Thursday, July 14, 2016

Monetary Policy: Globalized Euthanasia

Under Globalization, the return on labour is negative. And now the return on capital is negative as well. Liquidating the status quo is the main line of business...

If you were born on third base and saw all of "this" going away, what do you do? Anything. They've already created two devastating bubbles and dissolved the middle class to make the quarter, so there is the inkling that they are next. Central Banks are giving ever-increasing dosages to a dying heroin addict. They're taking away the "pain" while the global economy gets monetized for special dividends.

Failure speaks for itself:
Monetary policy can't "fix" the pseudo-economy, it can only paper over the liquidation of the status quo...

This is Europe as of yesterday's close
The S&P is going into manic melt-up mode. End game for circle jerk-o-nomics...

Globalization is insolvent. It has supply and no demand:

growing protectionism, reduced foreign direct investment and other signs of fragmentation in the global trading system that together risk making 2016 the fifth-straight year that international commerce lags behind global growth.

The WTO recently said that G-20 economies, in the half year to mid-May, had applied 145 new trade-restrictive measures, a record average of more than 20 a month, with many in metals and chemicals.

Negative return on capital visualized. I mean "recovery":