Saturday, March 12, 2016

Vertical Mega Crash: "No One Saw That Coming"

"Collapse is what happens while you're making other plans..."

The collapse isn't beginning, it's almost OVER. Yes folks, after seven years of bullshit and doing absolutely nothing, all that's left is the vertical Mega-Crash. The moment when EVERYTHING goes down at the same time. Risk is BINARY. Risk is Overnight. Risk is Weekend. Risk is 24x7. Welcome to Globalization...

In this cycle, collapse started five years ago in Emerging Markets which account for 70% of global GDP growth and commodity demand...
S&P 500 with commodities




If you dropped in from Mars and wanted to design human history's biggest mega-collapse, here is what you would have already done...

First of course, outsource the economy such that supply is in one locale produced by slaves with no purchasing power, while demand is in another locale using borrowed money.

When that 'Conomy fails in 2008, inflate all risk assets using printed money, so that the trickle down casino creates a fake wealth effect.

Layoff millions of people to inflate profits to historically unprecedented levels. Take the profits and invest them back into stocks to paper over the collapsing revenue.  

Monetize the tsunami of poverty into 0% and then invest it in greater over-capacity. Be sure to create as much deflation as possible thereby imploding anyone with debt.  

Having sucked in nearly everyone to double down on the casino and 0%, begin the process of taking away all global liquidity, thereby systematically decimating one asset class at a time.  

As each asset class/sector implodes, concentrate the remaining funds into the ever-dwindling sectors still rising, until only recession stocks are left holding up the entire delusion.

When 0% no longer incentivizes enough debt, cut rates to negative to pay people to borrow money. Be sure to implode all global banks at the same time.

Resolve a global oil glut by maximizing production. Fill every storage container on the planet with oil and then do everything possible to fix the imbalance, except for cutting production. Tell speculators the problem is fixed even when it's not.   

Encourage global debasement of currencies in a zero sum game race to the bottom. Act shocked when risk assets further implode with each round of debasement.   

Hold non-stop Central Bank meetings to ensure continuous short covering rallies making risk management almost impossible.

Keep CNBS on in the background 24x7, blowing smoke up everyone's asses non-stop.

Pretend no one saw it coming.