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Economic Energy Elation

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2014-11-26T192309Z_1_LYNXNPEAAP117_RTROPTP_3_OPEC-OIL_original

The StealthFlation Blog

Tis the season for exceptional economic easing.  The entire energy complex and molten base metals are in a fantastic Fall free fall, whilst the juiced stock market apologists and U.S. exceptionalist pompom wavers are out in force emphatically heralding a new found era of unabashed American consumerism.  Undoubtedly, the slick super-sized shale surplus is about to make it all magically materialize.

Apparently, according to these cheerful dreamers, the well documented, severe slowdown of three of the four largest industrial economies on the planet (China, Japan, Germany) has absolutely nothing to do with the careening commodity crash. Not to mention that the 2nd largest economic bloc on the globe, the Eurozone, is mired in a metastasized morasse of malignant monetary malfunction. Just last week IMF director Christine Lagarde stated that a diet of high debt, low growth and high unemployment may yet become “the new normal in Europe”.

The world economy is indeed standing at a precipice, and yet, all these wall street country club clowns can think about is the multitude of new iChristmas gifts that will undoubtedly be placed under their terrific twinkling trees.

The incessant equity cheerleading doesn't stop there. Evidently, the fabulous frenzied flag waving is also trumpeting the jubilant re-coronation of King Dollar, which will keep the big box superstores sizzling with stupendous sales of cheap Chinese crap all season long.  I suppose, the fact that a substantial portion of the meager U.S. GDP growth over the past 5 years, that has come in large part from a rehabilitated export sector operating under more favorable exchange rates, is totally immaterial, which, by the way, is now fading as fast as green shoots on the vast frozen global economic tundra.

'Mediocre' growth plagues world economy

October 7, 2014: 9:40 AM ET 

 global economy 2015 chart

The record is stuck. The world economy will grow by just 3.3% in 2014, little changed from last year, or the year before that.

That's the latest forecast from the International Monetary Fund, which just six months ago was expecting that growth would accelerate to 3.7% this year.

 

"World growth is mediocre, and a bit worse than forecast in July," the IMF said Tuesday. It also shaved 0.2% off its forecast for 2015.

 

This is just the latest in a series of downward revisions over the past three years.

 

Trillions of dollars have been pumped into the world economy in the form of cheap central bank cash, boosting stocks and bonds, and real estate prices.  That's prompted warnings of potential bubbles and the risk they could burst.

Hate to be the Grinch that iced Christmas, however, there is a frigid, below freezing GDP level, winter blast of a blustery blizzard brewing out there.  The real economic picture is melting like icicles hanging off an old beat up barn, and the only question is whether the roof will cave in first before they swiftly melt away, much like the monetized mountain of artificial liquid snow the FED has blown all over the frozen global economic landscape.

Make no mistake my friends, the rest of the worried weary world is looking at the U.S. as the abominable snowman.  Growth has been put on ice, and thus it's now a zero sum hockey game on the all world skating rink. The U.S. has certainly been ignobly abusing its world reserve currency status to leverage itself against an entirely stale shrinking global economic pie, insidiously printing vast amounts of funny money to sustain a synthetic utterly monetized economy, and the rest of the world is on to it.

China is pressing the IMF to promptly set up the new SDR multilateral monetary regime, and Putin has backed up the gold truck to establish a gold backed Ruble. Meanwhile, the Europeans all want their bullion swiftly repatriated out of NY.  Who will buy our disingenuous diabolical debt once the currency is exposed for the deceitful fraud that it is? Remember, it's not about today's dollar and treasury safe haven bid, it's about tomorrow's confidence in our monetary system.  Are you confident in this monetized monetary mayhem?

Enjoy the holidays fat and happy while they last, as a chilling New Year awaits.   Just below is the real Christmas carol, and I highly recommend you memorize the stealth chorus lines.......

STEALTHFLATION An intractable economic condition that inevitably arises as excessively issued fiat currency compulsively pursues non-productive wealth assets in a grossly overleveraged economy, which has been artificially reflated by monetary authorities in a misguided attempt to synthetically engineer growth via extreme monetization.  (Money Printing & Interest Rate Suppression)

 

This effectively prevents the real economy on the ground from realizing the healthy normalization of free market forces necessary to genuine capital formation, which is essential for generating legitimate and sustainable economic growth.

 

Under the imposition of StealthFlation, asset prices are inordinately inflated while the generative velocity of money is eviscerated.  Worse still, the seeds of hyperinflation are sown as the overtly financialized economy becomes entirely dependent upon the interminable monetization.

The hapless hairbrained FED has unwittingly eviscerated the time value of money, and by doing so has completely broken the free market transmission mechanism that drives healthy capital formation, which can only be legitimately generated from real bottom up earned savings.  They are now utterly dependent upon top down liquidity injections via the wealth effect and asset price inflation to stimulate economic growth, and thus the interminable monetization will continue unabated.

Don't kid yourselves happy retail revelers, today's frosty deflation will soon be met by more of the same FED snow job.  I can already hear them tinkering with their supersonic financial repression ZIRP-QE snow making machines as we speak.  Be sure to stuff some big bright bars of shiny gold bullion in your family Christmas stockings this year.  Get physical or get gang debased!


Money is stored labor. Labor is part of human life.

To devalue money is to debase life itself.

 

Happy Holidays from the StealthFlation Blog

 


 

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Mon, 12/01/2014 - 08:40 | 5504028 Chat_noir
Chat_noir's picture

the world is stuck ? with 3.3% growth ? its not stuck, 3.3% growth compounds quite a lot after a few years, even more after a few decades... we're not getting poorer

Mon, 12/01/2014 - 05:13 | 5503858 Al Tinfoil
Al Tinfoil's picture

Nothing to worry about.  Starting in 2015, officially-announced GDP figures will grow steadily as new items are added to government calculations:

1. Hookers;

2. Blow;

3. The growth of Kim K's ass;

4.  Imputed income from self-services - shaving, picking nose, scratching, bathing, pouring yourself a drink, rolling your own,  talking to yourself, taking selfies, pitching your own tent in tent-town, or (if you are wealthy enough to afford it) mowing your own patch of lawn in the trailer park, etc.

Mon, 12/01/2014 - 01:21 | 5503635 JetsettingWelfareMom
JetsettingWelfareMom's picture

I usually figure that they'll keep this shit together through the next holiday/election/QE infinity/political drama, just as an alcoholic will find an excuse to drink every day, but my bat sense is off, and is saying a crash before Christmas, not after. The wheels are falling off quick... 

Sun, 11/30/2014 - 21:44 | 5503139 Sambo
Sambo's picture

Pardon me for thinking football when there are more important matters such as economy and energy.

How do people shoot themselves and walk into a trash bin?

This from NY Times:

The body of Ohio State football player Kosta Karageorge, a walk-on and a fifth-year senior,

was found on Sunday afternoon in a trash bin near his apartment, a Columbus Police spokesman

told reporters. Karageorge, 22, died from what appeared to be self-inflicted gunshot wound,

according to the police.

Mon, 12/01/2014 - 00:09 | 5503500 Burt Gummer
Burt Gummer's picture

Just stack gold and silver.

This fuckin' shit is rigged.

https://www.youtube.com/watch?v=IGYaFMFU63U

Sun, 11/30/2014 - 20:50 | 5502981 zenon
zenon's picture

There are too many signs that the world is sliding to another great depression. Crashing commodities (and the already crashed shipping rates) are one thing. The just released 11% drop in Thanksgiving sales are another. The question is how the only beacon of "prosperity" a.k.a the stock market will be kept from crashing. Having put all their eggs in this particular basket, central banks would be foolish to let the stock market tank. Otherwise 6 years of money printing would be waisted. To reinflate the beast would in such a case require a multiple of what has already been spent. Hence the most economical solution is for the re-instatement of another QE (over and above the surreptitious daily dabbling in equity derivatives).

Sun, 11/30/2014 - 18:28 | 5502501 AUD
AUD's picture

Wrong.

Money is the highest quality, so most precious. Or at least it should be.

The credit of the US is junk, yet trades most precious, as money. In other words a Ponzi scheme. The biggest the world has ever seen.

Its fall will be spectacular.

Sun, 11/30/2014 - 16:57 | 5502241 assistedliving
assistedliving's picture

 "metastasized morasse of malignant monetary malfunction...country club clowns...blast of a blustery blizzard brewing...a fabulous frenzied flag"  aagh I've been Agnewed by an anglo.  "winter blast of a blustery blizzard brewing.... icicles hanging off an old beat up barn... zero sum hockey game on the all world skating rink"  now metagored to beg for mercy.  i play/coach hockey and its no skating rink out there.

its Casino Royale poker https://www.youtube.com/watch?v=POYW0NgkuCA

followed by torture https://www.youtube.com/watch?v=i_y7YEIphts

Mon, 12/01/2014 - 12:31 | 5504718 Milestones
Milestones's picture

I must confess, I had not seen alleration (sp?) like that since I was in college and took some English Lit. classes. Bravo for the author and his efforts.

Also might add, an interesting article.          Milestones

P.S. I believe Agnew was Greek,

Sun, 11/30/2014 - 03:01 | 5500890 ebworthen
ebworthen's picture

"Money is stored labor. Labor is part of human life.

To devalue money is to debase life itself."

Spot on again Bruno.  The Central Bankers are Mad Hatters.

Sun, 11/30/2014 - 09:43 | 5501151 Eeyores Enigma
Eeyores Enigma's picture

"Money is stored labor. Labor is part of human life.


To devalue money is to debase life itself"

Therefore stored money (all you so called "investors/financial wizards/banksters)is the definition of modern slavery. DICKS!

Sun, 11/30/2014 - 11:38 | 5501396 Nels
Nels's picture

My money is my life stored, not yours.

Slavery is when you steal my money, not when I keep it.

Sun, 11/30/2014 - 13:19 | 5501654 Eeyores Enigma
Eeyores Enigma's picture

So nels, you never buy anything or any servicies, aka other peoples labor?

You do all of your own production or trade your labor directly for the equilivent labor of someone else?

Is it possible for you or others to aquire soooo much money (via nefarious means mostly) to never have to "labor" again for the rest of your/their lives, living off the labor of others? Which is predominantly what is happening right now by the way.

DICK!

Sun, 11/30/2014 - 12:18 | 5501525 LawsofPhysics
LawsofPhysics's picture

...but...but...but "debt is money"...   LOL!!!

 

Look "folks", life is many things to many people, but the bottom line is simple, infinite growth of any one particular thing or species in a closed system with finite resources is impossible, period.  Anyone else who says otherwise is trying to sell you some shit you don't need simply to make "life" better for them and not you.

Some people/societies will have the energy and resources to have a high standard of living, but most will not. 

SAME AS IT EVER WAS...

Sun, 11/30/2014 - 01:17 | 5500772 Kina
Kina's picture

The thing is

'Mediocre' growth plagues world economy'

is that these 3% figures themselves are fabrications.

 

So how much of the trillions in money printing have actually gone to areas that would actually stimulate growth??  There has been no genuine US effort to stimulate growth except use it as an excuse to pump money to banks and elites.

 

Maybe they would have gotten some better real growth if all those trillions went to places where it created growth.

Sun, 11/30/2014 - 00:27 | 5500684 Sub MOA
Sub MOA's picture
"Money is stored labor. Labor is part of human life." "To devalue money is to debase life itself."

 

This bullshit should read :  

Money is stolen labor. Wage Labor is a forced part of human life ... WAGE SLAVES To value money is to debase life itself.
Sun, 11/30/2014 - 01:10 | 5500764 TeethVillage88s
TeethVillage88s's picture

MIC strategy is reveal slowly some details that make covert ops grand.

Keep info under the veil of secrecy... in war... until we can sate the press, but wow don't think about this.

MIC Kinetic Potential is Huge. US Global Reach is Huge. Reality is shaped by huge MIC, Financial, Political, and Economic Reaches of the USA.

But I am not an Expert.

Sun, 11/30/2014 - 00:14 | 5500648 AdvancingTime
AdvancingTime's picture

How these lower prices effect a particular nation will vary and will effect both their currency and how competitive they will be going forward. The decision by OPEC members Thursday to keep their production ceiling unchanged has sent crude prices into a tailspin. Dropping oil prices add a new surprising new dimension to the stability of the world financial system.

While often heralded as a godsend to the economy and the end consumer we must remember lower prices hurt both producers and those in the business of oil exploration, drilling, and sales. The shale boom has been one of the bright spots in the economy in recent years and acted as a tailwind that accounted for much of America's growth. Expect this to come to an abrupt halt and with it thousands of jobs. The article below delves deeper into the dark side of falling oil prices.

http://brucewilds.blogspot.com/2014/11/dropping-oil-prices-increase-risk-to.html

Sat, 11/29/2014 - 23:36 | 5500555 Otto Zitte
Otto Zitte's picture

I do not teach my STEM students to slave. They won't work for free.

You can't fire me. I have tenure. In English.

Sat, 11/29/2014 - 23:03 | 5500479 lasvegaspersona
lasvegaspersona's picture

hmmm sounds a lot like Friday's close....markets higher yet (by iddy bits because they cannot be allowed to fall) while we see huge drops in everything else (that is what you call oil right, everything else?) but the dollar deflates perfectly.

The paper gold market looks dead (OK it is just dying) and when that goes we should see the entire derivative market crash, so yes...happy holidays...gunna be a hell of a New Year!!! (just kidding, we aren't going to make it to year end...stock up)

Sat, 11/29/2014 - 22:40 | 5500429 blindman
blindman's picture

that is what is obfuscated and denied, avoided, by every moment,
product and related marketing advertisement
known to man. avoid and eliminate thought and thinking
and the people will bow and bend to "new" psycho time demands,
then shop for the distractional, distributed means
of technological transmissions.
wide screen and phlat t.v.s. and moar.
.
people will pay good money to avoid the pain
of thinking, to buy the items that facilitate
that avoidance. stop. here, time for a commercial
break, we have to pay the bills, ay? fill your
schedule, fill your moments and mind with distractions,
diversions and the business of dementia.
they have names for this shit that are less
than genuine or honest.
.
if money was stored labor there could be no central
bank playing with it.
.
money is fiat stealing of labor. that is the thing
of governance , finance and systemic money.
peace.

Sat, 11/29/2014 - 23:09 | 5500494 lasvegaspersona
lasvegaspersona's picture

blindman

you mention money but what if nothing did all 3 things money is said to do? What if dollars weren't a store of value and gold didn't work (without tortured effort) as a medium of exchange? What if some other currency became the unit of account? Would you still say the same things about money?

We are about to enter a new system in which some of the problems that always happen when people try to save in the medium of exchange (or whatever the item  chosen to create loans is) is corrected. It will be hell going through it for those who hold only paper assets but coming out the other side should be much better....for those who survive.

Sun, 11/30/2014 - 03:08 | 5500894 blindman
blindman's picture

exceptional question you raise,
unit of account. i do not know
what that might rightly be, there,
the quandary for the ages. i like
the heavy shinny things as gifts
for loved ones, they never refuse them?

Sun, 11/30/2014 - 08:16 | 5501060 crazytechnician
crazytechnician's picture

He is talking about bitcoin.

Sat, 11/29/2014 - 21:43 | 5500289 RaceToTheBottom
RaceToTheBottom's picture

Debasing is theft

Mon, 12/01/2014 - 05:26 | 5503864 Ghordius
Ghordius's picture

this is way more correct then "Money is stored labour". in fact, I find this meme more poetry then fact

yes, you can convert money into labour of someone else. but this someone else will only do it because he will too be able to convert again this money into wares and labour

so the facto it looks like money is stored labour, but so is "I'll scratch your back if you scratch mine", or any IOU

money is just whatever fulfils the function of money, chiefly a means of exchange. quality of money is how long it's value holds

Sat, 11/29/2014 - 21:14 | 5500222 VWAndy
VWAndy's picture

To devalue money is to debase life itself. That says it all. Most exelent.

Sat, 11/29/2014 - 21:02 | 5500191 amadeus39
amadeus39's picture

Enough growth already! Growth in knowledge and invention fine. But this mindless mantra that companies must grow is lunacy. Just keep making quality products and providing quality services at a reasonable price for reasonable profits. I emphasize reasonable.

 

Sun, 11/30/2014 - 22:42 | 5503284 Creepy A. Cracker
Creepy A. Cracker's picture

"...reasonable profits. I emphasize reasonable."

Which companies have profits that are too high? (Hot stock tips on their way!) And what is the definition (percentage please) of profits that are too high? Are Amazon's profits unreasonably high (hint - Amazon has NEVER made a profit)?

Is it OK that governments (fed, state) make more "profits" (taxes) on gas than oil companies - the producers of said gas?

Sat, 11/29/2014 - 23:10 | 5500492 MalteseFalcon
MalteseFalcon's picture

So cheaper oil and commodities are bad for the economy and bad for growth?

It's bad for those invested in these things.  That's true.

Cheaper oil is better for 95% of America. 

If you believe that oil prices have been manipulated to be too high for the last six years and that manipulation has finally ended, then you believe that a lower level of oil prices will be here for years.

I suppose eco-types and peak oil-types are also up in arms.

Oh well you probably can only please 95% of the people.

 

 

Sat, 11/29/2014 - 23:17 | 5500509 lasvegaspersona
lasvegaspersona's picture

Cheap oil is great for the end user until the price drop kills the supply. The effect upon the fiat monetary system is another story. If prices drop across the board it would be great for consumers but what about all those loans taken out with the expectations of higher prices and profits. Those loans will fail and with it the currency system. Debt is the very essence of fiat, when debt fails money is destroyed. If we are entering a period of deflation then we are about to see the death of the dollar monetary system.

Sat, 11/29/2014 - 23:45 | 5500571 MalteseFalcon
MalteseFalcon's picture

The supply won't be killed as the producing countries have responsibilities and must continue to pump.  Saudi Arabia cannot turn to their people and declare BK.  Unless they want their heads on pikes.

Yeah some debt will default.  Commodities related debt mainly.  A shock to the system?  Yes.  Death of the dollar? Does the USA still have its military?  Yes? Dollar rocks on.

Sun, 11/30/2014 - 02:26 | 5500844 Bemused Observer
Bemused Observer's picture

Yeah, as long as you're paying that military in gold...

Sun, 11/30/2014 - 12:27 | 5501545 OC Sure
OC Sure's picture

You all are learning well.

http://ocsure.blogspot.com

 

1. Productive work is performed to meet the demands of living.

2. Productive work is performed by someone else to meet the demands of living.

3. 1 and 2 want to exchange the results of their unequal productive work.

4. A medium of exchange is agreed upon to equalize this exchange of disproportionate work.

5. Gold is the agreed upon best medium by those who do productive work.

6. The truth that something can only come from something, money, defines Aristotle.

7. Who are you?

On Counterfeit

1. Productive work is performed to meet the demands of living.

2. Productive work is not performed by someone else.

3. 2 cannot offer 1 any value as the means of freely obtaining the value produced by 1.

4. An easily obtained medium is required to falsify that productive work has been performed.

5. Paper/digital blips are the best medium for those who steal to meet the demands of living.

6. The lie that something can come from nothing, counterfeit, defines Plato.

7. Yeah, who are you?

 

Mon, 12/01/2014 - 02:58 | 5503765 _disengage_
_disengage_'s picture

Not disagreeing, but if you want to be specific you'd do well to differentiate MEDIUM OF EXCHANGE and STORE OF VALUE.

These can (and should) be separate. Fiat as a medium of exchange and gold as a store of value.

By allowing the gold to price the (competing) fiats you put an "alarm" on fiat that goes off when the balance is thrown too far out of whack. This is essentially freegold.

Mon, 12/01/2014 - 12:11 | 5504669 Manthong
Manthong's picture

“Saudi heads on pikes”..  I like it.

But could we possibly get some Fed heads there, too?

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