Let The Good Times Roll
Trump has won the election. For this we should be truly grateful, because the alternative was pure evil and could have ended us all. And you can see the relief in people aware of this possibility everywhere, with true-hearts the happiest they have been in years. What’s more, this euphoria is being carried over to the financial markets in a big way as well, with 1000 swings higher in the Dow as billionaires pile back into stocks, economy sensitive commoditiessoaring, and cost of money breakouts above decade long trend-lines hitting the tape. And why not right? Inflation is back with Trump and his plans – the infrastructure spending, expansionary fiscal policy, jobs that will be created, and so on. Again, for anybody who’s been in this game for more than a few years – Dr.Copper is rising, giving us ‘the signal’, so jump on board – right? Let the good times roll – right?
Thing is, if the economy is truly set to pick-up moving forward, which is likely the case at some point with all of Trumps planned spending, and interest rates are set to normalize – if you listen to the likes of Stanley Druckenmiller on propaganda outlets like CNBC – you would run out and sell all your gold and give that money to a New York based hedge fund manager who’s ‘optimistically plugged into this new reality’. (i.e. himself.) Of course if you have more than two brain-cells rolling around in your head, one might consider these jobs are not here yet, higher interest rates are about to crush the financialized economy, and that his optimism will be challenged because of this far sooner than he would personally like. (i.e. because maybe he won’t be a billionaire anymore.) Naturally you can’t blame Wall Street shills for attempting to sell you another load of BS like this because that’s their job – where they would like to financialize the economy to infinity if we let them.
Because with all this financialization, the economy has been almost completely hollowed out, with the majority of valued-added jobs exported to cheap labor destinations like China, which in turn has nothing less than devastated America’s working class – a condition that is about to bring a sense of reality back to guys like Stan sooner rather than later as well. Just look at the world’s most important and economically sensitive commodity for instruction on this – crude oil. Because it’s not possible for a few crazed speculators to run oil up like they did copper, where black gold prices have been crashing of late. And of course there’s precious metals as well, where prices are allowed to fall unrestricted, however when they start rising copious amounts of naked selling comes out of the woodwork on Comex. Copper is allowed to rise because it jives with the status quo’s bullshit story – you know, the one that goes ‘who needs that gold and silver crap anyway – right?’
The question then begs just how long Wall Street will be able to maintain the illusion, where Da Boyz would have you believe they have arrived at a “permanent plateau of prosperity”. Yup – everybody else can go to hell, but they’re very confident they can keep the markets rigged indefinitely because after all – it’s only a video game right? And by the way, it’s bonus time so don’t get too bearish until next year. (See below.) Of course the Democrats thought they had the election in the bag with their rigged machines and they lost. So one must wonder if Wall Street’s confidence is misplaced – no? One thing is for sure – it’s all or nothing with the ‘financialized economy’, which is now ‘the economy’. There’s no wiggle room left because the bozos at the Fed have attempted to erase the business cycle by flooding the system with currency digits; where one mistake now and the entire edifice comes crashing down like the Tower of Babel.