SNAFU

“Fight Against Stupidity And Bureaucracy”

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It’s never pretty when some smart ass says I told you so.

But never mind that.

“I told you so.”

There I said it.

I wrote a post “The Only Way Is Up, Unless It’s Sideways” (if you want to read it click here) that all the logic in my head told me that contrary to the Fed’s threats to raise interest rates in June they wouldn’t.

They didn’t.

Gloat, gloat.

Mind you, although I’m taking all the credit that’s going, it wasn’t that hard to figure out. Despite that it did seem to be beyond most of the ‘financial advisors’ who just swallow whatever government crap that’s going and act accordingly – and usually lose money.

So it wasn’t a great surprise to me when on Friday past, after an announcement from the Bureau of Labor Statistics that reported 280,000 jobs created in May, the promised interest-rate hike expectations have moved back to this September. My guess is still that interest rates will remain near zero for considerably longer than that. (I explained my reasoning in that other post just referred to.)

SNAFU they say in the army.

For those who don’t know, SNAFU means ‘situation normal, all f***ed up’, because that’s how it always seems in the military. Usually however they muddle through because they can always count on being bailed out by the government.

With the government it’s different. There’s no one to bail them out.

The American economy, which is currently built around a staggeringly enormous debt of $18 trillion, is slowing.

Add to that equation sluggish economic recovery on the back of a collossal and prolonged printing of money by the Fed — Quantitative Easing, they called it.

And you do not have a sound enough foundation to support raising interest rates.

Some wiser voices in the Fed – maybe just a wise voice – realize the whole thing is out of control. The Fed has hinted, prodded and sometimes just asked plainly for the government to stop reckless spending habits. But the government hasn’t tightened its belt, nor doesn’t seem likely to.

What this really means is that a hike in interest rates too soon or too fast risks not only a market crash, but also a catastrophic mess for the government — and as I said in  my previous article on the subject 2016 is an election year so there probably won’t be much boat rocking going on.

Stay tuned for what happens in September, I still have some humble pie in the freezer if I need it.

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Shock Headline – The President Agrees With Me!

“Fight Against Stupidity And Bureaucracy”

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The Sunday Sermon

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I’ve been saying it for a long time – and now the President of the United States agrees with me – he doesn’t know WTF he’s doing!

I can’t say as I take much satisfaction from his admission though.

The US President is the most powerful man in the world and he has at his disposal the most powerful military organization in the world.

Yet he doesn’t know what to do with it, when to do it, or even who to aim it at!

A bit of it, belatedly and half-heartedly, is now pointing at ISIS targets in Iraq and Syria. Yes, you’re right, they are the very same Islamic terrorists he was funding for a while in Syria! He says he wasn’t, but in practice he was.

Confused?

You should be.

Because the Obama Administration certainly is!

Indeed Obama’s team of idiots have confused themselves to the degree that they don’t know what to do and are afraid to do it even if they did!

The situation is not being helped by the noise coming from the equally ill-informed politicians in the Republican camp either. Some cynics would say they are doing a lot of it with the November elections in mind!

As I’ve said before on this blog, America has never been good at foreign policy. There are so many examples over the years to prove this beyond any and all doubt (Iraq, Afghanistan, Vietnam, now Syria). But this latest debacle could turn out to be foreign policy failure on a grand scale.

This is simply down to the fact that, even yet, the Obama administration clearly does not understand the severity of the problem. They haven’t managed to process the long term threat that a well armed, well supported and well funded group like ISIS can become.

Everyone – except the President and his people apparently – knows that these terrorists will not be content even if they are allowed to establish a fundamentalist Islamic state in the Middle East. Their hatred of anything and everything in the West is total.

In fact, as we have seen in Iraq and Syria, their hatred even extends to fellow Muslims who they do not consider to be ‘militant enough’ and they have attacked and murdered them in just the same ways as they have attacked and murdered Christians.

In Syria, which is none of our business, the Obama team thought they wanted the Assad regime removed, and to get that done they thought they could support ISIS (or the anti-Assad fighters of whom ISIS were always destined to be a big part).

Now the US may well find itself on the same side as Assad in a fight against the terrorists. And that may be the crux of the US Administration’s problem. They made the wrong move, at the wrong time, in the wrong place, for all the wrong reasons and correcting the mistake will require a major volte face and sizeable portion of humble pie.

Are they big enough to swallow it?

We’ll see.   

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