There is an old saying, "If it isn't broke don't fix it".The system may not be working to your liking but it is obviously working for some people.These are the people who have the power,money and influence to change things.Why would they want to change something that is working fine for them ? If you have a better system how is that going to affect your average Joe ? There will always be those who can outwit the system,so all a change will achieve is a different set of beneficiaries.Perhaps the devil we know is better than an unknown outcome.The system we are using may have it's weaknesses,inefficiencies and inequities but as you said "on a long enough timetable,the survival rate for anything is zero".Even on a very short timeline the survival rate for everyone (every individual) is zero.When the current system becomes broken enough,it too will disappear or morph into something more efficient.

The United States Treasury Secretary, Steve Mnuchin, released a statement about banking liquidity on Christmas Eve that to should send chills up the spines of those familiar with the Great Recession of 2008. To me a bank is liquid when it can convert assets to cash. And to me there lies the problem, they can't when there is no bid. The banks don't trust each other because they don't know who has derivative positions against whom.

Per Steve Mnuchin >
>Secretary Mnuchin conducted a series of calls today with the CEOs of the nations six largest banks: Brian Moynihan, Bank of America; Michael Corbat, Citi; David Solomon, Goldman Sachs; Jamie Dimon, JP Morgan Chase; James Gorman, Morgan Stanley; Tim Sloan, Wells Fargo.

The CEOs confirmed that they have ample liquidity available for lending to consumers, business markets, and all other market operations. That simply is not true. These banks sold their bundled debt to what I call the shadow banking system of which most are mutual funds and insurance companies. They don't want that bundled debt back, but it won't be long now before they will have to take it back. Either that or the Fed will have to come in with another quantitative easing program. The Fed under Powell is not going to do that. To me the weak link here is Deutsche Bank and a number of big insurance companies. In 2008 it was AIG and Lehman Brothers.

What is not being said here is that there already was a 2018 liquidity crisis that no one heard of, and Deutsche Bank is at the center of it. It has everything to do with short derivatives on bad loans.

The reason why this topic should be so concerning is because banking liquidity was at the heart of the massive 2008 financial crisis. Lehman Brothers, founded in 1850, filed for bankruptcy in 2008 after the endless amount of subprime mortgages they owned blew up on their balance sheet. The Lehman collapse kicked off a chain reaction that nearly destroyed the global economy. Because so much of our lending is concentrated among few major banks, the entities who Lehman owed money to faced their own liquidity crisis, for Lehman’s bankruptcy destroyed assets and made them less liquid, thus Lehman stopped making debt payments they had anticipated. This is why congress passed the $750 billion TARP bill in 2008 (Troubled Assets Relief Program), because Wall Street showed themselves to be so interconnected, that all it took was one bankruptcy to stop the lending between America’s largest banks. That is because they didn't trust each other. No bank knows who has what derivative positions against whom.

The day after Mnuchin sent out the “all is well” statement, CNBC reported that despite Mnuchin’s headline being “the banks all confirmed ample liquidity,” the call was not about liquidity at all. I agree with CNBC.

Munchin's calls were about a check-in with the executives on Federal Reserve Chairman Jerome Powell, the government shutdown, trade war, and most important that the banks act as one unit to keep the financial market markets from falling off a cliff. On the day after Christmas they all acted together. To me they basically bought the market by buying it on the short side.

I am happy that the Secretary of the Treasury sees problems that the rest of the market is missing. Not only did he consult with the biggest banks, but he is talking to all of the financial regulators on Christmas Eve.

Fact is investors just yanked more money out of mutual funds than at any point since the financial crisis https://www.bloomberg.com/news/articles/2018-12-26/mutual-fund-outflows-surge-to-56-billion-most-since-2008. For every seller there has to be a buyer. What really gets me is in what the Fed is doing. To put it bluntly, they are Quantitative Easing QE the QT Quantitative Tightening. In other words everything is done to keep the debt bubble growing for it can not be allowed to implode.

Trump's Tweet >
> @realDonaldTrump
The only problem our economy has is the Fed. They don’t have a feel for the Market, they don’t understand necessary Trade Wars or Strong Dollars or even Democrat Shutdowns over Borders. The Fed is like a powerful golfer who can’t score because he has no touch - he can’t putt!

This president will blame everybody but himself. He started the trade wars with China, and blames them for the 70% of our imports made by American entities in China. Blames Obama for doubling the debt, and at the rate he is going he will do even better then that. Let's face it, we all live off of debt, be it in one form or another. The problem is somebody has to hold it as an investment (so called.)

Trump has been attacking the Fed for a while now (because he owes money to his creditors on interest payments and every time the Fed raises rates, he has to pay more.) The fact is that we have had one of the longest bull markets ever, seems to have finally run out of ability to borrow more because there is a lack of buyers for that debt. China can't buy our debt anymore, because it is not in their interest to do so, for our debt is at risk of default.

What really gets me is that Trump of all people wants the Fed to stop raising rates, when the Fed is not even raising rates. The Fed is raising what the Fed pays for overnight deposits in order to increase reserves to increase the debt bubble. It is those rates on deposits in the Fed that determines the interest rates.

ya da ya da ya da -- did you vote? yada yada yada

Yes I did. She got the least amount of votes.

Unfortunately gradually letting air out of bubble balloons is not what we do well. We still have many more quantitative pumps to go, and a 'wonderful' trade deal with China will be announced that in reality is little to nothing different, and I am sure folks will spend their deficit fueled tax refunds early next year. But I am convinced that by next year this time, this world is going to be a lot worse off. The general public just don't care, and nothing will be done to fix it, until there is no other way. Only then will reality set in.

too many people want socialism and Do NOT understand what it really is. and while we are at it, why not build a swinging gate for illegals so they can camp out in Pelosi's garden. yep. best idea yet.

there are a few other sayings

Sticking your head in the sand does not prevent the tide from coming in







all of that is to say that human kind will not reach a state of PERFECTION, but it is not a reason to not continue to try to do better.

so yeah, there will always be wrongs being committed and people being hurt, but we should not use that to excuse doing nothing about those wrongs that we can address.

No, nor does paying attention to news sources that are so far left, that they are treading water. Most of the MSM have lied so much, that they are no long watchable. Or believable.

A few in here have made what they write unfit to read. Calling me stupid, or telling me that I'm blindly following a leader, will only get you one thing, should we ever meet in public.

I've heard these ramblings from these types before, long before I came in here. Usually, they have a pretty hard time hanging onto friends, or have none. I had a great teacher that did that, my ex-father-in-law. I learned to tune him out. It was sad, he thought himself a big shot, yet he couldn't manage a lemonade stand.

You can post whatever you like. There is such a thing call too much.

Thank you for the compliment.

You are welcome. You managed to put an idea into my head.

Nature credits what man debits. It always will until it can't. Debt is an obligation laid upon the future by the past. The larger it gets, the harder it is for the future to happen. There is a correlation between extreme levels of public debt and low economic growth. Nature unlike bankers credits interest free what man debits.

There is a reason why the money that the FED, which is a bank by itself, just like the banks that own it, is not finding its way into the main street economy. It is because the main street economy is too indebted to debt to take on more debt. That is the reason why the velocity of money, the money multiplier and cash monetary base keeps falling at the same time credit out of thin air loaned out as IOU's, the IOU debt monetary base keeps growing. This will not stop until nobody wants to hold the debt anymore. It almost happened twice this year 2018, and Mnuchin was successful in containing it both times. We are in for an interesting 2019, for the debt jubilee will determine what 2019 will bring. In the mean time might as well yodel-a-ee yodel-o-u-dee while the Chinese are increasing their vertical growing operations where they have succeeded in growing 14 lbs of produce per 9 square feet. Talk about nature crediting what man debits.

apparently not in political conversation.

what is really the difference from a 'left' saying someone is following blindly and a 'right' saying someone is believing lies? .... both have their accusations as to the validity and logic behind what the others espouse.

I don't dispute anything you are saying nor am I saying that the current system is wonderful.I don't agree with Einstein's statement on the basis that even if there were no evil men the world is still a dangerous place to live in.If he is implying that evil men make the world a dangerous place and we fail to condemn them,that is a philosophical argument whereas the debate about the financial system is more of a practical debate.My criticism was directed more at the motivation of the OP criticising the system because it was not working for him.The reality is that despite all its flaws and inequities it appears,to me,to be working.If someone can come up with a system that is demonstrably better I'll be happy to support it.As you imply,it is the imperfection (greed) of men that is the basis for many of the problems so it requires a change in our value system rather than our financial system.The financial system will evolve to become more efficient but that does not mean it will be more equitable.I believe that despite all its flaws the current financial system has created an environment which has enabled huge advancement for humanity.It generally rewards the industrious,encourages efficiency and productivity.It may end up catastrophically,who knows ?

I believe it 'rewards' the creative, but that many greedy and evil people have creative minds, while decent and hard working people with honest intentions and loyal humane hearts, just run in circles being told working 'harder' will get them a reward.

As to the change in values. That is another issue. I have heard it both ways. If you beat a dog while wearing red clothes often enough, they will begin to 'feel' hatred toward people in red clothes, meaning that it takes action and repetition to change and create or maintain feelings(or values).

I have also heard that how people feel will motivate how they act. Perhaps both are true, so perhaps both deserve to be given a shot so that the odds are better?

(Hypothecation = Hypothecating)
I am going to try to explain something with the hope of not getting into trouble with the bankers unwritten law.
Hypothecation = to pledge security without delivery of title or possession. It is a practice used in banking today where one pledges collateral to secure a debt as a condition precedent to the debt to serve as a third party collateral pledge for the debtor.

I am going to use what happened in 2008 as an example = All of the big banks mostly used Lehman Brothers (and 1000's of other banks) to dump most of their home mortgages in return for payments. AIG was the insurer that insured the value of those mortgages or in other words the payment stream. The big banks pledged collateral to Lehman that enabled Lehman to buy the bundled mortgages. So what went wrong? = The big banks pledged collateral was a hypothecated con, AIG went bust in their attempt to make the payment stream good, and Lehman Brothers stopped making the payments to the big banks (because it was out of money) that sold them the bundled mortgages for pennies on the dollar. The big banks did not expect this to happen this way, but it did. They lost the payment stream income from those mortgages and had to write down the value of these mortgages that they didn't even own and now have to buy back. That was not good for their balance sheets. So to save their sorry ***, they got Paulson to beg for a Tarp bailout from the taxpayers via the elected representatives. And the rest is history about to be repeated soon.

Now it is 2018 or 10 years later. The very same thing is about to happen again, but this time it is with bundled corporate debt instead of home mortgages and with different players. To me Deutsche Bank is to be the fall bank like Lehman Brothers was in 2008. There is a number of big insurance companies that will go under soon much like AIG did in 2008. But this time there are much bigger players involved. The main two to me, is the USA and Germany and on the sidelines are China and Russia. Then there is Trump with his involvement with Deutsche Bank.

The common people need to learn how to use hypothecation to turn thin air credit that one can create out of thin air just like banks do, but lend it to yourself so the payments are made to yourself, thus the first payment makes the second payment and so on. That is how to fix what is broken.

This post is a shortened version of what is coming.

Bit coin , Krypto currency is bad news they dogging the TAX,
how could you count TAX paid on hard earn currency when Ransom is paid in bit coin, or property bought oversea is in bit coin...

value of dollar to dollar is not same with bit coin that money is production of very evil mind.

i mean manipulative mind. not evil.

As I see it, the living off of derivatised (derivative) debt is coming to an end.

For 2019 I see the GDP numbers falling as the leverage in the economy gets deleveraged, which is exactly what Powell wants to achieve with his interest rates increases. Powell believes he can deflate the risk in asset prices by lowering them much like Volcker did when he headed the Fed. So far that is working. Powell like Volcker wants the money to flow into manufacturing instead of increased government spending. I agree with that. But it is easier said then done. Powell like Volcker did, sees the stock market as a poor allocator of money. I agree. Real companies can't get any money while unreal companies have a PE ratio in the hundreds. It makes no sense. Why should most of the money go into FAANG stocks.

Most of the time the market is forward looking. Right now it sees lower asset prices, a falling main street economy, slower overseas growth and a possibility of an extended trade war and higher interest rates. I feel we will be at least 20% lower before 2020. Then I see a rebound going into the re-election of Trump.

Trump is blaming the Fed for hurting the economy with higher rates, and he hopes the Fed will pause going forward. To me, all of the President’s Tweets suggest that if and when the Fed pauses, he will maintain his tweeting with “I told you so” Tweets.

The interest rate inversion is already causing lending to be less desirable. This inversion is causing banks to be less risk tolerant. The inversion is already signaling a less favorable and more uncertain economic outlook. The banks will simply go long Treasuries like they have in the past, because Treasuries offer a more attractive risk reward opportunity. This in turn creates recessionary conditions in the main street economy for less money will be flowing into the main street economy.

President Trump’s policies to create a fiscal stimulus with an easing of banking standards will only prolong the debt cycle. President Trump triggered an extension of the debt cycle with his tax cuts and additional spending. I can't blame him for doing so, but I have a feeling it will back fire on him soon. The recent mass exodus from leveraged debt and general risk off sentiment are clear signals of the aggressive credit tightening by the banks. They have basically unloaded that debt to the general public via loan guarantees that will backfire on them. Banks are supposed to be in the loan holding business, not selling them as bundled debt that can and are being shorted, and that is what they are doing to off set risks to them.
It will backfire on them, because this is the very thing that will freeze up the financial system.

Positive US interest rate differential will again like in the past weaken the global economy, as the money in the global economy is sucked into US Treasuries for more waste-full military industrial complex spending. Too achieve that waste-full increased spending we will most likely get a shooting war, be it in Ukraine with Russia or Israel with Syria or somewhere else in 2019.

I feel Kushner will be the news man of the year in 2019. Kushner is using his White House position to make money for himself and his father in law. After all both have money ties to Saudi Arabia that is tainting US policy. To me, Estrogen just blackmailed Trump over the Kashoggi killing as (I see it) he has proof that Kushner was involved. Estrogen also has proof that the ISIS is the creation and funding of the CIA in the US, Israel and Saudi Arabia.

I have a feeling that Kushner, Ivanka and Trump Jr will all be indicted in Mueller's investigation in 2019. However I do agree with Kushner that the American public is already so cynical about big money's takeover of this country that his own financial conflicts are chicken feed compared to what is going on. Mattis got caned because he was the author of the Times piece on Trump's inability to be a president.

I expect to see another financial freeze up like we had in 2008, and another tax payer bail out for institutions holding bundled corporate debt gone bad in 2019.

I wish you all a prosperous and happy new year. Learn to create credit out of thin air just like banks do, and lend it to yourself so the payments are made to yourself. That way the fist payment makes the second payment, and the second payment makes the third and so on. Enrich yourself, not the banksters that own the representatives that spend us into bankruptcy.

The biggest problem for the global economy in 2019 and on, will be massive business failures that will lead to bank failures. Most of the western countries are relying on foreign capital to maintain elevated living standards.

Easy credit has acted as a tsunami, lifting up both the demand and the supply side of the global economy to higher levels then would be without easy credit. On the demand side, it encouraged consumers to taking on more debt. On the supply side, it encouraged corporations and entrepreneurs to pursue low profit businesses opportunities. All of this is now a negative.

Simply put, easy money placed the global economy into a cycle of higher debt growth by using debt instead of organic growth. More consumer debt spending fueled more consumer debt. More corporate debt fueled more corporate spending, especially on stock buy backs. Both fed into higher debt growth, which has done little to boost income and employment in the Main Street economy, but it has boosted government spending.

Meanwhile, higher debt helped expand the debt capacity of the economy. This increased debt capacity allowed central bankers to continue with their free credit turned into IOU's policy. That was music to financial markets, which thrive on easy thin air credit.

In recent months, however, things have changed. All of a sudden we have to many IOU's out there. To stop this out of control IOU creation from thin air credit, banks are forced to raise interest rates to find buyers for all of this debt that they do not want to hold. Thus the tsunami of free credit is receding. And that will push the demand and the supply side of the economy to lower levels. But the powers that be could start a war, which is what I feel is about to happen.

On the demand side, the end of free money will make it difficult for consumers to take on more debt. On the supply side, it could push low-profit business off the financial cliff.

Simply put, the end of free money is setting the global economy into a vicious cycle of slower growth. Less spending will fuel waves of individual and business failures.

Compounding the problem this time around is the rise of anti-globalization ideologies around the world, which add to pessimism for the state of the global economy in 2019.

Investors have begun to sense what’s coming, selling shares of economy-sensitive companies lower.

So what to do =

Create your own simple, livable system, of greater self sufficiency, create your own income to live on, operate 100% on cash. Learn how and why governments and businesses push you into debt, to get themselves out of debt, how we have been brainwashed to give our wealth to the money companies. This has to start with creating your own thin air credit just like banks do, lend it to yourself, so the payments are made to yourself, so the first payment makes the second payment, and the second payment makes the third payment and so on.

Learn to be truly independent, you need to owe no money to anyone else but yourself. The trick from here on out is going to be to know the secret of downward mobility to live a higher quality life on lower outside income, thus paying fewer taxes. It all comes down to, how to take the exit ramp from the fast lane of life, years before the bankrupt Joneses have to. For that is where we are headed. Debt can not be the biggest part of GDP forever. One can not borrow yourself out of debt. You can keep trying though.

The only realistic way for the average American or whatever else you are, to achieve true financial independence, is to be debt free. All other so called systems are just ways to get you into debt, while playing funny money numbers game that makes it look like you're building equity. Ask yourself, how did we get into a situation where we only have $2.7T in circulation to pay off a debt with that is now over $80T in the USA alone. Is it fair for a financial institution to give you a $100,000 loan that only costs them $5,000. Why is it that most methods to achieve financial independence involve using the famous OPM = other people's credit money so called. What the pushers of these methods gloss over is that other people expect to be paid back, with INTEREST. Right now the holders of all of this debt see a higher risk, thus demand a higher interest rate for taking that risk.

What really gets me is that reporters and financial people are saying that the Fed is raising rates, when in reality they are increasing the rate of interest the Fed is paying Fed member banks to hold their money at the Fed. The Fed is seeing increased risk, thus wants more money parked at the Fed from its member banks to reduce that risk. It is that increase the Fed pays to member banks for their deposits that determines the interest rates. We are going to see 15%+ interest rates some time within the next 10 years. Also the US$ will loose it reserve status and be worth less then half of what it is in the next 10 years. England used to have its currency as the reserve currency, and England is still here today, and so will the USA after it will have lost the reserve currency status of its currency. Life goes on, it will just be different.

Capital to be money must back itself and possess the potential to obtain things equivalent to its value. If it can't do that it is not money. We no longer have any money in our system that backs itself. It has all become IOU's that has to be paid with more IOU's. Before the Glass Steagall Act was repealed, capital was loaned out as loan capital. The removal of the Glass Steagall Act, made possible for capital to be replaced with bank created thin air credit that is now loaned out as IOU capital. The creators of the thin air credit has replaced money that backs itself with IOU's.

What we have today is usury credit capital imposed via the Federal Reserve, a private corporation that is using thin air credit to exploit the peasantry (people) indirectly by loaning IOU's to the feudal lords (military contractors, infrastructure, etc.) Basically we have government by corporate lobbyists who work for the military industrial and industrial complex.

It is now only a matter of time before entitlements will be eliminated. For the power that be to get people off entitlements they will create a financial disaster to make it happen. If I had a say, I don't, I would use the social security funds to employ them in the profession of self sufficiency (real living) instead of the artificial living we are now doing. We must realize that it is time to stop subsidizing debt creation. agricultural practices that contribute to global warming, and start subsidizing real food growing like what China is starting with its vertical structured farms. We must change farming and land-use practices to restore the soil's capacity to draw down and re-sequester excess carbon from the atmosphere and store it in the soil. And we must learn to use that excess carbon dioxide (CO2) by passing it over a carbon and copper catalyst that is energized with a small electrical jolt to produce a form of ethanol found in beers, wines and spirits (CH3CH20H). Then use that as a fuel to fuel electric generators to run our homes and cars with.

Our artificial living rests on (IOUs) paper promissory notes being ones or multiples thereof like any other production in the system that depends on whether "effective demand" exists, which in turn is presently a function of a belief, that is misrepresented as confidence on the other party that is requiring to suffix the risk, and the trick to read confidence in the system. So which will you miss the most: higher taxes, rising costs, poorly written unaffordable care act, more off shoring of jobs, more collusion in Washington, pay to play, etc? When all is said and done for this artificial lifestyle to continue, somebody has to hold (own) the debt. Debt that can not be paid with more IOU's, for there is no real money in circulation.

To get this all started, learn to create your own thin air credit, loan it to yourself, and make the payments to yourself, so that the first payment makes the second payment, and the second payment makes the third payment, and so on.

Our money system represents debt that has been monetized. The interest lug on this monetized debt is annihilating the middle class. It is the arrival of raw materials times price - man debited, nature credited that delivers earnings. But for that to happen, there has to be a sound money system that is backed by a commodity. The bottom line is that debt cannot be paid with debt and debt generates no aggregate income that is not offset by more debt. It takes production times price to generate aggregate income for an economy. And for that to happen there has to be honest money and we don't have that. In our system, all money is debt money. There is no other source of money except to borrow it into existence. How can debt be retired with debt dollars?

Use QE to enrich the rich by adding debt to the poor and unborn. Use quantitative easing (QE) to pay present unpayable debt by placing that debt on the future taxpayer. Everybody's debt obligation keeps increased as our Treasury debts keeps on increasing. The rich make their money by lending credit nothings to make bank deposits. Let the little guy do that and let him make it payable to himself. That way every payment made can be used to make the next and all payment thereafter. Why should the banksters be able to make loans from thin air money to make deposits with?