Three Charts That Blow The Doors Off Any Hope Of A 2012 Rally
by Charles Hugh Smith
The centrally-managed rally of March 2009 is over; reality is finally intruding on the manipulation and propaganda.
A good way to generate hate mail is to question 1) Santa’s “guaranteed year-end rally” and 2) the notion that market rallies always resume soon enough because of the Federal Reserve’s backstop/intervention.
If we step back from the latest shuck-and-jive data from the Ministry of Propaganda, a.k.a. the Status Quo managing perceptions, and take a longer view of the economy, money, credit and the stock market, we get an extremely troubling set of insights.
Courtesy of this site’s Chartist Friend from Pittsburgh, here are three charts that completely undermine the fantasy that central planning/intervention can “save the market” once again in 2012 and beyond.
The first chart depicts annual percentage of change of Total Credit Market Debt and GDP. The black line tracks the annual percentage expansion of debt and the purple line shows the annual percentage of change in the Gross Domestic Product.