by Andy Hoffman, Miles Franklin:
On Saturday, I wrote of how I was “overwhelmed by PM-bullish, everything-else-bearish” news; and just 48 hours later, I’m feeling more overwhelmed than ever – as not only is today’s principal topic of the utmost importance to those considering the urgency of PROTECTING themselves, but so are a handful of others. Let alone, if markets were freely traded; i.e., the great pink elephant in the room, mocked beautifully this morning by Zero Hedge – and annotated by yours truly.
“When it comes to the PPT/Fed/ESF/gold Cartel, Trump can launch martial law, suspend habeas corpus, and/or use the Constitution for kindling – and the market would care less, as stocks would still go up.”
The aforementioned “manipulation operatives” are far from omniscient, even if they are unquestionably omnipresent – which is precisely why the majority of the world’s fiat toilet paper has crashed; the global economy has plunged to its weakest level in generations; debt levels have parabolically exploded; bond yields have started to rise; and political and social unrest is ravaging the planet. Which is probably why Zero Hedge caveated its “bullishness” by espousing the following.
“However, threaten some of Trump’s core economic stimulus projects, like infrastructure spending – i.e., more public debt to fund corporate bottom lines; or tax reform – even more public debt flowing through to EPS; and suddenly, stocks will pay very close attention.”
This, as uber market cheerleader Barron’s caveated its “famous last words” prediction of Dow (Jones Propaganda Average) 30,000 by 2025, with the following, equally (in)famous last words – which even General Custer would blush at…
“(For the Dow to achieve 30,000), all Donald Trump has to do is avoid stumbling into a trade war—or a real war.”
Donald Trump, avoid a trade war? You mean, when he’s instituting “border adjustment taxes”; forcing companies to close foreign factories; calling the dollar “too strong”; and generally speaking, insulting or provoking essentially every global manufacturing and trading power – from Mexico, to Germany, and China? No, it couldn’t possibly happen, as this commentary this weekend must be a figment of my imagination…
“In the harshest warning yet that China is actively contemplating a worst case scenario for its diplomatic relations with the U.S., a senior Chinese military official said ‘a war within the president’s term’ or ‘war breaking out tonight’ are not just slogans, but becoming a practical reality.”
As for Zero Hedge’s contention that even the mighty PPT/Fed/ESF/gold Cartel have a Kryptonite-like weakness, of anything that threatens the (comically fraudulent, patently impossible) “Trump-flation” growth meme, guess what we learned from this weekend’s Republican Congressional policy conclave?
- Any major fiscal stimulus expansion, if politically viable at all, may not take place “until the end of 2017…or possibly, longer”;
- Regarding tax reform, senior congressional aides said the Spring of 2018 appears more likely than this year for the passage of legislation.“; and…
- No decisions have been made on the replacement of Obamacare – as because it’s a complex law, “it’s going to take a while to resolve.” Not to mention, because Trump has given no indication of what he wants to replace it
Which is exactly what I have said from day one, in my “turning on Trump” Audioblog; and why the following quote from David Rosenberg, a well-known Wall Street economist, is as dead-on as my “2.5% – Nuff’ Said” prediction of falling interest rates is likely to turn out to be…
“It seems like a lot of people think we’re in a new inflationary boom – but the answer is no, that’s just not gonna happen.”
Inflation? Perhaps, as essentially all Central banks are losing the “confidence” of the financial community and “ordinary citizens” alike – as evidenced by the aforementioned collapse of essentially all fiat toilet papers. To that end, German CPI inflation was reported to have hit a four-year high this morning – mere weeks after the ECB extended QE through year-end, claiming it could extend, or expand, it still further, should its, LOL, “inflation” goals not be met.
However, a “boom” is mathematically impossible, given historic overcapacity (see U.S. auto inventories); parabolically surging debt; and one of the longest (accounting fabricated) “expansions” in U.S. history – which must inevitably end, just like the PPT-supported Dow Jones Propaganda Average’s record 11½ month rise without a single 5% correction. Oh, and did I mention that irrespective of the 2.5% “reality cap” on the benchmark 10-year Treasury bond, rates have indeed risen sharply; as has the ultimate corporate earnings killer, the “too strong” dollar? Of which, I CANNOT WAIT for the Fed’s “managing” of this issue on Wednesday, when the FOMC attempts to maintain its, LOL, “hawkishness.” This, despite a collapsing “recovery,” fueled solely by fraudulent accounting; the Obama Administration’s pre-election, $500 billion borrow-and-spend binge; and surging, but meaningless “soft data” – like sentiment surveys, which fly in the face of miserable hard data, from all facets of the economy.
The sad truth is that the myriad “PM-bullish, everything-else-bearish” articles I am being overwhelmed with, are of topics that are mere symptoms of the economic disease consuming the world – which in my view, is due to two central, irreversible issues, which I have discussed ad nauseum. The first being, the overpopulation of the planet, which is causing unprecedented strain on increasingly scarce resources; and the second, the man-made catastrophe that is history’s largest, most destructive fiat Ponzi scheme, which quite obviously is in its final, cataclysmic phase.
Such symptoms are blatantly evident in the widespread “populism” movement that is laying to waste to even the most powerful political cabals – as described in this simple, but poignant article by John Rubino. As well as the rampant spread of socialism, fascism, and communism I have long warned of, as described this weekend by Bix Weir…
“Momentum is building for a Californian secession from the U.S., possibly to be voted on in 2018. The reason behind it is the biggest con purported on humanity – over and over again…socialism. Socialism has always been tearing at the fabric of the United States, and now that the people were GIVEN THINGS for the past eight years, it will be very hard to stop without experiencing the natural progression toward Communism which ultimately leads to failure, and potentially the destruction of our country. As for California, I doubt the move to secede will succeed…and when they open their borders for everyone to come into their new open and loving country…wouldn’t it turn out to a bigger mess than Germany is having to deal with right now?”
Agreed on all counts, with the additional caveat of the giant pink elephant in the room that the idiots attempting to secede aren’t considering. Which is, that without the backing of the Federal government, California is a massive financial basket case, which would unquestionably be downgraded by every major credit agency to junk status!
Finishing the thought of what such symptoms portend, it’s becoming painfully apparent, with each passing day, that the world is becoming rapidly divided – politically, socially, and economically. But nowhere more obviously – and dramatically – than here, in the so-called most civilized culture on Earth. To wit, with each passing day, the anti-Trump sentiment, propaganda, and protests – from all corners of society – grows louder, more nasty, and deleterious to the nation’s best interests. This, as Trump’s “America First” mantra is being translated to actions; which, whether the “right thing” are not, are so draconian, even those desperate for change, like me, are becoming terrified.
Such as, for instance, Trump’s pronouncement this weekend that immigration from seven Middle Eastern nations will be halted, in an attempt to crack down on “radical Islamic terrorism.” The reaction, both domestically and worldwide, could not be more indicative of the political and social unrest that is rapidly enveloping society at large – as every attempt to spin this decision, from both sides of the debate, is being made in the most propagandist, self-serving manner possible. Which is only being fueled further, like a lighted match to an ammunition depot, by Trump’s decidedly undiplomatic style. Which, I might add, was exactly what I worried about most when he was elected. Not to mention, the fact that his shameful populist pandering – of the need to stop “radical Islamic terrorism”; as opposed to the real issue, of non-ethnic-specific over-immigration- is igniting both sides of the political firestorm.
This matter alone – mere days after announcing his intention to build a wall across our Mexican border; “repeal and replace” Obamacare; and openly challenge U.S. intelligence agencies, whilst embracing our “mortal enemy” Russia; is creating a political and social maelstrom which will unquestionably divide America, and the world, at a time of maximum economic, financial, and monetary vulnerability. To which, I can only add, that if you haven’t yet PROTECTED your financial assets from what’s coming – i.e., money printing, draconian government actions, and monetary revolution – what the heck are you waiting for?
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