Monday, January 18, 2016

The deliberate destruction of global financial markets

This week, CNBC's Art Cashin, who has been a trader on the NYSE for some sixty years, has declared that this is "what you get before a crisis".  Such was his response when asked what the mood was on Wall Street.  He also noted that investors seem to feel "concerning and frustrated", and added that this seldom leads to anything other than a sell-off.
He goes on to say that the Fed made a "policy error" in raising interest rates last December.  This idea will be floated more and more until it becomes accepted as fact.  That way, more people will believe in the Fed's unbelievable perceived "incompetence", while less will perceive their real intentions of plundering the population.
Policy error, or prime objective?  If Fed Chairman Janet Yellen intended to prick the financial bubble that the Fed has blown, she could have done no better than this 25 basis-point rate hike in December 2015.  This has been evidenced by the substantial financial turmoil around the globe we have witnessed over the past thirty days or so.  Even mainstream banker mouthpieces such as CNBC have finally begun to admit what sites such as or have been saying for years upon years.  Namely, that economic fundamentals have been deteriorating for some time, and the recent turmoil did not come out of nowhere.  The central banks created a tinder box of debt that encapsulates the entire globe, and now they have decided to light the fuse.  All we have seen thus far can be analogized to a fireworks show: these first few weeks of 2016 have only been the warm up, the pre-show before the main event.  What follows will be far worse than anything this world has ever seen.  Even CNBC admits "A recession worse than 2008 is coming".   Of course, they blame it all on China's "megalomaniac communist government", ignoring the fact that Western governments and central banks do all the same things.
There you have an example of framing - leaving something out of the picture in order to create a skewed view of reality.  Expect to see a lot of more this type of rhetoric in the coming months, as media struggles to maintain their narratives in order to sway public opinion and consumer sentiment.
This time will be different, in that the masses more and more refuse to drink the kool-aid.  And when everything they have ever known begins to fall apart around long last, there will be no more kool-aid left to consume.  Only the bitter cold pill of reality to swallow.

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