Socio-Economics History Blog

Socio-Economics & History Commentary

Jim Willie: For Auld Lang Jackass

Click on image to download MP3 interview.

Click on image to download MP3 interview.

  • Jim Willie: For Auld Lang Jackass
    by Turd Ferguson, http://www.tfmetalsreport.com/
    One year ends and a new one begins. That means it’s time to take stock of where we’ve been and where we’re going and few are better at pointing the way than The Golden Jackass. For this call, I asked Jim to primarily focus his comments on three, specific areas of interest for 2017:

    1. The global bond market, QE and interest rates
    2. The Italian and Eurozone banking sector
    3. The Trump Administration versus The Established Elites

    As usual, I think you’ll find this entertaining and very informative. Enjoy the show and be sure to have a safe and relaxing New Year’s weekend.

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January 2, 2017 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , , , , , , , | 1 Comment

Warren Pollock: Clinton & Trump Will Fight to the Death. Trump Inherits Political and Economic Titanic

  • Warren Pollock: Clinton & Trump Will Fight to the Death. Trump Inherits Political and Economic Titanic 
    by Greg Hunter’s USAWatchdog.com 
    Analyst and financial expert Warren Pollock says Donald Trump has been dealt a horrendous hand when it comes to the political environment and the economy. Pollock explains, “Trump inherited the Titanic or a nuclear reactor that is about to explode.  As he tries to fix this giant mess, he’s bound to upset the apple cart.  The economy is fragile.  The society is fragile.  If he touches anything, something is liable to break somewhere.  People want Obama Care removed immediately.  They want to see the swamp drained immediately.  I think these are things he believes in, and he is certainly a pragmatic manager compared to Hillary Clinton, who would have been an utter disaster for everyone in this country. . . . The problem for Trump, besides the piranhas that are circling him, both the Democrats and Republicans, is that he has inherited the Titanic, which means he can cause us to sink faster simply by touching something.  That’s why Obama Care can’t be turned off overnight.  That’s why he can’t impose massive tariffs on China overnight.  Whatever he does will cause tremendous dislocations.  Any corrective action that he takes will have unintended consequences, and he understands that.  He’s a pragmatist, and I think he is prepared to deal with this.  All the people he has chosen, all have differing opinions, but they are all excellent in one way or another.”


    On the absence of real news reporting and real data, Pollock says, “If there is no news available, then they will just make stuff up. That’s the way our economy functions.  That’s the way the stock market functions.  That’s the way the bond market functions.  They were stealing from people for the last eight years with zero interest rates.  There is no capital formation.  Companies that do IPO’s (Initial Public Offerings), they are not giving you something to invest in, they are giving you their exit strategy.   So, everything is fake, and it gets very hard for an executive to make decisions based on fake information.  When some people take over a company, they are turnaround specialists.  That’s really what Trump has to be.”

    read more.

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December 29, 2016 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , | Leave a comment

The Establishment Is Setting Up The Economy To Come Crashing Down On Trump: Louis Cammarosano

December 29, 2016 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , , | Leave a comment

It’s The Dollar, Stupid!

The_Death_of_King_Dollar

  • It’s The Dollar, Stupid!  
    by Paul Brodsky via Macro-Allocation.com, http://www.zerohedge.com/
    We think the markets have it fundamentally wrong. US investors are anticipating a cyclical shift towards economic expansion via new tax incentives, business de-regulation and Keynesian government spending that promise to increase output, demand and asset prices. However, there is a far more influential driver of future asset prices – a structural shift that has begun but has yet to be acknowledged by economic and political authorities, and, judging by financial asset markets, by most investors. We expect weak equity markets and a strong treasury market beginning in 2017.


    It’s the Dollar, Stupid.
    The financial model used by advanced economies since 1971 is quickly losing its ability to support economic growth and rising asset prices.1 Western economic policy, which had previously relied heavily on credit creation from 1971 to 2008, was replaced in 2009 by monetary policy that relied heavily on base money creation through asset purchases. The structural shift in central bank focus from credit to monetary creation marked a paradigm shift in the decades-long finance-based economic model – from the leveraging phase to the de-leveraging phase.

    We expect debt deflation coincident with central bank monetary inflation, which would offset the deflation…on paper (like feet in the oven, head in the freezer producing a reasonable average). Before this occurs, we expect a financial or economic event that focuses public attention on the leverage problem.

    We expect global monetary authorities to protect the dollar as long as they can and we expect them to fail. Stocks and bonds will react violently; stocks and weak credits falling, treasuries prices rising (at first). That failure will lead to hyperinflation – not driven by demand, but rather by central bank money printing. A new global monetary understanding will then emerge.

    We expect weak equities and a strong treasury market in 2017, as they begin to discount this fundamental structural shift.

    read more.

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

India’s Prime Minister Has Singlehandedly Crushed the Economy with His Reckless Cash Ban

New Delhi : People standing in long queues to exchange their old Rs 500 and 1000 notes and withdraw cash from the ATM in New Delhi om Thursday.PTI Photo by Subhav Shukla(PTI11_17_2016_000041B)

New Delhi : People standing in long queues to exchange their old Rs 500 and 1000 notes and withdraw cash from the ATM in New Delhi om Thursday. PTI Photo by Subhav Shukla

india_cash_currency_ban

  • Why all the urgent, rash, thoughtless, desperate … actions to ban cash in India? I don’t think Modi is a dumb idiot not realizing the consequences of his actions. He is under orders from the Illuminati to push forward with this reckless cash ban. The Synagogue of Satan is running out of time to prepare the way for the coming of the Anti-Christ. Banning of cash, going totally into electronic transactions is a pre-requisite for microchipping the sheeple with RFID ‘666’.
  • India’s Prime Minister Has Singlehandedly Crushed the Economy with His Reckless Cash Ban 
    by Michael Krieger, https://libertyblitzkrieg.com/
    Today’s piece should be seen as a bit of a followup to yesterday’s post, India’s Demonetization Debacle Highlights the Dangers of Monetary Monopoly. While yesterday’s piece was more philosophical/strategic in nature, today’s zeroes in on some of the devastating real world impacts of Narendra Modi’s insane and inhumane cash ban. It’s hard to overstate the damage this policy has done to India’s economy. Modi is quickly solidifying his place as one of monetary history’s biggest idiots.

    First, let’s take a look at the destructive impact the move has had on India’s massive small businesses community. The Washington Post reports:
     Over the past two years, this suburb of New Delhi mushroomed into a flourishing enclave of small cellphone manufacturers, attracting tens of thousands of workers from the countryside. Noida, known as the “handset hub,” was touted as a showcase for Prime Minister Narendra Modi’s pet “Make in India” initiative.

    Then on Nov. 8, Modi’s government took a step that has jolted the bustling industrial quarter. It scrapped high-denomination currency, with a view, officials said, to curbing illicit wealth and the financing of terrorism. But the cash shortage triggered by the move has also curbed legitimate small enterprises. Many of Noida’s manufacturing units have slashed production by nearly half, and more than a quarter of the workers have gone back to their villages.

    read more.
http://english.pravda.ru/news/business/19-05-2015/130638-cash-0/

Click on image for article.

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

Click on image for article.

http://www.bloomberg.com/news/articles/2016-05-02/inside-the-secret-meeting-where-wall-street-tested-digital-cash

Click on image for article.

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

EURO ON THE BRINK: Investors Predict Currency COLLAPSE as Italy ‘Worry Child Number One’

italy-ecb-euro-collapse

  • EURO ON THE BRINK: Investors Predict Currency COLLAPSE as Italy ‘Worry Child Number One’  
    by SIOBHAN MCFADYEN, http://www.express.co.uk/
    ONE in five investors is predicting a Eurozone breakup, a survey has revealed, amid fresh fears Italian banks could be first to be allowed to go bust.

    According to the latest Sentix Euro Break-up Index data captured just before Christmas, 21.8 per cent of 933 investors questioned believe Italy could end up leaving the Eurozone as its banks struggle with a liquidity crisis. Sentix CEO Manfred Hübner said: “Italy remains the euro-worry child number one, even before Greece.”

    Last week new Italian Prime Minister New Paolo Gentiloni approved £17bn in public funds to help stabilise his country’s most fragile financial institutions. The crisis began to show cracks of earthquake proportions when the European Central Bank announced the results of the 2016 bank stress tests on July 29.

    They identified Italian banks as being £307bn in the red thanks to bad loans which make up 18 per cent of total bank balance sheets. Also causing concern is their chronically poor profitability, record-low interest rates, thin capital buffers and high costs. Since July the ECB has repeatedly dragged its heels in offering a bail out.

    read more.

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

Chinese Interbank Funding Freezes Again As Overnight Repo Hits 33%

china_overnight_repo-20161227

  • Chinese Interbank Funding Freezes Again As Overnight Repo Hits 33% 
    by Tyler Durden, http://www.zerohedge.com 
    While we have previously shown the amazing gimmicks the Chinese central bank does with the short end of the offshore Yuan interbank offered rate, which as previously explained, and as shown in the animation below, has become the PBOC’s favorite means of punishing currency speculators by making Yuan borrowing costs against shorts crushingly high, forcing short unwinds…

    … when it comes to more traditional unsecured short-term funding markets, like the simple overnight repo, these reflect overall levels of liquidity in the interbank market, or as the case may be, complete absence thereof.

    read more.

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

Jim Willie on The American Freedom Radio – The Ochelli Effect

December 27, 2016 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , , , , , , , , , , , | Leave a comment

The Italian Bank Run: Monte Paschi Capital Shortfall Surges 75% To €8.8Bn Due To “Rapid Liquidity Deterioration”

Bank_Panic_in_Italy

  • The Italian Bank Run: Monte Paschi Capital Shortfall Surges 75% To €8.8Bn Due To “Rapid Liquidity Deterioration” 
    by Tyler Durden, http://www.zerohedge.com 
    While the big news last week was that Italy’s third largest bank, Monte Paschi, had been nationalized after JPM destroyed the bank’s chances of securing a private-sector rescue, and that Italy would issue up to €20 billion in public debt to fund the bailout of this, and other insolvent Italian banks, it appears there may be more moving parts to the story.

    Recall that as we warned, the biggest danger for both Monte Paschi, and Italy’s banking system in general, is that retail depositor confidence in the Siena bank is shaken enough to lead to a bank run either in the world’s oldest bank, or worse, across the entire Italian banking sector, leading to a worst case probability outcome of falling bank dominoes as bank funding needs explode, resulting in even more deposit outflows, and so on in a toxic feedback loop.

    read more.

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December 27, 2016 Posted by | Economics | , , , , , , | 1 Comment

Bundesbank Repatriates Gold At A Much Faster Pace To Prepare For The Economic Crisis

  • Published on Dec 26, 2016
    Goldman Sachs was caught manipulating the US Dollar and order to pay a small fine. The Bank Of Japan was the top purchaser for ETF, BOJ will completely own the market. Germany’s Bundesbank accelerated its gold repatriating before the economic crisis hits.

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December 27, 2016 Posted by | Economics | , , , , , , , , , , , , , , , , , , | 1 Comment

Dr. Jim Willie: The U.S. Dollar And The Loss of Global Reserve Status

  • Dr. Jim Willie: The U.S. Dollar And The Loss of Global Reserve Status 
    by https://thelastgreatstand.com/ 
    In the video above, you’ll find the continuation of my interview with Dr. Willie from the post titled, U.S. Dollar’s Status as the Global Reserve Continues To Lose Credibility. In the first half of the interview, you heard Dr. Willie voicing his own frustrations with how hard it is to convince people he cares about that dire economic times are on the horizon, especially when on the surface market conditions are giving off the appearance that everything is great, largely because new all-time highs continue to be reached almost weekly! 

    In the article that accompanied the first half of the interview with Dr. Willie, it referred to“Trumphoria,” a phenomena describing people who were once preparing for the impending global collapse, but have somehow been duped into believing that a Trump presidency can turn around decades of poor monetary policy. Those people are sorely mistaken! That’s not a knock on Trump’s ability either. The simple fact is that our nation has accumulated the largest mountain of debt the world has ever seen, and as Dr. Willie explains, our status as the World Reserve Currency is almost at an end. 

    read more.

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December 26, 2016 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , , , , , , , , , | Leave a comment

BAILOUT: Italy Saves Bank as ECB Balance Sheet Shows EXPONENTIAL Growth!

December 26, 2016 Posted by | Economics | , , , , , , | Leave a comment

Federal Reserve Initiates End Game As Trump Heads To White House

Carroll_Quigley_Tragedy_n_Hope2

  • Federal Reserve Initiates End Game As Trump Heads To White House 
    by Brandon Smith, http://www.alt-market.com/
    For years, alternative economic analysts have been warning that the “miraculous” rise in U.S. stock markets has been the symptom of wider central bank intervention and that this will result in dire future consequences. We have heard endless lies and rationalizations as to why this could not be so, and why the U.S. “recovery” is real.  At the beginning of 2016, the former head of the Dallas branch of the Federal Reserve crushed all the skeptics and vindicated our position in an interview with CNBC where he stated:

    “What the Fed did — and I was part of that group — is we front-loaded a tremendous market rally, starting in 2009. It’s sort of what I call the “reverse Whimpy factor” — give me two hamburgers today for one tomorrow. I’m not surprised that almost every index you can look at … was down significantly.” [Referring to the results in the stock market after the Fed raised rates in December.]

    Fisher continued his warning (though his predictions in my view are wildly conservative or deliberately muted):

    “…I was warning my colleagues, “Don’t go wobbly if we have a 10-20 percent correction at some point. … Everybody you talk to … has been warning that these markets are heavily priced.”

    Here is the issue stocks are a mostly meaningless factor when considering the economic health of a nation. Equities are a casino based on nothing but the luck of the draw when it comes to news headlines, central banker statements and algorithmic computers. Today, as Fischer openly admitted, stocks are a purely manipulated indicator representing nothing but the amount of stimulus central banks are willing to pour into them through various channels.

    Even with the incredible monetary support pooled together by international financiers, returns on equities investments continue to remain mostly flat.  It would seem that the propping up of indexes like the Dow has been only for the sake of keeping up appearances. For many people, revenue is barely being generated.

    Unfortunately, the majority of Americans do not care to educate themselves on the finer points of finance. Their only relation to the health of the economy is their daily glance at the Dow. If it is green, or at all time highs, they assume that all is well, even if their gut is telling them something is not quite right.

    The elites that stand at the helm of the Federal Reserve understand this dynamic very well. They are not stupid. They know that the whole of the global economy could be in a shambles but as long as stocks remain positive the masses will continue to ignore reality until the flames of destabilization are at their very doorsteps.

    With this fact in mind one might think that the Fed would consider it in their best interest to keep stimulus measures operating indefinitely; but that is not what they are doing.

    In fact, the Fed along with other central banks like the ECB has been slowly peeling back pillars of support from markets that have been in place since 2008-2009 and leaving the system open to a crisis event that should have been dealt with years ago. I examined this process of deliberate destabilization in my article ‘The Global Economic Reset Has Begun.’

    read more.
Don't you see the Illuminist pyramid and Satanic capstone on your dollar bill? The symbol of the Anti-Christ.

Don’t you see the Illuminist pyramid and Satanic capstone on your dollar bill? The symbol of the Anti-Christ.

Charles_Lindberg_on_FedRes

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December 24, 2016 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , | Leave a comment

Big Money Placing Bets On A Financial IMPLOSION?

  • Published on Dec 22, 2016
    https://sdbullion.com/silver 

    http://www.silverdoctors.com/precious… 
    Doc & Dubin Are Back, Breaking Down the Chaotic Market Action:  

    *This Time Eric Is Worried: Bond Crash To Trigger A Blow Off Top in Precious Metals Within 2 Years?
    *”I’ve Never Seen Anything As Insane As What We’re Seeing Right Now- Things Are Gonna Break In 2017″
    *Italian Banking Crisis: FX Markets EXPLODE
    *Eric Catches A RED FLAG: Big Money Placing Bets On A Financial IMPLOSION?

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December 23, 2016 Posted by | Economics | , , , , , , , , , , , , , , , , , , , , , , | Leave a comment

European Banking Bloodbath Spreads To Spain After Italy Fires €20 Billion “Bazooka” At €360 Billion Problem

Eurozone_Collapse

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December 22, 2016 Posted by | Economics | , , , , , | Leave a comment