Juggling Dynamite

Price deflation is the natural outcome of mammoth excess capacity and shrinking demand from aging, indebted consumers.  Lower asset values are a key part of the cure needed to fix global imbalances and restore rational investment math and consumption ability once more for the middle class.

But for bankers…this is a nightmare of their own foolish, greedy design.  Rate-cutting powers now gone, and future consumption already spent as demand the past few years, the next global recession is advancing to force a much needed cleansing of reckless policies and players.  Couldn’t happen to a more deserving bunch of folks…

Two more rate cuts and more government stimulus efforts over the past 4 months, and still the Chinese economy–weighed by mind-boggling debt and inventory–continues to slow. This massive mean reversion phase has been well earned by the equally massive hyper-investment period that went before it, courtesy of the global debt bubble. We should now expect equal and opposite in the other direction. Slower growth is the new normal, not a phase. See, China: Industrial output, fixed investment, property sales and retail sales miss forecasts

Growth rates for industrial production, retail sales and investment in factories and other fixed assets in January and February came in significantly below economists’ expectations, while housing sales continued their swoon, according to government data released Wednesday. China releases combined data for January and February to limit distortions caused by the long Lunar New Year holiday, which falls within those months but on dates that vary from year to year.

Industrial production, which is seen as a proxy for the country’s economic growth, grew 6.8% in the first two months, its lowest level since the 2008 financial crisis. That is down from 7.9% in December and well-short of a median forecast of 7.6% from a Wall Street Journal survey of 14 economists. Factories were hit by overcapacity, high inventories and tight financing, economists said.

The overall weak performance so far in 2015 showed that the economy was still weighed down by a housing glut, debt and industrial overcapacity…

As the consumption-on-debt-bubble deflates, many people are evolving their life plan with a fresh focus on less stuff, no debt, more savings, peace of mind, and plenty of options…ah yes, and meditation, instead of noise.

Poker pro Faraz Jaka has accolades to his name and millions in earnings. He’s also homeless, and chooses to couch surf around the world. Here is a direct video link.

Max Fletcher rose from an entry level position to a CFO, all while maxing out his 401k. Now, he and his wife are enjoying their ideal retirement: sailing around the world. Here is a direct video link.