The global bond market is cratering. This is the beginning of the end, folks.

YOU can only fake an orgasm for so long before you know its not real..

Agreed...another reason they need to raise rates, is so it appears rates are rising on THEIR accord (when in reality it's inevitable because you can't keep rates at 0 forever, as we're seeing now).

The dollar is going to go to the moon (temporarily) and gold/silver will likely plummet (temporarily)...all this before the FED reverses policy and begins the largest QE ever, and drastically dries up ALL the remining high-quality bonds (think: derivatives collateral) and all these warnings from even the IMF about liquidity shocks come to fruition.

This will make 2008 seem like a picnic, and as OP stated, this can happen without ANY other black swans, which could accelerate and exacerbate things 100 fold.

The federal reserve can supply unlimited liquidity. There is no limit to the number of zeros they can enter into the oracle database where the dept is kept.

Really?

If OP is correct it means the end of life on Earth.

Some people might care about that.

Our continued existence would be threatened by any disruption in society. I welcome any ideas as to why the following scenario wouldn't be an inevitable result of a financial collapse.

•••••••••••••••••••••••••••••••••••••••••••••
NUCLEAR POWER PLANTS ARE CIVILIZATION'S "POISON PILLS" AGAINST DISRUPTION OF SOCIETY.

I have seen many people over the last few years talking about a collapse of society as being a survivable event. Likewise, there has been discussion that a "limited" nuclear war was a survivable event. After all, civilizations have risen and fallen throughout our recorded history.

Unfortunately, there are things which would make this unlike any collapse of civilization in the past. Things like nuclear reactors and their spent fuel pools, many with 30+ years of old fuel assemblies; 50 or so years worth of nuclear lab and reactor waste; nuclear weapons; and failing nuclear waste repositories, such as Hanford and WIPP.

I'm sorry, but there's no returning to the idyllic world of the days of yore. Let's just consider the 440+ "Poison Pills" in the form of nuclear power plants that the Nuclear Power Industry has scattered around the world.

Nuclear power plants are fragile things. Nuclear reactors need to be provided with maintenance supplies, electricity, and staff 24/7 to keep the cooling systems running. Even reactors that are "shut down".

There is no "off" switch for reactors (or for their spent fuel pools). The only way to turn them off is to decommission them, and even then you have the spent fuel to cool for decades. Any significant disruption of society that threatens to interrupt delivery of maintenance supplies for more than a month, or grid power for more than a week, or staff for more than a day, will have grave consequences.

Without regular deliveries, staff will be limited to what's on hand, maybe a months worth of supplies, for routine maintenance or emergency repairs. Without maintenance and repairs, the cooling systems will fail.

Since the reactors aren't able to generate electricity for their own operation each plant has backup diesel generators to provide emergency power for cooling. Getting a steady supply of fuel for all of these generators if society is falling apart would be unlikely. On average, nuclear plants have enough diesel onsite for one week. After it runs out, the cooling system will fail.

All of these plants of course require staff to run them 24/7. If the dollar collapses and the economy falls apart how many people are going to show up for work? If a pandemic starts, or if there is a "limited" nuclear war, or there is any other serious disruption which keeps people from showing up to work, the cooling system will fail.

Once the cooling system on a reactor fails, within a day it will either blow up, spewing Uranium and Plutonium into the atmosphere, or it will melt out and it's Uranium and Plutonium will get washed into the ocean, or it will melt down and inject it's Uranium and Plutonium deep into the Earth's crust.

As more and more plants progressively fail, the cumulative radiation in the air, land, and sea, will destroy all life on Earth, down to microbes and bacteria.

Hopefully, TPTB are aware of these facts, and are not thinking that they can escape the results of societies collapse in underground bunkers or cities. If they retreat down into their D.U.M.B.'s, they'll never come back out.

This has never happened before. Civilizations have come and gone, but even if there were periods in humanities past where we had high technology, we never build nuclear reactors and scattered them across the globe.

If we had this planet would already be a dead ball of radioactive land, buffeted by lifeless radioactive winds, with empty radioactive oceans lapping at the shores. For hundreds of thousands of years.

With 440+ nuclear "poison pills" ready to fail along with society, that is the fate that now awaits us. So are we going to meet the challenge and pursue our destiny to survive our species adolescence, save the planet, and become galactic explorers? Or will we settle for our fate, and go extinct as we turn this blue jewel of a planet into a barren wasteland.

It all depends in us keeping society functioning long enough for us to find a way out of this mess.

aHEMagain
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promises promises!

BTW, anarchy does not mean chaos

it means no government



anarchy (n.)
1530s, from French anarchie or directly from Medieval Latin anarchia, from Greek anarkhia "lack of a leader, the state of people without a government" (in Athens, used of the Year of Thirty Tyrants, 404 B.C., when there was no archon), noun of state from anarkhos "rulerless," from an- "without" (see an- (1)) + arkhos "leader" (see archon).

Either the State for ever, crushing individual and local life, taking over in all fields of human activity, bringing with it its wars and its domestic struggles for power, its palace revolutions which only replace one tyrant by another, and inevitably at the end of this development there is ... death! Or the destruction of States, and new life starting again in thousands of centers on the principle of the lively initiative of the individual and groups and that of free agreement. The choice lies with you! [Prince Peter Kropotkin (1842-1921)]

[link to www.etymonline.com]



[link to www.youtube.com (secure)]

Actually it's more like the middle of the end. The beginning of the end was the 2008 financial crisis.

Anyway...long story short: yields have been unnaturally low for a long time and investors have simply had enough, so they are dumping bonds: ALL bonds -- govt bonds from every major economy, as well as private bonds from big parties.

Since central banks refuse to raise yields, the markets are doing it for them. And can you blame them? What did people think was going to happen with infinite credit creation and minuscule interest rates?

You want specifics?: I would say sometime between autumn 2015 and Spring 2016 we are going to enter a situation where governments and large companies are unable to issue ANY new bonds and the market will push up rates so simply servicing current debit will literally bankrupt many large nations. There are several things that could make it happen sooner rather than later -- a Greece-relafed clusterfuck, a run on overinflated Chinese assets, a global dollar-dumping panic, or some kind of war (Ukraine/Middle East/South China sea) would be the most likely. But even if none of these things happen, we have less than a year at the very most before the whole system simply splutters to a halt and stops.

At that point you will see anarchy/civil unrest as starving, moneyless people loot grocery stores, electricity grids go down, etc. In some countries the government might be able to step in with martial law and do a currency reset of some kind, while others will just be too disorganized to cope and will remain in anarchy. The likelihood of nuclear weapons going off in the chaos is high.

Six months to a year. Count on it.

Talk of global finance bores the he'll out of me

You're not alone my friend. It's a fucking yawn-fest

Actually it's more like the middle of the end. The beginning of the end was the 2008 financial crisis.

Anyway...long story short: yields have been unnaturally low for a long time and investors have simply had enough, so they are dumping bonds: ALL bonds -- govt bonds from every major economy, as well as private bonds from big parties.

Since central banks refuse to raise yields, the markets are doing it for them. And can you blame them? What did people think was going to happen with infinite credit creation and minuscule interest rates?

You want specifics?: I would say sometime between autumn 2015 and Spring 2016 we are going to enter a situation where governments and large companies are unable to issue ANY new bonds and the market will push up rates so simply servicing current debit will literally bankrupt many large nations. There are several things that could make it happen sooner rather than later -- a Greece-relafed clusterfuck, a run on overinflated Chinese assets, a global dollar-dumping panic, or some kind of war (Ukraine/Middle East/South China sea) would be the most likely. But even if none of these things happen, we have less than a year at the very most before the whole system simply splutters to a halt and stops.

At that point you will see anarchy/civil unrest as starving, moneyless people loot grocery stores, electricity grids go down, etc. In some countries the government might be able to step in with martial law and do a currency reset of some kind, while others will just be too disorganized to cope and will remain in anarchy. The likelihood of nuclear weapons going off in the chaos is high.

Six months to a year. Count on it.

China is saying "Fuck you, pay me". Soon, the EBT cards will not see deposits and the people are going to rage. Looks like military has mobilized just in time in preparation for the circus to begin.

Sorry dude.

Keep trying, you'll make her happy one day.

My theory is that central banks in the future will be the sole issuer of credit, because no other institution will find it worthwhile to lend capital, not even the banks. Banks only earn money if there is a positive interest margin, and several central banks have already lowered their interest rates into negative terrain. Thus, the only way central banks can lower the interest further, will be to give free credit directly to businesses. But then one major source of income for the banks are taken away, the positive interest margin on loans.

My theory is that central banks in the future will be the sole issuer of credit, because no other institution will find it worthwhile to lend capital, not even the banks. Banks only earn money if there is a positive interest margin, and several central banks have already lowered their interest rates into negative terrain. Thus, the only way central banks can lower the interest further, will be to give free credit directly to businesses. But then one major source of income for the banks are taken away, the positive interest margin on loans.

IMO, this sham will just continue and food and similar items will continue to skyrocket in price.

promises promises!

BTW, anarchy does not mean chaos

it means no government



anarchy (n.)
1530s, from French anarchie or directly from Medieval Latin anarchia, from Greek anarkhia "lack of a leader, the state of people without a government" (in Athens, used of the Year of Thirty Tyrants, 404 B.C., when there was no archon), noun of state from anarkhos "rulerless," from an- "without" (see an- (1)) + arkhos "leader" (see archon).

Either the State for ever, crushing individual and local life, taking over in all fields of human activity, bringing with it its wars and its domestic struggles for power, its palace revolutions which only replace one tyrant by another, and inevitably at the end of this development there is ... death! Or the destruction of States, and new life starting again in thousands of centers on the principle of the lively initiative of the individual and groups and that of free agreement. The choice lies with you! [Prince Peter Kropotkin (1842-1921)]

[link to www.etymonline.com]



[link to www.youtube.com (secure)]

You are a LOON if you think No Government will be a good thing. Think KATRINA on CRACK.

You are a LOON if you think No Government will be a good thing. Think KATRINA on CRACK.

My theory is that central banks in the future will be the sole issuer of credit, because no other institution will find it worthwhile to lend capital, not even the banks. Banks only earn money if there is a positive interest margin, and several central banks have already lowered their interest rates into negative terrain. Thus, the only way central banks can lower the interest further, will be to give free credit directly to businesses. But then one major source of income for the banks are taken away, the positive interest margin on loans.

See detailed thread yesterday on EU demanding UN nations set up "bail ins" for banks.. As in your money goes bye bye.

Then thread last night on USA banks in to other places on lock down in 8 days.

And people reporting ring to take money out & told restrictions already in USA.

And at misses, lock ups wen tried to take out what was before they high daily limit. Told acct locked, follow up with bank next day.. Wtf

Hardly..

when there is no forced control spontaneous order shows up.. its pretty amazing how quickly the scumbags are eliminated and the armed society becomes a polite one.