The Global End Game

Via Gordon T Long of GordonTLong.com,

As we discussed previously, an over-indebted, overcapacity economy cannot generate real expansion. It can only generate speculative asset bubbles that will implode, destroying the latest round of phantom collateral. The following clip succinctly links Charles Hugh-Smith's 14 points in the global endgame to the cycle of deflation from the business cycle, credit cycle, and more critically to the emerging version sought by our current slew of Central Bankers.

 

FOURTEEN POINTS:

  1. "Boost Phase" of Credit Expansion
  2. Overextended Credit Expansion and Over Capacity
  3. Financialization and Collateral
  4. Era of Financialization
  5. Growing Malinvestment
  6. Phantom Collateral from Asset Bubbles
  7. Bubble Implosions
  8. Impaired Debt and Policy Decisions
  9. Stalled Consumption
  10. Cheap Money Offered
  11. Shrinking Loans and Bank Speculation
  12. Search for Yield from Shrinking Pool of Productive Assets
  13. Increasingly Speculative Investments with high Risk
  14. Stagnation - Over-indebted, overcapacity with limited growth.

HOW THEY MAP TO THE CYCLE OF DEFLATION