17/9/16: The Mudslide Cometh for Your Ladder

One chart that really says it all when it comes to the fortunes of the Euro area economy:
And, courtesy of these monetary acrobatics, we now have private corporates issuing debt at negative yields, nominal yields… The train wreck of monetarist absurdity is now so far out on the wobbly bridge of economic systems devoid of productivity growth, consumer demand growth and capex demand that even the vultures have taken into the skies in anticipation of some juicy carrion. With $16 trillion (at the end of August) in sovereign debt yielding negative and with corporates now being paid to borrow, the idea of the savings-investment link – the fundamental basis of the economy – makes about as much sense today as voodoo does in medicine. Even WSJ noted as much:

This post was published at True Economics on Saturday, September 17, 2016.