“Solid jobs data weighs on US markets”
laments Associated Press. “Another largely solid U.S. jobs report kept a lid on markets Friday by keeping investors on alert for a possible reduction in the Federal Reserve’s monetary stimulus.”
The next headline in my Yahoo feed was “Futures dip as US economy shows strength” – what is wrong with this picture?
It’s laid out for all to see in plain english – up is down, good is bad and if we are to buy in to the conventional wisdom that the financial markets are a barometer of the wider economy, jobs are now bad for business.
Yes sir, this is the world we live in, The New Normal. Seems strange doesn’t it? Does anybody stop to ask why it’s like this?
The ostensible reason is because all of this “good news” (let’s not peer under the veil of the heavily massaged jobs reports and just pretend it’s actually a good one) means that soon The Fed may start “tapering”. (They won’t, because they can’t, but this is the “word on the street”).
But one is agog because the lesson here is just so obvious: Political central planning of all markets leads to distortions so grotesque that the outcomes actually invert and backfire.
And that brings us to where we are today. If anybody doubts for a second that the only reason markets are hitting all-time highs is because of money-printing and market propping, a casual glance at today’s headlines should rattle that delusion.
(War is peace, slavery is freedom and ignorance is strength).