Socio-Economics History Blog

Socio-Economics & History Commentary

The Deflation Monster Has Arrived

FedRes_Bad_decision-SPX-monthly-1-15-2016

Everything-happens-for-reason-youre_stupid_n_make_bad_decision

  • The Deflation Monster Has Arrived
    by Chris Martenson, http://www.peakprosperity.com/  
    And it sure looks angry
    As we’ve been warning for quite a while (too long for my taste): the world’s grand experiment with debt has come to an end. And it’s now unraveling. Just in the two weeks since the start of 2016, the US equity markets are down almost 10%. Their worst start to the year in history. Many other markets across the world are suffering worse.

    If you watched stock prices today, you likely had flashbacks to the financial crisis of 2008. At one point the Dow was down over 500 points, the S&P cracked below key support at 1,900, and the price of oil dropped below $30/barrel. Scared investors are wondering:  What the heck is happening? Many are also fearfully asking: Are we re-entering another crisis?

    Sadly, we think so. While there may be a market rescue that provide some relief in the near term, looking at the next few years, we will experience this as a time of unprecedented financial market turmoil, political upheaval and social unrest. The losses will be staggering. Markets are going to crash, wealth will be transferred from the unwary to the well-connected, and life for most people will get harder as measured against the recent past.

    It’s nothing personal; it’s just math. This is simply the way things go when a prolonged series of very bad decisions have been made. Not by you or me, mind you. Most of the bad decisions that will haunt our future were made by the Federal Reserve in its ridiculous attempts to sustain the unsustainable.

    read more.
http://www.wnd.com/2008/03/59405/

Click on image for article.

AlanGreenspan-How_The_FedRes_caused_the_1929_Great_Depression

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

The Oil And Gas Credit Collapse Is Going To Be Catastropic

  • The Oil And Gas Credit Collapse Is Going To Be Catastropic
    by Dave Kranzler, http://investmentresearchdynamics.com/ 
    We’re headed toward another big credit explosion and I think what’s happened in the oil market is will trigger that.  The perfect poster-child of what’s going to happen to the stock market is what’s happened to Kinder Morgan stock.  – interview with CrushTheStreet.com 

    It speaks volumes about the corrupted nature of our financial markets that this news report does not cause a huge downward price adjustment in the entire stock market:  Big Banks Brace For Oil Loans To Implode.  This is, minimally, t $500 billion issue and that number does not incorporate at all the size of the derivatives exposure to oil sector debt. Move along, nothing to worry about here…it’s reminiscent of circa 2007, when Bernanke stated that the problems developing in the mortgage market were “contained.”

    And speaking of Kinder Morgan, I listened to the Kinder Morgan conference call because I’m working on stock report on KMI. I forgot what a Broadway play production these investor calls are. Richard Kinder is a grade-A snake-oil salesman. Everyone seems to have forgotten that he was the COO of Enron when Enron’s Ponzi scheme was being constructed. He was college buddies with Ken Lay. But he left in 1997, buying out an Enron pipeline subsidiary with William Morgan.  Everyone thinks Richard Kinder is squeaky clean and they don’t associate him with Ken Lay. It’s emblematic of the ignorance, denial and fraud embedded in our system. KMI has been issuing debt to make its dividend payments and the only reason they cut their dividend is because their bankers told them they would have trouble issuing more debt this year. Kinder kept referencing the possibility of stock buybacks on the call. Are you kidding me?  You can visualize the sycophantic big bank analysts writing everything down word for word in order to regurgitate them robotically in farcical equity reports designed to suck more idiots into the stock.

    read more.

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January 25, 2016 Posted by | Economics | , , , , , , , , , , | Leave a comment

Jeff Berwick: The Shemitah, The Debt Jubilee and Total Economic Collapse

  • Published on Jan 24, 2016
    In this video Luke Rudkowski interviews the Dollar Vigilante Jeff Berwick about the current status of the World Economy and his predictions for total economic collapse. We go over the shemitah prediction Jeff made, how that developed and how we are in the debt Jubilee currently. A lot of important news was covered in this video as well as an opportunity to learn from Dan Dicks, Adam Kokesh, Jeff Berwick and Luke Rudkowski at an upcoming bootcamp in Mexico.

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January 25, 2016 Posted by | Economics, GeoPolitics, Social Trends | , , , , , , , , , , , , , , , , , , , , | Leave a comment

Gregory Mannarino: Central Bank Debt Bubble Will Wipe Out Large Portion Of Global Population

  • ANALYST: “MILLIONS UPON MILLIONS OF PEOPLE ARE GOING TO DIE ON A WORLD-WIDE SCALE WHEN THE DEBT BUBBLE BURSTS”
    by Mac Slavo | SHTFPlan.comMAY 14, 2015
    It can be difficult to understand the repercussions that would follow a collapse of the global economy, stocks and debt markets.


    It can be difficult to understand the repercussions that would follow a collapse of the global economy, stocks and debt markets. While we know a serious financial event is coming, determining how it will impact our lives and preparing an appropriate strategic plan to mitigate the fallout can be a confusing and stressful undertaking.


    The questions being asked by concerned Americans are plenty, but the answers are not so easy to come by. Should I keep money in my retirement accounts? What publicly traded companies are recession-proof? Will gold and silver really be of value if the whole system comes crashing down? Should I have some cash? How much food should I stockpile if the regular flow of commerce is affected? Will there be riots in my city?

    In the following interview with X22 Report Spotlight, well known analyst and contrarian thinker Greg Mannarino of Traders Choice succinctly explains the challenges we face as individuals and as a nation. He doesn’t mince words and goes straight to the heart of the problem: out of control debt.

    As Mannarino explains it, we are facing an event so serious that it will directly impact just about every person on earth. But before we can prepare for it, we need to understand what it is that’s going to happen and what a worst-case scenario may look like:

    read more.

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January 23, 2016 Posted by | Economics, GeoPolitics, Social Trends | , , , , , , , , , , , , , , , , , , , | Leave a comment

America’s Most Closely Guarded Secret: The Covert Fund That Controls It All — Rob Kirby

  • Published on Jan 22, 2016
    Rob Kirby joins me to expose extremely important economic information which the majority of the world knows nothing about. Rob says, “We are talking about something here that is extremely dark. This is a very dark entity. This is one of the most closely guarded secrets that America has.” The men behind the curtain have been using this top secret deep state funding source to manipulate world events and currencies for nearly 100 years.

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

Beware the Great 2016 Financial Crisis And Collapse of Eurozone – Warns Leading City of London, Societe Generale Strategist

http://www.theguardian.com/business/2016/jan/12/beware-great-2016-financial-crisis-warns-city-pessimist

Click on image for article.

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

The Secret Behind The Next Global Crash

Global_Financial_Meltdown1

  • The Secret Behind The Next Global Crash
    by Pepe Escobar, http://sputniknews.com/  
    The World Economic Forum in Davos is submerged by a tsunami of denials, and even non-denial denials, stating there won’t be a follow-up to the Crash of 2008.

    Yet there will be. And the stage is already set for it.

    Selected Persian Gulf traders, and that includes Westerners working in the Gulf confirm that Saudi Arabia is unloading at least $1 trillion in securities and crashing global markets under orders from the Masters of the Universe – those above the lame presidency of Barack Obama. 

    Those were the days when the House of Saud would as much as flirt with such an idea to have all their assets frozen. Yet now they are acting under orders. And more is to come; according to crack Persian Gulf traders Saudi Western security investments may amount to as much as $8 trillion, and Abu Dhabi’s as $4 trillion.

    In Abu Dhabi everything was broken into compartments, so no one could figure it out, except brokers and traders who would know each supervisor of a compartment of investments. And for the House of Saud, predictably, denial is an iron rule. 

    This massive securities dump has been occasionally corporate media, but the figures are grossly underestimated. The full information simply won’t filter because the Masters of the Universe have vetoed it. 

    There has been a huge increase in the Saudi and Abu Dhabi dump since the start of 2016. A Persian Gulf source says the Saudi strategy “will demolish the markets.” Another referred to a case of “maggots eating the carcass in the dark”; one just had to look at the rout in Wall Street, across Europe and in Hong Kong and Tokyo on Wednesday.

    So it’s already happening. And a crucial subplot may be, in the short to medium term, no less than the collapse of the eurozone

    The Crash of 2016?
    So a case could be made of a panicked House of Saud being instrumentalized to crash a great deal of the global economy. Cui bono? 

    read more.

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January 23, 2016 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , , , , , , , , | Leave a comment

Fears of Global Liquidity Crunch Haunt Davos Elites

Global financial storm approaching!

Global financial storm approaching!

  • Fears of Global Liquidity Crunch Haunt Davos Elites
    by , International Business Editor, Davos, http://www.telegraph.co.uk/ 
    Rising Fed interest rates means “liquidity could drop dramatically, and that scares everyone”, warns IMF deputy.

    The International Monetary Fund is increasingly alarmed by signs that market liquidity is drying up and may trigger an even more violent global sell-off if investors rush for the exits at the same time. 

    Zhu Min, the IMF’s deputy director, said the stock market rout of the last three weeks is just a foretaste of what may happen as the US Federal Reserve continues to raise interest rates this year, pushing up borrowing costs across the planet.

    He warned that investors and wealth funds have clustered together in crowded positions. Asset markets have become dangerously correlated, amplifying the effects of any shift in mood. “The key issue is that liquidity could drop dramatically, and that scares everyone,” he told a panel at the World Economic Forum in Davos. “If everybody is moving together we don’t have any liquidity at all. We have to be ready to act very fast,” he said.

    read more.
http://www.telegraph.co.uk/finance/financetopics/davos/12108569/World-faces-wave-of-epic-debt-defaults-fears-central-bank-veteran.html

Click on image for article.

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

Global Stocks Surge, Oil Soars As Hopes For Central Bank Stimulus Return

US_Oil_Rebounds

  • Global Stocks Surge, Oil Soars As Hopes For Central Bank Stimulus Return
    by Tyler Durden, http://www.zerohedge.com 
    In retrospect it appears Tom DeMark was spot on with his Wednesday prediction, made just as the Dow Jones was down some 500 points that that very day was “an interim low” to be followed by a 5-8% rebound (at which point the selling would resume). In fact, those trading Japanese stocks saw virtually the entire predicted rebound take place in just one day as the Nikkei soared by almost 6% overnight, or nearly 1000 points, the biggest jump in 4 months, while risk everywhere else around the globe has likewise exploded higher, as crude has stormed back over $31/barrel.

    In other words, overnight we have seen a tremendous relief rally from historically oversold conditions in which AAII bulls hit a 10 year low: largely as most predicted, despite (actually thanks to) even more negative global macro economic data.

    In case it is still unclear, Bloomberg lays it out: “The turnaround in sentiment came amid signs central banks may be prepared to act after $7.8 trillion was erased from the value of global equities this year on China’s slowdown and oil’s crash.

    read more.

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

Hidden Financial Bombs Are Starting To Detonate

Financial collapse time bomb!

Financial collapse time bomb!

Boom-Goes-The-Dynamite-Explosion

  • Hidden Financial Bombs Are Starting To Detonate
    by Dave Kranzler, http://investmentresearchdynamics.com/  
    … The S&P 500/Dow have started to sell-off relentlessly since the beginning of the year.  This morning’s excuse was IBM and, once again, China.  I guess Obama’s “America is exceptional” speech infected the brains of more people than I thought.  The sell-off in the stock market surely can’t be attributable in any small way to the fact that the U.S. stock market never been more overvalued in its history.    Not only is it trading at record valuation levels, the “value” of the stock market is resting on a mountain of debt and derivatives in the U.S. financial system of unprecedented size and diminished credit quality.

    Debts have continued to build up over the last eight years and they have reached such levels in every part of the world that they have become a potent cause for mischief.
     – William White, form chief economist of the BIS – LINK 


    Unpayable debt and counter-party defaulted derivatives are the hidden financial bombs that are beginning to detonate both globally and in the United States.   Faux analysts like to point to the fact that consumer debt is lower now than in 2009.  However, the reason the amount of stated debt declined was a result lender write-offs – not consumers repaying any debt.   Now automobile and student loans are at all-time highs – over $1 trillion outstanding now in each.  Unlike mortgage debt, this debt is largely unsecured (cars are collateral that depreciate quickly in value).

    Well-known/regarded hedge fund titan Ray Dalio of Bridgewater Associates was in the news today warning that “if assets remain correlated, there’ll be a depression”  LINK 

    Who am I to question Ray, but he’s got it wrong.  The mistake embedded in his assertion is that economic activity is currently connected to the massive global financial bubble. Sorry Ray, but if you use unmanipulated data, the world is already in an economic depression. The price of oil, the baltic dry index, the Cass shipping and freight index (LINK a volume-based index down almost 20% since 2013), etc – measurements of actual economic activity – are reflecting a level of economic activity globally and in the United States that is suggestive of a deep recession on Main Street.

    read more.

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

Michael Maloney: The Greatest Crisis in the History of Mankind is Here!

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

For Emerging Markets, It Is Now Worse Than The Asian Financial Crisis

MSCI_Emerging_Market_start_to_year-20160120

  • For Emerging Markets, It Is Now Worse Than The Asian Financial Crisis
    by Tyler Durden, http://www.zerohedge.com  
    “It’s Black Wednesday for emerging markets,” one strategist warned and Thursday is not looking any better, as SocGen’s Berg warns “The rout in emerging markets could continue for some time, especially as the major global central banks have exhausted their ammunition in recent years, making it unlikely that they will rescue global markets this time around.” In fact, as Bloomberg reports,this year’s EM turmoil is already worse than in the same period in 1998’s Asian financial crisis (and EM FX is even worse).

    The MSCI Emerging Markets Index dropped 3 percent to 692.76, the lowest close since May 2009.

    More than $2 trillion has been wiped out from the value of developing-nation equities this year as the MSCI Emerging Markets Index slid 13 percent, the worst start to a year since data began in 1988.
    As Bloomberg reports, The drop has exceeded the 7.9 percent decline in the gauge in the same period in 1998 during the Asian financial crisis and the drop in 2009 amid the global financial crisis.

    read more.

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

ALERT: Gerald Celente Warns $6 Trillion Global Stock Market Carnage Just A Prelude To The Disaster That Lies Ahead

Global financial tsunami fast approaching!

Global financial tsunami fast approaching!

  • ALERT: Gerald Celente Warns $6 Trillion Global Stock Market Carnage Just A Prelude To The Disaster That Lies Ahead
    by http://www.kingworldnews.com  
    On the heels of the Dow plunging more than 550 at one point in the trading day before the U.S. Plunge Protection Team intervened in the stock market, today the top trends forecaster in the world warned King World News that the $6 trillion global stock market carnage is just a prelude to the disaster that lies ahead.

    Eric King: 
    “Gerald, last year you predicted on King World News that we would see a global stock market crash: 

    Gerald Celente:
    “Rarely do I ever put a date on market crashes.  I did it in 1987 when I forecast the 1987 stock market crash — that was in the Wall Street Journal.  I also forecast the ‘Panic of 2008,’ and the ‘dot-com bust’ in October of 1999, when I said it (the dot-com mania) would fail in the second quarter of 2000.

    Eric, I’m now predicting that we are going to see a global stock market crash before the end of the year.  It’s not only going to be the Dow, it’s going to be the DAX, the FTSE, the CAC, Shanghai, and the Nikkei.  There’s going to be panic on the streets from Wall Street to Shanghai and from the UK down to Brazil.  You are going to see one market after another begin to collapse.”

    Eric King: 
    “Gerald, this is unfolding in waves.  The Dow immediately plunged 2,500 points right after you made that prediction.  We then saw a failed rally and now the global stock market carnage is picking up steam to the downside, exactly as you predicted.”

    Gerald Celente: 
    “That’s right, Eric, and the mainstream media is downplaying this by blaming the carnage on China and commodities.  This financial crisis is much bigger than that.  This is a global meltdown and it’s just getting started.  It will bring some countries to their knees before this is over.  The global stress is beyond comprehension for most people and those who don’t prepare for the worst risk losing everything…

    read more.

Stock_market_collapse-brokers_reaction_panic_shock

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

Dave Kranzler: $20 Oil to Cause Junk Bonds to Crash… Bigger Bubble than 2008

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

“Worse Than 2007” Warns Top Level Banker as Central Banks Out of Options!

January 21, 2016 Posted by | Economics | , , , , , , , , , | Leave a comment

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