{"id":24737,"date":"2017-08-19T13:20:32","date_gmt":"2017-08-19T18:20:32","guid":{"rendered":"http:\/\/olduvai.ca\/?p=24737"},"modified":"2017-08-19T13:20:32","modified_gmt":"2017-08-19T18:20:32","slug":"dont-forget-about-the-red-swan","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=24737","title":{"rendered":"Don’t Forget About The Red Swan"},"content":{"rendered":"
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Don’t Forget About The Red Swan<\/a><\/h3>\n
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[Urgent Note: The nation\u2019s future and a massive debt ceiling\u00a0hangs in the balance as Trump pushes beyond the Comey hearings. That\u2019s why I\u2019m on a mission to send my new book\u00a0TRUMPED! A Nation on the Brink of Ruin\u2026 and How to Bring It Back<\/a>\u00a0<\/i><\/b>to every American who responds, absolutely free.\u00a0Click here for more details<\/b><\/a>.]<\/p>\n

Given the anti-Trump feeding frenzy, we continue to believe that a Swan is on its way bearing Orange. But if that\u2019s not enough to dissuade the dip buyers, perhaps the impending arrival of the Red Swan will at least give them pause.<\/p>\n

The chart below comprises a picture worth thousands of words. It puts the lie to the latest Wall Street belief that the global economy is accelerating<\/i> and that surging<\/i> corporate profits justify the market\u2019s latest manic rip.<\/p>\n

What is actually going on is a short-lived global credit\/growth impulse emanating from China. Beijing panicked early last year and opened up the capital expenditure (CapEx) spigots at the state-owned enterprises (SOEs) out of fear that China\u2019s great machine was heading for stall speed at exactly the wrong time.<\/p>\n

The 19th national communist party Congress scheduled for late fall of 2017. This every five year event is the single most important happening in the Red Ponzi. This time the event is slated to be the coronation of Xi Jinping as the second coming<\/i> of Mao.<\/p>\n

Beijing was not about to risk an economy fizzling toward a flat line before the Congress. Yet that threat was clearly on the horizon as evident from the dark green line in the chart below which represents total fixed asset investment.<\/p>\n

The latter is the spring-wheel of China\u2019s booming economy, but it had dropped from 22% per annum growth rate when Mr. Xi took the helm in 2012 to 10% by early 2016.<\/p>\n

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

Don’t Forget About The Red Swan [Urgent Note: The nation\u2019s future and a massive debt ceiling\u00a0hangs in the balance as Trump pushes beyond the Comey hearings. That\u2019s why I\u2019m on a mission to send my new book\u00a0TRUMPED! A Nation on the Brink of Ruin\u2026 and How to Bring It Back\u00a0to every American who responds, absolutely […]<\/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":[130,175,11023,2120,195,353,11368,9990],"class_list":["post-24737","post","type-post","status-publish","format-standard","hentry","category-economics","tag-china","tag-credit","tag-daily-reckoning","tag-david-stockman","tag-debt","tag-gdp","tag-red-ponzi","tag-red-swan"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/24737","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=24737"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/24737\/revisions"}],"predecessor-version":[{"id":24738,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/24737\/revisions\/24738"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=24737"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=24737"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=24737"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}