The Entire System Is Fake

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.

11 thoughts on “The Entire System Is Fake

    1. Yes! That’s exactly right. Anyone buying into those those streams is getting the best bargain in
      investing history. Of course, there’s a problem when GLEN hits the wall and stops its mining operations LOL.

      A great bargain for the buyer means the seller is desperate.

  1. I thought the Fed was already buying stocks via futures contracts. Isn’t this the definition of the Fed Put?

    What am I missing Dave? It seems to the casual observer somebody is trying their best to rescue stocks at 3:30 every day and slam gold daily and suppress when news is gold positive.

    Sadly, not sure there is any safe place in the world today outside of middle of nowhere Alaska maybe. Surviving there requires a skillset that takes decades to develop.

  2. Dave – File under the Bezos file.
    The photo of B unveiling the rocket plant is great – maybe someone could put this guy in the capsule of one of them things and fire it off into space – not in orbit – into SPACE.

    The fact that many of these billionaire bozos are riding this wave is utterly amazing to me – many don’t PRODUCE anything – Zuckerberg – the dude from Uber – 6 bil forming an app that is nothing more than a glorified taxicab company – come on!!!

  3. Still on “The Road”? Everything will be fine.

    Another QE would mean another last flash in the pan – the same we have seen in Japan – and then all the way down to the ground. With a populace as massively armed as the US society this could get very interesting.

    I have to watch “The Road” movie again although it’s a softened version of the book. J’aime le avant-goût dans ma bouche!

  4. Dave,

    I agree it’s a bit tiring to see the frequent price slams, but we should be thanking them for making a valuable resource cheaper for us to buy. If our time horizons are longer than than a shortsighted bankster, then it shouldn’t matter that the price is not allowed to float at this moment. When price finally explodes, you will be wishing you had backed up the truck even more. In any case, it’s nice that the Apocalypse has been staved off for one more day. You gotta enjoy your life when you still have the chance.

  5. I just read something on one of the message boards I frequent. I found it amusing because the guy is either a plant, or he’s completely brainwashed:

    From a fundamental perspective, I see little in the way of overvaluation in the stock market, especially if earnings manage to weather the Asian storm over the coming months. This is not 1999. Also, our banking system is adequately capitalized to weather a sustained credit hit, unlike 2008 when it was on the hook for hundreds of billions in toxic derivatives. The only fundamental difference I see today vs. the last two market hits is a Federal Reserve that has pretty much expended every last bullet in its stimulus gun. With rates already at 0, there is little room for Fed accommodation should markets spiral out of control again — which is an incredibly low probability from my vantage. Turmoil is a pure outlier scenario, given the economic backdrop of this country. It’s hardly something I wish for, and certainly not something I expect to come to fruition. Those still fighting the last collapse need to move on and embrace this new reality.

    Either he gets his ass handed to him, or he makes off like a bandit.

  6. A buddy of mine and I were betting the end of quarter window dressing would be geared up for today and ta-da, its truly MAGIC! One has to wonder how much money as been created to orchestrate all the market magic over the past 8 years (that’s probably not covering it time wise). I have heard there was $23 Billion used on Black Monday alone. As there seems to never be any accounting for all the magic money such as the $16 TRILLION I hear we floated Europe after the 08 crash. So where does it end? Will the markets ever be able to account for all the magic money that has been printed and keystroked into existence. Will the U.S. and others ever be held to account? Will every business crash just be papered over and the markets re-jiggered for ever?
    It is increasingly apparent to me that the situation is dire enough that TPTB has every intention to extend and pretend at whatever level of corruption is required. They are all in and NOTHING will stand in their way to maintain the status quo….if the Glencore situation takes $15 Billion….done, $100 Billion DONE……no matter. How does a corrupt system with no goal other than maintaining its stranglehold on power get taken down by the markets…….they are the freaking market. I hate to sound so jaundiced but like you I have watched the shit hit the fan so many times in the last 7 years only to see TPTB reawaken their monster. So that nothing surprises me anymore on the constant maceration of the truth and the markets. While I do not look forward to the aftermath the current purgatory is torture also.

  7. “…at that time the economy of the United States will be going down and the next boat people will be Americans leaving America looking for work abroad.”

    Jacques Attali in his 1990 book “Millennium: Winners and Losers in the Coming World Order”

    “In politics, nothing happens by accident. If it happened, you can bet it was planned that way.”

    U.S. President Franklin D. Roosevelt

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