[Peak Credit] update

There hasn't been much real change in trend relative to the model in the backlink but this time I am providing the chart in log scale for the first time which likely changes the count per below.  Soon enough, I reckon, we will be hearing about liquidity problems which is really to say about solvency problems due to shortage of credit in a debt based economy.




While peak credit has not arrived yet, I think the global effectiveness of credit probably has.  In other words, in every Ponzi scheme there comes a point of diminishing returns and then, not long after, negative returns.  The marginal players are hit the first and the worst and so we see the Chinese stock market tanking.   Is it just a coincidence that the fat part of FXI collapse happened around the same time that Nigeria rounded up its central bankers and slapped several of them with criminal charges?  Maybe, just maybe there is another explanation - that peak liberalism has hit in the mood of the herd.  As true conservatives take control (Note: neither GOP nor Dem establishment are in any way conservative) we should expect them to begin creating laws and rules that effectively shut the debt Ponzi down.  Not because they want to, mind you, but rather because they are becoming afraid of screwing the people so hard that the people have nothing left to lose and thus come gunning for them in the middle of the night.