Sunday, June 14, 2015

Worst Case Scenario: Global Wreckovery Stalling At Max Stimulus

BBG: June 10, 2015
World Bank Joins IMF in Urging U.S. to "Postpone" Rate Rise, Until Never.
"Global GDP Growth forecast lowered to 2.8% for 2015"

Decade-low GDP growth at Century-low interest rates, with U.S. stocks at an all time high.

Today's Econo-dunces don't know how to create an economy, but they know how to oversee the destruction of one. First, "The Maestro", Greenspan, gave us 1% interest rates, subprime, and Lehman: A tree, a rope, and a horse. But since literally nothing was learned from that clusterfuck, today's copy cat psychopaths had free rein to lower interest rates to 0% for six years and then squander asinine amounts of borrowed money propping up the casino while the real economy was liquidated for special dividends and stock buybacks. No surprise, it's now all falling apart in real-time despite policy accommodation still wide open at unprecedented levels. All while stoned zombies trade revenueless IPOs back and forth.

Global Dow with Global GDP Growth Rate (red line):
GDP Data from IMF database
Global growth was twice as strong (5.6%) at the peak in 2007 as it is now (2.8%). 

Commodities w/Global GDP growth
Commodities are at 2009 post-Lehman levels. Another year of 0% interest rates should fix that...

GDP is stalling despite global interest rates already at multi-century lows. At the peak in 2007, interest rates were at decade highs.

Business Insider May 7, 2015
Global Interest Rates Have Only Been This Low Three Times Since 1522

Into the abyss
Treasuries are always right. Prechter, not so much...

Stunned Etraders, left holding trillions in worthless stocks, couldn't believe they had been ass raped all over again by the serial ass rapists on Wall Street.


Unprecedented stimulus, interest rates at century lows, decade-low global growth (ex. 2009), U.S. stocks at an all time high. A stoned zombie populace. What could go wrong?

All of the King's horses and all of the King's men, couldn't put Humpty together again.

And the streets burned like it was the Fourth of July.