Wednesday, April 21, 2021

The Underlying Global Financial System And Global Economy Are In Serious Trouble

I want to put a place marker in here in case I don’t get any posts up within the next two weeks.  I’ve written for the last decade of three future dates that hold significance with regards to the devolution of this cycle with the final one being 2022; where I anticipated the US to lose its empire.  The roar is deafening right now that the US economy is going to explode higher and there have even been magazine covers recently comparing the next ten years to the roaring twenties of one hundred years ago. The US financial media, the US financial system, the economics profession and political governance in this nation are all filled with gross incompetence and institutionalized fraud on a scale that rivals the most horrendous examples of such societal risk and instability in human history.  Don’t kid yourself.  It’s no better anywhere else.  US empire has made the world in its image just like the Roman Empire.

The economic and financial worlds are likely entering a phase of risk not seen in the history of human civilization. And, as noted in one of my first posts sixteen years ago, when this cycle ends and US empire ends, the entire world will literally shudder and shake.  Cracks are starting to show and I expect the early effects of 2022 could start to reveal themselves as early as May of this year.  China and Asia’s credit default swaps are starting to rise (The Chinese economy like the US, EU and other corporate capitalist economies is a train wreck), global currencies have been falling against the dollar for years and many have started crashing against the dollar (those predicting the collapse of the dollar have absolutely no idea how the global economy works), short term rates (a sign of distress) have reached their lowest levels and the US banking system is a disaster regardless of the profits just reported by Wall Street. (Their core business is a disaster that has been bailed out and shoved full of continuous liquidity since the 2008 collapse and banks are minting money destroying the US economy and our society via corrupt financial trading (rigging/stealing), underwriting massive toxic investment banking and IPOs and destructive mergers & acquisitions.)

The US, and by extension, global financial system is a Ponzi scheme of the worst kind.  And, it has been building since the corporate takeover of our society more than a century ago. 

Just a reminder that one of the outcomes I am anticipating (with substantial analysis behind it), is that the stock market very well could disappear. And, that quantitative finance has left nothing more than mega corporations batting bets back and forth with quadrillions of dollars of useless paper derivatives. All enabled by endless non-economic Federal Reserve liquidity first provided under Reagan’s criminal tenure.  This and other dynamics could make stock market redemptions under major duress a near impossibility.  In other words, the last remaining mechanism that has propped up corporate capitalism, the illusion of paper wealth in the stock market, gives an appearance, but actually may become unredeemable under duress.  I’m not stating this will happen, but mechanics make it a possibility.

More on all of this in promised upcoming posts. 

posted by TimingLogic at 7:46 PM