That was big……… but this is bigger.
Whilst I admit to not hearing it for some time, the MSM has been spreading its usual nonsense in the form of “the fundamentals” [of the economy] are spot on, there’s nothing to worry about. Which I’ve been calling for years as crap, and now there’s a chart that explains everything regarding why I feel this way.
(Richard Koo: The ‘struggle between markets and central banks has only just begun’, Business Insider)
Why is the economy barely growing after seven years of zero rates and easy money? Why are wages and incomes sagging when stock and bond prices have gone through the roof? Why are stocks experiencing such extreme volatility when the Fed increased rates by a mere quarter of a percent?
It’s the policy, stupid. And here’s the chart that explains exactly what the policy is.
What this chart clearly shows is that the monumental increase in money printing had almost zero effect on lending, nor did it trigger the credit expansion the Fed were hoping for…… In other words, the Fed’s insane pump-priming of the economy experiment (aka– QE) both failed to stimulate growth and put the economy back on the so called ‘path to recovery’ we’ve been told was on, but everyone else has been saying for years never happened. For all intents and purposes, the policy was a complete flop.
Mind you, had it worked, I think we would have seen massive inflation. Basically, the fundamentals went AWOL way back in 2008. And no one wants to admit to it.
The latest news from the US is that Walmart are closing 269 stores, which will probably leave some small towns with nowhere to buy anything, and thousands of people out of work. If you need signs that economic collapse is now well underway, look no further than that little curler…..
The upside is that we might even see CO2 emissions starting to fall.