Up On The Tight Wire ~ The Risk Averse Alert

Wednesday, September 04, 2013

Up On The Tight Wire

Per the market's threatening technical state, not one thing changed today.

Per today's rally on the back of increasing, warmongering bluster coming from a vapid U.S. ruling class whose influence outside an unpenetrating, fantasy-driven western media more or less is becoming a joke, inviting open ridicule from the major powers of the Eastern hemisphere, well, get ready for whatever rickety props are holding up the trans-Atlantic banking system to be kicked out like so many toothpicks. The risk of extraordinary machinations of the "all things are not what they seem" variety probably never has been greater in any of our lifetimes.

The G20 summit beginning tomorrow in St. Petersburg, Russia could feature something of this sort, as emerging markets generally and the BRICS specifically have been taking it on the chin of late. Confetti's U.S. dollar prop called "tapering" just might meet formidable challenge in an announcement formally initiating a BRICS Development Bank.

Who knows? Maybe Secretary of State Skull & Bones' lying Nazi routine in support of al Qaeda is at least partly intended to buttress the financial attack on the BRICS over recent weeks. Thus would pushback seem logical in the face of open defiance from Russia against the U.S. drive to escalate war in Syria on the side of the CIA's bearded cannibals.

Still, the matter of imperialist scumbags from London and Paris goading the U.S. to become directly involved in Syria, then turning their backs at the "red line" is something more than just unfortunate circumstance. All too likely there is a devious intention behind it. Should Congress deny the madman Skull & Bones his blood lust, and so raise appearances of U.S. "weakness" for a worthless U.S. media then to play up, this attempting to further weaken the institution of the presidency (a la Snowden) while consolidating the influence and power of the so-called (and very real) "deep state" (Team Fraud's holding company), well, the option of parking the U.S. nuclear armed submarine fleet in the English channel and letting the world know what's at stake would silence these worthless twerps and their bankrupt benefactors in a heartbeat.

I was noticing how the CRB index provides some insight into the Confetti Fed's effort to manage the disintegration of the global physical economy's so-called "excess capacity." We can see clearly that, whenever this amoral, insane—fascist—policy begins spiraling out of control to the effect of accelerating the CRB's collapse, garbage at the bottom of the capital structure coincidentally comes under considerable pressure. With the CRB's momentum clearly waning (see PPO, top panel) in spite of 2012's unbridled central bank commitment to hyperinflate the illusion of credit demand, we might perceive the push to precipitate chaos in the Middle East an attempt to squeeze supplies of crude oil venturing the same effect as recent years' shutdown of refining capacity has had: maintaining that delicate balance between the vicious shedding of the means to generate tangible wealth and the critical need to increase capital flows into a hopelessly insolvent trans-Atlantic banking system.

Trouble is, though, we are very likely at the precipice where the shutdown of the global physical economy in support of central bank efforts to extend the stay in solvency fantasy land can no longer buy time necessary to pretend the current state of the global capital structure is sustainable. We probably should see the ongoing collapse of emerging markets in this light, as well as insane provocations threatening world war. Both suggest power to contain the controlled disintegration of the physical economy is quickly waning. Thus, any kind of volatility whatsoever disproportionately impacting the CRB is likely to coincide with garbage at the bottom of the capital structure cratering. So, although the CRB's momentum appears on the mend since late-June, its better relative performance versus the S&P 500 since late-July might be threatening a most unwelcome development wherein a hyperinflationary policy's transmission to the physical economy portends a 1923 Wiemar Germany experience, fascist dictator nutcases and all (watch Patraeus)...

Word on the Street
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