None Dare Call It Desperation
Like living in quiet desperation, holding on with our fingertips, scared we are losing our grip on the slippery mountain, on reality, on what little control we possess… central banks and governments are desperate.
Some are doing well, unless they worry Jeffery Epstein will testify. But for many, it’s desperation, insecurity and debts.
Central bankers, governments and stock markets are worried, even desperate.
Their “feel good” stories about fiat currencies, stocks always rise, bonds represent good value, the economy is doing great, the elite manage well, Wall Street cares about “the little guy,” deficits don’t matter, debts can increase forever… are wearing thin. The truth will surface.
2019 looks like an end to the economic cycle, the beginning of the end of decades of fiscal and monetary nonsense, an uptick in fear and desperation.
But since governments and bankers created the fiscal and monetary problems, it is likely they’ll generate different nonsense,
but not return to the sanity of honest money, accountability, and the rule of law.
STOCK MARKET DESPERATION:
The NASDAQ 100 reached an all-time high on July 26, 2019.
The DOW hit an all-time high on July 16, 2019. This has been an impressive run, levitated by central bank liquidity and corporate stock buy backs.
The Japanese Nikkei 225 topped on October 2, 2018.
Dow Transports hit their high on September 14, 2018 and have NOT confirmed the new DOW high. Problem!
The Russell 2000 hit its high on August 31, 2018. Broad markets are not confirming new highs in the Dow, Nasdaq 100 or the S&P 500 Index.
German DAX peaked on January 23, 2018.
Shanghai Composite hit its high on June 12, 2015.
The U. S. stock markets are “running on fumes.” Perhaps the-powers-that-be can, once again, levitate a few indexes to higher levels, but most indexes and individual stocks hit their highs long ago. Result: end-of-cycle desperation, “happy talk,” distractions, and rate cuts by The Fed.
“There is no history, none, that supports stock market capitalization's above 145% of GDP for an extended period of time. None.
“There is also no history, none, that suggests unemployment can stay this low for an extended period of time. None.
“And there certainly is no history [that] suggests that BOTH can be maintained for an extended period to time concurrently.”
BOND MARKET DESPERATION:
The entire Swiss yield curve,
out to 50 years
, shows negative yield.
The entire German yield curve dropped below zero for the first time.
Over $14 trillion in sovereign debt “pays” negative interest. It costs you to loan capital to insolvent sovereign governments—for 30 to 50 years—and they guarantee to repay you with depreciated currency units worth less than when you sunk your capital into the black hole of government finance. Craziness.
Insanity or desperation… or front running the bond market assuming rates will move more negative in bankers' desperate quest for stimulus. This sounds like desperation, fear, and misguided hope driving bizarre decisions in a flawed system. Some would claim our governments and central banks know what they are doing. Others disagree.