Ponzi World (Over 3 Billion NOT Served)

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.

Monday, February 2, 2015

1929 Deja Vu: "No One Saw It Coming"

Irving Fisher, 1929:

"Stocks have reached a permanently high plateau"

Surviving Extreme Deflation

"Way back in 1929, no one seemed to notice that commodities had peaked several years earlier. They also didn't pay too much attention to the fact that bonds had peaked a year earlier as well. Stocks continued ploughing ahead on their own as if they could never go down again."

Commodities:

Peaked in 2007, lower high in 2011, lower high in 2014:

Credit Spreads (the difference between high yield rates and Treasuries):

w/Correlation vis-a-vis stocks (bottom pane)

i.e. Rolled over last January

The Dow Today:

We're not "owed" any more warning