Monday, September 22, 2014

The Real DOPE


The DOPE (Department Of Pathological Embellishment), or as some people still prefer, the US Commerce Department, said retail sales grew in August at a .6% clip. Sectors that reported negative sales were department stores and general merchandise. Gasoline was the only other sector to report negative sales for the month. Yeah, I know. I should always give readers a chance to finish their belly-laugh when I even mention the US Commerce Department. The Nazis had their own propaganda department that they used to try and form public opinion. The US regime has what I refer to as the DOPE. Truth is meaningless and frankly despised by the US government and certainly all departments of the regime must do what they can to sell the citizens on the economic nirvana that the regime wants us to believe. Of course, it is kind of hard to believe retail sales rose when department stores and general merchandise retailers reported negative growth. What does the DOPE use for data? Okay, that was pretty funny. Data is not an issue here. Numbers are just numbers and the DOPE has no problem making them up. Personally I have always listened to the companies themselves that sell things to the public. 

The biggest retailer of all, Walmart, has not said that sales picked up. In fact, Walmart has reported seven straight quarters of declines in sales and foot traffic. The biggest restaurant retailer in the country, McDonald’s, just reported a sales decline. The parent company of Olive Garden is desperately trying to halt the restaurants declining sales. The DOPE even claimed that technology sales picked up in August. Tell that to Radio Shack who said on Thursday that they were headed to Chapter 11 bankruptcy. Interestingly, and bubblicously, the stock of Radio Shack leapt higher by 9% on the day! I could go on but who cares? Stock indices no longer seem tethered to fundamentals or truth or anything but Fed manipulation. 

The reason for all this is simple. The US is now ruled by an elitist group who are driven by political power. They have no desire, intelligence, or knowledge to affect positive changes for the populace. These elitists are slaves to the banks that own them. As such, war is good for banks because they loan money to the military machinery. Thus, the US regime tried to start a war with Russia in the Ukraine. They tried to start a war with Syria. Now they have succeeded by giving the gang known as ISIL birth. The key was toppling the governments in Iraq and Afghanistan and Ukraine and Libya and Egypt and …, well, where ever necessary to promote more war. And the US regime has the gaul to chastise Russia for annexing Crimea! 

This is, of course, just a ruse to further the Fed’s pilfering of the US Treasury so they can further enrich their bankster partners. Simply giving big banks immunity from law, natural economic force, and integrity should be enough. But no, the regime has to give them all the money too. Should the populace ever engage a brain cell, as unlikely as that is, there would likely be some resistance to the regimes actions.

What do we do this week? 

First, this coming week is the last full week of September. The key to fooling all of the people all of the time (yes, Lincoln was dead flat wrong) is to keep the positive quarterly investor statements rolling. Statements will be going out to investors in early October so the Fed will make sure not to lose the third quarter’s paltry gains in the last week of the month. So, we should expect a stock rally to put lipstick on the pig of the quarter. At worse, the Fed will make sure not to allow much selling to pull the Dow below its June ending mark. 

Second, there is somewhat of a cease fire in Israel-Palestine and the Ukraine. Scotland voted to remain subjects of the UK so all is well geo-politically. Domestically, nirvana has taken control of the US economy. There is a new high mark for wealth, everyone that wants one has a job and everyone is making more money. Corporations are earning more money than ever before and they are doing so by not raising prices as evidenced by the zero inflation as reported by the DOPE. At the same time, Japan’s economy has flattened and China’s economy continues to slow. There is a slow recession building in South America and Africa is paralyzed by the terrible ebola virus in the western part of the continent. Europe is in a recession and the ECB’s response has been to give banksters more free money. Sound familiar? 

So, things look pretty positive for the coming week. The vitality of the US economy rests squarely in the hands of the Federal Reserve Bank. Chairwoman Yellen has been pretty clear, I think, in her affirmation that she will not allow any bank to suffer from a limitation to currency. The Fed will continue to support the banksters even as the current round of QE comes to an end. Ms. Yellen made it clear that the next step would in fact be to raise the fed funds interest rate but that time is far in the future. And, interest rates will rise very, very slowly.

This is what will drive stock prices higher. Of course, Ms. Yellen does not know it yet but the Fed will, after they make the horrendous mistake of raising rates based on rosy economic data of which they themselves help to construct, turn course and bring back another round of QE. 

Lastly, we should all keep something in mind. Derivatives brought down the house in 2008 in part because Ms, Yellen’s predecessor, the Bernanke, began raising interest rates in a country already trillions in debt. Big banks all have more derivatives now than they did then. Typically, derivatives are interest rate sensitive. When rates rise, derivatives kick in. Fortunately all the derivative issuers have insurance to back up their derivatives that they would likely have to pay out in the event of a rate increase or two. Unfortunately, none of the insurance companies have enough money to cover the derivatives they will be required to pay out. 

Uh-oh! Now who is the real DOPE? 

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. 

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