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Markets and Money
The jig is really up. The big bad bear market is already underway, even if it rallies in January. The debt bubble engineered by the Federal Reserve is blowing up and thundering through the system. The epic market instability of December 2018 on the heels of persistent Fed rate hikes points to major credit problems and especially an inability to roll over old debt into new loans at higher interest rates — in particular loans to zombie enterprises that need to borrow to keep paying interest on previous loans (a lot of that among the shale oil companies). The US government can’t take higher interest rates either. It’s already paying about as much in annual interest on US debt as we pay for our war machine. There are only two ways out, both of them nasty. Either suck up debt defaults, which will induce an impoverishing disappearance of money; or provoke high inflation, by injecting more Central Bank QE “money” into the system, which can destroy the value of money. Inflation is typically the choice of governments because it reduces the face value of debts while it allows government to pretend that it is taking action. In the end, you may have plenty of worthless money, which is no different from having not enough money that retains value. The latter was the main feature of the Great Depression.
An economy built on fiat currency and public and private debt is unsustainable. Eventually the bubbles will burst. The most likely outcome will be the rejection of the dollar’s world reserve currency status due to government debt and the Federal Reserve’s monetization of debt. When the bubbles pop, the result will be an economic crisis that will likely dwarf the Great Depression.
The fall of the dollar and the accompanying economic downturn will make it impossible for the government to continue running up huge debts to finance a massive welfare-warfare state. Thus, Congress will be forced to raise taxes and cut benefits. Cowardly politicians will likely outsource the job of raising taxes and cutting benefits to the Federal Reserve. This will cause a dramatic increase in the most insidious of taxes: the inflation tax.
As the Federal Reserve erodes the value of the dollar, thus reducing the value of both earned paychecks and government-provided welfare benefits, a large number of Americans who believe they are entitled to economic security will react by engaging in acts of violence. Politicians will use this violence to further crack down on civil liberties. The resulting economic and civil unrest will further the growth of authoritarian political movements.
originally posted by: Metallicus
It would be nice if the Fed would give Trump the same treatment that Obama had for his eight years in office. Having zero percent Fed Funds Rate for eight years was nice and now they are hitting Trumps economy every month or so.
This is just more of the Elites manipulating all of us.
Throughout the 1920s, the U.S. economy expanded rapidly, and the nation’s total wealth more than doubled between 1920 and 1929, a period dubbed “the Roaring Twenties.”
By then, production had already declined and unemployment had risen, leaving stock prices much higher than their actual value
Additionally, wages at that time were low, consumer debt was proliferating
On October 24, 1929, as nervous investors began selling overpriced shares en masse, the stock market crash that some had feared happened at last. A record 12.9 million shares were traded that day, known as “Black Thursday.”
The average stock is overvalued somewhere between tremendously and enormously
Total consumer debt is on track to reach $4 trillion by the end of 2018, according to an analysis of Federal Reserve data. That’s an amount with twelve zeros. Collectively, Americans owe 26 percent of their income to this debt and spend 10 percent of their individual monthly income on non-mortgage debts like car loans, credit card accounts and student or personal loans.
For most U.S. workers, real wages have barely budged in decades
Globally, the Uranus transit of Taurus may result in innovations and breakthroughs in the handling of our most important asset — planet Earth, our home. Conversations about climate change, green energy, off-grid living, and Earth-friendly diets may become an important component of the cultural zeitgeist. Some astrologers believe that Uranus in Taurus will disrupt financial markets globally, enabling the further rise of alternative currencies such as bitcoin.
But hey, let’s not forget that Uranus, being the planet of rebellion and sudden change, might mean it showing its cleverness and deviance in the most unpredictable, unexpected ways.
What was the Securities Exchange Act Of 1934 The Securities Exchange Act of 1934 (SEA) was created to govern securities transactions on the secondary market, after issue, ensuring greater financial transparency and accuracy and less fraud or manipulation. The SEA authorized the formation of the Securities Exchange Commission (SEC), the regulatory arm of the SEA. The SEC has the power to oversee securities, such as stocks, bonds and over-the-counter securities, markets and the conduct of financial professionals including brokers, dealers and investment advisors, and monitor the financial reports that publicly traded companies are required to disclose.
originally posted by: ZornsLemma
The world economy is up for some rough times. Politicians of both parties should be seeking solutions fast to fix it. But they don't. They keep bickering about things that really don't matter. The democrats keep pushing their silly Russia investigation. The republicans (or Trump rather) don't want a budget without funding for the border wall. Those things are so stupid that it's not even funny, because very soon we will get a crisis that will dwarf the great depression. The time to do something about it is now.