Phony Money is Imploding
Long Live Phony Money!
On the surface, it may look like “just another morning” for Wall Street. However, it is not. This year, we may see the total end of “rational money” and Balkanization of personal wealth.
Today’s “Stock Rally” Fraud
If you’re a small investor – with perhaps something in your 401K plan and such – the early futures this morning would come as good news. Because if you looked at Yahoo Finance earlier, you would have seen that the S&P futures were up 21.5 points. Which is 0.57%.
“Great! My portfolio will go up!”
On paper? Yes. But in Reality, No.
You see, if you had looked at the currency exchange rate of the U.S. Dollars, you’d see the Dollar was DOWN 0.53%. You following this?
As we have been warning you for months: “Don’t look at nominal pricing of stock indexes. Instead, look at your portfolio’s long-term Purchasing Power Parity (PPP). Consider Global valuations.
Simply put, thanks to consumer super-saturation (how many more UHD TV’s can you buy per year?) the outlook for additional goods consumption is low. So instead, we come to the “Insert Magic Here” point in our flowchart into Future.
Calling All Magicians!
There are several types of “magic” in play, so the world is desperate for more magicians. (Of course, magic at this level is a con, so swindlers and shysters are welcome, too!)
The first is “magic technology” which will turn your phone into….a what?
At some point we run out of stupid apps. The result is that “investors” (size=small) have been conditions to buy oodles and armloads of anything with a “magic tech backstory.” Great news for BigCorp CEO’s: They don’t have to share earnings. All they need to do is remain in charge. Letting the “great fools” bid up their storylined paper assets. PFM.
The second “magic” has been “the global pandemic” – and while the incidence of PIC (pneumonia, influenza, and Covid) shows an increase in mortality this year, another cross-check of data says (vanilla) flu deaths have almost ended. Which begs the question “How much of CV-19 is statistical jiggering (reclassification) and how much is actual without “borrowing the dead” to make-up a good marketing pitch?
Hint: Think about the billions made – and lost – and notice that while corporations have been “getting by” (because they can work the system) the real impact of CV-19 has been to run mom & pops out of business.
FTM: Follow the Money! You just had $600 handed you as “hush money” but in reality, the “new boss” (Joe & Kam shortly thereafter) are the same as the “old boss” who made great theater out of Change.
Third Class of Magic? Cryptos: We have been waxing on this, seems like, forever. Write this down on a piece of paper somewhere:
“Cryptocurrencies have no intrinsic value.”
“Mining” is bullshit-speaker for “making up numbers.”
At their core, the cryptos as nothing more (or less) than a “made-up” Secret Number.
As we will explain to our Peoplenomics readers Wednesday (the short preview now): It’s ludicrous that Cryptos are in competition with one-another for market share. Because laughably, a new breed of financial manipulation is coming: One that aims to become crypto agnostic.
As that happens, noisy fans and bad smells will appear everywhere. Especially when multiple groups wake up to the crypto-agnostic transaction swindle. We’ll save that for the grown ups.
Money? Missing In Action
Traditionally, “money” had two functions: “Exchange/transactional” and as a “storehouse of value.”
Cryptos – having no intrinsic value – you can’t wear or eat the damn stuff – are purely transactional.
The magicians (cons), though, are desperate! The “Velocity of Money” is still on the slab in the Morgue:
See the transactional problem?
In order for there to be actual by-God Economic Growth, there has to be additional consumption. Problem is? Since most people with ambition are able to find “3-hots and a cot” where is the incentive to become “decisively engaged” and be a high consumption worker-bee?
The socialist’s wet dream – Universal Basic Income [UBI] can only make matters worse. It’s like a mob has taken over economics and each faction of the mob is trying to gin up more supporters.
Liberals Are Economic Stooges
But, they shouldn’t feel too badly: Conservatives are, too!
The political power structure in America shed the patina of Citizen Lawmakers years ago. We are presently ruled by an arrogant class of law school pricks who don’t even have the courtesy to read what they vote on.
The problem facing the global economy is that things will now “hit the fan” at ever-increasing rates. It’s like gravity. Remember that formula? 32-feet per second per second until you hit terminal velocity?
A subscriber recently asked “Did this all start with Nixon slamming the gold convertibility window?”
Yes. Nixon was an idiot (and did I mention lawyer? Republican?) He was too anxious to paper-over his legacy so he’s the one who began “selling out America” to the ChiComs. Yet (here’s another swindle for you:) He was a republican and talked as a conservative might.
The demise of the dollar is a slowly-metastasizing cancer. This year we enter Stage Five. No treatment in sight.
Catherine Austin-Fitts Rocks
If you haven’t seen her in-depth analysis here:
…You need to block a full hour. 49-minutes to watch and then 10-minutes figuring out how to cope with what she lays out.
We will work on that last task a bit more Wednesday on the subscriber side.
Oh, and for those who didn’t understand that the “race riots” of 2020 were “Manufactured” for economic ends, roll the Austin-Fitts tape up to the 29-minute mark.
There, you will see how Big Corporate Chiefs will be able (as things ramble down from here) to make hugely profitable gains (tax-free) from investing in burned-out “opportunity zones.”
This stuff is neither accidental, nor coincidence, as we see it.
Instead, we continue to “Replay History” and as we are within spitting distance of equaling the 1929 Bubble Top (like this month or next), we are already seeing how the coming Global War (to meet the functions of killing people and breaking things, destroying savings) will be played out.
VWW: Virtual World War
Our (audio) podcasts may return this year to the subscriber side. Because there is just so much beginning to move. Almost like “break-up” which is a big deal in Alberta along rivers long-frozen over winter.
One of the first ones (I’ll have to check his schedule) would be a conversation with my consigliere. He forecast – with considerable accuracy where all this would end up back when he was finishing the JD /CPA track in 1979.
His scenarios end in the 2023-2026 timeframe in a global war, likely with China. Not a bad dart thrown back then.
The Modern Question
Becomes this: Given that all of us who have done serious “economic cycles work” have seen how we must have a bad-ending in order to unwind the systemic corruption that happens over time (as money becomes loaded progressively with debt), is there a chance we could “unwind” in a virtual sense?
I’m afraid I already know what his answer will be: No.
Because in the end the function of a war is many-fold. You need to kill people. You need to break things. And you need to destroy savings.
The operant questions then become:
- Can the “killing function of war” be synthesized via statistical manipulation and a bad flu bug (variant)?
- Can the “break things” function be achieved in a virtual sense by depriving people of “title” to things not fully paid-for? We still have an evictions problem looming…
- And can savings be adequately destroyed via a well-modulated soft hyperinflation?
I don’t think so. Not sure what he’ll say, but the outline is there.
The Globalist Circle Jerk
Wars happen when the music stops in the financial Musical Chairs Game.
Take the holders of U.S. Debt worldwide:
- The biggest US Debtholder is Japan: $1.2 trillion.
- Second biggest is China: $1.06-trillion
- Third? The Useless Kingdom: $0.43 -trillion.
The way the world works [presently, but not for long] is the countries buy and sell each other’s debt paper.
What no one talks about (when discussing the U.S. debt) is how foreign countries in the past 10-years have purchased more than a trillion dollars of U.S. real estate.
Thnk this through very carefully: The U.S. spends more than it makes. And we pay interest on our debt. We sell this off to other countries.
In the case of China, for example, they take the U.S. debt paper (gee, how did some drug cartel money get mixed in, huh?) and it’s then used to buy America out from under us! Japan resells the paper in order to pay its growing retirement costs. (See how useful CV can be? Think how it will impact Social Security…)
When the music stops…it all comes crashing down. Just not this morning.
Look, I don’t want to piss on a perfect winter Monday for you. But this is likely to be a pivotal year. Financial cons and swindlers are now “working one-another” and we just don’t see much of a happy ending to it.
We now return you to your regularly scheduled bamboozles. More about “War Among the Bankers” in Peoplenomics Wednesday. Schitz broken and we’ve run out of glue, welding rod, baling wire, chewing gum, and prayers….
Just remember: S&P futures were up 0.49% mostly because the Dollar was down 0.44%. Take more made-up money, got it? And gold going up $42 bucks (2.4%) should scream volumes about gearing/leveraging of gold and silver – which was up 3.74%. Not like we haven’t told you about this stuff…
Eyes On Trump
Last 3-weeks of the You-Know-Who administration could involve a final outburst of Trump-bashing.
In particular, see “Donald’s Trump bid to steal Georgia exacerbates GOP election storm.” As the Bezos-owned WaPo breathlessly offers insights into how Trump pressured people to find votes.
Women, children, and populists to the lifeboats as “More and more Republicans protesting Trump’s election challenges.”
Meantime, our biggest concern is Trump might somehow interject the U.S. into international affairs with the intent of getting a “flash war” going and then use that as an excuse not to leave office. Oh, look! Opportunity knocking? “Iran seizes South Korean oil tanker as it increases uranium enrichment.”
Japan Mulling Declaring Emergency for Tokyo as Cases Surge, sure has our attention. Why, if they kill off enough of their pensioners, might be bad for long-term U.S. debt (bond) sales!
Now that son George, II has his first shot of Moderna‘s brew, much ado in the UK about Covid: What is the Oxford-AstraZeneca vaccine?
Sounds like a marketing battle to come, doesn’t it?
Don’t take a Leaker: UK Court Rejects Assange’s Extradition To US.
Things wont be changing: Nancy Pelosi is narrowly reelected House speaker.
And off in the background, this NY Times story about the resurgence in unions as a more progressive path than politics is useful: Hundreds of Google Employees Unionize, Culminating Years of Activism.
On that, welcome to the first Monday of 2021.
If the U.S., dollar (*which was trying to rally with an hour to the open) manages to put on some beans, then the Dow and S&P could decline. Currency exchange rates matter…at least to the rich.
Write when you get rich,