Market Perspectives The Monetary Illusion

When such a newsletter comes from an institution such as Guggenheim, the soon-to-come problems America faces couldn’t be more surreal.

 

As economic growth returns again to Europe and Japan, the prospect of a synchronous global expansion is taking hold. Or, then again, maybe not. In a recent research piece published by Bank of America Merrill Lynch, global economic growth, as measured in nominal U.S. dollars, is projected to decline in 2015 for the first time since 2009, the height of the financial crisis.

In fact, the prospect of improvement in economic growth is largely a monetary illusion. No one needs to explain how policymakers have made painfully little progress on the structural reforms necessary to increase global productive capacity and stimulate employment and demand. Lacking the political will necessary to address the issues, central bankers have been left to paper over the global malaise with reams of fiat currency.

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Pope Finds 100s Of Millions Of Euros “Tucked Away”; Freezes Ex-Vatican Bank Heads Assets

As previously discussed here, it’s odd nobody read between the lines in the media spin right away. Now it’s gaining a bit of traction — and Zero Hedge is usually one of the first to be ahead of the trend.

 

It’s a miracle… The Vatican’s economy minister has said hundreds of millions of euros were found “tucked away” in accounts of various Holy See departments that were previously not counted on the city-state’s balance sheet. “In fact, we have discovered that the situation is much healthier than it seemed,” noted Australian Cardinal George Pell, adding that “it is important to point out that the Vatican is not broke.” Indeed a miracle – like hookers-and-blow in GDP data? However, the Vatican finances remain in darkness as Reuters reports, the state’s top prosecutor has frozen 16 million euros in bank accounts owned by two former Vatican bank managers and a lawyer as part of an embezzlement investigation into the sale of 29 Vatican-owned real estate in the 2000s. Continue reading