I woke up this morning knowing that, for whatever reason, the S&P 500 would be up a least 20 points. Of course I flip on the telly and see the Spoos up 23 and gold down $5.
Upon investigating possible news triggers, I see that civil unrest is fomenting in China (we’ll investigate that later because the Shadow of Truth is hosting “our man on the ground in Beijing,” Jeff Brown today) and the military confrontation by proxy (ISIS) between Russia and the U.S. is escalating in Syria.
Those are obvious reasons for the stock markets around the world to retreat and for gold to be higher.
With a little further rummaging for news I see that bad economic reports in Japan and Europe have Wall Street clamoring for more QE. So the S&P 500 futures spiked up on the expectation that the BOJ and ECB would expand their “QE” programs.
We know that QE has definitively not helped the real economy other than those closest to the money spigot: Wall Street’ers plus those who benefited from the Fed dumping $2 trillion in the mortgage market and enabling the re-birth of subprime garbage mortgages – real estate pimps, mortgage whores and the smart homeowners who sold into the bubble.
The bottom line is that the S&P has spiked up – and gold was slammed, now down $12 after the near-daily hit job on gold when the Comex opens – on the expectation that Central Banks will print more money in order to buy more stocks. To put it another way, the financial system is totally fake. More QE expected. This is expectation that should have, best case, kept stocks from falling and certainly not spiking higher AND should have launched gold to the moon.
And no one outside of the GATA community ever questions why gold seems to get hit hard almost every morning when the Comex opens.
I got an email from colleague who tracks the non-farm payroll report expectations vs what might happen based on the past history the birth-death model plug number pattern. Granted, his model has a good track record, but the whole exercise is patently absurd.
A bullshit number tells us that a bullshit number is going to “miss” expectations. This concept is RETARDED. The Government’s employment report has been torn apart and proved to be a complete fiction time and again ad nauseum. It’s a complete joke that educated adults even bother analyzing the numbers as if they mean something, which they unequivocally do not.
Who cares if the employment report misses, beats or is in-line? It’s like debating whether or not the Star Trek Enterprise would get better mileage on hydrogren or natural gas.
This whole charade is beyond retarded. The incredible volatility in the stock market tells us that the financial markets are starting to collapse, reflecting economic data from every non-Government source showing that the economy is starting collapse again. My personal view is that more money printing will not arrest this process this time around unless the Fed prints and directly buys stocks. I’m sure Obama would happily sign an Executive Order allowing that to happen.
Of course, if the Government takes that direction, my best advice is for everyone to fold up their tent and start looking for a remote place outside of the U.S. to go live if you want to survive. It’s getting that bad.