So good, so prescient, that I think it is the best read that I've had in months. Perfect. From ZeroHedge.
http://www.zerohedge.com/article/mike-krieger-exposes-big-lie
Thursday, May 5, 2011
The Last of the Last
The last WWI combat vet. He became a pacifist. Think long and hard about that. Maybe dying for your country ain't all it's cracked up to be.
I would have liked to hear what this guy had to say about that. The last of the last. http://www.washingtonpost.com/world/relative-claude-choules-the-last-combat-veteran-of-world-war-i-has-died-in-australia/2011/05/04/AFxTxfsF_story.html
I would have liked to hear what this guy had to say about that. The last of the last. http://www.washingtonpost.com/world/relative-claude-choules-the-last-combat-veteran-of-world-war-i-has-died-in-australia/2011/05/04/AFxTxfsF_story.html
European Central Bank Now Playing Kickball With the U.S.
This morning, the head of the European Central Bank broadcasted that they are done hiking interest rates on the euro for the short term. That soft move and weak talk has caused our otherwise completely worthless dollar to go straight up against the worthless euro.
Wow. And the market yawns. http://www.zerohedge.com/article/euro-plunges-dovish-trichet-comments
Wow. And the market yawns. http://www.zerohedge.com/article/euro-plunges-dovish-trichet-comments
Obama: Let Me Get As Much Political Mileage As I Can From This Bin Laden Thing
I gotta tell ya, Obama is so predictable. First it's the late night TV appearance, now this. http://www.foxnews.com/politics/2011/05/05/obama-visit-ground-zero-strives-bring-closure-victims/
I don't think Obama gives two shits about anybody but himself and his political future. After the TV appearance the other night, the casual observer might have thought Obama himself- went to the Bin Laden compound and double tapped the Great Satan.
Wow. We got 18 months of this rhetoric and bullshit coming our way. I can hardly wait.
I don't think Obama gives two shits about anybody but himself and his political future. After the TV appearance the other night, the casual observer might have thought Obama himself- went to the Bin Laden compound and double tapped the Great Satan.
Wow. We got 18 months of this rhetoric and bullshit coming our way. I can hardly wait.
Let the Spin Begin!
This morning, I was watching the news when jobless claims came out. I had a feeling that greedy corporations would begin laying people off when they felt the margin pain of inflation and higher energy prices.
Bingo. When the number came out, I was not surprised. Futures tanked a little and bounced back. Zero hedge states it best and succinctly...
And scene: jobless claims explode to 474K, beyond the worst economist expectation, far above consensus of 410K, and well above the previous (upward revised of course) number of 431K. This is the worst claims number since Augist 2010. Game over for the US "recovery."
However, Apple stock is up.
Bingo. When the number came out, I was not surprised. Futures tanked a little and bounced back. Zero hedge states it best and succinctly...
And scene: jobless claims explode to 474K, beyond the worst economist expectation, far above consensus of 410K, and well above the previous (upward revised of course) number of 431K. This is the worst claims number since Augist 2010. Game over for the US "recovery."
However, Apple stock is up.
Wednesday, May 4, 2011
Masters of the Universe Attempting Repeal of the Laws of Physics and Mathematics, Place Your Bets Here
On Monday, April 9th, 2007, the Dow Jones Industrials were roughly at the same level that they are today. (Approx. 12,700) What I would like to do is illustrate and contrast the absolute insanity between that overbought index back in 2007 and the ridiculous and overbought levels that we are seeing today, some four years later.
In April of 2007, I simply couldn't find any stock (although shippers and solars were hot) that I wanted to buy. To actually invest in- rather than trade. In fact, I saw equities as so over priced that they were just begging to be shorted. That's what I began doing. Builders, banks, suspicious little tech companies with no earnings visibility. I traded daily and that included a lot of put options. By July, I had a feeling the market was toast. I was going to be traveling for 2-3 months and I parked all of my money in cash and treasuries. I closed accounts.
In the next 18 months, the financial and economic world would implode. There were people that saw this coming. Leveraged debt and losses were incalculable. It is now known that the FED loaned 9 trillion dollars to banks (in late 2008) during that economic collapse.
I'd like to introduce a law of physics here. It is called the law of conservation of mass. The law implies that mass cannot be created or destroyed, although it may be rearranged in space and changed into different types of particles; and that for any chemical process in a closed system, the mass of the reactants must equal the mass of the products.
Think of mass as debt and know this. What we didn't know in 2007 was the scale of the economic collapse. We didn't know those losses would be socially redistributed. The losses did not magically go away. They were simply shifted from the balance sheets of financial institutions to a 16.3 trillion dollar federal deficit to be distributed among all of us. The debt was simply rearranged and socialized- we cannot do anything about that. Yet, there is a problem. Nobody is actually paying that debt. There are no jobs, there are no taxpayers, and therefore- nobody is paying down that principal. So the interest continues to build. In effect we are in far worse shape now, financially, than we were in 2007.
Nothing has changed...it has simply been rearranged.
One last thing. You must understand this. The United States equity and bond markets are an economic holy grail. Our entire capitalistic way of life is tied to those markets. Those markets have to be preserved at all costs. If those markets fail under any circumstances, quite simply, our American way of life will fail. Everything we have is dependent on those markets not collapsing. Do not under estimate the lengths that our government will go to prevent the implosion of our financial way of life. That includes lying, money printing, inflation, and war if need be.
So here we are 4 years later. There are 44.2 million people on food stamps. We have lost 15 or 20 million jobs that aren't coming back and 20 million workers that won't be paying taxes. Corporate America refuses to re-patriate the one trillion they have sitting in off shore bank accounts. The national debt accumulates at nearly 5 billion dollars a day in interest. Each days' interest is another new 5 billion created out of nowhere- that we are adding and paying interest on. We are out of time. We are in far worse shape financially than we were in 2007 and yet our stock market is at the very same levels we were when we thought we were healthy... in 2007.
How long can this charade continue? I'm not sure. It's already been four years. I am amazed at the resiliency of an American media that simply refuses to tell anything even slightly resembling the truth. Or an American public completely consumed with apathy. This is a brave, new world.
On Monday April 9, 2007, I closed out every long position that I held. Back then I wasn't worried about the dollar collapsing. We did not have a 14.3 trillion dollar debt accruing interest nor had we lost the capacity (jobs) to pay back that enormous debt. We are about to add 2 trillion to that debt ceiling along with some more interest and we still owe all of the liabilities of Fannie, Freddie. Throw in the one trillion in debt due and owing on student loans, Sallie Mae, and we can push that debt figure well beyond 20 trillion- rather easily. Those levels of debt represent 125% of annual GDP in this country.
We were better off in 2007. We might not have known the scope and scale of banking fraud but whether we were aware of it or not- doesn't change the fact that it exists. Our debt levels were far lower, inflation was contained, and we might have had the opportunity to let failed businesses fail.
So let the masters of the universe try to repeal the laws of physics and mathematics. I'm a betting man. I'm betting that they can't.
In April of 2007, I simply couldn't find any stock (although shippers and solars were hot) that I wanted to buy. To actually invest in- rather than trade. In fact, I saw equities as so over priced that they were just begging to be shorted. That's what I began doing. Builders, banks, suspicious little tech companies with no earnings visibility. I traded daily and that included a lot of put options. By July, I had a feeling the market was toast. I was going to be traveling for 2-3 months and I parked all of my money in cash and treasuries. I closed accounts.
In the next 18 months, the financial and economic world would implode. There were people that saw this coming. Leveraged debt and losses were incalculable. It is now known that the FED loaned 9 trillion dollars to banks (in late 2008) during that economic collapse.
I'd like to introduce a law of physics here. It is called the law of conservation of mass. The law implies that mass cannot be created or destroyed, although it may be rearranged in space and changed into different types of particles; and that for any chemical process in a closed system, the mass of the reactants must equal the mass of the products.
Think of mass as debt and know this. What we didn't know in 2007 was the scale of the economic collapse. We didn't know those losses would be socially redistributed. The losses did not magically go away. They were simply shifted from the balance sheets of financial institutions to a 16.3 trillion dollar federal deficit to be distributed among all of us. The debt was simply rearranged and socialized- we cannot do anything about that. Yet, there is a problem. Nobody is actually paying that debt. There are no jobs, there are no taxpayers, and therefore- nobody is paying down that principal. So the interest continues to build. In effect we are in far worse shape now, financially, than we were in 2007.
Nothing has changed...it has simply been rearranged.
One last thing. You must understand this. The United States equity and bond markets are an economic holy grail. Our entire capitalistic way of life is tied to those markets. Those markets have to be preserved at all costs. If those markets fail under any circumstances, quite simply, our American way of life will fail. Everything we have is dependent on those markets not collapsing. Do not under estimate the lengths that our government will go to prevent the implosion of our financial way of life. That includes lying, money printing, inflation, and war if need be.
So here we are 4 years later. There are 44.2 million people on food stamps. We have lost 15 or 20 million jobs that aren't coming back and 20 million workers that won't be paying taxes. Corporate America refuses to re-patriate the one trillion they have sitting in off shore bank accounts. The national debt accumulates at nearly 5 billion dollars a day in interest. Each days' interest is another new 5 billion created out of nowhere- that we are adding and paying interest on. We are out of time. We are in far worse shape financially than we were in 2007 and yet our stock market is at the very same levels we were when we thought we were healthy... in 2007.
How long can this charade continue? I'm not sure. It's already been four years. I am amazed at the resiliency of an American media that simply refuses to tell anything even slightly resembling the truth. Or an American public completely consumed with apathy. This is a brave, new world.
On Monday April 9, 2007, I closed out every long position that I held. Back then I wasn't worried about the dollar collapsing. We did not have a 14.3 trillion dollar debt accruing interest nor had we lost the capacity (jobs) to pay back that enormous debt. We are about to add 2 trillion to that debt ceiling along with some more interest and we still owe all of the liabilities of Fannie, Freddie. Throw in the one trillion in debt due and owing on student loans, Sallie Mae, and we can push that debt figure well beyond 20 trillion- rather easily. Those levels of debt represent 125% of annual GDP in this country.
We were better off in 2007. We might not have known the scope and scale of banking fraud but whether we were aware of it or not- doesn't change the fact that it exists. Our debt levels were far lower, inflation was contained, and we might have had the opportunity to let failed businesses fail.
So let the masters of the universe try to repeal the laws of physics and mathematics. I'm a betting man. I'm betting that they can't.
Buy Physical Silver On the Cheap
I am glad that the silver market is correcting. Really.
Every two bit momentum player and his dog had been long "paper" silver. I am glad to see the weak, "cut and run types" get shaken out of the market. With silver taking a 20% haircut in the last three days, what should you do?
Buy more physical silver. Fundamentally speaking, the economic disaster that the world finds itself in- has not changed one bit. In fact, it has grown worse. After this week, the United States will have eclipsed it's current debt ceiling. That's a fact. Not that anyone gets held accountable. They don't.
Last night, I was reading an article about the end game, hyperinflation. Virtually everyone that I follow, the people who I believe to be most credible, all agree that the end game is hyper inflation. I have no idea who the anonymous author of the FOFOA blog is, but the work is prima facia. In other words, I believe that what the author states is true- no credentialing required. I've linked that blog here, I read it frequently. http://fofoa.blogspot.com/2010/09/just-another-hyperinflation-post.html
I am buying precious metals anytime there is significant weakness. I am buying silver anytime it trades sub 39.00. Eventually the paper market and the real silver market will unhinge...that is to say that one day people will be trading 50 dollar an oz. silver futures while the actual metal is trading for 100 bucks an oz. I believe that day will happen within the next two years.
Every two bit momentum player and his dog had been long "paper" silver. I am glad to see the weak, "cut and run types" get shaken out of the market. With silver taking a 20% haircut in the last three days, what should you do?
Buy more physical silver. Fundamentally speaking, the economic disaster that the world finds itself in- has not changed one bit. In fact, it has grown worse. After this week, the United States will have eclipsed it's current debt ceiling. That's a fact. Not that anyone gets held accountable. They don't.
Last night, I was reading an article about the end game, hyperinflation. Virtually everyone that I follow, the people who I believe to be most credible, all agree that the end game is hyper inflation. I have no idea who the anonymous author of the FOFOA blog is, but the work is prima facia. In other words, I believe that what the author states is true- no credentialing required. I've linked that blog here, I read it frequently. http://fofoa.blogspot.com/2010/09/just-another-hyperinflation-post.html
I am buying precious metals anytime there is significant weakness. I am buying silver anytime it trades sub 39.00. Eventually the paper market and the real silver market will unhinge...that is to say that one day people will be trading 50 dollar an oz. silver futures while the actual metal is trading for 100 bucks an oz. I believe that day will happen within the next two years.
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