With crude oil tumbling nearly 3 percent and continued uncertainty in global markets as investors remain concerned about the U.S. jobs report, today King World News wanted to take a step back and look at 5 of the most shocking charts of 2015!
The following charts are from the Wall Street Journal. The first chart below from WSJ shows that while the disposable personal income of Americans has been rising over the past year, their spending habits have not. It's the same problem — banks are not lending and people are not spending. Note in the graph to the far right that inflation is woefully below the Fed's target. Does this open the door for additional QE?
Meanwhile, the second chart below from Deutsche Bank shows that the U.S. consumer has plunged from representing 22 percent of global GDP, all the way down to 15 percent of global GDP. Again, this is just more evidence that the U.S. consumer is not spending.
The third chart below from WSJ shows that growth is stagnant in Europe. Also note that the level of inflation in Europe is nowhere near the ECB's target inflation rate.
So earlier this week legendary Mark Mobius asked: "Will QE in Europe work?" He then warned, "Banks haven't been lending, people haven't been spending."
Consumers not spending across the globe is certainly a bad thing for China, but you wouldn't know it by looking at the following chart. Look at the insane disconnect between China's GDP growth estimates and the manic action in the Chinese stock market.
These astonishing charts from WSJ illustrate the great global distortions that have unfolded as a result of Western central banks embarking on one of the most insane and ill-fated monetary experiments in history. There is no question that this will all end badly, it's just a question of when it will implode and how much human suffering will take place as it all comes crashing down? To subscribe to the Wall Street Journal CLICK HERE.
***ALSO RELEASED: Louise Yamada – What Is Really Happening In The Gold Market CLICK HERE.
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