"Debt Is Being Piled Upon Debt Being Piled Upon Debt"
"These low interest rates could have the potential to be the next serious issue faced by countries and it’s because debt is exploding everywhere .. There’s debt being piled upon debt being piled upon debt .. That is an Alice in Wonderland world, and if you go into negative interest rates, you are going through the looking glass and no one knows what will really happen." LINK HERE to the article
Societe Generale’s outspoken analyst Albert Edwards sees a major crisis in the world economy, but not stemming from the over-hyped Brexit vote .. Edwards is worried about the devaluation of the Chinese currency .. "In a current environment where central banks and governments have failed to generate a strong enough economic recovery to normalize interest rates amid persistent deflationary pressures, one would have thought a substantial decline in one’s currency would be welcomed for that is one way to inject a modicum of inflation back into the economic system .. Our attention has been diverted .. China has embarked on a stealth devaluation of the renminbi" as the new trade-weighted currency basket has fallen 10% prior to its initial August 2015 devaluation .. It is China that needs to be monitored, Edwards says. The Brexit is eye candy for the mainstream. LINK HERE to the article
Greenspan: "This is the worst period, I recall since I've been in public service. There's nothing like it, including the crisis — remember October 19th, 1987, when the Dow went down by a record amount 23 percent? That I thought was the bottom of all potential problems. This has a corrosive effect that will not go away. I'd love to find something positive to say .. Brexit is not the end of the set of problems, which I always thought were going to start with the euro because the euro is a very serious problem in that the southern part of the euro zone is being funded by the northern part and the European Central Bank." .. sees a dramatic slowdown in real incomes across the developed world.
John Rubino* explains the ramifications of the Shanghai gold exchange - where buyers go to get actual physical gold & silver .. "If the price set in the Shanghai physical market is higher than in the paper markets — reflecting the different aims of the respective sets of traders — then it becomes profitable for holders of long futures contracts in the West to demand delivery of the metal, ship it to China and sell it at the higher Shanghai price. Once this process gets going it will quickly clear out the inventories of the Western exchanges, leaving nothing for future arbitrageurs. The exchanges will then force those wanting delivery to accept cash instead, in effect defaulting on their promises. Then it’s game over, with the big futures manipulators no longer a factor in pricing. Presumably from then on gold and silver prices will reflect rising physical demand in the East (and in the West from individual stackers). And gold will begin its long climb to the $10,000 or so price necessary to balance the amount of fiat currency created during the inflation of the Money Bubble. This phase change could take a while, creating the possibility of some more nasty corrections while the paper players retain the upper hand. And once it gets going it could be steady and relatively peaceful or a “punctuated equilibrium” move where the failure of an exchange or bullion bank sends gold from $2,000 one day to $6,000 the next. Either way, the dominance of physical exchanges implies that much higher prices are coming." LINK HERE to the commentary
Discussion on government policies that created the financial & economic downturn of the financial crisis as a basis of understanding the current monetary & interest rate imbalances that the Federal Reserve has continued to generate .. 40 minutes
Intercontinental travel & the shipping of animals & food across the world have become a 'viral expressway,' allowing epidemics to spread far & wide in a short amount of time .. "In recent weeks there has been an uptick in foodborne disease outbreaks, affecting a number of foods and nutritional products you normally would not suspect, including flour, sunflower seeds and multivitamins .. E. coli carrying the drug resistant mcr-1 gene has been detected in the U.S. This mutated gene confers resistance to drugs of last resort in human medicine."
The Most Accurate Statement Fed Chairperson Yellen Could Make?
"DISBAND THE FED
BEFORE IT DOES FURTHER DAMAGE"
"The only thing central banks can possibly do is damage economies by setting real interest rates too low or too high. And make predictions that are never accurate. In fact, central banking doesn’t work because it is impossible to make accurate predictions about the future, especially when it comes to the economies of industrialized states. There are simply too many factors. The most accurate statement Yellen could make is that she doesn’t know what’s going on with the economy and will never be able to know. Then she should suggest disbanding the Fed before it does further damage. This would be the most accurate statement she could make." - The Daily Bell LINK HERE to the essay