The Great Financial Write-Off: Part ll

[errolanderson]

This financial realty quickly spreading globally . . . .

U.S. Fed now expanding their balance sheet to avoid another potential liquidity crash in financial markets. Fed has gone from talk of 3 rates hikes last year, to 3 rate cuts this year. They have gone from shrinking their balance sheet to expanding due to fallout in recent emergency in U.S. bank repo market. Three (3) American banks have failed in the past ten (10) days. Fire is still burning and not controlled. This list is about to quickly grow . . . .

USD is now declining. With the Fed effectively money printing again, but they say this is not true as that may disturb the flock. Trump wants this to happen to promote exports, but USD weakness is due to wrong reasons (IMO). Citigroup stated this week, USD index may decline toward 85.00.

Group, if Citi forecast is remotely true, our Cdn dollar is heading toward 80 cents U.S. this winter. Currency markets are simply flow of money markets. The loonie trend is now gradually up, but for all the wrong reasons (IMO).

Canada’s energy industry is getting a total re-write, as everyone can now see.
Fracking industry in-disarray as global oil prices decline. Biggest hit . . . Texas.

Bank of Canada continues to insult western Canada with their rosy Cdn economic forecasts to the world.
Loonie is now the ‘chosen one’ among the G-10. Yet, Canada’s gov’t debt can now only be called as ‘explosive’ and totally ‘out-of-control’.

Deepening recession, in Hong Kong, South Korea, Germany, UK.

Stock market continues to thump-its-chest as money is parked at ridiculous valuations . . . .
Expect potential big volatilty in the equity world heading toward year end.

Global commodities will remain mired by deflationary pressures.

[bucket]

The so called experts in Canada that think we are going to be a powerhouse have to be just entering first stage dementia....

We don't export as much as we could....we haven't built the infrastructure for the increase if we did. ....and they think Canada will be the place to be. ...

The only reason they will think that is taxpayers will have to subsidize the capitalist government tit suckers....to the delight of the shareholders.....

And more than likely we will end up with a substandard infrastructure to boot....

Perfect example will be when the province of Saskatchewan gets their first winter on the new Regina bypass and find out the winter maintenance costs of building those fn things on flat ground with no chinooks to help....Cloverleaf would have sufficed for a province of 1.3 million.....

[biglentil]

This financial realty quickly spreading globally . . . .

U.S. Fed now expanding their balance sheet to avoid another potential liquidity crash in financial markets. Fed has gone from talk of 3 rates hikes last year, to 3 rate cuts this year. They have gone from shrinking their balance sheet to expanding due to fallout in recent emergency in U.S. bank repo market. Three (3) American banks have failed in the past ten (10) days. Fire is still burning and not controlled. This list is about to quickly grow . . . .

USD is now declining. With the Fed effectively money printing again, but they say this is not true as that may disturb the flock. Trump wants this to happen to promote exports, but USD weakness is due to wrong reasons (IMO). Citigroup stated this week, USD index may decline toward 85.00.

Group, if Citi forecast is remotely true, our Cdn dollar is heading toward 80 cents U.S. this winter. Currency markets are simply flow of money markets. The loonie trend is now gradually up, but for all the wrong reasons (IMO).

Canada’s energy industry is getting a total re-write, as everyone can now see.
Fracking industry in-disarray as global oil prices decline. Biggest hit . . . Texas.

Bank of Canada continues to insult western Canada with their rosy Cdn economic forecasts to the world.
Loonie is now the ‘chosen one’ among the G-10. Yet, Canada’s gov’t debt can now only be called as ‘explosive’ and totally ‘out-of-control’.

Deepening recession, in Hong Kong, South Korea, Germany, UK.

Stock market continues to thump-its-chest as money is parked at ridiculous valuations . . . .
Expect potential big volatilty in the equity world heading toward year end.

Global commodities will remain mired by deflationary pressures.

$120,000,000,000 is injected into the repo market by the Fed a day. Works out to $400/day for every man, women, child in the U.S of added liquidity into the system every single day. And your trying to tell us deflation will be the result? Last time I checked when you add air into a balloon it inflates. Money printing inflates the money supply. Does not take a rocket surgeon to understand the concept.

[errolanderson]

$120,000,000,000 is injected into the repo market by the Fed a day. Works out to $400/day for every man, women, child in the U.S of added liquidity into the system every single day. And your trying to tell us deflation will be the result? Last time I checked when you add air into a balloon it inflates. Money printing inflates the money supply. Does not take a rocket surgeon to understand the concept.

Yes . . . .

[errolanderson]

Swiss National Bank chairman stated this weekend that their negative rate of -0.75 percent will likely have to go lower while scaling up more monetary stimulus (money printing). This is in an effort to stem worsening deflationary pressures.

This could spin EU bank contagion risk toward Wall Street. Printing money no longer has any impact on stimulating inflation. This out-of-control debt horse has long left the corral . . . with central bankers in true bewilderment.

This bomb is slowly going off . . . .

[Bowerpower]

Swiss National Bank chairman stated this weekend that their negative rate of -0.75 percent will likely have to go lower while scaling up more monetary stimulus (money printing). This is in an effort to stem worsening deflationary pressures.

This could spin EU bank contagion risk toward Wall Street. Printing money no longer has any impact on stimulating inflation. This out-of-control debt horse has long left the corral . . . with central bankers in true bewilderment.

This bomb is slowly going off . . . .

Let it blow

[biglentil]

A defationary collapse will be met with stimulus. How long did the 2008 defationary period last? Keep that monopoly money flowing, the party aint over until they take away the monetary punch bowl.

[AlbertaFarmer5]

At some point they will realize/accept that distributing the funds to the citizens instead of the banks will have the desired effect a lot faster and more efficiently, and will persue that route. I believe it was Bernanke who suggested this over a decade ago.

[biglentil]

At some point they will realize/accept that distributing the funds to the citizens instead of the banks will have the desired effect a lot faster and more efficiently, and will persue that route. I believe it was Bernanke who suggested this over a decade ago.

Helicopter money that will keep the party going, saving is for fools.

[AlbertaFarmer5]

Helicopter money that will keep the party going, saving is for fools.

My entire adult life, I have been perpetually warned about the inevitable deflation and explosive interest rates, either of which would be enough to paralyze anyone to inaction, afraid to borrow, to purchase anything, to start a business etc etc.

[errolanderson]

The System is Broken and the World has Gone Mad . . . Ray Dalio published today.

http://www.linkedin.com/pulse/world-has-gone-mad-system-broken-ray-dalio/[/URL]

[Guest]

doesn't work errol

[biglentil]

The System is Broken and the World has Gone Mad . . . Ray Dalio published today.

http://www.linkedin.com/pulse/world-has-gone-mad-system-broken-ray-dalio/[/URL]

Dont turn gold bug on us too Errol like Ray!

[errolanderson]

Interesting week straight ahead. Trump speech must indicate the phase 1 deal is progressing and not turning into phase 0 deal. This is critical for markets, especially the grossly overvalued stock market . Gold in tough . . . Largest weekly price drop in three (3) years.

It political rhetoric doesn’t pan out, big spike in market volatility appears possible.

[macdon02]

https://twitter.com/papapellet/status/1194058308384149504?s=20 https://twitter.com/papapellet/status/1194058308384149504?s=20

China rapidly losing control in Hong Kong, the police killed a child this morning. Rapidly degrading as the communists cling to control the people. Huge pressure on XI.