BUCKLE UP: 2008 Was Just A “Warm-Up”…Facts Show The REAL Financial Crisis Is ComingA fake economy can only sustain itself for so long The Fed is out of control,  exclaims David Stockman   perhaps best known for architecting Reagan s economic turnaround known as  Morning in America    adding that  people don t want to hear the reality and the truth that we re facing. Well, it s one of the scariest moments I think in our history, but also we need to recognize we re in uncharted waters. No central bank has ever printed this much money this long, kept interest rates at zero, fueled so much speculation. Not just here, but worldwide.-David StockmanFor six years, the world has operated under a complete delusion that Central Banks somehow fixed the 2008 Crisis.All of the arguments claiming this defied common sense. A 5th grader would tell you that you cannot solve a debt problem by issuing more debt. If the below chart was a problem BEFORE 2008  there is no way that things are better now. After all, we ve just added another $10 trillion in debt to the US system.Similarly, anyone with a functioning brain could tell you that a bunch of academics with no real-world experience, none of whom have ever started a business or created a single job can t  save  the economy.However, there is an AWFUL lot of money at stake in believing these lies. So the media and the banks and the politicians were happy to promote them. Indeed, one could very easily argue that nearly all of the wealth and power held by those at the top of the economy stem from this fiction.So it s little surprise that no one would admit the facts: that the Fed and other Central Banks not only don t have a clue how to fix the problem, but that they actually have almost no incentive to do so.So here are the facts:1) The REAL problem for the financial system is the bond bubble. In 2008 when the crisis hit it was $80 trillion. It has since grown to over $100 trillion.2)The derivatives market that uses this bond bubble as collateral is over $555 trillion in size.3)Many of the large multinational corporations, sovereign governments, and even municipalities have used derivatives to fake earnings and hide debt. NO ONE knows to what degree this has been the case, but given that 20% of corporate CFOs have admitted to faking earnings in the past, it s likely a significant amount.4) Corporations today are more leveraged than they were in 2007. As Stanley Druckenmiller noted recently, in 2007 corporate bonds were $3.5 trillion  today they are $7 trillion: an amount equal to nearly 50% of US GDP.5) The Central Banks are now all leveraged at levels greater than or equal to where Lehman Brothers was when it imploded. The Fed is leveraged at 78 to 1. The ECB is leveraged at over 26 to 1. Lehman Brothers was leveraged at 30 to 1.6) The Central Banks have no idea how to exit their strategies. Fed minutes released from 2009 show Janet Yellen was worried about how to exit when the Fed s balance sheet was $1.3 trillion (back in 2009). Today it s over $4.5 trillion.We are heading for a crisis that will be exponentially worse than 2008. The global Central Banks have literally bet the financial system that their theories will work. They haven t. All they ve done is set the stage for an even worse crisis in which entire countries will go bankrupt.The situation is clear: the 2008 Crisis was the warm up. The next Crisis will be THE REAL Crisis. The Crisis in which Central Banking itself will fail. Via: Zero HedgeDavid Stockman:Well, it s one of the scariest moments I think in our history, but also we need to recognize we re in uncharted waters. No central bank has ever printed this much money this long, kept interest rates at zero, fueled so much speculation. Not just here, but worldwide. Not just in the normal stocks and bonds, but the whole shale boom, for instance, in the United States was massively funded by cheap debt based on oil prices that weren t sustainable, and now that s all coming unwound. We have never had deficits of ten percent of GDP back to back, or even still four or five percent four or five years into a recovery.We have a runaway budget where the population is getting older and older, 10,000 people are retiring every day. Nothing is being done about Social Security. It s a festering time bomb, and we re not sure how it will explode, but we know it isn t sustainable. We have a Wall Street that is more addicted to pure overnight gambling and trading and speculation for the ultra short run that is driven by robo traders, the so-called HFT money, like never before. It s unstable. That s why we see things happen like the overnight 40 percent gain with the Swiss Franc when the Swiss National Bank pulled the pay.Forty percent overnight   not overnight, but in a couple of minutes or seconds when there were hundreds of billions of short positions in the Swiss Franc. All of these things have never existed simultaneously, not only in the United States, but worldwide. All the central banks are doing it. We re reaching the point where it s unsustainable, things are going to give and break, but the good thing is it s going to be more a disaster in the financial markets in my view, less some kind of Great Depression impact on Main Street. It will be difficult on Main Street, but Wall Street is in the gun sites of this disaster coming.politics
buckle up was just a show the real financial crisis is coming fake economy sustain long the fed control exclaim david stockman perhaps best known architecting reagan economic turnaround known morning america adding people want hear reality truth facing well one scarlet moments i think history also need recognize uncharted waters no central bank ever printed much money long kept interest rates zero fueled much speculation not stockmanfor six years world operated complete delusion central banks somehow fixed arguments claiming defied common sense a grader would tell solve debt problem issuing debt if chart problem before way things better after added another trillion debt us anyone functioning brain could tell bunch academics experience none ever started business created single job save awful lot money stake believing lies so media banks politicians happy promote indeed one could easily argue nearly wealth power held top economy stem little surprise one would admit facts fed central banks clue fix problem actually almost incentive the real problem financial system bond bubble in crisis hit trillion it since grown the derivatives market uses bond bubble collateral trillion many large multinational corporations sovereign governments even municipalities used derivatives fake earnings hide debt no one knows degree case given corporate cos admitted faking earnings past likely significant corporations today leveraged as stanley druckenmiller noted recently corporate bonds trillion today trillion amount equal nearly us the central banks leveraged levels greater equal leyman brothers improved the fed leveraged the ecb leveraged leyman brothers leveraged the central banks idea exit strategies fed minutes released show janet ellen worried exit fed balance sheet trillion back today heading crisis exponentially worse the global central banks literally bet financial system theories work they all done set stage even worse crisis entire countries go situation clear crisis warm the next crisis the real crisis the crisis central banking fail via zero hedgedavid stockman well one scarlet moments i think history also need recognize uncharted waters no central bank ever printed much money long kept interest rates zero fueled much speculation not worldwide not normal stocks bonds whole shale boom instance united states massively funded cheap debt based oil prices sustainable coming unbound we never deficits ten percent gdp back back even still four five percent four five years runaway budget population getting older older people retiring every day nothing done social security it fostering time bomb sure explode know sustainable we wall street addicted pure overnight gambling trading speculation ultra short run driven robot traders ft money like never it unstable that see things happen like overnight percent gain swiss franc swiss national bank pulled percent overnight overnight couple minutes seconds hundreds billions short positions swiss franc all things never existed simultaneously united states worldwide all central banks we reaching point unsustainable things going give break good thing going disaster financial markets view less kind great depression impact main street it difficult main street wall street gun sites disaster
Your task is to classify the provided input as real or fake news. Label 0 is meant for fake news, Label 1 is for real news. TEXT: BUCKLE UP: 2008 Was Just A “Warm-Up”…Facts Show The REAL Financial Crisis Is ComingA fake economy can only sustain itself for so long The Fed is out of control,  exclaims David Stockman   perhaps best known for architecting Reagan s economic turnaround known as  Morning in America    adding that  people don t want to hear the reality and the truth that we re facing. Well, it s one of the scariest moments I think in our history, but also we need to recognize we re in uncharted waters. No central bank has ever printed this much money this long, kept interest rates at zero, fueled so much speculation. Not just here, but worldwide.-David StockmanFor six years, the world has operated under a complete delusion that Central Banks somehow fixed the 2008 Crisis.All of the arguments claiming this defied common sense. A 5th grader would tell you that you cannot solve a debt problem by issuing more debt. If the below chart was a problem BEFORE 2008  there is no way that things are better now. After all, we ve just added another $10 trillion in debt to the US system.Similarly, anyone with a functioning brain could tell you that a bunch of academics with no real-world experience, none of whom have ever started a business or created a single job can t  save  the economy.However, there is an AWFUL lot of money at stake in believing these lies. So the media and the banks and the politicians were happy to promote them. Indeed, one could very easily argue that nearly all of the wealth and power held by those at the top of the economy stem from this fiction.So it s little surprise that no one would admit the facts: that the Fed and other Central Banks not only don t have a clue how to fix the problem, but that they actually have almost no incentive to do so.So here are the facts:1) The REAL problem for the financial system is the bond bubble. In 2008 when the crisis hit it was $80 trillion. It has since grown to over $100 trillion.2)The derivatives market that uses this bond bubble as collateral is over $555 trillion in size.3)Many of the large multinational corporations, sovereign governments, and even municipalities have used derivatives to fake earnings and hide debt. NO ONE knows to what degree this has been the case, but given that 20% of corporate CFOs have admitted to faking earnings in the past, it s likely a significant amount.4) Corporations today are more leveraged than they were in 2007. As Stanley Druckenmiller noted recently, in 2007 corporate bonds were $3.5 trillion  today they are $7 trillion: an amount equal to nearly 50% of US GDP.5) The Central Banks are now all leveraged at levels greater than or equal to where Lehman Brothers was when it imploded. The Fed is leveraged at 78 to 1. The ECB is leveraged at over 26 to 1. Lehman Brothers was leveraged at 30 to 1.6) The Central Banks have no idea how to exit their strategies. Fed minutes released from 2009 show Janet Yellen was worried about how to exit when the Fed s balance sheet was $1.3 trillion (back in 2009). Today it s over $4.5 trillion.We are heading for a crisis that will be exponentially worse than 2008. The global Central Banks have literally bet the financial system that their theories will work. They haven t. All they ve done is set the stage for an even worse crisis in which entire countries will go bankrupt.The situation is clear: the 2008 Crisis was the warm up. The next Crisis will be THE REAL Crisis. The Crisis in which Central Banking itself will fail. Via: Zero HedgeDavid Stockman:Well, it s one of the scariest moments I think in our history, but also we need to recognize we re in uncharted waters. No central bank has ever printed this much money this long, kept interest rates at zero, fueled so much speculation. Not just here, but worldwide. Not just in the normal stocks and bonds, but the whole shale boom, for instance, in the United States was massively funded by cheap debt based on oil prices that weren t sustainable, and now that s all coming unwound. We have never had deficits of ten percent of GDP back to back, or even still four or five percent four or five years into a recovery.We have a runaway budget where the population is getting older and older, 10,000 people are retiring every day. Nothing is being done about Social Security. It s a festering time bomb, and we re not sure how it will explode, but we know it isn t sustainable. We have a Wall Street that is more addicted to pure overnight gambling and trading and speculation for the ultra short run that is driven by robo traders, the so-called HFT money, like never before. It s unstable. That s why we see things happen like the overnight 40 percent gain with the Swiss Franc when the Swiss National Bank pulled the pay.Forty percent overnight   not overnight, but in a couple of minutes or seconds when there were hundreds of billions of short positions in the Swiss Franc. All of these things have never existed simultaneously, not only in the United States, but worldwide. All the central banks are doing it. We re reaching the point where it s unsustainable, things are going to give and break, but the good thing is it s going to be more a disaster in the financial markets in my view, less some kind of Great Depression impact on Main Street. It will be difficult on Main Street, but Wall Street is in the gun sites of this disaster coming.politics
Your task is to classify the provided input as real or fake news. Label 0 is meant for fake news, Label 1 is for real news. TEXT: buckle up was just a show the real financial crisis is coming fake economy sustain long the fed control exclaim david stockman perhaps best known architecting reagan economic turnaround known morning america adding people want hear reality truth facing well one scarlet moments i think history also need recognize uncharted waters no central bank ever printed much money long kept interest rates zero fueled much speculation not stockmanfor six years world operated complete delusion central banks somehow fixed arguments claiming defied common sense a grader would tell solve debt problem issuing debt if chart problem before way things better after added another trillion debt us anyone functioning brain could tell bunch academics experience none ever started business created single job save awful lot money stake believing lies so media banks politicians happy promote indeed one could easily argue nearly wealth power held top economy stem little surprise one would admit facts fed central banks clue fix problem actually almost incentive the real problem financial system bond bubble in crisis hit trillion it since grown the derivatives market uses bond bubble collateral trillion many large multinational corporations sovereign governments even municipalities used derivatives fake earnings hide debt no one knows degree case given corporate cos admitted faking earnings past likely significant corporations today leveraged as stanley druckenmiller noted recently corporate bonds trillion today trillion amount equal nearly us the central banks leveraged levels greater equal leyman brothers improved the fed leveraged the ecb leveraged leyman brothers leveraged the central banks idea exit strategies fed minutes released show janet ellen worried exit fed balance sheet trillion back today heading crisis exponentially worse the global central banks literally bet financial system theories work they all done set stage even worse crisis entire countries go situation clear crisis warm the next crisis the real crisis the crisis central banking fail via zero hedgedavid stockman well one scarlet moments i think history also need recognize uncharted waters no central bank ever printed much money long kept interest rates zero fueled much speculation not worldwide not normal stocks bonds whole shale boom instance united states massively funded cheap debt based oil prices sustainable coming unbound we never deficits ten percent gdp back back even still four five percent four five years runaway budget population getting older older people retiring every day nothing done social security it fostering time bomb sure explode know sustainable we wall street addicted pure overnight gambling trading speculation ultra short run driven robot traders ft money like never it unstable that see things happen like overnight percent gain swiss franc swiss national bank pulled percent overnight overnight couple minutes seconds hundreds billions short positions swiss franc all things never existed simultaneously united states worldwide all central banks we reaching point unsustainable things going give break good thing going disaster financial markets view less kind great depression impact main street it difficult main street wall street gun sites disaster