Citibank: World economy trapped in ‘death spiral’

The universe has patterns. Either go with the flow or pay later. Looks like we are “paying later.”

A serious recession would be terribly trying particularly in light of the geopolitical jockeying going on right now. Acute financial pressure, and it is already acute in some parts of the world, makes for instability. Leaders do stupid things when countries are in economic pain.

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Sanders Fundraises Off Goldman CEO Blankfein’s Comments

He should, and in this very narrow statement Sanders is almost correct. What Sanders does not mention however is that the reason Goldman Sachs acted the way it did, indeed why it COULD act the way it did in the lead up to 2008 was because its “greed” was facilitated by the Federal Reserve. The central planners wanted Goldman Sachs and the other banks to leverage themselves out. This was the goal. The Great Recession was created by the Federal Reserve,

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And now a clip of Bernie Sanders taking Hillary Clinton to task (at the debate) for the $600,000 she’s taken from Goldman Sachs in the past year (VIDEO)

We have no horse in the presidential race as we often say but we sure have an issue with Government Sachs, the bank which long ago should have died but was saved by virtue of its connections in government. (Not the only bank.) The bank then, post-2008 went on to expand further around the world all fresh and “recapitalized.” (Recapitalized with your money.)

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Fed ends ‘too big to fail’ lending to collapsing banks

Yeah, well maybe officially. If tomorrow Citi or JPMorgan were to blow up I’m pretty sure the Fed would be right there to prop the crony banks if it had to. (In the Fed’s eyes.)

But this looks good for the Fed. It signals “recovery.” Something which is particularly important in the lead up to a potential rate hike later this month. So great. No more too big to fail.

Right.

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Bernanke: More financial executives should have gone to jail

Yup, that’s Ben Bernanke. The early years.

Well no kidding Mr. Bernanke. What makes you think that? Now?

It should be noted that it is very hard to write campaign checks from prison. That is really frowned upon. Outside of the big house however funds can flow to influence peddlers freely. And Obama made it clear who the bankers owed for their “freedom” when he explained to a group of senior banking executives post-acute crisis that the only thing standing between them and the “pitchforks”

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The Great Malinvestment in China (and America), and the pleasure and pain of monetary tequila

Cheap money feels good initially. Nearly everyone is happy when central banks open the floodgates (or helicopter doors) and cash spills into the economy. Hooray! Money! Why is it here now instead of yesterday? Who knows? Get while the getting’s good. Look, the stock market’s rising – whoopee! Monetary tequila. Bottoms up!

But the morning, the aching, head thumping morning always comes after such a binge.

“All I know is Ben Bernanke was tending bar. Goldman Sachs was buying me drinks.

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Robert Reich: A revolt is taking place against the “ruling class” (He’s right on this, Wrong on most everything else)

Mr Reich generally needs to be taken with a grain of salt. He has been, and as far as I know, continues to be fundamentally wrong on the most important economic questions. Saying that, he has flashes of insight on political issues, and here’s one.

Of course we issue the standard disclaimers with this piece that we do with many of the folks we choose to feature here who we feel are too enamored with the state.

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No question that “low interest rates have exacerbated the wealth gap between the poor and the rich because the rich have assets.”

Michael Bloomberg said this recently and he is right. If one had assets prior to 2008, particularly of the stock variety, there is a very good chance that your portfolio is looking pretty good these days. The Fed through various means has inflated markets artificially.

If however one had no assets prior to 2008, or went bust during the chaos of the Crash one is probably still struggling.

The Fed, the central planners, have made the rich much richer.

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Forget Recession: According To Caterpillar There Is A Full-Blown Global Depression

Caterpillar sales have been declining for over 2 years. Latin American sales have fallen off a cliff. Caterpillar makes heavy industry construction equipment. Draw your own conclusions.

It is interesting to note that the decline is not as sharp as during the “Great Recession,” it’s more stretched out and has been shallower. However it has been steady and steady declines are the thing of maturing depressions.

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Why monopolies only survive with the backing of government (Video)

If you really want to understand why the crony capitalist system is so insidious as well as ubiquitous I highly recommend listening to this bit from the master Murray Rothbard. If you really want to get what is so messed up about government and the “privavte sector” partnering up, one must know at least a little bit of his work.

Warning though. Rothbard can rattle one’s whole understanding of politics and economics.

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The world is defenseless against the next financial crisis, warns ‘central bank of central banks’

The reason we had the Crash in 2008 was because the Fed kept rates too low for too long. In response to the tech implosion and then the 9-11 attacks Allan Greenspan and the FOMC panicked and ended up inflating a worldwide housing boom which morphed into the disaster (to put it mildly) which is the Great Recession. There’s more to it than that but that’s basically what happened.

Consider now that Ben Bernanke (and Janet Yellen) have kept interest rates much lower for even longer than Greenspan did.

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Bernanke Gets American History Wrong Too

The principal author of our current economic ills doesn’t seem to know history any better than monetary policy.

When the Obama administration announced that it was planning to replace Alexander Hamilton on the ten dollar bill with an unspecified woman, former Fed Chairman Ben Bernanke leapt into the fray. He said he was “appalled” by the decision since Hamilton “was without doubt the best and most foresighted economic policy maker in US history.” He proposed that Andrew Jackson be removed from the twenty dollar bill instead.

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