Dear Jamie Dimon: Predict the Crash that Takes Down Your Produces-Nothing, Parasitic Bank and We’ll Listen to your Bitcoin “Prediction”

This is the begging-for-the-overthrow-of-a-corrupt-status-quo economy we have thanks to the Federal Reserve giving the J. P. Morgans and Jamie Dimons of the world the means to skim and scam the bottom 95%. Dear Jamie Dimon: quick quiz: which words/phrases are associated with you and your employer, J. P. Morgan? Looting, pillage, rapacious, exploitive, only saved from collapse by massive intervention by the Federal Reserve, the source of rising wealth inequality, crony capitalism, privatized profits-socialized losses, low interest rates = gift from savers to banks, bloviating overpaid C. E. O., propaganda favoring the financial elite, tool of the top .01%, destroyer of democracy, financial fraud goes unpunished, free money for financiers, debt-serfdom, produces nothing of value to society or the bottom 99.5%. Jamie, if you answered “all of them,” you’re correct. The only reason you have a soapbox from which you can bloviate is the central bank (Federal Reserve) saved you and your neofeudal looting machine (bank) from well-deserved oblivion in 2008-09, and the unprecedented, co-ordinated campaign by global central banks to buy trillions of dollars of bonds and stocks.

This post was published at Charles Hugh Smith on WEDNESDAY, SEPTEMBER 13, 2017.

So Where Does the Money Go that Mexico Borrows?

Answers emerge. Including offshore private accounts.
Mexico’s public debt-to-GDP of 50% may seem modest by today’s inflated standards, but when it comes to debt, everything is relative, especially if you don’t enjoy the benefits that come from having a reserve-currency-denominated printing press, and if you borrow in a foreign currency that you don’t control.
As the debt load grows, more and more of the States’ financial resources must be used to service it. As El Financiero reports, the cost of servicing Mexico’s debt, despite super-low interest rates globally, has almost doubled in the last five years, and is now higher than it has been at any time since 1990. In fact, according to the Government’s own figures, more state funds will be spent this year on servicing the debt than on all public infrastructure projects put together.
Yet as the government scrimps and scrapes in areas that might actually help to boost economic growth, it’s more than happy to dig deep to fill its own pockets.
A joint investigation by the news website Animal Politico and the NGO Mexicans Against Corruption and Impunity has revealed that, amidst all the budget cuts, the Pea Nieto Government has been using a complex web of shell companies to make hundreds of millions of dollars of public funds, originally intended for public causes such as combating poverty or financing public education, completely vanish.

This post was published at Wolf Street on Sep 11, 2017.

YOU HAVE BEEN WARNED: The Situation In The Markets Is Much Worse Than You Realize

It’s about time that I share with you all a little secret. The situation in the markets is much worse than you realize. While that may sound like someone who has been crying ‘wolf’ for the past several years, in all honesty, the public has no idea just how dire our present situation has become.
The amount of debt, leverage, deceit, corruption, and fraud in the economic markets, financial system, and in the energy industry are off the charts. Unfortunately, the present condition is even much worse when we consider ‘INSIDER INFORMATION.’
What do I mean by insider information… I will explain that in a minute. However, I receive a lot of comments on my site and emails stating that the U. S. Dollar is A-okay and our domestic oil industry will continue pumping out cheap oil for quite some time. They say… ‘No need to worry. Business, as usual, will continue for the next 2-3 decades.’
I really wish that were true. Believe me, when I say this, I am not rooting for a collapse or breakdown of our economic and financial markets. However, the information, data, and facts that I have come across suggest that the U. S. and global economy will hit a brick wall within the next few years.
How I Acquire My Information, Data & Facts
To put out the original information in my articles and reports, I spend a great deal of time researching the internet on official websites, alternative media outlets, and various blogs. Some of the blogs that I read, I find more interesting information in the comment section than in the article. For example, the Peakoilbarrel.com site is visited by a lot of engineers and geologists in the oil and gas industry. Their comments provide important ‘on-hands insight’ in the energy sector not found on the Mainstream Media.

This post was published at SRSrocco Report on SEPTEMBER 9, 2017.

“Greatest Fiscal Crisis In Our City’s History”: Hartford Warns It Will Be Broke In 60 Days

Well, that escalated quickly.
Just two months after Standard & Poor’s downgraded its general obligation debt to junk status, warning that the historic Connecticut capital could soon follow other once-proud cities like Detroit into bankruptcy, Hartford city officials confirmed as much when they warned on Thursday that the city could be forced into insolvency within two months if the state doesn’t provide emergency financial relief, the WSJ reports.
‘City officials warned Gov. Dannel Malloy, a Democrat, and state lawmakers that Hartford, which has a deficit approaching $50 million, wouldn’t be able to pay all of its bills within 60 days. Hartford officials said it would file for bankruptcy at that point unless the state legislature passes a budget that gives the city more funding or otherwise provides it with more cash.
‘We face the greatest fiscal crisis in our city’s history,’ officials said in a letter signed by Mayor Luke Bronin, Treasurer Adam Cloud and Thomas Clarke II, president of the court of common council.’
Hartford has been plagued by political corruption and a disintegrating corporate tax base – most recently exemplified by health-insurance giant Aetna’s decision to move its corporate headquarters away from the city, which was once proudly called ‘the Insurance Capital of the World.’

This post was published at Zero Hedge on Sep 8, 2017.

Distraction as Political Strategy

Why are we fighting over confederate monuments?
Because people feel strongly about this issue? Because they are being removed? Because some groups are trying to exploit the situation to get attention?
Or is there another reason?
While we are fighting over Confederate monuments relating to events almost two centuries ago, we are not focusing on:
. The worsening plight of the poor; . The destruction of the middle class ( many middle class people can no longer afford even a new car); . The crony capitalists who make their money from government handouts or connections, and who are getting richer and richer; Government employees who may have signed on for the most sincere reasons, but whose numbers have swelled, who are now making much more than they would in the private sector, who cannot be fired, and whose earnings are often diverted into campaign contributions favoring one party;
A government that is unsustainably financing itself through debt and money printing.

This post was published at Ludwig von Mises Institute on August 29, 2017.

The Chinese Economy’s Fatal Flaws

Dr. Per Bylund’s recently published article poignantly states one of the core problems in the Chinese economy and its the state-manipulated Keynesian foundation. I do agree with his opinion. And if we dig deeper into the exact situation of Chinese economy, we will find that it’s a typical failing of the Keynesian, cronyist system.
By using the perspective of Austrian business cycle theory, lets take a look at China’s real estate industry, which is suffering more and more painfully from artificial credit issued by China’s central bank, the People’s Bank of China (PBC). During the 2008 global economic crisis, China’s central government issued the famous RMB 4 Trillion Stimulus Package Plan (equaling to $586 billion). Since 2009, the Chinese real estate economy has already suffered from three small economic cycles. As it is becoming more difficult for real estate companies to live on artificial prosperity, the duration of every business cycle has become shorter than the previous one. We also see more and more ghost cities because of the economic boom in every sub-economic cycle. There were at least 12 ghost cities founded in 2013, and the number of them jumped to at least 50 in 2017! Bankruptcy is happening more frequently among Chinese real estate enterprises. Since 2016, at least three real estate companies – with a combined debt of at least RMB 763 million – have gone bankrupt. The story of bankruptcy is continuing, with one of the biggest real-estate-driven enterprises, Wanda Group, facing financing problems. If Wanda no longer has access to cheap debt, it might not be able to refinance or roll over all its debt again. If Wanda has to face bankruptcy, it could possibly accelerate an end of the the current Chinese boom.
The data from the Chinese local governments is also not optimistic; their debt levels have reached almost RMB 25 trillion (US$ 4 trillion) at the end of 2014. In 2015, even the PBC admitted in one of its annual reports saying that China’s financial system is facing higher instability and uncertainty.

This post was published at Ludwig von Mises Institute on August 22, 2017.

Wall Street’s Latest Plot: Blame the Financial Crash on the French

Wall Street appears to have a plan to get the deregulation it wants by pinning the start of the epic financial crash of 2007-2010 on (wait for it) the French, rather than its own unbridled greed, corruption and toxic manufacture of junk bonds known as subprime debt that it paid to have rated AAA by ethically-challenged and deeply conflicted rating agencies. (The same rating agencies that are getting paid by Wall Street to rate its debt issues today.)
One of the men helping to peddle this narrative is Steve Hanke, a Senior Fellow at the Cato Institute, a taxpayer-subsidized nonprofit that was secretly owned by the billionaire Koch brothers for decades.
Hanke’s bio at Cato lists him as a Professor of Applied Economics at John Hopkins University in Baltimore and provides the following titillating background:
‘Prof. Hanke served as a State Counselor to both the Republic of Lithuania in 1994-96 and the Republic of Montenegro in 1999-2003. He was also an Advisor to the Presidents of Bulgaria in 1997-2002, Venezuela in 1995-96, and Indonesia in 1998. He played an important role in establishing new currency regimes in Argentina, Estonia, Bulgaria, Bosnia-Herzegovina, Ecuador, Lithuania, and Montenegro. Prof. Hanke has also held senior appointments in the governments of many other countries, including Albania, Kazakhstan, the United Arab Emirates, and Yugoslavia.’

This post was published at Wall Street On Parade on August 21, 2017.

David Stockman: Horrendous Storm to Hit Stocks

David Stockman joined Boom Bust to discuss the massive storm that is building and about to slam into Wall Street. During the discussion Stockman reveals what he believes is ahead for the stocks in the market and the economy.
The interview began with the Boom Bust host asking the acclaimed author about his concern surrounding a government shutdown. David Stockman began ‘we’re in the midst of the biggest political train wreck in modern history… There will be no governance in Washington. There will be no tax bill, stimulus or infrastructure.’
‘We’re heading for an expiration of the debt ceiling and running out of cash that will create an enormous crisis by August or September. They’re not going to be able to cope with it.’

This post was published at Daily Reckoning

Infrastructure ‘Stimulus’ – Chinese Ghost Cities & The Big Money Drain

As President Trump’s “Infrastructure Week” comes to an ignominious end, NIRP Umbrella’s Alex Deluce reminds us that spending money on bridges to nowhere and cities of the future is anything but the stimulating panacea it is talked up to be…
Is a Chinese credit bubble in the cards? Well, it will be interesting to see if China’s authorities can get through the unwind of US $3 trillion worth of excess credit and the distressed debt on banks’ balance sheets.
From 2009 to 2016, more than 10 trillion of Chinese investment was thrown at infrastructure, ghost cities, and corruption thanks to a helping hand from the Chinese banks and foreign lenders eager to participate in the Chinese growth story.
In fact, hundreds of new cities in China are essentially empty. The hope is that rural population someday move in.
Roughly 40% of the 300 million Chinese expected to move into a town by 2030 will mostly be moving to smaller cities in the ‘chengzhenhua’ system.
As OfTwoMinds’ Charles Hugh Smith recently explained, building bridges to nowhere isn’t just a waste of money in the present; it saddles the economy with productivity-draining costs for decades to come.

This post was published at Zero Hedge on Jun 10, 2017.

The Coming Debt Reckoning

Licking the Log
American workers, as a whole, are facing a disagreeable disorder. Their debt burdens are increasing. Their incomes are stagnating.
There are many reasons why. In truth, it would take several large volumes to chronicle all of them. But when you get down to the ‘lick log’ of it all, the disorder stems from decades of technocratic intervention that have stripped away any semblance of a free functioning, self-correcting economy.
The financial system circa 2017, and the economy that supports it, has been stretched to the breaking point. Shortsighted fiscal and monetary policies have propagated it. The result is a failing financial order that has become near intolerable for all but the gravy supping political class and their cronies.
Take consumer spending. This is the primary driver of the U. S. economy. Yet it requires vast amounts of credit. In fact, American consumers presently hold $1 trillion in revolving credit. At the same time, they have nowhere near the income needed to finance these debts, let alone pay them off.
Remember, the flip-side of credit is debt. Obviously, the divergence of increasing debt and stagnating incomes is a condition that cannot go on forever. But it can go on much longer than any sensible person would consider possible.

This post was published at Acting-Man on May 6, 2017.

There Is One Way Out of Debt-Serfdom: Fanatic Frugality

Debt is serfdom, capital in all its forms is freedom.
If we accept that our financial system is nothing but a wealth-transfer mechanism from the productive elements of our economy to parasitic, neofeudal rentier-cartels and self-serving state fiefdoms, that raises a question: what do we do about it?
The typical answer seems to be: deny it, ignore it, get distracted by carefully choreographed culture wars or shrug fatalistically and put one’s shoulder to the debt-serf grindstone.
There is another response, one that very few pursue: fanatic frugality in service of financial-political independence. Debt-serfs and dependents of the state have no effective political power, as noted yesterday in It Isn’t What You Earn and Owe, It’s What You Own That Generates Income.
There are only three ways to accumulate productive capital/assets: marry someone with money, inherit money or accumulate capital/savings and invest it in productive assets. (We’ll leave out lobbying the Federal government for a fat contract or tax break, selling derivatives designed to default and the rest of the criminal financial skims and scams used so effectively by the New Nobility financial elites.)

This post was published at Charles Hugh Smith on THURSDAY, MAY 04, 2017.

Central Banks Have a $13 Trillion Problem

Paycheck to Paycheck
GUALFIN, ARGENTINA – The Dow was down 118 points on Wednesday. It should have been down a lot more. Of course, markets know more than we do. And maybe this market knows something that makes sense of these high prices. What we see are reasons to sell, not reasons to buy.
Nearly half of all American families live ‘paycheck to paycheck,’ say researchers. Without borrowing, 46% couldn’t raise $400 to cover an emergency. This is at least part of the reason why retail sales dropped for the second month in a row in March. Despite seven years of economic ‘recovery,’ millions of Americans don’t have much money.
According to Census Bureau figures, 110 million Americans receive benefits from means-tested federal programs – food stamps, disability, and the like. And according to the Bureau of Labor Statistics, about 125 million Americans have full-time work (with another roughly 112 million without jobs).
That means there are only 125 million people in full-time jobs supporting the whole kit and caboodle of the U. S. economy, with a total population of 323 million. At that rate, each full-time worker supports about 2.6 people… including almost one person receiving money from the feds.
They are also supporting a government debt of $20 trillion and private debt of another $40 trillion or so. That puts the debt-to-full-time-worker ratio at $480,000. The average salary for a full-time worker is just $48,000. At a modest 5% interest, his share of the debt cost would set him back $24,000 each year.
He’d have only the remaining $24,000 to support (1) his own family… and (2) all the malingerers, cronies, and zombies who are drawing government benefits. Obviously, those numbers don’t work. But they explain much of the weakness in the U. S. economy.
The feds’ cheap credit keeps moving money (mostly in the form of asset price increases) to the wealthiest ZIP codes… while the average person’s budget gets tighter and tighter.

This post was published at Acting-Man on April 21, 2017.

Marx, Orwell and State-Cartel Socialism

When “socialist” states have to impose finance-capital extremes that even exceed the financialization of nominally capitalist economies, it gives the lie to their claims of “socialism.” OK, so our collective eyes start glazing over when we see Marx and Orwell in the subject line, but refill your beverage and stay with me on this. We’re going to explore the premise that what’s called “socialism”–yes, Scandinavian-style socialism and its variants–is really nothing more than finance-capital state-cartel elitism that has done a better job of co-opting its debt-serfs than its state-cartel “capitalist” cronies. We have to start with the question “what is socialism”? The standard definition is: a political and economic theory of social organization that advocates that the means of production, distribution, and exchange should be owned or regulated by the community as a whole. In practice, the community as a whole is the state. Either the state owns a controlling interest in the enterprise, or it controls the surplus (profits), labor rules, etc. via taxation and regulation.

This post was published at Charles Hugh Smith on WEDNESDAY, APRIL 19, 2017.

Prognostication: Here It Comes

I claim no special power here, nor any inside information. This is simply arithmetic coupled with logic. I’ll give you a “decision tree” sort of format with the critical points outlined.
Note that if you’re going to mitigate any of what I see coming around the bend you need to do it right damn now, not wait. By the time you get to those critical points it’s too late. For many people it’s already too late, but if you’re not in that batch then you need to make your lifestyle changes today.
I am operating on the premise that the rank corruption that I outlined in the Ticker here will not be addressed. It will not be addressed for the same reason the 17th Amendment will be cited as the reason the American political experiment failed when the book on America is finally closed, as that Amendment permanently removed the ability of the States to call a hard-stop on any expansion of Federal Power they did not consent to. That was designed in to our government by the founders and it was removed intentionally by the 17th Amendment. That balance of power can never be restored absent a Revolution because to do so The Senate would have to literally vote themselves out of a job at a supermajority level which they will never do and there is no means to compel them to do so.
For the same reason the 30-year trend in Medicare and Medicaid spending will not be stopped. It may be tinkered with around the edges but it won’t be stopped because to stop it without literally throwing people into the street and letting them die you have to break the medical monopolies and in doing so you will inevitably (1) destroy the graft machine that drives a huge part of DC and at least half of the jobs inside the Beltway, along with the asset values they support, (2) create an immediate and deep (15% of GDP, but temporary) recession on purpose which neither Congress or Trump will ever voluntarily initiate as it would cause a guaranteed 70% stock market crash along with the immediate detonation of about 1/3rd of all in-debt corporations in the United States and (3) expose the outrageous theft of trillions of dollars from taxpayers over the last several decades to fund the medical scam machine at all levels.

This post was published at Market-Ticker on 2017-04-17.

Raiders Move to Vegas Gives Tax Payers Reason to Boo, Players Reason to Cheer

Yesterday the NFL granted Mark Davis his request to move the Raiders from Oakland to Las Vegas. The move creates multiple losers: Las Vegas hotel customers who will see room taxes rise to pay for the $750 million in subsidies for the new stadium, the city of Oakland who still carries debt from the Raiders old venue, and the infamous fans that made up the Raiders’ iconic ‘Black Hole’ who are losing their football team just after witnessing their first playoff performance in almost 15 years.
Beyond the blatant crony capitalism of government-financed stadiums, there are many reasons to doubt the wisdom of the team’s decision. After all, unlike the Rams and Chargers move to Los Angeles, Las Vegas has no history of supporting professional football. The most significant attempt, the Las Vegas Outlaws of the XFL, only averaged 22,619 fans, ranking 5th out of the league’s 8 teams. Other attempts, including multiple Arena League teams and the short lived UFL, were financial flops. Of course, none of these products have the power of the National Football League, so perhaps this time will be different.
At league meetings, a key part to selling relocation was the idea that fans of other teams would travel to Las Vegas to enjoy the city’s attractions along with the game. Of course, if the market had faith in this business model, investment wouldn’t have needed politicians to find investment. It is worth noting that the new Las Vegas NHL team will be playing at a facility backed entirely by private investment. Maxing out at 20,000 seats, it has one-third of the capacity of the Raiders venue – but cost less than a quarter of the projected costs of the Raiders’ future facility.

This post was published at Ludwig von Mises Institute on March 29, 2017.

Collapsing Pensions Are ‘About to Bring Hell to America’

Along with the student loan debt bubble and other major financial factors, the looming pensions crisis is bound to be the death of us all.
Because it’s based on a future promise to pay, it has long been a benefit dangled to solve strikes and union disputes – because, in the end, it is just more debt, whether private or public.
With tens of trillions in unfunded liabilities, the weight of an avalanche remains dangling over our heads. An aging population is cashing in on needed retirement benefits while the younger generations must support multiples that are unsustainable financially.
Somewhere between the retiree that needs clothing, food and lodging, and the bankruptcy of cities and state governments is the makings of the next economic crisis.
via AgainstCronyCapitalism.org:

This post was published at shtfplan on March 15th, 2017.

We All Lose: Obama’s Legacy And What It Means For A Trump Presidency

Submitted by John Whitehead via The Rutherford Institute,
‘This light of history is pitiless; it has a strange and divine quality that, luminous as it is, and precisely because it is luminous, often casts a shadow just where we saw a radiance; out of the same man it makes two different phantoms, and the one attacks and punishes the other, the darkness of the despot struggles with the splendor of the captain. Hence a truer measure in the final judgment of the nations. Babylon violated diminishes Alexander; Rome enslaved diminishes Caesar; massacred Jerusalem diminishes Titus. Tyranny follows the tyrant. Woe to the man who leaves behind a shadow that bears his form.’ ? Victor Hugo, Les Misrables
Let’s talk about President Obama’s legacy, shall we?
This was a candidate who was ushered into office promising hope and change, pledging to put an end to the endless wars that were bankrupting the country (he was actually awarded the Nobel Peace Prize in anticipation of his efforts to bring about world peace), and vowing to put an end of the corporate revolving door that had turned our republic into an oligarchy.
After eight years in office, Barack Obama leaves our nation with a weakened Constitution that has been dealt one crippling blow after another by court rulings and government overreach, with more militarized police empowered to shoot first and ask questions later, with more SWAT team raids, with more government corruption, with more debt than ever before ($19 trillion and rising), with more racial tensions bubbling over into confrontations, with even greater surveillance intruding into the privacy of the citizenry, with less tolerance for free speech and thought, with taxpayers groaning under the weight of even more taxes disguised as fines and fees, with a more ‘imperial’ president empowered to act unilaterally through the use of signing statements and executive orders, with a greater risk of blowback from military occupations, drone strikes and endless wars abroad, and with a citizenry more broken and oppressed than ever.

This post was published at Zero Hedge on Jan 9, 2017.

Trump’s Debt Reveals New Billion-Dollar Conflicts of Interest

This is a syndicated repost courtesy of Money Morning – We Make Investing Profitable. To view original, click here. Reposted with permission.
An analysis from independent financial research firm Morningstar, released yesterday by The Wall Street Journal, brought to light numerous new potential conflicts of interest for President-elect Donald Trump.
These conflicts of interest specifically relate to Trump’s debt, such as 1) the institutions to which he owes money, and 2) the amount of money he actually has left to pay.
You see, in a May 2016 financial disclosure with the U. S. Office of Government Ethics, Trump claimed he owed money to just 10 businesses.

This post was published at Wall Street Examiner by Money Morning Staff Reports ‘ January 6, 2017.

The Obama Legacy: ‘Crippling Debt, Massive Unemployment, Welfare-based Society, Deteriorated Infrastructure, Massive Inflation, And A Worthless Fiat Currency’

Rapacity performed by an outgoing Democratic president is intentionally downplayed or simply ignored by the mainstream media. We saw such unbridled rapacity in the atavistic way the Clintons left the White House when they departed in 2000. They stole and/or vandalized furniture and furnishings of the White House and left it in a deplorable state. From a perspective of his official actions, Bill Clinton did things such as pardon Tommy Rich and closed a few loopholes to ensure his Clinton Foundation deals did not fall apart after he surrendered the Oval Office.
The Obamas are not following suit in the manner of the Clintons with pillaging the White House for three reasons. Firstly, although he committed dozens of offenses that would have merited it, Obama was not impeached, whereas Clinton was. For those who may hold askance with the conditions of impeachment for Obama, let us remember that under the parameters of the National Defense Authorization Act and the tenets of more than half a dozen overlapping executive orders, the United States (and the world) were ‘redefined’ as a ‘battlefield’ in the war on terror. The emergency status has never been lifted: that status was affirmed and inculcated under the Bush administration shortly after 9/11 that categorized us as being in a state of war (against terrorism) and a continuous state of emergency.
Under such ‘wartime’ conditions, the words of Obama in 2012 were clearly treasonous and constituted an impeachable offense.

This post was published at shtfplan on December 30th, 2016.

Italy Banking Crisis is Also a Huge Crime Scene

Toxic loans as a result of corruption, political kickbacks, fraud, and abuse.
The Bank of Italy’s Target 2 liabilities towards other Eurozone central banks – one of the most important indicators of banking stress – has risen by 129 billion in the last 12 months through November to 358.6 billion. That’s well above the 289 billion peak reached in August 2012 at the height of Europe’s sovereign debt crisis.
Foreign and local investors are dumping Italian government bonds and withdrawing their funding to Italian banks. The bank at the heart of Italy’s financial crisis, Monte dei Paschi di Siena (MPS), has bled 6 billion of ‘commercial direct deposits’ between September 30 and December 13, 2 billion of which since December 4, the date of Italy’s constitutional referendum.
Italy’s new Prime Minister Paolo Gentiloni, who took over from Matteo Renzi after his defeat in the referendum, said his government – a virtual carbon copy of the last one – is prepared to do whatever it takes to stop MPS from collapsing and thereby engulfing other European banks. His options would include directly supporting Italy’s ailing banks, in contravention of the EU’s bail-in rules passed into law at the beginning of this year. Though now, that push comes to shove, the EU seems happy to look the other way.
While attention is focused on the rescue of MPS, news regarding another Italian bank, Banca Erturia, has quietly slipped by the wayside.

This post was published at Wolf Street on Dec 18, 2016.