The zero coupon is back on the block. With yields being pushed towards zero, it is the closest thing to a saving account without the risk of depositing it in a bank.
The reason is simple: there is no place to invest. Even the dollar which was challenged, remains the denomination of choice because there are no other safe assets.
Newspapers have died because the hussle of the web is always connecting people through failed business models.
There are reports of companies eliminating the word innovation from their vocabulary because in reality most people don't know what it is. As soon as an innovating idea comes up anywhere is already a threat to the already established law of diminishing returns.
Spain is next, France is a rumor, and Germany is hesitant to serve anymore on the silver platter.
The country who was always the rescuer of last resort is unable to rescue other countries nor engage in any side of the world anymore.
China's slowdown is hitting the BRIC especially the B, the C, and Australia.
Now they call the future:
- The next 11
- The MIST
- The CIVEST
The M is Mexico. The I stands for Indonesia. The S is South Africa or South Korea. T is Turkey. What is different is that the R has dropped from everywhere which was usually reserved for Mother Russia. And many other predictions.
There is a theory that describes how the ups and down in history have an amazing correlation with 50 years intervals of innovation. This Kondratiev wave theory was correlated by others that matched it with technological revolutions.
The 50 years of innovation fueled unseen growth followed by 50 years of slow down or contraction. The slow growth phase was characterized by the implementation of the innovation from the previous 50-year cycle cannibalizing industries and squeezing margins from slow growth industries.
I came across this graph in the 1990s, and it placed history at that moment towards the end of the 50 year innovating cycle.
It has been the most accurate predictor of current times while everyone spoke of a self regulating financial industry that crashed, the promise of the web, and the rise of a global economy.
