Juggling Dynamite

Trillions in central bank printing and banking “rescues” by taxpayers, and still global stock markets are falling back to 10-year lows. This is what secular bears look like. All the money wasted in trying to pump up over-valued asset prices only holds back meaningful recovery in the economy and delays repricing to attractive investment levels. Historically after 3 or 4 of these print and fail cycles, the money and political will to intervene runs out, and finally valuations succeed in re-seting to generational lows.
Here is the Nikkei since 2002 (source CNBC.com):

The Italian market since 2002 (source: CNBC.com):

Spain since 2002(source CNBC.com):

China since 2002(source: CNBC.com):
All of which paints a rather ominous picture for the fate of still “stimulus-hoped” US stocks (and the few other markets still well above prior cycle lows):

Source: CNBC.com

“There are forgotten corners of this country where Americans are trapped in endless cycles of poverty, powerlessness, and despair as a direct result of capitalistic greed. Journalist Chris Hedges calls these places “sacrifice zones,” and joins Bill this week on Moyers & Company to explore how areas like Camden, New Jersey; Immokalee, Florida; and parts of West Virginia suffer while the corporations that plundered them thrive.”

…Hedges also describes the difference between truth and news. “The really great reporters — and I’ve seen them in all sorts of news organizations — are management headaches because they care about truth at the expense of their own career,” Hedges says.

He is a Pulitzer Prize-winning journalist who has reported from more than 50 countries. He spent nearly two decades as a foreign correspondent in Central America, the Middle East, Africa and the Balkans, including 15 years at The New York Times as a foreign correspondent and bureau chief. Hedges left the Times shortly after they issued him a formal reprimand for publicly denouncing the 2003 invasion of Iraq.

Here is a direct link.

As the Euro falls below 1.21 versus the greenback this morning, the US dollar index moves toward a new cycle high at 84. Oil, gold and everything else considered a “risk trade” are down hard while the US 10-year Treasury yield falls to 1.40. Capital is flooding out of a hemorrhaging Euro zone desperate for safer parks. Traders will continue to bet on more liquidity from global central banks, but the truth is gradually getting out: central banks cannot overrule a recessing global economy. The teeter totter is asserting itself once more.