'It’s all quite unsettling. Global finance has run completely amok. This has been unfolding for so long now that few are concerned. Most revel in asset inflation drunkenness. Instead of safeguarding sound finance and stable money – the bedrock of civil societies and peaceful global relationships - governments and central banks around the world are harboring Bubble excesses like never before..'<blockquote>'The record $3.15 TN hedge fund industry barely existed in 1987. The $4.1 TN ETF complex didn’t exist at all. To be sure, the amount of trend-following finance dominating present-day global markets is unprecedented. Moreover, the structure of contemporary finance has already (repeatedly) proven itself conducive to financial dislocation. Over the years – and especially post-2008 reflation – boom and bust dynamics have turned only more forceful. Central bank fixation on countering the bust has precariously propelled the latest boom.
The ’87 crisis response fatefully unleashed the “Terminal Phase” of Japanese Bubble excess – the consequences of which persist to this day. Decades of exceptional development flushed away with a few years of recklessness. In China, officials over the years claimed to have learned from the dismal Japanese Bubble experience. Clearly, they did not. The 2008 crisis was multiples of 1987. The recent post-crisis reflation, as well, has been at an incredibly grander and prolonged scale. This has ensured that China’s Bubble and “Terminal Phase” have inflated so far beyond Japan’s eighties fiasco.
..
..Chinese Total Social Financing (total non-governmental Credit) expanded a stronger-than-expected $277 billion during September. Year-to-date Total Social Financing growth of $2.375 TN is running 16.3% above last year’s record pace. Lending was led by booming demand for household real estate purchases. Total Chinese Credit could surpass $4.0 TN in 2017, easily outdoing U.S. Credit growth at the height of our mortgage finance bubble. Despite all the talk about excessive debt levels and the need for deleveraging, Chinese officials have yet to get their arms around a historic credit bubble.
..
Bubbles are always about a redistribution and destruction of wealth. Its unparalleled global scope makes the current Bubble is so concerning. Xi now owns the Chinese Bubble, and there would appear little prospect that he’ll ever be willing to take responsibility for the damage wrought. Fingers will be pointed directly at foreigners, foremost the U.S. and Japan.
I believe the global government finance Bubble - history’s greatest financial boom - will conclude this long Credit cycle going back to the conclusion of WW II. As the “granddaddy of Bubbles,” it is fitting that things turn really crazy during an exceptionally prolonged “Terminal Phase.” We’re at the point where no one is willing to risk bursting the Bubble, certainly not timid central bankers.
..
It’s all quite unsettling. Global finance has run completely amok. This has been unfolding for so long now that few are concerned. Most revel in asset inflation drunkenness. Instead of safeguarding sound finance and stable money – the bedrock of civil societies and peaceful global relationships - governments and central banks around the world are harboring Bubble excesses like never before. This ensures catastrophic consequences when Bubbles burst. It has reached the point where these Bubbles have become part and parcel to global power, with countries not willing to risk being left behind. It’s as if it has become An Arms Race in Bubbles.'
- Doug Noland,
Arms Race in Bubbles, October 21, 2017</blockquote>
Context '..fiat inflation is a powerhouse of social, economic, cultural, and spiritual destruction.' - Jörg Guido Hülsmann<blockquote>
'..Mr. Cook .. Reporters Without Borders has referred to China as the "enemy of the Internet."..''..Interpol's credibility is on the line..' - '..protecting the civil liberties — including privacy rights — of citizens..''The current “tech” Bubble absolutely dwarfs the late-nineties period..'(Banking Reform - Monetary Reform) - '..debt is our biggest security threat..''..monetary knowledge .. of currency reform under difficult conditions you have to go to Carl Menger.''..the U.S. equity market .. exceeding even the levels observed in 1929 and 2000..'(Banking Reform - English/Dutch) '..a truly stable financial and monetary system for the twenty-first century..'</blockquote>