Over heated US economy & Trumps China trade war, Italian economic suicide & the geopolitics of Iranian oil – the ingredients of the next crash?

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With economists signalling warning signs of a next great economic collapse, some of the ingredients that could combine to trip things seem to be assembling.

When the greedy banking titans collapsed, central banks slashed interest rates and generated billions in Government debt to end the immediacy of the emergency, that was tenable  when those interest rates were minimal, but the growing pressure of inflation and over inflated equity markets are forcing those rates up.

The danger now becomes the ability to service that debt.

Flash points are looming that could trigger things sooner rather than later.

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The over heated American economy, thanks to Trump’s feckless tax cuts, has produced pressures that will force inflation up and his trade war with China will create enormous costs to consumers while tripping China into a recession. The current game of chicken being played out in Italy risks economic suicide by democracy, and the inane attack on Iran will not only spike oil costs, it could provide a new front against China. 

With Trump claiming China is attempting to interfere in the upcoming mid term elections, the speed with which mistakes could compound ignorance and collapse the entire house of cards is higher than ever before.

 

13 COMMENTS

  1. Martyn;

    The whole game is much bigger than Trump himself.

    The world has awoken. No way to put genie back in the bottle.

    Besides, the best way to change an entrenched system is to destroy it
    and rebuild from scratch, surely?

    I say bring it on. “No pain, no gain.”

    Then Trump can move on the FED.

    “Central Banks are the root of all evil.”

    Cheers.

    There are no mistakes and ignorance here.

  2. Agree 100% with the sentiments here. This whole shit-show is going to end badly sooner or later. What sparks it off is anyone’s guess, but that it all blows up in our collective faces is just a matter of when, not if.

    • who in new Zealand should be bailed out its hard to feel bad for debtors who borrowed for multiple homes or used there homes as atms
      the government could expand the no asset procedure to 80 thousand dollars and possible have robo bankruptcy i think there going to be huge numbers of bankrupts savers bank deposit should be protected as banks fail we could also expand the powers of debt collectors and possible bring back debtor prisions

      • greed has fucked the world its amazing i wonder how many new zealanders actually realize how indebted this country actually is all they hear about is government debt nobody talks about the mountain of debt that’s built up in households companies farms. if you are in debt you have no freedom. its criminal what the boomers have done pulling up the ladder leaving gen x and y with unpayable debt while they site on there fat capital gains

  3. According to Guy McPherson’s research a 30% fall in global economic/industrial activity = an up to 1 degree C global average temperature rise.
    Because of the loss of shading particulates = the blinds will be open which means curtains for us )
    The example we can refer to is the 3 (?) days after 9/11 when the planes stopped flying over the USA which created a 1C temperature fluctuation. It is called Global Dimming, or in this case the lack of 😉
    And it will not just by air travel that will be affected it will be coal fired power plants not having to generate electricity, and us not driving to work etc.
    The worse it gets, the worse it gets.
    And it always gets darker before it goes pitch black.

    • Adding to that is the El Nino coming this summer, and oil heading up again $$
      Sooo it is not out of the realms of reality for us to see a plus 1.5 C above current, within a year or so ?
      1C lack of global dimming
      .5C from El Nino
      Adding to a very potential ice free Arctic 9/2019?
      And 47% of the global wheat stock is held in China. Supposedly ??

      • 1.5oC above current. That’s 2.5oC above baseline.

        Hmmm? Meanwhile the latest UNIPCC report is out, and as expected it reports that the outlook is extremely grim if we go beyond 1.5C above baseline.

        The cynical amongst us would say that this UNIPCC alarm call for urgent action will be totally ignored by governments, just as every other one was, and that they will continue to pursue their economic growth agendas.

        Guardian article:

        ‘Huge risk if global warming passes 1.5C, warns landmark UN report

        Urgent changes needed to cut risk of extreme heat, drought, floods and poverty, says IPCC’

        https://www.theguardian.com/environment/2018/oct/08/global-warming-must-not-exceed-15c-warns-landmark-un-report

  4. Good to see you are keeping your eye on the ball, Martyn.

    Can we get through October? (the month noted for financial crashes).

  5. So? Lets allow the big four foreign banksters to keep taking record profits out of NZ/AO as they bury us urban and rural brothers and sisters in debt and we’ll just keep hating on farmers then?
    Not only Trump seems a little, shall we say, ‘special’.
    Who gave these poor people cancer?

    https://www.theguardian.com/science/2018/oct/07/monsanto-trial-cancer-appeal-glyphosate-chemical

    Monsanto?
    What’s sprayed on our farmlands to enable our farmers to keep ahead of the rapacious greed of the foreign banks?
    Who is to blame?
    The Banks. That’s who.
    And us, of course. For allowing this to happen.
    You write @ MB.
    “The danger now becomes the ability to service that debt.”
    ( I give you a hard time sometimes @ Bomber. Nothing personal. You’re a great fellow and without you we’d not have this forum. So thanks and a big hug. )
    No. The danger is, that we think we’re responsible for the debt, thus required to honour that debt. I say ” Fuck the debt” And ‘Fuck the Banks”.
    Now I’m off to check on my large, organic vegetable garden.

    And despite this latest nightmarish stuff coming out of the court rooms of the USA the Clutha District Council still has tankers going out daily spraying Glyphosate into peoples water supplies, namely the creeks and ditches that feed into the Clutha River from which the town supply’s water’s drawn from. I have to go out on the road and literally stand in the way of the spraying contractor when the tanker goes by my house. I have video of wind spray drift blowing across my neighbours paddocks.
    The Guardian.
    “It’s like a serial killer, but it’s a product,” said Brooks, 57
    And the banks are the ones who design our financial environment to make that shit necessary.

  6. i recently joined a credit union so there are options to the banks credit unions are very popular in US now to point that banks are complaing about unfair competition from the none profits,credit unions arent flash which i think is a good thing there what community banks used to be like
    banks are creaming it on fees from kiwi saver you would think more zealanders
    would take notice

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