Friday, August 17, 2012

Telling Tall Tales

Stock indices are driven and controlled by central banker action. Everything else is either minor or insignificant. For instance, the current rally is all based on anticipated central banker ‘stimulus’. The ECB’s Mario Draghi talked (manipulated) world indices higher a few weeks ago as he announced his bank was ‘ready to act’. He also said that his bank could do plenty. In concert, the Fed’s Ben Bernanke announced that his bank was willing, able, and ready to do anything necessary to keep the Dow up. Uh, I mean he said his bank was willing to do anything to manipulate stock prices higher from now on. Uh, I mean he said some kind of blabber about helping the economy but we are all adults here. We know that Mr. Bernanke and Mr. Draghi care nothing about economies or citizens. They only serve to manipulate stock indices higher. Thus, they ‘jawbone’ about committing more ‘stimulus’ as long as they get away with it. Then if needed, they furtively filch some money from unsuspecting and woefully ignorant citizens. They then give the cash to their bankster partners who goose the stock and bond markets. This works to keep the ignorant public distracted as to the real con game. But the point is simple. The only thing that matters to stock index direction is central banker intervention. And, right now, we have plenty of that.

At the same time, we do have some economic data that should arouse suspicion. The ‘data’ is most likely just more of the tall tale that government likes to tell because they want to control the citizenry. Since the central bankers are manipulating stock indices higher, they of course need some corroborating economic evidence to justify the rally. Enter government ‘statisticians’. 

This week, we were told of an ‘unexpectedly strong’ rise in retail sales in the US. Really? Then the biggest retailer of all should be doing great, right? Walmart sells more than the next four or five biggest retailers put together. Yet Walmart has reported that in the second quarter, same-store sales actually fell by over 2%. 

We have been getting inundated by the ‘improving’ real estate picture news. Housing is in ‘recovery’. Yet, housing is hardly even making a blip of a bounce from its multi-year descent and mortgage delinquencies are again on the rise. This week unemployment claims rose across the country yet consumer confidence ‘unexpectedly’ rose. What? More people are getting more behind on their mortgages, more people are applying for unemployment, yet we are supposedly spending more money and our confidence is rising? Really? Maybe confidence is rising because citizens know an election is coming in which we get a chance to oust the disrespectful condescending business hater who sleeps in the White House. Anyway, none of the ‘data’ makes any sense. 

A byproduct of central banker manipulation is most stock indices are rising together. Spain may be broke, insolvent, and entering a depression but it matters not when it comes to stock indices. As I pointed out last week, the EWP rises along with the Dow. Weeeeeeee!!!!!

The tale tales the government tells are simply the narrative the central bankers need to mask their manipulative efforts. We should ignore the complete fantasy that comes from government. Not that any ‘data’ matters. It could all be bad and the indices would still march higher. Only bad data and higher indices would eventually raise the suspicion of manipulation to even the stupidest investor. It might even raise the suspicion of an amerikun. Nah, as long as the Dow moves higher, they are happier than they are dumb.

Finally, the government claims that inflation is tame. Really? Gee, just in the month of July, corn prices rose 22%. I have read that 70% of what we buy in the grocery store is corn related. In addition, 40% of US corn production goes into ethanol that in turn goes into gasoline production. So, the price of corn went up 22% in a month and inflation is still tame? Yes, gasoline prices also moved up about 5% for the month of July as well. None of us should ever pay any attention to the government’s CPI numbers ever again. They are a bogus lie. 

Seeing is believing. Below is a chart of the price of corn. Nothing else needs to be said. The US government is simply a liar. This chart shows first how preposterous the US regime is for trying to sell the ‘no inflation’ tall tale. The corn chart shows the effects of central banker manipulation. Their money creation machine, while it enriches their bankster friends, creates inflation. Corn prices have risen four-fold since 2006 and look poised to make new highs very soon. Thank you Mr. Bernanke! Can I have another?

Oh yeah, the indices are rallying on the prospects of more Fed manipulation. I just hope none of my readers like to eat corn! The chart does not lie.

Corn - last 10 years ending 8/17/12
Chart courtesy

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.

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