Juggling Dynamite

The China story lent great hope and exuberance to global markets 2002 to 2008. Many talking heads tried to revive it after the great recession on talk of how the Chinese government and central bank would not tolerate a slow down. If only it were that simple. Toxic levels of debt have been added over the past 5 years trying to force growth. Now that debt is having a predictable weight on the Chinese economy and global growth. See this excellent summary graphic for a big picture view. Debt giveth and then debt taketh away.

For Canada’s TSX: how low can it go? My partner, Cory Venable’s latest update offers some targets to watch.

Danielle speaks with former Fed Reserve official and QE bond buyer Andrew Huszar’s on why QE has not worked and what is likely next. You can see Andrew’s original op-ed piece in the Wall Street Journal here: Confessions of a Quantitative Easer. Also see www.cliffkule.com

Here is a direct video link.

Ben Bernanke presided over his final committee meeting as chairman of the Federal Reserve this week. The BBC reviews the continuing decline in emergency markets and currencies as speculative capital floods back to the US dollar and the US treasury market.

Andrew Huszar, Senior Fellow at the Rutgers Business School, offers his view on the impact further tapering could have on the global economy. Here is a direct audio link.