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Martin Armstrong Warns "Hell Is About To Break Loose"
Submitted by Martin Armstrong via ArmstrongEconomics.com,
Yellen has inherited a complete nightmare.
Thursday’s decision to delay yet again the long-awaited liftoff from zero interest rates is illustrating that the world economy is totally screwed.
There is a lot of speculation about why the Fed seems so reluctant to “normalize monetary policy”. There are of course the typical domestic issues that there is low inflation, weak wage gains in the face of strong job growth, a hike will increase the Federal deficit and then there is the argument that corporations that now have $12.5 trillion in debt. All that is nice, but with corporate debt, our clients are locking in long-term at these levels, not funding anything short-term. Those clients who have listened are preparing for what is to come unlike government which has been forced to shorten the average duration of their debts blind to what happens when rates rise, which will be set in motion by the markets – not Yellen.
The Fed is really caught between a rock and a very dark place. Yes, they have the IMF and the world pleading with them not to raise rates for it will hurt other debtors who borrowed excessively using dollars to save money.
The Fed is also caught between domestic policy objectives that dictate they MUST raise rates of they will bankrupt countless pension funds and international where emerging markets will go into default because commodities have collapsed and they have no way of paying off this debt that has risen to about 50% of the US national debt.
By avoiding the normalization of interest rates (hikes), the Fed has encouraged government to spend far more than they realize because money is cheap. This will eventually light the fire under the economy helping to fuel the Sovereign Debt Crisis. There appears to be no hope for the Fed and they will be forced to raise rates only when they see asset inflation in equities. Then they will have no choice.
This is the worst possible mess and the longer they have waited to normalize interest rates, the worst the total crisis is becoming for they will have zero control over the economy and once that is seen, holy Hell will break loose.
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If the markets had a choice, they would have already raised rates long ago, and even moreso now that China is dumping treasuries. But the Fed is buying it all, and no-one is willing to stop them. This will last until it can't, and then we will have hyperinflation. That is all. No rate increases, no fiscal discipline, just the greatest and final enforcement of the consequences of ignored realities.
"But the Fed is buying it all, and no-one is willing to stop them."
Save for a few, no one is even willing to ask/address the issue itself:
http://www.gold-eagle.com/article/hidden-trillion-qe-monthly-volume
"China is dumping treasuries. But the Fed is buying it all, and no-one is willing to stop them. This will last until it can't, and then we will have hyperinflation."
The Fed can't inflate if the debt markets collapse. I think the coming rise in interest rates will be MARKET induced i.e. the bond market breaks forcing the Fed to raise interest rates. Once the bond market breaks, it won't matter what the Fed does because money is lent based on the long end of the interest rate spectrum. So we would effectively have Corporate and muni rates skyrocketing with elevated levels for govt debt.
It's about time we get down to business.
Oh c'mon, the democrats don't want a bigger shitstorm then what is already happening.
You are either faced with not making anything on savings or "investing" in the stock market.
You can't even buy pm's because they are either out of stock or at ridiculous premiums.
As long as Wall St. is profiting, the people who run the show are fucking happy.
Just would like to see this shit pop.....
Just would like to see this shit pop.....
+1. I peaked my training right around Lehman thinking the fun was going to start. No joy. Working up to it again right now. I ain't getting any younger.
https://www.youtube.com/watch?v=6PQ6335puOc
If I only had one wish, I would not care about all this stuff, but my wish would be "free beer and beer is not unhealthy for you" ...is that too much to ask? I hate that beer costs money, and I hate that it can hurt your health... Find me a president that can fix that and i would vote for him :-)
What about BACON?
lol...ok bacon too.. :-) I love BLT's...altho, you got more ups for bacon than I did beer.....this country is going to hell in a handbasket...lol
I knew it was near the end when Duck Donuts started putting a bacon glaze on their donuts.
Damn, that must be good for you.
remember when paulsen walked up to congress and gave it and bush (standin' there like a scared 'lil rabbitt) a one page ultimatium to hand over one trillion? that said it all and was the beginning of the end.
How many Economists does it take to screw up a Economy...
answer: one to make a guess, and a few thousand more to make a different guess.
Have the Treasury start issuing silver-backed silver certificates again. Then banks may take the bait and start lending against them. Old dollars could then be slowly dumped. If this process causes a worldwide crash, Then, we are still on our way with a more reliable currency backed by silver. Just my thoughts on getting us going again, as I DO NOT wish to be stuck like Japan, 25+ years of slow death and dyeing.
Please define "holy hell"
Be specific
"Martin Armstrong Warns 'Hell Is About To Break Loose'"
What a headline! I am just stunned that Martin Armstrong would ever say such a thing; he never has before.
Our oligarchies have handed us a hell. What would be nice would be to see a way out.
All I'm seeing is a long road down hill. Give me a turn off or exit, ok?
In times past, countries were on different cycles. So when one failed, there were other places to move your money. But this time for the first time ever, all the central banks are coordinated on the same business cycle. When they blow, it's going to be within a short time frame. And there are extremely few choices where it is safe to park your money. On other occassions, Armstrong calls it the Big Bang. I can think of other metaphors like California wildfire and supervolcano eruption.
That was quite forceful of Martin
We can crash this ourselves. All we have to do is start using alternative payment systems and never buy any of their crap except of course gasoline and heating oil/energy. It would blow up in 6months if people made a concerted effort.
Old Yeller ridding her faithful Zirp into oblivion. What a sight, please pass the popcorn and JD.
The Fed missed the boat. I'm sure they realize this. But they also realize that no matter what they might want to do now, they have few options.
We are entering the 2016 Presidential race. The political forces on both sides will make any independent decision-making impossible now...it may have been hard before, now it's just not gonna happen.
And as the effects of their inaction spiral out of control, the pressures to do something, anything, are going to force them to do SOMETHING. That something will be a desperate, ill-thought-out reflex-type of response that makes things much, much worse. The political class will demand heads as they watch the entire economy collapse just when they are trying to win a fucking national election, for the love of God! DO SOMETHING Yellen!...And she will, to try and save her own ass. And that thing will be wrong.
They waited too long.
I gave you a thumbs up, but I still believe that they have QE4 in the works and can still kick this can down the road ONE (1) more time. After the 2016 election all bets are off and we will see the USA implode in on itself, IMHO.
No $#it Sherlock.
Light a fire under the economy...
The Apaches used to light fires underneath their problems as well.
Armstrong knows that with their Moneytron they have total control over the economy and know exactly where its going.
Being an apologist keeps you out of porridge though.
How Psychopaths operate and how to deal with them:
As humans, we need to confront this threat and DEAL with it.
We need to remember that cooperating with evil, on ANY level, is a MISTAKE and it will ultimately come back to bite you.
So why we spend so much ink and time to explain how to American (Predatory) Capitalism works?!
When relationship with reptilian host is killing us…
There's a reason why they put women into the top jobs right before the smash-up.
Holy Crap, Tarabel. U might be Right.
As a writer, Mr. Armstrong might be a mathematician, or perhaps a plumber.
In the “real” economy inflation is rampant and warrants double digit interest rates at FED, just look at basic staples eggs, beef, chicken and other foods, rent/housing, education, even transportation and telecommunication cost are “effectively” raising, not to mention medical care, all those things people need to live are raising precipitously.
Even those 1%-ters facing massive inflation forced to buy risky bonds at unbelievable high prices to get any yield at all. The global inflation bubble is here while global demand is dying and commodity nominal prices are collapsing as we speak since with such a high “real” prices every expect loss or severe decline of income or profit in the future expressed by dead body of CapEx and consumption.
On the top of it typical the inflation hiding maneuvers of the retailers producing serving size inflation, quality collapse inflation, component substitution inflation, choice narrowing inflation, package cost and quality inflation, air conditioning, freezing/heating power limitation inflation, shopping experience quality collapse inflation, and other manipulations to keep so called nominal “at the store” price marginal increase of few percent only per year but even that was impossible in 2015 so far.
That's will make true nominal inflation total about 25% a year on retail side alone, not to mention gigantic health care and insurance inflation, education inflation etc.
This combined with collapse of wages/benefits/other incomes produces about 50-60% “real” inflation/year. That's why all retailers cheat about their sales because in response to such big inflation drastically cut spending as only thing they can do. They go to store 50% less times and buy 50% less in dollars then before per trip, the sign of collapsing standard of living. Service economy, except for packets of crony areas of the ruling elites, is collapsing as well, now you can get a haircut for $2.99 1950 price.
All these are signs of hidden “real” super-inflation (not yet hyper) in the collapsing economy seen through almost halting the transaction volumes and collapse of money circulation in the society of 99%.
But as long as this Washington D.C. Regime persists the nominal hyper-inflation will not be allowed because of political malleability of the Americans but instead the expropriation will continue to be executed in other ways mainly through measured nominal deflationary spiral.
In simple words peoples income and their basic assets will continue to be depreciated so the assets or services they need to survive, food shelter will continue becoming less and less affordable (beyond the price reach) and hence demand will continue to collapse until acute social de-cohesion and massive social unrest occurs.
All of it is not due to the laws of economy but deliberate policies of government to give a chance for oligarchs to concentrate the capital, monopolize the markets and transform the economy into rent seeking feudal outfit to be bail out by the people again and again.
All FOMC members behave like suicide bombers running around in their vests in the warehouse full of explosives shouting that everything is under control as long as we won’t push the button even 0.25% of it but only until their job, building a brave new world for themselves is done.
They want to cook us slow so we won't jump out of pan so they can devour us while we still alive. Monsters feed off frog's hope that next frog will be eaten first and that they will be full before they get to it. Such a hope is mother of stupid and immoral. it's time to wake up from our torpor.
More on "real" inflation:
https://contrarianopinion.wordpress.com/2015/01/29/invisible-hand-and-ot...
http://www.bloomberg.com/news/articles/2015-09-20/fed-officials-still-se...
Fed Officials Still See 2015 Liftoff Despite September Delay
By Jeanna Smialek and Sarah McGregor
September 20, 2015 — 1:23 PM EDT
- Williams: September FOMC policy decision was a `close call'
- Jobless rate expected to keep falling, inflation to rebound
Federal Reserve officials argued that an interest-rate increase is still warranted this year, laying out the case for liftoff in remarks over the weekend that counter bets by traders that the central bank will stay on hold until 2016.
Three policy makers separately explained their rationale for enacting a rate increase at one of the Fed’s two remaining meetings of 2015, citing declines in unemployment and other gains in the U.S. economy that should outweigh headwinds from slower growth abroad and turbulent financial markets.
San Francisco Fed President John Williams, a policy centrist who has worked closely with Chair Janet Yellen, said Sunday that “in my mind, it was a close call” to delay a rate rise at last week’s Federal Open Market Committee meeting.
Williams’ comments on Fox News Channel’s “Sunday Morning Futures with Maria Bartiromo” echoed remarks he made the day before, and chimed with the reasoning of St. Louis Fed President James Bullard and Richmond Fed President Jeffrey Lacker. Both weighed in on Saturday over the FOMC’s vote to leave rates near zero.
Mixed Messages
The central bank’s decision, and the way its deliberations were framed by Yellen in a post-meeting press conference, were interpreted by many Fed watchers as a sign that the central bank might not raise rates this year. In holding rates steady, the Fed noted international uncertainties and subdued inflation.
Traders say it’s more likely than not that the Fed will postpone liftoff until 2016, based on the current pricing of federal funds futures contracts.
Investors will hear directly from Yellen again on Sept. 24 when she delivers a speech in Amherst, Massachusetts.
Williams said on Saturday in Armonk, New York, that “I view the next appropriate step as gradually raising interest rates, most likely starting sometime later this year.”
He is in the majority. Quarterly Fed forecasts, which were updated for last week’s FOMC, showed that 13 of 17 policy makers still expect rates to increase in 2015. The projections, displayed in a so-called dot plot, don’t identify the forecasts of individual policy makers and Yellen declined last week to say which dot belonged to her.
The committee gathers next on October 27-28 and December 15-16. Its benchmark interest rate has been kept near zero since 2008 to spur hiring and investment amid the worst recession since the Great Depression. The Fed last raised rates in 2006.
2016 Liftoff
While Williams voted last week to leave rates near zero, Bullard, who doesn’t vote on policy until next year, argued for an increase at the meeting, he said Saturday during a speech in Nashville, Tennessee.
Holding rates steady yet again seems to have “created rather than reduced global macroeconomic uncertainty,” he said.
The FOMC’s goals have “essentially been met, but the committee’s policy settings remain stuck in emergency mode,” Bullard said.
The Fed’s twin objectives for its monetary policy are to achieve maximum employment and stable inflation, which it targets at 2 percent. The unemployment rate dipped to 5.1 percent in August. The Fed’s preferred gauge of price pressures rose 0.3 percent in the 12 months through July and has been under two percent for more than three years.
Williams said he expects the U.S. to reach full employment by the end of this year or early in 2016.
Upward Pressure
“Recent global economic and financial developments may restrain economic activity somewhat and are likely to put further downward pressure on inflation in the near term,” the committee said in its post-meeting statement.
Even with a small interest-rate increase, policy will remain highly accommodative and continue to place upward pressure on inflation, Bullard said Saturday. Williams said that while a strong dollar and the fall in oil prices over the past year have tamped down price pressures, those factors “should prove transitory.” He expects that inflation will move toward 2 percent in the next two years.
Lacker, an anti-inflation hawk, dissented in favor of higher interest rates on Thursday. He said Saturday that the Fed’s failure to tighten had raised the risk of “adverse outcomes.”
“An increase in our interest rate target is needed, given current economic conditions and the medium-term outlook,” Lacker said in a statement posted on his regional bank’s website. Lacker was the sole dissenter to the Fed’s decision.
‘Close Call’
Both Williams and Bullard said October is a possibility for an rate increase, even though there will be a relatively limited amount of new economic data -- including one jobs report and one Consumer Price Index reading -- between now and then.
“There is not a lot of data,” Bullard told reporters. “On the other hand, it was a close call at this meeting.” The Fed is “ready to go” in October if conditions warrant, he said.
Although traders are leaning against a Fed move for now, if markets don’t properly anticipate a rate increase when it arrives, “that doesn’t bother me,” Williams told reporters.
He said in his Fox News interview on Sunday that the Fed could stage a press briefing after its meeting next month if it decided to act. Yellen, who has said a rate decision is possible at any meeting, is not scheduled to hold a press conference until the December FOMC.
I read that article on the terminal. It struck me as so desperate. The Fed are shitting themselves into a tizzy right now, so much so that Yellen sent 3 voters out to backpedal. I think this may be the signal that they have lost control.
It's not about savings anymore its about consuming and keeping the sheep at the government planned debt levels.
They will raise rates when they decide to crash the system. Think about it... If they raised rates to 5% overnight that would suck up ALL liquidity in the system.
Isn't it amazing how the Russians not so far back kicked their rates up to 18%, and it actually benefited them? 18% in the US would be a nuclear rate raise.
https://youtu.be/PZaDSEVuEFU
It's looney.....
Not sure what Armstrong means when he says that the Fed "will be forced to raise rates only when they see asset inflation in equities."
We have already had massive asset inflation in equities, and still the Fed CAN"T raise rates. The market can, and will, force rates higher, as I think Armstrong knows, but not until all repairs are impossible.
I would guess perceived "unacceptable" increase levels are what he's talking about. Also realize what the true inflation is vs. gov reported inflation (fairlyland inflation). If you want to operate in Fairyland, then you accept the Fed numbers and go with that on policy decisions. If you want to deal with reality, then you probably don't work for the Fed or don't have a job where your decisions affect actual working policy.
"for they will have zero control over the economy and once that is seen, holy Hell will break loose."
When the Fed loses control free markets return. The Free market won't be kind to the Fed.
"In August 2006, Armstrong pleaded guilty to one count of conspiracy to commit fraud", that Martin A. Armstrong?
Research the charges he was facing. Might also gander at "The Forecaster". Armstrong stood up to the machine. And paid the price.
A few thoughts...I use to read Armstrong when he was in jail. Anyone who has followed him a long time realizes that he has been bought and paid for by the money masters and has gone to the dark side. His tone and his rhetoric have changed dramatically and his numbers are wrong! Why, all of a sudden, is he against gold?
As for Hitlery...She has screwed the pooch! There are so many skeletons in the Clinton closet that are now being reveiled. She will be kicked to the curb. Obummer does not want her to be the Democratic candidate ( bad blood) and has turned the DOJ loose on her. He's going against the democratic party but will prevail.
As for the fed...Me thinks they backed down because of a lot of reasons, primarily a searious threat from the Chinese! They can shut us down instantly but are choosing the long game. It will be a miracle if they can do it without starting WWIII.
The next few months are going to be all Shits & Giggles. Watch what comes from the UN & the Popemaster!
Why, all of a sudden, is he against gold?
I too have been reading him regularly since he was in jail. He's been trashing gold promoters ever since. Says gold prices are due for a collapse before they zoom off into the stratosphere. I'm withholding judgment to see how this works out.
In the meantime, I find his blog very educational. His thought process is different from normal people. Which may account for the accusations against him.
Martin Armstrong Warns "Hell Is About To Break Loose"
He says a lot of things, and none almost ever (or maybe never) turn out to be true, so a bit like a one-man version of GS.
http://www.reuters.com/article/2015/09/19/us-usa-fed-idUSKCN0RJ0VH20150919
A divided Fed pits world's woes against domestic growth
NASHVILLE, Tenn | By Howard Schneider and Jonathan Spicer
Federal Reserve policymakers appeared deeply divided on Saturday over how seriously problems in the world economy will effect the U.S., a fracture that may be difficult for Fed Chair Janet Yellen to mend as she guides the central bank's debate over whether to hike interest rates.
Though last week's decision to again delay an interest rate increase was near-unanimous, drawing only one dissent, St. Louis Fed President James Bullard called the session "pressure-packed" as members debated whether global uncertainty or the continued strength of the U.S. economy deserved more attention.
In the end the committee felt that tepid global demand, a possible weakening of inflation measures, and recent market volatility warranted waiting to see how that might impact the U.S.
Bullard, who does not have a vote this year on the Fed's main policy-setting committee, said he would have joined Richmond Fed President Jeffrey Lacker's dissent, and worried the central bank had paid too much attention to recent financial market gyrations.
Markets sold off sharply this summer over concerns about a slowdown in China and weak world growth, leaving Fed officials to vet whether that reflected a short-term correction or more fundamental problems on the horizon.
"Financial markets tend to wax and wane, sometimes suddenly. Monetary policy needs to be more stable," said Bullard, who in prepared remarks here to the Community Bankers Association of Illinois said he did not think the Fed "provided a satisfactory answer" to why rates should stay near zero.
The economy is near full employment, and inflation will almost certainly rise, Bullard said, leaving the Fed's near seven-year stay at near zero rates out of line with the broad economic picture.
In a statement Lacker said he felt the current low rates "are unlikely to be appropriate for an economy with persistently strong consumption growth and tightening labor markets."
However at least for now the Fed set aside such concerns out of deference to a different worry: that a weak global economy may pull down the U.S. Specifically Fed officials, including Yellen, said a dip in measures of inflation expectations was worrisome if it proves to reflect eroding confidence in the recovery.
The expectations of businesses and consumers about inflation is thought to play an important role in the actual pace of price increases, as well as in decisions about savings, investment and consumption that are central to economic growth.
San Francisco Fed President John Williams in remarks on Saturday laid out the case for caution, and suggested he and others now want more proof before a rate hike. Williams said he still expects rates will rise this year as the "disinflationary" impact of low oil prices and other outside influences fades, and the U.S. economy continues to expand.
Still, "getting some more clarity around what is really happening in the global economy, how is that affecting the U.S. economy, and also seeing continued progress in the U.S. economy -- these are all things I'm watching," Williams told reporters when asked about a possible rate rise in October.
Williams, who is among the regional bank presidents who does vote on interest rates this year, declined to specify whether he sees October or December as the appropriate time to go.
The Fed next meets in October and again in December.
Thirteen of 17 Fed members last week said they still expect to hike rates this year.
"The economy is near full employment". Has he seen labor participation? Oh,yeah.That is a real stat.Never mind.
Can a presidential election take place next November if the corrupted US financial system has collapsed and there is widespread anarchy on the streets?
That would be a crises made in heaven. Voters would be clamouring for another Moses to lead them out of the wilderness. And they'll get one - good and hard.
ZIRP is forever. They will let the dollar hyperinflate first.
Martin has been saying this for a long time. Could ZIRP go on indefinitely? It's gone on years longer than anyone could have imagined and shows no signs of moving.
No. Yellen is the nightmare.
5 basis points.
things will not change until it goes to the streets.
maybe trump will tell americans the truth, we're in the middle of becoming part of the NWO, and our contribution is our financial assets, ie Obama, redustibution, and open borders, entitlements soaring, this is not an accident, and that's plain enough for everyone to see.
my guess is the fed will raise rates shortly after carters income tax rates are put back into affect which will be nesacery, the bottom 70% of Americans are just a break even tax, and spend.
remember the $250,000.00 yearly income we all heard about at election time 2007, your in the cross-hairs.
as long as you have the BIS, "fed ecb, boj, boe" in control of your countries monetary system, your political , financial, and judicial systems, are near meaningless as seen in the recent past.
I commented earlier, and I just want to repeat myself, google Americas 1933 BANKRUPTCY, it's makes things happening now clearer.
Years ago someone brought up the Tobin tax to try and slow down the velocity of money sloshing around the planet.Point zero one of one percent,something miniscule and you should've heard those WallStreet yahoos screaming like someone set their balls on fire.That was then. Now the guillotines are coming out.The military will insist that someone take the fall.
"...the Fed and they will be forced to raise rates only when they see asset inflation in equities" Huh? That's the whole point of what they are doing.
Yellen - dumb bitch, ya thunk?! I think NOT! "It" knew EXACTLY "Waz up" but just couldn't "resist". Greenspan/Bernanke/Yellen, ALL puppets of the "Fraud Preserve". A PRIVATE preserve within which the debtors are the game.
Yo, Martin, I call. Bring it on, bring it on! Time for [some of] those unrepentant urban soon-to-be desparate zombies, Eric-the-race-baiter-Holder-fast-and-furious-funded gangsters, local federally-funded addled knuckle-dragger SWAT-team members to meet the Maker! I am literally "Fed" up!
Hey BIG JIM.
Since you don't like the way Martin writes do you have the BIG JIM balls to create a web site and put out the stuff that he has done. NOT. You are just another asshole in the mix.
AG
All that is nice, but with corporate debt, our clients are locking in long-term at these levels, not funding anything short-term."
What difference does this make?
Corporations are responsible for the original mess, while the Fed is responsible for compounding it with policies that couldn't work because the original mess was fatal.
These same bastards borrow today to fund share buybacks, NOT capex.
They not only destroyed our middle class economy with mindless outsourcing (which they STILL do), but they can't even generate legitimate top-line growth to justify equity value.
It makes NO difference what corporate debt terms are, they're done when we're done. They have just been too greedy and stupid to get that.
Government spends more than it takes in, and never gave a damn what the terms to finance were. They, too, will go boom when the rest of us do.
The Fed will have to be terminated; it will not self-destruct as long as it can create currency PRN. The sooner the people demand that the congress pull it's plug, the better our chances are to build anew once what's coming abates a little (maybe). That won't be for a generation or two, though.
What's coming STARTS with the EM's and especially, China. WE enabled its construction, and WE (along with them), will suffer the consequences for what western corporate insanity has wrought.
The Fed may be able to print dollars to buy dumped Treasuries (as the EM's have started to do), BUT they can't print someone ELSE'S currency to buy dollars that are dumped.
It begins abroad, I think...
...and soon.
m
Why is the Fed so concerned about inflation?..get too much inflation above today's ZIRP rates and people will not lend money..no lending.. leads to higher interest rates...can't have that to fund gov't debts..so I would think that the Fed would look at deflation as their friend...but I never receive that message from any source..
The sad fact is, most people will never see it, or the connection between Fed policies and the ultimate disaster. If people had that capability, all hell would have already broken loose, because, the Fed has never had control over the economy. The Fed only gets away with what it does because our monetary system is too complicated and opaque for the average citizen to understand. For that reason, the Fed can claim to be doing amazing things and most people are none the wiser. Those who suffer most from Fed monetary actions will only see the final consequences where the rubber meets the road, and blame the most immediate deliverers of the shit when it comes down. Mind you, these are people who blame their local gas station owners whe gas prices go up. And who can blame them, when half their elected representatives in congress don’t understand what the Fed does or how our monetary system works either.
You want to see how well they have managed the Federal Debt through Private Reserve owned by Stockholder "interest rate"?
- and you want to know that in fact they have been thinking this way, proof?
2014 Total--Interest on the Public Debt = $429.568 Billion
2013 Total--Interest on the Public Debt = $415.670 Billion
2003 Total--Interest on the Public Debt = $318.149 Billion
2002 Total--Interest on the Public Debt = $332.537 Billion
2001 Total--Interest on the Public Debt = $359.508 Billion
2000 Total--Interest on the Public Debt = $362.118 Billion
1999 Total--Interest on the Public Debt = $353.511 Billion
1998 Total--Interest on the Public Debt = $363.824 Billion
- Not much change, aye?
- Coordinated Efforts
- Internal Coordination if not European Coordinate, G20, G7
Remember the Fed has bought about 1/3 of this junk, and they RETURN the interst payments to the Treasury. So these numbers are inflated.
Remember the Fed has bought about 1/3 of this junk...
Commission free because they care. /s
First, they pay themselves an annual 6% dividend and rake off all their expenses and then they return what's left to the Treasury.
Not Martin Armstrongs most detailed post.
-
We are all interested, so why not spout off about things in detail?
"The Fed is also caught between domestic policy objectives that dictate they MUST raise rates of they will bankrupt countless pension funds and international where emerging markets will go into default because commodities have collapsed and they have no way of paying off this debt that has risen to about 50% of the US national debt."
- Great, that is helpful
- As Martin Armstrong has said before the US Bond Market is 8 times bigger than our Stockmarket
- Seems likely that fixed income people, elderly, infirm, retirees, dependents like kids are stuck growing poorer
- Seems likely the cost increases in executive compensation means that legal fees are going up, court costs are going up, Medical costs are sky-rocketing, drugs costs are way too high, insurance often enables high costs
- But the Rich in Washington DC don't give a damn about the common people
- And Market are perverted, corporations become hoarders and looters of funds and other corporations
- Somehow Bonds, the Bond Market has become distorted, our US Financial System has become distorted, we are all vulnerable to companies going out of business, not providing their services to us, and being slammed... Literally being slammed by different sectors or industries that can't provide the services or products that we depend on
- Somehow Investors, will also be slammed by collapse of businesses
But, have to say for Martin Armstrong, his videos are much better than this blurb.
There is an equal chance for "hell about to break loose" as there is a "long grind...Japan style". An obfuscated mind often spin out of pains than realities i.e. the new normal of peak debt, deformed markets and collapsing price discoveries. Normalization of interest rate is the panacea for this New Normal...Really ?
Martin, with all due respect, get an editor.
And you have way too much time on your hands. Get a life?
American middle class should sit down and calculate how much they spend on fast food. restaurans annually, then sit down and see how much interest they are paying for their home, car, CC's. etc.
They will be quite shocked.
Most people never heard of a budget book. or a budget
"Worse", Martin. "Worse".
"...they have the IMF and the world pleading with them not to raise rates for it will hurt other debtors who borrowed excessively using dollars ..."
"The Fed is also caught between domestic policy objectives that dictate they MUST raise rates..."
"By avoiding the normalization of interest rates (hikes), the Fed has encouraged government to spend far more than they realize because money is cheap."
Totally wrong analysis.
Pleading from anywhere has nothing to do with monetary policy.
Policy objectives are a sham and always have been.
Government spending has nothing to do with rates. Do they cut back when rates are high? NO! Governments spend as much as necessary to underwrite the creation of currency. What they spend it on is discretionary. The fact that they will spend it is not.
The Debt-Based-Fiat-Currency-System uses a face value of debt to secure the creation of an equal amount of currency.
But the debt side of the currency bears an interest rate, while the currency side does not.
The result is that there is never enough money to pay both the debt and the interest. Not enough money anywhere. NEVER. Because that is the design of the currency system.
Instead new debts must be taken on that are equal to the size of the old debt plus accumulated interest. That new debt will then underwrite the creation of an amount of currency equal to its face-value...and the game begins again.
o THIS MEANS THAT A FAILURE TO EXPAND DEBT WILL CAUSE THE CURRENCY SYSTEM TO COLLAPSE.
o THIS MEANS THAT THE VERY DESIGN OF THE CURRENCY SYSTEM IS GEARED TOWARDS CONTINUOUS MONETARY AND PRICE INFLATION.
(Stick that in your mandate, Fed.)
o THIS MEANS THAT THE DESIGN OF THE SYSTEM EXPLICITLY AND INTENTIONALLY PUNISHES SAVINGS, AND SUBSIDIZES BORROWING.
o THIS MEANS THAT THE DESIGN OF THE SYSTEM EXPLICITLY AND INTENTIONALLY DELIVERS GREATER WEALTH TO FINANCIAL BUSINESSES, AND CENTRAL BANK CRONIES THAN IT DOES TO ANYONE ELSE...INCLUDING ANY AND ALL 'PRODUCTIVE' LABOR.
This last one is the Gem because it is the consequence of using a Ponzi-scheme for a currency system:
o AND FINALLY THIS MEANS THAT THE PORTION OF EACH DEBT ROLL-OVER THAT IS ACCUMULATED INTEREST CONTINUALLY INCREASES, WHILE THE PORTION THAT IS 'PRINCIPAL' (representing real physical things) IS EVER DECREASING. AND WHEN THERE IS TOO LITTLE PRINCIPAL (real stuff) TO SERVICE THAT ACCUMULATED DEBT (theoretical) EITHER REAL INTEREST RATES MUST COME DOWN OR THE CURRENCY SYSTEM COLLAPSES...BECAUSE (going back to the original point) THERE IS NEVER ENOUGH MONEY TO PAY OFF BOTH THE DEBTS AND THE INTEREST, BUT THE INTEREST GETS PAID FIRST (meaning that any default in a unit of debt wipes out the currency needed to service other debts in a chain reaction).
The currency system is itself a pyramid scheme.
Get it?