Japan was up half a point too – before diving 2.5% after the close. We are now entering what I call the fakiest stage of the rally – the part where the Banksters haven't gotten all of their money out yet but they are racing each other for the exits while telling retail investors and even their own clients to BUYBUYBUY whatever crap they are dumping while telling you to SELLSELLSELL whatever they want to buy.
"THEY" will manipulate the Futures, "THEY" will manipulate commodities, "THEY" will manipulate the media (although it's not really manipulation when you own it, I think they just call that "setting editorial policy" in a Corporate Kleptocracy). "THEY" are the Fed (among others) so it's only natural that we'll hear from 5 different Fed Governors this week starting with Super Dove John Williams, who already spoke in Stockholm this morning (7:20) and said he's worried about DEflation – indicating the Fed may not be loose enough for his liking.
He noted that underlying inflation was at 1 percent, below the Fed's target of 2 percent. Indicating it was one of the factors the Fed should watch when deciding on policy, he said:
"If we see continued low inflation and, more worrisome, a fall in long-term inflation expectations, well below 2 percent, then those would be factors that argue for, all else equal, greater total purchases for our program than otherwise."
LOOK OUT, HE'S GOT A GUN! That's what you should be thinking when you hear something like this. Or maybe FIRE!!! would be more appropriate as every month the Fed prints $85Bn, they devalue the money you have spent your lifetime accumulating by 0.75% (because there's about $12Tn in circulation, up from $7Tn just 5 years ago).
People bitch and moan about taxes while the largest confiscation of wealth in the history of the Universe continues unabated. As I have noted before, the top 1%, even most of the top 10% don't care, because we are the Investor Class and we can play the inflation game. When we were still bullish, way back in April, we had our "5 Trade Ideas that can Make 500% in an Up Market" (and they did), as well as our "5 Inflation Fighters Set to Fly" (and part two) so, from our own greedy…
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