In the original The Day the Earth Stood Still, Helen Benson (played by heavily medicated and caffeinated Patricia Neal) is instructed to repeat the words "Klaatu barada nikto" to stop the robot Gort from destroying the world. As news cycles and twitter have been sucked into the vortex of Cliffs and Coins, I have found myself muttering the phrase at a variety of flat screened instruments in 2013.
The phrase was never fully translated but the common interpretation is an instruction to Gort that Klaatu (Michael Rennie) sees escalation (total destruction) as unnecessary. More importantly, the instruction is a recognition that for all of our shortcomings, Man is better off making choices than relinquishing power to machines. The connection to markets is obvious.
Buried in the sub-headlines of the week was the nugget that the Twitter Hedge Fund was expanding and opening up products. The Age of Manufactured Relevance is upon us. Although the Cliff provided some actionable trade, the Coin was market resistant hype shoved into the mainstream by the Twitterati and Blogoshere. A technologically manufactured mass marketing of an agenda.
QE may be the neutron bomb of monetary policies. The assets are fine but the people are not. The robot capital market is melding with the headline production supply chain. What's the fail-safe for the science fiction we've created? The early lesson of 2013 is the "factory" shifts into high gear when they smell some demand. Keynes' description of Say's Law fits the narrative.
The currency gyrations have increased as debt and equity has quieted in a positive way. Record amounts of money have flowed into markets recently with EM getting the lion's share. The hulking Gort of the blended automated financial/media system is making us nervous. If anything goes wrong, what magic words will halt the carnage?