In today's fiscally profligate world that is a thundering tell. What it signifies is nothing less than financial regime change. There are no markets left in any meaningful sense of the word - just a raging casino infected with the madness of the crowds and the central bank pied pipers who mesmerize them.

Every day there are new confirmations of the mania. Last night, for instance, the Shanghai stock market closed up another 2.4%, meaning that it is now 114% above its level of just 9 months ago!

And what has transpired in the land of red capitalism during that parabolic move? Why everything has gone virtually straight south because the most fantastic credit bubble in recorded history is beginning to burst. That is, notwithstanding Wall Street's sell side propaganda, China's vaunted $10 trillion GDP is not capitalist GDP in any familiar or meaningful sense; nor is it the product of organic market-based economic growth.