Saturday, October 4, 2014

Third World Deflation: An Elevator Ride Into the Abyss

The corporate country club opened the floodgates to Third World deflation, now they can't fix the problem. Because they are the fucking problem:


Pandora's Box has been opened
Printing money to buy Treasury bonds (which are then flipped by Goldman Sachs to buy stocks) ends this month. It's 99.7% tapered as a % of the Fed balance sheet.

And yet, T-bond yields keep falling, indicating bond prices are rising. How can that be? That's impossible ! Every amateur denialist has their own pet reason for why this is happening, when the real reason it's happening is the exact same reason it has been occurring for 35 years straight i.e. deflation is being imported relentlessly from the Third World. 

This trend is not ending, it's ACCELERATING. The same policies that created this problem were massively amplified after 2008:


No one, this side of Prechter, saw the dollar rally coming
A rally in the most debased currency in human history is indication of a contracting money supply aka. tightening credit conditions:

dollar index inverted:



Gold: Another canary in the deflationary coalmine


RISK OFF
BitCasino: The most speculative device in human history. Is deflating
Volume bars on the left i.e. massive technical damage - overhead resistance
Mind that gap



THE ONLY WAY TO CREATE A MASSIVE COLLAPSE IS IF EVERYONE KEEPS THEIR HEAD UP THEIR ASS AND MAINTAINS THE LIES RIGHT UP UNTIL THE LAST MINUTE.

THE PLAN IS WORKING.