IF AT 100TH YOU DON’T SUCCEED
–If at 100th you don’t succeed, try try again. That has been the motto of central banks for over a decade and continues to be the motto. This morning:–
–In spite of the ECB having negative rates, in spite of the trillions of printed money, in spite of the 10 year German Bund amazingly yielding negative, Mario (I can do one better than Bernanke) Draghi announced this morning that they can actually print even more money and get this, lower rates to even more negative. Yes…a negative 0.4 is not easy enough. Overnight futures reversed on this news. Juices are flowing as a money losing, fake meat company is up another 10% this morning and more money losing IPOs are foisted upon an unwary public. —
–The amazing part about all this is that the easy money has not worked. Europe has continued to under-perform with many areas contracting. Most don’t or don’t want to understand that the easy money is what has created the problem…and continues to this day. The easy money has enabled massive debt and deficits. Guess what the debt and deficits cause? Correctomundo…a headwind to the economic growth they are looking for. Guess what the easy money does? It screws the savers while trying to bubble up asset prices which in turn causes economic inequality…you know, the thing they rail against.–
–And next up is our easy money dolts as every time markets take a hit, they take a turn. The latest is our fed going from “patience” to “uh, uh, uh, hmm, we can now look to lower rates!” Don’t worry about the more than $1 trillion yearly deficits. Don’t worry about the $22 trillion and counting of debt. Don’t worry about this year, the first $550 billion of our precious tax dollars are going to interest. That’s right. Not to the poor, the downtrodden, the kids, the elderly, the roads, the bridges…but to interest…all because of what the fed has enabled and the politicians have created. Nancy Pelosi keeps whining about the Constitution and how it must be upheld. Funny…not sure we read anything in the Constitution about politicians like Pelosi putting us into $22 trillion of debt. President Trump said that he would cut debt and deficits by half. Funny…the president immediately, with Paul Ryan (now gone) and Mitch McConnell raised federal spending $250 billion/year ad infinitum. Love them conservative RepubliCONS!–
–But don’t worry. Rates are coming down both here and around the globe. Negative rates already pervade. More printing will continue. The president is actually jealous this morning as he is tweeting that it is unfair the ECB keeps easing while we have not. Don’t worry Mr. President. We are next. As long as markets cooperate, everything is fine.–
–Sound pessimistic? We have never been more optimistic…about the people. The great, hard working people of this country continue to work hard, sweat, toil, risk capital and succeed. Unfortunately, we have never been more pessimistic about them as no one running this country on the left and no one on the right…gives a crap about what they have created. And when all hell breaks loose, the culprits will be either lobbying, working on Wall Street or just plain history.–
Well written piece today. I agree with every word! Thanks
Thank you, Gary. This is spot on!