Home > Miscellaneous Musings, Predictions > Now I understand!

Now I understand!

I was wondering why there were seismic shifts in the tectonic plates.  $A down.  Emerging markets pummelled.  Stocks plummeting.

China’s credit fuelled boom is collapsing.  See here.

Economists like to say there is a “disorderly” breakdown at the end of a credit-fuelled boom.  I like to say the Ponzi scheme stops and the shit hits the fan when everyone realizes asset prices are about to collapse and someone is going to be left holding the bag (of debt).

China is about to collapse.

OK, well it all makes sense if that happens.  US bonds will go up.  Gold will go up.  Everything else will die.

Simple.

I was wondering what was going on.  Now I know.

Back to sleep everyone….

 

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