{"id":135073,"date":"2010-01-04T08:06:42","date_gmt":"2010-01-04T13:06:42","guid":{"rendered":"http:\/\/www.businessinsider.com\/global-bear-rally-of-2009-will-end-as-japans-hyperinflation-rips-economy-to-pieces-2010-1"},"modified":"2010-01-04T08:06:42","modified_gmt":"2010-01-04T13:06:42","slug":"global-bear-rally-of-2009-will-end-as-japans-hyperinflation-rips-economy-to-pieces","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/135073","title":{"rendered":"Global Bear Rally Of 2009 Will End As Japan’s Hyperinflation Rips Economy To Pieces"},"content":{"rendered":"

The contraction of M3 money in the US and Europe <\/a><\/strong> over the last six months will slowly puncture economic recovery as 2010 unfolds, with the time-honoured lag of a year or so. Ben Bernanke will be caught off guard, just as he was in mid-2008 when the Fed drove straight through a red warning light with talk of imminent rate rises – the final error that triggered the implosion of Lehman, AIG, and the Western banking system.<\/p>\n

As the great bear rally of 2009 runs into the greater Chinese Wall of excess global capacity, it will become clear that we are in the grip of a 21st Century Depression – more akin to Japan’s Lost Decade than the 1840s or 1930s, but nothing like the normal cycles of the post-War era. The surplus regions (China, Japan, Germania, Gulf<\/a><\/strong> ) have not increased demand enough to compensate for belt-tightening in the deficit bloc (Anglo-sphere, Club Med, East Europe), and fiscal adrenalin is already fading in Europe. The vast East-West imbalances that caused the credit crisis are no better a year later, and perhaps worse. Household debt as a share of GDP sits near record levels in two-fifths of the world economy. Our long purge has barely begun. That is the elephant in the global tent.<\/p>\n

Read the whole story at The Telegraph — ><\/strong><\/a><\/p>\n

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