Friday, August 3, 2018

America's Last Competitive Advantage: Bullshit

It's abundantly clear based upon today's level of denial that the 1997 currency crisis was a minor event. Y2K is long forgotten. 2008 was a figment of the imagination. 2015/16, big deal. VolPlosion, so what?

It's called: "Teach me a better lesson this time"

I said a week ago, that this would be one hell of a week, and it surely was: Three major Central bank meetings, Tech implosion, escalating trade wars, China currency implosion, oil rollover, jobs report, and Apple moonshot. Compliments of outstanding bullshit, the reflationary hoax survived another week...

Six months ago the entire world was in agreement with the U.S. on synchronized reflation, now the entire world is in complete disagreement:

Today we learned via the expanding trade deficit that Trump is actually losing the global trade war. The combination of retaliatory trade actions, self-inflicted housing implosion, and weakening of non-dollar currencies have put the U.S. at a competitive disadvantage. Recession stocks are now leading the U.S. stock market. Listening to non-stop bullshit on CNBS one would have no way of knowing. There is way too much ad-sponsored mass confusion right now. The last competitive advantage - blowing smoke up everyone's ass.

The combination of Trump b.s. and the Fed believing Trump's b.s. is imploding the U.S. economy. Recession stocks are now "leading" the market albeit from behind:

These recession stocks are holding up the S&P while the cyclical-heavy Dow and the Tech-heavy Nasdaq take turns imploding and rallying...

The net effect of Apple's moonshot was to further the extreme reliance on a single stock to bolster the casino:

With the rollover of the animal spirits, one wonders why is this divergence between U.S. and International markets still persisting in the face of ludicrous risk:

It appears the answer lies in the quality of the con job:

And to be sure, it certainly worked: