Friday, February 17, 2017

Time To Pay The Piper

"Post-2008 they borrowed their way out of a debt crisis in order to propagate their globalized exploitation scheme a little while longer. By the end of course, they had forgotten their end of the Faustian Bargain"

The difference between 2008 and now can be summarized in this chart of Industrial Machinery stocks versus Global GDP growth:

Trump's election is the circle on the right:

Marine Transportation stocks are up 20% since the election

But, watch out for fake news. You know, Rupert Murdoch & Friends...

Marine Transport stocks (red) with Baltic Dry Index

In a nutshell, gamblers have traded Monetary reality for fiscal fantasy. The had to get in ahead of the next fake recovery...

I think market participants likely are anticipating shifts in fiscal policy that will stimulate growth and perhaps raise earnings”

...Typically, that sort of pronouncement [about a March interest rate rise] would send stocks, which have benefited from a protracted period of ultralow interest rates and who aren’t eagerly pricing in a rate increase next month, decidedly lower. But it hasn’t slowed this market hopped up on Trumponomics, so far.

The fate of this key Trump agenda item, meant to eliminate the tax disincentive for producing in the U.S. instead of overseas, likely rests on adoption of a 20% tax on imports — which retailers like Wal-Mart (WMT) and Best Buy (BBY) are dead-set on stopping and which likely would violate World Trade Organization rules.

Tick tock

S&P versus rest of the world aka. the people who buy industrial machinery and goods shipped by Marine Transport...