Plunge Protection Team Week

                   Key Market Metrics                                                                                   

Were it not for stocks I would have had to say it was a risk-off week. I’ll say it was a risk-off week anyway because we all know that the stock market is a manipulated market with the Plunge Protection Team (PPT) and the Fed doing whatever it takes to try to keep the bottom from falling out of the markets. And even if the rise in stocks was not attributable to the PPT, the Fed is always there to pump money into U.S. markets or foreign markets with endless printing-press money sending good money after bad, in a process that will continue to destroy capital as America slides down and soon I’m afraid will plunge down a very deep slope.

Another reason I will say it was a “risk-off” week is because my IDW shown on your left fell from 141.22 last week to 138.54 this week. Regarding the equity markets, it’s only the real monopoly companies (the FANG stocks) and a consumer proxy in my IDW (Walmart) that are holding the equity market up.

As you can see on your left, leading economic indicators have also plunged over the abyss and that chart looks very much like a chart published yesterday that shows consumer confidence has also plummeted to levels akin to 2008. We as a nation are in big trouble but as the bottom 60% of our population lose their lives and their livelihoods, the Fed and top 10% cheer the stock market’s rebound. Somehow this disconnect between the stock market and the real world will be reconciled and when that happens there will be a day of reckoning in this country that may very well surpass the 1930s when Americans were a much more stout, robust, rural, independent citizenry who saved for a rainy day and depended on themselves, not their government, for their well being. Moreover, the United States was then an ascending power as a net creditor nation to the rest of the world, unlike our current country that has depended on nations like China, which we are now virtually at war with.

About Jay Taylor