Jackson Hole Saturday, When the Real Hyperinflationary Fireworks Occurred

Monday, August 29, 2016
By Paul Martin

By: Andrew Hoffman
Monday, 29 August 2016

Pardon me if this article starts out a bit disjointed, as I accidentally erased the notes I took last night, amidst the 155th “Sunday Night Sentiment” attack of the past 161 weekends. And afterwards, the 689th “2:15 AM” raid of the past 793 trading days, which I was able to document in real-time because someone called me at 3:00 AM, acting surprised that I wasn’t on “European time.” I mean, do I have a French, German, or British accent?

Thankfully, the amount of notes was minimal, as amidst the “summer doldrums,” trading volumes are exceptionally low – with “volatility” at 20-year lows, care of the most maniacal, relentless market manipulation in global history. Which, of course, is occurring because the global political, economic, and monetary situation has never been uglier. Not to mention, the powers that be MUST maintain the status quo to enable a Hillary Clinton victory – as if Trump wins, their ability to staunch the bleeding, and control the future, will be dramatically weakened. For what it’s worth, I strongly believe Trump will win – as like the “surprise” Brexit result, I believe Americans’ actual political leaning is far different than the propagandized “strong Clinton lead.” Frankly, it strains credibility that anyone would believe this to be true, given the historically horrible economy, the e-mail server scandal, and all out criminality of the Clinton Foundation.

As I wrote in this weekend’s epic “imminent end of an obsession with idiocy,” written at 4 am Saturday morning, Friday’s Jackson Hole shenanigans could not have been more pathetic – starting with Whirlybird Janet’s mind-numbingly dovish speech; which comically, was expected to be interpreted “hawkishly,” simply because she ambiguously stated, based on not a shred of economic fact, that the “case for a rate hike has strengthened.” Thus, the need to for Vice Chairman Stanley Fischer to be interviewed immediately thereafter on CNBC, to make sure the Fed’s “message” was properly received, that Yellen’s comments were “consistent with a possible rate hike.” Sure, anything’s “possible” – including, as Peter Schiff notes, an alien invasion. But possible and actual are two entirely different things, and since we’ve listened to the Fed speak of “possible” – and at times, “probable” – rate hikes for 3½ years, as the economy has relentlessly plunged, both here and overseas, I’ll take the under on such “possibilities.” More importantly, as I have noted forever, at this point such actions would “accomplish” nothing but the destabilization of financial markets; default of variable-rate debts; and likely, as we saw last December, when the Fed was dumb enough to attempt a rate hike, a renewed surge in PM prices.

Amidst said “summer doldrums,” the “PM bullish, everything-else-bearish” headlines have continued to flow like an out of control river torrent. Like, for instance, the U.S. Congressional Budget Office forecasting the national debt to rise from today’s $19.5 trillion, to exactly $28.2 trillion a decade from now. I mean, this is the Obama Administration’s own predictions; from a department notorious for miserably understating anything and everything; such as the Fiscal (September) 2016 budget deficit – which, excluding “off balance sheet” items, is expected to come in at roughly $600 billion, compared to $450 billion a year ago, and the CBO’s initial estimate of roughly $500 billion. And no doubt, they are assuming essentially no interest rate increases over the coming decade – as if an additional $9 trillion of debt, atop what is already history’s largest, and parabolically-rising, debt load, will have no impact on borrowing costs.

The Rest…HERE

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