Financial War is over, we all lost.
Financial War is over, we all lost.
Extracting future value into the present via leveraging credit up the pyramid scheme is likely at its’ end. U.S. financials are slowly crawling back into reality as their losses are becoming more clear. Non-performing for auto and student loans are periodically glimpsing at us and we feel the attempt by capital to automate as much as possible to extract the fleeting dollars of consumer demand into profits to keep alive their perceived solvency.
China is slowly emerging from a capital investment boom that turned bust and will lead to a deflationary tornado of pain for every actor involved. Consumers are being hit with higher prices and fleeting jobs as global demand for most product implodes. Cities of empty apartments that are unaffordable by most locals won’t be filled until they flood the market and clear at rock bottom prices. Unfortunately even if that does occur some won’t be able to afford ongoing costs with infrastructure and related upkeep as it relates to these buildings. Nationalism is periodically used to re-direct the energy of anger at the problems that aren’t being solved. Tariffs that are now being erected will only increase barriers faced by Chinese goods abroad
Japan is imploding as it monetizes its’ debt and consolidates the robbery of the elderly citizenry. It destroyed the hope of any new generation sprouting through wage stagnation and repressing its’ youth and the job market they participate in. It keeps attempting to push through inflation and the success it gains is reciprocated by the confiscation of purchasing power of its’ population. Yen is strengthened every time it is revealed that negative rates of monetized bonds essentially reduce the volume of its’ debt.
Europe is approaching Japanese solution to the same problem. Too many bad debts, too little capital for the banks to absorb them other than by making the destitution of the population an institutional priority. Europe is slowly attempting to exchange old problems for new problems in an attempt to reduce the number of problems by increasing the number of problems. I know complicated stuff, but it apparently does not work. Whom knew. Elite seems to be focused on furiously doing nothing, because attempting to lead or actually solve anything is not possible without upsetting someone. It seems strange to most bureaucrats and leading politicians that doing nothing is the right thing to do because it forces discipline, and outward scape-goating for self-created problems. There is a fundamental consensus that there has to be consensus even if the problem becomes deadly to functionality and well being of the system at large it may not solve it, for that solution may undermine the system, and whom knows where that will lead?
Across the spectrum the youth has been bamboozled by education that does not give fundamental skills or knowledge, student loans that create indentured servitude, and job market that provides meager-to-non-existing wages or ability to build up a career or an ability to survive in the system as it currently exists.
The elderly have been swindled by the mortgages and financialization of their savings into the perpetual investment holes of fluctuating markets, while being provided negative real rates of return throught the suppression of interest rates. Healthcare costs have been given the ability to carry loan shark growth rates in order to put to good use anyone falling into the system that needs care to suck out any savings they have.
Ah the bright future ahead of us, looking at the blazing sun where the global warming is shining bright, although it seems kind of cooler these past few decades. I know soon the message will change but until then we have this amongst a myriad of other useless distractions. Perhaps when virtual reality becomes the norm we can be provided virtual government services for which we pay real money but until then we can simply imagine them as they should be.
Strange times are upon us, and yet the vortex of yesterday is slowly making its way toward the horizon of the future. It is catching up with all the stupidity and pyramid schemes built on the numerical impossibilities tied into the weaving threads of corruption. Things always come undone at the worst possible moment, the question is; For whom?