STAFF NEWS & ANALYSIS
Goldman Analysis Neglects World-Destroying Crash?
By - August 01, 2016

“The path of least resistance in the short term seems to be for stocks to go higher, but to do so sustainably we need to see much stronger economic growth and positive earnings growth,” said Wiegand, adding that he is surprised by the absence of volatility and range-bound markets. – Fox Business

The path of least resistance is up.

Until it’s down.

And we told you so. Remember this DB article from early April, HERE:  “Stock Market Last Gasp: Could Equities Jump Up Hard?”

Today, we seem to be at the terminal stage for the world’s economy. And yet there could be a market surprise to the upside. It’s happened before when the majority of “sophisticated” investors don’t expect it.

We analyze elite propaganda. Sometimes we can smell the “directed history.”

Now even the hardiest stock market drummers are having trouble beating the drum of equity optimism.

HERE, from CNBC, a report on a new Goldman Sachs analysis:

Goldman Sachs downgrades equities to ‘underweight’ over three months … Global equities are at the upper end of their “fat and flat range,” according to Goldman Sachs, who downgraded stocks to “underweight” on Monday as part of its 3-month asset allocation.  The bank remains “neutral” on equities over a 12-month period and continues its “overweight” position in cash.

This Goldman report surely scratches only the surface of the real difficulties.

The US, for instance, is some $200 trillion in debt when formal and informal promises are taken into account.

The derivatives markets is apparently well over one thousand trillion dollars and eternally balanced on the knife-edge of insolvency from what we can tell.

Germany’s largest bank, Deutsche Bank, is also on the edge of insolvency, as is the Italian banking system.

Lord knows what problems in Europe and Asia have NOT been reported. Corporate, private and government interests are generally insolvent.

The “middle classes” in the US (and elsewhere) have perhaps several weeks savings between themselves and insolvency.

Central banks around the world have printed so much money for so long that banks are starting to charge for the privilege of holding it.

That’s real monetary debasement!

To keep the system functioning for now, central banks are interfering with the market in unheard-of ways.

HERE, from Bloomberg in late April: The Tokyo Whale Is Quietly Buying Up Huge Stakes in Japan Inc.:

Central bank seen boosting ETF purchases as soon as this week … They may not realize it yet, but Japan Inc.’s executives are increasingly working for a shareholder unlike any other: the nation’s money-printing central bank …

It’s now a major owner of more Japanese blue-chips than both BlackRock Inc., the world’s largest money manager, and Vanguard Group, which oversees more than $3 trillion.

The manipulation is clear.

In fact, in our view, there is no “capitalism” in the traditional sense anymore – not in Japan and not elsewhere either.

The world is in either a depression or quasi-depression depending on where you live.

Wars are exploding in the Middle East and elsewhere, and these wars will probably  become bigger.

The last two wars ended with the construction of quasi-global institutions: The League of Nations and the UN (with its related IMF/BIS/World Bank paraphernalia.

The next war, now perhaps in its planning stages, could usher in full-blown globalism, perhaps alongside quasi-debt forgiveness.

In the short-term, we don’t except professional and investment choices to become any easier.

Conclusion: The struggle between despotism and market competition is accelerating.

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  • Methinks the real virtual reality is the competition between accelerating despotism and struggling markets and that, Daily Bell Ringers, is a Great CyberWar WareFare Game which does not suffer nor offer the Input to Output of Fools Engaged in a World Series of Follies.

    And how can/will MainStreamMedia ignore it, if it is to remain a credible force of vital information with future intelligence leading in an agreed arranged direction? To spin false yarns and seed crooked trails renders one as the deceitful enemy to be thoroughly crushed and perfectly destroyed.

    The whole truth in any and all of its forms, both within and outside of IT and AI, is a Divine Master and Heavenly Mistress.

  • Three pillars of sand our economic system is built on:
    1.Federal Reserve Bank
    2.Fiat Currency
    3.Fractional Reserve Banking

    The Federal Reserve tries to regulate the economy. Their mandates are maximum employment, stable prices, and moderate long-term interest rates.

    The Federal Reserve creates money and or makes money inexpensive by manipulating interest rates lower. Rarely manipulating rates higher. This is inflation. Prices go up and real wages go down.

    The Federal Reserve creates bubbles and crashes by pushing interest rates too low or too high for too short or too long of time.

    Who regulates the regulators at the Federal Reserve to keep the people safe from it and its mistakes? The only real regulator possible is the free market.

    With the Federal Reserve in place the market becomes the judge of the Federal Reserve decisions, rather than the regulator.

    The Federal Reserve in essence aids debtors and punishes savers. A depreciating dollar aids debtors and harms savers. An appreciating dollar aids savers and harms debtors.

    If you start giving an economy fish (easing Federal Reserve monetary policy, excessive federal government spending; deficit, national debt), the economy starts fishing less and starts dining more. Temporary misallocated (Keynesian stimulated) employment increases and sustainable production employment decreases.

    Abolish the Federal Reserve, the FDIC and all bank regulations except one; require full disclosure on full or fractional reserve backing of deposits. Treat gold, silver and cryptocurrencies as legal tender (not as an asset) for tax purposes.

    If you are concerned about the growing income inequality gap, if you are against war, against the military–industrial complex, against mega-mergers of companies and against invisible taxation, then you are against the Federal Reserve.

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