The Fed Torpedoes the ARKK

Let us reflect back to the “glory days” of the German submariner fleet. During early 1942 they were able to prowl the US Atlantic and Gulf Coast and pretty much sink any ship they wanted due to the wilful negligence of the Atlantic command and Coast Guard of that era.

Fast forward to today’s world.

A crazy woman who thought that there is no freaking way the .com bust could ever happen again decided to load up on every POS speculative NASDAQ stock that would justify 80:1 earnings ratios and proclaim “I’m the smartest bitch in the world!!!”

Or something like that.

One year after the bust began, how’s that brilliance looking now:

Dat bitch be sunk.

If anyone has any brains left after the 2000 NASDAQ butcher shop, the 2008 bankster heist, the 2018-2019 Fed stupidity, and now the GFCMoFoCRASH which is ongoing thanks to the Fed, then one would find humor in the following statement from Cathie Wood, founder and frequent CNBS guest about the Fed:

ARK Extends An Open Letter To The Fed

This would not be amusing unless follows along all of the interviews where she exhibited and almost bragged about being the smartest woman in the world (Please God, if so, SMITE us all).

Nay, this statement summed up the desperation of her pleas:

In ARK’s latest In The Know video, out of concern that the Fed is making a policy error that will cause deflation, we offered some data for our “data-driven” Fed to consider as it prepares for its next decision on November 2. In the face of conflicting data, the unanimity of the Fed’s last decision to increase the Fed funds rate by 75 basis points was surprising.

In this summary, we delineate first the upstream price deflation that is likely to turn into downstream deflation. Then, we focus on the two variables––employment and headline inflation––upon which the Fed seems to be making its decisions. In our view, both are lagging indicators.

But wait, there is more desperation:

Commodity prices are leading indicators, upstream in the stages of processing. Most commodity prices have peaked and, except for food and energy, are falling on a year-over-year basis, as shown below. Without question, food and energy prices are important, but we do not believe that the Fed should be fighting and exacerbating the global pain associated with a supply shock to agriculture and energy commodities caused by Russia’s invasion of Ukraine.

Oh how I have to address this one by one.

1. “Commodity prices are leading indicators” = 100% unadulterated bullshit. Markets which are openly manipulated by the large financial institutions are as reliable for leading indicators as bullish derivatives on Cathie Wood’s ETFs. The truth is that the the commodity market is being dislocated due to malinvestment and the dollar distortions which do not at this time accurately reflect available supply nor demand. When the petrodollar dies, all is over for the current commodity market as priced and bid.
2. The Fed nor Russia have squat to do with what is happening. It’s the repatriation of dead dollars back into the US causing a small but growing increase in permanent embedded inflation.
3. In one sentence she says that the supply shock in “agriculture and energy commodities” is a problem but on the other hand deflation is a real threat. Get your story straight you stupid broad. You can not butter both sides of the rationed bread and call it a sandwich.

Reality is her malinvestment is causing investors to sell, short, and flee. Suck it up buttercup and admit it:

You’re a female Jim Cramer.

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