Black Monday: October 19, 1987

Nothing was ever the same after that day. From here, the Fed beginning a 34 year long suppression of interest rates at a level never seen before. Global Macro Monitor tells the tale: https://global-macro-monitor.com/2021/10/18/black-monday-1987-inside-the-u-s-treasury-2/ The following exchange took place between President Reagan and reporters after the market close on Black Monday, October 19, 1987.  LeavingContinue reading “Black Monday: October 19, 1987”

Bonds Away!

The US bond market may be closed, but it was fully open in China, and locals took advantage of this fact to do one thing: sell. In the aftermath of our viral post “”Catastrophic” Property Sales Mean China’s Worst Case Scenario Is Now In Play“, China property firms bonds were hit with another wrecking ball onContinue reading “Bonds Away!”

Fed End Game or “Ending the Game of Fed”

US debt is currently ~$29 trillion – up ~$6 trillion in 2 years. All signs are Joe “10% for the Big Guy” intneds to double that rate this year even as supply chains are incapable of handing the modest economic growth to date. No surprise, the 14% inflation we’re seeing (yes – it’s 14%) isContinue reading “Fed End Game or “Ending the Game of Fed””

Coal for Christmas – China’s Supply Chain in Crisis

Human Terrain: https://fortisanalysis.substack.com/p/coal-for-christmas In mid-April 2021, I began receiving reports from sources in China and the United States that certain regions in China had begun to experience ongoing power disruptions at their warehouses and manufacturing facilities. Most notable of these was in south China’s Guangdong megaregion, where in June operations at the Taishan Nuclear PowerContinue reading “Coal for Christmas – China’s Supply Chain in Crisis”

Blackouts in the Red Ponzi

Container Shipping’s Latest Shock: Blackouts in China The Loadstar Factories in at least ten Chinese provinces have either cut output or closed temporarily this month, after government-imposed power cuts to curb carbon emissions. By Friday, at least 10 publicly listed companies told the Shanghai and Shenzhen stock exchanges their factory output had been hit byContinue reading “Blackouts in the Red Ponzi”

“We got Condition Red and we’re definitely expecting rain.”

Excess liquidity is the ratio of a monetary aggregate to nominal GDP. It is often referred to as the “Marshallian K”, which is equivalent to the inverse of the “velocity of money.” The Marshallian K fell below zero in 2010, a year when the S&P 500 Index suffered a 16% correction. A similar dip inContinue reading ““We got Condition Red and we’re definitely expecting rain.””

If it’s somethin’ weird an’ it don’t look good

If there’s somethin’ strange in your neighborhoodWho ya gonna call?(Ghostbusters!)If it’s somethin’ weird an’ it don’t look goodWho ya gonna call?(Ghostbusters!) With the “Federales” talking up more lockdowns, their Ministry of Truth expanding and formalizing their diktats to their all-too-enthusiastic oligarchical cronies, and the casino face-planting while inflation steps up, it makes you wonder: howContinue reading “If it’s somethin’ weird an’ it don’t look good”

Mike Wilson: “If being a bear is wrong, I don’t want to be right.”

Courtesy of Tyler Durden: https://www.zerohedge.com/markets/mike-wilson-re-emerges-wall-streets-biggest-bear-heres-why-he-expects-20-drop-stocks Mike Wilson Re-Emerges As Wall Street’s Biggest Bear: Here’s Why He Expects A 20% Drop In Stocks BY TYLER DURDENMONDAY, JUL 12, 2021 – 02:40 PM Back in the summer of 2018, when stocks were surging at least until the fourth quarter when the Fed made the policy error ofContinue reading “Mike Wilson: “If being a bear is wrong, I don’t want to be right.””