Sunday, August 2, 2020

Too Many Clowns In This Circus

While the alt-right and alt-left sell fantasies to their devoted bases of useful circus clowns, the long arc of inconvenient reality closes in for the kill...

Our internet devices are overflowing with streaming content in the golden age of fantasy. If this society devoted even a quarter of its time solving real world problems instead of inventing fantasy neverworlds, we might be getting somewhere. Instead, we are stuck between a dystopian delusion of never-ending failure on the right, and toxic culture warriors re-arranging the deck chairs on the Titanic on the left. Astute observers would note that it was not the Federal government that mandated nationwide mask wearing, it was major corporations. Why? Because that's what the United States is now, a major corporation. An extension of the multinationals that are ensconced in the U.S. where they can manage the Federal government to their sole benefit. While useful idiots on both sides pretend that their party has the solution.

Neither party will seriously face down corporate special interest which has grown exponentially since Citizens United. A ruling that will ultimately be seen as the worst and most corrupt decision made by any kangaroo court in world history. 

"Citizens United v. Federal Election Commission, 558 U.S. 310 (2010), was a landmark decision of the Supreme Court of the United States concerning campaign finance. The Court held that the free speech clause of the First Amendment prohibits the government from restricting independent expenditures for political communications by corporations"

Since when was "free speech" conflated with spending unlimited amounts of money to buy votes? How did the U.S. survive over 200 years without this unimpeded corruption?

Speaking of corporate dominance, this past week Congress grilled Big Tech on their market dominance and potential anti-trust violations. Investors were so concerned at these proceedings that they sky-rocketed Facebook and Apple to new all time highs on Friday, while Amazon rocketed back near all time highs. Post-grilling and post-earnings, their combined market overweight predominance only grew larger. A sign of the times in which every signpost of risk is widely ignored.

On the topic of ignored risk, this week the extended unemployment benefits ended sans new stimulus agreement. Which means that millions of families will now experience a collapse in income. Both sides are blaming each other for this political impasse, however, I suggest it is political suicide for the GOP to collapse GDP on this scale ahead of the election. All based upon fiscal principle - their latest election-rigging talking point. The same party that exploded the deficit and spent Social Security and Medicare contributions on tax cuts for the rich, is now concerned about the national debt. Sadly, it's too late for all of that superficial posturing. The Fed balance sheet is now the sole source of "GDP". And if the dopium isn't flowing to the middle class, the economic sugar high will crash:

“A lot of people don’t have very much in savings,” Stettner says. “Unemployment benefits have helped them pay their bills. But when you start taking that away, we could begin to see the same housing risks that we saw during the Great Recession. People are being forced to move in with their families, or they’re living out of a car.”

Picture a scenario in which millions of families experience a crash in income at the same time as parabolic Tech stocks implode global asset markets. In other words, trickle down Ponzi deflation across all households at the same time. One in which asset values implode while liabilities remain at their inflated level. Would that be reflationary? I suggest not. The REAL rate of interest is set to explode higher. Not lower, as today's Idiocracy constantly suggests. Always looking in the rear view mirror while driving forward. It's fitting that gold went late stage parabolic in the exact same week that the middle class was imploded. Gold fully participated in the global asset sugar bubble and now we are to believe that it will be the sole "safe haven" when stimulus is withdrawn and assets crash. Sure, whatever. What we are witnessing is the endgame for Supply Side Voodoo Economics, also known as profound economic illiteracy. The delusional belief that the middle class can be endlessly imploded to the zero sum benefit of the Casino Class.

This will be a lesson these Ponzi schemers NEVER forget. 

This was the Nasdaq's third lower high in the past month, as the second Covidiot top has been somewhat more durable than the first:

This is the Dow re-test chart.

The Rest of the World imploded late last week, but the overnight dip got bought with both hands in the U.S.

What's new?

Fittingly, the economic implosion trade hit new all time highs this week:

In summary:

"One day after the CEOs of four of the world’s biggest tech companies — Apple, Amazon, Facebook and Alphabet —were peppered with hostile questions about their business practices in a House subcommittee hearing that dragged on for more than five hours, all four companies posted stronger-than-expected June quarter results, driving their stock prices higher.

It was a clean sweep. Four for four."

Depending on how you want to look at it, today’s flurry of strong earnings reports either justifies the interest in the companies expressed by regulators and legislators, or it demonstrates why investors have generally reacted to the added scrutiny by ignoring it and focusing instead on their continued stellar financial performance."

Or, more likely it's just a massive COVIDiot bubble in which Tech-addled investors ignore all risks. Bought and believed by human history's biggest cabal of circus clowns.