Tuesday, November 15, 2016

"Good News: There's A Light At The End Of The Tunnel"

Global markets were "shocked" by Brexit and shocked again by Trump: Positioned 180 degrees wrong in both cases, so there's zero chance the entitlement class will see this coming...

Today's game show hosts in leadership can't fix the problems, because they are the problem. Until there is an element of "shared pain" resulting from Ponzi collapse, the charade will continue...

Trump is now controlling Monetary Policy via his reflationary false dawn.

Deja vu of 2008
Banks (black) with U.S. 10 year yield (red):

Not everyone was fooled...

"The rest of the what?"

Today's CasinoClass will do and say anything to propagate the corrupt status quo - including nominating ever-more buffoonish and facile clowns for public office to entertain an ever-more stoned Idiocracy. The only consistent theme from the past three decades has been deflation, deflation, deflation as multinational corporations seek ever cheaper locales for production. And the gap between supply and demand grows wider with each passing day.

Now these corporate mega-dunces are investing poverty capital into job automation, to further hasten their own bankruptcy when the jobless consumer inexplicably disappears. We'll have driverless trucks bringing truckloads of unsold merchandise to ghost cities. Genius. 

As far as Globalization goes, the death knell is tolling. Global merchandise trade in ABSOLUTE dollars is already falling:

In the U.S. the output gap never recovered from 2008:

GDP - Potential GDP:

Which means despite what everyone and their dog thinks about bonds, yields are going MUCH lower...This being just the latest false dawn in an unbroken history of false dawns...

Speaking of competitive debasement, Ponzi schemes don't go in reverse:

The TrumpNado has fatally monkey hammered the world's second largest economy and marginal consumer of everything on this planet...