"There are many things the President does not know. This is intentional on the part of the moneyed interests that control the very fabric of our society...Patiently these elitists have been awaiting the day when their “1984” society is a reality, crafting and shaping it all along throughout the decades."
What all this warrants is extreme caution in Bubbleville. With geopolitical risk flashing bright red, half percent GDP growth, record high equity valuations and a delusional Fed that continues threatening interest rate normalization; the market’s reality check is surely imminent.
The accrued momentum in colossal sums of money flowing this way and that way has allowed unreality to reign in international finance for a while. But that is now flying apart. The ultimate reality, politicians and economists will soon discover, is that you can’t create your own reality.
The biggest problem for individuals, and the culprit of the great “ETF buying panic,” is the “herding effect” as investors rush to chase market returns. The coming problem will be “loss aversion,”as the herding effect runs in reverse in the rush to get out.
At some point near the end of the last century the leaders of major U.S. manufacturing firms began to ponder the idea they had a social responsibility to the world at least as important as the need to increase value for shareholders. It’s not exactly clear when it started but what began as a way to curry favor with a customer base newly empowered to care about bigger things has today become something of a religion in executive suites from New York to Los Angeles.
Following the worst week for US macro data in six years, The Chicago Fed (National Activity) and now The Dallas Fed (regional) have both disappointed and fallen this morning... "I keep reading and hearing that things are swinging in a favorable direction. I don’t see it yet."
So, why is everyone so bullish? Many oil analysts take as a fait accompli that OPEC-led production cuts thus far are key to balancing the crude market. If this is the case, though, why hasn’t it happened yet?
"If the U.S. does take protectionist measures, then other countries are likely to take justifiable retaliatory actions against U.S. companies that have an advantage ... in fields such as finance and high-tech, leading to a tit-for-tat trade war that benefits no one," the official China Daily said in an editorial on Monday warning it would retaliate to any protectionism unleashed by the Trump administration.
“Saudi discrimination against women is gross and systematic in law and in practice. Every Saudi woman must have a male guardian who makes all critical decisions on her behalf, controlling a woman’s life from her birth until death. Saudi Arabia bans women from driving cars,” he continued. “Why did the UN choose the world’s leading promoter of gender inequality to sit on its gender equality commission?”
Wall Street still exudes widespread optimism that 2017 will provide another year of solid gains for stocks amid stable albeit unspectacular economic growth and only gentle interest rate rises. However, as The FT details, all is not well in reality, and the following seven charts will hearten investors of a more bearish persuasion...
"The central bank is ready for any shocks that should materialize [after the French election]... Intervening very quickly is really very easy now given the instruments we have... But as we have seen in similar cases, no need has really been observed. And the reason is that all market participants know that these instruments are there to be used."
"The American empire is becoming increasingly insecure and desperate, which also makes it increasingly dangerous. Empires don’t reform. America is tired of being controlled by a small group of unaccountable, incompetent, greedy, unethical crooks running around stealing everything in sight. Enough is enough."