Dumb AF hedge funds reeling. Tudor lays of 15% of staff amid losses and general cluelessness.

Paul Tudor Jones, the billionaire founder of Tudor investment Corp cut 15% of his staff amid losses and redemptions. You could see this coming a mile away.

The hedge fund industry is reeling because these guys are complete morons. They got everything wrong from predicting hyperinflation from monetary operations to debt crises that never materialised to warnings about skyrocketing interest rates to endless recession calls and market crashes, and promises of soaring gold prices and on and on.

All because they don’t understand sovereign money systems. All because endlessly conflated currency issues and currency users. All because they were too “serious” to pay attention to MMT.

Now they’re dying. Good. A total bunch of unjustifiably rich jerks.

Tudor Jones, Soros, Druckenmiller, Chanos, Kyle Bass, Schiff, Gundlach, Gross, Dalio, Ackman, Einhorn...I’m sure I am leaving out many, but those are some of the big names. Totally clueless. They don’t understand MMT and if by chance they've heard of it I am sure they scoffed at it. Losers.

Let ‘em laugh. I am talking their money.

This is the approach that allowed me to call everything right. My students and followers, many novices, running circles around these hedge fund clowns. In currencies, bonds, commodities, stocks, gold, economic forecasters.

The pretenders are exposed for the fools they are. Their money will be gone soon unless they buy some more politicians that will allow them to cheat and commit fraud and insider trading so that they can protect their fortunes.

In the meantime me and my team will be taking nice chunks of their money away. Honestly. Legally. Without cheating.

Knowledge is power and combined with the right information that's killer.

Dogma, ideology, arrogance, ignorance, stubbornness,  blindness...all applied to these idiots. Good bye to the whole lot of them. Ignorant parasites. They suck.

Goofball "Rich Dad, Poor Dad" guy calling for a major crash. So go all in!

Remember that goofball, Robert Kiyosaki? He's the author of "Rich Dad, Poor Dad." He wrote that book, got famous, and then started giving seminars about eight or nine years ago. I think at one time Trump was even involved with him. Kiyosaki's promotion company is bankrupt now and he's being sued, but that's a whole other story.

I just saw that he's back and he's calling for a major crash, a crash he says he predicted in 2002. Should you be scared? No. It's a gift.

Kiyosaki is clueless. Here are some of his other predictions: He was telling people to buy silver and gold several years ago because there was going to be hyperinflation. He had the same, ridiculous reasoning as morons like Schiff and Jim Rogers and Glenn Beck. Idiots. 

Now he's been screaming Japan debt crisis and China on the ropes with debt, blah, blah, blah. All the usual idiotic goofball stuff a la Kyle Bass and other idiots.

Here's what you do when you see a guy who is totally clueless yet goes around making embarrassingly wrong predictions: you fade him. Big time.

Fade Kiyosaki on this. You'll be doing a public service and it's free money.

Time to fade Jim Rogers, AGAIN. And make more money...AGAIN!!

Bow-tied buffoon

Back in April, clownish, bow-tied buffoon, Jim Rogers, said he was bullish on the dollar. I wrote about it here saying that one ought to short the dollar. History has pretty much shown that if you do everything opposite of Rogers you will make a lot of money.

Sure enough, the Dollar Index at the time Rogers professed his love for the greenback was just under 100. Today it's around 95. The euro/dollar exchange rate was at 1.06. Today it's at 1.13. And dollar/yen was at 119 and it's roughly at the same level today.

I only bring this up because Rogers is saying that the markets won't let the Fed keep the rates up for long. LOL!!! He's the same guy who, for YEARS, had been saying that the markets wouldn't allow the Fed to keep rates low: there'd be inflation and hyperinflation and China would balk at buying and on and on and on. The idiot is probably LONG TREASURIES now after years and years and years of saying he was shorting them. Hahahahaa!!

Same with Schiff. He's been doing the Rogers thing, too, and saying that the Fed will never be able to raise rates or stop QE. That's the complete opposite of what he had been saying for years: that the markets would punish the Fed and send rates skyrocketing because of its policies.

I need to invent another language to express, in words, how FUCKING CLUELESS these guys are. But their brazen lack of humility and SHAME....WOW! It's really something to behold. Really.

Anyway, do yourself a favor and go short Treasuries. Since Rogers now thinks they will never go down (the "markets" won't let them) they'll probably crash like hell once the Fed puts through the first rate hike.

Bet against the fools when the Fed raises rates. It's a lock!

They were all wrong about monetary policy and in particular the rate cuts, ZIRP, QE, balance sheet expansion, everything. They had it all wrong. 

People like Schiff, Faber, Rogers, Reinhart & Rogoff, Bill Gross, Martin Feldstein, the GOP, Obama, and so many more. Quacks and elite quacks. Ideologues. Snake oil salesmen and snake oil saleswomen.

We were told that interest rates would spike, there was going to be hyperinflation, gold would soar to $5,000 an ounce or higher, the dollar would get crushed, yada, yada, yada.

Some are still saying it.

Now as we are on the verge of the first rate hike in seven years many of these same quacks and fools are warning of dire consequences. They're saying that the Fed has no room to "undo" what it did, that it will bring on dire consequences, that the bubble it created will blow up with a ferocity of the Bikini Atoll H-bomb test.

What do YOU think will happen?

I'll tell you what I think will happen. The exact opposite of what the aforementioned, "Gang of Clueless" think is going to happen.

Even if I didn't know a stick of economics (MMT economics), I would bet the ranch and do the opposite of whatever those idiots say just because they've been sooo wrong for so long on so many things. Now they're talking about the dire consequences of  the coming rate hike cycle.

Ha!

Wild horses couldn't keep me from betting against these fools even if I knew nothing.

Any good horse racing handicapper will tell you that you always bet on form. If a horse is prone to winning and if that horse is prone to winning even more consistently under certain conditions then you bet and you bet aggressively. But these horses are prone to BEING WRONG AND LOSING! So I will bet heavily against them.

That’s what I will be doing.

So...rate hikes? Yep...and stocks soar, dollar crashes, commodities finally get off the floor.

Why? 

Because it's the opposite of what we've been doing for the last eight years, which has been to cut rates, strip the economy of assets (central banks are doing this) and take income away from people. 

Sure, you're helping a few folks get cheaper credit, but they have to pay it back to the banks so the banks are the ones who earn and more importantly, lower rates set the price lower of many other things.

On the other hand, when the government starts issuing people checks--I don't care whether that's a Social Security check or a payment to a doctor via Medicare or INTEREST PAYMENTS--that's  money to keep and money to spend and that's a fiscal stimulus.

The past eight years have been deflationary. The idiots got it wrong. WE got it right. The next few years of rate hikes will start the boom cycle again. Buy stocks, buy commodities, short the dollar, short bonds, clean up make a fortune and invite me on your sailboat or yacht, but make sure it's somewhere warm where the water's nice and clear. 

Gold at an 8-month low

I haven't written much on gold in a while because the story's been told, mainly here, and in a few other places about how utterly lousy it is as an investment.

So many people got reamed by the disastrous advice of people like Peter Schiff, Alex Jones  and Glen Beck, all of whom were beating the table with their crazy end of the world scenarios and how you had to own gold because it was going to the moon.

What's bizarre is that these people still have huge followings, but I have stopped trying to even come close to figuring that out because it makes no sense to me other than to say it's a statement about the psychology of mass behavior and cults in general.

If there's one thing that MMT got really right it was the fact that all the central bank monetary operations would not lead to inflation and therefore that meant that gold was really a hedge against nothing.

Seeing quacks like the aforementioned get tripped up in the markets is one thing, but even really big shot names got caught up in the gold frenzy; guys like John Paulson and Soros and David Einhorn and even Paul Tudor Jones as well as many others. These were all guys running big money who were ultinmately exposed as people who knew little about the true monetary and economic impact of policies that were being implemented at the time.

Anyway, now that I've written about gold and laughed at others I guess it's safe to buy it and I will look back on this and be appropriately shamed. Haha.

Seriously, though, I will wait for the Fed to raise rates and buy into the inevitable selloff that occurs in gold when that happens. You see, just as they got it wrong about QE being inflationary the same folks are going to get it wrong about rate hikes being deflationary.

Remember, the government is a net payer of interest so a hike in rates actually equates to a fiscal   injection. It's deficit spending or, at least, spending.

I read the comments from the haters. It's awesome!

Great comments from the haters. I love doing this. It's a lot of fun.

Jim Grant...the guy who's been wrong almost as much as Peter Schiff (but more clownish) makes a Fed prediction. So do the opposite!

Jim Grant is like a funny cartoon character. Like Big Bird. Tall. Lanky. Goofy bow ties (like Jim Rogers). A doofus. He's even funnier looking than Schiff, but just as wrong--on interest rates, inflation, QE, the dollar, gold, the economy...you name it.

He says things like this:

"Central banks the world over have been suppressing [rates], manipulating them, and otherwise manhandling them," Grant argued, predicting "this experiment will end in failure" because price controls never work."

"Suppressing rates?"

"Manhandling rates?"

What's with the reference to masculinity (manhandling)? He seems to be terrified by it. It's some kind of violation (rape?) in his mind. It's a womanish statement.

And price controls never work? They work for monopolists, Jimbo. All the time. Just ask John D. Rockefeller.

Anyway he's saying the Fed will never get rid of the word "patient" when it comes to describing their position on accomodation.

With Grant saying that, I'll take that bet. I bet they remove it at today's meeting and in their statement. I'll buy the dollar and sell stocks for a trade. For today. Just to bet against Jim Grant.

Meredith Whitney’s Hedge Fund Said to Be in Turmoil

Well, she had a damn good run on one call--Citigroup--which supposedly wasn't even her call to begin with, but her boss's call when she was an analyst at Oppenheimer.

Since then she predicted 100's of municipal defaults (municipalities did phenomenal and muni bonds soared), she said the 2009 fiscal stimulus was a "mish mash" and wouldn't work; she supposedly advised John Paulson (maybe to buy gold?), then she closed down her advisory, now her hedge fund is failing...

Oh boy.

Perhaps she can go back to being a contributor for Fox.

Here's the Bloomberg story.

Too bad this is not Schiff.

John Mauldin's taking out a yen loan to pay for his Dallas apartment

John Mauldin writes this weekly commentary, Thoughts From the Frontline, which is always horribly out of paradigm.

Now it looks like he's taking out a loan in yen to pay for his house in Dallas, TX.

This makes me want to go long the yen soooooo bad, I barely can hold myself back.

Look at Mauldin's ridiculous comments:

"The Japanese are in a situation where their only real path out (of a shrinking economy) is to devalue the Yen," Mauldin says in the attached video. "This is a country that is going on sale."

In fact, he's not only predicting the Dollar/Yen will slump to 200 versus the U.S. dollar in the next 5 years, he says he is planning to hedge his entire mortgage to Japan's weakening currency in hopes of paying for his new Dallas apartment.

"The country is dying. People are retiring," he says, adding that by the time "Abenomics" has run its course, "you'll be able to buy a Lexus cheaper than a Kia."

Further complicating their comeback is what he calls the "Demographics of Doom," which highlights the growing ratio of the country's retirees compared to those actively working. "When you're at debt-to-GDP of 245% you're beginning to run up against your limit to borrow money at rational interest rates," he says, defending the country's decision and course, yet he's also certain that "it doesn't end well."

"Run up against your limit to borrow." Haaaa!!!! Japan OWNS the yen. It doesn't borrow it. Same mistake they all make--Mauldin, Bass, Rogers, Schiff...all of these idiots.

What's incredible is that the truth is very much out there now. It's amazing that these guys keep repeating the same, tired, inapplicable story.

By the way, the only real thing weighing on the yen has been Japan's trade deficit, but that has now swung back to surplus, which means that Mauldin might end up paying a lot more for his apartment.

$54 trillion PAID BACK and counting...

Just thought I'd check in and see how much of our debt we've "paid back" so far this fiscal year. Let's see...hmmm...well, turns out it's now up to $54 TRILLION. And that was in the past 10 months.

And with absolutely no problem whatsoever. The world didn't end. Interest rates didn't spike up (they're actually at record lows...AGAIN), the dollar went up, the economy is still growing, there's no hyperinflation, gold is down, commodities are down. What else? It's all good.

What say the idiots likes Schiff, Santelli, Rogers, Faber, Paul Ryan, Simpson/Bowles, Peterson, Walker, Fox News, et al?

We don't have money? Can't pay for Social Security for our seniors? Health care? Education? Infrastructure? Basic research? Jobs for the unemployed?

What a joke. We have all the money we need and an abundance of goods and services to make and distribute. It's religion that keeps us from doing it. The proof is right here in these numbers that folks at Treasury and the Fed all understand.

Rates vs. debt...gotta love this chart!

I love this chart so much I had to post it again. Here's the Federal debt (in red, millions $) and here is the rate on the 10yr Treasury (blue).

Hey Schiff, Rogers, Kotkikoff, Rogoff, Reinhart, Greenspan, Walker, Peterson, Simpson, Bowles, and the rest of you...what's your excuse now???