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The Fed has trained the trading-rats all too well, and there is no way to avoid the unintended consequences of the Fed’s large-scale human behavioral experiment.

When this bubble bursts, there will be no fourth or fifth bubble, there will only be rubble.
The US economy and its financial system operate under the implicit belief that the Federal Reserve controls the direction of the economy and finance.

As long as we mint millions from a Never-Ending Bull Market, we’ll always stay one step ahead of the Debt Monster.

When we lose small businesses, we lose More than tax revenues.
Small businesses receive plenty of lip service but very little appreciation–until they’re gone. By then it’s too late to do anything but mutter, “you don’t know what you’ve got until it’s gone.”

Nobody seems to be wondering what happens should the real world no longer respond to the Perpetual Motion Finance Machine.
Scrape away the hand-wringing about interest rates and we find a bedrock of complacency.

The Social Contract is broken not just by wealth inequality per se but by the illegitimate
process of wealth acquisition

Extremes keep getting more extreme, but for those at the top of the heap, it’s all fine. For everyone else slipping down the ladder, all that FINE adds up to Fragile, Insecure, Nonsensical, Expensive.

Together, these factors generate a self-reinforcing cycle of debt saturation, declining collateral and credit contraction.

Who’s left to buy overvalued houses? Too few to prop up bubble valuations. If as many posit the Federal Reserve has an unstated mandate to generate a “wealth effect” by propping up housing, they’ve managed to create a no-win situation.

And what happens next? Bubble symmetry: valuations fall at the same rate as they rose, declining back to the starting point over a roughly equivalent time duration.

Be careful what you wish for, because currencies are not abstractions we ponder, they are commodities that serve real-world functions that place demands on the currency as a mechanism of trade, trust, value and risk.

Yes, I’m rattling the begging bowl.
Beneath the veneer of normalcy, things are no longer working like they’re supposed to. Am I the only one who senses this? >

In a system maintained by ever-greater extremes, confidence erodes very quickly once the next extreme fails to move the needle.

This is how we’ll end up with severe shortages of truly skilled labor and high unemployment of those who lack the necessary skills.

Imagine the immensity of their disappointment in discovering Earth offers few opportunities for trade or investment.
New research has finally solved the mystery of why UFOs/UAPs (Unidentified Aerial Phenomena) have been visiting Earth since the late 1940s.

The market and the government will continue to promote and support a neofeudal status quo until they are forced by society to restore the common good and opportunity. Of the three primary dynamics of human endeavor–the market, government and society–we focus almost exclusively on the first two.

The resulting erosion of collateral will collapse the global credit bubble, a repricing/reset that will bankrupt the global economy and financial system. Scrape away the complexity and every economic crisis and crash boils down to the precarious asymmetry between collateral and the debt secured by that collateral collapsing.

Everyone wants a trend they can trade for effortless gains. That may no longer be realistic.