“Markets”: One for the Ages for the Fantasists

Tuesday “market” manipulation action was epic. Trump’s attempts to extend fantasy seems to have no end.

The “markets” are being permanently wrecked and the cracks are appearing everywhere. It’s not really a question of going to end badly, it is going badly. And if you believe the fantasy and aren’t privy to the corrupt leaks and insider trading you may very well be wiped out.

Oil declined sharply due to claims of “ceasefire”. Throughout the ceasefire and “deal” rally nobody paid the slightest attention to what Iran was saying.

Immediately after the “market” close oil recovered when Iran unloaded on U.S. bases in Jordan.

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I think Iran had seen enough with Bibi’s mischievous shits and giggles pow wow in the White House. It probably didn’t help that Big Brain Trump threatened Iran’s bridges, power plants and what-not. Why would Iran be compelled to sit this out?

And who got tipped off on this “leak”? —>

The weekly American Petroleum Institute (API) inventory data just leaked, and it completely blindsided the paper shorts. While the retail market was locked out after the 4:00 PM close, the API released its private weekly report at 4:30 PM EDT, printing a massive, unexpected 3.3 million barrel draw in U.S. crude stockpiles.

As I write this early morning in Europe before the western “markets” open we see the carnage in Asia continuing. Wags should be reminded that an Asia crisis like this in 1998 almost brought the global economy down. And the potential for crisis is a magnitude many times higher today.

What’s happening in South Korea, won’t stay in South Korea.

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There is a black swan credit event lurking out there.

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After failed talks and repeated U.S. strikes, a growing number of voices inside Iran no longer believe diplomacy can work. Their answer is simple and brutal. Take the bull by the horn and raise the ante until the American economy itself is broken. “Make sure the U.S. economy is destroyed while Trump is the president.”

Integral to this objective is to call out the fantasists at every turn. Counter every manipulation possible.

THE HISTORICAL PLAYBOOK—>

America ends wars when its politicians finally realize they made a huge mistake. That is how Vietnam, Iraq, and Afghanistan stopped. Either the executive branch (after Trump is removed) or Congress concludes the price is too high and the funding ends. The same logic is now being applied: force the realization that the current policy is destroying the U.S. economy, and the policy will change.

Bottom line: This is no longer about limited deterrence. This is about breaking the American economy while Trump is still in office.

 

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