We Are Now in a Full Blown Crisis - Gregory Mannarino Video

Gregory Mannarino

The “Lie” is in what they aren’t telling us. Crime of omission.

What I’m laughing at is the only profits or the only Revenue that they’re talkin about is the banks forget about retail forget about manufacturing look at the earnings of the banks will if the damn banks are doing so damn good why is the Fed injecting billions into them?

The slowest crash in history is what we are living thru right now… These corps will be in serious trouble in a not so distant future, unless of course they also follow the central bank approach and just keep borrowing and buying – they will of course be given the money free in order to do so…. Not that it matters that the value of that said money is stolen from others… Hey ho I’m waiting on a massive payout from a car crash and hoping this shit stays together for another 3 months so I can move it into precious metals and some crytpo… Then wait for the arse to fall out of it all and start hoovering up worth while assets… Yes please. But with my luck over the last 2 years it won’t last that long, nothing gone my way since the accident having to sue doctors, lawyers and the other driver…. Please god for once go my way!

We are in a full blown DEPRESSION.If it walks like a duck and quacks like a duck it is a duck.

When debt is created the interest to pay on the debt is NOT created. It takes more debt in the future to pay the principle and interest on the previous debt creating an even bigger deficit of future money. If they quit printing it all crashes at once. If they keep printing it all crashes eventually. Take your pick.

Economy is sticks and stones no cement.

Retail Sales are the back bone of America . Retail stores are closing. Amazon is getting bigger . ? HOW MUCH TAX IS AMAZON PAYING ? ? GOOGLE’S TAXES ?

The stock market is being frozen by the bankers.

The Coming Global Financial Crisis: Debt Exhaustion

Authored by Charles Hugh Smith via OfTwoMinds blog, ZeroHedge

The global economy is way past the point of maximum debt saturation, and so the next stop is debt exhaustion.

Just as generals fight the last war, central banks always fight the last financial crisis. The Global Financial Crisis (GFC) of 2008-09 was primarily one of liquidity as markets froze up as a result of the collapse of the highly leveraged subprime mortgage sector that had commoditized fraud (hat tip to Manoj S.) via liar loans and designed-to-implode mortgage backed securities.

The central bank “solution” to institutionalized, commoditized fraud was to lower interest rates to zero and enable tens of trillions in new debt. As a result, total debt in the U.S. has soared to $70 trillion, roughly 3.5 times GDP, and global debt has skyrocketed from $84 trillion to $250 trillion. Debt in China has blasted from $7 trillion 2008 to $40 trillion in 2018.

A funny thing happens when you depend on borrowing from the future (debt) to fund growth today: the new debt no longer boosts growth, as the returns on additional debt are increasingly marginal. This leads to what I term debt exhaustion: lenders can no longer find creditworthy borrowers, borrowers either don’t want more debt or can’t afford more debt, and the cost and risk of the additional debt far outweigh the meager gains. Whatever credit is issued is gambled in speculations that the current bubble du jour will continue indefinitely.

Unfortunately, all central banks know how to do is goose liquidity to inflate asset bubbles and juice the issuance of more debt. If asset bubbles start to deflate, then central banks start buying mortgages, empty flats, stocks and bonds to prop up markets that would otherwise implode.

Equally unfortunately, propping up asset bubbles and stimulating more debt to chase speculative gambles only increases the fragility of the asset bubbles and the economy that has come to rely on them for “growth”. A useful concept here is debt saturation: just as an absorbent material can only hold so much water, a corporation, household or economy can only support so much debt before servicing the debt reduces income and increases the risk of default.

The global economy is way past the point of maximum debt saturation, and so the next stop is debt exhaustion: a sharp increase in defaults, a rapid decline in demand for more debt, a collapse in asset bubbles that depend on debt and a resulting drop in economic activity, a.k.a. a deep and profound recession that cannot be “fixed” by lowering interest rates or juicing the creation of more debt.

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https://www.zerohedge.com/news/2019-02-04/coming-global-financial-crisis-debt-exhaustion

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