Stocks Rally on Lies, Fantasy, and Hope

2/26/16

What should we make of the rally in stocks, world stocks, metals, materials, oil, junk bonds, and everything else that could be counted as an asset in the third week of February, 2016? Well, not much. When central banksters want a rally, we get a rally!

The stock rally can easily be explained through ‘calendar-ization’. This is a term that I coined a few years back so if you reuse it, send me some money. What it means is this. Every year, central bankers and their shills (Wall Street, bankers, financial media) goose asset prices in the fourth quarter so investors will get a pretty statement in January. Knowing that the next quarterly statement doesn’t get printed until April, these same manipulators take off the better part of January to rest and restock their inkjet money printers. Naturally, asset prices swoon. Realizing that most investors get monthly statements as well, these manipulators go into panic mode and begin to goose asset prices to mute the damage of January. If the selling in January is too brutal, as was the case this year (2016), the manipulators hold off until February. Then we get a rerun of the same movie.

All is well. The economy is recovering. Unemployment is falling. People are getting raises. Retail sales are increasing. We are all the best looking duck in the pond. Whatever it takes. The manipulators plow into stocks at least by mid-February so that investors don’t get spooked by a double digit stock loss in the first two months of the year. If that were to happen, investors and consumers might elect to withdraw from playing in the carnival anymore. So magically, we get a February rally. Yawn. We have seen this before. 

Gasoline prices have fallen. Therefore, consumer spending should increase. Huh? We hear this all the time from the Wall Street cheerleading society. Let’s put a brain cell to work. If I have $100 dollars and gasoline costs me $20 dollars, I can spend the other $80 dollars on food, medicine, and clothes. If gasoline only cost me $10 dollars, I can spend $90 on that other stuff. However, the math does not change such that I can spend more. Regardless of what gasoline costs, I only have so much to spend in total. So, to think that lower gas prices leads to higher overall spending is mendaciously false.

Let’s look at the rally’s metamorphosis.

1/25/16: McDonald’s announces earnings. These are always fun. News articles written begin with the wonderful news that the burger chain was on the rebound with same-store sales increasing for the first time in two years. After all, McDonald’s is now a high priced Dow stock and manipulating the Dow higher means that McDonald’s has to lead the charge regardless of truth. Earnings and sales both beat ‘analyst projections’. Of course, writers these days always either omit the truth or wait until the end of the article. And there it is appearing as the last line in the article. Revenue for the company actually decreased by 3.5%. When we need a rally, all news is good!!!

Oh, I’m sure the rest of you have been worrying about this like I have but we can all rest easy now. JP Morgan announced that CEO Jamie Dimon received a nice salary increase this year. They managed to bump him up from $20 million a year to $27 million a year. Wow! That’s a nice increase for a guy who ran his company into bankruptcy in 2008 only to be rescued by the Federal Reserve’s pilfering of the US Treasury. JP Morgan was given back all the money that they lost gambling on derivatives, Mr. Dimon got to keep his job, now he gets a fabulous raise up to $27 million a year, and the US tax payers get to pay more and more taxes to pay for the now $20 trillion in debt the government has racked up saving companies like JP Morgan so people like Jamie Dimon can make $27 million a year. I’m so happy for him! Who says the Federal Reserve Bank serves no purpose? And did any of the big banks lower any of the fees that they charge us for banking? Did any of them raise the interest rates that they pay us for our piddly savings accounts? 

Johnson Controls is buying Tyco in another ‘tax inversion’ deal (like Pfizer). Johnson is a large US based company and Tyco is based in Ireland with half the capitalization of their buyer. The company will technically move headquarters to Ireland thus saving some $150 million per year in corporate taxes. Would you move to Ireland for $150 million per year? 

Stocks are rallying. Consumers are spending more and tooth fairies are leaving us all money under our pillows regardless of any extracted teeth. Unemployment is near zero and we are all getting raises. Ain’t it fabulous? Meanwhile, Walmart is closing 154 stores in the US and Macy’s is closing 40. Oil producers are laying of tens of thousands but not to worry because they can all get jobs at america’s fastest growing job producer - bar tenders and waiters. 

2/22/16: Stocks rallied. How many of the indices of the world were in the green? All of them. How many of the 30 Dow stocks were in the green? All of them. So today, everything in every part of the world was a buy? Nothing was sold? Yeah, sounds like a real ‘market’ to me.

A 16-year old Swedish girl was ‘rescued’ from ISIL in Syria this past week. She went to Syria with her boyfriend to join ISIL. She said she had never heard of ISIL before. Things didn’t work out very well for her while there. This is yet another example of the de-evolution of human intelligence. 16 years old and never heard of ISIL? Didn’t know what was going on in Syria? I’ll bet that moron knew every nuance of Facebook and could probably key in a text message on her phone in record time. Of course, what on God’s green earth would come of interest in a text from an ignoramus like that? It is this kind of stupidity that is leading us all to the brink of total debt incarceration.

The Federal Reserve is busy buying every stock it can to drive up the Shanghai Composite stock index. Uh, I mean the PBOC is buying every stock it can to drive up the Dow. Wait, wait…, it’s the BOJ buying every stock in China. Hold on. Central bankers are all the same. It is so hard to tell the difference since formerly sovereign nations no longer control their sovereignty. Without central banker intervention on a daily basis in the capital markets, citizens would be free to realize price discovery on their own and Jamie Dimon would likely not be receiving a raise this year. Yes, while to White House purveyor of fantasy fiction purports positive economic statistics, we must understand the motive. These ‘statistics’ are solely for the purpose of our psychological manipulation. This is nothing new. Please review the NAZI party in 1930’s Germany. 

While central bankers everywhere report improving economics, we must understand their statistics are just lies. The stories they tell us are simply fantasy. Economic growth is simply fantasy. Economic failure now lies at the foot of the economic keepers - the central banks. They are directing sovereign policy. They are directing data, banking, and psychology. Economic failure now would require a regime change. Central bankers would be exposed for the thieving frauds that they are. Is it far fetched to think that the same central bankers control stock indices? After all, the PBOC, the BOJ, and ECB all admit to buying stocks. The FRB does not admit to buying stocks because they know the american audience is still too stupid and has not yet caught on.

So, let’s look at a few charts to see if we can recognize a pattern here. 

Again, for the last three years, the Fed’s stories about a ‘robust’ Christmas shopping season turned out to be lies and the 4th quarter rally based on fantasy faded to a January selloff. Central bankers rested in January only to come to work in February with a fist full of money meant to rally equities. Take a look at the two-month chart of 2014 below. January falls. February rises.

DJIA Jan. and Feb. 2014.

Chart courtesy StockCharts.com

Now take a look at the same two months of 2015. Same movie.

DJIA Jan. and Feb. 2015.

Chart courtesy StockCharts.com

Now take a look at the same two months of 2016. Same movie.

DJIA Jan. and Feb. 2016.

Chart courtesy StockCharts.com

So, kids, what have we learned?

One, stock prices always go up in the fourth quarter of the year. Lies, fantasy numbers, and the Fed will see to it. Yes, the stock carnival is rigged.

Two, stock prices always fall in January. The calendar dictates that when the Fed knows yearly statements are printed, they can take some time off from their busy schedule of manipulation.

Three, stock prices always go up in February because the Fed gets anxious about investors realizing that asset prices are in a bubble. Hope for an ‘improving’ economy joins lies and fantasy to support the Fed rally attack.

The question now is what happens in March. This outcome is not so certain. One thing is certain. These serial manipulators hate negative quarterly statements so with indices still down for the year, March might again see a rally. Central bankers are not so much interested in a prolonged rally as much as they are the day-to-day manipulation of our psychology. Or, more accurately, the calendar-ization of monthly investor statements is now the lone function of the most fraudulent, corrupt, mendacious, nefarious group on the planet - the central banksters. Bear market? What bear market? Stock index correction? What correction? Nothing to see here. See, indexes only went into ‘correction’ territory for one day. And then, ssssccchhhwwwwiiiiing!!!! Weeeeeee!!! Right back up we go. See, everything changes in a day. It is all in the calendar. 

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. 

What Would Andrew Jackson Think?

2/23/16

A genius once wrote these words: “It is to be regretted that the rich and powerful too often bend the acts of government to their selfish purposes. Distinctions in society will always exist under every just government. Equality of talents, of education, or of wealth can not be produced by human institutions. In the full enjoyment of the gifts of Heaven and the fruits of superior industry, economy, and virtue, every man is equally entitled to protection by law; but when the laws undertake to add to these natural and just advantages artificial distinctions, to grant titles, gratuities, and exclusive privileges, to make the rich richer and the potent more powerful, the humble members of society-the farmers, mechanics, and laborers-who have neither the time nor the means of securing like favors to themselves, have a right to complain of the injustice of their Government. There are no necessary evils in government. Its evils exist only in its abuses. If it would confine itself to equal protection, and, as Heaven does its rains, shower its favors alike on the high and the low, the rich and the poor, it would be an unqualified blessing. In the act before me there seems to be a wide and unnecessary departure from these just principles.”

Bernie Sanders and all the ‘government knows best’ crowd should read these words. They are from the pen and mind of the last american president that actually cared about the liberty and financial freedom of his country. Of course the writer was the seventh president of the US, Andrew Jackson. These words are from his veto of the ‘Second Bank of the US’. Not surprisingly, the central bank was the wealthiest corporation in the world at the time. The current Federal Reserve Bank has $4.5 trillion in US assets and reported over $100 billion in earnings in 2015. This is what Jackson was getting at with the first sentence in the paragraph above. 

Jackson went on to write that ‘Equality of talents, of education, or of wealth can not be produced by human institutions.’ Stated differently, government cannot, and should not, attempt to affect equality in society. To Mr. Sanders’ credit, he admits to being a socialist and socialism is a philosophy of governing through government dominance and ownership for the purposes of wealth re-distribution. Mr. Sanders should note that the US was founded by our forefathers who came to America to get away from socialist, tyrannical leaders like Obama and Sanders. 

Jackson, like most of the founding fathers and framers of the Constitution, distrusted government and its inherent tendency to grow its power and constrict individual liberties. This is exactly the point that Mr. Obama seems incapable of understanding. For instance, Mr. Obama wants the government to wield more power and control over gun ownership. He tells listeners that the issue is not about gun confiscation. Mr. Obama does not understand this key point. We, or at least a great number of citizens, do not trust the US government. Our Constitutional framers did not trust the government so they sought to confine governmental powers in a legal sense. Once finished, the framers even went back to add the first ten amendments to the Constitution to further bolster individual rights. These amendments are known as the ‘Bill of Rights’. Government should not be trusted for anything. 

Hypocritically, weaponry is one of the largest contributions to US exports. Mr. Obama doesn’t want US citizens to have weapons but he is okay with the rest of the world having the latest and greatest weaponry produced. And yes, the US is the leading exporter in the world of weapons surpassing even Russia. Should US citizens surrender to the fascists who want to disarm us, liberty will be extinct. And, Mr. Obama is correct when he says he doesn’t want to take our guns away. He just wants to know who owns them so he can tax them away. This is why the government can’t be trusted. No government representative will come to our door demanding our guns. Rather, the government’s terrorist organization, the IRS, will begin sending us tax bills for the guns and ammunition that we admit to owning.

Another genius once warned us: “Unthinking respect for authority is the greatest enemy of truth.” That genius was Albert Einstein. 

What we should do is listen to the geniuses and ignore the mental midgets like Obama, Sanders, Yellen, Congress, etc…

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. 

Idiots and Imbeciles

02/5/16

Drug owner/ hedge fund manager Martin Shkreli was summoned by the village idiots of america (Congress) to answer questions about a drug his company owned. The drug was an HIV drug that he raised the price on astronomically. Mr. Shkreli took the 5th and answered nothing. He proceeded to tweet that his interrogators were ‘imbeciles’. Like the man or no, we have to respect his honesty and assessment of his adversaries. Congress, US politicians, government agencies - they are all imbeciles to the infinite degree. This is an incredibly sad time to be a citizen of such a clownish and stupid country. 

So I wanted to make a quick post on the village idiots that run the country. No, not the imbeciles in Congress. No, not the fraud that sleeps in the White House. That guy spent a day this past week in a muslim mosque berating those who may harbor prejudices against certain people espousing a particular religious faith. Admittedly, I did not watch the speech. I don’t have to. I get up and go to work everyday. The man hates me for doing so. I’ve got it. But, I would have to assume that in the interest of even an imbecilic intelligence that the man would chastise his listeners for an element of the muslim religion, or those who act in their interpretation of the religion, for hatred towards non-muslims and specifically Christians. Surely the man would point out that most of the mass murdering going on all over the globe is being orchestrated by non-Christians. Hatred is a two-way street. Surely he would point out that the Boko Haram sect in Nigeria, and aligned with al-Qaeda, is busy slaughtering Christians. The name Boko Haram basically means, ‘western education is forbidden’. Or, non-muslims are evil and should be exterminated. Surely the man pointed all this out. But let’s look at another set of idiots.

The Federal Reserve Bank runs america and they elected on December 16, 2015 to ‘raise rates’ by raising the Fed Funds target rate to .25%. Only a complete idiot like the Fed would do this. As I pointed out in a lecture that I gave in November, the Fed would ‘lower rates by raising rates’. They are so truly stupid that they don’t realize the effect of ‘raising’ the fed funds rate. What happens is the US dollar increases in value versus other currencies and that in turn pushes bond prices higher and yields lower. The chart below shows the Fed at their stupidest. In fact, the 10-year Treasury yield has now fallen some 18% since the beginning of 2016. When the Fed met in December, the 10-year Treasury yield was right at 2.3%. Today, 2/5/16, the yield is 1.8%. 

Donald Trump was 100% correct when he said a few months ago that, ‘Our country is run by very, very stupid people.’ This is why we are doomed.

There was a guy in southern California last week who donned a ‘Hillary’ shirt and went around with a clipboard gathering signatures to put a vice-presidential candidate on Hillary’s team. The candidate was none other than Karl Marx. Yes, that would be the same communist Karl Marx who has now been dead for more than a century. Hillary worshippers apparently don’t know, don’t care, whether or not Hillary’s VP is communist or even alive. That’s how brainwashed, or brain dead, these people are. Yet, a parade of idiots signed up to put Mr. Marx on the ballot with Hillary. Idiots just keep on multiplying. 

So, take a look at the chart below of the 10-year US Treasury yield and see if you can figure out if interest rates are rising or falling. One would have to be a complete imbecile, like the Fed, like the financial media, to think interest rates can ever rise again. Thus, the idiots at the Fed lowered rates by raising rates.  

How can such stupid people remain in charge of the government of a formerly free and vigorous economy? The answer is the governed have to be stupider than the governors. Watch this video for the answer: http://www.frontpagemag.com/fpm/261719/video-people-sign-petition-support-hillarys-vp-mark-tapson.

If readers watch that video, please be sure to watch to the end. Then click the video entitled, ‘Hillary Voters Love Sharia Law’. Readers will then understand that the only thing left to do is raise the white flag. It is over. America cannot survive this plague of profound, profane imbecilic idiocy. In all honesty, it may be time to re-evaluate the idea of letting everyone vote. It should be clear that the vast majority of americans no longer have the intelligence to live in a free society.

Chart courtesy of StockCharts.com

2 month 10-year US Treasury note

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.