The MSM is claiming that because the VIX is so low, traders are not factoring in the devastation that will come unless the debt ceilingThe debt ceiling is a statutory limit on the amount of money the federal government can borrow. It is set by Congress and imposed by the U.S. Treasury. is hiked. Maybe the VIX is so low because traders aren’t buying the debt ceiling drama this time around.
The MSM is about generating constant fear narratives and jumping from one frying pan to the next. Whether it be fear about COVID, or fear over inflation, or fear over domestic terrorists, or fear over mass shootings, or fear over MAGA citizens, or fear over illegal immigration over running our borders, or fear over Republicans taking the House, or fear over the debt ceiling not getting raised, most Americans know that country-club Congress will raise the debt ceiling or just suspend it again.
Congress and the Corporations
Congress does the bidding of the corporations that helped get every Congress person elected. Congress, the corporations, and the White House are all on the same side. A lot of what goes on in Congress is simply drama to appease a portion of the population. Even more of what goes on in Congress is drama to appease the rich and powerful.
Democrats will use the media, Hollywood, and the education system to claim a new bunch of radical Republicans are holding the country hostage with the debt ceiling. Republicans will use Fox News and a few conservative outlets to claim Biden’s Build Back Better agenda and his immigration policies have caused out-of-control spending that will bankrupt this country if left unchecked. But at the end of the day, when democrats are done playing to their corporate base and republicans are done playing to their voter base, both parties will vote to raise or suspend the debt ceiling. You know it. I know it. The whole world knows it. This isn’t our first rodeo and it won’t be the last.
The complacency in the VIX is a rejection of the corporate news narratives of fear over the debt ceiling. Most people know how this drama show ends and so they don’t care to trade over the outcome until that outcome actually occurs.
In the meantime, look for CNN, ABC, CBS, NBC, The Washington Post, the LA Times (all the usual suspects) to ratchet up the rhetoric that McCarthy and Republicans are not working with the Biden regime and are to blame. Forget the truth that Congress controls the purse strings and so it’s equally important that the Biden regime works with Congress. Nope. The debt ceiling will be those dirty-rat January 6th Republicans fault in the MSM. Now that Fox News is increasingly under the control of its largest shareholder Blackrock, look for Fox News to jump on the MSM bandwagon too and blame this on MAGA Republicans as they work to get the Rhino’s back in control of the party. That’s how you create an emergency and crisis using the media, and then use that crisis to increase your power and control. It’s all so cyclical and predictable so why would the VIX spike over the debt ceiling with only two weeks to go until June 1st?
It makes sense that there’s a lot more important things that could spike the VIX in the coming days and weeks like the regional bank crisis where huge banks are failing every month or so, or the slowdown in the economy from the highest interest rates in decades.