Something's Wrong

You’re in a time warp. You think that surely one day you will be  dealing with reality. You think you’re going to wake up one day and we’ll be back in a true price discovery market that is not completely controlled by algobots……..WRONG! You’re a member of the machine world now and there is no escape. Its no longer an economic world guided by Nature’s gravity. 

Timmy Geithner warned in early 2009 that a decision was made to reinflate the debt bubble through the derivative markets. I listened to his interview live on Sirius and thought it was somehow just a bad joke or at least would never be implemented by rational people. I also realized the next years would be very painful for hundreds of millions of citizens as the flawed system was reset with its natural/unnatural eventual destiny with economic gravity but I was wrong. Instead they decided to slowly kill the real economy through a long and tortured course of keeping the Malinvestments of the previous 25 years alive through an elaborate marriage of propaganda and printed money. They indeed embarked on a long journey into the rabbit hole.

Many participants are convinced this unholy alliance of Wall Street and the Fed can keep going indefinitely. A part of me wishes they could, but they won’t. I don’t know when it fails but it will, just as it did in 2000 and 2008. Put your bets on the come line for the Ponzi if you believe this time it will be different. Somehow I suspect history will repeat and one day you may find that reality is suddenly back and no one could have seen it coming. Meanwhile the machines own you. gl