{"id":6631,"date":"2015-03-19T07:48:09","date_gmt":"2015-03-19T12:48:09","guid":{"rendered":"http:\/\/olduvai.ca\/?p=6631"},"modified":"2015-03-19T07:48:09","modified_gmt":"2015-03-19T12:48:09","slug":"the-unraveling-is-gathering-speed","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=6631","title":{"rendered":"The Unraveling Is Gathering Speed"},"content":{"rendered":"<h3><a href=\"http:\/\/www.oftwominds.com\/blogmar15\/debt-saturation3-15.html\" target=\"_blank\"><span class=\"Apple-style-span\"><i><b>The Unraveling Is Gathering Speed<\/b><\/i><\/span><\/a><\/h3>\n<p><span class=\"Apple-style-span\"><i>Debt saturation and debt fatigue = diminishing returns on central bank tricks.<\/i><\/span><\/p>\n<p><b>Does anyone else have the feeling that things are not just unraveling, but that the unraveling is gathering speed?<\/b><\/p>\n<p>Though quantifying this perception is more interpretative than statistical, I think we can look at the ongoing debt crisis in Greece as an example of this acceleration of events.<\/p>\n<p>The Greek debt crisis began in 2011 and reached a peak in 2012. The crisis was quelled by new Eurozone\/IMF loans to Greece, and European Central Bank chief Mario Draghi\u2019s famous \u201cwhatever it takes speech\u201d in late July, 2012.<\/p>\n<p>&nbsp;<\/p>\n<p>The Greek debt crisis quickly went from \u201cboil\u201d to \u201csimmer,\u201d where it stayed for almost two-and-a-half years. But no one with any knowledge of the gravity and precariousness of the situation expects the latest \u201cextend and pretend\u201d deal to patch everything together for another two years.\u00a0 Current deals are more likely to last a matter of months, not years.<\/p>\n<p>We can discern the same\u00a0<em>diminishing returns<\/em>in Federal Reserve\/central bank interventions, as the initial rounds of quantitative easing pushed stock and bond markets higher for years at a time, while the following interventions generated lower returns.<\/p>\n<p>What factors are reducing the positive effects of intervention and causing increased volatility? Let\u2019s start with the engine behind every central bank\/state intervention and every \u201csave\u201d of the status quo: debt.<\/p>\n<p>&nbsp;<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Unraveling Is Gathering Speed Debt saturation and debt fatigue = diminishing returns on central bank tricks. Does anyone else have the feeling that things are not just unraveling, but that the unraveling is gathering speed? Though quantifying this perception is more interpretative than statistical, I think we can look at the ongoing debt crisis [&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":[124,195,209,233,282,303,305,1167,1044],"class_list":["post-6631","post","type-post","status-publish","format-standard","hentry","category-economics","tag-central-banks","tag-debt","tag-diminishing-returns","tag-ecb","tag-european-central-bank","tag-fed","tag-federal-reserve","tag-greece","tag-mario-draghi"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/6631","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=6631"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/6631\/revisions"}],"predecessor-version":[{"id":6632,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/6631\/revisions\/6632"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6631"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6631"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6631"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}