Friday, April 24, 2015

Globalization Has Almost Finished Equalizing Incomes

There's one more step.

CNBC: April 24, 2015
The U.S. is the only major economy that's "growing"
"It could be called the Great American Dichotomy: As the rest of the world struggles, the American economy continues to slowly grow. But some traders say that investors are making a big mistake if they think this divergence will continue forever."

The best illusion the Grandkids' money can buy:

U.S. GDP adjusted for Federal Debt:

Total GDP - Total Debt:

A mega-lie, only a corrupt old age home would believe:
Year over year change: We've never seen this before: STILL borrowing GDP "growth" six years into pseudo-recovery ...And deficits are forecast to rise from this point forward :

To recap, the tallest midget in the circus is borrowing its entire year over year increase in GDP, and then some. The rest of the world is worse off. Europe overall borrows 2% of GDP for a 0% growth rate.

From BRICs to BRICKS: The failure of Globalization 
Aside from India, China, Brazil and Russia are all hitting the BRIC wall of reality

The weakest link: 
Submerging Market rising wedge with Oil: The next leg down breaks the trend line:

Only Ponzi debt accumulation forestalls Third World convergence.