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The Crisis Is Spreading: China, Australia, Brazil, Canada, Sweden...
Earlier today, we posted an excerpt from IceCap Asset Management's latest letter to investors focusing on the farce that is the Greek bailout #3, which can be summarized simply by the following table...
... and Keith Dicker's assessment which was that "for Greece, it’s mathematically impossible to repay its debt" and that the Greek "economy continues to plummet to deeper depths and is now -33% less than where it was in 2008."
But the truth is that for all the endless drama, Dicker continues, "the Greek debt crisis isn’t THE crisis. Rather it is simply a symptom of a much larger global debt crisis."
The problem is that the "larger global debt crisis" is finally metastasizing and spreading to more places, all of which are large enough that they can not be simply swept under the rug, like Greece.
* * *
IceCap's Keith Dicker continues:
We’ve written before that governments all around the world have borrowed too much money and the weight of these debts are choking economic growth.
And to make matters worse – these very same governments and their central banks have implemented various plans that have only made matters worse.
Our view has not changed – the global debt crisis has escalated to a point where the government bond bubble has inflated itself to become the mother of all bubbles. It’s going to burst, and when it does it wont be pretty.
Further evidence to support our view is as follows:
Canada – the collapse in oil and commodity markets has pushed the country into recession and the Canadian Dollar to decline to levels lower than that reached during the 2008 crisis.
Oil dependent provinces Alberta and Newfoundland remain in deep denial. Since everyone in these provinces have only ever experienced a booming oil market, many naively believe things will bounce back – and quickly.
Meanwhile, both Toronto and Vancouver housing markets also remain in denial as they continue to go gangbusters. Buyers today are likely buying at all-time highs.
And as we predicted last year, the Bank of Canada has cut (not raised) interest rates twice in the last 6 months.
We fully expect the Bank of Canada to eventually cut interest rates to 0% and start a money printing program as well. And for the stunner - NEGATIVE interest rates will not be that far behind.
Australia – Over the last 20 years, China has been viewed as the growth engine of the world, and justifiably so. With annual growth rates between 8% to 15%, China’s economy was literally eating every rock, stalk and barrel of practically every commodity in the world.
And naturally, any country or company that produced these commodities made a tonne of money – including Australia.
Today, China’s growth rate has slowed to about 3% which is a dramatic slow down compared to what it achieved in the past. This slowdown and China’s effort to even maintain these rates, will have significant repercussions around the world.
And the first up to bear the brunt of this slowdown is its closest supplier of raw materials – Australia.
With dark clouds on the economic horizon, the Australian government and central bank is doing everything possible to prevent the unpreventable recession.
Interest rates have been reduced to all-time historical lows, meanwhile the Australian Dollar has plummeted -25% over the last year. Yet – the negative outlook has not improved.
Brazil – Like Australia, Brazil has benefitted immensely from China’s growth. And now, also like Australia, it too is feeling the affects of the dramatic Chinese slowdown.
The economy has now declined for 12 consecutive months making it both the longest and deepest recession in 25 years.
But wait – it gets worse. Despite declining growth, inflation continues to soar higher causing interest rates to rise as well.
And if that wasn’t bad, also know that the Brazilian currency has fell off the cliff at -53%.
Sweden – Unlike Australia and Brazil, Sweden relies very little on China as a buyer of last resort. Yet, the Swedish economy is also not very hot these days.
In fact, instead of spectacular and dramatic declines in anything, it is doing the exact opposite – it just isn’t moving.
While Sweden isn’t in the Eurozone, it is smack dab next to it and that in itself is reason enough for the lack of growth. We’ve written before how the debt crisis in the Eurozone is acting like a giant, slow moving tornado that is sucking the life out of the economy and everything near by. And unfortunately for Sweden, it is very near by.
While economic growth in the Nordic state hasn’t declined, it hasn’t accelerated either – and this is what has many worried.
So worried, that the central bank shocked everyone not once but twice, by first announcing that they would begin to print money, and then when they announced that interest rates would be NEGATIVE.
These actions are so severe, that we need to repeat them:
1) MONEY PRINTING
2) NEGATIVE INTEREST RATES
It is hoped that these actions will cause people and companies to loosen their wallets and start spending again. Yet, what the government and the central bank doesn’t understand is that these actions will actually make the problem worse.
As the global economy continues to move as we expect, there is nothing Sweden can do to change what is coming – a global recession and a significantly weaker Krona.
China, Australia, Brazil, Canada, Sweden - it is beyond us how anyone can declare the crisis isn’t spreading. Be prepared – there are going to be lots of opportunities to both make and lose money.
But first, you have to recognize what is happening.
* * *
IceCap's full letter below
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Försök EJ med sånt lynnybee....fullständigt tölpsnack.
I watched 8 minutes of this BS-propagnda piece.
It's totally twisted, twisting figures and reality; using policy 'proposals' and/or projections, as, applied policy
The fact is, it was a right-wing coalition(sept 2006-sept 2014) that opened the floodgates for asylum-seekers & 'qualified professionals'.
The right-wing gov't drastically reduced subsidies to the building of housing & sold-off countless nationally owned enterprises to institute income tax reductions for the well-to-do.
A consequence of this right-wing thatcherism-newliberal policy has been skyrocketing prices for housing, electricity and unemployment.
The Global Banking Cabal has made a real killing on this; in swedish "Rövare Kapitalism"-Bandit Capitalism.
The former PM Reinfeldt & ex-PM-FM Carl Bildt used/paid the neocon scumbag Karl Rove to 'consult' on policy.
Karl Rove / Carl Bildt are buddies since the '70's. Bildt's also a cia-asset....I'm not jokin'.
AND, Don't begin the bullshit that I' a libtard-commie-muzzie lover- ad homniem attack crap.
I am & always have been a realist.
What did we Aussies do with all that wealth from China? Sell our farms to developers for shopping malls. :(
Hmm, farm indoors now?
Production? Innovation? R&D? There are millions of wonderful things that could have been done but what did we Aussies do with all that "wealth"? Buried it in the ground where it dissolved in the soil and melted away, never to be dug out of the ground again. The price of real estate went up so fast it ate all our "excess wealth" and more, leaving many worse off than before. Okay, okay, you can currently still "dig that wealth out of the ground" because we still have banksters willing to finance "greater fools". If you already owned all the land you wanted before 2000, things weren't too bad. Everyone else had their excess wealth stolen from them by the idiots and their banksters.
Go to an auction. What is anything worth? If an idiot is willing to buy and a bankster is willing to lend to him, you won't buy anything unless you are an idiot.
Leveraged it to buy more of their own houses and rent them out. Then did all they can to let the chinese buy in to keep the party rolling.
Mortgage debt and household debt off the charts at the end of a boom. Will end well.
"It is hoped that these actions will cause people and companies to loosen their wallets and start spending again. Yet, what the government and the central bank doesn’t understand is that these actions will actually make the problem worse."
Just shows how stupid central bankers are. Powerful; yes. Stupid; yes, yes.
My theory is that it is suicide by revolution
Has the entire globe ever been in a recession before?? Serious question. Thanks.
Good question and I don't know the answer. But any such economy would have to be small/low population, largely self-sustaining and somewhat cut off from the rest of the globe. Iceland?
The Great Depression of the 1930s was worldwide. You'd never know it by the way textbooks are written about it. You'd think it was a US-only event, but it was FAR from that.
Germany was blooming under Hitler pre-war in the 30ies. There's a reason the people loved the guy in the first place. Big mistake though.
Actually it ended far sooner in most of the RoW.
Won't happen this time around.
I'd say that the entire world was affected by the Great Depression. Britain owned 25% of the world's landmass and was in depression. France, Portugal, Spain and even the Netherlands had large colonial empires. The world was much more sharply divided between manufacturing nations (all in depression) and extraction colonies of one sort or another that sold raw materials to those factory centers and bought finished goods in return. No demand for raw materials led to no orders for finished goods and on around the circle just like today. Stalin was busy collectivizing the Soviet economy and thus created his own personal depression when his isolated kingdom might have otherwise avoided participation.
Hope that helps.
Since 1997 and the currency crisis we have all been practically linked together. We have had our recessions but not depressions....yet
Some would say we've been in recession since the big bang... asymptotically the point of zero entropy. All downhill from there :( I mean that as a serious answer.
As long as the American Government, and politicians, are frightened, and worried to the point of recklessness, I am good with the crisis spreading. CANADA is a survivor, but the God damned United States of America is an abomination.
your mind doesn't seem to work right
That's what they said about Alan Turing, Omega_Man. Do you want to make my mind work right, Omega_Man?
What a spectacularly poorly written piece.
Pearler of a moniker, and picture mate.
You've had me giggling like a little bairn. The department of work and pensions....
Brilliant.
;-)
I find it strange how most of the Governments have overspent at roughly the same rate (debt to GDP) and at about the same time in history. If Zimbabwe had been a few years later in the printing game perhaps it would have looked more normal. I wonder what Governments have done with the money and if they have wasted ALL of it?
Get that money back from the banksters. They didn't do the world any good by taking it.
Annnnnd it's gone!
"Everyone in Alberta has only experienced a booming oil market. "
Oh really?
Unless the author qualifies that by saying 'everyone under 30'....he has lost his credibility with that ridiculous generalization.
You don't know the economic history of Alberta.
Unique in Canada, until now.
Luckily, they have elected a tax and spend government just in time for the collapse.
The gods of history are actually given to much frivolity.
Australia is sleepwalking into recession...
http://newworldorderwatchblog.blogspot.com.au/2015/04/australia-is-sleep...
what a lot of people do not know is that Canada was bailed out to the hilt in 2008-0-10 by the FED.... just one of many western banks that FED ..
remember that question.... half a trillion dollars and you don't know where it went...?
Is this a joke?
The global economy is about to collapse - and this is a money making opportunity?
You really haven't got a clue.
Might I suggest the bigger concern will be where your next meal comes from when this blows up
So.... the story here is that China is still growing but at a reduced level and due to that slowdown the rest of the world is plunging into depression. So... who wasn't being sustainable again? Looks like China played this game fairly well. Loaded up on resources, accomplished a ton of development. Still have a ton left to do as well. Except that the commodity stash is already in place, so when it comes time to pump the developers with more cash, they tap domestic. Sucks to be aussie or anyone hoping to supply.
The thing I've learned from the US crash in person, and from following all of the other crashes as a vicarious exercise, is that every society is living much closer to the edge than you realize.
Inflict a 5% recession on any one of them and the whole enchilada goes pop. The Soviet Union was a monolithic evil empire that seemed destined to inherit the world eventually if it did not outright seize it by force. Then, suddenly it went pop.
We are told time and again that Greece is an insignificant 2% of the Eurozone economy. Yet still they bite and claw to keep it from going pop. Just 2% and they are terrified of what might happen if it goes pop. Italy, Spain or France go pop? Unthinkable.
So I would suggest that you keep your own personal affairs well-insulated from any contagious association with the fate of Greater China, or Greater Asia, or even of the Greater Planet.
Individuals can take a 5% hit and keep going. Yet it seems to be a mortal wound to collective modern societies, and I can't think of any place more collective and modern than the new China.
So stay safe and always remember to keep everybody warm and keep Riding The Storm Out.
https://youtu.be/717xSGLnLWc
Banks don't like taking a 5% loss, they will always bitch and whine and declare how the sky is falling until the government comes along and makes it all good on tax payers money.
Individuals lack the efficiency of the collective, but as you point out, this efficiency is far more fragile than the individual. As with agenda 21, the efficiencies of collective living can give financial benefit to the collective, yet when fire breaks out, the frailties of high density life become more apparent. We see this in our food chain as well, where we have abandoned genetic diversity to highly efficient hybridized crops that have substantially increased yields while also leaving the world extremely susceptible to single failures that can potentially wipe out the world's crops.
We have climbed high into the evolutionary tree and the fall could be deadly.
Doubt Canada wants anyone up there. It would be insect repellant I'd be afraid of running out of in the woods of Canada. Folks will be surprised what they can do when their life depends on it. When you don't grown it, kill and gut it you don't eat. You'll quick get a "Green Thumb" and become a good hunter or perish.
This is for real: http://www.booktopia.com.au/batavia-peter-fitzsimons/prod9781864711349.h...
That story is a microcosm of the whole of society. We are always in a battle for survival; sometimes it's just a little more obvious.
truth from mouth - this is what i always say to pink dreamers from outside of canada, in the case of shtf you must think hunter gatherer otherwise you are dead meat.
be prepared .. if this thing does fall apart ...
there is the possibility of bank accounts being frozen. no major withdrawals by YOU - from your own account!! that is NOT the same as "the banks taking your money". but you would lose free access to it.
just speculation. you decide.
I wouldn't call it speculation. It's a sure fire plan that's in place for the banks. Save them once, shame on the government. Save them twice, shame on the taxpayer.
MY bank, WF, recently ended Saturday banking and now today the online page button to transfer funds from one account to another no longer works. Getting a little spooky. Fortunately I don't have a lot of money in there.
- Norway Unemployment Rate Rises In May
- Norway's Jobless Rate Rises In June
- Sweden AMV Unemployment Rate Rises In June
- Dutch Long-Term Unemployment Rises
- French Unemployed Number Hits New Record!
- Italy Youth Unemployment Hits Record High 44.2%
- U.K. Jobless Claims Rise Unexpectedly In June
- Singapore Jobless Rate Rises More Than Expected In Q2
- Australian Jobless Rate Rises In June
All this attention on Greece..like if they cannot pay their debt bill..the whole world is going to fall like dominos..problem is Greece cannot pay their debt..and what is worse they do not have their own currency..they are stuck with the euro...if they had their own currency..it would become worthless and they would have to start over again...something like what happened in Zimbawae...and life went on...
The only thing that'll hold up any government that gets in during the October election is going to be lower interest rates.Manufacturing is going down shit creek without a paddle.The northern half of every province is toast because the mining sector has been wiped out.Cranes are everywhere in the bigger centres.It's only the housing scam that's left to hold her up now. Prime Minister Harper just announced an election pledge which is a $750 government refund on home improvements.Whoopee!Here's something the Canadian Government doesn't want its taxpayers to see because the latest multi billion dollar waste of money was in Afghanistan to pave all the roads for the heroin processing plants that the American Government now watches over with full cooperation:
http://www.debtclock.ca/
So, bullish road rollers and cranes..:)
But the Economic Action Plan is diverting money to CSIS. That's got to be good, right?
What Aussie not the lucky country anymore, Damn!I guess I better start re-training for a service economy job.
I thought the good times would never end.
I learned linux from " Ying Yang"
Inevitably one day Linux will be my next Laptop O/S once Win 8.1 no longer does its job.
Im thinking we need two laptops. One that cannot and never connects to the internet of Wifi or bluetooth. And the other we use for connect to net and so forth.
Presently I use VeraCrypt to store valuable or sensitive information with a 37 character password
.
I was born in Ontario and given the choice, would not move back! It's cold, I mean even by October! I tried to find the most temperate climate in Canada. and came up with the Kelowna valley in BC, which is still freakin cold!!
So I moved to Hawaii, the rain is consistent the temperture perfect, I just can't afford anything! However, I was able to stroll the Waikiki beach for 10 minutes before a fine lady from Brooklyn was plying me with drinks and playing slap and tickle a short time later!
Ontario is actually SOUTH of many US states.
Canadians are mostly snobs compared with Americans..not to mention their GST monstrosity,and those over-exposed Property Bros.nerds who try to sell themselves as sex symbols while peddling the mass-delusional Canadian Dream of buying an $800,000 fixer-upper row house in a sub-zero nowhereville.
Country deserves what it gets, eh?
Snobs? they really DO think that the USA is full of yokels, criminals and idiots
We aren't?
The Fed. raises rates. The credit markets barf.
It's a beautiiful day. That door looks like a wall?
Where's my passport?
I know of some island nations that will hardly even know anything ever happened. For instance the atoll of Ontong Java in PNG gets a ship visit MAYBE once every 6 months. I hit a reef there and if I hadn't gotten off myself I would have been there a long time with a society that doesn't even care about the outside world.
My plan is to form a gang of bandits and prey on the stackers. They will become my serfs. I will be king.
How are your long distance swimming skills?
Not to mention the wet suit, goggles and air to get down to the bottom of all those murky lakes where half the world's gold is after being lost in unfortunate boating accidents. ;-)
Dont forget the gold and diamond rings everyone is wearing.
Now is the time to buy gold https://www.eurgold.eu
A single mother with one child gets $600pw welfare here in Australia - Obviously this is far from sustainable - Downturn in commodities is the least of our problems - I'm buying a self - sufficent FARM and a HORSE - Grow food and hemp - make beer and wine - dig for GOLD - That's the plan !
Are you sure, that sounds to high?
I think I might go and have a few kids and the fact that I'm a male won't stand in my way.
Stuff working for a living.
why is everyone worried about the economy?
it's fake anyway....
We are afraid of waking up.
[Brazil]: "Despite declining growth, inflation continues to soar higher causing interest rates to rise as well."
When Brazilian businesses experience or anticipate inflation their response is to raise prices in anticipation of what it will cost to re-stock, not based upon what they paid for their existing stock. But they only reduce prices when their new stock or input materials reduce in price.
This has always seemed to me to be a vicious circle. How can inflation be reduced if businesses are raising prices in this way?
People stop buying. Inflation goes to zero.
Not necessarily.
The reason for the negative Swedish interest rates is that the politicians (who appoint the head of the central bank) want to depreciate the Swedish krona in order prevent a deteriorating balance of current payments and more unemployment due to the rapidly growing population. The official reason for the negative interest rates, i. e. the 2 % inflation target, is just a smokescreen. 2 % inflation today means a continuously depreciating krona. In the current economic environment the old 2 % figure corresponds to a figure in the 0 to 0.5 % bracket. And perhaps even less. And all economists know that.
If you increase the population rapidly but can´t gain extra market shares for Swedish trucks, wood and pulp abroad you get a less favourable balance of trade if you don´t depreciate the currency which makes imported goods like oranges and consumer electronics more expensive and therefore less popular among consumers (people can also choose less expensive cell phone and TV-set models when such goods generally get more expensive). Export industries and unemployment figures also generally benefit from a depreciating currency.
Those who will pay for this are people who hold little or no export related stock but lots of cash, in many cases senior citizens like my mother.
Furthermore, Sweden will probably have to borrow lots of money abroad in order provide all the new citizens with housing. We already got a huge housing bubble due to excessive demand for housing. But that will be hard to combine with a depreciating krona. A depreciating krona will make loans from abroad very expensive. But if they don´t build a lot very quickly the Swedish housing bubble is most likely going to get worse.
I hope by "stock" you mean goods in your basement.
No, I mean stock exchange stocks.
I know that stocks are expensive now. Even my old mother knows that. She sold most of her stocks when her husband (my father) died. But at least you get dividends and a value not affected by inflation. So widows and orphans only have bad choices. Negative interest rates makes it even worse.
Hejsan CTG_
You forgot to mention that the Swedish Crown/Krona/SvKr was drastically appreciating because of the FED QE & ECB QE and the beginning of the hot "Currency Wars".
This was killing the swedish industry-export manufacturers. The Swedish Big Business was cryin' & complaining about it.
So, about since the beginning of 2014, Riksbanken CB Cheif Ingves started our own mini-QE and - negative interest rates.
Ha de' bra nu, X- i Enköping
;) & :)
Sources:
http://www.bloomberg.com/quote/USDSEK:CUR
http://www.bloomberg.com/quote/EURSEK:CUR
http://www.xe.com/currencycharts/?from=XAU&to=SEK&view=5Y
XuscitizenSweden:
"Hejsan CTG_
You forgot to mention that the Swedish Crown/Krona/SvKr was drastically appreciating because of the FED QE & ECB QE and the beginning of the hot "Currency Wars". [- - -]
My comments:
Hej på dej själv, XuscitizenSweden.
But the Swedish central bank has done more than just compensate for the former appreciation of the Swedish krona. If they had just compensated for appreciation in the past, the EUR/SEK exchange rate should have been about 9.0. Take a look at the exchange rate ever since the introduction of the euro.
Can all you financial whizzes out there please explain this to me.
I admit to not understanding - sorry.
I am not really in to high finance.
Quote above
We’ve written before that governments all around the world have borrowed too much money and the weight of these debts are choking economic growth.
Now who had all this massive amount of money they could borrow?
Presumably it was from Banks.
But how do banks have such enormous sums of money?
Enough to finance the globe?
Where have they made it? How did they make it?
Have they got it because THEY printed it?
If they just printed it - is it money or just printed paper?
If its printed paper what gave them the right to use it as money and for their personal profit...
And if its just 'privately printed pieces of paper' - why should the people pay it back.
Its counterfeit - pretending to be money.
Where have I lost the plot?
Fractional reserve banking: New debt of ANY kind IS creation of new money.
Governments (countries, states/provinces, cities/communities) issuing new debt is creation of money.
CB lending money at ~0 % to TBTFs is creation of new money.
New auto and student loans is creation of new money. New morgage loans, credit card debts... etc
Fiat (paper AND digital) money is borrowed into existence. The sum of all debts cannot and wil not all be repaid, thus the saying "Inflate or die". Reads ultimate hyperinflation or deflationary bust. Either case is doom and gloom.
So why should we pay back money whose existence is basically bogus?.
Time to say - we only pay back real money - so sod off.
s long as the current debt/fiat money system is intact, it is what it is. I don't like it any more than you do, and yes, real money will be last man standing.
What real money? Gold -Silver, all paper money is counterfit!
What they're doing today doesn't even fall under fractional reserve definition.
Printing currency to cover bad debt is counterfeiting,,, plain and simple.
"And if its just 'privately printed pieces of paper' - why should the people pay it back.
Its counterfeit - pretending to be money."
Indeed it is counterfeit. It is the biggest ponzi scheme of them all, and it is protected by law. Meaning that if you do the same thing or any other person or persons, you are going to jail. As George Carlin once said it: "It's a big club, and you ain't in it."
So what you have is this vermin exploiting honest work of honest citizens to empower themselves. Over the past 100 years, since The Federal Reserve Act of 1913, honest governments and politicians around the world have been lured/tricked/threatened(or whatever you want to call it) into submission by these people. Those who stood against them and fought got eliminated. Today, most all governments are puppets to the bankers.
People believe they are free but they don't understand how the mind works. Our minds are so elastic that they can get used to anything. As your perception of the world diminishes so does your understanding of what is possible. As your understanding of what is possible contracts you can get used to living in a square box if need be and you wouldn't protest, as long as you get fed. For the people living like this they might say: "I have all I need. A place to stay and I get fed. What else is there?" While person looking from outside would see a prison of the worst sort. People in control understand this and they are effectively using this against the people of this planet. More and more people are falling prey to these patterns. That is why for some this was obvious long time ago. George Orwell for one. Give people bread and circus and you distract them from the most impervious crimes that are being perpatuated agains them.
Amen sister
https://miltonchurchill.wordpress.com/2015/08/16/how-in-the-hell-did-the-government-get-all-that-money/
I'm kind of proud of Iceland, they pretty much put two fingers up to much of the world and dug themselves out of a hole.
Iceland=less than a million people , the size of a city
Iceland = 323,002 people in 2013. Barely a city. San Francisco has 837,000.
Many years ago when Alan Greenspan first proposed using monetary policy to control economies, the critics said this was far too broad a brush.
After the dot.com crash Alan Greenspan loosened monetary policy to get the economy going again. The broad brush effect stoked a housing boom.
When he tightened interest rates, to cool down the economy, the broad brush effect burst the housing bubble. The teaser rate mortgages unfortunately introduced enough of a delay so that cause and effect were too far apart to see the consequences of interest rate rises as they were occurring.
The end result 2008.
With this total failure of monetary policy to control an economy and a clear demonstration of the broad brush effect behind us, everyone decided to use the same idea after 2008.
Interest rates are at rock bottom around the globe, with trillions of QE pumped into the global economy. The broad brush effect has blown bubbles everywhere.
There is no easy way out, the bubbles are inflated and they only ever burst, they never deflate slowly.
For those too young to remember the days before Greenspan.
Governments used to try and fine tune economies to deal with specific problems.
Though they often made a hash of it too, none of them ever came that close to bringing down the Western financial system.
It is the lesser of two evils.
Also, you can vote out elected representatives (Governments) when they get it wrong.
"Also, you can vote out elected representatives (Governments) when they get it wrong."
Please inform Americans.
"Also, you can vote out elected representatives (Governments) when they get it wrong."
If we had more than ONE party,yep your right on.Unfortunately WE no longer do.
It's the official failure of Keynsianism and crony capitalism. Who could have seen that unlimited monetary expansion would end?
We have been here before and know what happens:
1920s/2000s - high inequality, high banker pay, low regulation, low taxes for the wealthy, robber barons (CEOs), globalisation phase
1929/2008 - Wall Street crash
1930s/2010s - Global recession, currency wars, rising nationalism and extremism
1940s/? - Global war
Europe is a bit more advanced in the collapse due to the Euro, so we can see what is happening already:
Main stream politicians have too much invested in the current system and seek to maintain the status quo.
New parties are formed that are more extreme (Podemos, syriza, Golden dawn)
As people see Capitalists and finance as the problem they swing to the Left.
France and Greece have both swung to the hard Left.
The Left are often wealthy champagne socialists and have more invested in the current system than they care to admit and are afraid to make the radical decisions necessary.
The far right are the only people ready to play hardball.
Le Pen's far right in France are now doing well after the failure of the socialists.
Golden Dawn will do well after the failure of Syriza.
Looking back we can see it took Hitler and the Nazis to default on Germany's impossible debts back in 1933.
The future has played out before and is playing out again.
Hitler was a socialist. Check your history books or online. That's how it started.
He was a right wing socialist.
A militant socialist.
A national socialist who invented revenge porn on a massive scale, aimed at the non aryans.
And he decreed, that having raped them of body, we add insult to injury by robbing them of their art treasures and accumulated wealth.
It became a cult belief in Europe and even in Japan. When "fuck you, you piece of human turd" rhymes with "I'll take your gold tooth as well once you're fucked beyond comatose"...Truly blood curdling and toe tingling.
Genghis Khan, no socialist, total right wing, tribal supremacist, without any inhibitions of morality, would have agreed. As he always said : Its not enough to defeat your enemy its also necessry to kill him cruelly as human nature is only impressed by total humiliation before obliteration.
Socialists come in many brands; humanist and otherwise being two types. False nosed and machiavellian being the constant Achilles heel of this tradition. As a socialist once in power shows his true colours of despotism, when reality obliges him to shed his clothes of probity. Socialists either die honest before achieving power or die corrupted having been cuckolded by reality to the point of wanting to indulge in turncoat power plays.
In that they are just like their bloodthirsty "might is right" right wing bretheren; to whom the end has always justified the means as that is the bottom line : darwinian survivalism and damn all principles of justice.
Nothing like the smell of power to make a man believe Medusa's head is sooo beautiful.
And that's when Nemesis walks into his shadow.
If you know how Genghis Khan died you would know what Nemesis did to his awesomely profligate nuts ! He did populate China like no other human, before having Nemesis cure him of his jewels, in an excruciating descent into oblivion.
The Greeks got that right! And Hitler finished up like Genghis, his followers obliterated.
Tks. A nice piece Falak :-)
Isn't Bernie Sanders a socialist?
Maybe you ought to read up on this then consider that your current understanding of WW1 and WW2 may be completely wrong.
https://en.wikipedia.org/wiki/Balfour_Declaration
How does one say DEBT JUBILEE in FINANCIALESE?
Does nobody understand that this electronic money beanstalk run by the CBs on behalf of their Masters the TBTF cabal, who serve the interests of the 1% Oligarchy getting rich while the world governnments get poorer by the day, will only end in foggy bottom hell ?
Its never too late to call a reverse BW and remove all debts from government borrowing and start with a fresh slate where only private savings below a certain threshold per country and pensions etc are considered valid.
All else goes into a common pot to liquidate nation state debts first and we ring fence the banks and stop the casino finance and print new money under new prudential rules that are transparent and controllable by TAX PAyERS.
But who is gonna bell the cat of Oligarchy power and ruinous status quo ?
'Cos in the past its ALWAYS been WAR and war today is Dr Strangelove's "Heil Mein Fuhrer" legacy.
Looks like to avoid that TBtb are too impotent to stop the rot like a dying Ottoman dynasty living in the sublime slime of DC's power lobbies and CB make belief.
Re-monetization of gold ?
The DJ is a stupid idea.
What do we do with the senior citizens who saved up say a $5,000 a month pension and now will have zero? Wood chippers?
Will social security get refreshed or go back to zero? And do those dependents get tossed into the wood chippers?
The DJ just doesn’t work.
Now, if the DJ is masked under a great war. I’ll believe it. All the grandpas and grandmas will be dying, broke in a back room somewhere.
But Yet it amazes me that when you talk to most people especially the kids they think that everything can just go on and on like it is forever and ever.
Burning up important resources for nothing but plastic toys and oversized useless places like stadiums and super walmarts which use up even more important resources for no reason at all.
Everything will just go on and on and on and on and just get better and better and better as we consume more and more and more.
Just like magic, it will all just keep appearing, nice and clean, nice and big, nice and wonderful.
Now go back to sleep everyone. The old grey haired business men living in their mansions in beautiful places are counting on you to destroy everything around you.
https://youtu.be/qEuJj4uW93E
Yea, it's old white businessmen that have a life time of hard work and success that are the problem. /sarc
Fuck you.
What do you call "Success? I am successful and am not a grey haired businessman. Oh! You mean "Excess!" Sorry, I misunderstood.
We adapted Reaganomics. We’re good.
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So it is recommended that we buy dollars and put them under the mattress, is that it? How profound!
Te term printing moey is false. It is paper that the Banks use....
When the Crisis hits, Banks will call in debts and there will be NO CASH in circulation. People will need Cash to pay debts or salvage investments. They may sell assets to save themselves from Huge Losses.
It happened in the great Depression. Cash could become King. Hard assets will hold value for savers.
'there will be NO CASH in circulation'........................Big differance then and now, then, the dollar wass tied to the gold standard, now, they can drop it from the sky, ala "the Bernack".
No, buy physical gold and silver in tradable amounts under your control,not the paper shit.
Sweden? Sweden?! You mean a country with a massive street crime, rape, and murder problem has a declining economy? A country that pays people to play video games has a problem? A country that imports random 3rd world subhumans and pays them $4,000+ USD a month to do nothing but breed and commit crime has a problem?
LOL Sweden. Rape capital of the world. Sweden? Go visit Malmo or Stockholm and come back and tell me about Sweden.
.
Sweden is a largely uninhabited African nation in Northern Europe with a population of about 9 million. It has an extremely inhospitable climate and suffers through approximately 9 months of harsh winter weather each year. The land is so depressing that birthrates among native Swedes are so low that the overall population of Swedes throughout the world is declining drastically. One cannot walk down the street without being mugged so the Swedish government is trying to eliminate paper currency so their refugee population will have less incentive to beat up the old defenseless Swedes every day as they try to walk to the store to buy bread.
The Swedish currency is extremely overvalued and even a small bottle of water will cost you the equivalent of $5. An overnight stay in a jail cell sized hotel room will cost you $140. Overall tax burden runs somewhere around 66% of a person's gross income. But "refugees" that do nothing are given free housing and $4,000 USD on top of that to do nothing. Sweden is a failure of Leftism and socialsm that all the world can laugh at and learn from at the same time.
Thanks Sweden.
while I agree on may points you made, you seem to fail to recognize simple, obvious truths:
Sweden was and remains a target of Banksters
there system was fairly self sustainable, BUT had just too much interest in you know, actual people. the Ayn Rand "titans" couldn't have that. they NEED that money. the feudal lords 2.0, the Banksters, MUST have every last penny.
so the import of 3rd world people, etc, and all the shit you describe.. to escalate the crush and hate, and eventual privatization of everything, the banksters prefer to buy up everything for pennies on the dollar.
seems you need to do a little more homework, man.
but thanks for playing
P < P + I
"But "refugees" that do nothing are given free housing and $4,000 USD on top of that to do nothing."
Seems pretty much the game plan in the usa.
ThickWilly
"But "refugees" that do nothing are given free housing and $4,000 USD on top of that to do nothing."
And here I thought the US was the only one's that FRACKEN stuipd,seems we have company, OH JOY!!.
And WE INVITE MOAR!!!!!!!!!!!!!,actually INVITE THEM!!!!!!!!!!!.
While they WRING their little sweaty palms in D.C.,about SS/MC, and MAD.Hmmmmmm,WEll,you SOB's IF you stopped stealing more of the IOU's(Oblamo),$700 B cut for Obamacare.
And handing it out to those that never PAID a dime IN, nor are the even CITIZENS,it might not be the nightmare it is.
And KEEP destroying what few jobs HERE are left to support it.
Wonder why it's in the shape it is in?.Thank Al GORE and the whores that opened the General Fund to the greedy bstds,for bogus deal for their states to stay in office.
umm.. Governments have borrowed too much? LOLWUT???
ummm.. NO. Banksters have transferred THEIR debt to Captured Governments.
#BankstersAreTerrorists #AusterityIsCodeForLooting
WTF
P < P + I
All of this is nothing more than a worldwide governmental parasitic recession. Get rid of the parasite and the world economies will gladly return to normal as will health and prosperity for billions, not just the .1%
It's not beyond wallstreet to declare the cirsis isn't spreading. Mums the word all the way to zero.
You got it, last of the Mid..
All these people running away from where they live now are too chickenshit to face the real problem. Sure if you live in area where the climate is life threatening 8 months out of the year, it may be wise to move, but at some point we will have to fight the real enemy that is threatening our peaceful existence amongst others and our environment. We here on ZH know who that enemy is we just lack the will to do it. Yes, we will keep finding excuses and dream of other options while the enemy keeps turning up the heat. It feels like it is getting pretty hot in this pot, and there is really no place to run to anymore. I'm just like you all... Oh well, so sad.
Yup, the frog in the pot thing, but I am the kind of frog that jumps out when I feel the heat, protect yourself and buy gold and silver in the physical.
The hard truth is this, you do anything that disrupts the flow of money or people, you will be imprisoned or killed. That is what people think about when their conscience niggles at their brain. Things must be unbearable before the those who remain take action. Will it be coordinated or gangs under some warlord? Who knows, what about the Army? What would happen with their weapons and training? Get's me to thinking it's time to fire up the old Detroit Diesels and ... Adios'
Or should I stay here and fight for our nation in liberty???
Is there a GOOD choice, a WISE one?
I know, I know, we're not your therapist!
Hah!
Shelter in place
http://www.jsmineset.com/wp-content/uploads/2015/08/clip_image0015.jpg
global debt chart.. look out U.S.!
http://www.jsmineset.com/wp-content/uploads/2015/08/clip_image0015.jpg
global debt chart.. look out U.S.!
Collapse of the western empire (Western governments used as a exploitative tool for “Just Us”) is well underway. We are just participating in real time instead of watching a two hour movie about how we should have seen it coming a few decades from now. LOL.
No problem for those who are prepared.
Those who are able to adapt to change while focusing their intellect, knowledge and skills on real world problems will flourish.
Those who are unable will perish.
Who must do the hard things? Those who can.
"Yet, what the government and the central bank doesn’t understand is that these actions will actually make the problem worse."
Anyone with high school math can figure out that Greece will never repay its debts. Anyone who's taken Econ 1A knows that austerity destroys economic growth. Anyone who's read newspaper reports about the Japanese economy over any length of time knows that, absent banking reform, deflation cannot be reversed with money-printing. If community college students and casual newspaper readers know this, then surely the Ivy-League PhD smart guys who run the world ought to know this too?
Of course, I've known some Harvard guys and they were shockingly dim. I anxiously await the research reports from Harvard, 10 years after this crisis resolves itself, saying exactly what every Econ 1A student is being taught right now.
Everyone wants to deport the Mexicans? They at least work. I want to deport the Ivy Leaguers.
Living in Toronto , bought my house 5 years ago for $570 000 now it worse $950000 , almost double . Should I just sell move to rent and buy GLD ETF ????
1.) Yes, sell. Immediately, if not sooner.
2.) You must be a rookie. An ETF leaves you wide open to counterparty risk AND taxation. Physical, physical, physical.
Tick tock, tick tock...
Yeah, I'd sell too. You know who's spending the money buying these over priced house? The Chinese.
If China continues going the route taken last week, expect the Chinese investing market to dry up. Then the prices will come down.
One follow-up comment...
If you like your house and want to stay, you could consider selling to an investor. Can structure sale as a sale-leaseback of sorts, with a stipulation that you have the option to lease the house back from the buyer for a certain number of years at a set price.
You'd limit potential buyers obviously, but there may still be some investors out there who are late to the party.
We like slide 6 the best making the point where everyone seemed to have missed where Apple has parked the money and why due to that we claim the share can not be worth more than $100 but of course the fools in the market besides those with a bit of brain continue going about how wonderful sales and income of AAPL are and why the stock price is completely undervalued - charming idiots
There are only two things that keeps apreciating (diverging) from the rest of the economy in Sweden, fast food and real estate.
For all of you who bought into the bullshit that the Canadian banking system was sound during the 2008 crisis
Study Reveals Secret Bailouts to Canadian Banks
Remember "You can't handle the truth"
We are all treated like the imbeciles that most of the population is!
Remember we all need to buy our way out of this shit, so start spending now
truth spoken
If the economy of the World is so bad why are nations not acting to increase growth? Why are there=sanctions against certain national economies hurting both the sanctionor and the sanctionee? Why create economic problems when you should be solving them? If the EU economy is contracting then bring Russia back into the fold. If France is suffering then complete the Mistral sale and give a boost to its ship building industry. The US in particlar is playing with fire when it causes economic dislocation around the World. That is a sure fire way to ensure that your own economy suffers a backlash!
Regular guy in Toronto doesn’t benefit from high $$$$$ home values its all paper gain and makes our property taxes much higher . My house value $900000 and $500000 is my money , mortgage $1300 . Thinking to sell and lock inprofit but
rent is a problem in Toronto . 1800 ft townhome 2200 -2500 $$ and you dont want to put family of 4 in run down apartment for $1400. I would be a single guy no problem to move and secure $$$$ but with family its different story.
So I stuck with dilemma here. Any thoughts?
That extra $400K profit will pay for 20 years of rent. Or wait 12-18 months when your place is only worth $500K, sell it and pay rent out of your own savings.