Friday, July 9, 2021

Super Idiocracy. Super Crash

In this society, asset hyper inflation is widely embraced, however if wages rise a tiny amount, it's the end of the world. It's what any terminal old age home in hardcore self-destruct mode would believe...

The COVID pandemic achieved the full virtualization of the economy. Working from home and shopping from home achieved mainstream adoption. Cloud Tech stocks skyrocketed. We now have a virtual economy consisting of delivery couriers drop shipping made in China junk to yuppy doorsteps. Fully bypassing the real economy. However when Biden got elected and the vaccine was distributed, the entire script changed. Now we have the greatest recovery in history and all of the deflationary factors that were accelerated by the pandemic have been long forgotten. From greatest virtual economy to greatest real economy in one year. 

Of all of the various pump and dump schemes from this era, cyclical reflation is by far the largest and most widely believed delusion. It's the post-pandemic super economy. This society is in mass denial over Japanification and the fact that there are now extreme levels of excess capital and excess capacity, both of which are deflationary. However, it's this excess capital that keeps propagating these lies and myths as it rotates from one global pump and dump scheme to the next in search of zero sum gains. 

Fittingly, when the GOP governors all decided to rescind unemployment benefits, all of the inflation trades began imploding. Once again, these idiots are learning the hard way that asset inflation is ALWAYS transitory. 

Even at this late stage their primary concern is STILL inflation. Why? Because per the rules of Japanification an aging society has a strong preference for return on capital at the expense of return on labour:

"Inflation’s silver lining: your retirement funds will be worth nothing, but you will be paid more after being forced to go back to work"

According to these assholes rising wages are the greatest risk we face. Notice there is absolutely zero concern for asset hyper-inflation. Which happens to be by far the biggest risk that retirement funds now face. But you can't tell that to an Idiocracy, because they know everything. Although I notice that it's dawning on them, that they got screwed again by their trusted psychopaths.

Today's pundits are telling the sheeple that this selloff is a buying opportunity. The question on the table is given the magnitude of recent inflation hysteria, how many more fools are left to buy?

This week, the market imploded twice overnight but the dip got bought with both hands in the U.S. As usual, there is absolutely no concern for what is happening in the rest of the world.

Amid all of this rampant denial, delusion, and mostly subscription based disinformation, it's also ironic that these dunces are now attempting to rotate BACK to the Tech bubble that imploded in February.

This week we got another Hindenburg Omen on the Nasdaq. Which indicates that the bifurcation in the overall market has now spread to the Nasdaq itself.

In summary, every dunce you ever met is betting this will have a happy ending.

Position accordingly.