CRASH2: As I was saying only yesterday….

mesnip18716Most of us are wrong about some things now and then. The Remain Camp is wrong about many things most of the time. And Hillary Clinton does wrong about everything all the time. I posted a damning piece yesterday about the balm bollocks pouring out of the 3% bunker at the moment. It seems to have been proved almost entirely accurate almost immediately. So like all realistic motormouths, I’m making the most of it today.


Something I’d been boning up on, when time allowed, over a busy weekend was a key element in yesterdays Slogpost:

XetraDB

At Zero Hedge today:

“It appears Deutsche Bank is prepping for an Avalanche of Fraud Charges Including It’s Gold Derivative Products….”

In the same piece, I condemned Roger Bootle’s Telegraph column by pointing out that his assertion ‘worries about the fragility of the US economy have not been vindicated’ left out several factors, notably ‘the Fed split down the middle on inflation targets and rate hikes’:

FedSepthike

At CNBC today:

“The US non-farm payrolls report noticeably underperformed market expectations and effectively killed off the outside possibility of a September rate hike by the Fed,” Angus Nicholson, a market analyst at IG, said in a Monday note.

This makes the fifth time in two months the Fed has changed its view from hawk to dove and back via kestrel. Hardly what you’d call solid confidence in the economy.

I also noted US ‘property prices on the verge of a chute‘.

At The Real Deal US property site now:

‘Goodbye big fat McMansions. Your boom time is over….According to new data from the National Association of Home Builders, the median floor area in new-home starts dropped during the second quarter of this year by about 3 percent.’

No US recovery has ever taken place without a domestic property boom.

This was The Slog’s take on Japan yesterday:

japtolduso

This in the Japan Times two hours ago:

‘During the G-20 meeting, Abe called on fellow leaders to take specific actions to accelerate growth, saying there were “heightening downside risks” as the outlook for the global economy “remains hazy amid uncertain”….citing his economic stimulus package adopted in August to boost growth, Abe urged other leaders to “take specific actions….Advanced and emerging economies must unite and bring the global economy back onto a recovery path”.

Well, there are two chances of that happening. The G20 was dominated by South China Sea tensions between Tokyo and Beijing, and squabbling between the EU and China about its steel overproduction.

Globalism doesn’t work, period. We will never get 20 old and new world nations to unite and share aims when their aims are, blatantly, antithetical.


Just over a fortnight ago, I posted:

EUfail

At the European Policy Network site last night:

‘Atlante, the fund the Italian government set up to channel private sector money into rescuing banks, has started the engine….It might soothe markets for a while, but it has too limited resources to silence concerns over an Italian banking crisis….Atlante is no long-term solution because banking sector’s woes are tied hand in glove to a sputtering economy. Thousands of SMEs have gone under – a double predicament for banks….the lack of growth is fueling a political malaise that in no time, with the referendum coming up in October, could rob Mr Renzi of the legitimacy and the ability to pass through reforms. The consequences of the banking and political crisis of its third largest economy would certainly not leave Europe indifferent.’

And in other encouraging news, the pro EU BBC reports this morning:

BBCeurohalved


And in today’s Torynaff, it is opined that Theresa May’s frosty reception at the G20 shows she cannot stonewall about Brexit forever’ , so there. This shot shows her at the meeting with Top Aussie Malcolm Turnbull:

mantis.PNG Turnbull said that “There couldn’t be two countries with closer bonds than Australia & Britain.” Oh dear: what more can I do – looking closely at Theresa Mantis’s profile there – but warn the antipodean PM about another recent post at The Slog:

‘There are no ifs or buts about it for the mantis – the deal is always the same: ‘life’s a f**k, and then you die’. The female gets deflowered, and the male gets devoured. It’s no good whingeing that you weren’t ready or the other side told a pack of lies: the decision is final, inevitable and irreversible: she’s pregnant, you’re dead.’

Keep it in yer strides, Malc mite.


Last night at The Slog: decadent cuisine in South West France

 

26 thoughts on “CRASH2: As I was saying only yesterday….

  1. The continued pumping of QE funny money into the private banking sector only feeds the stock market and commodity bubbles.
    The monetary policy of near zero interest rates still does not influence companies to borrow, .to expand, into an economy with little consumer demand,
    Lack of consumer demand caused by a lack of disposable income,
    The consumer is just about keeping his head above water with high rents,mortgage repayments, utility bills etc consuming the greater part of his wages.
    The neo-liberal and austerity model is akin to a snake eating its tail. it will end in a mighty crash.
    A debt jubilee of banker debts is the only real solution to reset the system.
    Bankers will not face reality,until this Ponzi monetary system collapses in chaos.

    Liked by 4 people

  2. I do like the point on Japan …

    Japan during better economic times < 2008 was able to pretend it had a fully functioning economy not the zombie dead after their bank bailout. They should have done an Iceland 20 years ago, they didn't and when it blows now no other country is going to be in a position to help you – message from the UK "sorry Abe we are all skint right now" I will send the letter in a bottle later.

    Think of it as a Japanese failure though because going bust 20 years ago, big wake up call to the West before the damage was actually done and we would have put in a tonne of regulations to make sure the same thing didn't happen here. So off we all go, good this "ramp the debt up" sounds like a rap song, ceding sovereignty by the likes of May etc. on paper anyway.

    Don't blame BREXIT, blame Japan for conning the global economy for 20 years allowing all the malinvestment to form because after Japan everybody believed TBTF is now the order of the day with no correction needed ever. Reality of TBTF then comes to pass post 2008 … oh dear … if only … what if we had not done like Japan did … you could go on but you did.

    On May …

    The more I see of her pontificating over article 50 the more I wish she was treated like JFK so we can try another one. We can go through all 650 one at a time this way and the scorecard for "strictly come shooting" is how long you last. I just keep correcting all articles I see now on May being BREXIT, break that narrative she is BREMAIN, like I noticed the all the photos of Clinton pre the 1st speech cupping her hand to her mouth then she breaks out in a coughing fit.

    Lung issue I do believe … just makes sense of cupping the hand all the time you don't want to slime pay-to-play players.

    Liked by 2 people

  3. The central truth remains that you cannot hypothecate from thin air productive labour or tangible resources and if goods or labour are going to continue to be traded using dollars or yen or any fiat currency then you have a direct conflict of interest between the central bankers who can create money at will from nothing and the rest of us who trade their time or physical assets in return for these currencies.

    Having poisoned the well with reckless credit expansion the central bankers have two broad policy options, 1) Let the system fail and build it again on sound(er) monetary paradigms or 2)Erode the value of the debts and funny money by progressively inflating away the debts and using paper promises to absorb tangibles which can then be leased back to the productive economy to fill in the broadening divide between real economic activity and the fiat regime.

    Clearly the fist option never even got written down so they will continue to squeeze the vice until we go pop.

    Liked by 2 people

  4. I run a small software business. We are expanding and diversifying. We have been looking for finance to take on extra full-time staff and cover short-term cash-flow to pay casual labour staff for 12 months. No-one is willing to lend us more than 25 grand. We turnover around 500k a year on a 75% profit margin.

    Can someone please tell me where the hundreds of billions of pounds in QE has gone please, coz we would like to borrow 0.00000000000001% of it for a few months.

    Liked by 3 people

  5. If Japan has a zombie economy…

    … why do all the world’s engine management systems come from Japan (even the Germans use them).

    … if you want silicon for modern semiconductors, especially for the likes of microprocessors, why must it be sourced in Japan?

    … why does Boeing need to have the wings for its 787 dreamliner made in Japan?

    Nobody else can match them.

    If that’s a zombie economy, it has to be the mainstream media that describes it as such.

    Liked by 1 person

  6. @Gemma, Japanese engineering based businesses may be OK, their Political/Financial system is not. Same as the rest of the ‘Western’ world. We would all be fine if we could just reset each of our Political/Financial systems to support the people/the real economy. Same as it ever was….

    Liked by 2 people

  7. Ross Stanford

    If you’re prepared to relocate to Scotland, Nicola Sturgeon has just announced a £500m growth fund for ‘businesses which cannot get funding for expansion’.

    You might not want to relocate there, but at least someone is looking to fund ‘unfindable’ businesses…..and I’m sure you wouldn’t have to relocate until they’d agreed the terms of funding…….

    Like

  8. i2choose

    You’re right.

    Only… the US and UK economies are dependent on their banks… which means their political/financial system is also their economic system.

    At least Japan has some industries and a real economy to fall back on…

    Which was kinda my point.

    Like

  9. KJH

    I would like to point out that it was a certain bank with a prestigious record that duped the Greek government in the first place. Then it was the Greek government that made poor investments during the years of easy money in the Eurozone – which leads me to wonder what a Greek government would do if let free of the Eurozone… would it make investments as poor as the ones it made before the banks dug their claws in?

    As to the aforesaid prestigious bank, they are now reaping the rewards of the fraud they practiced on Greece!

    What it it they say if you want to perpetrate a fraud? Find someone who believes in it…

    … the Greeks wanted what the banks were peddling.

    And this is the result.

    Liked by 2 people

  10. Correction Gemma, the Greek Rightist élite wanted what the banks were peddling. The Greek political class beyond that has no balls, and the ‘threat’ being made now is laughable: if Greece defaulted, ordinary Greeks would be better off within nine months. And the EU would have Italy, Greece and Brexit to swallow. We both know they’d choke.

    Liked by 2 people

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