NEGATIVE INTEREST RATES FOR US BONDS ?
So how would THAT happen? Well lets look at how the market -no SO out of any control as you all well know – in full on world DEFLATION governments have zero tools to moderate – a death spiral for debt repayment – always leading to global system wide SUPER CRASH. Deflation + Debt = SUPER CRASH – always for 5000 years. Rome to today.
The market our markets are just so rigged. Until the market is reset by a global G 100 ECONOMIC constitutional congress the box top rules of today can never return to integrity and ethics.
The market box top rules, all rigged, say, the banks must now hold an ever rising reserve, by law, in reserves against bad debt. In the past the box top rules, already punitive, suggest the banks hold these higher reserves as their bad debt credit portfolio’s deteriorate. In the future the new box top rules for 2016 will require US banks to set aside higher reserves not when their credit portfolio deteriorates but at the time the loan is booked. Immediate set asides as a huge increase. This will be the largest new reserve for banks required in history. Why? To finance the bad debt of nations who can no longer pay their bills. Like the USA. Think I’m kidding? Think I’m off a bit as an economist investment banker albeit a grandpa at this game? I’m not. I”m spot on.
What is rigged is that the required asset the banks must hold is SOVEREIGN NATION BONDS or US Treasury debt. Now if the massive reserves for bad loans is the US DEBT NOTE – and the US reaches a point facing 127,000,000,0000 TRILLION DOLLARS of debt in 2016 – as the Debt Clock posted on this blog site displays in real time, now soaring, reaches a point where the US DEBT can NOT be repaid, then all the banks are bankrupt. No nation can pay its debt from income today. There is one solution – SUPER BOND STRATEGY former SEC Commissioners and advisers to the White House and our team have developed – but as the White House Team says – no one is buying the solution over “here”. As Kevin Freeman says in his best selling book GAME PLAN – YOU had better make your own game plan and he tells you how specifically – because your nation and its planners have NO Plan and they are not even trying to create a GAME PLAN.
Also the banks are the required buyers of US DEBT. So because they must by the rigged box top rules hold reserves in the form of US DEBT notes ( paper promises only ) which they in the rigged system call “cash equivalent” when in fact the promissory note is far from equal to cash reserves. So the bank reserves against 100 Trillion in Bad Loan Debt not performing but booked as a good loan – if it comes home to roost – is off set by bad debt from nations on pure paper promises that are worthless “really”. Do you see the rigged system. How the bond market works really? How bad nation debt rated in the top category of credit – is held as a cash equivalent to bank bad loans that if the bad loans come home to land – there is nothing to offset them but more debt of nations now in serious distress. Are you seeing the rigged rules for the first time now?
So as there is always a US BOND BUYER as banks globally use this “note” as a cash equivalent for the rigging of their required BAD LOAN reserves – the bond price can go negative as it is heading to now, ( worthless really where banks pay cash out to keep reserves in these worthless sovereign nation NOTES – the reserves do not pay the banks but may soon cost the bank to hold billions of them – in negative interest nations like the EU and Japan – all first time in economic history ). In those nations it is happening now. Banks rather than loading are starting to pay to put cash in vaults and safe deposits sensing the end is near.
The trap of the new box top rules is the nations want the banks loosing money on their reserves to invest CASH into LOANS to business and to plan equipment and long term JOB CREATING bets. The BANKS however have to with each and ever new loan under the rigged rules today increase their buying of questionable sovereign nation debt debt promises – under rigged box top rules – as their cash equivalent. The entire system has been layered with so much RIGGING today one can not predict reaching the horizon of safe harbor in the future. The money is betting on SUPER CRASH.
The seeds of SUPER CRASH ARE due to the market deception, lack of transparency, lack of regulatory frame works that WORK versus regulatory frame works that postpone the inevitable. The BANKRUPT world system, fully rigged dying in under a tsunami of bad non performing debt soon to pass 500 trillion dollars, will implode due to defaults and ETF utter melt down as a speculative bubble machine.
As I published my blog in 2005 to SHORT THE MORTGAGE MARKET and I have been advising the BIG SHORT funds to now SHORT THE ETF MARKETS and the MORTGAGE MARKETS. The result will be where you made billions last time you’ll make a trillion this time. The system is going to crash. In the opinion of many reviewing data today.
Just remember we told you here all about it – and we told you why and we told you how. The only thing we can not predict is when. We add in to the mix digital terror. The Terror nations are combined in hacking to tear apart the communication grids the power grids and related banking grids of the Western Powers. They have stolen billions from banking already and they are only testing their digital weapons of mass financial destruction. Digital is our fatal weak spot. The next crash will be as much about DIGITAL PEARL HARBOR as it will be about rigged markets failing. The Terror Digital Bombs will be a tipping point for contagion explosive deflation and the system fails and must be reset. Consider these ideas as possibles: as the next Digital Weapon is fired at the Western markets:
- 60% crash in Real Estate
- 6000 Dow level
- EU worthless
- Dollar backbone but reset in the world.
- Japan currency worthless.
- China currency worthless.
- Oil at 10.00 a barrel and a glut that won’t go down
- Nations failing completely
- Regional war becomes world war
- Weapons of mass destruction are used selectively
To far out there for YOU?
We see this reality as coming next – triggered no later than 2018 worse if it delays in time actually, and we see the window of pure opportunity for the Digital Terrorist as OCTOBER to March 2016 to 2017 using the Lame Duck President year to reset the world order.
Thats our call folks – we’ll see who is right. We don’t like it – but we are rallying our CEO SPACE MEMBERS July 24th as there IS SAFTEY IN NUMBERS and we are building CEO COMMUNITIES to weather and prosper in the coming financial storms. If you have the community and the information you win.
If you don’t……you won’t.
Berny Dohrmann – CEO SPACE INTERNATIONAL
PS: Kevin and I have lobbied in DC ( where I head upon signing off today ) to lobby for MUTUAL ASSURED RECONSTRUCTION from such events – but again – make your own GAME PLAN. As all our leaders KNOW this is coming and none will TAKE PERSONAL RESPONSIBILITY to “DO SOMETHING” about it. They have no plan. Nor are they creating a plan.— June 15, 2016