The only achievements of the American neoconservatives are to destroy in war crimes millions of peoples in eight countries and to send the remnant populations fleeing into Europe as refugees, thus undermining the American puppet governments there, and to set back the chances of world peace and American leadership by creating a powerful strategic alliance between Russia and China. This boils down to extraordinary failure. It is time to hold the neoconservatives accountable, not elect another puppet for them to manipulate.
A week ago we highlight the "last bubble standing" was finally bursting, and as China's corporate bond bubble deflates rapidly, it appears investors are catching on to the contagion possibilities this may involve as one analyst warns "the cost has built up in the form of corporate credit risks and bank risks for the whole economy." As Bloomberg reports, local issuers have canceled 61.9 billion yuan ($9.6 billion) of bond sales in April alone, and Standard & Poor’s is cutting its assessment of Chinese firms at a pace unseen since 2003. Simply put, the unprecedented boom in China’s $3 trillion corporate bond market is starting to unravel.
Even if the events of 2015 and early 2016 turn out to be the end of it, it still means that full recovery in earnings and the real economy has been pushed several years farther into the future – a far more precarious state than was believed to ever be truly possible. To figure, then, that there is now much, much more than a trivial chance of still more disruption and contraction does not mix well with such durable overvaluation.
"If somebody needs a bell ringing to figure out that the [market] frothy right now, then I’m in the business of selling hearing aids..."
The stock market and the economy are moving in two completely different directions right now. Even as stock prices soar, big corporations are defaulting on their debts at a level that we have not seen since the last financial crisis. In fact, this wave of debt defaults have become so dramatic that even mainstream media is reporting on it...
Every day there is more confirmation that the casino is an exceedingly dangerous place and that exposure to the stock, bond and related markets is to be avoided at all hazards. In essence the whole shebang is based on institutionalized lying, meaning that prouncements of central bankers, Wall Street brokers and big company executives are a tissue of misdirection, obfuscation and outright deceit. And they are self-reinforcing, too.
"If, as it seems, we are in the process of becoming a totalitarian society in which the state apparatus is all-powerful, the ethics most important for the survival of the true, free, human individual would be: cheat, lie, evade, fake it, be elsewhere, forge documents, build improved electronic gadgets in your garage that’ll outwit the gadgets used by the authorities." There is no gray area any longer.
Gold and bond prices dropped and stocks popped as yet another open-mouth operation went underway this evening from none other than Boston Fed president Eric Rosengren. Ahead of next week's FOMC meeting, and just days after another Fed president said no April hike, Rosengren spewed firth that "I don't think financial markets have it right." Of course, what this preacher means is that while stock markets are perfectly efficient (and correct), bonds and rate futures areclearly inefficient and "investor outlooks for Fed rate hikes are too pessimistic," because "the US economy is fundamentally sound."
"We’re in the terminal phase of the greatest debt bubble in all of human history... The crisis that happened last time around… it was just a warning signal of what would happen if we didn’t fix our problems... and of course we didn’t fix them. It’s not sustainable... There’s going to be a permanent, massive adjustment and a loss of faith in the current system..."
Has something gone wrong? Absolutely.
Democracy does not trump human nature. State dependents will vote for those they perceive will continue their subsidies. Instead of lobbying for the redress of phony grievances against Politically Correct victims and groups, social justice warriors should direct their energies to the long suffering U.S. taxpayers and demand that those who live off them should have no say in either how much taxpayers are to pay or how their confiscated wealth is to be dispersed.
Among the many lessons of empires is one shared by virtually every empire:once the privileged few limit the rise of those from humble origins (i.e. social mobility), the empire is doomed to rising instability and collapse.
Corporate executives pay packages are performance-based. That is, pay if you do and pay if you don't perform.