WAGE DROP AND HOUSING RISE & RECESSION LOOMING:
The USA requires 5.5% annual growth year after year to afford our debt today. At zero growth year after year – where we are in a DEFLATION SPIRAL – an economic DEATH SPIRAL into global depression – the USA let alone other nations like China can not afford their debt ( China needs 15% annual growth not 5 % ).
66% of USA city housing market mean prices are above the wage owners ability to support them. FREE MONEY from FAILED CENTRAL bank policy – which never reverses or admits a decade of utter policy failure – has created a bubble in housing. Prices rise due to free money low mortgage, sellers raise prices inspired by low mortgage cost ( artificial in the market due to FED a private bank owned stock firm under contract with the USA by congressional contract in 1910 ) – and the bubble is going to crash. Just like TRUMP stated it would when interest rates rise.
House price must fall to average mean A. No way around that. In the SUPER CRASH that is coming those who owe 300,000 on a 110,000 home will walk away the bank will have no new buyers and will go bankrupt. Watch. Their investment portfolio in risk-less ETF will become a margin call on their leveraged investing.afforability
The banks will fail. There will be runs on the banks.
Because FED free money policy is a failed policy – they have allowed ZERO GROWTH too long while swelling USA debt way too long – making all the profits on the crises for themselves – conflicted hopeless as a policy making failed institution – the FED IS DEAD and needs to be MERGED INTO THE US TREASURY.
The US TREASURY will restore market confidence but it will take time. This example needs to occur in every nation upon the earth. CENTRAL BANKS go bye bye and are merged into their TREASURIES. Keep all their procedures but POLICY is made by the grown ups in the future.
So housing POLICY is an utter failure derailed by FED FAILED POLICY. The leadership of the FED who created all bubbles from dot.bomb forward – need to go to prison following serious congressional special prosecutor investigation work. Congress needs to get serious and:
- Pass emergency legislation to merge the FED back into the US TREASURY.
- Stop paying INTEREST to print money.
- Pay off FED DEBT all at once with a SUPER BOND as a new class of bond to the bond market.
- Policy moving forward is made by the US TREASURY using Fed procedures moderated by Treasury and upgraded.
- The FED is final audited independently audited and results dictate the terms of CRIMINAL CHARGES and treason.
Congress failing to act on the FED is the largest negligence of of our legislative branch in 100 years.
So growth assures the USA will default on its debt. As will other nations.
The world financial system can not survive these forward events.
When only 36% of the home buyers can afford homes in cities everywhere in America the market is a bubble, the market can’t sustain, and a SUPER CRASH in the market is coming. This is economics based on math out just today confirming – wage gains reversed this summer and the USA is sinking as Donald Trump suggests.
Think about it. Duetsch bank President comes out and says our BANK is wrong and our bank is FINE.
Our blog reports that day – Duetsch bank is worse than you imagine and the bank is not going to make it. The next 72 hours Duetsch bank has a run on the bank an investment, the first bank run since 1927 and the run is still going on world wide – as is the run on Wells Fargo and Bank of Scotland – and Duetsch bank stock closed at its lowest level in history 72 hours after the CEO lied to everyone.
As these giant banks fail and Duetsch bank faces a bankruptcy potential how do you feel that will domino into the market like Lehman? Are you all sitting at year in singing the song – row row row your boat merrily down the economic stream ? Or ring around the rosy ashes full of posey all fall down ( and the real song ends with the words all fall down DEAD ). As the song was for the black death in the middle ages and the rosy where soars covering the bodies of the dead – and the roses where to get rid of the smell – it is not a pretty children’s song. What are you singing as the black economic death sweeps over the landscape.
FAILED FED POLICY world wide.
Its the FED that killed our system.
Its central banks.
The public is SO IGNORANT of these private non government stock firms, cheating and stealing from us all, they don’t understand the GREED going on inside the rule book. You have to change the rules.
You have to MERGE CENTRAL BANKS into treasury.
You do so after SUPER CRASH and the blood bath of depression globally wiping out a generation of any promise and hope – OR – you do it before and perhaps prevent the SUPER CRASH while there is still time.
Today the system is bankrupt. This means:
- Nations can’t pay off their debt.
- Debt is fueling growth versus economics.
- Banks are bankrupt due to bad investing.
- Institutions pensions and more are bankrupt.
- There is no resolving the trillions in bad debt under the central bank free money machine
Central banks are the PROBLEM.
Central banks ARE “THE” PROBLEM.
CENTRAL BANKS NEED TO MERGE INTO THEIR TREASURIES WITH FULL DIGITAL TRANSPARENT AND OVERSIGHT FROM THE MARKET.
Common damn sense while the insanity of “free” money continues. World wide.
Berny Dohrmann – Lighting up your Factoids
PS: The next crash in real estate will be deeper – longer – making the sub prime crash of 2008 seem like a picnic because law makers lied to us and fixed nothing. Bubble as usual and everyone who say’s Trump is wrong on the bubble – will come to see how wrong they all were – as they lied to the people of the world. LIARS are profiting from their lies folks inside the GREED MACHINE.— September 29, 2016