The globalized economy is a colossal Ponzi Scheme in which the vast majority survive on the bread crumbs falling off the table. The possibility of 7 billion people achieving a consumption-oriented lifestyle is zero, so the World Bank conveniently set the poverty line at $1.25/day to legalize global slavery. As long as someone else's children are doing the suffering, it's "all good". Post-2008, this illusion was extended merely by plundering all future generations.
Tuesday, October 9, 2018
The Second Coming Of Bozo The Clown
Those who believe that Trump is their saviour need to learn a hard lesson in what is right and what is outright fraud. Because they didn't learn anything from their last Bozo... Stock market pundits are quick to point out that on average September is the worst month for stocks. Be that as it may, all of the biggest crashes came in October: 1929, 2008, 1987:
"In many aspects, the current constellation reminds us of what happened in autumn 1987:
Fed was hiking rates deploying a hawkish tone
Chair Greenspan hawkish rhetoric
global economy seemed to trail the US… supported by the second Reagan tax package kicking in in 1986
The consensus assumed the rest of the world (RoW) - notably Europe - was running wider output gaps and hence was surprised when the Bundesbank withdrew liquidity in September 1987."
In other words, the above warning is essentially identical to what Trump warned of less than two months before he became "the second coming of Jesus". And he had the gall to call the Fed "political" while he has ignored his own warning for the last two years straight while inflating the bubble with constant bullshit and a massive bubble-expanding tax cut. Now he blames the new Fed that he himself appointed for raising rates too fast, despite the fact that Trump threw four percent of borrowed GDP onto the end-of-cycle bonfire. He has the economic sense of a bankrupt casino operator turned reality TV game show host.
Getting back to October, and the topic of Europe. Here we see the German DAX at key support. 2018 has been identical to 2008:
The "retail is saved" stock buyback funded delusion just turned back into the "retail is dead" pumpkin
Homebuilders now in a bear market
Global trade wars
Momentum RISK OFF
Record rigged employment stats
What's more believable, that it won't happen, or that it's already well underway?