The title pretty much says it all, but I want to revisit this subject with some help from the RM gang, with respect to the Fed. & interest rates. Again I don’t think they will attempt a rate hike, but I am now seeing signs of a potentially perverse strategy unfolding, that may entail a rate hike. It is totally a psych job for the uninvolved dumbed down US retail investor, but possibly drawing on an effective sales technique, that I hate to say...I have used before. Again I think the odds are better than 50% that a rate hike is not on the table, but they odds of a hike are greater than they used to be a month ago. In last weeks installment, with a reference to Jim Willie’s finding, that there is reputed to be naked selling of treasuries (thus they don’t exist for delivery) to the tune of possibly 40 billion dollars a day, the Wolf Gray sense of smell picked up on a possible “rate hike” con coming! Any minuscule rate hike in the face of that type of “easy bankster money” is probably meaningless, except the rate hike will be public, and the gigantic easy money train will be hidden from public view (at least as could be understood by the SixPacks). Thus a potential covert public psych job may be in the offing.
More on that later, and now the news leading to the “Funny Money” show:
Talking about a ‘bs/pr' effort check this link out:
Yea everybody jump on board “The Stock Market Bull Shit Train!” An initial $1,000 dollar investment in 2014 could have netted you a billion dollar bottom line in 8.5 short months. Front page of “Yahoo Finance” last week, not Yahoo News, but the more specific “Yahoo Finance News” section. Oh I get it it now, it ain’t 8 months, it is 8.5 that is the key, that extra half month will get the job done every time. I am sure glad Fox Business News got a hold of this formula to save the SixPacks, before the stock market crashes. Wait, a market crash may impede this guy’s formula….oh well moving on
This link was sent to me by a Wolf Pack associate yielding more on the ground proof of a US exodus in a big way, now by Ivy League schools that are expanding eastward. I emailed him back, “I bet they are moving there, because the economic backdrop in the US is so good, it forced them to extend some courtesy to the east by putting up a educational facility there? Yea right. They see the handwriting on the wall.” Just more proof, the west is run by morons, at least as regards the long term business view. Perot was right all along, but just too far ahead of his time to be believable. Wonder how his views would be received at this juncture.
I bet this next link from ZeroHedge will still not dissuade the CNBC bobble heads from chanting “We’re in the Money!”
In the following two links Steve St. Angelo, the brains behind “srsrocco.com”, details the obvious signs of a rapidly declining physical precious metals market. And, even more importantly these links would not pull up at all Monday, 8 am to 5 pm, as his site was having issues. Posted them to myself as noteworthy last week, and in review for this installment on the 7th, the site was inactive. It is Tuesday morning, and the articles are up now, but the charts aren't working. Coincidence, who knows?
News Articles that are Specifically Tied to the Title:
This next headliner should be on each msm news channel, if items of importance were the objective, BUUUTTTT! In truth Putin eliminating the dollar from trade is no surprise to the folks here at RM, but the “ole econ” bench mark holds here, “Do Things Like This Happen During Good Economic Times for the mighty King Dollar?” NOPE!!!
In this next link many will accuse Bill Holter for being “over-the-top”, with a statement like “The Dollar Crash Could be of Biblical Proportion”. Personally I don’t think so. Check out the next audio interview with “SGTreport”
The reason I tend to think Bill could be right, is the dollar’s “home-land” is tied to such high levels of debt, that minor dollar devaluations (devaluations that are a guarantee) would be the equivalent of crashing it (stated in a prior installment). What level of devaluation trips the “red light, danger, danger, overload, button" is anybody’s guess? I ain’t much of a betting man, but I would figure a 25% devaluation from where we stand right now, would create a rash of Ferguson, Missouri’s from sea to shinning sea due to the King Dollar’s new true exposed international weaknesses.
This next headline asks a great question with what appears to be an easy answer….
I feel the answer is, "Yes the stock market is too big to fail, but by default." The basic reason for the default stance is, the retail investor is disappearing (as pointed out in the last installment), leaving primarily the investment firms to defend the market’s “nose bleed highs”. With the repeal of Glass Steagall in the late 90's there are a lot of too big to fail financials (insurance firms, banks, & brokerage firms), as we have already witnesses. So if the vast basket of TBTF financials are the primary market participants, then the market by default is too big to fail. Great article from Zerohedge......
Next up another rate hike perspective, due to the success in the growth of wages…!??? Sooner or later you will have to live with the lies you have told, as in the wages are great or the lies about them are so so wonderful.??? Great link below….
One has to wonder if the lies advertising the “USA’s economically successful recovery”, will give them cover for a classic psychological sales ploy. A testing of the waters, more on that in just a few paragraphs. But, for further rate hike drama check the next link out highlighting last Friday's jobs data.
Again, I still don't think a rate increase will happen. This Jeffrey "Slacker" guy is such a buffoon, but I suppose he is just delivering the diversionary message as he was instructed. But that being said, it is still a theory I think is not out of the realm of possibility for the PPPTB, with regards to "Heck implode it now hike away, before China & the BRICS & Associates mop the floor with us entirely, which could preclude us from successfully (as in not with torches & pitch forks pointed at us) reappearing as saviors of the "paper currency day”….!” That was my theory last week, but this week something else thumped my ears rather hard, thanks to ZeroHedge putting out a real “rate hike head scratcher” over the weekend!
Desperation in the Final Stages of Transition:
Yes the above subtitle is exactly how I see everything I am about to describe, “Desperation”. Desperation that requires the final close of a sales deal that is about to be lost to an outside competitor, but will still cripple the prospective client (we the people) regardless of the chosen path. Been there done that, in my own desperation, except my sale wouldn’t cripple the client! Ironically it would have eventually, and more on that as well in a minute.
In the following long article from ZeroHedge, a Deutsche Bank executive dropped what I feel is an economic bomb shell. The title alone says a “King Dollar Collapse Mouthful”…..
The final two incredibly powerful paragraphs of the above article read:
Only Deutsche takes the answer to its rhetorical question if the Fed is preparing for a "controlled demolition" of risk assets one step forward: realizing that at this point more QE will be self-defeating, the only remaining recourse to avoid what may be another systemic catastrophe would be the one both Friedman and Bernanke hinted at many years ago: the literal paradropping of money to preserve the fiat system for just a few more days (At this point we urge rereading footnote 18 in Ben Bernanke's "Deflation: Making Sure "It" Doesn't Happen Here" speech) While we can only note that the gravity of the above admission by Europe's largest bank can not be exaggerated - for "very serious banks" to say this, something epic must be just over the horizon - we should add: if Deutsche Bank (with its €55 trillion in derivatives) is right and if the Fed refuses to change its posture, exposure to any asset which has counter party risk and/or whose value is a function of faith in central banks, should be effectively wound down. As alluded to above, and also in the last article, could a rate hike be in the offing to go ahead and implode the market? But for reasons of; “retaining as much property as possible, and to then come in as the western banksters who save the economic day???” The above link/article slapped me in the face with the “controlled demolition” phrasing. So much so I read it 3-4 times, as it reminded me of how easy it is to take advantage of another person’s normalcy biases. Something that prior to December 2011, I used effectively many times to close a deal. The only difference, I really thought I was helping the client, the PPPTB are under no illusion of helping anyone but themselves.
First I will layout, what I did in a business context prior to 2011, and then how it parallels and hits me square between the eyes with Deutsche's "controlled demolition" theory mentioned in the above article. My take is a bit off beat from DB’s, and thus deserving of a RM think tank effort.
Prior to getting my clients out of the markets (something I went at furiously) during most of 2012, I used a strategy that played on the biases of the prospect, “Do you believe the world will be here 10 years from now, and do you believe the USA will be at the head of the table?” Sorry folks, but it works even with very astute business owners. This usually was part of a last ditch effort with a lukewarm buyer in a retirement sale scenario.
My prospective clients were conservative, well heeled, disliked government authority, and were hard working business owners under the age of 50 that needed to find a way to put aside far more than allowed with IRS pre-tax rules. They did not want to send up any red flags with regards to participation requirements for full fledged company plans, or the attached red flags that required employee involvement, as the turnover they dealt with was usually too excessive. The answer was usually but not always “variable life insurance”, and these sales were of a more personal nature than a company sponsored SIMPLE IRA, or 401-K plan. Thus I had to become an advisor not just a sales person. The RMer’s punch line to this WG sales story…..
For those that were sitting on the fence, and hard to sell, the typical response was, “I don’t know that is a lot of money, it’s insurance, and it seems risky WG, plus 15 years is a long time!” The last one was the true objection. My ploy that worked 90% of the time, “What would happen to your company if America went down the tubes completely?” Client, “I would go down as well.” Me, “Do you foresee a scenario, where the USA will not be at the head of the table, and thus you be at the top of your game?” Client, “Nope” Me, “Partner you are just investing in "we the people", and something that hasn’t failed for an extended period since the Great Depression. And, like you said for it to fail; you & "we the people" would have to fail. So what do you have to lose, since I can’t see you failing?” Me again, “And besides I will show you a way that you can get this money out without the prying eyes of Uncle Sam wanting more tax money!”
Folks it was a done deal 90% of the time with a simple “The USA and their free markets can never fail” gambit. Cognitive dissonance tied within a thought that says “We never Lose, We are Americans”. That same we never lose cognitive dissonance that yields those faulty thought patterns might just be used beautifully if the PPPTB (paper pushing powers that be) so desire, in a “controlled demolition”. As detailed by the executive from Deutsche Bank (DB).
This article quoting the DB exec. details how QE is now at a diminishing returns status, and with currency devaluation soon to be surrounding the US dollar it would “finally-finally” be akin to admitting an economic policy defeat. Thus the possibility of massive amounts of QE is almost a "lock". Wolf Gray’s take, “Yes but not so fast my friends! Just possibly not until the cognitive dissonance sales ploy is completed in full! Shortly followed with a super banskter "Here I come to save the day...Super Bankster is here with QE today!”
The WG off beat theory:
The average US dollar citizen still believes we are number one in all aspects of life. He is still an easy sales target! Are we possibly going downhill? Yes, but as fast as the other competitors? From a USA sheeple view it is a resounding, “NO!” I can hear the chants of “We’re number one, we’re number one”, in the background. Folks the PPPTB may feel that mindset can withstand a quarter point “temporary rate hike,” but the markets can’t. This they probably already know, just as they know the dollar dump is picking up pace, so maybe a controlled demolition is in order….????
Just a play on that cognitive dissonance, via that we always win attitude. Just raise the rate a quarter point, and then very quickly save the day with massive, but necessary QE. This strategy as opposed to starting out of the gate, with even more massive overt QE would be a potentially unsuccessful SixPack psych job, and a failure to boot in the markets. But, instead, “Oops sorry folks though things in the markets, and the employment world were looking good (real numbers ain’t stopped them from lying before), we appear to have jumped the gun too quick with a rate hike." Nothing would be more “empire of chaos-like” than to do a head fake followed by a dose of needed “money junkie” dollars to save the day. Why? One last stock market ramp up before the final death to squeeze the last fiat dollar out of the masses, and make them that much more vulnerable to a bail in. Could it work? I ain’t the one sitting across from the prospective client this time, so I don’t know. But the people in that seat, the PPPTBer’s, are pretty good and squeezing blood from a turnip. Wolf Gray
Again I don’t foresee a rate hike, as QE is likely, already on the rise in covert ways, and thus will be the end result regardless of rate directions. But if the “We’re number one” cognitive dissonance is strong enough don’t count out a rate hike, as part of a controlled demolition. Another sign, that regardless of the interest rate ploys, it indicates we are at the end of our “central banker trick’s ropes” folks. Desperation, which could very well be indicative of a “controlled demolition”, that awaits us. Any rate increase, if it happens, will be the proverbial “head fake”, before renewed QE, in a save the day mode!
Paper is, and has always been supported by a table or a desk, ironically composed of a typically hard asset, wood. If the hard assets represented by real trade are reaching their final breaking points as illustrated by the velocity of money’s collapse, the flailing trade indices, and a lack of trust that is demonstrated by war machines doing maneuvers all across the world, then how far behind is a final SixPack recognized paper demise? In short, if the hard asset, the table, has it’s legs cut away the paper that sits upon it has no support, thus….Game Over, it floats everywhere. Real business, is represented by the table that supports the paper, and the table is dropping like a rock due to it's broken support legs.
We now have a major banking institution describing a final paper gimmick, in the form of a controlled demolition to possibly fool the fools before the transition leads to, “The Paper End”. It would appear the paper is flying off the undercut table of hard assets, and the paper maestros are trying to funnel it to suit their needs.
Potential Controlled Demolition Strategy:
First off.....this article, with insights from a Deutsche Bank executive, is one of the most powerful articles I ever read. If a “head fake” rate hike materializes, it will be the starting gun for massive QE (massive QE will happen one way or the other). Note it is only a head fake for the western sheeple who are stuck texting messages of “We’re number one, we’re number one, & I am so cool!”, the rest of the world will look past the fake.
Look for the rest of the world, especially the BRICS & Associates, to do what we all should be doing, finalizing the preparations for a coming controlled demolition (they already are in a big way)……in a couple months or less! They, nor we should want to be a part of the west’s controlled demolition. Think it can’t happen, well again think about 4 “fires/bombs” in China in just under 3 weeks, & sprinkle with a pinch of 100 billion a week in US treasury dumps. You get the picture.
Jim Willie has recently said we are in the ninth inning of a King Dollar demise, well Wolf Gray would like to expound on that analogy. This looks to be a one off historical event. With the original headline to this 9 inning demolition, that started decades ago, reading “The Rumble in the Paper Jungle”. Thus the real collapse started 8 innings ago. And, with it being the ninth inning, the deficit facing the home team, team King Dollar, is now insurmountable! It is just waiting the formality of the defeat being written on a piece of fiat paper! All that remains to be seen is the method of a “final delivery notice” to the dumbed-down sheeple! A notice that may be preceded by a sign reading, “All’s well in the USA, we’re number #1, go ahead & jump in!” All of which is preceded by a initial QE catalyst for a market uptrend, that is the precursor to a “controlled demolition!”
5% & 95% Pondering into Negativity with Assumptions:
Let’s assume the AIIB never formed, let’s assume there were no multiple coincidentally ‘fires/bombs’ in China, let’s assume there was no real 100 billion dollar dump of treasuries in a week, and over 500+ billion dumped in the prior 15 months by China…I don’t care whether Putin went into the Ukraine, or is dive bombing Syria……It still don’t make a hill of beans, that would remotely change the course of diddly shit.
Why? Because the media says so! I repeat, and so does the astute Wolf Pack, the media says so! Our media says we are innocent on all counts & #1, but we are still quite clearly being isolated, and we are now a lonely, measly, isolated (though we arrogantly don’t think so) 5% of the world population voice. The outside media, could be lying or telling the truth, it doesn’t matter, because just like our talking heads, the other 95% are probably buying their stories. And, thanks to our bullying rep. it ain’t to hard for the foreigners to believe them. So therefore, it don’t matter what Donald Dump says, or Hitlery, or Jeb, or Rand, or Fox News, or CNBC, or MSNBC, or Rush Dumbaugh, or the Alternative Media says..…we are a piddly, arrogant 5% & their message is to a likely very receptive 95% of the remaining population. Game over regardless.
Whether the messages are backed by lies or not, the numbers still can’t lie whether it be fiat backed or “population/bullying” backed...!!! The only safe, logical way out for US home game players, is to take our fiat medicine, choke on it, & then never let this happen again. BTW I don't take fiat medicine I am allergic to it, I prefer real hard assets as a remedy. Wolf Gray
I have posted both the following music videos before, but to me they seem appropriate at this juncture so I am posting them again:
Credits to the thoughts of: Opie, the Deutsche Bank Exec., Bill Holter, ZeroHedge, & Jim Willie