From South Korean exports (beat) to Aussie PMI (multi-year highs) and from China Services PMI (2012 lows) to Japan CapEx (multi-year highs), AsiaPac was awash with the exact kind of baffle 'em with bullshit data that provides just enough "see everything is awesome after all" to balance the "umm, but what about..." less glass half full perspective. For your viewing pleasure - 5 WTF charts for AsiaPac economies...
"... As the tide of leverage goes out, the full extent of irresponsible lending becomes apparent. The previously virtuous cycle between risk spreads and fundamentals goes into reverse, with lower prices, defaults, and downgrades forcing leveraged investors to sell, leading to even lower prices."
It’s an unfortunate truth that, when people are worried about the future, they often put their faith in politicians to somehow make everything better. The hard truth, however, is that if we have a savior, he is the man in the mirror. If we are to be saved, we alone must do the research, make the plans, vote with our feet, and establish our own liberty.
"I am scared stiff of what is happening in this country. What will the government do about this?"
"Eventually, all of America’s lesser problems will combine into one giant problem. The very survival of the society will feel at stake, as leaders lead and people follow. The emergent society may be something better, a nation that sustains its Framers’ visions with a robust new pride. Or it may be something unspeakably worse. The Fourth Turning will be a time of glory or ruin."
It is Pedro's "courage to write" what Bernanke conveniently forgot to add in his memoir, that makes this review so much more memorable than the generic sycophantic tripe written by his "access journalism" peers.
Three weeks ago, we noted with some alarm that the number of women age 18 to 34 living with their parents is now the highest since record keeping began more than seven decades ago. Now, according to the latest data from the Commerce Department (which someone clearly forgot to double seasonally adjust), we discover that nearly a fifth of males aged 25-34 live in their parent's basement while the aggregate number for the 18 to 34 bracket inclusive of both women and men rose to 31.5% as of March.
According to the latest data, total Comex Registered gold dropped by another 11% overnight to just 134,877 ounces, just over 4 tonnes and another all time low, and since the gold open interest remains largely unchanged, the physical gold coverage ratio, or the ratio of gold claims to Registered gold, has just hit an all time high of 294 ounces of paper for every ounces of physical.
The game of enabling more debt by lowering interest rates and loosening lending standards is coming to an end. Debt is not a sustainable substitute for income, and households are increasingly waking up to this realization. Say good-bye to Christmas, America, and debt-based spending in general--except, of course, for the federal government, which can always borrow another couple trillion dollars on the backs of our grandchildren.
Seek protection from the great threat...
Last night’s Asia action brought another warning that the global deflation cycle is accelerating. Iron ore broke below $40 per ton for the first time since the central banks kicked off the world’s credit based growth binge two decades ago; it’s now down 40% this year and 80% from its 2011-212 peak. This implosion of demand cannot be remedied with another round of central bank money printing because the world is already at peak debt. Accordingly, global corporate profit cycle is heading into a deep downturn, just as the equity markets go into a final spasm of levitation based on a handful of big cap stocks.