the higher demand for oil by China and Canada -oil prices went up.  Now oil prices are dropping even though oil rigs have closed, mass layoffs have occurred, and oil has stopped pumping in many oil rigs all over the world.  This drives home the point that it's not just OPEC pumping out more oil that is causing the oil prices to drop, it's the fact that global demand for oil has stopped.  With the Baltic Index dropping, it means that there is less shipping needed and less demand for oil which means all the bubbles in place in "hot" markets are ready to deflate (at best) and pop (at worst).

10.) The stock market is currently overvalued by 89%.  The stock market was overvalued by 88% before the 1929 Crash.  It was "only" overvalued by 74% in 2007 before the last Crash. The ratio of US stocks vs. Rest of the world stocks is at a record high.  It even exceeds the Dot-com bubble peak in 2001.  Majority of this overvaluation was done by speculators on Wall Street and "dumb money" jumping in due to the speculation.

11.) The Swiss gold backed the Euro Currency, the Fed backed the Dollar Currency, Russian banks backed the Rubble, and China backed the Yuan.  Presently,  the Fed has no gold and Swiss no longer backs the Euro currency.  This is why most currencies are in a "free fall" and being devalued presently.  Gold going up, Oil going down, and global Currencies are now worthless due to the fact of over printing currencies and directly after Switzerland pulled away from the Euro-peg.

12.) "All these Central banks are all going to debunk their currencies & it's going to default to just one currency that can't be debunked, & that's Gold.  What happened in Switzerland shows how paper assets driven by unpredictable untrustworthy central banks can go poof overnight".  I believe that when the default occurs, it will not be Gold.  It will instead be an Online currency since we are heading into a Cashless society.  However, the comment about the debunking of currencies and defaulting to one currency is still correct and in play presently.

13.) "The IRS announced the International Data Exchange Service. If you have not heard of it, it’s is an outgrowth of the Foreign Account Tax Compliance Act (FATCA), which requires every single bank in the world to get in bed with IRS to share information about customers. Like any other bankrupt government, the US government has taken to intimidating its own citizens and the entire world in an attempt to make ends meet. The IRS tells us that so far more than 145,000 financial institutions have already signed information-sharing agreements. Now with the launch of IDES they have an online platform to invade customer privacy at every one of those banks".

14.) "Paper has begun its collapse; it started with the Russian Ruble and will end with the US dollar.  As paper collapses, Gold will rise (occurring presently), and then gold will go Parabolic! All the world currencies are falling to Gold as Gold continues to expose the TRUTH of what is TRULY going on in the world of Fiat paper vs. Gold! The TRUTH is printing money leads to hyperinflation and much, much higher prices in both Gold, and especially Silver as their respective ratio gets reset".

15.) The 4 encircling currencies in play presently (US dollar, Euro, SDR, and Yuan) -What it means is that countries are getting loans in order to prop up their economy from one of these currencies depending on the region of the world you are in and who your country is allied to.  For example, NATO members get loans from either the US dollar or Euro, Euro countries get loans in the Euro, the SDR is given to non aligned countries, and allies of China get loans in Yuan.  In simplicity, "Russia will be paid for the oil and gas it sells to China in yuan which is now a de facto hard currency. What China gets out of it – and they made the same deal with Venezuela. China is not bailing anybody out, they're using other people’s problems to expand the convertibility of the yuan. As usual China is acting the way it has done in the past when it has extended lines of credit, which is that it’s not putting itself at any risk, as they would if they extended direct aid. On the other hand the IMF and World Bank do stick their necks out so to speak but it isn't their money; it’s Other People’s Money (OPM). It’s the contributors’ money.  China is not extending direct loans.  That’s not what a currency swap is. Of course currency swaps mean different things to different people but the way China is doing a currency swap will allow Russia to get yuan for oil and gas and to effectively borrow yuan by pledging rubles. It’s a way to keep the Russian ruble, liquid. Beijing is just enabling President Vladimir Putin, who’s now under zero pressure to diversify his economy away from oil. The same goes for China’s $2.3 billion currency swap with Argentina and its $4 billion loan to Venezuela. Again this is just a currency swap and it just allows the settlement of trade between nation-states which are not members of the Bank of International Settlement (BIS) since Argentina and Venezuela are no longer members of the BIS – and neither is Russia – because they've all defaulted on their sovereign debt in the past. So they have to go through a third party like China which is taking advantage of the fact that these countries are not members of the BIS They are taking advantage of the situation by arranging foreign currency swaps in order to increase the convertibility of the Chinese yuan without actually making it a free-to-float currency”.

16.) Printing money (QE) means you cannot increase interest rates, you can only lower interest rates.  Printing money means a Bad economy and stock market is in place.  Banks just want you to borrow money at this time in order to stimulate the faltering economy and so they lower banking interest rates

17.) "When is the U.S. banking system going to crash?  I can sum it up in three words.  Watch the derivatives.  It used to be only four, but now there are five "too big to fail" banks in the United States that each have more than 40 trillion dollars in exposure to derivatives.  Today, the U.S. national debt is sitting at a grand total of about 17.7 trillion dollars, so when we are talking about 40 trillion dollars we are talking about an amount of money that is almost unimaginable.  And unlike stocks and bonds, these derivatives do not represent "investments" in anything.  They can be incredibly complex, but essentially they are just paper wagers about what will happen in the future.  The truth is that derivatives trading is not too different from betting on baseball or football games.  Trading in derivatives is basically just a form of legalized gambling, and the "too big to fail" banks have transformed Wall Street into the largest casino in the history of the planet.  When this derivatives bubble bursts (and as surely as I am writing this it will), the pain that it will cause the global economy will be greater than words can describe".

18.) Currency War (Competitive Devaulation) -You don't want to win a Currency War by having the highest currency on the market.  Instead a "Race to the bottom" begins and countries race to be at the bottom.  Being at the bottom allows you to export items, it does not allow you to import as many things into the country because you have such a weak currency.  This will allow for Inflation to start and prices to rise on imported goods.  The Credit Crunch will not occur because if it does, the economy implodes.  Credit is the only thing keeping the economy alive but once people stop borrowing the illusionary mask dissolves and economies implode.

19.) You can't be a "Day late and a Dollar short".  Too big of a gap to cover when it happens.  You have to be on top of things and sadly enough most people are not on top of anything.  They are just hoping and praying that they are not too late when making an investment or taking a risk on a purchase or business.  Very few people have studied, most have been "spoon fed" and race into things like lemmings hoping to make a $1 out of 10 cents.  Playing stocks right now is like playing Russian Roulette and yet that is what "dumb money" is doing presently.

20.) Ask yourself, "How can Inflation be good and bad at the same time?"  Why do Economists argue both ways?  "This" (percentage/amount) is good inflation but going over that (percentage/amount) or under that (percentage/amount) is "bad" inflation.  Playing with the inflation rate is something economists and bankers do all the time to fool the masses into accepting the economy is stronger than it really is.

21.) In business you need money to start up, you need money to maintain, and you need money to shut down.  Keeping customers is key and when customers dwindle because they have less to spend, you are in trouble.  This is why a bad economy is shutting down businesses everywhere and in every sector.  Higher taxes and higher hydro rates are also speeding up this process.  Brick and mortar stores can no longer pay their staff, pay their bill, meet their profit margin, and compete -hence the weak economy is allowing for mergers, takeovers, or complete liquidation.

22.) We act like Shopping Malls have always been with us but they have only appeared in the the 1970's ("and the first fully enclosed shopping mall did not appear until the mid-1950s").  Strip Malls did not appear until the 1990's.  Therefore, shopping malls can disappear just as quickly as they appeared.  The question remaining to be seen is, will they turn into Condos?, Empty unused and decrepit lands? or Parking lots?  Indoor Malls are more at risk than Strip Malls but both are presently at risk since if there is no consumer Age then there is no need for malls.  If there is no need for malls, then there is no need for workers.  When you see "Leasing Opportunities" everywhere on Commercial properties you are in a bad economy (especially if you see it in Malls or Busy Intersections). You economy is faltering and weakening right in front of your eyes.

23.) It is not normal to live in Debt like Industrialists, Globalists, and Countries -and yet everyone lives like that presently.  We all live our lives illogically not rationally.  We only think about growth and how to achieve it.  Nothing else matters but growth in our present lives.  We are breeding failure.  "Short term greedy & Long term poorer".

24.) For the first time in 35 years, American business deaths now outnumber business births.  The U.S. Census Bureau reports that the total number of new business startups and business closures per year — the birth and death rates of American companies — have crossed for the first time since the measurement began.

25.)  The American dream: “We buy sh*t we don't need with money we don't have to impress people we don't like”.  Presently, we can't buy sh*t we don't need because our debt levels are drowning us.

26.) The financial crisis of 2008 is just one of many bank heists the banking cartel has pulled off and continues to pull off daily.  "Bail ins" reward bad attitudes, risky behaviour, and sheer ignorance.

27.) Corporate Law overrides all Constitutions, Religious Laws, and Regional Laws.  Transatlantic Trade and Investment Partnership (TTIP),  and Transatlantic Free Trade Area (TAFTA) overrides all government Constitutions including religious accommodations and regional laws.  Power goes to the Corporations and dissolves Governmental control and influence.  Existing Union powers and Labour laws dissolve overnight.

28.) Uncle Sam does the impossible: Loses $105 million per year coining money. Meanwhile since 1973, the IMF's SDR have lost 96% of it's value to Gold Bullion and the Swiss National Bank lost $80 billion buying Euros and lost another $35 billion selling gold. Printing money and coins is expensive and this opens the door for a cashless society.  However, the danger lies in the fact that users of this "cashless society" must be able to keep track of their accounts.. If people can’t keep track of the money they use and borrow then it’s their fault not the person who designed it. Be accountable for your own money and choices and always be weary of hackers.  

29.) The Future is an Online society.  Very little need to do but stay plugged in 24/7 at work and at the whim of your Employer/Corporation/State/Ruler.  The masses will communicate online, shop online, interact online, and be monitored online.  Whole lives will be lived online.

30.) Presently, Stagnant health system meets an Aging population.  Disaster awaits.

31.) 5 Big Banks will Survive the Next Financial Calamity.  Everybody else will become liquidated, insolvent, and declare Bankruptcy. 

32.) Largest owner of US debt is US Social Security at 16%, China owns 7.2%.

33.) There always exists an idealistic sector in society that wants to hear the message, "We are all equal and we can all end poverty". The message of Communists, Religious adherents, and Social Democrats. This message never dies off.  However, though Religious leaders such as the Pope, Communists, and career politicians in Social Democratic parties always talk about poverty and afflict you with that vibration, they also never give up their property, reduce their salaries, limit their travel, control their affluent lifestyles, or sell off their possessions (such as artwork) to end poverty for the masses.  Instead they prey on the poor and idealistic by asking the poor and idealistic "to do more with less".

34.) "If nobody knows the truth then nobody knows what to do.  Hence, everyone gets a go but no one can solve the problem"  and this is why there is so much Disinformation and Misinformation out there through the use of the Media and Institutions.  

35.)  “The structure of history is held together by two essential and distinct kinds of links, two moments in time to which no one is immune: moments of epiphany, and moments of catastrophe.  Sometimes, both elements intermingle at the birth of a singular epoch. Men often awaken to understanding in the midst of great crisis; and, invariably, great crises can erupt when men awaken. These are the moments when social gravity vanishes, when the kinetic glue of normalcy melts away, and we begin to see the true foundations of our world, if a foundation exists at all”

36.)  No International bankers or Industrialists got tried in the Nuremberg Trial and yet without them, the Nationalist Socialists would not have any funding.  No funding means no "German miracle".  No "German miracle" means no push for War by the East and West to encircle and trap Germany.

37.)  Rothschild bought Charlie Hebdo in December 2014. This is eerily similar to how Larry Silverstein got his hands on the World Trade Towers before that "terror" attack on 9/11!
38.) Billionaire George Soros funded the highly organizes Ferguson Protests to the tune of $33 million.  George Soros is the architect of the Colour Revolutions in Eastern Europe.  If the Ferguson Protests did not serve a purpose, it would not be covered by the media 'nor be funded by Billionaires.

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