Death-Watch Updates on the Collapsing Global Financial System

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NDPP

I agree. It is embarassing and depressing to see the goofy nonsense these people evidently still believe in.

Slumberjack

It's beyond remedy isn't it.  The ‘cop’ in this system is supposed to represent the front line guarantor of rights within a free society, but just look at what they do in Quebec to get an idea of the merciless pit human beings are consigned to.

NDPP

Yes, and the electoral partisan silliness we've just been subjected to seems to exhibit more the characterisitics of corporate sports fandom or WWF rah-rah than any kind of reasoned political analysis. On foreign policy issues the three front-runners were virtually indistinguishable and one suspects the underlying economics also - the true 'owners' of the Dominion are well-served by all of them and opposed by none for all intents and purposes. Coke, Pepsi and Orange Crushed. In the end they're mostly  just sugar, artificial flavouring and fizzy gas-bubbles.

iyraste1313

 

"In other words, the decline in buyback activity is primarily a function of rising credit spreads, which will continue rising as long as the bond market is drowning in supply and as long as fears exist that the Fed may hike rates, which will push not only the underlying yields but the spreads on corporate instruments as well. This, and of course, systemic issues like the collapse in the junk bond market over the past year driven mostly by the plunge in commodity prices.

So for all those hoping that buybacks will prove to be the source of much needed stock upside, be careful, and keep a very close eye on IG credit spreads: if these continue widening, then the buyback window may just slam shut very soon."

.........from zerohedge

May I refer to my previous question?....."Will it be loss of confidence in the finances forcing up interest rates, accelerating the bankruptcies with exploding debt burdeons?"

Buybacks has been one of the many scams to continue inflating the stock markets, generating profits, while for the most past the real economies of the buyback corporations are deteriorating...

Rising credit spreads refers to the lack of confidence in these corporate junk bonds versus US treasuries.

"Bond market drowning in supply?!

What this means is that increasing interest rates in these very same corporate junk bonds is making it too expensive to continue borrowing for more stock buybacks.....

So this is hitting the markets while corporate junk bond spreads will continue accelerating!
This in short is one of the mechanisms of the collapse!

NDPP

#829 Keiser Report:  Complicated Criminals (and vid)

https://www.rt.com/shows/keiser-report/320022-episode-max-keiser-829/

"Max Keiser and Stacy Herbert discuss the financial sector 'black material' where all light is absorbed so that all manner of fraud escapes basic understanding..."

iyraste1313

re.."I don't believe there will be a collapse."

the following is scary stuff!

 

The conclusion, even though from Bloomberg, is quite terrifying: "China’s mills face some of their worst conditions ever and the vast majority are losing money, Citigroup Inc. said in September. The outlook is the worst ever amid unprecedented losses, Macquarie Group Ltd. said this month."

China’s steel production may contract by a fifth should the country’s path follow the Europe, the U.S. and Japan, Shanghai Baosteel Group Chairman Xu Lejiang told reporters in Shanghai last week. The company is China’s second-largest mill by output."

Considering China's version of Glencore "Sinosteel" effectively went insolvent one week ago (followed by what may or may not have been a government bailout), the fallout is just starting.

The cherry on top is that China itself is now trapped: it simply can't afford to let anyone default, as one bankruptcy would cascade across the entire bond market and wipe out countless corporations leaving millions of angry Chinese workers unemployed, and is therefore forced to keep bailing out insolvent companies over and over. By doing so, it is adding even more deflationary capacity and even more production into the market, which leads to even lower prices, and even greater bailouts!

In short: this is a deflationary toxic spiral, because while that $30 trillion in inflationary debt led to easy growth and much wealth and prosperity on the way up when prices were soaring and monetary transmission mechanisms were not clogged up, now that China has hit hit a 300% debt/GDP and the direction of the arrow is in reverse, all the growth and all the expansion of the past 7 years will be promptly unwound as mean reversion demands payment.

But perhaps most importantly, as we first reported last week citing BofA's David Cui, we now have an ETA when this whole Chinese debt house of cards, some $30 trillion of it, bursts with consequences that will be so devastating not only China but the entire world, as the one catalyst that pulled the Developed Markets out of depression will be, poetically enough, the same one that pushed it right back in."

Which will be the mechanism for the global collapse?
No doubt the Chines bankers will pull their US treasuries to stall the inevitable spiral of deceleration...putting pressure on the US dollar, interest rates and real estate....while in Canada whatever is left of our steel production, not to mention commodities prices will add to the pressure on the Government revenue...whew all very scary stuff!

Again as I've stated so often before...most of us will be homeless on the streets before we wake up...impotent to do anything!

Slumberjack

We have to suspect that the high inflationary trends around food prices are one way some of the larger corporations are chiseling more money out of the population to make up for declining fortunes elsewhere.  Clearly, discretionary consumer spending and hence manufacturing is taking a beating, so the money is no good there, but on the other hand everyone has to eat.  There should be no reason why everyone is getting jacked at the grocery stores except for naked profit extraction.  As usual governments are doing their Sgt. Schultz routine of seeing nothing.  Once upon a time every increase in the price of a barrel of oil meant higher food prices, obstensibly because of higher costs associated with trucking it all to market.  But that was a lie.  Nowadays they don't even bother offering up plausible explanations.

iyraste1313

"the high inflationary trends around food prices"

The inflation numbers of the Governments are of course a lie....I've heard upwards of 40% increases in food costs...and we've yet to enter the winter season......

this post really ought to be elsewhere, but food production and distribution, for so many reasons is at the heart of building alternative society and culture, when of course we are ready to consider it....but for now the energies are into environmentalism and social democracy...we might just have to wait a little longer til people are hungry!

Pondering

Define collapse. Do you mean like what happened in Greece or are you talking about a collapse of capitalism?

The elites arranged for the developed world to have a recession instead of a depression. They also make sure that the 1% keeps getting richer because the 1% are their minions. The 1% makes sure there is enough for the 20% too, the civil servants, police, and military. The rest you just have to keep alive and not all of them. Pit the upper middle class against the working class and the poor and they are all set.

You said:

What for sure is holding it together still in spite of the increased suffering generally, is the illusion that the elites have it all under control and our confidence in the capacity of the system to ride through the tough spots!

The elites don't "have it all under control".  They do have enough tools to manipulate the system in such a way as to protect their wealth and keep the wheels of the economy turning. They may lose wealth that only exists in numbers on a spreadsheet, be worth 20 billion instead of 50 billion, but they will still have control over the system, maintain their wealth in properties and control over industry and military/police power.

They can be stopped through democracy which demands the consent of the people through our choice in government. Some believe that not voting removes consent but it doesn't because active consent isn't required. If only 10% of people voted pundits would wring their hands but that 10% would still elect a government that would still run the affairs of state. A non-vote is neutral not negative.

Nevertheless we don't need a revolution. We already have the power to depose the elite in an orderly manner. The problem is convincing people that it needs to happen without seeming radical, reckless or unrealistic.

iyraste1313

How long until this translates into an actual drop in oil purchases, and even more importantly, how long until the U.S. itself finds itself in a comparable "overflow" bottleneck, leading to the next, and sharpest yet, drop in oil prices?

from zerohedge....crude supertanker rate collapse, as China exhausts its oil storage capacity.....

If this is true! Watch our oil price collapse, more Canadian companies bankrupted and the beginning of serious problems with the financial sector holding onto its oil junk bonds as money quality collateral...which means the Liberals will be forced soon to bail out the banksters!

And of course watch the $C continue its collapse even respecting all the other suspect fiat currencies!

Re collapse of capitalism? Surely we no longer are in a capitalist era, when the governments through their central banks and other agencies have continually backed up and bailed out the so called privates?

No we are in the full fling of a global fascist system, where corporates and governments and their agents have fused into one entity.

And yes this entity is in serious trouble...the people will have to be squeezed, except of course for the collaborators of the system, the government bureaucrats, the managerial elites, and of course the elites pulling the strings, the elites of the central banks, major investment banks, energy corporations ad nauseum...

and re "They can be stopped through democracy which demands the consent of the people through our choice in government"

As long as our choices are limited to what the elites permit, through their politically correct media outlets, nothing will happen, yes for the vast majority, but chaos and desperation as the economy decelerates at a quickening pace....

This is the frustration that the people who care about the Earth and humanity seem to be lost in horserace politics and issue oriented politics like climate change...

As to what I mean by collapse? bankster failures and desperation leading to government bailouts to save the system, accelerating economic depression squeezing people on to starvation social support payments, growing fightbacks leading to increasing police repression...Bill C51 on steroids!

Any attempt to change this process yes means revolution...how it can be done is an essential discussion...where???

And let there be no mistake! Any serious political alternative will be thrashed, ridiculed and repressed!

 

 


Northern PoV

Northern PoV wrote:

When I was young, I believed revolution was just around the corner.

As I aged I realized that it is hard to predict the future* because no one knows what is going to happen.

*(or at least the timing of probable future events) 

NDPP: As to this being a good reason not to vote: Grow up!  (In the worst case analysis we at least get to negotiate who our warders will be and the conditions of our cells, best case we are setting ourselves up for a civil approach to the coming crisis.) 

Pondering: Artistic tastes asides - I am going after your specious financial ploy:

What good does a $40M painting do for us if it sits in a gallery?  I always thought the "stripe" was a waste of money and just cause the 1% values it, doesn't help the rest of us. We are out the ~$2M we spent back when a "dollar was a dollar' LOL.

Northern PoV

.

Pondering

Northern PoV wrote:

Northern PoV wrote:

When I was young, I believed revolution was just around the corner.

As I aged I realized that it is hard to predict the future* because no one knows what is going to happen.

*(or at least the timing of probable future events) 

NDPP: As to this being a good reason not to vote: Grow up!  (In the worst case analysis we at least get to negotiate who our warders will be and the conditions of our cells, best case we are setting ourselves up for a civil approach to the coming crisis.) 

Pondering: Artistic tastes asides - I am going after your specious financial ploy:

What good does a $40M painting do for us if it sits in a gallery?  I always thought the "stripe" was a waste of money and just cause the 1% values it, doesn't help the rest of us. We are out the ~$2M we spent back when a "dollar was a dollar' LOL.

My point is that the dollar bill, all currency, is as worthless as the Voice of Fire. All currency could vanish tomorrow and the oligarchs would just create a new currency, assign it a value, and get everyone working again to create more wealth for the oligarchs.

Greece has already collapsed but there has been no revolution and likely won't be because it is a democracy. Syriza didn't have a mandate to leave the Euro. Greeks fear leaving the Euro would only increase their hardship.

Compared to Greece, North America is endlessly wealthy. Canada and the US together don't have any need for the rest of the world. Each country alone has enough for complete self-sufficiency, together we control the entire continent. The only "fence" needed is between the Americas for which we use Mexico.

World wide economic collapse would likely bring more power for oligarchs. In North America we would look to them for our salvation. Syriza types would be rejected and people would be more likely to become more right wing not left wing as security both physical and economic would be top concerns. People would look to our governments to protect and provide. The likely response would likely be "this is no time for a revolution".  "We need people in power who know what they are doing to run things". 

The key to revolution today is democracy not disaster.

Neither preaching financial armageddon nor the death of oceans is galvanizing people to revolt in significant numbers. We live in a democracy. Collectively we hold the power to make the Leap Manifesto a reality. The people who wrote it are free to form a political party.

The environmental movement and occupy illustrate that we can be successful. We just have to find a new approach.

Mr. Magoo Mr. Magoo's picture

Quote:
All currency could vanish tomorrow and the oligarchs would just create a new currency, assign it a value, and get everyone working again to create more wealth for the oligarchs.

I think that if all currency vanished -- or just became truly worthless -- tomorrow then the "oligarchs" would have a tough time rebooting the whole system from their safe-rooms.

NDPP

Keiser Report: Ep 831 (and vid)

https://www.rt.com/shows/keiser-report/320603-episode-max-keiser-831/

"Violent market surrogates as the doors of misperception in a brave new world..."

iyraste1313

¨ All currency could vanish tomorrow and the oligarchs would just create a new currency, assign it a value, and get everyone working again to create more wealth for the oligarchs.¨

This is a misunderstanding of the wealth value of currency!
Why do you think the Venezuelan currency has crashed...because international investors no longer see any value in its currency or any other currency its Government may print! When the moneyness value of currency is lost the currency dies...this is what´s now happening to the Canadian currewncy!

¨Greece has already collapsed but there has been no revolution and likely won't be because it is a democracy¨

No it is not because it´s a democracy...clearly it is not! Whew! No it is because its leadership caved without an understanding of the mentality of the oligarchs and their European elites...precisely why there will be nothing in Canada unless people wake up and try to understand what is happening here.....

¨¨ North America is endlessly wealthy. Canada and the US together don't have any need for the rest of the world. Each country alone has enough for complete self-sufficiency, together we control the entire continent. ¨

North America is anything but self reliant...we´ve been industrially bankrupted by globalization!

Our technologies are dead in the water as too overly capitalized, based on too much debt in industry which is totally unsustainable!
Canada´s 34 billion in subsidy to the oil industry, not to mention ours is losing money in quantity as the prices collapse?

Not to mention the lumber mills, the mining industry (except for gold and possibly diamonds). Hey how about our agriculture based on its fossil fuel inputs?

Our finance industry is collapsing extracting capital from real economic industry and trying to prop up its bloated junk assets!
Where pray tell are we going to find the working capital for rebuilding? It´s all been exhausted in the scams of finance capital.

We are in big trouble...and if our humanitarioan activists can´t see that, we´re doomed! 

NDPP

They can't. They won't. We will fall.

iyraste1313

21 Facts About The Explosive Growth Of Poverty In America That Will Blow Your Mind By Michael Snyder, on November 2nd, 2015.......

A clear statement on the strip mining of the productive assets of the USA to refinance the financial system...This is an essential state of fact to be understood, if we are to get a handle on what is happening to western economics....there are no halfway measures here...the financial system must be taken down! An alternative movement must include this in its program...or its another dead end political scam....

iyraste1313

...you have to just wonder what it takes to shock and awe complacency.....

US saddled with debts of $65 trillion: Fmr. comptroller

Sun Nov 8, 2015 6:7AMWhen all of America's unfunded liabilities are added up, the national debt is three times as much the oft-cited figure of $18 trillion, says Dave Walker.

When all of America's unfunded liabilities are added up, the national debt is three times as much the oft-cited figure of $18 trillion, says Dave Walker.

 

...so with all the hype of the bs stats on unemployment in the USA, the Fed may just raise the rate .25 of 1%.... a cool 150 billion interest extra!

But whatever they do...it is inevitable, the forces are coalescing to kill King dollar as the international reserve currency, forcing up interest rates!

 

Slumberjack

They gerrymander unemployed stats as well.  Most uncompromised reporting puts US unemployment figures in the low to mid 20 percentile.  Upwards of 25% of the available USian workforce are without a job.  Vast numbers beyond that are under-employed, or work in jobs that pay a few dollars an hour depending on the location.  Minimum wage regulations are quite flexible from state to state, jurisdiction to jurisdiction.  A waiter for instance will earn about 3 or 4 bucks an hour supposedly because they're in a job where they can make tips. 

iyraste1313

Bond Blood-Bath Continues - 5Y Yield Nears Key Technical ResistanceSubmitted by Tyler Durden on 11/09/2015 - 09:33

yes they can gerrymande to their heart´s content, but some numbers are real...and the key to the collapse lies in the interest rates!

With so much debt swishing around, personal, and government at all levels, corporate.....any increases based on market pressures will strain the system...that´s what the intent of this thread was...to watch the strains, to get prepared!

iyraste1313

But the worst news: another influx of soon to be completed office space means another 2 million square feet in rental availability are about to hit the market, sending rents to what may soon be record lows.

Artis REIT, which has 20 office buildings in Calgary with tenants including power generator TransAlta Corp., has 2.2 million square feet uncommitted starting in 2016, according to company documents. Artis executives didn’t respond to requests seeking comment.

 

In addition to the current glut of space, five office towers -- each with at least 430,000 square feet -- are due for completion in the next three years in Calgary, some only 36 percent leased as of October.

 

Olcheski, who’s worked in Calgary for about 10 years, is trying to remain optimistic amid the uncertainty. It’s going to be his best year yet for leases to smaller, non-energy tenants, for example.

What happens then? Nobody knows, or rather, only god does: "God only knows what’ll happen if oil doesn’t rebound," he said. "I try not to let that penetrate my mind" Olcheski concluded.

...the bubbles are bursting in Canada...now the commercial real estate market...so the oil price bubble burst is extending its wings!

so how are the banks holding out....financing all these bankrupt mega commercial real estate projects????

 

iyraste1313

 We Have Never Seen Global Trade Collapse This Dramatically Outside Of A Major Recession. So Buckle Your Seat Belts Boys And Girls, Because We Are Definitely In For A Bumpy Ride. Submitted by IWB, on November 9th, 2015

 

By Michael Snyder

If you have been watching for the next major global economic downturn, you can now stop waiting, because it has officially arrived.  Never before in history has global trade collapsed this dramatically outside of a major worldwide recession.  And this makes perfect sense – when global economic activity is increasing there is more demand for goods and services around the world, and when global economic activity is decreasing there is less demand for goods and services around the world.  So far this year, global trade is down about 8.4 percent, and over the past 30 days the Baltic Dry Index has been absolutely plummeting.  A month ago it was sitting at a reading of 809, but now it has fallen all the way to 628.  However, it is when you look at the trade numbers for specific countries that the numbers become particularly startling.

Just within the last few days, new trade numbers have come out of China.  China accounts for approximately one-fifth of all global factory exports, and for many years Chinese export growth has helped fuel the overall global economy.

But now Chinese exports are falling.  In October, Chinese exports were down 6.9 percent compared to a year ago.  That follows a decline of 3.7 percent in September.

iyraste1313

¨Retail Stocks Are Crashing At The Fastest Pace In Over 4 Years  Submitted by Tyler Durden on 11/13/2015 09:59 -0500
   The S&P Retail Sector ETF is down almost 9% in the last 8 days.¨

This in spite of zero interest rate policy and successive quantitative easing with record debt at all levels, an sure indication that the pumping of finance into the system is not buoying up the bubbles!

NDPP

Ukraine's Debt To Russia: Detonator for Global Financial Chaos

http://www.strategic-culture.org/news/2015/11/11/ukraines-debt-to-russia...

"The $3-billion loan Russia provided to Ukraine in December of 2013 will mature in a month and a half. Kiev has made the decision to overlook what it owes to Russia. Such daring, or perhaps it should be called audacity, can be explained by the fact that the Ukrainian government senses that it has the support of Washington.

And the US is even working to get Kiev's financial chicanery blessed by the IMF.

But if Kiev refuses to pay, this will only precipitate a financial crisis. And not just in Ukraine but all over the world..."

iyraste1313

I suggest the financial crisis will bring collapse and chaos, when it finally hits the financial centre...Wall Street....

......For the first time in at least a decade, imports fell in both September and October at each of the three busiest U.S. seaports, according to data from trade researcher Zepol Corp. analyzed by The Wall Street Journal. Combined, imports at the container terminals at the ports of Los Angeles, Long Beach, Calif. and around New York harbor, which handle just over half of the goods entering the country by sea, fell by just over 10% between August and October.

 

The declines came during a stretch from late summer to early fall known in the transportation world as peak shipping season, when cargo volumes typically surge through U.S. ports. It is a crucial few months for the U.S. economy as well: High import volumes can signal a confident view on the economy among retailers and manufacturers, while fears of a slowdown grow when ports are quiet...........

 

This info of course refers to the economics not the finances...which show general deterioration......but it is in the machinations of the credit system underlying the economics, in this case the shipping industry, the transport indices of Wall Street that must be carefully watched!

The general thesis of course is that collapsing finances, i.e.general bubble bursting will be accompanied by military distractions to increase surveillance and control, in preparation for the coming riots of desperation!

 

iyraste1313

Oil Weakness Accelerates, Slams OPEC Export Price Below $40 For First Time Since Feb 2009  Submitted by Tyler Durden on 11/16/2015 10:16 -0500

Overnight saw a significant ramp higher in crude prices as, presumably, the Paris attacks sparked further Mid-East tension fears and increased the war premium (as Japanese economic growth raises more demand conccerns). But that has all gone now as WTI Crude nears a $39 handle once again...

...the temporary drop in oil prices from their $110, for which the Canadian oil industry will ride out through increased bankster support...is not reality...Canada is in deep trouble, along with its collapsing metals prices, threatened real estate ad nauseum!...unless someone somewhere in this country is prepared to discuss rebuilding a sustainable society built from community economics and technologies we are in deep trouble!

montrealer58 montrealer58's picture

No one is willing to talk because it would be an end of their vested interests.

iyraste1313

from David Stockman....

There was a tremendous study that came out in February from the McKinsey Global Institute. It did an excellent job of trying to calculate, track and total up the amount of global credit outstanding, public and private.

According to the report, we’re now at the $200 trillion threshold. That’s up from only about $140 trillion at the time of the 2008 financial crisis. So we’ve had a roughly $60 trillion expansion worldwide of debt since 2008. Over that same time, global GDP only increased by about $15 trillion (roughly speaking, from $55 trillion to $70 trillion).

Owing to central bank money printing and all of this unprecedented monetary stimulus, we’ve added about $60 trillion of new debt. And we’ve gotten somewhere around $15 trillion of extra output in return. That’s not even one-third of the amount of debt.

The numbers from China are even more startling. In the year 2000, China had $2 trillion of credit outstanding. In 2008, Chinese debt was $7 trillion. It now has an unbelievable $28 trillion of credit outstanding.

And at the time of the 2008 crisis, China had allegedly — if you believe the numbers, which no one really should — $5 trillion of annual economic output. It’s now $10 trillion. So officially it’s doubled its GDP.

But China’s debt is up more than $20 trillion while its GDP is up just $5 trillion.

These are extreme unsustainable deformations. They just scream out, “Danger ahead. Mayhem has happened.” As all of this unwinds and becomes resolved it is not going to be pretty.

 

montrealer58 montrealer58's picture

The gross number is likely around the total derivatives overhang at the Bank For International Settlements. The last I looked it was about $600 trillion.

bekayne

Do the Michael Snyder fans here read his other blog?

http://whatdoesthebiblesayabout.com/archives/what-do-we-believe-our-stat...

We believe that the Lord Jesus Christ will physically return to this earth one day.

We believe in the millennial reign of Christ during which Jesus will rule over earth for 1,000 years following His second coming.

We believe that a final judgment will take place for all those who have rejected Christ. They will be judged for their sin and cast into the lake of fire.

We believe and look forward to a new heaven and a new earth that God will create.  We will live and dwell with Him there forever following the millennial reign of Jesus on Earth.

http://rationalwiki.org/wiki/Michael_T._Snyder

The Economic Collapse Blog plays to the heart strings of every survivalisttax protester, extreme libertarian, and rapture-ready nut that can access the internet.

iyraste1313

What Michael Snyder has to do with any of thisis beyond me!
My point as ever is to clarify one economic theory which is solid, the bell curve of financial bubbles!

As financial stimulus is generated, it first producces some economic stimulus, but over time as the financial stimulus accelerates, the economic effect deteriorates...the flattening of the bell curve!

What we are now into is the Chinese financial stimulus plan...which of course has benefiited the stock markets somewhat at the core of the global system, while the periphery continues to collapse, i.e. the commodity countries...but the overall global GNP increase is now stagnating...

what clearly we are into now is the final terminal phase of the global financial bubble...preceeding the global collapse...this is inevitable....

too bad our so called activists can't be bothered to try understanding what is going on...rendering their voices and actions ineffectual... 

iyraste1313

from Peter Schiff (an ecdonomist that actually predicts accurately...)

 

I read a statistic… The average American has less than a $5000 net worth… it’s pathetic… we’re basically broke… but in fact it’s much less… If you actually took the national debt and broke it down per capita, the average American has a negative net worth because the government has borrowed in his name more than the average American is able to save.

What’s happening is pretty much what we would anticipate. I don’t see from the data any real economic recovery, certainly not in the United States.

 We’re spending more money, but it’s not because we’re generating more wealth. We’re generating more debt. We’re using that borrowed money to consume and so temporarily it feels that we’re wealthier because we get to spend all that money… but we have to come to terms with paying the bill.

 The bills are going to come due. Right now interest rates are being kept at zero which makes it possible to service the debt even though it’s impossible to repay it… at least we can service it. But once interest rates go up then we can’t even service it let alone repay it.

 

And then the party is going to come to an end.

NDPP

Financial World Split: Dollar Group vs Brics Group  - Michael Hudson

https://www.rt.com/op-edge/325227-ukraine-imf-loan-russia/

"By imposing new lending rules within the IMF, the US has declared financial war against countries that are not using American dollars in foreign trade and whose currencies are not based on the US dollar, Wall street analyst Michael Hudson told RT."

Just another nail in the coffin of the global financial system as it is desperately gamed for geostrategic purposes by a dying hegemon.

montrealer58 montrealer58's picture

"Collapse" means depression, and a deflation of commodities prices, wages, and everything else. The solution is to pump more US dollars in, which they will continue to do to maintain hegemony over the world financial system.

NDPP

Stocks Plunge Amid Fears of Global Slump and Credit Meltdown

https://www.wsws.org/en/articles/2015/12/12/econ-d12.html

"Global stock markets plunged Friday as oil prices hit new lows, threatening to crash the junk bond market and trigger a new financial meltdown. More than seven years after the 2008 financial meltdown, not only is there no genuine economic recovery, the measures taken to rescue the banks and the financial elite have compounded the underlying contradictions of the world capitalist system, bringing it to the brink of an even more catastrophic breakdown."

Ready or not here it comes...

NDPP

Junk Bond Panic Signals New Stage in Crisis of World Capitalism

http://www.wsws.org/en/articles/2015/12/14/pers-d14.html

"There are many indications that last week's selloff on stock and bond markets signifies a new and explosive stage in the world capitalist crisis. The junk bond crisis exemplifies the diseased state of capitalism that finds expression in the political superstructure in the ever-rising tide of militarism and war, the drive toward dictatorship and the relentless assault on the living conditions of the broad mass of working people..."

montrealer58 montrealer58's picture

Word is there is between $500B and $1T in these junk-bond funds. It is not yet clear whether there will be contagion.

iyraste1313

I'm afraid this is the final straw of the global capitalist system and its bursting bubble.

Without liquidity to prop up its stock price, and with so many of them in bankruptcy, re their oil and commodities prices v. costs of production, vast sections of the markets are receding, leading to the inevitable contagion to the financial assets, the banks, the real estate market assets etc.

Now is the time to discuss alternatives...but I expect we will be huddling in the cold before we get around to that remote liklihood!

NorthReport

The title of this thread: Uh, with the TSE rising almost 250 points today, in spite of the tanked oil prices, don't think so.

http://www.theglobeandmail.com/globe-investor/

iyraste1313

Dow Dumps 500 Points From Post-Yellen Highs Amid "Policy Error" FearsTyler Durden's pictureSubmitted by Tyler Durden on 12/18/2015 10:21 -0500

Just in case yesterday's weakness was mistaken for "well, it's just stabilizing before the next leg higher," US equity markets are pooping the bed this morning with the Dow down over 500 points from its post-Yellen highs, FANGs plunging red, credit collapsing, and bond yields slumping. Between the widely watched quad-witching, Fed policy error concerns, and the utter failure of the Bank of Japan's efforts to save the world, global stocks and bonds are flashing red warnings for the end of centrally planned markets.

That was not supposed to happen...

.......what this means is that the FED's plan to begin raising the rates has hit the junk bond market hard, meaning the funds available for stock buybacks is seriously weakening...the junk bonds of course refers to the commodities and energy indices borrowing projects, that is high risk but high yield, high profit taking corporate loans markets...what we are well into right niow is a serious flight from high risk by the bankster fraudster investment class!

...complacency if you wish...join the masses as they continue to be entertained to death while their authorities continue to promote the end of life on this planet

NDPP

Bail-Ins Begin: A Crisis Worse Than ISIS  -  by Ellen Brown

http://www.counterpunch.org/2015/12/30/bail-ins-begin-a-crisis-worse-tha...

"At the end of November an Italian pensioner hanged himself after his entire 100,000 EUR savings were confiscated in a bank 'rescue' scheme..."

 

Canadian Dollar Could Sink as Low as 68 Cents As Bond With Oil Grows to World's Strongest

http://business.financialpost.com/investing/market-moves/canadian-dollar...

"Where the price of oil goes, so goes Canada's dollar. The Canadian dollar's decline couldn't have come at a worse time for Canada's debt-laden households..."

 

NDPP

Keiser Report: 'Bankism', Oil Prices and US Election Insanity

https://youtu.be/SROM52ibmpw

"When all else fails, they take it to war..."

 

NDPP

Dow Jones and TSX Slump After China Halts Trading Due To Huge Dive

http://www.cbc.ca/news/business/china-stock-prices-1.3388119

"Stock markets in Toronto and New York were sharply lower today after Chinese stocks plunged by more than seven percent, triggering an automatic shutdown in trading in China..."

iyraste1313

Baltic Dry Ship Index Tumbles to Fresh Record Amid China Turmoil Alaric Nightingale AlaricNJanuary 5, 2016 — 6:32 AM PST  Bloomberg 

  • Measure falls to 468 points, lowest since it began in 1985

...whatever the machinations and manipulations of the so called financial indices...this is the reality of the continuing  collapse of corporate globalization....not only must we be in preparation for the calamities to come especially in so vulnerable a system as that of the rape and pillage of the Territory of Canada...but we must consider a social movement...first to protect us...secondly to prepare to transform the culture, economics and politics of corporate Canada!!

 

iyraste1313

By David Haggith

In a dynamite interview, Richard Fisher, former president and CEO of the Federal Reserve Bank of Dallas, gave what may be the biggest confession you’ll ever see and hear from a Federal Reserve insider: the Federal Reserve knowingly “front ran” the US stock market recovery (i.e., manipulated the market) and created a huge asset bubble. Fisher expresses certainty that the “juiced” stock market will come down and is coming down now that the Fed has taken its foot off the accelerator … and that it has a long way yet to go.

 

iyraste1313

2008 Repeat Coming, Says George Soros, Harbinger of “Impending Financial Markets Crisis”

Mac Slavo
SHTFplan.com
January 8, 2016

...except of course this time isn't a repeat...its the game changer! As the central banks do not have the capacity to buy their way out this time...and it's starting with China, which the West central banksters have no control over....

yes we're getting to engage now in this historic capitalist crisis

iyraste1313

...the present catalyst for the collapsing financial system lies in China...and with their Government determined not to engage in further financial keynesianism? the collapse will continue and with plunging indices.....this may be the real deal!

 

China Warns No "V-Shaped" Recovery Is Coming; Says "There Will Be No Strong Economic Stimulus"  Submitted by Tyler Durden on 01/11/2016 11:17 -0500

One week ago, many were shocked when an in an exclusive interview with China's official mouthpiece, the People’s Daily, an "authoritative insider" offered his interpretation of the details of China’s supply side structural reform.

This anonymous person who was important enough to be on the cover page of Xinhua and thus to set expectations accordingly said that China's proposed "reform was decided on after careful deliberation about China’s economic situation" adding that "new economic risks are emerging from falling economic growth, industrial commodity price, corporate profit and the growth rate of fiscal revenue.
In addition, most of these problems are structural rather than cyclical."

His punchline: "against such a backdrop, China’s economy is unlikely to achieve a V-shape rebound, but instead an L-shape growth."

But his most dire warning was one which would make an already unhinged Paul Krugman even more unhinged: "To deal with the medium and long-term economic malaise, the traditional Keynesianism methodology does not work. A structural reform is thus needed to address the root cause."

NDPP

RBS Tells Investors: 'SELL EVERYTHING' as Crisis Nears

https://www.rt.com/business/328607-rbs-2016-markets-oil/

"Sell everything except high quality bonds. This is about return of capital, not return on capital. In a crowded hall, exit doors are small,' said the banks credit team in a note sent to clients, quoted by the Telegraph..."

iyraste1313

You can see one such report here.  According to it,

Commerce between Europe and North America has literally come to a halt. For the first time in known history, not one cargo ship is in-transit in the North Atlantic between Europe and North America. All of them (hundreds) are either anchored offshore or in-port. NOTHING is moving.

 

This has never happened before. It is a horrific economic sign; proof that commerce is literally stopped.

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