So This Is It

No one wants to believe the Fed is going to take away the punch bowl from this party, least of all the boyz on Wall Street. After all, why would you want to return to reality when the dream state of free money from Fed heaven is the current norm. You wake up each day now to virtually all of the talking heads discussing what each word in the Fedspeak that day means. Only someone that is willfully ignorant can’t comprehend what that means. For those that are “unsure” …..it means the Fed IS the market. 

When your entire entire economy is in “such a steady recovery”, that the Fed can’t even TALK about raising interest rates in a few months, one has to wonder just WHAT is recovered. Do you mean the Eurozone is going to NEGATIVE interest rates and WE’RE going to RAISE interest rates. Just HOW do you think THAT is going to work? Someone is lying. I used to think a nominal 25bps might be useful to pull a little air out of the current equity bubble, but the effect on the dollar would create an incredible strain on our exporters and you know who wields the power in D.C.. 

We’re reaching an impasse this year and something is going to give with the currency wars. The Swiss fired the first shot. There will be more casualties to follow this year as balance sheets become more strained. Greece can’t have their best educated working as prostitutes and bartenders and they are looking towards Russia now as a counterparty to the EU. 2015 promises to be a year of turmoil as the deflationary pressures begin to bring down the money printing scheme of the Fed. Nature eventually has to be obeyed. France is threatening the entire Eurozone structure tonight and the news tomorrow will be only about the Superbowl. Let the Tanks roll into Ukraine and blow it apart. No one will even know in today’s news feed. Enjoy….but one day the ponzi breaks and when it does it will be in the blink of an eye. gl