Financial assets conjured from nothing can disappear with barely a trace... And, as they start doing so, real assets that do not just disappear will grow in relative value (as gold is the only asset capable of reliquifying the system as other real assets require cash flows to support their valuations).
Your "learn more about less" is both condescending and ironic as you are well outside your consumer discretionary sweet spot... I studied all that economic theory and political economy during my Econ PhD coursework 25 years ago...
Hope you enjoyed Hannukah Cash.
To quote Jimmy Stewart in It's A Wonderful Life: MERRY CHRISTMAS EVERYBODY!
My original response to this was already deleted, so I'll try again. Not sure why you are going through my very old posts on ZH, but in time you'll find I'm correct. I'm a firm believer in capitalism and market forces to allocate scarce resources efficiently. What we have today isn't capitalism. It's Financialism, with essentially fraudulent financial claims on real economy flows growing exponentially via FRB and CB printing... (though the original sin was FRB, not CB per se) and "paper flows" dominating traditional market signals (real flows of industrial capitalism).
Though I agree value is destroyed as we waste time (thereby wasting our most valuable resource of underutilized human ingenuity to solve the challenges facing us) and high net surplus energy trying to perpetuate that which is certain to fail as any system that rewards those who extract or consume value AT THE EXPENSE of those who create it (e.g. claims on flows of value by financial sector players arising from FBR rather than actual savings from production in excess of consumption) is certain to fail. Systems are path dependent and these games only undermine all of our collective futures.
Not remotely contradictory. I see the global system level dynamics that completely evade your retribution focused, egocentric myopic POV.
Still $400B behind EOQ bank window dressing trends. What do they know that those not in control of credit/effective money supply do not know... Yes, this time is different. There is 1 and only 1 semi stable path out of the almost century long fractional reserve banking financial asset ponzi... We are up against very fundamental distributional and system level constraints and no amount of bullying the "markets" through abuse of asymmetric leverage and knowledge of positions will change what must be done. The glorified theft must end. The further TPTB try to bully the market, the more likely this ends violently with wealth being redistributed through the inheritance tax rather than the semi stable path. The disconnect between value creation and value capture is inherently destabilizing.
I'd say stick with semiconductors, but you don't seem to really understand that either. You're a fraud IMHO.
Deflation of financial assets in real terms... Economics is about the allocation of scarce resources, not fraudulent financial assets (because that's where the biggest glut on earth exists from decades of unchecked distributionally driven demand destruction from FRB)
And my comment below it. After this initial squeeze to knock by financial players abusing asymmetric leverage and knowledge of positions, the minimal excess flow in the system will gradually be balanced by depletion over at most 18-24 months and thereafter oil will be priced at the demand destruction threshold. This move us just abuse of paper markets to squeeze the real economy investors once again.
Any system run for those who extract or consume value at the expense of those who create it is certain to fail.
Your markets have been run solely for the benefit of HFT and MM at the expense of asset owners and investors for years... aided by abuse of QE flow while starving the real economy by collecting IOER to run the biggest value destroying, malinvestment engendering pain trade in history. All investors need do is use the distortions against those who've robbed them converting essentially fraudulently priced financial assets to cash and gold, $ for $ without leverage. Reserve cash to invest in domestic producers when others panic or those abusing asymmetric leverage try to create artificial distress for those with solid fundamentals and positioning for the future.
There are literally 10's of trillions of fraudulently priced financial assets...
Always focusing on the most egregious (NFLX) and the most damaging (AMZN), but now broadening to all financial assets except domestic producers.
The issue is there inherent financial asset ponzi from fractional reserve banking decoupled from gold standard... it necessarily tends toward distributionally driven demand destruction as purely financial claims on flows of value from labor and true savings dominate over time from monetary diffusion dynamics (think Cantillion effect). There's 1 and only 1 semi stable path out of this mess.
Actually, I selectively buy domestic producers with solid balance sheets and cash flow yield (like INTC when everyone else was saying it was done).
Those protests better be in hyperdrive because at any point in time, Putin and/or China can choose to call and raise, simply by converting a mere $10-20B into demanding immediate delivery of physical gold. The disconnect between manipulated paper at prices and physical/real assets will close with certainty... The only way to reliquify the system that is a decades long financial asset ponzi is through gold.
Whether they take Putin out or not, fundamentals always win in the end. Oil will skyrocket after he's knocked out and the Cartel has gained control of Russia's resources. Because everything is run for the benefit of the very few, who will eventually find that any system run for those who extract or consume value at the expense of those who create it is certain to fail.
But, it would be great if all domestic oil companies did say they were canceling all drilling until WS stops abusing paper commodities... they should just preserve cash and use cash to buy gold to squeeze WS rather than allowing the Banksters to squeeze them...
Predatory abuse of asymmetric leverage and knowledge of positions in paper assets try to take it those holding claims on real assets that are certain to gain in essentially fraudulent financial asset terms. T Boone had it right today. It is all about distributionally driven demand destruction right now, elasticity of supply, while inelastic short term is more elastic than ever and oil will recover quickly. Certain to grow in value with respect to the trillions of fraudulently priced financial assets. All investors need do is raise cash to deploy into domestic producers (including oil) from all these consumption ponzis...
Still $400B short of EOQ back window dressing trends. They know something everyone else doesn't about the true nature of the financial asset ponzi that ails us (having caused the distributionally driven demand destruction)... "Someone" still trying to paint the tape down on gold through abuse of asymmetric leverage and knowledge of positions.
Assets = Liabilities + Equity, even for G3 Central Banks in a world of mark to make believe.