Friday, July 8, 2016

the worst is yet to come


"There's a storm coming, Mr. Wayne. You and your friends better batten down the hatches, because when it hits...you're all gonna wonder how you ever thought you could live so large... and leave so little for the rest of us."



my posts recently are becoming increasingly political but that is just because the markets are also being driven more by political factors instead of commerce & economics. Civil disobedience, anarchy and uprising of the common man is the global trend that is rapidly sweeping across the world. Let's take a look at the ultra macro picture ...

Why?
As Max Keiser beautifully explains it ... the evil central bankers print billions and trillions of dollars and give it to the evil retail banks by re-purchasing their toxic assets accumulated from previous crimes, who in turn lend it to the richest 1% population for free (ZIRP zero interest rate policy). This free money is not for the common man since they don't meet the credit score requirements that are designed to favor only the top 1%. The top 1% are supposed to use this money to create industry, jobs and commerce that will provide employment for the common man but instead they use the free money to invest it in speculative assets like property, derivatives and equity which in turn benefits whom? yes you guessed it right .. the top 1% again. It makes them richer because only the richest can invest in property in London, San Francisco, and Sydney and exotic derivatives cooked up by Goldman Sachs, JP Morgan, Deutsche Banks of the world. This leads to higher unemployment (money meant for employment generation actually went in property & equity speculation by the top 1%), more and more income inequality, rich & poor divide. However this is not the worst part. The worst is yet to come.

The slavery of the common man
We discussed how the rich gets richer in the previous para. That should not really matter the common man because they are used to living a common life. But here is what happens, because the rich get money for free and invest in property, the property rates go up making the rich richer but at the same time making it completely un-affordable for the common man. A roof over the head is a basic need even for the common man so he has to work, work hard, work multiple jobs, work multiple shifts, save every penny so that he can buy a house at prices set by the speculative activity of the richest 1%. No amount of earning is enough and no amount of saving is enough because the divide between the rich and the poor is like the distance between the moon and earth. So the common man takes a debt to fulfill his dream and then spends the rest of his life re-paying the debt by working, working hard, working multiple jobs and working multiple shifts, grows old and dies in debt trying to repay it.  Also because the common man is doing multiple jobs and earning salary, he has to pay taxes whereas the richest 1% have free debt on their books and hence not liable to pay any taxes. So the common man spends his life working like a slave, paying taxes and repaying debt whereas the richest just chill out and get richer. However this is not the worst part. The worst is yet to come.

The rotting social structure
The lifelong struggle of the common man and his increasing impoverishment, constant struggle, unemployment, and failures eventually catches up with him. The common man desires to be among the top 1% but the distance he has to cover to reach there is so long and the system in which he has to take this journey is complete rigged against him. This frustrates him, defeats his goodness. He finally understands that he is fighting a battle that is designed to make him loose, designed by the richest 1%, by the evil bankers, the politicians, the establishment. It never was a fair  battle. The game is rigged. However this is not the worst part. The worst is yet to come.

Uprising and civil disobedience
David Cameron told them not to vote in favor of brexit, Obama warned them not to vote in favor of brexit, Merkel told them that EU will alienate them if they vote for brexit, evil bankers told them brexit will have dire consequences on their day to day life, media told them UK will go into recession if brexit wins, but what did the common man do?  They went out and voted in favor of brexit. This vote was not about staying in or leaving EU. It was an anti-establishment vote. They will do exactly opposite of what they are being asked to do, no matter what the consequence. In a poetic justice what happens post brexit? property prices get impacted, property funds crash and freeze, evil bank stocks crash, property stocks crash. Basically the top 1% got slapped in their face and now you know who had to loose if brexit won, it was not the common man, their common life goes on ... it is the top 1% that got hit due to brexit .. and they got hit hard.

More and more people are coming out on the streets and displaying their anger more and more aggressively. Look at what is happening in Greece, Italy, look how Trump is now a republican presidential candidate in America, look at the rise of bitcoin and other block chain technology based currency a clear trend signalling lack of faith in paper currency printed by the central banks. Imagine if people don't believe in the government backed currency of their countries then what is left? No, it is not about black vs white, republicans vs democrats, young vs old, educated vs uneducated, male vs female vs transgender, gay vs straight, religious vs atheist, one religion vs another, law abiding citizens vs terrorists, as the government funded media would want you to believe. Put it simply it is the richest 1% vs the remaining 99% of the world. However this is not the worst part. The worst is yet to come.



Anarchy and war
The 99% are brainwashed by the government funded media that the reason for his poor and miserable life is because of black vs white, republicans vs democrats, young vs old, educated vs uneducated, male vs female vs transgender, gay vs straight, religious vs atheist, one religion vs another, law abiding citizens vs terrorists and this 99% of the world population is getting frustrated. They are confused, angry, really angry and this is coming out in random acts of violence, terrorism in the name of religion, gender, color, political beliefs leading to exponentially increasing  incidents of shootouts, suicide bombings, destruction, wars and more terrorism. None of this would thrive in a world of prosperity and equality but the top 1% are full of greed and they want more wealth and more power to retain that wealth and guard against the remaining 99%. They understand it is good to be in the top 1% of the richest list but not good if you are standing up against a mob of angry, confused 99% in a world of anarchy, so it is better to keep this 99% busy fighting among themselves leading to increasing lawlessness and militarization of law and order to enforce the law.
But beware the top 1% of the world .. anarchy is coming .. a war is brewing not at the borders far away .. it is brewing right in the middle of where you live .. and this is not even the worst part. The worst is yet to come ...

So what does all this mean for the stock markets?
In the stock markets the larger trend is no longer bullish or bearish .. it is volatility, it is that of uprising, anarchy and war .. as politics and economics fuse together in a dangerous mix .. the worst is yet to come, but it is coming soon .. be ready ..


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