Major averages sold off once again on higher volume. The S&P 500 knocked again on its 200-day moving average. Third time's a charm?
Futures are bouncing on hopes regarding trade with China. Over the weekend, Trump indicated that he was hopeful an agreement could be reached between the two nations on trade. “China will take down its Trade Barriers because it is the right thing to do. Taxes will become Reciprocal & a deal will be made on Intellectual Property,” he said in a tweet. The situation of course remains fluid as good news follows bad news follows good news in an endless loop, or so it seems.
As for jobs data, the 4.1% unemployment rate is a sick joke. The reality is that not only does this percentage not account for those who have just plain given up looking for work, but most of the jobs created are at the poverty line, while graduating students sit with $1.8 trillion in student debt, barely able to pay off their loans. Unjust legislation passed into law by Hillary Clinton made sure no student can declare bankruptcy to evade their student debt.
The weak jobs report may diminish the odds of 4 rate hikes this year, though the real issue as we have written is the sputtering global economy which eventually will push the Fed to reverse its hikes as it is forced to launch a new QE program once again. This time, however, the effect of QE will be even less than before. At that point, currency devaluation will be the only recourse. Otherwise, we could have another situation such as Japan where they kept interest rates near 0 since the 1990s yet couldnt get inflation up because demand remained poor.
The Fed is paying too much attention to the short term debt cycle while ignoring the long term debt cycle which comes once every 75-100 years. The world is at a major tipping point as concerns long term debt. Never in history has the world paid back such onerous levels of debt. Today's levels far exceed those of the 1930s, even when adjusted for inflation. Instead, steep currency devaluation is the only solution. This is why fiat currencies have a limited lifespan when things get this extreme.
The individual taxpayer is left holding the bag while central banks continue to operate the world's largest legalized Ponzi scheme on the planet. Meanwhile, Bitcoin is freeing humanity from corrupt governments, all the while disguised as a ponzi scheme.
Satoshi Nakamoto knew that governments and central banks are artificially constructed TTP (trusted third party) monopolies which was the inspiration behind bitcoin when he wrote "“I’ve been working on a new electronic cash system that’s fully peer-to-peer, with no trusted third party.” This is arguably the greatest invention in the history of humanity, not just because it propels existing paradigms into a much higher order of efficiency, but because it frees people from the shackles of government. It therefore comes as no surprise that the migration of top minds from their respective professions into the blockchain space well exceeds the migration witnessed during the internet boom in the 1990s.
The issue at hand is that different systems of government offer varying levels of freedoms but eventually devolve into concentrating power into the hands of the few who then use financial, judicial, and military means to control the many. The US is an oligarchy as is the UK, even though on the surface they say otherwise. Such power structures could not exist under a decentralized form of government. Such decentralized governance would truly empower the individual far greater than any other system of government, past or present. The future remains brighter than ever despite amplified levels of social unrest due to tough economic times around the world
Market Lab Report - Premarket Pulse 4/9/18
|9 Apr 2018 08:10 ET
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