Nothing. China proclaims they are not having a hard landing. Then their numbers come in so far under any expert forecast their markets crash – again – almost three percent. No one believes them now. The more they say things are great – the more the markets who know – appreciate things are worse than anyone thought.
Fools rally’s abound. The experts caution there is more downside than upside. We have reported there is no real market. Speculators have hijacked the world markets. Oceans of money trade institutionally one software against the other to profit from market manipulation. This creates destabilizing cycling until the whip saw ends in a SUPER CRASH.
The upside of pundits reporting inflation is sweeping back are idiots when deflation is entrenched. The price of oil is not rallying. The price of commodities are not going up. There is a glut of both against ever falling demand. There is overstock and prices must fall for a long long time. No one is cutting back output when there is no need for these production levels. Adjustment here moves all economic activity down.
Only the USA has a leg in the game with its unique 35 million entrepreneur small business owners rowing against the global tides of a mismanaged world economy. Debt Bubbles are truncating all markets. The debt which is bad debt has passed 100 trillion dollars but everyone is reporting these bad debts as good performing loans. As these loans move to bankruptcy and no pay back the ripple will begin toward SUPER CRASH.
In China the bad debt issue is national. Funding 150,000 state run organizations with bad debt – SRO’s. In the last crises they built cities and roads to no where that no one ever lived in. This real estate over build will crash. Hard. Debt will ripple to crush Asia markets. When is the only question. You reach a point all the mens horses and all the central banks can not put the bad debt back together again – 30 years of it. Mushrooming into a DEBT BOMB. The weapon of mass economic destruction is DEBT.
The EU is under attack. The migrant inflow is removing any social recovery possible. Society is not able to deal with entire countries on the move. There is money for housing, jobs, medical, cultural and language training – its beyond systems to manage. Migration has been weaponized by Russia to destabilizes the EU.
The UK leaving the EU protects its citizens from paying bad debt in the EU which no one can pay. The EU is a failed economic structure. IT is DONE. OVER. IT will unwind catastrophically crushing economic mismanagement world wide. Banks will fail. Confidence will be shattered.
Does it take place in the EU first? In Asia First? In India first? The Debt Bomb in Pakistan is the worst by ratio of them all. The world can’t put this back together. You have to bankrupt nations and start over. The pain of this is massive unemployment, default on social promise and retirement. Unfunded RETIREMENT OBLIGATIONS by themselves are now exceeding 100 trillion additional dollars. 200 Trillion of BAD ECONOMICS is not absorbable folks.
No one can repay the trillions of bad debt in the EU -no one.
No one can repay it in Asia. No one.
Will the world order hold together. For a short time. Everyone is buying time. Delay does not cut it. We have suggested the fix elements MUST include:
- A three year G 100 Economic Constitutional Convention – I’ll chair it for them. To design the new world economic modeling.
- Public firms need to move immediately to report every 180 days and stop the speculators from manipulation of real markets.
- Central banks are contract private firms to nations – that have failed us and need to merge into treasury – paying interest on printing money in a digital transparent world news to stop immediately.
- A Global new financial GLOBAL NATIONAL BANK needs to be created to work out debt over decades of time.
- Super BONDS need to refinance all sovereign nation debt over 200 year issues inserting TIME as the new asset to reset economic abuse over decades.
Fixing the failed system leads to greater catastrophic leveraged melt down. Contagion is without mercy when the public has zero confidence in a nations money policy. Runs on banks such as China are without historic precedent.
We are suggested since last summer our readers move out of equities for years. The markets are rigged in the casino. Stop betting on loosing tables. You can and you may loose more than everything if you leverage into margin trading along greed lines.
Speculation must be criminalized ( again ) and until it is nations have lost control of financial market space.
We see volatility – way up and way down – a year of movement in a single day. There is no real market. Truly there is not.
The regulations are local. The trading is in the cloud where there is zero regulation.
Regulatory agencies need to be empowered by the G 100 new ECONOMIC CONSTITUTION for all of us – to present new equal playing fields – a fresh start – and a rule set that has teeth and is uniform in all nations. Nothing else makes sense.
To continue competing is to commit financial suicide.
To cooperate is to resolve the reset required. It will take all of us.
As idiots control the markets today one idiot betting against another and soon all idiots will lose the very idea is crazy really. Everyone is lying. Without integrity they’er can be no real market space. The laws are too old and no longer work.
They can’t be fixed. WE need the largest RE THINK OF GLOBAL FINANCIAL MAKRET SET UPS in HISTORY. We have the capacity. We have the need. Enormous greed and profit making keeps every player for themselves each pitted against the other.
Folks this will NOT end WELL.
Like any addiction we have become addicted to lies and profits.
Companies have no responsibility to tax and nation.
The system fosters only casino capitalism where the elite use loop holes so laws of nations NEVER APPLY TO “THEIR CLASS”. Collectively they bankrupt us all when such an outcome is preventable.
For insane just look at everyone killing everyone over how they worship God. For sure an incoming strike will kill us all – for sure. We can cooperate and precent that with technology. We don’t. WE build weapons to locally kill one another for which way we govern or worship. Why not celebrate all that and SURVIE together?
The sane are hostage to the insane.
What a mess we are looking at. Only the entrepreneur – the self reliant and self directed can prosper and work through any future market. The rest are going to have rough ride.
Economics has no wiggle room. The long dance of debt and speculation is coming to an end. You are witnessing its final death throws. Trust me.
The solution is possible but TIME is running out while they fiddle on short term profits none of them – not one – can retain.
They all lose. Thats insane.
I vote for the sane today.
We’ll keep a light on for you.
Nothing is new. Nothing has changed.
Bet as you will in the casino – and good luck.
BOOM. Debt Bomb explodes and financially…
YOUR DEAD on arrival.
Super Crash – keep an eye out for the coming contagion.
Berny Dohrmann -investment banker economist –— March 9, 2016