Remember in yesterday’s column how I told you I would have a stiff drink at the ready and be on the edge of my Lazy Man recliner waiting for the Fed’s latest money printing confessional due out in the weekly H.6 money stocks report?
Well, NSS, it was worse than I thought. On a three months annualized basis, M1 is exploding at 16% and M2 is
printing blasting away at 9%.
But as bad as these are, the monthly change rate – when you annualize it – works out to?
M1 = 29.8% and M2 = 13%. Monthly change, annualized.
Yee gads! The hidden Weimar is here.
One of our readers, obviously a genius, sent along a fine explanation which I will have to paraphrase because his original is lost somewhere in my 6-terabyte wasteland.
The real deal is that the Fed is not gong to raise rates. For the past several years they have been saying a rate hike is just six months off. but see how it never happens? It CAN’T happen.
The reason the fed will NEVER be able to raise rates is the instant they do, the whole compounded national debt balloon will pop and America will be bankrupt on the spot.
So they really have driven us into a box canyon and there’s no way for the herd to get out…
So yes, that IS (take it to the bank) the hard reality that no one seems to be wanting to talk about.
It also underscores how BAD DEFLATION IS RUNNING. Just in general terms, if M2 is going up 9% and reported consumer inflation is going up somewhere between 0 and 2% (toss a dart, it doesn’t effing matter) where is the other missing money going?
Into the rat hole of dark pools of capital.
The rich are piling up money left and right because falling interest rates have driving them into cash accumulation mode and it’s going to blow up the country – like it does in every Great Depression.
Here’s why: When I graduated from high school, I dreamed of making a million dollars: That would give me $70,000 a year income for life, I figured, with interest rates running 7%. After I made a million dollars in a 7-year period “playing the game well” I noticed something was wrong.
With inflation missing in action (despite the Fed’s printing festival), care to guess how much money you’d need salted away to get $70.000 a year of income at 0.5% interest – which you’d be lucky to find? (and without drawing down capital?)
Sadly, this is all true and it’s only a matter of how long it will take the rest of the country to wake up to the -ugly as sin- economic reality.
Oh, sure, when it happens, everyone will come back to the UrbanSurvival campfire,. pull up a rock and exclaim “Why, no one saw it coming!” And, as always, they’d be wrong.
The ONLY game in town is estimating how high this steaming lump of shit can get stacked on made-up money before it all comes down in a putrid heap.
I’m guessing we could have as long as three more years. The market ran up 5.6 times its starting level from its 1921 lows to the 1929 high.
Since the 2009 lows, 6,627 on the Dow roughly, you can run the numbers out and see we’re only about 2/3rds of the way to completely bazitzu crazy.
Which is why you can buy 50 new cars with zero percent down, while we all sit in the Roaring Twenties replay and kid ourselves about what geniuses we are at picking the right investments.
The question isn’t whether you’re nuts…only whether you’ll be a winner or loser when “all comes down.”
Shall we move on to brighter topics?
The Slow Collapse of Globalism
It’s coming – it’s just that the “free traders” don’t see it yet. We – unburdened by million, minions, and a Gulfstream – are able to see things a bit more clearly.
Take this morning’s just release report on import/export prices. They argue that thinks are far from Hunky and Dory Land:
“Year on year export prices are down 6.7% and import prices are down 10.5% year on year.”
Another sign of dropping international trade is the drop in the Baltic Dry Index – which (yet again) continues stuck at levels not seen since the 2009 market lows.
This is no guarantee that trouble is on the way.
It’s already here – circling the block. You just don’t see it yet.
Doesn’t matter to the market – futures are up. Here, have some free money kid , and shut up.
No Wreck on the Freeway?
I know how important it is for gawker nation to slow down and look at video of breaking news. So the Blaze had some links to the tornados in the upper Midwest overnight that should burn half a cup of coffee’s worth.
It’s OK, no one works on Fridays any more.
So Much for an Iran Deal
Could it be that the more centrifuges are spun up, the greater the odds that nuclear materials will be used for something other than keeping the lights on? Naw….
Madness on Bordering
While a man popped in Aridzona has been deported to Mexico 20 times, we’re also reading how another human wave of 40,000 kids is on the way.
As we reported for our Peoplenomics™ readers recently, the drought which is getting so much press in the USA is actually WORSE in Mexico so you ain’t seen nothing yet on border crossings.
The Price of Freedom
…to roam the internet is likely to be going up, figures this report. The recent FCC decision/power grab means there may be higher fees coming to support rural phone improvements.
When can I get fiber out here in the outback? Right now it’s a fog mirror vs. fiber race – rural phone providers are in no hurry to speed up the net in the hinterlands…but like so many government programs it’s big on talk and tax, yet slow to actually change things here in fly-over country.
If I could actually get a due-by date on 10 MIPS I wouldn’t mind the Universal Service Fee but it’s mostly not helping us a bit. If you live in a big city, it’s JAT (just another tax).
It’s a trade off, likely to be arranged by gubmint: Ure doesn’t get fiber, you don’t get to keep your money. That is the game, right?
Is She Really?
Hillary Clinton is set to announce on Sunday. In truth she’s been running for the White House a lot longer – probably since marrying Bill.
As one radio bloviator noted, this signifies the great change from race being the hot ticket in politics to gender coming out for 2016. Man-haters of the world unite!
Gridding for Trouble
The U.S. national power grid’s vulnerability has been a poorly kept secret for at least two decades:
The backbone of America’s critical national infrastructure, the grid enables virtually all communication, commerce, heating, cooling and lighting. Taking it down would be crippling.
A wise adversary would diligently work to exploit any weakness or dependency in the grid. Taking down any aspect of the grid could cause serious disaster readiness delays, not to mention degraded military emergency action responses.
It seems the seriousness of these infrastructure vulnerabilities, particularly to a surprise EMP attack, is behind the decision to reactivate the Cheyenne Mountain Complex in Colorado Springs.
Unfortunately, using a Trojan War analogy, the horse is already inside the gates. High level American systems have been hacked. More worrisome, regimes hostile to the U.S. have, or will soon have, the technical know how to launch ICBMs carrying EMP (or worse) payloads over N. American territory.
I cannot emphasize enough how serious it is that the grid weakness is open to exploit or attack. Using another Trojan War analogy, the grid is America’s Achilles Heel.
We’ll get into the car EMP questions down toward the end of this morning’s Coping section which is is next…