Saturday, May 6, 2017

If At First You Don't Implode, Keep Lying

Capital(ism) is trapped by the poverty it created...

Apparently the goal was to "fix" the global financial system by increasing wealth inequality. It won't work, but don't tell anyone since it's still a secret. Contrary to ubiquitous belief, higher interest rates in a debt-based pseudo-economy are not "reflationary"...

The reason why there are so many casino croupiers on Wall Street is because gaming the next move of central banksters has become the only game in town. They don't give two shits about the economy, since for 8 years straight, a weak economy has meant more dopium. Only now that their vaunted fake reflation trade is getting obliterated do they finally want a strong jobs reports. No surprise, Friday's jobs report contained plenty of McJobs, however, via ZH, wage increases were missing in action: 

“The one disappointment was the fact that annual wage growth slipped”

"Least impressive is the increasingly influential average hourly earnings -- disappointing that the year-on-year is still so low”

Only disappointment was annual rate of wage growth

And on the "bright side":
"Downward revision to average hourly earnings “will ease the Fed’s mind that they are falling behind the inflation curve”"

Reflation = Higher Yields = Deflation
Unfortunately, for today's gambling class, the lower bound of deflation has meant more stimulus, whereas the ever-lower upper bound of deflation has meant less stimulus. By definition, reflation is only possible off of the lower bound, whereas deflation returns at the higher bound.

In other words, the U.S. and China are "reflating" the global economy by deflating it...

Like this:
Global yields (red), with global GDP growth (black):

If at first you don't final implode, keep lying...