Friday, December 6, 2019

Bubbles Don't last Forever -- Every Bubble Eventually Finds Its Pin








When the price of an asset rises faster than can be explained by economic fundamentals, it creates a bubble. Massive Bubble! One of the major bubbles in history is finally set to pop. Trillions and trillions were printed up, and many times that amount was leveraged and loaned throughout the banking and speculative finance universes. The Real Estate and Stock Market are overvalued by 70%. Global corporate debt is now over $29 trillion, with nearly one-quarter maturing within five years. The world is awash with credit. $250 trillion in debt. Four times that amount in unfunded liabilities. And a mind-bogglingly massive amount of tangled financial derivatives roughly the same size as both those debts and liabilities put together. Whatever their cause, Bubbles do not last forever and often end not with a pop but with a crash. Welcome to The Atlantis Report. Financial bubbles have popped up throughout modern history—from Dutch tulip mania to the more recent subprime lending boom. Famous bubbles include tulip mania in Holland during the 17th century when the prices of tulips reached unheard-of levels and the South Sea Bubble in Britain a century later. Here speculators, which included a vast array of citizens including parliamentarians and the King's mistress, drove up the share price of the South Sea Trading Company with disastrous results. There have been many others since, including the dot-com bubble in internet company shares that burst in 2000 and the bubble in house prices, which, when it burst in 2007, helped to trigger the recent global economic downturn. Economists argue whether bubbles are caused by the irrational behavior of crowds, aided in part by savvy speculators, or are the result of misinformed consumers who assume the inflated prices are sensible. Whatever their cause, bubbles do not last forever and often end not with a pop but with a crash. The corrupt people who manipulate the markets are the same ones who created the 'fiat' currency. They do that a lot to keep the money flowing to the worthless fiat currency and corrupt "markets" -- without the Fed manipulation Gold would be trading now at least at 4,800. Just about everything is rigged by the US government . Truth and morality have been mostly banished from America and the entire western world. The powers of financial capitalism had a far-reaching aim, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole. This system was to be controlled in a feudalist fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent meetings and conferences. Those following financial events or with active money in the game see rising fear but for the masses, the middle class, with little interest in stock, bond or gold prices, anger will focus their point of view. The anger from declining opportunity that will eventually turn to rage as financial foundations crumble. The immediate future therefore might be about to change radically for those holding assets and living off the central banking system but for the rest of the voting population nothing much will change for years, except perhaps the rate of change itself. The same lack of opportunity will prevail or worsen, salaries will continue to stagnate or decline, worthwhile jobs will become fewer and housing prices will drop but still be out of reach. Food and retail choices in general will become more difficult. Homelessness will accelerate and destitution will spread like disease through all of the classes, Meanwhile the multinationals will continue to exist in some form or other so that enough people will keep their jobs, hold on to their mortgages, their debt and some semblance of family security. In other words the errant global financial system will continue to tick over. Just as it did during the Great Depression. The real sea-change will happen in the political system as representative parties become more and more extreme. Though ultimately useless each new government will fail to turn things around until finally the inherent corruptions blocking justice are expunged; at the point when some form of social revolution finally develops sufficient desperation, energy and order to overthrow the imperfect ideologies that drive man’s religious belief in concepts like democracy. The real end to this socio-financial disaster is therefore decades away, the true misery just beginning. Recovery only comes when people finally realize that governments, like all wielders of power, ultimately corrupt no matter what their constitution. In the meantime, we should hunker down because there will be nowhere to hide in the century it will take to redefine justice and social order. The fact is we have much more debt now than ever before. If we have a robust financial disruption, default will rise in importance and move front and center. In the last decade, debt has soared across the globe. Of great concern should be the growth in non-recourse loans as well as unsecured personal loans. These are particularly dangerous. Many investors have become seduced into thinking the backing of government adds tremendous validity to both the explicit and implied warranty that come with government-backed instruments. History, however, has shown public debt can also be mishandled with creditors not getting paid or being paid with a less valuable currency eroded by inflation. The world has never had as much debt as it has right now, nearly 250 trillion dollars. Aaron Korloff of the Wall Street Journal wrote earlier this year. The world's combined debts held by governments consumers and businesses has risen to more than 300 percent of global gross domestic product. The paper explained there's nothing magical about that number, but it was notably higher than the level in 2007 before the financial crisis began when it was about 260 percent. Since then, many consumers have cut down on their debt, but governments and companies outside of the financial sector have taken on more. Some of the riskiest loans Korloff wrote seemed to include corporate debt in China. Foreign currency borrowing in emerging markets and riskier corporate loans in the United States. If everyone were able to repay all debts (which is impossible because of interest charges). Then the US Dollar would cease to exist, because it is only an IOU from the Fed that we pass around among ourselves as though it has value. Even though what is owed to us by the Federal Reserve is not specified regardless of how many zeros are printed on those green pieces of worthless paper that we stupidly view as "Money." The Global Financial DEBT BOMB has reached $188 trillion, according to the International Monetary Fund. The IMF has put out a statement saying that debt is threatening global economic stability . In countries with advanced economies, public debt is at levels not seen since World War Two. While emerging markets public debt is at levels not observed since the 1980s . In the United States, the public debt is at 23 trillion dollars .why is the debt so high everywhere . Free money seems ironic . But the worst economies get, the more central banks reduce interest rates.The more they lower interest rates, the more we borrow; the more big companies borrow. Eventually, that bubble almost by the definition has to burst. The Federal Reserve debt system is fulfilling its purpose - steal from the people. The banks create the debt, profit on its issuance, and the taxpayer owes back principle and interest to the banks who conjured the money out of thin air. Works for them. The global debt load has surged to a new all-time record equivalent to more than double the world’s economic output. IMF chief Kristalina Georgieva warned Thursday. While private-sector borrowing accounts for the vast majority of the total. The rise puts governments and individuals at risk if the economy slows, she said. “Global debt — both public and private — has reached an all-time high of $188 trillion. This amounts to about 230 percent of world output,” Georgieva said in a speech to open a two-day conference on debt. The total land surface area of Earth is about 57,308,738 square miles, of which about 33% is desert, and about 24% is mountainous. Subtracting this uninhabitable 57% (32,665,981 square miles) from the total land area leaves 24,642,757 square miles or 15.77 billion acres of habitable land. That's about $12,000 of debt owed for each habitable acre of land. The planet earth does not have the collateral to borrow any more money, hence the effort to colonize Mars. Apparently, there are different levels of greed. We have now entered the provenance of ludicrous greed. If everyone were able to repay all debts (which is impossible because of interest charges). Then the US Dollar would cease to exist, because it is only an IOU from the Fed that we pass around among ourselves as though it has value. Even though what is owed to us by the Federal Reserve is not specified regardless of how many zeros are printed on those green pieces of worthless paper that we stupidly view as "Money." Currency backed by debt. Should've known our money was going to become worthless when the penny stopped being made of copper. The FED's coin and paper money are a rip off to steal our valuables, and the banks succeeded. That's why they own EVERYTHING now It's going to end badly when they stop buying the government bonds, hello big crash and burn. The funny thing about it is the FED will have to buy them all. The Fed will buy them all and hold them the off-balance sheet. No more mark-to-market, so all fantasy economics. In the last decade, debt has soared across the globe. Of great concern should be the growth in non-recourse loans as well as unsecured personal loans. These are particularly dangerous. Many investors have become seduced into thinking the backing of government adds tremendous validity to both the explicit and implied warranty that come with government-backed instruments. History, however, has shown public debt can also be mishandled with creditors not getting paid or being paid with a less valuable currency eroded by inflation. Yes, even government bondholders will suffer. Bubbles are Crowd Psychology states based on a stampede mentality, and it is difficult to determine what will cause a stampede or when. Stampedes will occur for no real apparent or credible cause. The work (exertion of energy) that the money is supposed to represent doesn't exist. Since the monetary value has been watered down so much. The money doesn't exist - so the work that the money represents doesn't actually exist when people wake up to this fact. The whole thing is going to collapse. The money (or the work that the money represents) doesn't exist. When the bubble pops, the people will be the ones to suffer. So it's the people that are owed the money. The people are always at the bottom of the food chain! It is an imagery construct set up to screw the people just like so many other things accepted as usual. Just remember, if something doesn't have value in and of itself, it doesn't have any value. The dollar's value is solely based upon the value people assign to it. The human being has value because the human can exert energy to produce something. Bubbles generally end this way, with everyone just giving up on self-control and grabbing for one last piece of easy money. Currently, enough new money must be injected daily really to keep the economy from locking up; and Central Banks are in a position to do this indefinitely though if the frail humans who are in authority will comply or not is also unknown. The debt bubble will pop when the number size limit of a computer's memory is reached. Floating Point numbers can literally be astronomical in size. Politicians are drooling over the idea of taxing manufacturing robots now. They never sleep while generating revenues and don't need welfare when they lose their jobs. Nothing good ever came from the marketing, buying, or selling of DEBT, and nothing good ever will. When a bankster, government, or corporate entity sells or buys debt, it's called "trading." If you or I try to sell or buy debt privately, it's called "racketeering." The collateralization of debt is going to be the final coffin nail when this completely fucked system buries itself once and for all. The million-dollar question is. Where will the black swan come out to get the party started? Buckle up folks because it might get a tad bumpy. Huge jobs beat, to be followed by huge revision downward next month. Ends with Armageddon. This was The Atlantis Report. Please Like. Share. And Subscribe. Thank you.




















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