What we told you so far:

  1. We told you the BOND Market would derail the equity market and why.
  2. We told you the dollar would soar and it is only just starting.
  3. We told you Apple would falter and carry the market lower because Apple is in crises and Tim is caught lying – shattering trust and slaughtering the Apple Brand in 2018
  4. We told you to beware of the SPRING as the market would correct
  5. We told you to buy low and sell high and to run out of this market space as manipulated casino capitalism where real world models no longer apply.

There are less than 2000 billionaires in the world today. These billionaires control more growth in wealth and wealth than most nations over 7 trillion and rising. The inequality of wealth distribution is a fatal economic system flaw. Why? Liquidity consolidations create systemic economics and risk nations are powerless to moderate in such a flawed and lop sided economic model.

We just keep on doing it and we never fix a system where law makers are largely bought and paid for ..as you know…and they will not vote against their money consolidators to reform the system. Warren Buffet stated years ago – the world is engaged in serious class warfare and unfortunately my class IS winning……

Terms of Endearment:

LEE – Liquidity Evaporation Event

LED – Liquidity Evaporation DAY

CASCADE – Digital switching from buy to sell globally in all markets all at once by AI – no humans involved.

SUPER CRASH – the markets no longer work to clear goods commodities and services as everyone is selling and there are zero buyers the markets seize up and trade suspends and stops. Banks may fail as accounts are rebalanced ( they go bankrupt ). World wide.

ILLUSSION: the public reality that systems in their nations are ahead of the issues – have controls in place to resolve all risk moderations to the system itself – when in fact the nations are powerless to influence or moderate market collapse today.

CASINO CAPITALISM: A market place in which technology for trading ( every asset class you can think of or name including all structured asset classes ) are manipulated by software, in ranges, that influence and control profit making as long as liquidity remains at VAL levels. When VAL falls off Casino Capitalism triggered by digital versus human trading aI and software can evaporate all liquidity as no prior market has ever seen before.

VAL – Velocity Accountable Liquidity – the minimum range threshold to assure sufficient buyers exist to accommodate sellers like the last two days of market transactions where when LSA arises the market freezes and the problem compounds ( via software ) in seconds.

LSA – Liquidity Standard Accounting – a system of accounting I invented to track global liquidity across asset classes – with normal ranges and STRESS RANGES Liquidity Stress Authority which is LSA1 and LSA 2 to alert our teams of pending LIQUIDITY stress which in todays digital markets can compound to DESTRUCTION in seconds not even minutes. If AI software switches to all selling globally and there are no buyers within LAR traditions the market fails.

LAR – Liquidity Acceptable RANGES. To our knowledge no one is tracking global market LIQUIDITY ACCEPTABLE RANGES to maintain orderly markets with software digital velocities of today. As the spiral of base to the market is now an upside down pyramid – with less than 10,000 super money pools controlling, manipulating price, and dictating all global market terms, software against software, the ANIMAL SPIRITS believe they have absolute risk removed and acceptable risk under management. In fact the problem is now far worse than the Great Depression of 1929 and we suspect will surprise than stun the powers to be when SUPER CRASH appears out of no where.

VADS – Velocity Acceleration Days where markets manipulated entirely by software soar to record highs and take profits to record lows as volatility is more common and extreme in forward time frames.

LABS – Liquidity Accounting baseline securities. Global assessment of liquidity base lines for all asset classes world wide to determine the increase in liquidity baselines – increasing system stability overall or the massive decrease in the trading base to the market at core across base lines of liquidity – shrinking market stability by ratio’s that are exponential.

LARS – Liquidity Acceptable Ratios’ which when range violated serve as a canary in the mine that a SUPER CRASH is now endemically closer to the systemic rebalancing economics always requires eventually – all accounts out of balance will re-balance which super money pools and their experts ignore at their enormous peril.

FRE – Forced Rebalancing Economics

So we Track information that includes INVENTIONS we do not see in current super money pool and public policy. It is if they are full speed ahead on the TITANIC ( the world economy ) and they fail to appreciate the economic rebalancing required to imbalances in accounts ( the ice berg they are approaching at full speed ahead ) has sufficient weight to over come their theory and Super Crash the system into failure and FORCED REBALANCING ECONOMICS. Super Crash.

But this ..is…NOT…..it ! No where near it in Jan 2018. And I”m the one that predicts a real correction sustainable around SPRING and if we miss that longer correction we are good to boom for years.

SO we have a little corrective profit taking at the end of January balance sheets. What?  Software commanded and rippling. A little greed is all that is going on right now. Look MA ( Jack Ma ) there are no human’s involved – its all software and AI today – first time in history and your feeling the VADS have arrived if you follow my inventions economically and new rules for the digital casino economics – then your on board here and way ahead of the Ivy League know it all economists – just a little wet behind the ears historically is all. They try so hard but the market has warp driven into new digital economics their prior education failed to prepare them for at all. They are in new warp drive trying to forecast with the keys to their VW.

That ends with – how is that working out for you boys and decision makers? You all got this ? This brand new never before ever experience market space? Oh really?

Today’s software will see buying opportunities as record earnings rise up this week from the final record consumer buying quarter world wide. Buy in the dip will make this a software blip.

In our opinion.

EXXON announces it will spend 35 billion on US upgrading. The total from tax reform passed this month has passed 1 trillion dollars from off shore returning to HOME SHORE for investment in jobs plant and economic upgrading in the USA. We suspect a five year boom from up to 5 trillion being invested due to the tax break inside America. That wave is pretty challenging to argue with -IS  it is too much money too fast? We’ll see.

President Trump will tell us the state of the UNION is STRONG tonight at prime time as the PITCH MASTER throws us his best sales lines to market a 1.5 trillion dollar communication, transportation, deep sea port, to transportation system retooling to make the USA the envy of the entire world. While defense spending is raised. Because with all this investment the tax revenues of the USA are soaring. Just soaring.

As Defense Secretary Mathis informed Congress – noting the studies showing the USA would not a win a global war today – its close – as our commander and leader stated – as head of Joints Chief’s of all Commands – AMERICA CAN ALWAYS AFFORD SURVIVAL.

North Korea can Nuke us this year. Which is suicide for the inside team as North Korea has its own LIQUIDITY EVAPORATION EVENT taking place now. Will China and Russia keep North Korea afloat to finance Nuking the USA? Probably. It is asymmetrical warfare and we are loosing the first battles across the world. All well reported here.

The issues related to global markets is all about:

  1. Traditional values – the ratio of making a risk investment and how long that investment will return with profits based on current and future earnings of that long term bet.
  2. Traditions of liquidity or the LAB – larger liquidity accountable baseline Securities. Since World War II the global markets have moved into the cloud when all regulations are local to their nations. Digital software now controls the markets with a Base moved from tens of millions holding the large % of the trading velocity to less than 10,000 super money pools controlling the larger % of trading volume. The upside down pyramid accelerates risk of a forward SUPER CRASH.
  3. Traditional bond and equity market disintermediations taking place this week in fact. A matter of charts and history in markets.

Fully explaining 1 – 2 – 3 is complex and global. There are sufficient “givens” for a University post graduate class at Harvard in this data mix and the data mix is changing as never before in history.

A final thought today. The market is price ranged controlled by software and AI. AI trading against AI. Brokers – Super Money Pools – Sovereign Nation Funds – and everyone trying to be the FUND OF FUNDS ( my buddy Barny Cornfield never got that right either for anyone old enough to remember and recall historic market space SUPER CHANGE ).

The markets have gone through the most vast structural change in ten years form 2000 years. The markets of common outcry and floor trading specialist making a market are gone. Virtual. Digital. The experiment of cloud based – outside all nation regulatory frame works – price range manipulation of markets – in a casino capitalism like the world has never seen before is why buddy David Stockman and hero economist wrote you last year – GET OUT OF THE CASINO WHILE YOU STILL HAVE TIME. Then he presented his case in point.

For those who love roller coasters you are going to next witness VOLATILITY ACCELERATION DAYS – VADS. The frequency of volatility is going to increase as the digital market reaches borders and capacity to maintain price ranges now challenging software parameters.

The profit driven mindless software will improve and be moderated by the VAD’s to accommodate a softening of VADS. The adjustments to the software will now ( take it from a software designer from Silicon Valley also an investment banker economist ) make more frequent with ever more peaks to the valley’s of the software induced vocality. The stable markets of the past several years are relatively quiet from the past.

The future will be new record highs and new lows on VAD days. The VAD will become the new normal so that YOU are used to the VAD accelerations and fail to appreciate the overall casino market is becoming inherently more unstable globally.

The trigger for the impending SUPER CRASH is a DEBT BOMB EXPLOSION. One firm in China is now experienced a debt liquidity melt down. That firm is too many billions behind in lease payments world wide to report to you as the total sum is staggers and skyrocketing. The firm is selling assets like a building on fire but the tens of millions coming in are to slow and low to effect the tens of billions behind due right now. If this debt bomb in China cascades the SUPER CRASH is more close in than more far out.

Global SUPER DEBT BUBBLES are the cause of all world depressions.

This next one will be no exception.

The failure in Communism and Capitalistic nations to join Kings and cement a G 100 nation Economic Constitutional Congress to upgrade a single GLOBAL TRADING SYSTEM which moderates consolidation of wealth, is fair trade with no nation left behind, and which precludes unwanted debt or asset class bubbles is a three year upgrading the brains and master minds can march us forward into.

The lack of solution is not ideas and IP.

The lack of solution is a lack of WILL by the super money pools that buy and control nations.

Political WILL is lacking.

One inspired leader could carry us all forward in cooperation, trust and systems replacing distrust and competitive impulse as insane. Cooperation is the future. Competition is world war and untold repeating of past human history.

Are we that insane today? That manipulated?

We are all about to truly  see.

In my opinion the markets will recover from the present software profit taking and forged to 30,000 DOW, 40,000 DOW, 50,000 DOW and up to 100,000 DOW over five years of unimaginable wealth spiraling and global prosperity ( if the DEBT BOMB does not go off ). To be sure there will be enormous VADS along that path which won’t phase super money pools but which can wipe out grand ma.

So buyer beware.

Buy low and SELL HIGH.

The stock market is a casino.

Put your nest egg in diversified insurance investing.

Put your Vegas money on any bet you chose win loose or draw.

Hope this helps on what IS going on OUT There today.

Berny Dohrmann – Right Again – I did tell you – yes I did & often ….