Saturday, September 19, 2015

Conned (Again) By Idiots: Recession At 0%

The recovery has been postponed until never, due to the missing economy
Fed Central Planners just delayed the first rate hike for the 55th time this week under the assumption that they have forever to normalize policy prior to the next recession. That is their massively flawed, hubristic and asinine assumption. The business cycle is controlled by more than just 0% interest rates. 

Based upon the stock market, the Fed should have finished raising rates months ago...

Blue vertical line shows last two times Momentum (lower pane) was at current levels. Measuring blue line to peak interest rates shows that the Fed should have finished raising rates a long time ago...

The most interest rate sensitive sector is Telecom which peaks concurrent with interest rates or shortly after. If Telecom has peaked, then interest rates should have peaked long before...

Telecom peaked 8 months ago:

Forbes March 14, 2014
How Long Will The Current Expansion Last?
Since 1854, there have been 34 economic expansions, with a median span of 30 months, and an average duration of 39 months. This current expansion as of September 2015 has lasted 70 months i.e. 5th longest on record:

"Then the economy was outsourced to China and replaced with recurring fiscal and trade deficits aka. Ponzi debt. Econo-dunces spent years waiting for the economy to float back from China, when to everyone's shock and awe, China imploded taking down the entire shit show"

Capacity utilization with interest rates

"But 0% interest rates creates automates jobs"
Interest rates with the employment-population ratio

Bonds can't be conned by idiots