The Golden Age of Fraud

If Fred Flintstone in the White House is not a warning. There is no warning...

Earlier this week yet another Federal Reserve governor endured scathing opprobrium to coerce her resignation so that Trump can install another stooge to take her place:

Two of the seven current governors, Christopher Waller and Michelle Bowman, are Trump stooges. Another seat opened up earlier this summer, when Adriana Kugler announced she would step down. If Trump is able to remove Cook, he would ensure that a majority of the board shares his view on monetary policy."

“What she did was bad”

She was in the wrong place, at the wrong time.

So far, Lisa Cook didn't capitulate, but today J. Powell fully capitulated, AS EXPECTED.

Clearly, expected does not mean positioned. Despite Fed futures already at a 95%+ probability of a rate cut in September, today it finally rained 100%. And that last 5% catalyzed a massive short covering rally led by imploding Tech stocks. Which I will discuss in the Casino section below.

But first, let's discuss rampant fraud in all of its forms that has fueled this global melt-up to meltdown:

Trump has "nailed it" this year: bank de-regulation forcing banks to be more friendly to his expanding Crypto empire. Another tax cut so the ultra wealthy can abscond Social Security to the Cayman Islands. A trade war "shake down" of foreigners to give the illusion of a solvent tax cut. Inflation statisticians fired on the spot for not agreeing with Trump's CasinoTopia. The impending takeover of the Federal Reserve. All that ON TOP of Wall Street and Silicon Valley's stock market criminality at level 11.

Why even blog? In an Idiocracy the potential audience is de minimis. We are witnessing a level of corruption and criminality never before approached in U.S history. But be clear of one thing - the REVELATION of fraud is inevitable.

Which gets us to the Casino.

So far the (long-term) bond market did not implode at Powell's capitulation. That said, today was a day of extreme short covering, so the true trend will not be revealed until next week. The first week of September, at the latest.

Recall that last August when the Fed similarly telegraphed a rate cut in September, what happened next? The Yen (dollar) carry trade spontaneously exploded. Now, we are witnessing the exact same risk deja vu, but this time with global markets partying like its 1929.

August 21st, 2025:

"With trade uncertainty receding somewhat after an agreement between Tokyo and Washington in late July, economists and investors expect the Bank of Japan to resume monetary tightening in the near term"

Reset the Dow crash clock to zero days because the Dow Theory (Transports) non-confirmation has grown even wider than the last two times the market imploded:

Momentum Tech (small cap) kissed the 50 dma sayonara today:

The Artificial Intelligence scam is the biggest fraud of all. Not only is it driving an asset bubble ahead of impending depression, but it's ALREADY giving CEOs any excuse to layoff workers and to suppress hiring. A disaster that will impede any attempt at recovery.

"Artificial intelligence is going to replace literally half of all white-collar workers in the United States," Ford (F) CEO Jim Farley said in June."

In summary, Trump is the Bernie Madoff of presidents. Those who BUY INTO his epic bull shit and the rampant fraud that attends this biblical juncture...

Were supposed to.