On a long enough timeline every denialist moron gets monkey hammered by inconvenient reality. The MAGA echo chamber has done everything possible to ensure it happens. From a stimulus standpoint, this is the best lubricated circle jerk in human history, with no comparison. But don't take my word for it:
Jackpot!!!
"We're either the smartest generation in U.S. history, or as dumb as a fucking brick. Bet accordingly."
“We’ve got an explosive combination of monetary and fiscal policy right now,” billionaire investor Paul Tudor Jones says.
Sadly, there is no safety net beneath this Roman Circus. It was squandered creating this fabulous self-exploding illusion of prosperity. Remember, this is what today's bailout junkies fear most - a monetized deficit to benefit the middle class aka. "Socialism". But when it's to their sole benefit, it's a beautiful thing to behold. Capitalism has been saved. Because in a 1000% Idiocracy, it's always better to give free money to people who don't need it, than to give it to people who do. Make no mistake, socialism is by far the best outcome for what comes next. Only arrogant dumbfucks believe they deserve more.
My entire lonely hypothesis, is that like artificial intelligence, simulated prosperity is not as good as it sounds. The weaponization of these two devices against the masses explains why even at this late stage, the burden of proof remains on me. The populace at large having been massively drugged by the virtual simulation of prosperity and its acolyte, QE.
And non-stop Twitter bullshit. The whole reason a sociopathic liar was chosen to make this circus great again, is because no one else was up to the task. They searched every carnival to find the right barker...
Central banks, understanding the limits of monetary lubrication have been demanding more "fiscal" stimulus for ten years straight.
What they got via the Trump tax theft was borrowing 5% of GDP to be absconded to the Cayman Islands with a billionaire's marginal propensity to spend the limit approaching zero. Now producing GDP growth at 0%.
Keynesian policy in the hands of known criminals.
Until they put money in the hands of the monetized middle class, there will NEVER be reflation lasting longer than an algorithmic sector rotation within an indexed dumbfuck bubble aka. short-covering.
Enter decade-large monetary lubrication to provide the all-critical illusion of trickle down fake wealth to a generation of self-medicated life support zombies. Now engaged in human history's best lubricated circle jerk.
This week we learned that the virtual simulation of prosperity has achieved record optimism within the MAGA echo chamber. Recessionary rate cuts - leaving absolutely no safety net - being their primary source of optimism. Those who eagerly propagate Trump's lies can give themselves full credit...
"Personal spending will be energized by record favorable evaluations by consumers of their personal financial situation"
The economist highlighted a growing partisan gap in consumers' economic expectations..."One side anticipates a recession, while the other side expects an uninterrupted expansion in the year ahead"
No surprise, Wall Street is inventing brand new narratives to fit the mid-cycle con job:
"Wall Street’s top strategists favor financials and value stocks heading into 2020"
Strategists’ bullish views on financials may come as a surprise to those who’ve tracked the marked decline in long-term interest rates over 2019"
“The sector’s performance has been increasingly correlated with interest rates, but the sector receives no credit for quality and cash return”
Got that? Consumers love lower interest rates and now for the first time in human history, banks do too.
What we see here below is an algorithmic sector rotation within an indexed dumbfuck bubble, conflated as "reflation". Where Wall Street wants its clients to park their money at the end of the cycle.
"Short-term trader sentiment has become a bit too bullish, arguably, with scant demand for downside put protection and the spread between bulls and bears in the weekly Investors Intelligence poll of advisory services reaching the upper end of its multi-year range"
There has also been an undertow of selling beneath the index surface that has dragged broad-market breadth lower, with an uptick in the number of stocks making new 52-week lows, albeit also with plenty of fresh highs."
What he just described is a Hindenburg Omen: A significant number of new highs and lows at the same time. Amid deteriorating breadth.
The bottom line:
Ongoing trade war, global growth at decade lows, first full year carnings recession since 2016, Debt-adjusted U.S. GDP is -4.5% this quarter,
Record complacency:
Record global economic policy uncertainty
https://www.policyuncertainty.com/global_monthly.html
I predict that the next bailout will be for the middle class. How we get there in the year ahead will not be pretty. Clearly, one side must be fully disabused of a lifetime of crass self-interest and delusion. Nevertheless, the set-up for achieving such ideological u-turn could not be more perfect. I have no doubt the land of opportunism can make the adjustment.
Cue Gary Busey, 2020:
