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U.S. Economy Heads Towards Recession As Its Central Bank Takes Panic Measures To Protect Financial Markets

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U.S. Economy Heads Towards Recession As Its Central Bank Takes Panic Measures To Protect Financial Markets

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Written by Dr. Leon Tressell exclusively for SouthFront

  • US Federal Reserve bank makes emergency cut to interest rates
  • PMI figures show that America’s economy is contracting

Global stock markets have experienced roller-coaster levels of volatility over the last two weeks due to fears that the coronavirus is going to seriously impact the global economy.

On Tuesday, the US Federal Reserve panicked and introduced a 0.5% cut in interest rates. The last time it carried out such an emergency measure was in late 2007 which failed to avert the stock market crash of 2008.

This panic measure failed to reassure financial markets with the major Wall Street indexes from the Dow Jones to the S&P recording major falls.

Financial analyst Wolf Richter has observed:

“By the stock market’s reaction today to the Fed’s shock-and-awe surprise 50-basis point rate cut – it should have caused stocks to soar, but caused them to plunge nearly 3% instead – it would seem that another such shock-and-awe event signals even more panic inside the Fed, and who knows how the stock market might react when it sees the Fed panicking.”

Over the last 10 days over $4 trillion in value has been wiped from US stock markets.

On the same day as the emergency rate cut the US Federal Reserve injected a record $120 billion into the short term debt market (repo).

Economist Steve St Angelo of the S RS Roco report has commented on the significance of these developments:

“Clearly, there is something SERIOUSLY WRONG in the Financial markets for the Fed to being injected $120 billion, the most since it started its Rep operations last September.

I believe investors and the market have no idea just how bad this Global Contagion will be like over the next 2-4 weeks… and longer. As I stated, don’t be surprised to see the Dow Jones Index lose 40-50% from its peak over the next month. Traders and Wall Street are going to get destroyed, and there is little they can do about it.”

Over the next few weeks we can expect further emergency measures from the US Federal Reserve and Congress. Media reports suggest that the US Congress is preparing a $9 billion spending package to help offset the impact of the coronavirus on the American economy.

All of these measures smacked of panic. We shouldn’t forget that Jerome Powell, the chair of the US Federal Reserve bank, keeps insisting that the fundamentals of America’s economy are sound and strong. Yet the measures he has introduced remind one strongly of the measures carried out by the Fed late 2007 on the verge of the great financial crisis.

We could add to this tale of woe regarding the world’s largest economy.

The latest IHS Markit flash for the U.S. revealed that output had contracted across the American economy during February.

Key findings from the PMI (Purchasing Managers Index) figures reveal that there was a contraction in business activity driven by notable declines in the service sector. New orders for private sector businesses fell for the first time since records were first collected in 2009.

  • Flash U.S. Composite Output Index at 49.6 (53.3 in January) which is a 76-month low.
  • Flash U.S. Services Business Activity Index at 49.4 (53.4 in January) which is a 76-month low.
  • Flash U.S. Manufacturing PMI at 50.8 (51.9 in January) which is a 6-month low.
  • Flash U.S. Manufacturing Output Index at 50.6 (52.4 in January) which is a 7-month low.

Commenting on the significance of the flash PMI data, Chris Williamson, Chief Business Economist at IHS Markit, said:

“With the exception of the government-shutdown of 2013, US business activity contracted for the first time since the global financial crisis in February. Weakness was primarily seen in the service sector, where the first drop in activity for four years was reported, but manufacturing production also ground almost to a halt due to a near-stalling of orders.

“Total new orders fell for the first time in over a decade. The deterioration in was in part linked to the coronavirus outbreak, manifesting itself in weakened demand across sectors such as travel and tourism, as well as via falling exports and supply chain disruptions. However, companies also reported increased caution in respect to spending due to worries about a wider economic slowdown and uncertainty ahead of the presidential election later this year.

“The survey data are consistent with GDP growth slowing from just above 2% in January to a crawl of just 0.6% in February.”

As Steve St. Angelo has noted the global contagion and its impact are only just beginning. Over the next few weeks and months expect a flurry of emergency measures by central banks and governments across the world as economic data goes from bad to worse.

In 2008 the global economy was saved from a deep depression by the massive stimulus measures carried out by the world’s two most powerful nations i.e. the US Federal Reserve spending trillions to bail out banks across the world and the Chinese government spending over $500 billion on a gigantic infrastructure programme that stimulated the global economy.

The combined measures of global central banks since the great recession of 2008 have served to drive global debt to over $250 trillion. This unprecedented level of debt, which can never be repaid, will only be added to by global central banks and governments over the next period.

Creating yet more debt is not going to solve problems of the global economy, which is afflicted by historic levels of wealth inequality, and has seen a gigantic wealth transfer from the 90% to the top 10% of the world’s population.

The growing problems of the world’s largest economy indicate the current business cycle, which is the longest on record, is rotten ripe for an economic contraction. The next recession is likely to be on a scale that is much worse than that seen during the 2008 crisis. It is likely to drive the American Empire into even more aggressive actions towards its rivals and competitors on the economic and geopolitical stage.

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  • Karen Bartlett

    This is it, folks.

    • Pave Way IV

      Why so gloomy, Karen? We at least got until the end of March. THAT’s when it will start being ‘it’, and will spiral down quickly from there. That’s when they’ll turn most of the internet off in the U.S. (except for ‘approved’ sites). It should be easy to round up known dissenters and anyone armed during the neighborhood sweeps for coronavirus detainees. Look for the MRAPs filled with jack-booted LE thugs doing their version of Fallujah clearing ops in your neighborhood. The DHS black wave. Hey – it’s for our own protection. Who wouldn’t want that?

      • Karen Bartlett

        Thanks, guy, that’s heartening. :)

    • Xoli Xoli

      Hi Karen google eyes of darkness -wuhan 400.

      • Karen Bartlett

        Ok.

        • Karen Bartlett

          Ok, did. That’s interesting. Too bad this isn’t a novel!

    • Concrete Mike

      Unless.your a.multi.millionnaire you have nothing to worry about.
      We survived.2008, i was just out of college then, we will survive 2020.

      I kinda enjoy watching wallstreet gamblers losing their shirts.

      • Karen Bartlett

        Are you sure? I would have thought it’s the little guy who would lose their shirts and the rich people who would survive.

        • FlorianGeyer

          Pension funds will be trashed as well.

        • zman

          He’s right and so are you. They lost their shirts and John Doe’s too. I’m lucky, I don’t have dime to spare (invest)….but I don’t have bit of debt either. The little guy loses when his pension fund (if they still exist) invests in gambling, lets a broker run their IRAs or whatever and has a mountain of debt. 2008 cost me not a cent…other than higher prices. However, my brothers and sister had GM preferred stock…it was the first time I ever heard of owners or preferred stock getting screwed…they are usually the ones paid first. Yeah, GM defaulted on it and they bit the bullet on that for sure. Imagine if the gov had given all that bailout money to individuals to keep their mortgages (as the banks were supposed to do, but didn’t) above water. Property values would not have plumited and the economy would never have crashed to the extent it did. But then the multinational vultures couldn’t have picked up choice real estate and stocks at fire sale prices, could they?

  • PZIVJ

    Fed leadership is weak in trying to keep stock markets and Trump happy. And ECB to follow suit?
    This problem is not financial (as in banks), and they should have kept their powder dry.
    Coronavirus will have an impact on consumer spending, and supply disruptions. They can not change this!
    Hopefully it will decrease when the flu season ends.

    • John Wallace

      Very true

    • Jens Holm

      The GDP of USA dont say that at all. The Corona part seemes correct.

      Its the time, where people having cash should be stockholders.

      • Robert Ferrin

        LOL and now the joker is weighing in with his two cents.!!!

        • George King

          A dead clock is correct twice a day and in that spirit Jens has touched on something correct. “Marx many years before predicted, that the biggest enemy in the world was and would be bureaucracy”, the “Iron Law of Oligarchy”, a sociological thesis according to which all organizations, including those committed to democratic ideals and practices, will inevitably succumb to rule by an elite few (an oligarchy). The iron law of oligarchy contends that organizational democracy is an oxymoron.

          Michels stressed several factors that underlie the Iron Law of Oligarchy. Darcy K. Leach summarized them briefly as: “Bureaucracy happens. If bureaucracy happens, power rises. Power corrupts.” Any large organization, Michels pointed out, has to create a bureaucracy in order to maintain its efficiency as it becomes larger—many decisions have to be made daily that cannot be made by large numbers of disorganized people. For the organization to function effectively, centralization has to occur and power will end up in the hands of a few. Those few—the oligarchy—will use all means necessary to preserve and further increase their power.

          Michels’s theory states that all complex organizations, regardless of how democratic they are when started, eventually develop into oligarchies. Robert Michels observed that since no sufficiently large and complex organization can function purely as a direct democracy, power within an organization will always get delegated to individuals within that group, elected or otherwise.

          Using anecdotes from political parties and trade unions struggling to operate democratically to build his argument in 1911, Michels addressed the application of this law to representative democracy, and stated: “Who says organization, says oligarchy.” He went on to state that “Historical evolution mocks all the prophylactic measures that have been adopted for the prevention of oligarchy.”
          According to Michels all organizations eventually come to be run by a “leadership class”, who often function as paid administrators, executives, spokespersons or political strategists for the organization. Far from being “servants of the masses”, Michels argues this “leadership class,” rather than the organization’s membership, will inevitably grow to dominate the organization’s power structures. By controlling who has access to information, those in power can centralize their power successfully, often with little accountability, due to the apathy, indifference and non-participation most rank and file members have in relation to their organization’s decision-making processes.

          Michels argues that democratic attempts to hold leadership positions accountable are prone to fail, since with power comes the ability to reward loyalty, the ability to control information about the organization, and the ability to control what procedures the organization follows when making decisions. All of these mechanisms can be used to strongly influence the outcome of any decisions made ‘democratically’ by members.
          https://en.wikipedia.org/wiki/Iron_law_of_oligarchy

          • Jens Holm

            Nice reading Your long comment. I knew nothing about Your great thinkers. Theymake sense.

            When I once was a Boyscout here in Denmark, I learned, that You should listen to others – realy listen and understand – and find Your own oppion.

            You added some glue to mine, so Your long comment is very usefull. I hope some few others here will read and reflext.

        • Jens Holm

          Buy cheep and sell ecpensive is a good advice for potatoes too.

          Thats a good advice for people having only 2 cents as well.

          Below Geoge KIng writes about Bureaucrasy giving good examles how oligarkis are made and do. Do often id no good. You can try to keep things goind and repair and renew, but they grow in quantaty and make a selfruling power that no one control for purposes most of us will vote for.

          So we can go to the garden. If potaties is not harvested, You wil get more and mopre at the same place being smaller and smaller, they will not feel erll be sick and act strange.

          So You take them up, eat the main part, recycle the leftover You dont eat, YOU EAT, and plant new ones.

          Trees also get old. Therefopre You plant new ones. The new small ones might give less to a start, but You have too.

          So as King reflect. Oligarcy will try to maintain itself even its not good for any or many. So You have make a fresh start and ofte from different kinds of schratch.

          Its for states as well. We have a taxsystem, where differnt Goverments has tryed to tax us after their version for the future. That systems has tryed to be repaired and things has gone really bad, because a Goverment decided som IT experts being expert in IT would solve anything and even save money. Those experts were not experts in tax.

          Therefore Goverment systems like mainparts of Our taxsystems should start in diffrent thinking making a semilar result. Our old taxcar is impossible to repair and renew as it is. We every year pay a lot for repair drowned in bureaucray and things hardly goes nowhere. It cost billions extra a year and so many are angry as well as people cant even pay their tax, because ther small or big parts are in courts for year. They even has the result, that they dont pay tax, because things are too old and registrations about it are too old or just – gone.

          So here the State and also Counties are the Oligarcs and even the Oligarcs and their many very expensive employed has no control.

      • PZIVJ

        Not time yet. US stock PE valuations are still high.
        ECB will have a meeting Thursday. Right now I am playing this roller coaster with an ETF short position against tech sector with 3X leverage. May sell it Monday? :)

        • Jens Holm

          Yes, I know. I am worried too. I have just seen and old movie named “The Devil wearss Prada”.

          Here the children of a big boss want to know “what happens next” in the Harry Potter world.

          So we will see see if the Devil waears Prada and what happens next.

          I have some relative few money by bonds. They give nothing. Its tempting fx to put them into transportation as a long time investment.

          Its said You should not invest more then You can effort to loose. You might try that. I tested myself twice several years ago. I was the kind, which take small chances not becomming rich, but also -so far – dont loose.

          So You have at least 2 buttoms. 1) Be clever and 2) Good luck. I dont dare going into shortlists.

          I did just before the collapse in 2008 and made a lot of money. I sold everyuthing just befoe the collapse and beacme rich for a whoile. But I was not only taxed as I knew. I also was taxed for selling things too fast. S I had to pay a big fee, so I got profit and some kind of haircut too.

          • PZIVJ

            Transportation as in airlines and cruise liners is a long term idea at a discount, but catching a falling knife sometimes hurts and is a bit scary. Hopefully Coronavirus will start to fade with the end of the flu season next month. :)

  • Assad must stay

    good, hopefully america will stop worshipping money and the dollar as if it were God and will stop using people like they are condoms and will come to its senses

    • MeMad Max

      Just remember:
      Whatever happens to the US and China:

      Happens to the rest of the world too… and coronavirus is a perfect example…..

    • John Wallace

      The ruling elites don’t care a thing about the peasants ( multi millionaires and less ) and will be immune to whatever is happening outside their barriers of protection .

      • Assad must stay

        Hopefully not and that they go down in flames

        • John Wallace

          no chance

          • Assad must stay

            are you one of them? ;)

          • FlorianGeyer

            LOL

          • John Wallace

            Would a multi billionaire waste 5 seconds on here or even a multi millionaire for that matter. If you had billions would not security of yourself and family not be of prime concern and the hiring of professionals too ensure that safety and the safety of housing. Many of the super rich have homes buried deep in old nuclear bunkers that have the ability to survive in for years inaccessible to the outside. As much as I would love to join you on the super rich despots hunt I am pragmatic. Doesn’t mean we couldn’t catch a few but not enough to make any difference.

          • Assad must stay

            that sounds like something a multi billionaire would say! lmao

          • zman

            Yeah, but hope springs eternal! I’d settle for the scum infesting my state gov…not that they’re part of ‘that club’, but it sure would warm the cockles of my heart.

          • John Wallace

            Almost. Lotto was 50 mil the other day and I was sure it was mine but I just missed out by getting 2 numbers out of seven. Hence I am back here otherwise I wouldn’t time for you peasants. :-(( . Because I missed lotto not because I have to associate with peasants again.

          • Assad must stay

            aw you poor thing lmao

        • Jens Holm

          Very optimistic. Their biggest problem is, if lazy bums ike You cant buy anything from them.

          And them are also me. Our systems are not as You say. I do have investments in those big companies, they also give me work, so I can pay tax and get free medical care as well as pension.

          You not even has a language for, ehats going one. I anytime prefare the system, which has those elites from You.

          • Lone Ranger

            Time to invest in english lessons Shlomo.
            You Disney stories would sell a lot better ;)

          • Jens Holm

            People likeYou buy nice looking cars and dont care it there is an engine or not.

            My english engine is as fine as any being fast and undertstood. In this Your english is like nace paper, and when we open,there is nothing but dirt.

          • Lone Ranger

            Was that in english…?
            Oy gevalt…

      • Jens Holm

        Thats not correct. They are the ones having the biggest risk to loose the most money.

        • JIMI JAMES

          Gold backed without the bullsht or using the g7s to claim totals,i DON’T THINK SO!

    • Jake321

      When the US catches a cold, most of the rest of the world gets pneumonia. And what we need to do is worship mass murderers like Assad as you do. Got it.

      • Lone Ranger

        +25 Shekels…

        • Jens Holm

          Typical for lira users like You using parambulators instead of wallets.

          • Lone Ranger

            No hit Shlomo ;)
            Try again…

          • Jens Holm

            Rials … “only used in your behind if you use the side with no picture..”

          • Lone Ranger

            Time for you to switch to Google translstor…

      • JIMI JAMES

        Usas on life support,their bogus economy is doomed to implode leaving the rest to culminate in them trillions of debts,the only reason it has not collapsed is because trump ain’t letting them,that’s about fkn it,rest isa fake this,fake that,fake x,fake news+ LIARS!

      • Concrete Mike

        Really? In Canada where i.was it was good time for me, lots of huge projects , mines , dams, pipelines, lng plants ports.

        This was.from 2008 to.about 2014, now were having a.commercial.construction boom here, so whoever is giving you economic facts is lying to you.

    • Jens Holm

      Your belowed Russia will decline a lot too. They are very deopended in oil and gasprices. The weapon sales of their wil go down too.

      Russia might collapse gain being the land of potatoes and carrots.

      • Lone Ranger

        Sounds more like the U.S. nowdays
        Russia is doing fine ;)

        • Jens Holm

          I just write USA is doing much much better the most people here understand. I see Russia slowly decklining and can be hit very hard, because less transport and industrial production neeed less oiland gas = lowered prices.

          • Lone Ranger

            U.S. is doing much worse by any stats.
            Numbers dont lie…
            Russian oil and gas production gives only 9% ot the GDP.
            Its not 2000 anymore…

          • Jens Holm
          • Lone Ranger

            CIA propaganda…

          • Jens Holm

            Well, then CIA is all over almost all internet sites and even under Your bed. Sober Economics dont say as You assume.

            They will say You are barking mad or raised i a MarxEngels context or Arabistan Muhammed economics.

            Nice people will say You actually is an european and by accident has learned nothing, You cant learn something and until yesterday has not thought it was interesting and none of Your business.

            But if so, You should try and learn elementary stuff about. Thats listen and learn and no big mouth trowing totally wong things out as if it all came from below.

          • Lone Ranger

            Keep drinking the Kool Aid…

          • Jens Holm

            Facts are as I say. I anytime can play all the elementary melodies on that piano and Muhammed as well as Enegls United.

            I see most diferences well and also can understand and explain where and why USA need reforms as well as I can see, that some of their problems might be renewed and repaired by good inspiration from Skandinavia by Sanders.

            I see the problems for Russia. Those are vital. The mssing link is as for the Tzars, that the well educated middleclass also being good taxpayers is not there. They can handle complicated things as well as they are the innovative ones.

            Russian blindfolded as well as Middleeasterns never mention that very big group in USA. They only know the eleite by Jews and Rotschild and the poor. People like Your kind cant even see, that a great part of the poor has the same non productive arritude to their miserable life. Why should any pay to them.

            But and USA (Sanders) correct perspective is to help the potential productives up by good healthcare, good schhools and free or almost fre eduction, så they as a minimum becomes taxpayers, which pay for themselves. Parts of those do have talent for much more. Thoseas minimum should be the replacements for the middlerclassers going down.

            You never mention those 200 million in USA. NEVER.

            So if Russia want to grow instead of decline, they should make more middleclassers.

            And thats where so many get Your hate against jew from. Even they were and some are different, they were the only inovatives and mainly being middleclasses because tzars as well as Feufals kept all other stupid and ignorant. Its exact the same in ME or for that matter parts of Europe up to 1945.

            People didnt like some Jews pr tradition did a lot to improve their situation.

            We as danes and democrats sont have such problems at all. We have income tax systems and are able to give all a high income, so what rich incl. rich jews owe comes back in tax divided to all.

            We also tax fortunes more. Even when Your die some 15% is for the state even You – now dead – already might have paid 54% in tax.

            Ta¨x does it. Your tax Your pay we pay too, but income tax is much higher and used for everybody.

            We equalize peple in many things. We have free hospitals and never take a single dollar for an Xray. We dont know which 3 of 10 gets canser. We dont know, which ones will be in a car accident and under repair for a long period.

            Do You?

            We also dont have courts paying all kinds of victims for all kinds of accident and as in america for millions. If You by accident are in health problems for years or life, You automaticly get paid from the state and county the rest of Your life.

            By that we save having most insurrences and being in courts forever about most things.

            Russia slowly should do that. They have to have a good taxsystem and educate more better to jobs in the middle class level. I say slowly, because its a very expensive machine, but it pays of very well.

            It unite and equalize people. Many countries should seé and implement that part of ours in their own version.

          • Lone Ranger

            Facts in your deluded mind not your reality.
            I didn’t read the rest…BS…

          • Jens Holm

            OK. I hope You read about it on several rainy days. NUmbers and expectations about them are far out.

            I still dont see a single link for which countries are better for me and all the millions of Muslims and Rssian vomen comming here.

          • Lone Ranger

            Those arent Russian but ukrops and Poles…
            You are a braindead liberal beyond hope…
            Bye.

          • Lone Ranger

            Russia runs a trade surplus, U.S. runs a trade deficit…
            Let that sink in.
            Debt to GDP ratio USA 130%
            Debt to GDP ratio Russia 12%
            Forex Reserves USA $120billion
            Forex Reserves Russia $560billion

          • Jens Holm

            Reserves also are dead money doing nothing. Numbers can be calibrated in very simple ways but also very wrong.

            So as a minimum You should subtract the active debt producing for own use and export.

            Maybee You are inspired by the old Miscowitc cars. One of my friends had such one. The heating system was perfect, but the rest was not.

            So why are Russian not producing a single private car anymore. Its very simple. They are not able to invest correct and keep the socalled low level and potatoe and tomato level safe.

            So You should subtract facts like that an only take the bad debt as minus. Here they do have problems, but o far its no problem for real.

            And what is that about. Its about trust and dependency. It is not wrong to say USA has helped many by printing some more money.

            In the other hand none will let USA or the dollar collapse. No way. They will help and let the dollar decline a little, so they have no problems with it. USA might even sell more, if the doller lower.

          • Lone Ranger

            Disney called they want you back…

          • JIMI JAMES

            RUSSIA CAN DEAL WITH $40,UNLIKE THE SAUDS NEEDING 70 LIKE USA FRACKING! The only reason keeping the fakec economy alive is trump 2020!
            I’m afraid you don’t understand the situation,-24 trillion eventually rots surplus!

          • Jens Holm

            I see no fake economy. Its choosen because its much less worse then others. And Yes, its up and down. We have chosen that rich, loose system because it produce and fx for me being a middle class totally safe no matter what.

            I dont need to have gold under my pillow. I prefare a soft one.

            Trump only is a part of USA and no deciding Dicatator. USA last year had the highest GDP ever. Thats a good thing according to our system, which I support, because I see the results.

            It would be nice having some links for, whats better for us. You have forgot those.

            As written above, I do undertand those 20 trillion in debt better then Alone Ranger. Very much of those loans produce a lot every day and make plus. They are not dead gold and security.

            So as a minimum, You have to understand that most of that debt actually is plus.

            You loan money for a cow. You feed it well. It gives You 25 liter milk a day and a calf a year for about 8 years. Thats where You should use Your pocketcalculator and not in buýing a cow or not putting small coppercoins under Your pillow and convert it to gold.

      • JIMI JAMES

        Worlds most gold backed currency,backed by rigid infastructures,oil,gas,minerals,
        gold,diamonds,agriculture,#1 military sales by weighted mass and yield power per capita,meaning delivered on time?top 2 real world p.p.p,usa gimped stocks mean sht!
        They can’t invest even if they could spell,let alone build a decent fkn wall down south!

        • Jens Holm

          I wrote USA was independent compared to Russia. You also compare in money and forget You have to relate to inhabitants as well as GDP as well as prices and saleries in the countries.

          Try this: Russia GDP 30.000 dollar pr capita and USA 65.000
          Country: Russia 1,7 trillion and USA 20 trillions.
          Inhabitants Russia 145mio and USA 330 mio.

          Let mig make You remember the Trump wall is for keeping 125.000 out a year and USSR did a wall to keep people IN.

    • Karen Bartlett

      Well, the ones who don’t starve or expire from some other cause, such as exposure or fighting to keep what little they have out of the hands of looters.

    • zman

      I should fucking live so long!

      • Assad must stay

        same lol

  • Bobby Twoshoes

    I don’t see what the big fuss is, this is how the system works, once they’ve acquired the companies they want the deep state will stop pushing alarmist news and the peasants will start borrowing fake money to buy nothing again. Nothing substantive will change until China and Russia feel confident enough in their defensive position to assert themselves more forcibly. Hopefully that will be soon but until then the wheels will keep spinning on the wreck that is the Empire.

  • LR captain

    Bibi wins the elections bad things happen, one of the unwritten laws of the universe

  • Rodney Loder

    The roller coaster is a self fulfilling investment prophecy, the investment houses seize on anything to sell the flock follows the Fed steps in and fulfills the prophecy, everyone knew they would do it it’s called exorbitant privlige.

    • Concrete Mike

      Wise words sir.

      How have you been?

      • Rodney Loder

        Not bad, and you?.

        I got the 2 best bikes now after the fire 250 / 2 stroke ad 450 both KTM both registered and new car Subaru Outback 2002 but in good shape, broke my fibula near the ankle 7 days before the fire that’s why I lost all my garages but still saved my house. Will be back on the track in a month or two.

        Thanks for your concern.

        • Karen Bartlett

          Hope things get better for you!

          • Rodney Loder

            I have to quit SF or lose my place in Islam, Haftar is probably the only enemy for me till the end now, why Assad went with the Greeks I don’t know.

          • Karen Bartlett

            I don’t understand what you mean, but I hope your circumstances get better.

  • Lone Ranger

    U.S. is on life support eversince 2008.
    The debt bubble is 30 times bigger than it was in 2008, primarily the derivative debt…
    Whats happening is that major U.S. companies are getting cheap money from the fed, in the $trillions, and they are buying up their own stocks inflating its value, than they sell it back and forth to create an illusion of trade and profit, its all smoke and mirrors.
    The U.S. runs a trade deficit of $640 billion a year, debt is growing $1.2trill a year.
    Compare that to Russia, they have a trade surplus of $300billion a year with decreasing debt.
    Debt to GDP ratio is at a 130% in the U.S. vs 12% in Russia.
    To put it in perspective…Germany has a population of 83million yet it exports more than than the U.S. which has a population of 330million, Germany also runs a trade surplus not deficit…, Of $850billion per year.
    The U.S. economy is nothing but smoke and mirrors, like the Soviet was in the late 80s, same path, and will end the same fate.
    So called experts couldnt predict the collapse in 2008 either, they are paid trolls to tell you everything is fine keep spending, keep inflating the bubble, they dont care.

    • Jens Holm

      There we go again. The same old crap, where most of it totally far out. Western economics dont work as You in Your primitive Muhammed Systems has learned.

      You not even have a language for, what happens even bad or good.

      Comparing USA with Germany is totally far out. USA dont trade as much because its independent in most ressources having themselves.

      Two countries in Europe is not that at all. So Britts and Gerrmany the last many 100 years has to produce things mainly for buing food. Thats where You mad scientist comparing has its main collapse.

      Germans have lived well by high qualified products by Krupp, IG Farben, Siemens, Baucknect and a lot of fx cars.

      You even get i worse in Your last line comparing USSR and USA. Ha ha ha ha. The USA system never will allow conditions for life being like USSR. Markets decides. So when things goes downs, there is space for making new stuff or better replacements.

      Thats one of many decieces the centralised system of Engels well supported by almost dead leaders could not do. Uncle Marx manyyears before predicted, that the biggest enemy in the world was and would be bureaucrasy. USSR certainly had that too – in wrong ways. They had no idea in costprices as well as needs.

      A joke from that time, which I do not know is true, was, that they used condoms for babies milk bottles after they were used for something else.

      If true, thats not funny.

      • Lone Ranger

        Skip your BS.
        Im from the EU.
        U.S. is not Independent at all, thats why it has a trade deficit of a $640billion per year.
        Contrary to your disney imagination I know exactly how things work and dont need a magic wand and suspended disbelief to make it seem true ;)
        Everything I wrote is hard Facts.
        Better luck next time Schlomo…

      • Lone Ranger

        Free market is an illusion in the U.S.
        It does not exist.
        Time to invest in english lessons…

      • Lone Ranger

        U.S. is a socialistic country only difference is its not socialist to avg joe but to banksters and politicans…

      • Robert Ferrin

        And now folks you have your dose of propaganda for the day from one known as Jens Holm,but stay tuned for I’m sure he will tap out some more on his keyboard.!!!

    • Assad must stay

      Its like karmic justice happening to US for what they did to soviet union, its like the ghost of soviet union striking back from beyond the grave lol

      • Lone Ranger

        Indeed ;)

    • zman

      Very good post. I might add though that although the same fate awaits the US, the difference is that they will likely take the rest of the world economy with it…clarification…the western economies. The multi-polar moves by Russian and others may tend to semi-isolate them from the carnage. They haven’t been buying gold and getting with the BRI for nothing. How strange that Russians and others might end up buying American assets for pennies on the dollar…like was done to Russia in the 90s. What goes around, comes around.

  • Jens Holm

    There we go again. The whole world decline by Corona.Its very infected only to mention USA in this. China is hit much worse. Almost anybody are.

  • bouncer dogsly

    Just so long as you keep and protect Israel. Remember, “He that blesses Israel, is blessed by God and he that curses Israel is cursed by God.” John Hagee (I’m a millioniar out of you suckers overweight” Hagee- the Pilsbury Doe man.
    I live in the Uk and go to US a lot on business, mainly LA (OMG LA) The American people are good people, but their government and elites lizards are totally evil. I watch Americans cheering on Democrats and Republicans, as if it makes any difference who gets. Just like the UK or anywhere, voting makes zilch difference. We what happens to anyone who dare tear a hole in the Matrix to expose the evil. You end up like Assange.
    Like the US, the UK and EU, everything is debt. In the UK we have home less every we have the mass rape and trafficking of young girls by Muslims and migrants and everyone in power just turns a blind eye.
    God needs to descend on this world quickly and destroy these bastards. It’s obvious what’s going n with Corona virus. EVERYONE IN THE KNOW, KNEW THE PRINTED MONEY PONZI SCHEME WAS COMING TO END. WE WERE ALL WAITING FOR A GLOBAL WAR, OR SOME FAKE EMERGENCY TO BLAME IT ON. MANY OF MY HIGHLY QUALIFIED FRIENDS HAD FOR YEARS KNEW A BIG DISTRACTION WOULD BE COMING WHEN PAPER MONEY CRASHED. WE THE DISTRACTION IS HERE, IT’S CALLED THE CORONA VIRUS AND THEY ARE SETTING THEMSELVES UP TO LOCK US DOWN. IT’S A BRILLIANT MOVE. “IT’S FOR YOUR OWN GOOD.”

    • Jens Holm

      But only 2 to 4 % of us will die. Are You sure its the right ones. Best hopes for that.

      I heard somethings else. People believing in that are now building an Ark and preparing for the next Miss wet T-shirt.

      Other roumers tell that Iranian soon will detonate their first Nuke in Teheran airport. Their export of sunglasses has to their neighbor countries has gone up 1967% despite of the USA boycut.

    • FlorianGeyer

      Well said.

  • Davki

    Indeed this was overdue. The Fed had been pumping into the system’s mushroom for a long time. Good to see this gets some attention. Indeed, what changed since 2008 is not the system, of course, that only got worse (much!) but the mechanisms by which the Fed or indeed the government can and does inject money into the financial sector without having to ask or tell anybody.

  • Xoli Xoli

    USA NATO does not have countries to attack.Its time for NATO against NATO to protect USA financial total collapse. USA,France,Britain and Germany should attack Saudi Arabia,Turkey,UAE and Qatar to arrest and rob all the monarch and Sheiks sultan from all USA $ dollars and hidden bonds and Euros.

  • Ed

    Why hasn’t ‘DAESH’ claimed responsibility for the Corona virus yet? Very unlike them.

    • Assad must stay

      nobody would believe they have the capability to manufacture a virus like this is my guess

      • Karen Bartlett

        They probably didn’t. It was probably the CiA or Mosad if anybody did.

        • Jens Holm

          Dont forget my belowed pig if I have oone. Many of them might be brigter and more sober then You under the same conditions:)