Thursday, July 13, 2017

No More Sheeple Left To Con

The problem with CasinoNomics is that it requires Central Banksters to con the maximum number of sheeple into taking maximum risk, at the maximum point of pain. And then they take the punch bowl away. Social Mood has peaked, Central Bank liquidity has peaked, Carry trade liquidity has peaked, Speculative appetite has peaked, Consumption has peaked, Global credit expansion has peaked, reflation has peaked...

You know, like 2007

Which means plus or minus a few Dow points, asset values have peaked. Because as Central Banksters have yet to learn, there is NOTHING reflationary about higher interest rates after an eight year debt binge:

"We believe that deflation is transitory. Fake reflation will return any minute now..."

Only one week ago via the Fed minutes:

"Everyone out of the casino"

Fast forward to today:

"Everyone back in the casino"

The fake reflation meme has spread from the U.S. to the entire world. Ironically on a day (yesterday) when the Fed signals it's done raising interest rates, Canada raised it's own rates for the first time in seven years. Because as we didn't learn in 2007, there's no better way to violently implode a housing bubble than to wait until everyone has maximum leverage.

No surprise, global banks have been enjoying a nice rally due to the fake reflation meme, however, we see via crude oil, that banks tend to be a lagging indicator relative to fake reflation:

"There's no subprime in Canada"

Social Media is "leading" this final rally, yes led by Facebook...

Google is not confirming:

Zuckerborg Shrugged

Mind the gaps

Zuckerborg rollover will begin wave 3 down...

Everything at the same time...