The globalized economy is a colossal Ponzi Scheme in which the vast majority survive on the bread crumbs falling off the table. The possibility of 7 billion people achieving a consumption-oriented lifestyle is zero, so the World Bank conveniently set the poverty line at $1.25/day to legalize global slavery. As long as someone else's children are doing the suffering, it's "all good". Post-2008, this illusion was extended merely by plundering all future generations.
Tuesday, May 21, 2013
The Largest Asset Crash in History
Parabolas and markets don't mix:
Wilshire 5000 Total Market Index
In order to generate the largest market crash in human history, the following steps must be taken...
1) Add maximum amount of leverage and liquidity - Check
> $9 trillion+ of global Central Bank dopium and 500+ interest rate reductions - so far...
2) Lower interest rates to 0% to incentivize maximum risk taking - Check
3) Levitate all asset classes giving no opportunity for value-based diversification - Check
4) Lower volatility to minimum, making hedging wholly unprofitable - Check