Weekend Dedication – Central Bankers

 

 

 

Trader Scott’s Market Blog

October 7, 2016

 

 

 

As well as being the voice of Shaggy in the Scooby Doo cartoons, the great Casey Kasem hosted the American Top 40 radio show where he used to do song dedications. I would like to continue that tradition, but instead by using mocking dedications to the globalitists, neocons, elitistists and their agenda. Here is a recent dedication. The first one,Don’t Fear the Reaperwas dedicated to the almost 35 year bond bull market. And I will re-dedicate it this month, when on Oct. 26th it has its’ 35th birthday. The epic bond bull market started in 1981 when intra-day yields on the long bond hit 15.21%.And yes, I do believe that next decade those yields will be retested. And I also believe that thisbond yield chartis themost important chart in the world.The global economy, and most everything on this planet rests on the “theory” that the central bankers can keep long bond yields at these low levels as long as they want. I have zero confidence in their “ability” to accomplish their goal. Supply will eventually overwhelm demand. It always does.
So on to this weekend’s dedication, but this one is not for a person, but for an esteemed global entity – Central Bankers. There has been plenty of discussion about Central Bankers never being able to exit their unprecedented monetary experimentation without a complete unraveling of the global derivatives situation. This will then completely destroy the great economic “recovery” which ALL of the people of the world have been enjoying since this experimentation kicked off in earnest in 2008 with the brilliant economist and former Federal Reserve Chairman Ben Bernanke. He then handed the reigns off in 2014 to the greatly admired and respected Janet Louise Yellen. She has repeatedly assured us that her desire to raise interest rates will flow perfectly smoothly. And why would I not believe her? The Chairwoman, and all the world’s Central Bankers, have done such a magnificent job of navigating the economic waters. Therefore I would expect the Central Bankers of the world to encounter no problems and no volatility whatsoever, when they begin their exit from the monetary experiments. After all, they promised us, didn’t they? So to the world’s central bankers this song is dedicated to you.

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About

img_0074bwcrsmTrader Scott has been involved with markets for over twenty years. Initially he was an individual floor trader and member of the Midwest Stock Exchange, which then led to a much better opportunity at the Chicago Board Options Exchange. By his early 30’s, he had become very successful in markets, but a health situation caused him to back away from the grind of being a full time floor trader. During this time away from markets, Scott was completely focused on educating himself about true overall health and natural healing which remains a passion to this day.Scott returned to markets over fifteen years ago where he continues as an independent trader.



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