Don’t Be Fooled By The Smokescreen, The Economy And The Dollar Are Collapsing, And There Is No Way Out Of The Mess
Saturday, November 9, 2013
The corporate media has been pumping the American people up with the job numbers. They are trying to convince the American people that the job market it picking up and the economy is recovering. Iran and the US are in peace talks about nuclear weapons but this is just a smokescreen for peace. The central bankers/US government realize the dollar is collapsing, the economy is collapsing and there is no way out of the mess. So the next step to show the world that they do not want war and stage a false flag event to show that Iran couldn’t keep their end of the deal.
There Are Numerous Fundamental And Technical Signs Of A Vulnerable Market
Although the financial media attributed today’s steep market decline to the “strong” growth in 3rd quarter GDP that supposedly makes earlier Fed tapering more likely, we doubt that this is the case. As numerous observers have already pointed out the underlying details of the GDP report were not only quite weak, but pointed to even less growth in the current quarter. Notably, the 10-year yield was down today, indicating that the bond market seemed unconcerned by the prospect of economic strength. In our view the decline was foreshadowed by the recent weak technical condition of the market including the “nothing can go wrong” attitude reflected in various current sentiment indicators. In addition, contrary to consensus opinion, market valuations are significantly higher than historical norms on a wide variety of measurements.
As widely reported, 3rd quarter GDP details continued the sluggish pace seen since the 2009 recession bottom. Although top-line growth of 2.8% exceeded forecasts of 2.0%, the entire overshoot was attributed to the largest increase in inventories since the 1st quarter of 2012. Consumer spending, accounting for 68% of GDP, rose by only 1.5%, the slowest rate in three years, while business spending on equipment was down for only the 2nd time since the start of the recovery.