Sunday, November 29, 2015

Printing Money: The Idiocracy's Secret To Effortless Wealth

To a de facto Idiocracy, everything's a "Black Swan event"...

"When all else failed, they used printed money to boost the stock market, while corporations outsourced the economy for special dividends. The Idiocracy was shocked and outraged when it collapsed with extreme was clearly a Black Swan event, totally unpredictable..."

CNBC: Nov. 29, 2015
QE Quarterback: QE Failed to Help the Economy
"After three rounds of QE, the central bank has begun to question its own results...Consumer spending over the last seven years has been the most anemic on record...More recently, the head of the St. Louis Fed said there was no evidence that asset purchases provided ballast to growth. To be certain, the Fed's bond buying has its fair share of defenders..."

"Let's be clear about this: Printing money is not the answer to every economic ill..."

But when you need that "extra push to get you over the cliff". Where do you go?

The Jedi Mind Trick For Stunned Dunces aka. "Over the Cliff"
"We pushed the market way above its true value..."
Fed balance sheet (red) with interest rates (green)

"Fuck 'em, it can't happen to me..."
Foodstamps (recipients) (green) with Fed balance sheet

The Fed is way late raising rates according to the stock market...

The last two times momentum was this weak (aka. market top), the Fed was already easing...

Lowest market liquidity in 8 years...

Banana Republic liquidity. One better than 'Lord of the Flies...'
Average S&P futures liquidity by year (colour coded) and time of day bottom scale...