holmeswatsonbubbleIt’s not that hard to smash a Bric. All you need is the firm application of a taper to its surface. Whether the steps now being taken by central bricbankers will steady the crumbling Yellow Bric Road is doubtful; but either way, one fact is now shatteringly obvious: their main trump card of higher growth versus the Rich List has been played and burned. Effectively, the emerging markets are now in the same boat (albeit for different reasons) as China. And that in turn can only add to the inexorable data shouting “Global slump”.

Brazilian and Russian growth is today below the levels forecast for Britain and the United States for 2014. Even ten days ago, Paul Polman, CEO of Unilever, said there had been a “significant slowdown” in major emerging markets. Today, Indian central bank Governor Raghuram Rajan warns of a breakdown in global policy that must weaken emerging-market currencies from the rupee to the Turkish lira.

Astonishingly, tapering QE is having repercussions. Amazingly, it isn’t a solution for the globalists. Unbelievably – and surely something of an unforeseen consequence – it is making things even worse than they were when Ben Yellen & Ptnrs thought eternal stimulation might be the answer.

“Great Scott Holmes,” Watson ejaculated, “you don’t think….”

“I don’t think what?” asked the great detective, in his customarily clipped manner.

“Oh, you know old boy,” Watson blustered, “this demmed nerovisceral economic thing…you don’t think it might be, Heaven forfend, a complete load of old bollocks?”

Holmes sucked on a trademark deerstalker pipe, offered Watson a thin smile, and gave his verdict.

“My dear Watson, I fear you have been too long away from my 12% solution. Come with me to the laboratory, and I will set your mind at rest”.