OLD CHARTS MEAN NOTHING INSIDE CASINO CAPITALISM
As my readers know by a scroll we predicted the crashes from 1987 to the 6 Trillion wipe out in February – within weeks – over years of time to the time zone of the down turn. Those readers who acted lost nothing.
What is NEW?
The prior blog on the SEC – US Security and Exchange Commission upgrade in authority and budget we are lobbying for in DC explains our opinion on the issues.
Today we have an OUT OF CONTROL MARKET controlled by software and AI. The sole purpose of this AI to maximize profits for the software “owners” or less than 10,000 SUPER MONEY pools that control the majority of market liquidity, circulation, and Super Debts of the world.
We have told you software seeking to control PRICE of all asset classes, wants to profit from volatility. In fact the period of lowest volatility lowers profits and periods of higher vocality maximizes software profits. Why? It is complicated and had to do with matrix of how Software is hedged in new asset classes of structured assets to moderate risk in what is as theory risk-less risk investing – which is in fact an oxymoron. Like Real Estate can never go DOWN modeling the super money pools held as core theory to software manipulations of the real estate enormous mortgage markets in 2008 including sub prime. The smarty pants were wrong then and they are all wrong now in our opinion.
Into this comes the 2018 AI software casino capitalismsoup – where regulatory oversight agencies lost control of the supervision of ethics fiduciary trading and speculators armed with software trading in the Cloud in jurisdictional “situational ” awareness no nation can yet touch moderate or regulate – under old paper regulatory frame works of antique laws from the 1930’s – where regulatory schemes in a fully digital AI trading decade versus paper trading for a century – the laws are all antique and local and inadequate in digital space ( no one is watching over the stability of THE MARKET because THE MARKET is out of control and has become a roaring 20’s fully digital CASINO SPECULATOR profit market – but now fully global fully evolving every quarter with AI digital software in control – with volumes and velocities controlled by AI SOFTWARE within super money pool consolidations to less than 10,000 are the market place for all liquidity and circulation – consolidations never before seen not ever – and trade outside traditional regulation frame works in the cloud virtually exempt ).
This – make no mistake – is a first for global markets and a first for human economics. OLD RULE BOOKS mean nothing in the evolving rules of the AI digital games ( and it is global game war fare just like a violent video game only economic warfare ) of casino capitalism and its flow dynamics new untested and without rule books from the past to guide anyone. Today what rules the world is AI SOFTWARE in every more concentrated super money pools in control of all liquidity for all markets and all circulations outside regulatory influence or control in digital casino capitalism – a new first for human kind in less than ten years it has thunder struck the regulatory community globally. Are those who know in panic yet? A growing number are – is the answer as they are waking up to it for the first time. This blog is helping and being widely read in regulatory space world wide as one economists perspective.
Nations are hostage to capital flows in and out. China is attempting to control CAPITAL FLIGHT within a run on China. Why? Because China is a communist nation and remains not fully ( economically ) transparent. Because China central planners are communist and opaque – the information is not real time or trusted to be accurate. As China is fueling its core economic growth with 300% Super Debt over its GNP ( and thats the nation not the entire over debt burdened structure ) we have problems. Say 100 trillion of accumulated bad non paying debt in Asia overall – shown on the books of financial institution as solid assets – good current paying assets – when in fact they are pools of economic shit that can not be recycled and must economically speaking REBALANCE into DEBT DEFAULTING. Financial institutions all over ASIA go bankrupt if these crap assets are reported as crap and wiped off the balance sheet as they must one day REBALANCE into economically of course. The GREAT RE-BALANCING is coming as it came in the depression. When the SUPER DEBT BUBBLE driving the insane casino capitalism profit greed machine bursts the system will at core fail just as it did in 1929. We have set up the same rule book of the roaring 20’s speculation – only far far worse with new digital tools and AI to make LEVERAGED INVESTING a casino like the world has never known for trade – not ever. Fueled by SUPER DEBTS. Take that to the bank as economic gospel.
In 1926 the markets were booming. In 1929 folks were jumping out windows and off bridges. They had lost more than everything – through the super debt bubble before DIGITAL SUPER DEBT. More wealth will be wiped out and more wealth holders will lose MORE THAN EVERYTHING due to leveraged investing – than in the history of the entire world or all record keeping including Ancient Greece and Rome that started modern money economics.
Consider MARGIN CALLS. Consider when the market sustains a little more than 6 trillion in wipe outs what MARGIN CALL TRIGGERS to the leveraged investing will CASCADE beyond computer AI digital liquidity software parameters? Said as a computer programer may I also as an investment banker economist – suggest the software is designed to maximize profit and risk isolate – it is not designed to sustain circulation as a core program basis – this fault in programing – leaves the digital casino exposes to software moving CASCADE – an all sell market with no buyers in WEIGHTED AVERAGE to off set the mass selling – which software mindless continues to risk moderate – when in such a self triggered digital SUPER CRASH – circulation and liquidity evaporation are what exceed software parameters trigger CASCADING MARGIN CALLS and default and bankruptcy cascading which is a first – we call Liquidity Evaporation Day – that the FED central bankers IMF and World Bank and Treasuries of nations lack tools and tactics to prevent until a regulatory re frame occurs. Hence our call for a regulatory re-frame while there is still time. The profit makers however are blinded by greed and don’t wish to change how they get paid those bonus incomes. So we spit in wind primarily but we try to reach sane folks to can make a difference. Globally.
Today the debt loads are much worse globally than 1927 much worse not even comparable. All these debts land where? When you think about it? It is just words to many of my readers. THE BOND MARKETS. The Bond markets collectively represent – orderly buy and sell and placement of 2018 and forward year SUPER DEBT to those who buy fixed income assets in that asset class – guaranteed by sovereign nations – states – cities – corporations – individuals – not for profits- counties – and even agencies of states ( they are corporations you see today ).
This is all collectively the global BOND MARKET. Debt ( bonds ) are sold – as agreements to repay debts – bonds in any form are just agreements to repay debt ) on the market – where bonds or debt can be traded – up or down – as you see quality in that paper. The market of trading future promises – a speculation – versus holding the bond to full term and collecting income – influences the cost of future bonds.
Our blog reported in the USA how student loan defaults are now larger than all credit card and car loan defaults. We also reported how auto defaults are soaring to never seen before levels. Media fails to keep the defaults in front of you which is the circulation risk on item to track in fact.
So today in the USA market we have the following taking place – all new economically and never not ever happened before:
- in January – late – the US Treasurer going into to February slides in a weekend news item – hey the USA that borrowed 500 billion last year 2017 will up the anti a bit and borrow 1.2 trillion in 2018 and more in 2019. More than 100% more bond selling in 2018 than 2017. In one year the USA debt demand to bond markets will rise by more than 100% – one year – never seen before in history folks not even in world wars. Can the bond market absorb that rise?
- The USA and the FED – the central bank the FED chose this very time and has cut its revenue in taxes while it is borrowing more to fund its deficit spending plans – of spending more than the USA makes. We sell less than we buy each year creating another negative cash account for the USA – trillions in cullumulative negative trade balances buying more than you make to pay for what you buy as an entire nation – not sustainable economics folks – although oil is re-balancing the trade accounts but slowly given how large that deficit trade account truly is and has been we remain in the deep red. If we don’t change this we as a nation eventually go bankrupt. All nations do. You can not economically spend more than you earn forever. It is just economics at core.
- So the USA says we are going to up our borrowing in bonds by more than 100% in 2018 and again in 2019. But hey we have some other diamonds for you. We the FED and USA are going to stop buying bonds in 2018 first time in ten years – to create bond confidence to buy our 100% up selling while we stop buying – does that create bond confidence or lack of confidence we see today. Does that effect global bond circulation and liquidity – by billions – so that USA buying of ten years is going away right as we sell 100% more year to year and thats 100% more folks flooding bond markets. Or yeah and we are going to massively sell into those now fully stressed BY US and FED POLICY global bond markets the US elevated debt total – and other US debt we bought and accumulated to save the financial system of the world over ten years of time and corporate debt – and by the way that selling back into BONDS as we pull out 100% from buying is a bond reselling in addition to our own record USA debt bond request for buyers world wide – of an additional 5 trillion of bonds we bought over 10 years as the FED we are also right now or timing of choice SELLING INTO THE BOND MARKETS of the world – but we’ll be orderly. About all that. Do you really think this alone does not pressure BOND MARKET INSTABILITY AND OVERALL CIRCULATION LIQUIDITY PROBLEMS as its is a double whammy – all at once – never seen before in human history. DO YOU now see this bond market RISK ON issue? Why we have written about SUPER CRASH – ITS THE BOND MARKET DUMMIES !!!!!
- Problem – the FED has never done any of # 4 – BEFORE. SO this economic global experiment at a time of record bond defaulting is of concern to THE MARKET casino “owners” because they do not wish to lose money in a bond crash. What guides the policy and Fed likley mis fire to take markets the wrong way? NOTHING. WE the word markets have never – not ever been digital AI with consolidations on trading liquidity to less than 10,000 “owners” controlling world everything – in super money pools still consolidating – and no nation or central bank has ever not ever DONE STEP NUMBER 4…..BEFORE. Risk on folks risk on for a GREAT ECONOMIC REBALANCING ……
- Now then inside these pressures consider bond prices for debt – say you bought a debt on a shopping mall now coming due five years later – you have paid the lowest interest rate since 1931 – but not the principle and your mall is in the toilet economically – so you refinance the bond note at 60 months “rolling it over” to a new five year note. You borrowed at FED subsidized zero interest prime rates. Now you are asked to pay 100% of more interest to turn your item of crap the lender deems MUCH HIGHER RISK than five years ago – to interest rates which make you upside down and you turn the mall keys over to the lender by 100’s of billions we suspect coming up next – and hey # 4 never tried before – is pushing the bond prices through the roof. SO HOW MANY DEFAULTS will occur as lenders refuse or buyers refuse the higher interest cost – where they DEFAULT on the bond loans. How many of the 100’s of trillions in the bond market overall – accumulated – could create the GREAT REBALANCING or the DEFAULT WAVE into the Super Debt bubble – which finally bursts by the weight of defaults? BOND MARKETS ARE REBALANCING SOARING RISK AND REQUIRING THE USA AND ALL BOND BUYERS TO PAY MORE AND MORE AND MORE AND BOND MARKET STABILITY CAN NOT STAND FOR RECORD BOND DEFAULT CASCADING. Risk on.
Before this happens – when do investors smarter than I am – way smarter than this blog author – run out of the bond market creating a SUPER BOND MARKET CRASH?
WHEN do you think?
I ask this because I have stated that the risk of the casino economics today is the timing of the GREAT REBALANCING of DECADES OF POST WORLD WAR II GLOBAL SUPER DEBT SYSTEM ABUSE. Why? Because software lacks parameters to maintain circulation at all cost – when software is designed to make profits at all cost and protect their software “owners” from loss at all costs – to manage LIQUIDITY AND CIRCULATION in global markets at all cost is not coded in it is simply a hole in programing that runs the entire global casino – the core economic Achilles heel vulnerability of the 1929 Super Heated markets and the 2018 Super IT Heated markets – is CIRCULATION ITSELF folks. When market liquidity evaporates – LED or Liquidity Evaporation Day media has yet to report about – we have a far worse catastrophe than 1929 as the entire world order crashes. All financial institutions fail all at once. Think that could never happen? Think again about a market for the first time controlled in liquidity and circulation digital by such few players – less than 10,000 super money smarty pants money pools – with new digital AI changing every single quarter in profit making software wars – outside any regulatory controls or central bank influence – with sums in mobility far greater than central banks can marshal collectively – operating on rapidly evolving AI software systems the world has never known before without any central digital rule book to play by – a pure casino.
Bond Market super Debt has with step # 4 never economically known such conditions before. We suspect it is too much too soon for central bank policy – and risks entire system failure as an unintended consequence because no one is modeling liquidity and circulation as the core risk in Super Debt Bubble Burst with CASCADING DEFAULTS to bond markets. No one but a few economists – many respected far more than I am – crying in the wind by my side their warnings.
The risk of global system failure is that the SUPER DEBT BUBBLE BURSTS and liquidity evaporates – there are only sell orders and no buyers by ratio’s the world has never seen before which takes what – minutes if not seconds with AI software when it topples the global system mindlessly.
So the Spiral has moved from 20% of the global circulation being AI software to 30% than 40% than 50% than higher numbers into a compression spiral of circulations that has no end to its consolidation and the CONSOLIDATION OF CIRCULATION into new evolving AI software control – is a new experiment in economics – this economists suggest can only end badly for the entire world. The % of consolidation of circulation and liquidity is not fully known yet or understood as a risk that is not sustainable or acceptable. Not in core economic modeling.
No leader no nation is planning on how to – RE REGULATE the 2018 – 2019 – unwanted conditions of wild speculation in side bets on future values of asset classes to make profits and reduce risk by manipulating price in all assets in an IT software digital casino capitalism – first time ever – as software seeks it program designed trading ranges. With old paper trading regulatory frame works the post World War II system is coming to an end without a regulatory reset for the digital casino at risk from SUPER DEBT BUBBLES driving the market liquidity today.
Today we had the US Senate Intelligence committee hear testimony from the head of the CIA – and other intelligent agencies. They reported the USA is under constant digital warfare attack in our markets. The attacks are undermining our democracy they reported, stealing all our secrets and inventions, all of them, and spying on our agencies and manipulating our elections trying to divide our nation at its core. The heads of agencies reported they have had a year to make a plan to protect the USA – that NO AGENCY IS RESPONSIBLE FOR SECURING THIS OUTCOME – and that while agencies are working ‘more closely” A PLAN to PROTECT AMERICA from the growing cyber warfare attacks in over a year has not been made or formed.
If you read Kevin Freeman’s THE SECRET WEAPON AND GAME PLAN you see the history of digital warfare and you see how we have NO PLAN and why. In Game PLAN Kevin explains to YOU to have your own Game Plan because your nation has none.
The economic markets are now refinancing insane global Super Debt at a spiral in price the world has not experienced over the last ten years of FREE MONEY by central bank policy world wide. Now central banks are tightening money CIRCULATION. The huge risk to the entire system.
This is being done against a back drop of SUPER DEBT having to refinance at rising MARKET RATES of soaring “carrying costs” for five to seven years.
The USA is financing trillions more over those years at soaring interest costs to the USA which we see now – bond markets are creating PREMIUMS not commanding in a decade to carry RISK in Bond markets.
As the interest rate in BONDS rises and rises – profits in stock with their SUPER RISKS – ( 6 trillion wiped out in less than ten trading days by software ) – shaken by the speed velocity and volume’s of those who lost 6 TRILLION – inside the 10,000 ‘owners’ of the 10,000 SUPER MONEY POOLS – now move to yield in bonds. The largest outflows of 100’s of billions ran out of stocks into bonds in February.
The problem will become a massive breach of confidence by SUPER DEBT DEFAULTING CASCADES that run 6 trillion out of bonds – when the bond market SUPER CRASHES and equities crash right beside the SUPER BOND CRASH we have a system catastrophic. The notion all financial institutions go bankrupt in 72 hours – is beyond the thinking process today of those who just know such a thing could never ever happen and why.
I submit in the coming five to seven year period – do entirely to a political not an economic event – a massive DEFAULT CASCADE will occur and LED or Liquidity Evaporation Day will create a global SUPER CRASH as the World War II system finally is utterly destroyed in bankruptcy of financial institutions just like in 1929 – but worse.
As Congress weakened versus strengthened the safety nets by gutting the 1930’s post depression regulatory frame work – so that casino capitalism could profit and flourish short term – there is no remaining safety net as no one saw DIGITAL CASINO CAPITALISM driven by SUPER DEBT BUBBLES in bond markets world wide – and no one see’s it clearly today outside some of my tribe as economists like David Stockman and others writing as we are – all on the same page as to what risk we see.
Can the system be saved?
Not without a G 100 – Regulatory REFRAMING.
How likely is that in a trade war that is the new Cold War with every nation in it for themselves? If WORLD WAR III started with digital weapons attacking our financial markets in 2007-2008 for the very first time – and the DIGITAL Pearl Harbor has had many battles since all of which we have LOST completely – how likely is a new cooperation really in cyber space warfare when we are loosing and others are winning? Why would the winners stop? They are victorious.
Today in US Senate testimony the heads of our agencies noted we are losing the digital battle and no agency is in charge of winning.
So as the blame game dances around and 7 billion believe someone OUT THERE is looking out for them – protecting them – assuring we don’t have an extinction war – in fact – NO ONE IS LOOKING OUT FOR THEM in this new landscape – not economically protecting the system or in other areas of cyber new landscapes protecting them.
Now – all price is manipulated by casino software controlled by less than 10,000 super money pools. Oil demand is falling world wide as other energy sources rise and rise – but oil price goes up even while surplus stored in ships is miles out of San Francisco – Hong Kong – EU and other ports of call – who can’t even off load their cargo because the storage on land is all over flowing. Why is price not crashing? Manipulation is why. But software can not control price long term – and the market will enter a GREAT REBALANCING. Oil will crash.
The dollar now in free fall will soar.
In the end the USA will lead one of two events:
- Re-regulating and saving the existing system
- Restarting the best NEW POST WORLD system with blockchain dollars after the super crash and world wars.
In this landscape we have software trying to maximize profits agains the code writers risk parameters they think is real AI which it is NOT. Yet.
The nation that controls AI real AI will control the entire world.
AI will be a billion times smarter than humans and we will merge with it – as transhumance and become more than we are today. Have no fear the trans-human age is near. My new book DIGITAL MANNERS is all over this new age – with predictions – out in 2019 after SUPER CHANGE releases later this year.
Short term – five to seven years it is my opinion we are going to see:
- Volatility you have never known
- New peaks as highs to markets and new lows to markets
- A final GEO POLITICAL EVENT creating Debt CASCADE in defaulting asset classes into a global SUPER CRASH.
- The system if digitally attacked at the same time we think can fail utterly and freeze completely. 1929 only worse. Globally.
- When no one can say but as the spiral into unwanted speculation spirals controlling digital capitalism circulations CONSOLIDATES further and further that ever tighter rubber band of economics when it unwinds into the GREAT REBALANCING of economic abuse decades – will we believe – explode. Game over.
Now then against that everyone can make a lot of money – and secure their own GAME PLAN. You have years to secure your own game plan. You should PROSPER Inside the GREAT PROSPERITY taking place globally. Software profit rebalancing today is nothing and means nothing yet.
Just following the dancing ball – follow the money – and return here once in a while to get ANOTHER WAY to read the financial tea leaves. We are always explaining what is really going on out there.
The problem is:
- Bond market core instability and why in the casino software circulation markets
- Triggers to core bond confidence to watch out for
- Wild springs mean nothing in AI software world – outside profits being made all the way up and down all sides of that rope in today’s casino
- Profit is the only God being worshiped right now
- New fiduciary market regulatory guidance is required to save the system but remains unlikely
In our opinion – we stand alone right now to our knowledge – spitting in the wind in Washington DC – to advance the notion of a Congressional Mandate to receive regulatory RE-SET from the SEC to congress to forge expanded POWERS & BUDGET for the agency charged to save our system at core – and an agency that lacks tools tactics and funding to do so in the digital change markets of 2018. Upgrading the SEC is the highest survival priority CEO SPACE can see for the entire frame of the global markets stability today. Without such upgrading how could we get on top of the changes roaring forward right now in the digital casino Super Change market on how markets are controlled and made really?
First time in human history the global market is fully integrated and digital. This is not 1929 folks far from it. This at 2018 is much much worse with wealth wipe out being near total when the GREAT REBALANCING AND DEFLATION takes hold of the world.
We having predicted the 6 trillion dollar wipe out – will now stick with our caution for a second shoe to drop this Spring – than we feel we will recover for years and see stimulus from the USA perk up the world economics – after which our reports here on how to watch the BOND markets for the trigger to system failure and why remain a consideration to read research and form your own opinions.
Berny Dohrmann – Prescription new glasses to read your tea leaves