Globalization was sold as an attempt to create record prosperity. Instead it created record poverty. In attempting to monetize poverty, Econo-dunces bankrupted themselves via their own impossible model. Shit happens, man...
Emerging Market Stocks:
Global Macro: Approaching singularity
Canadian dollar, All Commodities, U.S. deflation (TIP:TENZ), Russian stocks, EM Currencies
2012: Scientific American:
"The average American will drain as many resources as 35 natives of India and consume 53 times more goods and services than someone from China..With less than 5 percent of world population, the U.S. uses one-third of the world’s paper, a quarter of the world’s oil, 23 percent of the coal, 27 percent of the aluminum, and 19 percent of the copper."
The odds that the consumption-oriented lifestyle would scale across 7.4 billion people, was always ZERO, as indicated by third grade math.
Right now due to the separation of supply and demand via Globalization, the developing world has too much investment with no consumption. Whereas the developed world has too much consumption with no investment. All of which amounts to rampant deflation. When wage deflation exceeds price deflation that equals de facto 'poverty'. Human history's largest supply glut.
When confronted with global economic deflation, both of the predominant Post-WWII Macroeconomic models failed because they were trying to achieve the mythical "free lunch":
1935-1980: Keynesian Demand Side Economics
- "Demand creates Supply"
- End result: stagflation aka. too much money chasing too few goods
1980-2015: Supply-Side-Voodoo-Trickle-Down-Ponzi-Reaganomics
- "Supply creates Demand"
- U.S. Debt grows 9%/year compounded for 35 years
- End result: too little money chasing too many goods
aka. rampant poverty
The financial impacts of an unsustainable model are always felt first. aka. overnight via the S&P futures. The economic impacts of a failed model are then subsequently revealed as everyone realizes at the same time that the separation of supply and demand has created supply with no demand, temporarily brokered with Ponzi debt.
"There, but for the Grace of God, Go I"
