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Tom Luongo
\nGold Goats ‘n Guns<\/p>\n
To say that current events are \u2018messy\u2019 today would be the height of understatement. Everyday the headlines blare at us some new set of contradictory data points convincing us of some lie that serves someone\u2019s purpose.<\/p>\n
No matter how hard we try to keep up with things, cutting out the extraneous to find the nuggets of signal from the jungle of noise is more than a full-time job.<\/p>\n
Sometimes, however, it\u2019s best to take a few steps back, fall back on first principles and remind ourselves who the players are, what they want and then ask the big question of each of them\u2026 are they succeeding?<\/p>\n
But to even ask that question we have to ask ourselves honestly the following question:<\/p>\n
\u201cWhat will they be willing to do to survive under present circumstances?\u201d<\/p>\n
This is the most uncomfortable question you can ever ask anyone. What would you do to survive? To protect your family? Your position? Your conception of yourself?<\/p>\n
Everyone\u2019s morality has limits. Everyone. Everyone has a shadow, a dark side, a place where they retreat to their Hobbesian self and see the world purely in terms of \u2018a war of all against all.\u2019 Anyone who refuses to admit this to themselves is someone you should run screaming from.<\/p>\n
Those that always claim the moral high ground, who are always \u201cthe goodies!\u201d are those without limits on their behavior. As the great H.L. Mencken proclaimed nearly 70 years ago:<\/p>\n
The urge to save humanity is almost always only a false-face for the urge to rule it. Power is what all messiahs really seek: not the chance to serve. This is true even of the pious brethren who carry the gospel to foreign parts.<\/em><\/p><\/blockquote>\n
This is the context in which we have to ask that question, \u201cWhat will they do?\u201d<\/p>\n
Of course, the answer is, \u201cWhatever they have to.\u201d<\/p>\n
This is why I never rule anything out in my analysis. It\u2019s why I\u2019m always willing to leap five or six steps ahead to the big move, because that\u2019s the limit of the behavior of the group under study. Today it may be\u00a0Davos,\u00a0<\/em>tomorrow it may be The Fed, the day after it\u2019s Russia.<\/p>\n
They all have a preferred end-state, a solution to their personal equation, with their own set of input variables. For me I see this as a set of differential equations to be solved. We all want them to reduce to a set of outcomes which will leave someone closer to their preferred outcome.<\/p>\n
And the scary part for all of us should be realizing that not only is there no single set of outcomes here where everyone is maximized, there isn\u2019t even a \u2018win\/lose,\u2019 condition here.<\/p>\n
There are only losers, us.<\/p>\n
Because the first rule of any organization is self-survival. Throw the mission statements, corporate bloviating and HR virtue signaling into the dumpster fire. At the end of the day all that matters is survival. Only when that is as secure as it can be can an organization begin thinking beyond its collective lizard brain.<\/p>\n
No different than you or me. And at this point every major faction has been reduced to this, their event horizon is just out of reach, striving for it almost half\u2026. There!<\/p>\n
But, like Xeno\u2019s paradox never reaching it because it was never attainable in the first place.<\/p>\n
What I fear more than anything else, what I see from too many people analyzing the intersection of geopolitics, markets and ideology, is complacency. There is a stunning amount of\u00a0normalcy bias<\/em>\u00a0in the punditocracy, too much \u2018cooler heads will prevail\u2019 and not enough \u2018everyone\u2019s got a plan until they\u2019re punched in the mouth.\u2019<\/p>\n
So when thinking about\u00a0Davos\u00a0<\/em>and their stated goals for the Great Reset and saving the world from Climate Change do you really think there\u2019s a limit to their behavior?<\/p>\n
Do you really believe they wouldn\u2019t start a nuclear war, unleash a virulent plague, engineer a cure that\u2019s worse than the disease, create a false flag mass shooting at a school or leak a Supreme Court opinion?<\/p>\n
When thinking about the Federal Reserve in the context of an unprecedented assault on its autonomy and the commercial banking interests it was created to protect, do you really think today, at this point in time, they wouldn\u2019t engender an economic collapse to save themselves from another group (say\u00a0Davos)\u00a0<\/em>from destroying it?<\/p>\n
So, everyone pontificating about how the Fed only has one or two more rate hikes in them because that\u2019s what the models say, that\u2019s what the Fed\u2019s past behavior supposedly tells them, what will you tell your clients when the Fed hikes that fourth time by 50 basis points. Or accelerates the run rate of QT to $125 billion per month and allows the US 10-year note to rise to 6%? 8%? 10%?<\/p>\n
Are you going to shrug and say, \u201cUh, sorry my bad.\u201d<\/p>\n
When faced with the prospect of a nuclear re-armed Ukraine in bed with Neoconservative ideologues in Congress and the U.S. State Department committed to a singular vision of hegemony for the planet, would Russia not fight a vicious war of attrition using World War II artillery tactics to grind their adversaries into paste while grimly pledging itself to their eradication?<\/p>\n
What about the terminally corrupt and morally bankrupt Congressional leaders on Capitol Hill who have gotten personally rich and weaved an immense web of bullshit so vast and encumbering we can barely keep track of even the surface level details?<\/p>\n
Would they not do anything to protect their malfeasance from breaking free from the containment of plausible deniability which is the true coin of the realm in D.C.?<\/p>\n
Today newly-confirmed FOMC Chair Jerome Powell was summoned by President Select Biden to the White House to have a chat about the economy. Biden and the Democrats are scared to death of this fall. Biden obviously wants Powell to stop hiking rates. The Democrats only want to lose 40 seats in the House in November.<\/p>\n
That\u2019s all the vote fraud infrastructure George Soros\u2019 money pays for.<\/p>\n
Powell\u2019s barely even begun the tightening cycle and these people are shamelessly, after holding up his confirmation for a year, after playing the most egregious power politics in the Fed\u2019s history, summoning Powell like a dog to the White House and say, \u201cDon\u2019t hurt our chances this fall.\u201d<\/p>\n
If I\u2019m Powell I\u2019m smiling like the Cheshire Cat before vanishing into the bowels of the Marriner-Eccles building, and considering a 75 basis point hike just for the lulz.<\/p>\n
Or he could see his shadow, get spooked and cut a deal. But at this point with who? Who do you cut a deal with? Bond-holders? Davos? Biden? Who?<\/p>\n
Seriously, this is what our politics is reduced to by these venal\u00a0Davos-controlled<\/em>\u00a0halfwits? And there are people out there still engaging in one-sigma thinking?<\/p>\n
I\u2019ve been telling you for a year that no one is asking the right questions about what the Fed is willing to do, not just to save itself, but possibly the much larger goal of breaking the people who are intentionally breaking the world for their benefit.<\/p>\n
Too many can\u2019t get past the budget or tax receipt numbers. The bond markets? Stocks? The Fed couldn\u2019t possibly burn all of that down, could they? Those unwilling to ask that question seriously are those that keep looking away from the Abyss because the Abyss stares back.<\/p>\n
They refuse to contemplate what happens when the board state is so screwed up, when the Jenga tower that fragile, that the only winning move is to nudge the table and watch it all come crashing down.<\/p>\n
The Fed has looked into this Abyss in the past and they\u2019ve always shied away, but that was when there was still time. But\u00a0Davos<\/em>\u00a0has pushed us to the brink of societal collapse across the West, it has refused to even contemplate they are the Abyss and because of that the Fed may be staring at the heroic choice of jumping in and letting us pick up the pieces.<\/p>\n
The question I have for you then is simple, \u201cWhat are you prepared to become if that happens?\u201d<\/p>\n
We already know what the big players are doing.<\/p>\n