Sunday, May 26, 2019

LOL.......STICK A FORK IN IT

For the past 10 years the "stock market" has been a zombie trading platform for algobots stripping the flesh off the carcass of what's left of Amerika. The rotting stench of capitalism is now dependent upon a collection of PhD's in physics and computer science from MIT, Harvard, etc  collating data to steal pennies on trades instead of inventing cures for cancer. 

The Fed decided to "save" the "stock market" in December of 2008 by implementing a massive artificial trading platform within the Fed itself. This platform was intricately connected to the algos within the major banks to "protect" our "market". Gaining and keeping the public's confidence was paramount to the December planners. 




There would be stumbles during the next years, but overall the plan worked. So here we are. The "stumbles" were often attempts to return to "normalized" market with a "normalized" interest rate or a "normalized" trading week (remember the "flash crash")... So yes it wasn't perfect lol.  You put MIT and Stanford rocket scientists in charge of the "stock market" and shit does happen. All of the hiccups in the machines over the past 10 years were repaired with V-shaped recoveries and restoration of public confidence. But WAS confidence truly restored or is something more sinister developing.

Tide of Public Opinion Is Turning In Assange's Favor.....tuff shit...
















The public may own the pitchforks but the big money is owned by a concentrated group of individuals that are becoming not only wealthy within this confidence game but increasingly more distrustful of it. They know that throughout history cycles will be obeyed and even though the algos saved the "market", this very algo complexity is its achilles heal. 

Morgan Stanley: "Something Is Not Quite Right"....no shit...here use my fork




The bubble this system has created is not a mirror of the underlying economy. In other words, blowing another algobot, debt driven, paper bubble did not have nearly the positive impact on most of Amerika that it did on a relative few inside the Wall Street  paper chase.

We did raise house prices. Now the average person cannot afford them. Now they cannot afford to rent these houses. We did increase car and truck sales.  We all have our new trucks. Sales are collapsing.  The Fed has begun "normalizing" interest rates in a completely abnormal "market" and economy. The collapse has begun. 

The question is what happens next? The leopard will not change its spots. The first step will be rapid interest rate drops later this year. It will fail without printed money and I mean massive printing. The trend is down without a massive underlying printing scheme. Enjoy the free money coming soon to a theater near you.






Sunday, May 19, 2019

THEY CALL ME BUBBLE BOY

A funny scene in the Big Short is a scene where the Deutsche Bank swap seller confesses to Mark Baum that his colleagues at Deutsche call him Bubble Boy and Chicken Little. I laughed out loud, realizing that I have fallen into that identity. As Jarred Vinnet was ridiculed in 2007, a small number of insiders/smart money were moving into the short trade. How can a bubble that was developing be so obvious, yet ridiculed to the point no one would bet against it? Your answer lies within the question. Calling real estate a bubble was publicly ridiculed in 2007. Its an age old insider strategy. Blow the bubble and then transfer your positions at the top while crying loudly there is no bubble. You give all the reasons that "this time its different".

You transfer the risk. You're out. The bagholders never believe they're the bagholders until they are trapped. There's always a reason its "different this time". For instance we now have the Central Banks uniformly "backstopping" the markets. Never mind they're just printing fiat and buying worthless assets. Its all good. The mantra that "this can go on forever" is now a predominant sentiment in the bubble riders. Reckless investments have been rewarded with the easy money backing their "brilliant strategy". What could go wrong?

The smart money will move into the assets that have not moved with this bubble and one of those assets is precious metals. Once they're positioned then the overt price move upward will be allowed. Yes, they do have that much control. gl

Saturday, May 11, 2019

ROLLOVER BITCHEZZZ

As sure as the rain. As certain as Winter. As sure as my death, the end of this ghoulish ponzi will come. You don't need me to tell you this. Its nature. Its been clearly told to the public by Greenspan, by Dalio, by Druckenmiller, and by many others too numerous to mention.  Even though these sage economic voices have been singing the song of doom lately, the Fed continues to chant a more sanguine tune. They play a tune that mesmerizes the masses and draws them into the paper casino ran by the bankers. It works. It has always worked for hundreds of years. Unfortunately history shows us just when your reach your maximum comfort level they will rip your head off and shit down your neck.



The World To America: "You're Fired!"....lol...absolutely its comin'


This time is different. Just like it was different before all our previous crashes. Every pundit that wants their mug on CNBS tells you the good times are not ready to end. They sell their version of Good Times Forever and wave the "all safe" flag and "buy the dip" every time the market chokes and pukes. Because the Fed keeps algobotting the market and printing, they look like geniuses. They pump companies like Uber that have no chance to ever pay off their enormous debt, much less make a profit. Meanwhile these zombie companies are putting real companies out of business as they steal customers from them with unrealistic business models.

We have levered up this whole zombie economy. Zombies are dead and like Zombies so is our economy and many of these corporations that compose it. Make no mistake. Our atonement will come. Nature wants revenge and you should know that revenge is best served cold. They will knock our asses off just when we least expect it for maximum damage. Poof!





Thursday, May 2, 2019

DEFCON 1

Sorry for my laxity in posting this past week, but the game is in such a complacency position I just didn't think it needed my CONfirmation. I do think a little reminder shock headline could get you to wake up enough to meander down to your local coin dealer for a shopping session. Locally the "great economy" is inducing some significant selling of physical metals by retail holders which to me indicates another "signal" the bottom in prices is near. 

Sadly, most of this selling is out of a "need" for cash to survive. A lot of suffering is becoming more evident in the real economy here as a "strapped" CONsumer strives to meet their debt commitment in a so-called "hot economy". I guess that for much of the economy, the uberfication of the "working man" just isn't providing enough "pop" to generate enough inflation for the Fed.

  • U.S. stocks are in a bear market because they haven’t returned to last year’s highs.
  • The U.S. debt and deficit are “out of control” because they’re growing during a strong economy, leaving little room to maneuver.
  • Fed’s Powell, during his last press conference, “looked scared.” The U.S economy is “rudderless,” Gundlach said.

So here we are lol. We have created maximum stupidity. The Fed is trying to drive up prices in energy and food while the bulk of workers are locked into dead end jobs with no hope of wage increases. Seriously! Its the definition of insanity. Oh, I know, lets combat high prices in essentials with raising artificially the minimum wage. LOL again you slaughter the entry level job market.

There really isn't a reason to beat this dead horse so I'll close out with this summary. We are entering the final phase. They will eventually have to print overtly. They will have to weaken the dollar. They are running out of time now. They will create massive debt as the momentum collapses in their "inflation" creation. This year will see RATE CUTS and Dollar decline. DEFCON 1 is here.