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.
CHINA – INVENTOR OF THE DOMINOE
Ever see dominoes falling. Those complex models where one little dominos fells a city of dominoes? See them in your mind all falling and it can’t be stopped or slow down once the first one goes……see it ?
Now apply that to the world financial order and system. Consider DEBT as a DEBT BOMB. The Domino’s economically. Now consider by inter nation agreement in banking syndicates the DEBT is in POOLS and is sold and resold in these pools globally by all banks who rather than hold their own debt share risk in a POOL of debt and invest in the pools. Again the idiot digital notion of recent years has been there is a way to construct DISKLESS RISK Taking.
Now consider the bigger domino’s are economically speaking – pools of debt pools and then SUPER POOLS of debt pools that hide bad non performing debt and then SUPER DUPER debt pools. That is how the domino’s are staked up. So when the DEBT BOMB explodes in one nation it ripples instantly to the value of all the pools like Sub Prime Mortgage debt pools ( bigger now than in 2008 as nothing has been done to offset the banks and investment banks greed ).
Now consider the pools are lop sided. The biggest Pool is China today. It is running 145% of GNP in pure debt. That economically is not sustainable. Who says.
The IMF today in their greatest caution to date. The WARNING OF THE END GAME for the current order. They republished that the Debt Bomb is a risk to the entire world order do to spill over ( the Domino link via the Debt pools and Super Pools ) economist track as COUNTER PARTY AGREEMENTS.
Our blog has been reporting that Deflation – falling prices – no inflation – create economic inability to pay debt. As the Debt in China passes in bad non performing debt, 100 Trillion dollars of BAD DEBT in 2016, no one can stop the HYDROGEN DEBT BOMB when it explodes. In China. It will explode and sooner than you THINK. It happens without warning and spreads like an economic nightmare economists call CONTAGION.
The EU has 100 Trillion of bad debt which the British see and refuse to pay from the crooks that politically created it over decades. Hence the break up of the EU which like musical chairs will unwind the good nations from the bad leading the DEBT BOMBS to explode. Surplus profitable nations are leaving the EU because they can not pay off the bad non performing Debt which makes just Greece look like a child’s play ground. A dead canary in the mine shaft of the world system.
Who is first? The IMF says and warns CHINA. They say the fix must be instant. There is no more time. They warned today on Sunday – Monday in the EU. This is serious folks. Click the FINANCIAL TIMES OF LONDON and read all about that warning today. Remain informed as a CEO entrepreneur.
Communist central planners at the TOP have missing mechanisms to manage the fix. IF they don’t develop and install these missing mechanisms economically now, they will be overwhelmed as the Debt Bomb explodes. The problem. They DO NOT KNOW HOW ?
What is the outcome?
A Super World Crash of all markets. It looks like this:
- Dow at 6000
- Real Estate moving down 60% at least
- Deflation for decades
- Depression no recession
- Possibility for world wars
Given all THAT the USA is still the place to BE and that is for sure. BUT all of us ARE going to suffer along with everyone else. With the USA with 127 trillion in its own DEBT BOMB ( highlighted on this blog ) this situation stretches our more mature mechanisms as banks and investment banks will fail one after another and no TARP will fix the outcome in the USA in the breaking up EU or in Asia. Banks in the USA may close. As they may globally to regroup from the BAD DEBT that has bankrupt them through the POOL approach which legally should have been banned globally.
We have reported in the new digital economy a G 100 new regulatory frame work is required to regulate abusive greed and speculation unwanted in the world system. Without that NEW FRAME WORK the outcome is relatively certain in our opinion and many others who join us. All Presidential candidates have said there is a dangerous BUBBLE. A DEBT BUBBLE. The Fed said – no there is not. Who do you believe?
We’ll regroup faster than the rest and lead the out comes for the future as we always do now. But the pain will be shared globally. All because China lacks experience and expertise. The solution is to have the Fed and IMF and China in a emergency policy planning summit in 2016 to install the missing mechanisms using expertise they lack but which can be provided to them – to work the DEBT out of the system. Still painful. It will consume a lost decade. The longer they wait the longer the recovery time say decades upon decades as Japan knows so well.
Will CHINA do IT ?
We have reported what is coming and why. We have told you all what to DO to protect yourself. If you travel alone you are in for a wild ride. If you group up which is WHAT CEO SPACE offers to you – a community to make the ride less bumpy, as with numbers YOU do better than those who lack that larger trading community. In business.
Owning your own business and staying on top of all this is the answer. Being on salary is the worst place to ride this all out.
Domino’s. Any want to play?
Berny Dohrmann – Chairman CEO SPACE
Keeping a light on just for YOU folks – July 24th Register into CEO SPACE – I would .
POLITICAL LIARS BANKRUPT THE USA:
The Debt Clock provided on this site, is economic data, real data. It can not lie. It has no spin. It exists beyond politics although it is created by politicians. Politicians who spend more than they earn because the money is public not their own. The result is legal theft of nations.
The largest Thief is the Federal Reserve board. Who must be merged into the US Treasury to stop the legal theft going on – as it is the single largest theif. First the debt clock as “knowing you owe $ 1,000,000” and you can not pay that sum back in your lifetime or your children’ after paying taxes lets you see the generational bankruptcy.
Please make a favorite as you study the real as President Clinton said, arithmetic. It is all math folks.
Then click the the biggest SCAM in UNITED STATES HISTORY –
Learn that the Fed IS:
- A private stock firm owned by criminal bankers.
- The USA does not know who owns the Fed.
- The Fed has a congressional contract from 1910 to print our money. The Fed has never been audited. We have no clue what they make really.
- The Fed is not an agency of government IT is a criminal bank.
- The Fed charges money to print our money we can print at Treasury for free – why pay the criminals one day further?
See the film and learn a bit of the scam operates so you appreciate the truth I’ve written about for 30 years now starting with SUPER ACHIEVER MIND SETS and ending with REDEMPTION THE COOPERATION REVOLUTION. Make a favorite of this film as you will wish to share the truth folks. Like having blinders removed from your eyes. Folks economics pardon the pun TRUMPS – POLITICS. For you always need to follow the money to discover the truth. Data is real. Politics is lies.
Get my books. Become informed. See the solution. If we don’t all join a revolution to save America – we will see America in World War III and there may be no saving US.
Economics is not political – has no spin – is brutal truth – numbers never lie the truth can never be spun.
The REAL HOUSE of CARDS is coming down folks. You know it. You can feel it. SUPER CRASH is coming. Due to debt. Its all spelled out on this blog side if you scroll over a beverage. You’ll have the data. The truth. Then join CEO SPACE with others who have the truth and all wish to DO SOMETHING.
First build a safe harbor for their circle.
Second work together to save our nation and other nations whose debt is far worse than even our staggering true debts. Join the revolution folks become active versus passive. You’ll be so far ahead.
We can fix this folks but time is running out. Read my blog for the fix read my book REDEMPTION THE COOPERATION REVOLUTION for the FIX. If you want to join the revolution to fix it by making one decision – yes I will join CEO SPACE. There is safety in numbers everyone. I will become part of the revolution to save America.
Its all economic folks not political. Once you see that your step to the front of the line of real leadership. WE the PEOPLE are the United States OF America – not a handful of politicians and elites. US we own this nation. We can save it and we should. THERE IS STILL TIME. Action is required as passivity will not save America.
Berny Dohrmann – Bringing you the truth of the DEBT BOMB – spread the word. July 24th NEXT CEO SPACE gathering for the leaders of the revolution. It is bigger than any of “US” – for many are called but YOU have been chosen.
BELOW IS THE NATIONAL DEBT CLOCK FOR THE USA
Please make a favorite of this link. Please share this link.
Keep in mind this is a little debt clock. The much larger debt clocks are in the EU and in Asia.
The world has passed 100 Trillion in bad unsaying loans that are still booked legally as solid – even rock solid – assets on bank and investment bank balance sheets. If these institutions are politically required to use the REAL MARKET ACCOUNTING systems we all must use or go to prison – they would be in fact bankrupt. And have to close. Yes all of them. No you heard me. All of them.
Is there a way out?
Is there a way forward?
That many economist and I can see yes – but only one path. That path is set forth in clear terms in these blog streams – and in my book REDEMPTION THE COOPERATION REVOLUTION. If you want to get out of this debt bomb, if you want to make a difference with your life, than join CEO SPACE the revolution for sanity in economics and lend your voice to the rising mountain of those joining a real global revolution for saving the world.
If we do not save the world ( and it is just us folks because we the people are the real power globally ) then the politicians will lead us into world war.
So revolution with us or war.
Its a choice really of personal leadership and commitment to DO SOMETHING. Plus it is pleasant and you make money all along the path.
Prosperity is fun folks. Drop in.
Berny Dohrmann – July 24th CEO SPACE Westin Lake Las Vegas
PS: Folks make a favorite of the debt clock – after all – it really is YOUR MONEY.
TO MY LIFETIME FRIENDS IN GREAT BRITON
It seems a lifetime AGO really that in the 1960’s I opened my first office in London. During the decades to follow the business community I have enjoyed in Great Britain remains my favorite for personal mentors on the planet. My great father opened the discussion those many years ago explaining to his young son being mentored early mind as he was soaking it all up. “You have to teach my son the basic truth that “you” are the parents upon the planet earth. We and especially American’s are the children. Oh we have all these creative and emotional things Children always afford their parents, but the parents must suffer through considerable bad manners and rudeness until the children learn to grow up. If you can forgive US as the United States for our childish enthusiasms I assure you we have reached a maturity and I know my son has that if you will teach him, then he will learn from you with gratitude.
Although that was such a long while ago, it remains with me in the 2016 year today. Which of course makes me uncomfortable as an investment banker economist ( albeit now an older one a grandparent one ) to begin to lecture or opine in any manner. I pre suppose though my massive research and studies into the EU since pre forming and through its life have left unwavering conclusions I continue to advance without personal entrenchment. My views are always financial and economic bed rock in nature. Nothing personal ever. No emotion ever. Always just driven by data. No policies of any kind or agenda. Just economic data.
As I have reported from the beginning the EU as an economic structure is a large home, 500 million residing inside it, that is burning to the grown by DEBT FIRES, and no one in the EU economic team created a fire escape. This means there is only a hard landing to the break up of the EU. As the EU systemically is an economically failed model, driven today by ignoring trillions in bad non paying debt, while driving new free money and negative interest rate policies all of which fiscally, are failures in policy which time and an impossible weak EU recovery define today – its time to say YOUR POLICY FAILED but they don’t nor will they ever make an admission. And to deny the failure…is to pour gasoline upon the economic flames burning now.
What did the EU IN ( the fire storm ) was massive credit abuse, massive bad debt bubbles or debt bombs, and a world DEFLATION the EU can not inflate out of in 2016 and 2017 and is buried at its own funeral pyre within. We are attending the funeral of the EU in 2016.
The first one to leave the “wake” is going to do so much better than the last one to leave the funeral. The UK exit makes the EU deflation death spiral into unresolved debt bombs ( defaults ) exploding at its core nation account – worse. Far worse. Gasoline on the wildly burning building center in Brussels and as yet to effect any corner of the England WING which is not on fire – yet.
The BRIT EXIT is a vote to stop paying the massive DEBTS of the other EU bankrupt entirely members. Thats all. There is no risk to Great Briton. All such statements are political lies created to use FEAR to drive a vote toward the political versus the economic. The voters it seems understand the difference. We always had faith they would.
Trade agreements will quickly be executed and where they are not England will make new trading partners to make up any difference. The UK will lose nothing and gain billions by exiting. Loose nothing gain billions. If they stay in the EU they will bankrupt their country entirely. The net gain to the UK is so massive, that no one should vote not any one for staying. In my opinion. IT is economic suicide – it will destroy the UK economy to remain in – and it will SAVE the economy to vote to leave. Those who wish the UK to stay are the brains that are political not economic. The gain in politics to remain in is illusional. Political capital will increase with England’s independence from the EU. Individual politicians will gain if England stayed IN the EU and any real political capital is an illussion a lie. The fear is a lie. The benefit to leaving is staggering and will result in trillions of asset wealth being preserved for the British People. Nice if they read this sentence on BBC send it in for me.
Thank GOD the British had the wisdom to preserve the POUND STERLING far more important to the world today than the EU which is about to unwind utterly.
As Britain exits – and it will – Germany and others will wish to exit as the cost now exceeds the gain for nations like Germany and France. The debt buried EU members, and there are almost 20, with leaders like Italy and Spain making Greece look like loan money at Candy Land the children’s game in comparison, will be unable to continue, the DEBT BOMB will explode. We have believed first in Asia and then in the EU through contagion but it may be the other way around.
The more than 100 TRILLION in fully unpaid debt non performing debt no interest or payments made – BAD DEBT and over 100 TRILLION DOLLARS a mount everest of debt in the EU, that the system allows criminal bankers to keep on their books for their institutions now so insidious with investment banking combined in , as GOOD AND SOLID ASSETS when they are waster sewage not worth the paper the contract they are printed upon – is going to have to work its way ( deleveraging ) through the ( deflationary period ) for decades. The DEBT BOMB is the reason for the United Kingdom to cease hemorrhaging GNP into bad debt crooked politicians decades ago constructed in other less integrity driven nations – right into institutions now politically lying and making new bad loans today. If you lie like this you go to prison. If they lie like this its called politics.
Germany France and the UK can never pay the bad debts of the other member nations . Not in 1000 years. Their economies will be held back by even trying to do so since 2015 starting with Greese. As a simple economic summary. The first to leave the EU wins. The last to leave will suffer the most.
We predict the EU will be gone in 2017. The UK exit from the EU is simply …ask not for whom the bell tolls….for the bell tolls for thee….its time really. Thats all. The people are SMART informed and get it. The Political spin of ages no longer works. We are immune to it. We have been vaccinated. It is why Trump is winning. No spin allowed with Trump.
So where does that leave the rest of the world? Better off. Trading with its partners nation by nation. The EU is simply failed. The idea the IMF and the World Bank may have used Chinese funny money ( fully manipulated phony currency ) or the EU ( a bankrupt currency ) as a world reserve asset is frightening. If economist bend to political agenda the world itself is lost. In the end economics runs politics never the other way around.
One day the politicians must always balance the books and pay for their lies. If they can’t pay entitlements they promised the effective bankruptcy and termination of social contracts follows. Most of the time the Politicians are already dead so we are no longer allowed to kill them.
Those still in power catch the heat of their lying fore fathers.
Economist may make mistakes largely due to political manipulation of the system – but they repair that with new models that define the error and fix the issue. Economics is cold hard reality without emotion or political agenda.
The EU speaking as an economist is a fully burning down economic house, without any fire escapes. 500 million people will suffer more because the EU was poorly created than IF the EU had never been created at all. To watch so many innocent people suffer because of the failed policy of less than 100 brains is a mind blower in 2016. But here we are. Yes folks here we are. God Bless the QUEEN and I mean it in 2016.
Getting out before your wing of the HOUSE ( Great Britain ) burns to the ground falls under a simple human model that pre dates economics.
……….it is now….every man for themselves…..everyone runnnnn…….
That is the EU in 2016.
Congratulating BRIT voters in advance