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The Great Keynesian Lunacy is Finally Beginning to End… For Now
The great Keynesian lunacy is finally beginning to end.
Generally since 1999, and especially since 2008, the financial world has been dominated by Keynesian lunacy. Collectively, Central Banks have cut interest rates over 500 times and printed more than $12 trillion combating a brief 9-12 month period of deflation.
The pinnacle of this madness hit the US in 2012 when the Fed announced an ongoing QE 3 and QE 4 programs. However, globally, we hit peak Keynesian insanity in Japan in April 2013 when the Bank of Japan announced a $1.4 trillion QE program. For clarity’s sake, this represented a single QE program equal to 28% of Japan’s GDP.
The results speak for themselves. Japan saw about an uptick in economic growth for two quarters before the whole thing fell apart. Household spending is down 6% year over year in July 2014. Japan’s economy shrank at an annualized rate of nearly 7% in the second quarter of 2014.
The rest of the world hasn’t fared much better. This is, hands down, the weakest recovery on record since the Great Depression. By the Fed’s own admission unemployment is only lower 0.13% better thanks to its insane policies. The negative consequences have been horrific: with interest rates at 0% those depending on interest income (retirees and others) have been screwed while the wealthy elite have been able to leverage up to increase their wealth dramatically.
In a nutshell, we’ve found that global Central Bank’s Keynesian policies:
1) Failed to create sustainable economic growth
2) Increased wealth disparity and concentrated wealth and assets in the hands of the few
3) Wasted trillions of dollars in capital
With the Fed looking to end QE completely in October the Keynesian lunacy is finally beginning to end… for now. Between this and the ECB’s decision to cut interest rates to negative, the US Dollar has now rallied for 9 weeks straight.
A strong dollar has historically been stock negative. Which is why the massive stock market bubble is looking more and more precarious:
Buckle up. Big trouble is brewing.
This concludes this article. If you’re looking for the means of protecting your portfolio from the coming collapse, you can pick up a FREE investment report titled Protect Your Portfolio at http://phoenixcapitalmarketing.com/special-reports.html.
This report outlines a number of strategies you can implement to prepare yourself and your loved ones from the coming market carnage.
Best Regards
Phoenix Capital Research
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The critique above misses the point completely. All of these policies have been pursued BY DESIGN, so any criticism designed to affect a change in CB behaviour is totally irrational. In order to navigate through these times, that should be your starting point. CB policy is designed and formulated to prevent the collapse of the system and protect the banks and global money centers...period.
To that end, it has been entirely successful to date. Of course the end-game will be catastrophic...we all know that. THEY know that. Everyone with capital has had to make decisions about how best to deploy it, or protect it. That's never an easy task, but it's been made harder by the surpression of the natural price of money...and the resulting distortions that take place as a natural consequence of this type of policy.
Unfortunatley for some, and many on here I'm afraid, idealistically shorting stock markets and buying metals has been disastrous to date. That is a FACT. It may not be palatable to some...but, as the saying goes..you can have your own opinions, but not your own facts. Those smart enough to see even roughly how things were likely to unfold over the past 6 years, have made a killing in one way or another. And if they're really smart now, they will move largely into cash and wait for the really big opportunities that are coming. Cash = optionality as long as the general price levels remain subdued and the negative carry of holding cash is not too penalising.
There are major headwinds to global growth...the stronger $ has had very little to do with an improving US economy, rather the even bigger mess that both Europe, Japan and China find themselves in. The US has been a major beneficiary of cheaper energy and commodity prices over the past 6 months. It's effectively acted as a windfall tax for the US consumer. However, slowing global aggregate demand will not be favourable for the US in the long-run. If the markets really believed that the FED was close to raising rates, there is NO way 10Y US or 30Y US yields would be trading at current levels...and risk assets (stocks in particular) would be under far more pressure than we have witnessed to date.
I don't believe the FED is contemplating a rate hike....they have decided to reign in large scale asset purchases principally because they could see the diminishing marginal returns of that policy...and the disquiet and polarisation it was beginning to cause. Most advanced, Western economies are no-where near robust enough to withstand higher rates....and the FED is not going to open Pandora's Box for a long time....
trade/invest/hedge accordingly.
QEn is the equivalent to the Cash for Clunkers program.
Future money is used up now, taking away future growth for Bankster Bonuses now.
A strong dollar is a sure sign people are believing in the bullshit and in that sense...yes, GET THE PHUCK OUT!
Believe though...Wall Street and Washington would like nothing better than to cut that 100 billion dollar check for a Chicago Subway system.
"That's the dream denied" bitchez.
Hollywood ain't got shit on Alibabba Land.
Almost every article this joker writes, insinuates a coming global disaster. He's been saying this since 2008/2009. Eventually he is going to be right, maybe not for the right reasons but he'll be right! He should be very proud that day.
This is your interpretation of his comments.
My interpretation is, that his message is: keynesian way does not work. And yes, there will be a fall a big dipp. After rise of Dow and S&P to high values (I do not know when) the a dipp follows.....
The recent drum beats and flames of war have distracted many people from focusing on the economy. The markets are extended beyond beyond, all this comes at a time when the IMF is calling for more QE. It seems this might be a good time to review the reasons this is economically unsound and a bad idea while markets are setting new record highs and economies continue to struggle.
The policies of the last six years have yet to produce the desired and expected results promised. As a consolation many economist, bankers, and those who have benefited greatly tell us we would be in far worse shape if we had not taken this course. Now it seems Central Banks and the IMF are clueless on how to proceed and a policy going forward. More on the lack of a clear path in the article below.
http://brucewilds.blogspot.com/2014/09/central-banks-and-imf-clueless-on...
It is not "Keynesian Lunacy," as Keynesianism is only the intellectual cover for the banksters' theft. Before "Keynesianism" there was "Bimetallism."
An American, not US subject.
"Guillotine the Fed!"
Deleted/Duplicate.
Keynesianism is based on the fallacy that a dollar spent by government is equal to a dollar spent by an individual or firm.
It, of course, is not. Government wastes money that otherwise could be used for productive purposes. People and firms use money to add to either productive assets or greater comfort.
Counting the tips on a Maple leaf is not as good an investment as a sofa... and never will be.
Ennui, lethargy and other signs of life are not the beginning of the end. They can go on for centuries.
Bang
A economist some time ago with his cohorts ponderd on how to keep control over what they already had and make there grip on power even stronger in the future. Then one of the economists sitting in the room realized he could spend money people in the future would need, so him and his buddys spent and spent. Thus the people in the future who might appose their rules and control would not have any money needed to appose them.. these people are known as Kenesyians... and debt is their trick to use Capitalism and socialism against itself.
And it's this theft from our kids and grandkids that we unequivocally oppose as grossly immoral.
An American born in 1945 can expect nearly $2.2m in lifetime net transfers from the "state" far more than they pay in, and far more than any previous group. A study by the International Monetary Fund in 2011 compared the tax bills of what different age citizens pay over their lifetime with the value of the benefits that they are forecast to receive. The boomers are leaving a huge bill.
Those aged 65 in 2010 may receive $333 billion more in benefits than they pay in taxes.This is a heavy burden to place upon the young. The article below delves deeper into this subject.
http://brucewilds.blogspot.com/2013/03/the-young-will-be-burdened.html
I don't think so. This is the part where the bankers collapse the world economy so that all the cash they have been printing and hoarding can be used to buy up what is left of the world's assets for pennies on the dollar. Then when we have the cash and they have the goods, they will re-inflate, rinse and repeat. In the end, it is either going to be globalism or localism. There will not be any other options if for no other reason than no other system has the tools necessary to protect a society from bankster globalism. http://www.amazon.com/Localism-Philosophy-Government-Mark-Moore/dp/06922...
But I heard that this is a Wonderful Life?
Am I wrong?
- Ned
Whatever the pertinence of this current demonstration there is a recurrent question I ask myself : why does this guy give me a furious urge to pleasure myself like a wayward school-boy?
I feel to the heart of my "funny bone" the vacuity of his previous demonstrations in all conceivable directions, up-down and round-about, -- week after week for 4 years-- and realize what a true financial wanker is.
Amazed, baffled and bewildered by the irrepressible splurge of his pseudo rational "head and shoulders" cartoon-graphical urge, gone tangentially and spasmodically bonkers : its a select club.
Isn't it amazing how much money the Jews have stolen with OUR printing press?