Summary: Quantitative Easing (money-printing) was designed to save the big banks and insurance companies. It has simply exacerbated the problems. It has led to vast amounts of newly-created derivatives. Derivatives now stand at 450 times the size of the mortgage security derivatives that brought the financial system to death’s door in 2008. There is no saving the system this time round. The horror of what is about to hit the system is too monumental to describe. Even 99-cent stores are struggling as poor people cannot even afford their wares. Stories of struggling economies around the world. U.S retailers are truly on the ropes. Housing gives the lie to reports of U.S. recovery. America’s swagger in the eastern Pacific region portends deep trouble ahead. China is ramping up to deal with this threat. All this in keeping with my theme-of-the-year: War with China
