Some notes (Nothing specific here, but good background):
2015 saw the greatest amount of mergers and stock buy-backs in history. The commodity
index is at 1999 levels and falling.
People don’t invest in the stock markets anymore and so haven’t really reacted to the January crash. But because the market retracement reflects a global recession, the people will react. We are seeing the start of massive layoffs around the world. Christmas sales stank and that’s why we’re not hearing anything about the season.
Quantitative Easing (QE) caused a worldwide bond bubble, especially in the emerging market economies. 70% of the junk bonds in America are oil and mining related. All collapsing. Internationally, the big “dry goods” ships need $20k.day to break even but they are sending them out at $4.3/day due to their desperate need for cash. Brazil has about 200% inflation.
Unrest in places like Saudi Arabia can’t be paid off at current oil prices. Spreads its influence into Europe through the refugee crisis. And America has the immigration crisis from Mexico due to the terrible conditions there.
It’s all connected. China’s bubble was huge and the present contraction is dragging all Asia down.
The currency crash worldwide is unprecedented, but that’s not in the news. All the emerging market debt must be paid back in dollars, but the emerging market currencies are all down. The bond market will implode.
QE4 and negative interest rates are possible in the U.S. but the manipulators are out of bullets. They will make something up. The Obamacare system is a disaster. The Bloods and the Crypts are running Washington/Wall Street establishment and the world is descending into currency wars, trade wars, and world war.