The movements in the markets are simply a fractal extrapolating the momentum from its source. For roughly 30 years or so the world has been in an accelerated growth cycle. This growth would seemingly be creative and based on creation of new products, capabilities and/or services. In reality the growth has occurred based on a very large and subtle undercurrent of destruction. It is based on a grand financial engineering experiment which is now in its last phases and infecting as many as it can with its disease.
Sustainability and balance has not been the focus, rather exponential growth has been the myopic goal…and there is but one result from long-term exponential growth - DESTRUCTION. You can see it in our world now every day, we have come up with more and more creative ways to destroy the quality of our life than ever before. As a result, our growth has fittingly occurred with an under pinning of imperialism, militarism, financial warfare (via credit and other products) - all essentially destructive mediums used for the expansion of an exponential growth financial engineering experiment - nuclear power and derivatives are just a few examples of the tools of this agenda.
Even though during this time, Apple created the iphone, totally new platforms for computing and we build vehicles to travel to the edge of the our solar system among many other tremendous accomplishments, we created these accomplishments on the back of the earth and shoulders of the masses. Essentially rather than contributing to the earth and to people in general, we have instead chosen to steal from both. That condition manifests itself right now in the markets, most market activity is NOT people managing profits it is from people forcibly managing destruction of their wealth.
Given that this is the case, what can expect right now? From my point of view, the strongest part of the destruction is about to begin. The dollar rally is in its infancy and everyone is already calling tops and trying to re short and re short it. Same for the EURO in reverse. This type of activity is just one of the symptoms of our destructive global activity and will fuel futher destruction. The reality is that the forcible management of portfolios via the destruction of them has only just begun. Ironically, the panic will get much stronger as the destruction continues to grow - even more ironically doing so in "exponential" fashion. So, I am expecting a VERY VERY strong move up on the dollar. Of course, that will most likely ravage the asset markets and slam the debt markets too.
But there we go, the fearless leaders do not know what else to do and are essentially watching from the sidelines until the destruction has taken its course…then maybe they will come up with something. The one thing can be sure of, is that any idiot like BURNanke and Barrosso who think that they can solve over leverage with more leverage will only come up with more and more destructive ideas.
More to come…regardless of the state of things I do think that the unwind of the power forces behind these destructive agendas will create new possibilities to create a much better and more sustainable world. In that spirit and with hopes that we get opportunity sooner rather than later, I wish everyone a healthy and happy thanksgiving.
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