That’s what it is at its core.
And it is destroying our nation.
But what exactly is financialization?
Let’s find out by playing a game of “what if”.
Let’s begin –
I need some money – call it income, call it cash flow, call it a revenue stream, or call it whatever you’d like – the bottom line is I need some cold hard cash, and I need it coming in regularly.
Being the genius that I am (see what I mean by “what if”), I have decided to earn my money by means of financialization.
Here’s how –
- I buy a fake degree from China showing that I graduated from some run-of-the-mill American university.
- I get a work-from-home job answering phone calls for some US corporation that pays $18 per hour.
- I set up a VPN, do some IP spoofing, and set up a voice-over-internet-protocol forwarder to route my incoming calls to some guy named “Roger” in India (even though everybody knows “Roger” isn’t his real name).
- I pay Roger $4 per hour to take the phone calls.
- I pocket $14 per hour, yet I do absolutely no real work beyond the minimum required to get paid said $14 per hour.
- I’m lovin’ it.
- Can’t stop.
- Needing more money since I’ve got all sorts of time on my hands to shop around for only the finest of top-shelf West-side prostitutes, I use the same college degree to get a second job, and I hire another Indian who’s name is “Chris”, and even though I have to pay Chris $5 per hour because he speaks English more clearly than Roger, my second job pays $20 per hour, so in terms of real wages, I’m actually getting paid more from my second job than I am getting paid from my first.
- I repeat the process for a third job.
- A fourth.
- And so on.
- And so forth.
- By the time I have 20 jobs, I’m averaging $290 per hour, and I’m about to bump it up to 30 jobs even though I don’t need that many jobs because I can now afford the Latina twins (they’re super hot you know), but what the heck, for I guess I could try to spend more money, but don’t get to thinkin’ I’m gonna go all out-of-my-way to do it when I’ve already got as much money as I want, and, best yet, I still haven’t produced anything at all, nor have I provided any service or done any work, other than the work required to get to the East-side from time to time, where the danger and risk are great, but the girls are worth every penny because they have something the West-side girls just don’t have, and I’m not quite sure just what it is, but it could be that the East-side girls aren’t tainted by the artificiality and emptiness of high society, or it could be that the East-side girls are just plain skanky, and in a good way, so they’re more fun, yet one of those East-side girls complained that I’m too rough with her, and if you wanna know what I did, well, I just tossed a couple of dollars in my “go-to” gang-banger’s way, and voila – bullet in her head!
That oughta teach her a lesson.
I’m rakin’ in the dough!
It is so brilliant!
I mean, I’ve got money, cars, hookers, murder-for-hire, and I didn’t even have to lift a finger!
What if I did that?
Would that be wrong?
What if all of America did that?
Would that make it right?
What if our government, the Fed, Wall Street and the banks did those kinds of things?
The government, the Fed, Wall St and the banks engage in this type of financialization every single day.
The whole system is evil and corrupt to its core, and in much worse ways than I described in my little “what if” scenario above.
Yet we all just accept it as normal.
Ayn Rand hit the nail on the head before “financialization” was even a word in her totally awesome book Atlas Shrugged, which I really should read one day (bold, bold and bold added for emphasis and in order of increasing importance):
Money is the barometer of a society’s virtue. When you see that trading is done, not by consent, but by compulsion—when you see that in order to produce, you need to obtain permission from men who produce nothing—when you see that money is flowing to those who deal, not in goods, but in favors—when you see that men get richer by graft and by pull than by work, and your laws don’t protect you against them, but protect them against you—when you see corruption being rewarded and honesty becoming a self-sacrifice—you may know that your society is doomed. Money is so noble a medium that it does not compete with guns and it does not make terms with brutality.
Yeah, I know – I bolded the entire paragraph, but that is because everything in it cannot be emphasized enough.
We are doomed.
It ain’t gloom.
The gold-to-silver ratio looks like it’s rolling over:
If the downside is limited in both gold & silver, then the upside is also limited in the gold-to-silver ratio.
Gold has yet to regain $1300:
The technicals are tuning bullish, however.
Silver did regain $15:
The chart is suggesting a triple-bottom somewhere below $14, but that’s when technical signals were actually signals, and I think that silver is going to catch a lot of experts and pundits off-guard when silver has a sharp rally.
Palladium looks like it is breaking-out:
Palladium’s punched through its 50-day moving average too, which is bullish.
Platinum has also finished the week strong:
Over the course of the past year, that is one serious bottom platinum is carving out.
I’m feeling good about the metals here.
That said, next week has the potential to be downright nerve wrecking, so be on the look-out for Monday’s SD Outlook to find out why.
Copper’s still building that massive base at $2.90:
Isn’t “launch pad” another word for that?
Crude oil took it on the chin today:
There’s no stopping that golden cross, however.
Even if our President himself is able to control all markets, everywhere, including the oil markets:
What do they call it again when government takes away the free market and tells nations “and others” such as businesses exactly what to do?
I remember the word.
It’s called “fascism”.
On second thought, that’s not the word I’m looking for, but that’s probably because the inner-idiot in me asked the question wrong.
Please humble me as I attempt to inquire once more.
What do they call it again when government takes away the free market, tells nations “and others” such as businesses exactly what to do, yet is still able to convince the sheeple that we have free markets?
Is it called “neo-fascism”?
That’s the thing about sheep – they’ll never get it.
They are only to be slaughtered.
But I digress.
The Dow couldn’t reach new all-time highs this week:
I called this “now or never” week, but if second chances are a thing, then next week is “do or die” week.
If next week is potentially the last hurrah for stock market, the VIX could be headed lower in the short-term:
That said, the points needed by the DOW to reach all-time highs are minuscule, which is another way of saying the VIX should be bottoming out here, which is another way of saying to be on the lookout for a spike in the VIX.
The bond market may already be anticipating the coming drop in the stock market:
The “conventional wisdom” says when investors become “risk averse”, they buy bonds, and buying bonds drives up the price of the bond, which pushes down the yield on the bond.
That sure is an impressive head-fake in the US Dollar Index:
I am still not looking for a major move higher at this point.
President Trump is back to
lying jawboning proclaiming his own (and presumably America’s) greatness:
Well that’s just spec-freakin’-tacular!
And I do mean it is self proclamation:
They say, and least I think they do, that if you repeat a lie long enough, the people will believe it, and our President has been repeating that lie for quite some time:
The problem is that in getting the people to believe the lie, otherwise hard-working, red-blooded Americans are going to be economically and financially blindsided because of such an erroneous belief.
The only question is, who’s to blame?
News Flash – we are all to blame!
Each one of us, individually.
For our individual actions.
Based on our beliefs.
Even if we believe.
In what are lies.
For the better.
Or the worse.
– Half Dollar