'There are ominous parallels to the late-twenties..'

'..Such language recalls the 1997 SE Asian currency collapse .. Since 2012, global central banks have been unrelentingly generous with their Whiskey shots. The results have been troublingly late-twenties-like. Over-liquefied markets have gone wild..'

<blockquote>'From the perspective of the burst global Bubble thesis, Brazil has been near the top of my list of concerns. Regrettably, it is becoming a poster child for the consequences of unfettered global “Wildcat Finance”: Destabilizing financial flows, Credit and speculative excess, corruption and malfeasance, deep structural maladjustment, festering social tension and political instability..

..

There are now estimates that Chinese financial outflows have surged to a $250bn quarterly pace. If correct, one has to sit back quietly and ponder ramifications.

July 24 – Bloomberg (Y-Sing Liau): “Malaysia’s foreign-exchange reserves fell to the lowest in almost five years, signaling the central bank may have intervened to stem the ringgit’s decline. The holdings dropped 4.7% to $100.5 billion as of July 15 from two weeks earlier…That’s enough to finance 7.9 months of retained imports and is 1.1 times short-term external debt… The currency weakened to a 16-year low of 3.8130 a dollar this month, surpassing the 3.8 level at which it was pegged from 1998 to 2005… A drop in reserves below the psychological $100 billion level may further roil the fragile sentiment, Nizam Idris, Macquarie Bank Ltd.’s head of foreign-exchange and fixed-income strategy…, said…”

“A drop in reserves below the psychological $100 billion level may further roil the fragile sentiment.” Such language recalls the 1997 SE Asian currency collapse..

..

There are ominous parallels to the late-twenties. The “Roaring Twenties” were a period of growing global imbalances and market instability, along with mounting deflationary pressures. There was the Fed’s infamous “coup de whiskey” that spurred the fateful 1927 to 1929 speculative run in U.S. markets. Cross-border financial flows turned increasingly destabilizing.

Since 2012, global central banks have been unrelentingly generous with their Whiskey shots. The results have been troublingly late-twenties-like. Over-liquefied markets have gone wild, masquerading as a “bull market.” And as inflationary Bubbles have run roughshod through global securities markets, real economies have continued to stagnate. Imbalances have expanded. Structural maladjustments have significantly worsened. Global “money” and Credit have deteriorated profoundly. Massive global financial flows have turned hopelessly dysfunctional.

..

..there’s that “vicious cycle” problem inherent to Credit Cycles: As corporate Credit conditions tighten, a lot of Credits that appeared sound throughout the over-liquefied boom period look a lot less so. So more shorting, more outflows, and more shorting and hedging… Buying from myriad fund types and structured products evaporates. Significantly less corporate debt issuance… Less “money” for M&A, buybacks and financial engineering. Lower asset prices. Declining Household Net Worth.

It’s worth noting a Friday afternoon Bloomberg headline: “Junk-Debt Market Rocked as Cautious Creditors Stymie New Deals.” And if a little worry about Chinese and Brazilian – to name the most obvious – financial institutions begins to creep into the equation, the backdrop rather quickly turns complex and uncertain.'

- Doug Noland, Same Old Same Old, July 25, 2015</blockquote>


'It is quite fascinating to see that in spite of numerous examples throughout history, governments never seem to learn..'

<blockquote>'Venezuela’s hyperinflation is reaching its final stages. It is probably already far too late for the government to stop the complete collapse of its currency. The bolivar is in the process of transforming from a medium of exchange to tinder for wood-stoves. Venezuelans who had the presence of mind to convert their savings into gold or foreign currency in good time are likely to survive the conflagration intact.

..

It is quite fascinating to see that in spite of numerous examples throughout history, governments never seem to learn. They all believe they can somehow overrule economic laws by diktat. This is not only true of Venezuela’s government, but of practically every government in today’s world. Central planning of money has been adopted everywhere. Venezuela merely shows us what the end game for every fiat money system looks like.

At some point the State is overwhelmed by the promises it has made to its citizens. When it can no longer pay by means of confiscating private wealth, the printing press is always the last resort. Recently one actually gets the impression that it is often the first, rather than the last resort.'

- Acting Man, Venezuela’s Hyperinflation Crack-Up Boom on its Way to Outer Space, July 24, 2015</blockquote>


'..investors should think carefully about their own risk-tolerance and their ability to sustain losses without abandoning their discipline..'

<blockquote>'..valuation drives long-term returns, and investor risk-preferences drive returns over shorter portions of the market cycle. When measures of both are hard-negative, as they are now, investors should think carefully about their own risk-tolerance and their ability to sustain losses without abandoning their discipline, making sure to align their investments with the actual horizon over which they will need to spend the funds.'

- John P. Hussman, Memorize This, Earn a Dollar, July 27, 2015</blockquote>


Context (Banking Reform - English/Dutch) '..a truly stable financial and monetary system for the twenty-first century..'

<blockquote>Quarterly Review and Outlook, Second Quarter 2015

SuperBull Club: RBC Ups Morgan Stanley, Says Bull Market to Continue 6 Years; Sobering Alternative View from GMO, July 21, 2015

Design Your Room, Quadcopters, Tools, With Holograms: Are Holograms the Next Deflationary Force? July 18, 2015


The world is defenceless against the next financial crisis, warns BIS, June 28, 2015

Record Eurozone Borrowing: Public Debt Rises With Recovery; Greece a Small Sideshow Compared to Italy, July 26, 2015

Poland will never join a 'burning' eurozone, says central bank governor, July 25, 2015


(Global Credit) - '..More than 11 years ago Dr. Issing recognized the key issue for 2015..'

'...many more will soon follow Kelantan's lead to abolish an endlessly dilutable thought experiment [called paper money]...'

First Ever Debit Card Backed by Gold in Real Time


Affectivity, Action, Electricity</blockquote>