Implode-Explode Heavy Industries news feed http://implode-explode.com/ Tracking the many faces of the global credit implosion. en-us iehi-feed-62830 Sun, 20 Aug 2017 21:52:15 GMT 13 Ways to Strengthen America's Economy http://implode-explode.com/viewnews/2017-08-20_13WaystoStrengthenAmericasEconomy.html iehi-feed-62829 Sun, 20 Aug 2017 19:15:46 GMT The Stock Market Has Been Magical. It Can't Last. http://implode-explode.com/viewnews/2017-08-20_TheStockMarketHasBeenMagicalItCantLast.html The stock market has been so placid that declines of a mere 1.5 percent have been treated like real news. The Standard & Poor's 500-stock index dropped that much on Thursday. Days like that can be unsettling, but in the span of market history, they amount to the slightest of headaches.

The deeper news isn't immediately visible day to day, but it is this: The stock market has been operating in an extremely rarefied world of heightened calm, one that is unlikely to continue. It is as if, after the election in November, Wall Street entered an enchanted zone. That is bound to end.

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iehi-feed-62826 Sun, 20 Aug 2017 18:15:32 GMT We're racing towards another private debt crisis - so why did no one see it coming? (UK) http://implode-explode.com/viewnews/2017-08-20_Wereracingtowardsanotherprivatedebtcrisissowhydidnooneseeitcomin.html Corporations are just raking in the profits and sitting on them. The household sector, on the other hand, is a rolling catastrophe. Austerity has meant falling wages, less government spending on social services (or anything else), and higher de facto taxes. This puts the squeeze on household budgets and people are forced to borrow. As a result, not only are households in overall deficit for the second time in British history, the situation is actually worse than it was in the years leading up to 2008.

And remember: it was a mortgage crisis that set off the 2008 crash, which almost destroyed the world economy and plunged millions into penury. Not a crisis in public debt. A crisis in private debt.

The situation is not much different in the states...

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iehi-feed-62823 Sun, 20 Aug 2017 14:07:48 GMT Donald Trump Finally Comes Out of the Closet http://implode-explode.com/viewnews/2017-08-20_DonaldTrumpFinallyComesOutoftheCloset.html At this point, something has become undeniable. Trump voters who supported him based on the idea that he would bring forth an agenda of economic populism got played. I understand that many other people just voted for him as a middle finger to the system, but for the true believers who thought he had their backs, it's now long past the time to pack up your bags. I don't say this out of pleasure, I genuinely hoped he would push forth an agenda of economic populism, but now we know for certain this is never going to happen. That much is pretty undeniable.

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Populism isn't dead in America, but right populism as it exists today is. I just hope the next iteration is a lot more genuine, and a lot more sane.

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iehi-feed-62821 Sat, 19 Aug 2017 22:38:26 GMT Doug Noland: Crisis of Confidence http://implode-explode.com/viewnews/2017-08-19_DougNolandCrisisofConfidence.html ...before we segue to the mess in Washington, there are as well major near-term uncertainties with respect to global monetary management. There were indications this week that both the ECB and Federal Reserve lack the confidence and consensus necessary to communicate a plan for unwinding what have been years of unprecedented monetary stimulus. It's not confidence inspiring.

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There should be little doubt that the boom and bust dynamics experienced over recent decades have taken a toll on our nation's social and economic fabric. And while many want to blame "globalization," I believe much that we label "globalization" would be more accurately understood as fallout from years of unfettered global finance. Could NAFTA have been so destabilizing to U.S. manufacturing without endless cheap finance flooding into Mexico (and EM more generally). How dominant would China be today without essentially limitless amounts of virtually free "money" to finance over-investment the likes of which the world has never experienced?

I strongly believe that unfettered finance has been instrumental in the long period of U.S. deindustrialization -- the transformation from a manufacturing powerhouse into an experiment in a consumption and services-based economic structure. Bubbling securities markets and booming Wall Street finance were integral to this fateful structural shift.

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iehi-feed-62815 Fri, 18 Aug 2017 21:08:18 GMT Rickards: The Elites Will "Freeze" the Financial System in Next Crisis http://implode-explode.com/viewnews/2017-08-18_RickardsTheElitesWillFreezetheFinancialSysteminNextCrisis.html Eventually, the entire financial system will be frozen solid and investors will have no access to their money.

Some of my readers were skeptical of this scenario. But I researched it carefully and provided solid evidence that this plan is already in place -- it's just not well understood. But the ice-nine plan is now being put into practice.

Consider a recent Reuters article that admitted elites would likely shut down the entire system when the next financial crisis strikes.

The article claimed that the EU is considering actions that would temporarily prevent people from withdrawing money from banks to prevent bank runs.

Seems likely that they will attempt this -- there's just to much dependence built up in the decades-accumulated stock of debt-fueled paper assets to "admit" that they are near-worthless...

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iehi-feed-62813 Fri, 18 Aug 2017 20:58:29 GMT The Stock Market Bubble is So Big Even the Fed's Talking About It http://implode-explode.com/viewnews/2017-08-18_TheStockMarketBubbleisSoBigEventheFedsTalkingAboutIt.html iehi-feed-62808 Fri, 18 Aug 2017 14:47:27 GMT Donald Trump Is a Lame-Duck President http://implode-explode.com/viewnews/2017-08-18_DonaldTrumpIsaLameDuckPresident.html ... thinking about Trump as a lame duck who will just have to stumble through the rest of his presidency makes more sense, at least at the present moment, than expecting that Trump will be removed from office, whether by resignation, impeachment, or some more far-flung possibility.  The president shows little sign of being the sort of person who could be forced into resigning--after all, after he was bullied by staff into condemning racism, he was so agitated that the following day he defended the Charlottesville marchers with a more strongly worded statement.

... There is one other possibility [for redemption]: a crisis. In moments of catastrophe, citizens like to rally around even an unpopular president, seeking unity and leadership. But the signs so far about how Trump might handle a genuine, huge crisis are not promising. In fact, given the chance to deal with a crisis, he has often just made things worse for himself. Over the last week, his improvised language inflamed an already dangerous standoff with North Korea. Then he turned a national tragedy in Charlottesville into a huge personal liability for himself out of an inability to simply condemn racism and leave it at that.

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iehi-feed-62802 Thu, 17 Aug 2017 17:03:15 GMT Central banks: a sausage based conundrum http://implode-explode.com/viewnews/2017-08-17_Centralbanksasausagebasedconundrum.html iehi-feed-62798 Wed, 16 Aug 2017 19:28:41 GMT Dollar erases gains after Trump announces business council disbanding http://implode-explode.com/viewnews/2017-08-16_DollarerasesgainsafterTrumpannouncesbusinesscouncildisbanding.html iehi-feed-62797 Wed, 16 Aug 2017 19:26:17 GMT Trump's business advisory councils disband as chief executives repudiate president over white-supremacist apologetics http://implode-explode.com/viewnews/2017-08-16_Trumpsbusinessadvisorycouncilsdisbandaschiefexecutivesrepudiatep.html Trump announced the disbanding of the two councils -- the Strategy & Policy Forum and the Manufacturing Council, which hosted many of the top corporate leaders in America -- amid a growing uproar by chief executives furious over Trump's decision to equate the actions of white supremacists and protesters in remarks Tuesday at Trump Tower.

But those groups had already decided to dissolve on their own earlier in the day, a person familiar with the process said. JP Morgan Chase chief executive Jamie Dimon, a member of the "Strategy & Policy Forum," told employees in a note on Wednesday that his group decided to disband following Trump's bizarre press conference on Tuesday, in which he appeared to show sympathy for some of the people who marched alongside the neo-Nazis and white supremacists in Charlottesville.

They didn't QUIT, Trump FIRED them! All hail Master-Race God-Emperor Trump!

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iehi-feed-62792 Wed, 16 Aug 2017 14:40:07 GMT Inequality and "The Rigged System": Democrats Search For a New Message http://implode-explode.com/viewnews/2017-08-16_InequalityandTheRiggedSystemDemocratsSearchForaNewMessage.html The financial crisis and ensuing recession scrambled Americans' fears and desires, leaving an electorate defined by some variety of anger: at stagnant paychecks, at bank bailouts and government spending, at police shootings of blacks and at women's lower wages; anger against a "rigged system." Unfortunately for the Democratic Party -- the party of government -- most voters tend to think government is doing the rigging.

The most inspiring campaigners, Senator Sanders on the left and Donald J. Trump on the right, did not convince voters of the wisdom of carefully honed policy prescriptions. They ran on an apocalyptic vision of America under siege, with clear enemies in sight. Mr. Trump, an interloper of scant ideological baggage who took over a Republican Party at least as clueless as Democrats about voters' preoccupations, offered the more powerful apocalypse.

The question for Democrats looking for a path out of the wilderness -- for Mr. Cowan and Senator Sanders; for Senator Warren and the Senate minority leader, Chuck Schumer, who hopes to woo voters by offering a "Better Deal" -- is whether they can appeal to voters still angry because their lives, their aspirations and their sense of self have been derailed over the last few years.

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To recapture the presidency, Democrats must recover the support of the middle class -- people in families earning $50,000 to $150,000, whose vote went to Mr. Trump. Three-quarters of voters in swing states are white, according to data from the Cook Political Report presented by Third Way. Mr. Trump won white voters by 21 percentage points.

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Joan C. Williams, a professor at the University of California Hastings College of the Law who this year published "White Working Class: Overcoming Class Cluelessness in America," a critique of liberals' inability to understand this constituency, argues Democrats can offer an inclusive platform that appeals to all Democratic constituencies, like the proposal presented by Senator Schumer focused on jobs.

... Professor Williams argues against a move to a Democratic center that is friendly toward Wall Street and favors trade agreements, "two of the reasons that the working class is so done with the Democratic Party."

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iehi-feed-62788 Wed, 16 Aug 2017 00:05:12 GMT Rogoff, Orwell and Kafka http://implode-explode.com/viewnews/2017-08-15_RogoffOrwellandKafka.html iehi-feed-62783 Tue, 15 Aug 2017 17:55:28 GMT Fifth leader resigns from Trump's manufacturing council http://implode-explode.com/viewnews/2017-08-15_FifthleaderresignsfromTrumpsmanufacturingcouncil.html iehi-feed-62765 Sun, 13 Aug 2017 04:37:52 GMT The Fed Has 6,200 Tons of Gold in a Manhattan Basement -- Or Does it? http://implode-explode.com/viewnews/2017-08-13_TheFedHas6200TonsofGoldinaManhattanBasementOrDoesit.html iehi-feed-62764 Sun, 13 Aug 2017 04:35:47 GMT Battle of the Behemoths - Kunstler http://implode-explode.com/viewnews/2017-08-13_BattleoftheBehemothsKunstler.html iehi-feed-62762 Sat, 12 Aug 2017 17:04:36 GMT US Gov.: Social Security requires a bailout that's 60x greater than the 2008 bank bailout http://implode-explode.com/viewnews/2017-08-12_USGovSocialSecurityrequiresabailoutthats60xgreaterthanthe2008ban.html iehi-feed-62759 Fri, 11 Aug 2017 21:02:04 GMT What Went Wrong With the 21st Century? http://implode-explode.com/viewnews/2017-08-11_WhatWentWrongWiththe21stCentury.html ...U.S. GDP growth rates are only half of those of the last century. And household incomes, after you factor in inflation, are flat. In fact, by some calculations -- using non-fiddled measures of inflation -- growth has been negative for the whole 21st century. Meanwhile, there are more people tending bar or waiting tables... and fewer people with full-time breadwinner jobs. And productivity and personal savings rates have collapsed... What went wrong?

... First, we no longer have real money. We have been operating with the feds' fake dollars since 1971, when President Nixon finally took the U.S. off the gold standard. These fake dollars have no connection to time. They are unlimited in supply, unrestrained by available resources, and unhinged from the real world.

... The federal government is now looking at average deficits of $1 trillion a year over the next 10 years -- which would have been impossible to fund with real money.

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iehi-feed-62757 Fri, 11 Aug 2017 16:24:30 GMT Market Can't Price an 'Extinction Event' Like a North Korea War http://implode-explode.com/viewnews/2017-08-11_MarketCantPriceanExtinctionEventLikeaNorthKoreaWar.html It's a point also made by Mark Mobius, the Templeton Emerging Markets Group executive chairman and apostle for emerging-market investing. He said in a May interview about the prospect of a North Korean nuclear conflict: "there's nothing you can do about it -- if something breaks out, we're all finished anyway."

Maybe that's why the worst day this year for the Kospi index of South Korean stocks was July 28, which was all about a global tech-stock retreat and nothing to do with geopolitics.''

Or perhaps we're still just predominantly in "bad news is good news" mode...

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iehi-feed-62755 Fri, 11 Aug 2017 04:02:24 GMT Two Charts Prove Obamacare Is Not "Stabilizing" In 2018 http://implode-explode.com/viewnews/2017-08-11_TwoChartsProveObamacareIsNotStabilizingIn2018.html ... we understand that the term "stabilizing" is somewhat subjective but we're not sure that rates spiking at 10.5x prevailing inflation rates, on average, would reasonably fit anyone's definition.

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And while Democrats continue to boast about overall Obamacare enrollments, the "off-exchange market" (i.e. people who make too much money to quality for subsidies and whose premiums are required to subsidize everyone else who does qualify) contracted by 2.1mm in 2016, or a 29% drop. With those kind of declines, it's only a matter of time until there are no more 'rich' fools in the pool willing to continue subsidizing a broken system

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