13 May 2015

SP 500 and NDX Futures Daily Charts - History Repeats - Grapes of Wrath

Export-Import prices this morning came in weakly, showing little upward pressure on monetary inflation.  
Retail sales however came in badly and that gave the markets the shakes.
The Atlanta Fed's model of forward GDP is showing 2Q at about 0.7 percent.   Hardly the kind of number favoring a policy of tightening.
And so the dollar slumped and stocks initially soared along with gold and silver, because although the Fed would still like to throw a token rate increase our way, the fundamentals of the economy are starting to not only deny the recovery story, but are starting to signal a recession.
In addition to the consternation about where to invest, the leadership elite of the West needs to start considering why their policy of the last twenty years or so has been such an abysmal failure.
I think they know why, in the odd moments when they actually care about such things since the public good is such a low priority in their busy day.
They just do not wish to acknowledge it, because they are culpable, and not in a convenient position to do anything about it, because it would interfere with the flows of private plunder that are now some of the most significant economic trend in the economy.
I doubt anything will change unless we see a major economic dislocation that causes a large number of people in their desperation to march on Washington and demand the political class finally decide to do the right things for the people.  
The last time that happened was the Bonus Army, and the military burned them out, and chased them with horses, tanks, and machineguns.  
The final change came when the people, in a major revulsion against the status quo, voted in a genuine reformer who had actions and experience, more than just well spoken words.  He could not be bought because he was already wealthy, and yet understood the notion of suffering and compassion because of a long time personal disability.  
American history:  to most Americans it's a mystery.
Have a pleasant evening.