kingworldnews.com / June 18, 2013
the man who oversees more than $150 billion warned King World News
about the high likelihood of a coming great inflation, or worse yet the
possibility of a hyperinflationary collapse. Rob Arnott, who has won an
unprecedented six Graham & Dodd Awards and is also Chairman of
Research Affiliates, also warned KWN about the dangers of what the Fed
and other central planners are engaging in as they lead us into a
reckless and potentially game-ending and destructive “Hyper-Keynes”
Arnott: “The Fed has painted itself awfully far into a
corner and there is no graceful way out. When you reach a point where
talk of ‘tapering’ causes markets to tremble with fear, that’s not a
good place to be because it means that you’ve really got the markets
addicted to the newly printed money.
And the only way to get the
markets attention is to give it more (freshly printed money). It’s just
like a crack addiction. This is not healthy and doesn’t play out
nicely, and you do have asset bubbles fueled by central bank profligacy
all over the world. That also sows seeds of risk because as the Fed
backs off from the quantitative easing you wind up creating risks of
pretty sharp and adverse market reactions….
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When the S&P, always so conveniently ahead of the curve, yesterday revised its forecast for Europefrom growth in the second half of 2013 to 2014 one couldn’t help but golf clap, as well as wonder if they finally started looking at the fundamental depressionary reality on the ground instead of the rating agency’s infamous “models.” A depressionary reality confirmed by the latest car sales number for May which just hit a fresh 20 year low.
European car sales hit their lowest level for the month of May in 20 years as the region’s recession dragged on, the European automakers’ association said Tuesday.They meant depression instead of recession, but it’s an honest mistake.
Passenger car sale demand for May dropped by 5.9 percent on the same month last year in the 27-country European Union to 1.042 million units, the lowest level since May 1993, when sales dropped below 1 million, according to new figures released by ACEA. For the first five months of the year, sales dropped 6.8 percent to 5.07 million.