Monday, August 29, 2016

LARRY SUMMERS: "The central irony of  the financial crisis is that while it is caused by too much confidence, borrowing, lending and spending, it can only be resolved with more confidence, borrowing, lending, and spending,"
The Number One Factor Influencing 
Federal Reserve Monetary Policy - 
"Central banks keep reloading and doing dumber and dumber things, and since their stupidity seems to know no bounds, I’m willing to say that I don’t know how dumb things will get before they stop. What I do know is that locking in a guaranteed loss on bonds that are held to maturity is not a good way for investors to meet their long-term liabilities. Think pension plans and insurance companies for example. Central banks are eviscerating them. How insolvent pension systems and life insurance companies can be good for the global economy is beyond my pay grade, but then again, I don’t have a Ph.D. in economics."
- Jeffery Miller, of StockResearch
LINK HERE to the source
Jim Rickards*: 
“There Will Be A War On Gold”
Sprott media interview .. 20 minutes
GOLD & DEBT - The 1929 Great Depression 
Vs The Next Great Collapse
Report on how the situation Americans face in the future will be nothing like anything they have experienced in the past .. "Americans are in real trouble and I don’t continue to say that just to be pessimistic or negative. U.S. oil production is about to collapse while total U.S. public debt of $19.4 trillion turns out to be a staggering $60,625 for each American. There is no way this debt will ever be repaid. Some investors and analysts believe there should be a 'Debt Jubilee' or a wiping out of debt so we can start fresh. I would like to remind these 'Einsteins' that wiping out debt also wipes out the supposed assets on the other side. When assets implode, so will the capital available to the market for future economic activity. Anyhow, U.S. debt will implode due to the collapse of U.S. domestic oil production on top of falling oil imports in the future. This will create an event in history that will make the population understand the value of GOLD & SILVER once again."
LINK HERE to the report
QE Infinity: Are We Heading 
Into The Unknown?
CNBC article & video highlights the challenges for central banks in trying to stimulate the economy & the financial markets .. Macro Strategist Albert Gallo: "The problem is rising debt and monetary easing comes with many collateral effects. One is the distortion of asset prices, leading to asset bubbles .. Asset price distortion also has a ripple effect on wealth distribution, increasing inequality by benefitting the already-wealthy who are more likely to hold financial assets. Over time, low rates and QE can also encourage misallocation of resources to leverage-sensitive sectors, including real estate and construction .. But many governments are reluctant to accept the need for these measures, often instead implementing policies that win votes but compound the distortions of easy monetary policy e.g. housing affordability programmes, mortgage subsidies .. This is the paradox of current monetary policy: On one hand, it is the best possible response available to central bankers. On the other, it has long-term collateral effects which need to be confronted eventually."
LINK HERE to the article
click to enlarge
America: Welcome To The Third World:
Pensions Overwhelm Public Services
"Europe, Japan and the U.S. are making essentially the same mistakes as Venezuela’s past and present governments .. Like most of the rest of the formerly-rich world, Chicago ran out of money years ago and has been more-or-less secretly borrowing to cover the shortfall. Its public sector pensions for instance, pay retired workers far more than the city can afford – but are legally uncuttable according to a recent court ruling .. The result: a steady march down the affluence ladder towards a living standard that would be familiar to people in Brazil or India .. Lots of other developed-world cities, states and countries are in similar predicaments, mostly because previous leaders over-promised on pensions that can’t be paid without skimping on everything else .. Life will get a lot harder for millions of people who are unprepared for it .. It will, in short, become extremely unpleasant for the developed world’s former middle class. Then will come the civil unrest, and just like that your neighborhood looks like those Argentina videos .. One of the laws of public life is that once created, a program gains beneficiaries who will defend it to their dying breath. So debt and unfunded liabilities keep expanding until the bill comes due."
- John Rubino*
LINK HERE to the commentary
Steve Keen Interview On BBC HardTalk 
Discussion on why mainstream economists shouldn't be trusted, Brexit, the Euro, & overall the need to reform economics a decade after the Global Financial Crisis .. 24 minutes
Dr. Paul Craig Roberts:
The World Is Now At
The Edge Of The Great Abyss
Dr. Roberts references an article by Orlov which concludes that the U.S. is a dead nation, still walking but no longer a uni-power .. on Russia & recent geopolitical developments: "It is my conclusion that Washington is aware of the constraint that the desire for Western acceptance puts on the Russian government and that this is why Washington, in a direct thrust at Russia, was comfortable orchestrating the coup that overthrew the elected Ukrainian government .. Western reporting and think tank and university reports on Russia are propaganda and are useless to understanding the situation .. It is reassuring to see some realism creeping back into Washington attitudes toward Russia. However, realism is still a minority view .. In my opinion, the chance of nuclear war from Neoconservative intention, miscalculation or false launch warning remains high. The provocations of US/NATO military forces and missile bases on Russia’s borders are reckless as they build tensions between nuclear powers. It is in times of tension that false warnings are believed and miscalculations occur. In the interest of life on earth, Washington should be de-escalating tensions with Russia, not building them. So far there is no sign that the Neoconservatives are willing to give up their hegemonic agenda for the sake of life on earth."
LINK HERE to the article
Harvard Economist Advocating
Banning U.S.$20,$50 & $100 Cash Bills
Ken Rogoff is advocating "a 'less-cash' society, not a cashless one, at least for the foreseeable future" .. it's a move in financial repression .. "There is little debate among law-enforcement agencies that paper currency, especially large notes such as the U.S. $100 bill, facilitates crime: racketeering, extortion, money laundering, drug and human trafficking, the corruption of public officials, not to mention terrorism. There are substitutes for cash—cryptocurrencies, uncut diamonds, gold coins, prepaid cards—but for many kinds of criminal transactions, cash is still king. It delivers absolute anonymity, portability, liquidity and near-universal acceptance. It is no accident that whenever there is a big-time drug bust, the authorities typically find wads of cash."
link here to the article
link here to an alternative source
click to enlarge
Red Ponzi Ticking
China & The Dark Side Of The Global Bubble
"China has been the epicenter of this global crack-up boom. Unrestrained by any traditions of sound money or even vestigial mechanisms of market discipline and financial controls, the communist party apparatchiks who inherited Mr. Mao’s epic mess let loose a credit-driven construction and investment mania like the world have never before seen .. It amounted to a veritable Red Ponzi. That’s the real menace .. China is not a $10 trillion growth miracle with transition challenges; it is a quasi-totalitarian nation gone mad digging, building, borrowing, spending and speculating in a magnitude that has no historical parallel .. It has fashioned itself into an incendiary volcano of unpayable debt and wasteful, crazy-ass overinvestment in everything. It cannot be slowed, stabilized or transitioned by edicts and new plans from the comrades in Beijing. It is the greatest economic train wreck in human history barreling toward a bridgeless chasm .. If China goes down hard the global economy cannot avoid a thundering financial and macroeconomic dislocation."
- David Stockman*
LINK HERE to the essay

LINK to related article from the archives
Negative Rates & Cash Bans:
 The Chaos Continues At Jackson Hole
The Jackson Hole summit is attempting to find more creative ways of dealing with an economy which can not be bolstered with conventional monetary stimulus & even unconventional monetary stimulus .. "The assumption is that involved in the 'monetary debate' will come to a reasoned conclusion that society as a whole will be impelled to adopt. Those who do not wish to adopt such a solution – and who actively resist – may be prosecuted or jailed .. And so we observe Jackson Hole, which is presented to us as a conclave of elite thinking but which is actually nothing more than high-brow propaganda for a system that has already failed and – as compensation for its failings – now contemplates even more radical 'solutions' that will give rise to even worse problems .. The mechanism of central banking is purposeful ruin. The end-result of this ruin is global governance. In the short-term this goal is disguised by an academic patina. But the long-term goal, an increasingly apparent one, is a brutal restructuring of the lives of seven billion people to benefit a handful of elite controllers."
LINK HERE to the essay
Danielle Park Weekly Update
Danielle was a guest with Jim Goddard on Talk Digital Network, talking about recent developments in the world economy & markets .. 28 minutes