Although the market was up yesterday, for a few minutes this morning, it seemed as though the market might be ready to turn-tail and run for the hills. The futures at one point were down more than 120.
Now? Not so down. 70, or so.
Here’s what is going on – although most people don’t get it this clearly. One of our Peoplenomics.com subscribers summed it up beautifully in a posted comment overnight:
“…money has to move out of bonds when rates go up…… some goes to the market, and the scared money goes to gold while the Central Banks restock the larder with gold (real money). Gold has bottomed imo…
To my (slightly twisted) way of looking at the world, this subscriber has it exactly right.
We are not in crash and burn mode, at least not yet. There are several areas where there is evidence that the market still has one more “final run at the top” due…and a new all-time high this year seems likely.
Here’s a note that just passed on the wires this morning: The National Federation of Independent Business is out with its small business economic trends and business optimism report. If I can quote from the trends part of their report (which is online over here):
“The Index of Small Business Optimism fell 1 point from January, falling to 92.9. None of the 10 Index components posted a gain, six posted small declines, and four were unchanged. Overall, a “ho hum” outcome, confirming that the small business sector is not headed up with any strength, just treading water waiting for a good reason to invest in the future.”
What’s going on at the macro level for another month, or few weeks, anyway, is that people are not sure about the future.
But when we look at what the investment alternatives area, consider this:
- In our work, which focuses on how past policy errors tend to be repeated, the odds are very high that the Fed will move to bump rates again.
- This, in turn, will make bonds look like doggie doo, so where is a returns-hungry investor to park money?
- This gets us to the stock market, one of the two options. And the market has been showing remarkable strength lately, and in my work, this is just the tip of the iceberg. The optimism (that we might see REAL change in the elections this fall) should begin to add to investor confidence, but ONLY until the election. Then the mood should sour – again.
- At the same time, gold (bullion/coins) is viewed as a way to keep “money” out of the electronic system. People like that.
On this last point, there is a reason people should love physical assets for the next year: THIS IS THE MOST IMPORTANT STORY OF THE DAY, SO LISTEN UP:
It doesn’t take a rocket surgeon (or Mensa membership) to figure out that “Hey! If the FED can be robbed electronically…well, hell…SO CAN i!!!!!!”
And this is all really cool for a couple of reasons: The main one is that there are still two factions of the coming World Disorder who are duking out the control scenarios.
One is the criminal families, cartels, and so forth. They LOVE having the ability to pile up rooms full of money (like you’ve seen when cartel safe-houses get popped and they bring in forklifts to move the ill-gotten-gains (IGG) around.
This side of the equation plays on the sentiments of constitutionalists and people who hold to the idea that it’s none of government’s bee’s-wax what you have in the way of assets.
The FLIP side of this is the big government crowd and the people heading this faction would love nothing more than to turn the whole world into an all-electronic jungle when they can easily implement Cyprus-like bail-ins and rob people at will with things like negative interest rates when the mood strikes the, Remember, negative rates essentially charges you money for having money. Which is the most inane crock of shit in banking…ever…. But that don’t stop this faction from pressing forward.
This faction waves the gun control and “dangers of crime and pools of ill-gotten money going to TERRORISM” to they get the other side of the public whipped up on this, to counter Faction One.
There is a media war on, therefore, with several “moving pieces” in play.
The big money interests want to continue their slow-motion stampede into government uber alles and Hillary would be their candidate.
But here are some of the problems the e-money in banks crowd is having: People like us.
We know (because the NY Times Never Lies) that Sweden is a failing poster-child for the left-leaning policy wonks. So how is Sweden doing?
But now remember, I’m telling you Sweden is the test-case for what? Giving the bankster class a way to syphon money out of real workers for doing NOTHING except storing electrons!
According to Ure’s Invincible Theory of Everything (UIToE), the Swedes were stampeded into the cashless/socialist dreams by the 2010 Stockholm bombings which coincidentally set up the press to get cash into banks. And since then, the press hasn’t let up with stories easily found about “Why Sweden’s terror threat is a game changer…” a story from late last year.
And the left-leaners in Sweden has done their absolute damnedest to pack the country with people invading from the Muslim countries (because it fits with soft-think and expansion of government powers), we see that stories are beginning to surface like “As Migrants Flow In, Sweden Begins To Rethink Its Open-Door Policy.”
So the take-away here is what? I mean besides the fact that those old Swede jokes may have had some basis in fact because not only did the Stockholm-based Nobel outfit give a Peace Prize to someone who hadn’t done anything, but it has also taken the country six years to figure out they are being made slave-bitches of the central banksters.
The same thing is playing out in America, so any open-border presidential candidate is likely to back (remember where you read this first because we tend to run 10-years ahead of events) that stampede of commoners into electronic-only “money.”
The Flip side is not much better. Because the strong nationalism, which would shut down the border and would interdict drugs, build walls, and what have you, is also likely to dictate a lot more than border security. The problem is that these people tend to want to dictate a lot more: Things like locking people up for having a gram of weed, telling women what they can and cannot do with their own bodies, and an urge to dictate public morals after their own line of thinking which sometimes goes way right of what logic and the Constitution provide for.
We wryly note that weed was not mentioned in Federal Law (going from memory here) until the Harrison Act, or so.
But here’s how this group of folks tends to think: THEY make up new government empires by imposing regulations on the rest of us and pursing wars of aggression which ensure terrorism as blowback, and that becomes a self-fulfilling circular reference that leads to getting my junk-checked at airports. I mean WTF, we all see through this BS…
I apologize for this being a nearly-cogent discussion, of the sort we generally hold for Peoplenomics subscribers, but once you kinda/sorta figure out where markets are and how we’re doing a replay of the Great Depression lead-in, then it becomes a simple task to figure out the big picture stuff for what lies ahead.
And that part in simple: The Master Plan for the Second Depression in the USA is to blow over the economic House of Cards. Force everyone into electronic money (gold and silver and other fungibles will likely be made illegal and possibly cryptomoney, too.
Then, once everyone is stampeded it (maybe with one large terrorism act to set things in motion, like a super 9/11 rally round the flag deal (my country right or left, yada, yada) we will all have no money at all…just a bunch of digits held hostage by banksters and your government.
As soon as THAT is done, and citing how terrible conditions are in the country, the current social programs like welfare and Social Security will be renegotiated to put people into another hare-brained scheme to fatten the purses of the politicians.
Oh, and somewhere, once the plan is in motion, but after the stampede into government held money, there will be a discovery that half of the US National Debt is owed to ourselves as accounting lies. All we need to do is forgive us our own (financial trespasses) as we promote war to suck everyone in…and make sure The Order is not questioned. That sets up the 2025 war with China.
Then we all go boom.
Even if you don’t subscribe to our www.peoplenomics.com articles, this is a sample of the framework and the thinking that goes on over there.
But there’s a lot more. Today I’m working on the report about “Why Car Ownership is Obsolete.”
Saturday we will get into the extensibility of concept from that and as “Is Technology Inherently Socialistic?” (No, that’s not another Hillary email bash…there are really more important issues that finding out she is what we already feared…)
Thursday, we will return to our usual (cynical and jaundiced) view of headlines and such. But since the Coping Section (following) is mostly about the hard reality of people being preoccupied with STDM (shit that doesn’t matter), I thought I would ‘splain you Lucy how the real deck is stacked and what the Powers on both sides are fighting to seize control and shake us all upside down for more than loose change.
Feel better for knowing all this, now?
You should: West Texas Intermediate is up to $38 on the spot market. Maybe Houston won’t go down in flames like Detroit, after all. But it’s still worse than ‘85 and it will all leave the country with a hollowed-out drilling industry which will put us at the mercy of OTA’s (other than Americans) for energy in the long-term.
But, that too, is all part of the way this is rolling, don’tcha see?
Psst! Wanna buy a presidential candidate?
Got one for sale? Call 1-800-STUPIDGOP.
So what really matters today? Our news analyst in Winnipeg to the rescue:
Dear Mr Ure,
Here is a link to last week’s RSA Conference keynote address given by the CEO of Palo Alto Networks and Davos attendee expressing concern for the future of the internet. Days later his security company identified the ransomware attacking Apple computers.
The video, which you really need to watch features Mark McLaughlin of Palo Alto Networks asking a parallel question to the one we’re working on for Saturday. He phrases it in terms of the “(Inevitable?) Decline of the Digital Age” whereas in my take, there’s a matter heading toward resolution of the old (Andrew N. Ure vs. Karl Marx) debate over who’s going to end up owning the technology?
The only part of history that has changed is we have changed up the steam-powered loom and we’ve gone with electronic money and apps.
But the core question? Still unanswered.