Date:March 11, 2016

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ECONOMY : ECB FISCAL – MONETARY POLICY : Does Mario Draghi is totally deranged?

The magicians -The Pigasus experiment – Fall.! Does the Neo- Keynsean theories and principles,regarding the western capitalistic economies,are not working enymore,?
Keynsean  theories are used and applied in ex- free market economies,and the role of Central Banks.was limited,connected to the plans of a govermend,to which C.Banks,WITH THEIR FISCALMONETARY policies,used to provide the required assistance and financial instruments, to politicians,to accomplish their public financial objective targets..
Now days there is no capitalistic system.There is only the so called cannibalistic mafia banksters corporative system,or neo- bolsevicism-leftist-globalist system,which is based only in fraud -robbery-deception-manipulation-greed.
There are no principles on this system,because there is no morality-values-ideals invested on this totally corrupted-dissintegrated system.
The financial system in western economies,as has been evolved the last decates,had one goal,by design.To create businnes-individuals,investors-consumers =Debt Slaves!!
The decision makers therefore,either politicians or central bankers,are not to be considered as stupids,
because they are not!!They are more than well paid, plus any additional gifts and presents (sometimes millions),for favors and services provided to their masters.The most possible,and quite obvious to the experts,they are part of the game,working hard to accomplish and fulfill their criminal master,s plans. Certainly not all of them.
There is no Logical reasonic on the decisions taken either by the EEU or ECB leaders-politicians or Technocrats-buraucrats,in respect of the national -ultranational debt issue.
The AUSTERITY policies applied by the leading EEU countries ( Germany ),or The EEU High Commision,and afterwards imposed to *sick* countries,didn,t resolved or provided any assistance,for solving the problems.On the contrary they almost totally destroyed the countries,which supposevely the EEU offered their assistance and solitarity.
Millions of people lost their jobs,and huntred of thoudands of  houshold units and families,left without income.Most of the small-medium enterprises closed their activities or shut down,because are left without capital to run their businnes.More people left without jobs and income,and this resulted to lower demand -spending -consumption ,and for more businnes shut down (- accelarator).
This is not Policy.It is more likely cocoos-nest lunatic behaviour..By intention and design!!
How Mario Draghi and the ECB  expects to create motives and the sphycological envirement for small or big investors,  to create new jobs and new opportunities,if both the consumers and the investors are allready drown in debts-left also without income coming in.
Most of the famous economists and experts,they suggest that the play of the Central Bankers with the interest rates-especially the negative interest rates-is in no way to have possitive outcome for the economies.The most possible, is going to blow up in their faces,resulting to Bank runs by the depositors,who see now, that their money,instead of getting increased,are getting less with the negative interest rates applied by the banks!!
The most possible, as the experts are suggesting,we are going to see, not only bank runs and bank,s bankruptcies,but the collapse of the whole financial system,and the beginning of the EEU disintegrasion.It is a warning and a potential outcome.
We hope and pray,that this is not going to happen.
For the time being well done to all decision makers in EEU,who with their visions(!!!) contributed to this great accomplishmend and the fullfilmend of their masatermind  master,s plan .!!!
Burning Wings!

The Author

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* 1 Picture : 1000 words !!!!


The third magician is missing on flight!Where is Mario ?
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Stockman10

Stockman’s Corner

Draghi’s Deadly Derangement

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* Deranged Personality : Definition
The individuals whom  their personality is been exposed
for long-long time to fraudulent intentions.

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Draghi’s Deadly Derangement  

Yes, the man is totally deranged, and so is the entire eurozone policy apparatus. Like much of officialdom elsewhere in the world, the ECB is attempting to fight low growth and low inflation with monetary nitroglycerin. Its only a matter of time before they blow the whole financial works sky high.
Low real GDP growth in the eurozone has absolutely nothing to do with the difference between 0.3% on the ECB deposit rate versus the new -0.4% dictate announced this morning; nor does QE bond purchases of EUR 80 billion per month compared to the prior EUR 60 billion rate have anything to do with it, either. The only purpose of such heavy handed financial intrusion is to make borrowing cheaper for households and businesses.
But here’s what the moronic Mario doesn’t get. The European private sector don’t want no more stinkin’ debt; they are up to their eyeballs in it already, and have been for the better part of a decade.


The growth problem in Europe is due to too much socialist welfare and too much statist taxation and regulation, not too little private borrowing. These are issues for fiscal policy and elected politicians, not central bank apparatchiks.
As shown in the chart below, the eurozone private sector had its final borrowing binge during the initial decade of the single currency regime through 2008; debts outstanding grew at the unsustainable rate of 7.5% annually. But since then the eurozone private sector has self-evidently been stranded on the shoals of Peak Debt.
Outstandings have flat-lined for the past eight years—-not withstanding increasingly heavy doses of ECB interest rate repression that have finally taken money market rates into the netherworld of subzero.

Nor has the approximate EUR $700 billion of bond purchases since QE’s inception last March made one wit of difference. Bank loans outstanding to the private sector were EUR 10.24 trillion at the end of January or exactly where they stood in March 2015 when Draghi and his merry band of money printers went all in.
Euro Area Loans to Private Sector

By the same token, it is damn obvious that low inflation is not a problem, and that, in any event, it is not caused by lack of money printing and insufficient interest rate repression by the goofballs assembled at the ECB’s swell new headquarters in Frankfurt. The eurozone’s respite from its normal 1-2% annual dose of headline inflation is entirely imported via the global tide of plunging oil, commodities, steel and other industrial prices.
That welcome tide of imported deflation, in turn, is actually improving the eurozone’s terms of trade and raising consumer living standards; and it is not remotely connected to anything the ECB has done or not done in the last year or even four years.
Instead, the global deflation is a consequence of the massive malinvestment in mining, energy, industry, transportation and distribution which has resulted from the 20-year global credit binge enabled by the world’s convoy of money printing central banks. Incremental debt of $185 trillion or nearly 4X GDP growth during that period has crushed the world’s capacity for investment and production led growth.

Global Debt and GDP- 1994 and 2014

The overhang of excess capacity everywhere on the planet is also drastically compressing prices, margins and profits, but the major impact is in the Red Ponzi and its EM supply chain; and the secondary impact is on engineered machinery, high tech and luxury goods exporters, including Germany and other eurozone export strongholds.
It goes without saying, however, that today’s …..
Read more..
http://davidstockmanscontracorner.com/draghis-deadly-derangement/

*Phodos added

Economy : Global trade is absolutely imploding.

Are You Kidding Me? Chinese Exports

Plunge 25.4 Percent Compared To Last Year –

imports fell 13.8 percent compared to a year ago.

We just got more evidence that global trade is absolutely imploding. Chinese exports dropped 25.4 percent during the month of February compared to a year ago, and Chinese imports fell 13.8 percent compared to a year ago. For Chinese exports, that was the worst decline that we have seen since 2009, and Chinese imports have now fallen for 16 months in a row on a year over year basis. The last time we saw numbers like this, we were in the depths of the worst economic downturn since the Great Depression of the 1930s. China accounts for more global trade than any other nation (including the United States), and so this is a major red flag. Anyone that is saying that the global economy is in “good shape” is clearly not paying attention.

Things are not getting better in China as Exports crashed 25.4% YoY (the 3rd largest drop in history), almost double the 14.5% expectation and Imports tumbled 13.8%, the 16th month of YoY decline – the longest ever. Altogether this sent the trade surplus down to $32.6bn (missing expectations of $51bn) to 11-month lows.

Chinese Exports - Zero Hedge
So much for that whole “devalue yourself to export growth” idea…

I don’t know how anyone can possibly dismiss the importance of these numbers.  As you can see, this is not just a one month aberration.  Chinese trade numbers have been declining for months, and that decline appears to be accelerating.
Another very interesting piece of news that has come out in recent days regards the massive layoffs that are coming at state industries in China.  According to Reuters, five to six million Chinese workers are going to be losing their jobs during this transition…

(Read More….)
http://theeconomiccollapseblog.com/archives/are-you-kidding-me-chinese-exports-plunge-25-4-percent-compared-to-last-year

ECONOMY : We Have Entered Very Dangerous Territory’

March 9, 2016

‘We Have Entered Very Dangerous Territory’ –

Peter Schiff Warns On America’s Last Chance –

More Proof Global Trade Is Absolutely Imploding!

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By Stefan Stanford – All News Pipeline – Live Free Or Die

The stories telling us almost everything we need to know about the forthcoming financial collapse come to us from across the news spectrum and include an interview with Peter Schiff on Rick Wiles TruNews in the 1st video below in which he tells us we all can see what’s happening to the economy but the establishment isn’t ready to admit it. Schiff also tells us that he strongly suspects an upcoming QE4 and the FED to go back down to 0% interest rates sometime before the election as we learn we’re quickly approaching America’s last chance at redemption. With the elimination of cash and a cashless society in our future that will simply offer government more control over the masses and the ultimate surveillance state, Schiff points out that such a society merely allows govt to now be able to take control over the underground economy and gives them more of an ability to tax everything.

Schiff and Wiles also touch upon how they believe the elimination of cash might happen. Will cash simply be ‘grandfathered out’? Wiles says instead of eliminiating cash, we should be eliminating the FED, a much better idea that would actually have a chance to fix the underlying problems we face. Then we learn that they are already eliminating cash as there used to be much more of it than there is now… Schiff even mentions that there used to be a $100,000 bill. We’re told a day of reckoning is clearly coming as ‘debtor days are over’ and ‘everybody is upset’ as we enter a ‘cycle of unrest’ with much of once was a very rich Western civilization crumbling to be replaced by the growth now happening in China and the East.

With some European banks (Austrian) being told to stockpile cash, Wiles and Schiff touch upon how Americans can invest to help ourselves get through what’s coming and what offers us the best chance to earn money going forward. Schiff also tells us that the European banks ‘experiment with negative interest rates’ has ‘blown up in their faces’ and gold and silver are the only real answers to a system predicated on fiat currency.
Schiff and Wiles also touch upon what Susan Duclos told us on ANP on Monday, the ‘alternate reality’ that many members of government, including Barack Obama and Hillary Clinton, are living in by suggesting the economy is doing just fine. While Obama tells us unemployment is going down…Schiff tells us why…because so many people are taking low paying jobs just to get by and others are dropping out of the work force for all together. They also bring up the fact that more Americans are now paying a larger percentage of their pay towards rent and other living expenses than ever before.
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We also got more proof today that global trade is absolutely imploding in this story from Michael Snyder over at the Economic Collapse Blog who tells us that China’s global exports have plunged by more than 25% compared to February 2015. China’s imports also fell more than 13%, the 16th month in a row over a year to year basis imports have fallen and China’s exports are at the lowest level they have been since 2009.

We also learned from Snyder that the collapse of Italy’s banks are now threatening to plunge the entire European financial system into chaos while days ago he told us that the economic collapse of South America is also well underway. Back in the end of February, even CNN Money got into the mix telling us that store closings are the hottest trend in retail while over at Infowars we learn from former Ronald Reagan cabinet member Paul Craig Roberts that the global financial system is a larger threat to Americans than terrorism and, as he tells us, it’s quite easy to see that the financial system has done more damage to Americans than terrorists could ever possibly inflict.
At ANP we’ve often wondered why ‘terrorists wearing suits and ties and carrying briefcases’ are legally permitted to steal Americans money through the games of corruption they play, and they do so every day without being charged, while only those carrying guns and knives while committing their financial crimes are held responsible for their actions. How is it that corrupt bankers can legally steal millions, leaving death and destruction in their path, and they go unpunished? Certainly unpunished most of them go in this life but hell so obviously awaits them.

Over at Zero Hedge via Simon Black over at Sovereign Man we’re told that a 4,000+ year old financial indicator says that a major crisis is brewing. Telling us all about the ever important gold to silver ratio that stretches all the way back to the reign of ‘Sargon the Great’ of the Akkadian empire, we learn that in times of extreme turmoil, the ratio goes steadily up.

Telling us that all the way back in 1792 in the US, the gold to silver ratio was pegged at 15 to 1, we’re also told that throughout the 20th century it averaged about 50 to 1. Just prior to World War 2 while Adolf Hitler rolled into Poland the ratio went all the way up to 98 to 1 while in 1991, when the 1st Gulf War began, it skyrocketed to 100 to 1. As their story was being written, the ratio had once again gone up quite high, to an 81.7 to 1 ratio, we’re also told that only 3 times in modern history has it gone that high: the 2008 financial crisis, the Gulf War and World War 2. As the chart below shows us, we have clearly entered dangerous territory.

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In the first video below, Peter Schiff joins Rick Wiles from TruNews at the 1 hour 1 minute mark. In the 2nd video below we learn that biometric banking is about to be forced upon us whether or not we like it with VISA already using Africa as a testing ground for what is likely soon coming to America.

SOURCE

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