Best of the Week
Most Popular
1. Climate Change Mass Extinction - Birds, Bees and Bugs: Going Going Gone - Richard_Mills
2.A Purrrfect Gold Price Setup! - Peter_Degraaf
3.Who Finances America's Borrowing? Recession Indicator for Independent Thinkers Part 2 - F_F_Wiley
4.America’s One-sided Domestic Financial War - Raymond_Matison
5.Gold Price Summer Doldrums - Zeal_LLC
6.Two Key Events Will Unleash Gold - Jim_Willie_CB
7.Billionaire Schools Teacher in NAFTA Trade Talks - Richard_Mills
8.Get Out Of Crypto Cannabis Bubble Before It Pops and Move Into Bargain Basement Miners - Jeb_Handwerger
9.Stock Market Could Pullback for 1-2 weeks, But Medium Term Bullish - Troy_Bombardia
10.G7 Chaos, Central Banks and US Fed Will Drive Stock Prices This Week - Chris_Vermeulen
Last 7 days
Trumponomics Stock Market 2018 - The Manchurian President (1/2) - 21st Jul 18
The Death of Japan's Real Estate Dream - 21st Jul 18
SMIGGLE Amazing Mega Shopping Haul, Pencil Cases, Smigglets and Giant Back Packs! - 21st Jul 18
Cayton Bay Beach Caravan Park Holiday - What's it Like? - 21st Jul 18
Gold Stocks Investment Wanes - 20th Jul 18
Diversifying Your Stock Investing Strategies is Smart Investing - 20th Jul 18
Custom Global Stock Market Indexes May Be Sounding Alarms - 20th Jul 18
S&P 500 Just 2% Below Record High, But There's More Stock Market Uncertainty - 19th Jul 18
Stock Market Technical Picture - 19th Jul 18
Gold Market Signal vs. Noise - 19th Jul 18
Don’t Get Too Bullish on Gold - 19th Jul 18
Bitcoin Price Rallies to Upper Channel – What Next? - 19th Jul 18
Trump Manchurian President Embarrasses Putin By Farcically Blowing his Russian Agent Cover - 19th Jul 18
The Fonzie–Ponzi Theory of Government Debt: An Update - 19th Jul 18
Will the Fed’s Interest Rate Tightening Trigger Another Financial Crisis? - 18th Jul 18
Stock Market Investor “Buy the Dip” Mentality is Still Strong, Which is Bullish for Stocks - 18th Jul 18
Stock Market Longer-Term Charts Show Incredible Potential - 18th Jul 18
A Better Yield Curve for Predicting the Stock Market is Bullish - 18th Jul 18
U.S. Stock Market Cycles Update - 18th Jul 18
Cayton Bay Hoseasons Caravan Park Holiday Summer 2018 Review - 18th Jul 18
What Did Crude Oil - Platinum Link Tell Us Last Week? - 17th Jul 18
Gold And The Elusive Chase For Profits - 17th Jul 18
Crude Oil May Not Find Support Above $60 This Time - 17th Jul 18
How Crazy It Is to Short Gold with RSI Close to 30 - 16th Jul 18
Markets Pay Attention Moment - China’s Bubble Economy Ripe for Bursting - 16th Jul 18
Stock Market Uptrend Continues, But... - 16th Jul 18
Emerging Markets Could Be Starting A Relief Rally - 16th Jul 18
(Only) a Near-term Stock Market Top? - 16th Jul 18
Trump Fee-Fi-Foe-Fum Declares European Union America's Enemy! - 16th Jul 18

Market Oracle FREE Newsletter

5 "Tells" that the Stock Markets Are About to Reverse

Humans, A Smart Species?

Politics / Social Issues Apr 07, 2014 - 03:21 PM GMT

By: Raul_I_Meijer

Politics

And once again the markets are happily and excitedly awaiting more free zombie capital from a major central bank, this time the ECB. Of course this is capital the markets, judging from where stock exchanges find themselves, absolutely don’t need, but, you know, gift horses have foul breath and all that.


It’s some 15 years ago since the dotcom bubble started to burst, and half that long since the US (and Spanish, and Irish) housing bubble began to show what it was truly made of. So we’re due, and what do we find ourselves with today? Bubbles as far as the eye can see that everyone denies are bubbles. S&P, London housing, tech, biotech … No, Tesla and Netflix and Twitter are solid proof that it’s different this time, and companies don’t need to make an actual product, or even money, to be valued through the rooftops. Right? Oh, sweet Jesus…

I never see anyone talk about this, but the biggest reason why all banks should be fully restructured, all assets and liabilities, is not even, though it’s certainly true, that they are too big, that they have too much debt, or that they prey upon society, but it’s that restructuring bank debt will chase zombie money away all across the financial markets. That is long overdue.

All those QEs lead to humongous and growing distortions of the economy you and I have to live in. And since we have no access to the funny money, but it does get used to buy real assets, like land, food, water, at insanely bloated prices, it is hugely destructive to the world we need to survive in, to our future ability to survive. Whoever bought into these basic human needs at highly inflated “values” will be looking for a “healthy” return long after you and I will no longer be able to afford them. This will lead to severe human suffering, and only because we, as a society, refuse to be honest.

It’s not just some vaguely defined elite, it’s you too. You too are hoping for recovery, now, with your wealth intact. And it’s the Chinese who’ve managed to get hold of part of the $7 trillion or so Beijing stimulus, and that’s before it was leveraged (a scary thought indeed!), and use it to buy US land. It’s all zombies all the way down. And there’s no way that’s not going to crash.

As long as banks don’t have to fess up to their losses, lots of other parties don’t have to either. That’s why there are so many people and institutions who label themselves “investors”, and often even borrow to buy stocks, who are just as much zombies as the banks are. Their “capital” would be wiped out faster than an HFT flash if we would start being honest about what things are worth. But our governments and central banks have decided that we’re going to lie to ourselves up to some undetermined point in the future, when our economies are supposed to reach escape velocity, when, to put it in other words, our lies will become the truth.

The past 6+ years of attempts not to come clean are tremendously damaging to society at large because they for instance keep the hopes alive for recovery and growth, notwithstanding the fact that the whole charade facade is based on the refusal to let actual and honest markets determine what assets are worth. And how much more obvious does it have to get that you can and will never ever restore faith and confidence in markets as long as you keep distorting them with these neverending interventions aimed at, well, distorting them even more?

We lie to ourselves, as a society and as individuals, on a constant basis because we (have been led to) believe that we have no choice but to forever chase an illusive entity named economic growth that we don’t even need at all. We’re rich enough. More than rich enough.

The growth illusion is more destructive than anything in the history of the planet. And we know it, we – can – see it every day in the world around us. And we know, too, that we don’t need any more growth. What do any of us lack in a material sense? We also know that nothing can grow forever, and the cancerous tumor metaphor is as obvious as it is well-known. But if you can find one single politician or analyst where ever you live who doesn’t want more growth, please let me know.

A smart species? Us? I don’t see how, if we were, we could find ourselves where we do. We destroy the only reality we have, this planet, to chase illusions we don’t even have a real use for. I think I’ve said this before: the only thing that makes us different from amoeba, when provided a surplus of energy, is that we can watch ourselves use it to destroy the very things need to live. And be aware of it. So much for awareness. And for being smart.

If we really were smart, we’d stop this madness, starting with the bank bailouts and the voting for whoever promises the rosiest gardens and the biggest profits. There must be a better reason for us to have been put on this earth than to chase profits and eternal growth and faster cars and bigger TV screens and one mile high buildings and even deadlier weapons to kill one another with. Because if there’s not, or even just if we can’t find that reason, we should say goodbye and leave this humble abode for the incredible beauty around us to survive in.

By Raul Ilargi Meijer
Website: http://theautomaticearth.com (provides unique analysis of economics, finance, politics and social dynamics in the context of Complexity Theory)

© 2014 Copyright Raul I Meijer - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.
Raul Ilargi Meijer Archive

© 2005-2018 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules