Watching Rome Collapse in Real Time

The New Roman Empire Is Globalization and its collapse is well underway. The foundations are being destroyed as I write. 

Unfortunately, this isn't a fucking mystery novel. We live in the dumbest and most cynical society in human history, so the signs of advanced collapse are all pervasive and yet universally ignored by the corporatized media. 

Therefore at this late stage, all we are waiting for now is the acceleration phase, which can come at any moment or for any reason...

Globalization of course includes everyone this "side" of the Taliban. So when it collapses, the Taliban and like-minded barbarians will breach the frontiers of globalization starting of course in the Middle East which is globalization's primary energy source. 

Bush's "war on terra" was always a war of economic attrition and in that war, the Pentagon is the WORST possible enemy.  The U.S. should have given the Pentagon to the Taliban back in 2001 and let it bankrupt them instead. 

This was a key week as Defense Secretary announced that the U.S. military will be significantly scaled back to pre-WWII levels. What does that mean? Biplanes?

By no coincidence, Obama just ordered preparation for complete withdrawal from Afghanistan (finally). It only took 13 years - the longest military engagement in U.S. history, by far. And no surprise, that inevitable withdrawal will take Afghanistan back to civil war. 

Collapse In Broad Daylight

Getting back to the globalization collapse theme, there is nothing really to debate on this subject. For a society with its head up its ass, it will be hard to see collapse coming. The overwhelming signs of collapse have merely been obfuscated by yet the latest Fed bubble intended to obscure what is going on behind the scenes of the real global economy. 

Global Trade Growth Has Stalled

I recently showed that for the first time since WWII trade growth has stalled as a percent of GDP. 

From BRIC to BRICK

Connect the dots of stalling of trade and the fact that since 2007, the BRIC (Brazil, Russia, India, China) nations have been underperforming the developed world economies, which itself is hard to believe - like Rob Ford and Chris Christie racing to the buffet line, it's hard to declare a "winner".

Here is Brazil's stock market AND the Canadian Dollar both star performers of the global economy

Can you tell which is which? Hint: It doesn't matter

The China Syndrome

Everyone knows that China's economy is a massive bubble. It's common knowledge. Still, watch how surprised everyone will act when it implodes. Holy shit, I never saw that coming !!!

Google Trends Search Term: "China Bubble"

This has been trending for a while...

Vancouver (B.C.) real estate. 

So many wealthy Chinese are fleeing China that they've driven British Columbia home prices up 165% in 13 years

Data from: http://www.housepriceindex.ca/

The Land of the Setting Sun

The Japanese started their own collapse roughly twenty years ago. They've been printing their pseudo-economy for two decades now. Recently they just printed a brand new rally for the Nikkei stock market. Here is what it looks like on a longer-term perspective. Pathetic:

Here in the U.S. the lies continue unabated between episodes of the Kardashians. As long as the Dow keeps rising, well, you know...

The Biggest Lie Ever Sold

Dow adjusted for inflation w/labor participation rate

Bankrupting the Grandkids

Total U.S. Debt

Nothing was learned in 2008. Not one fucking thing...

Liquidity Trap

Forward Deflation Expectations (as imputed from Treasury yields)

The Fed is tapering for political reasons not because the economy is improving. They finally got the message that inflating the stock market while the real economy collapses, is not a great idea.

Monetary policy, which was enabled by globalization's disinflationary pressures for 30+ years, can no longer keep up. Debts have grown too large and now the economy is in a liquidity trap. 

Globalization widens the output gap (Supply - Demand) with each passing day. If it's wide now, stay tuned for future events.

Deflation: One Chart to Rule Them All:

Let's not leave Europe out of this

Where to begin...how about in Spain where their debt is growing at 21% per year and unemployment is 27%.

And yet, their 10 year bonds were magically bought down to multi-year low interest rates (yields), by carry traders borrowing greenbacks at 0%, leveraged 10x:

This will work until it doesn't:

Or why not just check in with the Euro currency itself which is in a massive downtrend:

Euro Deflating:

Still, despite all of the above, when it all collapses with extreme dislocation, they'll say:

 "#!@& - no one saw that coming !!!"