Today on The Janssen Report: The People’s Bank of China (PBOC) just announced another round of money printing at 1.5 trillion Yuan, equivalent to roughly a quarter of a trillion Dollars. In the mean time there is talk of economic recovery, but on what grounds? Let’s have a look at some of the numbers, bearing in mind the massive monetary intervention by central banks around the world.

The US has a knack for reporting relatively good GDP and Unemployment figures and then revise them downward in the next period (when media interest for these numbers have faded). Recently the GDP growth figure for the first quarter was revised to -0.7% while previously reported to be at POSITIVE 0.2%. As I reported previously, I have also serious criticism on the Unemployment figure of 5.4%. I think it’s way too low.

The EU also doesn’t have much to show for. With the Unemployment rate still above 11% and almost no GDP growth (0.4% Q1), there is no reason to cheer. And I don’t think it’s going to be better in the short run. In fact, it will get worse.

The global economy is on life support. It’s addicted to QE (Quantitative Easing, loose monetary policy). If hundreds of billions of dollars, euros and yuan cannot create even the slightest recovery, why aren’t these methods questioned? What happens if we take the economy off this life support?

These easy money games are leading to financial destruction. And you and I are in this mess. If you want to protect yourself from it go to www.thejanssenreport.net/free-member and sign up.

Watch this episode of The Janssen Report here:

Sources:

• PBOC prints 1.5 trillion yuan: http://www.wantchinatimes.com/news-su…
• BEA GDP stats: https://www.bea.gov/newsreleases/nati…
• EU unemployment stats: http://ec.europa.eu/eurostat/statisti…
• EU unemployment calculation methodology: http://ec.europa.eu/eurostat/statisti…
• WSJ on GDP in Europe: http://www.wsj.com/articles/french-ec…

Cheers,

Marco Janssen

The Janssen Report