That's because the emerging stock market slump isn't just another cyclical correction; it's the opening phase of the end-game.

That is, the end game of the PhD Tyranny.

During the last two decades the major central banks of the world have been colonized lock, stock and barrel by Keynesian crackpots. These academic scribblers and power-hungry apparatchiks have now pushed interest rate repression, massive monetization (QE) and relentless rigging of the financial markets to the limits of sanity and beyond. Honest, market-driven price discovery is dead as a doornail.

No more proof is needed than the "matrix" below. The very thing that financial history proves, above all else, is that governments can't be trusted to honor their debts.  And that cardinal fact is supposed to be embodied in the yield.

In fact, modern welfare state democracies have a veritable fiscal death wish.

What else can you call Japan's announcement to defer yet again an increase in the consumption tax? Its public debt is already at 240% of GDP, even as its tax-paying population is rapidly streaming toward it's national old age home.