SVET Friday Update (June 17, 2022)
Players feel emotionally drained after the hellish Sunday’s session and the jittery mid-week. It results in BTC hourly price bars slowly arranging in a bearish flag-formation.
Although, market sentiments indicators show some positive shifts (with the fear-and-greed indicator going from 7 to 9), that can’t be treated as a buying signal. It’s just a natural traders’ compensatory reaction to the stressful working environment.
That temporary easiness might be extended to the next week, which, together with two almost inconsequential Tuesday’s and Friday’s publishing of the May’s Existing Home Sales — forecast 5.3 million (5.61 in April) — and the New Home Sales — forecast 585 thousand (591 th previously), will bring us two chairman’s ‘testimony’ appearances — one on Wednesday at 9.30 AM EST and another on Thursday at 10 AM EST.
Powell’s panic driven over-night decision to add 0.75 points instead of promised 0.5 hasn’t made this personage more popular among USA stock-holders. The whole world suffers because of one bureaucrat’s character weaknesses. It exposes, again, the inadequacy of the authoritarian governance system to the requirements of the modern, hyper-connected markets.
Today, the planet is dominated by well informed capital holders, which maintain 24/7 open communication lines and ensure a verifiable information exchange, leading to instantaneous, objective decision making. We do not need to listen to medieval ‘throne speeches’ emanating from non-elected, and professionally worthless functionaries to run our economies and, consequently, our own lives.
In the past hundred years the world economies had been plunged into deep recessions at least three times because of ambitious ‘apparatchiks’ power-games.
First, infamously, in 1930th, when creating the central government’s monstrous economic control apparatus lead to a total distortion of self-compensatory markets mechanism, which prolonged the so-called ‘great depression’ to more than 20-years.
Second, in 1970th, when providing FED with the non-checked control over the world’s monetary system and, simultaneously, burdening entrepreneurs with innumerable ‘regulations’ lead to the decade of economic stagnation and delayed major technological breakthroughs for ten-fifteen years.
Third, in 2008, when after the deep but short-lived crash of the real-estate loans market, central governments apparatuses instigated the world-wide regulatory hysteria, which lead to the ever-since-growing interference of police and militant agents into the sphere of private economic activities of every human being on this planet.
In 2022 we are still not learning our lessons. As a result, today we are facing the domino-effect of several clumsy bureaucratic attempts to keep us under their control despite them steadily loosing a basic reality grip.
First, they had kept the world-economy as a hostage to their unsubstantiated, primordial, elderly fears and their professional incompetence in dealing with, in fact, very minor, natural phenomena.
Secondly, they tried to over-compensate for the lack of economic activities (an empty supply side) by the blown-out-of-all-proportion demand stimulation program, which mainly consisted in printing the additional four trillion of USA promissory notes (instead of freeing entrepreneurs by abolishing most taxes and liquidating millions of unnecessary red tapes).
Thirdly, after markets naturally reacted to the excessive money-feeding by an excessive growth, govs puppeteers, fearing that we, again, are trying to escape their authoritarian controls, attempt to 180 their policies literally overnight by destroying the investment climate and making sure that the looming ‘second great depression’ frightens consumers out of all our businesses pipelines.
All of that insanity might be avoided by dropping 70–80% of outdated regulations, which will allow younger, technologically savvy entrepreneurs to use rising prices for creating cheaper products and to price-out gigantic corporations run by expensive bureaucracies off markets.
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