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Showing posts with label Economic Collapse. Show all posts
Showing posts with label Economic Collapse. Show all posts

Thursday, August 29, 2019

Britain: The overlooked Brexit scenario: what happens if we remain? - by Matt Clinch

In the approach to the ‘No Deal’ Brexit on October 31 barely a day has gone by without dire warnings of supply disruptions, food and drug shortages, renewed Irish border Troubles, a ferocious general election, a potential independent Scotland and the break-up of the UK - and the diminution of UK influence on the world stage.

Assurances about last-minute preparations seem to cut little ice as businesses anxiously appraise emergency supply lines. And more households are opting to stock up on items ranging from tinned foods to loo rolls.

Former Prime Minister Gordon Brown has now called for a full analysis to be made of the consequences of a ‘No Deal’ outcome – and a suspension of the ‘No Deal’ departure date of Hallowe’en.

But strangely, there is a missing forecast here: a set of outcome prognostications that has been glaringly absent: what would life be like if, after all the political hullabaloo and fears of an economic hit, the UK opted to Remain?

Read more: The overlooked Brexit scenario: what happens if we remain?

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Saturday, September 30, 2017

USA - Economy: 3 Uncommon Signs That Economic Collapse Could Happen Soon - by Peter Reagan

As stocks continue to climb and the U.S. economy sustains its third longest period of expansion in history, market forecasters are seeking clues for when our next crisis may strike.

So far, three uncommon signals have them worried.

Here’s an explanation of the three uncommon signs causing alarm, and what they mean for your savings...

As stocks continue to climb and the U.S. economy sustains its third longest period of expansion in history, market forecasters are seeking clues for when our next crisis may strike.

So far, three uncommon signals have them worried.

Here’s an explanation of the three uncommon signs causing alarm, and what they mean for your savings...

Sign #1: Resurgence of Synthetic CDOs

Depending on how the underlying asset performs, derivatives can generate either massive gains or crushing losses.

But it’s when big banks and financial institutions start gambling in derivatives that things become especially dangerous. And that’s exactly what happened in the case of our last crisis: A slew of “too big to fail” organizations took on excessive risk through derivatives (mortgage-backed securities and others), and they couldn’t shoulder their losses when the bets went bad.

Sign #2: Lenders Loosening Mortgage Standards

Well, there are two main incentives for banks to lend recklessly:
  1. Increasing competition from other banks, and...
  2. Decreasing demand for credit.
Sign #3: The “Skyscraper Index”

In the case of our last crisis, both of those incentives came into play

Followers of the index today believe conditions are shaping up for it to be proven right once again, as cities across China, India, Saudi Arabia, and the U.S. erect another round of the tallest skyscrapers in history.

A good example of this is in Denver where a Manhattan developer is moving forward with plans to build a 1,000-foot skyscraper, which would dwarf all the other buildings in Denver.

 Read more: 3 Uncommon Signs That Economic Collapse Could Happen Soon

Sunday, October 11, 2015

US Economy: Record Global Sell-Off of U.S. Debt Could Trigger Economic Collapse

Foreign governments buy U.S. debt because of the dollar's status as the world's reserve currency – the American economy has long been viewed as a safe place to invest. That's why the amount of U.S. debt held by foreign nations has increased more than six-fold since 2001.

But that's all changing now – events that could spark a U.S. economic collapse are already underway…

The Wall Street Journal revealed this week that China – the largest holder of U.S. investments – is ridding itself of its U.S. government bonds at the fastest rate in history.

In fact, a global sell-off of epic proportion is taking place.

Central banks in China, Russia, Brazil, and Taiwan are selling U.S. government bonds at such a pace that it's caused the most dramatic shift in the $12.8 trillion Treasury market since the 2008-2009 financial crisis.

Foreign official net sales of U.S. Treasury debt maturing in at least one year hit $123 billion in the 12 months ended in July, according to Deutsche Bank Securities Chief International Economist Torsten Slok, reported WSJ. That's the biggest decline since data started to be collected in 1978.

By contrast, foreign central banks purchased $27 billion of U.S. notes and bonds in the prior 12-month period.

Foreign central bankers' massive offloading of U.S. debt sends this dangerous signal…

Read more: WARNING: Record Global Sell-Off of U.S. Debt Could Trigger Economic Collapse