On this episode of the Red Eye Report, Ashtray finally cashes in on his Economic Doom Loop predictions. It’s only been 5 years, but well, here we are. Mistic is getting hazard pay, so he’s buying fried chicken for everyone, and Ashtray proves that he’s absolutely incapable of surviving without bar food.
The Economic DOOM LOOP
The “Doom Loop” has been defined in the New York Times as: “a virtueless circle in which banks take ever-greater risks to boost returns (secure in the knowledge the state will underwrite them), and governments are forced to break their promises “never again” to bankroll losses (further encouraging banks to take dangerous risks).”
The Pension Problem:
People think it’s a promise, but the math isn’t there to fulfill that promise.
Average Baby Boomer = $200,000 in wealth/assets
Baby boomers are spending less money as they retire, lowering overall economic growth.
The Fed will probably have to bail it out = more money printing
Corporate Share Buybacks:
An accounting trick where a company buys back some of their own shares from the stock market.
Less shares in the market = More value per share.
Top management line their pockets with their own shares, thus making themselves rich.
Corporate Debt levels:
The Repo Market black hole:
The market where banks borrow from other banks for short term funding needs.
Banks are in need for short term money in larger amounts than the lending banks want to loan – so interest rate spikes for Repo loans.
Interest rates will have to fall because of the dollar shortage
Dollar value will rise – throwing off trade markets
Gov will over stimulate to bailout the pensions
Medical Insurance survival after COVID19
Russia and Saudi Arabia get into a pissing match over oil
Trying to out produce each other in order to get as much money as they can while the price per barrel goes down.
Oil tankers are in high demand as they are the last place to store all the extra crude.
Brain drain from finance/technology/science are going to working on a
“Creating a hive mind to rebuild financial custody, ownership, transfer of everything world in parallel, at the same time.”
Separation of State and Money
Every Central Bank in the world is building their own cryptocurrency, even if they don’t admit it.
Teddy: The division 2 Global event
Oracle: F1 2019
Mistic: Hazard Pay
Ashtray: Dumbass licker
Fuck What You Think
Ashtray: Eating at home.
Oracle: Don’t expect me to do your work if you are self-quarantined
In all Seriousness: Go fuck yourself Wuhan, Iowa. That’s our show, we’re gonna be here every Thursday night at 10pm central, make sure you join the conversation at theredeyereport.com or facebook.com/redeyereport…..you can also twittle us @redeye_report….like us, share us, or fuck us, we’re down for whatever. I’m Oracle…………….and this is the RED EYE REPORT!!!!!