http://seekingalpha.com/article/147203-expect-a-market-crash-and-the-worsening-of-global-economic-time?source=email

Expect a Market Crash and the Worsening of Global Economic Time

• The usual talkfest prevails.
• Everyone will pat themselves on the back, proclaiming how they have “saved” the world economy.
• All will mutter something about China, the emerging superpower.
• The dollar will get some attention, but the problem is that its size alone makes it irreplaceable as a reserve currency.

• This will be discussed at the G8.
• But the representatives bravely HAVE TO talk up the world economy. Think of what would have happened had Prof. Bernanke talked of “black shoots” and not of “green shoots”?Then markets really would have tanked and things would have gotten substantially worse, “things” being banking bail-outs.
• In my opinion, the global Economic Time® has to keep worsening, i.e. the excess supply of goods has to keep intensifying, what with rising unemployment.
• Besides, the stimulus effects of what has been introduced so far are going to wear off, particularly in the West.

• With the worsening global Economic Time®, I expect a bifurcation:

• Overall, I expect worsening profits to set in. The only “improvement” will be some “rise” (= less rot) when compared to profits a year ago…

• Worsening Economic Time®: rising volatility is telling you this.
• Increased political tensions in Iran and North Korea.
• Market crash in October.