• 744 days Will The ECB Continue To Hike Rates?
  • 745 days Forbes: Aramco Remains Largest Company In The Middle East
  • 746 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,146 days Could Crypto Overtake Traditional Investment?
  • 1,151 days Americans Still Quitting Jobs At Record Pace
  • 1,153 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,156 days Is The Dollar Too Strong?
  • 1,156 days Big Tech Disappoints Investors on Earnings Calls
  • 1,157 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,159 days China Is Quietly Trying To Distance Itself From Russia
  • 1,159 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,163 days Crypto Investors Won Big In 2021
  • 1,163 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,164 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,166 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,167 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,170 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,171 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,171 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,173 days Are NFTs About To Take Over Gaming?
The Problem With Modern Monetary Theory

The Problem With Modern Monetary Theory

Modern monetary theory has been…

Another Retail Giant Bites The Dust

Another Retail Giant Bites The Dust

Forever 21 filed for Chapter…

Zombie Foreclosures On The Rise In The U.S.

Zombie Foreclosures On The Rise In The U.S.

During the quarter there were…

  1. Home
  2. Markets
  3. Other

Is Congress Fiddling While Rome Burns?

I'm starting to think this is ironic ...

The country is in debt and the Government's revenue cannot cover the current debt. In other words, the cash outflow is greater than the cash inflows, so we have a Liquidity Contraction situation.

What's ironic?

The ironic part is that the Stock Market now has its Long Term Liquidity flows in Contraction territory as you can see on today's chart (this chart is updated every day on our paid subscriber site).

Back in the 20's and 30's, it was Jesse Livermore who commented that the market was all about money ... Money flows in, and the market goes up ... Money flows out, and the market goes down.

So, it is one of the reasons we track money flows ... and Liquidity Levels are now in Mid-Contraction territory which is a dangerous place to be, and a place where Congress will be punished if they don't stop fiddling around.

FYI ... An interesting commentary from Wikipedia: "During his reign, Nero focused much of his attention on diplomacy, trade, and enhancing the cultural life of the empire... He is also infamously known as the emperor who "fiddled while Rome burned". Maybe Congress should stop fiddling around?

Long Term Liquidity Flows

 

Back to homepage

Leave a comment

Leave a comment