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No Hope for Humanity

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We discuss the real problem facing global growth right now, the massive government debt and credit bubble in this video. Republicans and Democrats keep Spending and Borrowing like there is No Tomorrow.

The global financial numbers don`t make sense, governments and central banks cannot add to their balance sheets in an infinite manner, and expect global growth to buck the current downtrend. Moreover, who is left to buy now, where is the incremental buyer in the financial system? We have a Global Financial Ponzi Scheme, the numbers just don`t add up, financial gimmicks with no basic structural finance soundness underneath, are a house made of cards and doomed to crash, this is where we are at currently in global finance. The Global Financial System is the Real Big Short, it is the Biggest Short we have ever seen in the history of Financial Markets!

We have met the endgame, the can has been kicked as far down the road, the inevitable rubber meets the road reality day is here, now pay up. You cannot lower interest rates any lower, you cannot borrow any more, you cannot add any more to central bank`s balance sheets, governments cannot borrow anymore money through unsound deficit financing. Now rates are going up, inflation is going up, as there has been too much money printing, currency devaluation, and central bank inspired fiat capital created chasing too few real goods in the global economy. And Moreover, you cannot “Trade War” your way to prosperity through these populous movements which are a reflection of the reality on the ground of the Global Zero Sum Game of a few Winners and a lot of Net Losers. The reality is that at this point structural changes need to be made that respects finance principles and basic capitalistic models.

Since politicians and central bankers are too weak and incompetent to do anything but kick the can down the road creating further debt, credit and asset bubble “Days or Reckoning” the only true Reality Check and form of discipline comes via a Global Recession and Financial Market Crash. This is the Forced Reset Option that occurred in the second half of 2007!

Who is going to regulate Central Banks and Governments because they have done far more harm to the stability of capitalism and financial markets than any investment bank, hedge fund, or financial institution in the history of financial markets. Until we have systemic changes in many areas, and no I don`t think Donald Trump is the savior, just like President Obama wasn`t, we are going to struggle mightily as a society both locally and globally. At this point, there is still no light at the end of the tunnel, There is No Hope for Humanity!

This basic point, and it is a finance and capitalistic point is that if you cannot afford to provide a good job and future for your children, then you don`t have kids, period. Until this basic economic fact is adhered to, the entire financial system is in trouble, because the numbers just don`t add up anymore. And advances in technology are only going to make this finance law of nature worse, and providing a basic income for a bunch of “idle population” because there are no jobs for them, is just more unsound Finance Can Kicking.

The basic laws of Finance and Capitalism have to be respected, the finance numbers have to add up or make sense. If the world continues to create more people than there are good jobs, the finance equation continues to break down, and humanity continues down its current path of systemic breakdown. We are basically still pretty stupid animals, and unless we “smarten up” considerably there is No Hope for Humanity, and we are in for a lot of ‘Finger Getting Burned on the Stove Learning Events’ and ‘Finance Principle Disciplining’ as a recurring theme for Humanity. The question is will Humans ever “Smarten Up” and Learn from these past mistakes?

And by No Hope, I mean from the Global Zero Sum Game of Winners and Losers, a few Global Winners and most of the World as Net Losers depending how exceptionally well they are able to navigate the multitude of financial, economic and politic landmines of incompetent structural policies by governments, central banks and religious leaders around the world.


13 Comments on "No Hope for Humanity"

  1. makati1 on Tue, 27th Dec 2016 8:14 pm 

    “No Hope for Humanity”

    Most true headline in a long time.

  2. onlooker on Wed, 28th Dec 2016 12:23 am 

    I would not say NO hope exists for humanity. I would say we have been on the wrong track for so long and we are reaching the end of the track and something almost miraculous needs to happen to put us back on the right track. As they say “Never give up hope”

  3. joe on Wed, 28th Dec 2016 1:50 am 

    China proved it hypocrisy when the ‘communist’ nation was the main driver of helicopter money. Central banks fear to turn off the money tap because companies cannot drive growthon their own. The reason is that growth is flat. Globalisation has had its impact. The game isnt about sending inefficient unionised jobs overseas and buying cheap crap they send back, the game is about what to do about the debt built up by those whoes jobs were moved who turned to debt and rising asset prices to maintain and raise their standard of living. The answer to this game it seems is to double down. The real issue with debt for government isnt about balancing or the debt per se (I mean are they going to become homeless or sell the parliament)? The real problem is how they will deal with debt relative to each other. So far the answer is to maintain, but eventually it will be to let currencies fall and debt defaults.

  4. Cloggie on Wed, 28th Dec 2016 2:11 am 

    More imperial bullshit. The author focuses on the US, sees not much hope for the US and mysteriously concludes that there is no hope for humanity. The author merely admits that in his view the US empire=humanity and that was indeed the intention of America… a dream that is not going to materialize.

    Interesting that both this author and Kunstler don’t refer to “peak oil”. What is most likely going to happen is a global financial collapse and reset and a redistribution of the geopolitical cards

    There are many internet Cassandra’s announcing that a Big Reset is immanent. In the US they often appear in Greg Hunter’s USAWatchdog internet talkshow.

    In Holland we have self-described “right-wing Jewish dude” Willem Middelkoop, who became modestly rich with his gold trade (what else is new with these people) and who wrote an international bestseller “The Big Reset”. Here he explains his theory in a talk for Dutch students (English subs):

    Middelkoop is a 9/11-truther, believes in peak oil, hates neocons and NATO and doesn’t demonize Putin.

  5. efarmer on Wed, 28th Dec 2016 9:41 am 

    The author has a meme that capitalism must be respected and allowed to leverage a reduction in population growth based on the financial austerity of supporting children. Capitalism is an exploit of abundant energy and resources that can be leveraged and redirected to where needed by markets and adherence to financial rules. WIthout growth capitalism is dead on arrival and not any sort of a useful tool anymore. My personal take away is that we are bargaining the capitalism or technology will stay in place to temper the lack of growth that they feed on rather than chaos taking hold and something gradually emerging from the resulting maelstrom at a scale and place where it can function. Such things are hard to contemplate, hence we grasp at bullshit stories based on what we have done being correct if we only “double down”. The idea of having had this taken from us is another B.S. story when in reality we consumed it in a very frivolous and lavish exploit.

  6. onlooker on Wed, 28th Dec 2016 9:53 am 

    Good succinct grasp of the situation Farmer. Yes it is utter BS that capitalism is being taken away by Govts or Central Banks. They are Capitalism in the sense of being coopted by Capitalism or serving its mandates. Capitalism has simply reached its end destination given its mandate to grow and compete. It cannot not do this more because the Earth and the pressures the huge human population put on it cannot tolerate more growth or accommodate it. As you said Farmer our wanton insatiable party is ending because it had too.

  7. penury on Wed, 28th Dec 2016 10:00 am 

    The collapse of the “Capitalist” system is assured. Nations are bankrupt? Check. Corporations are bankrupt? Check People are bankrupt? Check Social programs are bankrupt? Check. How long will retirement and/or medical programs going to last? Game over. Check and mate.

  8. Apneaman on Wed, 28th Dec 2016 11:17 am 

    There is no hope for humanity because of humanity, not because of one particular system. Their doom is hardwired into their cognitive architecture. A cancer extraordinaire.

  9. Apneaman on Wed, 28th Dec 2016 11:19 am 

    Authentic Hope Versus False (Flatland) Hope

  10. onlooker on Wed, 28th Dec 2016 11:57 am 

    To piggy back on what AP is saying our supposed “success” was precisely the path to our ultimate doom. When you have a morally bankrupt species with big brains yet equally big passions and urges well then you got what we got. Did we ever even once stop to think of future generations, of whether non stop economic growth was really good, of renouncing our infantile religions if for no other reason than to control our procreation habits, of the fact that the Earth could only take so much abuse. NO. So there it is guys we are our own worse enemy.

  11. Sissyfuss on Wed, 28th Dec 2016 4:02 pm 

    “The basic laws of Finance and Capitalism have to be respected.” Says who! Economics is all human artifice, and when this system no longer works, we will come up with another one or two or how many it takes to find one that works. Humans are very good at adapting when forced. Sadly they usually have to be forced. And there are so many forcings headed are way that it will take the most adaptable of us to succeed. Keep light on your toes, people. Changing direction at a moments notice will be necessary.

  12. onlooker on Wed, 28th Dec 2016 4:22 pm 

    Yep, sounds pretty dogmatic from the “science” which is not a science. Only a very dumb species would not change and adapt to changing circumstances. Even animals adapt and change behavior

  13. makati1 on Wed, 28th Dec 2016 5:59 pm 

    Penury, well said. Game over!

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