Here Comes the Top: American Establishment Launches Cultural Revolution
The rally in stocks has masked the underlying deterioration in social mood since the year 2000. Extreme positive social mood carried into 2017 though, with nations such as Germany implementing the most extreme immigration policies since the Romans allowed the Visigoths (being destroyed by an invading Hun army) across the border around the year 372. Less than 40 years later, they would sack Rome. Germany is like the vampire of Europe though, the misery in the rest of Europe is good news for the Germany economy.
In the rest of Europe, the mood is souring on tourism.
In the United States, a cultural revolution has begun. Back in November, Chinese saw the election of Trump as a sign of popular revolt: Chinese citizens warn of China-style Cultural Revolution in US
Donald Trump’s stunning victory over Hillary Clinton, a veteran politician, is a sign that many underestimated the amount of anger there was directed towards the elite in the United States, China’s state media and citizens are saying.
Some warn of similarities between what is happening in the US and the conditions before China’s Cultural Revolution, which started 50 years ago when Chairman Mao Zedong mobilized young people to stamp out “bourgeois” elements he claimed had infiltrated government and society.
The mistake Chinese make is thinking Trump is in charge. The public may dislike their government, but the permanent government or Deep State has vast powers that allow it to oppose the President. The threat of Cultural Revolution was never from Trump, but from the media, academy, and permanent government. Mao launched the Cultural Revolution to remove his enemies and cement his power. After the “Russia hacking” and then “Russia collusion” narratives failed, the elite decided to act as if Hillary won and move on to Cultural Revolution.
Breitbart: Chinese Communists Salute America’s ‘Cultural Revolution’: the Charlottesville Aftermath. Not all the Chinese are cheering on social media though. Some are disturbed by it, others are only happy about it because it will destroy America and allow China to become the world superpower without a fight.
If we are bullied into accepting the destruction of traditions, common sense and history, insanity will intensify. It will not stop at Confederate statues. America is in a slow motion but still radical cultural revolution. I want to end with George Orwell’s quote from 1984 (the book).
“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.”
This isn’t a sign of the peak though, rather it’s a sign that mood is already moving into the negative phase. As for signs of the top:
Now comes a survey from Discover Financial Services and Match Media Group, parent of Tinder and other dating sites, that shows just how appealing a good credit score can be. Financial responsibility was ranked as a very or extremely important quality in a potential mate by 69 percent of the 2,000 online daters surveyed. That placed it ahead of sense of humor (67 percent), attractiveness (51 percent), ambition (50 percent), courage (42 percent), and modesty (39 percent). A good credit score was associated with being responsible, trustworthy, and smart.
That’s right. These amorous respondents effectively put credit score 18 points ahead of cute.
Valuation are stretched in the market.
ZeroHedge: Real Vision’s “Killer Charts” For Q3 2017
We are in the “boy who cried wolf” phase of bearish calls. Anyone coming out with a bearish call or sticking with a long-term forecast (Hussman) is mocked.
The divergence between mood and markets in 2017 was a result of Trump’s surprise election. The left would be as angry with Hillary as President. A witch hunt for Nazis, removal of statues and first amendment restrictions would be more intense because of official support from the White House. Trump’s win cause a jump in mood on the right and among independents. Now it is clear the agenda will be downsized. The Republican Party opposes Trump along with the Democrats. Steve Bannon has left the White House to carry on the battle from the trenches.
I’m not selling all my stocks today, but I am now offsetting most of my bullish positions with bearish ones, and all my new speculative positions are on the bearish side except for long-USD.