LOOK OUT - S&P to Downgrade China?

China's Debt Surge Has Potential to Pressure Ratings, S&P Says

China’s debt-to-gross-domestic-product ratio climbed to 232 percent at the end of 2014, the highest since Bloomberg started compiling the data in 2004.

http://www.bloomberg.com/news/articles/2016-02-16/china-s-debt-surge-has-potential-to-pressure-ratings-s-p-says

Venezuela on collision course for default crisis

Venezuela is rapidly heading for a showdown between its socialist government and the centre-right opposition that is likely to end up with the crisis-ridden country defaulting on its debt.

http://www.ft.com/intl/cms/s/3/cf14a292-d40d-11e5-829b-8564e7528e54.html#axzz40LXLVW73

Danger signs flashing for global economy, years after crisis

Eight years after the financial crisis, the world is coming to grips with an unpleasant realization: serious weaknesses still plague the global economy, and emergency help may not be on the way.

http://www.chicagotribune.com/business/ct-global-economy-financial-crisis-20160216-story.html

High risk of bankruptcy for one-third of oil firms: Deloitte

The roughly 175 companies at risk of bankruptcy have more than $150 billion in debt, with the slipping value of secondary stock offerings and asset sales further hindering their ability to generate cash, Deloitte said in the report, released Tuesday.

http://www.reuters.com/article/us-usa-shale-bankruptcy-idUSKCN0VP0O6 

THE GREAT TURNING

Joanna Macy

Joanna Macy: The Great Turning is a shift from the Industrial Growth Society to a life-sustaining civilization.

  

The Great Turning is a name for the essential adventure of our time: the shift from the Industrial Growth Society to a life-sustaining civilization.

The ecological and social crises we face are caused by an economic system dependent on accelerating growth. This self-destructing political economy sets its goals and measures its performance in terms of ever-increasing corporate profits—in other words by how fast materials can be extracted from Earth and turned into consumer products, weapons, and waste.

A revolution is under way because people are realizing that our needs can be met without destroying our world. We have the technical knowledge, the communication tools, and material resources to grow enough food, ensure clean air and water, and meet rational energy needs. Future generations, if there is a livable world for them, will look back at the epochal transition we are making to a life-sustaining society. And they may well call this the time of the Great Turning. It is happening now.

Whether or not it is recognized by corporate-controlled media, the Great Turning is a reality. Although we cannot know yet if it will take hold in time for humans and other complex life forms to survive, we can know that it is under way. And it is gaining momentum, through the actions of countless individuals and groups around the world. To see this as the larger context of our lives clears our vision and summons our courage.

The Three Dimensions of the Great Turning:

1. Actions to slow the damage to Earth and its beings

Perhaps the most visible dimension of the Great Turning, these activities include all the political, legislative, and legal work required to reduce the destruction, as well as direct actions—blockades, boycotts, civil disobedience, and other forms of refusal. A few examples:

• Documenting the ecological and health effects of the Industrial Growth Society;
• Lobbying or protesting against the World Trade Organization and the international trade agreements that endanger ecosystems and undermine social and economic justice;
• Blowing the whistle on illegal and unethical corporate practices;
• Blockading and conducting vigils at places of ecological destruction, such as old-growth forests under threat of clear-cutting or at nuclear dumping grounds.

Work of this kind buys time. It saves some lives, and some ecosystems, species, and cultures, as well as some of the gene pool, for the sustainable society to come. But it is insufficient to bring that society about.

Read More

Expect Increasing Lies As Global Economy Collapses, & More Insights

Investors' Insights Comments

Any serious investor who believes that the CPI numbers (etc.) created by governments everywhere are real and accurate is the sort of bigger fool everyone is looking for - to support  many ventures. Now, sooner or later, the markets are going to wake up to  this reality,inclusive of  China, to Greece to Brazil and  the USA, plus many more - and then watch the proverbial "you-know-what ' hit the fan.

In turn, the spin doctors and other Pinocchios will be fully employed in very secure long-term activities as they seek to baffle the feeble-minded towards ratification and consumption. So yes, Eric Sprott is right.- so Is Noam Chomsky; so was John Steinbeck..

Never forget Arthur Anderson, Enron , China, the Fed, and all the rest. For as always, remember this utter wisdom -  figures lie, only because liars figure. 

Beware, and good luck!

August 31, 2015

Lies You Will Hear As The

 Economic Collapse 

Progresses

It is undeniable; the final collapse triggers are upon us, triggers alternative economists have been warning about since the initial implosion of 2008. In the years since the derivatives disaster, there has been no end to the absurd and ludicrous propaganda coming out of mainstream financial outlets and as the situation in markets becomes worse, the propaganda will only increase. This might seem counter-intuitive to many. You would think that the more obvious the economic collapse becomes, the more alternative analysts will be vindicated and the more awake and aware the average person will be. Not necessarily...

 

In fact, the mainstream spin machine is going into high speed the more negative data is exposed and absorbed into the markets. If you know your history, then you know that this is a common tactic by the establishment elite to string the public along with false hopes so that they do not prepare or take alternative measures while the system crumbles around their ears. At the onset of the Great Depression the same strategies were used. Consider if you've heard similar quotes to these in the mainstream news over the past couple months:

Optimistic About Inflation, Stanley 

Fischer Suggests

 That Fed Will Stick to Plan on Rates

The Fed’s preferred measure of inflation shows that prices rose 0.3 percent during the 12 months ending in July, well below the 2 percent annual pace the Fed considers healthy. A narrower measure excluding food and oil prices, which the Fed regards as more predictive, increased 1.2 percent over that same period.

Printing Money Goes Haywire in Venezuela 

Venezuela seems to be hovering on the edge of tipping into hyperinflation. Or perhaps it has already fallen into the abyss. Given the paucity of official data -- the none-too-believable official figures were last published in February -- it's a little hard to tell.

China Construction Bank Posts Zero Profit Growth on Weak Economy 

Industrial overcapacity, a build-up of corporate debt and a $5 trillion stock-market slump are making it harder for Premier Li Keqiang to prevent a deeper economic slowdown. The combined earnings of China’s five biggest banks are projected to rise 2 percent this year, the least since at least 2004, according to analysts’ estimates compiled by Bloomberg.

The Coddling of the American Mind 

There’s a saying common in education circles: Don’t teach students what to think; teach them how to think. The idea goes back at least as far as Socrates. Today, what we call the Socratic method is a way of teaching that fosters critical thinking, in part by encouraging students to question their own unexamined beliefs, as well as the received wisdom of those around them. Such questioning sometimes leads to discomfort, and even to anger, on the way to understanding.

Bond Market Explosion Not Stoppable: Craig Hemke 

What I really worry about is that transition from one financial scheme to the next is never done peacefully. The hegemon that has the printing press, that has the reserve currency, they don’t just sit back and say we’ve had our time in the sun. Now it’s your turn. No, they fight as hard as they can to protect and defend that. That’s my biggest concern.

Eric Sprott Was Right,

 Inflation Is Rising

Eric showed the above table in his presentation. It shows that the true level of inflation, a persistent increase in prices, has been sitting around 10% since 2011. Indeed, a far worse picture than what the US Federal Reserve paints. The Fed argues that prices have been rising below 2% for the past four years. That said, the Fed doesn’t include food, petrol and taxes in its inflation index. This is similar to the Reserve Bank of Australia’s inflation calculation.

But then who needs petrol and food, right?

So it’s not surprising that Jim Rickard’s, over at Strategic Intelligence, argues that there’s no worse forecaster in the world than the US Fed.

You may have noticed each year that Australian healthcare companies raise their premiums by roughly 6%. Well, costs are also rising over in the US.

I’ve been speaking to many US citizens up here at the conference. The word on the street is that Obamacare is one of the worst policies of all time. It’s legally forced those who can’t afford health care to buy; at the same time, hiking insurance premiums for those who require modest healthcare.

And it’s only going to get worse…

A Passing Thought...