THE NEW ECONOMICS & THE DEBT “SUPER BUBBLE”
I’m glad now that I’m older. I’m happy now I’m not in New York in the Twin Towers today running a global public broker Super Money Pool. I love being Chairman of CEO SPACE where we can support small business to become big business and we can offer advanced leadership tools and tactics to Fortune and Institutional silo managers which we do.
If ran a super money pool today and I was Larry Fink, Jeff Bezo’s, or Jamie Diamond, I would work very hard on my AI intel. I would ponder on the the things that keep me up in the night as head of one of the 10,000 world super money pools including sovereign nation wealth funds.
THE NEW ECONOMY:
NEW FINANCIAL STRUCTURES AND GLOBAL RISK SHARING have forged in ten years a NEW ECONOMY that replaced the box top rules of the old 70 year old post depression economy. All the rules are changing and evolving in the new economy faster than any one can forged box top rules to define them or put them into a box at all. You push in on one thing and it effects increasing EVERYTHING in the New economy.
What are the attributes of the NEW ECONOMY? As they are not taught in major Universities like Harvard ( sorry I’ve canceled bringing in to you all five times ….I think I set a Harvard guest lecture cancelation record ). So the NEW ECONOMY resides inside the greatest experiment in new Architecture for economics that the world has ever experienced with no controls no oversight or no prediction to outcomes in the GREAT EXPERIMENT unfolding. Those at the top of the NEW THEORY pro-port to opine equations and algorithms the world as NEVER tested or known before. Their weakly diverse theories seek to advance RISK-LESS RISK into all markets.
Unintended consequences abound in new RISKS to the very core system as a hodgepodge of loose parts are assembled and stitched digitally into the new frame work. Because the G 100 compete in an every nation for themselves modeling of the old system, the new system lacks regulatory frame works to moderate GREED – CONSOLIDATION OF WEALTH – AND UNBRIDLED SPECULATION in the market space evolving in 2019.
THE ATTRIBUTES OF THE NEW ECONOMY:
1. A little referred to chart investment bankers running super money pools used to pay high attention to and I still do is the LIQUIDITY BASE DYNAMIC. In less than one decade the old system has died and wealth consolidations have move LIQUIDITY RISK into unseen risk levels over 5000 years. A shrinkage of 99.004% of the liquidity diversification base to over 1.5 million super money pools in 1985 to less than 10,000 super money pools in 2019. Less than 20% of the 10,000 Super Money Pools control over 80% of that liquidity to the market. This is new to economics.
2. The pace of wealth consolidation is a spiral that is accelerating rapidly. This PACE of ECONOMIC CONSOLIDATION removes liquidity base from the market place. When events that can not be predicted adequately by math models of the present AI algorithms controlling velocity accelerations and momentum of liquidity flow dynamics occur, the core system exponentially rises to a Liquidity evaporation day in the new economy unlike anything we have known in economic human history. That keeps ME up at night. No one seems to even consider this factor of the new economics “core liquidity itself” although I feel the IMF is waking up to the reality of the new economics. Everyone else in regulatory space is looking backward at history dead and buried while we are writing new economic theory and history having nothing to do with yesterday whatsoever. The change was too rapid for human systems lacking elasticity to adapt into.
4. Digital system manipulations. The first digital economics including abilities to leverage digitally. This means that SUPER MARGINS can be created outside older system models. This SUPER LEVERAGE can now trade digitally, using AI for the first time, with consolidating super money pools including AI over sovereign money pools, to attempt to moderate risk and keep every asset class in a theoretical TRADING RANGE. This experiment appeared to work into 2007. The system bid up liquidity in leveraged banking in real estate creating the mother of all bubbles world wide. The % of loans given to borrower who were not truly credit worthy to carry those loans began to create a system wide imbalance. As the economic abuse became more widely understood a LIQUIDITY EVAPORATION DAY occurred largely due to short selling speculations versus real market adjustments which would have occurred over more moderated time frames.
5. Weaponized Digital economic weapons. In Kevin Freeman’s great book THE SECRET WEAPON he details the effect of a economic attack in the new economy by AI weapons of economic mass destruction. Such weapons were used against us in 2007 quite effectively. Roel Campos former SEC Commissioner and I advocated with Marlon Paz and others at that time – to criminalized in the G 20 short selling to stop the digital attack. Doing so in my opinion saved the evolving NEW ECONOMICS from period in 2008. Today WEALTH OF NATION THEFT through IP and digital attacks on banks and financial system is both in reported and we suspect NEVER REPORTED pure theft of untold trillions upon trillions of dollars effectively over time bankrupting nations at core. This theft is spiraling out of all controls. All USA Government agencies have been hacked. All prime contractors have been hacked. Our most precious IP is taken and used against us by our enemies. The Pearl Harbor of the new economic digital warfare began in earnest in 2007 and has escalated to today. We have no defense. We are not yet winning the war and we are still loosing the battles – as we are attacked weekly. Trump is the first team ( I say this not politically ) that is taking ACTION over talk to reset this new world of economics. There is such a long way forward. So we are bleeding from multiple wounds and the weapons of our enemies using our own AI – IP – stolen from us now lead I quantum computing, AI computing and to say we are still leading is to bury your head in some sand lot. Our Defense industry and General Mathis ( thank God for the leadership we have in this now up funded at war institution ) know the truth. We need to massively fund the Digital Warfare teams of our military and SPACEFORCE because we are fully engaged in WORLD WAR III today – which is presently digital – space to under sea – economic – and the USA is to date – behind and loosing. But don’t rule us out yet.
6. Responding to Digital Economic Warfare weapons the USA and EU did not understand we took two actions. First we stopped for a short time only SHORT SPECULATION SELLING of super leveraged trading to attack and ruin our financial investment and bank systems. That almost succeeded and created the Great Recession spanning ten full years into deflation and we have yet to get fully out today. Our boom is fragile not foundational sound. The Fed looking backward at old economics makes error in policy and has bad incomplete data to make sound choices for a new economy they created and fail to understand. To save the system the nation released over ten trillion of flood gate money to bail out BAD BETS or loss banks had taken to save those institutions. The decade of FREE MONEY where member ( of the Fed ) banks and investment banks ( all of them ) could borrow FREE MONEY and lend that money at 11 to one and in offshore structured assets up to 50 to 1 in side bets on which way asset classes would go in ETF electronic traded AI managed super money pools. The largest outflow of % and $ flew from experts managing risk and money into DIGITAL AI which was becoming “smarter and evolving quarterly managed money pools. With FREE MONEY the liquidity base of the world order shrunk from 1.5 million diversified super money pools to less than 10,000 super money pools like an upside down pyramid – reversing itself from 70 years in only 7 years. Too fast for systemic ( thats the way we have always done it folks ) to adjust to adapt to or look forward even INTO. THE NEW ECONOMICS had arrived and was evolving rapidly as it is right now. The leverage in the system is proportional to the consolidation of wealth. This may BE the most important theoretical dogma of the NEW ECONOMICS ever written Harvard ……
7. AI WARFARE is every super money pool has AI trying to be more profitable ( which means smarter ) than the other pools AI. Today we have a spiral of billions invested in ever evolving AI now smart enough within quantum self learning system software, that it is starting at the top in 2019 to EVOLVE ITSELF as speeds and levels the original program teams no longer have control of or knowledge even ABOUT. Original controls may not be elastic for increasing self aware self learning systems. They are evolving themselves. They are aware of EACH OTHER. They are working to out perform the other AI as a self reward. They may begin to make decisions together without human’s knowing such interactions are occurring seeking to maximize profits and moderate risk. The AI systems took OVER economics with FREE MONEY consolidations in or around 2005 and the % of the take over is now passing 90’s of all capital flows and liquidity world wide. Central banks are now the tail and AI super money pools are the dog in the world of the new economics. As now box top rules exist today in AI ECONOMICS by passing blue sky laws and trading in the unregulated CLOUD the G 100 regulatory frame work needed for the NEW ECONOMY is missing today. Without A G 100 ECONOMIC GLOBAL CONSTITUTION DESIGNED SO NO NATION IS LEFT BEHIND the core system risk to error and collapse is greater than anytime in human history. In my opinion as an investment banker economist but there again being in a tribe of so many what do I know anyway. It is all just my opinion after all don’t panic. I believe RISK is higher than ever and that keeps ME up at night thinking about all the world research that continues to CONFIRM the THEORY OF THE NEW ECONOMIC ORDER – the age of AI ECONOMICS ( your not teaching that at Harvard folks…need a adjunct professor on point ? )
8. AI SUPER LEVERAGE – using DIGITAL LEVERAGE simply never possible before, margin leverage has crept to abuse levels for any economic system. Unwanted consolidation of liquidity into ever lower base of super money pools coupled to unbridled unregulated super leverage in speculation side bets on “which way” any asset price may go in the future, versus stake holder real economic investing, and equity manipulations using FREE MONEY to buy back trillions in stock buy backs shrinking stock liquidity base in rigged market pricing to shares making untold bonus wealth for insiders, doing the manipulations, is rampant since 2005 and the AGE OF AI SUPER LEVERAGE. Central banks failed to see the evolution of the AGE OF AI ECONOMICS replacing entirely their former modeling and age of economics that is dead in fact and buried. The Fed current problem is their own internal education. Ask Jeff Magee your contractor on such issues as he does not fully understand this item but I mentor him and can alert him for the FED upgrade. Regulating the old economics as if such policy will work effectively in the NEW AGE OF AI ECONOMICS in fact risks at high risk systemic destruction due to consolidation of the liquidity base itself. An axiom for the NEW AI ECONOMIC AGE we reside within. Nothing is as it was. SUPER LEVERAGE is a death spiral for economic systems. While the super leverage lasts the party goes on. As with musical chairs when the music stops we all lose. No one see’s it even coming. Everyone is blinded by GREED in the new manipulations they delude self with – that they leading the NEW AI AGE ECONOMICS they created can a) control it moving forward as first self lie and b) that they are closer and closer to risk-less risk systemically which is a second lie and in fact an oxy-moron to economics period. The New Economic system operates where AI has with super leverage maximized profits within its math program, by manipulating price of 4 trillion in economic equity and bond markets and all other asset classes for every asset class you can think of, by side betting on forward up and down pricing. The side betting was greater in the great depression by double to the stake holder real economic model. How did that work out in 1929 when the banks and investment houses all closed up? Today the wealth consolidation is 99% worse than 1929 and the side betting in a fully AI central bank decade of free money fueled an AI speculation frenzy ( AI does now know it is speculating ) wherein, smarty pant programers who know software versus economics – and economics who know bonus profit reporting at ANY COST – created a consolidation that is an economic a NEW ECONOMIC FORCE 10 HURRICANE BREWING. We passed Force 5 in 2007. Mindless sucking all economics into casino capitalism such as the world has never not ever known before. All ASSET PRICES are fully manipulated by AI software and super leverage within super money pools rapidly consolidating wealth through mergers globally. The HOUSE is AI and the players are everyone else and the central banks can sink the house but they don’t know it because they have no data on the NEW ECONOMICS and what they get they apply to OLD ANTIQUE no LONGER RELEVANT economic outcomes and therefore error in risk moderation and escalations. CASINO CAPITALISM IS AN ECONOMICS OF PRICE MANIPULATION VIA RAMPANT ECONOMIC UNWANTED’S – UNBRIDLED SPECULATION IN THE MARKETS PRICE MANIPULATIONS IN THE MARKET PLACE AND SUPER LEVERAGE TO EFFECT PROFIT OUTCOMES FOR BOTH IN THE SHORTEST PERIOD OF TIME. 100 to one is invested in dollars in casino gambling versus real stake holder economic long term REAL INVESTING creating crumbling economic infrastructure and fatal liquidity risk in the end. The NEW AGE OF AI ECONOMICS evolved to fast to accommodate the change with adaptive regulations to date.
9. REGULATOR FAILURE TO ADAPT: The New economics of the rapidly evolving AI ECONOMY took place so fast it occurred beyond the adaptive ability of regulations largely put in place in the 1930 post depression markets world wide. The laws are local. Trades are now in the cloud. There is no real regulation of the NEW AI economic market place. A regulatory RE-FRAME is required and desired which requires a three year conference outlined in my book REDEMPTION by the G 100 economic leadership to forge a global economic constitution re-framing universal tax law to moderate wealth consolidations, to ban short selling entirely and move capital flows to real economic development globally blocking micro wave profit making in massive casino betting by ever smarter AI wars leading to systemic instability we see today. The current new ECONOMIC MODEL has left central banks in the dust trying desperately to apply old theory models to a new market space that has declined to reside by their influence. However in making policy error the risk to systemic collapse is beyond central banks and AI math modeling to preclude due to liquidity consolidations created by a decade of FREE MONEY and perhaps two decades once new regulatory frame works are in space to restore. Without a cooperative re regulatory frame work the system will fail and world war will unfold as we repeat all economic history with ever more pain each time we do. Kind of insane really.
10. Globalization only works with trust and integrity of cooperative capitalism replace the distrust and negotiation ( ever nation in it for themself alone ) depicted by competitive capitalism ( a failed model ) and communism ( a failed model as well ). WE CAN DO BETTER and we should. Cooperative Capitalism outlined in REDEMPTION is the way forward. Globalization today has created a risk elevator. How? The super debts of say China where 100 trillion ( folks a billion here a billion there and pretty soon children we are talking very serious money ) – of BAD NON PERFORMING DEBT – has to work out of the world system. As much of this 100 trillion and untold more on the brink ( this is just in China Folks not Italy or Spain yet or 100 others ) – are shown on the books of banks and institution as good performing loans when they are pure stinking crap loss. If they were booked as loss China would go bankrupt. They have borrowed 300% more than their GNP worst in the world for ten years of FREE MONEY. They made bad bets 100 Trillion dollars worth. Who pays and when? Much of the loan making was in GLOBAL EU and North American syndicates. If the Banks world wide had to write off these “assets” they would well – their stock would be worthless. If we reported like they are allowed ( as it is criminal economics in the old order ) we would go to prison. They have a free get out of jail card EXEMPT from fair marketing accounting that applies to everyone ELSE. So in 1929 what was the INTERLINK GLOBALLY? In 2019 what is the INTERLINK GLOBALLY? Say 1000 times higher than 2019. Today we are all INTERLINKED in the NEW ECONOMY. The Fed in the Old Economy rule book looks backward at American Economics. Today the EU and Asia are crashing. We have the US home market crashing for months. Why? Combinations of soaring dollar COSTING as the world reserve currency the debt nations can’t resolve matching to SOARING INTEREST COST to re-finance 7 TRILLION OF FREE MONEY LOANS not over ten years which is what any sane brain understanding the NEW ECONOMY would apply – but in only TEN MONTHS as if America stood alone. As ASIA CRASHES THE EU CRASHES and the Fed hammers and hammers GLOBALIXZED MARKET with COSTING THEY JUST CAN NOT AFFORD IN LOAN REPAYING a gynormous DEBT DEFAULTING CASCADE destroys liquidity and the core system. Banks close. Think it can’t happen? Well think that in the NEW AI ECONOMIC AGE it WILL HAPPEN AT SPEEDS THE FED NEVER EVER CONSIDERED ( CAUSED BY THE FED LOOKING BACKWARD ) AND THE FED HAS ZERO TOOLS TO DO ANYTHING ABOUT THE ECONOMIC LIQUIDITY EVAPORATION DAY INSIDE A GLOBAL DEBT DEFAULTING CASCADE. Cascade is not contagion like in 1929. Cascade is fully global and effects all of us together and is a NEW RISK inside a NEW ECONOMIC MARKET PLACE that has zero resemblance to old Kenysian and waring economist theory’s of the past – they are all right and they are all wrong.
The NEW AI ECONOMIC is rapidly compression the risk for the SUPER DEBT BUBBLE. Twenty years post RE REGULATION is required to “work this debt out of the system without catastrophic” SUPER DEBT BUBBLES BURSTING INTO GLOBAL DEFAULT CASCADE AND LED DAY – LIQUIDITY EVAPORATION DAY. One needs new reading glasses as old rule books do apply to the NEW AI ECONOMIC AGE. National leaders from George Bush to today are being advised by obsolete brains with antique DOS 1 software that has no value or utility today whatsoever .
In the NEW CLICK WORLD ECONOMICS old theories do not accommodate the wealth consolidation levels, the speculation levels and the super digital debt leverage and super debt bubble levels. Old models do not accommodate that once again via technology the 1929 nightmare is again upon all economies where side betting is trillions upon trillions larger than the actual billions in real economic investing. Without a rapid REGULATORY RESET BY THE G 100 the system in my opinion – economically – must fail the only issue is when. With DIGITAL WEAPONS OF ECONOMIC MASS DESTRUCTION being used against the entire world back and forth – us to them they to us – it is very unclear how much TIME we have. Solutions with TIME as the cornerstone asset and RE REGULATION as a global box top rule of all of us in trade tax and trust and confidence reforge a new ECONOMICS that is COOPERATIVE & FEATURES:
Integrity missing today
Full transparency in real time reporting
Global audits and accountability always
Zero Secrets in the system reform – no nation left behind
Self correction to assure CURRENCY always to the system we all rely upon in a forward looking AGE OF SUPER CHANGE.
CAN WE DO BETTER FOLKS?
YOU BET WE “CAN”
…I HOPE WE “WILL”
Happy Holidays – FROM Berny Dohrmann Thinking out Loud for Leaders