This Blog reported that Italy is in crises – debt crises – that can bring the EU and world down. How? Debt defaulting. Cascading through what is know in the jargon as COUNTER PARTY AGREEMENTS or syndications of debt pools – super debt pools and super duper DEBT POOLS globally spreading risk.
When DEBT DEFAULT CASCADES billions become trillions very rapidly. In digital space this occurs at Velocities Acceleretions and Momentum markets have never had to accommodate before. Said another way — the risk in 1937 was the other show dropping. Far to fast.
The FEDERAL RESERVE BOARD normalized interest rates to their shareholder banker buddies too fast – just as they are doing again today. This tipped a recovering economy – but not strong or by much – back into its tipping point and DEFLATION all over again. The only way out after that was world war. Re-inflate via war spending. The FED failed. Again. It has never succeeded. It just does not have capacity in a conflict of interest ( GREED ) to make its bank shareholders and controllers – those who really control the central banks – the GLOBAL OWNERS – the elite few agains tte many as per policy – which precludes sustained economic expansions due to GREED as a fact.
Italy public debt is a weight the nation is declining Into bankruptcy over. Demobraphics and aging is further declining Italy into bankruptcy. The RED party at the top today wants to leave the EU go back on its own currency and work out of the debt with massive inflation. Which never works either.
Now interest rates are soaring as Italy can’t manage its debt with free money and zero interest. As interest rates rise far too rapidly and far too aggressively debt burdened nations like Italy Spain and others can’t work out of their debt crises. They ultimate will create a DEFAULT CASCADE. The Cascade being digital will ripple world wide in 72 hours. Markets will SUPER CRASH and financial institutions will domino into bankruptcy in a separate event series CASCADE. The Cascade will evaporate market liquidity in all asset classes and circulation will cease. Markets will freeze. Trade ill stop altogether.
EBOLA is spreading with 7 more out of control cases only today and those are reported cases. Who gave those 7 their cases in a city of one million and two is giving those 21 their outreach cases next. EBOLA Is out of any control today.
EBOLA CONTAGION is like DEBT CASCADE. Financial EBOLA is Italy and it is so highly contagious. The world played are not resting to the ITALIAN FINANCIAL EBOLA like WHO IS reacting to Congro EBOLA. However the world needs to react like WHO in this financial EBOLA as the risk to “everything” is now debt cascading.
Markets are reacting. As BOND PRICES boldly go where no bond has gone before in yield curve and the shift from equity to fixed income moves a trillion dollars, a permanent shift is taking place. Can you feel the rip tide?
The outcomes remain up in the air I feel.
My leading unknowns include:
North Korea Playing Trump for a huge sucker lolly pop.
Iran dong the age thing.
Italy and its debt cascade potential.
EBOLA and its economic potential to stop everything
Bond Prices and the market yield curve sending a trillion from equities to fix income investing safe harbors
Policy its caste.
The little ball is circling the roulette table….round and round she goes…..
Exactly where she wills top though…no one and I mean no one can know yet.
RISK ON folks. Invest with caution – great caution.
Berny Dohrmann – THE CORRECTION WILL TAKE PLACE IN THE SPRING OF 2018 – FOR SURE LIKE I PREDICTED IN 2015 – 2016 – 2017 & 2018 – for sure.