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Geopolitics
Geopolitics
by
Chris Martenson
Executive Summary
- Geopolitical unity is fracturing as countries are forced to compete more
- LIBOR is signaling a credit emergency in Europe
- The market is sending signs a major war and/or a major recession may be imminent
- The last remaining heroes for risk-on capital, the FANG stocks, are quickly becoming villains
If you have not yet read Part 1: The Future Ain't What It Used To Be, available free to all readers, please click here to read it first.
The central banks of the world have failed: colossally, completely and dangerously. Yes, they will try to rescue the “markets” once again, as they did in 2011 and 2016 when things similarly looked to be falling apart.
The reason they might not be able to succeed this time?
They are out of maneuvering room.
Nothing will happen if interest rates are clubbed back down a percent or two. To do that, though, would require the same sort of lock-step coordination as prior times. The ECB, BoJ and Fed would all have to operate seamlessly again.
The most immediate of my concerns, even more than the tech-wreck that began a few weeks ago, is the rise in the LIBOR interest rate. Why? Because trouble always moves from the outside in.
Let’s do the math With $350 trillion worth of assets tied to LIBOR, that means each 1% rise in the LIBOR rate translates into $3.5 trillion dollars of increased interest costs.
LIBOR is now at its highest rate since 2009, and it's spiking for reasons nobody can fully explain. In my mind, higher LIBOR means that there’s less trust and/or liquidity in the system. It also means borrowing costs are heading up for…
Everything Is Suddenly Deteriorating, Fast
PREVIEW by Chris MartensonExecutive Summary
- Geopolitical unity is fracturing as countries are forced to compete more
- LIBOR is signaling a credit emergency in Europe
- The market is sending signs a major war and/or a major recession may be imminent
- The last remaining heroes for risk-on capital, the FANG stocks, are quickly becoming villains
If you have not yet read Part 1: The Future Ain't What It Used To Be, available free to all readers, please click here to read it first.
The central banks of the world have failed: colossally, completely and dangerously. Yes, they will try to rescue the “markets” once again, as they did in 2011 and 2016 when things similarly looked to be falling apart.
The reason they might not be able to succeed this time?
They are out of maneuvering room.
Nothing will happen if interest rates are clubbed back down a percent or two. To do that, though, would require the same sort of lock-step coordination as prior times. The ECB, BoJ and Fed would all have to operate seamlessly again.
The most immediate of my concerns, even more than the tech-wreck that began a few weeks ago, is the rise in the LIBOR interest rate. Why? Because trouble always moves from the outside in.
Let’s do the math With $350 trillion worth of assets tied to LIBOR, that means each 1% rise in the LIBOR rate translates into $3.5 trillion dollars of increased interest costs.
LIBOR is now at its highest rate since 2009, and it's spiking for reasons nobody can fully explain. In my mind, higher LIBOR means that there’s less trust and/or liquidity in the system. It also means borrowing costs are heading up for…
by
charleshughsmith
Executive Summary
- The Destructive Practices To Stop Doing
- The Regenerative Behaviors To Do More Of
- Getting The Foundational Pieces In Place
- The Payoff, For Both You & Society
If you have not yet read Part 1: We Need a Social Revolution available free to all readers, please click here to read it first.
In Part 1, we compared non-hierarchical, bottoms-up secular social revolutions with hierarchical, top-down political and technological revolutions managed by the state and corporate sector. Next, we surveyed the erosion of social connectedness and social capital, and asked who benefited from this fraying of the social order. While certain players derive some benefit from political divisiveness and from the sale of technologies that undermine authentic connectedness, it seems that much of the social-order decay is collateral damage—destruction that wasn’t intentional.
How can we strengthen or repair our own connections and social fabric in such a disintegrative era?
There are two basic approaches: stop participating in destructive dynamics, and assemble the foundational pieces of a connected social life.
How do we as individuals and households foster and nurture the social bonds that are fast-eroding in civil society?
The basic strategies are not difficult to understand, though they are extremely difficult to put in place in modern-day America:
- Strip out busyness to free up enough time and energy for social life and connectedness.
- Live in a place with short commutes to friends, family and public social spaces.
- Recognize (and then…..
Rescuing Our Future
PREVIEW by charleshughsmithExecutive Summary
- The Destructive Practices To Stop Doing
- The Regenerative Behaviors To Do More Of
- Getting The Foundational Pieces In Place
- The Payoff, For Both You & Society
If you have not yet read Part 1: We Need a Social Revolution available free to all readers, please click here to read it first.
In Part 1, we compared non-hierarchical, bottoms-up secular social revolutions with hierarchical, top-down political and technological revolutions managed by the state and corporate sector. Next, we surveyed the erosion of social connectedness and social capital, and asked who benefited from this fraying of the social order. While certain players derive some benefit from political divisiveness and from the sale of technologies that undermine authentic connectedness, it seems that much of the social-order decay is collateral damage—destruction that wasn’t intentional.
How can we strengthen or repair our own connections and social fabric in such a disintegrative era?
There are two basic approaches: stop participating in destructive dynamics, and assemble the foundational pieces of a connected social life.
How do we as individuals and households foster and nurture the social bonds that are fast-eroding in civil society?
The basic strategies are not difficult to understand, though they are extremely difficult to put in place in modern-day America:
- Strip out busyness to free up enough time and energy for social life and connectedness.
- Live in a place with short commutes to friends, family and public social spaces.
- Recognize (and then…..
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by sand_puppy 
