Jazz and blues musicians alike have tried to describe the sound that makes their music unique. The great musicians play what is in their heart. They play the truth. How do they express it? They often say it is the notes in between the keys for the jazz piano players. Blues guitar players express the notes between the keys by bending the strings so that the tonal quality of a note resonates somewhere between two true notes. That’s the feel of the music. That’s what is in the heart of the player. That is where the truth is found.
In our world of economics and investments, our government is the orchestra. They play the notes that we hear. And, they have a tendency to play the same song over and over. ‘Zippity do-dah, zippity yea! There’s plenty of sunshine headed my way!’ There may be plenty of sunshine coming our way but I’ve got a feeling our gooberment leaders are just trying to blow that sunshine up ‘you know where’! If we want the truth, we have to look between the notes.
For instance, Canada just announced that their economy lost 54,000 jobs in October. That’s the most since the depths of the financial crisis and the second straight monthly loss of manufacturing jobs. Unemployment increased from 7.1% to 7.3%. The Canadian economy actually shrank in the second quarter. What did they blame for this weak economic data? A weaker than expected demand from the US. Yes, the US is the primary destination of Canada’s goods.
In searching for the truth, we would obviously not rely on the mendacious propagandists that work for the US gooberment. We have to look in between the keys. We have to get in between the notes. We know what the Canadian government said. Canada’s manufacturers are making less stuff because they see weak demand in the US. Of course, the US economy is a complete ruse and the US needs a stock rally to avert an admission of recession. The stock rally needs some good economic news. Ala-ka-dabra! The US gooberment said third quarter GDP was probably humming along at 2.5% growth. The US economy supposedly added 80,000 new jobs in October and unemployment actually fell to 9%. Nevermind that most of the magical new jobs were temporary (I’m sure these jobs were actually real) and nevermind that unemployment continues to fall even though the economy needs to add in excess of 100,000 per month just to keep up with population expansion (no, the math does not add up).
Again, Canada said demand from the US slowed and the US said everything picked up. Those are our two notes. The truth is in between them but without a doubt, the truth is not, nor ever will be, found on any note that the US gooberment strikes. So what do we do with the truth when we find it?
Set is aside. It means nothing to the advancement of the Dow Jones Industrial Average. All the Dow needs is and active Fed, a constant influx of cash from the PPT, and glorious economic news that seems to be more mendacious by the day. The truth is the stock market has no connection to the truth. It is not interested in the truth. Therefore, we should not concern ourselves with the truth either.
At the moment, the Greek debt problem is standing between us and a big stock rally. As soon as the Greek government surrenders to ECB demands that will leave Greece in a perpetual state of depression, the rest of us can take advantage of the stock rally. Greece is only a month away from running out of money. They are desperate for an EU lifeline. Next in line will be Italy. They have a much bigger debt problem than Greece and so the true economic risk goes on and on and only grows over time. The only real solution is to cut back debt and that does not serve the purposes of the central banks. The can only dominate us with debt and the populous is simply too stupid to understand that.
So, for the coming week, look for the Greek surrender and the ensuing stock rally. Forget about what Canada said. The lie that the US spouts is much more conducive to a rally.
Disclaimer: The views discussed in this article are solely the opinion of the writer and have been presented for educational purposes. They are not meant to serve as individual investment advice and should not be taken as such. This is not a solicitation to buy or sell anything. Readers should consult their registered financial representative to determine the suitability of any investment strategies undertaken or implemented. BMF Investments, Inc. assumes no liability nor credit for any actions taken based on this article. Advisory services offered through BMF Investments, Inc.