YOU DO NOT RAISE RATES WHILST IN THE DEFLATIONARY VORTEX

It’s as if the people on the television are fucking slow and have never seen this before.

I am going to talk to you like you were a child. Nod your head if you understand me (extra Macke).

The US cannot decouple from the global recession, just like how China could not escape our wrath in 2008.

Raising rates with 19 trillion in debt and much lower than expected inflation data makes zero sense. Basing the whole “raise rates now” campaign on “get it over with already” or “raise now to cut later” is juvenile and reckless.

10 yr treasury yields are below 2%. There is clearly a big problem here, but the Fed is tone deaf. This new Fed, led by Yellen, is not capable of responding to markets like Bernanke, which makes them dangerous.

We are very oversold, almost too much. The text book says rates cannot go higher; ergo, this sell off is childish and should be bought. The only problem with that position is the lack of credibility Yellen and her idiot governors have conjured up in recent months.

When cooler heads prevail, this market will turn on a dime and rally.