Search This Blog

Saturday, January 1, 2011

Let the Bankers Eat Cake

I was just looking at some interesting charts.

I read a lot of business news. Everyone has been cheering 2010's 11% rise in the stock market. This magical feat was accomplished by some of the greatest manipulation I have ever beheld. High Frequency Trading. (HFT) Banks buying stock thanks to the repeal of the Glass Steagall Act. The FED literally making money out of thin air and giving it to big banks. Waiting like a bunch of vultures for the rest of us to get in so they can dump that stuff on us.

Interestingly enough, you would have made 30% by simply buying physical gold last year. No forms or applications to fill out. No great market collapses. No taxes to pay. That is a very significant advantage. The government cannot take a bite out of your ass. Yet.

Anytime you make money and the government cannot prove it or steal it from you, you win. This has to piss banks and the government off.

I watched that very thing happen last week. A gal came in, plunked 200 ounces of silver on the counter and received 6100 dollars. She turned to me and said she bought the silver 25 years ago for 1200 bucks. She would have made an additional 400 dollars had she sold it on Monday morning. Had she waited her entire life for that moment? Was silver a good investment? Sure. She made something net of a 15 to 20% gain every year she held those bars. And you can bet that 6100 bucks ain't going to find it's way onto a Federal Tax form 1040.

Silver made 80% last year. It finished 2009 at 17 bucks an ounce. There is significant evidence to show that silver has been manipulated and held artificially low for some time by the same entities that want you to invest in the stock market. That would be the government, the banks, and the wall street vultures. Everyone gets a cut of your dough that way. They get nothing when you buy physical precious metals, hold it, and sell.

Then it dawned on me. Obamacare had that sneaky little provision that forced business owners to file a 1099 every time they conducted business transactions in excess of 600 dollars. When does that law go into effect? How do you get around that? That's when I got the idea that buying gold and silver in significantly small physical amounts made a lot of sense. An ounce of silver, despite some wild ass predictions out there, is not going to trade beyond 600 bucks any time soon.

In 2011, as the Bernank continues to artificially ramp up the man made world of paper, you have to ask yourself. Do I want to invest in wood pulp, gold, or silver? Do you really think the demographics support a younger and smaller generation making less and buying up stock supplies? Do they have the capacity to gobble up all of that over priced wood pulp while they are being taxed to death? Not hardly.

Here's to another wonderful year. Let's see who this year's out performer is again. Let the bankers eat cake.  

Friday, December 31, 2010

The Greatest Story You Probably Didn't Hear About in 2010

The mystery missile fired off the LA coast has been one of the greatest cover up stories of the year. In fact, if our military complex truly doesn't know who fired that missile- we have wasted billions on our missile defense systems and we have a bunch of asshats sitting at the controls.

The mystery missile was the second greatest story of the year to fall into obscurity. There was only one larger.

The FED's disclosure that they loaned 9 TRILLION dollars during the financial crisis ranks as the greatest story you have likely not heard about. The FED fought like hell to keep this information from being disclosed. Once it was, the MSM, the (main-stream-worthless-media) hardly even noted the event.

So how in the hell could the FED loan 9 trillion to the banking sector with no collateral- with over night rates so fractional- we didn't make shit? Why did Hank Paulson plead for the 700 billion dollar bailout package from Congress? Why couldn't the FED just dream up another .7 trillion loan and tack it on? If you can answer either of those two questions- you are far better than me. I think it had to do with paying off Hank's counter party claims that Goldman had on AIG. Without further adieu, watch this- it explains it fairly well.

Thursday, December 30, 2010

Quick Silver Update

If you haven't bought any gold or silver lately, have a feeling a dip is coming.

Both silver/gold dealers I use were reporting that people were selling more than they were buying today. As I was speaking to one of them, a gal walked in and plunked two 100 oz. bars on the counter and walked out with 6100 bucks. Said she had paid 1200 bucks for them in 1987.

Once the shakeout occurs at this level, maybe a few weeks, expect prices to continue to rise. I am going to wait for some more dips. Just a thought.

U.S. Thugocracy Criticizes Russia, Ain't That Just Rich?

The United States is upset with Russia. Russia has jailed their richest billionaire oil tycoon and now have tacked on a few more years to his sentence.

U.S. Secretary of State Hillary Clinton led a chorus of political figures in the United States and Europe in condemning the verdict. It "raises serious questions about selective prosecution and about the rule of law being overshadowed by political considerations," she said.
Khodorkovsky is nearing the end of an eight-year sentence after being convicted of tax fraud in a case seen as punishment for challenging the Kremlin's economic and political power, in part by funding opposition parties in parliament.

Now I don't know whether Khodorkovsky is guilty of tax evasion or siphoning off billions. I do know that Putin used to be the head of the KGB. He might know a thing or two about Khodorkovsky.

At any rate Mr. Putin, here's how we do it in the United States. Please take notes.

Our politicians are all greased by big banking interests. So they take banking handouts, millions, and in return they re-arrange all of the laws to benefit these bankers. They let bankers commit millions of fraudulent acts and loans. They get great mortgage deals like Senator Chris Dodd's Irish cottage from Countrywide. When the whole country was fully plundered and ripped off, they gave these prick banksters 9 trillion in FED loans and another 700 billion more of taxpayer money. Money that did not exist.

When our citizens cried out- our politicians said, "go fuck yourselves." They picked out one of the greediest criminals of all, Angelo Mozillo of Countrywide fame. Insider trader and fraudster extraordinaire. They held a civil trial, "found him guilty" and plundered him for 67 million, and let him go free. Twenty million of that was paid by Bank of America. This dog and pony show was then proclaimed a great victory for the thugocracy.

In our country, we practice selective prosecution and ignore the rule of law because of political considerations.

Wait a minute! Where have I heard that before? Oh yea, Hillary Clinton said that about you Russians.

Ain't that just rich? Shame on you Russians. Thank Gawd we don't do shit like that here.

Wednesday, December 29, 2010


Imagine if you will, hooking up with an attractive attorney. She blows gobs of money planning your (her) wedding- nearly 100k.

Because, don't you know, she's entitled to live in America.

Then in some moment of clarity, the groom realizes that he is about to marry Selfzilla. He beats feet. Selfzilla is pissed. Rather than write her own careless spending off to poor decision making, she gets angry, starts spewing blame- which has become a great American past time.

I don't know who that groom is. But something tells me he dodged major big time shit. The best money you'll never spend brother. Imagine a few years down the road in divorce court. That 100k gonna look like something you put in parking meters.

Well at Least They Haven't Outlawed Parents Rights to Profile, Yet

Dad, I met the neatest guy last night. I spent the night at his place.

Arrested for possession of a controlled substance, violating parole.

Honey, When Is the Yeti Going To Get Here With Our Pizza?

I had hoped to buy some more silver at a sub 30 dollar price. I may have missed the boat. Silver crashed the 30 dollar gate, closed above that level and is not hovering around 30.60. That represents a better than 4% move in two days. I am waiting for everyone that bought around 14 or 15 and has doubled their money to off load some gray matter and give us a dip. I'm not sure that's going to happen. Gold has been rising steadily as well. It held the 1400 dollar mark.

I've tried to explain the inverse relationship that gold and silver have to the value of money. In researching debt levels- I came across a fantastic and historical piece of web history from four years ago. Congress was raising the debt ceiling to 9 trillion in 2006. Check out this headline. You'll love it.

In four years time, our debt level has risen 60%. That is a parabolic move. Not quite as ridiculous as flipping a house you owned for two years for a 100 percent profit in 2006- but a very spectacular rise nonetheless.

Our current debt ceiling, set in Feb of 2010, is 14.3 trillion. We will hit that mark before the end of February, 2011. In fact, Congress will be voting on raising the debt ceiling long after it surpasses that level. I have 100% confidence that they will. They are like crack addicts or alcoholics. They cannot stop.

There is only one triggering event that can stop the rise of gold and silver. That would be a unified effort by the President, the Congress, and the Bernank- to immediately halt QE2, drastically hack all government spending, and close down wasteful government spending like the Dept of Energy and the Dept. of Education. Would the U.S. go to hell in a handbasket? Of course not. But then closing that garbage down would be admitting we never needed it in the first place. Obama added thousands of 100k government jobs and left GM's union intact. So the chances of some triggering event such as the one I speak of, would be about the same as the Yeti landing his spacecraft in your yard and delivering a canadian bacon and pineapple pizza.

At current debt levels and static interest rates, we will be at 17 trillion debt levels by the end of Obama's term. That bet comes off the table if interest rates rise. We will be financing 1 trillion a year in interest alone at 6%. We are bankrupt. An excellent read from AT. When will that truth become self evident to the world? Soon I think, in just a couple of years. Which collapse comes first, the euro or the dollar? I was banking on the euro until China said they would help bail them out.

This is not bad news. It is just news. Whether you protect yourself against this, an unprecedented event, is up to you. I guess you have to decide whether you think the Yeti is going to knock on your door holding a flat box or not. 

Tuesday, December 28, 2010

Wussy Gov Gets Game, Economic News Bad- POMO Market Will Ignore It, Gold and Silver Blast Off

The Pennsylvania Governor will get his Vikings-Eagles game tonight. This after calling all of us wussies because some upper crust NFL types saw fit to practice a little blizzard caution on Sunday.

How 'bout them Saints?

Let's hope Governor Rendell stays away from local news. He may discover that some fully grown adults actually fondle and molest children. He will then call us a nation of "cho mos." That is slang, ya know, for cho mos'.

I have followed Michael Vick's (aka Ron Mexico) career closely. From Virginia Tech, to Atlanta, to yelling at him because he could not complete a ten yard pass, to giving out anonymous herpes, to dog fighting, to prison, and back to the Eagles. I think Vick is just some crazed kid that won the DNA lottery for football skills. I have been secretly rooting for him. I believe in second chances. Dude has actually been throwing the balls to his receivers rather than the turf. Tonight, I will be rooting for him and the Eagles despite Governor Rendell behaving like a dipshit.

All of today's economic news is shitty. Not to worry though. The stock market is now owned by the FED and Brian Sack at the NY FED is scheduled to give member banks another 7 billion bucks to buy Apple stock. A brief rundown. Consumer confidence was a huge miss, Case Schiller home prices declined again, the European Central Bank had a failed auction, China said they were cutting domestic car sales in half or about 400,000 which will not be good news for the new Ford plant in China. Oil up again and bond prices are down. All of this news and bet me, the market rises by days' end. We are two hours in to today's trading. Behold the power of 7 billion dollars worth of POMO.

All of the floor traders took the week off. Good for them. Computers will do all of the buying anyway.

Gold and silver up 1.5% and 2.5% respectively. That pesky gold and silver. Seems that unlike the FED owned stock market, gold and silver seem to actually behave independently and rationally given all the news of the day. It's nice to see at least one market, the metals complex, behave predictably.

I am kind of bummed. I was going to buy more gold and silver today. I buy on dips, but I might just buy some more anyway. I have a feeling that JP Morgan lied about covering it's enormous silver short position. They probably use POMO to unwind those positions, free of charge, so to speak. Read that story here.

Here is one of the architects of our ongoing disaster. Blythe Masters, credit default swap queen and silver shortress at JP Morgan. I have forever etched her face into my memory. Kind of like I used to do with those cho mos' pics on wanted flyers.

Monday, December 27, 2010

When Did Gallup Start Polling Crack Houses?

Geezus. I think I need some valium.

Barack Obama is the most admired man? Hillary Clinton, that sexless would be spy, the most admired woman? Gawd we're in a lot of trouble.

Governor Calls Us a Nation of "Wussies"

NFL cancels Vikings v Eagles game due to snow, this is the response.

Governor Ed Rendell joined countless fans upset about the game's move to Tuesday when he told FOX News
"It's an absolute joke. I was looking forward to this. It would have been a real experience. This is what football is all about. We're becoming a nation of wussies."
Now there are only a few things in life worse than having a politician call you a wussy. Perhaps an 11 year old daughter calling her mother immature. Or a guy living at the mission telling you to get your shit together.

Whenever someone makes some blanket statement that raises my hackles, I check to see if they have a law degree. It's just a weird thing with me. Twenty five years worth of listening to their bullshit- bullshit spewed from what they think is the intellectual high ground. So of course, not only is Rendell a lawyer, he is married to a Federal Judge. A double whammy. It reminds me of a story.

The state patrolman was called to the scene of a bus crash. Upon arrival, he discovered a man by the side of the road, head in his hands and sobbing uncontrollably. The trooper asked what had happened. The man said he was following the bus down the narrow and winding highway when it veered off the road, through a guardrail, and rolled down a steep embankment. The bus came to rest 1000 feet below. The man said he had rushed down the steep slope to assist any injured people. Upon entering the bus, he found that every one was dead. Scattered among the debris were legal pads, written briefs, and several of the bodies still had name tags attached to their clothing. The tags indicated that they were lawyers attending a convention in a nearby city.

Upon hearing this, the state trooper breathed a sigh of a relief and looked quizzically at the man. The trooper said, "Well it was only a busload of lawyers, it could have been worse- why are you crying like a baby?" The man replied, "Because there were 3 empty seats."

Getting called a wussy by a politician and a lawyer. Geezus, ain't that rich? I think I am going to go down to the Vista Bar and have a drink. Who knows? Maybe some drunk will tell me I got a drinking problem.