The Hunger Games Economy: Anarchy is on Deck

Extreme poverty is spreading rampantly across history's wealthiest country even though asset values have never been higher and the ultra-wealthy have never been richer. The bread crumbs falling off of the table are no longer sustaining the growing ranks of people discarded by the global ponzi scheme. The Central Bank engineered sugar high in social mood is rolling over concurrent with the stock market which means false euphoria is on the verge of turning to realization and rage. If people are suffering now with asset values at all time highs, then mass poverty on an unprecedented scale will occur after the crash.

Brace yourself. It's going to get Fucking Ugly. There is zero doubt about it...

Long-term interest rates are rocking higher - a wrecking ball for all risk assets - now colliding with the most overbought stock market in human history. 

Heading higher, but still well below prior levels...DEFLATION...

Real estate - no surprise, the one sector that really hates higher cost of money...

Municipal bonds - competing with real estate for "worst market" award. Apparently, Detroit was not an outlier...

Speaking of overbought - 

I widened the timeframe on the TRIN 200 DMA, just to see how ridiculously overbought this market has become...(low values indicate lack of selling)...

Bellwether Stocks

Johnson & Johnson (blue line) - ALWAYS peaks last...

Rolled over hard this week:

The Hunger Games

Walmart issued a major profit warning this week i.e. due to a joke economy in which jobless "consumers" can no longer afford the cheapest junk on the market.

CNBS calls it the "Hunger games economy" in which the rich get richer and the poor get poorer. Notice the dumbfuck in the article thinks that the solution is to keep Fed monetizations in place for longer. In other words, Fed policy has driven a chasmic gap between rich and poor by levitating assets, yet this guys sees this gap as an exploitable opportunity to drive assets even higher. What a totally fucking morally bankrupt society where attitudes like that are not even questioned.

Meanwhile, coincident with the rolling over stock market and hence social mood peak: Consumer confidence had its biggest drop on record this week.

Walmart (below) tends to also outperform at the end of the economic cycle - the recent July high was lower than the May high - a key divergence...

McDonald's also warned recently that sales of junk food to diabetic children were not meeting billionaire's expectations. Apparently people can no longer afford $2 malnutrition product...

When people can no longer afford to feed their children - which appears to be the case already - then this dumbfucked society and its buffoon leaders will find out the meaning of anarchy. This entire globalized fiasco was never more than a complete and total abdication of responsibility by global elites consumed with worshipping in the temple of greed. We are much closer to the brink than 99.99% of people realize. Kunstler wrote recently that we would hear gunfire by the autumn. That timing sounds about right...