One day after the biggest drop in US stocks in two months, global stocks struggled as they tried to close out 2016 on a positive note. The dollar dropped the most in two weeks, sliding alongside bond yields, while oil retreated from its highest close in 17 months. European stocks slid from a 2016 peak on renewed concerns about Italian banks.
"Markets don’t have a purpose any more - they just reflect whatever central planners want them to. Why wouldn’t it lead to the biggest collapse? My strategy doesn’t require that I’m right about the likelihood of that scenario. Logic dictates to me that it’s inevitable..."
The largest contributor to inflation and financial turmoil is dishonest money - enabling bureaucrats to run perpetual government deficits and pile up the federal debt. If Trump takes the steps outlined below, he can repair some of the damage.
The elites' toadies, lackeys, shills, sycophants, water-carriers and apologists are desperately hyping the context-free, historically ignorant narrative that "populism leads to autocracy" to protect the existing autocracy of the elites.
Today Venezuela pulled a page out of the Indian "demonetization" playbook, after the country eliminated half the paper cash in circulation by pulling the highest denomination, 100-Bolivar bill, from circulation. "I have decided to take out of circulation bills of 100 bolivars in the next 72 hours," Maduro said in a TV address. "We must keep beating the mafias."
India continues to stagger from bad to worse followinhg Modi's demonetization. With just 35% of ATMs nationwide operational, Goldman warns the shortage of cash continues to incentivize the use of alternate payments, including extension of informal credit and a return to barter systems. Addtionally, the slowdown in activity is dramatically reflected in lower tax collections and discounts offered by luxury car companies.
"The rich will pay what they need to escape harassment; the rest will suffer." Global financial repression picks up steam, led by India. After declaring large denomination notes illegal, India now targets gold. It’s not just gold bars or bullion. The government has raided houses, no questions asked, confiscating jewelry.