Here’s Why Goldman Sachs’s Projected Post-COVID “Rally” is Risibly Corrupt

Guest Post by David Stockman via International Man

Goldman Sachs Covid Rally

The mainstream narrative is so corrupted by greed, sloth, and groupthink that it has become a caricature of itself. In plain English, what is held to be true by the powers-that-be is flat-out unreliable, unhinged, and unsustainable.

For instance, the mainstream media is giddy about the new stock market forecast from Goldman’s chief equity strategist, David Kostin.

According to this overpaid genius, the silver bullet of a COVID vaccine is now assured, owing to the Pfizer announcement, so we will soon be back to normal, and the S&P 500 will soar to 4,300 by the end of 2021.

Back up the trucks!

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QOTD

The market was down 650 points on Monday, 222 points yesterday, and futures are down over 500 this morning.

Is this just a normal reaction to rising Covid-19 cases and no stimulus deal, or are the powers that be engineering an election week stock market crash to drive a stake into Trump’s re-election chances?

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Why Stocks Are A Bad Place To Be (In 1 Table & 3 Charts)

Authored by John Rubino via DollarCollapse.com,

US stocks are behaving amazingly well given the political and economic near-chaos of the past few months. This is probably the first recession that inflated rather than popped financial asset bubbles.

Why? Because panicked governments and central banks are dumping trillions of play-money dollars into the system, a big part of which flow directly into the brokerage accounts of the 1%.

The result is a stock market that looks very familiar to financial historians. But not in a good way. Here’s a table from money manager Lawrence Lepard comparing today’s S&P 500 to its predecessor at the peak of the 1990s tech stock bubble.

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ARE YOU LOVING YOUR SERVITUDE?

“A really efficient totalitarian state would be one in which the all-powerful executive of political bosses and their army of managers control a population of slaves who do not have to be coerced, because they love their servitude.”Aldous Huxley, Brave New World

“Every record has been destroyed or falsified, every book rewritten, every picture has been repainted, every statue and street building has been renamed, every date has been altered. And the process is continuing day by day and minute by minute. History has stopped. Nothing exists except an endless present in which the Party is always right.”George Orwell, 1984

Huxley and Orwell were contemporaries. Huxley’s dystopian masterpiece was published in 1932 at the outset of the rise of totalitarianism, while Orwell’s was published in 1949 after 65 million people perished in a World War and Stalin had already murdered tens of millions of his own citizens. Those were dark times. They also coincided with Edward Bernays 1928 publication of Propaganda, in which he revealed the existence of an invisible government who used propaganda to manipulate the minds of the public to insure those controlling the levers of power were able to engineer their desired outcomes.

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Valuation Inflation

Authored by John Mauldin via MauldinEconomics.com,

“In the short run, the market is a voting machine but in the long run, it is a weighing machine.”

– Benjamin Graham

You may have noticed a bit of manic activity in the stock market. You may have also noticed inflation (as measured by various government agencies) is quite low, despite a supply interruption in numerous goods and services.

These aren’t separate events. Both are consequences of the pandemic. Specifically, they result from the government and central bank response to the pandemic. As necessary as their actions may have been, they have side effects, many unintended and some of which will not be known for years. These hastily conceived programs have even more side effects than usual.

I think we actually have high inflation, but due to these side effects it is showing up in stock prices instead of consumer prices. I believe this, not V-shaped recovery expectations, is the main reason stocks are up. Today we’ll explore why this is, and how investors should respond.

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BOILING POINT

“Every normal man must be tempted, at times, to spit on his hands, hoist the black flag, and begin slitting throats.”H.L. Mencken

Boiling Point | On the Media | WNYC Studios

After writing a particularly depressing article where I come to a logical conclusion, based upon the factual evidence of all previous Fourth Turnings, I always wonder whether I’m being too pessimistic and peddling doom, like many of the clickbait websites. The conclusions I reached at the end of my last two articles were particularly gloomy and made me wonder whether I was going too far. I thought maybe I was too pessimistic and my predictions of civil chaos and global disorder were overblown.

“A failure to meet the challenges ahead with bravery, grit, good judgement, adherence to our Constitutional principles, and a fair amount of luck, could lead to a defeat from which we will never recover. No one knows how and when the climax of this Crisis will play out, but the acceleration towards our rendezvous with destiny is in motion.” Fourth Turning Accelerating Towards Climax – May 10

It just so happened I published my last article on May 24, predicting a 2nd Civil War. I figured we might have a couple years to prepare, as there is likely five to ten years  before this Fourth Turning reaches a climax. Little did I know a black man with a long criminal background, high on fentanyl and resisting arrest in Minneapolis, would be killed by a white police thug named Derek Chauvin, who had seventeen complaints against him over his illustrious career, on the day after my article was posted. Oddly, it seems this murder will be our Fort Sumter/Pearl Harbor of this Fourth Turning.

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THINGS THAT MAKE YOU GO HMMMMM

Grant Williams and John Hussman

 

John Hussman, Ph.D discusses his valuation framework, the problematic 12-year expected equity returns, the most likely inflation outcome and shows why we’re a long way from a slam-dunk buying opportunity.

https://ttmygh.com/hmmminars/

P FOR PANDEMIC (POPULIST RAGE)

In Part One of this article I detailed the criminal enterprise that constitutes the leadership of this country. The facts are clear. We’ve been screwed over by those who were supposed to represent us. Now it is time to look in the mirror and decide whether we will continue to bow down before our keepers or step up and be accounted for in this coming fight.

Trayvon Martin Analysis: It's time for all Americans to look in ...

Corporate executives who recklessly loaded their companies with debt, while utilizing the proceeds to buy back their own stock, in order to boost their stock price and outrageous compensation packages, left their companies vulnerable to an entirely predictable downturn. After frittering trillions away on their overvalued stock, they now demand bailouts from the taxpayer, and their spineless captured congress lapdogs have obeyed their corporate masters. The 96 – 0 vote in the Senate is truly a disgusting example of the corporate fascist One Party system that reigns in the swamp. Corporate socialism is alive and well.

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