Crash2: Do you know how to stop 14 econo-financial asteroids at once?

meltattack

If so, please step forward

mesnipLike a great many people in recent weeks, I’ve been asking myself (with a growing sense of urgency) how long the varietal élites around the globe think the material world can keep on turning with nothing happening, nothing being addressed, nothing getting better, and everything becoming more and more counterintuitive. I have many threaders at The Slog who say “Forever”. But nothing is forever: not the Roman Empire, not the Bourbon dynasty, not the Soviet Union, not even the Labour Party. When neoliberalist globalism finally hits the buffers, oh what a whirlwind its enthusiasts and apologists shall reap.


My aim is for this to be one of the most succinct Slogposts ever.

  • Italian bank insolvency
  • Deutsche Bank exposure to uncovered derivatives
  • Japan offering NIRP with the biggest debt to gdp cockup on the planet
  • Beijing direct buying of worthless Shanghai Index stock
  • Inability of desalaried masses to kickstart economic recovery
  • Western bourses overvalued by 30% minimum
  • Durable businesses overdependent on financial services for profit
  • Capitalism functioning on zero capital income
  • Property sales left as dead-flat spinning plates by forex uncertainty
  • State pension Ponzi provision
  • US interest rate hike hype
  • Lack of medical investment in anti-pandemic attack & control
  • The Bond Bubble
  • RBS & Barclays stress test failures

Further reading during the last 14 hours:

Something’s got to give

34 thoughts on “Crash2: Do you know how to stop 14 econo-financial asteroids at once?

  1. Correct. It cannot last forever but forever would be eternity. And it can certainly be can-kicked down the road until you and I are both gone.. And I m the same age as you so say ten years at most..

    As an example look at the Italian bank situation. Nowhere near as bad as doomsayers had predicted . Paschi will NOT be bailed out so taxpayers happy and also deposit ors . But funny money will be printed and given to Italian and other banks to recapitalise Paschi and dilute it s equity . Shareholders not happy — but tough titty.

    Indeed the other Italian banks did not do badly at all and the infamous Deutsche surprised on the upside.

    In fact two of the ” surprises ” were RBS and Barclays who look decidedly dickie.

    So : physician heal thyself and extract the plank from thine own eye before criticising
    the sliver in thy neighbour s.

    The NWO will keep the music playing at least another decade by means foul and fouler so we both have no need to worry and as fir the rest — beggar my neighbour and the Devil take the hindmost.

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  2. try “poverty”

    From: The Slog. To: johnstephenbank@btinternet.com Sent: Monday, 1 August 2016, 17:43 Subject: [New post] Crash2: Do you know how to stop 14 econo-financial asteroids at once? #yiv4419416864 a:hover {color:red;}#yiv4419416864 a {text-decoration:none;color:#0088cc;}#yiv4419416864 a.yiv4419416864primaryactionlink:link, #yiv4419416864 a.yiv4419416864primaryactionlink:visited {background-color:#2585B2;color:#fff;}#yiv4419416864 a.yiv4419416864primaryactionlink:hover, #yiv4419416864 a.yiv4419416864primaryactionlink:active {background-color:#11729E;color:#fff;}#yiv4419416864 WordPress.com | John Ward posted: “If so, please step forwardLike a great many people in recent weeks, I’ve been asking myself (with a growing sense of urgency) how long the varietal élites around the globe think the material world can keep on turning with nothing happening, nothing bein” | |

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  3. I totally agree JW.

    Down here in deepest Surrey we are back to filling the woodshed early and buying a couple more oil lamps before winter. My last shares went a couple of weeks ago at pretty close to the top of where I think they will be for sometime, and the reclaim on the Index linked National Savings went off in the post this morning, as anything to do with The Post Office is underwritten by Bank of Ireland…who also did not have a great week on the Stress Test front…by quite a long way.

    I seriously cannot believe that the Financial Services Compensation Scheme, can cover everyone in UK who has up to £75k of money in every Post Office and National Savings product, if the Bank of Ireland gets taken down along with some of the others, come any big crunch. People seem to assume that The Post Office is government owned and underwritten still.

    The hatches are truly battened down here…but I am equally amazed that many friends are totally oblivious to anything other than the economy of Europe is improving and the British economy would have been booming this year were it not for Brexit.

    I obviously read the wrong papers in their eyes ! The universe will unfold.

    Liked by 1 person

  4. It’s deeply depressing , but if you don’t believe civilisation will eventually destroy itself look at some of those Syrian cities , now just piles of rubble , previously homes ,shops, factories. Good doesn’t always triumph over evil just because.

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  5. I too believe that they can keep the plates in the air for a while longer, a decade is a possibility I think, although I think more likely that all the ‘under the table’ money printing is more likely to bite them in the arse, and those chickens might come home to roost a little earlier but, who knows?
    Are there any signs of panic? Not sure, for the UK, I think the London housing bubble will be the first to pop, when we see signs of serious losses at the top end then I think it might be upon us.

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  6. @Stephenroi: Is that AEP, ‘a globally respected writer on fiscal economics’ waxing again? The problem is, we no longer know whether he is writing of his own volition, or of somebody else’s volition.

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  7. Anyone noticed that the amount of sport and sporting ‘heroes’ is directly proportional to the mendacity of government as a function of time…..
    Thus,

    Sport = Constant K1 x time x mendacity

    Or

    Sporting Heroes = K2 x time x mendacity

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  8. @kfc: Yes indeed AEP… Having studied applied economics and lived in the real world for over 60 years, it seems to me that when fiscal or economic policy levers are pulled invariably they are pulled two years too late (as in trying to drive an ecomomy by looking in the rear view mirror) so they tend to have unintended consequences. From direct observation, the UK appears to be going like a fairground, a plethora of trans continental trucks on the road and cafes and restaurants busy even on “slow’ weekdays. The postulated cut in bank rate is probably the last thing we need. A 0.25% rise on the other hand would provide some hope for beleagued savers and pernsion funds, would burn those shorting sterling……

    Liked by 2 people

  9. It’s all quite simple really. Just print more money to buy debt assets of dubious companies and countries so that they can borrow more in order to pay off the old ones, and then print more money again to buy that new paper, ad infinitum.

    I’ve seen figures of $18TN so far but that’s just a start. $100 should be no problem.

    Next question

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  10. Asteroids or haemorrhoids? One is a pain in the backside the other is certain death on a global scale. Dont forget if you want to kick a can down the road of time you have to have a can (and a foot). This merry dance will end when and if that beautiful black gold stops flowing so freely, it may well be much sooner than 10 years. Judging on the desperation in the Middle East i would wager less than 5 years, could happen next week, who knows? The economy is an expression of energy, past, present and future. Having had much experience of working in failing companies (and i feel confident enough to call myself an ‘expert’ on the subject) the signs of pending disaster show themselves first in the most mundane of things, usually the replenishment of the stationary cupboard. When the loo roll runs out you know the shit is about to hit the fan. Im sure you will all agree that the stationary cupboard has been stripped some time ago.

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  11. Back of the net John; All the sovreigns are buying the stocks of their homeland whether worth less or worthless. And all with newly printed credit. Kompetteeteeve stabeelitee. (devaluation) A hallmark of a currency war.
    Forex, when it blows, liquidity everywhere might be gone in a few hours? As you alluded, many large corporations make their money betting in the Forex market because they can’t make the yield they require any more either.
    But for now its better than a casino for those willing to risk it all. Actually, they don’t have to put up more than a fraction of their bet until the margin call. Just that now the bets affect the entire population and the house always wins until the bank is broken. The unknown unknowns are accumulating simmering festering.

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  12. Cecil More utter tosh from Hague! it has been the protectionist selfish who have undermined their own governments ability to be democratic,they have waged war against their Labour forces to oppress them not free them,we have protectionist markets that are monopolies that impose their will on society,a market free to abuse is not a free market at all! if you don’t believe in unions the right to strike,then you don’t believe in free markets! but oppression of free markets too your own ends and that is what Hague whole life has been about! he’s a stupid ignorant selfish egotistical bigot who isn’t capable of understanding the gravity of his own stupidity!
    Instead od nurturing and respecting fellow humans and their needs the west have imposed,depraved and lost the morality that gave it it’s advantage that that is what all nations could strive to be!it fell into a dystopia led by people like Hague into banana states that upon every attack on the west because of the depravity it exported,washed away the very foundations on which they were built,
    The only point he make which carries any credence at all is that it will take strong and great leadership to oust the west of its corrupt practises,re-establish trust and good will around the world offer fair and equality in trading with other nations,if the world isn’t too end up in another world war,but i think this article is more about hardening up the west that that is all they really now have to offer us!

    Liked by 1 person

  13. Okay, so we all want our cars, but we don’t want the consequences.

    A motor car is the ultimate in corporate – that is to say, crash-inducing – of our possessions. You can’t go anywhere in it without doing a kao-tao to the corporations.

    Yet we all want one!

    We all want mobile phones, electricity and gas, televisions… all of which are dependent on the very forces of crash-inducing corporations.

    That’s why we’ve got problems… and a crash is likely. It’s because we all pander to the very institutions that foment such things.

    Cecil Rhodes.

    “Too much democracy is another way of putting it. We need much more discipline, less lone voices shouting unworkable rubbish. But we may well need a short sharp shock to deliver the mindset that is now so badly needed needed.”

    Well, this kind of thinking is the Anglo-Saxon way, isn’t it? Just look at Britain, ‘punching above its weight’ – aka throwing a few bombs. Not exactly democractic, is it, to punch above one’s weight? Somebody’s been reading Mein Kampf and practicing the Roman Salute in the bathroom before the rest of the family want to brush their teeth…

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  14. Cecil

    You’re assuming of course that William Hague is talking sense.

    When I hear a UK/US politician complaining about others ‘using brute force’ I ask how soon they can be sent to the local loony bin.

    We in the West do not ‘win arguments through debate’, we do it through bombing campaigns. We go to war, admittedly nowadays as very, very junior partners to the Americans. But we fight wars to win, usually through campaigning against small disorganised ragtags who we big up to being the biggest danger on earth. Anyone organisation that has such little weaponry that it is reduced to driving lorries into crowds of people is hardly a threat to world peace, is it? I’d say thousands of automated drones, thousands of nuclear weapons, huge amounts of ordnance delivered from the air is rather a better candidate for that…..

    Until the West mans up and accepts that we are a bunch of killing bullies who are a big bunch of wussies squealing that Russia’s a big boy and won’t be treated like ISIS, all this nonsense is just that: nonsense.

    Who organised the coup in Ukraine? America or Russia?? Who is bombing Eastern Ukraine? US-backed Kiev forces or Russian-backed ragtag revolutionaries?

    Who bombed Libya back into the 19th century? America or Russia? Ditto Iraq. Ditto Afghanistan.

    Where is this rampaging bullying Russia that we are all told about?

    And where is the peaceful West that always settles disputes without war?? Even if occasionally they must take a diplomatic defeat……

    Liked by 2 people

  15. RJT

    Can you tell me what the difference is between the perpetrators of the things spoken of in your comment, and the foreign policies of the Nazi party of the 1930s?

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  16. the ghost, gemma and rtj

    I rest my case.

    William Hague – ex Foreign Secretary of the British government writes a piece based on his education, knowledge and experience.
    Immediately, 3 Sloggers arrive with fists and boots swinging. Unfortunately, you are all VERY WRONG.
    Mr Hague has made some VERY GOOD POINTS.
    Do not argue with your superiors who are WAY above your intellectual level will ever be.

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  17. Cecil LOL intelletual level,superiors ,just the point i was making!you & him can’t make a judgement on the world surrounding you because your delusional! i don’t agree with Corbyn on much but he ruffles feathers and he’s here now! i don’t want to pass the buck to my children grandchildren and it could be sometime before anyone else internally gets the chance to ruffle parliament up! so i suggest others back him! for the same reasons we backed Brexit,put pressure on those locked in ivory towers.

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  18. Gemma.. no difference at all, except that today they have the benefit of ‘public relations’ so most cannot see what is happening while they loot.
    As to how far the can can be kicked down the road.. well to the end which may be today, tomorrow or by the end of 2018.. thing is, it works as it is now until it doesn’t and people never panic slowly.. the shops will be empty in hours and more supplies may prove difficult..

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  19. You could add in the student loan bubble both here and in the states. All those aspiring workers without relevant jobs on leaving uni with massive debt to clear just to get started.

    Liked by 1 person

  20. well I’ve just cashed up on a flat in London…now what do I do? Leave it in the bank seems unlikely,stock market at a high. ZIRP in the bank and possibly lose it in a bail in.Buy more property? Some suggestions would be good other than doom and gloom

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  21. @desmond; I remember the fuel drivers strike a while back. Up here in rural Scotland the shops were striped in hours and bread and toilet rolls were the first to go. We are truly dependent on large retail groups and their “just in time” stock management systems. There is no resiliance built into the modern world and things can go belly up very quickly.

    Liked by 1 person

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