The global economy is faced with a synchronized slowdown as central bank ammunition to fight the next global recession is limited.
Monetary authorities across the world have slashed interest rates 80 times over the last 12 months and printed upwards of $1 trillion over four months to counter the slowdown.
The only apparent solution central bankers have offered is a liquidity-fueled massive stock market melt-up across the world that rivals the end years of the Dot Com bubble (and the liquidity-fueled meltup around Y2K). These unelected officials have also provided forward guidance on how an epic V-shape recovery in the real economy is imminent.
The only problem today that market watchers like ourselves have noticed – is that traditional monetary policy has had a challenging time stimulating growth in developed and emerging economies.
Data from Netherlands Bureau for Economic Policy Analysis (CPB) showed Friday that global trade volume continued to contract in November, marking one of the most extended stretches of negative growth since the end of the financial crisis.
According to CPB, world trade slipped 0.60% in November over the prior quarter and was down 1.1% compared to the same month a year ago.