Long time readers expect to hear it first here. Like you did on this event today in the global markets. The more going on OUT THERE the more you see on HERE. To help you sort it all out.

The less going on out there – then we post a little less as well. We call them research breaks. We are hunter gatherers seeking the data to help you to know what is really going on out there.

So in one day a 400 point wealth drop. Financial institutions hit the worst. Why?

Well in the new global casino capitalism the wealth is controlled by the owners. The owners of nations and all wealth are less than 10,000 SUPER MONEY POOLS in wealth consolidation to elites the world has never known before. This concentration of wealth precludes the circulation modeling that would advance all nations together.

Wealth consolidation is always a problem down the road in economics. Always unwanted. When systems lack regulatory guidance to preclude wealth consolidation – wealth consolidates driven by human greed. With money and power you have the one commodity in which for humans possessing massive wealth and powers PLENTY IS NOT EVER ENOUGH…….

Consolidations ultimate impact circulation. When circulation impacts are significant enough the system typically implodes usually upon debt defaults.

Today the majority of all capital movement or circulation is controlled without humans in a new AI software global arms race of software and AI one chaps code against another chaps codes or ladies codes.

The AI arms race is now trillions of dollars invested and rising. Software over markets.

Today when news of risk such as Italy unfold, AI software flash trades vocality profit making across a range of asset classes. These enormous movements of capital are made without human involvement at volumes and speeds that would have been unthinkable in prior years even a few.

Human wisdom and discernment to the context – the balance of the data on say Italy moderates the kind of enormity in trade offsets we saw today. Profits were taken and portfolio’s are re-aligning away from Italian Bond markets. Italian stocks and bonds are crashing and super crashing. There is no end in sight even for that.

The market is punishing the politics of Italy.

Italy has no short term way forward. Politically.

The result of political uncertainty has been:

  1. Massive run out of Italy a trillion dollars since last week just gone. Investment and projects canceled on hold or stopped on a dime.
  2. Bonds crash in value and interest rates soaring to refinance Italy already stretched as credit ratings are trashed – and bond carrying cost soars by 100% in only days versus weeks or months. No time for Italy to adjust.
  3. The worst case is Italy bank defaults and or closures which could happen fast and next. The AI software is watching like volutes to wipe Italy out if this even begins to occur.

Spain not so deeply in the NEWS CYCLE is being hit just as hard. Money is running out of Spain. Spain bonds are crashing. Spanish Debt as unsustainable as Italy is now seeing no future. The EU is vibrating with handwriting on the walls:

  1. The EU is going to break up – we reported on this fact for five years with data to support it – with Italy and Spain the cards that bring the house down.
  2. The cards that bring the EU house down began with BRITT EXIT a vote to step outside the endless debt support of nations too far gone to save – Italy Spain Greece and so many others. TOO FAR GONE TO SAVE. As Italy will politically opt out of the EU and Spain right behind it the EU is economically and politically done. The EU currency is done.
  3. Now folks will buy dollars selling a trillion of EU’s next watch the dollar SOAR later this year as the RUN OUT OF THE EU currency begins as folks appreciate the EU is worth less than the paper it is printed upon. When that day comes the world will shift.

Meanwhile 400 POINT drops mean nothing. AI will punish the markets on any risk on news – than digest and rebalance and roar back to values that make sense to the AI software. Human moderation is no longer a factor – keep THAT fact in your mind.

We are now inside CASINO CAPITALISM. Capital controlled by AI SOFTWARE and placed for maximum gains and least risk by software. No human’s involved. This consolidation to digital trading is compression wealth as never known before, from 1 million super money pools controlled by humans 20 years ago to only 100,000 ten years ago to less than 1000 today with 10,000 super money pools engaging AI that control the majority of all circulation – that band of the hurricane eye is tightening and tightening in economic gale force winds. Flags up.

Will Italy be the CASCADE the DEBT DEFAULTING CASCADE? it could be. Too early to say YET. It could be. Possibly. be. Hard to predict the depth of political miscalculation. Or central bank mis reads of reality.

We expect enormous swings back on the rope to the enormous swings down. Today one can’t not predict the outcome in Italy because financial condition on the round are changing so fast.

Italy is now in full blown crises and no one has a plan or knows what to do.

That outcome is funny to watch as the outcome defies all logic.

400 POINT DOW DOWN DAY and that may be just the start. We’ll see what Weds will bring us next.