Loading ...Martenson
Taking a liberty here on a long weekend with a bit more economic philosophy on where we are, and where we’re likely headed … its the fundamental backdrop to my TA, in any event.
“Yes, it’s all made possible by the delusion that somehow being owed money by an insolvent entity will endlessly prevent your own insolvency from being revealed. How much longer can that delusion last?” (pdl: And I take that to include Social Security, Medicare, Pensions, etc)
All of this is really just the terminal sign of a major credit bubble — a credit era, if you will — drawing to a close.
I will once again rely upon this quote by Ludwig Von Mises because apparently its message has not yet sunk in everywhere it should have:
“ There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.”
~ Ludwig Von Mises
https://t.co/IgrMjWi1kJ (copy and paste the link?)
Martenson via ZH
So … will it be helicopter money that catches the market at 1575, and spurs the revival of the PMs? (For an additional brief flash before it all implodes for real?)
That quote from Mises presents to us the big picture question. Which path will the controllers of the world’s fiat currency system ultimately take? Will it be currency catastrophe later or credit system collapse sooner. Right now, with everything going down in price, they could opt for the credit system collapse by just doing nothing. In other words, this system will implode on its own if the Fed simply stops expanding credit by not increasing its balance sheet, not reducing interest rates, and not engaging in any other forms of monetary stimulus. My contention has always been that once the stock market drops far enough, they will revamp the QE and ZIRP policies to keep the party going as long as possible, but who knows, maybe they have a different plan for us.
Your question about helicopter money catching the market at 1575 is one I posed here: http://goldtadise.com/?p=346836
If Sir Rambus’ long term chartology projection for the stock market moving substantially higher is correct, then I believe there is a very good chance that it is due to a flight of wealth into anything other than cash. In such a case I believe that stocks would benefit, but not to the extent that PMs and other commodities will.
The Fed normally tries to avoid the limelight during the middle of an election year, so as not to appear too political or to be playing favorites.
So I have doubts anything too radical in policy is ahead for the next few months. Not with Fed heads like Williams still talking four hikes, and proclaiming insensitivity to “market volatility”. But its still early so we’ll see.
The fractal that interests me is the hand off of Treasury Dept direction when the WH changes hands. As the senior level political appointees leave (in body or spirit) but before their replacements are selected and confirmed. SecTreas in particular. PPT is in, or at least directed by, the Treasury Dept. That is when the market tends to …. um … slip. Fall of 2000 and again in 2008 … 2016 and we’re there again.
Now THAT is Profound Pedro
Please post that idea in a separate post
!!!