A Pointless Way of Life, Now Self-Destructing

Time is running out on this ageing phony society and its appropriately fake policy of "Extend and Pretend"; which means that my days of blogging are coming to a predictable catastrophic ending. My last post will come when the Idiocracy gets monkey hammered into oblivion. Despite all of the head fakes over the past four years I am resolute in the fact that we need to "thread the needle" to survive this nascent meltdown. Putting aside the siren song of Wall Street, this isn't a fucking mystery novel, although the ever-obfuscating "inflationists", have made this situation out to be far more complex than it really is. Earlier this week, the inflation trade was taken to the woodshed as both gold and emerging markets got obliterated. In the last few days, reality came for the credit markets - just the latest asset class to succumb. As it was in 1987 and 2008, interest rates are now rising in the face of an over-bought U.S. stock market, the last asset class to roll over. Since the Dow has yet to plunge lower, the Idiocracy is still overwhelmingly complacent at this juncture, even though the number of stocks making new lows has spiked to a two year high, indicating major internal damage and confirming the Hindenburg cluster.

Ayn Rand Would Be Proud - Everything Got Sold, Including The Economy
The real story that no one wants to talk about - and the reason why Extend and Pretend is doomed to fail - is that this latest Fed-sponsored bubble covered up the rampant outsourcing that went into overdrive after 2008. It was history's biggest estate sale. All while the Idiocracy was keeping up with the Kardashians and otherwise shoving their head up their own ass. I almost shit a brick yesterday when John Boehner talked about the nation of "builders". The U.S. was a nation of builders up until about 30 years ago. Then this current generation of business dealers came along and liquidated what prior generations had built over 200 years, all while glassy-eyed con artist buffoons in Congress looked the other way.

Hindenburg Omen 3.0: Major Cluster (Fuck)

The third one this cycle. The Hindenburg Omen portends a market crash, especially when seen in clusters

Fat and Happy

Judging by my blog stats which are now trending down for the first time in 12 months, you would think that all of the world's economic problems have been solved. Complacency has a way of showing up when it can do the most damage.

Of course, the underlying economic problems - both here in the U.S. - and across most of the developed world, are moving in the wrong direction. The Central Bank Jedi Mind Trick of levitating the Dow Jones Industrial Average at all cost, has done its job of fooling the Idiocracy into believing that things are actually getting better instead of worse...

War on Terror II: Attack of the Drones (Now On Sale)

The Obamanator tried to bounce back from a week of bludgeoning by the Republicans over various second-term corruption fiascos, by telling the country that the "war on terror is over". Holy shit, you may as well have told the old folks home that dinner is at 7pm instead of 4:30. The Faux Newstards went insane. This black, communist, anti-christ is "projecting weakness" at the worst possible time.

Unfortunately, nothing projects weakness like seeing over-fed comfort-seekers talking about projecting weakness...

The High Cost of Faking It

All Ponzi schemes are premised on a grand lie. 

The globalized Ponzi scheme is based upon the biggest lie of all...

Cracks in the Facade

There were major dislocations under the surface of the markets this week.

As usual, the Idiocracy played hop scotch over the widening cracks in the pavement...

The Idiocracy Is Facing Extinction

History's dumbest society is facing annihilation. I just got back from taking my fifteen year old daughter to a soccer practice, all the way to the local University, because apparently the 500+ empty fields between us and the University were not suitable for a mere practice. One of three practices this week, book-ended by out-of-state weekend tournaments over six hours away. If you think I am an idiot for going along with this, you are correct, if you assume I had any say in it, then you must not be married. Now you know why I have a blog - because blogging and praying for meteor strikes are the only things keeping me from going full Unabomber and escaping to a cabin in Montana. This society - like its economic policies - has gone full retard...

Supernova

You can tell I am somewhat superstitious and always looking for some arcane sign of the 'top'.

For example the S&P closing at 1666.

Or solar stocks going supernova...

Why Gold is The Canary In The Coal Mine

According to Pimco's El-Erian, gold is similar to Apple and Facebook - its valuation became stretched and disconnected with the underlying fundamentals and therefore its price could no longer be justified. This is a process he calls "stable disequilibrium".

In the real world, we call that "common sense"...

Born In The Bubble

The basis of Elliot Wave Theory is that social mood drives markets, therefore all other economic factors are second derivative. Meaning that when social mood reaches its maximum limits (manic or depressive), then the markets and economy will follow. The tangible manifestation of social mood therefore is in the stock market, which is the ultimate barometer of social optimism and pessimism. The wave counts that EWT uses to track the markets are intended to track the expansion, contraction and exhaustion of social mood.

That's all well and good, however, Central Banks and HFT bots didn't get the memo...

Humanity's Test: 666 - 1666

Well, humanity failed. 

After 2008, this society was confronted with the inherent depravity of the globalized ponzi scheme. However, instead of addressing those fundamental inequalities, this society, as usual chose instead to rebuild the temple of greed as quickly as possible and resume worshipping. At this juncture, those who have bought in to this phony market and this globalized ecological/human catastrophe (aka."the economy") --- have sold their souls.

Because as long as someone else's children were doing the dying, it was all good...

Asset Inflation v.s. Price Inflation

The only bet on the table right now, for anyone actually thinking about these things, is whether or not asset inflation which is going supernova, as I showed via the Nikkei, will continue long enough to lead to a generalized price inflation across the real economy i.e. what most people consider true "inflation"...

Aw Fuck, Not This Again !!!

"I thought the free bailout fixed all these problems..."

When the Idiocracy realizes that they got conned yet again, the masses will claim that - no one told them a) Wall Street was still corrupt  b) HFT bots run the markets c) politicians are stooges and  d) Central Banks printing money to be used for leveraged speculation, is a bad idea. Who would know these things? But unfortunately, this morally bankrupt society has a well practiced habit of giving a free pass to its greatest criminals i.e. those at the top of the overall Ponzi scheme. Obama is now on his second term and still hasn't lifted a finger to reform Wall Street for what happened in 2008. So only a moron assumes anything there has changed. Likewise, when it was discovered that the premise for the Iraq war - Weapons of Mass Destruction - was fabricated, the Idiocracy yawned and re-elected George W. Bush... 

Moral Collapse to Market Collapse

I was holding off from posting, because nothing ever changes: Same old, same old - markets levitating daily due to Central Bank interventions, while the Idiocracy at large looks the other way - desperate to believe that printing money can substitute for fixing the real economy.

It's frustrating living in a superficial fantasy bubble devoid of all reality, to be sure. But considering that this society has no problem bankrupting its own grandchildren merely to maintain phony appearances, then no amount of financial chicanery is beyond its reach...

Love Thy Neighbour Or Perish - Decisions, Decisions...

The measure of a real man (or woman) is what he does for others, not what he does for himself. 

Comfort seeking - the order of the day - is the domain of children and refugees...