THE US BACK IN RECESSION & China’s devaluation are ruining
global Econ
NEOLIBERALISM IS OBSOLETE. No way to hid it ..
SANDERS is right: we need to reinstall-upgraded Glass-Stegall
Act
While the world
continues to focus on the BREXIT, two other, much larger problems are emerging.
The first is that the US is back in recession. Labor
Market Conditions, Industrial Production, the Dallas Fed Workweek, Commercial
and Industrial Loan Delinquencies, Corporate Debt Levels, and Inventory
Accumulation are ALL in recessionary territory.
Because it is an
election year, there is an even greater need to maintain the narrative than
usual. So don’t expect an official announcement of this recession until
sometime in earl to mid 2017
Regardless of when
the elites announce it, the fact remains, the US is in
recession. , Seven years of ZIRP and $3.5 trillion in QE by the Fed
generated the weakest recovery in seven years. And the Fed is now out of any
effective ammo (the benefits of a rate cut would be transitory at best).
In short, the academically based theories of the Fed’s
Presidents have been proven to be bunk. The Fed cannot stop the business
cycles. All it has done is create a bubble in every asset class under the sun.
And this time around, stocks will be crashing to new lows below the March 2008
levels of 666 on the S&P 500.
The second big issue is China’s hard landing/ devaluation.
As the US moves into recession/ deflation the US Dollar will surge, putting
increased pressure on the Yuan. China has devalued it steadily since 2015, but
it’s still got 30%-40% to go.
See big image at : http://www.zerohedge.com/sites/default/files/images/user20289/imageroot/2016/06/12/yuan.png
With China already in
a hard landing (real GDP growth is 3%-4% at best), China is in a position to
stage a one off massive devaluation and blame the currency turmoil on the
BREXIT.
In short, the two largest economies in the world are
contracting. One is entering a currency Crisis (China). The other’s currency is
part of a $9 trillion carry trade (the US Dollar).
This is a ticking time bomb waiting to go off. No less
than the Bond King Bill Gross has stated that we're heading for a massive
crisis. Investing legends Carl Icahn, George Soros, and Stanley Druckenmiller
are all taking out MASSIVE trades to profit from a market collapse.
Say what you will about any of these individuals, ALL of them are masters of the financial markets. And ALL of
them are preparing for a CRASH.
….
Source:
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