Apocalypse Now : 2014 From The Future

The wonder of a perfectly engineered market that is devoid of the unexpected that sustains historic record lows in volatility, is that it allows the imagination to flourish a little.

My reverie today took me into the distant future and movies that will be made on the market destruction that was brought about by all this central banking experimentation of today that has given us this artificial respite.

Apocalypse Now starring Bernanke and then Yellen as renegade Colonel Kurtz, perfect specimen of intelligence, charisma and leadership and the main antagonist. There is no unliking him because his purpose is pure and true, his followers all enraptured in his dark aura.


“The smell of napalm is a smell of victory”, Robert Duvall’s character, Lt Colonel Kilgore,  extolled.

Yellen’s speech scares me.

What is “not yet complete” economic recovery ? And from last week, what is monetary policy “needed to continue to promote the favorable financial conditions required to support the economic expansion” ?

People are stressed out with the valuations and paranoia is setting in, according to the Bloomberg global poll of investors.

Bubble Paranoia Setting In as S&P 500 Surge Stirs Angst in Poll
“Two years of uninterrupted gains in U.S. stocks are sowing anxiety among financial professionals, with three in five saying the market is on the verge of a bubble or already in one, the Bloomberg Global Poll found. “

And I think this rant on CNBC is perfectly warranted. Rick Santelli is my favourite presenter – he is real and sounds the most sincere and genuine of the lot there. And he is taking on the panel of 1%-ers (the top 1% earners of the population), its no wonder those chaps are all cheering on the Fed). http://www.cnbc.com/id/101834333

The world is polarised into the US and THEM.

Some time ago, when I worked in a pretty heavyweight bank, a regional boss flew down for his annual Singapore pep talk. His words were “Tell US how WE can help YOU make more money for the bank”.  US vs YOU.

And it is the same as Santelli says, 52% of Americans have stock portfolios at most and that number is heavily skewed between those who have a lot and those with just a little. http://www.businessinsider.com/us-stock-ownership-at-record-low-2013-12?IR=T&

Let’s assume it is the same for Singapore.

As I pointed out a few months back, anyone who is not part of this little diagram would have lost out and will continue to do so, having their dreams decimated (unless they can discover the new Whatsapp or Facebook).



QE is the Killer of Dreams of those who have-not.  And Rick Santelli is right.

Apocalypse Now was too gory for even my dad to consider bringing me to watch when I was a child although he had no qualms dragging toddler me to watch The Deer Hunter, a hugely disturbing movie for a little kid I assure you that has left an indelible impression on me for the rest of my life.

I watched Apocalypse Now when I was older but it still took a few days to recuperate.

It is impossible to hate the FED, QE and all that money printing that is  going on now. The repercussions will stretch into the future in a very polarised world of the have’s versus the have-nots, which will continue to grow as millionaires become commonplace and governments continue to lose popularity as assets become too expensive and out of the reach of a hard working wage earner.

We are seeing people monetising themselves online now with professional footballers are IPO-ing themselves for 4 mio for installments of 10% of earnings for 10 years and  college grads can IPO themselves for  USD 70k for installment payments of  6.94% of their earnings over 10 years.

The past has been viewed as a big mistake, no mistake about the errors of the Fed in the 70’s, 80’s, 90’s and the past decade. The present is always faultless… until it becomes a mistake. And this mistake  will not be a small one as Trillions become Quadrillions in a new world of monetary numbers.

Now, wouldn’t that make a great horror movie script in a couple of decades time ?