Playing Chicken with a MACK Truck

Monday, April 3, 2017
By Paul Martin

By: CAPTAINHOOK
GoldSeek.com
Monday, 3 April 2017

When you are playing chicken with an 18-wheeler – like a MACK Truck – you better be driving something much bigger (a gold mining truck) – or you could be hurt badly. This is the analogy I chose to make the point that the Fed’s current tightening bias will eventually work and slow down not just real economy, but the all important (to the Fed and rest of the paper game fraudsters) financialized economy as well, which may not be so easy to resurrect this time around. Because in spite of the Fed’s bullshit story, the aggregate economy is quite weak, masked by rising prices (which is just fine if you are an asset rich oligarch) – better known as stagflation.

This was not difficult envisioning for some time now, which we have well documented these past years. And now we are on the cusp of a period of increasing volatility in just about every aspect of your life – driven by a failing economy – and the Fed’s attempts to save it. Make no mistake however, the Fed is in control of nothing, as many of the disillusioned are about to rediscover. It’s amazing this could happen this way, however if you look at how distracted the average American still is today in spite of the decay which surrounds them – it’s not surprising at all.

Getting back to this chicken thing – in my estimation, what’s happening right now is because enough speculators / hedgers are betting the wrong way(s) in the larger derivatives colossus, which is underpinned in the long volatility trade (because traders know it’s just a matter of time before volatility shows up), this continues to support stock markets to this point. As is pointed out here however, this could be set to change post options expiry this week. And of course we have been on this watch in our own sentiment studies, which will be presented again this Wednesday.

The Rest…HERE

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