Why QE Cannot Stop: Capitalism Died With Due Diligence ~ The Risk Averse Alert

Wednesday, October 30, 2013

Why QE Cannot Stop: Capitalism Died With Due Diligence

Shocking! No Fed taper. Steee...rike two! This while everyone's screaming "bubble" no less.

Now, why can't the Fed let go?

Because the banking system is hopelessly insolvent! It's almost like the Fed is begging for bank runs. This is not how confidence is built. Although there was not much reaction to speak of following Fed affirmation it is woefully trapped, evidently there was a spike in Treasury yields taking the wind out of the sails of the S.S. Trash-Transfer. Rising rates are exactly how this story will end if 2014 brings Confetti clone Yellen to lead the Fed.

Again, Confetti was let go for a reason. Much talk of a Fed taper is occurring for a reason. $85 billion a month—half of which goes to relieve insolvent albatrosses of their maggot infested garbage—continues being provided for a reason. Some have claimed that, if you tell a big lie long enough, eventually it will be believed. Yet they also say "to every rule is an exception." A Fed policy on course to bringing massive debasement of the purchasing power of savings is all the transparency so-called "deep and liquid" capital markets need, really. Someone, somewhere, is not coming clean, and more than just a few vested interests surely understand this. Thus, the price of uncertainty the Fed is breeding propping up a highly leveraged banking system by perpetuating a Ponzi dynamic sustaining appearances of the banking system's solvency surely will be panic.

Yet we must not assume the motive behind any panic detonator's lighting will be innocently benign. This is particularly true appreciating the great lengths being taken to maintain appearances of financial recovery following 2008's discontinuity marking the end of a wildcat finance free-for-all setting up millions to lose their most prized asset of all: their homes. Intentions behind ceaseless perpetuation of Ponzi finance going all the way back to a securities-based banking system's founding on lender of last resort implicit guarantees extending to today's explicit backstop should not escape critical scrutiny on account of some well-developed sophistry claiming the laws of capitalism working to the effect of raising uncertainty, and so hastening a mass exodus at some vulnerable spot in the capital structure. Rather some latent form of swindle necessarily need be assumed behind any panic brought to bear in today's environment.

The fact of the matter is capitalism died with due diligence. There is no escaping this reality. Indeed, this is the very reason why the hapless academic leading the Fed is failing to restore confidence in the ability of markets to facilitate price discovery, which fact dooms the Fed to becoming insolvent itself, having to sustain its infinite QE, lest depressed garbage burdening the books of so-called "systemically important" financial institutions becomes a weight promptly sinking the entire banking system, and the Fed along with it. Trapped as such and left supporting a lie, the Fed is reduced to providing devices sustaining thieves who are short on prospective victims, having only each other now to devour. Such is how supra-national banking dictatorship is to be further consolidated, while freedom guaranteed in economic opportunity stands to be more completely crushed in the aftermath of an entirely predictable swindle ultimately needed to hasten a shark feeding frenzy whose net effect will serve only sovereign-hating oligarchs, the likes of whom in fact are far more bankrupt than all the nations of the planet combined.

Were the banking system not so hopelessly insolvent, then its consolidation might be possible in a relatively peaceful, non-threatening climate. This, however, is not the way of it right now. The possibility of peaceful consolidation is not possible. No one in their right mind is willing to absorb "assets" marked to fantasy. So, financial claims on physical assets offering viable income streams necessarily need be marked down. Therein is the genesis necessitating some manufactured swindle be brought to bear.

I have said this before and will say it again, capitalism died long before QE. Albeit repeating this here using different language and a different frame of reference, the fact remains today's order promotes something other than capitalism. Our contemporary arrangement principally advances a cause antithetical to the founding principles of the American republic in fact. Thus do we side with all evidence suggesting the objective underlying the institutional reorganization occurring in the aftermath of the demise of the Bretton Woods System of fixed exchange rates ultimately aims at undermining the authority of the sovereign nation state and relegating it to the dustbin of history.

To most, of course, this will seem a radical view. Yet we must wonder to what extent must utter financial vulnerability be exposed to extraordinarily destructive effect before what becomes as widely acknowledged as a "bubble and bust economy" is the radical extreme to which most today display naivety?

* * * * *
© The Risk Averse Alert — Advocating a patient, disciplined approach to stock market investing. Overriding objective is limiting financial risk. Minimizing investment capital loss is a priority.

Analysis centers on the stock market's path of least resistance. Long-term, this drives a simple strategy for safely investing a 401(k) for maximum profit. Intermediate-term, investing with stock index tracking-ETFs (both their long and short varieties) is advanced. Short-term, stock index options occasionally offer extraordinary profit opportunities when the stock market is moving along its projected path.

Nothing is set in stone. Nor is the stock market's path of least resistance always known. More often than not, there are no stock index option positions recommended.

There's an easy way to boost your investment discipline...

Get Real-Time Trade Notification!