This Financial “Seismograph” Signals A Monetary Earthquake

• This Financial “Seismograph” Signals A Monetary Earthquake
  by Secular Investor, www.zerohedge.com  
  …. However, we are in the midst of a monetary bubble, driven by an explosion of the monetary base and an implosion of interest rates. Paper assets, as opposed to hard assets, have been pumped up by the liquidity that is being funneled into the economic system and the markets.
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  But exactly that perception that nothing can go wrong is so dangerous. The number of divergences in the system is becoming mind-boggling, a red flag for secular investors.
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  Economic activity is not reflecting the performance of the stock market at all, or vice versa. The headline figures all seem to tell a recovery story, like consumer confidence which is back at pre-crisis levels, or the unemployment rate, which is seemingly ok. Nothing new so far.
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  However, deepdiving into the world of economic data proves otherwise. Case in point: close to 50 economic data points which are highlighted in this “chartfest” (from Ed Yardeni) learn how shaky the recovery is. We have chosen three charts to justify our point of view.
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  The global growth barometer has collapsed in 2014. It was undoubtedly driven by the oil market collapse. Low commodity prices are no sign of economic health.
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  Here is one scenario that could be playing out right here right now: a weakening economy with rising inflation. Impossible? Everyone thought so in the 70ies. But “stagflation” could be back, and we would urge you to not judge until you have read the following two facts.
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