Amid debates on whether recent weeks’ sell off in advanced economies stock markets was a correction or start of a new collapse, picture of world’s top bourses Tuesday clearly indicated that these developed markets now turned totally addicted to stimulus money, just like a drug addict desperately needs heroin.
Banks and shares in peripheral countries led a European rally on Tuesday after media reports claiming that the European Central Bank (ECB) is considering buying corporate bonds to revive the region's economy.
The purchases, which the news reports said could be approved in December and start early next year, are seen as helping banks, especially in struggling southern European countries, free up more of their balance sheet for lending.
The Euro STOXX banking index rose 3.3%, with the biggest gains seen in Greek, Italian and French banks.
Tuesday, European investors were as happy as a drug addict who finally found his heroine. The ECB signaled that it would give the desperately needed easy stimulus money or heroine of the struggling European economy. Before this month dominant consideration was Germany’s manufacturing economy was strong but peripheral countries were weak. However, latest set of economic data indicated that Germany was also slowing down and Europe was on the brink of a new recession or even deflation. So the ultimate remedy is to apply to the lender of last resort or the ECB and make it print paper money out of thin air again!
Elsewhere, Japanese stocks fell Tuesday, with the market latching on to comments from the welfare minister on the country's public pension fund. Over the weekend, media reported that the $1.2 trillion GPIF would likely raise its allocation for domestic stocks to about 25%, a bit more than market expectations of around 20%.
Minister Yasuhisa Shizoaki, responsible for the GPIF, said on Tuesday that he did not know anything about media reports, disappointing investors who had hoped he might confirm such reports.
Let’s summarize situation in Europe and Japan: One drug addict finds hope for new shot of heroin on the other hand another one is disappointed that he will not get the amount of shot as much as he expected.
'Money for Injections' from www.tOrange.us
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Finally, the US stocks rallied on Tuesday, with the S&P 500 on track for a fourth straight session of gains. Media says that American markets were boosted by strong corporate results. If you really believe that the US stock market is not moving according to the more than $3 trillion heroin injection or ‘golden shot’ since 2008 but economic realizations; that means you also need a drug. Here is your drug from Mike Maloney: A video clearly indicating that the US stocks move completely parallel to easy stimulus money: https://www.youtube.com/watch?v=T5JcmpN2mrA&feature=youtu.be&a
Due structural problems like inefficient and excessive source utilization, aging populations, centralization, bureaucratization, nuclear family breaking up, alienation, depression and etc. advanced or matured, old money-industry economies are no longer able to maintain their manufacturing industries in a productive way.
Advanced or developed economies are money based or capitalist economies which organize production with money. Real rulers of these economies are people who control the main production organizer or money or big capital. As the system reached its natural limits rulers corrupted money and invented fiat paper currencies which are not backed by any tangible assets like gold to keep the economies going and more importantly to maintain their ruling positions.
You can take natural substances and make drugs from them and have joyful time with this and forget your real problems. Rulers of money economies took natural money or gold and corrupted it and produced fiat currencies, a kind of drug for economies. They covered real issues and gave unsustainable entertainment to people. However, now both rulers and public became addicted to this drug. Everybody knows what will be the end of a person who denies his/her real problems and try to live life with drugs!