No doubt the phone from Washington to New York was abuzz with chatter urging the bankrupt casinos of lower Manhattan to postpone meetings plotting Italy's run through the meat grinder (now that Berlusconi is out of the way), and instead support a bleeding U.S. Treasury, even if this requires tapping future revenue streams to be realized once the Detroit Bug turns into a national pandemic. Unknown is whether the Bank of England was party to Confetti's calls to New York, but odds are good the equally bankrupt Venice on the Thames in no time will be aggressively selling into today's Treasury market strength. The phrase "misery loves company"? The Bank of England in all probability coined it.
Not to be so easily perceived desperate, though, Confetti probably saw to it that, a fire likewise was lit under the Volatility Index, working his Chicago connections where the "Land of Lincoln" has been turned into the "Land of Helicopter Love," pleasing Chicago Fed president Charles Evans to no end. Today's insurance rate discount evidently was enough to convince choking behemoths they'll survive the weekend, so revving up the HFT machine into today's close their markup on a book of garbage now awaits Monday morning's confirmation they're still open for business, ready for suckers to take another slice of wildly overpriced zircon at the bottom of the capital structure, this on the expectation Confetti has many an eager Ivy Leaguer ready, willing and able to serve up yet more monetarist madness once master boss hands over the plantation's reigns.
Now, we might better fear the worst in a way that's well beyond anything expressed here of late. That oft-stated outlook anticipating major indexes falling to ranges last seen in the 1987-1994 period might become reality a lot sooner than anyone thinks. As soon as early 2014 in fact. We should give some thought to this possibility.
Does it not seem extraordinarily unlikely a Confetti clone will be appointed the new Fed Caesar? Why bother? When not just leave Confetti in place? He seems a nice enough man, an amiable colleague among peers, unlike one "prospective" clone with any Ivy League stint at the fraud feed trough. Yet truth is Confetti is being forced out. Why? He certainly is flush with allies in the Fed's Open Market Committee, while the Fed's board of governors finds wide agreement with Confetti's accommodation, particularly where it matters (New York), although dissent of the Glass-Steagall variety has been increasing. Do Confetti's backers who matter believe his policy simply is not producing slaves fast enough to sustain physical leverage wrapped up in the mountain of trash they lord over? Is theirs intention to throw out much garbage—which act Confetti's policy, indeed, supports—aiming to prevent a Wiemar 1923 repeat from bringing ruin to all, slave and master alike? A severely debased dollar Confetti's policy assures. That's the last thing Team Fraud can afford here. His policy perpetuated to infinity means game over for everyone, whereas stopped "only" would crush most.
We might recall here that, shortly after King Ponzi was anointed Fed Caesar in 1987 came Black Monday—October 19, 1987—and the worst one day collapse in the U.S. stock market's history. No one event did more to supercharge the means of turning a budding, globalized banking system into a government unto itself, all using the lure of a leveraged finance (read: debt trap) whose heightened risk in its unproductive application was "mitigated" by the pure gold of "market forces" according to King Ponzi, this in his many appearances before the U.S. Congress. Being no dummy, and possibly recognizing the fallacy of his sophistry once the "irrational exuberance" he warned about in 1996 (according to script?) had evolved into the Great Mortgage Finance Bubble producing securities needed to paper over the tech bubble's collapse post-Y2k, King Ponzi gave way to Capo Confetti who accelerated the U.S. Treasury's descent into Team Fraud's debt trap and effectively sealed its obeisant captivation. Who could question Confetti's impeccable academic credentials assuring the masses all will be well? See, nothing to worry about at the top, little Maestro lovers! Not with an ace helicopter pilot on the stick! Shop on, America. The Ivy League will save us!
However, could some ascending imperative that, by necessity, urgently aims to fortify intermediate-term dollar support, give rise to Confetti's discrediting, this to the effect of assuring tight financial conditions (ripe for squeezing hot money flows) paint the box containing the next Fed Caesar? Maybe, then, rather than after his or her crowning (as was the case with King Ponzi), we might find a fertile ground's harvest bringing a bumper panic before the trans-Atlantic's new Caesar's is coronated. Quantitative easing turned qualitative squeezing certainly would make for a new bull market in slave labor. In case you didn't get the message announcing this intention, then maybe take a closer look at monthly employment reports over the past five years. As for stagnation in real wages over the past three decades, same intention, different program (filed under "Debt Bubble Blowing").
That Confetti's "retirement" is being forced still remains a dirty secret. Very strange. Hey, how about those expanding PMIs, though! Oh and look, see there, the liquidity flood is raising employment demand for street sweepers! So bounces the mind reading between the lines thinking of what new project is being hatched while suckers are made momentarily fat and happy, and only the more blissfully undiscerning in mistaken belief that, what's said is better taken at face value, while what's to be read between the lines is but some misguided conspiracy theorist's conjecture. A global coalition wittingly debasing all things sovereign, and now increasingly fragmenting, leaves the emperor exposed and the U.S. dollar at risk, which means rates continue rising, QE or not, and it's buh-bye equities. Just how quickly this might come about only requires recognition that, when an enterprise's leadership is sent "pursuing other opportunities," something ain't stirring the Kool-Aid...
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