THIS IS A NEW MARKET – CASINO CAPITALISM – DRIVEN BY DIGITAL SOFTWARES
Everything we KNOW about history in markets is off the table. We are inside a brand new market and there is NO HISTORY. There are two issues to focus on:
Economies Grow ONLY WHEN:
- Governments spend
- Consumers spend
- Both spend
Economies enter recession only WHEN:
- Consumers stop spending ( last two months in a row )
- Government pulls back spending ( Fed stops buying and starts selling )
- Both stop at the same time ( as is happening now )
Then comes emotional intelligence. Part of the market believes the new software digital age of market making, flash trading, high-velocity trading, actually creates a more riskless risk market. Others believe software is new, truly not emotionally intelligent which is critical to TRENDS information alone can not spot. A spiral of emotional factors is being woven into software controlling world trading. I want you to consider the world financial market we all rely upon for our lifestyle and stability and common peace has warp driven itself into a ten-year global experiment outside any controls, supervision, regulation, oversight, anything really.
Consider this is the market period of MARKET SOFTWARE WARS. We have reported the RISK to the entire system is greater today by far than the RISK was in 1929. Because it is all new, and lawmakers are attorney’s and the financial information is sufficiently opaque by design and obtuse to an attorney law market, base understanding of the systemic sea changes elude economists.
Economists are educated on historic system modeling. As the entire system of 5000 years re-tools in only ten years. the software on the brains of University Educated economists lacks the core programming when ENORMOUS NEW PERSPECTIVE is required because the “given’s” of the box top rules their software has been loaded to review and report on having all floor changed. The floor they reside on is NO LONGER THERE at all.
My readers are not surprised with the SPRING VOLATILITY in the market. My readers are not surprised the downturns this week have been so dramatic as we cautioned about this on Easter Weekend. Although we predicted this period 12 months ago as long time readers well know.
Today a growing number of leading economists are writing what we told you last year as if they invented it. Many read this blog then research then prove the theory of the reporting that issue their own reports. So this week we see:
- IBM in the developing Software Wars continues with downward earnings costing Warren Buffet 800 million in stock price loss.
- China Huge National Bank MINSHENG BANK sold securities to its Wealthiest clients than stole the half a billion dollars. ( 500 MILLION US ) This bank is bankrupt. The state keeps it and many others going as a zombie firm. Which is why we suggest China is challenged to sustain its economic model as the debt of 300% debt to income piles up year after year after year – with 100 TRILLION DOLLARS the US in non-performing loans. it makes Greece look like a street hooker. Today they relaxed currency outflow and a gold rush OUT OF CHINA will commence this week. Watch.
- Greece is 300% debt to income. It has no future outside default.
- The IMF warned today the EU Banking system may bring down the world system. Why? NON-PERFORMING LOANS with Italy being the worst. France is voting to leave the EU or stay. Italy next. Spain next. Economically the banking system of EU has too many banks for customers and too many nonperforming loans. When the defaults begin and the DEBT BOMB goes off we enter a new financial history together.
- Why? Because software controls the markets and lacks EMOTIONAL INTELLIGENCE to review with confidence or not policymaker responses. The software is mindless and will protect risk at all cost including system liquidity which the SOFTWARE IS NOT WRITTEN TO EFFECT. Because the crafters of the software ( and I am an award winning financial software AIA from the 1980’s in silicon valley ) – FAILED to core engineer the modeling to liquidity first and every other consideration second – they are going to destroy the old world order and system. IT is just a case of when and there is Agency, regulatory agency, or global body supervising the new INTERNET OF THINGS in the backbone of the INVESTMENT WORLD. You read about the deep state. Now consider this the DEEP SYSTEM.
The deep system has been evolving at a speed and pace regulatory officials lack specialization for, a budget for, the global authority for, uniform rule sets for, and the public feels SAFER after 2008. That is truly for those on the inside a belly laugh.
We are so much more out of any control today than in 2008.
So we have:
- Consumer spending down.
- Automotive output crashing down.
- Producer index crashing down.
- Unemployment rising or two months
- Things are slowing and they were only 1%, to begin with.
In the DIGITAL AGE of casino capitalism, there is too much information coming too fast. This makes for misinformation – fake news – fake financial news – and manipulating news more the rule than the exception. Also when you get the 1 to 5 above they present data sets to moderate the news. Yes, we had this slowing but it is an ONE OFF. Yes, we had this rising unemployment hit the market but it is still a strong labor market ( for what minimum wage only ? ).
For 100-year middle-class economic job “core base” has been moving from human trained output to a machine and robotic output. The sea change is now. Driverless cars, Kiosks at Mcdonalds, banks, everywhere. Robots serving you food. Human worth work value and economics is shifting in a generation beyond any titan shift in 5000 years of economic theory.
YET NO ONE IS STOPPING TO DEVELOP A NEW ECONOMIC THEORY FOR THE ENTIRE WORLD TO GET OUT OF THIS MESS. Which is the sane item we propose here? That the world needs a THREE YEAR ECONOMIC CONSTITUTIONAL CONGRESS TO INSTALL THE LARGEST REGULATORY GLOBAL RE-THINK TO TRADE AND ECONOMICS THAT WILL BE SELF-CORRECTING TRANSPARENT ACCOUNTABLE REPORTABLE IN EVER EVOLVING NEW DIGITAL LANDSCAPES OVER TIME.
Without a NEW FRAMEWORK, the old framework like a SNAKE SKIN is actually peeling away and dying.
One default set where the nation’s wealthiest investors are in their national bank lobby asking how could they – make bad never to be pre-paid commercial loans – steal 500,000,000 dollars our money to try and keep that bad loan from sinking their bank? The lead investor said in CHINA – if you can not trust the national bank – what other institutions can you not trust.
In Casino Capitalism the answer is all of them. Wells Farago Bank committed crimes and opened millions of phony accounts to make shareholder reports and pay the bonus to the criminals. Did anyone go to prison? No. Did they earn billions and pay pennies out in a fine. Yes. Is that a crime working with the regulators to buy off the crime? I suggest the FED should have taken WELLS FARGO OVER – put its board and management on the criminal trial, claw back all the money and stock for damaged parties, and rename and reinvent the bank under new management. Without such EXTREME measures, you are never going to get integrity back into a flawed digital system.
Digital information does not have EMOTIONAL INTELLEGENCE. This intelligence includes:
- Risk moderation that can’t be seen in data alone. in 2017 the managed by human funds are outperforming the software funds considerably as I told you they would. Why. The market is in the early stage of unraveling globally.
- Integrity – this intelligence knows if you have integrity or you do not – data has none.
- Ethics – this honor of emotional intelligence is a self-identity that is bred not born.
- Culture – the culture of integrity and ethics now destroyed by software data and manipulation of price in the casino for mindless profits.
- Purpose – WE exist to maximally contribute to society while also making a profit – and that is our PURPOSE. Digital intelligence seeks to out profit the other software one software against the other in the new age of DIGITAL ECONOMIC WARFARE and there is no PURPOSE but greed as a mindless destination as CORE PURPOSE has now been lost in global markets.
It is hard for all of us. The billions of us are not political. Because we are all linked today we have no brainwashing as in prior generations. Today you can see through Hitler and ISIS. They are crazy brains and we all know why they do what they do – they do it because they are truly NUTS. That’s all.
All of us are sane.
All of us want to play together, celebrate diversity without punishing diversity – we want to raise our families and have ever better lives. We want to exist in circles of association, the magic all important CIRCLES OF ASSOCIATION that lives within the 1-5 above because across this world we are all ONE and all hold emotional intelligence to be what defines our human experience. Our potential to be better than history and to make new improved history.
SO what do you DO as you are powerless to control the out of control system dynamic where POLITICS leads economics off a global cliff into the world war, versus reframing as you vote for economics to lead POLITICS. Keeping in mind you read this blog and so few are ever educated to this precious information upon which all lives are secure and based – economic theory.
All action is about financial REACTION.
Everything is economics.
Its all about the money. Always must be to secure social stability.
The IMF Warned that the EU banking system investing core deposits in nonperforming loans that will never be repaid, has a capital dark hole, and if not collectively addressed across all nations may result in a WORLD SYSTEM COLLAPSE.
Now you have read me the report on this for a long long time. Over and over with charts data and supporting information.
It is economics not personal. Or political.
Today the IMF is (world leaders do not come to us when politics led economies off a cliff we warned you and warned you ) – so the IMF won’t be responsible. They did their job. Late. But they did their job.
The debt holders in Greece will not give a haircut and debt forgiveness ( allowing Greece to legally steal a trillion dollars ). They take the loss from the national crooks because for them legal theft is well – legal.
The contractual holders of debt who trusted Greece want to be paid. Not when they agreed but decades into the future but SOME DAY some way to get their money back. Only based on the population of Greece and its GMP the Debt is too large and new debt paying the old debt does not solve the new and future problem.
THE IMF says for two years – if you don’t make GREECE a sustainable debt target we won’t participate. I think they may eat those words. Why?
To save the entire system and give it more time they may have to waste some billions now. To delay a world war.
Things are unraveling “economically” at core now. The software casino capitalism we are evolving into is an UNTRIED SOCIAL EXPERIMENT OF UNIMAINGABLE DEBT LEVERAGE AND SPECULATION WITHOUT ANY GOVERNMENT REGULATORY OVERSIGHT NO CONTROLS AND NO IDEA WHAT THE OUTCOME IS GOING TO BE.
Finally, I believe the software will only lose its ability to make enormous profits on high VOLATILITY when a LIQUIDITY CONTAGION EVENT from the DEFAULT in the Debt Pipe Line breeds a chain reaction. We could UP and DOWN to 30,000 DOW before we Super Crash to Harry Dent’s 6000 Dow we predicted in 2010 was still ahead.
Resonant wave theory suggests the frequency of volatility rises when shorter cycle and contiguous into a pattern that can spawn a ROGUE WAVE in and of itself.
Berny Dohrmann – Author Film Producer – Talk Show Host – Global Key Note Speaker
PS I caution my readers to appreciate when the core system is at risk and wobbles political leaders will seek to distract your attention from the core problem so you will not panic. Keep your eyes with new glasses we are providing for you right here – and share my blog if your getting value – you know WHO needs this information. DO NOT BE FOOLED.