Theft, lies, insantity, emotions and other market datum.

Understanding the modern marketplace is no longer for the economist mind. The very best economists have been perplexed by the action of markets in today’s volatile and fact defying price action. The P and L statements of major corporations seem to fall on def ears. Every economic indicator we know of has been showing the market has been on verge of collapse for at least a year. The federal reserve even tries to apply brakes with modest interest rate hikes even though every single deciding factor says the bull run is over.

The shift from free markets to centrally planned economies has been slowly taking root in the past few decades and this shift in policy has led to complete chaos on the street. With supply and demand of products and more importantly, the supply and demand of money completely disregarded, the so called smart money is more wrong than ever. Dismal quarterly earnings, decreased liquidity, rising rates albeit scant, should be the death blow of our economy. Poor earnings performances and weak employment data seem to be only after thoughts. Emotional response to intangible and almost mythological factors like the Trump election remain the driving force of growth in western economies.

The abandonment of science is startling. Similar to economy, experts in climate have also gone to emotional arguments in favour of emotional arguments that have no basis in reality. Despite there being no reduction in ice fields globally, no evidence of warming trend, and no rise globally of water levels, the masses focus on a mythological condition based on photos of starving polar bears on broken pieces of ice... The state and its puppets bent on inventing problems and a compliant virtue signalling populace eager to donate funds, restrict growth and impede humanity for the sake of anecdotal tragedy.

For most of us this is a mere annoyance as fewer things grind our gears more than hypocrisy. But for those of us trying to earn a living by applying sound economic knowledge to modern markets, it has become more than just annoying. It has become a hinderance to survival. Not only are small investors and speculators being raped by the twilight zone economics of today, larger entities are becoming more cautious in the face of these gravity defying markets. Hiring is down. Investment in large projects is down. Yet the markets continue to boom. Analysts like Peter Schiff, has been telling of the coming crash of equities and even the USD. He isn’t alone either. Pundits all over the internet have been cashing in on the sound economic analysis of Schiff and others. Schiff points to the multitude of weak data and correctly warns of a sharp correction.

The problem with Schiff is that he is applying the old rules to a new reality. Socialism now has a death grip on western money markets. The JP Morgan paper short on silver is just one example modern control mechanisms. Where state would control prices before, they are now governed by state puppets who do as they are told. Science, economically speaking is out the window and old rules are having less of an effect on current markets. Emotion and politically correct policy reigns.

The warning is dire however. What we have is a market that is artificially propped up. Policy makers more concerned with re election than actually doing the right thing, are setting us up for a major correction in almost every industry save perhaps the military industrial complex. When Schiff et al. are proven correct (and they will be), the market will shake like we have never witnessed.

The disregard of science almost always costs the poorest among us. The questioning of church and the flat earth once meant death. In fact, Christianity, Islam and Judaism all have blood on their hands with a deep history of denying reality in favour of fearful, hateful and anti science belief systems. The religious authorities never missed a beat in cashing in on ignorance of course. Wars for God, taxes for Muhammed, death penalties for those who describe actual reality, silenced by sword. The climate change cult, bearing the same fear rhetoric, places taxes fees and penalties on people based on a mythological belief. The poor masses not only accept but promote further taxes and fees and penalties to fight satan or climate change. Such is the prison the prison in which the poor have always resided. A prison were taught to accept as deserved. Us sinners against God, Climate or wall street somehow deserve our lot and the sooner we cease and desist the better. The opposite world of financial markets is impoverishing billions and enriching the extreme few.

The good news is that although we can manipulate, prop up, and distort markets, they are a natural phenomenon not subject to our power forever. We can delay , deny and propagandize all we like. The markets will correct. Timing them now is much more a social science than mathematic science. The doom sayers like Schiff will be right eventually. Timing the market has become a social science. A peculiar scenario where the lowest economic IQ wins the most. Those who pile on debt into a never ending housing market are the richest amoung us. Those determining data and analyzing trends are roasted at the sacrificial alter that is wall street.

Last nights attack in Manchester is a testament to how we have changed in evaluating markets. Remember when a terror attack would spike oil prices for rightful fear of supply squeeze by impending bombs flying in the middle east.? I do. 911 sent oil to the moon because speculators knew there would be a shit storm in the middle east. Today's oil price stands in direct opposition to reality. 22 people died. The UK is certain to act. There is certainly in the very least, reason to believe that there is great uncertainty of peace in middle east. Yet the price of oil is currently trading flat but up only slightly. Why? Who knows. I’m an economist, not a social studies expert. The direction of market should be clear but the world waits on what our governments will do. If they want the price at a certain level for whatever reason, that’s what price will be. Welcome to Soviet style economy.....for now