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.
Wednesday, July 13, 2016
The Last Bubble
In this cycle multinational corporations ate the seed corn to their PonziConomy... Recession stocks are screaming recession. I wonder why... Consumer discretionary / Consumer staples:
In each cycle, yields continue to fall during the deflationary phase after the end of the recession. Then they trough and begin rising towards the "inflationary" peak of the cycle. When they roll over again, the cycle ends:
2 year Treasury yield (black) with ten year (red):
Likewise, when capacity utilization (blue) and the two year yield are both falling, then recession is not far away...