Here We Go.

Pay attention - signs of economic woe are mounting and widely unreported. If you have been reading this blog for a while you are pretty well versed in fundamental economic concepts and financial manipulation so I won't bother with the background information for this opinion piece.

We have missed the last 6 equity market corrections because of Fed currency printing. They never happened, artificially postponed by all the Q.E's. Last week I said watch the markets, I know the market will react to our political lack of leadership while the world falls apart but more importantly I expect Wall Street will start to see reality and the bulls will turn bears after the next full moon. I am kidding about the full moon but you can see how timid the market has become in the last few days and in the coming weeks the volatility will start to swing. Like a cat slowly creeping in on it's pray, someday soon the traders will see that they have been stalking a mirage. The really smart guys are starting to say the same things, they can back it up with research and financial models while an old redneck like me comes at it from common sense. Like a female member of the Clinton family once said " what difference does it make at this point ". I think we are getting a pretty good idea of how this will play out.

The Swiss and the Chinese have made a deal to trade in their own currencies adding to the list of other countries circumventing the Dollar. The Euro Zone countries have been playing with negative interest rates while our Central Bank has been experimenting with reverse repo rates to raise interest rates in a unconventional way ( that's a nice way of saying unreported ) and New Zealand has raised it's interest rates by 25 basis points. The Queen of negative interest rates is trying to raise interest rates, what's up with that ? Could she have figured out that printing currency and lowering interest rates at the same time are counter productive or is there an underlying weakness in the dollar from 4 trillion in funny money in addition to another trillion in unreported treasury purchases through Belgium ( that's what I call the tapper that wasn't ). How does the Feds balance sheet look now ?

Bottom line is consumer confidence is a big deal in a market driven economy and after 6 years of a president that didn't exist until he was elected the world has figured it out and him out. He will never do the right thing, he will never lead and anything he says is subject to change with no prior notice. No backbone leads to lack of confidence and no confidence in the Greatest Nation on Earth means the whole world falls apart and the U.S. takes an economic bath. I really hope you are paying attention because the warning signs are flashing, the train is leaving the station and I hope you are on board. The next train isn't scheduled until 2020.