Brace For Impact: The Global Crisis Is In Full Swing Again And Asset Prices Are In Danger of Falling Globally

HINDESIGHT: THE UNRAVELING OF OUR GLOBAL MONETARY SYSTEM IS AT HAND!

The global crisis is a financial crisis driven primarily by global trade and capital imbalances.  This is the macro theme we have pursued these past 7 years. We believe the global crisis is in full swing again and asset prices are in danger of falling globally.   Money is less effective at catching the falling knife.  Emerging market countries are exhibiting the signs of crisis-like price action associated with deteriorating balance of payment balances, even though many have built up significant foreign exchange reserves.   Investors and policymakers do not believe this is the beginning of a major EM contagion crisis. They are lulling themselves into a false sense of security. They see the EM market tremors, and do not fear are-run of the EM crises of old.  They are right. This is not (just) going to be an EM crisis. Recent events portend a far more serious crisis is at hand; the unraveling of our global monetary system.

http://www.silverdoctors.com/hindesight-the-unraveling-of-our-global-monetary-system-is-at-hand/

1% U.S. Economic Growth: QE Policy a Failure, Time for A Change

Economists are now ratcheting down their forecasts for final 2nd quarter GDP to 1% which just further illustrates the ineffectiveness of fed policy measures. Ben Bernanke blames fiscal policies out of Washington, saying he can only do so much to counteract their lack of a healthy tax code, job creation plans, and inefficiencies.

http://www.marketoracle.co.uk/Article41417.html

Europe Is On The Verge Of A Japanese-Style Lost Decade

Recently the IMF made it clear that the current euro area leadership needs to address its ongoing banking problems. The Eurozone’s banks are continuing to deleverage, with total loan balances to euro area residents now at the lowest level in 5 years. What makes the situation even more troubling is that many Eurozone banks banks are repeating the Japanese experience of the 90s. They are carrying poor quality and often deteriorating assets on their balance sheets, refusing to take writedowns that will require recapitalization.

The IMF: – Faced with high funding costs, weak [Eurozone] banks are unable to recognize losses. This perpetuates uncertainty about the quality of their assets, hinders fresh private capital injections, and ultimately restrains credit. To reverse these dynamics, bank losses need to be fully recognized, frail but viable banks recapitalized, and non-viable banks closed or restructured.
Read more: http://soberlook.com/2013/07/the-eurozone-is-on-verge-of-repeating.html#ixzz2ZE88ptsJ

European Car Sales Double-Dip, Lowest Since 1993: “No Recovery Until Late 2014″

http://www.zerohedge.com/news/2013-07-16/european-car-sales-double-dip-no-recovery-until-late-2014

Big Institutions Have Been Rotating Out Of Stocks All Year

So far in 2013, BAML’s retail clients have put $7.37 billion into equities, while big institutions have taken $10.69 billion out of the stock market, and hedge fund clients have reduced their holdings of the asset class by $423 million.

Read more at http://investmentwatchblog.com/brace-for-impact-the-global-crisis-is-in-full-swing-again-and-asset-prices-are-in-danger-of-falling-globally/#JDueoq7RfiSiodeU.99