Defense spending is going down while Washington whitewashes the economic numbers. Bernake is shoveling $85B into the economy EACH MONTH! Growth is stagnant. Jobs are stagnant (many new jobs are part time as Obamacare ramps up. We are high on credit and short on cash. Big Ben has been inkling for a couple months that the shoveling of cash into the furnace might end in September. That will hurt this precious 5-year long "recovery."
The Eurozone is a disaster. Cyprus, Italy, Spain, Greece, Ireland and France are a disaster: high debt, low employment, no way out. The Germans hold the cards and the cash, and they have elections in September. The European Union might not have a big German brother to bail them out if the regime and attitudes change there. Who wants to keep bailing out these other nations?
Meanwhile, China has been cooking the books. Their economy is slowing and stagnant since they are tied to the US and the rest of the world. They are squabbling with Japan about islands (and oil and gas underneath them). Both nations recently launched their first carriers. Doesn't that sound awesome and peaceful? Oh, right, Japan's economy sucks and their little nuke plant continues to be one of the worst environmental disasters in history. No problem there!
War is a way out as many of these issues converge in September. The games and spending can continue while the world mobilizes and fights yet another war. This one could be big and nasty given the Russians have moved warships into the region (after tooling up during massive war games in the Far East), and the UK and France are moving air units onto Cyprus.
Cyprus...hmm...yes, where did I hear about Cyprus recently? Oh, right! Lots of Russian tycoons lost big money when they had a banking crisis just a few months ago. I am sure the wealthy Russians were happy to contribute. i am sure Putin never received any phone calls.
Yes....nothing to see here! Move along. The markets, banking and potential intervention are freak events. All coincidence....I am sure of it
The shit show is about to start. Grab some corn and a beer.