When the banking crisis crippled global markets seven years ago, central bankers stepped in as lenders of last resort. Profligate private-sector loans were moved on to the public-sector balance sheet and vast money-printing gave the global economy room to heal.
Time is now rapidly running out. From China to Brazil, the central banks have lost control and at the same time the global economy is grinding to a halt. It is only a matter of time before stock markets collapse under the weight of their lofty expectations and record valuations.
The FTSE 100 has now erased its gains for the year, but there are signs things could get a whole lot worse . . .
China was the great saviour of the world economy in 2008. The launching of an unprecedented stimulus package sparked an infrastructure investment boom. The voracious demand for commodities to fuel its construction boom dragged along oil- and resource-rich emerging markets.
The Chinese economy has now hit a brick wall. Economic growth has dipped below 7pc for the first time in a quarter of a century, according to official data. That probably means the real economy is far weaker. (Read more from “Doomsday Clock for Global Market Crash Strikes One Minute to Midnight as Central Banks Lose Control” HERE)
https://joemiller.us/wp-content/uploads/logotext.png00Joe Millerhttps://joemiller.us/wp-content/uploads/logotext.pngJoe Miller2015-08-17 03:05:102015-08-17 03:05:10Doomsday Clock for Global Market Crash Strikes One Minute to Midnight as Central Banks Lose Control
By WND. Is America headed for an economic collapse?
If so, presidential candidates are remaining eerily quiet about what’s being described as “a huge disaster waiting to happen.”
The U.S. stock market is on the verge of a massive collapse, warned David Stockman, OMB director during the Reagan administration, on CNBC’s “Futures Now” program. He said the recent price action has him even more convinced than ever that the bottom is about to fall out.
Stockman believes the excessive monetary policy from central banks around the world has created a “debt supernova,” and all the signs point to “the end of the central bank enabled bubble,” which could cause a worldwide recession.
In fact, he said, there’s no way to roll back the artificially inflated bubbles the Federal Reserve has caused. (Read more from “GOP Stars Tight-Lipped on ‘Huge Disaster Waiting to Happen'” HERE)
Economic Reality Now Catching up to Market Fantasy
By Brandon Smith. In the mind of a schizophrenic person, internal elements of fantasy (negative and positive) are made manifest in the psyche and projected out onto the real world. Often, the daydream images of the mind are not merely images to them. Rather, what they imagine subconsciously becomes reality. Their faculties of observation become so limited, either due to a reaction to trauma or merely an inherent inability to cope, that they cannot decipher between fact and fiction. A person could go on like this for quite some time if all his needs are provided for by someone else. But the moment that support ends (and it will), the realities of necessity, not to mention supply and demand, take hold. One cannot live in a schizophrenic world indefinitely.
The current global mishmash of interdependent and socialized economies are, at bottom, schizophrenic. Our markets are not based in any fundamental reality. There is very little tangible foundation left to stand on, and this has been the case for several years. Yet some people might argue that since the derivatives crash of 2008, most of the world has continued to walk on air.
The power of fantasy is that it is self-perpetuating. Fantasies are fueled most commonly by misplaced hopes and unhealthy or unrealistic desires, and such things are darkly and grotesquely energizing. Fantasies can indeed keep economies around the world functionally alive even when they are clinically dead. But again, there is always an end.
Equities and commodities markets in particular have levitated despite economic fact that their fall will be ever more spectacular. That fall has now begun halfway through 2015 . . .
New signals of market crisis are generating every two to four weeks as we grind on toward the third quarter. This is in stark contrast to the heavily predictable market behavior of the past three years. I realize that we are experiencing a “slow boil” and that many people may not even be taking note of the exponential increase in negative economic signs, but really think about it: At the beginning of 2014, what was the general financial sentiment compared to today? (Read more from “Economic Reality Now Catching up to Market Fantasy” HERE)
– UK rate hike fears recede, emerging markets on edge
– EMERGING MARKETS-Currencies retreat on talk of a Fed rate hike
– Lost Decade in Emerging Markets: Investors Already Halfway There
– Some Greek Lessons for Emerging Markets
– Currencies in Freefall Handcuff Bankers From Chile to Colombia
And on, and on.
One particularly alarming case that we’ve been keen to document lately is that of Brazil which, you’ll recall, is “up sh*t creek without a paddle” both figuratively and literally. For one thing, as Goldman recently noted, there’s not a single period in over a decade “with a strictly-worse growth-inflation outcome than that of 2Q2015.” In other words, “since 1Q2004 there has not been a single quarter in which we had simultaneously higher inflation and lower growth than during 2Q2015.” (Read more from “Emerging Market Mayhem: Gross Warns Of “Debacle” as Currencies, Bonds Collapse” HERE)
The U.S. economy ground nearly to a halt in the first three months of the year, according to government data released Wednesday morning, as exports plunged and severe winter weather helped keep consumers indoors.
The gross domestic product grew between January and March at an annualized rate of 0.2 percent, the U.S. Commerce Department said, adding to the picture of an economy braking sharply after accelerating for much of last year. The pace fell well shy of the 1 percent mark anticipated by analysts and marked the weakest quarter in a year.
The economy had expanded at a rate of 2.2 percent in the final three months of 2014 and at a rate of 2.4 percent for the year.
Economists, employers and policymakers now face the challenge of determining whether the slowdown is temporary — stemming mostly from an unusually snowy winter in the Northeast — or a sign of broader problems.
Hours after the fresh data was released the Federal Reserve said that winter slowdown was “in part” reflective of “transitory factors” and that “economic activity will expand at a moderate pace” going forward. Economists expect that the central bank will hold off until the second half of the year, gauging the direction of the economy, before raising interest rates for the first time in 6½ years. In its statement Wednesday, the Fed did not offer any new hints about the timing of its rate hike. (Read more from “U.S. Economic Growth Slows to 0.2 Percent, Grinding Nearly to a Halt” HERE)
https://joemiller.us/wp-content/uploads/logotext.png00Joe Millerhttps://joemiller.us/wp-content/uploads/logotext.pngJoe Miller2015-04-30 03:57:462015-04-30 03:57:46U.S. Economic Growth Slows to 0.2 Percent, Grinding Nearly to a Halt
Photo Credit: Human EventsSomeone did an experiment to test an old tale — that a frog placed in a pot of cool water, which is then slowly and continuously heated, will be boiled to death. By contrast, if thrown directly into scalding hot water, the frog jumps out. But it turns out that, no, once the water got hot enough, the critter hopped out of Dodge.
This raises a question. At what point does the continuous growth and intrusiveness of government make people wake up? This is not just a matter of theory or philosophy. People are hurting — as a direct result of President Barack Obama, his party and the inability of the GOP to make the case for a smaller, less expensive and less intrusive government.
For five years, we have watched as President Barack Obama successfully pushed the following redistributionist agenda for building an economy: Take from the most productive to “stimulate” the economy by redistributing money, often with political consideration involved or attached; allow bureaucrats to pick winners and losers in the market; issue feel-good, top-down regulations that cost jobs and do little to improve conditions; and dictate the terms of health care with ObamaCare, a monstrosity that places one-seventh of our economy under the control of the federal government.
The results are in.
This is the worst economic recovery since World War II. Unemployment remains high. So many able-bodied people are dropping out of the labor force that the “labor force participation rate” remains near a 30-year low.
https://joemiller.us/wp-content/uploads/logotext.png00Joe Millerhttps://joemiller.us/wp-content/uploads/logotext.pngJoe Miller2013-07-18 03:12:372016-04-11 11:18:57Big Government: What Does it Take for America to Wake Up?
The causes of America’s current economic malaise are many, and some are harder to address than others. The misguided fiscal, monetary, and regulatory policies of our profligate and dysfunctional government head the list. Those can be turned around.
But a problem much more difficult to turn back is the rotting of our moral fabric—the decay of the Protestant work ethic—engendered by decades of New Deals, Great Societies and one attempt after another to Spread the Wealth Around. In its stead, we now have a culture of entitlement and dependency that threatens to accelerate our slide into permanent decline.
The alarming statistics can be seen in the accompanying graph. The first is the breadwinner index—the percent of the U.S. male population that is gainfully employed. Only a few points of this decline can be ascribed to the aging of the population. The graph for males 18 to 52 has much the same slope.
The second shows the number of out-of-wedlock births, the rate of which surpassed 40 percent of all births as of 2008. Add to this the new-normal 50 percent divorce rate and we have a country in which the majority of our children are being raised outside of the economic unit once known as the nuclear family.
The third shows per capita inflation-adjusted total government spending, including federal, state, and municipal government expenditures as best as they can be estimated. The extent to which the huge spike in government spending per person over the past 60 years is the cause or the effect of the first two trends is open to debate. But the relationship is clear. When traditional family breadwinners stop carrying their load, the burden falls upon the remaining workers, an increasing number of whom are single mothers struggling to make ends meet.
https://joemiller.us/wp-content/uploads/logotext.png00Joe Millerhttps://joemiller.us/wp-content/uploads/logotext.pngJoe Miller2013-07-18 02:52:002016-04-11 11:19:01Root Cause of America’s Economic Decline: The Loss of the Protestant Work Ethic
Photo Credit: WNDObama has done it. He has brought America down. It only took him just over four years. The Republicans could have stopped him. They didn’t.
How did the nihilistic left succeed in destroying America? Simple. They learned just a little of the capitalism they hate, and they drove your nation into outright bankruptcy.
And here is what the GOP has to say about it: just about nothing.
The once-mighty United States is now the most indebted nation on Earth. In round numbers, here are just some of the vital statistics as the patient dies:
National debt: $17 trillion, or $50,000 per man, woman and child, or $150,000 per taxpayer. Annual federal deficit: $1 trillion. Medicare/Medicaid/Obama”care”: $1 trillion a year. Social Security: another $1 trillion a year. Defense: two-thirds of a trillion. Unemployment handouts: $2 billion per working day. Debt interest: $1 billion per working day. Federal pensions, ditto.
Now for the big numbers. Your government’s Social Security liability is as big as the national debt: $17 trillion. Its prescription drug liability is $22 trillion. Then there’s the Medicare liability of $86 trillion. Total unfunded liabilities of the U.S. government are $125 trillion.
https://joemiller.us/wp-content/uploads/logotext.png00Joe Millerhttps://joemiller.us/wp-content/uploads/logotext.pngJoe Miller2013-05-12 22:27:122016-04-11 11:21:27The Dollar – and the USA – are Toast
Cyprus has agreed to shrink its bloated financial industry and tap big depositors at its two leading banks for billions of euros, clearing the way for a €10 billion European Union bailout the island nation needs to avoid collapse.
The deal with the EU was struck early Monday after days of frantic negotiations that followed the rejection by Cypriot lawmakers of Plan A. That proposal, unveiled little over a week ago, would have imposed a tax on all account holders to raise funds to recapitalize the failing banks.
Now the new bailout plan will protect all deposits of less than €100,000 euros but is likely to mean much bigger losses for account holders with more than €100,000 at the two biggest banks — the Bank of Cyprus and Popular Bank of Cyprus.
Popular Bank will be broken up immediately. Its viable assets will be integrated into the Bank of Cyprus, and its non-performing loans will be moved into a “bad bank” to be wound down.
The “haircut” for Popular Bank depositors will raise about €4.2 billion, while shareholders and bondholders are likely to be wiped out. The scale of depositors’ contribution to the restructuring of Bank of Cyprus has yet to be fixed.
https://joemiller.us/wp-content/uploads/logotext.png00Joe Millerhttps://joemiller.us/wp-content/uploads/logotext.pngJoe Miller2013-03-25 02:08:442013-03-25 02:08:44Confirmed: Bank Deposits To Be Seized In Cyprus, Many Cypriots Have No Cash (+video)
Much like my high-level source within the U.S. Department of Homeland Security outlined in a series of interviews beginning last year, the orchestrated collapse of the U.S. dollar and the entire world’s economic system has begun. The first shots in a global economic take-over were fired in Cyprus as my esteemed colleague and founding editor of Canada Free Press, Judi McLeod laid out in frank detail in her column yesterday and her follow up today.
Please read it and heed her advice, or suffer the consequences of your own normalcy bias that such an event will not happen in the United States, Canada, or from wherever you might be reading this. It will, and the plan appears to be on schedule for a shot across the bow later this spring here in the West, with a more aggressive take-over starting sometime this fall, according to my source.
The Plan
To those needing a quick refresher, the plan is quite simple and can be summarized by the Clinton-era quip attributed to political strategist James Carville, “the economy, stupid” and the June 9, 2010 statement by former Obama czar Van Jones, Socialist extraordinaire, “top down, bottom up, inside out.” It is a plan for a one world Communist economy where the “middle class” will be wiped out through a series of events that will have the same ultimate effect as we are seeing in present day Cyprus.
Based on the events in Cyprus, it should be quite clear to even the most vocal critic of the legitimacy of the information provided to me by my source within the DHS as published on this web site is no longer at issue. The U.S. dollar, the backbone of world currencies and the proverbial firewall preventing the erosion of our national sovereignty, is the ultimate target of a takedown by the global banking interests controlled by a handful of banks and families of the “royal elite.”
https://joemiller.us/wp-content/uploads/logotext.png00Joe Millerhttps://joemiller.us/wp-content/uploads/logotext.pngJoe Miller2013-03-19 03:01:012013-03-19 03:01:01DHS Insider Update: It Has Begun
Photo Credit: Wikipedia With market participants cheering a new all-time high in the Dow Jones, one man is predicting this “misplaced optimism” will lead to a “worse collapse than in 2008.”
Peter Schiff, the eternal provocateur, suggests the Fed’s extraordinary support of bond and housing markets will lead to a market crash as interest rates rise, leaving banks, mortgage originators, and lenders stuck with homes and low yielding loans as the economy slows, exacerbating the decline and throwing the economy into a deeper crisis.
Fed Chairman Ben Bernanke endured some hostile questioning in Congress last week. At one point, responding to a question about QE by Republican Congressman Lynn Westmoreland, Bernanke was explaining “[quantitative easing] doesn’t involve any new spending or revenue,” when he was cut off by Westmoreland, who said “oh, I got you, just money printing, right?” The Fed Chairman’s demeanor froze for a second, after which he continued “it’s acquiring securities in order to reduce interest rates and ease financial conditions in the economy,” tacitly accepting the “money printing” comment.
Precisely those purchases of assets to further ease monetary policy are cooking a bigger financial crash than in 2008, Peter Schiff of Euro Pacific Capital argues, and that collapse will start with the housing and bond markets.
Paradoxically, the housing market is firing on all cylinders, with homebuilders like KB Home and Lennar trading close to their 52-week highs. This is irrational exuberance, according to Schiff, as the market is fully subsidized by the Fed. “The U.S. government is guaranteeing all mortgages, and then buying them up,” explained Schiff, “it’s an artificial market, but the Fed, rather than Lehman Brothers, owns it.”
https://joemiller.us/wp-content/uploads/logotext.png00Joe Millerhttps://joemiller.us/wp-content/uploads/logotext.pngJoe Miller2013-03-07 01:34:572016-04-11 11:23:14Peter Schiff And The Coming Housing Collapse: The Fed, Instead Of Lehman, Owns The Mortgage Market
When the banking crisis crippled global markets seven years ago, central bankers stepped in as lenders of last resort. Profligate private-sector loans were moved on to the public-sector balance sheet and vast money-printing gave the global economy room to heal.
