The Terminal Idiocracy Is Caught In The Poverty Trap

I'm sure Camacho will save them, with advice from Goldman Sachs...

The concept of a poverty trap is foreign to the average jackass EconoDunce. They've proven beyond all doubt that they know how to create poverty, just not how to fix it. My new online "book" is going to discuss in less profane terms how we got here and how to get out of this human disaster, but I am going to wait until the EconoDunces all shit a massive brick first, and otherwise lose what little credibility they have left. The nuclear option of printing currency is necessary and inevitable - after the crash - when everyone is on the "same page" finally. Aside from facilitating mass bankruptcy, monetary policy has been a colossal failure...

Poverty is the SOLE driver of the global economy right now. Everything else is sugar-coated bullshit, fed to a stoned Idiocracy incapable of handling the truth in any way shape or form...

Globalization fully exposed the developed world to Pandora's box of Third World poverty. Today's thoroughly stunted policy-makers have lost all control over the global economy. They only know how to create poverty not how to solve it. Everything they do is making the problem worse. Widespread belief in *free* trade has buried the zombies in debt.  

After the DotCom bubble and 9/11, the U.S. fell into recession and Greenspan took extraordinary measures to reflate the economy. Because what he was really fighting was China's ascension to the WTO and mass corporate outsourcing.

Subsequently, the capacity gap has grown inexorably and U.S. monetary policy has been rendered totally inert.

U.S. CPI (red) with Fed rate (black). Low interest rates reflate the economy? Not when the 'Conomy is in China they don't... 

Likewise, for the rest of the world, Wizard-of-Oz like policy-makers massaged data and headlines to create the fake perception that competitive debasement was creating wealth. When in fact it has been doing the exact opposite. 

Debt has now been conflated as "wealth". 

On a nominal basis, Canada and the UK's stock markets were some of the top performers of 2016. However, both countries saw massive currency devaluations. 

Here we see Canada's GDP and stock market denominated in U.S. dollars. GDP is where it was 7 years ago and stocks are where they were 10 years ago...

UK stocks in $USD:

The Canadian dollar is a proxy for global commodity demand which is why it tracks oil 1:1 except in late 2008. And now...

When delusion was/is at its highest: