Renewable Revolution

Agelbert NOTE: If you don't know what the (100% reality based) Chapwood Index is, now is a good time to find out how much the 😈 Bureau of Labor (LYING) Statistics has gamed the CPI down to make we-the-people believe we are not being robbed into penury by deliberate 💵👹🎩 Federal Reserve inflationary money printing to keep the 🐍 parasitical rich happy. 

Quote of the day (AND DECADE):

EcuadorExpat

What I find incredible is that none of these guys can figure out that when interest rates go negative, there is no longer an economic system and the rules like supply and demand mean nothing. There are no markets, there is no analysis that can predict the markets, fundamentals in pricing have meant nothing for quite some time now.
 
And since the chapwood index shows that REAL INFLATION has been over 8% for the last 10 years, interest rates have been effectively negative.
 
And as far as timing goes, the wheels come off when those with the printing press decide they will come off. To their benefit of course.

SNIPPET from associated article:

Markets hit all-time record highs just a few weeks ago. Stocks hit record levels. Corporate bond spreads had never been tighter. Most of the globes sovereign debt was trading at sub-zero or barely positive yields. The bull market was unstoppable – no matter how bad the news about virus, trade wars, and rising debt seemed.

Everything was perfectly priced – mispriced.

The market’s final euphoric top wasn’t driven by economic reality, phenomenal growth expectations, accelerating corporate profitability or rising consumer incomes and discretionary spending. Nope. The only real driver was the continuing expectation/belief Central Banking Authorities would continue to juice the market and distort prices the way they’ve been doing since they stumbled on monetary experimentation, QE and NIRP since the last crisis.

Now we know they were not a cure. They were hits of monetary addiction.

Just how dangerous we will shortly find out – just how damaging the unintended consequences the last eight years of market distortion have been. I suspect unravelling the damage will be long-term and extremely destabilising.

For instance; the obvious one is corporate debt. $14 trillion of new corporate debt in the last 7 years needs to be repaid. Was it spent on building new productive assets? Nope. Most of it was spent on stock buybacks which created wealth for owners, but has simply leveraged companies to the hilt. There is enormous balance sheet damage to be corrected – and that is not stock positive in the next few months.

Full article:

Tue, 03/17/2020 - 10:30

Authored by Bill Blain via MorningPorridge.com,