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The Global Financial System Is A Rube Goldberg Machine

The Global Financial System Is A Rube Goldberg Machine

Much Of The Economy Is Like This Machine

More than one economist, big wig CEO, and Fed watcher has alleged the problems haunting the financial system have very deep roots. These people often contend governments and central banks have not fully rectified the problems causing the great financial crisis of 2008. Instead, they have merely papered over our failures by printing money and flooding the system with liquidity.

Let’s just cut to the chase. Overall, the global financial system is not a well-designed efficient machine. Instead, it is a cobbled-together mess all glued together in a haphazard way to get the job done. To make matters worse, this system is greased by the greed of those who benefit from stealing a little from here and there. In the real world, things are usually not intentionally designed to be complicated but the reality is that they just are.

This means that more often than we would like to admit, systems thrown together with various parts or pieced together haphazardly are prone to be unreliable. When we try to explain events in terms of cause and effect the bigger picture has a way of getting lost. Often hidden away is the risk that results when complex poorly built systems become codependent upon other poorly built systems. Bestselling author Nassim Taleb who wrote, “The Black Swan” detailed in his book how when something is highly complicated highly improbable and unpredictable events can and do occur.

While pondering the conundrum that has become our current economy, I stumbled upon an analogy. Simply put, the global economy is like a Rube Goldberg machine. These are “goal-oriented” contraptions built in a ridiculously complicated way to perform what would normally be a simple task…

…click on the above link to read the rest…

Tim Watkins: Anatomy of the Crisis

Tim Watkins: Anatomy of the Crisis

Our Financial System Is Optimized for Sociopaths and Exploitation

Our Financial System Is Optimized for Sociopaths and Exploitation

Let’s call this financial system what it really is: the MetaPerverse, a conjured world of self-serving cons.

We live in a peculiar juncture of history in which truth has been banished as a threat to the maximization of private gain, i.e. the hyper-pursuit of self-interest. Evidence that supports a causal chain has been replaced by cherry-picked data that supports a self-serving narrative: both the evidence and narrative are manufactured to serve the interests of the few at the expense of the many.

In this juncture of history, evidence is easily disputed because the process of manufacturing self-serving evidence has been perfected. Indeed, self-serving evidence is now a commodity which can be purchased wholesale: rig the sample size, massage the data statistically, conjure up a context that serves to frame the evidence in a slippery self-interested fashion, omit disinterested evidence and contexts, top with arcane math and voila, evidence and narrative are presented as “facts” rather than what they really are, an elaborate, well-staged con designed to maximize the private gains of the few by exploiting the many.

Organizing the entire system to serve the pathological greed of the few is best served by devaluing truth to mere opinion and causal chains to mere narratives. In this juncture of history, truth has been revealed as a chimera; there is only opinion, and all opinions are equal. Opinions are beliefs, and all beliefs are equal. All narratives are equal. All questions boil down to values: values are all equally detached, free-floating and of the same value: zero.

…click on the above link to read the rest of the article…

IMF, World Bank & 10 Countries Held Alarming “Simulation” Of Global Financial System Collapse

IMF, World Bank & 10 Countries Held Alarming “Simulation” Of Global Financial System Collapse

IMF, World Bank & 10 Countries Held Alarming “Simulation” Of Global Financial System Collapse

Tyler Durden's Photo

BY TYLER DURDEN
TUESDAY, DEC 21, 2021 – 11:20 PM

Earlier this month Reuters produced a report which didn’t receive nearly enough attention among the American public – its contents would be sure to alarm most people concerned with the outbreak of yet more ‘global catastrophes’. At the very least it’s curious timing: amid the recent pandemic induced disruption in global supply chains, powerful nations and banking institutions decided to get together to run a global economic collapse scenario.

The report described that Israel led a “10-country simulation of a major cyber attack on the global financial system in an attempt to increase cooperation that could help to minimize any potential damage to financial markets and banks.” It was centered on a catastrophic scenario in which “hackers were 10 steps ahead of us,” according to one official who took part.

Collapse, illustrative image via Reuters

Dubbed “Collective Strength”, the exercise was held in Jerusalem (after being moved from the original proposed location of Dubai) and included the participation also of the United States, UK, United Arab Emirates, Austria, Switzerland, Germany, Italy, the Netherlands and Thailand. Officials from the International Monetary Fund (IMF), World Bank and Bank of International Settlements were also involved.

The financial-geopolitical gaming simulation was set amid a scenario where sensitive data was leaked on the Dark Web, which combined with “fake news” reports going viral across societies, resulting in the collapse of global markets and an ensuing run on banks. Further, the simulation envisioned a series of devastating hacks targeting global foreign exchange systems, which also disrupted transactions between importers and exporters, according to Reuters.

…click on the above link to read the rest of the article…

The Losses are Hidden – Bill Holter

The Losses are Hidden – Bill Holter

Precious metals expert and financial writer Bill Holter has been predicting the financial system is going to go down sooner than later.  He says the signs are the lies being told to the public to try to hold the system together.  Holter explains, “If you look at everything, nothing is natural.  Everything is contrived.  We are lied to about pretty much everything 24/7. . . . They lied about everything regarding Covid.  They have lied about the election.  They are lying about the unemployment rate.  They are lying about inflation.  They are lying about the true amount of total debt outstanding.  They are lying about everything. And one other tidbit, 36% of all dollars outstanding have been created now, were created in the last 12 months.  Oh, and the Fed is no longer going to publish M2. . . . How can you make a business decision if you don’t know how much money is outstanding?”

This leads us to all the digital dollars sloshing around and Crypto currencies.  Holter says, “Crypto currencies are a perceived exit from the system.  They are perceived as a safe haven.  If Bitcoin, which is nothing but digital air, can become $65,000 per unit, what can something real become worth?  What these crypto currencies are doing is illustrating a debasement of all the fiat currencies.”

Bill Holter says big loses in the financial world are being hidden from the public.  Take real estate, for example.  Holter points out, “The average mall in the United States is appraised 60% lower than it was a year ago.  That’s a 60% drop.  It’s now worth 40%.  There is debt on these things they owe.  These malls were not bought, built and created out of cash…

…click on the above link to read the rest of the article…

greg hunter, usa watchdog, financial system, financial system collapse, bill holter, debt, fed, us federal reserve, money printing, credit expansion

Hot Money

Hot Money

I watched the new documentary Hot Money by Susan Kucera tonight.

An intelligent world-wise father (General Wesley Clark) and his son discuss some of the problems we face with many smart participants. I don’t think they interviewed a single idiot, which was refreshing.

They know something is seriously wrong and make an honest attempt to connect the dots. They come tantalizingly close to a complete picture of reality, but miss the all important overshoot drivers of over population and declining returns from non-renewable energy.

Which of course means they understand everything, except what matters.

Nevertheless, Hot Money is excellent and worth watching because it has a lot of intelligent substance.

I also think it indicates a growing mainstream awareness of how close we are to collapsing, and I suspect herd awareness (coupled with denial of the real causes) may be the trigger.

Some of the important points made:

  • the financial system is a bomb waiting to explode, climate change may be the trigger
  • climate change is real and very serious
  • droughts, floods, and fires are a big problem now
  • it now takes more than 3 dollars of debt to create 1 dollar of growth, it used to take less than 1 dollar of debt to create 1 dollar of growth
  • farmers are struggling and failing due to climate change, debt, high input costs, and low crop prices
  • real incomes and living standards are falling despite lower taxes than the 50’s
  • some young couples are not having children because they see a terrible future
  • it was much easier to make a profit in the good old days, doubly so if you were early enough to steal land from the aboriginals
  • companies now invest more money in stock buy-backs than R&D
  • there is no such thing as trickle down economics

…click on the above link to read the rest of the article…

 

2021 A Year of Mass Bankruptcy – John Rubino

2021 A Year of Mass Bankruptcy – John Rubino

 Financial writer John Rubino says, “2021 is going to be a pivotal year” in the debt markets.  Rubino says lots of debt will either be bailed out or defaulted on in some way.  Because of CV19, there is no getting around this.  The debt clock has been pushed forward by years.  One too huge to hide debt problem are heavily indebted U.S. states and cities.  Rubino says, “You have to call this a scam because years ago, they decided to offer wildly over generous pensions to public sector unions.  In return for that, the public sector unions elected people who would keep on doing that and keep the gravy train going. . . . Back then, it worked . . . but now they are all retiring, and these states and cities are heading for some version of bankruptcy at an accelerated rate.  It was always going to happen in the next 10 years, but with the pandemic, the time frame has been moved way up.  So, probably 2021 will be a year where a lot of these guys hit a wall where they have no choice but to default on a lot of their obligations.  That’s going to throw the financial system into turmoil.”

Rubino points out, “If they can’t pay their bills, they can’t pay their bills.  If it can’t happen, it won’t happen.  So, you get effective bankruptcy via defaults for a lot of these places.  That means massive layoffs of city and state workers and turmoil in the bond market.  That kind of thing alone is enough to send the U.S. back into recession assuming we are out of recession when it happens.

…click on the above link to read the rest of the article…

Global Financial System Broken & Bankrupt – Egon von Greyerz

Global Financial System Broken & Bankrupt – Egon von Greyerz

Financial and precious metals expert Egon von Greyerz (EvG) operates the largest private gold vault in the world in Switzerland. More than a year and a half ago, EvG warned here on USAWatchdog.com that “risk is exponential and unmeasurable” because of the estimated two quadrillion of derivatives and debt in the global financial system. He also warned that “at some point, all hell will break loose.” Looks like hell has indeed broken loose because of the China virus, and now EvG contends, “The system is bankrupt. . . . The system is broken and bankrupt. This did not start now with the Coronavirus. It didn’t start in August and September (of 2019) when central banks said we would do everything we can with the Fed QE, repos and the ECB (European Central Bank) QE. . . . This started a long time ago. The system was broken at the beginning of this century. The 2007-2009 crisis was the first signal that the financial system was not functioning. They threw $25 trillion at it in financing and guarantees, etc., but I always said 2007-2009 was a rehearsal. We are now approaching, sadly, the real thing. This is the end of a two to three hundred year cycle. So, we are going to see some extremely difficult times. The Corona virus is a horrible catalyst, but that is all it is. It’s not the reason for the problem. The reason for the problem is a broken financial system . . . and now we are starting the final stage of the end of this financial system.”

…click on the above link to read the rest of the article…

MASSIVE SURGE IN PHYSICAL SILVER BUYING: Totally Distorted & Broken Markets

MASSIVE SURGE IN PHYSICAL SILVER BUYING: Totally Distorted & Broken Markets

The world economic and financial markets have entered into a crippling cannibalization of the system in which few are prepared.  While the politicians, financial analysts, and media are providing optimistic forecasts for the future, they continue to underestimate the seriousness of the global contagion.  Thus, after a week or two, these forecasts will be revised lower (once again) to reflect a more gloomy, negative and more realistic outlook.

So, in another a few weeks, the world as it pertains to this contagion will look a lot worse than it does today.  I’d imagine the Dow Jones Index will likely shed another 5-8,000+ points during this period. Also, the global supply chain disruptions will kick into high gear as month-long lockdowns in various countries finally impact manufacturers and retailers across the world.

I haven’t put out too many new updates and articles over the past few weeks.  Rather, I decided to take a step back to research and watch as this global contagion continued to unfold.  However, I will be putting out more updates, videos, and articles over the next month as I believe most people are still unprepared for what’s coming.

Although, I have been a bit busy on Twitter recently.  You can follow my TWEETS and REPLIES on Twitter here: SRSRocco Report Twitter Feed.  When I posted this Tweet on March 15th, the price of oil was $31.  I stated that the price would likely fall to $29 the next day… and it did. The relevant sentence in the tweet below is… WE DON’T COME BACK FROM THIS ONE.

…click on the above link to read the rest of the article…

The Demise of the Financial System is Imminent

THE DEMISE OF THE FINANCIAL SYSTEM IS IMMINENT

“Next five years is not about winning but surviving.” This is the headline of an article I wrote in early August 2019. At that point I was primarily thinking of economic survival. But now the world is facing multiple threats and multiple failures. As I have already stated, the Coronavirus is not the cause of global market crashes but the catalyst.

But even if I have been totally certain that the world will see an economic collapse greater than any crisis for 100s of years, this is the worst catalyst that anyone could have expected. Yes, a global virus was always one of the potential risks but of all triggers, this one was certainly the most unwelcome and horrible.

CORONAVIRUS IS FAR MORE SERIOUS THAN THE WORLD REALISES

Before I talk about markets and gold further on in this article, I will mention some of the horrific effects that are now hitting the world due to Coronavirus. Just to summarise that my market views haven’t changed. Stocks will go down by at least 90% from here and gold will surge to levels that few can imagine.

No one knows the extent of people affected by the CV. China has never given us the real figures. And the rest of the world hasn’t got a clue where they stand. Every country thinks they are in control of the situation until they panic. Outside of Asia, poor Italy got it first and there we have seen an exponential growth of the number of people affected. And still, in Italy like in most other countries, they haven’t got a clue how many people have been infected.

…click on the above link to read the rest of the article…

Fed Chairman Confirms Fed’s Role As The Great Enabler

Fed Chairman Confirms Fed’s Role As The Great Enabler 

As questions swirl about the Fed’s independence Fed Chair Powell has been busy trying to explain his reason for the  “emergency” 50bps rate cut. Regardless of what he says Fed Chair Powell has confirmed the Fed plans to continue its role as the great enabler. This means central banks across the globe can now lower their rates or do additional stimulus without damaging the delicate balance in the relationship in the value of one major currency to another. This is a delicate balance they have long held in check to stabilize the financial system and add credence to the myth no major currency can fail. 

At Best, The Fed Is Simply A Flawed Institution

Powell said,  “My colleagues and I took this action to help the U.S. economy keep strong in the face of new risks to the economic outlook.”

Whether Powell succumbed to pressure from the highly critical words of the President for not acting immediately or fear the coronavirus would take a toll on the economy is not clear. As Powell tried to explain his actions, many of us who pay attention to such things cried “Bullshit.” Not only is a rate cut uncalled for at this time, but because it will also do little to strengthen the economy. What it will do is continue to prop up asset prices and encourage risk-taking and malinvestment. This is a big deal and may even result in more negative interest rates across the world which could create greater problems.

In the Austrian business cycle theory, malinvestments are badly allocated business investments, due to the artificially low cost of credit and an unsustainable increase in the money supply. 

…click on the above link to read the rest of the article…

The Multipolar Alliance Induces Rumpelstiltskin’s Self-Destruction

The Multipolar Alliance Induces Rumpelstiltskin’s Self-Destruction 

There are several versions of the old German folk tale of Rumpelstiltskin. The story begins with greedy king who is told by a foolish old miller that a young girl (the miller’s daughter) had the ability to spin hay into gold. When the poor girl is locked into a tower with bales of straw, a loom and orders to transform it all into gold under threat of death, a magical imp appears out of thin air and they reach an agreement: He will use his magic to spin the hay into gold on the condition that the girl gives the imp her first born child. The greedy king is pleased with the wealth that appeared from thin air, and the daughter’s neck is saved. Sadly the day eventually arrives for her to give up a child, and the imp in sadistic glee responds to her pleading tears by giving her three chances annul the contract. All she has to do is guess his name. To make a long story short, his name is discovered and Rumpelstiltskin literally tears himself to pieces in a fit of mad rage.

I think this story exemplifies the self-cannibalization of the deep state over the past several years quite nicely.

It appeared for quite some time that the oligarchy managing the world’s financial system and military-intelligence community from above was able to do magic. If they wanted a nation overthrown, or a troublesome elected official killed, a mere snap of the fingers was all it took. Gold from straw? They could do that too! Just look at the mass of $1.5 quadrillion dollars of derivatives claims which appeared as though out of thin air in the mere space of 30 years!

…click on the above link to read the rest of the article…

The Cannibalization Of The Financial System Will Force Investors Into Silver

The Cannibalization Of The Financial System Will Force Investors Into Silver

Day in and day out, the global financial system continues to cannibalize itself.  Clear evidence of this points to the massive “Artificial” liquidity and asset purchase policy instituted by the Federal Reserve.  While financial analysts provided several theories why the Fed was forced to inject liquidity via the Repo Market and also purchase $60 billion a month in U.S. Treasuries, the real reason has to do with the falling quality of oil and its impact on the value of assets and collateral.

It’s really that simple.  However, there is no mention of it (energy) by any of the leading financial or precious metals analysts.  For example, in Alasdair Macleod’s recent Goldmoney.com article titled, How To Return To Sound Money, he states the following:

This article provides a template for an enduring sound money solution that will deliver economic progress while eliminating destructive credit cycles. It posits that a properly constructed gold and gold substitute monetary system, which also includes the removal of bank credit inflation as a means of providing investment capital, is the only way that lasting stability and prosperity can be achieved.

Alasdair Macleod, who I have a great deal of respect, doesn’t mention “Energy” once in his entire article suggesting that returning to sound money, through gold, is the only way for lasting stability and prosperity can be achieved. The majority of economic prosperity has come from the burning of oil, natural gas, and coal, not from gold or silver. The precious metals act as money, a store of value, or economic energy, but are not the ENERGY SOURCES themselves.  While this is self-evident, it is very important to understand.

…click on the above link to read the rest of the article…

Global Debt Is Up To $188,000,000,000,000 – This Is Officially The Biggest Debt Bubble The World Has Ever Seen

Global Debt Is Up To $188,000,000,000,000 – This Is Officially The Biggest Debt Bubble The World Has Ever Seen

The world is now 188 trillion dollars in debt, and that number continues to grow rapidly each year. It is a form of enslavement that is deeply insidious, because most of those living on the planet do not even understand how the system works, and even if they did most of them would have absolutely no hope of ever getting free from it. The borrower is the servant of the lender, and the global financial system is designed to funnel as much wealth to the top 0.1% as possible. Of course throughout human history there has always been slavery, and the primary motivation for having slaves is to extract an economic benefit from those that are enslaved. And even though most of us don’t like to think of ourselves as “slaves” today, the truth is that the global elite are extracting more wealth from all of us than ever before. So much of our labor is going to make them wealthy, and yet most people don’t even realize what is happening.

Let’s start with a very simple example to help illustrate this.

When you go into credit card debt and you only make small payments each month, you can easily end up paying back more than double the amount of money that you originally borrowed.

So where does all that money go?

Well, of course it goes to the financial institution that you got your credit card from, and in turn that financial institution is owned by the global elite.

In essence, you willingly became a debt slave when you chose to go into credit card debt, and the hard work that it took to earn enough money to pay back that debt with interest ended up enriching others.

 …click on the above link to read the rest of the article…

Crashing The Financial System For Fun And Profit

Crashing The Financial System For Fun And Profit

Huge Fortunes Can Be Made In Falling Markets

It would be wise to remember we are in uncharted waters and this market could reverse on a dime. The stories flowing out of companies such as WeWork that are burning through cash screams danger ahead! This means we should not discount the idea that those in charge might reach a tipping point where they crash the financial system for fun and profit. While this may seem outlandish the possibility is real. This doesn’t mean that every rich guy and gal would sign on to this plan, just enough to push things over the edge. When things have gone too far in one direction history shows that a correction always takes place. It could be argued we have reached that point and true price discovery has been lost.

A huge amount of money can be made during a market crash for those properly positioned. As long as the Fed and the big banks survive those who control these institutions couldn’t care less about how the 99.5% at the bottom fair. In fact, the Dodd-Frank Act which is over 2,300 pages allows this under Title II what is viewed by many as a “bank bail-in”. This is done by imposing the losses of insolvent financial companies on their common and preferred stockholders, debt holders, and other unsecured creditors including depositors.

The whole event of a “bank bail-in” can be viewed as another way to disguise a massive default and it can happen here in America. An example of just how delusional we have become as to the fragility of our financial system is that many people have taken comfort in the efforts to control the banking sector through the Dodd-Frank act following the 2008 crisis. 

 …click on the above link to read the rest of the article…

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