The globalized economy is a colossal Ponzi Scheme in which the vast majority survive on the bread crumbs falling off the table. The possibility of 7 billion people achieving a consumption-oriented lifestyle is zero, so the World Bank conveniently set the poverty line at $1.25/day to legalize global slavery. As long as someone else's children are doing the suffering, it's "all good". Post-2008, this illusion was extended merely by plundering all future generations.
Judgement has been rendered upon the new Sodom and Gomorrah and its Third World child sweatshops. This shall end the most vicious way possible.
Land of Opportunism When the U.S. supplanted Christian values with diametrically Anti-Christian values, collapse became inevitable. However, no country will be spared what comes next.
The handiwork wrought by six years of Extend and Pretend is ready to be "revealed". While it may seem that absolutely nothing has changed for six years, under the surface everything changed. Just as our food supply was unceremoniously swapped out for Frankenfood without any notification.
This post-2008 Shock Doctrine era was the last stage of selling off the corporate pseudo-economy for consumption debt flows. The chasmic East/West trade deficit papered over by its own returning capital surplus - Bernankenstein's Faustian "savings glut", thrown off by child sweatshops, "forcing" him to lower interest rates to 0% and automate the remaining U.S. jobs. Most horrifying of all, the Middle Class have been systematically carved out by the exact same people they bailed out in 2008 - Extend and Pretend, representing nothing more than a delayed elevator ride into the abyss. A fate chosen for us by a thoroughly corrupt oligarchy and their political sock puppets. Never forget the price of Freedom Incorporated: $Everything:
Never forget that while troops were overseas post-9/11, Wall Street & Co. used Shock Doctrine and fake patriotism to liquidate the economy, with Faux News playing in the background. It doesn't get more cynical than this. "Between 2000 and 2012, 17 factories per day were closed" Corporate profits baselined to GDP:
Employment Versus Profits: Employment today is still well below the worst part of the prior recession:
Manufacturing Jobs w/Wages (%GDP)
Foodstamps versus Corporate Profits
Median net worth:
How to profit from selling off the middle class at 0% for six years: Bernankenstein's new Wall Street employer: "The Fed’s policies are doing two things that I am very gravely concerned about. Number one is we have all learned over the years that if you reduce the cost of capital you increase your use of fixed assets and you take out jobs. Corporate America seeing an ever increasing cost for its employee base and extraordinary low interest rates is taking every step they can possibly take to reduce employment, to build factories abroad and domestically to substitute technology and automated processes for people. So one of the very sad negative characteristics of the Fed’s policies is it’s leading to job destruction.”
In other words, the economic collapse is de facto, the last stage financial collapse will bring the revelation that Globalization is a consumption-oriented liability without a corresponding asset. It's inherently insolvent. Casino speculators will all realize at the exact same time that their chips are worthless and there's no one left to buy. The moment when the Dow heads for zero, because forward revenues are predicated upon continuing "demand" aka. a Middle Class, that no longer exists. Those who have a month of liquid savings (including retirement funds), per the deflation guide, are twice as well off as the average family. Those who have six months, are an order of magnitude better off. The hiker doesn't have to outrun the bear, (s)he has to outrun the other hikers. Conservation and self-reliance being critical to long-term survival.
What the Oligarchs and their bukkake whores fear the most: An end to their bilateral exploitation scheme aka. the fundamentally insolvent corporate middle-man pseudo-economy:
It took six years of grave digging masquerading as "recovery" to bring about the final transformation of the corporate pseudo-economy into an insolvent casino, where Etrader Boy-Men trade worthless pieces of paper back and forth in a zero sum game. A market at all time highs, sans economy. There can be no more brutal way for this to all end.
The Dow's Broadening Top w/Fed Balance Sheet: A liquidity-driven illusion wholly decoupled from the economy
By the time the lamestream realizes what they did, it will be game fucking over. Buried beneath their own temple of greed. We can't save them from themselves. Biblical.
As usual in the Idiocracy, the truth is the EXACT OPPOSITE of what is widely believed: 1929: "Stock prices have reached a permanently high plateau" - Irving Fisher (Noted Economist) Now: "Stocks are fairly priced relative to corporate profits. Nowhere near as overvalued as Y2K"
U.S. stocks (black) with profits (blue) and GDP (red)
Yes, that fucking dumb. No, I'm not kidding. The only time stocks have been this overvalued, is never. No comparison. Whatever it takes to end this shit show.
Having been held to zero accountability for subprime in 2007, "entrepreneurial" banks have branched out into all manner of criminal enterprise: BBG, Via ZH:
Organized crime now lightly "taxed" by government. Corrupt society tunes in The Kardashians:
"Investors yawned at the news Wednesday that five of the world’s biggest banks, including JPMorgan Chase & Co. and Citigroup Inc., agreed to plead guilty in a currency-rigging probe. They’re among six banks that will pay $5.8 billion in fines."
“This is the first time you had Citigroup, JPMorgan or any U.S. bank plead guilty essentially to criminal conduct"
"By granting waivers allowing lenders to keep operating even after a felony plea, the government has managed to punish firms while protecting them from fatal consequences."
And there are still tools who wonder why the riots in Baltimore took place among people whose lives have been systematically degraded to Third World standards, by obscenely wealthy government-sanctioned organized criminals.
In 2012, the Republican election theme was: 47% of Americans are slackers. Today the Republican theme is how do we keep them from going full Baltimore all at the same time? Democrats will campaign under their highly successful theme of pretending to give a shit.
"The report points to globalization, technological change and regulatory reforms as major factors behind the widening wealth gap...Tax cuts for high earners have also helped concentrate wealth, the report said."
[Offset by cheap junk at Walmart for jobless debt slaves]
Extremely ironically, the so-called "wealthiest" countries (Australia, Luxembourg, Netherlands, Norway, U.S.) all have far more household debt than Greece
Debt is the new "wealth", secured by Ponzi mortgages having the shelf life of a rotten banana:
"Big businesses and small are crossing more borders, bringing opportunity, prosperity and optimism into the lives of hundreds of millions of people across the developing world." [The remaining 7 billion are totally fucked]
"...At the pace of a glacier, and at the price of the planet. But as long as someone else's kids are born factory slaves, the system is working fine"
At its most fundamental level, a Ponzi Scheme merely represents an unsustainable rate of extrapolated "growth", papered over by inbound capital. Insiders cash out using late investor inflow. Today's stock market multiple discounts profit growth at above trend rates in perpetuity:
Only the greediest society in human history would assume that a one-time self-cannibalizing "special dividend" represents sustainable growth, when it represents the exact opposite: an extremely abrupt and unforeseen cessation of income. Still, they throw their life savings into this disaster, which flow straight through to offshore bank accounts via stock buybacks. A fitting end for a corrupt society: Self-obliteration.
What comes next will largely decimate the multinational corporations, levelling the playing field for local businesses, and paving the way for a real economy. In every country. Karma.
- An "ending diagonal" is a rising wedge, on ever-dwindling volume and ever-deteriorating fundamentals aka. revenue and profit growth. Ascribing this deadliest of all wave forms, predicts how it will end, but clearly not when. The longer it draws out, the more spectacular the conclusion - lending ever more time for fundamentals to diverge from prices. Many financial purists don't believe in technical analysis (price graphs), relying instead upon "scientific" guesses as to what profits and the economy will look like a year from now - assuming all variables remain constant, except conveniently extrapolated growth.
And some passersby would argue that it's highly disengenuous to keep saying the same thing over and over again, while nothing changes. I agree, tell them to stop.
Nothing is more insidious than atrophy. Anyone who thinks that "nothing is changing" is in for a big fucking surprise.
S&P with internals:
"Sooner or later everyone sits down to a banquet of consequences"
"As CEOs buy a record amount of stock with shareholder money, they are keeping their wallets in their pockets when it comes to purchasing shares with their own cash. Insider buying virtually dried up in April, sending the insider sell/buy ratio to its highest level in more than two years. It's a troubling contrast that may speak to the true feelings executives have about the staying power of this six-year bull market."
Barron's Insider Transactions: Sales / Buys, currently 27:1, 40:1 in April:
Corporate Profits: Endgame
They don't ring a bell at the top, they just sell with both hands to the Idolatrous sheeple i.e. the self-condemned bagholders who never EVER learn, and who couldn't tell a sociopathic liar if they were bitch slapped in the face with one.
Subconsciously, the disposable society knows they're being lied to, but they don't care. Without the lie, there can be no shopping sprees, no cross-country soccer tournaments, no iGadgets, no unreality TV escapism. No external gratification as a proxy for "happiness".
"The ADX, or Average Directional Index...is essentially an indicator of the strength (or lack of strength) of the prevailing trend over a specified period, regardless of the trend’s direction. A high number indicates a strongly trending market and a low number reflects a lack of trend. The traditional default look-back period is 14 days so we tend to stick with that. Interestingly, recent readings of the 14-day ADX applied to the S&P 500 have been among the lowest of the last 65 years, indicating an extremely “trendless” market."
It's only a matter of time before Wall Street beseeches its Fed bukkake whores to print more money now that the recovery has been postponed until never. Monetary Policy, at best, is a counter-cyclical tool to support business liquidity during recessions. It's not meant to facilitate 35 years of trade deficits by subsidizing ever-greater debt accumulation.