so what's next

So the globe is struggling by slow growth is evident. Some countries have deflation other rampant inflation, money's sloshing round the globe trying to mop up any profit along the way.

Has the GFC finished?

Steve Keen:

"Bill White (the research director for the Bank of International Settlements, and the only official to warn of the GFC before it happened) said recently, central banks and Treasuries don’t know what they are doing, and are making it up as they go along. They didn't see this crisis coming, and now that it’s ending they’re not sure why it has ended either: they’re just happy that it has."

And so the GFC has finished, done, dusted. But, before the GFC we knew (or thought we knew) where we stood and now we ride on a wave of QE excitement, the euphoria of which is skin deep.

CBs and Treasury departments the world over just lurch from one day to the next with no forward guidance. So they hope they 'get lucky' just like a desperate share trader hoping the next trade will erase his mounting previous loses.

Therein lies the seeds for further potential calamity. For example US consumer spending is taking house hold debt to a position beyond 2007. And sovereign debt is increasing, interest rates in those countries with deflation have falling interest rates or ZIRP. Those countries with inflation have high interest rates.

Either way real employment is a growing problem.

A sets of geopolitical, political and economic events are nearly upon us and the GFC is over!

I wonder what a new crisis acronym will be

CPAMM (Can't Print Any More Money)

PPIB (Printing Press Is Broken)

TEF (The Experiment Failed)

etc