Thursday, March 2, 2017

MASS INSANITY: Eager Self-Implosion

How can we stop them from self-destructing? We can't...

How can so many economists be wrong? Because they were never right in the first place. The same EconoDunces who evince 100% confidence in Globalization, have absolutely zero clue how it actually works. Because it doesn't. It's supply and debt versus supply and demand. But they get to find out the hard way. The overwhelming majority of people don't believe in or are even aware of the concept of Social Mood, that's why it works. No one will be able to live down the idiocy of today. No one...

There's only one thing guiding this society right now:

This is all mass insanity on an epic scale. 100% euphoric Social Mood guiding groupthink down to the collective IQ level of a shoe size. A circle jerk of dunces blowing smoke up each others' asses non-stop via their beloved Faux News and other corporatized media.

If you asked any one person - is it possible to borrow our way out of a debt crisis. Don't be ridiculous.

Is printing money the secret to effortless wealth? Of course not.

Should we trust Wall Street after The Big Short. I don't.

Except unfortunately of course in sum total, this society believes all of those things 100%. 

It's the triumph of human fantasy over god given reality. Stoned gamblers bought junk reflationary risk assets, and now they're looking for the pony in their pile of shit. Buy first, make up reasons later. 100% Elliott Wave Theory. 

This entire reflationary rally is just a circle jerk of global proportions. Everyone believes it, including the Fed with their magic 8 ball...

Unfortunately, however, global markets are starting to disintegrate due to this pervasive fantasy of U.S. decoupling from the rest of the world.

Yesterday, I showed the bond market's cognitive dissonance with fake reflation:

No surprise, commodities are now also buckling under the pressure of this dollar reflation:

CPI versus Commodities. Been there, done that...

Oil is next to get monkey hammered by delusion:

Here we see inverse dollar (red) beckoning oil lower:

And as I've shown, oil is not technically strong right now, due to the massive overpositioning by hedge funds.

And due to the collapse in volume and volatility since the start of 2017:


Meanwhile, the Yen carry trade is taking its lead from bond yields, broadcasting the fact that this is all just a self-destructing rally to nowhere...

3 month yield (black) aka. "Fed", versus USDJPY. We know who was right in 2016, because the Fed put off rate hikes for 12 months...

Emerging Markets are likewise rolling over

Gold stocks not buying it...

"No one was allowed to see it coming"