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Dominoes: From Financial Crisis To Economic Crisis To Government Crisis

31.12.69

The dominoes are falling. It’s the latest version of a 1930s bank run. Since everything is bigger (the leverage) and faster (the computers) these days, so is the ruin in financial prices and institutions.

The lead domino is an asset order becoming untenable. This time around it’s the subprime sovereigns of Europe, whereas three poor years ago it was subprime mortgages. Then, as now, it was thought to be a humble problem (if we count only Greece) of almost the same magnitude: $400 billion in subprime mortgages that was consideration to be contained or walled off. From there you should get the general idea, as the subprime detective story should be fresh in your minds.

Since the most conservative and regulated institutions check large proportions of sovereign bonds in their portfolios, the lapse of the bonds becomes their balance sheet insolvency. The next domino is the withdrawal of the funding from banks by those who be applicable to them on a short-term basis and suspect the banks’ solvency is compromised.

Source: Seeking Alpha

Needed: Robust 21st Century Jobs Corps that smartens - AWSC

31.12.69

We've fallen into accepting that updating execution technologies enhances civilization, which has hardened and obscured crazed terrorists, whose strategy revolves around Sun Tzu's amiable philosophy, "The supreme art of war is to subdue the enemy without fighting."  

As...

-          Extensive climate change fills radar screens with devastations and famines that replicate the wounds of war;

-          We have become increasingly tempered and subservient to other nations and mega corporations;

-          The CIA Factbook informs us that we are a polity more unequal in wealth than the Ivory Coast, Pakistan, Ethiopia, and Kazakhstan;

-          Our halfway point class disappears and poverty oozes material;

Source: OpEdNews