The Market of Discontent Rises?

Courtesy of Nattering Naybob.

July 15, 2016 – This market is simply ridiculous at this point – we're out! There was another horrible terror attack in France yesterday. The markets have given it a big "who cares"… TGIF – Despite 84 Dead In Terror Attack, The Market Continues To Rise – Philip Davis

Re: China Exporting 1Mbpd refined oil products – "Slowing domestic demand has left China’s oil refiners with huge surpluses they are looking to sell abroad, a trend that mirrors similar increases in China’s exports of processed basic materials such as steel in recent months and has provoked complaints from governments and industries around the world. Another key factor is the resurgence of China’s independent crude refiners: Last year, the government allowed them to directly import crude from abroad for the first time instead of buying more expensive crude from domestic state-owned oil companies" – WSJ and SA

In reference to above: "That rising global demand story is like a screen door on a submarine – or whatever Naybob would say…" – Philip Davis

China allowed direct importation for a reason. Above are all consequences of a lack of dollar liquidity. China has been taking debt repayment from oil exporting EM countries not in the form of dollars, which the EM's don't have, but in the form of oil itself. The more adverse economic effects will resonate within the next 9 months. We breached many of these consequences, including stock piling on Feb 18th in Cheap Oil: Unhealthy?

The global economy is not suffering from the secular stagnation of MSM narrative, it's price impaired and with NIRP, the end game is not going to end well. With little downward latitude in pricing, what happens before desperate price cuts? Declining sales result in order and production cuts, followed by layoffs, throughout the chain. Resulting in further contraction of aggregate demand with adverse economic consequences.

Our outsourced and emasculated economy is based in speculative transfers (title shifts in assets) which are dissipated by financial investment (further money shuffling). There is little to no real value added to nominal GDP from such activity, and with furtherance of such activity through faulty fiscal, monetary and economic policy, only future downside.

With what is happening in BRICS, EM's and across the globe, which is not being "broadcast", its easy to see that some people are getting very hungry and angry, indeed. Screen door on a submarine? LOL. One would be so lucky to mercifully drown that fast.

The bogus "wealth effect" in play is an end game that works like this…. How about, Katie, bar the door, the chickens are coming home to roost and someone has to pay the piper. AKA Barbarians at the Gates, and for anything but the misdirect of the terrorist's du jour or fanatical religious reasons.

If you even think that this is about those who might get offended over a ham sandwich and beer, put down the crack pipe and guess again. This long running socioeconomic dysfunction may shortly morph into something much worse than the filtered media outlets in your reality bubbles, will let you even imagine, let alone fathom.

Along with the terrorist attack in Nice which killed 86 on July 14th, 2016, the attempted coup in Turkey the following day was other sign.

Unless there is a massive and rapid global paradigm change, where enlightenment triumphs over conscious ignorance, things are bound to get worse. Need a clue? Refer to Phil's title for his post again and the title of this missive.