I know the negativity is taxing, especially for those of you who think I am dead serious. Lighten up. I am simply stirring the cauldron, while practicing black magic.
Here are some interesting debt/GDP stats.
United Steaks: 101%
Jamaica: 145%
Italy: 127%
Ireland: 117%
Belgium: 98% (almost!, getting there!)
Greece: 156%
Portugal: 124%
Japan: 212%
Lebanon: 139%
Singapore: 98% (close call!)
In addition to the growing mountains of debt, about a dozen countries have seen their currencies drop double digits versus the dollar, as well as see their sovereign yields shoot higher, appreciably. What does it all mean? ARMAGEDDON?!!
Not quite. It means that the primary goal of central banks will be to keep rates down, no matter the cost. If it means throwing the stock market into the garbage, in order to scare money into bonds, so be it. In order to sustain our lifestyle of grandiose entitlements, it’s important that we borrow money, cheaply, and spend as much as we like. Theoretically, this should be a race to the bottom, causing massive inflation, bullish for gold and bit coins–but NOT maxcoins. However, since 2011, the only asset that has been appreciating is stocks, worldwide.
Gold, silver, oil, natty, coal, wheat, cotton, sugar, corn, uranium: ALL BEARISH.
Let’s be frank with one another, shall we? Without the world central banks flooding the markets with liquidity, we’re all toast. But they are flooding the markets with liquidity and there isn’t a better place to make money, other than stocks. There are pitfalls, especially when looking at some of these earnings debacles. But, ultimately, the only game in town is stocks and the only balls on the table, strong arm, guarantee is that central banks will smash your equity holdings to pieces–in order to preserve this wonderful status quo.
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