Following this morning's disastrous jobs report, Wall St is already beginning to rally stocks now. Stock futures just went green! What a twisted world, in which central bank shenanigans have so distorted markets that such awful news would lead to a rally, despite the poor economic showing and weak performance.
Friday, February 7, 2014
Stocks Begin to Rally
Huge Jobs Miss
Stock futures gyrating wildly 1 hr before market open. US jobs report was released a few minutes ago.
This was an IMMENSE miss from expectations. 180,000 jobs were expected. We got just 113,000. That is a VERY BIG MISS! Wall St was expecting a relatively strong report due to unusually good weather during the reporting week.
This
is such a disappointment that it wouldn't surprise me if Wall St
rallies stocks on the expectation that now, the Fed will back off its
debt purchase taper, and INCREASE the debt monetization instead.
Anything could happen! It could be a volatile day!
Five Years of QE
Central
bank "unprecedented measures" around the world have ultimately been
nothing than simple debt monetization schemes that ultimately bring
inflation, and often hyperinflation and depression that impoverishing
and destroys the working class in countries around the world. Those are
called "consequences".
This article explores when that might
occur. It's likely to occur first in Japan. Japan's government doubled
down this week on its own debt roulette, causing the US stock market to
leap 180+ points yesterday, based solely upon Japan's central bank
money-printing bet.
It was five years ago this month that the
Fed began its own debt monetization scheme, called quantitative easing
(QE). Bubbles Bernanke himself referred to this scheme using the phrase
"unprecedented measures". But if you think about it, "unprecedented"
also means "untested". It means they don't know the long-term
consequences. But they should. History shows us again and again the
catastrophic consequences of monetizing debt.
Thursday, February 6, 2014
Here's Why Stocks Are Exploding Higher Today
The Japanese government this morning has doubled down on it's own QE. It has announced that it will monetize even MORE debt.
Investors worldwide are borrowing cheap Japanese Yen at suppressed interest rates, exchanging those rapidly-devaluing yen into dollars, and dumping them into the US stock market! The USDJPY (Dollar/Yen) currency cross is exploding higher, with much of that money being funneled into US stocks. This is the result:
Central bankers are desperate to keep the bubble blowing, and they are willing to do whatever it takes, even though it will eventually cause ruination. This is not happening because stocks are a good value. It is happening solely based on complicity by central bankers to keep the illusion going!
Stocks Leap Reflexively
After the Dow lost 1200 points in the first weeks of 2014, Wall St traders, who are now hopelessly addicted to endless stimulus and easy money, are reflexively buying stocks on a slow news day.
Tuesday, February 4, 2014
Wall St's Reflex to Buy, Dismiss Risk
Today, we saw another manifestation of Wall St reflexive "buy the dip" mentality. Stocks had been up most of the night, and throughout the trading day. Only within the past few minutes have we begun to see a sell-off into the close. This is a screen capture of the market as we approach the close, now less than 30 minutes away.
Ultimately, this dismissiveness of risk will only exacerbate the very risks that are being spontaneously and habitually disregarded. It will only amplify the downside risks when the ineluctable day of reckoning arrives and the music stops, causing all Wall St participants to run in a panic for the few chairs left.
In the time that it took my to dictate the above, this is the reaction of an impulsively bullish response to risk perceived just within the past 24 hours. It is contemptuously and haughtily swept aside in a paroxysm of mindlessly cavalier buying.
Wall St has a worship reflex toward central bankers that borders on granting godship status. But ultimately, it will fail again because in the end, Babylon the Great shall fall. It is unavoidable! It is as certain as that the sun will rise tomorrow!
Monday, February 3, 2014
Broad Weakness In ISM Data
Dow closed down 326 points today. Economic data shows broad weakness, and a shift toward recession, even as Fed policy is already at zero interest rates. What now?
ISM Disappoints, Gap Widens Between Expectations and Reality
The Global Debt Monster
"We've
created a global debt monster that's now so big and so crucial to the
workings of the financial system and economy that defaults have been
increasingly minimised by uber aggressive policy responses. It’s
arguably too late to change course now without huge consequences... It’s
been many, many years since free markets decided the fate of debt
markets and bail-outs have generally had to get bigger and bigger." Jim
Reid, head market analyst at Deutsche Bank (Germany's largest bank)
Isn't
he telling us that central bankers have now painted us into a "debt
monster" corner from which there is no escape? I'm pretty sure that's
what he's saying. But he then also admits that they will have no choice
but to continue, continuing and even increasing the bailouts without
end. Unbelievable!
Amazingly, it's even worse in China:
"China's Services PMI printed at its lowest on record and its biggest 3 month slide in 16 months."