THE DEBT HYDROGEN BOMB READY FOR A TRIGGER EVENT:
Lets look at the failed Fed Policy of FREE money and how their lack of appreciation for economic un-intended consequence – will now create an event worse than letting Morgan fail in 2008.
Today NON FINANCIAL and NON GOVERNMENT DEBT is approaching 50% of the Gross National Product of the USA – far worse than in 2007 when the crash hit us all with mortgage debt.
So lets look at the USA. The USA is the strongest economy and the best debt to asset ratio. Still having in the non financial or corporate debt sector private corporate debt fueled by FED FREE MONEY over more than ten years now, has developed a soaring debt.
The Debt unlike prior economic recoveries was not used to expand economics. Such as investment in plant jobs and equipment. No. Rather a large sector of the DEBT has been used to buy back corporate stock and manipulate through speculations with low cost debt stock price.
This all works as long as borrowing costs are low and the economy is growing. If the economy corrects and shrinks, and the cost of borrowing rises, the debt load becomes insolvent in ratio that creates a deflationary spiral into serious global recession or even depression and world wars. Keep in your mind the FED is the CAUSE and is why as they are always the cause with 70 years of failed policy and multiple wars they created – that we – advocate the Fed be merged back into the US Treasury by a simple emergency act of congress to vacate their 1907 bad 80 page law to create the failed FED in the first place.
Moving forward the debt in non corporate sector picked up to soaring in 2017 and is now residing at 8.7 trillion in corporate debt in America or 45% of our entire GNP. If you add in financial sector debt and government state federal and local debt HOUSTON economically WE have a problem. As WE are the best debt ratio to assets in the world – the rest of the world is totally fucked. Economically speaking. Their debt to GNP ratio is like China with over 300% annual new borrowing to GNP. Also that debt creates a phony GNP number. Finally there is over 100 trillion dollars of BAD never to be paid Loans in Asia all being booked as solid assets and performing assets on financial balance sheets when economically these financial statements must one day RE-BALANCE and when they do countless nations and banks are in fact bankrupt. The Debt Bomb will explode we just do not know when.
So the pace of debt in the USA is soaring. Trying to beat what?
The Fed raising interest rates in December and three times in 2018. These interest rates will move many marginal borrowers into catastrophic when their loans at almost ZERO INTEREST refinance at market rates as the borrower lacks cash flow to pay the re-financing loans. This includes most shopping malls – many retailers – and massive small business loan space as well as Fortune institutions. The default Debt Bomb contagion of spreading bond and related defaults can be seen by the last week of 6 billion running out of junk bond funds and the RUN ON THE BOND BANK if other than a one week run a one week correction has bond players in panic and stock players defending as the bond collapse does instantly spill over to equities.
When will the debt BOMB contagion of nations ignite and inflame the entire economic system of the world? The World War II world system will finally die and a new system will be required. Can this be done without world war? In the past never. World War was required to rebalance economic accounts as the only way really. Can it be reset without world war? It would require cooperation between nations versus competition – integrity between nations versus the lack of integrity – and trust which flows from both. Can those assets be installed to assure world war is avoided? How? When? By Who?
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Debt. Is soaring.
Debt in many nations is not sustainable – Puerta Rico – Venezuela – China – Spain – Italy – Greece – Russia – Saudi Arabia – Africa in general.
The DEBT BOMB must re-balance in economics without any possibility it will not. The only issue is when?
With Tax Reform by the US Congress as a global stimulus to world trade – replacing the withdrawal of stimulus ( ill timed by the Fed as always in their failed policies on economics – always ) – a three to five year growth period may spiral on until borrowing costs soar past growth profit ability to pay those costs back. Then the explosion begins. If China has a hard landing in its manipulated phony communist economy – across all asset classes – that melt down will hydrogen bomb bond markets world wide in DEFAULT CONTAGION on China Debt that will topple domino’s world wide in Debt Bomb Space. The IMF and this blog have warned on this disaster waiting to occur all year. It is economics 101.
Eventually if you borrow more than you make by 100% each year the debt will bankrupt your system – in this case Communist systems. The Communist system of economics is the most proven FAILED ECONOMIC SYSTEM the world has ever experienced – creating untold miscarry and hardship for the most number of peoples over the most extended time spans. Socialism and Communism are utter failures as organizing models for politics or economics.
Cooperative Capitalism is the replacement for what we have today. Failed competitive capitalism and failed competitive socialism. In both 1% own more wealth ( and borrow most ) than 99% and 90% of that 1% wealth is owned by only 10% of the 1%. Said another way 10,000 super wealth family money pools are the power of this planet globally and 1000 of those control 90% of all global wealth. This consolidation is not economically sustainable as circulation is impacted as it is today to preclude stability required as first priority of economic system modeling.
Frankly in digital space I think a democratic election of a six year KING would be a better model to make choice and move things forward. The congress model was Ok before it was globally bought and paid for and it is all theory when there was no pony express or telegraph. In digital real time and super change every 90 days – leadership teams – need to execute flawlessly – and congress is too slow and too bought and paid for the operate with national need and priority. A new system model like Rome and Caesar is required for a republic improving the laws of Rome for real time digital instant execution by leadership teams without the delays and money waste of the current system which is now past all its prime. Save the best an retire the rest.
New laws no one can contribute more than 100 dollars to any candidate. End of election bias and super packs.
The Supreme Court needs a CONSTITUTIONAL COURT OF LAST RESORT to assure no law violates the upgraded COOPERATIVE CAPITALISM SYSTEM MODEL uniting nations versus dividing nations.
Debt bombs in nations.
Debt bombs hide in the bond market space.
In the end the BOND MARKET is the mechanism of the depression of 1907 the depression of 1929 the recession of 1987 and stock market crash – the dot.com crash of 2000, the super crash of 2007 and 2008.
But keep in mind Sub Prime is debt. The mortgage banks and investment banks thought up structured assets. All investments are just AGREEMENTS. Money is just an agreement. More money better agreements.
The mortgage banks and banks thought up musical chairs for risk. IT works like this:
- Instead of keeping and booking the profits of a mortgage loan which can be 100% of the mortgage property value- as if you borrow 375,000 and you repay 800,000 total with interest – the bank takes less of that profit on a discount by selling the mortgage contract within weeks of closing booking some lower profit now and instantly and having all their loan money back to loan again. This maximizes their reserve ratio to borrow free money at the FED window which is open ended legal theft.
- The buyer of that mortgage places the mortgage in an East Coast Pool of Mortgages or a West Coast or Regional Mid West Pool of mortgages with all that stats on pay backs and defaults and sells the pool as a security through brokerage firms who make enormous fee’s placing the pool to pension funds sovereign nation funds who invest in mortgage pools as a predictable return source they view as safe.
- The sellers make their money in front and pool manager has most of the mortgage profit over decades executing mortgage pool collections on cash flow.
- But they don’t keep the pool profit they sell the pool to national pools to moderate risk across all 50 states in SUPER MORTGAGE POOLs each a structured asset – a risk-less risk – well until interest kills the math and the defaults kill the profits. So the Super National Pools are a huge investment banking security market expressed in 100’s of billions of dollars.
- These pools also do not execute their profits. They sell the declining fractional profit to SUPER DUPER GLOBAL POOLS blending mortgage contracts like scramble eggs, in complex global mortgage pools that hold as much pure crap as they do pure diamonds all rated by credit agencies paid by the banks and investment banks ( Fed Stock controlling share holders in this global fraud without any regulatory oversight ) where – the SUPER DUPER POOLS like the one this year in France sold off shore in 72 minutes a TRILLION DOLLARS in one SUPER DUPER POOL of riskless risk to sovereign nation funds and institutional investors who have no idea of the enormous risk they are truly taking.
We fixed nothing after 2008.
We passed FRAUD LAWS. Laws like Frank Dodd. The largest economic problem with Frank Dodd is both Frank and Dodd. The loop holes have the Fed exempt their shareholders such that FRANK DODD does not APPLY TO THEM globally. They are exempt. As if the regulation was never passed. The Volcker rule – to common sense preclude banks trading these in house assets for their own account – manipulating prices and accumulating fantastic internal system risk – is now NOT APPLYING to the largest banks and investment banks as the idea of regulation was diluted or precluded. The Public thinks the safety net laws were passed and are working. In fact the FED saw profits to its members was not interrupted and their bank and investment bank shareholders profit by MORE THAN 2008 and the new SUPER CRASH will be far WORSE because the problem is far far worse.
Today the Fed largest shareholders are introducing ( predictably ) zero cash down mortgages – setting enormous costs to the end of the mortgage – and creating mortgages like variable interest mortgages many borrowers will never be able to fully retire – mortgaged to debt slavery for life.
The trend in the USA is a rapid rush up spiral into ever greater debt – a death spiral in economics over time – world wide nations are explosively ramping up debt to Death Star levels that eventually kill the World War II agreements for world economics – due to debt cancer – which makes economics sick and ill – as the flesh of the economics turns to sick and ill puss and rot – eventually you can’t digest. The economic system must re-balance from the 100’s of trillions of bad non paying non performing debt in nations everywhere that are booked by banks investment banks and nations under laws that do not apply to the rest of us – as good assets.
Banks investment banks and nations are not required to report accounting using what they put us in prison for if we cheat – called FAIR MARKET ACCOUNTING. The Fed the source of money like OPEC is for OIL – made sure its own largest clients who pay the Fed the most money in interest – are exempt from FAIR MARKET ACCOUNTING. As these customers are too big to fail and way to large to jail the Fed system allows the crooks and criminals to profit and encourage themselves in every tighter financial spirals of consolidation of wealth – like the TIME WARNER AT&T MERGER making communication institutions provide less choice to consumers by the 100’s of millions as SUPER PROVIDERS control price in all asset classes without government regulations – because the GOVERNMENT is bought and paid for by the FED banks and investment banks or the largest lobby in any nation the Wall Street LOBBY than Pharms and Chemicals by lobby pack contributions.
So even when the mortgage SUPER POOLS of pure CRAP go bust – and are worth – less – the banks and investment banks hold their value consistent on their books ( fraud accounting ) exempt fully from FAIR MARKET VALUATION that we go to prison for if we follow their example. Think about THAT. PRISON for us a small fine of 10 to 100 million for crimes to cheat all of us out of 100 billion – say Wells Fargo the pure criminal bank – in fact we have been with Wells Fargo since 1988 before their merger and culture shift to crime. We are moving now for CEO SPACE to a business bank with integrity and leaving as are millions leaving CRIMINAL BANKS and investment banks. The nation may be bought and paid for but WE THE PEOPLE ARE NOT. WE vote with our WALLETS. We can and we must:
- Run on Wells Fargo and send a message all of us.
- Run on VW and its brands for crimes frauds and harm to humanity.
- Run on institutions who commit crimes but no one goes to jail.
As we do social capital takes over. Cooperative capitalism rises up. Repairing the regulatory divide of bought and paid for competitive capitalism and competitive failed socialism has left 7 billion of us. We CAN do better with system models in failed economics. We can save our planet and ourselves. We have to move the ungodly unholy existing WEALTH CONSOLIDATION systems – skewed to super money elites – to new laws that circulate capital and self correct from consolidation of wealth that is unwanted in society after a base line.
WE can create COOPERATIVE CAPITALISTIC GOVERNMENTS with transparency – fully reporting and accountability – and really no secrets. We have no rises of management in our nations. We have a crises of INTEGRITY. If we install cultures of INTEGRITY into our national tippy top leadership we will restore the future.
WE CAN DO BETTER.
YES WE CAN DEFEAT the enemy – “thats the way we have always done it! ”
Yes YOU and I can DO BETTER for the unborn generation.
First we have to KNOW what is wrong with our system. To fix out system.
Second we have to focus on one item at a time.
Never elect an incumbent. Term limit law makers. We the voters do that. World wide.
Never give money to parties who support incumbents.
Elect law makers who will merge your nations central bank frauds and criminals back into your state TREASURY with oversight and supervision of money supply not possible with private ownerships of a central bank – where the regulator of the banks and investment banks is now owned and controlled by the shareholders who ARE the regulatED banks and investment banks. Which one of us as voters would hire the wolves to guard the chicken coop? Not me. Not you. But all nations have done just exactly that. Which is of course insane.
If the policy of money and its issue and circulation is controlled by the ELITE WEALTH CLASS for legal theft of nations – to their incestuous profits which can never been audited or reported as national debts become the largest burden of any and every nation – why is the insanity allowed to continue? Because of course the criminals will kill YOU if you challenge their profit account. While the recent release of the Kennedy top secret files has tabloids reporting J EDGAR HOOVER whom I personally “knew’ ordered Kennedy’s killing – I can assure YOU that is not the case. Did the FED Kill both Kennedy’s following their commitment to MERGE THE FED INTO US TREASURY? You will never prove or know the answer. My opinion is locked on that item having studied it all including the 1000’s of new papers. Nothing new frankly the real case is buried so deep you can never find that classified never to be released evidence. It remains as a chilling freezer to future moves to MERGE THE FED INTO US TREASURY a model for all nations and they would follow it once done. Sanity would return from insanity.
WE THE VOTERS can effect that outcome.
FIFTH we lobby for a G 100 ECONOMIC CONSTITUTIONAL CONGRESS a three year economist from all G 100 nations conclave to design the new regulatory frame work for global digital economics between nations. Fair – full partnership for all nations – a rule of law that removes the 440 trillion in side bar speculations from 2018 global CASINO CAPITALISM where WHICH WAY a future asset class may go – all of them – up or down. When 440 trillion chases price influence and manipulations using software and fantastically evolving AI software without any human interaction markets are totally manipulated. In this new GOING WHERE NO ECONOMIC MODEL SINCE ROME OR GREECE has ever gone – unfolds with the false buggy software idea of RISK LESS RISK it reminds me of the 5th generation of IOS 11 from Apple released this week.
They released the most god awful operating system of Apple history. Costing a billion of their customers untold agony and lost performance and rebooting constantly. Quality with the Apple brand has been slaughtered. For the first time in Apple history. Customers make jokes with each other about it. Running the worlds largest Entrepreneur institution serving 140 nations consider how our 100,000’s of CEO’s using Apple with millions of their employee base, all engaged in APPLE BRAND SLAUGHTER DUE TO TIM alone allowing all five releases. My COO phoned today with version update # 5 and said laughing – she may hang up as Version 5 hangs up over and over. I said version 5 won’t let me get voice mail which I could get in version 4. She said as an advanced programer – YEAH – they fix some bugs and then other bugs open up that are worse than what they fixed. She said APPLE Is IN CRISES just like you said.
I bring this up because the FED does this in the economic system. Never have we had trillions in free money that is not being invested back in economic growth. The economic growth today is a statistical lie in all nations. In the USA they changed all reporting criteria to create fraud some years back. Today:
- The participation index is not being regarded where the number of base investors supporting the market overall is lower than 1929 after the SUPER CRASH and depression. Super Money Pools less than 15,000 are creating the volume and velocity with AI software trading against one another to manipulate all prices on all investments of all natures. Never has software controlled circulation to this level of consolidation of wealth globally all counter party agreements that entwine the entire system into dependency for the entire system no regulatory frame work has ever known, experienced, or had to deal with. Today the digital divide evolved so fast it outpaced all regulations which are local when all trades are inside the unregulated global cloud. The result is CASINO CAPITALISM which is entirely NEW and nations are passing laws as if they are dealing with the markets of yesterday which they understand and in fact they have no regulations to moderate the crimes abuse frauds and greed of evolving global CASINO CAPITALISM. As the elite money pools represent 99% of all wealth in the world and they are all making ungodly profits who will change the system if not the voters?
- The circulation index is the lowest ever reported. This means that circulation into economic back bone strength of nations is no longer occurring in CASINO CAPITALISM. Acceleration of WEALTH CONSOLIDATION is occurring inside a class war where the super rich are winning and the poor and middle class are loosing globally.
- Unemployment is a lie. Good high paying jobs have declined in the USA as one nation in 20 years by 61%. The middle class has declined in 20 years by 34 % and the decline IS accelerating. 34 million are long term un-employed counted in unemployment numbers in 2007 but after the massive lay offs in the SUPER CRASH removed by law from the count. If they were counted USA unemployment would be 15% as these larger income earners do not wish to engage at minimum wage or below labor jobs.
- 60% of America is experiencing struggle – a lower life style and 30 Million in the wealthiest nation on earth are on food stamps and 72,000 are HOMELESS in LA the Wealthiest city on earth tonight. This economic position had FRONT PAGE NEWS TODAY that forward of 2018 suicide bankrupt and chronic depression will rise along with crime and murders 60% in America with its failed and declining FED destruction of our economy. FAILED FED POLICY IS THE CAUSE and failed Congress 550 person votes to advance FAILED FED POLICY has insulated reforms to restore AMERICA. That IS the battle going on right now. Super Money Pools on Trump side wishing these level of economic reforms against the status quo and SUPER MONEY POOLS wishing to protect their UNSUSTAINABLE Profit franchise. America without reform is in a fatal decline our enemies know about and are advancing us to accelerate into system failure so they can rise up as the new economic leadership of the world.
- The wars are no longer – defense – technology – economic – or weapon spiral. Nope. There is only one economic war. ARTIIFICIAL INTELLIGENCE. Our enemies have invested in digital weapons to destroy our western way of life. They are investing the most money in AI while we invest the most money in military hardware. THE NATION THAT WINS THE AI RACE will control the world in the future. That may not be America. Our enemies sent two decades winning the hacking digital wars. They can hack anything. They have hacked all our defense contractors – the NSA – the CIA and the White House. Why? To get AI designs and software. This gets stolen from the entire world and turned into their WAR MACHINES developing massive AI. WE are not ahead in this AI war nor are we winning. Until CONGRESS adopts the Chief of Staff General Mathis most important DEFENSE SOUND BITE in 100 years – My FELLOW AMERICANS THE ONE COST CONGRESS AND AMERICA CAN ALWAYS AFFORD IS THE COST OF SURVIVAL.
Today with one Digital strike or one EMP strike all digital chips fail – all data is erased and can not be recovered – and America has no electricity no water no distribution or transportation – we are back to the prairie days with no recovery of any kind possible over decades. Even the IP to recover er along with the tools of recovery are forever lost to us. You can’t rebuild that loss in a single generation. We are for the first time vulnerable to FIRST STRIKE.
If we had invested in MARS our lobby plan to DOD, and Congress – an new agency we suggest be headed by Kevin Freeman DOD CONTRACTOR and the FATHER OF MARS – Mutually Assured RECONSTRUCTION so those who would strike us – know – that in 90 days we are back. It is not expensive. It is not time concentrate. MARS an be operational in 12 months and makes MADD work as MARS is the digital world key to American survival.
WE the people can elect law makers – for one single term – to pass laws to:
- Merge the Fed into Treasury.
- Reform Global Box Top digital economic regulatory rules that reset the world for 1000 years. Self correction and evolving.
- Foster economic reforms in each nation to replace failed competitive capitalism and socialism with COOPERATIVE CAPITALISM replacing insanity economics with sane economics.
- Reform the cooperation between nations celebrating diversity of all human identities and systems versus punishing diversity as we do today.
- installing MARS which protects all nations from roque nations acquiring the weapons of Rome like North Korea possessing hydrogen bombs they can now sell to other roque non cooperating ( insane ) nations.
We the voters to the extent we are INFORMED can change the entire world.
This Thanksgiving I Celebrate the HOPE AND THE PROMISE stored in the population of voters world wide to whom their government must be accountable. We just saw that power in Zimbabwe. Peaceful without a blood bath millions in the street parties today. VOTERS did all that .
WE the PEOPLE can reset the world.
If we run out time the world will reset after WORLD WAR.
The end of the current WORLD WAR II order is approaching and the future is what the new system will be and who will dominate that new system as we do not know nor an we predict those events yet. They are all economic not political. Debt Bombs are the key and the bond market over extended 1000’s of % with oceans of bad non performing loans sitting on balance sheets as good assets ( the elephant in the room non one wishes to even discuss in open politics given the FED protection laws in all nations advancing legal theft of national treasuries and futures for 7 billion of all of us ).
Financial ill-literacy is the cornerstone of keeping the voters away from informed consent. INFORMED CONSENT is the foundation of all real democracy’s. Teaching FED FRAUD in school is easy for all of us – here is one example on video if you have time this holiday to GET SMART FAST:
FED FRAUD VIDEO: SHARE WITH YOUR COMMUNITY AND MAKE A FAVORITE SO YOU “CAN EDUCATE OTHER VOTERS” ON SIMPLE BASIC FINANCIAL LITERACY. ASK WHY PUBLIC SCHOOLS NO LONGER TEACH RULE OF LAW AND CIVICS OR THIS INFORMATION?
Safe file to click and make a favorite. Comment on this item in our comment section to other readers for my Thanks GIVING Holiday will you all?
So WE THE 7 BILLION of the world can and we should become educated and bring our INFORMED CONSENT. This growing revolution is summarized in my book a Holiday Gift for those you love entitled REDEMPTION THE COOPERATION REVOLUTION – it has been so back ordered with enormous global readership – we have holiday assured Amazon can keep up – which within ten days all the back log should be now instant prime delivery. If you want more education on joining an active global community cooperating for world change. Economic improvement to the core system for the unborn generation which is the mission work of CEO SPACE business leaders coming together and my own lifetime work with nations to reform their economics.
We are always lookin for leaders in the Hedge Fund Private Equity and Foundation space along with sovereign nation wealth fund leadership to become CEO SPACE members for a safer higher profit journey into the future without the risks rising in todays market place. Our next event is Dec 11th in Tampa Bay ( sunny warm ) Florida at the beach.
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Happy Holidays America – Berny Dohrmann on DEBT RISKS RISING