Disinformation is rampant, because monetizing idiots is the last business model. No matter how ludicrous asset prices become this perpetual growth model will always demand "more". And therefore the false narratives must become more ludicrous in lockstep. Fortunately, the collapse in average IQ is front-running these ever-more asinine narratives we are sold...
Today's ubiquitous belief is that central banks control inflation and deflation. Unfortunately, nothing could be further from the truth. What they control is asset inflation. Even at peak asset prices, they have no control over global deflation. When history's largest asset bubble explodes, even the biggest moron will figure it out. Far too late unfortunately:
This society is addicted to deflation because it's the secret sauce that boosts asset prices at the expense of the economy and wages. Which is why every time prices rise a small amount the deflation mongers cry "inflation", despite the fact that the only inflation is feeding back into the economy via the risk asset bubble itself.
Heading into the Memorial Day long weekend and the unofficial start to summer, both volume and volatility have collapsed. Which is why speculators are loading up on risk and otherwise manipulating markets with impunity.
Case in point, we are to believe that movie theaters which have been in decline for years were somehow rescued by the pandemic. Everyone get off of Netflix and go pay $30 to see a movie. Popcorn and sugar water are nominal commodities until you go to the theater where they command a 100x profit margin.
Over in Tech stonk land here we see the Ark ETF is back-testing the 200 dma while the Nasdaq is the most overbought it's been since the February top:
But what could go wrong amid record stock margin?
According to this week's AAII retail investor survey, bears remain in hibernation:
Outside the U.S. we see that the Nikkei is rolling over hard. So far, the Nikkei timed three for three global RISK OFF events.
We are to presume this time will be different:
The 2021 Crypto Conference "Consensus" ended today and Bitcoin is making what appears to be a right shoulder on the weekly ahead of the long weekend:
Crashed Tech stonks, crashed cryptos, maximum margin leverage, extreme complacency, which just leaves the record overbought end of cycle reflation trade:
In summary, I call today's "inflation" Ponzi inflation. Which is what happens when a bunch of assholes bid up their own assets and then begin to fear that central banks will end their party early because someone gets paid a living wage.
There are far too many assholes running amok and they need to discover the joys of living in subsistence.
