Lot’s of ’10 years ago today’ stuff last week marking the beginning of the meltdown in global markets as weapons of mass destruction derivatives forced a global market collapse that almost tail spun the entire planet in a steep economic depression.
To stave off another Great Depression, central banks around the planet have pumped the economy with trillions in printed money.
The impact of pumping an addict full of more of the drug they are addicted to as an economic theory is unsettlingly untested.
All that was accomplished by printing trillions is that the day of reckoning in terms of an economic collapse have been magnified while the poor suffer austerity and the rich get richer.
Politically we have seen Trumpism and Exitism expressed as economic nationalism and cultural backlash alongside the rise of Bernie Sanders and Jeremy Corbyn.
In NZ we are seeing the harvest of the GFC with the political rise of Jacinda and economically the stalling house prices.
Currently the American Stock Market is still in the thrall of the belief that Trump will ram through right wing fantasies as tax reform, but Trump’s inability to get health care reform through, his political mismanagement and his toxic culture wars are eroding any chance of Trump being politically capable of getting tax reform through.
The moment the markets suddenly understand that their euphoria of tax cuts is utterly misplaced is the moment they spark a rush for the door. That downturn will spark the collapse in China, that places stress upon the geopolitical fault lines between the two of them in the South China Sea and on the North Korean peninsular.
When the crash comes, chaos will follow. Winning an election in September seems to be the least of our worries.