The Man-i-fest, is an informed man

 Economic Reality and Financial Markets The Biggest Bubble ever created by mankind! Nowadays, there is no corelation whatsoever, between the Economic Reality and the Stock Market ...  Nun, niente, nichts , zip, nada ... And this is getting along for quite some time now ... More or less 30 years. But this time, it is getting much worst! Let´s resume the information above... Is everybody craisy !? or it´s Just me!

Update Uk vs US vs Japan and the EU vs the World The UK, the US and Japan, have been for quite some time (the past 20 years) creating and enforcing the conditions for The Reversed Sustainability Effect to take place. But what has been happening these past few days, is not it. Explaining:  Photo from the website Wikipedia about England . All rights reserved The UK leaving the EU, does not generates a new effect. In my opinion, even though only England and Wales will decide to leave the EU, even this will only enforce the conditions already met by these countries, and the policies once again put in place by the central banks worldwide. These policies will deepen even further the conditions for a disaster, worldwide. One way foreword, that will eventually take place, that is, for England and Wales, they will stand alone, without the support of the Scottish Oil to backup the enormous debt generated by bad policies and also by the bank of England, and they will...

...  is more accurate than ever! Now we are in the lower part of the cycle, and: In an unbalanced economy (Budget, Savings, Debt, Growth, Balance of Payments, Current Account and Trade), the money will flow away, will support the creditors and the markets, and will make the situation even worse for the economy and for the people living in those economies, so: 1 . Most of the world continues to apply nowadays, the theories of the economy and the monetary policies and formulas of the 30's and the 70's.  These theories were built after the "great recession", applied during the cold war, sustained since the 90's, and enforced by the financial deregulation in the beginning of this century , as the main line of conduct . Those theories and formulas were made for relatively closed economies, on relatively regulated markets. It's like "trying to do business and access the current market transactions, with an old IBM Pc2 + a modem built in the 80...

We should not compare the time of the Great Depression and his theories with Nowadays. These are two completely different situations. A closed economy in the 1930's and a fully open and unbalanced economy as it is today. Back then, the US had a closed market and the country was mostly self sufficient. Most goods were made within the country's doors and the main global financial markets weren't that interconnected, as they are today, and also, financial capital wasn't so volatile. But during the last decade, the US is running high external deficits, accumulating budget deficits and running extremely low savings rates. What the US have created, nowadays with all the QE's towards finance, is an asset bubble, that will go away when the QE's stop. Ben Bernanke is wrong, just as it was his predecessor Alan Greenspan. Unregulated markets will only serve the most powerful side of the Market. Basic regulation is needed. More QE money in an unbalanced economy, will onl...

In order to better understand this example, please note that in the drawing, Money is seen as Water... in his various forms ... In the atmosphere, our air ▼ has the following composition, and, Water has the following ▼... ...So, as presented above and as we all know, water (1 part of Oxygen and 2 parts of Hydrogen) travels throughout the air that we breathe. Because every center in these presented economies, mentioned in the Drawing: 1) ■ Government; 2) Supply side of the economy, ■ producers ■ service providers and ■ manufacturers 3) Demand side of the economy,■ Consumers, both private and public ...are leaking or loosing money towards the world markets, and because these economies are not self sufficient, mainly because they lack sufficient resources to produce the Energy that they need to support their activities, and, because they rely heavily on their imports, in order to provide for a significant part of their...

Who or what is driving these lines!? link to the working paper on Oil vs Gold vs S&P500 A hint: Monetary Policy. These evolution's, doubling and tripling the value in just 4 years, have no economic support and they are damaging the economy As you can see, concerning M2 Nominal Money Velocity vs Central bank Assets, since early 2006, the economic activity associated with M2, has decreased from 2 times units of goods and services per 1 unit of money (M2), to, 1,54 times units of good and services per 1 unit of money (M2). (Velocity of money measures the rate at which money changes hands) The speed and the amounts of which money is being printed, under the form of Quantitative Easing programs and other new means / operations, has no parallel in recent central bank history, as you can see here in this graph with information about the USA M2 Money velocity Historically, Monetary Aggregates haven't grown in this way... this is getting out of con...

First)  Economically and financially,  The starting point of the two countries was extremely different: Ireland had a Sustainable and Working economy, during the past 10 years and Portugal hadn't.: More specifically: concerning the history of the past budget surplus/deficit's, debt, trade, interest rates, budget revenue in % of the GDP and % of Expenses in the GDP.   The following information can be built using data available @ the World Bank Website. Presenting Data: (to better view the graphic's info, please click on the image to enlarge it) Ireland is presented with the blue line , and Portugal with the red line. Budget surplus/deficit Budget surplus/deficit % of the GDP Government Debt Expense % of the GDP Interest Payment % of the GDP Revenue % of the GDP Central Government Debt External Balance % of the GDP GDP per capita, PPP Current account % of the GDP Resume: Throughout the last 15 years, Irela...

Why are we getting here, crises after crises. Is this a systemic reaction of the economy or is something more profound!? Could this mindset be embedded in our thinking through our "Written DNA" !?  1st Trade; 2nd Country; 3rd Growth; 4th Money; 5th Budget, 6th Markets; 7th Debt; 8th Savings; 9th Deficit The Graph Link The Reversed Sustainability Effect ... The reading of the results and the conclusion: Growth and Trade, they surpasses by far, Debt, Savings and Deficits. ► This is the current mainstream mindset▼ It doesn't matter how a country grows or how it will trade, as long as it does it with higher numbers, than it did in the previous period of comparison. That's why if a countries is accumulating debt and deficits in trade and in their budget, year after year, with a lower savings rate, and this is happening systematically. Accordingly to the mainstream governance opinion, it doesn't matter, as long as it continues to grow...

Google Ngram Viewer , great tool...!!!

The image and the data concerning the working papers presented in this post, were presented initially in our Webpage, here " Economics the Power of Numbers ". Concerning the Economic Data and the Monetary Policy, this presentation will concentrate the analyse in the years from 1990 to 2012. The Myth - Flooding the financial markets with money, will have, eventually, a direct impact or at least a substantial impact in the Real Economy, creating and promoting the conditions for countries to grow. The Following graphic presents the most important sets of monetary aggregates and their evolution since 1990 to 2012 Another view at the same set of data, for better understanding ... Notes: Data from China is presented divided by "3" and Japan divided by "100", in order to make visible the complete sets of data from the other aggregates. The objective is to present the trends and the evolution of the aggregates in percentage from 199...