Sunday, January 12, 2020

Brexit & China's Debt will burst The Global Financial Bubble in 2020












Central banks around the world are eviscerating /eliminating the middle class by bringing up energy prices (and prices on other necessities), by wars, by inflating their housing costs and their education costs, but the richest among us can own stocks and bonds and real estate and become wealthier and wealthier. The economic structure, the foundation underneath the global economy, is predicated and based upon the sand. The Fed has privatized banking risk with repo alone $11 trillion. If they did not bail out the Repo market and banks this is what would have happened . 1). Banks would stay out of repo and sit on their cash if the FED didn't bail repo out. And 2). the overnight interest rate would be 25%. Recession is how it all ends. That triggers mass unemployment. That triggers house price implosion. That triggers consumers to stop spending — debt default. The Fed prints more cash to bail out the banks again. $100 trillion. Then Dee der helicopter money and a cup of coffee will be $250. And who is picking up junk bonds? Pension funds. Tesla is valued higher than Ford and GM combined. The stock market is massively overvalued. The money pension funds payout to retires in years to come. That money will have very watered down PURCHASING POWER. If you are invested in Gold Silver or Bitcoin, the end game will be very, very different. Brexit and the chinese debt bubble are the next bucket of ice-cold water thrown over the stock markets. The stock market is the inflation sink for quantitative easing — deflationary depression in real stuff and actual earnings in the real economy. The fed will print 30 trillion-plus in 2020 alone.....easily! That's 10 trillion more than they did at the height of the collapse in 2009! Thirty trillion add 15% inflation= 4.5 trillion = $34.5 trillion they'll need to print this year just to get through the year. And Trump just gave One Trillion Dollars To Wall Street in Bail Outs on Christmas. Plus 2.5 Trillion To The Military. Wow, with that We could have paved all Major Cities in The USA with Gold or Simply eradicate Poverty all over the World. FED is backed into a corner; all they know is PUMP because it's the only stick they have or understand. So it's going to explode, I've taken all my cash out of the banking system as it's going to disappear very soon. Welcome to The Atlantis Report. You own an asset in a bubble that can buy a nice car but then only buys a cup of tea to calm your nerves after the bubble pops, that's the brutality of a bubble. Bubbles are like balloons. They burst in one of three ways. Either via deliberate pricking, inattentive float towards sharp objects, or via over-inflation. So far, the balloon is not being pricked, it's tethered, and thus, not liable to dangerous wanderings, but it seems like it's being pumped up. Now, we can't reach a definitive conclusion yet, on what the Fed is doing with the air pump. Perhaps they're attempting to discern the maximum elasticity of the balloon (a perilous undertaking), or maybe they want to pump it to explosion. We can't really say just yet, but we'd simply aver that once maximum elasticity is determined, assuming the balloon doesn't burst in the determination, then the only prudent gambit, is energetic and periodic air release, to restore the balloon to a state whereby, only determined pricking can burst it. Concisely, don't take air pumping too far.. Don't pump beyond elasticity. Else, the balloon will explode uncontrollably. And on that note, we'll say no more about financial calibration. Until winter of fallow ends. A watched pot always boils. It just seems like it takes longer, although the actual time to boil remains the same each and every time provided the inputs are consistent. The biggest fallacy out there is GDP growth. If you add in the hidden costs plus the reported ones, then the US is actually going further into debt by at least 2.5 trillion per year. That is a negative 11 percent growth. Add in the 1.5 percent reported GDP growth and you end up with an economy nosediving at 9.5 percent a year....this is not recessionary...it is depressionary. The bumbling idiots on tv and in the media who claim to be journalists but are nothing more than government-sponsored teleprompt readers, along with the fed, the government, and your favorite presidents, from both Democrats and Republicans, will have you believe this is the greatest economy ever. Call me crazy, but if I ran a million dollar a year business, yet my income was negative 100k each and every year---does that make me the most successful businessman in the world? Americans are apathetic morons for the most part, and they believe whatever the state-sponsored media, whether online, tv, or radio leads them to believe. The stupidity and gullibility of humans never cease to amaze me. Today, amidst the several factors that are alarming international investors, from falling oil prices to the specter of a global economic recession and deflation in Europe, one of the most critical, and less well-known aspect is China's debt bubble. As of last year, the national debt of China, which is the total amount of money owed by the Chinese Government and all state organizations and government branches. It stands at roughly US$ 5.2 trillion, which is around 64% of GDP. This figure, though, does not include local government financing vehicles. So we should multiply it by at least 3.5 for this figure to be right, then consider adding value for China's shadow banking. Local debt being the biggest problem in China. In July 2019, the Institute of International Finance reported that in the first quarter of 2019, China's total stock of corporate, household and government debt rose sharply to over US$ 40 trillion and is now exceeding 303% of gross domestic product GDP, from 297% in the same period a year earlier, the IIF wrote in a report. China's debt now accounts for around 15% of world global debt. And this is just the tip of the iceberg for what may becoming. The idea that China is somehow a frugal saving nation that doesn't have a lot of debt is, at this point, bluntly wrong. As of today, China is very much past the tipping point where the debt simply can no longer be ignored. China's Debt to GDP Ratio Is Growing as Its economy loses steam. For the past few years, China has been on a borrowing binge. The world's second-biggest economy, which is slowing, is past a point where it cannot ignore its enormous debt anymore. The cost of servicing the debt distracts from almost everything else. After years of rapid expansion, China is abiding a slowing economy, and because of this, China recently made several major monetary policy easing announcements in 2019. The debt levels in China rapidly shot up a few years ago as its banks extended record amounts of credit to drive growth. It all started with the credit bubble, which began in earnest in 2009. Back then, China was trying to plug up the holes left by the U.S. and the European financial crisis. China is export-dependent. When its two biggest clients fell because of its own credit bubble, China did what all economies do in crisis -- stimulate, stimulate, and stimulate some more. Today China has a debt to GDP ratio of a whopping 300%. First, let's make a little comparison. The U.S. total debt to GDP, which includes household and corporate debt, is 331.7 %. Since the first quarter of 2018, the total debt in the United States of America has risen by 2.9 trillion U.S. dollars, bringing the entire debt mountain to an all-time high of over 69 trillion U.S. dollars in the first quarter of 2019. And there is a whole host of other hidden debt. China had kick-started stimulus this year as the economy is slowing down. Just like in the U.S., The central bank of china is currently running its mini-QE program. China is still a top-down, centralized system. So if state-run banks are handing out money - You just take it. Many Chinese entrepreneurs are used to borrow as much as possible, even if the core business doesn't need it. Such "entrepreneurs" are system exploiters who should receive no protection whatsoever. Last year more than 18,000 companies filed bankruptcy petitions in Chinese courts, and that is about twice as much as the past year. In China, Bankruptcy had previously been an unlikely action to take. Bond defaults likewise hit record numbers last year at 125, which was five times the number in 2015. So far, in 2019, defaults are running at an even faster pace. So they have basically backed themselves into a corner. Nobody has any real clue how much debt actually exists coming out of China. Rampant shadow-banking, epic money-laundering, and an absolutely insane amount of money printing. Is the Fed printing? Of course, they are. The Bank of Japan, The European Central Bank? Yes, and yes. But The People's Bank of China Makes all of them look like rank amateurs with fiduciary guilt-complex compared to what the communist party run central bank in China is getting away with. The People's Bank of China simply prints its way out of it. In which case, we will finally end up with a hyper-inflationary crack-up. It seems this is the only logical solution. Currencies won't revalue because of market mechanisms. The market is broken. Our institutions are broken. Look around. Lolita Express, Live Organ Harvesting in China, gangs of pedophile cannibals running the global economy, whatever terrible heinous abuses we imagined. It's all much, much, worse. So, they will print and print and print. Because that's the only way out. They will keep their fingers on the scales. You won't know what side is up, but you better believe one thing, they are printing like crazy, and it isn't going to go on forever. And when it breaks, it will be the biggest deluge since Noah. The Chinese economy is definitely slowing down, and there are a lot of headwinds; plenty of companies are leaving China as China is becoming a much harder investment case for several reasons. The downward pressure is growing due to the global economic growth, with decreasing trade and investment, increasing protectionism as well as other headwinds facing the domestic economy. This slow-motion train wreck is gathering speed. It's 1929 on steroids in China. Meanwhile, the Fed is pumping $500 billion liquidity, and the actual Government is spending more than two hundred billion more per month in 2020, a 12% year-on-year increase. This is an infinite Ponzi Finance in a financial perpetual motion machine. Modern Monetary Theory will inevitably morph the defective parts of the reality-defying machine and make them work. Utopia nowhere, no place, here we come! How anyone is buying this fake trade deal and that China will ever buy more than a token gesture of our Agricultural products is beyond comprehension. But none of that matters here. What matters is the NARRATIVE. And as long as the stupid sheeple but the NARRATIVE, that's all that matters. Very few are prepared for what's coming. There are now riots in Brazil and Argentina because of increased food prices. That's a fast reaction to the food exports to China. If China buys more Agricultural products, food inflation will kick in. Should $50 billion in Agricultural purchases in a year or two (depending on what swamp pimp you are listening to) mean $5 Trillion in Market Cap. I've tried to point out to all those deluded into thinking that better corporate deals for American globalist corporations in China do nothing for them, but it doesn't sink in. The whole trade deal is comical. $25 billion a year in Agricultural purchases in a $23 Trillion economy is nothing. The FED will purchase $60 billion a month in government debt for the foreseeable future. Perhaps that's why these clowns pretend that a trade deal actually means something. Kind of like the impeachment act. All shows to distract from what's really happening. More Centralized Confiscation and Consolidation through Counterfeiting. Bottom line: This whole thing is going to blow up at some point. Trade Bitcoin! And also, keep investing in gold and silver! This was The Atlantis Report. Please Like. Share. And Subscribe. Thank You.









The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative journalists , researchers , Whistelblowers , truthers and many more

No comments:

Post a Comment

Blog Archive

“Control oil and you control nations; control food and you control the people.” Henry Kissinger


once a standing army is established, in any country, the people lose their liberty.”
George Mason

“Military men are dumb, stupid animals to be used as pawns for foreign policy.”
Henry Kissinger

“If you are an ordinary person, then you can prepare yourself for war by moving to the countryside and building a farm, but you must take guns with you, as the hordes of starving will be roaming. Also, even though the elite will have their safe havens and specialist shelters, they must be just as careful during the war as the ordinary civilians, because their shelters can still be compromised.”
Henry Kissinger

"We don't let them have ideas. Why would we let them have guns?" Joseph Stalin

The people who cast the votes decide nothing. The people who count the votes decide everything.
Joseph Stalin

Governments keep a lot of secrets from their people . . .
Why aren't the people in return allowed to keep secrets
from the government?

PHILIP ZIMMERMAN, DER SPIEGEL

“Some call it Communism, I call it Judaism.”

Rabbi Stephen Weiss

“Anti-Communism is Anti-Semitism.”
Jewish Voice, July - August 1941

Taxing People is Punishing Success
UNKNOWN

There's the rich, the poor, and the tax payers...also known as the middle class. Robert Kiyosaki

The Tax you pay is The Bill for Staying Stupid

Stefan Molyneux


“The modern banking system manufactures money out of nothing. The process is, perhaps, the most astounding piece of sleight of hand that was ever invented. Banks can in fact inflate, mint and un-mint the modern ledger-entry currency.” Major L L B Angus

The few who understand the system will either be so interested in its profits or so dependent on its favours that there will be no opposition from that class, while on the other hand, the great body of the people mentally incapable of comprehending the tremendous advantage that capital derives from the system will bear its burdens without complaint and perhaps without even suspecting that the system is inimical to their interests.
The Rothschild Bros

"Debts must be collected, bonds and mortgages must be foreclosed as rapidly as possible. When, through a process of law, the common people lose their homes they will become more docile and more easily governed through the influence of the strong arm of government, applied by a central power of wealth under control of leading financiers.

This truth is well known among our principal men now engaged in forming an imperialism of Capital to govern the world.

By dividing the voters through the political party system, we can get them to expend their energies in fighting over questions of no importance. Thus by discreet action we can secure for ourselves what has been so well planned and so successfully accomplished."

USA Banker's Magazine, August 25 1924


Cutting Tax Rates stimulates Economic Growth creates more Profit , more Jobs and therefore The Treasury ends up with more Tax Money
UNKNOWN

Taxation is legalized Theft
UNKNOWN

"The Objective of the Bank is not the control of a conflict , it's the control of the debt that a conflict produces . The real value of a conflict , the true value is in the debt that it creates . You control the debt , you control everything . this is THE VERY ESSENCE OF THE BANKING INDUSTRY , to make us all , whether we be nations or individuals , SLAVES TO DEBT " An UNKNOWN Banker

Patriotism is the last refuge... to which the scoundrel clings .... Steal a little and they throw you in jail ..steal a lot and they make you king ....

Bob Dylan


"Corporations are stealing billions in tax breaks, while the confused, screwed citizenry turn on each other. International corporations have no national allegiance, they care only for profit." Robert Reich


There is NO political answer to a spiritual problem!
Steve Quayle


Po
litical Correctness is a Political Stand Point that does not allow Political Opposition , This is actually The Definition of Dictatorship
Gilad Atzmon

The modern definition of racist is someone who is winning an argument with a liberal
Peter Brimelow


When People lose everything and have nothing left to lose , They Lose It !

GERALD CELENTE

Your Greatest Teacher is Your Last Mistake
DAVID ICKE

The one who Controls the Education System , Controls Perception
UNKNOWN

"The world will not be destroyed by those who do evil, but by those who watch them without doing anything."

Albert Einstein

In The Left Nothing is Right & in The Right nothing is Left
UNKNOWN


No man escapes when freedom fails; The best men rot in filthy jails. And those that cried 'Appease! Appease!' Are hanged by those they tried to please
UNKNOWN

Freedom is not Free
UNKNOWN

Don't Steal The Government Hates The Competition

Ron Paul

"Buy The Rumor , Sell The Fact " Peter Schiff


You can love your Country and not your Government

Jesse Ventura


" The Government Works for ME , I do not answer to them They Answer to ME "
Glenn Beck

"Tyranny will Come to Your Door in a Uniform "
Alex Jones

"The Government is not The Solution to our Problems , The Government is The Problem "

Ronald Reagan


"The price good men pay for indifference to public affairs is to be ruled by evil men." Plato


The world is a tragedy to those that feel, and a comedy to those that think...Beppe Grillo

"The people should not fear the government for it is the government who should fear the people" UNKNOWN

"If You are looking for solutions to the world's problems , look in the Mirror , You Are The Solution , You have the power as a human being on this planet " UNKNOWN

"They don't control us , We empower them " UNKNOWN

"Serial Killers do on a Small Scale What Governments do on a large one..."

Serial Killer Richard Ramirez

There is a Class War going on in America, & unfortunately, my class is winning." Warren Buffet

"When the people fear their government, there is tyranny; when the government fears the people, there is liberty."

Thomas Jefferson

"College is a waste of Money"
Albert Einstein

Schools manufacture people who think that they're smart but they're not.
Robert Kiyosaki

Education is what you learn after you leave School
Robert Kiyosaki

" ‏Schools were designed to create employees for the big corporations."
Robert Kiyosaki


"If a law is unjust, a man is not only right to disobey, he is obligated to do so" Thomas Jefferson

Dissent is the highest form of patriotism
Thomas Jefferson

“True education makes you feel stupid. It makes you realize you have so much more to learn.” Robert Kiyosaki


"One day your life will flash before your eyes. Make sure it's worth watching." - Gerard Way

"Aspire not to have More but to be More "
UNKNOWN

The losers in life think they have all the answers. They can’t learn because they’re too busy telling everyone what they know.
Robert T. Kiyosaki ‏

"Failure is simply the opportunity to begin again. -This time more intelligently." Henry Ford

What You Own Owns You
UNKNOWN

If you expect the government to solve your problems, you have a problem. Robert Kiyosaki

"Those who give up their liberty for more security neither deserve liberty nor security." Benjamin Franklin

"None are more hopelessly enslaved than those who falsely believe they are free.” -
Johann Wolfgang von Goethe

"Always trust someone who is seeking the truth , never trust someone who found it" Jordan Maxwell

Be The Change you want to see in The World
UNKNOWN

Failure inspires winners but defeats losers
Robert Kiyosaki ‏

“If you are planning for a year, sow rice; if you are planning for a decade, plant trees; if you are planning for a lifetime, educate people” A Chinese Proverb

"First they came for the Socialists, and I did not speak out--
Because I was not a Socialist.

Then they came for the Trade Unionists, and I did not speak out--
Because I was not a Trade Unionist.
Then they came for the Jews, and I did not speak out--
Because I was not a Jew.
Then they came for me--and there was no one left to speak for me." UNKNOWN