WHAT “IS” THE GREAT UNWIND:
Never in history from 3400 BC to 2018 have financial records brought us to this new territory. Central banks facing a global system DEPRESSION and bank failure world wide, acted. They paid off the bad side bets in what had become a global market where laws are local but the trades are in the cloud. The result is they failed to invest in economics – infrastructure, business lending, and related economic expanding issues. The G 100 has no control over financial rip tides of capital movement at a click until a new fully GLOBAL Economic Constitution is adopted far more urgent and important than the Paris Accord. The entire system is now at MORE RISK to a shock and collapse than at any time including 2007 and its first rebalance of abuse and fraud in the system for greed. Due to the trades are Digital and present legal frame work has no standing to regulate the global Digital market space. Norway as one Sovereign Wealth Fund just passed 1 trillion dollars under management as a super money pool of elite management. Such pools distort markets.
The central banks of the world bought assets – stocks and bonds. They hold untold trillions. They are now trying to sell those assets back into the market WHICH HAS NEVER EVER BEEN DONE AT ANYTHING LIKE THIS SCALE. Doing so takes liquidity out of the market. Doing so makes the PRICE of stocks and bonds which are historically way way higher than any historic model – have stress to maintain such price imbalances. In the past much more moderate selling of assets by central banks 100% of historic data shows us created a recession. This is important because the GREAT UNWIND is happening in the final quarter of 2017 world wide.
WHY IS THE ENTIRE FINANCIAL SYSTEM AT RISK?
Deutsche Bank the largest EU bank issued a report you can see in the news today warning of the risk the entire financial system. The report which cost a ton to create is like they read my blog precisely. They confirm what I’ve written to my readers world wide precisely. Its uncanny really. They tap on the same items I’ve reported to you. Liquidity they put at the bottom I’d put it at the top. When the market panics from a shock a contagion event that undermines market trust and confidence, in a CLICK UNREGULATED CASINO CAPITALISM – ( or until we re-set G 100 regulatory frame works ) for the world – the entire market moves on a dime to sell and there are truly no buyers. This creates a LIQUIDITY FREEZE. You can’t sell but your assets are going down every single minute.
The tools used to unlock this are now on empty. Think of Central Banks and nations in serious debt loads – as a WAL MART SUPER STORE with no stock left and all the shelves are empty when 100,000 people line up for miles for supplies that are not there. Now think the only supply is money. The fix to the SUPER CRASH is simply hitting the “FIX” agencies when they have no ammo left.
Their bet was that trillions would re-inflate the system which is complex to explain here. That bet failed. Like Japan 20 years later as the first ZOMBIE state, their debt loads and economics have been unable to restart inflation. As we copied their failed tactics no real inflation is occurring. This is a stress as if the inflated economy does not rise up the real debts have to be paid without the economic stimulation and growth within rising interest rates. Interest rates are distorted to preserve the financial system which does not work in a sustained economic model for CIRCULATION AND LIQUIDITY. As interest rates rise the real risk of massive defaulting or the second wave of the financial stress upon the entire core system rises where inflation is absent.
WHAT ARE THE OTHER RISKS ASSOCIATED WITH THE GREAT UNWIND
DEUTSCHE BANK cites debt bomb’s in Italy and their departure from the EU in 2018 as a shock and China’s unsustainable communist debt strategy keeping their economy afloat spending 300% more than they make for over ten years now and that debt spiral is soaring. As state defaults hit the financial system during the GREAT UNWIND the unknowns of this FIRST TIME EVER move by the central banks – a strategy we opposed in 2008 – leaves us with – economic power that overcomes forces of influence to rebalance accounts really. This leaves core institutions bankrupt and fraud reporting will no longer cover the truth up. That is what NO ONE wishes to talk about but trust me everyone truly understands. They do not have a solution. We have written what we believe is the ONE AND ONLY road map out. Super Bond Sovereign Debt Refinancing and a G 100 Global ECONOMIC Constitutional convention. What is required is consensus – vision and will to act. Deutsche Banks suggest we are reaching a dead end – no outlet – neighborhood financially – and there might not be enough financial room left to turn the semi of the crash around and get out – due to policy making lethargy to stay ahead of these Super Change financial conditions. Make no mistake. The Financial system has gone where no system has gone before. We are in uncharted territory going at warp speed – with the DEBT of the World spirally out of any control or regulatory frame work – fed by free money now coming to a close. As you raise the price of money globally and you sell trillions of weaker assets back into the world market ( to whom do you sell but your own Fed shareholder investment banks and banks who load that crap into Norway’s sovereign nation fund if they are not partners to the GREAT UNWIND ) . No one can predict the unintended consequences to the markets of this move. No one can predict other than to warn the move without inflation, would be further inflation dampening and may cause a recession of even a system total collapse due to liquidity. If confidence in the strategy of these few making the decisions is shattered by very smart people like my readers and the market is all sellers and no buyers, the system requires re-tooling to rebalance economics.
WHAT FINAL CAUTIONS IN THE GREAT UNWIND BY CENTRAL BANKS ALL PRIVATE STOCK COMPANIES OWNED BY BANKS AND INVESTMENT BANKS THEY REGULATE BUT NOT REALLY?
So you ask yourself as you begin to obtain financial literacy some questions. If the handful of credit rating agencies that rate credit for nations and all investing are paid by the people who need the ratings – banks and investment banks – how are they independent of their own money river? Is that the way you and I would arrange it? Next why do we have a private stock firm, owned by banks and investment banks fraud named central banks and central banker working for their own shareholders, sham us to think, they can regulate their own shareholders, always held secret from nations by law. No one can oversight the central bank know its shareholder ownership or follow audit and report its money trails. Its all secret. Until Central banks are merged back into treasury of nations the world is hostage to enormous boom bust cycles where these elites consolidated wealth and world wars where these elites finance the wars and make fortunes in the wars. Until that system is reformed the past is the future. We have CASINO CAPITALISM a digital world market of super money pools controlled by software are trading volumes and velocities the entire world system has never been so stressed over before. If Chap A likes a nation the entire money train may inflow capital to that “liked” nation. In a sound byte or a tweet the nation be unliked. If the nation is unliked the new world of CLICK CAPITAL can depart that nation to devastate the future of its peoples. There is no regulatory frame work on CLICK CAPITAL. The system is under more stress than 2007. Stocks are way over priced. Fixed income in the bond market is a spiral of a tsunami all software versus human managed in a spiral such as economics has never seen. As inflation remains low and interest rates now rise we feel the GO WHERE NO MAN HAS EVER GONE will cause the SUN to explode and the system to fail in a digital unintended consequence we call CASCADE. When software AI all sells and there are not buyers to offload those sales the market and system finally melt down all the way and those who FIX such things have zero ammo left. Who says that is a risk. Deutsche Bank TODAY September 19th. Although my readers ARE financially literate and knew this long before Deutsche Bank who reads my blog reported what my blog first told you in 2010.
WHEN MIGHT THE ECONOMIC REBALANCING MOMENT ARRIVE?
Think of Casino Capitalism like this:
Competitive Socialism and Capitalism work on Fear Punishment and Exploitation human organization theory – reviews your fired – perform – get the most for the least – pay a PhD wages a high school drop out makes if you can do it. The system seeks to maximize profits for its take holder in power the few against the many in wealth consolidations used ultimately for power and influence to self perpetuate elite wealth consolidations. Making profit in consolidation is the goal of this mindless theory modeling. There is no social component driver. Public reporting is every four weeks. Creating lack of any longer term investment real economic modeling.
THINK OF COOPERATIVE CAPITALISM AS
Hub management theory where management facilitates human and capital resources to effect the highest contribution to the constituency being served within market rate rewards recognition and celebration for outer wheel goal attainment – higher service to the constituency ( See Amazon Google Facebook Apple Zappos Virgin and others ) WHILE making a profit. Focused on real economic core of reinvention to ever improve constituency services firms align and collaborate within full reporting accounting and no secret financial transparency. Public reporting is re-tooled to every 180 days providing management appropriate risk taking for longer term growth outcomes that are sustainable versus not sustainable.
Now think of casino capitalism as side bets by 440 trillion dollars in which way a future asset class – all stocks – all debt – all currencies – all commodities may go. If you wished to hedge cooper you reduced your copper inventory or you bought more copper. Today you buy future side bet contracts in copper – never economically own copper – and you trade the side bet winning or loosing. You frame diskless risk by buying along the rope on the way down again on the rope if it goes up – hedging your side bets with more side bets – and you stop loss protect and you side bet for profit swings as markets move. Manipulation of all price classes outside any national regulatory frame work, is what causes depressions when the system side bet market is many times the real market of say 3 trillion against 440 trillion money elites less than 10,000 controlling super money pools. The CASINO is now digital first time in economics. As economic rebalancing is inevitable the issue immediately is: if the inflation central banks wish for rises ( and we think we are in a fatal system crashing depression of asset class values as liquify freezes eventually ) that – what will occur is – unknown. If inflation rose up somehow there would be more time for system reform along the lines set forth her and we could step back from the GLOBAL CASINO with a new cooperative capitalism installed by the G 100 nations cooperating economically on that new regulatory frame work. If the every nation for itself populism unfolds as it is and protectionism rises a system shock is inevitable and the outcome to stop the entire system model we rely on until a new system is installed to manage these economic realities. Regulatory financial illiteracy is part of the problem and the enormous money greater than all the G 8 National wealth combined – that privately influences law makers like throwing sand into the giant chasing it’s eyes – while those running consolidate wealth as never before in history. CLICK MONEY unregulated is the problem creating a casino of global price manipulation outside any nations regulatory frame work to control influence or moderate the economics for – CLICK we are done.
Berny Dohrmann – Surprisingly Thanking Deutsch Bank for TRUTH in economics even if it is truly spitting into Hurricane Force 5 Maria in September 2017. Good luck.