Monday, July 11, 2016

The Great Market Tide Has Now 
Shifted To Risk-Off Assets
"Around the world, the message being sent to the average citizen is 'the lifestyle you ordered is out of stock'. The promises of rising consumption, steady employment, secure pensions and guaranteed healthcare are running aground on the unwelcome reality that promises made decades ago can no longer be kept in a world of limited resources, stagnant growth, negative demographics and rising income/wealth inequality. The status quo promised that growth could be restored and its promises fulfilled with extraordinary monetary and fiscal policies, but now that the returns on these policies are diminishing, people are waking up to the reality that the 'good old days' are over. People are also waking up to the reality that these unprecedented monetary policies have exacerbated income/wealth inequality .. The realization that conventional monetary/fiscal policies have failed those who have been turned away from the 'free money for financiers’ banquet is fueling political rebellion against the status quo. This global grassroots movement has found expression in the recent Brexit vote in the United Kingdom and in the rise of anti-establishment politicians and parties around the globe .. The trends cannot be reversed with yet another rate cut or another “whatever it takes” announcement of central bank bond purchases. Greater volatility and uncertainty are baked in the cake at this point as what worked before fails to produce the rescues it once did. For the individual investor looking to preserve capital, these will be treacherous waters to navigate. Not only is another crisis approaching, but it will not unfold similarly to the one in the financial crisis. With the greater pressures in play now -- economically, demographically, resource-wise, and politically -- the fracture lines will be different and likely more disruptive."
- Charles Hugh Smith*
link here to the essay


Anonymous said...

Smith must be a Canadian to be worried about wealth inequality. Equal spread of wealth means everyone is poor. Poor people do not do anything to enhance the wealth of their society. They just exist. Q.E.D.

Yep sounds like a Canadian alright. Probably voted for TrueDo.

Anonymous said...

New Evidence Proves HSBC Avoided Criminal Prosecution Due to “Market Risk”

All that said, if anyone is a top contender for the worst of the worst of the Obama Administration, it’s Eric Holder. As head of the Department of Justice, he was the one man who could’ve played an enormously positive role in American society, by punishing those responsible for creating the financial crisis that destroyed tens of millions of lives globally. Instead, he chose to actively protect the financial oligarchs and ushered in a tragic new era for these United States. One in which the world suddenly realized that the U.S. is little more than a glorified oligarchy. Essentially an aggressive Banana Republic armed with nuclear weapons and the swagger of a third world dictator.

- From the post: Cronyism Pays – Eric “Too Big to Jail” Holder Triumphantly Returns to His Prior Corporate Law Firm Job

The precedent was set with the TBTF mega banks, and it was continued last week with the non-indictment of Hillary Clinton.

The rule of law simply no longer exists in America. Laws do not apply to the rich and powerful, only apply to the peasant citizens.

The following is absolutely disgusting. From the BBC:

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