We live in a dystopian Disneyland
This is not the post-truth era, this is the post-intelligence era. A lethal combination of junk media, Faux News, ad-sponsored brainwashing, disinformation overload, mass denial, and latent senility has coalesced to create a ball of confusion on an unprecedented scale. It's all worked great, because the dunces at large don't know whether to shit or go blind.
My subjective conclusion, based solely upon 25 years of IT experience, is that this is now a binary light switch scenario - now you see it, now you don't. Because there is not enough computing power to process what comes next. Rampant capitalism has put globalized capitalism at risk of extinction. The bid/ask spread between fantasy and reality is at least 10,000 Dow points wide...
As long as OPEC doesn't cock this all up, we're all good...
First off, in constructing a post-bailout global fake-wealth delusion of unparalleled proportions, Central Banks were not adequately attentive to their "exit strategy". Because there isn't one. In the event, they successfully substituted liquidity as a proxy for solvency, to generate their delusion. Now however, global liquidity is draining at an epic rate. And the only offset to exiting Central Banks is the onrush of capital by the greater fools who bought into the Jedi Mind Trick. The Fed is tightening on both ends - on the long end at an accelerating rate. ECB QE is slated to end in December. And the BOJ has run out of bonds to buy, implying stealth tapering.
That liquidity withdrawal was only made possible due to the onrush of greater fools who waited until the end of the cycle to enjoin the con job:
So in addition to sources of liquidity being removed and gamblers ALL IN, what other logs have been thrown on the bonfire of the sanities?
I won't rehash all of the macro risks - however between EM implosion, global trade wars, oil wars, and slowing global growth, there are a few things to ponder.
The Central Bank of India recently warned that Emerging Markets require the Fed to slow their balance sheet rolloff, which is why it's set to accelerate (by design), in July. Because to loosely paraphrase Fed Chief, Powell:
"Who gives a fuck about Emerging Markets?"
The Central Bank of India recently warned that Emerging Markets require the Fed to slow their balance sheet rolloff, which is why it's set to accelerate (by design), in July. Because to loosely paraphrase Fed Chief, Powell:
"Who gives a fuck about Emerging Markets?"
Then of course we had VixPlosion in February, which has already been long forgotten. What we've seen since that time is a rotation from quality stocks into the riskiest momentum sectors, led by junk internet and revenueless Biotech. A rotation out of safety into risk, caused by the biggest volatility explosion since 2008. It's all starting to make sense to the straitjacket set.
In considering all of the above factors in totality - which is strictly verboten by the way - because the mainstream corporate media police assiduously prohibit the connecting of two or more dots in a straight line, since plausible deniability is the opiate of the profoundly stoned masses - again, in consideration of the above, why is the burden of truth still on me?
As long as OPEC doesn't cock this all up, we're all good...
