Global Hyperinflation indicators show acceleration
KWN interview May 14, 2013
Greyerz: “Eric, I’m looking at the disconnect in the world and it’s becoming more exacerbated. Let’s look at some examples: Stock markets worldwide are booming, but these booming markets have nothing to do with economic prospects. Prospects in the world are worse than ever, and this includes the US, Europe, Japan and China. None of these countries have a booming economy. What they have is massive debt and accelerating deficits.
The Baltic Dry Index is around 900, and is another indicator of the disconnect. The peak of the Baltic Dry Index was around 11,000 about 5 years ago. This shows you what is really happening with global trade and economic activity….
“The shipping index hasn’t shown any signs of an upturn in the last year. It trades about 90% lower than it was five years ago. If we look at Japan, the yen is down 30% in the last year, and the Nikkei is up 70% since November.
As we know, government debt in Japan is 200% of GDP which is the highest in the world. Total debt in Japan is around 500% of GDP and it’s accelerating. The Japanese bond market is also a disaster and will only get worse. Eventually Japanese bonds will become worthless.