Tuesday, January 12, 2016

The Biggest Bubble of Them All


Please read this piece completely before doing this--- open up a new window on your machine and find:
usdebtclock.org  ...I know, it sounds boring; trust me, it's not.  This is not the old Debt Clock.  This one has many, many categories of both public and private debt...and other important factors.

Take note of the following---

1.  Scroll down to the second to the last line of numbers.  Notice what "Corporation Assets" are doing as compared to "Household Assets".  You have to look carefully and take your time.  Don't focus only on the last digits in the trillions of dollars number; also watch the middle three digits until they change.  Supposedly, this is all in real time.

2.  Go up one line and find "US Debt Held by Foreign Countries"...decreasing relatively rapidly.  They are dumping US dollars.  According to Ron Kirby of Kirby Analytics, the total number of dollars dumped in the last 8-9 months is just a bit shy of one trillion.  Who is "buying" the debt?...probably the Fed Reserve.  That's more monetizing of our debt, which is unsustainable.

3.  Go up two more lines of numbers to "Money Creation" and all the way to the right find "Currency and Credit Derivatives 2016".  Last I looked, the total was well over $478 TRILLION.  That's many, many times more than the entire world's Gross Domestic Product (GDP).  Derivatives are a type of gambling bet.  Given the numbers, all losses could not possibly be covered...which is what happened in 2008.  That's why things like the Bespoke Tranche Opportunity not only are ridiculous, but harmful/dangerous as well.  Furthermore, they drain money from what could have been investments in means of production...the expansion of factories, or new businesses.

For info on the Debt Clock, scroll all the way down and click on "About" over toward the right side.
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On a different note, there's a MUST-SEE documentary on Netflix (and probably elsewhere online):  "Money for Nothing".  It's a partial history of the Fed Reserve, showing how that institution---along with the Administrations of LBJ, Nixon, Carter, Reagan, Clinton, both the Bush men, and Obama---have contributed mightily to the economic ruination of the USA.  Yes, they all did some bit of good for extremely brief times, but overall their policies and actions have brought us economic disaster... unless you're Super-Rich.  If you don't agree, watch the film.

Not only my opinion.  Be Well

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