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(Advancing Time)—There are a lot of parts or plumbing in the financial system that we don’t see. It is important to note the financial system and the economy may intersect but are not the same thing. Ignoring this fact, as many people do, will come back to haunt us.
This is why AdvancingTime has pounded away at the idea that where and what we buy has a major impact on the future of both communities and countries. I just finished watching “Thoughtful Money (with Adam Taggart) Good news!” The Zero Hedge team put this special Thoughtful Money’s debate on the fate of the US dollar on the YouTube channel. This was a deep-dive discussion of over three hours.
This important video did nothing to change my mind about where the world is going. In short, I liked Brent Johnson’s line, “certainty is death.” He claims he is not certain about anything. The footnote under the discussion title makes it clear that Investing in stocks, bonds, exchange-traded funds, mutual funds, and money market funds involves risk of loss. Loss of principal is possible. Also, some high-risk investments may use leverage, which will accentuate gains & losses. Foreign investing involves special risks, including a greater volatility and political, economic, and currency risks and differences in accounting methods. In short, it underlines Johnson’s uncertainty.
More than one economist, big wig CEO, and Fed watcher have admitted the problems haunting the financial system have very deep roots. These people often contend governments and central banks have not fully rectified the problems causing the great financial crisis of 2008. Instead, they have merely papered over our failures by printing money and flooding the system with liquidity.
In truth, the financial system is a rickety cobbled-together mess of poorly fitted pieces. Overall, the financial system is not a well designed machine. Instead, it is glued together in a haphazard way to get the job done. To make matters worse, this system is greased by the greed of those who benefit from stealing a little from here and there.
In the real world, things are usually not intentionally designed to be complicated but the reality is that they just are. Part of getting a clear picture of where we are headed stems from the reality this is not all about economics but politics plays a major part in our future. Recessions have always had the effect of cleansing the economy of weak noncompetitive companies to clear the way for new stronger companies. The efforts of those in charge of such things to remove recessions from the economic cycle has created a new hazard.
An excellent example of “hidden plumbing” is the Japanese carry trade. An article by Bloomberg reporter Masaki Kondo that appeared on Zerohedge on February 1st titled, “Aozora Delivers Grim Reminder Of Japan Carry-Trade Risk” details some of these issues. It details how Japanese investors as a whole have boosted their overseas investment since the BOJ expanded monetary easing in 2013. This includes Japanese banks. This puts them at risk if the cost of borrowing in yen should rise. He point out this could trigger an unwinding of Japan’s massive carry trade.
While many people have focused on the losses US banks have incurred on long-term US bonds and American Banks’ exposure to commercial real estate, little attention has been paid to Japan’s exposure to these items. Not only could Japanese banks take a hit on both these investments but Japan’s exposure to the downturn and losses in China is another area for concern. Yes, it is possible that China’s economic problems will spill over and negatively impact Japan. Still, this is an area many financial gurus claim is an opportunity for Japan to expand into and exploit, in short, they claim economic chaos in China is a plus.
We should be aware that clogs in the system could create liquidity issues and even a change in the velocity at which money moves through the financial system could cause problems. The “slowing in the velocity of money” is rooted in where it is being placed. The speed at which money flows through the economy in some ways is tied to the speculation about the future of inflation.
Behind the scenes, a lot of things are occurring that we don’t recognize as important until they are unveiled as being so. Trade deficits, reshoring of manufacturing, changes in how taxes are accessed, man made and natural disasters, and more all flow into this mix. This translates into “nobody really knows what the future holds.” The so-called, often self-proclaimed experts, included.
Another thing we should be worried about is “financial one-offs” These are one-time events that may prove unable to propel the financial system forward over the long haul. In a world void of financially nutritious content, an individual has to really go out of their way to become educated in the way to avoid ending up as financial road kill. The less you know may increase your feeling all is well but does little to ensure your financial future.
Ten Election Irregularities That Have Occurred During Early Voting So Far
by Just The News
A variety of election irregularities – at least ten of them – have occurred across the country in the weeks leading up to Election Day, as some states have reported record-breaking turnout during early voting. The issues range from burning ballot boxes to fake voter registrations, with the close presidential…
Will Gold and Silver Prices Drop if Donald Trump Wins?
by Sponsored Post
It’s well-established among economists that if Kamala Harris wins the presidential election, gold and silver will likely shoot up in value. But what if Donald Trump wins? With his chances of victory increasing, should gold and silver owners sell now because values will drop during his second term? “Considering everything…
Election Skullduggery From Around the Nation
by PJ Media
To the surprise of no one with an ounce of grey matter, the 2024 election irregularities have begun, and, as expected, Democrats are responsible for almost of the malfeasance. Roughly 57 million Americans have already voted as of this writing, and I’ve found a K2-sized pile of evidence showing the…
P. Diddy ‘Kept Meticulous Records’ of His Parties and ‘Has Enough Dirt to Hang Expose of Hollywood’
by End Times Headlines
Sean “P. Diddy” Combs has had zero support from exes, including Jennifer Lopez and Cameron Diaz, who are in a major panic that he’ll drag them down by spilling sordid secrets about them if he winds up wearing a number, a source exclusively tells In Touch. “It’s not like they’ve…
What if Harris Gets Away With It?
by The Blaze
On Nov. 5, the American experiment in republican government may well come to an end. Over the past two decades, we have been living through a slow-motion communist revolution. Acts of political warfare have become commonplace. The most devastating has been the corruption of our election system. Having vilified Donald…
Here Are 8 Major Election Developments That Everyone Needs to Know About
by Michael Snyder
(The Economic Collapse Blog)—Can you believe that we are less than a week away from Election Day? Over 57 million Americans have already voted, and in some states more than half of the total expected vote is already in. So it may already be too late for a last minute…
Democrats Plan for Color Revolution
by Zero Hedge
It feels like there’s been a notable shift amongst Democrats in the last month. A recent sense of fatalism – or perhaps just simple resignation to what appears to be an inevitable Trump win. But as it turns out, there are some Democrats who have been preparing for this potential…
This Election Will Not Prevent the Coming Chaos
by Mike Pottage
(WND)—It seems the justice system is overwhelmed by criminal cases involving illegals, and this puts Americans at risk of being short changed by that system. What is even more astounding is the fact this crisis was created by the Democrat Party and was 50 years in the making, and yet…
House Republicans Warn White House It Could Have Violated Federal Law by Editing Biden’s Transcript
by Just The News
House Republican Conference Chair Elise Stefanik and House Oversight Committee Chairman James Comer accused the White House on Wednesday of publishing a “false transcript” of President Joe Biden’s controversial remarks on Tuesday, and warned doing so could have violated federal law. The president appeared to say that supporters of former…
As Christians Go To The Polls, We Must Remember: The Future Of Our Nation Is At Stake
by Harbingers Daily
In just a few days, our nation will hold one of the most consequential elections in decades. Voters will go to the polls on Tuesday, Nov. 5, to cast their ballots for the next president of the United States, as well as for many crucial congressional, state and local offices….
‘Fertility Call Checks’ — Chinese Communists Cold-Call Women Demanding Details About Their Periods
by Breitbart
Chinese women are flooding regime-controlled social media with complaints that local Communist Party officials are making phone calls to harass them into having more children, the South China Morning Post reported on Tuesday. The callers, government “grassroots” officials, sometimes demand details of their private lives including the timing of their…
Absolutely Massive Food Bank Demand in the Swing States of Pennsylvania, Michigan and Wisconsin
by Michael Snyder
(The Economic Collapse Blog)—The economy is the number one political issue in America right now, and it isn’t because the economy is doing well. The long-term economic collapse that I have been writing about for years is playing out right in front of our eyes, and it is going to have…
