David Hunter: We have entered a Bear Market

David Hunter, writing for the Casey Daily Despatch, claims that we have entered a new Bear Market. What? No increase in interest rates and still he hears the bear growling?


Hunter claims that the Bear Market is a deflationary Bear Market that is fueled/caused by the FED slowing its money printing.


Japan. After a solid first quarter, the bottom dropped out of the Japanese economy  in the second quarter. Apparently, during Q1 the Japanese business bought and produced what they could to beat the tax increases in Q2. The Japanese have embarked on an orgy of Keynesian moves: deficit spending, money printing, low interest rates and propping up underperforming businesses. As a result, Japan can not rid itself of failing businesses, which distorts credit allocation.


Italy. In recession.


Germany.Ma y be in recession or very close.
Spain, Portugal, Greece. Rumors of recovery have been exaggerated.
Russia. Western machinations hurt the Ruble, down 20%. Economy is sagging.
China. Having problems with credit, unwinding bad loans and such. Fast growth has slowed.


The US is losing the race to the bottom and the Dollar is skyrocketing again. It will hurt exports.