Max, Bix, KTFA and More Tuesday 10-22-19
Keiser Report: Glass Floors & Ridiculous Charts (E1452)
Oct 22, 2019
“We are waiting for a RESET…….We need a RESET”
In this episode of the Keiser Report, Max and Stacy discuss the ‘glass floor’ keeping America’s wealthiest and mediocre in power across the corporate and political landscape.
They also discuss the ongoing protests and unrest in Haiti and the role of the collapse of the PetroCaribe program in igniting those.
They also discuss the ‘most ridiculous chart’ in financial history as ‘investors’ are paying the otherwise bankrupt Greece to borrow money again by lending to the nation at negative rates, something even the US isn’t able to do. Yet.
Bix Weir
ALERT! More Repo Bailout Trouble for "Too Big to Fail Banks!!
Just when the mainstream financial media no longer talks about the overnight bailouts...the big banks Belly Up to the Bar AGAIN!! ...and SNIPPY!! DON'T GO TO THE DARK SIDE!!
"We're Being Robbed" - Central Bank 'Stimulus' Is Really A Huge Redistribution Scheme
by Tyler Durden
Mon, 10/21/2019 - 19:05
Authored by Alasdair Macleod via The Mises Institute,
When an economy turns from expansion to contraction there is an order of events. The first signs are an unexpected increase in inventories of unsold goods, both accompanied with and followed by business surveys indicating a general softening in demand. For monetarists, this is often confirmed by an inverting yield curve, which tells them that at the margin the short-term rates set by the central bank are becoming too high for business conditions.
That was the position for the US 10-year bond less the 2-year bond very briefly at the end of August, since when this measure, which is often taken to predict recessions, has turned mildly positive again. A generally negative sentiment, fueled mainly by the escalating tariff war between America and China, had earlier alerted investors to an international trade slowdown, expected to undermine the American economy in due course along with all the others. It stands to reason that backward-looking statistics have yet to reflect the global slowdown on the US economy, which is still buoyed up by consumer credit. The German economy, which is driven by production rather than consumption is perhaps a better guide and is already in recession.
After an initial hit, a small recovery in investor sentiment is understandable, with the negative outlook perhaps having got ahead of itself. But we must look beyond that. History shows the combination of a peak in the credit cycle and tariffs can be economically lethal. A brief return to a positive yield curve achieves little more than a sucker rally. It may be enough to put further monetary expansion on pause. But when that is over, and jobs begin to be threatened, there can be no doubt that central banks will ramp up the printing presses.
So reliant have markets become on monetary expansion that the default assumption is that an economy will always be rescued from recession by an easing of monetary policy, and furthermore that monetary inflation will prevent it from being any more than mild and short. We see this in the performance of stock market indices, which reflect perpetual optimism.
There is a further problem. Other than a rise in bankruptcies, unemployment and negative indications from business surveys, there may be no statistical evidence of a slump. The reason this is almost certainly the case is we are dealing with a combination of funny money and statistics which are simply not fit for measuring anything. The money and credit are backed by nothing, and when expanded by the banking system simply dilutes the quantity of existing money, which if continued is bound to end up impoverishing everyone with cash balances and whose wages and profits do not increase at least as fast as the surge in the quantity of money.
Indeed, the official purpose of the expansion of money and credit is to somehow persuade economic actors that things are better than they really are, and to stimulate those animal spirits. You’d think that with this policy now being continually in operation that people would have become aware of the dilution fraud. But as Keynes, the architect of it all said, not one man in a million understands money, and in this he has been proved right.
Read Full Post Here: https://www.zerohedge.com/markets/were-being-robbed-central-bank-stimulus-really-huge-redistribution-scheme
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Courtesy of Dinar Guru
sandyf [Revaluation of Iraqi Dinar - The best example of Iraqi dinar revaluation is the Kuwaiti Dinar revaluation that occurred in 1990 and people who invested in the Kuwaiti dinar became billionaire over night.] ...
As for Kuwait, there was never any revaluation, during the occupation the KWD was removed as the national currency and then reinstated.
During that time the Central Bank of Kuwait still operated in exile and they never changed anything, a revaluation can only come from the Central Bank, anything else is speculation.
This is how the reinstated value came about. "The banks were instructed to set their accounts at their August 1, 1990 levels, and to pay interest on savings and fixed deposit accounts for the entire period of the occupation."...
KTFA:
Samson: Lebanon: Banks are closed to customers
22nd October, 2019
Banks in Lebanon continue to close for a fourth day in the face of auditors against the backdrop of protests in the country several days ago
The Association of Lebanese Banks, in a brief statement, that "the doors of banks will remain closed tomorrow (today) Tuesday, waiting for the restoration of the general situation in the country
It is the fourth consecutive day that banks have closed in Lebanon after Friday, Saturday and Monday. Sunday is a public holiday in the country
Since Thursday, Lebanon has witnessed angry demonstrations at several points in Beirut and other cities, after the government announced the inclusion of new taxes in the budget next year, affecting the free telecommunications sector via mobile phones, and others, in order to provide new revenues to the state treasury
Earlier on Monday, Prime Minister Saad Hariri announced the cabinet's approval of the 2020 budget without new taxes, with the adoption of several items described as reform, including the reduction of the salaries of deputies and ministers, and the abolition of the Ministry of Information and institutions described as unnecessary, in an attempt to absorb the anger of the street LINK
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Samson: Trump: We entered Syria for 30 days and stayed there for ten years
2019/10/22 10:30
US President Donald Trump says the US military has entered Syrian territory on a 30-day mission to fight ISIS but has been in the country for 10 years.
"They were supposed to be there for 30 days. They were supposed to come into the country and take a quick strike against IS and get out, but they have already been there in Syria for 10 years," Trump told a news conference on Monday.
A US newspaper quoted a senior US official as saying that President Trump has been considering since last week about the survival of about 200 "commandos" in the north-east of Syria to fight terrorism, noting that the US forces that will be kept along the border with Iraq, outside " The safe zone "agreed between US Vice President Mike Pence and Turkish President Recep Tayyip Erdogan. LINK
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Trump talks about a preliminary deal with China and is optimistic he will sign soon
2019/10/22 15:36
US President Donald Trump has spoken of progress in drafting an initial trade agreement with China, likely to be signed next month.
Trump remains optimistic about the chances of Beijing and Washington reaching a mini-deal, announced earlier this month, in a sign of improvement in easing the escalation over the devastating trade war between the two countries. Trump said at the White House: "We believe we will be able to sign a complete document with China on the first phase."
US Trade Representative Robert Lighthizer said efforts to forge the deal ahead of the Asia-Pacific Economic Cooperation summit in Chile next month were "on track", although there are still some things that have not been finalized. "Our goal is to finish the first phase of the agreement before your departure to Chile," Lighthizer told Trump.
Trump said he expected the initial agreement to be signed on the sidelines of the summit when he meets Chinese President Xi Jinping. Although little detail has been given about the mini-deal, it includes China's increased purchases of US agricultural products, as well as intellectual property, financial services and currency exchange, according to the White House. Trump said on Monday that the Chinese were "starting to buy." LINK