News Ticker

Sub-Zero Kakistocrats Strike Again, Version 666.0

The sub-zero kakistocrats running the shitshow are facing a day of reckoning for serious inflation and the Ponzi-unit, false-price-discovery crises they’ve created

Thursday was another black day in the financial markets. At long last, the European Central Bank acknowledges the seriousness of inflation in Europe and claims it will wield its tools to do something about it. Incredibly these tools so far consists of a signal of a token 25 bps hike in July and the end of their securities purchase program (aka QE) on July 1.

Also demonstrating in spades the total central bank price setting domination and lack of price discovery is the response by the insolvent sovereigns of Europe. This answers a question that “radical doubters,” such as me, have been asking for years:

What happens with the central banks end QE and their heavy-handed interventions?

The answer is a bond meltdown, as illustrated by Greece.

This was Greece before the end of ECB’s QE!

What insane party bought these and similar bonds for a 1% yield throughout 2020 and 2021? And 4.1% now is just the beginning.

Update: It hit 4.3% in early Friday European trading.

Worse in terms of impact are the sovereigns of insolvent-debt bloated Italy, a country that was further drained and looted during the Covid scamdemic. And now an energy shortage weighs on Europe. The yield on the Italian 10-year bond surged 25 basis points to 3.7% hovering around levels not seen since 2018. Many more black days lie ahead for the PIIGs of Europe.

Again, a question begs:

Who bought these PIIGs at sub-1% fictitious prices?

Other indications that “it’s happening” come from China, Version 666.0 of the shitstorm.

Turkey default looks imminent.

On June 15, the U.S. Federal Reserve kakistocrats are scheduled to lower the U.S.’ securities portfolio by $47.5 billion. During their meeting, they’re also expected to raise the Fed Funds rate by 50 bps. The quarterly blackout on stock buybacks starts June 14. As the tide goes out, we will finally see who’s not wearing a swimsuit.

It’s almost like a script for a new “Margin Call” movie. Is a Cabal of shady banksters meeting in a dimly lit conference room on the 18th floor of the BIS tower in Basel right about now to decide who will be this cycle’s Lehman?

Secretary of Treasury “Damnit” Janet Yellen has been a longstanding sub-zero kakistocrat of the lowest order. Her latest offering — after draining the strategic petroleum reserve — is to impede Russian oil (key to supplying developing nations) and constrict the oil market even further.

Damnit Janet claims the U.S. consumer is in “good shape” because they can liberally use their credit cards to survive. Damnit says that’s a good thing.

Credit card debt soared by $17.8 billion in April, the second-highest amount ever recorded. The highest ever was in March, when it soared to a staggering $25.6 billion. Consumers are completely tapped out. They’re using their credit cards to buy food and pay for other essentials. #Stagflation.

— Peter Schiff (@PeterSchiff) June 7, 2022

Home refinancing (typically equity extractions) have collapsed to the lowest level since 2000.

This is the same Dr. Evil rabble that passed new rules at the market top about trading in markets. Fucking legendary.

‘Pay no attention to the man behind the curtain!’

A massive inventory overstocking recession is underway.

Shipping rates from China to the western coast are down 38% month over month. Trucking rates are down 31% since the start of 2022. Railroads are reporting a 3% YTD decline in volumes. Air cargo in May (YoY) down 7% after a 11.2% fall compared to April 2021.

If this isn’t a canary in the mine shaft about food shortages, I don’t know what is.

Approval rating for Damnit’s administration has dipped to 39%. Those must be the same pajama people that bought into the sub-1% yield and stimmie-check stories.

8 Comments on Sub-Zero Kakistocrats Strike Again, Version 666.0

  1. “What insane party bought these and similar bonds for a 1% yield throughout 2020 and 2021?”

    Central Banks have an essentially unlimited power to move interest rates up or down to retard or stimulate economies. When they seek stimulus so desperately that offering “free money” was insufficient inducement, Central Banks around 2014 began paying financial institutions to accept that cash which was created out of thin air, hoping to create economic stimulus.

    In Roman times the silver currency was debased with base metals. But in Weimar Germany, Venezuela and Zimbabwe it’s outright money printing by adding entries to a balance sheet balanced only by the good faith and credit of the sovereign.

    • Inflation as a crowd phenomenon was discussed in Elias Canetti 1962 Crowds and Power, pp. 183-188, where he discussed Weimar and Hitler, ending with: “the Mark fell to a billionth of its former value. It was this inflation, as a crowd experience, which they shifted on to the Jews.”

        • I’m not Mr. Canetti, Thank You Kindly.

          I graduated college 1980 working as a programmer analyst, good jobs requiring clearance. It was ’87 before I could buy a house. The 80s Stagflation and high interest rates are nuthin compared to now.

  2. With all due respect, I’ve heard all this before … dozens of times “OMG, financial collapse any day now!” “OMG financial collapse!”

    Just a couple examples among dozens: Almost identical claims were made back in 2008, and circa 2014 with the Greek economic meltdown. Nothing came out of either, and we’ll get through this one just fine. “Buh, buh, I got numbers to prove a collapse!”, you claim. So has every other doomsday sayer before you. No offence.

    I always find it stunning how similar the “OMG financial collapse” narrative is to the climate hoax narrative. For either cult, doomsday is always just around the corner. And both cults have the “numbers” on their side … which is just nothing more than cherry picking stats to support an initial fantastical assumption.

    The bankers at the various central banks may be evil, but they’re brilliant economists with PhD’s in economics, statistics, mathematics … they know how to steer the ship far better than any “OMG financial collapse” cult member … you bet you house in it. That’s why these predictions never pan out. The people in charge (those PhD’s behind the scenes) are like chess grandmasters who see twelve moves ahead of you, who can only see one to two max. So, let’s mellow out on these “day reckoning” b.s., shall we?

    Expect gas, grocery, etc prices back to normal by next spring. These type of inflationary cycles are all part of a healthy economy. What goes up must come down, and so will this cycle … until the next one.

    • You’ve put words in my mouth I didn’t say. I am pointing out conditions in the field and black days- and the prospect of more black days. People can lose a lot of money and already have in black days or periods.

      A full blown financial collapse is usually avoided by an institution such as central banks intervening as a last resort. It is an open and not dismissive issue whether such an institution effectively exists now under present circumstances. You’re entitled to your opinion if you think it does, but I have serious doubts.

      I couldn’t disagree more with your view of the “brilliant” people ramrodding this so-called “healthy economy” shitshow however. Running a monetary printing press is not skill. Empty suits is an understatement.

Post a Comment

Winter Watch
%d bloggers like this: