As we watch the US banking system totter and begin to collapse, like the proverbial Jenga stack, we need to consider the implications this has for the global financial system and its supply chains.
I’ll begin with the stellar work of David Korowicz published on
Overview
“This study considers the relationship between a global systemic banking, monetary and solvency crisis and its implications for the real-time flow of goods and services in the globalised economy. It outlines how contagion in the financial system could set off semi-autonomous contagion in supply-chains globally, even where buyers and sellers are linked by solvency, sound money and bank intermediation. The cross-contagion between the financial system and trade/production networks is mutually reinforcing.”
“It is argued that in order to understand systemic risk in the globalised economy, account must be taken of how growing complexity (interconnectedness, interdependence and the speed of processes), the de-localisation of production and concentration within key pillars of the globalised economy have magnified global vulnerability and opened up the possibility of a rapid and large-scale collapse. ‘Collapse’ in this sense means the irreversible loss of socio-economic complexity which fundamentally transforms the nature of the economy. These crucial issues have not been recognised by policy-makers nor are they reflected in economic thinking or modelling.” Financial system supply-chain cross contagion – a study in global systemic collapse
“Last year, vials of the decades-old chemotherapy drug fludarabine could be purchased for a wholesale price of around $110. Not so much anymore.”
“This year, one company—Areva Pharmaceuticals—has jacked the figure up to $2,736, Stat News reports.”
“What’s going on with the aging chemotherapy used to prepare patients for cancer treatment?
It all comes down to supply chain problems triggering shortages that affect the only other two suppliers of the drug in the United States—Teva and Fresenius Kabi.” Drug shortages aren’t going away any time soon, supply chain expert warns
The link above courtesy of David Ferraro author of the The Collapse Chronicle
In the video discussion below, recorded seven years ago between Professor Guy McPherson and myself we discuss the tenuous state of the supply chain.
Edge of Extinction: Disruption of Supply Chain
“By 2027 the world could be facing a 214 trillion calorie deficit, says Sara Menker, founder and chief executive of Gro Intelligence, an agricultural data technology company.”
Published in 2018, do the math: We Have Five Years To Save Ourselves From Climate Change, Harvard Scientist Says”
So which goes first? The Supply Chain or the Food?
When not if Industrial Civilisation collapses we lose the “Aerosol Masking Effect” as pointed out by one of my readers in the comments section below, hence this edit on March 15th.
“The impact of the aerosol masking effect has been greatly underestimated, as pointed out in an 8 February 2019 article in Science. As indicated by the lead author of this paper on 25 January 2019: “Global efforts to improve air quality by developing cleaner fuels and burning less coal could end up harming our planet by reducing the number of aerosols in the atmosphere, and by doing so, diminishing aerosols’ cooling ability to offset global warming.”
From the post: “Global Dimming keeping the planet habitable”
I'm an anti-imperialist, environmental activist and blue ocean sailor, who is passionate about the earth and all it's inhabitants without favour. Brace for imminent impact as we bare witness to the non-linear unraveling of the biosphere and habitability disappearing for most if not all complex life on the only habitable planet we know of. To quote President Niinistö in North Russia: ‘If We Lose the Arctic, We Lose the World’. Folks we have lost the Arctic.
Kevin Hester 
How long before we see contagion?
Below via Pye Ian, esq.
(22) Digital Asset Investor on X: “Bitcoin was deployed out of the Financial Crisis strategically. 1. Financial Crisis 2. Government takes Bitcoin Off The Shelf 3.Spend a decade making it look like the government wasn’t behind it. 4.Implement regulations 5.Tokenize all markets making them liquid to prevent another https://t.co/CE9VJq2aJi” / X
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A fascinating analysis of the chaotic Greenback.
The Dollar Reset Has Begun: U.S. Is Quietly Engineering Its Own Devaluation | Hibbard & Schectman
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Brace for impact”:
A Once in a Lifetime Crash Is About to Hit — WORSE Than 2008 | wolff responds
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From the 17m mark a woman discusses people not getting payments for their anti-psychotic medication.
The crazies will get crazier
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Danielle brings up the issue of Contagion in the banking system, it’s a clear and present danger.
Unemployment ‘Exhaustion’: 40% Have ‘Literally Nothing’ Left | DiMartino Booth
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“You can print money, but you can’t print trust”
This week the EU considered stealing $300billion of Russian funds, had they done so it would have extinguished any trust in the international bond markets.
They backed up from the precipice but it un-nerved reserve bankers worldwide, if they can steal Russia’s money, they can steal anyone’s!
The Great Liquidation: Why China Is Abandoning US Debt “And It’s Not A Bluff”
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The Jenga stack becomes more unstable by the day, and we know how all games of Jenga end.
BANKING COLLAPSE: Royal Bank Severs US Ties, Wall Street CRASHES in 48 Hours | George Will
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“CEO of Bank of America Brian Moynihan is warning there will be a six trillion dollar run on the banks that will spur a massive liquidity crisis even too big for the Fed to fix that could collapse the entire banking system.”
BofA Warns: $6 TRILLION BANK RUN IMMINENT!
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Peter and Glenn make the point that the unsustainable can’t be propped up indefinitely!
Peter Schiff: Economic Meltdown & Dollar Collapse
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More great work from Doug Macgregor on our fragile supply chains.
Doug is one of the old school North American military men who understand that the USA is no longer the global hegemon (Was it ever?) and behaving like it still is, is potentially fatal!
Doug makes the point that “De-Dollarization is unstoppable”, this represents an existential threat to the USA considering the interest only on the debt is over $1trillion/annum.
In a ‘normal world’ a government in this level of fiscal debt would consolidate and rationalize expenditure, in the world of DJT and the Military Industrial Congressional Complex, they double down and continue to attempt to bomb their way out of debt.
The Peak Oil Wars are here and are never, ever going away.
The moribund military of the Empire of Chaos has been left behind by indigenous revolutionaries from Iran and Yemen, using a hybrid of modern drone warfare and traditional Soviet wars of attrition.
Between the Ukraine conflict and this folly in West Asia, the resistance to global hegemony has drained the empires conventional weapons.
That main beneficiary of this aspect of the conflict is China.
As the IRGC took out the Apartheid states radar systems, it has forced the empire to move a system from East Asia to the conflict zone, delaying what the late great John Pilger called “The Coming War on China”.
Let’s not lose sight of the fact that all this warmongering and its attendant emissions make an already dire climate predicament much worse.
Financialization and de-industrialization has hollowed out the hegemon’s economy, leaving it spectacularly vulnerable!
We face a morally and financially bankrupt nuclear armed, waning hegemon controlled by psychopaths that believe in “The Rapture.’
What a time to be alive.
Asalamu alaikum.
(118) The Global Supply Chain Crisis And The Return To Resource Sovereignty: Col. Douglas Macgregor – YouTube
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Yeah, it definitely raises the blood pressure a bit, doesn’t it? What do you think is going to happen when the psychopaths realize there ain’t no such thing as their ‘rapture’ going to happen, that it is all make-believe? Will the extreme right-wing fundies/evangelicals blow a gasket and do what Jim Jones’ hundreds of followers did and off themselves with poison Kool-Aide?
Or are they steeped in so much gratuitous violence that they will start pogroms all across this country, targeting anybody but themselves to lay the blame on? Sacrifices to their god so to speak, and it has always been a bloodthirsty god as far as I can tell…
Do something fun every day until you can’t I guess!
sealintheSelkirks
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“The AI bubble is now a staggering 17 times the size of the infamous dot-com bubble, a first-of-its-kind run on tech stocks tied to investor hype over the internet.”
The global economy is much more fragile than it was when the ‘Dotcom’ bubble burst, the USA’s debt levels are stratospherically higher, with war being waged worldwide by the primary debtor.
According to an article on Fortune magazine: “U.S. debt suddenly draws weaker demand as $10 trillion must be rolled over this year amid Iran war. ‘The bond market remains undefeated.’’
No one wants to buy a garbage fiat currency, dripping in an unknown level of debt
Contemporaneous with this Ponzi scheme of unpayable debt, DJT’s cavalier, racist, bigoted and murderous attacks on Islam have thrown the global supply chains into chaos.
Most of the major market meltdowns historically happen in the September/October period.
Will the global economy struggle through the supply chain bottle neck? I have my doubts when the only industry truly thriving atm is the armaments industry.
Contagion in the global banking sector is a clear and present danger.
One final quote from George Carlin: “The USA is an oil company with an army”.
AI Bubble Far Exceeds 2008 Subprime Mortgage Bubble
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Another master class from ‘B’, The Honest Sorcerer, summing up the imminent supply chain breakdowns, triggered by the relentless attacks on Islam in West Asia, where the feedstock from mammoth extraction and mining operations fuel, lubricate and maintain this set of living arrangements, which becomes more unstable with each bomb dropped, mostly on civilians in the region. The best kept secret in Aotearoa New Zealand is the price the Te Wai Point Aluminum smelter pays for its electricity. When David Lange was the Prime Minister of NZ, I asked him how much they paid per KW for electricity, he replied: “Kev, you know I can’t answer that question, we’re contractually forbidden from disclosing it.” My guess is they pay less than half as much as the as the average Kiwi, maybe as little as 10%. When Kiwi’s finally finds out, there will be ‘hell to pay,’ that an Australian corporation is paying a fraction of mum and dads and struggling Kiwi companies. That one plant consumes about 20% of the countries generated electricity, yet another offshore corporate subsidy. Kiwi’s and our environment, are subsidizing an Australian corporations CO2 and other pollutants, all because of some backroom deal that no government, of whatever stripe will face. We are owned, lock, stock and millions of smoking barrels.
There Is No “Next Economy” – The Honest Sorcerer
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