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The Hierarchy of Collapse

IMG Auteur
Published : April 25th, 2012
1506 words - Reading time : 3 - 6 minutes
( 6 votes, 5/5 )
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Today, I want to demonstrate how the “HIERARCHY OF COLLAPSE” has nothing to do with economic strength, political leaning, or social discontent. Rather, they are all symptoms of the root cause of Central Bank MONEY PRINTING. In other words, “he who can print the most” stays afloat the longest.

Care of another in an endless sequence of “economic recovery” PROPAGANDA campaigns – in concert with MONEY PRINTING campaigns such as the ECB’s “LTRO” mechanism, the Fed’s “swap facility” and “Operation Twist” programs, and QE rounds in the UK, Japan, and essentially everywhere, the PPT and other MANIPULATION schemes have manufactured an early 2012 stock rally.

At least, that’s what the MSM wants you to think, as they have either ignored other nations’ markets, purposefully held their tongues, or were too dumb – and secular - to look. Unfortunately for the Pollyannas, the cold, hard facts tell a story of GLOBAL COLLAPSE, which even fudged NFP employment data cannot change. In other words, nearly all global equity markets are plummeting, in direct relationship to their ability to print money.

Case in point is the United States of Hyperinflation, the ground zero of money printing due to the dollar’s remaining status as “world’s reserve currency.” Despite the GLOBAL economic calamity occurring in plain sight, a massive rollover of economic data, record gasoline prices, and upcoming, bitter election and debt ceiling battles, the PPT has pushed the Dow to a 5% gain this year – with the typical ZERO volatility – care of GOVERNMENT ALGORITHMS like the “DEAD RINGER” that act to prevent even the slightest fear from spreading.

As you can see, 2Q 2012 GDP growth is anticipated to be 2.5%, care of data fudging on a par with the most famously corrupt governments ever, as well as the WARMEST MARCH IN U.S. HISTORY…

US Q2 GDP Expected to Grow 2.5% – CNBC

Next up, the UK, which also prints money at will, care of its decision to remain outside the Euro Currency. Given that its GDP growth is essentially ZERO, its inflation rate among the highest in Europe, and its banks the most insolvent on Earth, it is nothing short of remarkable that its stock market has not plunged

…but then again, the magic of MONEY PRINTING and MARKET MANIPULATION can be quite powerful…until, of course, it’s NOT!

U.K. Seen Avoiding Recession With 0.1% Growth in First Quarter

Then you have Germany, which cannot print its own money, but does have de facto control of the ECB due to its superior relative financial position (though absolutely, quite weak).

Sadly, a 0.9% growth rate is considered “strong” these days, enough so that capital from the PIIGS is surging into Germany, partly explaining how the DAX is only down 10% from last summer’s highs…

German economy bucks euro zone trend – 0.9% growth projected in 2012

And down the line, to France, where the CAC is down 25% because its economy is weaker, its debts greater, and its leverage in the ECB dwindling each day. Not only that, German banks own 90% of all French debt, essentially relegating France to a dutiful servant, soon to be FIRED.

After the May 6th election – when an extreme socialist takes office – you can bet the 0.7% projected GDP growth rate is dramatically downgraded, and don’t be surprised if France voluntarily withdraws from the Euro Zone.

France raises 2012 GDP Forecast to 0.7%

And ah, the uber-inept nation of Italy, the third most indebted on Earth despite having the eight largest GDP output and 23rd largest population. The Italian stock market is down 42% in the past year, threatening an all-out collapse as it prepares to race through its Global Meltdown II lows like a knife through hot butter…

…while it’s GDP contracts sharply, likely at far more than the projected 1.3% rate.

Italy 2012 GDP Contraction Seen At Twice Dec Forecast; 1.3% decrease anticipated

And then there’s Spain, down 36% from a year ago, and an incredible 18% this month, as it heads toward political, economic, financial, and social ANNIHILATION, care of the most inept government in Europe – which is quite the derogatory statement.

To think that Spain’s mortgage market was COMPLETELY UNREGULATED until 2010 is beyond comprehension

Financial Armageddon Approaches: Spain is About to Enter a Full-Scale Collapse

…but certainly explains how its housing bubble blew up twice as large as the U.S. real estate bubble destroying the world

…and why both employment and GDP were projected to plummet BEFORE its stock and bond markets were decimated this month…

Spain Forecasts 24.3% Unemployment In 2012, 1.7% GDP Contraction

Next we have Portugal, a complete basket case in every way, and sure-fire Greek lookalike in the coming months. Its stock market is down 35% this year…

…while its GDP is anticipated to plunge 3.3%, a number you can bet the ranch will be MUCH worse in reality

European Commission Revises Portugal 2012 GDP To -3.3%

…and rounding out Europe, the ultimate hemorrhage, Greece. The Greek stock market is down 60% this year – and 75% since late 2009 – as it prepares to be kicked out of the Euro Zone (if it doesn’t do so voluntarily after this month’s elections).

Yes, a 7.5% GDP plunge last quarter, which likely will continue falling until the nation breaks into - SADLY – civil war.

TABLE-Greek Q4 2011 GDP shrinks 7.5 pct y/y

As for the rest of the pathetic world, here’s another nation that controls its own MONEY PRINTING, the “Land of the Setting Sun.” Such UNPRECEDENTED MONEY PRINTING – even by Federal Reserve Standards – has enabled the Nikkei to only fall 7% this year, mostly due to the February 14th QE round that drove the Nikkei up 1,500 points. Half of that gain has been dissipated this month alone, with calls for new QE rounds already spreading…

…while GDP remains negative after 23 years of easy monetary policy, with no hope of EVER regaining its previous heights – or even close, for that matter.

Japan Q4 (March 2012) GDP revised up to -0.2 percent quarter/quarter

Then you have the “emerging economies, such as Brazil – which despite such “strength,” lowered interest rates twice this month. Its stock market is down 10% this year…

…and you can bet they won’t see the 3.2% growth projection disseminated by government PROPAGANDA…

Economists cut Brazil 2012 GDP view to 3.2% growth

And how about Russia, whose stock market was halted today with a 3% loss and never reopened. Its stock market is down 27% this year…

…despite what we’re led to believe is 4% GDP growth, which I’m sure is ENTIRELY due to soaring oil prices – which, in turn, negatively impact the rest of the economy…

IMF raises Russia’s 2012 GDP growth to 4.0 percent

Then there’s another basket case – India – whose MONEY PRINTING government is so reckless, they recently attempted anti-gold legislation to counter their own hyperinflationary policies, amidst a nation of citizens desperate to trade ALL their “rupees” for bullion. The Indian stock market is down 15% this year…

…despite the supposedly “strong” 7% GDP growth…

Making a breakout nation: Can India keep up 7% GDP growth

…that is nothing but a mirage due to 9.89% inflation, which has caused the “rupee” to plunge to multi-year lows.

Record inflation as food prices climb steeply – 9.89%!

And finally, the granddaddy of them all – the supposed “growth engine” of the world – China. Everything about China’s “growth” is a sham, from unproductive investment (“ghost cities,” useless bridges and roads, etc.) to surging inflation – care of the PBOC’s suicidal peg of the Yuan to the dollar – to the unscrupulous, centrally-planned economic data that likely has as much validity as the BLS’ bogus NFP employment reports…

China inflation rate edges up to 3.6% in March

The stock market of the “world’s growth engine” is down a whopping 21% this year, and 30% since peaking nearly three years ago

…demonstrating how their 8.1% “growth” is the world’s biggest economic con job.

China GDP: Economy slows to 8.1% growth rate

There’s a good reason why China coup rumors have recently surfaced, as you can bet social disenchantment is on the verge of boiling over. It’s not easy to feed 1.4 billion people with a largely communist economy – let alone amidst a global recession and popping domestic real estate bubble – and I can GUARANTEE China will not “decouple” from the rest of the dying world.

Andy Lees On China Coup Rumors

As you can see, the only nations with stock markets that haven’t imploded are those with the top MONEY PRINTING (and PPT) abilities, and even some of those have been decimated. The United States remains the undisputed king of MONEY PRINTING and MARKET MANIPULATION, but it won’t be long before such “skills” have as little impact as in late 2008. As for the rest of the world, we are already back in late 2008, with things about to get A LOT worse.




Companies Mentionned : Bullion |
Data and Statistics for these countries : Brazil | China | France | Germany | Greece | India | Italy | Japan | Portugal | Russia | Spain | All
Gold and Silver Prices for these countries : Brazil | China | France | Germany | Greece | India | Italy | Japan | Portugal | Russia | Spain | All
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Andrew Hoffman was a buy-side and sell-side analyst in the United States (including six years as an II-ranked oilfield service analyst at Salomon Smith Barney), but since 2002 his focus has been entirely in the metals markets, principally gold and silver. He recently worked as a consultant to junior mining companies, head of Corporate Development, and VP of Investor Relations for different mining ventures, and is now the Director of Marketing for Miles Franklin, a U.S.-based bullion dealer.
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