Thursday, November 26, 2015

An Inconvenient Monkey-Hammering

"The free lunch club hid in the Dow Jones Illusional Average to the very end, no clue they were being sold for special dividends..."

0% interest rates and competitive currency debasement are the desperate end-game for a Globalized pseudo-economy featuring supply with no demand.

Third World factory slaves and automated robots have zero demandSomething today's corporate Lost Boys are finding out the hard way, one imploding sector at a time: HomebuildersFinancialsEnergyInfoTechSemiconductorsCommoditiesShippingIndustrialsConstructionMaterialsMachineryBiotechIPOsRetail ...

Those who believe that *free trade* is a free lunch, will end up bankrupt...

This last blip "rally" was short-covering in retail ahead of Black Thursday in case Walmart sells more cheap junk than expected...

Mercantilists' Law: Any country that takes jobs and industries for granted, will end up with none:

1664: Thomas Mun:
"the Balance of our Forraign Trade is The Rule of Our Treasure"

This entire Globalization era has been a head to head competition between the wholly specious fantasy of Comparative Advantage (*Free Trade*) versus good old fashioned Competitive Advantage (Winner Take All). And only one side won. Granted, empty factories and ghost cities are a pyrrhic victory for China's neo-Mercantilists. 

When Econo-dunces invented the asinine concept of (jobless) "consumer", from that point forward, it was game over. That meant supply would end up in one locale, and demand in another locale, for maximization of short-term profit. An industrial arbitrage brokered with debt, and ever more fiscal and monetary stimulus to paper over the ever-widening output gap, until it all collapsed with extreme dislocation.

Free trade fucktards: "We make the best cappuccinos ever"
2008 was the wake-up call, so the Idiocracy hit the snooze button...

Q3 Dow (20/30 stocks with lower revenues):

CNBC: Nov. 23, 2015
Insiders Are Selling At the Fastest Rate In 4.5 Years
"Revenues": Bernie Madoff is wondering why he's in jail...

Mind the Gap: Deja Vu...
Gap stores

Mind the GAAP: The hardest landing 
S&P Profits w/interest rates:

Mind the gap: