Socio-Economics History Blog

Socio-Economics & History Commentary

Scarier More Dangerous Market Crisis Blowing Up Now – John Rubino

  • Scarier More Dangerous Market Crisis Blowing Up Now – John Rubino
    by Greg Hunter’s USAWatchdog.com
    Financial writer John Rubino says the currency crisis happening in Turkey is a stark reason for owning something a government can’t print more of at will. Rubino points out, “The function of gold and silver is to protect you against government mismanagement of your currency.   The emerging market countries (including Turkey) have screwed up their money. They borrowed a lot of U.S. dollars at low interest rates when the dollar was falling. They expected the dollar to keep falling and pay back their loans in ever cheaper dollars, but the dollar went the other way. So, now their loans are unpayable. Their currencies are blowing up, and you are seeing gold and silver rise in local currency terms. In other words, precious metals are protecting the citizens of those countries against financial mismanagement.”


    Rubino warns, “The crisis eventually works its way all the way to the middle, which is what happened after the housing bubble burst in 2007. It was just sub-prime mortgagees to begin with, which was not really a big deal, but eventually it became a near death experience for the entire global banking system. Since that time, instead of getting our financial houses in order around the world, we basically kept on borrowing money. Now, we have almost twice as much debt globally as we had in that debt driven global financial crisis. So, you can expect the next one . . . to be bigger, scarier and more dangerous. There are a lot of reasons to believe we are getting close, and one of those reasons is the emerging markets are starting to blow up.”

    Rubino also points out, “The “Crack-Up Boom” is the point at which everybody figures out it is the explicit policy of their government to make their currency worth less year after year after year, and they don’t want to hold the currency anymore. So, as soon as they get paid, they turn that money into real stuff. You see the price of real things spike because everybody is buying real stuff at whatever price they have to pay. That manifests as accelerating inflation, but it is really a loss of faith in the currency. I think that is the end game of this system. The central banks are bailing out so many different players with so much new currency that people figure out that is a bad deal for the holders of that currency. They start front-running the process, and the system breaks down. This could be the time that it happens because the amount of debt that would have to be bailed out by the central banks is immense. It was much bigger than the bailouts . . . in 2008, and that was multi-trillions of dollars. . . . The numbers could be so immense this time people might see it for what it is. People will figure it out, and that is the systematic destruction of these fiat currencies, and then all hell breaks loose.”

    According to Rubino, the long predicted so-called “debt reset” is getting much closer. How’s that going to work? Rubino explains, “It’s not clear that a currency reset (devaluation) will work unless it is coordinated. It’s not just the U.S. It could also be the European Central Bank, Bank of Japan and The Peoples Bank of China all making the announcement about their currency at the same time. If that happened, it would be really disruptive for a short time, but we would come out of it in reasonably good shape. That’s what we should be hoping for because there is no pain free option when you borrow too much money.”

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August 16, 2018 Posted by | Economics | , , , , , , , , , , , , , | Leave a comment

Where Are Investors HIDING Their Money? Emerging Market Stocks Show Extreme Risk!

August 16, 2018 Posted by | Economics | , , , , , , | Leave a comment

CRISIS In Latin America As Currencies PLUMMET! The Next Domino To Fall?

  • World Alternative Media Published on Aug 15, 2018
    Josh Sigurdson talks with author and economic analyst John Sneisen as several Latin American currencies plummet! This is no surprise as all fiat currencies eventually revert to their true value of zero as they have since 1024 AD in China every single time. Still, it’s shocking a lot of people. We’ve recently reported on the massive inflation hitting Argentina for what seems like the millionth time in the past century which in reality isn’t too far off. The Argentinian Peso has seen a huge drop in purchasing power this past year. We’ve also been reporting on the hyperinflation hitting Venezuela for years. We can thank vast centralization and manipulation for these struggles.

    Well it appears the Brazilian Real, the Mexican and Columbian Pesos and largely all of Latin America is struggling right now. Argentina is trying to force its banking system to shift away from short term funding, has cancelled the daily dollar auction and has phased out its short term Lebacs program. The Peso saw a cliff dive following these moves. Then the Argentinian central bank stepped in and raised 7-day rates by 500bps to 45%! Emerging market investors are panicking for good reason. This is an obvious sign of the desperate sentiment of the central banking system. This has seen reactions in Brazil, Mexico, Chile and Columbia. But alas, this is expected. We cannot expect history’s greatest tricks of central planning to end any differently than it has over and over again for a thousand years. They are propping up that which does not live. It is getting heavier and heavier as the days roll on and eventually it will fall on top of the populace.

    The longer it is put off, the worse it will be. Individuals must branch out from under the watchful eye of the global complex. Individuals must be independent and self sustainable. Financially educated and responsible. We cannot continue to be dependent on an entity which benefits from our dependence.

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

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.

http://www.thenewamerican.com/world-news/europe/item/8864-vatican-council-calls-for-world-government-central-bank

Click on image for article.

http://americanfreepress.net/?p=1263

Click on image to goto article.

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August 16, 2018 Posted by | Economics | , , , , , , , , , , , , , , , , , | Leave a comment

Turkey’s Solution to Lira Crisis Will Be to Dedollarize Its Economy – Economist

  • Turkey’s Solution to Lira Crisis Will Be to Dedollarize Its Economy – Economist
    by https://sputniknews.com/
    Turkey’s currency continues to tumble amid escalating US pressure on Ankara. On Sunday, Finance Minister Berat Albayrak assured Turks that the government was preparing a plan of action to respond to the crisis. Speaking to Sputnik, geopolitics and finance analyst Tom Luongo explained some of the possible knock-on effects of the lira’s drop.

    Sputnik: Turkey has been struggling with the decline of the lira for a while, with fears that the currency could weaken even further. What’s your prognosis, and what do you make of hopes for a reversal of this trend?

    Tom Luongo:
     I think that when we get to a point where everybody’s talking about it and it’s front page news, we’re probably going to be pretty close to the bottom.


    We’re getting close to max pain, and I think that President Erdogan’s position here is going to be ‘If you’re going to take Turkey down, we’re going to take everybody with you’. Because when the lira dropped precipitously, we saw immediate reaction from the Financial Times, Zero Hedge and other places that this was creating contagion effects into Europe…

    read more.

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August 15, 2018 Posted by | Economics, GeoPolitics | , , , , , , , | Leave a comment

Erdogan Calls Lira’s Collapse ‘Currency Plot’ Amid Spat With Washington

  • Erdogan Calls Lira’s Collapse ‘Currency Plot’ Amid Spat With Washington
    by https://sputniknews.com/
    Earlier, in response to Washington’s move to double the steel and aluminum tariffs already in place against imports from Turkey, President Recep Tayyip Erdogan said in a speech that while the US has its dollars, “Turkey has its God.”

    Erdogan has called lira’s tumble a “currency plot,” noting that “those who move the currency think that they can destroy Turkey.” Earlier in the day, addressing supporters in the Turkish town of Unye, the president urged people in Turkey to sell dollars and euros to support Turkish lira. “It is wrong to dare bring Turkey to its knees through threats over a pastor,” Erdogan stressed.

    The Turkish President stated the recent US policy toward its strategic ally Ankara “annoyed, upset” the country. “I am calling on those in America again. Shame on you, shame on you. You are exchanging your strategic partner in NATO for a priest,” the president added.

    Following Washington’s announcement, the exchange rate of the Turkish lira reached the all-time low, collapsing by more than 16 percent to the US dollar. Earlier, US President Donald Trump authorized a doubling of tariffs on steel and aluminum imports from Turkey.

    read more.

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August 14, 2018 Posted by | Economics, GeoPolitics | , , , , , , , , , | Leave a comment

Turkey Approaching the Point of No Return as Erdogan Blames the Currency Decline on USA

  • Erdogan is correct, IMO, to assert that USA is attacking the Turkish Lira. Ie. Economic war. I am not a fan of Erdogan, neither do I support him. But in this instance I believe he is correct.
  • Turkey Approaching the Point of No Return as Erdogan Blames the Currency Decline on USA
    by Martin Armstrong, https://www.armstrongeconomics.com/
    Turkey has little hope of coming out of this in one piece. The pretend President-Dictator, Tayyip Erdogan, has come out and denied on Saturday that Turkey is in a currency crisis. Exactly how he can even say that is shocking. Nevertheless, he called a 25% drop in the currency a plunge that is just ‘fluctuations’ that have nothing to do with economic fundamentals. He blamed the United States calling the collapse in the currency ‘missiles’ of an economic war waged against Turkey. Trump in raising the tariffs against Turkey is understandable since the currency declined and that would make their exports cheaper. However, he is stepping in the wrong direction here for the collapse in the currency reflects the collapse in the CONFIDENCE with regard to Erdogan.

    We are looking at the usual response of a dictator in trouble. Blame someone else and that is ALWAYS external. What comes next is a break with the West and an alignment with the East. He is NOT about to surrender power NOR will he accept blame for the economic conditions in Turkey. His power is all that matters and the people are always wrong in his mind.

    read more.

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August 14, 2018 Posted by | Economics | , , , , , , , | Leave a comment

Erdogan Warns of ‘Economic War’ as Turkish Lira Carnage Spooks Global Markets

  • Erdogan Warns of ‘Economic War’ as Turkish Lira Carnage Spooks Global Markets
    by http://www.dw.com , 11 Aug 2018
    The Turkish lira crash is threatening to turn into a debt and liquidity crisis, with no end in sight. Instead of acting the Turkish leadership has warned of an “economic war,” and hit back at a “currency plot.”

    Turkey is in the throes of a full-blown currency crisis, with little sign that the government has a plan to deal with one of the worst emerging market currency meltdowns in recent history. The crisis threatens to throw the world’s 18th-largest economy into a downward spiral of bankruptcy and trigger contagion in emerging markets and Europe.

    In a keynote speech on Saturday in the Black Sea city of Rize, President Recep Tayyip Erdogan described the currency’s fall as a “currency plot.” He said those who move the currency on financial markets think they can destroy Turkey, going back to comments he has made several times in previous days.

    He pushed back against pressure to hike interest rates which he said “should be kept to a minimum because they are a tool of exploitation that makes the poor poorer and the rich richer.”  

    Currency carnage
    The Turkish lira fell as much as 22 percent Friday, before paring losses back to 17 percent, extending a rout in the currency from earlier this week. It stood at 6.47 to the US dollar at 1900 UTC on Friday. The lira has lost nearly 40 percent of its value since the start of the year and nearly 30 percent since Erdogan took over the office with new sweeping powers in June.


    The currency carnage was pushed along on Friday by US President Donald Trump’s administration, which announced the United States would increase tariffs on Turkish steel and aluminum imports. 

    The tariffs themselves are minor and impact around $1 billion (€875 million) in trade, but they weighed on market confidence in the vulnerable Turkish economy.

    “Their currency, the Turkish lira, slides rapidly downward against our very strong dollar,” Trump wrote on Twitter. “Our relations with Turkey are not good at this time.”

    read more.

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August 14, 2018 Posted by | Economics, GeoPolitics | , , , , , , , , , , | Leave a comment

The Central Banks Globalization Plan Is In Jeopardy & The Elite Are Angry

  • X22Report Published on Jul 24, 2018
    IMF reports that Venezuela inflation will hit 1 million percent. Venezuela is following in the footsteps of Germany in the 20’s, Zimbabwe in 2000s. The US Government is spending $52,000 per second and his having problems paying its bills, which means the government needs to borrow more from the Fed. Russia dumps more Treasuries and is ramping up its gold purchases. IMF warns that the dollar is over valued but China is just right. Trump is DE-globalizing the world and the elite are angry about this. They spent years creating their one world government and now it is being ripped apart.

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July 26, 2018 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , , , , | Leave a comment

Obliteration of FIAT CURRENCY Faith | Michael Pento

  • SilverDoctors Published on Jul 13, 2018
    On this week’s Metals & Markets Wrap we host money manager Michael Pento of Pento Portfolio Strategies. By late 2018, Michael believes we will see a watershed turn in the gold market. “One of the ramifications that is almost assured to happen (as a result of the next global financial crisis), is that the faith in fiat currencies will be obliterated.” This according to Michael is what will bring about heavy price inflations to come.

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July 14, 2018 Posted by | Economics | , , , , , , , , , , , , , | Leave a comment

THE GLOBAL TRIGGER: Are Trade Wars Just a Cover for Hyper-Inflation, Global Financial-Monetary Reset? by Lynette Zang

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July 13, 2018 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , , , , , , | Leave a comment

John Williams: FedRes Flirting With Massive Sell-off in Dollar

  • John Williams: FedRes Flirting With Massive Sell-off in Dollar
    by Greg Hunter’s USAWatchdog.com
    Economist John Williams says if Hillary would have won the 2016 election, we would “most likely be in a full blown depression.” The problems in the economy started long ago no matter who was elected. Williams says, “I would contend we were already in a recession at the end of the Obama Administration. That’s one reason why Donald Trump got elected.”


    Williams says another negative for the economy is resistance on both sides of the isle of swamp creatures who do not want to pass legislation so Trump can bring home better jobs. Williams says, “Their motivation is not to provide those jobs.” So, Congress is working against “We the People,” and Williams goes on to say, “Yes . . . Yes, let me put it this way. Mr. Trump was something of an anti-establishment candidate, and the establishment had been in place on both sides of the isle for a long time. . . . Now, you have someone who is going to change the approach, one that is needed to get the system back on stabile footing. As a result, you have extraordinary turmoil in the press and a lot of opposition in Congress on both sides of the isle. He also has some support, and that’s where this next mid-term election is going to be interesting. My bet is the same people that voted for Mr. Trump for President are sensitive to the fact he has run into a lot of trouble here. If he had a slate of Congressional candidates that were looking at the same thing (as Trump), this whole thing might have gotten off to a little faster footing. There is going to be more people running for Congress this time that are aware of what needs to be done. I think you are going to have some surprises that will help the President.”

    Williams sees a declining economy and says, “This is what I see happening. As the economy turns down, that’s a negative for the dollar. Most importantly here, if the Fed backs off its tightening and moves back towards quantitative easing, and their minutes allow for it . . . they’re going to do that. Right now, the dollar is being supported by expectations of a higher interest rate. As the fed moves back towards quantitative easing, you are very likely going to see a massive sell-off in the dollar. The massive sell-off in the dollar becomes very inflationary. This is a big problem right now for the Fed.”

    Williams says everyone should hold a core position of physical gold and silver because they will work well as financial protection from a dollar sell-off and inflation.

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June 28, 2018 Posted by | Economics | , , , , , , , , , , , , | 1 Comment

Russia And China Are Stockpiling Gold

  • Russia And China Are Stockpiling Gold
    by TOM LEWIS, http://www.goldtelegraph.com/
    President Trump has promised to institute trade tariffs on various imports, and some countries haven’t been happy about his actions. Russia has warned that it will retaliate against Trump’s 25 percent tariff on steel and 10 percent tariff on aluminum with levies of its own. Deputy Minister of Industry and Trade Viktor Evtukhov has indicated that its steel industry may face $2 billion of losses as a result of U.S. tariffs. Its aluminum industry could lose $1 billion. Both metals are critical to Russia’s export trade. If Russia imposes its own levies against the U.S., the U.S. auto industry could soon see higher taxes.

    In 2017, Russian imported $12.5 billion worth of commodities from the U.S., with aircraft, automobiles, and medical supplies making up the largest part of these imports. The import of cars alone totaled $837 million.

    Russian’s Deputy Minister Evtukhov plans on disputing the upcoming tariffs with the World Trade Organization and has suggested other countries limit their imports from the U.S.

    No decisions have been made in this upcoming trade war, where taxes are being used instead of guns in a quest for economic dominance. However, the effects will no doubt be felt on a global level.

    Russia has already taken financial steps to protect its interest. In April, it sold off almost $5 billion in U.S. Treasuries. This is bad news for the Federal Reserve, which desperately needs buyers of its bonds to finance the U.S.’s increasing debt. In addition, Russia has added 600,000 ounces of gold to its reserves in 2017. This gold accumulation has been a Russian trend since 2015. Other countries, especially China, has also been hoarding gold for years. This foreign increase in gold supply could devalue the U.S. dollar and dethrone it as the global reserve currency of choice. It would certainly create a bullish gold market.

    read more.

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June 26, 2018 Posted by | Economics | , , , , , , , , , , , | Leave a comment

Trump’s Goal to Keep China from Using ‘Nuclear Option’ of Dumping US Debt – Max Keiser

  • Trump’s Goal to Keep China from Using ‘Nuclear Option’ of Dumping US Debt – Max Keiser
    by https://www.rt.com/
    President Donald Trump is cutting US military spending to be less exposed to the skyrocketing interest rates that would become unavoidable when China opts to dump US Treasury bonds, Max Keiser has told RT.

    “To understand US trade policies – and in particular Trump’s policies on China – from Trump’s point of view you have to think like Trump,”
     the host of RT’s Keiser Report explained. “When Trump took office, he inherited the biggest debt load that any country had ever accumulated. He also inherited a military budget that eats up 50 percent of America’s annual tax revenues of $1.5 trillion.”

    According to Keiser, after taking the helm as president, Donald Trump realized it was vital to reduce defense spending to pare the huge US debt.

    “He looked at the geo-political chess board and saw that – the low hanging fruit, in terms of saving money – is America’s huge military spending in South Korea,”
    said Keiser, stressing that after the historic summit with North Korean leader Kim Jing-un the US would start pulling military presence out of the region.


    The US president is currently arranging deals with Saudi Arabia and Israel, in preparation for the US pulling out of the Middle East as well, Keiser added, highlighting that Trump had previously signaled to Germany that the US would to cut its military presence in NATO there too.

    “That brings us to China, and the ‘nuclear option’ they have of dumping US treasuries to financially attack America. This is their one big play. Trump knows it, and he’s been protecting the US against it,”
     the financial commentator said.


    Downsizing the Pentagon, according to Keiser, will shrink US debt, diminishing the possibility of a Chinese financial attack via the dumping of US bonds.

    read more.

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June 24, 2018 Posted by | Economics, GeoPolitics | , , , , , , , , , , | Leave a comment

Emerging Markets MELTDOWN as Stocks, Bonds, Currencies Fall! Markets In PANIC MODE?!

May 22, 2018 Posted by | Economics | , , , , , , , | Comments Off on Emerging Markets MELTDOWN as Stocks, Bonds, Currencies Fall! Markets In PANIC MODE?!

Bill Holter: Prepare For A Weekend Shocker And A 95% Stock Market Crash In Terms Of Gold

  • Bill Holter: Prepare For A Weekend Shocker And A 95% Stock Market Crash In Terms Of Gold
    by https://www.silverdoctors.com/
    Bill Holter provides a timely update on the coming financial system meltdown and credit crisis. Here’s the details… Bill Holter interviewed on Portfolio Wealth Group:

    Bill pulls no punches in this must listen, hard hitting interview.
    Bill is estimating a drop in the stock market of 40% to 50%, but as Bill puts it, if we’re talking about the drop in terms of gold, then Bill says we could be talking about an 80% to 95% drop.

    For the latest update on what to expect from the financial system which includes a credit crisis and a “mathematically certain” global hyperinflation, tune in to the interview in its entirety above.

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May 11, 2018 Posted by | Economics | , , , , , , , , , , , , | Comments Off on Bill Holter: Prepare For A Weekend Shocker And A 95% Stock Market Crash In Terms Of Gold