The Zombies 2015 - 2017 Part 3

UPDATED IN RED 14 MARCH 2016 

4.  The Financial 3-Way Trap Facing The West - PART 1

(A)  Where are YOU Living White Boy.....??

• Australia..?
• Canada..?
• Europe..?
• New Zealand..?
• United Kingdom..?
• United States..?

We have news for you.  You're being set up in an historic and unprecedented financial trap.


(B)  The Background To The Financial 3-Way Trap Facing The West

a.   Lies, Damn Lies And Statistics 

• Official statistics on Western recovery are a lie or suspect;
• The World entered a deeper Second Recession in 2015 - AND NEVER RECOVERED FROM THE ONE BETWEEN 2008 AND 2015;
• Every Western country (except Iceland which jailed the bankers) is playing a shell game to hide the true extent of sovereign debt, corporate debt, derivative exposure and personal debt;

 
b.  Show Me The Money Debt 

• Eurozone banks have minimal amounts of capital, compared to their total liabilities.  That level of gearing is risky when going into another Recession;
• Eurozone bank "Stress Tests" are suspect;
• Lots of junk collateral that was pledged for loans is overvalued and will have to be written down;
• Since 2008, Central Banks have engaged in "Collateral Transformation".  That means they are providing "Good" collateral in exchange for "Bad" Collateral.  They are attempting to help weak banks prop up their capital ratios.
• In providing Liquidity and "Good Collateral", the Central Banks have now absorbed the "Bad Trash Collateral".  In other words, Garbage is at the centre of the Financial System.  Risk is now concentrated.
• The crash in US Dollar denominated Oil Prices was intended to hurt the Russians - which it did.  It also crushed the North American oil industry in US and Canada. Banks which lent to North American oil companies are now staring at huge bad debts. 

c.  Increased Personal Credit Card Debt In The US

• Total outstanding personal credit card debt in the US is approaching US$1 Trillion.
• US consumers racked up more credit card debt in the 4th Quarter of 2015 than 2009, 2010 and 2011 combined.

c.   Quantitative Easing Triggered Asset Bubbles And A Currency War

• Favoured and enriched those who had access to funds.  Triggered a massive global real estate and stock bubble - that is now Deflating;
• Debased currencies worldwide.  Started a currency war of competitive devaluation;

d.   Deflation Meets Economic Depression Meets Demographics

• Western economic slowdown across the board.  Not discussed in polite company;
• Volatility of Stock Markets since January 2016, causing people to pull their cash out
• In the US, the Baby Boomers are now reaching 70.  They will start cashing in their retirement plans - the 401K - during a falling market.  That will trigger more people to sell.
• The growing backlash against intrusive Western governmental surveillance of computers, mobile data and the internet;
• The slow collapse of the Western Welfare state; 
• The slow collapse of the European Union and the Euro;
• The realization that Central Banks do not know what they're doing;

Coming Up In Part 4:  The Financial 3-Way Trap Facing The West - PART 2