This obligatory assumption that you can use people up indefinitely is about to backfire on a cataclysmic scale.
From the world's perspective, Trumptopia is over. Like it never even happened. As if it were all just a continuous stream of lies and bullshit told by an arrogant circus clown, void of any semblance of humanity.
At the December 2018 lows, global stock market losses reached $16.7 trillion, which is more than the combined balance sheets of the world's three largest central banks. And yet a mere down payment on what is owed.
This is exactly the scenario I predicted when I wrote my treatise on what comes next - this society is wandering in the desert of asinine ideas. A collapsed Globalized supernova now emitting failed ideas like a dwarf star emits radiation.
Were it not for the fatal combination of arrogance and amnesia, this could go on seemingly forever. Which is where this gets interesting. Because it was three years ago this week when global markets bottomed and began their two year rally. Deja vu of now, China was slowing, the Yuan was imploding, oil was crashing, global markets were panicking. Therefore, surreptitiously, global central banks conjured up the "Shanghai Accord" to weaken the dollar and otherwise ease liquidity conditions.
Global markets (including U.S.) bottomed three years ago this week:
The difference this time around is that U.S. policy-makers are in no mood to "bail-out" China. Quite the opposite, they are doing everything possible to weaken China and put that country in a compromised negotiating position for the trade war. Which is why this time there is no Shanghai Accord.
Which means that speculators front-ran the muscle memory of that era without bothering to confirm whether or not central banks have their back. Apart from the PBOC none of the other central banks are onboard this time around. Quite the opposite, the Fed and ECB are actively reducing liquidity. Meanwhile, the Bank of Japan has inconveniently bought up the entire Japanese bond market. Making further liquidity expansion "problematic".
All of which makes this period the exact opposite, yet the exact same, for a society of stoned drug addicts lied to so much they are no longer capable of telling the difference between fact and fiction. Faux News and real news.
Hence I call this the Shanghai Surprise. Compliments of the exceptional de-coupling delusion. Which never EVER fails to surprise the Idiocracy.
Of course, on an overnight basis.
Since most Asian markets were closed this past week we have to look to Australia's market as a proxy: