Tuesday, May 28, 2013

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...

Sunday, May 26, 2013

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...

Saturday, May 25, 2013

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...

Thursday, May 23, 2013

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...

Monday, May 20, 2013

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"...

Saturday, May 18, 2013

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...

Friday, May 17, 2013

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...

Thursday, May 16, 2013

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"...

Wednesday, May 15, 2013

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... 

Tuesday, May 14, 2013

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...

Wednesday, May 8, 2013

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...


Ponzi Collapse - In Real Time...

Ponzi schemes collapse from the bottom up. Of course those at the bottom of the globalized ponzi scheme never realized any of its benefits. After the events of 2008, however, global thought dealers realized they could save either the billionaires or the middle class. So they chose to save the billionaires. The policies since that time - fiscal, regulatory and monetary have achieved that ends. The middle class has become increasingly marginalized while the wealth of the global plutocrats reaches ever-greater proportions. The U.S. debt alone has risen by $7 trillion since 2007, and yet all of the gain from that profligacy accrued to the billionaire class. The globalized ponzi scheme is collapsing in real time and claiming more victims with each passing day...


Upside Down Market

This market is upside down in more ways than one. Primarily because there are buyers at higher levels and sellers at lower levels. Higher levels are bringing out buyers due to performance chasing, momentum strategies, (low) volatility driven algos, HFT momentum ignition, short-covering, small investors watching CNBS wanting a 'Dow 15,000' hat of their own, and of course the ever-present Central Bank liquidity bid...

Life (And Death) In A Stagnant Society

Our thought dealers are running the global economy like it's an old age home - no one gets any better, and no one leaves through the front door.

Well, as long as they had a good run, that's what matters...

Tuesday, May 7, 2013

Just Another Greater Fool's Market


Conflict of Interest

One of the most disastrous side effects of the mass commercialization of society is that the concept of "conflict of interest" has been totally obliterated. Any society that wants to survive long-term and otherwise not end in a massive collapse would do well to realize that turning a blind eye to conflicts of interest is a flashing red indicator of rampant corruption...

Monday, May 6, 2013

The Case Against Deflation (Hint: Buy Gold Early and Often)


The Seeds of Destruction

When you visualize Wizard of Oz-like global central banksters now trying to keep $200 trillion of global capital assets levitated, merely by using incremental bond buying programs, you realize just how ludicrous the globalized ponzi scheme has become. Worst of all, they have given corrupt governments a free pass to do nothing to fix the real economy...

"Aw fuck - not this again !!!"


Trending Now: Everything, Except What Matters...

It's all so sadly pathetic and predictable. As long as the Dow is making new highs, the Idiocracy at large never questions the status quo...

Sunday, May 5, 2013

All Great Powers are Destroyed from Within

This latest earnings season starkly illustrates once again why "Supply Side Economics" (aka. Reaganomics) is a self-cannibalizing conspiracy of dunces. The fact that so many conservatives still venerate Reagan shows just how morally and intellectually bankrupt the conservative movement is at this point in time. These people are destroying their own country, yet they are too dunced to realize it. History will not pull any punches on these greed addled morons...


This Time Won't Be Different 2.0


Last week, I said that those who were telling us that there were no signs of "froth" in the markets were closing their eyes to all signs of a new bubble. Let's check in on the lovelies to see what happened in the last week...


Thursday, May 2, 2013

Life Inside The Bubble

[Updated: May 14th, 2013]

This is the third and last monetary stimulus fueled bubble. Unlike the last two credit bubbles, this time, no one can point to any ubiquitous signs of  "excess".  That's because the prevailing consumption-oriented lifestyle is the excess - our presumed way of life is the final bubble. To believe in the status quo is to assume that we can borrow from Third World wage slaves indefinitely. The unmistakable indicator of unsustainability is that each bubble has required a vastly greater amount of monetary stimulus than the previous one - which only drives asset speculation rather than sustainable economic growth. The majority can't see the bubble, because they are living in it...

Wednesday, May 1, 2013

You Can't Fool All The People Every Time

It doesn't seem that long ago that everyone was worried about the big end of year "event". Fortunately, the Fed eased monetary policy massively to placate the markets. And of course when December 31st rolled around and the world didn't end and the economy didn't fall off a cliff as expected,  January came and stocks took off...

Thinking the Unimaginable

I just showed a Twitter post from Pimpco saying that there are two scenarios on the table - bad and worse...

The Needle And The Damage Done

The Fed just signalled that it will keep mainlining monetary heroin into the dying junky some people euphemistically call the "economy" -  until such time as it bounds back to vigorous health - or dies of a heart attack, whichever comes first...