The 'Weekend At Bernie's' Economy

Amid last night's staggering 7.3% drop in Japan's market, the Nikkei in only one trading day and the fact it Should have pulled this market down with it, a small group of us were sitting around trying to analyze it.

One astute colleague summarized it so succinctly:

"We are living through a 'Weekend at Bernies' economy.

For those not familiar with the 1980s film, the basic plot involved two losers who make a serious financial error while working for Bernie.  He pretends to be thrilled and invites them over to his beach house for the weekend but in reality is going to have them killed.

What ends up happening is Bernie himself is killed due to a Mafia hit because he's having an affair with the mob boss' wife.

OK, now the plot itself is irrelevant to what we're referring to..  That was just provided to familiarize those who may not quite have remembered this comedy.

Here's the relevant part:  These two losers take this dead guy Bernie; this motionless corpse and keep him 'alive' for the weekend.

So Bernie is propped up, carted around..  Everyone who interacts with Bernie is so deeply stupid, they buy the premise and accept he's alive.  Some characters in the film even have lengthy one-sided conversations that go on and on while completely oblivious.

And that's our economy.

The two losers are played by a bearded soft-spoken loser named Ben Bernanke who has taken a dead stock market and given it a fake 'life' and all the genuinely stupid people-- the amateur investor, the common folk who judge the success of the economy by a Dow number, etc.. they have swallowed this up.

The professional Investor, banks, major corporations, hedge fund managers, derivatives traders, etc... They all know 'Bernie' is dead as a donkey.  But it serves their nefarious purposes to not only play along but encourage the ruse.

We make no secret of this-- we want the market to drop precipitously and for extended duration...  We want the stock market to once again accurately reflect the True state of the US economy.

And if/when our desires become reality, you will see the market drop from this artificial 15,300 or such to the 7,500 to 8,000 range.

That is where the market should be because That is where the US economy is.

We don't want the economy where it is now.. this Fiction.  We want to see these super-wealthy people lose Everything ideally and end once and for all, this confidence con-game of carrying around a flat-lined economy and dancing it around like there's a pulse.

And as long as Fed Chairs can manipulate the stock market to give the ruse of 'recovery' and it bumps up Presidential and Congressional polls, very little to nothing will ever be done legislatively to pass bills that create jobs or much of anything the bottom 99% can feel.

Remember the vast majority of Congresspeople of both parties are Filthy rich multi-millionaires.  Even President Obama has a net worth of over $6.5 million mainly due to the success of his books.

Where do these wealthy people keep all their money?  In banks??

No-- the stock market.  So they will do whatever is necessary i.e spend whatever is necessary... Spend billions or trillions or even quadrillions to protect their millions.  

And why not go all-in?  Its taxpayer money, not theirs.

And if it takes carrying around a dead 'Bernie' and flailing its arms all about to give the appearance of life, then that's what they're going to do until they're either stopped or its no longer in their interest...

When enough everyday American suckers prop up the market by investing their sacred nest-eggs and re-stimulate the economy via debt-based consumption, then the financial elite can put 'Bernie' back in the box

We want this stock market to Crash badly..  You really should to.

The Monthly Straw Poll Called Consumer Confidence

Straw Poll definition:  "An unofficial vote taken to obtain an indication of the general trend of opinion on a particular issue"

That fake phony market keeps going up n' up..

All that free Fed money will tend to do that.. As long as the champagne keeps flowing for free, there's always going to be gullets open wide to receive it all.

But there always has to be assigned an official 'reason' each trading day why stocks do as they do.

Ever notice that?  We always need reasons for things..  A sick person can hatchet up his/her family while sparing the loyal dog, Sparky and we all need to understand the reasons behind the madness.

Reasons seem to make everyone feel better.

So today's 'reason' this market rose:  Consumer Confidence -- why haven't you heard??  May reports the highest figures in six years!  See the experts expected a number of 78 and instead, it was 83.7 meaning of course Americans felt better about their financial and economic prospects..

And that was just what the doctor ordered to give trader rats and other sewage the 'feel good' to buy more stocks....

Of course when it drops next month, it will be dismissed then ignored.

Gotta only accentuate the positive.. eliminate the negative..

Of course that 83.7 is utter bullshit..  Shhhhh!  Don't tell them that..  Let it be our little secret between us..  They'd only laugh at you anyways...

By the way, ever wonder how that Consumer Confidence Board comes up with the data it announces each month?    We'll tell you..

The Board takes surveys via telephone to ask people who don't seem to mind being disturbed during the dinner hour, their views of the economy.

And ever wonder many people they poll to get an accurate barometer of the consumption and shopping mood of 310 to 315 million people?

Do they poll 50,000 people?  100,000 people?  500,000 people?

Nahh.. too much work.

They poll 5,000 people.

Based on 310 million Americans, statistically that comes to 0.000016%

That's 16 hundred-thousandths of 1 percent of Americans surveyed...  And we are to believe the market rises 50-60 points off that?

Here's some basic Economics 101 to better explain this evil market:

The price of everything is determined by supply and demand.  No exceptions to the relationship between supply, demand, and price.

Now prices can't be faked but can be manipulated.

It requires either soaking up supply (e.g., the Fed buying $85 billion a month of paper) or increasing demand (e.g., paying $150 for a dozen roses because it's Mother's Day).

And because of all this free money flowing into all the stock markets around the world, its causing buybacks of stock.   Last year alone, $384 billion of shares were repurchased.  In addition there were about $40 billion worth of IPOs (Initial Public Offerings) in 2012.

So to put it simple,  supply of shares is shrinking. and demand for stocks is rising. Money is going into equities, thus creating the growing demand.

There's just too much liquidity in the markets and like food left on the floor overnight, every rat and roach is coming out of the woodwork to get their 'cut'.

And really that's what they are.. let's not sugarcoat it..

Those who profit from the market.. Who make their livelihood daily from it..  from the Fortune 500 big wigs in fancy suits to the common dirt on the trading floor screaming Buy/Sell! all day...  they're vermin.

So we get back to a point we make repeatedly here -- what is the motivation for anyone in any position of power to do anything to make our lives better as long as the barometer that most naively believe represents the state of the economy, is shining strong?

What is the motivation for government to create jobs?  What is the motivation for private sector companies to hire outside of temps and part-timers?

As long as the average John and Jane Dumm believe we're in recovery or worse yet, that 'Ohh, recovery just around the corner.. I can see it.. small gleams.. Its just about to make that turn.. wait for it-- wait for it!' ...

We as a nation have no hope of anything ever improving in reality.

Squeaky wheels always get the grease.

Help Wanted: Seeking those with 'David'-like Spirits (must bring your own slingshot)

We at A&G are a pretty relentless and pugnacious bunch..

We know the easy thing would be to write articles that support the 'recovery' narrative.. Write some complimentary pieces on the Fed and banks..  Who knows, maybe throw in a couple daily stock tips for good measure.

Sure we'd ultimately be complicit when the market does dramatically drop and everyday people lose in days what took years  to accrue, but for the moment, it sure would make us popular with the majority.

That would be the easy way.

Just not our style.   We'll keep shouting that the supposed opulently adorned 'Emperor' is completely utterly bare-bottomed naked with tiny-weeny tally-wacker dribbling about until people begin to see the truth of things.

No problem can ever be addressed if never acknowledged.

You see the market go up, and if that's all you know, you assume all is well.

And the media will spout off for good measure, some stats showing job growth or confidence rising to emphasize the point that all is well.  

The term is 'synergy'-- various forces that appear different but really are similar an working together for the same ultimate goals.

For example when you watch Saturday Night Live which is on NBC and the host is the star of one of NBC's comedies and that actor or actress appears on NBC owned talk shows earlier in the week to promote the show...

That's a form of corporate synergy.

The mainstream media works in concert with Wall Street corporate and governmental interests to keep people calm and docile.  This is not hokum.  Its part of the FCC pledge every network must adhere to in order to renew their licensing.  

No entity under the control of the FCC can push forth any ideologies or agendas that stir others into agitation against the Government or to provide any content or points of view which would incite or encourage rebellion among the populace against the State.

This is why there is really no debate in news beyond 'Left' vs 'Right' and why no information is ever presented to the public to cause fear or a lack of confidence in government to solve problems.

For instance, in Cyprus, a full month after capital controls were put into effect to control how much a depositor could access their own money, the government knows the people do not trust them or the banks and the first opportunity they get, they'll Smartly pull their money out.

So Cyprus officially has decided it will simply keep currency controls in effect indefinitely or until trust in the banks has recovered sufficiently because the nation can't afford people rushing in and protecting their remaining assets.

Sorta chicken/egg.. Which comes first, the trust or the freedom to access one's own money without fascist restriction?

No one in America ever talks about a situation like this becoming a realistic possibility one day if the economy implodes upon itself, and these things usually happen without very much warning.

The media will spend 24hrs a day covering a tropical storm or 4 inches of snow and give a million tips for preparation but never a word uttered when it comes to financial survival.  Show me a media outlet that even suggests you should withdraw all non-essential funds from the banks and that will be the First!

Here's the true state of the US economy and by extension the global economy:  All those paper bills and coinage in one's pocket-- they're backed by nothing.  

They only have value so much as others place upon them.  It is the illusion of value in currency and the faith that those pieces of paper can be used to buy products and services which keeps the game going.

Without it, US dollars are as worthless as Confederate dollars.

The Fed prints and prints for purposes of directly benefiting a select few while giving illusion it is to benefit all and keeping up the lie their #1 goal is job creation.  Its all to benefit the banks but that's specifically why the Fed was chartered in 1907 -- to be the financial backstop for banks while run by banks.

The reason there are no overt bread lines for miles and soup kitchens feeding the masses is due to food stamps, welfare, social security and unemployment.   The number of individuals who receive at least one form of benefit from the government to survive is over 100 million people... 1 in 3.

The reason we haven't collapsed yet as a nation as prices go up on everything from food to clothing to healthcare while wages have stagnated is due to access of credit to fill the fiscal void.

We are a society that has devolved from a nation of savers to living paycheck to paycheck to now biding time before the next paycheck comes via credit cards, payday loans, etc..

As long as government can profit from this, it will never do a single thing ever to fix this brutal hardship.

We hire more people today than four years ago but always in the direction of sellers rather than creators or designers; always jobs available that are far below the education one spent a fortune to acquire in college...  

Always temp jobs with no benefits, protections or security.

And employers are always cutting back those hours.   The new 'full time' laborer works 35hrs a week.  This ensures that no overtime is ever paid to anyone.

Shall we go on?

The goal here is not to sadden or depress.. it is to evoke anger!

Anger at your President... At your political party (D or R, couldn't care less)  Anger at the system-- your boss who exploits.. your government that uses you for their need and gives little in return back..

We've mentioned this before--  the Total and we mean TOTAL outstanding debt among all American citizens i.e. mortgages, car loans, student loans, credit cards, etc equals around $2.76 Trillion.

The Fed has spent over $4.5 Trillion since 2008 to help the banks.

If the Fed paid off every US citizen's debt load so we'd all be at Zero, money which would go to the banks anyways, the Fed would still have and an additional $1.8 Trillion or so to do QE and all their other nefarious schemes...

But we're all kept out of the loop so intentionally by those in power and the media, we as a people don't even know what to demand and have absolutely no unity or common purpose to present grievances and seek redress.

Exactly as they want it.

So we at A&G are facing quite a Goliath..

But this is one fight where 'David' is going to need some help...