Perspective

Lets step back a bit and take a look at the much bigger picture.

Vacancies in Beijing via Zerohedge.

So, broadly speaking: US: 2.5 million available homesBeijing – one city in China – has 3.8 million??

That is all.

What is the impact here of the New Chinese Century failing on a scale this grand?

Advertisements

Time is indeed growing shorter

Based upon several macro indicators, it looks like time is growing shorter – I would likely guess months to some economic event that triggers misery across our Once Great Republic.

Keep the bigger picture in mind as you continue to build tribe, and top off stores.

The Reality, It Burns

From Zerohedge:

The backdrop for all of this should also be squarely in your sights. The world came out of the American Financial Crisis based upon the expansion in the monetary supply. A huge amount of the stabilization since then and one giant reason for the corporate profits that we have had in America has been based upon this stimulus and this is largely ignored in the press which credits everything in the world but the stimulus for our better economic conditions.

It will continue on until it doesn’t. When that happens, the new reality will be the norm. How you plan to adjust and thrive in this new reality is up to you. Plan now. Time is indeed short.

More later.

The Not So New Newspeak

Orwell reference for those of you who didn’t read the book.

Article which motivated this post.

The timeless paradox of Schrodinger’s Cat, though after reading this, I’m beginning to question Quantum Theory as a whole. Lest we digress…

The bit I’m referring to:

Just spent a record high amount at the gas pump for this time of year? The BLS says you didn’t, and after all when it comes to reality, the BLS has a right of first refusal. The just printed headline CPI came at 0.4%, just in line with expectations of 0.4%, while core CPI of 0.2%, missed expectations of 0.3%. That’s right: not only is inflation meaningless, it is less than expected, leading to surge higher in stocks, bonds and the EURUSD. As for those items which are once again soaring in prices such as food and gas? Luckily, those can be hedonically adjusted by everyone to virtually zero. (wait? You still pay your mortgage or rent? Sucker!) Remember: the iPad is deflationary.

While some of this is like the political numbers game that the news outlets constantly play, there is, as always a shred of truth at the core. That truth is simple: Your currency is decreasing in value, sometimes exponentially, and therefor, commodities you use to, you know, live, are increasing in price.

It is true that economics can get complicated, this however, is not one of those times.

Dear readers, this impacts your way of life. This will impact the battle space going forward, and how your tribe fails or succeeds.

A government that will blatantly lie through one of its functionaries today when things are still pretty good, will magnify that to an order of magnitude when things get worse. Newspeak is the order of the day, and will be the vision of the future.

To clarify something I feel is critical regarding why I post so much econ related content:

  1. There is a wealth of fodder about it.
  2. It will impact you & yours going forward.
  3. It is the biggest picture view I can find.

I believe we are about to go through at least two decades of misery – globally. Life in America is going to radically change. The decadence we have known since we destroyed global industrial production during WWII will end. Life will be harsh, and an entire generation is likely to be decimated.

It is up to us to mitigate that damage by understanding the trajectory we are on and adapting solutions to counter that damage.

The ‘first right of refusal on reality’. Think about that dear readers. Times are still good. I would venture to guess that if you are reading this post in a western nation, you went to sleep in a bed last night with your hunger and thirst satiated. Again, think about what that propaganda would look like when unemployment is at 30% and inflation is spiraling out of control.

 

Denninger Sends

From one of yesterday’s tickers:

Take a look at the FVX (5yr Treasury Yield) and you see a materially-more-frightening thing.  Yields have backed up from 0.7% to 0.97%.  Sounds trivial.  It’s not — it’s a huge move, close to 40% on yield since the end of January!

Yep.

This matters because the Federal Government’s deficit spending in February is what has been driving the “improving” economic numbers, just as it has been for the last three years.  This is a pincer move; while yields have to normalize if and when they start to move in this direction that move will also choke off federal deficit spending capacity.

The Depression featured this sort of attempt at “repression” by The Fed and government and it was unsuccessful.  It looked successful for a while, but eventually the math caught up with them and we slumped back into the morass.  Our “exit” was war; we blew up all of our industrial competitor’s output capacity and by doing so rejiggered demand.  That’s a rather bleak way of looking at what was “death by all forms” for the common man, but from an economic perspective that’s what happened.  But “war as a solution” since that time hasn’t “worked” (and in fact can’t) since small-ball wars run into the broken-window fallacy; you can’t “win” by breaking windows as the economic damage from a war exceeds the benefit.  For war to be a “winning” strategy you have to literally flatten your economic competitors so that even with the economic damage you wind up with a net benefit.

Wall cloud indeed.

Getting a massage simply does not use as much steel as building an airport.

See Zerohedge.

Real content coming soon, I promise…

In Credit Suisse’s view, China was the key factor behind the global commodity supercycle. After a period of economic slowdown, all eyes are on China, hoping that the middle kingdom can return to its might in commodity demand.

Interdasting huh?

Econ on a Monday

Following up on a post from last week regarding the same…

See Zerohedge here.

While the implications for stocks in general are extensive and were previously discussed, it is worth noting that the Israel Monetary Authority now has a big MTM loss on its Apple investment (although as Greece and the ECB have taught us, a central bank can book a “profit” even when a given security is trading at an all time low, and completely irrelevant of what one’s cost basis is). And where Israel is, it is quite certain that other central banks have boldly ventured as well. So how long until the Fed has to open an FX swap line with Tel Aviv to bailout Stanley Fischer in this latest of hare brained schemes to keep the Ponzi system going? And how long until it has to be extended to the nearly 250 hedge funds who are now also long the stock, with the universe of incremental buyers disappearing by the day? What is most stunning is that Apple dipped a modest 3% intraday… Which just happened to be the biggest decline since November 2010.

Uh, oops?

Guys, you do realize that a foreign central bank of a nation who is essentially a global power just took a hit because the new iPad3 announcement (or whatever) didn’t make the street happy, right?

As mentioned before, this is just another bucket in a long line of buckets in which they are trying to dump fiat currency in order to inflate some kind of bubble where there wasn’t one before.

Of course, as with previously disastrous information related to the economy, this will go unnoticed and unreported by any media outlet that is not Zerohedge or a blog. This is akin to the Fed monetizing the debt back in 2008/2009. Only this time, you will see noticeable results in the very short term.

This is some seriously scary excrement.