SUBSIM Radio Room Forums - (Crazy) economy news

SUBSIM Radio Room Forums (https://www.subsim.com/radioroom/index.php)

- General Topics (https://www.subsim.com/radioroom/forumdisplay.php?f=175)

- - (Crazy) economy news (https://www.subsim.com/radioroom/showthread.php?t=232595)

Former head of FED Paul Volcke fires a full broadside against the FED.

https://mises.org/power-market/paul-...H6Q6JkBXp2z18M

And he is not even an "Austrian".

The Italian crisis is about to blow up and righ tinto our face

https://translate.google.de/translat...tml&edit-text=

I'm getting nthe shivers when seeing the German Target-2 Saldi - almost one trillion. Money that is lost to germany if the Euro madness collapses.

That Merkel allowed over one decade that this immense sum accumulates, building an irresistable potential for blackmailing Germany: for this sin alone already Merkel should be lined up against a wall and shot. The germans should have threatened world war 3, so to speak, to prevent the ECB policies of the past ten years. Instead the yhelped Draghi into office, and now have given up ambitions to have the German head of the Bundesbank as Draghis successor.

Stupid, stupid, stupid Germans. I often feel ashamed to admit I was born as a German. Not because the Nazi past, but because of the German servility and stupidity of the present.

What happened to achieving, what happened to self-responsiblity, what happened to accountability? It all was given up and thrown over board for sentimental babbling, blackmailed "solidarity", and "social conscience". Uuuaaaaah! Pfui Deibel! This masochistic determination to be servile and weak and vulnerable makes me sick. So foul and rotten it all smells.

Well I wouldn't consider moving to the UK because after that almost treasonable act we witnessed yesterday it would appear the UK is headed in the same direction.

Quote:

Originally Posted by Jimbuna (Post 2577361)

Well I wouldn't consider moving to the UK because after that almost treasonable act we witnessed yesterday it would appear the UK is headed in the same direction.

Pizza Hut? :hmmm:

Mmmm...pizza. :DL

Trouble is there are plenty of black holes making these things vanish.

Sky you should watch the Keiser Report.

Yea I know it's on shifty RT. :shifty:

https://www.youtube.com/watch?v=RlveZE_kr80

Quote:

Originally Posted by Skybird (Post 2577217)

I'm getting nthe shivers when seeing the German Target-2 Saldi - almost one trillion. Money that is lost to germany if the Euro madness collapses.

A moment of intellectual shortcut by me. The correct version of this sentence of course must be:

Money that is lost to Germany if the Euro madness collapses or not. In either case, it will never come back.

Its all about just keeping the illusion alive - and avoid getting caught in the act.

Euro socialists now want a European unemplyoment and social wellfare insurrance. Its the collectivisation of national mismanagement and debts without calling these crimes by this name. The powers trying to manage better get punished, their citizens expropriated, their future and older age plundered - for the sake of keeping alive more and more uncompetitive zombie companies, and mismanaging states that live beyond their means.

And Germans even applaud for this! :o

Hitler and Keynes are not that different, and they both get embraced in their socialist economic views by present Western "democracies" - planned economies would be the more correct term. I have prwached since years that the Third Reich was a socialist tyranny,a dnthat it is one of the greast prpaganda coups in history ever that the Sovjets managed and the left today still manages to maintain the illusion that they as "left" politicians are the oppositeand the curing antidot to the right-ness of the Nazis. Socialists and Nazis are in principle chuldren of the same spirit, one and the same thing, the Nazis only focussed on racism against Jews where socialists focus on envy and defamation of those who have more than others to make it easiert to expropriate them. Plundeirng and exproprzating they both did, just their alibis were and are different: Jews here, and generally rich people (Jewish or not) there.

https://mises.org/library/hitlers-economics

Quote:

Perhaps the worst part of these policies is that they are inconceivable without a leviathan state, exactly as Keynes said. A government big enough and powerful enough to manipulate aggregate demand is big and powerful enough to violate people's civil liberties and attack their rights in every other way. Keynesian (or Hitlerian) policies unleash the sword of the state on the whole population. Central planning, even in its most petty variety, and freedom are incompatible.
Ever since 9/11 and the authoritarian, militarist response, the political left has warned that Bush is the new Hitler, while the right decries this kind of rhetoric as irresponsible hyperbole. The truth is that the left, in making these claims, is more correct than it knows. Hitler, like FDR, left his mark on Germany and the world by smashing the taboos against central planning and making big government a seemingly permanent feature of Western economies.

People should fight without remorse and tear down any such state. Bot they just don't do it, accept to obvey in obedient servility and once again prefer to be led once again into the next incarnation of always one and the same basic pattern of disaster once again. We have career politicians not because they are so clever - we have them because the plebs is so dumb.

Thats maybe the best diagnosis explaining both the the hybris and the doom of the West, but many other nations in the world as well: its always about "once again".

The Washington Institute of International Finance published its yearly global debt monitor. Global debt has grown by over 12% (=27 trillion US$) compared to 2016. The total now is 244 trillion US$ - which means it is more than three times as big as the global gross domestic product (318% of global GDP, to be precisely).

Nobody can seriously argue that our fincial management and economic handling fo thigns really is self-sustaining. Its all big show on the nod.

If you wonder who will get the bill smacked into his face sooner or later: if you are older, your children. If you are young, you. In the end we're all dead. Praise Keynes. Praise deep state corruption. Believe in the gosple of the inflatable paper money.

https://www.zerohedge.com/news/2019-...al-debt-levels

Quote:

The US government has $22 trillion of debt and is running $1 trillion+ deficits every year. There’s a record $15 trillion of corporate debt. And the US consumer has racked up around $4 trillion of debt (not including mortgages).
(...)

So, $22 trillion in the whole and a $1 trillion deficit in a good year. Not to mention, interest rates are rising, which means all of this debt is just getting more expensive.
(...)

The government already spends 28% of its revenue just on interest (at a time when interest rates are near all-time lows).

Bee scared indeed. You have reason to be.

Quote:

The European Central Bank and Bank of Japan both essentially reneged on their plans to start tightening monetary policy. And yesterday, the Federal Reserve has signaled it will stop hiking rates.

Didn't I predict the FED will end QE again after much shorter time than anyone expected? I did. Its all too much off balance. We are in the clinch of the vortex, and there is no more an escape option. We let all chances pass by when there was time left for any course altertaiton to grow sufficnetly in pace so to b reak thoprugh the inner dynamics.

Its like a spaceship getting too close to a black hole. Once the distance has shrunk so much that the engines cannot compensate for the growing gravitation anymore, all things are lost. Your only chance was never to get too close in the first. But we have, and we laughed, and now we are doomed.

The writing already is on all walls, and the signs materialise more and more clearly for everyone with eyes to see.

The only thing I find to be unclear now is how China will getr through the storm ahead. By econiomic treends it is set to overtrake the US as the totally biggest economic prizucer by around the year 2030. It is unclear to me how soft or how hard it will be hit by the implosion of the dollar.

Russia probably is set up best. The bear spend the past years to dug his winter cave especially deep and plaster it with all gold he could find. They have almost no dollar bonds and reserves left, just a tiny and in itself irrelevant fraction of what they once held.

Ironically I think that especially Germany will be hit especially hard this time. When the drama unfolds and crumbles the economy, all the high maintenance costs politicians have established in the past twenty years will come to bera in fukll, and the social structure of the civil society will collapse. What Germany has build in the past fifteen years or so - is just a glorious illusion. A castle build on quick sand. The German business depends to a hilarious ammount on the low wage sector, more than in any other Western country. It is here were people will suffer first, and it is this were the riots and unrest there will be will start at.

Isolationism. There was a time you had only the money that was in your county reserve. No more no less. All this borrowing, lending, spending...

When the global depression hits, we all need to go back to the isolationist ways. US was an economic powerhouse without foreign investments.

Now we have "paper" billionaires. On books they have cash but couldn't pull that money out to put in their pocket right now if they could... doesn't exist!

Am I right or crazy?

Matching the above post is the fact that last year the central banks, who try to convince the private people that gold is useless to hold and is no real, clever money these days, have bought the highest yearly ammount of gold since the gold-dollar linking was broken up by Nixon in 1971, or 1972. Never before in the past 47 years central banks a bought so hectically and so much gold, like 2018.

Again especially Russia's role in this is outstanding. They buy gold sicne many years and in reverse got rid of their dollar reserves and US bonds. They just hold a tiny fractionof what they hd just a few years before, and what they still have, 14 billion in US reserves, in itself is practically meaningless.

Why do central banks do this if in their own words it is stupid to hold gold reserves?

I think some thinking about the reasons of this is in everybody's most essential interest.

Quote:

Originally Posted by bstanko6 (Post 2589904)

thats why I am intersted to see how China will do. The Western dominance in globla trade of the past two hundred years, was just an anomaly in the past two millenia. Because except in those two hundred years the by far dominating and most powerful trading nations in the world were China, and India. And with their modern Silk Route project and the outlook to overtake the US in net productive economy size around the year 2030, by today'S trends, nobody can say that they just will fall victim to whatever happens to the West.

Just compare how little time it takes them to build a huge and fully functional international airport - and how long it takes the Germans. :D The construction expertise of the world these days sits not in Germany or America, but China. They want it - so they decide it, they do it and they put all effort needed into it. Period. Germany should turn pale in embarassment.

And its not just the airport in Berlin. Itds also the govenrment's aircraft flying from it. :har:

On a sidenote, Lufthansa considers to withdraw from the never ending drama around Berlin airport, and cancelling any plan to build a base there. Mind you, this was meant to be a prestige project and the national capital's primary airport for which Tempelhof got shut down and Tegel still is planned to be shut down.

The ICF, FED, ECB and central banks now plan to widen the most malicious major crime they have ever pulled so far.

Quote:

If the economy deteriorates, the central banks try to stimulate the economy with interest rate cuts. However, interest rates for many central banks can hardly fall even lower. Therefore, the IMF has another idea of how the economy could be boosted: with a tax on cash.

Many investors are worried that the euro-zone economy will soon slip into recession, while the US economy may well fare shortly thereafter. Therefore, the International Monetary Fund (IMF) is considering how to keep the world economy going in the next "severe recession".

Because the classic tools do not work anymore. The central banks can barely lower their interest rates further in order to stimulate the economy. A solution would be negative interest: Who has money in the account, receives no interest, but on the contrary has to pay a fee on his savings. This should save savers from saving. Instead, they are to be forced to consume, as it were, in order to keep the economy running.
Cash is protection against punitive interest

There is, however, a "problem": the cash. "In a cashless world there is no lower limit on interest rates. For example, a central bank could lower (lead) interest rates from two to four percent to combat a severe recession, "said Ruchir Agarwal, economist at the IMF, and IMF Advisor IMF signe Krogstrup, a former member of the Swiss National Bank to a recent study. "Without cash savers would have to pay the penalty interest, which would make consumption and investment more attractive. That would stimulate lending, boost demand and stimulate the economy, "said the two IMF experts.

However, there is still cash - which can avoid the penalty interest. Because the savers could simply withdraw their money instead of paying a fee. Especially in Japan, Switzerland and in the European Union, the share is still high.

Therefore, the two IMF experts have come up with a new idea of how to effectively introduce negative interest rates despite cash.
Cash should lose value

According to the working paper of the IMF, the plan is to be implemented as follows: The central bank is to divide the monetary base into two currencies, on the one hand cash and on the other hand electronic money (e-money). On the latter, so the book money, the penalty interest would automatically arise. At the same time, cash should get a certain conversion rate against e-money. "This conversion rate is crucial for the plan," say the IMF experts.

If interest rates were at minus three percent, cash would have to depreciate by three percent a year over e-money. Thus, one dollar would be exchanged after one year only to 0.97 "e-dollar". Thus, it would not matter if you left your money in the bank book and paid the three percent penalty rate, or less for his cash would get.

To do this, companies would have to publish prices for payments in e-money and cash. "Cash would therefore lose value, both in terms of buying goods and in relation to e-money, and it would make no sense to hold cash rather than bank deposits," wrote the IMF staff.

IMF proposal is devastating. In order to introduce this system of two currencies, that is, of cash and e-money, there would only have to be small changes to the monetary policy of the respective central bank. "Compared to other proposals, this would have the advantage of completely freeing monetary policy from the lower interest rate (zero interest rates)." However, an "enormous communication effort" would be necessary - the citizens would have to sell so why penalty interest would be great and cash devil stuff.

The question remains how this system should work. Will a cash withdrawal be used to stamp the cash on the date of withdrawal? Finally, you have to determine how long the cash is already in circulation to know the corresponding exchange rate for e-money.

The IMF's ongoing plans to apply penalty rates around the world should make it clear to every citizen what the world economy is all about. Since only alarm bells can shrill. After the debt explosion of recent years, the IMF and many other experts are convinced that the system can only be run with punitive interest, ie the expropriation of savers.

source: https://www.focus.de/finanzen/boerse..._10306882.html

Filthy criminal scum they all are, criminal and rotten from head to toe, unscrupulous and shameless. I have more thna enough of all these super crminals. I want to see them being dead, hanging in the tress until the birds are fisnihed with them.

This is not a game. This now turns into the biggest rip-off in the history of mankind into even a bigger plundering tour.

Stinkendes Verbrecherpack. They all have to drop dead, else they will not stop.

Our beloved government will pose as if it is resisting, but of course secretly will fully support this move. The war against cash money and gold is at the secret top of the agenda since many years already.

The finance headquarters in Washington, from the IMF over the WB to the FED, should be bombed into moon's orbit with cruise missiles, to be honest. They and their formidable criminal policies are the worst living enemy of man today. I indeed hate and dispise them with a passion. Parasites and plunderers. And it gets worse and worse and worse whatever is coming from them. They are scum.

When's that next space shuttle to the moon due?

The world economy system continues to disintegrate. The old status will not come back, though.

https://translate.google.de/translat...a-1277238.html

And now some astronomy. Lets talk about black holes.

https://www.bloomberg.com/news/artic...kets-quicktake

https://www.bloomberg.com/news/artic...ow-zero-yields

If that is not frightening you, then nothing ever will.

I think Earth is heading for an economic-financial extinction level event. And there is no way to save yourself. Not bonds. Not cash. Not shares. Not property. Not gold. They all will get affected negatively once the earthquake starts, and what still works, will be forbidden and plundered by state actors.

Think of it. 52 trillion dollares in state debts. Already 13 trillion of that with negative interest. Both quota and negative interest are rapidly growing. That's 52 with twelve zeroes behind it.

-----

The loss in German total monetary assets held by private households and owners and business (4.8 trillion) due to negative interest damages and effects, last year was over 350 billion. Thats over 8%. Such loss rates nobody and nothing can sustain for long. Since losses due to wanted inflation have not even been included. State economists and Keynesians say that inflation should be wanted and is needed and is good and must be fostered by the state. Four unscrupulous lies in one sentence. Its a defence for criminal mismanagement.

If it happens we'll deserve it. :03:

Quote:

Originally Posted by em2nought (Post 2618587)

If it happens we'll deserve it. :03:

Only those of "us" who defended the system and supported it, and legitimized those running it.

People and warners of my thinking and who did their part to stay out as best as they could (its de facto forbidden and impossible to stay out completely, mind you, you can only do your part to take yourself back as much as you can) do not deserve it. We are the majority's victims. We get exploited and abused. Thats why I am so angry. I am no supporter, and enver was, since I left my parent'S home. I get hit by the #### that others have started to throw around, or did not care for being thrown around. These are the ones who deserve it.

Quote:

Originally Posted by Skybird (Post 2591106)

The ICF, FED, ECB and central banks now plan to widen the most malicious major crime they have ever pulled so far.

Nothing new to me, the long term agenda is to destroy paper money for digits on the screen (FAKE MONEY) and of course your personal information. People in most part welcome this with open arms!

You watch as they sell the idea for human chipping as a wonderful thing and the fools falling for it...Chip me up baby its so cool. They will not be saying that when the trap is sprung.