Janet Yellen officially imploded the reflation trade this week, but not everyone got the memo:
Zombies are suffering Cognitive Sheeplism:
Being told one thing while experiencing the exact opposite:
"Trust me, the economy is strong"
The sheeple are being told continuously that stocks are at record highs "because" the U.S. economy is strong and the Global economy is strong therefore Central Banks are raising interest rates. All is well after eight years of economic quagmire.
Zombies are suffering Cognitive Sheeplism:
Being told one thing while experiencing the exact opposite:
"Trust me, the economy is strong"
In other words...
And there is nowhere left to hide...
"We successfully borrowed our way out of a debt crisis"
It never once occurs to them that they are being lied to by the same psychopaths as last time. This week, the Fed's entire fantasy reflation narrative fell apart. However, Yellen - who seemed to know in advance what Friday's deflationary data would reveal - amply prepared the casino ahead of time with the promise of ending rate hikes. Hence global risk markets ramped when they should have tanked. All good.
The problem for gamblers is that risk markets have been discounting Fed bullshit for eight months now: The reflation trade was already swapped out in favour of the deflation trade way back in December, meaning the reflation trade is long dead, and the deflation trade is eighteen months from its last meaningful pullback:
And now it has Bitcoin exposure...
And now it has Bitcoin exposure...
Which means that the usual doorknobs got conned AGAIN...
This time however Humpty Dumpty is going to be in a few million more pieces, since global Central Banks have all agreed to remove the punch bowl at the exact same time...
And therefore "no one" sees it coming:
And there is nowhere left to hide...
