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Picturing Our Dystopian World - Where Less Is More
The economic growth expectations for the world in 2014 just plunged to fresh lows at a mere 2.78% - that is 15% "less" growth than was expected a year ago. The world's equity markets are up 25% "more" than at the start of 2013. Thus, our dysfunctional dystopian world where 'less' economic growth is 'more' wealth-creating. Long live the central bank utopia...
MSCI World (green) vs 2014 World GDP expectations (red)
Chart: Bloomberg
h/t @Not_Jim_Cramer
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The green will catch up (down) sure enough.
That's what she said?...
OWN STAWKS
OWN PHYSICAL PRECIOUS METALS
<--Own guns
<--Own roses
Own both!
How did Venezuela pull off having a rising stock market but an economy descending into hell? Maybe it's the same everywhere.
Of course, stocks being up by 25% doesn't equate to "wealth creation." These are paper gains, just like the inflated "wealth creation" of the housing bubble.
And with all the sanctions and future sanctions, I am sure that growth line will get even worse over the next few months
What is this 'sanctions' you speak of? Is it like peanut butter?
They are similar to "suctions" which are used to create a vacumn and allow banks to "suck" the money out of the peoples pockets.
It's not less is more -- it's that the illusion of wealth is more important than the reality.
Sometimes I wonder if this isn't so much to fool the 99% as it is to fool the 1%.
It's a circle jerk of delusional expectations among all the social classes.
zirp has a strong influence
As long as the green line is up and to the right, there's no need to panic. Right?
It's almost as if there is a coordinated plan to bleed households while enriching elites...
Get back to work, ya' loafer.
All of that printed money has to go somewhere. Until we get a major war going no where else for it to go....
right now 20 paper bones'll get you a nice, shiny ounce of silver. You could do worse.
The economy has to heat up before the rich unload their stocks. This may never happen.
Perhaps others will be heating up the rich.
All is well until debt service exceeds tax revenue...then things will be very un-well.
I think its about time to drop capital gains taxes to zero, turn interest rates negative, and raise tariffs on imports to infinity.
Makes just as much economic sense as anything else going on.
This is a story (yesterday) that should be getting more attention (for several reasons). ZeroHedge might consider looking into this and creating a post about it. It is a big deal.
AP News
Harrah's casino announces it will close in Tunica
By Jeff Amy on March 26, 2014
http://www.businessweek.com/ap/2014-03-26/harrahs-casino-will-close-in-t...
This is significant for several reasons. For one, this casino resort (along the Mississippi River just south of Memphis, TN) is in an area that was once billed as the 3rd largest casino market in the US (after Las Vegas and Atlantic City). This particular casino resort is billed as the largest casino resort between Las Vegas and Atlantic. This casino resort employs some ~1,300 people. This area has seen a steady decline in revenue for some ~7 years. This type of casino is typically frequented by Mr. and Mrs. Joe Sixpack. This sort of place is not largely visited by Mr. and Mrs. "High Roller" that prefer Las Vegas or Atlantic City. The typical customers of ths type of casino shop at Wal-Mart and Sears etc. Casinos like this see steady declines in revenue when Mr. and Mrs. Joe Sixpack don't have sufficient disposable income to feel comfortable going to a casino. This is a glaring reflection of tough economic times for middle-class folks that would otherwise enjoy going to a place like this.
Here are some statistics from the above article that are alarming:
"The announcement lays clear the consequences of a relentless seven-year fall in gambling revenues among the county's nine casinos. They, along with other Mississippi gambling halls, have been cutting employees and paying less in gambling taxes for years, even as management kept the doors open.
Tunica casinos won $1.16 billion from gamblers in the 12 months ended in September 2006, but that amount fell 38 percent to $723 million in the 12 months ended in September 2013, according to figures from the Tunica Convention & Visitors Bureau.
The decline in the number of people entering the nine Tunica casinos and one Lula, Miss., casino was even steeper, falling than two thirds since peaking in 2007, when going to Tunica was an activity that had appeal across a broad swath of the South and lower Midwest. In the past three months of 2007, those casinos had 4 million visitors, while in the last three months of 2013, they had 1.3 million, according to Mississippi Gaming Commission statistics."
... Ouch!
I won't crash like before.....right?
Wait, you are trying to compare stock index level with GDP growth? Do you really not know the difference between stock and flow?
wweeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee!!!!!!!!!
I could without bargaining, just accepting the banks general terms borrow 500k at the cost of 2k per month on a 30yr downpayment.
If it wasnt for this graph it would have been a done deal. I still feel tempted, but what if reality returns? On the other side, what if FIAT fails?
It is not hard to see why this trend is visible. In low yield environments, people are willing to pay more to chase smaller profits. So when yields rise, watch the fuck out. Until then, the music is still playing.