Sunday, September 6, 2015

Monetary Policy: Smoke And Mirrors. EPIC FAIL

Post-2008, corrupt Central Banksters on behalf of billunaires and Wall Street, squandered all of their available liquidity to prop up lenders, by giving borrowers more debt.

This "strategy" gave corporations the green light to carry out Shock Doctrine on an unprecedented scale, forklifting the economy to Asia and flooding the planet with Third World deflation. 

35 years of failed trade policy papered over with ever more Fiscal and Monetary "stimulus", while dumbfucks tells us how "Keynesian" policy doesn't work.

Keynes never predicted the Self-Terminating Idiocracy:

Now, Developed economies are drowning in deflation. Emerging Markets are debasing their currencies. Global interest rates are at a 500 year low. The four major central banks are OUT OF AMMO. Global risk assets have ALL peaked. Clueless speculators are ALL IN.

China: Collapse
Japan: Recession
Europe: Negative interest rates
U.S.: Six years at 0% amid oblivious denial

Still, blind faith in the Wizards Of Oz is unquestioned:
Barron's Sept. 5, 2015
"There is no dissent in the group on the market’s direction: upward..."

BI May 7, 2015
Global interest rates are at 500 year lows:

Bernankenstein's asinine idea of inflating billionaire wealth so that the bread crumbs falling on the heads of the indolent masses would magically "fix" the economy, was only a fucking Jedi Mind Trick for stunned dunces, while corporations took Shock Doctrine to level '11'.

The score card:

Economic growth at 25 year low and falling fast
Obliterated stock market
Ghost cities
Collapsing Real Estate

Bank of Japan: FAIL
25 year deflation
Economy already in recession
Stock market currently at 1986 levels
Yen Carry trade unwinding re: 1997

Record inequality
25% unemployment in Spain and Greece
Negative interest rates: Paying people to borrow
Today's ECB announcement of more "stimulus" had a shelf life measured in minutes. All given back by the end of the day

Italian stocks:

U.S. Fed: FAIL
Over six years at 0%
Capacity utilization at decades' low
Lowest employment population rate since 1978
Highest profits ever (% gdp)
Lowest wages (% gdp)
Middle class wealth 25 year low
Median household income 20 year low
Doubled U.S. debt in 8 years
Printed $4 trillion

U.S. Capacity Utilization with short-term interest rates
78% capacity utilization used to be known as a deep recession...

History's largest charade. Nothing more, nothing less.

Now the infants have turned to colouring books:

"Move over family life, it's skipping..."