Checkmate

Please follow the link to Karen Maley's article in Business Spectator today. This is the most articulate and focussed article on the global economy put to press for sometime. Particularly, the conclusion, that we have simply prolonged the hangover from the GFC, rather than have begun to deleverage and rebuild. By transferring private debt to public debt we have greatly exascerbated the problem and created the real possibility of a string of sovereign defaults over the next decade.

Unfortunately it remains my firm view that we are far from recovery or any semblance of the pre-GFC "status quo".

There remains a severe economic reckoning still to unfold.

Consequences of mis-diagnosis

Ignoring how low rates created the crisis is like blaming the crash of the Hindenburg on bad weather, poor piloting, lazy ground crews, and overly emotional broadcast journalists, while ignoring the 200,000 cubic meters of flammable hydrogen gas that the airship held in its structure.

Please find the link above to Peter Schiff at his best. Clear evidence again that the decision makers in the U.S. remain oblivious to the courses of the Great Recession and will continue to exascerbate rather than treat the problem.

Given the vast monetisation of the US dollar currently underway the tide has definitely gone out of that inflation tsunami.