Saturday, July 14, 2018

Nomi Prins WARNING* Biggest Currency Reboot in 100 Years (By July-2018) The Central Banks Unleash

Just when you thought it was safe -  more doom and gloom from Nomi Prins who predicts another financial bust coming soon.

She says how Western central banks bailed out the banks but did nothing form main street, but in China the central bank used quantitive easing to rebuild its infrastructure, like putting high speed rail all over the country. She says how the West laughed at the ghost cities that China built which stood empty, but China plans long term and the new high speed rail system is now linking the cities up and people are moving into them, depopulating the overcrowded large cities. This means less congestion and pollution and nicer cities to live in.

The bankers and the CEO's used the money instead to buy back shares and inflate asset prices to give themselves huge bonuses rather than invest in their companies.



In the video below Greg Hunter interviews Nomi Prins about her new book, Collusion, How Central Bankers Rigged the World. Greg Hunter says his show is bipartisan but he comes across as a bit of a gold bug libertarian to me. Nomi Prins doesn't place a lot of emphasis of getting into gold and silver, but says pay off your debts.



Will the next crash be worse than the last one? Prins says, “Yes, it will because we will be falling from a higher height. The idea here is you are sinking on the Titanic as opposed to sinking on a canoe somewhere. All of this artificial conjured money is puffing up the system, along with money that is borrowed cheaply is also puffing up the system and creating asset bubbles everywhere. So, when things pop, there is more leakage to happen. The air in all these bubbles has created larger bubbles than we have had before.” How does the common man protect himself? Prins says, “They have to own things, and by that I mean real assets, hard assets like silver and gold. That’s not as liquid, so taking cash out of banks and sort of keeping it in real things and keeping it on site . . . keeping cash physically. You need to extract it from the system because the reality is when a financial crisis happens, banks close their doors to depositors. . . . Also, basically try to decrease your debt.” Join Greg Hunter as he goes One-on-One with two-time, best-selling author Nomi Prins, who just released “Collusion: How Central Bankers Rigged The World.”

For those who do not have time for the video, this is from Zero Hedge. KV

The enormity of our current global debt problem is caused by central bankers.  Prins explains, “It is huge...
"The debt is between two and a half to three times global GDP, which is an historical high.  Debt to GDP throughout the developed world is higher than it has ever been, and it continues to grow.  Why?  Because money continues to be conjured up and rendered cheap for the participants at the top of the financial system.  The banks, the major corporations, the people who make money out of that, and it hasn’t washed down to the rest of the economy.  This is why most people feel this anxiety about another potential financial crisis, but also about what happens every day in their own pocketbooks. 
So, it is worse.  These central banks today, 10 years after the financial crisis occurred, that was supposed to be an emergency situation.  They have $21 trillion worth of conjured money in return for debt assets, stocks and corporate bonds around the world. 
If they pulled that plug, if they were to take down any of the $21 trillion, even a little bit . . . it would begin to create a major rupture in the financial system.  This is why I say the central banks are the market.  Without them, the markets would be nowhere near these highs. If they pulled their help and subsidies, the market would plummet really quickly.”  
Prins admits this has gone on for longer than most believed possible, but says it can’t go on forever. How does it all end?  Prins, who was a former top Wall Street banker, says,
“We will eventually get a crash because, at some point, the amount of quantitative easing, or conjured money to buy assets out of the market to pump up the...financial system, will come to this head where even though these major central banks are continuing to dump money in. 
There will be ruptures at the bottom of the economy . . . even though they are borrowing cheap money, they just can’t make enough money to service very cheap debt.  Consumers, who are at all-time debt highs, don’t have enough to continue to service their debt.  When these things happen at the same time in terms of lack of payments, delinquencies and defaults, then money will be taken out of the stock markets to plug the gap, and then the stock market comes down.  It will start with debt disintegrating, defaulting or having delinquencies...
The behavior that happens after this is the seizure of credit and lack of confidence everywhere.  When the cracks start, they will get bigger and bigger faster, and that’s when we have a crash.”
"Central Banks Are The Market" & Nomi Prins Warns "It Can't Go On Forever

33 comments:

Matt Franko said...

“Yes, it will because we will be falling from a higher height. The idea here is you are sinking on the Titanic as opposed to sinking on a canoe somewhere. All of this artificial conjured money is puffing up the system, along with money that is borrowed cheaply is also puffing up the system and creating asset bubbles everywhere.“

Metaphor much???

Matt Franko said...

K,

FYI we are still nearer the bottom of the historic range per the accounting science:

https://fred.stlouisfed.org/series/FODSP

Sorry I couldn't work in any metaphors and had to stick to the science .... but I did not major in Literature or some other Art discipline so youre goning to have to give me a pass...

Andrew Anderson said...
This comment has been removed by the author.
Andrew Anderson said...

so taking cash out of banks and sort of keeping it in real things and keeping it on site . . . keeping cash physically. You need to extract it from the system because the reality is when a financial crisis happens, banks close their doors to depositors. . . Nomi Prins

This wouldn't be necessary if we had an ethical fiat and credit system since we would then have TWO payment systems:

1) The current at-risk, not-necessarily-liquid payment system that must work through banks, credit unions, etc.

2) An additional risk-free, completely liquid payment system consisting of individual, business, State and local government, etc. accounts at the Central Bank itself.

Matt Franko said...

" accounts at the Central Bank itself."

Well according to this zombie writing this article that wouldnt help either because the CB is creating "all of this artificial conjured money"....

Andrew Anderson said...

It would eliminate the "tanks in the street" argument for bailouts since:

1) The additional risk-free, completely liquid payment system would allow the economy to function even if every commercial bank, etc. failed.

2) Especially since all remaining depositors at commercial banks, credit unions, etc. should have no expectation that their deposits there might not be frozen for a while and suffer losses in the event of a financial crisis.

Andrew Anderson said...

But if a bailout was nevertheless deemed advisable, it could be accomplished via equal fiat distributions to all individual citizen accounts at the Central Bank without violating equal protection under the law.

Tom Hickey said...

accounting science

Accounting science?

Accountants are engineers now?

Well, I guess if coders are "software engineers," and plumbers are "sanitary engineers," anything is possible.

Kaivey said...

Like it, Tom.

If you are completely scientific, then does that mean you are entirely rational like Spock, which means you have no idea of nuance? That you are kind of mechanical? That feelings have no value?

Matt Franko said...

Accounting is a BS degree ideally... it is a 'Bachelor of Science, Accounting' at the land-grant where I went to school...

They have to take Calculus, etc ('Quantitative Business Analysis') ... not finger painting...

btw I'd be interested to know whether SK's undergrad in Accounting was a BS or a BA....

You're having some issues with categorization Tom (your dialectic tendency to synthesize is perhaps leading you away from categorical division here...) ... eg here:

"Bachelor of Science, Economics" does not equal "Bachelor of Art, Economics"... iow dont synthesize them... keep them divided/separated as the academe does...

The discipline is the same (ie 'Economics') but the degrees are NOT the same, one is a SCIENCE Degree and the other is an ART Degree... this distinction is right in the words there...

Accountants are NOT Engineers they are different disciplines... but as degrees they both can be earned as SCIENCE degrees depending on the degree requirements of the Institution...

Matt Franko said...

Here Tom at UMD here:

https://www.rhsmith.umd.edu/files/Documents/Programs/Undergraduate/Accounting/Acctg4yrPlan2007.pdf

a bit old but it is indicated a Science degree...

Here is latest description:

https://www.rhsmith.umd.edu/programs/undergraduate-programs/academics/academic-majors/accounting

Some courses:

BMGT 305 Survey of Business Information Systems and Technology

BMGT 332 Operations Research For Management Decisions
BMGT 385 Production Management
BMGT 402 Database Systems
BMGT 403 Systems Analysis and Design

It ain't finger painting...

Tom Hickey said...

If you are completely scientific, then does that mean you are entirely rational like Spock, which means you have no idea of nuance? That you are kind of mechanical? That feelings have no value?

Dr. Stranglove.

I have also told the story of a friend of mine that consulted only CEOs of tech companies for a hefty sum. He told me that the story was the same in just about every case. He would do his workup of the company and when done, report directly to the CEO. He would say, I have found the problem with your company. Naturally the CEO would be all ears. He would then tell the CEO that the problem was that everyone in the company thought he was an asshole. Then he would explain to the CEO how people are not computers.

This is a reason that people need to be "well-rounded." This is an aim of liberal education in the West. In Asian countries, they call it being balanced, and eduction is about "cultivation."

Tom Hickey said...

this distinction is right in the words there...

Still wrong, Matt. This is a common error in logic.

The distinction is not in the labels, but in the curricula, and that is a matter of record at each school.

No only that schools often change curriculum requirements.

The labels assigned to the degree may affect this — or not.

Meaning is composed of both denotation and connotation.

For example, in a STEM age, schools will label as much as they can as being science, and in a liberal arts era, they will label everything they can being art. The label is part of the pitch.

For example, in my day, "scientists" were nerds and never got dates. The "arts" people were the interesting one and made out great. Actually, this was one the reasons I switched out of a science major. I didn't want to spend my life around nerds. Booorrrring.

And if you were correct about meaning, advertising and PR would all be true based on meaning as exclusively denotation, and there would be no rhetorical persuasion or propagandizing as it now exists by loading words with a charge (connotation) to produce the desired effect.

You can't just look at words. You have to see what really going on.

This was a key point of the later Wittgenstein, for example. Philosophy is a battle against the bewitchment of our intelligence by means of our language. Philosophical Investigations, § 109

What he meant by "philosophy" was critical thinking.

Matt Franko said...

"This is an aim of liberal education in the West. "

Well LOL their aim is not very good now is it?

Matt Franko said...

"You can't just look at words. You have to see what really going on. "

I know and if you did you would see my same point but in better detail...

Matt Franko said...

Tom I dont have time or any inclination for any of this past the Fermi level...

https://en.wikipedia.org/wiki/Fermi_problem

Which is all I need out of it personally ... these other people it is supposed to be their jobs...

I can get out of it all I need and then some remaining at the Fermi level...

Noah Way said...

Matt, do you ever get tired of pretending to know what you're talking about?

FYI it's a rhetorical question.

Tom Hickey said...

Well LOL their aim is not very good now is it?

I saw the shirt away from liberal education to STEM in the 60-80s. It was cultural devolution. Now we are stuck with it, and the rest of the world is looking at the US and saying WTF? So are a lot of Americans, asking how did we get here?

Tom Hickey said...

"I saw the shirt away from liberal education to STEM in the 60-80s."

"shirt" should be "shift."

Noah Way said...

Technical and scientific education ignores humanity. Examples abound.

Matt Franko said...

Noah to say these morons are lying is taking the easy way out.... like Art degrees.... hmmmmmm????

Matt Franko said...

“Technical and scientific education ignores humanity.”

No shit Sherlock that is why they are called Science degrees.... youre making my point ....

Noah Way said...

Yet you claim science degrees (material competence) are required for positions of authority / power or even just to comment.

Conundrum much?

Andrew Anderson said...

There will be ruptures at the bottom of the economy . . . even though they are borrowing cheap money, Nomi Prins

Except for physical fiat or into savings only accounts such as TreasuryDirect®, it is impossible* for the non-bank private sector to borrow fiat. And what good is it to borrow fiat if one cannot, except for unhygenic, unsafe, inconvenient physical fiat, USE it?

they just can’t make enough money to service very cheap debt. ibid

Who could ever have foreseen that government privileges/subsidies for private credit/debt creation would drive the population into maximum indebtedness?

*US Direct® while providing debit cards does not actually allow account holders to use fiat but instead works through a private bank, Comerica Bank.

Konrad said...

@ Noah Way: Every acknowledgement of that little monkey, however brief, causes his idiocy to expand exponentially. Toss him a peanut, and he will respond with ten consecutive comments, each more pathetic than the last. He's a brain-damaged primate with a keyboard. (Perhaps he's the aftermath of a bizarre but botched medical experiment to teach monkeys to speak.)

One time I accidentally dropped a peanut and saw it roll into his filthy little cage. It caused him to erupt in vile gibberish.

I say accidentally because I thought someone else had added the post. When the wretched monkey started throwing his excrement at me through the bars of his cage, I realized that the monkey itself had logged the post.

No more peanuts for the monkey.

Tom Hickey said...

“Technical and scientific education ignores humanity.”

No shit Sherlock that is why they are called Science degrees.... youre making my point ...


That's why educating just nerds risks social dysfunction, even though it may produce excellent technology.

Noah Way said...

That's why educating just nerds risks social dysfunction, even though it may produce excellent technology.

Technology is always a double-edged sword. Without compassionate humanity it cuts the wrong way.

Technology is highly overrated and typically considered profit vehicle over every other possibility.

Matt Franko said...

"That's why educating just nerds risks social dysfunction,"

The education creates the nerds Tom, they are not born that way...

Your Darwin is showing...

Matt Franko said...

"Yet you claim science degrees (material competence) are required for positions of authority / power"

No only those dealing with material oriented matters... Infrastructure, transportation, credit system, payments system, defense systems, agriculture, healthcare, environment, etc...

Dept. of Justice? Nooooo....

Education? Nooooo...

National Endowment for the Arts? Noooooo...

etc..


Konrad said...

@ Noah Way: Please stop throwing peanuts at the monkey.

Matt Franko said...

LOL!!!!!

Tom Hickey said...

The education creates the nerds Tom, they are not born that way...

Oversimplification of a complex social phenomenon.

One case, even a dominant one, is seldom a satisfactory explanation in complex situations, and almost all social issues are complex.

Nature and nurture, individual and society, individual and environment, society and environment, etc. interact to generate different brain functioning in individuals, sub-groups and nested groups (networks) in a social system as an interlaced network.

So far there is no overarching framework for generating explanations and all explanations are perspectival, some being more biased than others.

This is an issue in the design problem facing overhauling education for the contemporary conditions and foreseeable future conditions, which is riddled with uncertainty owing to emergence in a complex adaptive system.

This is a design problem I have been working for decades both on my own and in collaboration with others.

It is greatly complicated because we are now apparently in the transition between the analog age and the digital age, and most of the people working on the issue are analog natives, while the people needing education now and in the future are overwhelmingly digital natives.

As result only a temporary and provisional design solution is possible at this juncture in the historical dialectic.

This is particularly evident since since digital natives have little respect for analog natives even if they are digitally competent because the basis for thinking is different.

Many analog people are concerned since they feel the world is passing them by. This provokes a spectrum of reactions.

Noah Way said...

@ Konrad - But it's so much fun watching him try to get his had out of the jar with a fistful of peanuts.