Short interim market update April 8, 2022

[SOL]

Bearish sentiment is soaring. The data we are tabulating indicates that bearish sentiment will soar to 42 or higher, which means that individuals jumped from the neutral camp into the bearish camp. Uncertainty is high and this is bullish.

On a separate not read this article and forget the Ukraine Russian war as the theme is the US is trying to maintain USD supremacy while throwing Europe to the dogs. It appears that the situation in Europe is heading to the dogs so it will end becoming a glorified Zimbabwe unless they take concrete action. Hungary is moving in the right direction and Lithuania maybe joining the ranks too. All in all it means that the US Is going to use the USD to push markets higher and higher. So for the next few year no matter how severe the correction the theme to focus on is on the trend. The trend is bullish for the markets but bearish for freedom at least in the West.

The Dollar Devours the Euro

It is now clear that today’s escalation of the New Cold War was planned over a year ago. America’s plan to block Nord Stream 2 was really part of its strategy to block Western Europe (“NATO”) from seeking prosperity by mutual trade and investment with China and Russia.

As President Biden and U.S. national-security reports announced, China was seen as the major enemy. This despite China’s helpful role in enabling corporate America to drive down labor’s wage rates by de-industrializing the U.S. economy in favor of Chinese industrialization, China’s growth was recognized as posing the Ultimate Terror: prosperity through socialism. Socialist industrialization always has been perceived to be the great enemy of the rentier economy that has taken over most nations in the century since World War I ended, and especially since the 1980s. The result today is a clash of economic systems – socialist industrialization vs. neoliberal finance capitalism.

That makes the New Cold War against China an implicit opening act of what threatens to be a long-drawn-out World War III. The U.S. strategy is to pry away China’s most likely economic allies, especially Russia, Central Asia, South Asia and East Asia. The question was, where to start the carve-up and isolation.

Russia was seen as presenting the greatest opportunity to begin isolating, both from China and from the NATO Eurozone. A sequence of increasingly severe – and hopefully fatal – sanctions against Russia was drawn up to block NATO from trading with it. All that was needed to ignite the geopolitical earthquake as a casus belli.

That was arranged easily enough. The escalating New Cold War could have been launched in the Near East – over resistance to America’s grabbing of Iraqi oil fields, or against Iran and countries helping it survive economically, or in East Africa. Plans for coups, color revolutions and regime change have been drawn up for all these areas, and America’s African army has been built up especially fast over the past year or two. But Ukraine has been subjected to a U.S.-backed civil war for eight years, since the 2014 Maidan coup, and offered the chance for the greatest first victory in this confrontation against China, Russia and their allies.

https://michael-hudson.com/2022/04/the- ... -the-euro/