Saturday, July 9, 2016

The Consumption Oriented Lifestyle Is Dead On Arrival

That's what the last seven years was for - cannibalizing the status quo, for fun and profit...

Most people are already technically bankrupt, they just haven't turned in the keys. They think they're owners, but they're really just renters. The smartest people after the 2007 Housing Bust were those who camped out in their pre-foreclosed homes without paying the mortgage. Banks didn't want to write down all of the mortgages at the same time, because then they would be insolvent, so millions of people lived rent free for years. Laws vary from region to region on bank recourse, however stay tuned for future events. If you have nothing to give, they have nothing to get.

D.O.A. Visualized:

Meanwhile, we know helicopter money is coming. Helicopter money means handing out printed money to everyone. Like a monthly allowance. Of course it leads to inevitable hyperinflation. In other words it's the last phase of a debt implosion cycle because it inflates away the debt. Japan is already considering Heli-money and parts of Europe as well. It destroys financial assets, so it will only become ubiquitous after the crash. When Japanese Bonds rise 2% due to inflationary expectations, the Nikkei will go to zero. Bond losses will be measured in the trillions. The same applies here in the U.S., a 4% yield on the 10 year would obliterate stocks.  

Nevertheless, the people at the bottom of this globalized ponzi scheme already know how to live on next to nothing. And the Millenials don't want to own anything. They are the sharing generation. Uber, AirBnb these are all perfect Millenial sharing services. And more will come.

In other words most people have already adapted to the fact that "less is more". Which means that the consumption oriented lifestyle is on final notice.

Charles Hugh Smith wrote recently that we have no recourse over our Corporate overlords. We can't overthrow their global dominion, because they live in an abstract world.

I beg to differ. It's in the latest stages of collapse, and the fact that so few people see it imploding is what will make this last stage so spectacular...

The bull has been fatally gored. Only the bullshit remains:

"Keep calm and buy the S&P 500"
The S&P Earnings yield is heading for 0%...