Guest Post by Martin Armstrong
The world financial crisis that is unfolding post-2015.75 is different from that which followed the 2007.15 peak in the ECM. As stated countless times, each event is a crisis in a different sector. The 2007.15 crisis was the over-leverage in real estate that the bankers created. This time, we are looking at the demise of governments. Under normal conditions, bond prices would be falling with interest rates in the public sector rising. We still see this unfolding in the peripheral markets. The markets where central banks have been buying government bonds to try to stimulate the economy has utterly failed and created a crisis beyond contemplation. We are looking at the collapse of government’s ability to issue debt as we move forward into this cycle. The only buying will be central banks at the end of the day – totally insane.
The Sovereign Debt Crisis of the 1840s was the demise of the states, thanks to Andrew Jackson shutting down the Bank of the United States. This led to a banking crisis with individual states trying to support their banks. Because the states could not create money. The states issued debt to bailout the banks, but the crisis was far too massive, and as a result, the banks took down the state governments, which had no choice but to permanently default on their debt. This time, governments are trying bail-ins and this is causing confidence to collapse. Why should people trust banks at all? Once they hoard cash; that is it. The velocity of money implodes and you end up with an economic depression.
To answer all the questions about whether this will be covered at the World Economic Conference — of course. And to answer why we did not hold one in Berlin, yes, our models were warning about significant civil unrest in Europe as a consequence of the complete fiscal mismanagement of the ECB. It appears that the negative interest rates are totally insane. This is the complete incompetence of those who think they know how to manipulate society from Larry Summers to Mario Draghi.
These people will never admit a fatal mistake. Thus, we have to stand by and what Rome burn.
Very esoteric and well written….with one large question outstanding : WHEN the hell does this SHTF, Fire in the Theater, Asteroid strike on the global economy, Great Depression v2.1 actually take place?
Jeepers, we have been hearing about this end-of-the-world stuff (on TBP and other sites including one with a naught in it) for years, yet the whole equities/bonds contraption just keeps on rising out of that ol’ tub every late afternoon and grabbing Michael Douglas by the neck!
So, when does Vesuvius pop sir?
When rates rise. or were you looking for a specific date?
I’m not too pedantic about a date but give or take 5 milliseconds how about nailing it down to, say, before next Tuesday that would be kinda nice. I can’t be doing with all this ‘Be patient these things take time’ or, it’s like a rusting vehicle example, or it’s like exponential maths, I have been hearing variations on this theme for about 7 years now.
Give us the date and time, don’t beat around the bush, cut to the chase please.
Put yer money where yer mouth is.
Save the article, add a year to each date in it, and republish it next year.
Then the year after that and the one after that ans so on.
I think that has been the procedure for the last 25 or 30 years that I can remember this imminent doom stuff going on (usually by gold or other off the wall investment and commodity sellers).
With the Italian banks crashing and the run on their banks, I see that the sheep are taking notice globally and a sense of panic setting in. ATMs cleaned out in Italy coupled with DB going belly up should freak out Merikans but alas, they are too dumb to care or take this serious.
Merikans will fail to prepare or take notice as they have BLM to keep them occupied. Like I said the other day, get beans and rice and ammo while you can still get it.
I have yet to see any independent person show factual evidence of an ATM run in Italy.
Day in day out the doomers have been at it since at least 2008. It used to be..We are running out of oil, (I often wonder what happened to that old Red Herring.) This week/month/hour it’s Brexit or the Italian banking system or D Bank taking a powder, or negative Swiss and Japanese interest rates.
Crikey, as my late Australian friend used to say…WHEN does the Dooming and Glooming actually even START to show a measurable bloody result?
Davebee
Maybe it is a psyop or maybe TPTB won’t let this into the MSM just yet.
http://www.investmentwatchblog.com/a-run-on-banks-is-beginning-in-italy-looking-for-italians-to-provide-real-time-facts-and-insight/
Sgtreport states that their Italian readers are reporting bank runs.
http://www.sgtreport.com/2016/07/has-a-run-on-banks-started-in-italy-atms-are-being-emptied/
When your seeing the Deutsche Bank in Germany running into financial difficulty…… the main feature will be getting underway shortly. SHTF events are are a lot like exponential math….. takes some time to get going, but really picks up speed towards the end.
As far as ammo goes a question to any Californians here:
Did that new ammo background check that was being pushed forbid buying out of State and bringing it back to get around it or is it still legal to do that? (I understand it failed this time but doubt that will be the end of it since it will identify owners and types of weapons owned)
We are in the middle of the of the big one right now!! We have seen millions of people robbed of their homes and futures and we sit back and say oh well. We have seen millions robbed by obamacare and we say oh well. We have seen millions robbed by studen loans and credit cards and we say oh well. If you are one of the last frogs sitting in the warm water Oh welllllll…..
It’s more like Kunstler’s “Long Emergency” than a sudden crash. Visualize driving a car as it rusts out underneath your feet while you drive, lug nuts missing, steering wheel loose, and the gas tank nearing empty.
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” I gotta say…. I think it handled pretty well” (scene from the movie Gung Ho!)
Davy dumb butt , If you can count then read ( slowly ) The REVOLUTION of our Lord Jesus Christ. In other words we are already in the last of days. We have been in a steady decline since 1776 .Now you want dates …this is a good one Oct 2 ,2024. This is when we die as a nation ,as a REPUBLIC.
Be grateful you have more time to prepare. I usually charge 50 bucks for this kind of information.
I am sick and tired of a federal government spending so much time and effort and digits on propping up the stock market
I have no idea how purveyors of stocks and bonds keep their sanity
I do not have that on my conscience thank God for I do not invest in stocks or bonds
But I am going crazy waking up every day to this nonsense
Going crazy actually keeps me from going insane
Don ,you need to masturbate uncontrollably. This should return you to you…..I should charge 50 bucks for this intellectual insight.
Ah, I feel much better
To where should I send the check?