Economist Cover: "Watch Out"

Tyler Durden's picture

One of the recurring explanations given why the Fed is eager to hike rates is so it has some dry powder ahead of the next recession which, some 6 years after the last one ended is overdue (especially with a negative GDP Q1).  Which, incidentally, is just the topic of the next Economist cover titled simply "Watch out" adding that the world is not ready for the next recession...

There is, of course, the question of just how much dry powder does a 25 bps increase in the Fed Funds rate provide, especially considering that Europe tried precisely that in the summer of 2011 only to unleash a crippling recession on the continent that required yet another Fed bailout in November 2011.

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NoDebt's picture

None of us will live long enough to see the next officially declared recession.  Hell, we're living through a Depression right now, but they'll never admit it.

Racer's picture

Exactly, and why are 'emergency' interest rates so low after so many years....

p00k1e's picture

Why is GM still open?  LOL

TeamDepends's picture

To build trucks for The Man. Check out the new Chevy 1500 Dissident Pick Up.

Haus-Targaryen's picture

Just made this as I waited for tech support to show up.  I found it funny.


Oh regional Indian's picture

Huzza! Indian's know what is UP.

Or do they? I trust no NUMBers anymore. It is perhaps for india's now soon to be burgeoning defence/missile industries that are going to pop up as Israel and USSA and France decide to benevolently move their factories here.

The first move by our now not so new Prime Minister was to sign a $35 billion deal with Israel.

All that said, AG is it.

This, might be pure gold though ;-)

greenskeeper carl's picture

But isnt the economist ALWAYS worng? havent countless cover articles predicted one thing, and then had the exact opposite happen. This article is the first thing Ive seen in a while that makes me optomistic.... If the economist says we're doomed, everythings gonna be ok....

chunga's picture

That's right.

Once secret TPP goes into effect everyone will be saved by their new awesome job as copper top at Earth Industries, Inc. Plus...we've got Jade Helm to look forward to. I'm going out to finance a nice new car!

pods's picture

The steak tastes good too.


El Vaquero's picture

Of course the Economist is wrong here.  They're just one step closer to correct than normal.  We're not about to enter a recession.  We're not in a recession.  We're not in a depression.  We've been in a state of collapse for the past 15 years.

chunga's picture

Even though we love it here we were starting to wonder if relocationg to the eastern redoubt was really necessary. TPP has got me spooked Vaq, we've deciided to double-down on the hugelkultur beds and make a bunch moar. The amount of stuff we've got going already is incredible.

El Vaquero's picture

It's all coming down.  It's just a matter of timing and who comes down when.  I'm US centric because I'm in the US, but the rest of the world is also in a similar situation.  Some may be able last a few years longer than others.   So carry on with your hueglkultur.  Try other things too, and expect some failures in the process. 

AGuy's picture

Of course the Economist is wrong here. They're just one step closer to correct than normal. We're not about to enter a recession. We're not in a recession. We're not in a depression."

Double-Dip, or is triple-Dip. just becuase your already in a recession or depression does not mean things can get even worse.


" We've been in a state of collapse for the past 15 years. "

Slow stagnation collapse.


TBT or not TBT's picture

"But isnt the economist always wrong?"

They are hedging their editorial bets.  Which is quite a tell from The Economist, which has been a dishonest bootlicking bunch for years now, just with higher brow writing.   For fuck's sake, of course the enormous government debt and ZIRP forerevah have set the world up for Nemesis to do its tragic job.   But The Economist sucks central planning dick and cleans out its partners' well humped hole week in and week out since more than a decade now.  It's impressive they go ahead and bring up the obvious one article out of a thousand. 

Groundhog Day's picture

This was my first thougth as well

ratdogman's picture

I remember when the Economist Magazine (1999) had a cover when crude was in the $10 range, and that it might go to $5 a barrel.

I went long crude futures with every dollar I could.

BoredRoom's picture
BoredRoom (not verified) Haus-Targaryen Jun 11, 2015 8:37 AM

This time WILL be different

BLOTTO's picture

The beast is further up the creek.


Chopping off its tentacle is completely useless as it will just regenerate a new one.


We need to cut the beasts head right the fuck off.


Now what?

Dame Ednas Possum's picture

The Rothschilds are diligently complying with the rules of occult by announcing that which they and their bretheren have created to inflict upon the goyim.

"I do what I'm told..."

Kirk2NCC1701's picture

Why is GM still open? 

Because "You Got It, Pontiac! "

TBT or not TBT's picture

UAW Motors supports the government party, that's why.   

blindfaith's picture




A better question IS...why is Chrysler still open?  Bailouts...and for whom?

Could it be Cerberus?  With lead partners John Snow ( ex US Treasurer) or Danny Qualle ( ex VP USA).  Can't have them mowing lawns now can we.

Fun Facts's picture

GM is still open to build the rolling sarcophagus for the idiocracy.

GM vehicles should be required to be lemon colored.

LawsofPhysics's picture

Because bankers and financiers have gotten use to the free money and have bought congress to keep it coming.


nuubee's picture

It really kind of was the perfect storm

We had a government that was bought and paid for, mostly by big bankers...
We had a financial system that was lying compulsively...
We had a monetary system that was staffed by bankers...
We had public that believed distractive issues like gay marriage were more important than the crooks they were electing for their pet distractions.

Up next, more and more overt Tyranny, with grander distractions.

MonetaryApostate's picture

Was?  Hell this storm has just begun, Tyranny is only one piece of it, and this is a multi-faceted storm, with more than one storm meeting up...

World War 3, Economic Collapse, and Bank Bail-Ins are all real threats...

LawsofPhysics's picture

Banker/financier bail-ins are ongoing, in "modern finance" these people are nothing but useless overcompensated middle-men between the printer/computer and the real economay consumer/producer.

If they were smart, they would start spending all their ill-gotten gains and make themselves useful...

MonetaryApostate's picture

Yeah, I'd be willing to wager many of them are headed to London or Tel Aviv too...

Kirk2NCC1701's picture

If you're not planning on coming back for good, why have the IRS look at your foreign Income and Assets?

Besides, should you change your mind, you just know that you can come in as  a Free Trade worker (NAFTA, TTP...).  Except now (after some years of not being a USC anymore and not having filed taxes), your Foreign Holdings have been buried too deep for DC to find or grab.

Which makes me wonder why Simon still has his USC.  You need to practice what you preach, Black.  It's not as though you don't have your assets visible or accessible by TPTB. 

Winston Churchill's picture

I have a salutory tale for you Captain.

My father always opened bank accounts in every country he visited.

Strictly illegal as a UK resident during the time of Sterling capital controls.

One of his strokes obliterated his momory of the numbers,names and account numbers of

those deposits. Our family was SOL trying to recover the monies.

You can be too clever.

El Vaquero's picture

Not only that, but what places are going to be immune from the massive economic shocks yet to come?  Places you don't want to be right now, that's where.  Foreign governments are not going to be kind to recent transplants when SHTF. 

two hoots's picture

Dry Powder?  There is no powder until they keystroke it into existance.  What yacky BS?

TwoHoot's picture

Imitation is the sincerest form of flattery.

Martial's picture

The correct cover would have just one dragon, who was just distracted for a second by bernanke and janet waving a stick...only to be devoured seconds later.

NihilistZero's picture

The Oligarchs and their syschophants aren't ready for the next recession. Majority of working people have been living a CONSTANT recession since around 2001...

Oknowwhat's picture
Oknowwhat (not verified) NoDebt Jun 11, 2015 9:23 AM

Speaking of Fed is the FED that "provides" the money to house ALL of the US prisoners.  Authorities simply say "taxpayers" pay for the millions of US incarcerations though it has come to pass that the FED loans the money at a 10:1 fractional reserve.  So.....with the most people in prison in earths history it should come as no surprise that the FED is lending for it.

kchrisc's picture

We will see the revolution.

Liberty is a demand. Tyranny is submission.

LostandFound's picture

Slaying the western financial system and straight into the eastern bloodline (dragon) system [aka BRICS]. Out with the old and in with the new. Unfortunately the new is a trap and part of the NWO totalitarian system. 

Haus-Targaryen's picture

The dragon on the right isn't large enough. 

NoDecaf's picture

There's a bigger one behind him.

jarana's picture
And the man in the middle is not sufficiently unconscious .

At least he still wears the armor.
eddiebe's picture

The dragon on the left is just sedated by bullshit!

onewayticket2's picture

he's playing dead....waiting for the Knight's grandchildren to come along.

Fun Facts's picture

Economist magazine, owned by Rothschild Inc is of course a propaganda mouthpiece for the system of monetary enslavement we endure.