Stagflation!

Or you can call the headline “the curve is about to invert”.  You really don’t care do you? You should. Its the conundrum the Fed has boxed itself into. They keep raising the lower end of the yield curve in an effort to CONtinue the illusion “there is a recovery and we can normalize interest rates again”. They keep “hoping/expecting” you to say “wowza, watta great job you did saving us from an economic crisis”. Maybe they think you forgot that before and all during the “crisis”….they were telling you there was NO crisis. 

Seriously how can you not admire a great Con. I mean get serious. You blow a “tech bubble” in 2000 with derivative leverage and then blow another housing bubble in 2008 with even bigger derivative leverage and then announce in 2009 that you’re gonna fix that bubble crash with even bigger leverage. I mean that makes the original Charles Ponzi blush. This time its different though. This time the leverage scheme has the full support of the Fed right out in the open with Fed presidents appearing virtually daily telling YOU (AKA The Mark) ……That another crash in our lifetime will not happen. I love it. I absolutely love it. 

And as most you know I thought we had a problem with the math. You know…..MATH. Like if ya said we have a big phat insurance company that has actuarial tables that guarantee your life insurance policies and your retirement policies and your health care policies that DEPENDS on a yearly 7% return on their money. MATH! You know…..like how a whole f#ikin state…say like Illinois for instance can have a 50% underfunded state pension fund for all of its state employees with ZERO interest rates and CONtinue to pretend there’s a mathematical solution. Maybe 2X2 = 67million…. You can get to parity quickly with that math. 

Who in the HELL is going to buy these massive amounts of new cars and trucks that have been manufactured at 50K a pop. We’ve given every fool that can fog a mirror a new vehicle and we’ve reached the end of the greatest fool. So now we’re back dooring QE into the car companies so they can discount new trucks to the tune of 15K a truck and STILL no suckers are out there. 

We’re trying to further disrupt the Middle East in Yemen, Qatar, Syria, and Iran but we can’t even get Oil up a penny with each new war headline. 

Hell…..Erdogan to lead a tank division into Italy and oil would probably drop even further. ITS CALLED STAGFLATION! “THEY” have killed growth. “THEY” have pushed so much debt on the masses, that no one can buy another refrigerator unless they’re in the minority that have benefitted from the ponzi.

So what can they do? They can bullshit us. Oh wait. The proper terminology is “to jawbone us”. You know….tell us its so good that we’re gonna raise rates. Just one problem. The longer end of the yield curve KEEPS DROPPING.  THERE IS NO YIELD and their will be no yield. NOT until the CONfidence in the dollar breaks. AND if that happens you are going to go to hell really fast. Oh you’ll be happy that you were finally proven right. You’ll say I told you it was a ponzi. BUT your way of life is going to turn to pure hell. It will be where the VELOCITY of MONEY finally begins. It will initially be Stagflation (now) that worsens. ie. higher inflation with even worse wage growth and jobs. Then it will become higher wages…..that DON’T keep up with inflation. AND then the tail chasing starts. Wages start chasing inflating essentials with shitty job growth and decaying infrastructure. Social malaise worsens and evolves into social angst and breakdown.

Government promises become an increasing crescendo of giveaways and the Fed panics and fires QE salvos into the swarm of beggars. Pretty soon it happens. Its out of CONtrol. No one could have seen it happen. Its Venezuela on steroids. Its socialism. No wait. Its Fascism. Wait….its a hybrid. Its a fascist, socialized, nightmare. Its malinvestment on steroids. And finally the piper will be paid.