Trader: ‘I Don’t Know How Else To Say It – It’s Different This Time’
By Kevin Muir of “The Macro Tourist” fame; reposted here with permission
Remember all those bullish studies market pundits were passing around in early January? Do you recall the parroting about “how goes January, the rest of the year follows?” It’s easy to forget, but many market strategists were falling all over themselves bullish just a couple of weeks ago (see Parabolic Moves Don’t End by Going Sideways).
Now, some 300 handles lower in the S&P 500, many of these same fore
Is it different? 1) Monetary authority prints money. 2) Inflation happens. 3) Rates rise. 4) Debts purge. 5) Repeat. It looks like we’re on the verge of “Inflation happens.” This will lead to rising rates which in turn will purge the debts and clean up everyone’s balance sheet so the monetary authority can start printing money again. The “different” part that is fooling everyone is it is happening way “slower” than everyone anticipated.
It better happen “Slower”. The Debt Purge will be armageddon to the US LongTreasury trade (They just stopped buying) & Massacre the dollar. If it happens fast there will be no faith in the US economy, and China and Yuan will be the country and currency of last resort.