I never really believed that there ever was an economic recovery post-blitzkrieg 2008/Q1 2009. Let me be simple and pat as to why.
1. Much of the socalled recovery was due to huge government spending binges designed to prevent the tottering global economy from keeling over the precipice. If the US Treasury had not crafted that trillion dollar stimulus, if the British Exchequer did not loosen his purse strings and go on a drunken revelry, the major economies would have gone kaput and we would have had a scenario akin to what I posted in this blog last year.
2. If the Chingkiie thugs manning the till had not titillated their economy's cunt with that 500billion package, they would have been staring at a bone dry , unlubricated blackhole impervious to any cockthrusts.As it is, they overstimulated Miss Economy's cunt with cheap licks and have inadvertently elicited a copious orgasm that threatens to veer out of control as a Japan 80s style asset inflation bubble abetted by a US type 2004-2006 easy money regime and Malaysian 90s hot money inflow experience pushes aset values 100x the eranings of the pig farmhand and the stinky sewatshop denizen.
Yes borrowing in China is somewhat akin to the time when even a hobo in Calif could get himself a swank mansion in Malibu courtesy of Freddie Mac, Fannie Mae, Bear Sterns et al and much of their local councils are burning paper money for their ancestors in Pig Hell. Another thing that need to be understood is how the Chingkie conned us all, with his devalued currency propping up his exports at the world's expense.
3. The rest of the world just hopped on the bandwagon as profligate Keynes took over from free market Friedman as the boffins gibbered in fright at the impending holocaust when risk aversion became the latest perversion in town.
And so driven by these massive infusions of government largesse, a pumped up Atlas took it upon himself to bear the global economy on his steroid fueled shoulders, little expecting that a Grecian rat would squeak at his feet and make him shrug to the delight of Ayn Rand. I reckon that Greece will be the start of many sovereign debt defaults and plausibly the unraveling of the Euro zone itself.
No, there was never a recovery, only a tall tale by Obama, the global Anwar. How do I know? Well, working on the graveyard shift, watching the Dow crawl across my screen- electronic messages, reports and analysis pouring into my electronic tray and turning my hair grey - gave me a grandstand view of what was unfolding, while I made a bit of dough for my daily Tequila and my boss, Mr Piranha. We quit betting on Dow's, Nikkei Futures, stocks etc in mid-January, Alhamdullillah but I can tell you many are still fixated by the New York casino as they dream of a bout of machismo with their favie bimbo in Monte Carlo.
What fueled the Dow's recovery in from March 2009 onwards. A lot of things but the main objective of the conspiratorial Boffins then was to throw a floor beneath the collapsing rubble and project a hologram to draw the suckers in. Obama, Geithner, et al were at the forefront shadowed by Goldman Sachs, BoA et al.
A step by step account, simplified for reading pleasure:
1. Talk up WS based on flimsy data, yeah as flimsy as Jolie's lingerie. Data that showed improvements from ground zero but never ever promising the stratosphere of the Twin Towers. What was previously derided with derision, now became gold standard. In simple language, a corporate giant getting a C for Quarterly earnings reports was cocktickle enough to induce a cuntitch when previously an A would merely raise eyebrows and only an A+ would induce an erection.Mind you, that C was NOT gained from real production and sales but rather cost cutting measures like layoffs, culling on CAPEX, ADEX etc, inventory drawdowns, shorter working hours etc................ (to be continued)