Fake News. Fake Economic Data. Fake Markets. Fake Money.
You can't make this stuff up... oh wait you can.
The following is entirely opinion and fake news.
Looking at the Dow Industrial Average Index this morning, I wasn't surprised to see the current rising wedge still unbroken, despite the constant stream of layoffs and bankruptcies in the US and elsewhere, and despite the Fed indicating that the hyper-inflation of the financial economy will be getting a dose of reality soon. It doesn't matter; wall street is addicted, and the fund managers have their hands tied. There is literally nowhere else to go but continue to ride on the Titanic economy and hope no icebergs come along.
We are currently living in a time of financial mania. People on the ground and small/medium businesses are quite aware of reality, but the banks, governments and large corporations are drowning in liquidity and cannot see how dry and parched the rest of the world is.
Shadowstats.com paints a pretty grim picture of just how much the establishment is covering up their addiction to free money, created at the expense of the rest of us. The News eagerly spews out verbal diarrhea at us from both sides of the spectrum, while government economists drink their own urine to convince us that its drinkable. CPI is so fake at this point that someone ignorant of the ongoing fakery can still look at the numbers and know something doesn't seem right.
Actual employment has not reached the levels they were at 12 years ago, yet the unemployment numbers being given to us make everything look like roses.
CPI is being artificially pushed down so that the Central banks can say "oh look, inflation is below our target, guess we better print more money to get that CPI back up." This constant changing of how the consumer price index is measured means that inflation is whatever the central banks say it is. Of course, if you're getting a pension or some other assistance, you're hosed because you're income is not increasing at the real rate of inflation, but who cares right?
The favorite line of some people today is "but who's going to pay for it?" Guess what, nobody is... yet.
The point of this post is to reiterate just how fake government and central bank numbers are. They are blatantly lying to the public, and both they and the public know the economic data is fake, but no one is in any position to stop it or fight it. The best that we can do collectively is ride the wave, and that's what we're doing right now.
But all of this does have an end, and when the ride stops there will be two classes of people remaining: Those who have debt and those who do not. It's a tough call, because you can't really do much these days without tapping into credit, but given that 90% of businesses are destined to failure before they even get going, that means that a lot of people will be left without a chair to sit on when the music stops.
Credit is like a drug. It's addicting, and people become mentally dependent on it. But the pendulum is hovering at the end of its current swing. I can feel it. Can you? It's like everything financial is hovering, frozen in the air, and we're all just waiting for gravity to kick back in and the pendulum to rush back down in its arc.
Once this happens, physical wealth will once more be king. I mean, it technically is and always has been, but you wouldn't know that by talking to people on the street. Read a book about the 1920's, and you'll see a lot of parallels to our current time. Joe Nobodies everywhere are market experts and geniuses, believing that they have figured out how to game the markets, when in reality they couldn't possibly lose in a bull market, and the bull market has gone on for so long that it's all they know.
Don't be fooled. You're not a genius, and your rising investments are only gaining in price, and not value. Same with small business owners who just started up within the past couple of years. You're not a business genius, you're simply riding a wave of financial inflation. The real value always was in physical wealth. Property, metals, art, collectibles, etc. Cryptocurrencies are a digital mimicry of physical wealth, and so you can add them to the mix, but they're also speculative.
I'll stop this rant by saying that the financial markets, by all rights, should be plummeting right now as I am typing this. They are not plummeting, at least not in the US sectors, and so while the artificial sun is still shining it's imperative that all of us continue to make hay. The central banks are hellbent on killing the old system, don't get stuck in that system when it stops.
Thanks for stopping by.
