The Money Runs Out

As long predicted by this blog the money is running out. This fact has now been registered by Ambrose Evans-Pritchard, in his Telegraph column this morning and will eventually percolate to the print media and finally the broadcasters in repetition of the pattern now well established in the lead up to this slump. Some quotes: The "real" cost of capital is rising as the slump deepens. This is textbook debt deflation. It was not supposed to happen...... Where is the money to come from? China, the Pacific tigers and the commodity powers are no longer amassing foreign reserves ($7.6 trillion). Their exports have collapsed. Instead of buying a trillion dollars of extra bonds each year, they have become net sellers. In aggregate, they dumped $190bn over the last fifteen weeks.... As they dither, the world is falling apart. Events in Japan have turned deeply alarming. Exports fell 35pc in December. Industrial output fell 9.6pc. The economy is contracting at an annual rate of 12pc. "Falling exports are triggering a downward spiral of production, incomes and spending. It is important to prepare for swift policy steps, including those usually regarded as unusual," said the Bank of Japan's Atsushi Mizuno.... Please read the whole article, but be prepared to be afraid!