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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.
PROTECT
YOURSELF, and do it NOW!
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