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So now they say that recession is over.

The same people who didn’t have a clue about the economic crash that was about to happen, who said repeatedly that everything was fine before the deep dive of stock markets are now assuring you that everything is going to be fine, the worst is over.

Let’s use our brains a little bit:

Absolutely nothing differently has been done by Obama’s government. Actually the recipe for addressing this issue is exactly the same one that lead US and the whole world into this problem in the first place. Ridiculously low interest rates and measures to bring forward future economic growth in a non-sustainable manner so politicians and central banks could deliver “results” to public opinion and push the problem to the next ones to be in charge to solve them, that’s all.

Likewise in other countries, such as Brazil, nothing has been done in the last 8 years to improve the economic growth in any way. None of the important structural changes was even considered.

Any economic “growth” we can witness in US is nothing more than just future growth brought forward by artificial measures. It comes with an invoice yet to be paid by every single person on this planet.

Debt is skyrocketing, currencies and most assets are devaluating.

Allow me to illustrate what I’m talking about:

This chart shows some currencies and stock market indexes, all indexed in Gold. Imagine gold as a fixed unit of value, always equals to 1. Then convert everything else into this unit of value. That’s what you get.

Any number anyone gives to you should be analysed from this perspective.

With the exception of Brazil’s Bovespa, which goes irrationally against this trend (but not for too long) everything else has just lost value.

Unemployment, wages, house prices, revenues, profit margins… You name it. They are all still going down.

But don’t worry, that’s just the beginning. The worst is yet to come.