Tuesday, December 16, 2014

Full Krugman Retard

Zero Hedge charts the carnage today.  

Is this the end?  I don't know.  I doubt it.  Ever watch the movie "The Hitcher" with Rutger Hauer?  It's never over.  Until it is.

My title comes from a comment on the linked article from TruthInSunshine:
China + Japan (now both in full blown economic contraction as measured in real terms) are leading the way in what is the next global economic crisis, although they'll be getting a huge assist from the EU (PIIGS+FUK), India, Russia, Brazil, Australia, Canada...and the U.S.
This is what happens when China boils its books, Japan goes Full Krugman Retard, and the U.S., UK and much of the EU block of Member States wipe out the formerly large % of their consuming population that used to comprise their middle class.
Retail massacre (brick & mortar AND e-tailers) happens like never before after this Christmas, then the historic real slam-down in equities, bonds and other credit instruments floated on a sea of CB liquidity follows.
There is so much empty air propping up all "asset" valuations (especially vaporware equity and HY bond asset classes), it's like a house built on a foundation of whipped cream (or cards)...
Worse than 1999, worse than 2007...we now not only have overly-indebted slaves by the record full, and massively over-inflated equity/bond/RE valuations, but the middle class has already been decimated.

I think he sums up my feelings about the situation.  I'm not betting against the big boys, though.  They have options I can't imagine.  War in the Ukraine?  War with Iran?  The Russian Navy blockading the Strait of Hormuz?  


  1. Well, looking over the past few years of sharing gloom and doom with you, this looks to be the biggest and most varied basket of doom.

    I thought a Greek default would knock down the house of cards a few years ago but what is happening now seems bigger and is multi-pronged.

    Too bad really, we were benefiting from the oil price drop. Best economic trend for us in a long time.

    I wonder if, by Friday it will be worse or will the panic selling and buying have settled down. If it is worse I'm gonna call a FULL BORE LINEAR PANIC!

  2. I like low gas prices, too. I don't drive as much as I used to, but it's nice to fill up the truck without wondering if I'll go over a hundred bucks.

    Greece doesn't have nuclear weapons, and not many tanks and stuff compared to Russia. China would like to take back Taiwan while we're not paying much attention. It could get really wild really fast.

    I'm pretty well stocked up on coffee, but I might lay in some more. The pantry and the freezer are pretty full. And I just got a really good deal on some buckshot -- about $8 for a box of 25 -- I got ten.

  3. For protecting your coffee I assume?

  4. Absolutely. Imagine a morning when all the addicts don't get their fix. The headlines will be something like "Coffee Withdrawal Leads to Bloodbath".

    This is really "practice" buckshot. It isn't buffered like Remington, but at 12 or 15 yards, it's not a bad pattern. It's loose but adequate at 25 through a Modified choke.