debt

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Satansgoalie

America The Insolvent

A reckoning is due. One the elites are already readying for.
Friday, July 20, 2018, 12:37 PM

We don’t have much time left to get prepared.

Yes, it’s rare for things to suddenly fall apart overnight -- so if you're playing the odds, we probably have a few years left before the status quo as we know it begins to break down. Maybe until 2020; possibly to 2023. But not much longer after that.

The trends are just too severe. And they're building up steam. » Read more

Blog

A Hard Rain's a-Gonna Fall

The prospects for the rest of the year are awful
Friday, June 15, 2018, 6:55 PM

As the Federal Reserve kicked off its second round of quantitative easing in aftermath of the Great Financial Crisis, hedge fund manager David Tepper predicted that nearly all assets would rise tremendously in response. 

History proved Tepper right: financial and other risk assets have shot the moon. Equities have long since rocketed past their pre-crisis highs, bonds continued rising as interest rates stayed at historic lows, and many real estate markets are now back in bubble territory. 

And everyone learned to love the 'Fed put' and stop worrying.

But as King Louis XV and Bob Dylan both warned us, what's coming next will change everything. » Read more

Insider

Wikimedia

Off The Cuff: Why Governments Prefer A Currency Crisis To A Debt Crisis

Nothing's as destructive as cascasding debt defaults
Friday, June 1, 2018, 6:09 PM

In this week's Off The Cuff podcast, Chris and Wolf Richter discuss:

  • Panic in Europe
    • Italy is threatening to destabilize the EU
  • Central Banks Have Wrecked The Market Mechanisms
    • And tapering will reveal the damage done
  • What's Better? A Debt Crisis Or A Currency Crisis?
    • It seems governments vastly prefer the latter
  • Is Deutche Bank Threatening To Start A Banking Crisis?
    • Maybe. And it would set the world aflame.

With the action happening in Europe this week, from the Italian debt panic, to the new Spain PM, to Deustche Bank's worsening prospects, Wolf Richter comes on the program to make sense of the developments in real-time.

Notably, Wolf explains why the world's central banks will work with their home governments to destroy their currencies rather than start defaulting on their debts. This is path he expects the future to take:

A debt crisis is devastating, and it's devastating selectively. A currency crisis is kind of more democratic. It hits everybody. But a debt crisis, it hits the people that are recipients of government aid the most. And that's the problem in Greece and other countries, they had to go on austerity. Little bitty pensions were cut and things like that happened to save a few pennies here and there. And when it's a currency crisis, everybody gets hit and it spreads across. And I think they understand that Japan is uniquely equipped to deal with a currency crisis because it has this large trade surplus and because it sits on a pile of foreign exchange reserves. So that won't really blow up the Japanese economy where as a debt crisis would completely implode the economy, and it would wreak havoc among the people from pensioners and aid recipients and the healthcare system and everything would just collapse. And they decided that's not going to happen.

So that's how I think we need to look at what's happening in Japan. They made a decision to prevent a debt crisis. and if they get a currency crisis, fine, they'll manage that. Italy doesn't have that option. Italy doesn't have its own currency, and it can't do that, so it can get a debt crisis. And that's what happened to Greece, and that's what happened to other countries. When they get a debt crisis it's really nasty. I hope Italy can avoid this thing, but debt crises are just the worst, absolutely the worst. But if a government needs to do anything, it's avoid a debt crisis.

Click to listen to a sample of this Off the Cuff Podcast or Enroll today to access the full audio as well as all of PeakProsperity.com's other premium content.
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kienyke.com

Time To Choose

Will you be an agent of depletion or regeneration?
Friday, May 11, 2018, 10:13 PM

There’s a vast revolution underway. And it’s time to pick sides.

Your choice couldn't be more critically important. Quite possibly, the entire fate of the human species hangs in the balance.

It's time to decide: Will you be an agent of depletion or regeneration? » Read more

Podcast

Nomi Prins: Collusion!

How central bankers rigged the world
Tuesday, May 8, 2018, 4:19 PM

Nomi Prins, Wall Street veteran turned financial industry reformist returns to the podcast this week to explain the findings within her new book Collusion: How Central Bankers Rigged The World.

Nomi has put together a timeline of exactly when and how the central banks have plundered the wealth of the masses since 2008, either directly or indirectly through the loss of purchasing power of the currencies they control. » Read more

Insider

What History Tells Us Will Come Next

Friday, April 27, 2018, 8:02 PM

Executive Summary

  • Failing empires end when the elites have exhausted the resources of the masses
  • Debt/indebtedness is the weapon the State uses to subjugate
  • Our debt-based money system is designed to make you a serf if it can
  • Are you taking the right steps to avoid the trap?

If you have not yet read Part 1: The End Of Our Empire Approaches, available free to all readers, please click here to read it first.

When the Empire of Debt can no longer find stooge countries to pillage with contracts they have to begin preying on their own local populations, which goes a long way towards explaining the actions of the Federal Reserve over the prior 20 years, as well as the student debt chart above. As well it explains the ECB vacuuming out the last scraps of wealth from Greece, and what’s about to happen to Italy.

Economic Hitmen

Under the global empire of debt, loans are issued and if the country borrowing can pay that back, awesome, but if not then the most productive assets of that country are seized as they are almost always the collateral in the story.

Greece has recently lost its ports and utilities to foreign banks and bankers, a system of financial tribute and extraction performed as neatly as was laid out by John Perkins in his book Confessions of an Economic Hitman.

Homeowners who cannot pay lose homes, farmers lose farms, and drivers lose their cars. And the people, countries and entities that don’t lose their possessions? That simply means they worked hard enough to pay off the loan by doing or creating something of value.

It’s a ridiculously powerful system of money and it deserves a museum all its own because of just how insidiously it works. Practically none of the affected parties realize that when they take out a loan what they’ve actually done is assigned their productive output to the banks in the form of interest payments, or to the banks protection agent, the government, in the form of taxes.

A critical component of this debt-money system for you to be aware of is... » Read more

Blog

The End Of Our Empire Approaches

History is clear on where we're headed
Friday, April 27, 2018, 8:01 PM

Do you have the nagging sense that our empire is in decline?

If so, don't be embarrassed by it. Historically speaking, we’re in very good company.  Far larger and longer-lived empires than ours have come and gone over the millennia. » Read more

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The Economy Is Cooked

The growth cycle has peaked
Friday, April 20, 2018, 8:04 PM

Hours ago, European Central Bank chief Mario Dragho conceded: "The growth cycle may have peaked"

Of course, those paying attention to the data already knew this. Our politicians and central planers have been peddling to us the fantasy that the global economy is strengthening, finally ready to fire on all cylinders after nearly ten years of dependence on monetary stimulus.

That just ain't so. » Read more

Podcast

Dreamstime

Doug Duncan: Even US Government Economists Predict Trouble Ahead

Fannie Mae forecasts an economic slowdown by 2019
Monday, April 16, 2018, 11:53 AM

Doug Duncan is not your average beltway economist.

The chief economist for Fannie Mae is surprisingly outspoken about the troublesome outlook for the US economy. He's worried about the rising cost of debt service as outstanding credit continues to mount at the same time interest rates are starting to ratchet higher, too. » Read more

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The Future Ain't What It Used To Be

Looks like we're in for a much rockier ride than many expect
Friday, March 30, 2018, 8:36 PM

This marks our our 10th year of doing this.  And by “this”, we mean using data, logic and reason to support the very basic conclusion that infinite growth on a finite planet is impossible. 

The only remaining question concerns how fast the adjustment happens. Will the future be defined by a "slow burn", one that steadily degrades our living standards over generations? Or will we experience a sudden series of sharp shocks that plunge the world into chaos and conflict? » Read more