This article was written by Joshua Krause and originally published at The Daily Sheeple.
Editor’s Comment: Few things are more reassuring than certainty. And one certainty you can bet on is that this house of cards won’t last. How much farther can things be stretched thin? How much more can the world take? The looming implosion of the global economy is a question of when, not if.
There is a great deal of anxiety about when and how things will go down, and how the world will react. But no one can really doubt whether or not the system is sound… in fact, it is entirely certain that it isn’t. Too many have taken on way more than they can handle, and the future looks simply disastrous. Beware and be forewarned.
It Looks Like the Global Debt Bomb Is Ready to Blow
by Joshua Krause
In recent years we’ve seen global debts soar to heights never before seen in human history. Before the financial crisis of 2007 and 2008, public and private debts were already out of control, but when the governments of the world tried to keep the global economy together with all their might, they did so by going into debt, to the tune of over $200 trillion. And that’s just what the numbers looked like the last time anyone checked back in 2014. Who knows how much debt the world is in now.
And that $200 trillion, by the way, amounts to around 300% of the world’s GDP, and it’s still growing. Obviously this isn’t sustainable. If you had a credit card debt worth three times as much as your yearly salary, and it continued to grow year after year, you’d be bankrupt in no time.
At some point, these debts are going implode the global economy. It’s a certainty. The only question that remains is when will this happen?
One of the signs that suggests this event is fast approaching, can be found in the way that governments are issuing their bonds, which are essentially debt contracts that can be bought by investors. Traditionally, a government or institution will sell bonds to an investor, with the promise that they will pay them a certain interest rate. After 10 or 20 years, the investor will get all of their money back in addition to the interest rate they’ve been accumulating. It’s basically a loan given to governments by investors.
But now governments are starting to issue bonds with negative interest rates. Imagine if a bank gave you a loan, but instead of having to pay an interest rate, the bank paid you. So after ten years a $100,000 loan may only cost you $99,000. Except in this case, you the bond buyer, are the bank.
Make sense? Of course not. You’d have to be crazy to make that deal. But that hasn’t stopped these negative interest yield bonds from becoming obscenely popular over the past couple of years.
Now it’s $13 trillion.
That’s the total amount of government bonds in the world that have negative yields, according to calculations published last week by Bank of America Merrill Lynch.
Given that there were almost zero negative-yielding bonds just two years ago, the rise to $13 trillion is incredible.
In February 2015, the total amount of negative-yielding debt in the world was ‘only’ $3.6 trillion.
A year later in February 2016 it had nearly doubled to $7 trillion.
Now, just five months later, it has nearly doubled again to $13 trillion, up from $11.7 trillion just over two weeks ago.
Think about that: the total sum of negative-yielding debt in the world has increased in the last sixteen days alone by an amount that’s larger than the entire GDP of Russia.
Think about the implications of this. There are investors out there who are actually buying bonds that are guaranteed to lose money if they sit on them. They are basically donating money to governments, so they can continue to operate. Who in the hell would ever make that deal?
The truth is that for some investors, buying negative yield bonds makes sense, albeit for horrible reasons that do not bode well for the future of the global economy.
Joshua Krause is a writer for The Daily Sheeple, where this report was first published.
I hope People will be ready for this because then all people need protection from the ones who have not saved or prepared for this…
Whatever I was reading the other night had a “guess” (based on a magazine poll) of what percentage of Americans actually, physically “prep” in a serious manner (no stones left unturned prepping).
The best estimate given was that about 1% of Americans have more than a six-pack of something in the fridge, and no more than three days worth of grub in the kitchen cabinets. By and large, folks who look a bit to the future, no differently than life on the farm is with gardens, canning, gathering, hunting, fishing, getting the trees down early to dry for cordwood, etc. truly DO account for 1 percent of the populace. It appears the rest were not counted or there really are just a pitiful few who are capable of being self-sufficient and sustain that position year after year. I suppose if you hit any prepper hard enough you’ll find one thing or another that they (in your mind) may be ‘light’ on, but not knowing the prepper nor his region places you in no position to be telling them what’s right or wrong (barring the very basics of survival of course).
I grieve for those who have done nothing or have nothing with which to do anything with. However, a time is coming when many things will suddenly be plentiful while others will seemingly go extinct, namely rations of all kinds. Water will be just as difficult so there’s no such thing as having “too much” even if you have a well, you’ll be happy for the extra 2,000 gallon water-silo you built “just in case”.
No matter where you are, your greatest assets right now are the ones you can employ to make yourself as undetectable as possible and always be armed and 100% aware of what is taking place 360 degrees around you. The more you practice this the more it becomes second nature, and easier. Many call this “situational awareness” and is taught in many different advanced firearms classes. For non-veterans it is a great class and for vets it is a good “reminder” class to bring back a few things you have forgotten, or new techniques to be learned. You’ll most likely run into like-minded people there, but do be extremely wise with who you tell what about yourself …meaning saying nothing is best as what you do isn’t anyones ‘biz’ anywho…
The truth is that for some investors, buying negative yield bonds makes sense, albeit for horrible reasons that do not bode well for the future of the global economy.
The following is implying what exactly? Why would buying negative make sense? I have some thoughts but I wish to here others thoughts first.
Because they think buying with a 5% loss and still getting money back later is safer than risking assets in our current stock market. They think they are losing less and are gambling that said government will be solvent when everything else goes away.
I find the mindset fascinating, personally. It has to be a form of cognitive dissonance. Think it through… the stock market goes to zero tomorrow and they are betting on said government to be there and paying off bonds in 10-20 years.
Individual investors are not buying these negative rate bonds. It is the banks that are doing it. They are also throwing money into the stock market, propping it up. It will all come crashing down soon. The Dow should really be 5,000-7,000. This 18,000+ is just utter nonsense. Of the market value was truly that high, everyone would be making stupid amounts of money, but they aren’t. A select few are, and some with 401k’s that have been building for a couple decades might be worth a pretty penny; but many are still working paycheck to paycheck. Retirement should be used lightly nowadays.
So how does buying negative yield bonds make sense for SOME investors or are you going to leave us hanging?? I think I know the answer but you need to finish the article asshole.(((NEXT)))
wanna Loose Money really Fast??? Go to a strip joint.
But at least you will have fun loosing it.
Another Mass Shooting at a McDonalds in Germany. They killed Children eating dinner, with AK47’s and yelled “Allah Akbar.” This shooting is being blamed on the Newest Zionist Muslim Immigration Policy.
And Hillary wants to increase Syrian Illegals Immigration to the US by 500%+.
There will be a huge uprising and it will be us against the politicians among other groups for starters.
The only good politician is a dead politician! A fact which not arguable!!
Just watch the 13th Hour and know you will need that level of fortitude when the SHTF.
It is great that I don’t worry about this any more.
#1 Out of Debt.
#2 Have Food.
#3 Have weapons.
#4 Have Ammo.
#5 Have Meds.
#6 Have Water purification.
#7 Have Family and Friends.
#8 Have power sources.
#9 Have a Great BOL.
#10 The most important. I have made it right with God!
I second that emotion
#11 I am at peace.
#12. I have wheesky 🙂
#12 Southern Comfort? That is my #12
Work for everything from cutting teeth to colds to a Good nights sleep.
Good to hear from YA!!!
Amen 1-12 great list. SoCo not on my list, prefer Kentucky straight bourbon whiskey.. Beam, heaven hill, buffalo trace products.
Bible, bullets, bourbon.
Bought 5 bottles of Bourbon this week. Blantons, Knob Creek,4 Roses, Bookers and a bottle of Colonel EH Taylor. Will get some good Scotch next week 17 yr old or better. BOL’s are a little easier to take with the right supplies!!
I have dark chocolate, Altoids p’mints, herbs, spices other natural remedies, plenty of ammo, canned goods, cleaned out house of useless stuff and downsized. Have several containers of bartering items. People on meds (thyroid, etc) could run out of medications if things are bad enough. If shtf, many will croak from heart disease w/o meds.
#12. I have wheesky 🙂
In fact I recieved high praise for my wheesky. One friend said it was better than the high dollar special stuff he goes out of state to buy. Problem is it is so smooth and easy drinkin and tasty that it’s easy to get carried away and at 100 proof it can lay you out before you know it lol.
Back to work for me monday uuhhhggggg. Will check in from time to time 😛
Genius, welcome back. Been missing your wisdom.
Hey Genius.. been a while. My solar system is phenomenal. Charges all day and I run the A/C, run fans all night and by morning the system hasn’t dropped below 12.3 Volts charged yet by morning. I keep staring at the meter like looking for a glitch, but none. Since I connected the Outback 80 Controller last fall, I have never had to use the gas generator to charge the batteries a single time. I run the small fridge 24/7. and looking to add a small chest freezer soon. A local down the road raises a small herd of cattle, Hormone free, and sells quarters for $5 per LB, steaks roasts, hamburger, everything for $5/ Lb. So I’m jumping on that deal soon and split a cow with a few other neighbors.
Layed a hardwood floor down in the cottage this week and sealed it with polyurethane. And now finishing up the trim with stain. Its all looking good and coming together. And I will say, starting from scratch, it will take a good 2 full years to finish a living quarters doing it Solo. Wild turkeys are coming in now on a regular basis, and everything looks happy.
I could use some of that shine. Sounds tasty.
A. good still will be better than gold.
made what right?
did you suck the cock of christ you slave?
people and mythology-they never grow up.
Believe as you may.
If I’m wrong I’m out nothing. If Your wrong. Can you say “Burn Baby Burn”
To all my friends here. I think we have another TROLL?
Please don’t feed the TROLL.
Trolls get tossed into the express tree shredder portal to hell they only scream for a few seconds but then again some people deserve to die screaming
That’s the Christian Spirit in Truality- Gods soldier. You are a good Little Pawn for your make believe magic show. You should paint your face like a clown. Cause Religion is like a circus. Now pay your master Fraudsters for your feel good hour of weekly BS.
i know what you mean.little midget brains-ill deformed-kinda like zika-hey…hmmn-might be on to some thing here.
you probably already know this but there are two kinds of trolls and of course they are all scumbags but the first type which this site has had the most of is a govie snitch, and now with the election coming up soon ( if we have one) is the LIBTARDS, MOST of them don’t know that there are a few people around who have been actively tracing the ip’s and they have a list of these people so at some point they may get there just desserts!! just a little tidbit of info. for you!!
i am no libtard, asshole,i am behind trump,i just do not believe in 2000 year old goat herder myths.
any one that comes at me will regret it.
so go suck the cock of your make believe deity you mental midget.
Knowit all ???
DAMN, did i hit a nerve, sorry!1 ( NOT ) your just another wannbe and can spell some nasty verbage!! i could say more but YOU KNOW want you are and you don’t like yourself so you come here to stir the pot and try to make yourself feel good, it won’t work fellow, just crawl back into your man cave and be proud of what you THINK YOU DID, HA HA!!
You certainly pegged knowitall. Knowitall is a text book sociopath. But knowitall already knows that. Knowitall was just waiting to see how long it would take to flush him out.
So you’re backing Trump and you don’t believe in myths….
HAHAHAHAHA….. I can stop reading your posts now. I appreciate you just coming out of the closet like that… it saves me time figuring you out.
knowitall; Maybe a little respect for others beliefs. What if you’re wrong? Any proof you aren’t? I respect your right to believe what you believe but I sure won’t trash you for it.
Can’t respect any religion or people who wants to kill or preach killing .. How can any one respect this crap
That’s much more than just a troll. That’s a demon possessed, filthy entity that would say those things.
You know Hillary gave billions to pay for her people to hit the social media and bloggers.. so the ones who wants to continue to fight against your opinion, are usually the ones that are troll.
If you want to give a opinion feel free, l will learn from people here also.
its called a free mind-some thing you fear the most.
Your HANDLE SAYS IT ALL, YOUR A IDIOT AND PROBABLY A GOVERNMENT TROLL, so since you like ti insult people, like i said your IP address is on record some day the BOYS will come to see you ASSHOLE!!!
more empty threats from apache and his “boys”.
HAHAHA.you are freaking stupid.hey boys-meet my toys.
my ip huh?HAHAHAHA!
weak ass bitch is what you are.
oh yea-i have your ip addy now.hehehe.wanna meet my boys?
Knowitall, you don’t know shit. Take your trolling ass elsewhere.
i obviously know more than most here-i know that there are no such things as gods and demons.only children beleive in mythology.you peeps are suckers.
Dear Know. You know more. For example, you do know who Simon Greenleaf is, correct?
No? Well, let me assist, if I may. Greenleaf was a professor at Harvard in the 1800s. He was Jewish, not Christian. Greenleaf is generally credited as one of the leading contributors to what constitutes valid evidence in an American court of law.
With me so far, my dear Bright? Tres bonne.
One day, a student had the temerity to ask if he had ever read the Christian gospels. He admitted he hadn’t, but out of intellectual honesty – which I assume you have, as well – he did. Suffice to say, a few years later he penned the famed “Testimony of the Evangelists,” supporting his belief in the resurrection of Christ. Similar books by former atheists/agnostics like Lew Wallace (of Ben Hur fame) or Lee Strobel (law degree from Yale, who wrote The Case for Christ), are just a few others.
Just a brief note. And a brief question, if you will allow me: why such vitriol against the God you say isn’t there? Rather strange, no, to hate something that doesn’t exist?
i dont hate the non existant-just those that profess in such.religion-all types-is the problem,always has been.always will be.it gets us no where,it stagnates,it makes the mind lazy.
Talk about stupidity and audacity all rolled into one “loser”. I can tell him from firsthand experience he’s headed on a one-lane road straight to hell and with a mouth like that he’s got his foot ‘in the carb’ as he does it.
” he’s headed on a one-lane road straight to hell and with a mouth like that he’s got his foot ‘in the carb’ as he does it.”
here we go with the empty threats-my pedal is to the metal,tard.
Knowitall- You are pretty blunt, but in fact very right. Religion is man made superstition, that’s what makes the dopes frightened and duped into believing in stupid stuff, so they won’t burn in Hell. Heaven or hell there is no such place. Nobody has ever been saved period, so after 2000 years of proven Fraud, these dopes still believe. Most religion is just a family tradition handed down from generation to generation, and are shamed by guilt, and to think they are heathens if they do not attend church.
As a child, I was forced into this Babble BS Religious tradition until I grew up and started using my brain to think for myself. Many are too weak to think for themselves, as Religion actually causes Brain damage. It shuts down the Rational Thought process of reasoning in the brain, and these dopes are unable to accept facts, even when they are slapped in their faces with facts. That stupidity is called faith. The definition of Faith is a set of beliefs without any facts or proof. Look it up in the dictionary. That’s a fact.
People who are brain dead and filled with nonsense faith loose a lot in life. They waste a lot of time and money in fantasy land of hopey wishy, and look pretty stupid when they publically announce they are stooped and yakking this BS about their fantasy Religion.
Other superstitions are, the Lucky Rabbits foot, Lucky 8 Ball, Breaking a mirror, or walking under a ladder, throwing salt over the left shoulder, crossing their fingers for good luck.
Show me proof of someone getting ever lasting life. John 3-16… Come on, prove it or STFU. 2000 years and not a single person was ever saved. Now that’s something to bank on.
you say it nicely-i have no time for niceties.
it just does no good.brain dead slaves are what they are.
They are on the Government plantation now.. Hope they love their new slavery
Knowitall says a reprobate mind is a terrible thing to waste.
I have witness some crazy stuff in life and I am not that religious. But what you just said, you are tempting fate and fate has a funny way of dishing it out.
bull shit-in my late 60s-been like this all my life.its all hocus pocus nonsense.grow up.
Know it all.
Now I know its obvious you have no friends knowitall. I’m sure some are praying for you…it can’t hurt.
Better watch some of your friends.. LOL
jim,you seem reasonable.
You sound like a 12 year old with his first woody and don’t know what to do with it.
you a pedophile?got a thing for little boys,do ya?
Projection is a favorite with tricksters like Knowitall.
What is the point of your commenting policy when I read what I just read above ? It seems senseless and meaningless. Comments like this should be removed . I don’t come here to hear that kind of language regardless of the subject being attacked.
No meaningful question was asked . No concept was developed . We discussed how the world is being provided with distractions to keep our eyes off of what is really happening. That is exactly with this kind of posters provided another distraction. Why do you allow it?
The only thing over which you truly have control is this website. So exercise some control . Once something injures your brain is impossible to remove without a lobotomy, severe medication, or some kind of head trauma.
Is this the kind of garbage you want to put into our brains? If you have a moderator please ask them if they would exercise their authority in the future and prevent this kind of trash from appearing on your website.
if there is any justice-you will be moderated.hurt your little feelings there snow flake?
whats it feel like to know your deity has no power over me?weak assed bitch of a god ya got there.
if there is any justice-you will be moderated.hurt your little feelings there snow flake?
whats it feel like to know your deity has no power over me?weakassed bitch of a god ya got there.
My feelings aren’t hurt. I choose to walk around poop, not step in it or in your case wallow in it. There is a difference between freedom of speech and freedom to throw crap in everyone’s face like a deranged monkey at the zoo.
You are one sick troll. buh bye.
I suspect most people here on this site have the same goals. Kula and myself are lucky enough to live in our BOL, but we pay very dearly for that.
rellik amd Kulafarmer.
I see you have a storm on the way in.
Batton down the hatches.
I too live in my BOL and it totally rocks. It is nice to be out of the rat race and still make a good living.
#1 bad news sarge, you owe $59,750.
we all do 😉
#1: Focus on hunting the ones causing these issues.
#2: Focus on hunting the ones causing these issues.
#3: Focus on hunting the ones causing these issues.
Stolz, right you are! Good to see you still here mien hier 🙂
Is this how there taking the excessive amount of money they printed back off the boards?
It is not crashing, the Banks are trying to scare every one.
When the Market drops, they are buying to get ready for huge profits.
You watch, it will drop of course, but that is so they (banks and Wall Street firms) can take advantage of the Trump business Explosion when they will make Billions.
Weirdest thing- back when silver was at 13 plus, my husband told me not to buy any more. Now when it’s around 20, he’s telling me it’s OK to buy some. This, my friends, is the general mentality of the world. He was all against silver until he saw it rise recently… the time to buy stuff is when it is cheap, in my humble opinion. But, it’s pretty safe to say that the mindset of most folks here is a little different- hold up your hand if you have a lifestraw, biomass stove, solar charger, cipro that doesn’t come from Walgreens.
I don’t know how it would make any sense to buy negative interest rate bonds unless you thought we would suffer massive deflation in the future. I have a stagnant retirement account in my name that I am going to switch over to a silver mining stock after I get off here. That seems to be a better way to hold paper if there is any decent way to hold paper at all.
2isone, There are 2 parts to wealth. One part is creating wealth, the 2nd part is preserving your Wealth. I know I head the same thing when Silver was at 14 and 13 range, I bought more and averaged down as it got even cheaper. I also told friends and family to buy. Now that Silver jumped quickly to $20, My sister said I should have listened to you, She pulled the trigger and bought another 500 Oz at $20.50 with commission. I am averaged in at $16.74, so I am up $3 and happy and its all up hill from here.
Still looks like paper shorters still hammering Gold and silver. I said $26.50 by end of July. We still have week, but something drastic needs to happen to get there. Patience. I stopped watching it daily. No need to get frustrated.. OK $19.59 at todays close.
Cheers!! You do what you need to do. Stop asking for permission to prep.
16 Wild Turkeys, just yards out my door as I type this. Great to be living at my Remote country BOL.
Wait?! What?! You… listen to your husband? 😉
Wait!? What!? you listen to your husband? 😉
Yeah, I do? We’re a team. Almost 40 years now and we’very done pretty good by one another. I try to listen to him once in awhile too.
If trump does win, must face cutbacks in services.
He may resign after his first day in office when he sees the real picture.
Be prepare to really tighten your belts. People are going to have to take jobs they don’t want in order to survive: Jobs that they would turn down because they thought they were too good to do that type of labor.
Happy for yall,seriously!
But the rest of us,blue collar worker,kids,bills etc. Just trying to prep is a chore,don’t have anywhere to go,bail in ,out at last resort!Can’t carry what I do have –gonna be interesting!Still plugin away,need more BUT.
La Maniac::::|||| No worries. As long as you haven’t just started with nothing more than the idea in your mind, you are ahead of millions and millions of other people (who won’t get that far).
Standing by for the last 50(some)”here it comes” predictions.
BTW, I’ve made a couple of rocket stoves from a couple of empty Freon jugs I had layin’ around. They work pretty well. Also if you got some old propane bottles twenty or thirty pounders that are past their 12 year certification, they make good rocket stoves too. Later.
Im not telling my 10/20 whereabouts but it is in w indiana and i just heard a public service announcement on the radio from indiana state health dept giving warning and instructions reguarding the zika virus whats up with that guess theres more in indiana than corn and more to the zika virus than they be tellin us and it was a classic rock station not some am talk radio one
Im not far from you and I hadn’t hear that at all. Only recent thing I heard was Indiana is spending half a million to combat zika. No specifics were ever named tho. Any good news is appreciated.
Here’s some periods and commas……………,,,,,,,,,,,,
Just heard on the radio a classic rock station not a am talk radio one a public service announcement from indiana state health dept all about the zika virus signs symptoms warning ect whats up with that gotta be alot more to it than they are telling guess there is moe in indiana than corn and more to the zika also
Why is Zika such a problem now? They’ve been living with it in South America forever and NOW it’s a problem?
Under the virus’ description that’s being pushed, none of the natives should ever been able to form a civilization because they were so Fu%&n brain damaged from Liberalism – I mean mycrocephaly that everyone down there should be drooling all over themselves.
I don’t smell bullsh!t, I smell horsesh!t.
They may have evolved and tweeked the natural virus into something that mutated cus like you said the original in Africa was never much of an issue and besides they would all be droolers like you said good way to keep people indoors at night and away from rual areas
From what I gathered earlier this week they’re suppose to come out with a vaccine against it. Gee I wonder who will profit from that? We just seem to keep going over the same old ground with these vaccines. Hear now they want to give young boys the same vaccine they give girls for cervix cancer. More pussification of the male species….think I gonna puke……
research nagalase in vaccines…..what a rabbit hole.
GSoldier, do you know what punctuation is? Do you know how to use it? You should learn so your posts can be easier to understand. Half the time, I can’t figure out what the he’ll you’re talkin about. Are you a cousin to HCKS?
as you can see in godsol-only dummies believe in that crap.
why would an all mighty god need a soldier?whats up with that?
To answer your question, knowitall, read below what the Bible says.
[God does not need anything; but we need His love and forgiveness — His great salvation! To become His “soldiers” for sharing the good news that JESUS SAVES.]
15 and saying, “The time is fulfilled, and the kingdom of God is at hand; repent and believe in the gospel.”
2 Peter 3
9 The Lord is not slow about His promise, as some count slowness, but is patient toward you, not wishing for any to perish but for all to come to repentance.
23 For the wages of sin is death, but the free gift of God is eternal life in Christ Jesus our Lord.
23 for all have sinned and fall short of the glory of God, 24 being justified as a gift by His grace through the redemption which is in Christ Jesus; 25 whom God displayed publicly as a propitiation in His blood through faith.
12 And there is salvation in no one else; for there is no other name under heaven that has been given among men by which we must be saved.”
As for God, His way is blameless;
The word of the Lord is tried;
He is a shield to all who take refuge in Him.
uh-those are just words from the buybull-means nothing.your buybull has no authority.none.zilch,nada.
everything dies-just the way it is.
For the Newbies.
You regular faces know the drill.
Every dollar created is owed back with interest – it’s so nice for the Federal Reserve to loan us a means of trading labor among ourselves.
Some 1.46 trillion printed dollars exist for quadrillions in debt and derivatives ( better get you some printed ones – they are rare in the scheme of things ).
Debt must be constantly incurred to help “pay off” the existing debt and kick it down the road.
Actual printed currency and “savings” can’t dent the debt. Period.
The bubble constantly is inflated, but eventually it must either burst because the debt cannot be serviced or hyperinflation must be the policy to pay off debt in devalued currency (another non solution – savings in dollar terms to be wiped out)
Central banks ( the Fed ) are a great piece of the situation we are in. They are one of the Communist 10 planks of their manifesto and truly more dangerous than a standing army.
The issue which has swept down the centuries and which will have to be fought sooner or later is the people versus the banks.
Lord Acton Rothschild.
i got a bunch of the printed stuff-and a lot of the silver stuff too.no dept at all.i am right as rain.free man here-no gods-no masters.
You bring up a good point there with those 1.46 trillion US dollars in physical currency world-wide. I’m going to toss a couple more ideas out there.
First one: put those dollars of physical currency side by side with depositor accounts on books for US banks. It’s $1.46T in physical cash versus over $11T in deposits that exist only as electronic “money”. That’s a ratio of about $8 in electronic “money” sitting in depositor accounts to every $1 of physical cash. If those depositors are unable to access their accounts for whatever reason, they are going to covet physical cash dearly. For most of them, the derivatives game is way over their heads.
Second one: When, not if, we go NIRP in this country, people are going to run on bank ATM machines. They’ll be the dinosaur who looks up and sees an asteroid taking dead aim at him. They’re going to wish they had built a reserve of physical cash when they had the chance, and they’re going to respond by trying to grab whatever physical cash they can get their hands on.
If the Deutsche Bank/Italian banks death spiral doesn’t take down the financial system in this country, NIRP will. It’s just a question of which happens first, but a DBK/Italy trigger would cause a more sudden and explosive collapse. Either way, those depositor accounts full of electronic “money” are history; if the depositors are lucky, they’ll be given a variation of an EBT card to make up for their lost funds, but the catch will be that this pseudo-EBT card would only be able to be used to buy goods and not be able to be used to pull cash out of an ATM. Taking things one step further, the central banks could stuff these pseudo-EBT cards with as much scrip as they want without triggering hyper-inflation because the scrip can’t be converted into physical money. The central bank could conceivably control the flow of physical goods by simply putting a “ration card” component into the program, where the card will only pay for a certain number of a particular good in a particular time period; anything over the limit would be blocked.
Maybe someone has some thoughts on this. I have been watching for 8 years since the 2008 financial melt down and wondering when it was going to come apart at the seams with all of the money printing. Money printing is supposed to be a sure path to hyper inflation, except it appears when all of the major currencies are doing it at the same time. I have be following a ton of financial experts and trying to get a handle on what would cause it to come apart, which it should have years ago if everything was functioning normally as it has been for centuries. But now I am wondering if all of the big global banks / central banks are playing by a new set of rules and if they can just keep printing, loaning, bond buying, stock buying forever?
The reason why the anticipated hyper-inflation never came was because all the money they printed was actuarial money, not actual physical cash. It’s really easy to re-animate zombie banks the way they did in 2008; all you need are a few clicks of a mouse, and that zombie bank magically becomes solvent again. The key point to remember is that all of this “money” exists only on computer screens, and it’s very unlikely that it will ever exist as physical cash because it was never designed or intended to.
Your point about bond buying is a good one. These banks are required to buy and hold Treasuries, and this is where things start to get a little complicated. In the simplest of terms, you have banks using “money” that exists only on a computer screen to “buy” Treasuries which are also manufactured on a computer screen. As long as you don’t have an economy grinding to a halt, as is the situation we currently have, you can carry on this process until the cows come home.
The end result of the whole process is a catastrophic mis-pricing of risk. NIRP is a when, not an if, in the United States. A big part of the reason is the banks being required to “buy” Treasuries. You can manufacture as many Treasuries as you want because you’ll always have a ready-made place to dump them, so long as that dumping ground has actuarial money to “buy” them. You end up with interest rates artificially suppressed by what’s really a daisy-chain of fictitious transactions. The kicker: those fictitious transactions are being used to pay for stuff that’s real.
My thought is that Italy is going to be what sets everything in motion. If you want numbers that reflect a catastrophic mis-pricing of risk, look no further than Italy. The banking system is inundated with bad loans; 18% are in default, with a carried book value of $400b, an amount equal to roughly 25% of Italy’s annual GDP. Then look at the rate on a 10-year Italian Euro-bond: 1.15%. Something’s clearly wrong with the picture: Italy has, for all intents and purposes, a bankrupt and failed financial system, but they’re paying only 1.15% on ten-year money. Italy’s done once the citizens start running on the banks to grab whatever cash they can get their hands on, which isn’t very far away. When that happens, the derivatives exposure for clowns like Deutsche Bank kick in. The yield on Italian debt is going to explode while the price drops. The difference between the yield rate and the coupon or stated rate is what DBK and who knows who else is going to be on the hook for through their derivatives trades. None of them have the assets on books, real or fictitious, to cover their bets.
The US banking system is going to get hit hard when this does happen. The big banks are, at the very least, secondary insurers for idiots like DBK. They’ll be on the hook for whatever DBK and the re-insurers can’t cover. Ordinary citizens, the bulk of whom have never been paying attention and have been caught unprepared, are going to run to the ATMs to grab whatever they can get their hands on; most of them will end up empty-handed. I keep quoting the physical US currency numbers, but this is why cash is going to be king.
Shooter’s at Munich Germany Mall. On Fox
Obama on T V.
Achmad’s lederhosen was too tight and he couldn’t assume the position on his prayer rug and got pissed. Set him off so he hit the mall with his AK. One of these days the Krauts and the French will stop playing “kissy-face” with these camel phuckers and wise up. Until then they’ll keep getting bombed, mashed by trucks and machine gunned.
I agree with the Sgt.
Anyone hear about E-bola lately? E-czar did a good job of hush hush. Now we need a Z-czar. Nothing to see-czar here folks!
What I worry about are the grandkids–what are we leaving them? I’ve looked after myself and kids if the balloon (financial) goes up. I believe any number of black swan events could happen esp. in the US. If they occure watch out and pray all preps are in order.
Mosquito viruses and just plain itchy bites can be avoided by certain ways of washing clothes and I can’t recall exactly but I think regular old dryer sheets in a pocket near your face was one.
Vaccines are dangerous. Having been linked to autism, Australia is giving exemptions to high IQ children to spare them the brain damage.
Show us the proof behind your statement.
here is the Aust governments link on child vaccinations.
Nothing about high IQ children been afforded exemptions.
I see people set up tables along the road selling their flowers, fruits, berries, honey.
Don’t wait for the economy to implode. Encourage your neighbors to grow food and make items and start your own mini farmers market and little roadside stands. If the economy implodes, it will be these industrious individuals who will be the entrepial spirit of a new civilization emerging from the ashes of the old extinct civilization.
MORE FROM GUN CONTROL HAPPY EUROPE TODAY
More from the religion of (human) pieces and the world of gun control happy Europe (as if gun control happy Chicago didn’t already clue in anyone who can fog a mirror): Six dead in Munich Islamist shooting, in gun control happy Germany today. http://www.breitbart.com/london/2016/07/22/shots-fired-munich-shopping-mall/ Police still confirming who did it, but one message reported at this link included “… everything hurting infidels make us happy.” By that, I assume it wasn’t the Amish or Greek Orthodox church members doing this.
Same link above, one dead, three injured in separate stabbing incident. We MUST ban butterknives now – it’s for the children! And, oh yes – we need to ban swimming pools (and maybe water, too) – see below from the CDC website. After all, this too is “for the children.”
Extra credit: From the CDC at http://www.cdc.gov/homeandrecreationalsafety/water-safety/waterinjuries-factsheet.html
– From 2005-2014, there were an average of 3,536 fatal unintentional drownings (non-boating related) annually in the United States — about ten deaths per day.1 An additional 332 people died each year from drowning in boating-related incidents.2 About one in five people who die from drowning are children 14 and younger.1 For every child who dies from drowning, another five receive emergency department care for nonfatal submersion injuries.1
“Socialism (lit. ‘gouvernement’ in Fr.) is the great fiction, whereby everybody endeavours to live off of everybody else.”
– Frederic Bastiat, 1801-1850
And, why yes, you are correct! Leftists STILL have ZERO clue as to why this has never worked, CAN never work, and will never work. But that won’t stop them from destroying YOUR finances with their idiocy
To us unsavvy investors, buying negative yield paper looks “crazy”.
However, usually investors that buy these bonds will not hold them to maturity. They are betting that the yields will drop even lower and the value of their paper rises. They then sell the bonds and make a profit.
They are actually betting on deflation to get worse.
Welcome to the world of financial engineering.
Bought a pressure canner tonight for only $84.99. Things are just too strange with the election this year. Business is slow and we need to be able to have food stored that we know is fresh, healthy and free of msg and other additives in case we can’t afford to go grocery shopping.
Figurine if nothing happens we can still can all winter and plan on getting a bunch of turkeys this Thanksgiving season to cook up and make into turkey soup. Not to mention a few hams for ham and potato soup also!
Buying ground beef in bulk when on sale to make homemade chili from also. Anything to save, save, save.
Looking to cut back on all utilities and am even considering cutting the cable it is $107 a month for tv and internet.
I Bring you a message of hope!
All you say is correct. It will implode. Financial systems will collapse. But, I bring you a message of hope: If you were able to survive in this crooked and negative world, you will be able to survive in the one after things change.
Humans always view change as a bad thing. What we have now is bad. Well, its easy to survive, but it is not fulfilling. Imagine being hungry but knowing that you’ll make it the next day. Your boss won’t be barking at you. Stress levels will cease to exist.
Oh, it won’t happen overnight. There will be ensuing chaos and some hunger and some disease, but, in the end, we’ll pick up and move on. Its just that the bullies that bullie now will be beggars and the beggars now will be kings.
Like I read a meme a while back. It showed Daryl with his crossbow. It said, “Every body laughs at the redneck…” “…until the zombie apocalypse.”
Roles will change. Remember that term “comfort zone”? Yeah, forget it. It is about to disappear FOREVER! Stop dreading it! Embrace it! Make it an adventure!
I know, I make it sound like fun and games, but, its only not fun and games if you keep whining about it.
I’m ready! Pull that last stick! Let this tower collapse and lets get this party started.
…which reminds me: If primitive life was so terrible, why do we commemorate it on holidays with camping and roasting meat over campfires? The Great Adventure is about to start! I know you’re nervous and I know you worry, but, don’t. Just take it as it comes, one step at a time.
With Trump as president, he’ll lessen the hurt but he will not be able to stop the collapse. There are things that are coming that you will not like. All one has to do is change their mind. Decide you like it and decide that its “fun”.
Here is a little excercise: Figure out a food you don’t like. Buy some and eat it. Just because.
This world was made to experience. Go experience stuff. Stuff you like. Stuff you don’t like.
For some stupid reason most people are entitled and seem to think they should never had to do what they don’t like to do. I think you will find it satisfying in ways that I cannot explain.
Chin up and be safe! Get up every day and remind yourself that it is a good day because you were able to get up!
Love to all!
Agreed the only constant is change. If you can position you and yours to where other people , things & conditions do not negatively affect your well being you will do just fine. How you accomplish that is by being self reliant and having Know How. Myself Im hoping tolive long enough to see how it turns out. Im planning on embracing the new adventure.
Good points. The future will be DIFFERENT not necessarily worse. Keep stacking and packing.
Hey TCC – nice post and I hate to put a fly in your ointment, but – we have psycopathic neocons in DC trying to start WW3 with the Russians and Chinese and these fucktards appear to think that nuclear war is survivable. I have think I have enough food stored to survive a nuclear winter but a second pressure caner is starting to look pretty good right now that my garden is needing a lot of harvesting.
As with thoughts on prepping and getting by I personally ascribe to the saying ” If you can’t hold it in your hand you don’t have it”. Anything in this day and age that is written on paper is just a pipe dream that can be washed away in seconds. In fact even supposed hard promises written and agreed upon mean nothing for instance medical promises for retirees can be gone at the stroke of a pen or the actions of an unelected so called public servant. The whole thing about what you own is smoking mirrors in the mind that can be snatched from you in seconds. Anyone remember the last great snatch the guy that had a million or more on paper but lost it all in seconds and had to go back to work after being retired. Just like medical insurance you pay and pay and then when you need it some little prick somewhere wanting to show his bosses how he can save money will fuck you over in a heartbeat and there is nothing you can do about it. So for what is to come make sure you truly prepare in all aspects and that you can touch what you need and you will no way have to find yourself going but but but I had that and they promised.
After watching the convention trump would have you believing the country has gone to shit. I don’t see it that way. People said Obummer would ruin this country. Well we are still here. If hitlery becomes pres nothing will change we will continue with status quo. I never liked trump or hill. But I’m gonna listen to what she says at the demon convention. I will choose greater of the two evils. Crazy you say well I’m sick of this up and down yo yo. I call bullshit on all the fear mongering. People have no balls nothing is gonna happen. The gigs up folks. Politics is a psyop. The reason you hear about all this killing is cause the media is in your face 24/7. The fears over gun control are bullshit. They cannot get all the guns ever. People will hide them people with machine shops will make them they are easily made and gotten. Don’t fall for the bullshit and run out and buy a bunch of crap thinking it’s finished. It’s not prepping it’s common sense having some stuff on hand so you can look after yourself. It’s not a new phenomenon. You are a football to the candidates they are trying to keep your vote in their control. They will lie blow smoke up your ass what ever it takes but in the end they have their agenda and their views will evolve to reflect this. George carlin said it best. You are in survival mode daily trying to make $ to keep a roof and a vehicle on the road pay your medical bills feed your family. Just because something happens under a presidents administration doesn’t mean he had anything to do with it. It’s all bullshit enjoy your life and build upon your independence. Leave the bickering to politicians. Just because your a white man union workers vote doesn’t mean the win is in the bag for trump. How the hell will he make my corporate multi million dollar employer pay me better. Not gonna happen ever. They will never pay so well you can save up and get out of there in 10 yrs. he’s not gonna stop pension funds from being raided. I don’t even get mad anymore that the gov rapes me in taxes to provide for useless eaters. It’s just part of doing business. If we don’t help the useless they will become unruly and jeopardize the society experiment we are all part of. Your better off being irresponsible and behaving like a child. Your power has been taken away and you being micro managed on all levels. The only thing you have is your back and your balls don’t break either one. Being polite is phony bullshit you really wanna say fuck you asshole to people. I tell people to fuck themselves all the time. They don’t pay my bills.
I’m thinking about cashing out money I put in a roll over fund from a work 401k. It’s not much, but I think I want it out with all of the uncertainty plus what hitlery will do. I’d like to use most of it for preps, the rest for silver and lead. No reason to put extra $ into the house especially if the shtf.
Can anyone tell me how much I’ll lose to taxes? I’ve been told by the financial institution not to do this because it is a bad idea and told me I’d lose 50%. Is this true? I mean wtf this was money I invested and I’m gonna get taxed again!!!!
Cashing out from an IRA, means you get a penalty of 10% I believe and then the next step is when you file your taxes, the money you removed/premature distribution is taxable (the amount that you withdrew) example
withdrew 1,000 you get a 10% penalty right off the bat.
file taxes as 1,000 income getting tax say at 15% which represent your tax rate. OF course I don’t know what your tax rate is but hopefully you get the jist of my explanation.
100 penalty and if you pay a tax rate of 15% that is equal to $150…so in the end $100 + $150 = what you would be paying which equates to %25 penalty/taxes.