THANKSGIVING WEEKEND REPORT:
In the slow news day of this Holiday the Fed stepped out to define that the Federal Board Board, states it now see’s a SERIOUS RISK the market is over priced across asset classes and a CORRECTION may shake the financial system globally. We see this cover your ass out put by the fed this weekend in Thanksgiving knowing it will be likely next Spring before we experience a SUPER CRASH – as projected here in your bog alert since the summer of 2016 – where the Fed is now covering ALL BASES on its own exposure and liablity. Why? The FED has caused the next SUPER CRASH. Your fed is your cause.
How? How have the Fed failed policies created the last global SUPER CRASH as CAUSE versus “distraction and lies” – the SOURCE CAUSE – always the Fed, who always blame games us out of seeing the FED IS THE CAUSATION. How? Why? Here is the answer:
- Build a Super Real Estate bubble making over 1 trillion dollars for fed controlling shareholders who control the Fed, the US investment banks and banks. No power may check balance or audit fed financial statements, or shareholder owners as to who or what % – never audited or held accountable since 1907. Never.
- Super crash the market to pass emergency legislation to collapse the remaining depression laws and to assure the banks could buy investment banks allowing investment banks to borrow free money at the FED WINDOW for ungodly speculations in real estate and all asset classes to follow.
- Build up the worlds largest super bubble in every asset class – globally, creating a free money leverage or debt super bubble mount Everest to fuel wild speculation to manipulate and control market prices in all asset classes, using speculative investment in short selling and future market side bets on which way an asset will go – where trillions are invested but none of it in economics or growth. The trillions are side bets placed by software in casino capitalism – where the casino capitalism today has more concentrated wealth globally engaged in borrowed wealth invested in casino capitalism side bets having zero financial basis or value. A software without human control. In 2017 half a trillion dollars in this year alone moved from human managed investment to software AI managed capital movements globally without human involvement. The % of the casino now software controlled has moved to a risk level the world has never known at leverage the world has never seen where a system failure risk is higher than anytime in history.
- Ten years of central bank global FREE MONEY that can be borrowed against with investments that are crap the basis for loan security – with those pools of investment running up more leverage to triple and sinctinc oh leverage where one dollar is leveraged 50 to 1 in the casino side bets the world cause investment and which we call criminal gambling away grandmother’s life savings and deposits – as for the first time since the depression FED NEW LAW allows their shareholders to access free fed money – for ten years – and leverage that dollar and deposits – to secure fantastic borrowing the world has never seen or known before to invest in pure side casino bets being held like it was gold on balance sheets of the world. When SUPER CRASH unwinds the ratio’s of price to earnings – highest ever even higher than 1926 1927 1928. All Fed failed policy.
- Central Banks have created the worst sovereign nation borrowing in history. China leverage has increased by trillions and the pace of the debt growth is soaring. All attempts to curtail borrowed economic growth in China has not stopped 300 % debt spending over real economics that is over ten years spending 300% we think over 500% with real borrowing stimulation to the fake China economic communist failed model – a year – 3000% PLUS over GNP income in ten years.
Now China did a double whammy last 7 days. Did you miss it? Did you not read all about the DOUBLE COMMUNIST ECONOMIC WHAMMY? Your NOT an economist and we all are plus we are CEO Chairman of public prior investement banking firms that were global. That expertise creates different priority to reading economics. Now following 25 years of utter failed economics and policies, China leaps from one failed disaster to another ever rolling the ball down the table. What does this look like?
Well it looks like 2017. The would’s second largest economy ( which we feel is a statistical lie – we believe measured with new matrix’s Japan and India are tied for # 2 economically and China is about 11 if adjusted to its real asset GNP mix.
The largest boom has not reached China. Did you get that new flash this year?
China has had a terrible run on investment out of nation. The run includes:
- Flight of capital. Met with state capital controls tightening as we type.
- Flight of brains business and investment in stocks and in bonds. Met with ever spiraling up financial regulatory restraint on free markets or movements. Kicking the re-balancing bucket ever down the road.
- Flight of business – manufacturing or trading in other ASIA nations as China is marginalized in less than 60 months. Millions of jobs are out flowing away from China cost time lines and regulations. Business given endless better options – see’s China in 2018 as – Too Costly – Too Long – Too Unfriendly – Too Theft of IP – Too Un-protective versus protective – Too hard in human adaption – unfair in reciprocity trading – buying – Quality dropping cost rising – it just takes too long is way too costly and way too conflicked that never ever ends in soaring real costs fully adjusted. The backbone industry of China is collapsing.
- Age – the work force is un-balanced. The great majority are elderly and reaching elderly. The one Child rule has created unsustainable negative population due to demographics. The work force is increasingly too old and the young can’t fill a small % of the need to maintain China today let alone grow China tomorrow. You can not borrow your way out of the human math. The economics of China demographics are only solved in fact by war and conquest to rebalance its own population as core wealth is shrinking now in China. Young money in China flee’s. They invest abroad and they plan to leave China in record numbers. The internet has made new China money flee regulatory communist rule as they explore endless better options for their futures. The idea of communism has failed and the population are slowly aside from state media control, through the internet, discovering how deeply failed the Communist model is.
- The China leverage is a risk to the entire world system. The Chinese to stimulate their own economy have developed via the most fantastic borrowing of any nation ever – established a global ASSET SUPER BUBBLE in all and every asset class. When the China speculation SUPER DEBT BUBBLE IMPLODES UPON ITSELF AS ECONOMICS MUST RE-BALANCE ABUSE – THE SPIRAL INTO DEFLATION AND SUPER CRASH WILL ROCK US ALL.
Now this news is important if your tracking the forward events in China. So this last week a run out of Chinese debt ( bond ) markets took place. Redemptions were so fantastic at such a 100 of billion dollar level the interest China pays on debt soared to over 4% in hours. China then flooded the market with bond buying and stimulation of 100’s of billions in cash. This is just last week folks. So to prevent a BOND CRASH into CASCADE AND SUPER CRASH. China Debt Cost will soar now. The trillions of debt piled up will see cost rise and rise to China. The 2.4 billion in dollar reserves – ( down from over 3 billion just 72 months ago ). At the present burn rate China can run out of dollar reserves in 72 months forward or less as the rate is accelerating as borrowing costs soar. China’s market manipulation spiral has reached it’s own fail safe. The effects not only fail but the consequences begin to mushroom. Economic consequences.
The IMF and OUR FEAR is a DOMINOE EFFECT on DEBT DEFAULTS that begin in one nation, China Venzuela, Greece ( still ) and many more. If the debt default CASCADES the Contagion is digital such that a decline from 30,000 DOW to 6400 DOW ( the new potential low point in deflation we calculate ) in a time space the world has never believed was possible. Non Human software trading creates CATASTROPHIE faster than a human can fix the digital outcome of the first fully global economic event we call CASCADE. The NEW DANGER to the world system holding a mount Everest of SUPER DEBT – Debt – Debt Pools – Debt Super Pools – Global Debt SUPER DUPER POOLS. No historic economy is leveraged into this SUPER DEBT level to assets and income – and the outcome of such super high debt ratio levels – personal – corporate – institutional – sovereign nation – bank and investment banking – develops super risks that no system has ever known before.
The outcome of tracking debt bond pressures, such as the RUN ON CHINA that is half a decade old and picking up enormous momentum today. Keeping in mind no one wants a SUPER CRASH in China. The predictable Super Crash is a fact of spirals in economic abuse that must rebalance. A trigger event is being deflected at enormous borrowing costs to manipulate markets. The combination of endless money printing in China, and over borrowing, has created a FAKE NEWS economy. The economy in China became unstable over a decade ago. Massive debt spending has created FAKE NEWS economic reporting for years in China. Adjusted economic reporting is not so kind.
China is a risk to itself and to the world.
A new plan for China is required.
The G 20 should unite to work with China on a NEW PLAN.
If a NEW PROCESS to create a bold powerful NEW PLAN for China economics fails to materialize …..then the G 20 watch only to be destroyed by the economic tsunami they allowed to occur in the first place …..the earth quake creating the tsunami is DOING NOTHING AT ALL…………..
All the information we report to you the leaders of the world well understand. Everyone is so economically tied together today the stability outcome is to cooperate and avoid competition. If competition is seen as a form of collective human insanity, with cooperation being improved software for humans erasing any virus of insanity – competitive thought – from collective interactions of nations and humanity. Sanity vs insanity. Solution versus Catastrophe?
The spiral is rising into higher and higher leverage – borrowing and speculation to manipulate prices using software to make profits ( having destructive versus constructive economic value ) . The higher we go the longer and at far greater velocity do we all fall……..economics is unforgiving for error.
Ignorance is no excuse of the consequence of economic re-balancing.
So the value of assets is soaring to a price to buy a stock by a multiple of the income the company produces quarter to quarter – to ratio’s only seen against the greatest’s super crashes that always followed. Except that it is worth noting today’s 2018 stock to earning ratio in the stock market place is HIGHER than any prior ratio EVER RECORDED IN ANY GLOBAL ECONOMY EVER. When you see that math charted you pause. You think. The 100% outcome of such an economic froth, is a serious adjustment and re-balancing.
Although the issues are complex the underlying economic principles I know readers world wide are appreciating as making sense. China over Thanksgiving jerked more regulations into flight of capital and new regulations to keep real estate prices low and to force prices with price controls China communist style to remain low and to rise. This effort to stop shadow lending in China ( now out of control lending ) and to cap top tier real estate prices defines how panic China leaders are desperately trying price controls which are last gasp and never work. just before the correction in China finally crashes out the economic boom made possible by government buying and borrowing comes to SUPER CRASH the end is going to be fire works itself.
As we chart for you all, we are seeking in a new economic no history prepares us for to best guess outcome. Our fed is tightening money following ten years of open spigot EASING. The FED tightening is a new economic experiment with enormous risks across the entire system. TRUST US WHEN WE TELL YOU A FIRST TIME FED EXPERIMENT HAS NO PREDICTABLE OUTCOME.
A Super CRASH in 2018 making 2007 look like a child’s wading pool to the deep end of the pool IS coming. Could be 2023. When is not known. The fix to avoid SUPER CRASH is time sensitive and time is running out now, and that fix requires a cooperation the world is not yet in display of. If we compete we perish. If we cooperate we thrive.
Can you see it?
On your Thanksgiving weekend from Egypt losing 230 50 250 in a ISIS bombing of a place of workshop, their MOSK with their responses – ISIS is still insane and still dangerous always slaughtering woman and children as if Allah wishes them to take insane actions with their free will? Simply the sane deleting the insane as we all kill them off. Damaged brains that can not exist with the sane today.
Thanksgiving weekend is filled with news shaping the year end stock rally by super money manipulations. The US had record drop in durable factory good orders an so did China. Think about that for a second while the market spins up under crashing output and manufacturing following the Holiday weekend. Terrible financial news no one is paying any attention to but we are charting oil record two year high as Keystone pipe line is out of business for a week more – and Gulf instability due to Mbs failed policy is highest ever. Saudi calls Iran a Hitler they tell the 32 year old he is a little dictator boy mature and unworthy to lead.
All unfolding on Thanksgiving. if you were paying any attention at all.
Berny Dohrmann – MUCH MORE TO FOLLOW AS OUR HOLIDAY UNFOLDS