Ponzi World (Over 3 Billion NOT Served)

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, June 30, 2015

RISK OFF: China's "Imagined Reality" Is Over

ZH: June 30, 2015

Chinese leveraged stock funds down 77% in two weeks

The unlevered Chinese small cap index is down 35% in two weeks (with S&P in background):

ZH: Dec. 31, 2014
Hugh Hendry Embraces Central Planning (For Billunaires)

"There are times when an investor has no choice but to behave as though he believes in things that don't necessarily exist"

"In the long run we will come to rue the central bank actions of today"

"China is set to record its weakest growth in GDP in 25 years. Yet it seems to have entered a bull market and may be where we deploy much more of our risk capital next year. That's because the recent exuberant run up in onshore Chinese equities seems to me to amply demonstrate the power of imagined realities."

The next Imagined Reality on deck to Implode...
Shanghai Composite with S&P