The elephant outside the room is named Discontinuity. That’s perhaps an intimidating word, but it is exactly what the USA is in for. It means that a lot of familiar things come to an end, stop, don’t work the way they are supposed to - beginning, manifestly, with the election process now underway in all its unprecedented bizarreness. One reason it’s difficult to comprehend discontinuity is because so many operations and institutions of daily life in America have insidiously become rackets, meaning that they are kept going only by dishonest means. If we didn’t lie to ourselves about them, they couldn’t continue.
If we continue to put garbage in, we are going to continue to get garbage out, and that is the cold, hard reality of the matter.
In 1994 Christopher Lasch wrote in The Revolt of the Elites: “In our time, the chief threat seems to come from those at the top of the social hierarchy.” As Lasch said, the greed of the elites for money and power have undermined the constitutional basis of the United States. The elites have used their power to betray democracy. Will the American people succeed in clawing back their democracy?
America is going to learn something about the uses of disorder before this year is out. One of these is to compel the construction of a coherent consensus as to what is actually happening in the world, apart from our wishes and fantasies. That is, if we are not torn apart in the process of getting to that.
Superpower America required a more dangerous enemy than a few lightly armed jihadists, so the “Russian threat” was created. To drive home the threat, Russia and her president are constantly demonized. The conclusion is unavoidable that the insouciant American people are being prepared for war.
The year continues to be bruising for risk assets and recent attempts at stabilisation have been unsuccessful. After a mild rebound, equities and US credit spreads are again close to their year’s worst levels. In addition to the initial concerns about China and energy, two new issues further weigh on risk sentiment: the slowdown in US growth momentum and the tightening of financial conditions especially in European financial credit.
Please, take umbrage of my experiences before you decide it's time to press the button on your SHTF nuclear option plan and retreat into the bunker.
As in George Orwell’s 1984, the IMF is dividing the world into warring factions - the West vs. the BRICS. To avoid the coming conflict that the neoconservatives’ pursuit of American hegemony is bringing, the Russians have relied on fact-based, truth-based diplomacy. However, neocon Washington relies on lies and propaganda and has many more and much louder voices. Consequently, it is Washington’s lies, not Russia’s truth, that most of the Western sheeple believe. The Western peoples are so dimwitted that they have not yet understood that the “war on terror” is, in fact, a war to create terror that can be exported to Muslim areas of Russia and China in order to destabilize the two countries that serve as a check on Washington’s unilateral, hegemonic power.
The Western world consists of a tyranny in which brainwashed nonentities live in a constructed reality. Can enough of these people be rescued to make a difference? That is the question.
Within one hour of the Paris attacks and without any evidence, the story was set in stone that the perpetrator was ISIL. This is the way propaganda works.
Late on Friday afternoon, after recording its biggest monthly points gain in history, the S&P500 unexpectedly took a surprising swoon lower to close trading well in the red. This chart may be the reason why.
How governments all around the world resort to absurd marketing to finance largesse
Whether one calls it the latest glitch in the matrix, or yet another "market peak" indicator, the outcome will be the same.
Now that mortgage rates are sliding back to 2015 lows, any sense of urgency from the demand side of the pricing equation has been removed. So what is the alternative? Pushing the supply into overdrive of course, and doing more of precisely what got the US financial system (and the bailed out GSEs) in trouble in the first place: today Freddie Mac, together with Quicken Loans, announced a new lending program, one which would enable "eligible borrowers" and focusing on millennials, to finance a house with a "down payment of as little as three percent."
You’re doing yourself a disservice if you don't have a basic working knowledge of what, say, a volatility surface means. We're not saying that we all have to become volatility traders to survive in the market jungle today, any more than we all have to become game theorists to avoid being the sucker at the Fed’s communication policy table. And if you want to remove yourself as much as possible from the machines, then find a niche in the public markets where dark strategies have little sway. Muni bonds, say, or MLPs. The machines will find you eventually, but for now you’re safe. But if you’re a traditional investor whose sandbox includes big markets like the S&P 500, then you’re only disadvantaging yourself by ignoring this stuff. Ignorance is not bliss...