After incorrectly predicting virtually every "surprise" for 2016 one year ago, the bulls better beware because in Byron Wien's list of "ten surprises" for 2017, the 83-year-old Blackstoner has turned decidedly bullish this time, and expects the S&P to surge to 2,500 while the US economy grows at a brisk 3%. With that, he may have just doomed any hope for a non-recession in 2017.
The American people have been punked by their own government and their central bank, the Federal Reserve, for years and the jig is now up. In 2017 both will lose their authority and legitimacy, a very grave matter for the survival of this republic.
"...the Fed’s efforts to ‘normalize’ interest rates will be tabled. The economy simply can’t afford higher rates. This isn’t Trump’s fault, of course. He’s been handed a badly damaged economy. Quite frankly, there’s really no way to fix it. Decades of economic degradation are irreversible."
By now, anyone in this country still of sound mind knows that Barack Obama presided through eight years of remarkable continuity - of changeless conditions that left a great many hopeless. As the days of his tenure dwindle, what do we make of the departing 44th president?
Today we look at a list of 10 things that won't happen in 2017, courtesy of Lombard Street's chief Euro economist. As Perkins puts it, "2016 was weird. Could 2017 get even weirder" and in an attempt to answer, he shares the following, "humorous" (high conviction, non-consensus) take on the year ahead.
"Markets don’t have a purpose any more - they just reflect whatever central planners want them to. Why wouldn’t it lead to the biggest collapse? My strategy doesn’t require that I’m right about the likelihood of that scenario. Logic dictates to me that it’s inevitable..."
Time will tell whether this Carrier deal was just a symbolic line in the sand, or whether it is a sign of future government interventionist policies which will ultimately backfire. In the long run, the less government, the better.
If you have any misguided notion that a cashless society is not coming, just keep telling yourself that every time you use a debit card, credit card or your phone for your next purchase. With the elimination of cash we effectively hand over our individual human sovereignty to the banks and the government.