Financial topics

[John]

> I am amazed that we have not started the next financial crisis
> already. There are lots of things that look like rows of dominoes
> ready to fall over. When some things go it should trigger other
> things. All it takes is some trigger to get things started. We
> have all kinds of countries in crazy financial stress because oil
> prices have crashed (at least Russia and much of the mid-east).
> We have Greece with their banks still closed. Though China has
> managed to prop up their stock market for the moment, it still
> seems clear this will crash. Puerto Rico is defaulting. Looks
> like a train wreck where the first 3 cars are already crashing and
> everyone on all the following cars things all is fine. I think
> these are interesting times.

I've been amazed the past few years with the willingness of
governments to paper over problems by blanketing the problems with a
tsunami of money. Trillions of dollars have been thrown into global
stock markets by quantitative easing. Obamacare is a financial
disaster held together by the $710 billion Medicare insurance fund,
which has essentially been thrown into the garbage with nothing to
show for it.

The assumption is always that the tsunami of money is only temporary,
because it buys time for the problems to solve themselves. Thus,
flooding the stock market with money is OK, because soon economic
growth will take over. Flooding Obamacare with money is OK, because
soon the various Rube Goldberg Ponzi Scheme businesses will become
self-sustaining.

Those assumptions are now provably wrong, and the only way to keep
things from collapsing is to keep the tsunami going. But eventually,
even a tsunami runs out of water.

China's actions in the last month -- using a tsunami of money to keep
the Shanghai stock market bubble from imploding -- seems to have
worked for a few days. But China's economy has been dramatically
slowing, and needs its own tsunami to prop it up. So now we have the
yuan devaluation. This devaluation seems to be a very big deal with
global implications. The trigger that you mention has to occur
sometime, and there's a possibility that the devaluation will be the
trigger especially if it causes a global currency war, starting
with China's neighbors.

[aedens]

" It is always a much easier task to educate uneducated people than to re-educate the mis-educated."
Herbert M. Shelton, Getting Well
tags: education, ignorance, indoctrination, propaganda

As we noted not to long ago the balance of trade issues will announce itself.
I consider also energy margins facilitated node production plants in scale.
As we know you build three in three zones and one will be best practised to assert "values"
to correct local taxation issues. The dialectic since phase two of the "industrial revolution"
never changed adaptations of design since the Farben cartelization periods. As Hayek and Keynes knew
the point of legal status was the only contention.
To a limit of fact, the Consumer has one choice alone. Utility.

As we noted Energy companies investing in one another, they have no choice.
Read up on the history of the Standard Oil monopoly if you don’t understand.

As discussed: probable pattern recognition conditions trended
http://gdxforum.com/forum/viewtopic.php ... 367#p28367

previous context thread Sun Oct 26, 2014 8:12 am: Even if you provide accurate data you will be eaten by that tribe. Simply they are what we discussed as the proverbial fatal deceit as before. Hayek knew this as did Keynes since they only differed on the entry point to sort out needed cartels on what you may remember as the cluster nodes which keep these neo pagans today from eating each other.
"The rules of morality are not the conclusions of our reason." - David Hume
As Higg noted to me correctly, being Bagehot on some items which conveys the character of leaders was often more important
than their political affiliation.

Just a condition as the normalcy bias indicates we have been already reminded of.
Got to admit at times they got the aspect correct to those which the Gods wish to destroy they first anger.

"I have seen this people, and indeed it is a stiff-necked people!
Now therefore, let Me alone, that My wrath may burn hot against them and I may consume them.

Hegel remarked that all great world-historic facts and personages appear, so to speak, twice.
He forgot to add: the first time as tragedy, the second time as farce.
In particular, he developed the notion of the master–slave dialectic.

Not hard to see what drives motive today.
http://www.zerohedge.com/sites/default/ ... 11_oil.jpg

[aedens]

http://eppc.org/publications/jacques-ru ... t-century/

Weak currency should be due to a negative balance of trade and not a goal. Every thing is backwards and not functional in our insane monetary system. Jacques Rueff saw this years ago and said some day the wolrd would view it with astonishment.
That day has come. lvp

ZIRP (or NIRP) liquidity trap is already stalking at least half of the entire world, there really is no choice. t

So it's for the benefit of shareholders? When do shareholders get to vote on the restructuring?
They don't. Google says that under Delaware law, it can pull off the Alphabet changes without needing a shareholder vote.
Nice touch on the velvit rope.

[vincecate]

I've been amazed the past few years with the willingness of
governments to paper over problems by blanketing the problems with a
tsunami of money.

As long as politicians can print money without consequence, they will. This is why I am so sure this does not end in deflation.

[John]

> I've been amazed the past few years with the willingness of
> governments to paper over problems by blanketing the problems with
> a tsunami of money.

> As long as politicians can print money without consequence, they
> will. This is why I am so sure this does not end in
> deflation.

Mainstream economists have been saying that for years and years, and
they've been wrong every time, despite almost a decade with tsunamis
of "printed money." I've been predicting deflation for years, and
I've been right every time. Today, with global trade slowing and the
velocity of money continuing to fall, every economy is in deflation or
close to it. Off the top of my head, the only exception is Venezuela,
for other reasons.

[vincecate]

> As long as politicians can print money without consequence, they
> will. This is why I am so sure this does not end in
> deflation.

Mainstream economists have been saying that for years and years, and
they've been wrong every time, despite almost a decade with tsunamis
of "printed money." I've been predicting deflation for years, and
I've been right every time. Today, with global trade slowing and the
velocity of money continuing to fall, every economy is in deflation or
close to it. Off the top of my head, the only exception is Venezuela,
for other reasons.

It has not ended yet. As long as interest rates are crazy low we have not yet returned to normal.

[vincecate]

> As long as politicians can print money without consequence, they
> will. This is why I am so sure this does not end in
> deflation.

Mainstream economists have been saying that for years and years, and
they've been wrong every time, despite almost a decade with tsunamis
of "printed money." I've been predicting deflation for years, and
I've been right every time. Today, with global trade slowing and the
velocity of money continuing to fall, every economy is in deflation or
close to it. Off the top of my head, the only exception is Venezuela,
for other reasons.

Two more quibbles.
1) mainstream economics is Bernanke, Yellen, Krugman and mainlining money injections. The guys predicting runaway inflation are not mainstream.
2) Because runaway inflation is a positive feedback loop, it is like an Earthquake, so you can be right in saying there is a high risk even if it does not come that year.

http://howfiatdies.blogspot.com/2014/08 ... ry-of.html

[aedens]

Without debate, without criticism, no Administration and no country can succeed and no republic can survive. That is why the Athenian lawmaker Solon decreed it a crime for any citizen to shrink from controversy. And that is why our press was protected by the First Amendment-- the only business in America specifically protected by the Constitution--not primarily to amuse and entertain, not to emphasize the trivial and the sentimental, not to simply "give the public what it wants"--but to inform, to arouse, to reflect, to state our dangers and our opportunities, to indicate our crises and our choices, to lead, mold, educate and sometimes even anger public opinion.

This means greater coverage and analysis of international news--for it is no longer far away and foreign but close at hand and local. It means greater attention to improved understanding of the news as well as improved transmission. And it means, finally, that government at all levels, muNote to Self: discussion with Central Planners why its probably not a good idea to park an LNG facility NEXT TO a hazardous materials handling warehouse ...st meet its obligation to provide you with the fullest possible information outside the narrowest limits of national security.

April 27, 1961 By John F. Kennedy

if the government imposes stricter supply chain safety standards

"In my view, there must be a lot more safety and security control in place in the near future," Liu said

https://www.osha.gov/pls/oshaweb/owadis ... &p_id=9760

Note to Self: discussion with Central Planners why its probably not a good idea to park an LNG facility NEXT TO a
hazardous materials handling warehouse ...

[aedens]

http://www.finalcall.com/artman/publish ... 7886.shtml

http://news.yahoo.com/battles-rival-gun ... 09461.html

Chicks are property over there. Stay home girls and boys since this bar fight is just warming up.

http://news.yahoo.com/battles-rival-gun ... 09461.html

http://www.americanthinker.com/articles ... oblem.html

[aedens]

The Unraveling: 1971 – 1973

Global monetary authorities viewed the 15 August 1971 closing of the gold window as
confirmation that the dollar was overvalued. European exchange markets remained closed for a
week, and when they reopened, European governments did not defend their par values. With
respect to a future international monetary system, leaders wanted a return to fixed exchange
rates, although in a system based on a ‘neutral reserve instrument’ rather than on the dollar. In
addition, world monetary authorities wanted a system in which all parties must participate in any
exchange-rate adjustment. They thought that the world was in danger of creeping protectionism.

http://www.nber.org/papers/w16946.pdf

Here we are... http://www.tradingeconomics.com/united- ... n/forecast

I think I will DCA producers until hell freezes over, and will continue to do so now.