Tuesday, May 14, 2013

Moral Collapse to Market Collapse

I was holding off from posting, because nothing ever changes: Same old, same old - markets levitating daily due to Central Bank interventions, while the Idiocracy at large looks the other way - desperate to believe that printing money can substitute for fixing the real economy.

It's frustrating living in a superficial fantasy bubble devoid of all reality, to be sure. But considering that this society has no problem bankrupting its own grandchildren merely to maintain phony appearances, then no amount of financial chicanery is beyond its reach...

Central Banksters Have Lost Control of their Deflation Monster - Even Though the Real Deflationary Collapse Hasn't Even Occurred
This week marked no less than the 511th global central bank monetary action to "spur global growth". Central Bankers are desperate to use the only tool at their disposal - the money supply - to pump up their lifeless economies. If you can't have a real economy, may as well print new money for governments to spend to maintain the illusion of economic solvency for another day.

You would think that after this many monetary actions, they would start to realize that they can't beat global deflation. The relentless downward pressures on prices and demand were ironically caused by failed monetary policy in the first place i.e. low interest rates and too much borrowing, all made possible by importing Third World wage deflation. How is it that these morons don't realize they can't solve a problem that they created, by using an amplified version of the same policy of debt subsidization - that caused the problem in the first place?  Now that is the ultimate form of self-delusion - like spraying gasoline on a fire, thinking they can put it out. These forces of deflation, were their doing. Heavy debt loads combined with globalization, are killing demand, as wages and buying power are constantly being depleted. Only the ultra-wealthy have disposable income now, so this entire asset levitation policy assumes we can all live off the bread crumbs falling off the big table. 

It's all yet further illustration of rampant corruption. Policy-makers are forced to adopt the only short-term and moronic policy that the public are capable of politically accepting i.e. that there is yet one more easy way out of a bad situation that was caused by decades of finding the easy way out of a bad situation. 

Granted, this market has gone up farther and longer than anyone predicted, because who knew there were so many fools with money available to throw at such a phony contraption? So, once they track down the last fools and get them all onboard, then the market can do its other *special* trick which is to go far lower, far faster than anyone expects. In the meantime, the silence of the lambs and the media at large, can just be taken as a sign of their overwhelming compulsive addiction to simple answers to complex problems.

Here is the Twitter version of what I just said, from the 6th largest asset manager in the world w/$1.8 trillion in assets under management: