(Note from Tim: This is one of those Slope of Hope posts that is Big Enough To Be Seen From Space, and it is written by a frequent contributor to Slope, BDI. Although, permabear that I am, I don't agree with his conclusion that the S&P will be rocketing to 1500 very soon, he could well be right, and the vast majority of the post has nothing to do with projections but instead is about currencies, market manipulation, and some of the most dazzling use of alliteration the world has ever witnessed.)
Well, my fellow Slope-a-Dopes, you may have noticed that I have been completely turned upside down by this week's developments. Let me be clear, my crazed compromised counter comportment has nothing to do with the fact that the sitting U.S. president was re-elected. After all, every single national poll, swing state survey, and comprehensive electoral college considerations, had the President as the winner by a cushy considerably comfortable count. In this age of definitive digital data mining, why anyone would have been surprised by the well known outcome entirely eludes even eye. The only truly shocking surprise, would have been if the dastardly dog delivery dirtbag had beaten the coy corrupt community creep. So what has utterly upset & upended your favorite Idiot Savant's uneven universe?
The precise timing and violent intensity of the market's reaction to a widely anticipated, well understood and most expected election event, has left me not only scratching my head, but my juicy jingling jewels as well. Don't get me wrong, it is not the market direction that threw me for a laughable legendary loop. Like many, I had anticipated major market pressure as we happily headed towards the fiscal cliff negotiations. In fact, if you had read EP 93.0 Supersonic Fiscal Freefall, you would know that I clearly expected the market to hammer BamBam until he reached a grand compromise with BoneHead, and we may well have more rapid red rain to run. However, what has struck me here, was the exact timing and speed of the move which occurred right around the election. The bizarre market action, the day before, the day of, and the day after the National vote, was seriously stupefyingly suspect to me. Simply stated, the market's reaction was too violent in light of the known knowns. Why now? Why so sudden? Why so sharp? What was really behind this most electrifying exponentially erratic market move?
A bright burning bulb has illuminated my mad mad mind. Only one thing can explain such an unexpected intense market move off of such an expected known political outcome; COORDINATED MARKET MAKER CONTROL. Controlled demolition was most certainly the dominant determining deed done. An orchestrated down draft has been engineered to make the emphatic point, right off the bat, that a grand compromise is to be quickly reached by the new sock puppet in chief. The real powers behind the merry mad marionette show, have once again pulled their slimy stealth strings. The international banking & global corporate titans controlling the levers of power in our new world order, will continue to use all means of financial exchange necessary, in order to obtain the glorious governing goals they so deftly desire. This includes the manipulation of all major bond exchanges, all major equity exchanges, and all major currency exchanges.
To those of you that will undoubtedly right me off as just another confused kooky conspiracy crackpot. I only ask that you please indulge me a few pressing pertinent powerful points to further foretell my sexy super sensational savant sermon.
1. Currency Control Club: The preeminence of USD & EURO as the world's reserve currencies, along with their smaller subservient sisters Yen, Sterling & Swissy, and distant docile descendants CAD, AUD & NZD absolutely control the world's means of exchange. What I mean by this, is that since the lion's share of current global trade is conducted under this existing currency regime, it leaves the other "non club members" no choice but to pay to play. Furthermore, in today's global monetary currency markets, it is the most powerful Central Banks of these reserve currencies FED/ECB/BOJ/BOE that dictate the pace of monetization of the critical currencies, and thus the exchange rates between them. The rest of the world's lessor means of exchanges are directly controlled by the actions of the Currency Control Club's Central Banks.
2. Consuming Countries Control Producing Powers: Mainly due to the long running iron grip of the controlling currency club described above, which definitely determines the world's means of exchange, a most unreasonable, uneasy and unbalanced global trade paradigm has now been eerily errected & established. The industry of the producing nations feeds the needs of the consuming nations under this inequitable currency conspiracy. Plainly stated, the virtue of production has become subservient to the craving of consumption. That simply strikes me as dead wrong, utterly un-American and downright evil. And if one is inclined to ignore the immorality of such a disingenuous dubious development, one might consider its inherent unsustainability, as it continues to grow like a gigantic grotesque cancerous tumor on the gaping gaseous globe.
3. Money for Nothing and your Kicks for Free: One of the principle reasons life continues to be so easy in most of the Western "civilized" world, is preferred currency status which increasingly makes daily life harder in many other parts of the world. More and more with every passing day, this crony currency club cabal is abusing its reserve currency status immorally, to buy up non member nations natural resources and human labor with their unearned purchasing power. The once class act country that created the chaste chivalrous concept of no free lunch, is indeed greedily gorging itself gratuitously on others' fine fruitful fare. By doing so, we export injurious inflation overseas to feed lavish consumption at home. Press printing your way to prosperity eventually pisses productive peons off. Same as it ever was.
4. Captive Stock Markets & ZIRP Bond Markets: Zero percent real interest rates demean the absolute value of the means of exchange. When the currency is a true store of value, its real worth can be witnessed by the intrinsic property to sustain its value over time and inflation. In other words, the interest earned on it sitting safely unused should not erode its worth. Therefore, interest rates of return on real money, must be equal to or greater than the devaluation caused by any monetization/inflation. This is clearly not the case for us now. Today's imposed QE/ZIRP Central Bank policy removes the natural interest bearing protection mechanism of true money, and thus robs you of your earned wealth. In fact, the value of money is insidiously taken away from the productive and or saving individual, and given to the unproductive consuming governing State controlled by the all powerful Central Bank Currency Cartel. Furthermore, since they do control the ultimate value of the currency, as they are the only ones able to print it, they by proxy set the price level & nominal value of the equity markets as well. All financial markets are theirs to freely manipulate, this will always be the case until they lose the ability to monetize our currency.
So what does this all mean for the markets moving forward? Well, what I can cursedly claim with candid certainty, is had I followed my original and much acclaimed EP 3.0 The Globalists Take Charge, drafted in late 2011. I could have surely saved myself much market money malaise, by repeatedly trying to wrongly anticipate a stock market meltdown throughout the year. The facts are crystal clear to me now. Every single time we have had a magnificent market decline over the past three years, two things have always occurred; A) the market was promptly rebooted via reflation & B) TPTB increased their grip and significant stature by reflating. The current cunning crafty character of this most recent swift deep dubious market party dip, only serves to further demonstrate to moi, that the very same perfectly preformed Pringles are about to be served up for a repeat perfect poping performance.
At this point, the undeniable fact remains that the established controlling international Central Bank crony cartel club with their owned Governing / Corporate lackey leaders, have near complete control of the means of exchange, and therefore the virtual value of all financial assets. In my view, there can be no doubt that they still retain full operational command of their potent purchasing power locomotive. I see last week's sudden sharp slap of the stock market, as yet another example of an engineered take down, purposely designed to set the table for the faux "grand compromise" illusion to come. And, we all know that the glorious compromise will include the following; infrastructure spending funded by more printed QE/ZIRP Dollars, minor revenue enhancements mostly for posterity, and a real reduction of all our earned & promised entitlements drawn out over time. All of which will further empower the State and the powerful financial & corporate titans / cartels which own it.
I fear that this complete capital control can last much longer than we all presume. Only two fierce forces can run them off the rails to ruin. Either rabid runaway inflation, or the refusal of individuals to participate in their currency control containment conspiracy. Printing their way to prosperity will eventually punch them in the face, but it will only happen when either of these two terrific traits are patently present. The good news is that due to this despicable, deplorable, disgraceful, and sinful self interested path callously chosen by these misguided malicious morons, both of these fiery free forces will invariably arrive to our rescue. The bad news is that is could take a while. Until this Idiot savant see signs of either incendiary inflation, or effective militant resistance by independent industrious men here or abroad, BDI will NO LONGER lay down as consumed carnage, spewing his blood on the tracks.
Evil Plan 95.0..........get the hell out of the way..........the TGV SPX1500 is fast on the tracks.
BDI SOH's Idiot Savant