Up and Down
MUMBAI, India – The Dow dropped 208 points on Monday – or about 1.3%. After last week’s pause, it will be interesting to see if the sell-off resumes.
“Global equities in turmoil,” reads a CNBC headline.
“A month after raising rates, Fed faces darker global economy,” suggests an AP newswire report. Neither of these is true. The world has not changed significantly in the last month.
What has changed? The squiggly lines are going down instead of up….
Photo credit: Richard Drew / AP Photo
As we reported, world economic growth was fading then, too. Junk bonds were in trouble then… just as now. There was no real recovery in America, then or now. And Sarah Palin is just as entertaining. We’ll get to her in a moment… but first more on the current market situation.
Equities aren’t in “turmoil,” despite the press claims. They are simply going down.
We explained it to a reporter from the Economic Times of India yesterday:
“No reason to overthink it. Markets go up, and then they go down. And when you diddle interest rates to make money cheaper than it ought to be, you’re going to get some action.
The first thing you’ll get is higher prices, as the cheap money chases returns in the stock and bond markets. The second thing you see is lower prices as the booms and bubbles eventually correct. No mystery to it. Night follows day. Busts follow boom. Credit contractions – with lower prices – follow credit expansions.”
The reporter was unsatisfied.
“What can policy makers do to prevent a sell-off?” he asked.
We smiled. That’s as far as he wanted to go – about a quarter of an inch into a subject that is 10 miles deep. In the mind of the popular financial press, and most of the investing public, the markets are no different from computers.
When something isn’t working properly, there must be a technician with the answer. There must be some buttons you can push. There must be some trick to getting it working again.
“Nope. You can’t always escape the consequences of your mistakes,” we began. But we let it go there. No point in trying to go ab ovo… back to the egg… to explain this fowl market. Keep it simple.
An unexpected, and generally unwelcome guest comes for dinner… self-invited, evidently.
Image credit: Hemera Technologies—Getty Images
In Praise of Palin
Back in the US of A, we are delighted that Sarah Palin has the public’s ear again. We’re often not sure what she is trying to say. But it doesn’t matter. With Palin, it’s not the thought that counts. It’s the lack of it.
She aims for simplicity, too – a smart move, since there are easily enough simpletons in the U.S. to elect a president, vice president, and an entire Congress.
Sarah Palin: for some reason, she seems to be permanently in a good mood. Perhaps she fell into a vat of chemicals, like the Joker?
Phot credit: AP
We always come to the defense of the poor, the despised, and the hopeless halfwits. We’re pretty sure Palin fits in there somewhere. So, today, we come not to laugh at Ms. Palin but to praise her.
We weren’t able to hear Ms. Palin’s endorsement of Donald Trump last week. But we thank Sam Leith, a scholar of rhetoric, for helping us deconstruct it. The speech was such a wonder of “oratorical eccentricity,” he wrote, “that it seems very likely she wrote it herself.”
Listening to a moron give a political speech is like watching a blind person do home electrical repairs: You know there are going to be some shocking and amusing incidents.
“Trump’s candidacy,” announced Ms. Palin, “it has exposed not just that tragic ramifications of that betrayal of the transformation of our country, but too, he has exposed the complicity on both sides of the aisle that has enabled it, okay?”
What does that mean? We don’t know. But Mr. Leith tells us it was an “anacoluthon,” which he describes as a sentence that “sets off boldly in one direction and, with a wrench of grammar, jumps the tracks and ends up pointing in another.”
We still don’t know what Ms. Palin meant to say. But at least we now know that there is a word for the disease that caused it.
It doesn’t have to mean anything anyway. There are apparently no complex ideas in Ms. Palin’s pensée worthy of careful explication. Instead, her brain simply stews the patriotic patois of the rural right wing and dishes out the words and phrases primary voters want to hear: “commander-in-chief,” “you betcha,” “families,” “make America great.”
There is one group of Americans supporting Ms. Palin wholeheartedly…
This cafeteria also produces some juicy linguistic innovations.
“Are you ready to stump for Trump?” she asked. We don’t know what that means either. “Give money to” – as in “plump” – is one possible interpretation. “Stand up for” – as in “mount a stump” – is another possibility. We don’t know.
She also invents a new word: “squirmish.” Huh? Don’t overthink it. It works for us as is. We are adding it to our own lexicon, along with her previous neologism “refudiate” and G. W. Bush’s classic “misunderestimate.”
Shakespeare invented dozens of words. Why not Sarah Palin?
Ms. Palin herself evidently recognized her strong affinity with Shakespeare – yes, she actually tweeted that….
Sarah Palin caught in a quiet moment, engrossed in a hitherto unknown Shakespeare play….
The above article originally appeared at the Diary of a Rogue Economist, written for Bonner & Partners. Bill Bonner founded Agora, Inc in 1978. It has since grown into one of the largest independent newsletter publishing companies in the world. He has also written three New York Times bestselling books, Financial Reckoning Day, Empire of Debt and Mobs, Messiahs and Markets.
Dear Readers! We are happy to report that we have reached our turn-of-the-year funding goal and want to extend a special thank you to all of you who have chipped in. We are very grateful for your support! As a general remark, according to usually well informed circles, exercising the donation button in between funding drives is definitely legal and highly appreciated as well.
Bitcoin address: 1DRkVzUmkGaz9xAP81us86zzxh5VMEhNke
2 Responses to “In Praise of Sarah Palin…”
Most read in the last 20 days:
- How the Welfare State Dies
Hollande Threatens to Ban Protests Brexit has diverted attention from another little drama playing out in Europe. As of the time of writing, if you Google “Hollande threatens to ban protests” or variations thereof, you will find Russian, South African and even Iranian press reports on the topic. Otherwise, it's basically crickets (sole exception: Politico). Gee, we wonder why? They don't like him anymore: 120.000 protesters recently turned Paris into a war zone. All...
- Toward Freedom: Will The UK Write History?
Mutating Promises We are less than one week away from the EU referendum, the moment when the British people will be called upon to make a historic decision – will they vote to “Brexit” or to “Bremain”? Both camps have been going at each other with fierce campaigns to tilt the vote in their direction, but according to the latest polls, with the “Leave” camp’s latest surge still within the margin of error, the outcome is too close to call. The battle lines are...
- Going... Going... Gone! The EU Begins to Splinter
Dark Social Mood Tsunami Washes Ashore Early this morning one might have been forgiven for thinking that Japan had probably just been hit by another tsunami. The Nikkei was down 1,300 points, the yen briefly soared above par. Gold had intermittently gained 100 smackers – if memory serves, the biggest nominal intra-day gain ever recorded (with the possible exception of one or two days in early 1980). Here is a picture of Haruhiko Kuroda in front of his Bloomberg monitor this...
- A Market Ready to Blow and the Flag of the Conquerors
Bold Prediction MICHAELS, Maryland – The flag in front of our hotel flies at half-mast. The little town of St. Michaels is a tourist and conference destination on the Chesapeake Bay. It is far from Orlando, and even farther from Daesh (a.k.a. ISIL) and the Mideast. St. Michaels, Maryland – the town that fooled the British (they say, today). Photo credit: Fletcher6 Out on the river, a sleek sailboat, with lacquered wood trim, glides by, making hardly a...
- Rule Britannia
A Glorious Day What a glorious day for Britain and anyone among you who continues to believe in the ideas of liberty, freedom, and sovereign democratic rule. The British people have cast their vote and I have never ever felt so relieved about having been wrong. Against all expectations, the leave camp somehow managed to push the referendum across the center line, with 51.9% of voters counted electing to leave the European Union. Waving good-bye to...
- The Problem with Corporate Debt
Taking Off Like a Rocket There are actually two problems with corporate debt. One is that there is too much of it... the other is that a lot of it appears to be going sour. Harvey had a good time in recent years...well, not so much between mid 2014 and early 2016, but happy days are here again! Cartoon by Frank Modell As a brief report at Marketwatch last week (widely ignored as far as we are aware) informs us: “Businesses racked up debt in the...
- The Fed’s Doomsday Device
Bezzle BALTIMORE – Barron’s, in a lather, says the market is facing the “Two Horsemen of the Apocalypse.” Huh? Only two? There were four last time! Supposedly, the so-called Brexit – the vote in Britain this Thursday on whether to leave or remain in the European Union (EU) – and uncertainty over where the Fed will take U.S. interest rates are cutting down stocks faster than a Z-turn mower. But Brexit is a side show. As our contacts in London...
- In Gold We Trust, 2016
The 10th Anniversary Edition of the “In Gold We Trust” Report As every year at the end of June, our good friends Ronald Stoeferle and Mark Valek, the managers of the Incrementum funds, have released the In Gold We Trust report, one of the most comprehensive and most widely read gold reports in the world. The report can be downloaded further below. Gold, daily, over the past year - click to enlarge. The report celebrates its 10th anniversary this year. As...
- Janet Yellen’s $200-Trillion Debt Problem
Blame “Brexit” BALTIMORE – The U.S. stock market broke its losing streak on Thursday [and even more so on Monday, ed.]. After five straight losing sessions, the Dow eked out a 92-point gain. The financial media didn’t know what to say about it. So, we ended up with the typical inanities, myths, and claptrap. “Investors” are pushing the DJIA back up again..apparently any excuse will do at the moment. The idea may backfire though, as exactly the same thing happened...
- Gold and Brexit
Going Up for the Wrong Reason Gold is soaring. It should—and a lot—but in my view not for the reason it is. Indeed gold is insurance for uncertain times, a time that Brexit seems to represent. But insurance is an administrative cost — one must minimize its use. August gold contract, daily – gold has been strong of late, but this seems to be driven by “Brexit” fears - click to enlarge. Moreover, insuring against Brexit might ironically be equivalent...
- Vive la Revolution! Brexit and a Dying Order
A Dying Order Last Thursday, the Brits said auf Wiedersehen and au revoir to the European Union. On Friday, the Dow sold off 611 points – a roughly 3.5% slump. What’s going on? Surprise winners of the “Britain has political talent” contest... In Europe and the U.S., the masses are getting restless. Mr. Guy Wroble of Denver, Colorado, explained why in a short letter to the Financial Times: The old liberal world order is dying because the...
- Brexit Paranoia Creeps Into the Markets
European Stocks Look Really Bad... Late last week stock markets around the world weakened and it seemed as though recent “Brexit” polls showing that the “leave” campaign has obtained a slight lead provided the trigger. The idea was supported by a notable surge in the British pound's volatility. Battening down the hatches... On the other hand, if one looks at European stocks, one could just as well argue that their bearish trend is simply continuing – and...