LIQUIDITY – THE FED ACHILLES HEEL – OF THE “NEW” ECONOMY
LIQUIDITY is the game changer in the NEW ECONOMY. Tool that obsolete policy agencies – central banks world wide – apply to the OLD economy are fatal inside the NEW ECONOMY. What is the WEIGHT OF LIQUIDITY TO EFFECT A SYSTEM FAILURE? Well Liquidity is now the essential due to VAM which accelerates at the speed of AI evolution.
VELOCITY – ACCELERATION – MOMENTUM UP OR DOWN
Lets look at Fed errors since 2015 that now are mounting up shall we? Knowing helps don’t you think?
FED POLICY ERRORS:
- The global recovery in 2015 2016 2017 2018 was strong versus fragile in the extreme.
- The recovery was stable instead of wobbling into a new yet solid STABILITY these markets lacked in fact
- Central banks removed accomodation to soon and moved to vastly tighten money circulations far too rapidly
- Central banks sustained recovery with LIQUIDITY accommodations – when all markets declined into instablity
- Central banks removed CORE LIQUIDITY at pace levels toxiic to new AI economics.
- The new AI economy required a ten year adjustment into normalization with the most graduated process
- The Fed increased interest rates at earth quake 8.0 level to economics 8 times since 2014 4 times in 2018
- The Fed is selling 100’s of billions into the markets right when treasury is selling record auctions of US bonds
- The Fed made US borrowing cost soar and with EXPLODING dollar values moved buyers out of USA bonds
- Fed Policy is removing liquidity from the market that is a NUKE to the economic frame work of the new economics – nations will not be able to manage their debts nor will institutions be able to manage their debts
- As AI protects itself from failed Fed policy deflation spirals move asset class price to new crash levels.
- These new crash levels stair step MARGIN AND DEBT CALLS triggering asset sales to pay for the margin calls.
- The spiral down becomes entrenched as unintended consequence of Fed failed policy destroying recovery of the GREAT RECESSION and risking a GREATEST DEPRESSION OF ALL TIME AND HISTORY
- This risk is under taken without regard to system stability due to GREED by the Fed and its bankers to charge ever more money to circulations of everything to their elite profit account the FEW against the MANY.
- The old backward focus in a new AI economy is fatal to the core system if such abuse is continued by the central bankers. Appreciate they lie and there is zero truth in their manipulation of your thinking to never hold THEM accountable as the High Priest of money in the Tweet Age is now seen as naked without any clothes at all.
If the FED and central bankers are creating a fatal core systemic risk to system failure – we give them any respect why? They lack capacity to guide the future.
The Treasury coming out this Holiday stating – hey we look at all the big banks ( we looked why again ) and we confirm they all have enough cash for regular operations. REGULAR OPERATIONS? There is a run of depositors taking enormous sums out of the banks. The banks ARE HAVING CRISES LIQUIDITY ISSUES WORLD WIDE – worst is China and Italy – but it all effects us – as all banks are counter partner entwined in credit syndications that like the three musketeers in an unregulated new digital AI market economic – once chanted all for one and one for all – but that means if one sinks we all sink and that frankly is not a desired systemic design outcome anyone with regulatory authority would seek – just the opposite.
So how did we get here?
It all happened so fast in just sixty months.
After the crash of 2008 we learned nothing. Structured assets in Real Estate still drive the market. The economics of the world has moved from regulated economics to fully unregulated new Digital Global Interlinked uncoupled asset class markets with price levels controlled fully by AI. AI moved from 1.5 super money pools over a decade to less than 10,.000 super money pools. These pools super leverage capital creating a $ 440 TRILLION leveraged circulation of capital world wide.
What drives the new wealth consolidations? The rise of AI and digital leverage has magnified capital so that a ciruclation of 440 trillion Dollars in global circulation now flows with zero oversight or regulatory supervision. The laws are tool old to apply to the new economy which evolved too fast and is still Super Change evolving as anyone can see for themselves.
So today we have a huge gain in the DOW which is moving around like a drunker sailor with red ink for almost two years now of investing across all boards. Anything and everything down bubble. Why?
The Fed policy for the new economy they do not appreciate includes smart money management tools such as:
- Shut the FUCK up and do 90% less press and sound bytes in an AI new economy stop giving AI un-necessary triggers.
- Plan interest normalization over ten years starting now – each raise at unpredictable times – no more than twice a year 1/8th point raises on average and without any noise press or ability to predict at all.
- Space them out widely.
- Sell your portfolio in the market at 5% max in any one year starting in 2020 not before. Space those sales also to be unpredictable timed to minimally effect market core liquidity n any way.
- Plan three years to work maximum fed debt out of the system with lowest money cost to that debt and without liquidity challenge to the one off funding – adjust inflation index to 3.5% before you act at all – and disregard employment given the long term unemployment reserve of 39 million able bodied workers not counted in current stats in the new economy – focus policy on system liquidity and stability – ahead of all other considerations charts of index reviews.
This common damn sense box top FIVE & WE THRIVE NEW ECONOMY policy revision would work to stabilize markets. Don’t count on any Fed forward policy as they continue to operate in the obsolete past. On an old economy that died and was buried in 2013 as AI and 10,000 Super Money pools took over.
A rising percentage of financial flows operate with an AI the world has never experienced before. The AI is getting smarter and smarter with 100’s of billions being invested to out do the other chap’s AI. Why? Because the winning profit making AI gets all the money and fast. Today 95% of all world capital and bank surplus resources are invested in the new AI economy via electronic versus human managed outcomes in a new digital economics the Fed has no tools or reference to adapt into. As the Fed and regulators try and keep up the pace of change is SUPER CHANGE and far too fast to adapt old regulatory models.
In this new Economy compression and consolidations is occurring outside any nations laws to regulate. Worse and most important the rising % of capital pools reside in Dark Pools and Shadow banking – presenting zero information to the regulatory authorities who have LOST CONTROL. A new regulatory frame work needs to be created with new box tops rules along these lines and quick – or the system fails and we regroup after the EVENT. Shame on law makers for not acquiring the correct data to embrace the following NEW REGULATORY FRAME WORK FOR A NEW ECONOMY:
- Box top rules to remove unwanted speculation and short selling from all global markets.
- Box top rules to preclude unwanted wealth consolidation.
- A single Global Regulatory Agency with AI tools to REGULATE AI and coordinate with all local regulatory enforcement of a modernized global regulatory frame work – missing today.
- A global trading scheme on tax and related open access to all markets within a new rule frame work for NO NATION LEFT BEHIND PERIOD – to assure sustainable prosperity.
- Entrepreneur laws to globally open access without cost or time barriers to entrepreneur development five year exempt from normal box top rules including state free digital instant incorporation – reduced annual state fee’s uniformly applied globally – uniform crowd funding with inflation indexed five million dollar 2020 first raise ceilings world wide – in exchange for job creation credits and incentives digitally reported by all firms under new rules biannually so nations and Global regulatory agencies can track job creation or its decline geographically to moderate unwanted economic bubbles up or down over time.
- Institutional laws for bi annual reporting to moderate speculation – qualification application approvals for stock buy backs within index regulations not existing today – and credits for re-investment in nations uniformally applied nationally.
- Loop holes – all laws have go around potential once expressed – self correcting frame works that adjust to wink out loop holes in the first two quarters they occur by self correction authorities to regulatory framers including a decade conference to reframe to Ai adjustments as technology and economics in the new economy SUPER CHANGE AND EVOLVE so never again are we left behind and exposed to system failure as we are again now.
Can we fix this?
Can we do better?
Do we have great brains world wide to work this improvement out into an entirely new economy. You bet.
What are the barriers to get er done?
GREED. The existing wealth consolidators reside in a psychotic frame work of their RIGHTS not to all citizens of the planet but to addictions for POWER ITSELF such wealth creates – always unwanted as to influence – as such thinking is mid brain human to protect itself – reptilian brain reactions – from loss – where with POWER plenty is never ENOUGH for self deluding brains – all due to a failed system model screaming for upgrading globally.
As the capital flows – 440 trillion in 2019 – are controlled outside of any nations regulation by 10,000 super money pools consolidating if unchecked to 5000 and even 1000 as time passes presenting dangers to nations and culture tapestries humanity needs to savor respect and protect. The problems of the new economy are global. The frame work of new regulations must include the G 100 nations with no nation left behind outcomes in the reframe upgrading.
Do we upgrade after a fatal system collapse which is now so predictable? Or before? Will we COOPERATE or COMPETE ( every nation for itself alone )? Core perception and thinking must revise itself to win here.If we fail to upgrade out thinking the system is not elastic enough to survive the SUPER CHANGE dynamics with old rules being applied by central banks who lost all control and even influence.
The system de-stablized from 2015 finally in October of 2018 with Federal Reserve cost to money itself – to all trade up 100% in cost too soon and rapid to accommodate the SUPER DEBT BUBBLE and USA debt selling one off pig in the python of bond debt over only 24 months of time. The Fed’s software is not safe today as it lacks upgrading required to move into a new economy the Fed denies exists when in fact the reality of the new economy we all understand. Yet no new theory for the new economy exists.
We have suggested a first stop gap is at minimum triple the Budget of the SEC to upgrade their global AI to regulate AI with the most advanced AI on earth. Our USA economic system is a national defense and security first priority not a manned mission to MARS which off loads in a system collapse anyway. The SEC is largely hand cuffed and can only act under old economy old box top rules after harm has occurred. Do we all not wiish for a modernized upgraded SEC that can protect our core system before harm takes place? Can we do better….of course we can and we must?
But will we?
Law makers fail to appreciate the risk and urgency of the upgrading required.
The voters are not informed fully enough to demand the upgrades yet nor are the law makers in fair ness to them all. Super Change the age we reside in has new rules for all system adaption from the FTC to the SEC. New regulatory upgrading of core FRAME WORKS to regulate in the new AI world is required as yesterday is already too late is it not ?
So the problem is:
- A new economy
- AI economics
- Digital economics
- Leveraged out of control speculations
- A collapse of old regulations to apply to outcomes in a entirely new and rapidly evolving SUPER CHANGE economy the world has never not ever experienced before.
THAT is the problem….no one looking backwards for the train is seeing in a Star Ship Global new economy of 440 trillion in capital flows outside any regulatory oversight at all.
So THAT is my story and I’m sticking to it.
Final Fed note and to all central bankers – you must not impact system wide liquidity until the recovery is strong versus fragile which it is obviously and your liquidity effects are system risks to core system destruction in time frames never experienced in human history – the error to caution simply revises time lines set arbitrarily where TIME is the asset required to economically WORK OUT OF THE SUPER DEBT BUBBLES YOU CREATED IN THE FIRST PLACE IN THE WORLD SUPER CHANGE MARKET YOU ARE ALL FACING NOW.
Berny Dohrmann – The Canary in the Mind Shaft for the leaders of the World New Years 2019
PS: Davo’s coming up I decline attending as the non-sense of old system modeling preserved by economists proud to drive their MODEL T Ford in quarterly outcomes for profits to the Elites attending – resisting massive re-tooling required desired and required – is not my tribe – as that song the three blind mice runs through my Davo thinking today.