{"id":9029,"date":"2015-06-12T05:50:11","date_gmt":"2015-06-12T10:50:11","guid":{"rendered":"http:\/\/olduvai.ca\/?p=9029"},"modified":"2015-06-13T07:07:01","modified_gmt":"2015-06-13T12:07:01","slug":"the-fed-is-funneling-the-investing-herd-off-a-cliff","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=9029","title":{"rendered":"The Fed Is Funneling the Investing Herd Off a Cliff"},"content":{"rendered":"

The Fed Is Funneling the Investing Herd Off a Cliff<\/b>\u00a0<\/i><\/span><\/a><\/h3>\n

What happens to price in a bidless market? It goes off a cliff.<\/i><\/span><\/p>\n

As you probably know by now, it turns out lemmings didn’t voluntarily commit mass suicide: they were driven off the cliff by those in charge.<\/b>\u00a0Lemming Suicide Myth: Disney Film Faked Bogus Behavior<\/a>.<\/p>\n

Investors in stocks, bonds and real estate are being herded off the cliff by the Federal Reserve.<\/b>\u00a0The name of the game in the\u00a0New Normal<\/i>\u00a0is to force investors large and small into\u00a0risk assets.<\/i>\u00a0When the\u00a0risk assets<\/i>\u00a0blow up, the herd plunges headlong over the cliff en masse.<\/p>\n

 <\/p>\n

Virtually every statistic and every public utterance by Federal Reserve spokespeople or mouthpieces is designed to persuade us of several untruths<\/b>–untruths that are the essential foundation of the vested interests benefiting so mightily from the corrupt, unsustainable status quo:<\/p>\n

1. The official statistics–unemployment, GDP, etc.–are accurate reflections of actual economic activity.<\/p>\n

2.\u00a0Risk assets<\/i>\u00a0(stocks, bonds and real estate) are no longer risky because “the Fed has your back.”<\/p>\n

3.\u00a0Too big to fail\/jail<\/i>\u00a0corporations are the foundation of our prosperity, so no expense will be spared to bail them out and restore corporate balance sheets and profits.<\/p>\n

That each of these propositions is self-evidently untrue creates a massive problem for the Fed:<\/b>\u00a0the Fed and its minions must overcome the weight of truth with propaganda and persuasion–and if that fails, then it must strip anyone who dares leave the herd of any safe returns on their capital.<\/p>\n

In other words–if you leave the\u00a0risk-on<\/i>\u00a0herd, you lose any hope of low-risk returns and if you manage anyone else’s money, you also lose your job.<\/b>\u00a0The Fed is herding the crowd with financial tasers, causing anyone who veers away from the\u00a0risk-on<\/i>\u00a0herd financial pain.<\/p>\n

Anyone who dares to bet against the\u00a0risk-on<\/i>\u00a0herd and the Fed: you will be destroyed.<\/b><\/p>\n

\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n

 <\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

The Fed Is Funneling the Investing Herd Off a Cliff\u00a0 What happens to price in a bidless market? It goes off a cliff. As you probably know by now, it turns out lemmings didn’t voluntarily commit mass suicide: they were driven off the cliff by those in charge.\u00a0Lemming Suicide Myth: Disney Film Faked Bogus Behavior. […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[127,303,305,6311,6065,6312,4924,690],"class_list":["post-9029","post","type-post","status-publish","format-standard","hentry","category-economics","tag-charles-hugh-smith","tag-fed","tag-federal-reserve","tag-investing-herd","tag-investors","tag-lemmings","tag-oftwominds","tag-risk"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/9029","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=9029"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/9029\/revisions"}],"predecessor-version":[{"id":9067,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/9029\/revisions\/9067"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9029"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9029"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9029"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}