US Stocks and Bitcoin Over-Heated? – What’s Next for Trump’s Wunderkind? – Western Governments Failing Everywhere – BOOM Saw it a Year Ago - [12-24-24]
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BOOM EDITORIAL THIS WEEK
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ARE US STOCKS AND BITCOIN OVER-HEATED? BOOM tries to avoid predictions, preferring to carefully examine the present and the past rather than hypothesising about what may happen in the future. However, while carefully and accurately observing the present moment and the recent past, it is wise to pay close attention to any extraordinary events which may indicate a situation of change and increased alarm.
Those circumstances currently prevail in the US stock markets and in the Crypto markets.
BOOM is becoming increasingly concerned that we are witnessing what may be the beginning of a Sell-off. The technical signals are admittedly recent, short-term in nature and, at this stage, can only be used to expect short-term consequences.
However, BOOM’s analysis shows that the Post-Trump election exuberance in US Stock prices and in Bitcoin/Crypto may be coming to an end. Honeymoons don’t last forever.
BOOM emphasises that the long term uptrend in US Stocks and in Bitcoin/Crypto is still intact. However, there are short term technical signals of weakness over the last week or two that are certainly raising BOOM’s suspicions. Readers should watch very closely for any sign of increased negative sentiment and then for subsequent changes in long term trend if they appear.. Note the surge in prices since the election victory in early November has unravelled already.
After such a significant victory from the Trump team, exuberance was to be expected. However, reality bites and it may bite hard. Trump and his team of Wunderkind® [an AI-powered performance marketing engine] must now deliver and if that doesn’t happen, then sentiment can be expected to turn against them (Wunderkind is a German word for people who achieve great success when relatively young.)
Trump made a lot of statements during the election campaign which imply that he could fix the enormous Geopolitical and Economic problems in America. However, BOOM is not so sure. In fact, BOOM is rather pessimistic now that Trump’s appointments have been revealed. Billionaires, TV Stars, Operation Warp-Speed promoters and Technocrats are in abundance amongst Trump’s picks.
None of these people have a track record of caring for the benefit of the American People at large. They have mostly been driven by ambition and the search for Fame and Fortune. There is great risk that these Wunderkind will fail when it comes to working For the People and not for themselves.
And, they are all UNELECTED, appointed, and selected, which is the major criticism made about the unelected officers of the United Nations, the WEF, the WHO, the EU Commission, the IMF, the World Bank and all the Central Banks. Many of them represent major corporations so the charges of “Fascism”, “Techno-Fascism” or “Crony Capitalism” can be made if the wheels start to fall off.
The future for the US is undeniably hopeful with a new President and the Republican Party dominance but it’s also full of uncertainty. As BOOM has explained previously, US Federal Government expenditure is completely out of control, which is a destabilising influence on the economy, and will have to be reigned in. The war in Ukraine is unlikely to be easily solved and the Biden/Erdogan inspired collapse of the Syrian State will probably increase the risk of further US troop deployment to the Middle East. A quagmire awaits them there if that were to happen. Trump should pull his troops out immediately and let the dust settle. But he probably won’t do that.
INDIA STOCKS – A WARNING SIGN? In the BOOM Editorial dated August 24, six months ago, titled ‘ASIA RESUMES BULL MARKET – INDIA THE STANDOUT’, BOOM was especially impressed with the strength of the Indian stock market. However, since late September, the BSE Sensex Stock Index and the Nifty 50 Index have both weakened technically and look headed for a decline. Again, BOOM must emphasise that this weakness has still not threatened the long term uptrend. However, alarm bells are certainly ringing in the strongest stock market in Asia. Only a fool ignores alarm bells in such a situation.
And here it is now; readers will see that the long term uptrend is not yet under any discernible threat. However, since early October the pattern has changed, especially last week with the Nifty 50 Index falling almost 5%:
CHINA STOCKS ARE STRONG – CHINA ECONOMIC INDICATOR IS STRONG. In contrast, Chinese stocks are looking stronger in the short term analysis and BOOM’s secret economic indicator for China continues to show strength:
WESTERN GOVERNMENTS ARE FAILING EVERYWHERE – THE PEOPLE HAVE LOST FAITH. BOOM has been scathing about the poor leadership in the Western, advanced economies for a very long time. Over the last year or so, we have seen the disastrous New Zealand government of Jacinda Ardern collapse. We have seen the clueless UK government of Rishi Sunak defeated and we have seen the shambolicUS government of Joe Biden’s Democrats defeated.
We have seen the Irish government defeated. And we are now seeing the German government in full crisis, along with the French government. The new UK government, led by Keir Starmer, has already lost the support of the People. Last, but not least, the Canadian government of Justin Trudeau is now in turmoil with his Deputy Prime Minister and Finance Minister, Christia Freeland, resigning unexpectedly just hours before she was to present the Fall Economic Statement. Trudeau has been subjected to public humiliation since then, recorded live for all the world to see. A Vote of No Confidence will come soon and then Trudeau’s government could fall.
The People of the West have clearly lost faith in their governments, their political class, their justice systems, their mainstream media, their so-called “experts” and perhaps all government institutions. The last four years of the Covid Panic Demic has destroyed trust right across the board. The People are restless.BOOM SAW IT ALL COMING 12 MONTHS AGO and summarised all of this exactly one year ago on the December 10, 2023. Here is the BOOM Editorial from that date. Readers can judge for themselves if BOOM was prescient at the time.
CONQUERED FROM WITHIN — DRIFTING TOWARDS THE DECLINE AND FALL OF THE WESTERN HEMISPHERE
LOSS OF TRUST IN THE MAINSTREAM MEDIA, THE POLITICIANS, THE CHURCHES AND THE JUSTICE SYSTEM
LOSS OF TRUST IN THE MEDIA
LOSS OF TRUST IN THE SYSTEM OF JUSTICE
THE END OF ROMANIA’S DICTATOR
THE GRUESOME END OF MUSSOLINI
THE UNITED KINGDOM – TYRANNY REVEALED?
THE DEATH OF MERIT – THE RISE OF INTOLERANCE
Please read the BOOM Editorial at the link above, it’s a revelation; what do readers think? In the Editorial BOOM wrote, Quote: “All this begs the question – has history repeated? Do authoritarian, fascist tyrants in disguise now run the UK, the USA, Germany, France, Scandinavia, the European Union? Switzerland? Has tyranny conquered the so-called Western democracies? Is this leading to economic stagnation, loss of institutional trust and inevitable social decline? The fall of the advanced economies? The end of civil society and “democracy” (whatever that is)? By way of example, in the UK, we have the population becoming poorer and poorer while the elites live in extreme luxury. Economic stagnation has now persisted for more than two decades.” Readers’ views at the comments below are most welcome.
COMING NEXT:
Letter from Great Britain – NEW YEAR EDITION - Saturday, December 28, 2024
BOOM Global Financial Review, Tuesday December 31, 2024
In economics, things work until they don’t. Make your conclusions and do research. BOOM does not offer investment advice.
In 2014, Richard Werner provided the first empirical evidence that banks create credit out of thin air. They do this whenever they issue a loan or, more specifically, purchase a promissory note. This is a walk-through of exactly how they do it.
Many economists are unaware of this and even ignore the banking & finance sectors in their econometric models. Prof Richard Werner explains how things are going now with CBDCs:
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