Wednesday, January 2, 2019

The Turning Point

Sadly, there is little information about the real world available to our derivative world ... the hypersensitive world we live in where morality is a relative value just like any other value. Zero Hedge offers a continuous doom and gloom conspiracy bias as it dwells upon the same old tired themes and warnings and predictions from the same old people with the same old viewpoints.

So with that said, there is very little to write about, until FOFOA comes along and reminds me (as he should us all) that there is an underlying cause for our "state of the world" condition. That is, the international monetary and financial system ... which is still about 62% dollar denominated and not losing ground so steadily or quickly on that front as to accelerate the effects which Zero Hedgers flash about like "END IS NIGH" billboards every couple of minutes or so.

Yes we will have volatility. Yes the everything bubble is popping ... and the efforts of the banking class have less to do with its controlled descent than market participants who front run volatility peaks and dips on the trendline downward. But as with "deliberate incidentals" effects are much more complex than the root cause:
Sundance understands things well from a certain starting point, but what he's missing is the most fundamental underlying cause. For example, he is right that Wall Street and Main Street are disconnected. What's good for Wall Street is not good for Main Street, and (that) one is not a reflection of the other. Wall Street is rather a reflection of the $IMFS, which is the use of dollars and US assets as global savings and monetary reserves, which overvalues the dollar for imports, and therefore sends manufacturing abroad. That last part is the fundamental underlying cause that he's missing. 
To end the bad stuff, you simply take away the cause. You take away the $IMFS. And you do that by ending the use of dollars and US assets as global savings and monetary reserves, which will collapse the dollar's overvaluation and naturally bring manufacturing back to the US. 
Interestingly, if you really think about it, the things we're doing (deliberate) are likely to help that process along. So, even if you don't know the primary cause, if you purposely restrict or reverse the primary effects thinking they are themselves the cause, you may be unknowingly undermining the already-crumbling real foundation (incidental). 
It is a fools errand (and there are fools-a-plenty) to try and predict the true "turning point" in the global dollar system. That is because it has grown into a system unlike any before it, in a time unlike any before it. And yet ... that can be said of each new system (as time inexorably reveals) in each new era.

But when it does turn (as I would define it) I do believe there will be a systemic intervention. If there is none, the potential hyperinflation would be massive and that would create the monster crash which doom and gloomers seem all to happy to rail about ... until it comes.

So while I could care less about the dark intrigue of the LBMA and it's paper sideshow, the second and third of the three articles reposted by FOFOA have more to say about the thoughts of Roacheforque than anything else I could write about, without unduly repeating myself (which I feel I have done a lot lately). They are "fruitfully" presented to your right - with my full endorsement.

Happy 2019!

No comments:

Post a Comment