Billionaire Ray Dalio,founder of the world's largest hedge fund,Bridgewater Associates,speaks.He believes corporate losses in the US will be upto 4 trillion and global corporate losses to hit a whooping 12 trillion.Feels central bank money printing is impotent.Hear his interview on the link provided



Investor Ray Dalio estimates the corporate losses in the US from coronavirus will top $4 trillion

Wow nominal yield on the US 3 month tbill is 0.01%. Eventually it will hit negative.For the 1 and 6 month its 0.04% as I write this.If you consider US grossly mistated inflation is about 2%,then real yield is -2%.In fact,if you bought even the 30 year with current yield of 1.76%,you still lose money if factor in inflation.So you park your money for 30 years for a negative real return.Ok to be fair what really happens is that investors arent looking for that paltry yield but capital appreciation when they trade them in the secondary market.Its how negative yielding bonds in the Eurozone and Japan have lasted for a number of years now provided you arent the sucker who holds to maturity and loses money.At some point last year,the entire German government bond market upto the 30 year bond was negative yielding.Now thats just nuts but its the world we live in.

The central banks (at least as constituted in the Western world) should be abolished.First,the Fed isnt a government agency and holds no real reserves.The Fed is owned by member banks ie the big 6 Wall Street Banks ie JP Morgan,Citigroup,Bank of America,Wells Fargo,Goldman Sachs and Morgan Stanley plus other shadowy entities not disclosed to the public.True shareholding of the Fed is a closely guarded secret.Do you think the trillions being printed for bailouts and to prop up overleveraged bubble stocks and bonds is being freely given by the Fed to the US government and corporations?Hell No.These are loans to the US serikali and corporates which they have to pay with interest.So the Fed creates fiat currency from nothing,lends it out and expects to be paid with interest??Wow its exactly like I type 1 trillion on my computer screen and give it to my someone and we both agree its money enforceable by law,he goes out and performs a labour and has to return that 1 trillion I conjured up by computer keystrokes plus interest.So where is the interest to come from if I only created 1 trillion in the first instance.He or another entity has to borrow more conjured up currency created by me to pay the interest and this newly borrowed money also has an interest payment attached to it so even more currency has to be borrowed from me and this perpetual cycle continues.So do commercial banks do the same.Almost everyone assumes that banks loan cash deposited by clients.Thats not entirely true.Banks create new money from nothing when you take out a loan and charge you interest.The amount of deposits only limits the amount of new loans a bank can create (what is known as reserve ratio)and if in a country a bank has a zero reserve ratio like the Fed lowered this ratio to zero last Sunday,then a bank can theoretically make infinite amount of loans and hold zero reserves for depositors.Kenya has a reserve ratio of 5.25% essentially meaning commercial banks increase the money supply by nearly twenty times.This whole concept is known as debt based fiat fractional reserve banking system.It may take sometime to fully appreciate it but when you do it will blow your mind away and have a true feel of the nefarious nature of current central and commercial banking.It would take me many hours and paragraphs to explain it so let me leave a few videos here that captures the gist of what I am saying








So the government pays the Fed with tax money levied on its citizens.Money the Fed created from nothing??Thats just nuts and fraud.Its this nature of central banking that the US founding fathers fought so viciously against and US abolished the first 2 central banks and the current fed formed in 1913 was created in such a sly,secretive manner.The book "The Creature from Jekyll Island" explains this but there are many videos on this plus on fractional reserve banking.

So the whole system sucks and stinks

To be honest, I really enjoy his point of view of the financial system, especially the US. So @slick, I choose to take the red pill, to stay in wonderland. Show us how deep the rabbit hole goes.

@NewMoney No conspiracy theory.Just facts that some may find unbelievable and too painful to swallow.I back up all my utterances with appropriate screenshots,links and videos.99% of people assume that the Western financial system is sound and to be emulated yet in reality its quite a decadent rot beneath the veneer of majesty.Yes Western tech is awesome but in terms of economics and monetary policy it quite appalling.The fact that Western central banks buy their own government and corporate bonds and some even stocks from money created out of nothing is quite damning.I seek to expose these shenanigans.If you feel its too much for you,you are free not to look at this thread

Slick is a genius with a facile mind who learns quick, knows much and understands how the world really works.
Just because you do not get the truths he is telling you does not mean you should attack him based on your paucity of real-world knowledge. Sio hiyo namby pamby knowledge ya the endless lies they tell you in vitabus za uni fuaaaaaa.
Kijana reminds me well well of myself 15 years ago-oo. Asiguswe wala asibabaishwe na wewe hata kitogo. Aendelee vivyo hifyo.

@sparkly.The West doesnt practise true capitalism.Its crony capitalism.In true capitalism businesses that engage in shenanigans and fraud should not be bailed out by the government and be allowed to fail.This provides a lesson those executives that engaged in excess and such bankruptcies clear the excesses in the system and allow more honest player to take over.This prevents a concept called 'moral hazard' where organizations engage in shenanigans to generate excess profits for themselves and when their malfeasance blows up,they rush to and sometimes force their government and central bank buddies to bail them out at taxpayers expense.The "too big to fail" moral hazard is endemic in the developed world and is responsible for the record bubble markets.

As an example just look at the housing bubble in the US in the early 2000s.The Fed provided cheap money to the banks by lowering rates to 1% after another Fed induced dot-com bubble burst.The Fed and Bush Administration pushed the banks to lend to uncreditworthy individuals sub-prime mortgage loans.These banks were fully aware these homeowners wouldnt be able to pay their mortgages especially when interest rates went up.All the Wall Street commercial banks engaged in these predatory lending standards.Dubious sub-prime loans called NINA loans ie No income,No job,No Assets loans dished out to people (with as the term NINA states) with no jobs and income.Any banker knows you dont offer credit facilities to individuals without an income and that a bank should adhere to rigorous credit standards yet these US banks (the banks what we assume are the gold standard of banking to emulate) pushed these bogus loans.Why did they do this?Its all about securitization.Once they dished out these loans they could create products like Mortgage Backed Securities (MBS) and derivative products called Collateralized Debt Obligations (CDOs) and sold them to investors at exhorbitant prices thereby collecting an insane amount of fees.Anyone who has watched the movie 'The Big Short' knows what I am talking about.In the MBS and CDOs they bundled proper prime loans and sub-prime junk into one product to sell to investors and they bribed the rating agencies ie S&P.Moodys,Fitch to give these bundled instruments a Triple AAA rating while they were bogus.Once these banks sold off these MBS and CDOs these sub-prime mortgages were out of their balance sheet so didnt care if sub-prime mortgage borrowers failed to pay.Thus this created a bubble of epic proportions where even an unemployed guy could have sub-prime mortgages of even 3-5 houses 'banking' on the Equity release of the appreciating home prices assuming that the housing prices always go up.Fed then started raising rates in 2006 to prevent inflation,sub-prime borrowers started defaulting and the MBS and CDOs went into distress.Even when the banks realized that the MBS and CDOs were increasingly getting worthless,the banks with the rating agencies kept pushing the fradulent narrative that they were Triple AAA rated securities to dump them off their books to naive clients so that they dont eat the losses themselves.Moreover,these banks went and quietly took out an insurance policy instrument called Credit Default Swaps (CDS)-mostly with the world's largest insurer AIG-to bet against the MBS and CDOs failing while still pushing them to their clients as solid investments.The largest investment bank in the US ie Goldman Sachs was particularly nefarious in these CDS acquisitions for their failing MBS and CDOs.When the whole ponzi scheme started to unravel in 2008,investment banks Bear Stearns and Merrill Lynch were bailed out by being sold by a Fed arranged bailout to JP Morgan and Bank of America respectively.Lehman failed because the CEO Dick Fuld,refused to sell his firm at a lower price to Barclays so was allowed to fail and Barclays scooped Lehman's assets at throwaway prices.AIG that provided the Credit Default Swaps instruments was bailed out also as they had to pay out the insurance compensation to the other Wall Street banks like JP Morgan (US largest commercial bank and Goldman Sachs plus other Wall Street banks otherwise all these banks would have collapsed also.I say they should have been allowed to collapse.It served them right to fail for engaging in such dubious predatory lending standards and fradulent securitization of these sub-prime mortgages but they were bailed out at taxpayers expense while the poor folks that took out these mortgages were thrown out of these houses with the homes foreclosed and auctioned.These homes were auctioned to private equity firms at throw away prices.Trillions of USD were created by the US and other developed world central banks to bail-out their banking buddies while the poor were left out.So it was as the mantra states banks privatize the profits and socialize the losses.As I said before,these trillions of QE bailouts werent freely given by the Fed.These are loans where the Fed creates the money out of nothing and lent to the government and government has to pay back with interest from taxation proceeds.As a result of the 2008 crisis,the US national debt during the Obama Administration doubled from 10 trillion to 20 trillion to facilitate these banksters bailouts.It had doubled from 5 to 10 trillion during the Bush era and US national debt stands at 23.5 trillion (106% of GDP) and if you count other debt obligations like unfunded liabilities of medicare,mediacaid and social security its over 150 trillion.The US is the greatest debtor nation in the history of the world.There is NO WAY all this debt can be repaid honestly.

Now that these criminal banks were bailed out,they have now engaged in the same shenanigans similar to the housing bubble but now in corporate debt markets.They dished out cheap loans to uncreditworthy firms and these sub-prime corporate loans are known as leveraged loans.Yet again just like in the housing bubbles they have securitized these bogus loans into corporate bonds and derivative products called Collateralized Loan Obligations (CLOs).The US shale oil industry has been particularly notorious in this scheme getting cheap loans from banks and issuing junk bonds.Using these proceeds from the bonds,firms go out to buy back their own stock to pump up their stock prices and give a false impression of robust companies and rising stock prices suck in retail investors to keep buying bubble stocks.The airline industries and Boeing have been particularly notorious in this stock buyback shenanigans as I explained in the Kenya Airways..why ignore thread. as below and now these firms want a bailout?



Covid-19 is an unfortunate event but its not the main reason why the Western markets are faltering with such extremity.Its the record level over leveraged grotesque bubble markets built up by central bank liquidity that was the real danger and the virus is just the pin that popped this bubble.If they had practised proper sound capitalism,the effects of the virus wouldnt be as pronounced.Now the Fed is printing trillions daily to push the US debt load to catastrophic levels again to bailout fradulent firms that should be allowed to fail.Their collapse would be painful short term but long term beneficial to weed out these excesses and allow more honest organizations to spring up and take over.

There is this almost comical HBO documentary of the politics and intricacies of the 2008 crisis.Republicans(@slick )threw Bush under the bus,pelosi/Obama had other Ideas.

https://m.youtube.com/wa...utu.be&v=QozGSS7QY_U

@Slick I didn't ask for a lecture but your points are well taken. We know cronism capitalism as you call it is bad but the reality is that everyone is happy when things are going well. Borrowers, Executives, Employees, Shareholders and Government all celebrate when the economies are booming. The party has to stop at some point and people will face the music. To you, crony capitalism is bad but what is your preferred system? Do you want us to go to real capitalism where Europeans colonized other continents, committed genocides and enslaved people just to take sugar in their tea and buy trinkets in London? Be careful not to come out as paranoid.