Global Central Banks have run out of ‘ammunition’. Since March 2008, Central Banks have cut interest rates 637 times and have purchased a staggering $12.3 trillion dollars’ worth of assets. There is not much more that they can do, and currently, the next ‘great crisis’ is upon us.
The global economy and the global financial system will continue to weaken before our very own eyes.
If we do experience a major “black swan event” that takes place, it will cause the bottom of the stock markets around the world to fall out, and this could happen at any given moment.
Chinese exports have seen their sharpest drop in almost seven years, adding to concerns over the health of the worlds’ second largest economy. Exports have dropped sharply by 25.4% from the previous year, while imports fell 13.8%. This weak data comes on the heels of Beijing registering their ‘ slowest economic growth in 25 years’.
The February 2016 trade figures reflected, are likely to raise new fears over China’s struggles to maintain economic growth, while implementing reforms and trying to shift towards more services and domestic spending. China was considered ‘the engine of global growth’.
The FED has been looking at the ‘illusion of recovery’, but not the real deal. If this were real, we would not have 100 million adult Americans without jobs. There are currently 46 million citizens on foods stamps as compared to 18 million that were in 2000. Thirty-five percent of the population is receiving some form of public assistance. For so many years, Global Central Banks have been manipulating the financial marketplace with their ‘monetary voodoo’. They have convinced investors, around the world, to invest trillions of dollars into equities; artificially inflating the ‘equity asset class’. By creating money out of ‘thin air’ and pumping it into the financial system it devalues currencies and creates an artificial sense of a true economic recovery which so far has not been realized.
