Anger, Anger, Everywhere, Nor Any Drop To Drink

There is a lot of anger in the world today, from the big men and women to the little people.

For the little people, the anger arises from social inequality which is threatening to tear society asunder as 67 people command more wealth in this world than the bottom 3.5 billion people do.

Because capitalism is not working and another new book on it, Thomas Piketty’s book Capital in the Twenty-First Century, which echoes Joseph Stiglitz and gang.

I have been following this for some time now and noted that we are Breeding A Generation of Angry Young People.

Anger causes violence, much more than mental illness does as research shows.

Riot Watch April 14th –

We are starting to see policy makers break ranks these days in the latest G20 finance chiefs meeting in Washington last week where criticism is mounting as the smaller central bankers rue their impotence.

India and Brazil came out to blast the spillover effects of QE on their economies that they are powerless to contain (to be fair, Brazil was complaining on the way up as they are complaining on the way down now).

Australia is unsatisfied with the progress of G20 growth targets and they are probably just as frustrated that Yellen and the ECB can move their AUD more than they can themselves.

Interestingly, little central banks are starting to say no more to Fed as RBI is seen doing now and John Mauldin in his latest weekly, Every Central Bank For Itself, wouldn’t put it past them to erect some form of capital controls when the time arose.

My 2 cents worth is what would be the use of buying any options if we are going to be seeing unconventional measures being deployed readily each time a crisis strikes ?

With this overhanging uncertainty in monetary policies and global divide showing up rapidly, how will businesses find the confidence to continue to boost employment ?

And I am pretty sure that we are coming to a head soon, sparked by this Ukrainian crisis that people will have to choose a side with the painful awareness that there are only 2 sides to choose – G3 and IMF vs the rebels, everything else is subordinate.

China may be rushing the BRICS to form their supra national infrastructure bank but it is not going to make much difference. The IMF and World Bank still rule, along with their biggest sponsors.

Is that why Gold gushed higher today ?