Wolf Richter is one of the most astute observers of our bubble-ridden/central bank perverted financial scene around. His blog called Testosterone Pit is a daily “must read” and more than that: its posts are succinct, spritely, fact-based, conclusionary and cover the global map with special insight on those debt ridden houses of cards on the other side of the Pacific—-Japan and China.
Wolf today issued a timely warning. Next week we will be told by Wall Street stock peddlers that what are just having a healthy correction and that it will soon be time to “buy the dip”. Don’t believe them. We are perched precariously at the top of one of the greatest financial bubbles ever because it is global—-the handiwork of world-wide central bank driven credit expansion and drastic interest rate repression.
Just recall some of the numbers. At the turn of the century, the US had about $25 trillion of credit market debt outstanding; now it is pushing $60 trillion. About 14 years ago, China had debt of $1 trillion; now its nearly $25 trillion. And similar credit explosions occurred in much of the rest of the world. It was all central bank enabled, and it caused world wide investment booms and asset inflations which defy every law of sound money and economics, and which cannot be sustained indefinitely.
More
DelMarVa's Premier Source for News, Opinion, Analysis, and Human Interest Contact Publisher Joe Albero at alberobutzo@wmconnect.com or 410-430-5349
I hear a sound in the distance; it's not too far away. It's a distinctive POP sound!
ReplyDeleteANYONE who has been paying attention knows this illusion of "recovery" is a scam. The U.S. is printing 80 BILLION dollars a MONTH --- every month! -- of worthless paper. The U.S secretly loans TRILLIONS of dollars to international banks (who use the money to make their balance sheets look great, when they are actually close to insolvency) who then transfer that money back and forth to make EACH OTHER look like they are hotter than the rolling dice. Stock markets (national and international) have been openly manipulated to spur "investment", only to tell people later that they have lost everything (again) to a "correction".
ReplyDeleteI told you before that these are merely "tricks" to present a facade of prosperity. Underneath that facade is a snake pit of debt, false "growth", and balance sheets that would be best used as toilet paper. YOUR stock is doing fabulous? YOUR IRA is really looking good? Not for long.
Keep cheering.