You can bitch about the FED printing money all you want to, but you can’t overlook the fact that monetary policy is, and has been for some time, the only thing stimulating the economy enough so that it can be called anemic.
However, following the crack in Japanese bonds, my friend the Lord of the Dark Matter said, “I would expect in the coming days (and given the violence of this selloff, it is days, not weeks) that central bankers will reaffirm their commitment to liquidity and that they are ‘all in.’ They will make their intentions both clear and unambiguous. If the markets don’t stabilize after that, then it is ‘1987 time’ for equities.”
I totally agree. Eventually, even the really slow learners should be able to understand that the central banks are trapped and that their only choice is between depression and easy money.
via The Big Picture
The irony shouldn’t be lost on anyone.
America is like the fellow that has a tool box full of hammers, pliers, wrenches, ratchets, clamps and screw drivers, but can only see nails. It doesn’t matter if he’s looking at screws, nuts, bolts rivets or slabs of concrete. The collapse of the conservative economic model is complete, yet no one wishes to admit it.
By buying companies, exploiting natural resources, building infrastructure and giving loans all over the world, China is pursuing a soft but unstoppable form of economic domination. Beijing’s essentially unlimited financial resources allow the country to be a game-changing force in both the developed and developing world, one that threatens to obliterate the competitive edge of Western firms, kill jobs in Europe and America and blunt criticism of human rights abuses in China.
We of course are currently mired in the debate over the right of a free press to remain irrelevant.