GEAB N°81: 2014 – World Political Chaos, Statistical « Smog », Risk that the Financial Planet Explodes… But Solutions for the Future Continue to Emerge!
- GEAB N°81 is available! 2014 –World political chaos, statistical « smog », risk that the financial planet explodes… But solutions for the future continue to emerge!
by http://www.leap2020.eu/
Historians, who usually consider that the 19th century runs from 1815 (Waterloo) to 1914 (the First World War) would certainly define the 20th century by the period 1914-2014, ending with the year in which the old system dies whilst a new one emerges. In this New Year 2014 welcome, then, to the 21st century!
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We have symbolised 2013 as “the first steps in a chaotic world after” (1).
A year which was in effect the new century’s zero year and at the end of which solutions were emerging from all sides. At the beginning of 2014 the spotlight is henceforth on the Eurozone, China, Russia and the BRICS where the tools to shape the “world afterwards” are being designed with incredible rapidity: the “world before” is handing over to “the world afterwards”.
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Nevertheless, there is a permanent risk of an explosion from the overheated financial planet driven by the incredible US imbalances… unresolved or little resolved. And the current transition period, certainly hopeful, is highly dangerous nevertheless. One danger is the statistical “smog” (2) which will probably characterise the year: first, the US economic and financial indices have lost any sense of direction by dint of being manipulated in order to hide the catastrophic reality; and second, the emerging world’s tools of statistical transparency aren’t sufficiently reliable to properly throw light on the reality. A collapse of visibility ongoing for several years on the one hand, the beginning of an organised transparency which the world economy needs to plan strategies on the other, in 2014 we are on statistical understanding’s trough of the wave. And that won’t be without its consequences.
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Layout of the full article:
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1. STATISTICAL « SMOG »
2. THE RISE IN INTEREST RATES AND THE COLLAPSE OF US REAL ESTATE
3. THE END OF STOCK EXCHANGE EUPHORIA?
4. POLITICAL CHAOS
5. 2014, THE CLEAR BEGINNING OF THE END OF THE OIL ERA
6. SOLUTIONS ARE ON THE MARCH
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This public announcement contains sections 1&2.
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STATISTICAL « SMOG »
The current period is particularly difficult to analyse. Central bank liquidity injections have hardly any historical equivalent and act insidiously like morphine; the stock exchanges move inversely proportional to countries health; finance and derivatives are completely out of control; the West and the US in particular are trying to hide their disastrous situation through benchmark signals which no longer say anything (like the unemployment numbers)… We have already analysed this “statistical fog” in the GEAB N° 73: the old world’s compasses are broken.
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Markets bottle-fed by the Fed and not wanting to abandon the Dollar paradigm as long as there is any blood left to suck is largely responsible for this blindness. But just as the frog in boiling water doesn’t feel the temperature rise until it’s too late, having broken the thermometer is certainly convenient for maintaining the illusion but raises a suicidal trend: if the exit is already difficult to find in broad daylight, it will be impossible in the dark. As we have already said, the Eurozone has been fortunate to have been in full daylight for several years thanks to the “Euro crisis” and isn’t hiding its difficulties with a lorry load of liquidity (3), luck which isn’t benefiting the United States which is going blindfold to the precipice as we will see.
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read more!
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