Matein Khalid
I never thought a routine telegraphed 0.25% a rate hike at a FOMC conclave would make September 16, 2026 one of the scariest days in my investing career, right up there with September 15, 2008 (the Tuesday Lehman died), September 11, 2001 the day the WTC Feng Shui twin sentinels of Manhattan died or Black Wednesday September 15 1992, when my Magyar idol George Soros and Druck broke the Bank of England and forced sterling’s exit from the ERM in the Macro trade of the decade. Scott Bessent was the Quantum Fund’s man in London in 1992 and the Yalie mastermind of the trade that finally killed the quid, the economy of the sceptred realm, the London real estate market and ultimately the 17-year Tory stranglehold on 10 Downing Street begun by the Iron Lady of Grantham whose real heir was Lord Tony of Cool Britannia and Kut Al Amara. (RIP Fisky).
The seismic fall out of September 2016 of the global markets will be as deadly as anything we saw after September 1992, 2001, and 2008. I was there then and I am here now, a pawn in a four-dimension global chess game, a casino where the croupier changes the rule of the house with every flutter of lady luck’s eyelashes. It is 2026 and Scotty is now the House on Mount Olympus, even though this Zeus owes $40 trillion that can only be financed via the kindness of strangers who will no longer bank role an Uncle Sam mired in an unwinnable forever war that will make the Iraq, Afghanistan and Vietnam defeats same like a Sunday school picnic when the sound and fury finally ends. Shakespeare was so right. Life is a tale told by an idiot, full of sound and fury, (Epic Fury) signifying nothing. Trump wants the interest rate to be 1% and true social claims that the Fed is controlled by hostile forces which means the Illuminati are out to get the big guy.
I call Scott Bessent, the Chubby Checker of global finance because he loves to Twist and Shout, albeit not on the dance floor but the $32 trillion US Treasury bond Ponzi Casino, which is more lethal than anything I ever saw in Vegas, Macao, Monte Carlo, Atlantic City or will see in Marjan Island. The 10 year note yield is not 5% and stable but I am certain it could see 7% when the war genie of an inflation economy crawls out of his bottle, trots and finally gallops. At this point Operation Twist will return with a vengeance and King Scotty the housemaster of my tribe of leveraged, “citizens of nowhere”, gnomes happily residents in the sun, sea and sand tax-free Offshorestan will discover that Batman’s Boy Wonder has engineered a 30% fall in the US dollar as Jim Baker once did at the Plaza Hotel in New York in September 1985. The first act in a monetary nuclear bomb, US dropped on the Empire of the Rising Sun. The Japanese property market lost 70% in the next two lost decades and mutual funds lost 96% of their assets. History is such a pain. It never repeats but always rhymes, making a mockery of my macro-VAR models and hypothetical cross asset correlation matrices.
Kevin defied Big Daddy-O because he knows that the Diesel shock and a $2trillion budget deficit makes a 4% CPI before Christmas certain. My own admittedly biased neuro-algos mean a 5% print in US inflation by late 2027 is a given, when the world will be in the nether world of a global recession. At that point Chubby Checker will panic and unveil Operation Twist and Scream because the financial scream will be heard all over the planet. Gold will be at $2,400 an ounce and I will buy big time as Chubby Checker plans to engineer a 30% devaluation of the USD, the reason I am loading up on my hyper growth Dead Cow wildcatters and have renamed my Angora kitty boy Hadad after the alpha male storm God of the ancient Aramaics of the Bilaad Shaam Jahaliyaa.
The HMS Titanic just hit the Iceberg last night and the 1500 doomed souls now crowding the deck have no idea that there are not enough lifeboats to save them from an icy death in the pitiless black ocean swirls below. The AI credit bubble is at least 10X more lethal than the dark fibre-dotcom meltdown of 2000, which I also called when the Greenspan Fed turned nasty in a rate hike cycle that finally popped the Nasdaq bubble. I assure you that the 6% Fed Fund rate next summer will pop the Nasdaq index which is 40% concentrated in the same AI Godzilla’s who Dr. Damodaran of NYU says they need $10trillion in revenues just to justify their $3trillion off balance sheet Capex. These witch doctors of Silicon Valley are all set to cash out with their $2trillion IPOs while the countless victims of the 100s of the pre-IPO AI deal scamsters/ boiler room operators in town lose their shirts, skirts, kimonos, sarees and kanduras.
My advice for all the AI wannabees in town is to book a ticket for a trip in an Elon’s Falcon rocket to the Andromeda Galaxy because it will be a one-way ticket for the trillionaire Cyborg Man in all his acolytes. The Nasdaq lost 86% of its Index when the bubble popped in 2000 to 2001 and the smartest people I know on Wall Street expect a 90% wipeout when the AI-mania collides with the mother of all hard money bond bear markets.
The 14X leverage NRI deposits that the banksters arranged for the Indian diaspora on the eve of history’s biggest bond bear market is pure evil genius. I have to tell Harish and Hema Milkpack “no 6 packs of Bud or even Corona for true blue Modi Bhakts like moi!” that a 14X leverage bank deposit is not a nest egg for the rugrats but a speculative time bomb of unhedged interest rate risk, a time bomb under your wealth whose fuse the FOMC just lit last night. There is a time for greed, and a time for fear. This is the time for prayer so Happy Diwali Harish and Hemaji.
Follow Arabian Post
Select Arabian Post as your preferred source on Google and MSN News for trusted business news and Arab politics and updates.
