[According to Steen Jacobson] there will be no further recovery. We have already enjoyed the good times for this cycle.. The rise in average 1-year rates from 1.50pc to 1.95pc in the G10 economies over the last year has already been enough to push the whole fragile edifice over the edge once again -- albeit with a lag. "The world is in depression. There is no way it can survive higher rates," he said... The S&P 500 index of stocks on Wall Street will give up all of the QE3 gains, sliding down by almost a quarter to 1,400 in a year-long bear market.


The rise in the euro to almost $1.40 will scupper Europe's very weak recovery -- if you can call it that -- and push even Germany to the brink of recession by the end of the year. A perfect currency storm is coming as Europe and the US pull in different directions, with the of ECB opening the door to QE while the Fed is turns off its liquidity spigot.


Don't count on Abenomics in Japan to help... The Topix in Tokyo is already back to where it was fourteen months ago, as if the whole great experiment were a mirage.

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