In Defiance of the Gods

HUBRIS
noun
  1. excessive pride or self-confidence.
    2. (in Greek tragedy) excessive pride toward or defiance of the gods, leading to nemesis
    The Weekend WSJ is chock full of stories on "The Decline and Fall of Rome" and hubris through history. A long article reviewed the Kraus play "The Last days of Mankind." The popular, Hilary promoting TV show Madame Secretary covered a near world war after the Ukraine shot down a Russian fighter jet. (wild considering Turkey) These topics seem at odds with the notion of US expansion and pending monetary policy retraction.
    Instead of the more common, "Nothing will ever go wrong again" attitude of most cycle peaks, this one is characterized by a pervasive feeling of doom. The long history of hubristic behavior and war folly is well documented - as suggested above. The reality is the Federal Reserve has consistently acted in defiance of the gods with equally dire consequences for its citizens. Behind the Fed, a long line of sketchy bankers and traders submit to the characteristic.
    The latest fear floating around the markets is the pending drop in issuance of US government securities. This meta-issue flows simultaneously with the "too much debt" EOTW-ers in a perverse circle of the inane. The new hiccup is the scheduled rise in Bill issuance and the large take down of securities by MF investors (42% by some recent counts). The November rise in T prices has taken place under a plethora of twisting curve scenarios and simplistic "sounds right" forecasts; keeping John Q well  exposed to the obligations of Uncle Sam. Succumbing to the Disney force feeding (get it?) of Star Wars onto the public, the Fed is poised to fire the Death Star into the shifting, twisting, fearing monetary much-gutch.
    The view from the vineyard is this: at the onset of the first monetary adjustment in 7 years, both the Fed and the public find themselves long historic amounts of the paltry yielding IOUs of the US Treasury. That is a position in defiance of the gods.

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