I THINK THIS SHOULD SCARE THE HELL OUT OF CENTRAL BANKERS AND THE TREASURY DEPARTMENT:
Alan Greenspan who has got it all wrong – on his watch – up to and through the largest crash since the Great Depression – on his watch – has now said in cute Greenspan ease – we are in a bond bubble. Like a bond bubble bath. Old Soldiers just fade away. Why can’t old Fed failures just die? Thats the answer.
What is really happening – as we have told you – is that we are in a depression deflation spiral cycle the central government spending 11 trillion dollars can not return to real inflation. Think about the global printing press of FREE MONEY for decades in Asia in EU in USA and no inflation – are you kidding me.
We are in a SUPER BUBBLE in ALL ASSET CLASSES. The Super Bubble driven by FREE MONEY and leverage the world has never known before is going to collapse in a fire works show the world has yet to understand or experience. The entire system is going to lock up.
But it will.
Bad unpaid debt.
Fraud on financial statements at banks.
Criminal banks like Wells Fargo committing real crimes and no one is punished no one goes to jail like we the people DO – but the fat cats are immune. They pay a parking fine and get out of jail and crimes. We can’t. The world is just watching and the frustration with the criminal abuse of powers at corporate and nations is not lost on the majority of the people. All of us have had it with all of them.
In the end their crimes will tip the system – the SUPER BUBBLE fed on FREE money over the brink. The system can not return to new normal as the debt elevations and rising interest will spin the bad debt cascade into the blood bath of BURSTING THE ASSET SUPER BUBBLE.
The move of now trillions from global human managed investment traditional market controls and safe guards – into ETF and equivalent shadow banking SOFTWARE controlled market space operates within a theory. Software makers have designs that assume. Their assumptions are naive, wrong and without consideration for the events unfolding. Just as they were in Sub Prime in 2008.
The Consolidation of market flow dynamic into software trading as created a GLOBAL CASINO CAPITALISM. Be awake to under stand the following:
- The Global Casino is a software managed market by elite super pools of money.
- One persons software trading against the others.
- Ranges – a market of ranges has been evoked – to within reason move markets up and down within diskless risk ranges. The market goes up on the rope curve. The market goes down. In anything. Software places bets all along the rope curve making profits all the way up all the way down and no loses within ranges.
- Contagion events trigger a new model never seen in any prior market we call CASCADE. Cascade is a software defeat of range parameters to sets a unforeseen SUPER CRASH into play. As everyone owns the same stocks when the Super Crash begins the software CASCADES to protect risk and loss and the entire market is a death dump spiral of value. 2200 Dow is coming. So is 1600 and lower.
- As the market DUMPS in CASCADE the casino dries up liquidity. No one is playing any more. There are no buyers only sellers. The liquidity in the ETF locks up the system. Credit jams to a halt and circulation stops cold. World trade is almost instantly in SUPER MARGIN CALLS on massive debt never to be repaid – banks investment banks and major elite money pools go bankrupt. Investors can ‘t get out. They get wiped out.
So Greenspan has his little bond bubble bath. He’ll be dead soon and I ‘ll still be here – calling right shots – over to many decades to count. Before the internet. Just watching and telling you with scientific economics and a gift honed of decades of data and history.
I’ve told you there is NOTHING NEW UNDER THE SON IN ECONOMICS. The same old abuse repeats. WE DO NOT LEARN not EVER from our failed economic policies. We just do not learn. Ever. Not from Rome. Not From the Depression. Not from 2008.
Today the CLO’s are the same as the super pools of real estate. Today the real estate super pools go on. The public thinks laws were passed to stop abuse. The laws where passed. The FED exempted the elites from the laws applying to them – loop holes you see and the SEC which see’s the danger has their arms tied by FED exemptions. What does THAT EVEN MEAN.
The criminals that brought you sub prime and made trillions off tax payers to cover their own bad debts are betting in higher numbers. How is THAT possible.
Well Banks have merged with investment banks. They are consolidated today. One too big to jail global family of elite money. The money managers are fired for software and AI. Unproven untested systems controlling the entire system in only ten years within an ECONOMIC UNCONTROLLED EXPERIMENT with ZERO government oversight or controls or any idea or model what the future outcome might be on markets globally.
No one has hit the pause regulatory button to figure this all out. We have said the G 100 needs a three year ECONOMIC CONSTITUTIONAL CONVENTION To develop the most significant REGULATORY RE-THINK IN THE HISTORY OF MODERN ECONOMICS. As everyone is drunk on cash no one is thinking of their losses to come – well a few of us are.
So lets continue:
- Money has consolidated and is further consolidating.
- No one regulates these elite money pools.
- For the first time AI software controls the financial system of the world – a very recent event.
- Structured assets are pools of crap – debt – stocks – real estate mixed with more reasonable assets to form higher ratings to get money pools investing in them – and these pools are rolled into super pools that no one can assess quality but they are all rated AA or higher and these are then moved into scrambled egg SUPER DUPER POOLS of total crap all rated by the credit agencies ( for which they are in incest with the issuers and are paid 100’s of millions ) – AAA so elite pools can keep investing – like a state pension fund. These are auto loan pools of crap defaulting now in record numbers by % – credit pools of durable good financial contracts – real estate pools – with commercial real estate defaults rising faster than sub prime all TRIPLE AAA all pure crap.
- The entire system is trading fantastic sums of money leveraged at enormous ratios of debt sometimes 50 to 1 at interest near zero. As interest rises this DEBT SUPER BUBBLE we have reported will be unable to continue and the unwinding is like musical chairs. He who holds the CRAP last will CRAP OUT.
Now then is THAT simple enough for you to understand. Now have software and no human control all this within models the entire market can only go down within RANGES. No one has written software for CASCADE CONTAGION AND SUPER CRASH. In the past these factors took some time with warning. Today these factors take no time and can occur digitally in 72 seconds. The world has never been set up to experience:
- The global total impact of such a SUPER BUBBLE of inflated prices driven by debt and free money – the largest market distortion in HUMAN HISTORY.
- With AI software and no humans – arms up on the roller coaster look ma no hands – as we scream all the way up and down on the ride. Danger Stranger.
- No one is sounding the alarm for a SUPER CRASH – I have been since Donald Trump Got Elected – any one remember my blogs since last year?
- The frenzy of the never ending record for stock prices in historic price highs over any multiples markets have ever known save for PRE CRASH in 1929 – 1987- 2000- 2008. Yes those years.
- The 100’s of trillions of non performing debt on national and super wealth elite institution balance sheets held by fraud reporting as GOOD SOLID ASSETS that are non performing crap create bankruptcy to the leading financial firms of the world including the majority of banks.
The SUPER DEBT BUBBLE will be economics the system can not recover from. The result is world war. Now consider the weapons of a world war. How fast does this all take place. Your talking days and weeks not months and years when it hits.
So there are two ways to go the brink and future.
One is to build bomb shelters and to have a funeral and wake for the lost promise of the world we all new and longed for. A minority of crooks derailed our governments and institutions. Thats the historic truth. Greed. Thats the reason. Lack of regulation as the DIGITAL GREED leveraged up.
No one’s fault really. Just system failures and no corrections. A crises of leadership in the world.
A lack of understanding of causation and real core issues.
All the planning and safe guards will not be enough to put Humpty dumpty back together again folks. Its economics. I told you we would fix it but the time is just running out.
The other way to move into the future is to have a wild ass party and Sing the SAINTS GO MARCHING IN till we fall off the cliff drunk in our temporary way station of greed and record high abundance.
I say PARTY UP folks as long as we have.
What do you do when the BELL TOLLS?
Oh thats the nifty part.
I’ll tell you – exactly just when you need that step to avoid falling off the cliff yourself. Today I’ve said sell out of all asset classes and invest in diversified insurance investing. The ultimate and only remaining safe haven for those with the discipline to step back from greed. If not remember we told you.
Meanwhile party on folks – party on.
Its all one fantastic party …..while the FREE MONEY LASTS.
May I have this Dance?
Berny Dohrmann – Going for a Double at the Bar with Todays Market numbers hitting close to 2200 Trumps I told you so Number…we just have to smile.