Macro Analytics - 04-12-12 - Financial Repression

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FINANCIAL REPRESSION in the US & ASIA

Macro AnalyticsApril 12th, 2012

http://www.gordontlong.com/Macro_Analytics



Ty AndrosTedbits.com

Traderview.com




http://www.tedbits.com/

http://www.traderview.com/



Gordon T Long GordonTLong.com




http://gordontlong.com/



Ty Andros Tedbits.com

Gordon T Long GordonTLong.com





http://gordontlong.com/



THESIS 2012: FINANCIAL REPRESSION GordonTLong.com


http://www.gordontlong.com/reports/Subscribers-Sec2012.htm





This also explains why while HSBC, being a member of the banking cartel would love nothing more than more easing from PBOC, China is far more cautious about further easing, especially if the Fed does go ahead with more QE anyway, the bulk of which China would import as excess inflation anyway.

For vivid proof of this observe chart two: the last time we had a record spread between HSBC and China PMI, Chinese CPI soared from -2% to over 6%. China is now at 3%, just as the index spread is the second highest ever.

If we are to assume that Chinese easing will follow the March 2009 episode, and thus assume a trough Chinese inflation of 3.2%, one can see that the 12% implied inflation at the end of the current easing episode is why the PBOC will be far, far more reluctant to engage in the same easing policies as the Markit group of banks would wish for it to.






G-7 Aggregate Debt Principal and Interest (USD equiv.)2012 – 2022 - UK, US, Italy, Germany, Canada, Japan & France






G-7 Aggregate Debt Principal and Interest (USD equiv.) 2012 (by month) UK, US & Japan






United States and ASIAJaws of DEATH for the World RESERVE currency!

Does not include Social Security and Unemployment extensions equal to 1 % of GDP and BORROWING (stolen) from the Social Security, Medicare and Highway trust funds. Add them back in and the deficits are in the LOW TEENS. COMPUNDING ANNUALLY!






The UNITED STATES hasn’t created ANY new wealth or RUN a SURPLUS in over 3 YEARS and is HEMMORAGING CASH. Keep in Mind the spending from the BORROWING is called GDP!

Can you say BLACK SWAN for the World Reserve currency? How about Waterloo?






GDP is ROUGHLY $15 Trillion Dollars: Total Liabilities using GAAP are 15 Trillion Revenues plus UNFUNDED Liabilities of $75 Trillion dollars EQUALING $90 Trillion dollars of liabilities

REVENUES are $2.1 TRILLION DOLLARS, and its economy is NOT GROWING in REAL or NOMINAL TERMS if PROPERLY MEASURED!






The FEDERAL RESERVE is MONETIZING (printing out of THIN AIR) 58% of ALL US government DEBT!






The UNITED STATES hasn’t created ANY new wealth or RUN a SURPLUS in over 3 YEARS and is HEMMORAGING CASH. Keep in Mind the spending from the BORROWING is called GDP!

Can you say BLACK SWAN for the World Reserve currency? How about Waterloo?






Japans TOTAL Debt All SECTORS and Government Maturity Wall






Asian Government debt is NOT yet a problem with the exception of Japan and Singapore!






This is the FACE of FRESH cash for TRASH. As Central banks WORLDWIDE BUY worthless security’s and give bankrupt Sovereigns and financial firms MONEY PRINTED out of THIN AIR. Transferring wealth from SAVERS and BONDHOLDERS to Governments, well connected elites and BANKSTERS.






ADVANCING GLOBAL FINANCIAL REPRESSION

USA EU JAPAN CHINA ASIA

TELLTALES

Dramatic Money Supply Expansion YES YES YES YES YES

Negative Real Interest Rates YES YES YES YES YES

Changing Function of Money YES YES YES NO NO

Negative Real Economic Growth YES YES YES NO NO

Debt Transfer - Private to Public YES YES YES NO NO

Increased Centralized Planning YES YES

PRIMARY TOOLS

Fear - The Flight to Safety

- Scare of a Financial Crisis YES YES

- Potential Financial Contagion YES YES

- Threat of Instability & Chaos YES YES

Force - The Use of Law

- Regulatory & Legislative Responses YES YES

- Restrictions on Personal Liberties YES YES

Framework - A Methodology

- ZIRP & Quantitative Easing YES YES

- Inflation Reporting Distortions YES




Ty AndrosTedbits.com

Traderview.com





http://www.traderview.com/

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Macro Analytics - 04-12-12 - Financial Repression

Economy & Finance

Transcript of Macro Analytics - 04-12-12 - Financial Repression