Magic Acts or Mass Hypnosis and Shared Delusions

[kahuna1]

The Greatest Illusion Ever

Faced with a total destruction of your economy and way of life what would you do ? Anything is the answer.

Whilst US Fed chiefs claimed to have missed the GFC, a team one which is there to prevent rapid falls in asset prices has been around for years in the USA.

Similar teams in different countries have also been there to protect their nations and citizens interests. Hong Kong during the Asian Financial crisis purchased massive amounts of shares to support their markets in troubled times. It was the correct move then, it has been the correct move of many nations over the centuries !!! Yes centuries to protect their citizens interests and as such nothing new, or conspiracy at all.

At times, drastic measures need to be taken.

In 2010 when questioned US fed chiefs and the incoming ones claimed to have no perception of the upcoming GFC or its causes. This is contradicted totally by the fact, the US team called the plunge protection team was dormant for many years, it had its first meeting in the Oval Office in January 2008, barely before the US markets had started to fall and they still are in operation in 2013.

Here is an article about the first meeting

http://www.telegraph.co.uk/finance/comment...ction-Team.html

And here is something about more recent meetings and a lot has been removed, Dr Pippa Malgrem sat on all meetings up till 2013.

http://forums.benswann.com/showthread.php?...le#.UrTGZCcUvfU

So nothing new, the market is NOT as free as we thought and the music has continued until 2013. It is a dirty float and again not too much a surprise.

Governments roles are to protect their economy, their markets and their citizens.

I was going to produce one massive paper but it became too long so I will split it into bite sizes and actually start it with a preface you will not believe and then see if you do at the end.

First paper just an associated one was A Nation on Food Stamps and it is at the end of this first part.

Wordy and long, it Has two key points.

One is that QE by the US fed give US banks a totally unfair advantage vs banks globally. It makes them appear to have more liquidity, appears to make them have more capital. Has removed the need for them to raise capital via stuffing them with liquidity.

Second is that it has stuffed them with ultra cheap funding, removed the need to raise capital, purchased low liquidity bonds off them all adding to profits and at a minimum the banks in the USA have been given, handed profits of 150-300 billion each year post 2008 !!

This was the plan, this was the idea. Its increased earnings on this subset of the whole of the US market by 50% .

It was intended, but it WILL END.

Both are an illusion.

Early 2008

Imagine a nightmare at your fingertips.

A credit market in total collapse a potential disaster worse than 1929-32.

What would you do ? As a nation ?

Anything, is the answer.

Extraordinary measures were needed then. The only way to avert disaster was to provide liquidity and the other measure quite clearly stated was to re inflate asset prices.

It did not matter that asset prices were 2-3 times what they should have been in 2007. It seems that we are back there it doesn't matter in 2013.

So what tools can we use ?

Any. From changing perceptions via economic numbers, to QE which stuffed the crucial financial system and banks with liquidity and cash and then the illusion of profits, not quite an illusion but things called super profits created by an action which is artificial and eventually will go away.

What else ? Anything and I mean anything.

It was needed to stop the 2009 lows, the world did go to the total brink of disaster. Funds stopped flowing and asset prices tumbled, bond were becoming worhtless and this needed to be stopped.

There was a very real and crucial need for these actions in 2009 and 2010, less so 2011 and 2012-13 its got nothing to do with any crisis. It has become like a drug. US equities are 60% higher than then. US feds plan to stimulate the economy via re inflating asset prices was not working late 2012, so the doubled the efforts and purchased 85 billion bonds each month late 2012 till today. It actually blew up in their face. Undaunted they continue.

It is again the role of the government and central bank to take are of the interests of its citizens.

The paper “A Nation on Food stamps” actually questions the interest that are being served.

What at the end of these series of posts will leave you wondering about reality vs perception.

What is real, what is not real. There is out of the 2,250- billion GROSS profits in 2013 of the USA corporate side a question mark over 150 billion in the banking sector. US and UK banks vs EU or Austrlaian have been given a green light and hand up via their central banks both in liquidity, profits and capital raising measures which is unprecendented in modern times.

It has destroyed the US Fed reserve which has just lost 300 billion. Action and effect !! There is a price to pay, In investment markets NOT always equal to the action.

If I was to say of the 2,250- total corporate profits in the USA and the 1,850- Net profit after tax in 2013 the real and actual number is below 1,300- NPAT or 33% lower you may think I am mad.

I am mad in one sense of the word, not in the other. The USA faced with total collapse took extraordinary measures and everything was and is on the table. Economic releases, if you believe US unemployment is 6.8% with 30 million more on food stamps since 2002 vs 2013, and 11 million, soon to be 12 million removed from the employment numbers post 2008, you may as well stop reading.

These measures have taken a toll on both the central bank, the governments finances in tatters and like most price-fixing schemes, because that is what it is, price fixing, they eventually come to an end.

If you throw an apple up in the air, gravity takes hold and eventually it falls. What the last 5 years has seen has been unprecedented intervention by governments and central banks, not in the EU or Australia but UK and USA to alter your perceptions and investing habits. Long term it will be for naught.




I will just post the illusions and see if you can spot the magicians tricks ?

 

[kahuna1]

Was going to post manually,

Found charts wouldn't come out .... so in PDF

ACT ONE ...

With the PDF on Nation of Food Stamps, that was part of the prelude.

15% of NPAT seems to have been taken away from the US markets.

 

[kahuna1]

Act 1 Scene 2

 

[kahuna1]

Hi,

Sorry Brief intermission to the play ....

Groundhog Day Again

Groundhog Day is a 1993 movie where the person finds themselves in a time loop repeating the same day over and over.

My favorite line out of the movie is when Bill Murray comes downstairs after the same day is repeated, again, and asks the elderly woman in the restaurant if she has ever had déjà vu ? She responds I am not sure, but I can check with the chef and see if its on the menu.

Apologies for the intermission to the play, but a news breaking story was I thought worthy of inclusion.

 

[kahuna1]

ACT 2
Lucky Nothing else has happened !!

Would I lie to you ? Its Christmas and Santa is coming … so I will tell the truth !! Sorry Mr illusionist …. Mr Magician … have I spoiled your party ?

If you know what makes a market tick. What little brainpower the average analyst on Wall street has, which is none, how could you fool them all ? Can you hear the chicken dance music playing ? Are they all so foolish ? Its what makes a great illusion so amusing to watch. Unless its you, playing the chicken on stage and its your life savings.

It goes on ..... PDF ...

Sorry a few more acts in this play ....

 

[avion]

I am simply amazed that i was able to stumble across this sort of quality of writing and research on a public forum. I do not know why the reluctance you expressed to be published in the mainstream media kahuna but none the less your effort is greatly appreciated from small audience on this forum. I just wish you had a greater exposure which you clearly deserve.

Merry Christmas Kahuna and please keep it up as the time permits. I am looking forward to your writing every time although i am now worried more than ever at the prospect of 2014 but therein lies the opportunity i guess...

Avion.

 

[kahuna1]

Hi,

Many thanks.

Despite the writing, or content or view, I today join the other people who were and are bears and who are wrong. At least for now.

My little line in the sand, the 1,810- in the S+P 500 is broken, and traditionally despite it only being broken by 1% here, in over 90% of cases, if it breaks one of these levels it does it well and truly. Despite that I remain a bear for the reasons I set out.

Does this mean the next stop is 1,940- in the S+P 500 ? Or around the 2,000- level ? For 2,000- which the first I thought was too far, but the promise of the second level at 2,000- is even more alluring than 1,940-. One cannot rule out any of them.

It could be an extinction burst for markets, in 1929 it went from 300 to 380. Oil in 2008 on the way down actually went sub $35- a barrel which ensured all future production plans would be shelved for a very long time. I commented at that time in 2008 on the fact that most commodities were well below this cost of new production and guaranteed shortages in the future of supply if they stayed there.

One moment my pet BHP was $50- and less than 6 months latter is was $20- and this was a well behaved resource stock. Some which I was not so fond of pre GFC were over $10- and at sub $2- it was cheap, either the world stopped or it recovered. Either the price of oil went up a lot from $35- or the world ended and no new production would have been added post 2008.

This dance, this hypnotic dance is so alluring one can only hum the chicken dance and follow. I decline, despite that promise for the USA side. I am aware how it got here, how it was done, the effects and the likelihood it continues.

But I am wrong, so no amount of writing or blustering will stop this rally if that is what they wish.

John Hussman an economist whom I respect as a brilliant man, has been bearish for many years. He is a scientific type of economist like Shiller whom I also respect, has done a chart which I am not allowed to borrow which has the total value of BONDS and EQUITIES in the US market vs the GDP.

It misses many of the magic acts going on and a reason why he was bearish, whilst I remained bullish, knowing these magic acts drive markets vs anything else. This chart in 2000 hit around 3.5 times GDP for Bonds +Equities in terms of value, in 2007 it hit 3.5 times, today I am proud to announce its nearing 4.

I waited and waited and waited, but I join the bear camp, likely trampled to death here. But I have my reasons to be in extreme fear of the current levels. They are valid and very solid. The cost to the USA sadly on every level of this is clear longer term, even short term I can see these numbers and it brings me great sadness that 30 million more are on food stamps vs 2002. It is strange almost obscene to say this as USA equities hits a new all time high, again, US debt to GDP hits a new milestone and high, again.


This dance, and it is a dance is over. The bond market playing to the same tune till mid 2013 already is now playing another tune. A tune which will add 1.6% of costs to the GDP via higher interest costs as time goes on. The great march of lower and lower rates, lower and lower risk or appearance of risk. A dance that has gone on since 1992 hit a level that was impossible to go below in 2011 and 2012-13. The dance sadly is over.

The market continues on its merry way, trampling the bears and I must be one for the USA at 1,810- knowing at some stage when the market looks in the rear view mirror and even out the windscreen, the view will be the same.

The dance started in around 1990 with 10 year bonds at nearly 10% cost, 6% more above that for junk bond rated issues. It ended with 1.55% 10 year bonds and 4% margins for junk bonds in early 2013. One was 16% cost the other 5.55%. Already the game is starting to go backwards. The vast majority of this move was post 2000 and the 13% cost went to 5.55%. Today, after hitting one brick wall the cost is back to 6.9% and as 2014 goes on I suspect we see another 1% added to this as always should be there. RISK will be adjusted accordingly, so too profit levels that do not ensure destruction in 10 years.

Anyhow the play MUST go on.

Here is act 3 !! ... only 4 and 5 to go !!

 

[kahuna1]

Hi,

hope all had a great Christmas with their family and loved ones. This is what life is about, kids especially and their excitement at what Santa has them for being good !!

I have come up with a name for the play "Weapon For Capital Destruction" I will put it all together at the end. I hesitated to present it all at once as it's a long read.

Whilst 1,810- in the S+P 500* is a blip now in the rear screen, not far away. but broken ... the fabric of the market is being torn to shreds.

The problem is, not really a problem, but as you occasionally see events like this where outside forces change the structure of the market and likely outcomes. Some foreseen and others NOT. They will radically alter the outcomes short-term. Not likely longer term. In this case the short term and long term outcomes are both aligned. US equities creeping higher, so too bond yields.

For some its a one off event, Uranium the flooding of Cigar Lake taking 8% off the global supply side a mere 18 months before it coming into production was one such event. BHP having to buy spot Uranium to deliver against production problem it was having added to the frenzy of the short term spike 2006-7. It actually did ZERO to the long term picture. Even I jumped aboard for that spike, but reality and long term reality for me was supply in 3 years or so would NOT be an issue and even gave the correct reasons for it then. Short term, it appeared the end of the world.

This in 2014 outlook is a different scenario as was the GFC. Talking about events prior to them occurring is very difficult to explain when your dealing with most of the time 5 or more different dimensions. One moves, it effects another and another.

My favourite all time is having firm convictions on 5 different levels and even if only two happen you will get a 25% move for that if not more. Oil and dwindling over supply capacity in 2003, very high cost of new much needed production DOUBLE the spot price and ever increasing demand in the background had many great positives. Even better, someone refining the product and eking out a living refining a $20- barrel product vs $60- made the* equation even better buying an oil refiner such as vs an oil company.

Almost 2014, my papers on The US fed loosing 300 billion, confirmed, but what was not clear, only a suspicion is now looking like cast in stone. US treasuries and their yields as the US stock market rallied to another new high, so too US bonds hit a new yield high. BOTH are totally incompatible. Bond YIELDS rising is like trying to help a fire burn and dousing it with WATER.

Higher interest costs on an ultra leveraged US equity market is exactly that. A Negative, not a positive.

I spoke about the German Bund vs US 10 year treasury spread and my belief that spread on risk, budget positions and fundamental should likely rise to around 2%, that is Germany pays 2% less than the USA on 10 years bonds for good reason for its debt, it was 81 basis points or 0.81% when I raised this in the China Syndrome paper and comments. Its today 1.07% and this is in very short order. Still a long way away from 2% but edging closer.

This is NOT my doing. Not me trying to say it should be done this way or that. Fund managers sometimes become quasi problem solvers for the world but in the end its a waste of time. I have no delusion anything I say will change policy. I can however see it, estimate the outcome even predict it. There is NO point in the EU doing its own QE for the simple reasons that it got its fiscal house in order, however painful and it is clearly seen as such. USA has not, will not and eventually when a market departs from reality, the further it goes away from that, the easier longer term it is to define and predict.

Their bond market DOES NOT need this stimulus, the EU one. Any benefit would be tiny. The USA desperately needs this to keep their asset bubbles fully inflated. Quite a different scenario.

The US Federal reserve up till June 2013 reported a loss mark to market of 120 billion just for the 6 months at the start of 2013, if the move at 2.96% Yield for 10 years treasuries as of today and MORE than double the June 2013 move/impact the sad fact is the loss is really over 300 billion on QE holdings. They may report it showing a lessor amount, but reality is the US Feds capital is gone. Now this event has NOT been reported by even people who have plagiarised me for years. It is however real and the outcomes unclear but also crystal clear. US fed will be on a very short leash in terms of Government oversight in 2014 and beyond when its revealed. I would hope Bernanke is seen for what he is, a rogue trader out of control. Confidence in the US central bank will take a hit. This report comes out February 2014 the revaluation of these bonds. If they hide it, as I suspect they will try to, it will lead eventually to even a worse outcome than it they come clean.

Bond markets will correctly spit their dummy even further.

These bond yields have risen rapidly the last 6 months and I do not expect any relief since the US budget and Fed are going to try to borrow 11 trillion possibly 14 trillion more over the next 4 years and when the GNP of the planet all countries is a mere 74 trillion, there is NO capacity to do this. Conjecture on my part as someone who has watched bonds for 30 years. I am not totally correct as yet, and another 0.8% rise needed, I am sure the central banks will attempt to try to reverse this, but trying to reverse an impossible demand on a limited ability to actually lend will not work either.



The demand increase in relation to debt needs to be altered or slashed. Its not been done willingly, so it is being going to be done the only way one can. Eventually USA will revert to normal cash rates 1.5% above inflation, 10 years 1% higher and 30 years likely 1% higher than that. If the US fed wants 2% inflation, its 3.5% cash, 4.5% 10 years and 5.5% 30 years. Likely borrowing cost for example of the USA funding 110% of GDP at 4% vs the current 2%, is another 200 billion a year, which is again going to add of other ignored budget woes they already have. That by the way is 10% of the corporate and income tax takes of the USA.

You can ignore these things, cover them up, but a point is eventually reached where they cannot be ignored. Quite often its the price moving to a level which this occurs and this is the catalyst in late 2013, but also the casting in stone the intended budget of 2014 and 2015 along with the fractured estimates it has.

Anyhow back tomorrow with ACT 4. As this play unfolds, the decisions will alter the outcomes to some extent. In 2007 it was a brilliant move to lower cash to zero %. US talked investors heads off claiming all was well early 2008. Numbers coming out were diabolical. US dollar crashed, commodities spiked in response to that move, then did 100% back-flip as if they stayed at $144- for oil, US inflation would have hit 1980 levels with zero cash rates. As the real losses became clear the risks even more so, credit spreads fell apart as they should have in the US market. The complex 5 dimensional nature of seeing one thing and relating it to another, is not often apparent, but the interrelationship sadly always is.

Oil in 2013 for the USA as they frack shale oil and gas and rely less on imported supplies is a good thing, but its a speck lost and dwarfed by other factors. If the drain on GDP of these oil imports is removed about 2% of TOTAL US GDP its really beside the point for GDP growth, debt and many other factors longer term. If US debt to GDP rises as suspected by 20% by 2017 an improvement of 2% in terms of trade is not really an issue. Its almost eaten totally if the bond yields and funding cost rises overall by 2%. As we have already seen 1% of that rise you can see my view of a positive vs a negative.

That was just the government side, the funding of the US corporate debt is about the same size and impacts.

Now in late 2013, humpty Dumpty is all back together and held together via chewing gum, new asset bubbles and as always the retail investor seeing great returns in the US markets for 2013 entering again likely at the worst possible time.

It could of course go another 25% UPWARDS US Equities. US fed is still at zero, tapering barely stopped, tax holiday for all in the USA still goes on. Debt of federal government ignored by all except ... BOND BUYERS. This ever widening gap, bond yields rising, which is a big negative for US stocks and I mean a 10% DOWNWARDS one on just this years rise in yields vs a market that has gained 23% the gap between a REALITY on both sides and an outcome which is also real is vast.

I cannot see US bonds recovering EVER to their lows of 2011 or 2012 with one exception and that would be a terrible outcome and that would be deflation ultra low GDP growth for a long time. The only way that happens is if the ASSET* bubbles burst. With rising size of the debt demand, falling real ability for the USA to repay it and possibly even service it, the market continues ever onwards. Having a recession and likely a fairly deep one for the USA is not possible to avoid. Spending cut, taxes raised and like the EU the aging population and their demands covered is the only outcome. Or they ignore it and take the benefits away, same outcome as those retiring need to save in never seen percentages, or they draw down faster on savings to account for this, same thing, same downward effect on everything, equities, GDP and growth.

All such a happy place for Christmas 2013, but it is possible for the juggernaut of the US equity side to march onwards in 2014, as its doing this the fabric of all valuation, cost of borrowing and funding of a debts that are impossible to ignore, gets worse and worse. My deja-vu of 2007 is served again.

As the meddling on the US side is at all levels, from economic numbers to government jabber, to US Feds actions and so on, this gap already at levels which are all time highs on so many levels is getting wider.

Every day US market rises and US bond yields rise, its me watching a fire being doused with water springing to life magically, or not so magically. Depends on your perspective.


Anyhow now with the play/book or essays name …. back tomorrow with act 4.

 

[kahuna1]

Hi,

and the chasm widens, buy buy buy ... meanwhile the fabric of actual earnings goes the other way. Bonds the 10 year US bonds at 2.97% overnight and 1.42% ABOVE the lows of 2011-13, the cost just of this is around 170 billion NEGATIVE yet the USA up 25% ?

This is just the first stage of the whole chain of artificial events unraveling. Spreads between different asset classes at all time lows move next and instead of a junk bond costing 5.5% in 2011 and 2012 and early 2013, its 7% now and likely to go back near normal at 9% over time. Either that or we have a bubble burst and deflation which is bad either way.

Anyhow here is act 4 for all it matters right now.

 

[So_Cynical]

I waited and waited and waited, but I join the bear camp, likely trampled to death here. But I have my reasons to be in extreme fear of the current levels. They are valid and very solid. The cost to the USA sadly on every level of this is clear longer term, even short term I can see these numbers and it brings me great sadness that 30 million more are on food stamps vs 2002. It is strange almost obscene to say this as USA equities hits a new all time high, again, US debt to GDP hits a new milestone and high, again.


This dance, and it is a dance is over. The bond market playing to the same tune till mid 2013 already is now playing another tune. A tune which will add 1.6% of costs to the GDP via higher interest costs as time goes on. The great march of lower and lower rates, lower and lower risk or appearance of risk. A dance that has gone on since 1992 hit a level that was impossible to go below in 2011 and 2012-13. The dance sadly is over.

I'm in the bear camp, in that at some point the dance must stop, this phony rally must end and QE (easy low cost money) be withdrawn, debt growth returned to normal levels...but as you (Kahuna) have said "they will do anything" to avoid disaster and so will continue to do so.

Im tempted to liquidate and take a really big short..but the timing. :dunno:

 

[CanOz]

I'm in the bear camp, in that at some point the dance must stop, this phony rally must end and QE (easy low cost money) be withdrawn, debt growth returned to normal levels...but as you (Kahuna) have said "they will do anything" to avoid disaster and so will continue to do so.

Im tempted to liquidate and take a really big short..but the timing. :dunno:

Agree, this low liquidity push higher is not supported by the internals...last i checked.

Rally's always last longer than you expect though and getting the timing wrong can be costly. I'd be waiting for a lower high rather than trying to call a top...

 

[kahuna1]

Hi,

Shorting ? I was asked why not in 2000 and in 2007 and various other slides I have seen prior to them occurring.

Never ever underestimate stupidity. If something worth $100- goes to $200- or for an individual share to $300- ... and you say short it there it goes to $500- and then $1000- your broke. Eventually the share you thought was worth $100- but sold for $200- or $300- it eventually comes back to $50- where you bought it first time around, your 100% correct, but since you shorted lost all your money between $300- and $1000- ... you can only shake your head at the fact your correct.

During the GFC, it was a game to punish the shorts, it fell 20% rallied 15% fell 30% rallied 11% almost overnight, fell 11% rallied 8% and so on.

They banned shorting of stocks that went broke, announced deals that would solve everything but solved nothing. Economic numbers that were revised up to 200% the starting number.

I take what I know or believe and leave the rest up to others.

This time around it will make the games that went on with the GFC appear mild. People are expecting something inside their market experience, I doubt it will be even close.

Few more bits and pieces to add to the play. That will do with sharing my views and forward outlooks.

cheers

 

[kahuna1]

Act 4 Scene 2

The Child makes an Atom Bomb

This is like a plot out of a very bad science fiction novel or movie. A child accidentally assembles an Atom Bomb but is not aware of what they are playing with, or the plot in one of the Planet Of the Apes sequels the Doomsday Bomb never let off whilst Man was still in control, is set off to end the planet and the awful movie.

All of the ingredients covered in this play are very well-known along with their outcomes. Placing them all together is another thing, do these people know what they have built ? Or do they care ?

(A bit long but whats new ?)

 

[Garpal Gumnut]

Interesting thread.

Are all metacognitions just hunches.

I wonder.

gg

 

[kahuna1]

Interesting thread.

Are all metacognitions just hunches.

I wonder.

gg

Its not a hunch obviously. Knowing facts, knowing factual content is the only was possibly to reach a Scientific theory based upon facts and supported by facts. A hunch is a hunch, an opinion is an opinion. A factually based opinion and theory as to outcome which is scientifically based and quite different to an opinion based on a hunch.

That's how I see it. Having an opinion everyone has one on every topic. Having a well educated opinion more likely to be correct.

having a factually based opinion, again different.

In the end ... this says it all ... this was the first one ...

“I have opinions of my own - strong opinions - but I don't always agree with them.”
George H W Bush

 

[kahuna1]

Well,


Its done. Too long-winded but its all out there.


Sorry but a very long read and we shall see the calls at the end of it. Not predictions to be different, but ones arrived at via a different journey.


Act 5 Third Law of Investing


take care


Mark

 

[kahuna1]

Apologies,

am thinking and a response is coming, just I find myself going in circles with this one.

In 2007 I wrote about things one never does. The last Non farm payroll and GDP numbers in the USA have floored me.

Anyhow some things I found interesting in January 2014.

Enjoy ... have a nice picture at the end of it.

take care

Mark M

 

[dian11]

This is very good for me

 

[kahuna1]

Hi


Blink and unemployment is 12.9% not 6.5%.

Blink and aged 60 you live till 78, blink again its 85.

Blink the debt is 17.3 billion and 107.9% of GDP and via Mr Elmdork who takes 5 trillion out a TRUST fund its 12.3 trillion.

Blink and the estimate is 20.9 trillion debt in January 2018 blink again with the same inputs and its only 19.4 trillion.

Blink and 228,000- people less working late 2013 is declared as 650,000- new jobs gained, by non farm payrolls and blink again its still a loss.

Blink Unemployment fell from 7% to 6.5% when less were employed, blink again the rate rose from 7% to 7.5% on any impartial look at the numbers.

Interesting world and US equities all time highs.

Such a wonderful picture being presented by these people. Is someone going to tell the 150 million with their money 5 trillion in a TRUST fund some unknown economist has just taken it ? Blink and the Social Security funds also appears to have people who have reached the actual retirement age and can claim the pension NO MATTER what income, so you reach age 66, even if your working your still entitled to get it, it appears as time goes on, people who have paid for 35-40 years into the fund in their old age will not claim the pension even if they are working ? Since 99% of them do it now, claim their entitlement, why does it seem to fall to 65% as time goes on ? Are they blinking too much, or is it old age ?

The people do not really matter. They are earnest in their beliefs. Even ones who led policy into the GFC, they deny any possible mistake or error. They do not matter other than they are still there and in even more powerful positions.

Bit long but covers the players and outcomes. Now no more looking at them expecting truth.


Here is the PDF.

 

[kahuna1]

Hi,

Act 6 Prelude, Economic Warfare Declared.

This soothing music is being played, and I tap my foot to the chicken dance on stage. Whoops just soiled myself again !! US debt ceiling still not agreed upon. Whoops they just passed it !! Market yawns at the risk, actually scarily NO MEDIA is commenting on the debt side. It's only a debt of 110% of GDP !!





Enjoy