{"id":16173,"date":"2016-01-07T15:59:06","date_gmt":"2016-01-07T20:59:06","guid":{"rendered":"http:\/\/olduvai.ca\/?p=16173"},"modified":"2016-01-07T15:59:35","modified_gmt":"2016-01-07T20:59:35","slug":"perfect-storm","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=16173","title":{"rendered":"Perfect Storm!"},"content":{"rendered":"<div class=\"headline_area\">\n<h3 class=\"entry-title\"><a href=\"http:\/\/dollarcollapse.com\/money-bubble\/perfect-storm\/\" target=\"_blank\">Perfect Storm!<\/a><\/h3>\n<p class=\"headline_meta\">One of the (many) fascinating things about this latest global financial crisis is that there\u2019s no single catalyst. Unlike 2008 when the carnage could be traced back to US subprime housing, or 2000 when tech stocks crashed and pulled down everything else, this time around a whole bunch of seemingly-unrelated things are unraveling all at once.<\/p>\n<\/div>\n<div class=\"format_text entry-content\">\n<p>China\u2019s malinvestment binge is crashing global commodities, an overvalued dollar is crushing emerging markets (most recently forcing China to devalue), the pan-Islamic war has suddenly gone from simmer to boil, grossly-overvalued equities pretty much everywhere are getting a long-overdue correction, and developed-world political systems are being upended as voters lose faith in mainstream parties to deal with inequality, corporate power, entitlements, immigration, really pretty much everything. For one amusing\/amazing example of the latter problem, consider Germany\u2019s response to the mobs of men that suddenly materialized and began molesting women:\u00a0<a href=\"http:\/\/www.zerohedge.com\/news\/2016-01-06\/cologne-mayor-slammed-after-telling-german-women-keep-would-be-rapists-arms-length\" target=\"_blank\"><em>Cologne mayor slammed after telling German women to keep would-be rapists at arm\u2019s length.<\/em><\/a><\/p>\n<p>Why do causes matter at times like this? Because where previous crises were \u201csolved\u201d with a relatively simple dose of hyper-easy money, it\u2019s not clear that today\u2019s diverse mix of emerging threats can be addressed in the same way. Interest rates, for instance, were high by current standards at the beginning of past crises, which gave central banks plenty of leeway to comfort the afflicted with big rate cut announcements. Today rates are near zero in most places and negative in many. Cutting from here would be an experiment to put it mildly, with myriad possible unintended consequences including a flight to cash that empties banks of deposits and a destabilizing spike in wealth inequality as negative interest rates support asset prices for the already-rich while driving down incomes for savers and retirees.<\/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>Perfect Storm! One of the (many) fascinating things about this latest global financial crisis is that there\u2019s no single catalyst. Unlike 2008 when the carnage could be traced back to US subprime housing, or 2000 when tech stocks crashed and pulled down everything else, this time around a whole bunch of seemingly-unrelated things are unraveling [&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":[130,9021,312,7544,11551],"class_list":["post-16173","post","type-post","status-publish","format-standard","hentry","category-economics","tag-china","tag-dollarcollapse-com","tag-financial-crisis","tag-john-rubino","tag-us-subprime-housing"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/16173","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=16173"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/16173\/revisions"}],"predecessor-version":[{"id":16175,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/16173\/revisions\/16175"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16173"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16173"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16173"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}