Monday, September 26, 2016

"Hell To Pay" - The Final Condition 
For A Market Crash Is Falling Into Place
'Sometimes I wonder if I'm ever going to run out of new things to say about the economy. Nothing interesting has happened in a long time. Our liquidity-drunk 'markets' remain over-priced due to the chronic intervention of the global central banking cartel, which has demonstrated over and over again that it won't tolerate even the slightest drop in asset prices. It's destined to fail. What more can be said about such a flawed system? Well, a lot as it turns out. And failure to pay attention at this stage of economic and ecological history will prove to be exceptionally painful .. All this matters because
once faith in central banks is lost, their power to delay the deflationary day of reckoning goes with it.
The stupendous amount of debt they have helped heap onto the financial system since 2008 will start going into default and
the only question that will matter is: Who is going to eat the losses?
The daisy chain of bubbles in stocks, real estate and the mother of them all -- the bond market -- will pop, adding additional losses to the growing bloodbath. All this will weigh on the already-sluggish growth in the economy, sending us into deep capital-R Recession, or worse."
- Chris Martenson
LINK HERE to the essay

1 comment:

Anonymous said...

Notes From Underground: Merkel’s Boner, Take Two

It seems that 108 years is enough time to pass to relive history. For those who are not sports fans, Merkle’s Boner is a famous mistake made by New York player Fred Merkel, who didn’t touch second base and was called out erasing the “fact” that the New York Giants had beaten the Chicago Cubs. The major GAFFE led to the Cubs beating the Giants and the CUBS moving to the World Series where they defeated the Detroit Tigers for their last World Series championship only 108 years ago.

Today we have the Cubs in first place and another MAJOR BONER, this time by a different Merkel, German Chancellor Angela Merkel. In a Bloomberg article on September 24, reporter Patrick Donahue cited a piece from Focus Magazine that said Chancellor Merkel “ruled out any state assistance for Deutsche Bank.” This is a major “boner” on the part of Frau Merkel for it shows a severe lack of understanding about the financial implications of her false stance on appearing to side against bailing out a financial giant. The Chancellor’s words will ring HOLLOW if in fact Deutsche bank has to come begging for state support to secure its existence.

The systemic importance of Deutsche Banks would render the Lehman debacle a mere accounting error. Deutsche is PROBABLY the most leveraged institution in the world and if it failed the reverberations would rock Tokyo, China, London and Wall Street. Every financial actor has exposure to Deutsche Bank rendering Merkel’s political posturing an act of colossal stupidity, especially as the global economic system is in a highly fragile state. ECB President Draghi must have sighed in disbelief as his “guardian angel” jeopardized the entire ECB effort at creating the backdrop of “whatever it takes.” Time magazine named Chancellor Merkel its person of the year in 2015 but I will nominate her as the FOOL of the decade for failing to understand the global financial system. I GUARANTEE THAT DEUTSCHE WILL BE BAILED OUT BY THE GERMAN POLITICAL SYSTEM.