Market Madness And The Obvious Signs of Economic Decay

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Warning: Contains Genuine Satire and Adult Themes. Reader discretion recommended. Its about to get RAW.

The madness continues as there are no signs of economic improvement on the horizon. Now many of you will read this sentence and immediately say “he doesn’t know what he’s talking about”, because the share market is heading north like there’s an endless supply of rocket fuel and the housing market too is showing no imminent signs of slowing down. That’s all doom and gloom… we’re going well. Recovery is happening.

That would be a fair assessment (that I don’t know what I’m talking about), if you were to consider things at face value. Of course, if you were to lift up the curtain and take an objective view, you will soon realise, that not only do I know what I’m talking about, I’m presenting a view of the market, that most average economic commentators are still not up to speed with.

The last 5 days or so has seen some of the strongest gains in stock markets across UK, US, Sydney and Japan. Numerous traders were caught sleeping at the wheel, shorting the indices market (which is the right thing to do right now), but they forgot that the current market data is completely and utterly fudged and misreported.

That’s a big claim. I don’t say it lightly, but let me explain what I mean by that. I will demonstrate this using 4 examples. Not 1 or 2… but 4, from 4 different countries, using different economic indicators.

Let me start with my home ground first.

crisis investing in New Zealand

New Zealand Unemployment Rate, as of the 5th of August, came in at 4%. This is the same as the 2018-2020 (pre-covid) trends. Of course, 4% unemployment rate is fantastic because if you’ve done our Real Estate Investment BASICs course, you will remember that anything around or below 5% usually means that everyone that can have a job, already has one.

However, if you look closer, you will realise that this report is completely disingenuous. Here’s why.

You will remember that NZ had 2 rounds of wage subsidies. One came to an end around July and the second one is coming to an end on the 1st of September, 2020.

Ardern has already said that there will be no more subsidies [although in today’s press briefing, she indicated that this is likely to change. You will know why, later in this rant].

Now… had the wage subsidy stopped at round 1, the unemployment numbers would have been severely different. But thanks to the wage subsidy program, anyone qualifying for that, had to remain “employed”.

The hundreds of thousands of people that received the subsidy, automatically escaped the unemployment calculators at Treasury. However, once the subsidy comes to an end, the real picture will be revealed, but by then, the election would be well and truly over and no one will have the opportunity or retrospective desire to debate the REAL numbers.

So… 4% looks great. Government 1. People 0.

Moving across the ditch, lets go to Australia

crisis investing in Australia

7.1% as reported in July, 2020. Despite that, Josh still believes that the GDP figures 6 weeks prior, reporting -0.3% is real. For a treasurer that miscalculates the JobKeeper program by $60 billion, can you really trust him to punch in the right numbers? Its $60 billion, with a B… what would happen to you at your workplace, if you made a calculation blunder of that magnitude? Never mind. Don’t answer that. It doesn’t matter, because rules for you, are different compared to rules for imbeciles in Canberra. Anyway, so back to 7.1%.

Again, just like NZ, Australia’s wage subsidy program (the Job Keeper and Job Seeker) is the cause for the single digit number here. Now they know that the numbers are going to be shocking and they need you to continue believing that they are doing a great job under the “Post Covid Recovery program” as the country is coming back to its feet.

My question is, if despite the subsidies, the unemployment rate is 7%, then what are the real numbers? How many are ACTUALLY unemployed right now?

Once again, Canberra managed to get its way with zero accountability, spraying lighter fluid all over its national super fund. Why? Well, have you taken out money from your super? 3 million have. $30 billion has been withdrawn. How long did it take for $10,000 or $20,000 to be accumulated in your super? Now ask this: What are your chances of being able to get that money back into the super without losing one of your kidneys?

Again. Government 2. People 0.

Lets skip past the Asian subcontinent altogether, because I don’t think any of you will understand the level of shitfuckery that’s going on there. Especially Singapore.

Flying over India, heading west, over Pakistan, over the desert and up into Europe. Lets head to No. 10 Downing Street… shall we?

Rishi Sunak

Boris, oh Boris – how screwed thou art!. Actually, I’m not sure if its Boris or Rishi Sunak, with his outrageous 50% discount on meals deal. Yep. Dine out, get 50% paid by Rishi, the chancellor of the Exchequer, ttt…twat. This is one Rt. Hon. MP that Mr. Bercow should have punished more (if only he would show up at the debating chambers more often).

Britain has lost the plot entirely. They have started covid testing the sewerage system. Yes, you read that right. They have already begun 3 weeks ago and the project is up and running across 44 UK sewerage treatment plants. To state it simply… they’re going to sniff the shit out of covid and hunt down the evil bastard – what a proactive, nationalist and measured approach Hay? We need the pub landlord… Come on Guv… where are ya, you beer-drinking, name-tossing, comic of the century!

So what really happened to the FTSE 100?

Watch this, you will fall off the couch laughing.

State propaganda machine, previously known as the British Broadcasting Corporation (BBC), said on the 12th, that the UK has entered a recession for the first time in 11 years, with unemployment at 3.9% (marvelous) and GDP at -20%.
Same story here regarding jobs. Subsidies are to blame for disingenuous data. However, lets look at the GDP, which is a direct result of transactions taking place. So slowing GDP = (unequivocally) less spending. Less spending = dried up demand for goods. This leads to drop in prices to “create” demand. This means negative inflation or deflation. And children in the classroom… what comes after deflation?

A mighty depression (wait… what happened to recession. Recession…? What recession… we’re way past that boys and girls… the UK is in deep shit, as is the rest of Europe for that matter.

And look at the lunacy of these people in parliament. They are saying, “Well compared to Spain, we’re doing much better…”. Sure thing numb nuts!… Compare yourself with the worst numbers to make yourself look good. How does that even compute as anything positive in your head Mr. Johnson… ?

But… property prices are going up. UK100 soared like one of Elon Musk’s rockets.

But the true reason why that happened, is about to become clear as I join the dots for you, and how Ardern, ScoMo, BoJo and the US Democrats are in the same bed. Watch this.

Oh wait.

Government 3. People 0.

Now lets swim across the Atlantic (why not) and dock at the Big Apple. The cesspool from whence all this shit cometh. Demented sex abuser Biden has found a running mate. Drum roll… its Kamala Harris, the Dem Sen from California. I should have said dim sum instead… dim sum, I love. Kamala Harris, I love not. By Dem, Sen, I mean Democratic Senator… LMAO.

Biden Harris

Harris is the most transactional politician in the history of politics. She’s not dumb. She’s not immoral (because that would imply that she has some morals, because nothing, is still “no” thing… She’s worse).

She’s highly flexible. She will agree and represent whatever Wall Street wants her to represent. She is the ultimate left winger… with the ability to bank right when she needs to.

Brilliant pick Joe. After all, you can’t remember half the things you say, you were never going to run the country anyway, it was always going to be your VP that was going to be the real president. Remember, Bush, Cheney anyone?

By the way, mine is not a partisan view. I don’t care Democratic or Republican. If I’m an American voter, I will only care about who will make my life better and give me the opportunities in the land that was once all about, “Life, Liberty and the Pursuit of Happiness”. Yet, thankfully, I’m not an American voter.

I’m a New Zealand voter. And by God, I want to tear up that ballot paper come election day, because the state of my country’ politics is worse than the worst “Delhi belly” you’ve ever experienced.

So when Biden announced that he was picking Harris as his limping…I’m sorry, running mate, Wall Street broke out in celebration. Champagne, caviar and “Ben Franklins” turned into Cigars… Now you must already know that the City of London (not London, the city where Trafalgar Square is), is the original cesspool from whence all the shit poureth into the world… they too, went nuts.

Ahoy Ahoy!, FTSE 100 picks up a rally and catches out all those idiots who kept shorting the index not knowing that when you have a series of successful shorts, that’s the time to “sit the next one out”.

Which is exactly what I did and I’m a happy man.

Indices up. Safe Havens (like gold) down. All the shorts picked up by SMART Money (because SMART money buys when dumb money sells) and the rest is history.

Now then… (in Alan Watts style), what is the sum total of all this dirt?

It means, the market has become highly predictable now. More than ever before. The agenda is clear. Back on the 14th of July, I wrote about a possible second wave hitting NZ. Lo and behold, we’ve got it. She wants to postpone the election and if by super majority at Parliament, they agree to move it out to next year, then I will guarantee you that there will be more subsidies and money coming to every household in NZ. Why? Because she needs to keep those numbers (unemployment, Negative GDP etc.) down to stand a chance of winning a second term.

Frankly, if I was in Collins’ shoes, I’d deliberately let her win.

Losing is also a strategy sometimes… and then, make her life a living hell for the next 3 years, holding her to account and through that, pushing policies that really matter from an economic recovery point of view.

Because, frankly, the National Party doesn’t know how to solve this current pickle either. Better to lose this one, and build up the campaign in 2023 on the back of all the gunk served by Labour for the next 3 years.

So what is the solution?

More money. Yes. I know, I’m traditionally against QE but this is not the time to hold back. Banks must be INSTRUCTED, not advised, bloody INSTRUCTED to open up credit.

This is true for every country I have talked about above. It doesn’t matter who will end up repaying all that debt… that debt was going to burden one generation or the next anyway. It would have happened. If not in 2020, in 2025 or 2030. This is the sum total of the capitalist doctrine. It is a vicious circle so while all of us have reaped the benefits of a free-market, we also have to be ready to pay the price for it. Could we have avoided it?

Of course. Had we had good governance in place. But that’s a pipe dream for a utopian world that doesn’t exist. At least not in this dimension.

Now… as always, I am going to challenge you.

I dare you to take a stand. Stand up and look around and understand where you’re heading. If you didn’t read my rant about creating a pivot strategy for you, then you’re just simply too busy for your own good. Enjoy. Have a nice day.

Goodbye.

 

 

 

 

 

 

 

 

…..

I’m sorry. I got distracted by an email I just received from an agent in Australia. 26th FLOOR ‘SUN CITY’ SUB-PENTHOUSE in surfers’ Paradise. Wanna buy?

Here’s the link:

So where was I. Yes… did you read the article about Pivoting now? Did you read the one about the 6 questions you should be asking?

Heck, have you started the REIT Masters course yet? If not, then how are you planning to make money from the market when it is at its most predictable state?

This is an opportunity of a lifetime folks… with the amount of support and one on one coaching (about trading), you’d be filled with regret 2 years down the line for not having taken the chance while you could have.

Do something. Wake up. Or forever remain in the slumber that consumes your intellect.

This time… really… goodbye!

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