{"id":10706,"date":"2015-08-04T08:03:59","date_gmt":"2015-08-04T13:03:59","guid":{"rendered":"http:\/\/olduvai.ca\/?p=10706"},"modified":"2015-08-04T08:03:59","modified_gmt":"2015-08-04T13:03:59","slug":"pop-goes-the-alpha-natural-resources","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=10706","title":{"rendered":"Pop Goes The Alpha ( Natural Resources)"},"content":{"rendered":"

Pop Goes The Alpha ( Natural Resources)<\/a><\/h3>\n

If you want a cogent metaphor for the central bank enabled\u00a0crack-up boom now underway on a global basis, look no further than today\u2019s scheduled chapter 11 filling of met coal supplier\u00a0Alpha Natural Resources (ANRZ).\u00a0After becoming a public company in 2005,\u00a0its market\u00a0cap soared from practically nothing to $11 billion exactly four years ago.\u00a0Now it\u2019s back\u00a0at the zero bound.
\n\"ANRZ<\/a><\/p>\n

ANRZ Market Cap<\/a>\u00a0data by\u00a0YCharts<\/a><\/p>\n

Yes, bankruptcies happen, and this\u00a0is most surely a case of horrendous mismanagement.\u00a0But the\u00a0mismanagement at issue is that of the world\u2019s central bank cartel.<\/p>\n

The latter\u00a0have insured that there will be thousands of such filings in the years ahead because since the mid-1990s the central banks\u00a0has\u00a0engulfed the\u00a0global economy in an unsustainable credit based spending boom, while utterly disabling and\u00a0falsifying the\u00a0financial system\u00a0that\u00a0is supposed to price\u00a0assets honestly, allocate capital efficiently and keep risk and greed in check.<\/p>\n

Accordingly, the\u00a0ANRZ stock\u00a0bubble depicted above does not\u00a0merely show that the boys, girls and robo-traders in the casino got way too rambunctious chasing\u00a0the \u201cBRICs will grow to the sky\u201d tommyrot fed to them by Goldman Sachs. What was actually happening is that the central banks were feeding the world economy with so much phony liquidity and dirt cheap capital that for a time the physical economy seemed to be doing a veritable jack-and-the-beanstalk number.<\/p>\n

In fact, the central banks generated a double-pumped boom\u2014\u2014first in the form of a credit-fueled consumption\u00a0spree in the DM economies that energized the great export machine of China and its satellite suppliers; and then after the DM\u00a0consumption boom crashed in 2008-2009 and threatened to bring the export-mercantilism of China\u2019s red capitalism crashing down on Beijing\u2019s rulers,\u00a0the PBOC unleashed an\u00a0even more fantastic investment and infrastructure boom in China and the rest of the EM.<\/p>\n

 <\/p>\n

…click on the above link to read the rest of the article…<\/p>\n","protected":false},"excerpt":{"rendered":"

Pop Goes The Alpha ( Natural Resources) If you want a cogent metaphor for the central bank enabled\u00a0crack-up boom now underway on a global basis, look no further than today\u2019s scheduled chapter 11 filling of met coal supplier\u00a0Alpha Natural Resources (ANRZ).\u00a0After becoming a public company in 2005,\u00a0its market\u00a0cap soared from practically nothing to $11 billion […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,3],"tags":[7823,7821,124,147,5979,7822,2120,7824],"class_list":["post-10706","post","type-post","status-publish","format-standard","hentry","category-economics","category-energy-2","tag-alpha-natural-resources","tag-anrz","tag-central-banks","tag-coal","tag-contracorner","tag-crack-up-boom","tag-david-stockman","tag-market-cap"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/10706","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10706"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/10706\/revisions"}],"predecessor-version":[{"id":10707,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/10706\/revisions\/10707"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10706"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10706"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10706"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}