Tick, Tick, Tick…


Doomsday Clock for Global Market Crash Strikes One Minute to Midnight as Central Banks Lose Control

From the article:

When the banking crisis crippled global markets seven years ago, central bankers stepped in as lenders of last resort. Profligate private-sector loans were moved on to the public-sector balance sheet and vast money-printing gave the global economy room to heal.

Time is now rapidly running out. From China to Brazil, the central banks have lost control and at the same time the global economy is grinding to a halt. It is only a matter of time before stock markets collapse under the weight of their lofty expectations and record valuations.


NOBODY is paying any attention to Japan in any of these articles. Japanese national debt is highest in the world approximating 240% of GNP and the US is encouraging them to increase military spending – not a good idea.

Greece is always used as an example in these articles, but is it a true measure of global economy? It’s rather like using Mississippi as a barometer of American financial power. Accurate, but not true.

Another measure is the BDIY index (Baltic Dry Index). This is a shipping figure and measures global trans-oceanic dry bulk shipping. It is widely considered to be more accurate than stock averages or commodity prices for predicting future economic activity. The BDIY index has been depressed since Jan. 2015, but has risen slightly in recent weeks. Bad sign or good?

A bad moon is rising – not just in September skies.

Will there be extreme shortages of everything in our future?

and that’s me, hollering from the choir loft…

Alarmist click bait editorial with more holes than a Swiss cheese.

Predicting a Stock Market Crash is like predicting winter.

Spring always follows winter. Boom follows bust. Save some eggs and never put them in one basket.

Major corporations you will have read are all sitting on their cash and not investing it – hiring only low paid staff and putting nothing into R&D or expansion. Also M&A activity is very low, the lowest it’s been for decades.

This to me is another very worrying sign because the whole point of operating an enterprise is to expand, invest, reap a return, reinvest and repeat the process. The world of enterprise has stopped doing that – (hence the consumer and debt-fuelled recovery, and even that having taken so long and been so drawn out) and since standing still is inherently inimical to the whole point of being in business it can only mean one thing – they know the world debt accumulated in the run up to 2008 has not been dealt with and “The Big One” is on the way so they are stockpiling cash.

Corporates are the smart money – they know what’s going on. Watching their behaviour is key to setting your own risk level and strategy be you an investor or an employee doing personal finance and household budgets.


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Posted August 17, 2015 by Sue Says in category In the News

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