CENTRAL BANKS LOSING CONTROL: Are The Seeds Of A Global Depression Sprouting?
by Chris Hamilton
Econimica.blogspot.com
Thursday, March 26, 2015
If the “markets” are rigged and economies divorced from true market valuations, then what (if anything) could trigger a recoupling of reality to the record setting flashing digits presently offered by the “market” facade? My best guess is decelerating global credit and debt creation (and a rotation from private to government debt creation) is the harbinger progressively pushing the financial rigging to its ludicrous conclusion. The rigging isn’t likely to stop, but the loss of belief and confidence in these numbers (along with economic mismanagement based on these faulty signals) is soon to force market resets and revaluations of everything. This will culminate in a global depression of unknown duration and depths until balance is restored.
McKinsey & Company did us quite a solid with their recent report titled “Debt and (Not Much) Deleveraging” (yes, I’m attempting to be hip…and prove to my high school age son and daughter I’m not as big a nerd as they think). Anyway, I’d encourage economic junkies to at least read the executive summary. http://www.mckinsey.com/insights/economic_studies/debt_and_not_much_deleveraging
The report showed global debt, in total dollar terms, and global debt to GDP as a percentage continues to ramp. Globally, debt continues growing faster than the economic activity it spurs.
The Rest…HERE