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A Major Bank Just Made Global Financial "Meltdown" Its Base Case: "The Worst The World Has Ever Seen"

Tyler Durden's picture




 

When it comes to the epic bubble in China's economy, it really boils down to one - or rather two - things: a vast debt build up (by now everybody should be familiar with McKinsey's chart showing China's consolidated debt buildup) leading to a just as vast build up of excess capacity, also known as capital stock accumulation. And/or vice versa.

It is how China resolves this pernicious, and self-reinforcing feedback loop, that is a far greater threat to the global economy than even what happens to China's bad debt (China NPLs are currently realistically at a 10-20% level of total financial assets) or whether China successfully devalues its currency without experiencing runaway capital flight and a currency crisis.

One bank that is now less than optimistic that China can escape a total economic meltdown is the Daiwa Institute of Research, a think tank owned by Daiwa Securities Group, the second largest brokerage in Japan after Nomura.

Actually, scratch that: Daiwa is downright apocalyptic.

In a report released on Friday titled "What Will Happen if China's Economic Bubble Bursts", Daiwa - among other things - looks at this pernicious relationship between debt (and thus "growth") and China's capital stock.  This is what it says:

The sense of surplus in China’s supply capacity has been indicated previously. This produces the risk of a large-scale capital stock adjustment occurring in the future.

 

Chart 6 shows long-term change in China’s capital coefficient (= real capital stock / real GDP). This chart indicates that China’s policies for handling the aftermath of the financial crisis of 2008 led to the carrying out of large-scale capital investment, and we see that in recent years, the capital coefficient has been on the rise. Recently, the coefficient has moved further upwards on the chart, diverging markedly from the trend of the past twenty years. It appears that the sense of overcapacity is increasing.

 

Using the rate of divergence from past trends in the capital coefficient, we can calculate the amount of surplus in real capital stock. This shows us that as of the year 2013, China held a surplus of 19.4 trillion yuan in capital stock (about 12% of real capital stock).

 

Since China is a socialist market economy, they could delay having to deal directly with the problem of capital stock surplus for 1-2 years through fiscal and financial policy. However, there is serious risk of a large-scale capital stock adjustment occurring in the mid to long-term (around 3-5 years).

 


Daiwa then attempts to calculate what the magnitude of the collapse of China's economic bubble would be. Its conclusions:

Even in an optimum scenario China’s economic growth rate would fall to around zero

We take a quantitative look at the potential magnitude of the collapse of China’s economic bubble to ensure that we can get a good grasp of the future risk scenario. If a surplus capital stock adjustment were to actually occur, what is the risk for China and how far would its economy fall?

 

Chart 7 shows a factor analysis of China’s potential growth rate. The data here suggests that (1) China’s economy has gradually matured in recent years, and this has slowed progress in technological advancement, (2) Despite this fact, it has continued to depend on the accumulation of capital mainly from public spending to maintain a high economic growth rate, and (3) As a result, this has done more harm than good to technological advancement. Between the years 2012-15 China’s economy declined, yet still was able to maintain a high growth rate of over 7%. However, 5%pt of the growth rate was due to the increase in capital stock. Labor input and total factor productivity contributed only 2%pt.

 

The major decline in the rate of contribution from total factor productivity is especially noteworthy, as it had maintained an annualized rate of 5% for thirty years straight since the introduction of the reform and opening-up policy and on through the era of rapid globalization.

 

According to a DIR simulation, if a capital stock adjustment were to occur under such circumstances, China’s potential growth rate would fall to around 4% at best. This adjustment process is shown in the bottom left Chart 7. As far as can be determined from the capital stock circulation diagram, capital spending at the level seen in 2014 should not have been allowable without an expected growth rate of over 10%. Hence if adjustment progresses to the point where the potential growth rate is only 4%, the situation for capital spending will continue to be harsh. If the adjustment process lasts from the year 2016 to 2020, capital spending will likely continue in negative numbers on a y/y basis. If this scenario becomes a reality, the real economic growth rate will hover at around zero as is shown in the  lower right portion of Chart 7.

 

All of this is well-known by most (or at least those who are willing to accept reality at face value instead of goalseeking it away with Keynesian theories that serve to merely perpetuate fallacious groupthink). It does, however, underscore the severity of China's economic situation and the follow-through linkages to the rest of the world.

But where the Daiwa stands out from every other report we have read on this topic, and where it truly goes where no other research has dared to go before, is quantifying the probability of China's worst case scenario. Here is what it says:

Meltdown scenario: World economy sent into a tailspin

We have already stressed that the scenario discussed in the previous section is the optimum or bestcase scenario. What is just as likely or possibly more likely to occur is the following. If the expected growth rate declines and the progress of the capital stock adjustment causes the bad debt problem to become even more serious, the economy could spiral out of control, lapsing further into a meltdown situation.

The stunning punchline:

"Of all the possible risk scenarios the meltdown scenario is, realistically speaking, the most likely to occur. It is actually a more realistic outcome than the capital stock adjustment scenario.  The point at which the capital stock adjustment is expected to hit bottom is at a much lower point than in the previously discussed capital stock adjustment scenario (see Chart 8). As shown in the bottom right portion of this chart, the actual economic growth rate will continue to register considerably negative performance. If China’s economy, the second largest in the world, twice the size of Japan’s, were to lapse into a meltdown situation such as this one, the effect would more than likely send the world economy into a tailspin. Its impact could be the worst the world has ever seen."

 

Translated: Daiwa just made a Chinese "meltdown" and global economic "tailspin" its "realistically speaking, the most likely", base case scenario.

And here we were thinking our calls (since 2011) that China's debt and excess capacity bubble would negatively impact global growth, are audacious.

The question, now that Daiwa has broken the seal on Chinese and global doomsday scenarios, is whether and how soon other banks will follow in Daiwa's path, and predict an armageddon scenario which sooner or later, becomes a self-fulfilling prophecy even without the help of China's increasingly clueless micromanagers.

Source: Daiwa

 

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Sat, 09/12/2015 - 19:19 | 6540536 autofixer
autofixer's picture

Yes but what does this mean to me? <sarc>   

Sat, 09/12/2015 - 19:21 | 6540542 greenskeeper carl
greenskeeper carl's picture

Yet another instance of a person or entity that is fucking causing this meltdown with their fraud and theft suddenly warning about it. Just like that brit douche bag, just like greenspan, and now this. Just trying to protect themselves when the disaster they have wrought comes unglued, so they can say something along the lines of "it wasn't me, I was trying to warn you this would happen, remember?"

Sat, 09/12/2015 - 19:23 | 6540551 FinalEvent
FinalEvent's picture

Not only warn, but blame it on china as well.

Sat, 09/12/2015 - 19:27 | 6540561 chunga
chunga's picture

I'm curious how the squid will profit by making it all worse.

Sat, 09/12/2015 - 19:32 | 6540575 A Lunatic
A Lunatic's picture

I guess the same way they have always profited from death and hell and misery........

Sat, 09/12/2015 - 19:36 | 6540581 THX 1178
THX 1178's picture

This is very obviously preemptive damage control. This bank knows the crash is coming and is announcing that it is china's fault before they get dragged out into the street and killed. Very very smart.

Sat, 09/12/2015 - 20:02 | 6540655 toady
toady's picture

Bummer 

Sat, 09/12/2015 - 20:54 | 6540775 SoilMyselfRotten
SoilMyselfRotten's picture

I have the feeling this author may end up 'meditating' for awhile

Sat, 09/12/2015 - 21:09 | 6540816 Save_America1st
Save_America1st's picture

don't worry, folks...WWIII will take care of all the banksters messes.  That's how it's been done for centuries. 

Sat, 09/12/2015 - 23:14 | 6541110 Okienomics
Okienomics's picture

No shit.  If China is arresting anyone selling equities, what the hell are they going to do about a JAPANESE BANK proclaiming that China is about implode and to drag the world into a financial abyss?  When finance is the battlefield what this bank just did is a declaration of war.  

Sat, 09/12/2015 - 23:33 | 6541142 ZerOhead
ZerOhead's picture

Or just more endless TPTB kabuki.

It's a tough call sometimes....

Sun, 09/13/2015 - 01:39 | 6541349 BaBaBouy
BaBaBouy's picture

The Apparent Incesent Manipulation Of GOLD VS Paper Fiats, By The Keynesians Put Us In This Situation...
It cannot continue forever, when the SCAM breaks the Economic shit hits the fan Globally...

Sun, 09/13/2015 - 02:13 | 6541382 CheapBastard
CheapBastard's picture

The meltdown is coming and well known to the elites ... thus we have moar war intensity in the MENA areas. The West classically uses war as a tool to fight depressions. Now is no exception.

 

Of course the politicans and business leaders want not only war but massive flooding of refugees so they can justify stealing taxpayer money to build houses for them [and line their pockets at the same time] ... using "humantitarian" purposes as the ruse.

Sun, 09/13/2015 - 07:07 | 6541615 VinceFostersGhost
VinceFostersGhost's picture

 

 

The dolla remains king.

 

Sure...your paper will save you.

Sun, 09/13/2015 - 08:34 | 6541712 greenskeeper carl
greenskeeper carl's picture

dont bother with him. he is just a blog pimp, he doesnt comment for any purpose other than to try to get you to go to his site. he has 4 or 5 screen names. don't click on any of his links. It is literally the worst blog I have ever seen.

Sun, 09/13/2015 - 10:21 | 6541872 robertocarlos
robertocarlos's picture

I like reading his blog. I'm not a Christian but I believe in God.

Sun, 09/13/2015 - 18:34 | 6542011 gswifty
gswifty's picture

Interdasting times.

Sat, 09/12/2015 - 23:32 | 6541144 jeff montanye
jeff montanye's picture

the report cited early above, by mckinsey, is quite interesting; it can in its entirety here  http://www.mckinsey.com/insights/economic_studies/debt_and_not_much_dele...

to me, there are some internal inconsistencies: e.g. sometimes financial debt is included in the ratios, sometimes not.  in any case there are many more-leveraged countries than china, the u.s, and south korea: japan and much of europe for instance.

Sun, 09/13/2015 - 02:24 | 6541390 CheapBastard
CheapBastard's picture

Good read. Lax lending standards are rampant again and I am not sure they ever tightened much, esp in places like the usa where lenders know they will get bailed out. it also sounds as if we are going to have brutal deflation before any serious inflation due to austerity, defaults, etc.

Sun, 09/13/2015 - 07:50 | 6541668 Arnold
Arnold's picture

Lax lendig is social policy in the US.

Sat, 09/12/2015 - 20:05 | 6540662 ThroxxOfVron
ThroxxOfVron's picture

"This bank knows the crash is coming and is announcing that it is china's fault before they get dragged out into the street and killed. Very very smart. "

 

China's fault, huh?  All by themselves?  

Somehow I think that the globalists and banksters that made billions if not trillions on this misadventure might be as much to blame as the Party Poobahs that welcomed the chance to farm the peasants out and pave the whole country over in 30 short years...

I say we drag them ALL, Party/Politcal hacks, Globalist Feudalist, Banksters, THE LOT: out into the street anyway.

As the Cultural Revolution proved all too well: 'cleaning the slate' is 'morally acceptable' to 'civilization' in both the East and the West.

Sat, 09/12/2015 - 20:20 | 6540700 THX 1178
THX 1178's picture

I'm not saying its chinas fault. Daiwa bank is.

Sat, 09/12/2015 - 20:29 | 6540716 knukles
knukles's picture

SO FINALLY, IT'S NOT ALL BUSH'S FAULT?

Sat, 09/12/2015 - 20:37 | 6540735 bigdumbnugly
bigdumbnugly's picture

not sure.   

is he in china at the moment possiby?

Sat, 09/12/2015 - 22:22 | 6541001 toady
toady's picture

He did go to those Chinese Olympics back in the day...

Sat, 09/12/2015 - 23:07 | 6541090 Pool Shark
Pool Shark's picture

 

 

I blame Nixon.

"Only Nixon could go to China." - Vulcan proverb

 

[Plus, he took us off the Gold Standard and ignited the final stage of the debt liftoff...]

 

Sat, 09/12/2015 - 23:10 | 6541101 Usurious
Usurious's picture

me thinks it was the International banksters who closed the gold window.....the great society and the Vietnam war were banksters constructs designed to delink paper from gold..........

Sun, 09/13/2015 - 01:00 | 6541298 Lore
Lore's picture

So finally it's not all Putin's fault?  You know, Putin and his "aggression?"

Sun, 09/13/2015 - 08:43 | 6541722 Pure Evil
Pure Evil's picture

Does it really matter who's fault it is?

What really matters is who will be taking it up the ass as a result of the global collapse.

And, it certainly won't be the global elites.

Sun, 09/13/2015 - 12:09 | 6542211 Jumbotron
Jumbotron's picture

The root blame is humanity itself.  For thousands of years we have strived to be like gods.  To control everything in our lives; our environment, our lands, our economies.....quite simply our fates and futures.

From the first bartering systems to gain things we did not have naturally and to sell those things the other parties did not have either, to the nation states, to the nations, to international agreements, and when all that failed.....war and destruction and plunder.

All....to control our individual and national fate and future.

What's to blame ?   Our desire for our own apotheosis.  Our desire to be gods.

Sun, 09/13/2015 - 13:31 | 6542523 Socratic Dog
Socratic Dog's picture

Desire to be gods?  Not sure I ever wanted to be a god.  But I do like to have a roof over my head, and a few meals stored up in the larder.  I think the truth is much more mundane.  Humans can look ahead, and act accordingly.

Sat, 09/12/2015 - 21:06 | 6540803 jcdenton
jcdenton's picture

If we are talkng about "Sr."  Well, actually it is ..

http://www.veteranstoday.com/2015/05/04/neo-so-much-more-than-nukes/

http://wantarevelations.com/2014/01/wanta-plan-macro-financial-economic-...

 

NAZI CONTINUUM CHIEFS: CANARIS, KISSINGER, BUSH SR.

 

Admiral Canaris, a.k.a. Samuel Randall Pittmann, directed DVD, Dachau, until he fell ill in 1976, when his place was taken on a temporary basis by that alleged triple or quadruple agent Dr Henry (‘call me Henny’) Kissinger, whose Soviet codename is BOR. He kept the seat warm for George H. W. Bush Sr., who allegedly has dual US and German nationality, and whose real name is believed, on the basis of research corroborated by reliable sources, to be Herr Georg H. Scherff Jr. This man – usually referred to simply as ‘Sr.’ – allegedly controls Deutsche Verteidigungs Dienst, Dachau, to this day.

 

Sun, 09/13/2015 - 04:24 | 6541488 conscious being
conscious being's picture

Cheney and Rumsfeld were congressional pages? aids? for Congressman Gerald Ford as he did his part on the Warren Commission, investigating the JFK assassination.

Sat, 09/12/2015 - 22:02 | 6540946 Fukushima Fricassee
Fukushima Fricassee's picture

The only one that really repeated that is Obama and similar fools to stupid to realize men should not suck multiple cocks on the golf course.

Sun, 09/13/2015 - 04:43 | 6541506 All Risk No Reward
All Risk No Reward's picture

All the major problems are the Debt-Money Monopolists' fault.

Bush was/is a French Revolution inspired lacky. Stop blaming the curtains, people, and start blaming Oz!

Sat, 09/12/2015 - 22:12 | 6540971 Chris Dakota
Chris Dakota's picture

Well they failed at disarming us.

Oh well, sucks to be dem......lol and haha

Sun, 09/13/2015 - 01:35 | 6541346 Rodders75
Rodders75's picture

Actually Daiwa's China economist, a decent and honourable man with the guts to say what he thinks, has been talking this for several years, and is known to clients as "Daiwa's doctor doom". I'm surprised ZH hasn't picked up on his output before. 

Sun, 09/13/2015 - 11:40 | 6542107 Groundhog Day
Groundhog Day's picture

the only solution for the banksters (and elites) is to cause a major economic meltdown, where rich (small business owners, doctors, lawyers) and poor people are starving to death for a long time.  This way they won't really care about the trillions lost but will only be concerned about thier next meal.  same as it ever was throughout history.  Then the elite can come in and start the game all over again with new rules and clean hands

Sat, 09/12/2015 - 19:32 | 6540576 yogibear
yogibear's picture

Being on the right side of the trade. Since Goldman knows first hand which way the Fed is blowing it knows how to set itself up.

William Dudley is a former Goldman boy. Goldman will be the first to know.

Sat, 09/12/2015 - 19:43 | 6540598 willwork4food
willwork4food's picture

The squid always profits, is everywhere, in everything and is the reason for living.

(HAAAAHAAAEEH - evil laugh)

Sat, 09/12/2015 - 19:52 | 6540626 Debt-Is-Not-Money
Debt-Is-Not-Money's picture

You would even hint that Goldman (or even others) would trade on insider information?

 

Sat, 09/12/2015 - 22:43 | 6541051 MontgomeryScott
MontgomeryScott's picture

The squid has many tentacles.

 

https://en.wikipedia.org/wiki/In-Q-Tel

http://www.npr.org/sections/alltechconsidered/2012/07/16/156839153/in-q-...

http://www.novell.com/news/press/2002/6/novell-to-acquire-silverstream-s...

What gets me the most about this whole issue is the NYC firemen who were 'on the scene', describing the molten metal running down the 'channel rails' under WTC6 (I think this was the U.S. Customs Building, which had an underground vault that was supposd to have a shitload of Gold in it, but was found in pristine condition by a FEMA-hired photographer; the door open, and the vault undamaged (AND EMPTY). OH, FUCK!

They called it 'molten metal', and also compared it to 'liquid lava'.

Silverstein got a 'damage award' of 4.55 BILLION DOLLARS for his participation (after litigation). He's still awaiting the monetary 'reward' after suing AA and UAL for 'negligence' (the 'wheels of justice' grind slowly, and ALL THAT).

Jane Standley, BBC 'presenter' hasn't been heard from as of late (after announcing the collapse of WTC7, 28 minutes before it actually was demolished). She's probably still recovering from the boob job surgery (flat-chested sellout bitches ALWAYS have 'breast enhancements').

Timmah ('Turbo-Tax') Geithner, former Goldman employee, is still blogging about the shit (after his stint working for The World Bank during 9/11). Bernard Kerick, after his stint, got rich being an 'advisor' during the second Iraq Invasion under L. Paul Bremer (but he got sent to prison because of other things, and is now known as 'that sweet and sexy bald-headed white bitch'. 'America's Mayor', Rudolpho [daddy's mafia boi] Guliani was saddened by this, but still manages to cope despite his deep personal loss of the man who used to fuck his pussy-ass while he dressed up in female clothing).

 

Goldman Sachs would NEVER, I repeat, NEVER do anything 'ILLEGAL'. If the 'LAW' needs to be 'CHANGED' regarding the ALLEGED crimes, they ALWAYS have LAWYERS 'standing by'.

IF an 'insider' gives 'information' (which allegedly MAY or MAY NOT be true) to an 'OUTSIDER' (who doesn't profit DIRECTLY); and this 'OUTSIDER' tells someone ELSE (who happens to be within the TRADING SPHERE'), and this 'SOMEONE ELSE' (an 'UNKNOWN THIRD PARTY') just HAPPENS to 'DECIDE' to 'ACT' on this 'ALLEGED INFORMATION' (that MIGHT or MIGHT NOT benefit the original 'INSIDER'), you see; THIS CANNOT BE CONNECTED (DIRECTLY) with 'CRIMINAL ACTIVITY'.

D'ya KEN, laddie?

Sun, 09/13/2015 - 04:56 | 6541516 All Risk No Reward
All Risk No Reward's picture

The top of the North Tower never hit the lower section of the building - and this lack of observable deceleration indicative of a hit is indisputable fact.

AitT - Sir Isaac Newton Weighs in on the World Trade Center North Tower Collapse Official Narrative
http://www.weaponsofmassdebt.com/index.php/blog/aitt-sir-isaac-newton-we...

Now, that doesn't mean most people won't cower and IGNORE this fact, because they will do exactly that - like a crimestopped Winston Smith who didn't need the torturing.

"The first and simplest stage in the discipline, which can be taught even to young children, is called, in Newspeak, CRIMESTOP. CRIMESTOP means the faculty of stopping short, as though by instinct, at the threshold of any dangerous thought. It includes the power of not grasping analogies, of failing to perceive logical errors, of misunderstanding the simplest arguments if they are inimical to Ingsoc, and of being bored or repelled by any train of thought which is capable of leading in a heretical direction. CRIMESTOP, in short, means protective stupidity... orthodoxy in the full sense demands a control over one's own mental processes as complete as that of a contortionist over his body."
~George Orwell, 1984

Crimestop is the NORM in society today.

But what these people can't do is ADDRESS THE ACTUAL EVIDENCE!

Mon, 09/14/2015 - 02:28 | 6545027 All Risk No Reward
All Risk No Reward's picture

Downvote - address the evidence! It is laid out in 2+2=4 format... so use logic to show us that 2+2=5, Winston Smith style!

Sat, 09/12/2015 - 20:23 | 6540703 August
August's picture

Code Talkers.  They don't even have to break the law.

Of course, not overtly breaking the law helps keep the muppets sound asleep.

Sat, 09/12/2015 - 20:30 | 6540718 e_goldstein
e_goldstein's picture

 Since Goldman knows first hand which way the Fed is blowing it knows how to set itself up.

 Yes, and it is usually on the opposite side of the trade of what it recommends to its clients.

 

Sat, 09/12/2015 - 20:40 | 6540743 delacroix
delacroix's picture

once a squid, always a squid

Sat, 09/12/2015 - 23:05 | 6541089 MontgomeryScott
MontgomeryScott's picture

Comparing Teuthida Cephalopods to the "Corporation" of 'Goldman Sachs' is an insult to ALL oceanic life forms. I DEMAND a RETRACTION of your statement, sir!

Awaiting your reply.

Your servant,

Captain Nemo

(i suppose the NEXT thing you'll do is accuse Octopi of using up all the ink that the FEDRES needs in order to print it's way back to 'world dominance')

 

<S> tag: ON

Sat, 09/12/2015 - 23:13 | 6541109 TeethVillage88s
TeethVillage88s's picture

Fish On! Fish On!

Sun, 09/13/2015 - 00:39 | 6541271 MontgomeryScott
MontgomeryScott's picture

I find that by pre-soaking my fishing lures with WD-40 (TM), my fishing boat can weather 'the perfect storm'.

(ACTUALLY, I use and recommend a product called 'Energy Release'. 'E.R. Penetrating Lube' gets those reels spinning FASTER, and lessens the problems with 'jamming' as they run out. Of course, I would never recommend a product that keeps gun bores really fucking clean (because that would be, well, 'anti-fish', or something).

THAT was a good movie ('The Perfect Storm'), but I believe the 'meteorologist' character didn't get enough screen time. The 'producers' instead gave it to some fugly and cuntiful skank 'beatches' (like the ones they are married to).

Sun, 09/13/2015 - 13:18 | 6542468 TeethVillage88s
TeethVillage88s's picture

I thought about getting a boat a few years back. I love eating fish and seafood. I hear some fish glow now or have two heads or have Petrol in their stomach fat.

But actually I still think about getting a boat.

I think last time I saw some in Thailand at a low price. Not sure I can afford to use gasoline or diesel, but also not sure about wind power.

One boat was a day tour boat, so maybe there is a money flow to keep the tanks full.

I read the book Perfect Storm and really enjoyed it.

I'd like to learn more about ships and living on them.

Problem with the Sea is the salt and maintenance. But the poor people that live and work on the sea must have some tricks. And you have to know where the bandits and pirates are to avoid them.

Sat, 09/12/2015 - 23:33 | 6541145 TeethVillage88s
TeethVillage88s's picture

A Goldman Boy!! How can the EU, Russia, China, and vassal states like the PIIGS not fight back?

- Well there were a few and still are a few rebels, but you have to search your soul about supporting their ideas:

1) PIIGS
2) Venezuela
3) Argentina
4) Brazil
5) Russia
6) China
7) India
8) South Africa
9) Indonesia
10) Cuba
(BRIICS)

Who gets a pass on Global Principals and their participation in Global Events:

1) Belgium
2) Luxembourg
3) Nederland
4) United Kingdom (and Vassal States)
5) France
6) Germany
7) Switzerland

8) Asian Tigers (Singapore, Hong Kong, Indonesia, Malaysia, Thailand, Vietnam, Burma)

9) Australia, New Zealand, Canada

Are there other Alternative Societies or Constructs?

A) Off Shore Structures in the Sea
B) Vessels that declare sovereignty
C) Regions or Places declared communes or under the command of a Captain of the Sea
D) Islands or Arctic Areas with no permanent settlements

**If the USA reclaims it's US Constitution and forces the 3 Branches of Federal Government to comply then the USA could be born again

Sun, 09/13/2015 - 00:51 | 6541289 MontgomeryScott
MontgomeryScott's picture

@TV88:

 

"B) Vessels that declare sovereignty"

When you see 'The Southern Cross' For the first time, you understand why you (we) came this way.

https://www.youtube.com/watch?v=Bw9gLjEGJrw

The USA is done. The 'Constitution' is all but DEAD, now. It's a nice thought, though.

Sun, 09/13/2015 - 06:41 | 6541586 Slomotrainwreck
Slomotrainwreck's picture

Hint: Free markets and a laissez-faire society.

 

Government is a coercive monopoly run by psychopaths. As long as we are not able to live productive lives to our own choosing and keep the economic fruits of our labor, we are slaves. 

Sun, 09/13/2015 - 13:06 | 6542430 TeethVillage88s
TeethVillage88s's picture

That's Real Music.

Think I still have a cassette of Daylight Again.

Sun, 09/13/2015 - 00:20 | 6541234 de Cosmos
de Cosmos's picture

Doing God's work has its advantages.

Sun, 09/13/2015 - 04:47 | 6541509 All Risk No Reward
All Risk No Reward's picture

Most people worship money (your god is whom you OBEY!). Goldman produces money, so in a sense they are god to most people. They've thought this through while the benighted don't think beyond trivialities.

Sat, 09/12/2015 - 20:28 | 6540710 tumblemore
tumblemore's picture

sidestep the crash and offload all the losses onto the pension funds, then buy up assets at firesale prices when everyone else is drowning - standard banksterism

 

edit: in the end banksterism is all about owning *everything*

Sat, 09/12/2015 - 20:56 | 6540778 TeethVillage88s
TeethVillage88s's picture

Well when the BoE went bust, the Rothschild moved and gained control.

And when Wellington won, Rothschild bought up everything.

I bet there are real winners from the US 2008 Collapse = yes it is the TBTF who are 33% bigger today.

FED gets to charge fees and interest.

Plus FED is sitting on assets in it's expanded balance sheet if they are houses, even trashed houses could generate some kind of cash and they can write off the loses.

Sun, 09/13/2015 - 04:30 | 6541497 conscious being
conscious being's picture

9/11 airline puts.

Sun, 09/13/2015 - 10:14 | 6541861 JRobby
JRobby's picture

"9/11 airline puts"

Thanks, that pretty much says it all

Sun, 09/13/2015 - 13:56 | 6542623 Socratic Dog
Socratic Dog's picture

Nah.  If it were true, our media would have reported it as the smoking gun it is.  You know, our cutting edge independent investigative media.  Ergo, can't be true.

Another kool-aid thanks.

Sun, 09/13/2015 - 04:48 | 6541511 All Risk No Reward
All Risk No Reward's picture

Write off the losses? Are you kidding me?

THEY WILL CHARGE THE TAX PAYER FOR EVER LAST LOSS, **PLUS INTEREST**!!!

Wake up!!!!!

Sat, 09/12/2015 - 23:08 | 6541097 sun tzu
sun tzu's picture

Squid will prepare its short positions and then trigger the crash when it is ready. The same it did in 2008

Sun, 09/13/2015 - 06:51 | 6541593 ZippyDooDah
ZippyDooDah's picture

China is building islands in the SCS as a shot at Japan; Japanese brokerage takes a shot at China's economy.

Shots fired.  But, not saying they're wrong.

Sat, 09/12/2015 - 19:30 | 6540570 negative rates
negative rates's picture

There is no warning these people, the #'s in the bank acct are all that matter to them, this we proved already.

Sat, 09/12/2015 - 22:13 | 6540977 indygo55
indygo55's picture

Carl, this time is different. Too many people know who is to blame and "they" know it. They are scared because they cannot cover their tracks this time. The cat is out of the bag, the system is going down and they cant cover their tracks fast, well or quick enough. There will be a price to be paid this time.

Sun, 09/13/2015 - 06:30 | 6541576 Slomotrainwreck
Slomotrainwreck's picture

"... it wasn't me, I was trying to warn you this would happen, remember?"

There's no help coming soon

 

Sun, 09/13/2015 - 10:11 | 6541855 JRobby
JRobby's picture

Chicken Little? No, I think not. The people that have profited most by creating the scenario for collapse now calling for it is what is to be expected.

The Western Oligarchs want to keep China, Russia and other emerging economies in their place. They contol capital flows AT ALL COSTS

Sat, 09/12/2015 - 19:29 | 6540549 Supernova Born
Supernova Born's picture

Maybe Daiwa wants Japan to arm up while fiat purchased weapons systems are still readily available.

Sat, 09/12/2015 - 19:29 | 6540568 ToSoft4Truth
ToSoft4Truth's picture

Japan will eventually announce a surprise uranium reserve. 

Sat, 09/12/2015 - 23:24 | 6541125 MontgomeryScott
MontgomeryScott's picture

... DATELINE: HAIFA GLOBAL NEWS:

It is rumored by anonymous Western Intelligence Sources that Japan has joined with Iran, and is now revealing a 'suprise uranium reserve' of it's own. Anonymous sources within the U.S. State department (via a new link from Hillary's bathroom) are shitting themselves; er; clamoring to reveal this as-yet unrevealed revelation of the revealing of the Japanese 'Uranium Enrichment Program', that have been mostly taking place within the Fukushima province/directorate by supporters of the Subway Attacks (from that strange, unheard-of cultist-type religious group we like to call 'Om-Shyn-Rickyo'; for lack of a better way to translate their strange language). BRIAN WILLIAMS, our star 'man-on-the-scene', has more details.

BRIAN?

Sat, 09/12/2015 - 20:31 | 6540720 tumblemore
tumblemore's picture

if Japan doesn't already have ICBMs in kit form I'd be very surprised

Sat, 09/12/2015 - 22:05 | 6540954 Calmyourself
Calmyourself's picture

Exactly right and plutonium pits turned and ready for encasement and triggers..  Most likely some real nice directed emp weapons for Chinas navy.

Sat, 09/12/2015 - 23:50 | 6541155 MontgomeryScott
MontgomeryScott's picture

@ Supernova Born:

I pose a question regarding your statement;

Maybe Daiwa wants Japan to arm up while fiat purchased weapons systems are still readily available.

WHY and HOW would a Japanese fishing reel manufacturer wish to team up with an Itralian manufacturer of really shitty cars, in order to buy weapons? You imply that FIAT is purchasing 'weapons systems' (I can't imagine why, or how, they could afford to buy these in the first place). Do you think that a manufacturer of fishing reels could persuade the Japanese DIET to buy 'readily available weapons systems' (perhaps through a third-party supplier, such as FIAT CHRYSLER)? Are you of the belief that there MIGHT be a 'third-party' nation that is BROKERING this deal (such as IT-RALIA, the HOME-NATION of the nefarious 'FIAT' line of, um, 'cars')?

CAN I SPECIAL-ORDER a FIAT 500 equipped with 'purchased weapons systems' like 'James Bond' or 'Austin Powers'  or the 'Mission impossibru' Hollywood guy has?

Well, I apologize. This is like 5 or 6 questions for you.

Sat, 09/12/2015 - 19:38 | 6540588 slicker
slicker's picture

Avoid standing in front of fans for the forseeable future.

Sat, 09/12/2015 - 22:58 | 6541078 Tyrone Shoelaces
Tyrone Shoelaces's picture

But what if you like shit flying thru the air, like a motorcycle stuck in the mud?

 

Sat, 09/12/2015 - 20:00 | 6540651 post turtle saver
post turtle saver's picture

"We rise at sunrise,

We rest at sunset,

Dig wells and drink,

Till our fields and eat -

What is the strength of the Emperor to us?"

Sun, 09/13/2015 - 00:24 | 6541243 MontgomeryScott
MontgomeryScott's picture

"KANSAS".

 

'Cheyenne Anthem':

https://www.youtube.com/watch?v=YVEgxYnQIxw

You pose and posit a valid question, PTS.

All that posing and posturing comes to an end when a smart-bomb visits your house, though.

I hope you listen to this.

In case you missed this response, here is a supporting 'statement' from KANSAS:

https://www.youtube.com/watch?v=cnijc9wNpV4

The 'Emporor' can go FUCK HIMSELF. In fact, he does, already (frequently, it seems).

 

Sat, 09/12/2015 - 20:18 | 6540694 sam i am
sam i am's picture

"IF" is a key-word here.

Looks to me like this is a part of a financial war on China.  

Japan is trying to scare the Chinese investors, by publishing " apocalyptic" report. As if it was never tried before.

China will stand. The West... Not so much

http://thesaker.is/ukraine-sitrep-september-10th-2015-by-scott/


Sun, 09/13/2015 - 12:01 | 6542174 TheReplacement
TheReplacement's picture

China has population.  China has manufacturing base.  China has colonies (asia/africa) from which to extract resources.

Queue global economic meltdown.

Queue global war.

Question who else is actually ready to fight such a war on a long timeline.

Russia is not.  They lack the population.

Europe is not.  They are a basket case in so many ways it is a joke to even mention Europe outside of being just another graveyard.

The US is not.  They lack manufacturing capacity to rapidly replace lost equipment.  As such they would need to replace quality (equipment) with quantity (manpower) and this won't last long either.

Sun, 09/13/2015 - 16:50 | 6543217 mt paul
mt paul's picture

broken chopsticks scenario 

Sat, 09/12/2015 - 19:21 | 6540540 Carpenter1
Carpenter1's picture

The crash has already started FFS. Just pull up a chart of any stock market you want, all are now crashing to one degree or another.

Sat, 09/12/2015 - 19:25 | 6540556 Syameimaru
Syameimaru's picture

Are you shorting the Dow yet?

Sat, 09/12/2015 - 19:26 | 6540558 Supernova Born
Supernova Born's picture

Nobody but the house wins in a rigged casino.

Sat, 09/12/2015 - 19:32 | 6540577 TeamDepends
TeamDepends's picture

Amen! If you are on the winning side of a stock trade, but the loser be broke/insolvent, you be loser too!

Sat, 09/12/2015 - 21:09 | 6540817 TeethVillage88s
TeethVillage88s's picture

Zero Sum Gain/Zero Sum Game.

Have been also thinking about this.

Wall Street wins, everyone else loses.

You would think politic... wait never mind they also win.

- Lawyers
- Lobbyist
- Bankers
- Politicians
- Wealthy Elites
- Government Class
- MIC Security Class, both public and private

Sun, 09/13/2015 - 10:40 | 6541922 robertocarlos
robertocarlos's picture

If you borrow a stock, and then sell it, and it then goes to zero, you win.

Sat, 09/12/2015 - 20:19 | 6540696 Radical Marijuana
Radical Marijuana's picture

Superficially correct, Supernova Born, but actually WAY WORSE, because all of that "money" made out of nothing was being used to strip-mine the natural resources of the planet.


Visualizing China's Mind-Boggling Consumption Of The World's Raw Materials

China jumped in the deep end with both feet, when it decided to imitate and out-do the Western systems based on fundamentally fraudulent financial accounting, and therefore, created something about three times more "money" out of nothing as debts. The Chinese economy deliberately adopted those systems, and therefore, what we thought of as their economic systems was more like ENFORCED FRAUDS ON STEROIDS.

The ways that most people think about "economics" are as absurdly backwards as possible, because those ways of thinking tend to take completely for granted that the public "money" supplies are being made out of nothing, as debts, while then that "money" does NOT actually "pay" for anything, but rather, is the expression of ENFORCED FRAUDS, where having been able to ENFORCE FRAUDS never stopped those FRAUDS BEING FALSE.

Sure, it appears that "Nobody but the house wins in a rigged casino." However, that casino is way more profoundly rigged, to the degree to which nobody wins. The world's political economy is based upon governments ENFORCING FRAUDS by privately controlled banks. Since China could not beat them, China decided to join them, and indeed, create flabbergastingly more "money" out of nothing than the previous "leaders" in those areas had ever done!

As the saying goes:

"I do not know who discovered water, but is was not fish."

For generation after generation, almost everyone has been used to living inside of a political economy based upon ENFORCING FRAUDS. That drove almost everyone to develop attitudes which deliberately ignored the principle of the conservation of energy as much as possible, while also deliberately misunderstanding the concept of entropy in the most absurdly backward ways possible. The ways that people think about economic activities could not be more absurdly backwards, because they could not be more based on ENFORCING FRAUDS than they already are, which is pretty well more than 99%, which is matched by the ratios between physical realities versus financial frauds, being about 1 to 100, while automatically still getting worse, since the political economy is still based upon governments ENFORCING FRAUDS by privately controlled banks.

While it may well appear that those privately controlled banks are "winning" fantastically, inside of the casinos that they have rigged, that perception is relatively superficial, because their fundamentally fraudulent financial accounting systems were simultaneously based upon deliberately ignoring the laws of nature as much as possible, both by building everything on the basis of strip-mining, as well as discounting the consequences of doing that as much as possible.

The appearance of those who rigged the casinos "winning" ONLY exists within the fundamentally fraudulent accounting systems that operated through those rigged casinos, which became based on governments ENFORCING FRAUDS by privately controlled banks. The intense paradoxes of social systems based on ENFORCING FRAUDS is that the more successful they become, the more they get locked into vicious spirals of psychosis. Those who appear to be "winning" inside of their rigged casinos are actually playing while they are burning that casino down.

By and large, it is practically impossible for most people to go through the cognitive dissonance it would take for them to come to terms with the degree to which everything "economic" was built on the basis of being able to ENFORCE FRAUDS. While it is theoretically possible to do that, by developing the intellectual scientific revolutions necessary to approach understanding human being and civilization as entropic pumps of environmental energy flows, it is politically impossible to do that, since one has to go through profound paradigm shifts, in order to comprehend how and why everything became based upon ENFORCING FRAUDS, and that China decides to embrace that kind of political economy, and do it more than anyone else had previously done.

There are intense paradoxes, in the form of consistent contradictions, which arise from better understanding how and why civilization actually operates according to the principles and methods of organized crime. On a superficial level, it may well appear that those who rigged their casinos were the only ones "winning." However, on deeper levels, they were also lying to themselves, because those systems which privatized the profits, while socializing the losses, were based upon being able to deliberately ignore that those socialized losses were accumulating to become greater than the privatized profits.

As stated in the recent article, A Major Bank Just Made Global Financial "Meltdown" Its Base Case: "The Worst The World Has Ever Seen"

"Of all the possible risk scenarios the meltdown scenario is, realistically speaking, the most likely to occur. It is actually a more realistic outcome than the capital stock adjustment scenario. If China’s economy, the second largest in the world, twice the size of Japan’s, were to lapse into a meltdown situation such as this one, the effect would more than likely send the world economy into a tailspin. Its impact could be the worst the world has ever seen."

Since everything the globalized political economy has been doing was based upon ENFORCING FRAUDS, and China enthusiastically jumped on that bandwagon, the basic problems regarding having done that were almost totally globalized. Since the world is run by people who degree of social successfulness was based upon their abilities to be the best available professional liars and immaculate hypocrites, in order to be socially successful within the established systems ENFORCING FRAUDS, it continues to be politically impossible for most of those people to admit the magnitudes to which they were lying to themselves, and to everyone else, regarding how the political economy was really doing, due to how it really worked.

Collectively, the globalized political economy was based upon runaway triumphant organized crime, whose excessive successfulness became runaway criminal insanities. While it appeared to those who had rigged their casinos were "winning" that was their own delusional sense of what was actually going on, due to the degree that short to medium term social successes could be based on continuing to ENFORCE FRAUDS.

However, at the same time, the deeper underlying realities were actually developing, because the fundamentally fraudulent financial accounting systems were able to trick human beings, but that did not change the underlying laws of nature. Despite human beings dominated by social systems based upon ENFORCING FRAUDS feeling like they were "winning" inside of the casinos that they had rigged, what was actually really happening was that they were behaving in ways where the only connections between human laws and natural laws were the abilities to back up lies with violence. Hence, those runaway systems of ENFORCED FRAUDS were actually directing civilization to behave in ways that deliberately ignored the basic laws of nature as much as possible.

The interesting questions that arise are what could the possible "corrections" to that become, after the development of systems of globalized electronic monkey money frauds, backed by the threat of force from apes with atomic bombs. Of course, the laws of nature are still there, and human beings never actually violated any of those laws of nature when human societies became based on more and more be able to back up lies with violence, while most people adapted to that by adopting those systems, such as the Chinese did, when they decides to make vastly more "money" out of nothing as debts than ever before done by anybody else.

I am NOT asserting that human beings' ERRORS will never be corrected. Rather, I am am attempting to point out the magnitude of those ERRORS. While the global political economy more and more became a rigged casino, based upon governments ENFORCING FRAUDS by privately controlled banks, in my view it was a dangerous delusion for those who appears to be "winning" to believe that they actually were "winning."

Those who appeared to thereby be able to privatize the profits from controlling the political economy through ENFORCING FRAUDS were actually always also accumulating their own shares of the collective losses. Those collective losses tended to be deliberately discounted and disregarded as much as possible. However, those were always actually accumulating in the real world. Hence, those who appears to be privately winning inside of their rigged casinos were NOT actually winning, but rather, driving the human species as a whole towards committing collective suicide, due to the degree to which civilization thus became psychotic and manifested runaway criminal insanities.

Sat, 09/12/2015 - 20:43 | 6540730 tumblemore
tumblemore's picture

Yeah it's like when China adopted Communism and then took it to even worse extremes. This time they adopted the western banking system and took that to even worse extremes.

 

The lesson for them should be don't copy ****** inventions because (reasons).

 

Sun, 09/13/2015 - 04:36 | 6541504 conscious being
conscious being's picture

China had to out run the devil to get some operating room.

Sat, 09/12/2015 - 20:53 | 6540773 MontgomeryScott
MontgomeryScott's picture

Hindsight's always 20/20.

Devolution is a fact.

The Second Law of Thermodynamics always applies in the 'natural'.

Humans are corrupted.

What's your point, RM?

Pontificating in 'man's wisdom' regarding these basic facts while appearing to be 'intellectual' is nothing more than a show. CASINOS ARE ALWAYS RIGGED. The wisdom of Man is Foolishness to God.

You're debating about the different ways that the iceberg COULD have holed the 'Titanic' (and how this could have been avoided in so MANY different ways), but not dealing with the fact that the ship WILL SINK. It's 10 after 2 in the morning, April 15, 1912, and you're still sitting comfortably in the Smoking Lounge on board the Olympic-OOPS, 'TITANIC'.

(SONG POST: band name 'TEARS FOR FEARS'):

https://www.youtube.com/watch?v=3OFOZQ6pMGo

WHO WILL BE BLAMED FOR WORLD WAR THREE:

https://www.youtube.com/watch?v=hvcq3OpX8qQ

There's no time left for theoretical analysis. The shit's going hot, rather quickly.

EVERY NATION is responsible for the coming destruction of all life on this planet (by the judgement of the 'magnitude of those errors', as you put it so eloquently).

 

You take way too many words to state the obvious.

MY prediction: CONUS WILL, NOT, SURVIVE.

There's 'smart fuckers' and 'fart smuckers' in this world. Smoke another joint and think about this.

Sat, 09/12/2015 - 21:02 | 6540796 durablefaith
durablefaith's picture

corrections are illegal...

Self reliance = isolationism. Grouping up with like-minded people is racism. Promoting an ideology that reveals the morally bankrupt current state = hate speech. Anarchy = extremism. Protests = terrorism.

The countermeasures being employed against us are asymetrical in nature due to legality and technology. 

The collective herd, ridden hard by their psychopath overlords, are approaching the Cliff.

Those of us who are awake and mindful swim upstream, because of duty, regardless of outcome

 

 

 

Sat, 09/12/2015 - 23:11 | 6541102 sun tzu
sun tzu's picture

Lions don't attack the entire buffalo or wildebeest herd. They pick the weakest ones. 

Sun, 09/13/2015 - 20:56 | 6544243 Stares straight...
Stares straight ahead's picture

I am shorting the Tao.

Sat, 09/12/2015 - 19:29 | 6540567 yogibear
yogibear's picture

Only when the riggers dump all their holdings on the sheeple will they take this baby down.

Much faster making money on the way down. Usually those not well connected never see it coming.

Sat, 09/12/2015 - 19:58 | 6540640 Oldballplayer
Oldballplayer's picture

How much money flows into 401k accounts each week.

Those are the ultimate rip off. Get two entire generations pumping 4% of their gross in every payday. And when they think they are all set--pull the rug from under them.

At this point, take the penalty, pay the taxes and but as many 2017 dec puts as you can get. You will make it all back. And more.

Sat, 09/12/2015 - 20:24 | 6540704 booboo
booboo's picture

Right, under this scenario you will be told your puts are as worthless as cotton candy in a cat 5 hurricane. Fraudville will be closed while planet earth is being renovated by inbreds with nukes.

Sat, 09/12/2015 - 19:39 | 6540590 Omega_Man
Omega_Man's picture

Well,, if china meltsdown so will USA Japan, Canada, EU, and the rest... their article isn't finished. 

Sat, 09/12/2015 - 19:49 | 6540614 Chuck Knoblauch
Chuck Knoblauch's picture

Chinese devaluation is intentional.

Chinese don't like narco-nazis.

Sat, 09/12/2015 - 19:40 | 6540591 arbwhore
arbwhore's picture

A Japanese bank predicts doom for China... color me surprised.

Sat, 09/12/2015 - 19:49 | 6540615 buzzsaw99
buzzsaw99's picture

this

Sat, 09/12/2015 - 20:37 | 6540737 tumblemore
tumblemore's picture

They're predicting doom for everybody and blaming China.

 

Expect to see the entire banking mafia saying the same thing in the coming monthes.

 

Sat, 09/12/2015 - 19:41 | 6540593 ThrowAwayYourTV
ThrowAwayYourTV's picture

Whats everybody worried about? If we all lose our jobs the goobermint will pay all our rents and healthcare and give us a card every month to go shopping with.

Look at it as, "A Long Vacation." paid for by UNCLE America.

Hell! All I do is work and sleep to get the bills paid anyway.

Be a nice change to get the bills paid while sleeping in.

 

 

Sat, 09/12/2015 - 19:54 | 6540631 surf0766
surf0766's picture

We can all renounce. Then leave the country, cross the U.S. mexico boarder and claim for be dreamers living freely wihout working for the rest of our lives..

Sat, 09/12/2015 - 20:46 | 6540754 August
August's picture

That actually works, but I suspect it won't for those who can't pass as Latino. 

Folks of MENA origin will likely be considered honorary Latinos, though.

Sat, 09/12/2015 - 20:14 | 6540683 MontgomeryScott
MontgomeryScott's picture

I'm glad to see that not EVERYONE is 'doom and gloom' here. Oh, hang on, the Obamaphone's ringing...

(one minute later)

It was a recorded message. I guess supplies of Soylent Green are running short, and they said that the banks would all be closed for a couple of days for some 'software upgrades' that have to do with hacking and security. They've set up these 'community centers', though, in case I run out of anything. Damn thing wakes me up at 10 in the morning for THIS? Well, SHIT, I'm out of Pop-tarts anyway. Mind as well go down to the local FEMA center and get me some.

(TRANSMISSION TERMINATED)

Sat, 09/12/2015 - 20:41 | 6540744 TeethVillage88s
TeethVillage88s's picture

Let's see how many banks we have now and how the term can be applied

- Energy Banks
- Computer Banks
- Education Banks
- Mortgage Banks
- Utility Banks, Energy, Water, Sewers, Garbage
- Entertainment Banks, Cable Companies
- Telecom Banks
- Health Care Banks
- People are part of the Corporation, an account
- Food bank (Soylent Green)

- Job Banks

On-Line Community Bank, Social Media, one stop shopping for NSA

MIC Security Banks, both public and private

Sat, 09/12/2015 - 21:23 | 6540851 MontgomeryScott
MontgomeryScott's picture

I was HOPING someone would see the humor in calling DAIWA a 'bank'!

 

Let's see.

Blood 'Banks'.

Sperm 'Banks'.

Planned Parenthood aborted/murdered human baby Body Part 'Banks'.

A 'Battery Bank' (two or more electrical storage devices coupled in series; or in parallel; in order to apply MOAR POWER in either Amperes or Volts; OR BOTH).

A 'River Bank' (wholly owned within CONUS by EPA, INCORPORATED, a division of MIC GLOBAL).

I'm old enough to remember going in to the sporting goods store and seeing DAIWA fishing reels when they were first introduced (shortly after the TOYODA/renamed TOYOTA cars became a success within the former United States). This was several years before DATSUN 'became' NISSAN.

<S> on

My local 501/C/3 'church' has been sending out notices through the mail via a grant from DHS/FEMA regarding an urgent need for 'Pop-tarts' in their local FEMA-approved 'food BANKS'. Single mothers in the inner cities ALL know that 'Pop-tarts' fulfill ALL of the basic 5 'nutrient groups' on the 'pyramid' (and all those POOR little mulatto babies are now 'starving').

<S> off

 

Sat, 09/12/2015 - 20:38 | 6540739 tumblemore
tumblemore's picture

personally, temporary break down in the supply chain and at least a month of world war z

 

Sat, 09/12/2015 - 19:45 | 6540602 Chuck Knoblauch
Chuck Knoblauch's picture

US doom a certainty.

Yuan devaluation exposing USD$ weakness.

Global dumping of US Treasuries.

Stop the bullshit.

It's really obvious, captain.

Sat, 09/12/2015 - 20:49 | 6540764 TeethVillage88s
TeethVillage88s's picture

Well it took them a long time to get the WTO passed through Congress. And now you have no access to your congressmen.

Boom right after WTO we got NAFTA and Globalism went into high gear. China got full membership in the WTO.

- The situation looks like USA is already in a EU Type Government we just don't know it yet.

What was it the Trilateral Commission wanted 3 big regional governments, the Americas, the European, and an Asian.

- I'm sure the Chinese love the idea.

War and Financial Crisis and Immigration Crisis is a perfect set up to bring one world currency and one world government.

- I don't know, let's keep our eyes on their goals whatever they are, they have to take gun rights, and extract our remaining wealth and sovereignty

Sun, 09/13/2015 - 11:13 | 6542024 Chuck Knoblauch
Chuck Knoblauch's picture

Liberal idiots being used to create a tyranny that will kill them all.

Sun, 09/13/2015 - 04:44 | 6541508 MSimon
MSimon's picture

That completely explains the rise of the dollar and the fall of the yuan. And how about those rubles? 

You have to think in terms of partial differentials rather than absolutes. Because all that matters is what happens on the edges. Rising or falling? Rate of rise or fall. Rate of change of rate of rise or fall. etc.

 

 

Sat, 09/12/2015 - 19:45 | 6540604 lolmao500
lolmao500's picture

This is gonna be fun :

Moscow is sending an advanced anti-aircraft missile system to Syria, two Western officials and a Russian source said, as part of what the West believes is stepped-up military support for embattled President Bashar al-Assad.

The Western officials said the SA-22 system would be operated by Russian troops, rather than Syrians. The system was on its way to Syria but had not yet arrived.

http://www.reuters.com/article/2015/09/11/us-mideast-crisis-syria-arms-i...

Funny but ISIS and the rebels dont have planes... Israel and NATO on the other hand...

Sat, 09/12/2015 - 19:52 | 6540621 ThrowAwayYourTV
ThrowAwayYourTV's picture

Guaranteed if the markets crash, war will break out. Its the only way the bansters can protect their money.

Lots of money in building war machines that get blown up and need to be replaced as quickly as possible, then financing the repairs of whole cities afterwards.

Sat, 09/12/2015 - 20:07 | 6540669 Spiritof42
Spiritof42's picture

I vaguely recall Nato or the Obama regime declaring Syria a no-flyover zone. That would explain the Russian anti-aircraft missiles. It's payback time for Russian losses in Afghanistan.

Sat, 09/12/2015 - 20:14 | 6540682 Winston Churchill
Winston Churchill's picture

Which was payback for American losses in Vietnam.

It would be funny, if it wasn't so sad.

Sat, 09/12/2015 - 20:29 | 6540714 TeethVillage88s
TeethVillage88s's picture

Strategically I would think Putin would want to kick it off before the next US President is sworn in.

Maybe it is wrong of me, but a new president will be chomping at the bit to prove himself the the Neo_Zios.

Putin could catch Obama flatfooted and unwilling to soil his legacy.

Who is Really Running the US right now??

Joint Chiefs of Staff & Defense Secretary who?? John Kerry will just follow along and pretend he is in charge of something.

Sat, 09/12/2015 - 22:28 | 6541014 lakecity55
lakecity55's picture

ValJar runs the US thru her sock puppet, Bath House. Some guy like Soros calls in the orders to her.

Sun, 09/13/2015 - 10:46 | 6541942 Berspankme
Berspankme's picture

I thought Barry told Reggie he was in charge

Sun, 09/13/2015 - 04:35 | 6541503 MSimon
MSimon's picture

Putin could catch Obama flatfooted and unwilling to soil his legacy.

 

Soil his legacy? It is nothing but soil. Night soil.

Sun, 09/13/2015 - 08:05 | 6541681 Arnold
Arnold's picture

Somehow 37% percent of the population remains unconvinced of the validity of your statement.

 

It's not all racial divide in his popularity numbers either.

Sun, 09/13/2015 - 14:59 | 6542797 TeethVillage88s
TeethVillage88s's picture

Nice to blow off steam.

- Obmama's Administration has ego, just like all executives in the USA
- Obama's Legacy is from the perspective of himself and his supporters including the Monopoly of Free Speech called US MSM

- But it is also the Language, Legacy, of the Banks, the FED, and US Business Culture/Lawyers

Sun, 09/13/2015 - 10:41 | 6541916 Element
Element's picture

 

 

"The Western officials said the SA-22 system would be operated by Russian troops, rather than Syrians. The system was on its way to Syria but had not yet arrived."

It's pretty much a non-event though as the SA-22 is none other than the Pantsyr-S1, which Syria already has in service, and is a short-range battlefield point defense SAM with secondary close-in AAA. Not a threat system for aircraft operating at 50K ft with standoff PGM weapons. But I doubt that was the intent anyway. It's far more likely to be a force-protection measure to protect Russian troops against accidental (or even deliberate) targeting by bombs, as that SAM is very unlikely to reach the aircraft that dropped them.

That seems to be the point, use a mostly passive system that is not too threatening to western aircraft, and thus does not invite attack, but can still protect Russian assets and forces.

Sat, 09/12/2015 - 19:47 | 6540608 hotrod
hotrod's picture

Hey Daiwa, what about JAPAN?   Isn't Japan already insolvent?  How much is Japan spending on the Nikeii

Sat, 09/12/2015 - 19:53 | 6540628 Chuck Knoblauch
Chuck Knoblauch's picture

Japs buys their own sovereign debt too.

Sat, 09/12/2015 - 22:59 | 6541080 tenpanhandle
tenpanhandle's picture

What's Godzilla's favorite snack?  Little Japanese people dipped in cheddar, also known as cheese nips.

 

Sorry, everytime I here the word "japs" I lose any modicum of political correctness I might have.

Sun, 09/13/2015 - 00:43 | 6541275 CCanuck
CCanuck's picture

Thanks for the chuckle...cheese nips..lol

Sat, 09/12/2015 - 19:50 | 6540616 devo
devo's picture

Yawn. Still not scared. Thanks, CBs.

Sat, 09/12/2015 - 19:51 | 6540620 Chuck Knoblauch
Chuck Knoblauch's picture

Narco-Nazis culling America.

Chinese wont be culled.

Sat, 09/12/2015 - 19:59 | 6540625 q99x2
q99x2's picture

No shit. Did you think in the 16th century they didn't let Christians lend money with interest because they were goody two shoes. Hell no. It's because it is criminal and destructive to any civilized populace.

Morons. Arrest Lloyd Blankfein and Jamie Dimon for treason.

I'll never drink Daiwa water again.

Sat, 09/12/2015 - 20:05 | 6540665 Winston Churchill
Winston Churchill's picture

Just like Sharia banking today, they'd profit share the loans, which strangely works out jusy

like interest.

Lots of way to skim a cat.

Sat, 09/12/2015 - 22:25 | 6541007 lakecity55
lakecity55's picture

Yep! A guy in Dubai told me you just add the interest in to the loan.

Sun, 09/13/2015 - 05:46 | 6541549 salman
salman's picture

Well i am from Dubai too and working for a Sharia compliant bank also. Sorry to infirm you the guy who told you the above, does not know anything about Sharia or Islamic Banking.

Sun, 09/13/2015 - 08:08 | 6541690 Arnold
Arnold's picture

I am more than happy to shed my ignorance.

School me.

Sun, 09/13/2015 - 06:53 | 6541599 Treason Season
Treason Season's picture

How many ways ARE there to "skim a cat"?

Sun, 09/13/2015 - 04:33 | 6541500 MSimon
MSimon's picture

No profit. No lend.

 

Next.

Sat, 09/12/2015 - 19:55 | 6540634 coast
coast's picture

I am waiting for the "sum ting wong", "Ho Re Shyt"  comments..tap tap tap  :-)

Sat, 09/12/2015 - 20:02 | 6540656 stant
stant's picture

Wee awl skwood round eye

Sat, 09/12/2015 - 20:36 | 6540733 coast
coast's picture

not bad stant, not bad....ok, enuf of this, I was just screwing around.  lets get back to the seriousness of the lol economy lol.

Sat, 09/12/2015 - 21:22 | 6540846 stant
stant's picture

I apologize . I forgot to say bitchez!

Sat, 09/12/2015 - 21:40 | 6540895 Wahooo
Wahooo's picture

You mean beechizz.

Sat, 09/12/2015 - 20:32 | 6540668 JenkinsLane
JenkinsLane's picture

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Sat, 09/12/2015 - 20:34 | 6540727 coast
coast's picture

Actually it was December 1861,  phrased by a railroad worker to his children, but his oldest son stole it and by mid January 1862 it became more common and the older son got the credit. Around the first week of January 1862, the heroin shipment did not come in, and the oldest son said "sum ting wong" and it went viral thru out all the railroad industry.  It was a phenomen not seen since the earlier 1800's when a black man was called the N word.

Sun, 09/13/2015 - 10:43 | 6541934 robertocarlos
robertocarlos's picture

"Alright, we'll take the niggers and the chinks, but we don't want the Irish!"

Sat, 09/12/2015 - 20:29 | 6540717 Usurious
Usurious's picture

http://deadspin.com/pranked-tv-station-reports-ho-lee-fuk-wi-tu-lo-as-75...{%2210201485654128318%22%3A269621709842273}&action_type_map={%2210201485654128318%22%3A%22og.likes%22}&action_ref_map=[]

Sat, 09/12/2015 - 19:58 | 6540646 commishbob
commishbob's picture

Everyone on CNBC says China is already priced in.

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