Socio-Economics History Blog

Socio-Economics & History Commentary

David Stockman: We Are Nearing the End !

  • David Stockman: We Are Nearing the End! Investors Heading for Slaughter One More Time. 
    by Greg Hunter’s USAWatchdog.com  (Early Sunday Release) 
    Former Reagan White House Budget Director David Stockman says retail investors are going to take, yet, another very big hit. Stockman explains, “The retail investor waded in again. The sheep lined up and, unfortunately, are heading for the slaughter one more time. I think it is very hard to see how this Baby Boom generation, with 10,000 of them retiring a day, can afford one more devastating crash in their stock holdings. That is, unfortunately, what we are heading for. That’s why I say it’s dangerous. When the bubble breaks, it will spill and flow throughout the Main Street economy.”

    Stockman warns the next crash will be bigger than any other in history. Stockman, the best-selling author of “The Great Deformation,” says, “I think we have been building a bubble year by year since the early 1990’s. The earlier crashes that we are so familiar with, Dot Com and the Housing Crash, were only interim corrections that were not allowed to work their way clear. The rot was not effectively purged from the system because central banks jumped back in within months of the corrections and doubled down in terms of the stimulus and liquidity that they pumped into the market.”

    Stockman contends that “you simply cannot fake your way in this market any longer.” Stockman explains, “I have pointed out that Wall Street continually tells you that the market is not that overvalued. . . . I have pointed out . . . actual earning are down 15%. The market is expensive, it is exceedingly expensive, and it’s really . . . 21 times earnings. Therefore, the whole bubble vision on valuations of the market is terribly misleading. Even the Wall Street version of earnings is going to be hard to maintain when the global recession sets in, and then investors are going to suddenly discover that the market is drastically overvalued. They are going to want to get out, and they are all going to want to get out all at the same time. That creates the kind of selling panics that can take the market down. We have kind of been in no man’s land for the last 700 days. The market is struggling to stay above 1870 on the S&P 500. It first crossed that level in late March 2014. It has had 35 efforts to rally and break to new highs. None of them have been sustained. My point about all that is that’s the way bull markets die.”

    Stockman contends, “We are nearing the end. I think the world economy is plunging into an unprecedented deflation recession period of shrinkage that will bring down all the markets around the world that have been vastly overvalued as a result of this massive money printing and liquidity flow into Wall Street and other financial markets.”

    read more.

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February 1, 2016 Posted by | Economics | , , , , , , , , , , , , , , , , | 1 Comment

Nomi Prins: We Are Getting To The End — The Collapse of the Western Banking and Economic System!

  • Published on Jan 31, 2016
    Nomi Prins, the Best selling author of All The President’s Bankers, joins me to document the collapse of the western banking and economic systems. Nomi says, “We’re getting to the end of what’s possible in terms of stimulation, I would have thought the end should have happened years ago. But the reason it didn’t was because of the epic coordinated efforts between the major central banks… and that element has left markets with the APPEARANCE of health they haven’t actually had because of true growth. And there’s only so much you can do of that. These are desperate actions.” You can read Nomi’s Financial roadmap for 2016 at her website NomiPrins.com 
    http://www.nomiprins.com/

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February 1, 2016 Posted by | Economics | , , , , , , , , , , , , , , | Leave a comment

Japan Just Lit the Fuse on a $9 Trillion Debt Bomb

USDX_chart_after_ECB_NIRP

Financial collapse time bomb!

Financial collapse time bomb!

  • Japan Just Lit the Fuse on a $9 Trillion Debt Bomb
    by Phoenix Capital Research, http://www.zerohedge.com  
    On Friday the Bank of Japan implemented Negative Interest Rate Policy, or NIRP. It is the second Central Bank to do so. The European Central Bank or ECB first went to NIRP in June 2014. Thus, between Japan and Europe, over 20% of the world’s GDP is being managed by a Central Bank with NIRP. More importantly, TWO major currencies in the world are now at NIRP while the US Dollar is at 0.5%. Why does this matter?

    Because hundreds of billions of Dollars in capital will be fleeing Japan to come to the US. The US Dollar has been in a bull market since mid-2014. It is not coincidence that it started when the Euro first went to NIRP: the minute the ECB implemented NIRP money began fleeing the Euro and moving into the US Dollar. (chart top of post)

    To put this into perspective, this move was larger in scope than the “flight to safety” that occurred in 2008 when everyone thought the world was ending. The reason this is problematic?

    There are over $9 trillion in BORROWED US Dollars sloshing around the financial system.

    And much of it is parked in assets that are denominated in emerging market currencies (the very currencies that have imploded as the US Dollar rallied). This is the US Dollar carry trade… and it is larger in scope that the economies of Germany and Japan… combined. ALL of this DEBT is at risk of blowing up when the US Dollar began to rally. And now that both Europe AND Japan are implementing NIRP, the US Dollar bull market is only going to get worse.

    How bad?
    The US Dollar has broken out of the single BIGGEST falling wedge pattern in history. You are looking at a 40 year chart pattern that has been broken.

    read more.

USDX_chart_1980s-2016

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February 1, 2016 Posted by | Economics | , , , , , , , , | Leave a comment

“Pandora’s Box Is Open”: Why Japan May Have Started A ‘Silent Bank Run’

Japan-Yen-Suicide

  • “Pandora’s Box Is Open”: Why Japan May Have Started A ‘Silent Bank Run’
    by Tyler Durden, http://www.zerohedge.com  
    As extensively discussed yesterday in the aftermath of the BOJ’s stunning decision to cut rates to negative for the first time in history (a decision which it appears was taken due to Davos peer pressure, a desire to prop up stock markets and to punish Yen longs, and an inability to further boost QE), there will be consequences – some good, mostly bad.

    As Goldman’s Naohiko Baba previously explained, NIRP in Japan will not actually boost the economy: “we do have concerns about the policy transmission channel. Policy Board Member Koji Ishida, who voted against the new measures, said that “a further decline in JGB yields would not have significantly positive effects on economy activity.” We concur with this sentiment, particularly for capex. The key determinants of capex in Japan are the expected growth rate and uncertainty about the future as seen by corporate management according to our analysis, while the impact of real long-term rates has weakened markedly in recent years.”

    What the BOJ’s NIRP will do, is result in a one-time spike in risk assets, something global stock and bond markets have already experienced, and a brief decline in the Yen, one which traders can’t wait to fade as Citi FX’s Brent Donnelly explained yesterday

    NIRP will also have at most two other “positive” consequences, which according to Deutsche Bank include 1) reinforcing financial institutions’ decisions to grant new loans and invest in securities (if only in theory bnecause as explained further below in practice this may very well backfire); and 2) widening interest rate differentials to weaken JPY exchange rates, which in turn support companies’ JPY-based sales and profit, for whom a half of consolidated sales are from overseas.

    That covers the positive. The NIRP negatives are far more troubling. The first one we already noted yesterday, when Goldman speculated that launching NIRP could mean that further QE is all tapped out:

    read more.
9 Jan 1988 cover, The Economist: Get Ready for a World Currency by 2018! The Rise of the Phoenix world currency from the ashes of national fiat currencies ie. destruction of fiat currencies via hyperinflation. "Phoenix" is of course an occult metaphor. Out of the destruction, the ashes of the old world order, the Luciferian New World Order will rise like a Phoenix!

9 Jan 1988 cover, The Economist: Get Ready for a World Currency by 2018! The Rise of the Phoenix world currency from the ashes of national fiat currencies ie. destruction of fiat currencies via hyperinflation. “Phoenix” is of course an occult metaphor. Out of the destruction, the ashes of the old world order, the Luciferian New World Order will rise like a Phoenix!

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February 1, 2016 Posted by | Economics | , , , , , , , , , | Leave a comment

The Disturbing Reasons Why The Bank Of Japan Stunned Everyone With Negative Rates

Reuters-BOJ-No_NIRP

  • The Disturbing Reasons Why The Bank Of Japan Stunned Everyone With Negative Rates
    by Tyler Durden, http://www.zerohedge.com 
    As we noted earlier, in a paradoxical U-turn, one which caught everyone by surprise as a result of Kuroda’s own promise just one week ago not to engage in NIRP… 

    … and two months after the ECB’s December 3 disappointing announcement led to a historic surge in the EUR, today countless macro hedge funds have been left reeling with huge losses once again, as many had recently turned bullish on the Yen… 

    … only to be eviscerated by the BOJ’s negative rates announcement. So what happened? Reuters has an amusing take, one which we doubt many macro HFs will find quite entertaining:

    Bank of Japan Governor Haruhiko Kuroda used classic shock tactics on Friday to push through his latest unconventional monetary policy of negative rates: deny, then strike

    The paradox, of course, is that by “striking”, Kuroda slammed precisely those who were meant to benefit the most from the BOJ’s action: financial institutions. To be sure, it is not just hedge funds who will be left reeling but Japanese banks themselves, because as a result of negative rates, their NIM will go horizontal and lead to even more pronounced losses, something European banks – such as Deutsche Bank – have discovered the hard way over the past year and a half.

    There are other problems with the BOJ’s seemingly chaotic, if not panicked, decision: as Reuters adds, “a razor-thin 5-4 vote underscores the difficulty Kuroda had in winning enough board backing for his shock tactic, and illustrates the doubts among board members about the governor’s line that by sticking to a 2 percent inflation goal the BOJ can make people believe prices will rise.”

    In a note released this morning, Goldman itself warns that it has “concerns” about Kuroda’s act, the key one being that while it crushed many market participants, the BOJ’s action will have no benefit for the actual economy (and in fact it will end up hurting banks whose NIMs are about to pancake):

    read more.
9 Jan 1988 cover, The Economist: Get Ready for a World Currency by 2018! The Rise of the Phoenix world currency from the ashes of national fiat currencies ie. destruction of fiat currencies via hyperinflation. "Phoenix" is of course an occult metaphor. Out of the destruction, the ashes of the old world order, the Luciferian New World Order will rise like a Phoenix!

9 Jan 1988 cover, The Economist: Get Ready for a World Currency by 2018! The Rise of the Phoenix world currency from the ashes of national fiat currencies ie. destruction of fiat currencies via hyperinflation. “Phoenix” is of course an occult metaphor. Out of the destruction, the ashes of the old world order, the Luciferian New World Order will rise like a Phoenix!

http://www.newdawnmagazine.com/Article/A_Global_Central_Bank_Global_Currency_World_Government.html

Click on image for article.

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January 30, 2016 Posted by | Economics | , , , , , , , | Leave a comment

Helicopter Money Arrives: Switzerland To Hand Out $2500 Monthly To All Citizens

http://www.dailymail.co.uk/news/article-3422775/Swiss-government-proposes-paying-1-700-month-work-not-bid-end-poverty-insists-people-want-job.html#ixzz3yeIQHSc1

WooHoo! Show me the money! Click on image for article.

helicopter-money-drop

  • Do you smell a Global Currency Crisis? Helicopter money and NIRP means the death of fiat currency ie. hyperinflation! Got physical gold yet?
  • Helicopter Money Arrives: Switzerland To Hand Out $2500 Monthly To All Citizens
    by Tyler Durden, http://www.zerohedge.com  
    With Citi’s chief economist proclaiming “only helicopter money can save the world now,” and theBank of England pre-empting paradropping money concerns, it appears that Australia’s largest investment bank’s forecast that money-drops were 12-18 months awaywas too conservative. While The Finns consider a “basic monthly income” for the entire population, Swiss residents are to vote on a countrywide referendum about a radical plan to pay every single adult a guaranteed income of around $2500 per month, with authorities insisting that people will still want to find a job.

    The plan, as The Daily Mail reports, proposed by a group of intellectuals, could make the country the first in the world to pay all of its citizens a monthly basic income regardless if they work or not.  But the initiative has not gained much traction among politicians from left and right despite the fact that a referendum on it was approved by the federal government for the ballot box on June 5.

    Under the proposed initiative, each adult would receive $2,500 per months, and each child would also receive 625 francs ($750) a month.

    The federal government estimates the cost of the proposal at 208 billion francs ($215 billion) a year.

    Around 153 billion francs ($155 bn) would have to be levied from taxes, while 55 billion francs ($60 bn) would be transferred from social insurance and social assistance spending.

    That is 30% of GDP!!!

    The action committee pushing the initiative consists of artists, writers and intellectuals, including publicist Daniel Straub, former federal government spokesman Oswald Sigg and Zurich rapper Franziska Schläpfer (known as “Big Zis”), the SDA news agency reported. Personalities supporting the bid include writers Adolf Muschg and Ruth Schweikert, philosopher Hans Saner and communications expert Beatrice Tschanz. The group said a new survey showed that the majority of Swiss residents would continue working if the guaranteed income proposal was approved.

    read more.

Mario_Draghi_hyperinflation_helicopters

Super_mario_draghi_going_for_breakfast

Shinzo_Abe_QE_to_Infinity_n_Beyond

We will all be trillionaires but can't afford breakfast !

We will all be trillionaires but can’t afford breakfast !

Feel free to wipe your ass with it.

Feel free to wipe your ass with it.

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January 30, 2016 Posted by | Economics | , , , , , , | Leave a comment

Bill Holter: You’re Witnessing The Credit Structure Unwinding

January 30, 2016 Posted by | Economics | , , , , , , , , , , , , , , , , , | Leave a comment

An Unavoidable Banking System Collapse And The Winds Of War

WW3 is near?

WW3 is near?

  • An Unavoidable Banking System Collapse And The Winds Of War
    by Dave Kranzler, http://investmentresearchdynamics.com/  
    We are confronted by a geopolitical situation perhaps as dangerous as any we have faced since World War II: chaos and extremism in the Middle East, Russian aggression and expansion, and a weakened Europe threatened by horrendous unemployment, in no small measure caused by a failure to tackle structural reforms in many of the countries which form part of the European Union,” wrote Jacob Rothschild, a British investment banker and a member of the prominent Rothschild family, in an annual Strategic Report of RIT Capital Partners plc (RIT) – Dark Clouds Forming In Europe 

    Those are fighting words.  Throughout history the underlying cause has always been the constant:  an Empire in collapse.  On the surface the Empire appears to be the United Stats. But a lot of very bright people with whom I’ve been associated over the years would argue that the nexus of the Empire is the mysterious City of London.  To be sure, if the western Empire is interconnected by the bankers, the Rothschild family has its fingerprints all over the Fed, the Bank of England and the ECB – and the BIS.

    The above statement by Jacob Rothschild might seem irrelevant on its own.  But in the context of the fact hat U.S. Government has been the inflammatory source of the geopolitical tensions described above, Rothschild’s commentary should be examined in the context of the war powers that Congress is about to serve up on a silver platter to the occupant of the Oval Office.  Or, should I say, the powers that stand incognito behind the sock-puppet who masquerades as Commander-In-Chief.

    Today – January 26 –  the Senate will discuss a Joint Resolution slipped into the agenda – LINK, see the last entry – by Mitch McConnell which will give the President the ability to exercise war powers unilaterally without Congressional approval on pretty much anything considered Muslim.  Ron Paul has described McConnell’s proposal as “the most massive transfer of power from the Legislative to the Executive Branch  in our history.”  LINK 

    Here’s the McConnell resolution:   (a) In General.–The President is authorized to use all necessary and appropriate force in order to defend the national security of the United States against the continuing threat posed by the Islamic State of Iraq and the Levant, its associated forces, organizations, and persons, and any successor organizations.”

    This is how it compares to the resolution passed in 2001, which triggered the war on “terror:”   The resolution passed in 2001 only authorized force to be used concerning those involved in the eventsof September 11, 2001, but it has been wrongly used to justify all sorts of activity and force that it clearly has nothing to do with.  But this proposed S.J. Res. 29 has no limit.

    One minor correction.  This Resolution is limited by Section 5b of the War Powers Resolution passed in 1973 which requires that the President check in every 60 days with Congress once he’s initiated war activity on suspected “terrorists”.  Guess what?  If you have a beard and suntan, you are a suspected terrorist by the terms of the McConnell proposed legislation.

    read more.

bankster_war_debt_creation_financing_both_sides

Ron_Paul_No_Coincidence_Century_of_total_war_coincided_with_century_of_Central_Banking

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January 30, 2016 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , , , , , , , , , , | Leave a comment

Jim Rickards: The Case for Gold as the FedRes ‘Tightens into Recession’

  • Published on Jan 28, 2016
    Saudi Arabia says it’s ready to cooperate on pulling back crude output and George Soros made some bearish comments on China. Ameera David weighs in. Then, Ameera is joined by Jim Rickards – author of “The New Case for Gold” – to talk about the Fed. 


    After the break, Bianca Facchinei takes a look at Sweden’s plan to deport at least 80,000 refugees. Afterwards, Ameera and RT correspondent Lindsay France talk about police surveillance. And in The Big Deal, Ameera and Edward Harrison discuss the latest in Brazil.

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January 30, 2016 Posted by | Economics, GeoPolitics, Social Trends | , , , , , , , , , , , , , , , , , | Leave a comment

Gerald Celente: Get Prepped For Global Systemic Collapse!

  • Gerald Celente: Get Prepped For Global Systemic Collapse 
    by http://investmentresearchdynamics.com/ 
    More ridiculous predictable market action today. The worse things become in the real world the more frantic the stupidity becomes. The American authorities are clearly terrified that their world role as hegemon is being threatened and it is not beyond the realm of possibility that your fears of war will turn out to be a reality.
    – John Embry

    It was reported yesterday that a Government panel is recommending that all adults over the age of 18 should be screened for “depression” – LINK. Nothwithstanding the fact that the term “depression” is a subjective concept, it exemplifies the move in the Government to control the population. It’s a frightening movement toward Totalitarianism that has been in motion since the formation of the Federal Reserve and the ratification of the16th Amendment, giving the Federal Government authority to enact an income tax. Both events occurred in 1913.

    Make no mistake about it, the Government panel’s recommendation, if it finds its way somehow through Congress, is an underhanded way for the Government to implement gun control. We can’t have depressed people running around with guns in their possession. In addition, there’s no doubt that one of the big drug or hospital corporations has devised some sort of “depression screening” protocol which generates very high margin profits. Even better if the testing is covered by Medicare and Medicaid so the taxpayers can fill yet another big trough from which corporate America feeds.

    The irony in the Totalitarian creep of the Federal Government is that humans don’t like the idea that they can’t control their immediate lives and living environment. Thus, they want to believe with surprising adamance that their vote matters – that they can control the outcome of an election with their “participation” in the process. Of course, nothing could be farther from the truth. The fact of the matter is that the modern Presidential process has become little more than the political version of “The Jerry Springer Show.” It’s like watching a slow motion train wreck repetitively with the now-frequent “debates” and “town hall” meetings.

    read more.

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January 29, 2016 Posted by | Economics, GeoPolitics, Social Trends | , , , , , , , , , , , , , , , , , , , , , , , | Leave a comment

A Bold Warning: Financial Meltdown Imminent

  • Published on Jan 28, 2016
    On today’s show, economic expert Harry Dent breaks down the floundering global market and what it portends for the US dollar.

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January 29, 2016 Posted by | Economics | , , , , , , , , , , , | Leave a comment

The War on Cash: An Open Source Investigation

  • Published on Jan 27, 2016
    Link to the article: https://www.corbettreport.com/?p=17539  

    We’ve all seen bits and pieces of the cashless society agenda unfolding around us, from cash restrictions to cashless banks to calls for the outright elimination of cash. But are you aware of just how widespread this agenda is? Join me as I try to compile a comprehensive list of moves toward the cashless society in countries around the world.
  • The War on Cash: A Country by Country Guide
    by James Corbett, corbettreport.com 
    Corbett Reporteers will be no stranger to the war on cash. I’ve made videos discussing it, conducted interviews about it, written articles examining it and dissected it on the radio. The war has been waged through mainstream propaganda outlets, TV advertisements and even children’s games

    We’ve heard cash is dirtied by drug dealing,tarnished by terrorism, tainted by tax evasion(heaven forbid!) and just plain dirty. Not to mention sooooo outdated

    Just this week Norway has jumped aboard the cashless society agenda with DNB, the country’s largest bank, calling for a total end to cash. The story only sounds shocking because people haven’t heard the similar stories from Sweden or Denmark or India or Israel or any of the dozens of other countries whose banksters and (bankster-controlled) governments have openly lusted after a world of completely trackable, completely bank-controlled transactions.

    But all of these stories, reported piecemeal here and there over the years, doesn’t give the full story about how this “war on cash” is being waged on every continent and in every country by the same banksters that stand to benefit from a cashless world. Let’s fix that by compiling a list of examples from around the world of how cash payments are being regulated, restricted and phased out. The list below will be updated as new stories come in.

    If you have a link to relevant news from your own country or know of such news from another country, please let us know. Corbett Report members are invited to contribute to the list by logging in and leaving links to the relevant info in the comments below.

    The Cashless Society List

    read more.
http://www.thenewamerican.com/tech/item/18619-establishment-pushing-cashless-society-to-control-humanity

Click on image for article.

http://www.ft.com/intl/cms/s/0/159b17ca-47f3-11e5-b3b2-1672f710807b.html

Click on image for article. Needs subscription.

http://www.armstrongeconomics.com/archives/30862

Click on image for article.

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January 29, 2016 Posted by | Economics, EndTimes, Social Trends | , , , , , , , , , , , , | Leave a comment

ELITE PLANS FOR 2016: A New DVD From Pastor Lindsey Williams

  • ELITE PLANS FOR 2016 – A New DVD From Pastor Lindsey Williams
    by James Harkin, http://www.lindseywilliams.net/ 
    * Who will be the next president of the U.S.?
    * Why no financial collapse in 2015?
    * Hear from someone in contact with the Elite.
    * Political Correctness.
    * Five firearms every American should own.
    * Is war inevitable?

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January 28, 2016 Posted by | Economics, GeoPolitics, Social Trends | , , , , , , , , , , , , , , , , , , , | Leave a comment

Deutsche Bank Declares War On Mario Draghi, Warns Him Any Further QE Will Push Stocks Lower

Mario_Draghi_QE-Europe_collapsing_ECB

  • Deutsche Bank Declares War On Mario Draghi, Warns Him Any Further QE Will Push Stocks Lower
    by Tyler Durden, http://www.zerohedge.com  
    In what is the first official warning to a central bank to no longer do what has been done so far for seven years, earlier today Deutsche Bank came out with a startling presentation addressed to Mario Draghi, warning him explicitly that any more QE will not only not help stocks (and certainly not DB stock which continues to plumb post-crisis lows on fears it is overexposed to the commodity crunch and potentially such names as Glencore and various other commodity traders), but will actually push equities lower.

    Here is the key segment from a report just released by the bank’s European Equity Strategy: 

    While the outlook for more ECB easing has buoyed equity markets, we think it could turn out to be a negative for risk over the coming months, as it is likely to lead to further dollar strength, which in turn is set to translate into additional downside pressure on the oil price, further balance sheet stress in the US energy space and higher US high-yield credit spreads . Our models suggest that European equities are fairly valued, given the current level of US high-yield spreads. If more dollar strength and weaker oil lead US speculative default rates to rise above the level of around 4% currently priced into the credit market, this could mean more upside risk for HY credit spreads and more downside risk for equities over the coming months.

    read more.

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January 28, 2016 Posted by | Economics | , , , , , , , , , , | Leave a comment

Nomi Prins: Central Banks in Panic Mode? Gold & the Potential Ban of Cash, TBTF Banks …

  • Published on Jan 26, 2016
    https://www.goldbroker.com/news/nomi-…  

    Dan Popescu’s exclusive interview with Nomi Prins : 
    – International codependency of countries 
    – Have central banks reached their limit? 
    – Are central banks in panic mode? 
    – Too big to fail banks 
    – Gold and the potential ban of cash 
    – Gold vs the US dollar 
http://english.pravda.ru/news/business/19-05-2015/130638-cash-0/

Click on image for article.

http://www.infowars.com/federal-reserve-manufactures-greater-recession/

Click on image for article.

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January 28, 2016 Posted by | Economics, EndTimes, GeoPolitics, Social Trends | , , , , , , , , , , , , , , , | Leave a comment

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