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Intra-Bank Lending begins to crash.

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#42

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Thanks for sharing this. I must admit this is astounding. (Why isn't this on the front page of CNBC?) It will be interesting to see what happens when they update the data with February's results.

In looking at this I have a hard time seeing/understanding the impact of DotCom Bubble, 9/11, or The Great Recession (2008).

(BTW... what is the significance of the shaded areas of the chart?)

FRED _ St. Louis Fed - Internet Explorer.jpg
 

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#45
You know, some of that debt is so toxic the FED is gonna have to unwind it off the coast of Somalia.
 

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#49
Let's look at the facts.

Next month China challenges Team USA for global reserve currency when they formally open their oil futures brouse.

Not since WW2, Bretton Woods has this happened.

They WILL NOT ACCEPT AMERICAN DOLLARS!

So, there you have it. Bingo.

This will polarize the world the world into two camps, leading to another World War.

Do we back China, whom produces EVERYTHING we use on a daily basis or Team USA that produces toxic debt that has ruined the financial system of the world?

To the winner goes the spoils.

Everything else is background noise, but I still would like to know the real reason intra-bank lending has all but dried up.

Smells like Lehman 2.0
 

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#50
Let's look at the facts.

Next month China challenges Team USA for global reserve currency when they formally open their oil futures brouse.

Not since WW2, Bretton Woods has this happened.

They WILL NOT ACCEPT AMERICAN DOLLARS!

So, there you have it. Bingo.

This will polarize the world the world into two camps, leading to another World War.

Do we back China, whom produces EVERYTHING we use on a daily basis or Team USA that produces toxic debt that has ruined the financial system of the world?

To the winner goes the spoils.

Everything else is background noise, but I still would like to know the real reason intra-bank lending has all but dried up.

Smells like Lehman 2.0
Do you have this in a link? Next month? Wow. When that happens...IF China undercuts us, everyone will flock to them to save money and show their disdain for a Trump led America. I always wondered if Trump wasn't installed just as a tool to bring down any conservative platform in America and bring about long-lasting Dem/Prog/Marxist rule....
 

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#51
May not be so easy to get out of the dollar contract. In fact MOon of Alabama conversations even Russia uses more dollars than rubles. Because of the stability of the USD, the con has been fostered for decades, not one in a million can easily understand the con.

Every time there is a currency crisis, say Venezuela, it's pay day for the USD, so much more is the USD value goes up against the native currency.

My conjecture is that the USD has been far more successful and been more widely accepted than the pound sterling given that the world economy has been integrated much more in this century. The problem then becomes no one in the world would like their savings evaporate to support some unknown nascent fiat. The known devil is better than the unknown future.
 

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#53
May not be so easy to get out of the dollar contract. In fact MOon of Alabama conversations even Russia uses more dollars than rubles. Because of the stability of the USD, the con has been fostered for decades, not one in a million can easily understand the con.

Every time there is a currency crisis, say Venezuela, it's pay day for the USD, so much more is the USD value goes up against the native currency.

My conjecture is that the USD has been far more successful and been more widely accepted than the pound sterling given that the world economy has been integrated much more in this century. The problem then becomes no one in the world would like their savings evaporate to support some unknown nascent fiat. The known devil is better than the unknown future.
That makes sense when taken into context of why the CIA tries to destabilize many nations - it's so that the elite can continue to prop up the dollar!!!
 

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Economics is a "con" (confidence) game. Something only has value if people believe it has value (this goes for gold, also). The stock market is really a study in psychology. Why are declines twice as swift as rises? Because FEAR is twice the motivator that GREED is. All trading (technical -- charting) is based upon herd mentality. People want to be the first to BUY what everyone else will eventually buy, and they want to be the first to SELL what everyone else will eventually want to sell. The trick is to GUESS which way the herd is going to run... OR IS IT...

Why predict the future (and "invest", or place your bets, accordingly) when you can CAUSE the future?

The HERD must not be shown the interbank lending chart. Those who pull the puppet strings at the Fed are the same ones who pull the puppet strings with the MSM. That is why the herd never heard about it... and must not. Therefore even the non-sheep, conspiracy-theory, nut-job, gold-bug types must be prevented from having access to the data.
 

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#56
M3 Monetary Aggregate was discontinued prior to the 2007/08 GFC. The reason it was discontinued was because it was unveiling the huge RE bubble that was growing out of control.

The Feds real job is to prevent the paper economy from ever returning to equalibrium. This is accomplished via throttling IR & commods.... A return to equalibrium would result in trillions upon trillions in funny money aggregates/substitutes vanishing into thin air.... Remember there is about $70 trillion dollar denominated credit/debt in play, of that the U.S. .gov has borrowed around $16tt.... but dont forget that Japan, China, England, Germany, etc. are also borrowing from the dollar denominated credit supply of $70 tt ..... How does the $ denominated credit supply grow? Its a function of bubble economics. Credit Cards, Mortgages, Student Loans, Auto Loans, Stock & Bond Markets, & WAR, etc. all play there respective parts in this continuously expanding & growing credit game thats played around the world.

The biggest risk to the U.S. is when the U.S. consumer can no longer grow the debts by the required volumes... Then & only then COULD China possibly begin to replace dollar denominated credit when 1.4bb Chinamen begin applying for credit.... before that can happen, China must first build the inftrastructure & institutions to handle & manage the volumes..... The $ game is safe at least for the time being.

Dont really know what the Fed is up to by discontinuing the Inter-bank lending, but I suspect its to cover-up the next move by the big banks to cannabalize the small banks & credit unions.... Which is easily accomplished by denying the small institutions to overnight & short term funding needs. A walk to the Feds discount window leads to a certain death.

JMO

s107077024101212055736457545247197.gif
 

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@ SLV ..... The word economics grew out of post Napoleonic Wars around 1805. Napolean had amassed a great war chest of gold that he thought insured a defeat over England, as the Crown was illiquid & did not possess the money to fight the war. The Crown with no other alternatives began confiscating war materials from commerce & the general public. When they did this they issued a promisory note to the provider of the goods and/or services.

To Napoleans surprise, he was defeated @ Waterloo.... For the first time in modern warfare a war was not won with money, but with resources.

After the war the Crown could now repay commerce & the general public for the provisions that were confiscated. A system of repayment was installed.... the system became known as the economic system, and the persons that operated the system became known as economists. As these systems began spreading .govs realized they no longer needed specie money to defend their geographic boundaries, domestic & foreign interests. They realized they needed real resources.

Thus "economy" is basically the defining of the amount of resources that can be directed from commerce & the general public into the .govs purse to achieve .govs operations, mandates & defense. Economics began to gain greater control around 1849 when Marx, etc. et al began proposing the centralization of resources by .gov. By this means .gov would hold the levers of production and would possess the first claim as sovereign on the production in times of war & national emergency.

Once you understand the history, nature & etimology of the words "economy" & "economist" it sheds a new light on the likes of Paul Krugman, etc. et al.. Private economist now work to predict the future needs & confiscations of .govs to limit exposure or even wholey avoid these burdens. In many ways the Fed Reserve Board of Governors represents the council of centralized economists, as thru their actions they either decide or possess a tremendous influence upon general macro market activities & the financial & confiscatory resource policies of the U.S. .gov..... The words economy & economist have entirely new meaning when one understands how an economic SYSTEM was developed. Gold was no longer useful in the .gov planned centralized economies, so it was demonetized and replaced with fiat tokens. When we look under the hood, we find six of the seven faces of Karl Marx!!! But its hidden really well.... Secondly we can also understand why the Fed MUST perpetually keep the economy in a disequalibrium via bubbles & other monetary policies. They are directing resource exploitation & the production of semi & finished goods thru the "just in time" price system, etc....
 

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#58
The biggest risk to the U.S. is when the U.S. consumer can no longer grow the debts by the required volumes... Then & only then COULD China possibly begin to replace dollar denominated credit when 1.4bb Chinamen begin applying for credit.... before that can happen, China must first build the inftrastructure & institutions to handle & manage the volumes..... The $ game is safe at least for the time being.

Dont really know what the Fed is up to by discontinuing the Inter-bank lending, but I suspect its to cover-up the next move by the big banks to cannabalize the small banks & credit unions.... Which is easily accomplished by denying the small institutions to overnight & short term funding needs.

View attachment 99429
So you think this may be just part of a move to monopolize the smaller banks? Could be.

Credit is money and China is building that needed infrastructure:


China is like a big ant colony. Someone gonna get rid of their queen bee before they spread over the whole back yard of the world.
 
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#59
Economics is a "con" (confidence) game. Something only has value if people believe it has value (this goes for gold, also). The stock market is really a study in psychology. Why are declines twice as swift as rises? Because FEAR is twice the motivator that GREED is. All trading (technical -- charting) is based upon herd mentality. People want to be the first to BUY what everyone else will eventually buy, and they want to be the first to SELL what everyone else will eventually want to sell. The trick is to GUESS which way the herd is going to run... OR IS IT...

Why predict the future (and "invest", or place your bets, accordingly) when you can CAUSE the future?

The HERD must not be shown the interbank lending chart. Those who pull the puppet strings at the Fed are the same ones who pull the puppet strings with the MSM. That is why the herd never heard about it... and must not. Therefore even the non-sheep, conspiracy-theory, nut-job, gold-bug types must be prevented from having access to the data.
:oriental:
 

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#60
So you think this may be just part of a move to monopolize the smaller banks? Could be.

Credit is money and China is building that needed infrastructure:


China is like a big ant colony. Someone gonna get rid of their queen bee before they spread over the whole back yard of the world.
If I was guessing, and I am, I would put Chinas institutional growth & authority at about the same place the U.S. was in 1890.

It requires some time for public institutions to gain hold, that said modern communications, computing, education & propaghanda are much faster now then they were back then. Thus one can easily speculate that Chin institutional growth & authority is on a fast track... even on a fast track its still gonna require 30 - 50 yrs before they can even consider replacing the $ system.... And I'm not so sure they actually want to replace the $ system, instead of just watching it erode away & die of its excesses & waste. At any rate its gonna be a while before they can legitimately challenge the Western Alliance & its military branch NATO. I think it would be a huge mistake to discount all of the social, political, economic & financial controls the Western Alliance uses & employs today.... which is exactly the controls that any serious challenger must create prior to challenging the Western Alliances reserve $ currency, etc.. Political bonds thru Military & Trade Treaties & Agreements require years of trust to be efficiently built & created ..... The Chins have a long way to go in all of these areas... IMO
 

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#61
.... even on a fast track its still gonna require 30 - 50 yrs before they can even consider replacing the $ system.... And I'm not so sure they actually want to replace the $ system, instead of just watching it erode away & die of its excesses & waste. At any rate its gonna be a while before they can legitimately challenge the Western Alliance & its military branch NATO.... IMO
You should check into their recent advances. Over the last 30 years they've completely captured manufacturing. They are the only true creditor nation left on the planet. They've moved so many people up the ladder, there is no comparison even close throughout history. Over the last 10 years, there's been a pick up in their consolidation of power, their financial safety (both public and private sectors) and their agreements with other nations.

They don't need to fight the West. They are going to win the game with money and with manufacturing. They invented paper money and know the art of war very well. They have actually already won, it's just the end game which is playing out.


They don't spend half their budget on bombs, they spend it on bullet trains...

List of high speed trains
https://en.wikipedia.org/wiki/List_of_high-speed_trains

The 2 trains the USA has on that list run at half the speed of those in China and one is going to be a replacement for the other due in 2022.

There is simply no comparison to what China has accomplished over the last 35 years. While the USA has allowed wealth and blood to be lost and the middle class to move into the lower class, China has moved hundreds of millions of people from poverty into a middle class.
 
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You should check into their recent advances. Over the last 30 years they've completely captured manufacturing. They are the only true creditor nation left on the planet. They've moved so many people up the ladder, there is no comparison even close throughout history. Over the last 10 years, there's been a pick up in their consolidation of power, their financial safety (both public and private sectors) and their agreements with other nations.m

They don't need to fight the West. They are going to win the game with money and with manufacturing. They invented paper money and know the art of war very well. They have actually already won, it's just the end game which is playing out.


They don't spend half their budget on bombs, they spend it on bullet trains...

List of high speed trains
https://en.wikipedia.org/wiki/List_of_high-speed_trains

The 2 trains the USA has on that list run at half the speed of those in China and one is going to be a replacement for the other due in 2022.

There is simply no comparison to what China has accomplished over the last 35 years. While the USA has allowed wealth and blood to be lost and the middle class to move into the lower class, China has moved hundreds of millions of people from poverty into a middle class.
Hate to inform you, but the Chin miracle is & was built & constructed by Western finance, technology & resources... They essentially work for the Western Powers. If the western financial system cut them off, this would quickly send them back to a huts & rice paddy agrarian economy.... Indeed after decades of Mao, they had no capital, all of the capital they received came from them selling their souls & soles to the West....
 

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#64
Hate to inform you, but the Chin miracle is & was built & constructed by Western finance, technology & resources... They essentially work for the Western Powers. If the western financial system cut them off, this would quickly send them back to a huts & rice paddy agrarian economy.... Indeed after decades of Mao, they had no capital, all of the capital they received came from them selling their souls & soles to the West....
Maybe we did make them. I don't believe it but even if we did, that was then and this is now. They're already made.

They sell less than 20% of their products to the USA. Their own consumption OF THEIR OWN manufactured products is growing. Our consumption of OUR OWN manufactured products has declined a lot over the last several decades. They can turn the tables on the financial system just the same way we could. I don't think anyone wants a nuclear option.

If we cut them off, as you say, which I'm not sure what that statement really means, I bet they still will continue to do just fine. But of course that is just my opinion and since I'm not sure what you mean by cutting them off, I guess I could be wrong.

They don't spend blood and treasure all around the world. They don't have trade deficits. They keep their gold and promote it to their own people. I'm not sure how those can be seen as things that we hold over them and are somehow advantageous for us not them. But I'm cool with agreeing to disagree. Please carry on...
 

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#65
amazing how few people actually understand that BB,

but would instead prefer to keep trumpeting the nonsensical programming they are fed by others.
I'm looking at results and the results I see are blood and treasure lost and a middle class in decline in the USA, something which I believe could have been turned around long ago.

In terms of understanding what BB said, maybe he needs to point to a book on the subject I could read or maybe he could explain things in more detail. Because I don't see how we "own" them and he hasn't provided enough information to prove that.
 

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#66
China has been owned by the Anglo-American "Establishment" since prior to the opium wars.... Read "Tragedy and Hope" by Carroll Quigley then get back with me....

FB_IMG_1518642167775.jpg
 

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#67
Looks like you have this all fingerd out, BB? And your argument seems tight.

So, next World War?

Any theory on this subject?
 

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Looks like you have this all fingerd out, BB? And your argument seems tight.

So, next World War?

Any theory on this subject?
I dont think or believe there is gonna be another world war that mimics WWI & WWII. We will see regional & low intensity conflicts, but no more "all out wars." I say this because WWI & WWII were conflicts between the major powers of western civilization battling over the supremecy to rule the civilization. Outside nations & civilizations that had trade & political ties with the warring western powers were dragged into the conflict because of political association & trade alliances, etc..... Today, the west is led by the universal empire of the United States. Western civilization has unified into a single political, economic, financial & most importantly a stron military alliance. The west has also made political, trade & military alliances with various outside nations of various civilizations, for instance Japan (Asian Civ), Saudi Arabia & Turkey (Islam Civ) & also former Soviet bloc nations (Orthodox Civ), etc.... There are no contenders to stand up to the economic & military powers of the west now or anytime in the near future. Hence the chances of a WW among the great civilizations are very low.

As for China, IMO the Western powers financed & technically supported the rise of world production & jobs to China for various reasons.... The world sends their raw ore & unfinished goods to mainland China to be smelted, refined & finished. Thus mainland China & its labor force is fully exploited environmentally as these economic activities leave behind all kinds of environmental waste & poisons.... air, water & land pollutions while North America, Europe, Middle East & Africa & their peoples are exempt from the toxic wastes & health damages concomittent with a global manufacturing base. In many ways the West has declared a low intensity war with China by exporting global production into their political & geographic jurisdiction. The Chin population will experience rising rates of cancer & various diseases as the toxic pollutants spread across their lands & waters.

A most interesting phenomena has been learned considering civilizations, namely that "expansion prevents contraction." Once contraction begins it spells the inevitable end of that civilization... thus we can observe western policy makers always engineering outside nations to join the western civilization system. This was what occured in Japan post WWII & has been the ongoing policy of the west to gradually bring new players into an alliance with the western system..... Which is precisely why the $ remains stable... Once a nation & its leaders join the $ club its almost always in their best interest to preserve its use as THE reserve currency if they want to perpetuate a rising standard of living to remain in political power.

There is much more I could point out, but my point is that there isnt much credibility to most of the propaghanda predicting doom for tbe west.... the west remains very strong & continues to grow stronger.... "Who can make war with the beast?" No one at this time!
 

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#69
I dont think or believe there is gonna be another world war that mimics WWI & WWII. We will see regional & low intensity conflicts, but no more "all out wars." I say this because WWI & WWII were conflicts between the major powers of western civilization battling over the supremecy to rule the civilization. Outside nations & civilizations that had trade & political ties with the warring western powers were dragged into the conflict because of political association & trade alliances, etc..... Today, the west is led by the universal empire of the United States. Western civilization has unified into a single political, economic, financial & most importantly a stron military alliance. The west has also made political, trade & military alliances with various outside nations of various civilizations, for instance Japan (Asian Civ), Saudi Arabia & Turkey (Islam Civ) & also former Soviet bloc nations (Orthodox Civ), etc.... There are no contenders to stand up to the economic & military powers of the west now or anytime in the near future. Hence the chances of a WW among the great civilizations are very low.

As for China, IMO the Western powers financed & technically supported the rise of world production & jobs to China for various reasons.... The world sends their raw ore & unfinished goods to mainland China to be smelted, refined & finished. Thus mainland China & its labor force is fully exploited environmentally as these economic activities leave behind all kinds of environmental waste & poisons.... air, water & land pollutions while North America, Europe, Middle East & Africa & their peoples are exempt from the toxic wastes & health damages concomittent with a global manufacturing base. In many ways the West has declared a low intensity war with China by exporting global production into their political & geographic jurisdiction. The Chin population will experience rising rates of cancer & various diseases as the toxic pollutants spread across their lands & waters.

A most interesting phenomena has been learned considering civilizations, namely that "expansion prevents contraction." Once contraction begins it spells the inevitable end of that civilization... thus we can observe western policy makers always engineering outside nations to join the western civilization system. This was what occured in Japan post WWII & has been the ongoing policy of the west to gradually bring new players into an alliance with the western system..... Which is precisely why the $ remains stable... Once a nation & its leaders join the $ club its almost always in their best interest to preserve its use as THE reserve currency if they want to perpetuate a rising standard of living to remain in political power.

There is much more I could point out, but my point is that there isnt much credibility to most of the propaghanda predicting doom for tbe west.... the west remains very strong & continues to grow stronger.... "Who can make war with the beast?" No one at this time!
Does the U.S. & western civilization have problems? Indeed we d.... the absolute power of the west has been its uncanny ability to quickly & efficiently solve problems as it grew & grows. Consider the problems faced today by Islamic, Orthodox, Asian & African civilizations, societies, cultures & their established institutions. Now consider the problems face by the western $ bloc nations.... Western problems are minute compared to the problems & ideologies of all the other remaining civilizations...... My bet is on the Western nations.
 

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#70
You should check into their recent advances. Over the last 30 years they've completely captured manufacturing. They are the only true creditor nation left on the planet. They've moved so many people up the ladder, there is no comparison even close throughout history. Over the last 10 years, there's been a pick up in their consolidation of power, their financial safety (both public and private sectors) and their agreements with other nations.

They don't need to fight the West. They are going to win the game with money and with manufacturing. They invented paper money and know the art of war very well. They have actually already won, it's just the end game which is playing out.


They don't spend half their budget on bombs, they spend it on bullet trains...

List of high speed trains
https://en.wikipedia.org/wiki/List_of_high-speed_trains

The 2 trains the USA has on that list run at half the speed of those in China and one is going to be a replacement for the other due in 2022.

There is simply no comparison to what China has accomplished over the last 35 years. While the USA has allowed wealth and blood to be lost and the middle class to move into the lower class, China has moved hundreds of millions of people from poverty into a middle class.
Lots of manufacturing has been offshore driving to China and the quality has decreased significantly. I've seen the issues with it first hand in both automotive and aerospace.
 

keef

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#71
Come on, BB. We come here for the doom and the GLOOM.

Surely there has to be some cinch in the Beast's Armor we can exploit?

I read over at ZeroHedge, then heard it again on some economics post that the FED injected $11 billion into the banking system last week.

Powell got a look at that first week of DOW dipping and pulled out his syringe REAL QUICK.

Shoot me up, AL


Yeppers, it was "Panic in Needle Park" for Jerome Powell last week. No way can they stop QE.
Once a junkie... :zombie:

So as long as they can print money without hyperinflation it's game on? And they do a great job of it.
 

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So as long as they can print money without hyperinflation it's game on? And they do a great job of it.
Seems impossible to continue pumping so much new money into the system without hyperinflation eventually kicking in.

I'd prefer hyperinflation much more than I'd prefer deflation.
 

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Come on, BB. We come here for the doom and the GLOOM.

Surely there has to be some cinch in the Beast's Armor we can exploit?

I read over at ZeroHedge, then heard it again on some economics post that the FED injected $11 billion into the banking system last week.

Powell got a look at that first week of DOW dipping and pulled out his syringe REAL QUICK.

Shoot me up, AL


Yeppers, it was "Panic in Needle Park" for Jerome Powell last week. No way can they stop QE.
Once a junkie... :zombie:

So as long as they can print money without hyperinflation it's game on? And they do a great job of it.
Seems rather amazing to me that anyone would even begin questioning the U.S. universal empire of the West when its universal CB can politically, economically & financially issue $16+ trillions instant credit on demand AND the political branch can at the same time conduct over $4+ trillions in various domestic stimulus schemes.... AND nothing crashed or collapsed after these events..., but was rather absorbed into the system to facilitate another round of economic growth & expansion..... Now thats quite impressive !!!! Why would anyone bet against this monopoly cartel unless they are fools???
 

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#74
& most importantly a stron military alliance.
Is this alliance really that strong or does it just have the appearance of strength in the US propaganda networks? I almost never hear of any other nation making any advances against terrorism except the US and Russia. Most other countries have very few troops in the game and hem and haw over contributing to the US war machine and paying their nato dues. I do think the "Alliance is a one way street for the most part. The US war machine will go anywhere it's needed. The rest of the alliance? I'm not so sure they will do much unless they are directly attacked. I suppose we could test that pretty easily. We have been over run on our southern border. somewhere between 10 and 20 million illegals in the US already.. By any standards thats an invasion although war has never been declared. I wonder would our allies send us a few hundred k troops to help protect our southern border? Since we can't have foreign troops on US soil, how about our troops come home and protect the border and the rest of the alliance sends troops to the ME.
Another problem I see with the alliance is Europe is overrun with terrorists, I mean refugees from the ME, lots of them or most of them muslim.. Not sure how thats going to play out in the future but once they make their way into the armed services over there I would imagine it's going to be difficult to get them to betray their real homeland.. Just a guess though..
One other issue I see is the US just wastes money on the war machine. The F35 and some of these new high tech ships are a great example. I've never read anything great about the F 35 and from what I can tell, all these new ships are just as vulnerable as the old ones. A missile or 2 and they are reef building material. They look kool and some natives on bora bora probably think aliens have landed but with all their advanced gear they still can't avoid a ship collision with a cargo ship.
In contrast how many fighters or warships can China build for the same money? Lower input costs across the board and a huge manufacturing base makes it kinda easy to catch up. Doing a quick search it appears that the Chinese J 20 is about 1/3 of the cost of the f35. It can also outmaneuver the f35 and the missiles the f35 carry are kinda obsolete since they can be jammed pretty easily. Just a huge waste of money on the part of the US.
All of that probably doesn't matter as long as there is no major conflict. Looking at where the US has bases though, if I were Russia and China I would certainly be concerned. They are pretty much surrounded at this point. On the other hand, China has 1.3 billion people. Thats a shitload of bullets, bombs or whatever you want to throw at them. Imagine if we could take all of the US and Canadian population, land them on Chinas border and send them in to fight. After we are all killed they still have a billion people left over. They just have a staggering number of people. Of course wars aren't fought like that. If we ever did go for China it would have to be with Nukes.

I think your pretty much spot on with the rest of your stuff BB. I do think the US absorbs inflation through inflated military gear, welfare and social programs. I don't see any of that stopping anytime soon and in fact I think thats why they are talking about a minimum monthly stipend for everyone. Gets the system growing even more and as long as everyone is keeping up, more or less, no large group will complain enough to make a difference.
 

Area51

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#75
Is this alliance really that strong or does it just have the appearance of strength in the US propaganda networks? I almost never hear of any other nation making any advances against terrorism except the US and Russia. Most other countries have very few troops in the game and hem and haw over contributing to the US war machine and paying their nato dues. I do think the "Alliance is a one way street for the most part. The US war machine will go anywhere it's needed. The rest of the alliance? I'm not so sure they will do much unless they are directly attacked. I suppose we could test that pretty easily. We have been over run on our southern border. somewhere between 10 and 20 million illegals in the US already.. By any standards thats an invasion although war has never been declared. I wonder would our allies send us a few hundred k troops to help protect our southern border? Since we can't have foreign troops on US soil, how about our troops come home and protect the border and the rest of the alliance sends troops to the ME.
Another problem I see with the alliance is Europe is overrun with terrorists, I mean refugees from the ME, lots of them or most of them muslim.. Not sure how thats going to play out in the future but once they make their way into the armed services over there I would imagine it's going to be difficult to get them to betray their real homeland.. Just a guess though..
One other issue I see is the US just wastes money on the war machine. The F35 and some of these new high tech ships are a great example. I've never read anything great about the F 35 and from what I can tell, all these new ships are just as vulnerable as the old ones. A missile or 2 and they are reef building material. They look kool and some natives on bora bora probably think aliens have landed but with all their advanced gear they still can't avoid a ship collision with a cargo ship.
In contrast how many fighters or warships can China build for the same money? Lower input costs across the board and a huge manufacturing base makes it kinda easy to catch up. Doing a quick search it appears that the Chinese J 20 is about 1/3 of the cost of the f35. It can also outmaneuver the f35 and the missiles the f35 carry are kinda obsolete since they can be jammed pretty easily. Just a huge waste of money on the part of the US.
All of that probably doesn't matter as long as there is no major conflict. Looking at where the US has bases though, if I were Russia and China I would certainly be concerned. They are pretty much surrounded at this point. On the other hand, China has 1.3 billion people. Thats a shitload of bullets, bombs or whatever you want to throw at them. Imagine if we could take all of the US and Canadian population, land them on Chinas border and send them in to fight. After we are all killed they still have a billion people left over. They just have a staggering number of people. Of course wars aren't fought like that. If we ever did go for China it would have to be with Nukes.

I think your pretty much spot on with the rest of your stuff BB. I do think the US absorbs inflation through inflated military gear, welfare and social programs. I don't see any of that stopping anytime soon and in fact I think thats why they are talking about a minimum monthly stipend for everyone. Gets the system growing even more and as long as everyone is keeping up, more or less, no large group will complain enough to make a difference.

Lots of good points but I disagree with the comment about having to go nuclear in any war with China.

In the event of a real war - - not the phony charades currently going on in the Middle East - - I don't see nuclear as a great option. The enemy is going to be aware of an incoming missile and could intercept. And of course there'd be retaliatory nuclear strikes made. Assuming there's a side that survives, what's the quality of life going to be when the planet is glowing?

Biological would seem to be far more effective. With a high grade strain of something ultra contagious like ebola, there's no warning until it goes viral and by then it's too late to do anything. You'd need a few dozen agents willing to go on a suicide mission and infect themselves once they've infiltrated the country, but all they'd need to do would be to walk around the subway or sports events coughing, sneezing and slobbering. The high population would be actually work against them.
 
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#76
Once a nation & its leaders join the $ club its almost always in their best interest to preserve its use as THE reserve currency if they want to perpetuate a rising standard of living to remain in political power.
Maybe until now? Why does the fed need to own more than 4 trillion in assets? Maybe the exploited countries now have the western banking string pullers by some short hairs and are now gaming the gamers.

Seems to be less of a concern as the Chins hold nearly 1 trillion less US dollars thus far . . .


. . . as the trade deficit keeps growing


Seems rather amazing to me that anyone would even begin questioning the U.S. universal empire of the West when its universal CB can politically, economically & financially issue $16+ trillions instant credit on demand AND the political branch can at the same time conduct over $4+ trillions in various domestic stimulus schemes.... AND nothing crashed or collapsed after these events..., but was rather absorbed into the system to facilitate another round of economic growth & expansion..... Now thats quite impressive !!!! Why would anyone bet against this monopoly cartel unless they are fools???
Easy to question since they lost control in a major way 10 years ago. To save themselves helicopter money was thrown in desperation and all those with failing skin in the game hungrily scooped up all that offered money. The American people have benefited at least short term because the debt system of continual expansion was saved and some variation of Mad Max was averted.

Do you think in the next western banking crises that the central banks of countries who know they are being used will step up to the plate? I read China and Russia have been taking steps that could allow them to step aside when the next crises arrives.

Like so many worldwide companies that got their start here in the states and still pretend to Americans that they care about America and the unemployed American worker, why would the banksters have any more allegiance to the west since they also play on both sides of the aisle? Seems that during the next crises the banksters could easily abandon the west (or pretend not to) and move east until it is time to rinse and repeat.
 

Cigarlover

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#77
Lots of good points but I disagree with the comment about having to go nuclear in any war with China.

In the event of a real war - - not the phony charades currently going on in the Middle East - - I don't see nuclear as a great option. The enemy is going to be aware of an incoming missile and could intercept. And of course there'd be retaliatory nuclear strikes made. Assuming there's a side that survives, what's the quality of life going to be when the planet is glowing?

Biological would seem to be far more effective. With a high grade strain of something ultra contagious like ebola, there's no warning until it goes viral and by then it's too late to do anything. You'd need a few dozen agents willing to go on a suicide mission and infect themselves once they've infiltrated the country, but all they'd need to do would be to walk around the subway or sports events coughing, sneezing and slobbering. The high population would be actually work against them.
We've already detonated over 2000 nukes and we are what life looks like afterwards..Of course we didn't drop them on cities so that changes some things..
The only problem with biological is it doesn't stop at the borders. There's daily flights back and forth to China so it would come home to roost pretty quickly.
 

BarnacleBob

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#78
Maybe until now? Why does the fed need to own more than 4 trillion in assets? Maybe the exploited countries now have the western banking string pullers by some short hairs and are now gaming the gamers.

Seems to be less of a concern as the Chins hold nearly 1 trillion less US dollars thus far . . .


. . . as the trade deficit keeps growing



Easy to question since they lost control in a major way 10 years ago. To save themselves helicopter money was thrown in desperation and all those with failing skin in the game hungrily scooped up all that offered money. The American people have benefited at least short term because the debt system of continual expansion was saved and some variation of Mad Max was averted.

Do you think in the next western banking crises that the central banks of countries who know they are being used will step up to the plate? I read China and Russia have been taking steps that could allow them to step aside when the next crises arrives.

Like so many worldwide companies that got their start here in the states and still pretend to Americans that they care about America and the unemployed American worker, why would the banksters have any more allegiance to the west since they also play on both sides of the aisle? Seems that during the next crises the banksters could easily abandon the west (or pretend not to) and move east until it is time to rinse and repeat.
You say China holds almost $1 trillion U.S. dollars.... I would & do argue that such a statement is erroneous & false pursuant Section 16 of the Federal Reserve Act.

https://www.federalreserve.gov/aboutthefed/section16.htm

There is about $1.6 trillion of physical FRN's & coins in circulation. The physical currency per Section 16 is the obligation of the U.S.. Since there is only $1.6 tt in physical circulation, whatever China is holding, its axiomatic it isnt dollars but rather dollar substitutes and/or claims for physical dollars. A U.S.T. is but a CLAIM on the FUTURE production & circulation of dollars. The data issued by both the Fed & U.S. Treasury admits this when they report the difference in the amount of physical currency in circulation & the claims (U.S.T.'s) issued by the U.S. Treasury. The buyer & holder of the U.S.T. claim contract knows it is irredeemable at the time of purchase in current physical currency & coin. This is self evident! They also know that the nature of the U.S.T. obligation & the value thereof is subject to market forces & not the U.S. Treasury. If a holder of U.S.T.'s begins selling in bulk upon the market, the market knows there is only $1.6 tt in existence & therefore the Bonds cannot currently be redeemed at face value, thus the claim becomes highly discounted at a loss to the seller. Hence it is not in the interest of a large institutional holder such as BOJ or BOC to flood the market with current irredeemable U.S.T. contract claims. It must also be noted that the U.S. Treasury is under no obligation to redeem these claims in current currency or coin. This escape clause means the U.S.T. issuance & obligation is pushed far, far into the future.... at least until there is an adequate supply of circulating currency to extinguish the claimed obligation. It is for these reasons that the U.S. Treasury can legally literally "roll-over" these notes & bonds ad infinitum without ever being forced to redeem them.... Its like accepting a check that you know is irredeemable, if you knowingly accept a bad check (a claim on currency & coin) you are at the mercy of the issuer to redeem the obligation. If you tell the judge you knowingly & willingly accepted a bad check, he will dismiss your claim to filfill the obligation... because at the time of acceptance, you knew the check was not redeemable but you accepted it anyway.... the obligation still exists, but the terms of redemption now belong to the issuer. Sovereign & Corporate bonds are not much different than issueing bad checks on an insuffiently funded account. The reason the bond was issued in the first place is the same reason why a person would issue an NSF check, there account is unfunded! The difference is the bond (bad check) pays a scheduled interest rate obligation to the acceptor & holder, whereas the plain check does not!

All this nonsensical talk about Saudi's, Chins & Nippons selling off their U.S.T. holding en masse is complete utter nonsense.... note the French or Brits were faced with this dillema around 1970 when they both demanded gold for their dollar denominated treasury bonds. The U.S. Treasury said they couldnt redeem the obligations in CURRENT gold and Nixon told them if they pushed the issue the bonds they held would be severely punished by the markets leaving their claims worthless or highly devalued.... They accepted the ultimatum and terminated their claims on gold. Same hold true today in the fiat currency credit system. Like BW gold, physical $ currency remains so scarce that there isnt an adequate supply to redeem 90+% of the current obligations.

Secondly, the U.S. Congress at its pleasure can order the U.S. Treasury to print & produce whatever amount of physical dollars it requires at ANY time. Congress can at its pleasure create these dollars to meet their redemption obligations, if however they did, such an action would collapse the value of the currency, currency substitutes & dollar denominated credit rendering the bonds & notes worth much less or even valueless. However Congress has the authority at anytime per Art. I, section 8 to create & regulate any amount of currency it wants to, hence they can fulfill whatever obligations they deen necessary without any problems.

Thirdly, Section 16, Fed Reserve Act states:

"They (FRN's) shall be redeemed in lawful money on demand at the Treasury Department of the United States"

Who decides what constitutes "lawful money"? Congress does! If Congress decides lawful money is wampum, wooden nickles or iron slugs, then its redeemable dollar denominated debts can be redeemed in these mediums... Possessing this power & authority means Congress has no problem if it is forced to redeem its obligations.... it may come at the cost of crashing the currency, but the REAL cost & burdens are born upon the holders of the claims..... Goes back to the saw adage "If you owe the bank $10,000 & cannot pay you have a problem, if you owe the bank $10 million & cannot pay, the bank has a problem." Same applies to China, Japan, Saudis, etc.... if the U.S. cannot pay, THEY have a problem, not the U.S.. Therefore as France & England learned circa 1970, its not in their best interest to force full redemption. If you want to receive current value for your bonds it must be derived & extracted via time value thru interest rates....

Fourthly, I fail to understand what China could or would achieve by crashing the dollar or the dollar system. Its already progressing at a fast pace globally using this system.... Why would they destroy the goose that is laying golden eggs for them??? That would be absurd.....

I'm exhausted from hearing all the crap about how great China is & the economic & military threat it represents.... COMPLETE BULL SHIT it is! Propaghandized by the MIC, Admirals, Generals & special interests protecting or seeking higher budgets & all kinds of sellers trying to cash in on a new paradigm of fake fears.... I like my doom as much as the next guy, but this doom is just way to unbelievable to even consider as possible within the next 30 - 50 years....

JMO

Section 16. Note Issues
1. Issuance of Federal Reserve notes; nature of obligation; where redeemable
Federal reserve notes, to be issued at the discretion of the Board of Governors of the Federal Reserve System for the purpose of making advances to Federal reserve banks through the Federal reserve agents as hereinafter set forth and for no other purpose, are hereby authorized. The said notes shall be obligations of the United States and shall be receivable by all national and member banks and Federal reserve banks and for all taxes, customs, and other public dues. They shall be redeemed in lawful money on demand at the Treasury Department of the United States, in the city of Washington, District of Columbia, or at any Federal Reserve bank.
 

Scorpio

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#79
put those 2 charts together from the post above,

their exports or fiat generation is increasing,
and their us paper assets are down by over $1T

seems to me they are burning cash big time trying to keep the dream alive and hidden

they are spending it as fast as it is coming in and then some
 

Uglytruth

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#80
Just because the data has been discontinued don't mean it don't exist................. it means you ain't gettin it!

Knowledge is power......

In an 1817 letter to George Ticknor, Jefferson equated knowledge with power, safety, and happiness:

[T]his last establishment [a state university] will probably be within a mile of Charlottesville, and four from Monticello, if the system should be adopted at all by our legislature who meet within a week from this time. my hopes however are kept in check by the ordinary character of our state legislatures, the members of which do not generally possess information enough to percieve the important truths, that knolege is power, that knolege is safety, and that knolege is happiness.2