-- Published: Thursday, 26 February 2015 | Print | Disqus
By Graham Summers
The global economy is literally imploding.
Investors believe that China’s economy is chugging along, but the non-fraudulent data says otherwise.
China’s GDP numbers are a total fiction. And Chinese Government officials even ADMIT it! Back in 2007, no less than current First Vice Premiere of China, Li Keqiang, admitted to the US ambassador to China that ALL Chinese data, outside of electricity consumption, railroad cargo, and bank lending is for “reference only.”
As RBS Economics notes, China's rail volumes are collapsing at a rate
not seen since the Asian Financial Crisis. The Chinese economy is literally collapsing faster NOW than it did in 2008.
As far as Europe goes, Mario Draghi just admitted in the EU Parliament that the ECB has only one tool left at its disposal: QE. After that, there is nothing left in the tool box.
And despite announcing QE a few months ago, Europe is lurching towards deflation. Greece’s banks are imploding while the Ukraine is moving rapidly into hyperinflation.
The Euro has taken out critical support and is likely going BELOW parity with the US Dollar.
In the US, as Societe General’s Albert Edwards has recently noted, US corporate profits and sales are rolling over in a BIG way. The US Dollar rally is crushing profits across the board not just in the energy sector.
Stocks are set up for an absolute CRASH. They are pricing in ECONOMIC PERFECTION and the reality is that the global economy is imploding.
And the system is just as fragile as it was in 2008.
1. Corporate debt is back to 2007 PEAK levels.
2. Stock buybacks are back to 2007 PEAK levels.
3. Investor bullishness is back to 2007 PEAK levels.
4. Margin debt (money borrowed to buy stocks) is at 2007 PEAK levels.
5. The leveraged loan market is flashing major warnings.
6. Corporate insiders are dumping shares at a pace not seen since the TECH BUBBLE TOP
7. Numerous investment legends have warned of a coming crash.
8. Investor complacency is at a record LOW.
9. The Fed has confirmed QE is ending this week, so the juice is cut off for now.
It is very likely that this year will go down as the end of the great Central Bank rig of the last six years. The time to prepare is now, before the big collapse hits.
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-- Published: Thursday, 26 February 2015 | E-Mail | Print | Source: GoldSeek.com