Even the staunchest cynics will be stunned by the latest development out of the Shanghai government where starting next month, venture capital firms which invested in high-tech startups since the beginning of 2015 can apply for government compensation if their investment loses money.
Brazil’s current crisis is nothing but an outcome of government’s meddling with the market. The scenario of the country’s economy is indeed scary, but we have reason to believe that Brazil’s intellectual situation is going through a new and promising change. It may be true, as Lord Keynes said, that “in the long run we are all dead,” but if we are to get out of this terrible crisis, to prosper and to enjoy a constant improvement in our standard of living, “it is high time to transform the country’s state capitalism into a free market system.”
"So why do speculators make claims that run counter to reality? Analysts said it is because either the short-sellers haven't done their homework or that they are intentionally trying to create panic to snap profits."
The public idea of collapse comes predominantly from Hollywood, and not from personal experience. For the masses (and some preppers, unfortunately), a collapse is an “event” that happens visibly and usually swiftly. You wake up one morning and behold; the television and phones don’t work anymore and zombies are at your doorstep! Yes, it’s childish and cartoonish, but anything less than a Walking Dead/Mad Max scenario and many people act as if all other threats are benign. This is the driving reason why many Americans are absolutely oblivious to the economic instability that is rampant and blatant within our system the past few months. Well, the problem is that social and economic collapse is not a singular event, it is a PROCESS.
In concert with denial and obfuscation, pride and hubris may be clouding the image the Chinese have of themselves and their economy. What they are trying very hard NOT to communicate is how much pain their Ponzi debt burden has put them in. It’s not even fully clear to what extent Xi himself is aware of this, but he knows at least enough to keep his mouth shut on the topic. It’s quite possible that some of his top aides dare not reveal the real tally to their boss for fear of their jobs and heads. Beijing might solve some of these problems by devaluing the yuan by 30%, or even 50%, but it would invite a large amount of other problems in the door if it did. Like a full-blown currency war. Still, it’s just a matter of time till Xi and Li either do it voluntarily or are forced to by ‘the market’.
Fed Back-Pedals Hawkishness, Hints At Policy Error: "Monitoring Global Developments", Admits "Growth Slowed Last Year"Submitted by Tyler Durden on 01/27/2016 16:01 -0400
Treading a fine line between losing all credibility and exposing their total devotion to the stock market, it appears The Fed is maintaining its delusion that everything will be fine as they unwind the largest and most experimental monetary policy of all time, and yet for the first time we get proof that the Fed admits it made an error by hiking into a slowing economy: "labor market conditions improved further even as economic growth slowed late last year.
With grocery prices surging, amid the collapsing currency, the powers that be appear to have turned to their mainstream media puppets to initiate the 'mocking' propaganda against an increasingly fearful Canadian citizenry (especialy those under 35) who are hoarding cash.
In an otherwise dreary manufacturing recession landscape, one in which even the services sector is getting increasingly more troubled by the day, and where nothing the Fed says or does can keep animal spirits inflated, there was one ray of light: the one company that benefits from over a billion people posting pictures of their dogs or stalking their significant other's best friend: Facebook.
No Republic has ever resisted the path to oligarchy and that is the real danger we face. The question becomes how far down this historical path do we go? The path is well worn. The markers are clear and never change.
After the Fed's statement, one thing was clear: the career economists at the Marriner Eccles building are very confused, admitting to hiking rates for the first time in nine years "even as economic growth slowed late last year". But more confused are the Wall Street economists who follow the Fed and are expected to interpret what the Fed says, means and hints, especially when said Fed has no clue what is going on, like right now. So while their opinions are utterly worthless, for the record, here is what the economisseds see in today's 558 words of sheer Fed confusion.
On Tuesday we got the latest revision from Statcan on Canada's labor market and for Alberta, 2015 was the worst year for job losses since 1982. Net job losses for the province were 19,600 for the year, far more than Alberta lost during the Great Recession.
Fed officials and financial news reporters are collectively wondering why the economy seems to be slowing down, even though lower oil and gasoline prices ought to be a stimulative factor. If consumers are spending less of their money on gasoline, then they ought to have more to spend on other stuff, or so goes the reasoning. So why is it not working?
Washington's individual efforts to meddle in Mid-East affairs have now seemingly all melded into one giant, bloody melee and incredibly, America's solution is to go right back in and meddle some more. What could possibly go wrong?