Monday, October 27, 2014

The Last Temple

FULL CAPITULATION: No One Left to Con

MW: Oct. 27, 2014
The Fed is expected to keep interest rates at 0% forever

Why? Because the economy was shipped to China where it's now imploding. And the 5+ year "recovery" is merely a widely accepted fabrication.
The Obama "recovery" consists of a doubling in debt and an employment ratio at a 35 year low



What we have in place of an economy, is an HFT programmed casino that churns out fake wealth so that people can pretend to be wealthy while watching the Kardashians.

There's no one left to con. The psychopaths won. Game over.

People will believe anything, if it goes on long enough

Fed heroin has been flowing for 37 months straight
Printing money to buy stocks ends today.
Dow with Fed Balance sheet (Click here. for Fed balance sheet data)
Correlation lower pane (i.e. 96%):



People will believe ANYTHING. It's only ever a matter of time.

Choose the Skynet Delusion

Only a Russian programmer could pull this off

NYSE Tick(ing) Time Bomb: 
The number of stocks ticking up minus the number of stocks ticking down
50 DMA

MW: Oct. 27, 2014:
"Stock prices have always succumbed to the divergence. The greatest divergences registered prior to now were 1987, 2000 and 2007. And this current market has surpassed all of them in bearish readings."





Sunday, October 26, 2014

Late Stage: Mental Breakdown

People don't want the truth. They can't handle the truth
One of these countries makes things, the other buys things

One of these countries shut down on average 17 factories per day between 2000 and 2012. The other one created thousands. 

One of these countries borrows, the other one saves

The country that borrows has a minimum wage of $7.25/hour. The country that makes things has a minimum wage of $.80/hour, yet both countries compete on the same world markets (?)

One of these countries says it's Capitalist, the other one says it's Communist. When in fact, they're both Fascist.

The "Capitalist" country prints money to make billunaires fat and happy while everything falls apart in the background

The "Communist" country builds empty cities to keep billunaires fat and happy while everything falls apart in the background

Beggar Thy Neighbour (and thyself)
One of these countries is the biggest net debtor nation in the world and the other is the second largest creditor nation in the world. The chance that any of that debt will get paid back is the limit approaching zero. The fact that the U.S. stock market is rallying throughout this historically unprecedented estate sale, while the Chinese stock market is at levels seen 8 years ago, should have been one of many clues that this disaster is circling the toilet.

Monetary Euthanasia Visualized: 
Dow with Fed balance sheet versus Shanghai Composite



People don't want the truth, what they want is another season of the Kardashians and their daily infotainment enema.

The Dow Prozac is running out - we are witnessing late stage mental breakdown in every direction while the stoned masses pretend that rising violence is just the latest season of Breaking Bad.

Saturday, October 25, 2014

Alignment

The Steepest Rallies Occur in Bear Markets (8% in 5 days)
Daneric and EWI are now counting this week's rally as wave 2
...due to the deep 72% retracement, and the fact that this vertical wave looks very similar to the 73% post Lehman short-covering retracement prior to wave 3 (Sept. 18-19, 2008), something EWI mentioned on Wednesday. 

[BOTTOM LINE: "The counter-trend advance from October 15th appears to be running out of gas. The next phase of price decline should carry to substantial new lows"]



The Hook is Set: The masses are bought in. Literally

Two prior burst bubbles failed to wean the masses off of the lies and liars
So now we have this post-2009 Wall Street bailout mega-bubble premised upon yet bigger lies than the last two. This era was all about conning investors into "buy and hold" for life, while conning everyone else into bigger house, fancier car, more debt. 

Questioning the Status Quo, is Off Limits
Throughout this post-2009 period, skeptics were one by one converted or discredited as "perma-bears" destined to be permanently wrong. The percentage of people who are skeptical at this point in time are a rounding error. 

Buy and Hold Deathgrip
'Til Death Do Us Part
% Bears (as of this past Thursday)


Social Mood gamed by Central Banks and HFT Bots
Jobless Consumer ConnedFidence
Do That To Me One More Time. Twice is Never Enough...
(This is as of Oct. 1st, however, an even higher reading was just registered mid-month):


Grasshopper or Ant?
The choice always, was to be skeptical, "wrong" for a time, but ultimately vindicated for having prepared in advance. Or, alternatively, to trust the same psychopaths as always, and then get obliterated. 

We can already see above which path was taken. This society is an extended high school popularity contest in which thinking for oneself or otherwise questioning the status quo is considered strictly off limits.

The people who believe in this clusterfuck, by extension, also believe in the Globalized Ponzi Scheme and the current "world order". They just assume that this can continue indefinitely, even as it's melting down into anarchy right in front of their eyes. Basically stoned zombies without any sense of survival whatsoever. 

Those who "survive" this era, will be positioned to be leaders in the next era. Perhaps I should have mentioned that obvious fact previously. After all, that's what this blog is really all about i.e. preparing for what comes next. 

"Who can go the distance? We'll find out, in the long run"
[Eagles]

Friday, October 24, 2014

Which Stocks Should I Buy in a Collapse?

Three scenarios:
One is Halo Crash. Two is 1929-style waterfall. Three, the indefinite impossible

German DAX
A Collapse taking place in broad daylight while jackasses debate whether it can even happen
Head and shoulders top with backtest


If you were conned into believing that all of this will go on forever, then you've come to the wrong place...

Wednesday, October 22, 2014

Skydiving without a parachute

Pre-Gaming The Next Fed Casino Bailout


MW: Oct. 22, 2014
"Things were looking grim last week until the Fed rode to the rescue"

"The St. Louis Fed’s James Bullard is merely the latest official to boost the stock market"

“They are definitely in the market-manipulation business, and nothing has changed,”

MW: Oct. 22, 2014
"it would take a further 10% decline from the recent lows to trigger anticipation of what might be dubbed QE 4"

Can the Fed stop a crash once it's already started? That's the bet the gamblers are making. 

It's called moral hazard and it's a lot cheaper than hedging, especially when someone else's money is on the line.

Ponzi Capitalism is Collapsing from the Outside In

But unfortunately you can't convince people that the impossible is not possible, even when it's falling apart right in front of their own eyes


This blog is like pounding sand up my ass...

Monday, October 20, 2014

"It Can't Happen to Me"

The Faustian Assumption. When there's nothing left to sell.



Deflation: Collapse in Broad Daylight

(T-)Bonds or Stocks? Who's right?
Hint: 

Longer-term, in the past 7 years, bond yields peaked prior to stocks, four times.

Now, yields are have collapsed down near Lehman levels. What? Me worry? 
Not this circus of buffoons.


A collapse in broad daylight while the gamblers were figuring out which stocks to buy

5+ Reasons Why "Reset" is Necessary



*Money Printing News*


No Consensus on (More) Fed Heroin...

Sunday, October 19, 2014

Collapse: Path of Redemption


"The ancient Rabbis contrasted God's sovereignty with the rule of Rome. Rome seeks its own glory, wars against other peoples to subjugate them, revels in material existence, lives off the work of slave labor, allows many to die of poverty and starvation, and promotes entertaining circuses and gladiator spectacle. The Rabbis, picturing redemption, remark that the messianic age will be recognized when an end is brought to the rule of wickedness." - Solomon Schechter

So be it.

Taking The Easy Way Out Is Killing People. Literally


A Comfort-Seeking Society Approaching a Brick Wall
The overriding theme of this era with respect to the "three Es" - energy, environment, and economy is to delay and defer as long as possible. To allow these disasters to accumulate by all means possible, and then push them onto the children and grandchildren.

I know a lot of people who have died of cancer recently for much the same reason - deferred responsibility towards their own polluted bodies. People my parents' age (mid-70s) and younger, who thought nothing of treating their own bodies like a toxic waste dump. Anyone who will desecrate themselves is not going to think twice about desecrating this planet or even their own children. 

Soft and Disease-Prone
This drive to "simplify" everything is at the root cause of all ignored human-led disaster. It's reaching a brick wall. It turns out that taking the easy way out is not the secret to human happiness and health. Some amount of adversity, hard (real) work, and real sustenance is necessary in order to condition the mind and body for long-term survival. Constant comfort-seeking taken to its natural limit in combination with Soylent Frankenfood, has left people soft and disease-prone.

The consumption-oriented lifestyle is self-imploding
At this late stage, having sought the easiest way out of every situation for years and decades, most people are no longer capable of contemplating a more sustainable path forward. Now, merely pretending and keeping up appearances takes up all remnants of their massively depleted energy. To them, any "reset" is wholly unthinkable, which is what makes it inevitable.

Collapse is only possible if enough people assume it's not possible  

Saturday, October 18, 2014

Mind the Lehman Indicators

I revisited the stocks that peaked most closely with the Lehman event in September 2008

First: "That's not selling. This is selling..."
Down/up volume 10 dma



Friday, October 17, 2014

This Week in the Casino

BTFE: Buy the Fucking Ebola


This week's roller coaster ride left the Dow down a couple of hundred points over last week
Skynet broke at least four times, with the latest breakdown today
Weekly volume was 3x higher than 90 day average volume
Advancing volume was 3x higher than declining volume (see below)
The Russell 2000 small cap index had its best week in 14 years
Consumer ConnedFidence hit a 7 year Ebola high, still well below the peaks from 2007 and 2000
Wall Street dumped 11 more IPOs since last Thursday
Investors grew 3% more cautious as the percentage of bears stands at 17% near multi-decade lows

So, risks are extreme, shorts have covered, complacency is rampant, and Skynet is running the casino...

Thursday, October 16, 2014

Ebola: Thinning the Herd


Reality is not a fucking conspiracy
Rapper Chris Brown tweeted this week that Ebola is a form of population control. The Idiocracy went bat shit. It never occurred to any of them that Ebola is in fact nature's ultimate form of population control. Consider it just one of the many gifts from globalization and the commensurate shrinking of this "hot, flat, and crowded" planet to accommodate 7 billion people. Now the galaxy's largest petri dish.  

The related news was that the mortality rate for Ebola is 70% versus the previously believed 50%. Again, there was a dunced response from the lamestream. People seem to think that 70% is worse than 50% whereas it's the other way around. Earlier strains of Ebola had 90% kill rates. These more virulent strains never became a pandemic because the virus killed people so quickly and efficiently that it never had a chance to spread. Now the virus has mutated, delayed onset of symptoms and lower mortality means that the virus now has time to be spread globally or even worse "carried" by someone immune to its worst effects.

Then there was the news of the second nurse in Texas who contracted the disease due to a "breach in protocol". Let me get this straight, they spent a thousand dollars per hour fighting this disease in one patient and still two nurses were infected. That's not a fucking breach of protocol that's a disaster. No one goes to work saying "I'm going to see if I can get Ebola today". How are these hospitals going to fight a disease that costs a thousand dollars per hour to "treat" but where 70% of the patients die anyway? Who picks up the tab for that? And what sane person would ever go to a hospital that is accepting Ebola patients? I see a certain economic dilemma. And therefore, what chance do African nations have of fighting this disease? Zero. Healthcare workers in Liberia threatened a strike to protest the extreme hazards. Stay tuned for future events. Eventually they will just have to quarantine the victims. No sane healthcare worker should want anything to do with this disease. 

And don't even think about the use of this virus in biological warfare, just assume that every terrorist organization in the world is working on obtaining the cheapest and most powerful weapon ever created.  

Population control. Indeed. 

Crushing Deflation and the Quest for More Heroin

David Stockman just published a rant against the Fed's latest hint at more money printing which most attribute to the recent decline in the stock market. As usual, I agree with about half of what he says and the other half I had to puke into a fucking bucket. He cites the fact that there is no sign of "deflation" and never has been. All prices go up all the time. So, here we go...

The only price he fails to mention is the most important one, which is wages. When everything else goes up in price and wages stagnate, then that is extremely deflationary because it's a crushing economic weight on the middle class. Over time it leads to mass bankrutptcy and foreclosure. But this is the key attribute that Stockman and the billionaire bukkake whores at the Fed have in common i.e. they have no clue how the real world works. Stockman was budget director under Reagan during the inception of Supply Side Ponzinomics. He was a key architect of the removal of the "structural rigidities" aka. unions, trade tariffs, minimum wage etc. that were supporting the middle class. The only part of the Friedman Shock Doctrine program that he didn't accept was the debt accumulation, which of course is fundamental to Supply Side Ponzinomics. How he expected the U.S. to "maintain" GDP while losing all of its labour protections without accumulating debt, reveals the intellectual bankruptcy of his denialism. Debt accumulation is the handmaiden of Supply Side Ponzinomics. And of course he now, 30 years later, wants to place the entire blame for this Supply Side disaster at the feet of the "Keynesian Communists" in the Federal Reserve who inadvertently have managed to create the largest wealth divide in U.S. history. Suffice to say that, absolutely nothing can get better until the tolerance for this type of bullshit goes to zero. 

"More Heroin Please"
The entire basis of this counter diatribe was today's statement by Fed member James Bullard, indicating that the QE money-printing-to-buy stocks tapering could be delayed. That mere hint alone saved the stock market from another bloodbath. However, as far as the likelihood of more QE, we first need to consider the fact that it's already been tapered from $85b down to $10b per month, and that the Fed is currently planning to raise interest rates. And leave aside the fact that Janet Yellen indicated just this past weekend that she believes that the economic "recovery" is still on track. 

So, can/will the Fed save their masters on Wall Street? That's now the bet - and always was - I suggest however that the glacial pace of a Federal Reserve Committee will be no match for Skynet, which has been warming up all week: 


Soylent Frankenfood: We're already being killed off

Over the past several decades frankenfood companies swapped out real food for fake food, in broad daylight


As of today, 90% of food in the grocery store is laced with hydrogenated oils, high fructose corn syrup, denatured wheat flour, soy isolates, genetically modified foods (gmo), pesticides, antibiotics and other chemical inventions. And yet the branding and marketing of these products is the exact same today as it has been for decades. In other words, the name of these products stayed the same, but the contents were swapped from real food to fake food. And governments just let it happen. Clearly, replacing real food with fake food was the only way to sustain 7 billion people. However, the disease-ridden consequences of these actions are only now being fully realized. 

Soylent K "Original" (since 1956):
FoodFacts.com health grade: "F"

(Bear in mind that GMOs are not required to be labelled)

The sociopathic corporations and their sociopathic executives, lie to us constantly and poison our children

Wall Street Still Burying ETraders

Despite the recent market turmoil, Wall Street cranked out 10 IPOs in the past week. Three yesterday alone, during the biggest Dow drop in several years.




Tuesday, October 14, 2014

Fuck Kyoto




Fracking Shellacking aka. FRAK ETF


Corporations are Middle-men

People make things and people buy things. 
The sociopathic corporation sits in the middle and uses East/West labour arbitrage to extract inflated profits, while politicians look the other way and euphemistically refer to the entire slave trade as "the economy". No amount of profit will ever be deemed sufficient to the limitless growth machines known as corporations.  And no small business will be able to compete when marketing shells can source Third World labour at 80 cents per hour.

Only when balanced and sustainable trade is maintained and profit extracting multinationals are out of the equation, will full labour employment be achievable. The rest is hyperbolic bullshit.



No conscience, no home, no culture, no belief, no soul. No future.

Monday, October 13, 2014

Peak Liars and Peak Fools: A Generation of Gamblers


The generation that never learns
Just five years ago in 2009, today's generation of investors swore they would never get conned again. At all costs, they would avoid the same mistakes that had brought them to the depths of despair. They had been conned into being Wall Street's bagholder in 2000 and 2007. They also bought into the housing bubble and the subprime delusion. Many investors like myself, quit and walked away, gladly willing to accept 0% on savings over another roller coaster ride with psychopaths. However, the fact that this cycle is repeating on an even greater magnitude despite the economic destruction wrought the last two times, shows there are still a disproportionate number of fools running amok. Those who don't learn not to trust psychopaths, are doomed to be monkey hammered into fucking oblivion...

Saturday, October 11, 2014

Rich Man's Panic

Groupthink
Groupthink is a psychological phenomenon that occurs within a group of people, in which the desire for harmony or conformity in the group results in an irrational or dysfunctional decision-making outcome. Group members try to minimize conflict and reach a consensus decision without critical evaluation of alternative viewpoints, by actively suppressing dissenting viewpoints, and by isolating themselves from outside influences. Loyalty to the group requires individuals to avoid raising controversial issues or alternative solutions, and there is loss of individual creativity, uniqueness and independent thinking. 

The dysfunctional group dynamics of the "ingroup" produces an "illusion of invulnerability".

Correlation is Annihilation
Hedge fund correlation:



Friday, October 10, 2014

Shellacked: One Year of Global Gains. Gone

Global Dow has given up 12 months of gains


The frogs in boiling water still haven't panicked...

Frankenfood Update

Corporations maximizing profits by spreading disease
And pharmaceutical dependency to finish the job


1) Microwave Popcorn:
- A chemically manufactured food-like-product
- Linked to infertility in women
- GMO

BTFC: Buy the Fucking Collapse

Welcome to the Hotel Californication
Percent Bears: 14% 
Twenty-seven year low 
Back to 1987 just prior to the crash...


Ebola is not the next AIDS. It's 10x Worse

You can't get AIDS from touching an airplane seat that someone else touched two days ago

Ebola is the deadliest virus in world history without any comparison. The average person living in these African nations now struggling to get the disease under control, subsist on $1-$2 per day. AIDS treatment is currently estimated to cost ~$10/day