The globalized economy is a colossal Ponzi Scheme in which the vast majority survive on the bread crumbs falling off the table. The possibility of 7 billion people achieving a consumption-oriented lifestyle is zero, so the World Bank conveniently set the poverty line at $1.25/day to legalize global slavery. As long as someone else's children are doing the suffering, it's "all good". Post-2008, this illusion was extended merely by plundering all future generations.
"There are times when an investor has no choice but to behave as though he believes in things that don't necessarily exist."
Stop me anytime...
"The truth? You have to reject it"
"For us, that means being willing to be long risk assets in the full knowledge of two things: that those assets may have no qualitative support; and second, that this is all going to end painfully."
"Kindelberger's Manias, Panics and Crashes...has been absolutely detrimental to my investment performance for the last six years and as a result I have changed"
"I still believe that the attempt by central bankers to prevent the private sector from deleveraging via a non-stop parade of asset price bubbles will end in tears. But I no longer think that anyone can say when."
Gambling with Other People's Money. Visualized.
% Bearish 2-year moving average
The hook is set. This is the one that brings down the casino.
The truth is unthinkable, so the lies just keep getting bigger
Picture Bernankenstein right now running around bragging that he saved the world by burying us in debt. The lies just keeping getting bigger and bolder, ever-more ludicrous. We are well past the lying stage and into the dementia stage. The psychopaths believe their lies, because they've been telling them for years and decades. They can't admit any of it's a lie or else it would all unravel. They would have to admit that they have no fucking clue what they are doing, and never did. The entire narrative would dissolve. When did the lies even begin? When did University and higher learning turn into a drunken frat party?
"Investors just poured $36.5 billion into U.S. stocks last week, the biggest inflow on record. Foreign markets saw continuing net outflows".
Richard Russell: “My belief is that the coming of the stock market boom will envelope everything from housing prices to precious metals to all commodities,” Never mind that the airline index is up 60% since the October low i.e. 300% annualized
Deflation is consumption stolen from the future, which unfortunately is "Now"
The deflationary "hypothesis" is premised upon Third Grade logic and observation, which is now obvious in broad daylight. There are natural limits as to how much consumption can be stolen from the future, even - or indeed especially, in a 0% interest rate environment. When standards of living are falling versus rising, as they are now, then nominal interest rates can remain at zero, whereas real rates of interest/debt service are actually rising. Again, none of this is rocket science, it's all highly intuitive and unavoidable. Only by wiping out the legacy debts can the deflationary burden be lifted. And additionally, in PonziWorld, trade with Third World nations must also be curtailed or else unlimited labour deflation aka. poverty, will continue to be imported, destroying the Middle Class.
Peak Debt Visualized
1. There are natural limits to debt accumulation
U.S. Total debt as ratio of GDP - versus Fed Funds Rate
"The stock market's unprecedented consistency in 2014 generated a trading maxim that echoed on trading floors and social media on a daily basis: Buy the dip. And traders see no reason to abandon this simple, but money-making credo in the new year."
Record winning streak, unprecedented in stock market history
The S&P 500 had no losing streak longer than three days at any point this year. The prior annual record was four days.
"As a result of the bull run, the index closed at a record on 20 percent of the trading days this year, more than any year since 1995."
The Skynet One-Way Trip Visualized
Margin debt (black line) versus trading volume (red line)
Hedging Interrupted Index Put/Call
Oil collapse? Russia? Greece? Dubai? Junk bonds? Commodities? Bogus recovery? It's all good - Buy every dip and pray for ever-more fools to come after...
"The American economy grew last quarter at its fastest rate in over a decade, providing the strongest evidence to date that the recovery is finally gaining sustained power more than five years after it began."
The "recovery" that wasn't: A doubling in National Debt bought per capita GDP lower than 2007
Perhaps I should have been clear about that from the beginning.
The saddest part about this insane and immoral era is how many comfort-seekers just want to cling to "this". This pointless rat race to nowhere. Life reduced to Keeping up with the Kardashians and the Dow Jones's.
Humanity wasted. Money wasted. Resources wasted. Planet wasted. Youth wasted. Life wasted. All while vacuous buffoons clogged up the airwaves with non-stop bullshit. Who didn't think this was all ending when Hollywood actors were nominated to play President? Plenty of notice.
I'm not afraid of death, I'm afraid of not living, the way human beings were intended to live. This generation has to "fix" this, or there will be no next generations. Unfortunately, we can't get started until the pretending comes to an end. The Occupy Movement taught us that much.
Granted, not everyone survives what comes next, but let's face it, not everyone wants to. They had their day at the mall, betting it all on the status quo. Human call options. I'm an optimist, not a self-imploding denialist.
All while NeoCon artists put every effort into carpet bombing foreigners into embracing highly "Exceptional" junk food and junk culture, while still other demented fucktards believe that the moon landings were faked.
Working backwards from today's Idiocracy, it is wholly implausible that the U.S. ever went to the moon, so anyone born in the South Park generation is fully justified in their inbred cynicism. Why would anyone who has never seen a deep space astronaut take flight, believe that someone walked on the moon almost half a century ago? At this point in time, those landings may as well have been fake for all the good they do the Kardashian-set.
The slow passage of time convinces the masses that nothing has changed. When in fact everything has changed. The only thing left is the hubris. But... Granted, the U.S. is still the tallest midget in the Circus, at least in nominal Dow terms.
"the Central Bank of Russia continues to provide refinancing in exchange for non-marketable securities that banks can generate in almost unlimited amounts"
Let's get this straight, Russia raises the interest rate to 17% to "defend the ruble", but then hands out unlimited amounts of newly printed money, taking fabricated "non-marketable" collateral as security. I call that a "brake stand" - the accelerator and brake fully applied at the same time. Should work great. Yet again, lenders get bailed out while borrowers get shafted with 17% interest rates.
HOW TO IMPLODE YOUR ECONOMY THE FASTEST WAY POSSIBLE.
Triple the interest rate in less than one year, while oil and the ruble get cut in half:
"While we agree that some overvalued, money-losing companies like Twitter (ticker: TWTR), Workday (WDAY), and Splunk (SPLK) do recall the dot-com mania of 15 years ago, the situation today is fundamentally different."
Wall Street has figured out that the secret to maximizing profits is to incubate companies longer and then dump them onto the public at peak valuation.
"The market for privately owned companies has become today’s version of the Nasdaq in 1999. As of September this year, according to Dow Jones Venture Source, the median late-stage venture-capital-backed company was valued at $250 million, a record high and far larger than in the bubble days, when the median private-company valuation peaked at $89 million."
December 18th, 2014 "Every day – every single day – we are at risk of a market meltdown that would wreck our economy even worse than the 2008 crash did, or even than the 1929 crash did," Rep. Alan Grayson (D-Fla.) told HuffPost. "Six years after the fact, we have taken no significant action to reduce the Wall Street gambling or 'too big to fail' concentration that caused the 2008 crash. If we can’t even implement the Volcker Rule, an extremely modest effort to stave off total disaster, then total disaster is exactly what we can expect."
"the bill also contained a provision, said to be written by Citigroup, repealing a key part of the Dodd-Frank Act."
"The provision enables the big banks once again to use insured deposits and other taxpayer subsidies and guarantees to gamble in the derivatives markets—the very type of business that drove the 2008 financial crisis and the economic devastation that followed."
"Wall Street had finally found the perfect moment to reshape financial regulation—less than three hours before the government was about to run out of money."
[The bill was signed into law this past week, by Obama]
“In the current election cycle, Wall Street banks and financial interests have so far reported spending more than $1.2 billion to influence decision-making in Washington, according to an updated report by Americans for Financial Reform. That works out to just under $1.8 million a day. It represents an average of about $2.3 million spent to elect or influence each of the 535 members of the Senate and House of Representatives.”
"The Federal Reserve on Thursday granted banks an extra year to comply with a key provision of the Volcker Rule, a move that gives financial lobbyists more time to kill the new regulation before it goes into effect."
"The Volcker Rule is a key element of the 2010 Dodd-Frank financial reform law that bans banks from engaging in proprietary trading -- speculative deals that are designed only to benefit the bank itself, rather than its clients."
"Every day – every single day –- we are at risk of a market meltdown that would wreck our economy even worse than the 2008 crash did, or even than the 1929 crash did," Rep. Alan Grayson (D-Fla.) told HuffPost. "Six years after the fact, we have taken no significant action to reduce the Wall Street gambling or 'too big to fail' concentration that caused the 2008 crash. If we can’t even implement the Volcker Rule, an extremely modest effort to stave off total disaster, then total disaster is exactly what we can expect."
"The ancient Rabbis contrasted God's sovereignty with the rule of Rome. Rome seeks its own glory, wars against other peoples to subjugate them, revels in material existence, lives off the work of slave labor, allows many to die of poverty and starvation, and promotes entertaining circuses and gladiator spectacle. The Rabbis, picturing redemption, remark that the messianic age will be recognized when an end is brought to the rule of wickedness." - Solomon Schechter
Don't think it can happen? That is of course the whole point.
By all logic, facts, and reason, this debt-sponsored fabrication should have collapsed a long time ago. Only Russian PhD programmers can explain mathematically how this all stays together minute by minute. So of course, when it didn't collapse on time, that gave the masses the plausible deniability they so desperately needed to believe in the indefinite impossible - a necessary and sufficient condition for self-implosion. Now that everyone is onboard with the Harvard borrow-your-way-out-of-debt-crisis strategy, the outcome of this final disaster will be ruthlessly devastating for the overwhelming majority, apparently as was intended all along, by the higher power.
Rule #1 of Survival: Never believe in lies, proven liars, or Spanish bond yields at 1.70%...
"There is no dissent on the market’s future direction" Groupthink "Is a psychological phenomenon that occurs within a group of people, in which the desire for harmony or conformity in the group results in an irrational or dysfunctional decision-making outcome. Group members try to minimize conflict and reach a consensus decision without critical evaluation of alternative viewpoints, by actively suppressing dissenting viewpoints, and by isolating themselves from outside influences." BonusThink: When a bunch of overpaid clever dunces "collaborate" in assuring investors that stocks can only keep going up, in order to con the sheeple into throwing ever-more money into offshore bank accounts, until there is no one left to con and the entire ponzi scheme collapses with extreme dislocation. Yes, again. The only dissent is from Skynet, which controls 75% of the Market NYSE 52 week highs - lows (weekly)
Disaster Refinanced Unfortunately, via 3rd grade logic, the dunces who created this serial clusterfuck can't fix it. Their solution to a disaster caused by three years of 1% interest rates, was to give six years @ 0% interest instead: