{"id":15910,"date":"2016-01-02T18:25:18","date_gmt":"2016-01-02T23:25:18","guid":{"rendered":"http:\/\/olduvai.ca\/?p=15910"},"modified":"2016-01-02T18:25:18","modified_gmt":"2016-01-02T23:25:18","slug":"will-2016-bring-another-2008-type-crash-pt-1","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=15910","title":{"rendered":"Will 2016 Bring Another 2008-Type Crash? Pt. 1"},"content":{"rendered":"<h3 class=\"post-title\"><a href=\"http:\/\/gainspainscapital.com\/2015\/12\/31\/5818\/\" target=\"_blank\">Will 2016 Bring Another 2008-Type Crash? Pt. 1<\/a><\/h3>\n<div class=\"postmeta\">The world is lurching towards another Crash.<\/div>\n<div class=\"entry clearfix\">\n<p>Japan, which has been ground zero for Keynesian insanity, is back in technical recession. This comes\u00a0<em>after<\/em>\u00a0the Bank of Japan launched the single largest QE program in history: a QE program equal to 25% of GDP launched in April 2013.<\/p>\n<p>This program bought an uptick in economic growth for just six months before Japan\u2019s GDP growth rolled over again. Similarly, an expansion of QE in October 2014 pulled Japan back from the brink, but GDP growth collapsed again soon after, plunging the country into technical recession earlier this year.<\/p>\n<p><a href=\"http:\/\/gainspainscapital.com\/wp-content\/uploads\/2015\/12\/japan-gdp-growth1.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-5819\" src=\"http:\/\/gainspainscapital.com\/wp-content\/uploads\/2015\/12\/japan-gdp-growth1.png\" alt=\"japan-gdp-growth\" width=\"730\" height=\"340\" \/><\/a><\/p>\n<p>Japan is completely insolvent. The country has no choice but to continue to implement QE or else it will go crash in a matter of months. However, with the Bank of Japan already monetizing ALL of the country\u2019s debt issuance, the question arises, \u201cjust what else can it buy?\u201d<\/p>\n<p>We\u2019ll find out in 2016. But Japan is now officially in the End Game from Central Banking.<\/p>\n<p>Europe is not far behind.<\/p>\n<p>The ECB has cut interest rates to negative, cut them further into negative, launched a QE program, and then cut interest rates even further into negative while extending its QE program.<\/p>\n<p>EU GDP growth has flat-lined at\u00a0<em>barely positive<\/em>.<\/p>\n<p><a href=\"http:\/\/gainspainscapital.com\/wp-content\/uploads\/2015\/12\/european-union-gdp-growth.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-5820\" src=\"http:\/\/gainspainscapital.com\/wp-content\/uploads\/2015\/12\/european-union-gdp-growth.png\" alt=\"european-union-gdp-growth\" width=\"730\" height=\"340\" \/><\/a><\/p>\n<p>But the economy is having serious difficulty fending off deflation.<\/p>\n<p>When your ENTIRE banking system is leveraged by 26 to 1, as is Europe\u2019s, even a 4% drop in asset values renders the system insolvent. Without significant inflation, the EU\u2019s banking system will crash.<\/p>\n<p><a href=\"http:\/\/gainspainscapital.com\/wp-content\/uploads\/2015\/12\/european-union-inflation-rate-1.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-5821\" src=\"http:\/\/gainspainscapital.com\/wp-content\/uploads\/2015\/12\/european-union-inflation-rate-1.png\" alt=\"european-union-inflation-rate-1\" width=\"730\" height=\"340\" \/><\/a><\/p>\n<p>ECB President Draghi better have more in his bazooka that what he\u2019s fired so far, or the EU\u2019s $46 trillion banking system will crash. However, as is the case with the Bank of Japan, the ECB is facing a shortage of viable assets to buy.<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Will 2016 Bring Another 2008-Type Crash? Pt. 1 The world is lurching towards another Crash. Japan, which has been ground zero for Keynesian insanity, is back in technical recession. This comes\u00a0after\u00a0the Bank of Japan launched the single largest QE program in history: a QE program equal to 25% of GDP launched in April 2013. This [&hellip;]<\/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],"tags":[57,2229,233,279,282,284,10686,558,11398],"class_list":["post-15910","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bank-of-japan","tag-banking-system","tag-ecb","tag-eu","tag-european-central-bank","tag-european-union","tag-mario-drag","tag-negative-interest-rates","tag-phoenix-capital-research"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/15910","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=15910"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/15910\/revisions"}],"predecessor-version":[{"id":15911,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/15910\/revisions\/15911"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=15910"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=15910"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=15910"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}