Weekend Dedication/Inflation

This blog appeared 11/11/16 at Trader Scott"s Market Blog.

These weekend dedications are done in the style of the great Casey Kasem who made them very popular when, for many years, he hosted the American Top 40 radio show. But the difference here is these are mocking dedications instead. They mock the globalist, neocon elitists and their puppets. While also highlighting their agenda attempting to control and exploit the rest of us. For example: What"s the deal, Barry Soetoro, with that funky odor? or Who was the real Prez from 2001-2009?  The globalists had the wind at their backs for many decades until President Reagan, but he proved to be only a minor threat to them. And after President Reagan, they got way too greedy. Now Donald Trump is a much bigger threat to their agenda. But he’s only the face – the real problem confronting them is that enough of the masses are fed up with the old order of doing things, and desire/yearn for REAL change. The elitists were completely focused on defeating Trump, and seemed to be oblivious to the actual threat – the revolt of the masses. And they ain’t seen nothin yet. The 35 year bond bull market (falling yields) has gotten us intoxicated and addicted to/comfortable with amassing DEBT of any kind. So the opiate like effects of the ultra low yields have helped to calm and soothe us. However, that is soon to change in a huge way. Trend extrapolation is one of the biggest mistakes we make in markets. And a 35 year bond bull market can certainly get almost everyone to assume low/zero rates will extend basically forever - because, of course, the CBs can extend and pretend as long as they want. At least that is the basically omnipresent belief. But it"s wrong. I believe in supply and demand (nature), I have zero faith in governments and CBs. And now it is the death of this humongous bond bull market which will slowly destroy the widespread belief in low inflation/"deflation" (allegedly) to stick around basically forever. I have been arguing for a long time, it is the rising rates (on the long end) which will bring about the inflation. The low rates allowed the huge inflation to mainly infect the financial asset markets and also the collectibles. It is the persistent rise in long term yields which will suck much of the inflation out of financial assets and will begin to "deposit" (infect) the huge inflation into real assets. The bottom in inflation, as well as in commodities and PMs is in 2016. From 2017 onward, commodities will be big beneficiaries from the massive capital leaving global bond markets. 

But, I"m being rude, this weekend dedication is for the vivacious and beautiful Hillary Diane Rodham Clinton (and I will borrow from this previous dedication). As we all know, Mrs. Rodham Clinton is a devoted environmentalist and is also a true advocate for global warming, oops excuse me, climate change. Diane is also devoted to helping women, minorities and homosexuals. She has been accused of taking bribes from countries whose official policies target those three groups with horrific consequences. Well I’m outraged at such lies, and it must surely be nothing than a vast right wing conspiracy.  And of course, she is also devoted to helping the least fortunate among us. I was so excited for the prospect of having our first female President. It is something which has been long overdue. In fact, in my view, she should have just been crowned President for life. Especially since the always honest and unbiased polls showed ubiquitous support for Diane. Why was Hillary Diane even forced to go thru the grueling election process. That proves we live in a misogynistic culture and the proverbial glass ceiling is still intact. I"m outraged, I tell you. Outraged! So we all know the racist Donald Trump stole the election from Hillary Rodham. How else could she have lost. Everyone loves her. So Hillary Diane Rodham Clinton, this song is for you, my dear.