Canada Dollar Set For Unprecedented Plunge, Top Forecaster Says
http://www.bloomberg.com/news/articles/2016-01-12/canada-dollar-falls-be...
"The top forecaster of the Canadian dollar said the currency will fall to a record 59 US cents by the end of the year as further weakness in the energy sector saps growth in an economy already stretched by a heavily indebted consumer and the Bank of Canada cuts interest rates for a third time..."
¨...unprecedented plunge¨
Thanks NDPP for this....imminently we are in for some shocks....we in Canada are in a checkmate situation...with bankruptcies foreclosures and personal catastrophes all in the works, whether the Government tries to protect te dollar, meaning major interest rate defaults and derivative defaults, or letting it drop meaning major inflationary costs to everyone and government...and as the economics collapse leaving people in desperation, the government will have to major cutback on its social security...
things in Canada will get pretty grim and very fast...and judging by comments in so many threads, here, people are totally clueless and in denial...at least at the intellectual and academic level...a new thread would be useful...how to prepare how toorganize for the shocks to come.....thanks!
Keiser Report: Bonfire of Misallocated Capital
Max and Stacy discuss the bonfire of misallocated capital as everything from the S&P 500 to China's Producer Price Index to South Africa's rand signal a deflationary collapse. Russia and China proceed with 'de-dollarisation'.
'You can't taper a ponzi scheme.'
Beware the Great 2016 Financial Crisis
"Albert Edwards joins RBS in warning of a new crash, saying oil price plunge and deflation from energy markets will overwhelm central banks, tip the market and collapse the eurozone..."
Chinese Debt Bubble About To Burst (and vid)
http://therealnews.com/t2/index.php?option=com_content&task=view&id=31&I...
"So this is a wakeup call for the world economy..."
Gerald Celente On the 2016 Financial Crisis
"Currency wars, trade wars, world war..."
The Ruling Class Meets At Davos
http://www.wsws.org/en/articles/2016/01/19/pers-j19.html
"This year's meeting takes place against the backdrop of the threat of a global stock sell-off, a collapse in commodity prices, deepening divisions within the European Union, as well as growing tensions in the Middle East, Eastern Europe and the Pacific.
The gathering of global billionaires at Davos embodies the very social crisis its participants will be discussing. The summit is scheduled to being just two days after the publication on Monday of a report by the global charity OXFAM showing that social inequality soared last year.
Oxfam wrote, 'In 2015, just 62 individuals had the same wealth as 3.6 billion people - the bottom half of humanity..."
World Economy Facing 'Wave of Debt Defaults' Says Economist Who Predicted Lehman Crash
https://www.rt.com/business/329566-world-global-defaults-economy/
"The financial situation in the world has become so unstable that a new wave of defaults and bankruptcies will soon emerge,' says William White, the Chairman of the OECD's review committee and former chief economist for the Bank for International Settlements (BIS).
'The situation is worse than it was in 2007. Our macroeconomic ammunition to fight downturns is essentially all used up,' the economist told the Telegraph before the World Economic Forum in Davos."
On The Brink: Decision Makers Flock To Davos To Save Global Economy
Fear of a new economic meltdown
The Global Plutocrats Meet in Davos
http://www.greanvillepost.com/2016/01/19/unprecedented-global-wealth-dis...
"The disease pretending to cure itself..."
no doubt they will be discussing massive government financing scams and potential bailouts...a PR move to calm the markets...which may work for a day or 2!
How The Banks Are Tightening The Noose On U.S. Oil FirmsSubmitted by Tyler Durden on 01/20/2016 - 14:59
After the lifting of sanctions in Iran this week, expectations for increased oil output has put further pressure on oil prices with both Brent and West Texas Intermediate prices dropping to the lowest levels seen this century. In the US, embattled producers are finally being forced to consider ceasing production as banks reign in on credit lines for fear of rising bad debts....
.....the interest rates on energy junk bonds are now over 17%!! the Exchange Traded Funds and Mutual Funds all capitalized through the stock markets are the main buyers!
trouble is their capital is disappearing!
Talk about further QE`s will do nothing to change this!
Planet of Fear - by Pepe Escobar
http://www.counterpunch.org/2016/01/21/planet-of-fear/
"Fear reigns supreme..."
On January 28th, 2016, just a few short days from now… I believe one company’s management could drop a bombshell on unsuspecting investors....from David Stockman
....is the real estate market of North America..about to crash?
The Stock Market Is Not The Economy
http://fivethirtyeight.com/features/the-stock-market-is-not-the-economy/
re the stock market is not the economy!
precisely why this thread is labelled the death watch of the global financial system...
in fact as you may have noticed from these articles...the economy globally is in desperate states.....
for this past month, there have been zero!! freighters shipping containers around the world...grain, iron ore, fertilizer and minerals, some of the bigger elements...the global economic system is presently in a state of paralysis!
Which means as inventories drop..expect major deficiencies in the corporate retail world...food imports!
However as you may well realize...everything done in the economy is based on credit and debt...and in fact the stock market is mostly just a debt creation system...
in the example of the tar sands.....what is keeping things from total paralysis is the huge debt loads at absurd interest rates being carried by the oil industry here...come April, with the next round of junk bond payouts to the Canadian majors, expect total bankruptcies and paralysis...
which is what is required by the top elites before they begin to jack up the price of oil by the hundreds! And how?
Well read the info in our internationalist threads...by a war between the Sunni Wahabis and Shiítes in Saudi Arabia....which explains the murder of the shiíte clergy and human rights activist.....
And so what is going on? other than some machiavellian manouevers by the elite bankers to eliminate the middling oil and gas companies to gain total monopoly control...
it´s all pretty sick and evil! For sure! But until people start waking up to the oligarch controls of the financial system and develop some rational political analysis? we are doomed!!
from zerohedge...
¨One wonders what happens in the event the bank suddenly has to take a massive writedown on its energy book. Actually one doesn't wonder. One knows what will happen: Alberta will have to bail the bank out, setting up a ridiculous scenario wherein provincial authorities will be forced to inject capital to cover losses on loans they forced the lender to make.¨
For any progressives...this is the inevitable as the global finance bubble continues to burst...nothing can stop this process, but to prepare our alternative survival orientation...social programs will be cut, the $ will continue to be devalued...traditional political remedies are useless...we are in the collapse...when its completed there will be zero capital or opportunity for us to build alternatives...and as the violence of desperation grows, the State security apparatus will move into place...with the help of the US of course!
IMF and World Bank move to forestall oil-led defaults
FT
January 28, 2016
Officials from the International Monetary Fund and the World Bank are heading to Azerbaijan to discuss a possible $4bn emergency loan package in what risks becoming the first of a series of bailouts stemming from the tumbling oil price.....
.......whew! if panic isn`t setting in....and then the BOJapan`s announced negative interest rates....so the total desperate collapse has been postponed! whew! for a day or 2?
So, our question for today, is it time to panic about Deutsche Bank yet?
....from zerohedge
Actually if you follow the numbers, the banks of Italy are taking the biggest hit right now....
what this means of course is that the financial collapse is well into the heart of the global system...its a pack of dominoes
....I have to wonder if anyone has any interest in the fact that their system is threatened, and that people are preparing politically to deal with this reality!
the threat to the banks, sitting high in loan leverage with oodles of junk assets, ready to implode, means the real estate is next...
Bank Selloffs Replacing Oil Rout as Stock Market Pressure Point Lu Wang February 3, 2016 — 12:48 PM EST
Why Bank Stocks Are Getting Pummeled....
from Bloomberg! Check it out.....time for complaceny and faith in the criminal system ruling over us in Canada is over!
European Bank Bloodbath Crashes Bond, Stock Markets Submitted by Tyler Durden on 02/08/2016 08:50 -0500
Just as we warned, not only is it time to panic but the panic is 'contagion'-ing over into the sovereign risk market. European banks are in, freefall, down over 4.3% broadly, crashing to 2012's "whatever it takes" lows...
I did try to promote some discussion re the increasingly worrisome signs of the imminent crash...here in this thread, from day one!
Not much interest? Well now there are no more signs to come...the final crack has taken place over the past month, what with the crashing global bank stocks...so yes now we´re in panic time...soon to freeze over the system, and as I tried to explain, the opportunities to take heed and organize self defence is gone....
the governments will huddle and decide to bail out the banks...which of course is a joke...they´d have to steel every cent from every depositer and more some to not even mitigate the disaster they´ve created!....
so they will have one option left...to inflate out of debt...so goodbye pensions, social security social programs....
Yep. Down she goes...
The Return of Crisis: Everywhere Banks Are in Deep Trouble
http://www.counterpunch.org/2016/02/10/the-return-of-crisis-everywhere-b...
"Let me be blunt: this next crash will be far worse and more dramatic than any that has come before. Literally the world has never seen anything like the situation we collectively find ourselves in today."
Canada Sells Off Most Of Its Gold Reserves
http://www.cbc.ca/news/business/gold-canada-reserves-1.3443700
"Canada is selling off most of its remaining gold reserves mainly by selling gold coins, figures from the Bank of Canada and Finance Department show.
Back in the 1960s, Canada held more than 1,000 tonnes of gold. But it begain steadily selling off its hoard and by 2003 the country had just 3.4 tonnes. Now Canada has less than one tonne."
China has over 1,743 tonnes, adding 580,000 ounces to its reserves last month alone. Russia's reserves are reportedly valued at $50 Billion and its central bank buys most of the national output.
Canada is a very stupid country.
This is a perfect storm, and a great environment for bears. Bull steak is on the menu!
1. Now that the former Harper government is no longer buying oil on world markets, the oil price has crashed.
2. Many oil papers were written based on oil yield, which is no longer extant
3. Many pension funds are loaded up with now worthless oil papers, including the CPP which is stacked with Harper cronies who did self-serving deals.
4. Many banks have oil papers on their balance sheets as 'assets', and unlike Canada many countries have zero capital reserve requirements.
5. Crowd sourcing could very well replace fractional reserve banking and kill the Bank mortgage market while causing property prices to fall to replacement value (~~$175/sq. ft.)
6. Because of zero and negative interest rates, it is impossible to price the corresponding loan. Zero? Infinity? What in between?
7. Countries are playing a 'beggar thy neighbor' currency war
8. Reality is setting in on investors in ridiculous 'growth' shares based on non-existent 'forward PE ratios'.
9. Cash is beating all asset classes
10. Margins are being called as banks have to replace bad debt with good cash. When that happens, all of the above have to be sold.
#selleverything #bearmarket
Montrealer...thanks for this!
Stocks Dive as Confidence in Fed Fades
http://www.counterpunch.org/2016/02/15/stocks-dive-as-confidence-in-fed-...
"Zero rates and QE have stopped working and that has investors worried. Very worried..."
what we have now is a general running for the exits...as stock market created illusionary moneyness is contracting in its death spiral....corporate bonds are being sold off, junk bonds are imploding.....the system now is clearly in its death spiral...nothing! can slow it or stop it now.....
which of course leads to the inevitable suicide wish for global war...now on the horizon...
but the mass media valiantly maintains its illusions of normalicy...so that by the time people wake up to the reality of system fail...the police state will be well entrenched!
What to do? The lack of any debate in these or any pages I know of, at least in Canada, is deafening!
what we have now is a general running for the exits...as stock market created illusionary moneyness is contracting in its death ...
but the mass media valiantly maintains its illusions of normalicy...so that by the time people wake up to the reality of system fail...the police state will be well entrenched!
What to do? The lack of any debate in these or any pages I know of, at least in Canada, is deafening!
I hear ya loud and clear and concur!
At least we are able to debate at this site. The growing censorship at many MSM sites is both predictable and disturbing.
The New Global Financial Cold War - by Michael Hudson
http://www.counterpunch.org/2016/02/19/the-new-global-financial-cold-war/
"The world is being split into two halves: The US dollar orbit and countries that the US cannot control and whose officials are not on the US payroll, so to speak..."
Canada is obviously and enthusiastically with the former.
...as suggsted weeks ago now...the system now is imploding at an accelerating rate...we are no longer following the steps to the collapse...just watching the effects....
Panic Below The Surface: "Banks Are Selling Energy Loans At Cents On The Dollar To Ensure Their Own Survival" Submitted by Tyler Durden on 02/21/2016 11:46 -0500
One week ago, when we commented on the latest weekly update from Credit Suisse's very well hooked-in energy analyst James Wicklund, one particular phrase stuck out when looking at the upcoming contraction of Oil and Gas liquidity: "while your borrowing base might be upheld, there will be minimum liquidity requirements before capital can be accessed. It is hitting the OFS sector as well. As one banker put it, "we are looking to save ourselves now."
And we take a trip to the island of the Aussie. Generally I would say one data point is nothing to be concerned about. But it so mindblowing that I could not resist to share with rest of the rabblers watching the economic disaster that is the global economy.
Help, why is copy+paste function not working in richtext mode?
I cannot get the link to paste in the post?
As things now stand in aussie land the housing bubble has now reached another legendary point. The article I was about to post was saying 50% of all new house loans are interest only. Truly the home buyer in Australia has gone to places where human dared to tread. People are so caught in mania that half think a interest only mortage is the way to go. Can prices go even higher where 90-95 percent of buyers are forced to go the route interest only. Is there another gambit to try keep the thing from falling apart? Australia is leading the way a true pioneer if your inclined to say in the mechanics of keeping the housing bubble from deflating. I salute you brave gladitors.
Biggest Wave Yet of U.S. Oil Defaults Looms as Bust Intensifies...Bloomberg Business
....the bubbles have cracked...just watching the dominos fall, one by one......
oil industry in Canada is toast! And with the next wave of price crash yet to come?
Oil, real estate, financials, commodities....then the government finances...slashes, austerity to social programs, pink slips as unemployment soars...no social security to meet inflating demands...
what will it take before Canadians start to wake up and organize alternatives...there is no alternative!
from Bloomberg...
Germany Opposes Any G-20 Fiscal Stimulus; Focuses on Reform Birgit Jennen bjennen1
...of course what is happening is the recognition by Germany that Fiscal stimulus no longer works...just adds to the total debt and assurance that the asset bubble busts as they are now happening only makes the consequences far worse...
just another nail in the coffin of a 300 year cycle of finance capital manipulations of the economies globally!
Wake up people...it`s time to be talking about what to do!!
...couldn´t help but notice Royal Bank of Canada, here.....
..so banks are filling their reserves? Which means liquidating financial assets? All part of the process of generating illiquidity in the markets, also threatening the financials of the global stock markets?
The dominos continue! The looming disaster beckons!
Plummeting Oil Prices Force Big US Shale Players to the Wall
By GPD on February 27, 2016
US banks are filling their reserves in preparation for a wave of defaults, as low oil prices force US shale producers into bankruptcy.
US Oil Production to Decrease Across Major Shale Regions
Two large US shale oil producers with a combined debt of $7.6 billion may be forced into bankruptcy next month because of low oil prices, which have fallen by around 70 percent since mid-2014, Bloomberg reported on Thursday.Energy XXI, which owes $3.4 billion, missed an $8.8 million interest payment on its bonds last week, and SandRidge, which owes $4.2 billion, missed a $21.7 million bond interest payment.
In addition to selling high-yield bonds, the value of which lost 24 percent last year for the energy sector as a whole, those companies have borrowed money from banks including Royal Bank of Scotland Group Plc, UBS Group AG and BNP Paribas SA, Barclays Plc, Royal Bank of Canada and Morgan Stanley.
US to Ramp Up Oil Output, Drive Prices Down
According to a report published by Moody’s Investors Service earlier this month, the number of US companies that have the highest risk of defaulting on their debt is nearing a peak not seen since the height of the financial crisis, and 28 percent of those at risk, 74 borrowers, are from the oil and gas sector.
“We are at the very beginning of the next wave of energy defaults,” Paul Halpern, chief investment officer at Versa Capital Management, told Bloomberg.
, Reuters finally peels away the first layer of just how bad China's mass layoff wave will be when it reports that China aims to lay off 5-6 million state workers over the next two to three years as part of efforts to curb industrial overcapacity and pollution...
just another effect of the bursting financial asset bubbles globally, and as the G20 has finally come to terms with the fact that the era of stimulus is over.....now as we watch the entire financial system collapse into the toilet...time to envision alternatives!
, Reuters finally peels away the first layer of just how bad China's mass layoff wave will be when it reports that China aims to lay off 5-6 million state workers over the next two to three years as part of efforts to curb industrial overcapacity and pollution...
just another effect of the bursting financial asset bubbles globally, and as the G20 has finally come to terms with the fact that the era of stimulus is over.....now as we watch the entire financial system collapse into the toilet...time to envision alternatives!
If every country descended to the level of Greece capitalism would still survive and the same people would still rule the world.
capitalism would still survive and the same people would still rule the world.......
.......these people are losing control! they are in a state of panic!
just read their statements about the total lack of coordination from the G20!
people will not remain apathetic when they are starving, a fundamental principle of humanity and history!
So the consequences are chaos and fascism or an alternative vision for humanity...
my congratulations to the brave people of Rojava, the resistance movements of Guatemala, the brave people of Novorossiya and wherever else in resistance and fighting for their understandings of some humanitarian and socialist antiimperialist alternative....
and Canada? lost in a world of distractions and apathy? is there no one prepared to say enough is enough, we must look for a clear vision, no bs opportunism and corrupting influences...
No, capitalsim is collapsing all around us...the stock markets are their only pillar of stability, being held together with total scams and media disinformation...in the shortest terms, a losing scam...when it breaks and soon enough...watch out!
if there are no leaders to emerge in canada...the consequences will be fascism of the ugliest faces!
A run on the big Italian banks has already begun. Italians have already been quietly pulling billions of euros out of the banking system, and if these banks continue to crumble this “stealth run” could quickly become a stampede.
And of course panic in Italy would quickly spread to other financially troubled members of the eurozone such as Spain, Portugal, Greece and France. Here is some additional analysis from Jeffrey Moore…
A deteriorating financial crisis in Italy could risk repercussions across the EU exponentially greater than those spurred by Greece. The ripple effects of market turmoil and the potential for dangerous precedents being set by EU authorities in panicked response to that turmoil, could ignite yet more latent financial vulnerabilities in fragile EU members such as Spain and Portugal.
Unfortunately, most Americans are completely blinded to what is going on in the rest of the world because stocks in the U.S. have had a really good run for the past couple of weeks. Headlines are declaring that the risk of a new recession “has passed” and that the crisis “is over”. Meanwhile, South America is plunginginto a full-blown depression, the Italian banking system is melting down, global manufacturing numbers are the worst that we have seen since the last recession, and global trade is absolutely imploding.
.
It is a fact that sales and profits for U.S. corporations are declining. This is a trend that began all the way back in mid-2014 and that has accelerated during the early stages of 2016. The following comes from Wolf Richter…
Total US business sales – not just sales by S&P 500 companies but also sales by small caps and all other businesses, even those that are not publicly traded – peaked in July 2014 at $1.365 trillion, according to the Census Bureau. By December 2015, total business sales were down 4.6% from that peak. A bad 18 months for sales! They’re back where they’d first been in January 2013!
Sales by S&P 500 companies dropped 3.8% in 2015, according to FactSet, the worst year since the Financial Crisis.
I know that a lot of people have been eagerly anticipating a complete and total global economic collapse for a long time, and many of them just want to “get it over with”.
Well, the truth is that nobody should want to see what is coming. Personally, I rejoice for every extra day, week or month we are given. Every extra day is another day to prepare, and every extra day is another day to enjoy the extremely comfortable standard of living that our debt-fueled prosperity has produced for us.....from Michael Snyder
A former head of a major Irish bank has been extradited from the U.S. and brought before Dublin District Court to face several charges stemming from the bank’s role in the 2008 financial crisis.
David Drumm, former chief executive of Irish Anglo Bank from 2005 until 2008, had been arrested in Boston in October 2015, and originally attempted to fight extradition — but he recently withdrew the objection and was returned to Ireland early on Monday.
Drumm faces 33 charges in Ireland, which echoes Iceland’s unprecedented move to hold its bankers criminally accountable for their role in that country’s economic meltdown. Though Drumm predictably denied wrongdoing, his charges include “fraud, forgery, misleading management reporting, unlawful lending, falsifying documents, and false accounting, linked to financial transactions prior to the collapse of Anglo,” according to the Irish Times.
....an important precedent to consider as our own economy slideas into collapse!
Largest U.S. Coal Producer Skips Interest Payment, Warns Of Bankruptcy; Stock CrashesSubmitted by Tyler Durden on 03/16/2016 - 08:54
After a historic short squeeze which sent the stock of Peabody Energy soaring from $2.50 to $6.50 in under two weeks, things promptly reverted back to normal when the stock crashed back to earth plunging by 30% to $2.80 in the pre-market, and wiping out virtually all recent gains, after Peabody announced in its just filed 10-K, reported that it may have to join its peers Arch Coal and Alpha Natural in 11 bankruptcy protection, after it delayed $71 million in interest payment due on March 15.
EUROPE’S BIGGEST ECONOMY PLUNGED INTO CHAOS THIS WEEK WITH WARNINGS THAT GERMANY’S FINANCIAL CRISIS COULD DESTROY THE ENTIRE EUROPEAN UNION. THE COUNTRY REPORTEDLY LOST £14,292,610,000 BILLION (ABOUT $20.8 BILLION IN USD) IN THE PAST THREE MONTHS.
Fear struck local markets as shares in Commerzbank and Deutsche Bank – the country’s two biggest lenders – plummeted again. Deutsche Bank lost 4%, hitting an all-time low reminiscent of the financial crisis of 2009. Commerzbank fell by nearly 5%, closing at the lowest level the company has seen in over two years.
Last week, the bank reported record losses of more than £5.1 billion, enough to incite a panicked wave of selling. The news was paralleled by another stock market crash on Tuesday that took billions from big banks in the UK.
US Energy/Mining Losses In 2015 Wiped Out Eight Years Of Profits by Wall Street Journal • March 23, 2016
By Eric Morath at The Wall Street Journal
The U.S. mining industry—a sector that includes oil drillers—lost more money last year than it made in the previous eight.
Mining corporations with assets of $50 million or more recorded a collective $227 billion after-tax loss last year, according to Commerce Departmentdata released Monday. That loss essentially wipes out all the profits the industry had made since 2007.
........and with drastically shrinking liquidity, meaning no more junk credit for the oligarchs? This is the year to be organizing an alternative!
Michael Hudson - Chris Hedges: The Great Ponzi Scheme of the Global Economy
http://www.counterpunch.org/2016/03/25/The-great-ponzi-scheme-of-the-glo...
"We're going to be discussing a great Ponzi scheme that defines not only the US but the global economy, how we got there and where we're going..."
Washington Post...The big bust in the Oil Fields......
.....The consequences are far-reaching: The U.S. oil industry, having grown into a giant on par with Saudi Arabia’s, is shrinking, with the biggest collapse in investment in energy in 25 years. More than 140,000 have lost energy jobs. Banks are bracing for tens of billions of dollars of defaults, and economists and lawyers predict the financial wreckage will accelerate this year.....
That Michael Hudson interview is very interesting. Thanks for the link, NDPP.
Corporate Debt Defaults Explode To Catastrophic Levels Not Seen Since The Last Financial Crisis
MARCH 29, 2016
If a new financial crisis had already begun, we would expect to see corporate debt defaults skyrocket, and that is precisely what is happening. As you will see below, corporate defaults are currently at the highest level that we have seen since 2009. A wave of bankruptcies is sweeping the energy industry, but it isn’t just the energy industry that is in trouble.
And, as Bloomberg reports, with last week’s five defaults, the 2016 to date total is now 31, the highest since 2009 when there were 42 company defaults, according to Standard & Poor’s. Four of the defaults in the week ended March 23 were by U.S. issuers including UCI Holdings Ltd. and Peabody Energy Corp., the credit rating company said.
And by all indications, what we have seen so far is just the beginning. According to Wolf Richter, the average rating on U.S. corporate debt is already lower than it was at any point during the last financial crisis…
Standard & Poor’s, via a report by S&P Capital IQ, just warned about US corporate borrowers’ average credit rating, which at “BB,” and thus in junk territory, hit a record low, even “below the average we recorded in the aftermath of the 2008-2009 credit crisis.”
What all of this tells us is that we are in the early stages of an absolutely epic financial meltdown........
......you have to wonder how much data people need before realization sets in that it's time for some new approaches?
The Lies of NeoLiberal Economics, (or How America Became a Nation of Sharecroppers) by Michael Hudson - Chris Hedges
http://counterpunch.org/2016/04/01/the-lies-of-neoliberal-economics-or-h...
Wake Up!
George Soros Warns “China Resembles US In 2008”, Hard Landing “Practically Unavoidable”
Zero Hedge
April 21, 2016
China’s credit growth in March (and $1 trillion surge in total social financing in Q1) is a “warning sign” according to billionaire George Soros, “because it shows how much work is needed to stop the slowdown.” Speaking at an event in new York this evening, Soros commented on “troubling developments” in China, the anti-corruption drive’s impact on capital outflows and the real-estate bubble “feeding on itself.” His conclusion, rather ominously, was that despite all the naysayers and fiction-peddlers, China “resembles US in 2007-8,” before credit markets seized up and spurred a global recession.
As Bloomberg reports, Billionaire investor George Soros said China’s debt-fueled economy resembles the U.S. in 2007-08, before credit markets seized up and spurred a global recession.
China’s March credit growth figures should be viewed as a warning sign, Soros said at an Asia Society event in New York on Wednesday. The broadest measure of new credit in the world’s second-biggest economy was 2.34 trillion yuan ($362 billion) last month, far exceeding the median forecast of 1.4 trillion yuan in a Bloomberg survey and signaling the government is prioritizing growth over reining in debt........
..........has China given up its intentions to stop the collapsing bubbles of its credit markets? And as ECB continues preparations for increased monetary stimuli, with some of Europe's biggest banks in protest? That they will be bankrupted?
Clearly this latest expansion in fiat money credit expansion is fueling the stock market rallies, these markets now little more than company shells chasing paper not real products in a collapsing global economy.....
and if the big banks prevail to shut down this latest fiat currency inflation, and as China/Russia et al switch to a gold backed currency, not!! to be traded with fiat curencies!! are we getting close to a breaking point here! Remembering that just a 1/4 percent US Fed interest rate hike in December began a collapsing stock market, commodities etc. markets in January/February?
Unlike some of the more complacents, I'd suggest preparations for trench digging!
Stan Druckenmiller, the billionaire investor with one of the best long-term track records in money management, said the bull market has "exhausted itself"......
.......if you judge the state of the collapse/non collapse by the markets, a totally rigged system, I'd suggest you take your head out of the matrix, to deepen your investigations.....
Last December, the US Fed raised their rates 1/4!!%, while the Chinese Government threatened to put the squeeze on their super inflating financial credit....and with this lack of support for increasing QE and credit inflation, sent the markets reeling for 2 months...so...the Japanese, Europeans and Chinese started making QE money printing statements...and with rising markets the leveraged investment community began cashing in their shorts, starting up a rally...til last week!
The Chinese financial system, and in particular the repo markets are in big trouble....repos being short term investments, with junk bond corporates as collateral! This is what caved the 2008 global financial crisis, only to be bailed out to the tune of some 22 trillion public! support.
Global credit creation has since more than doubled...the US dollar is being dumped globally, forcing the US to now talk interest rate hike...which will just compound the problems of the markets......
No the markets are totally a function of government manipulations....we must look beyond to the state of the finances...and if the Chinese corporate repos are in trouble....we'd better be prepared!
This is a head's up...we'd better be talking serious alternatives to the system! This next crisis will noo be bailed by government finances in deep debt...bail ins and serious austerity programs are in the works...while employment and economics continue its downward spiral!
Prepare For Systemic Breakdown
http://blackagendareport.com/prepare_for_capitalist_breakdown
"...Where the social democrats offer no alternative to austerity, but instead work hand-in-glove with the bosses to implement it."
Eric Draitser Interviews Richard Wolff (and audio)
http://store.counterpunch.org/richard-wolff-episode-40/
"This week Eric sits down with economist Richard Wolff to discuss capitalism, its inefficiencies and its discontents..."
Central Banks Buying Up Gold To Diversify Away From US Dollar
https://www.rt.com/business/342623-world-banks-demand-gold/
"The major driver for gold purchasing by central banks is seen by economists as a trend towards diversification away from the US dollar, with some currencies seeking protection against currency volatility..."
Mac Slavo
SHTFplan.com
May 18, 2016
Over the course of the last six weeks major companies around the world have reported significant drops in sales and consumer sentiment.
By all accounts, the global economy is coming to a standstill. But somehow financial markets continue to hover near all-time highs. That a day of reckoning is coming is a foregone conclusion. Something is wrong and highly renowned global strategist Marin Katusa explains that the insanity is just beginning:
People have to understand how fast and vicious the money is flowing around.It’s not just the Fed in the U.S., or big hedge funds coming in and out… you have to also consider what I call Dragon Economics… The Chinese effect… Not only does China have a lot of money, but their people have a lot of money and they’re looking to get it out of China.
In one day in April more cotton was traded on the Shanhai markets then the whole year previously… it would be enough to put a pair of pants on every person on the planet… in one day.. there’s not even enough cotton for that… In one day enough soy bean traded for 52 billion servings of soy…
We’re talking about insane speculation that the Chinese money is fueling… In Vancouver crack houses are selling for $2 – $3 million… The Chinese money is desperately fleeing… it moves very quickly…
..........To salvage the financial system with the January/February collapse, the Chinese issued 5 trillion yuan through their Central bank, a desperate measure, (March/April) which has ended!
In spite of the need to continually expand the credit system (junk corporate bonds and all their derivativce and market funds!) the Chinese in panic? have shut off the credit inflation...is this end game? Who will pitch in to replace the Chinese credit expansion? or is now everyone tapped out? is this now ongoing 3 week correction (!?) the beginning of the market collapse?
Another heads up!!
from zerohedge.....
Delinquencies of commercial and industrial loans at all banks, after hitting a low point in Q4 2014 of $11.7 billion, have begun to balloon (they’re delinquent when they’re 30 days or more past due). Initially, this was due to the oil & gas fiasco, but increasingly it’s due to trouble in many other sectors, including retail.
Between Q4 2014 and Q1 2016, delinquencies spiked 137% to $27.8 billion. They’re halfway toward to the all-time peak during the Financial Crisis in Q3 2009 of $53.7 billion. And they’re higher than they’d been in Q3 2008, just as Lehman Brothers had its moment.
Note how, in this chart by the Board of Governors of the Fed, delinquencies of C&I loans start rising before recessions (shaded areas). I added the red marks to point out where we stand in relationship to the Lehman moment:
May 23 – Reuters (Anjuli Davies): “Revenue at the world's 12 largest investment banks fell 25% in the first quarter from a year ago as economic uncertainty and investor caution led to the slowest start since the financial crisis, a survey showed… Investment banks have been hit by a steep decline in oil prices, near-zero interest rates and worries about China's economy, which triggered a wave of volatility in financial markets at the start of the year, normally the most lucrative period when investors put their money to work. Trading in fixed income, currencies and commodities (FICC) divisions… declined 28% year-on-year to $17.8 billion......
...further confirmation, the financial assets bubbles are bursting....along with energy, commodities, emerging markets....
