THE STORM BEFORE THE “CALM”
After the BRITT EXIT which we correctly predicted for our members world wide – we told you – this was a FOOLS crash and it was NOT REAL. Nothing had changed. We noted this was the STORM before the CALM. The Calm is now returning. Right once again.
Yes 3 Trillion of wealth was wiped out. For say 24 hours. Than the Wealth was wiped back in – or – the CALM. Sanity versus insanity. I mean really folks. Follow the money which is of course the only bouncing ball. When I listen to financial news and the kids reporting I think – gosh they do not have a clue to what is going on really.
Anyway wealth wiped out – wealth wiped back – while your second hand swept around your watch face. None of it was real. Just computers trading against computers making money on calls and puts all the way down all the way up. Casino capitalism at its best folks. Welcome to the Global CASINO.
Earnings are up.
Housing Sales are UP.
Auto sales are UP.
Consumer spending is UP.
Profits are coming in better than others expected.
Some retail is soft moving to ON LINE.
The global markets are unchanged.
The real issue moving forward is MISMANAGED DEBT. It is not that Debt is not managed. It is rather Debt is mis managed. Non performing debt say Puerto Rico – is Friday at 70 Billion that can not be paid. Congress voted the creditors could not sue on default until February where a default tomorrow will take place. That will ripple. But there is 100 Trillion of this stuff moving into the system. The domino’s as they lie up and topple in series will become too much.
Already nations are not dealing with the problem, rather they continue to try to let politics lead economics. So the creditors who invested in good faith in Puerto Rico ( but says its Italy or Spain ) and now can’t be paid back – are told they do not have legal recourse. Congress set up a BOARD to NEGOTIATE with Creditors – to say – hey you guys have to wait and wait a ton more time.
So hows that going to work? The creditors have folks they have to pay. The ripple gets out of control folks.
It is economics not political.
So eventually the calm before the storm applies but right now it is the storm we just went through before the calm we have returning now as I wrote to you in my Blog after BRITT EXIT. I said – don’t panic just hold.
The calm is spreading everywhere just like I told you.
Economics – it is so predictable if you just know the landscape. That is what I like about economics – the predictability.
However political tampering always produces unintended consequences in economics which remain unforgiving for mistakes.
So the NEW NORMAL is back.
Get used to it.
Hope to see you at CEO SPACE July 24th – we’ll all be there for you.
Berny Dohrmann – Chairman— June 30, 2016