Markets are sneaky so beware of the stop running 2B pattern that seems to be ridiculously persistent in the Forex market. The mainstream media has written of the US dollar and all but seal its doom in the minds of most investors.
With Pay Option Arm mortgages now posing a new mortgage threat and commercial mortgages running a close second the deflationary story persists.
Gold sits now at $1000 and Oz and gold fever is everywhere again. Lets not forget Silver is 25% away from its correlating high with GOLD. The dollar is still no where near its 2008 lows and many emerging market currencies fail to confirm an outright dollar collapse.
Seasonally speaking this is a critical time of year with many currencies, commodities, and indices are also at critical levels that warrant close surveillance. My bias is still on the side of deflation until the charts or the facts show me something else.
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Monday, September 14, 2009
Thursday, July 9, 2009
What is Natural Gas Telling US?
Natural Gas has not been acting right at all or has it? The persistent weakness in this commodity should be a clear sign of the deflationary pressures I have been speaking about.
It can only really be telling us one of two things.
One: Every asset class out there when looked at in terms of Nat Gas are completely overvalued.
Two: Nat Gas is the buy of the century.
Given analysis of other factors in the economy I would be inclined to go with option number 1. I will say I believe Nat Gas has indeed run too far too fast to the downside, but buying Natural Gas would only be a good idea if you where hedged correctly across the entire commodity complex and other asset classes as well. However I think it would be dangerous, as it has been, to attempt to bottom fish this commodity on pure price speculation.
It can only really be telling us one of two things.
One: Every asset class out there when looked at in terms of Nat Gas are completely overvalued.
Two: Nat Gas is the buy of the century.
Given analysis of other factors in the economy I would be inclined to go with option number 1. I will say I believe Nat Gas has indeed run too far too fast to the downside, but buying Natural Gas would only be a good idea if you where hedged correctly across the entire commodity complex and other asset classes as well. However I think it would be dangerous, as it has been, to attempt to bottom fish this commodity on pure price speculation.
Wednesday, July 1, 2009
Predictive Markets Part II
In the first article I was mainly focused on the the stock markets predictive powers according to conventional wisdom. Now lets take a look at GOLD when considering future inflation or deflation.
If you follow the pundits and experts today on mainstream TV you would be led to believe that $900-$1000 GOLD prices must be signaling inflation or hyperinflation going forward. Well lets think about that for a minute. If that was really true then what was $800 an ounce for GOLD signaling 27 years ago when it first happened? Surely it wouldn't have forecast an 18 year decline in the prices of GOLD and disinflation, but that's exactly what we got.
Now with prices high again the pundits are back and so is GOLD fever. I have learned time and time again the crowd never discovers buried treasure together and when everyone and there mothers are starring at that mythical pot of GOLD (excuse the pun) its probably not really there. As we are the counter party to private corporations and the Federal Reserve we are the source from which wealth is transferred from and not too.
If you look at the facts: Diminishing institutional lending capacity, reduced consumer credit, increasing savings rates, massive de-leveraging of the financial system as a whole, increasing reserve requirements, etc,... all of these things are 100% deflationary not inflationary. Although the FED has turned on the money spigot with its Quantitative Easing, it is replacing money in the system that is vanishing at a greater pace than they are creating due to the unwinding leverage in the financial system.
Lower consumption, lower consumer confidence, higher unemployment, low consumer spending, people are hoarding their dollars, combine that with reduce credit facilities and this all will translates into dollar shortage or dollar scarcity. None of the above is considered inflationary. Now the mainstream media is selling us on buying an asset that has risen in price over 300% in the last decade. When was the last time buying something after it rose 300% was a good idea? They usually call that missing the boat!!!
Don't believe there is dollar scarcity yet..... Take a look at California's predicament and tell me, what are they short of right now? They are about to issue IOU's....simply put they are short money.
If you follow the pundits and experts today on mainstream TV you would be led to believe that $900-$1000 GOLD prices must be signaling inflation or hyperinflation going forward. Well lets think about that for a minute. If that was really true then what was $800 an ounce for GOLD signaling 27 years ago when it first happened? Surely it wouldn't have forecast an 18 year decline in the prices of GOLD and disinflation, but that's exactly what we got.
Now with prices high again the pundits are back and so is GOLD fever. I have learned time and time again the crowd never discovers buried treasure together and when everyone and there mothers are starring at that mythical pot of GOLD (excuse the pun) its probably not really there. As we are the counter party to private corporations and the Federal Reserve we are the source from which wealth is transferred from and not too.
If you look at the facts: Diminishing institutional lending capacity, reduced consumer credit, increasing savings rates, massive de-leveraging of the financial system as a whole, increasing reserve requirements, etc,... all of these things are 100% deflationary not inflationary. Although the FED has turned on the money spigot with its Quantitative Easing, it is replacing money in the system that is vanishing at a greater pace than they are creating due to the unwinding leverage in the financial system.
Lower consumption, lower consumer confidence, higher unemployment, low consumer spending, people are hoarding their dollars, combine that with reduce credit facilities and this all will translates into dollar shortage or dollar scarcity. None of the above is considered inflationary. Now the mainstream media is selling us on buying an asset that has risen in price over 300% in the last decade. When was the last time buying something after it rose 300% was a good idea? They usually call that missing the boat!!!
Don't believe there is dollar scarcity yet..... Take a look at California's predicament and tell me, what are they short of right now? They are about to issue IOU's....simply put they are short money.
Tuesday, June 23, 2009
The Super Regulator......
And there you have it. As I have said all along, the FED engineered a crisis and have come back to be our hero in our time of need.
It didn't not matter who became President, this was the only outcome that could have been.
"Give me control of a nation's money and I care not who makes her laws. " Mayer Amschel Rothschild
Bernanke a scholar of the great depression has just about full filled his mission to firmly entrench the Federal Reserve as the Alpha and the Omega when it comes to the UNITED STATES OF AMERICA.
Tim Geitner the former President of the New York FED is now the Treasury Secretary who is the one selling this scam to Congress. Congress will put on a show as if they don't like the idea.....but watch they will still approve this Hydra's power mad ambitions and The Federal Reserve (private bank) will inherit the USA lock stock and barrel.
At first I was amazed at the ease of how quickly they moved this plan along....then I did some people watching. Since the whole damn country is asleep or oblivious there hasn't been anyone to stand in thier way. This was literally like taking candy from a baby.
SIMPLIFIED STEPS TO CONQUER THE NATION:
1. Increase the FED FUNDS Rate 17 times during a debt boom
2. Have George Bush close the Bankruptcy window (Signed in April 2005)and trap Americans in record debts (In effect October 2005)
3. De-leverage (Crash) the commercial banking system, lower rates to save us from a banking crisis they created
4. Transfer trillions of dollars worth of private debt onto the shoulders of the public at interest to the FED with bailouts we believe we need
5. Have the FED put in charge of everything on both sides of the equation to protect us from the crisis they manufactured to ensure our safety.....GAME SET MATCH.
(If I do say so myself this was masterfully played)
Its a bloody disgrace that 300 million people could sit on there asses and let this happen right in front of them and be so easily deceived about the realities. But you all are so mad about Kaley Anthony or Scott Peterson....How did the media bamboozle all of you so easily? Did any of you notice the media cooperatively blankets the TV with garbage news when this would be the most pressing issue to us all. The problem is power is colluding to close all the channels you could learn from, and if no one asks questions....well then you will get no answers will you?
It took me an hour or two of my spare time to piece it together and make this prediction. It should be very worrisome I was able to get it right. This was supposed to be a surprise to everyone.....do I seem very surprised to you? I am not Nostradamus so that means there was an agenda they were executing.....An agenda very crooked wealthy people tend to follow when they want more power and need to trick it out of others.
Its called Problem, Reaction, and Solution. And the entire country just bought it again for the umpteenth time in a row. I would say wake up...but perhaps our country is better off in the hands of people who are already awake.
Think about this: A man or men with a billion dollars or more would never let a pauper make his decision for him. If you still believe in voting have fun. Lord knows George Bush was laughing when he took power, but Iran has the crooked elections right? They are all crooked no one who has power has it by chance. We are in a top down society not the other way around. The best slaves are the ones who don't know they are enslaved. Your media is lying to you.
It didn't not matter who became President, this was the only outcome that could have been.
"Give me control of a nation's money and I care not who makes her laws. " Mayer Amschel Rothschild
Bernanke a scholar of the great depression has just about full filled his mission to firmly entrench the Federal Reserve as the Alpha and the Omega when it comes to the UNITED STATES OF AMERICA.
Tim Geitner the former President of the New York FED is now the Treasury Secretary who is the one selling this scam to Congress. Congress will put on a show as if they don't like the idea.....but watch they will still approve this Hydra's power mad ambitions and The Federal Reserve (private bank) will inherit the USA lock stock and barrel.
At first I was amazed at the ease of how quickly they moved this plan along....then I did some people watching. Since the whole damn country is asleep or oblivious there hasn't been anyone to stand in thier way. This was literally like taking candy from a baby.
SIMPLIFIED STEPS TO CONQUER THE NATION:
1. Increase the FED FUNDS Rate 17 times during a debt boom
2. Have George Bush close the Bankruptcy window (Signed in April 2005)and trap Americans in record debts (In effect October 2005)
3. De-leverage (Crash) the commercial banking system, lower rates to save us from a banking crisis they created
4. Transfer trillions of dollars worth of private debt onto the shoulders of the public at interest to the FED with bailouts we believe we need
5. Have the FED put in charge of everything on both sides of the equation to protect us from the crisis they manufactured to ensure our safety.....GAME SET MATCH.
(If I do say so myself this was masterfully played)
Its a bloody disgrace that 300 million people could sit on there asses and let this happen right in front of them and be so easily deceived about the realities. But you all are so mad about Kaley Anthony or Scott Peterson....How did the media bamboozle all of you so easily? Did any of you notice the media cooperatively blankets the TV with garbage news when this would be the most pressing issue to us all. The problem is power is colluding to close all the channels you could learn from, and if no one asks questions....well then you will get no answers will you?
It took me an hour or two of my spare time to piece it together and make this prediction. It should be very worrisome I was able to get it right. This was supposed to be a surprise to everyone.....do I seem very surprised to you? I am not Nostradamus so that means there was an agenda they were executing.....An agenda very crooked wealthy people tend to follow when they want more power and need to trick it out of others.
Its called Problem, Reaction, and Solution. And the entire country just bought it again for the umpteenth time in a row. I would say wake up...but perhaps our country is better off in the hands of people who are already awake.
Think about this: A man or men with a billion dollars or more would never let a pauper make his decision for him. If you still believe in voting have fun. Lord knows George Bush was laughing when he took power, but Iran has the crooked elections right? They are all crooked no one who has power has it by chance. We are in a top down society not the other way around. The best slaves are the ones who don't know they are enslaved. Your media is lying to you.
Friday, June 12, 2009
Predictive Markets Part I
How far can the stock market go in this current rally? Is gold really going to 3000 and above because of an impending dollar crash? I find these two question asked because of a clear misunderstanding of both.
Does a 40% rally in stocks signal recovery or is it a massive bear market bounce? In my opinion it tells you what is a fact of the matter and nothing more at a current moment in time.
In March I posted about "Quantitative Easing", basically an attempt by the FED to reflate the deflated economy by stealing from the future. And that's just what happened. They FED began pumping air back into the balloon and change the current valuations in dollars of US stocks by adding more money to the pool of existing money. Stocks had to be revalued in terms of the increasing money supply while maintaining accurate relative values. Just as stock values decrease as money was being let out of the balloon so did they rise as money was pumped back in.
I have never ever believed the markets to be forward looking. In my opinion when they topped and crashed in March of 2000, tech stocks had validated in that quarter that their earnings growth rates were unsustainable. The Federal Reserve had just finish an aggressive round of rate hikes much like they did at the onset of the Real Estate crash and restricted the future growth of the United States. A contraction in credit due to higher rates and the declining growth rates where evident at the moment of the market top. The market didn't predict that year 2000 reality in 1999 it showed its reality in 2000 when it was indeed a reality.
The fact of the matter the is the recent move up was real and if you did not participate then you just missed that real market return. However to take current market behavior as a future economic indicator is a thought process that has been sold to us based on efficient market theories.
The fact of the matter is markets are not as efficient as the experts assume. If they were then what was OIL telling us about its future at $147 a barrel in June of 2008. Not that it would be $35 a barrel by March of 2009 and the growth of all nations would be ground to a halt in 6 months. The experts told us it was because of consumption from the hyper growth rates China and India were experiencing.
Just as a Dow Jones at 14k in 2008 didn't forecast DOW 6600 for next march and the impending credit collapse which took place at precisely the same time as the market's collapse.
Markets are a snapshot of today's estimated fair value based on all available information today; which include estimates of future growth, nothing more. If the inputs change tomorrow so too will that estimate of fair value. The predictive power of the future that experts believe capital markets deliver is left seriously wanting and the ability of analyst to give us good foresight based on the conventional wisdom is left equally wanting. The conventional wisdom is grossly unsupported.
Does a 40% rally in stocks signal recovery or is it a massive bear market bounce? In my opinion it tells you what is a fact of the matter and nothing more at a current moment in time.
In March I posted about "Quantitative Easing", basically an attempt by the FED to reflate the deflated economy by stealing from the future. And that's just what happened. They FED began pumping air back into the balloon and change the current valuations in dollars of US stocks by adding more money to the pool of existing money. Stocks had to be revalued in terms of the increasing money supply while maintaining accurate relative values. Just as stock values decrease as money was being let out of the balloon so did they rise as money was pumped back in.
I have never ever believed the markets to be forward looking. In my opinion when they topped and crashed in March of 2000, tech stocks had validated in that quarter that their earnings growth rates were unsustainable. The Federal Reserve had just finish an aggressive round of rate hikes much like they did at the onset of the Real Estate crash and restricted the future growth of the United States. A contraction in credit due to higher rates and the declining growth rates where evident at the moment of the market top. The market didn't predict that year 2000 reality in 1999 it showed its reality in 2000 when it was indeed a reality.
The fact of the matter the is the recent move up was real and if you did not participate then you just missed that real market return. However to take current market behavior as a future economic indicator is a thought process that has been sold to us based on efficient market theories.
The fact of the matter is markets are not as efficient as the experts assume. If they were then what was OIL telling us about its future at $147 a barrel in June of 2008. Not that it would be $35 a barrel by March of 2009 and the growth of all nations would be ground to a halt in 6 months. The experts told us it was because of consumption from the hyper growth rates China and India were experiencing.
Just as a Dow Jones at 14k in 2008 didn't forecast DOW 6600 for next march and the impending credit collapse which took place at precisely the same time as the market's collapse.
Markets are a snapshot of today's estimated fair value based on all available information today; which include estimates of future growth, nothing more. If the inputs change tomorrow so too will that estimate of fair value. The predictive power of the future that experts believe capital markets deliver is left seriously wanting and the ability of analyst to give us good foresight based on the conventional wisdom is left equally wanting. The conventional wisdom is grossly unsupported.
Monday, March 30, 2009
Foreclosures....Are They Legal?
The "Crisis of Confidence" is a mere symptom of the problem, the problem is a "Crisis of Ignorance."
http://kasonomics.blogspot.com/
Watch minutes 19-24 on this video that covers the case of Jerome Daly vs First National Bank of Montgomery in which it is acknowledge by the President of the bank in the judges memorandum that there was no legal consideration put up by the bank against the home to give it the right to foreclose. THIS IS HUGE FOR AMERICAN HOME OWNERS TO KNOW!! The banks foreclosure was rejected on this basis. This also shows a legal judgment against the banks fraudulent system and proves this bank structure is illegal by US Law.... How much more obvious does this have to be???
I would advise watching the entire video, but I am highlighting a critical point that has direct meaning for our times and is on everyone's mind who is trying to support their homesteads and families.
http://kasonomics.blogspot.com/
Watch minutes 19-24 on this video that covers the case of Jerome Daly vs First National Bank of Montgomery in which it is acknowledge by the President of the bank in the judges memorandum that there was no legal consideration put up by the bank against the home to give it the right to foreclose. THIS IS HUGE FOR AMERICAN HOME OWNERS TO KNOW!! The banks foreclosure was rejected on this basis. This also shows a legal judgment against the banks fraudulent system and proves this bank structure is illegal by US Law.... How much more obvious does this have to be???
I would advise watching the entire video, but I am highlighting a critical point that has direct meaning for our times and is on everyone's mind who is trying to support their homesteads and families.
Sunday, March 22, 2009
Quantitative Easing
Wednesday this week the FED announced it would begin a process called "Quantitative Easing." What exactly does that mean though? It is a fancy term for stealing from ourselves in a nutshell and unfortunately the only thing that can stall the crash we are in. They have promised to buy $300 billion dollars in long term Treasuries and $750 Billion in "Mortgage Backed Securities." What they are talking about in this one action is adding $1 Trillion dollars to the money supply.
The FED is declaring that they will print up money that currently does not exist at all in reality and buy securities to provide liquidity in the system. That's worth some thought isn't it? Don't you wish you could make up your own money and buy things with it? For us that is called counterfeiting and will put you in prison longer than selling a couple kilos of cocaine, for them its called fiscal policy.
The FED will basically buy government and bank IOU's with newly printed money in order to introduce new money into the system in an attempt to stop or reverse the deflationary spiral we are now in as a result of leverage banking. Buy adding this new money to the system they are presenting us a remedy which is in itself a hyper inflationary scenario,it will debase the U.S. Dollar and further diminish real value of dollar based assets held by foreign governments and by U.S. citizens alike. The reason they can openly say this on television and people not catch it is much the way they sold us into the Iraq War, by using a play on words.
Most of us had never heard the term insurgent in our entire lives before Iraq; an insurgent is defined in Merriam Webster's dictionary as: "a person who revolts against civil authority or an established government; especially: a rebel not recognized as a belligerent." Insurgent was a fancy way of hiding the word Iraqi patriot people patriot to their nation trying to keep us from invading them under false pretense, just as we would as citizens revolt against lets say Mexico, Canada, or even Russia and say we are patriotic to our country and don't want to be occupied. Foreign countries would use the same play on words to fool their people that there are militants here that are not following their decree, this is precisely the play on words we have used in the media regarding that circumstance. Now I guarantee most of us had never heard the term "Quantitative Easing" before this. Its a fancy way of saying we are going to steal from you to help you. Its is the same load of rubbish because it means they are going to perpetuate a system that has proven itself to all, to be broken and flawed through and through.
The manipulation I have outlined in previous articles is the reason for the current crash and all others since the creation of the Federal Reserve in 1913. As they diminish the value of the currency by diluting the buying power of the dollar with new money they will with this also strip even more wealth out of the country with the interest attached to this magic money and have this action sanctioned by our own government.
The FED is declaring that they will print up money that currently does not exist at all in reality and buy securities to provide liquidity in the system. That's worth some thought isn't it? Don't you wish you could make up your own money and buy things with it? For us that is called counterfeiting and will put you in prison longer than selling a couple kilos of cocaine, for them its called fiscal policy.
The FED will basically buy government and bank IOU's with newly printed money in order to introduce new money into the system in an attempt to stop or reverse the deflationary spiral we are now in as a result of leverage banking. Buy adding this new money to the system they are presenting us a remedy which is in itself a hyper inflationary scenario,it will debase the U.S. Dollar and further diminish real value of dollar based assets held by foreign governments and by U.S. citizens alike. The reason they can openly say this on television and people not catch it is much the way they sold us into the Iraq War, by using a play on words.
Most of us had never heard the term insurgent in our entire lives before Iraq; an insurgent is defined in Merriam Webster's dictionary as: "a person who revolts against civil authority or an established government; especially: a rebel not recognized as a belligerent." Insurgent was a fancy way of hiding the word Iraqi patriot people patriot to their nation trying to keep us from invading them under false pretense, just as we would as citizens revolt against lets say Mexico, Canada, or even Russia and say we are patriotic to our country and don't want to be occupied. Foreign countries would use the same play on words to fool their people that there are militants here that are not following their decree, this is precisely the play on words we have used in the media regarding that circumstance. Now I guarantee most of us had never heard the term "Quantitative Easing" before this. Its a fancy way of saying we are going to steal from you to help you. Its is the same load of rubbish because it means they are going to perpetuate a system that has proven itself to all, to be broken and flawed through and through.
The manipulation I have outlined in previous articles is the reason for the current crash and all others since the creation of the Federal Reserve in 1913. As they diminish the value of the currency by diluting the buying power of the dollar with new money they will with this also strip even more wealth out of the country with the interest attached to this magic money and have this action sanctioned by our own government.
Monday, March 9, 2009
The Anatomy of Our Crisis.....
This video is 100% accurate as to the cause of and the actual crisis itself. It accurately predicts our current crisis 15 years ahead of what people said no one could predict.... Its just not many understand the root cause and if we don't' get it we will be doomed to repeat it and trapped in debt forever... Listen to how many US presidents and senators and world bankers make statements to how dangerous our system is. These are the most powerful leaders of the worlds past. President Madison, Jackson, Jefferson.....and many more. This is an enlightening video...its a little dry but the knowledge in it is GOLD!
Friday, March 6, 2009
The Truth About Inflation, Markets, and CPI
The popular media keeps us focused on nominal levels in the market, but not relative; this is important for Americans to understand. It helps hide the theft of American wealth that the Federal Reserve is perpetrating on the U.S. For example, take the trillions of dollars in 401k money that is locked into the market. Inflation is able to steal the future value of the retirements of Americans simply by printing more money. That would mean that the FED would have an incentive to put the country in positions that would stimulate this business...i.e the constant booms and bust they seem so helpless to have stop happening due to excesses in both directions with monetary policy.
When the FED raises rates and puts us into a recession where US Government Tax revenue is falling, the only alternative is to borrow more money from the FED to keep the engine running. This is the long term inflation business model the FED is engaged in. The inflation of our money allows them to transfer our buying power and value of real assets back to themselves by giving us money/credit at interest that they create out of thin air. The only way to pay the interest is to borrow more money at more interest this literally strips away 99.9999999% of all wealth generated over time through usury.
Simply put its a "ponzi scheme" designed to steal real wealth and its incredibly effective. Our inflation rate is not the CPI our government gives us to skew the numbers and mask the scope of the scheme, but is actually the M3 number that the FED has hidden from us which is the real rate of inflation.
Simply put the devaluation of your currency is the inflation rate of the Money Supply. Experts estimate this number to be around 15-20%. If you compound this number from the last market highs till now you will realize 80% of the market wealth was already stripped away before the market decline. And that's why all hard assets and commodities tripled against fiat currency valuation.
In my eyes the market is far cheaper than any out there actually realizes. Market values that are denominated in fiat currency must be valued based on the supply of fiat currency in all intertwined economies and benchmark to the value of a hard asset to truly grasp the price of the market.
When the FED raises rates and puts us into a recession where US Government Tax revenue is falling, the only alternative is to borrow more money from the FED to keep the engine running. This is the long term inflation business model the FED is engaged in. The inflation of our money allows them to transfer our buying power and value of real assets back to themselves by giving us money/credit at interest that they create out of thin air. The only way to pay the interest is to borrow more money at more interest this literally strips away 99.9999999% of all wealth generated over time through usury.
Simply put its a "ponzi scheme" designed to steal real wealth and its incredibly effective. Our inflation rate is not the CPI our government gives us to skew the numbers and mask the scope of the scheme, but is actually the M3 number that the FED has hidden from us which is the real rate of inflation.
Simply put the devaluation of your currency is the inflation rate of the Money Supply. Experts estimate this number to be around 15-20%. If you compound this number from the last market highs till now you will realize 80% of the market wealth was already stripped away before the market decline. And that's why all hard assets and commodities tripled against fiat currency valuation.
In my eyes the market is far cheaper than any out there actually realizes. Market values that are denominated in fiat currency must be valued based on the supply of fiat currency in all intertwined economies and benchmark to the value of a hard asset to truly grasp the price of the market.
Wednesday, February 18, 2009
1.5 Trillion Dollar Bad Bank
Treasury Secretary Tim Geitner has proposed a "1.5 Trillion Dollar Bad Bank" to purchase the toxic assets off the bank balance sheets to restore liquidity and prevent insolvency. At first glance this could sound like a good idea. Given the predicament we have been steered into it may be a better a idea than nothing at all however I believe this would perpetrate an even greater fraud to the US citizen than the collapsing "ponzi" scheme of a banking industry we have here.
In a nutshell, banks are lending approximately 9 times what they have on deposit. As one bank lends a leveraged dollar out it is then deposited into another institution where this leveraged dollar is again amplified with the same leverage. What you have is a loop of "ponzi" schemers pyramiding non existent credit onto itself. Now we are supposed to be paying the piper. The credit system if left to its own devices would unwind all this leveraged debt and destroy any institution tied to it and the free market would wipe the fraud out completely as a house of cards doesn't have a solid foundation so would the structure come crashing down.
Now this money that has been compounded upon by repeating the process above technically had the people of this country paying interest on money the bank never had to lend. This is what we call increasing the money supply or so they say. What Geitner proposes would stop the free market from destroy the "ponzi debt" and passing it directly to the US taxpayer by forcing them to pay for all the leverage nonexistent debt/bad assets with a loan through the government and make us pay the interest via collection through the IRS.
I hope that clears that up. They are making sure not to lose the interest on the leverage fictitious money by putting the all the bad bank loans through the government and collecting the interest anyway now from everyone. I'm sorry, when its all a sham then it should be allowed to fail even though it would be painful it would allow for a totally new system to emerge. Right now they are prolonging the inevitable and will destroy the entire fiat credit system that is in place.
In a nutshell, banks are lending approximately 9 times what they have on deposit. As one bank lends a leveraged dollar out it is then deposited into another institution where this leveraged dollar is again amplified with the same leverage. What you have is a loop of "ponzi" schemers pyramiding non existent credit onto itself. Now we are supposed to be paying the piper. The credit system if left to its own devices would unwind all this leveraged debt and destroy any institution tied to it and the free market would wipe the fraud out completely as a house of cards doesn't have a solid foundation so would the structure come crashing down.
Now this money that has been compounded upon by repeating the process above technically had the people of this country paying interest on money the bank never had to lend. This is what we call increasing the money supply or so they say. What Geitner proposes would stop the free market from destroy the "ponzi debt" and passing it directly to the US taxpayer by forcing them to pay for all the leverage nonexistent debt/bad assets with a loan through the government and make us pay the interest via collection through the IRS.
I hope that clears that up. They are making sure not to lose the interest on the leverage fictitious money by putting the all the bad bank loans through the government and collecting the interest anyway now from everyone. I'm sorry, when its all a sham then it should be allowed to fail even though it would be painful it would allow for a totally new system to emerge. Right now they are prolonging the inevitable and will destroy the entire fiat credit system that is in place.
Sunday, January 11, 2009
The Depression 2
This Depression did not start with the housing market, that is a great misconception. The Depression began in 2000 when at the end of the last FEDERAL RESERVE RATE cycle the US economy went into a tailspin (sound familiar) and the FED began cutting rates into 2003 to 1 to save the day (wow that sounds really familiar).
At that point the pinnacle index of the US economy was the Nasdaq, like the Nikkei of Japans crash in 1989 or the 1930's Dow it was the best measure of the biggest sectors that were driving the US economy and Japanese economy at those times respectively. All were reduced into their lowest 30% percentiles of their lifetime ranges all meandered around in their lower 40% percentiles of their historic ranges up to that period in their first decade after their respective crashes or there a bouts.
What we experience in 2003 to now was nothing more than a credit dislocation cause by the financing of the WAR in IRAQ and a rapid expansion of the money credit system by the FED in order to finance WAR (big business for the FED--business 101 means we are probably due for another war shortly). The FED increased the money supply and it debased the dollar. We had all commoditized assets run up in price 2 to 3 fold or actually they held value as the dollar decreased due to excess supply of fiat dollars.
If you notice the FED hid the M3 money supply number in 2006 the year after George Bush closed the Bankruptcy loop hole and the FED changed the minimum credit card payments for the first time since 1981 (interesting year if you really think). By doing this they hid the massive contraction in the money supply which collapsed the markets globally and reduce commodity prices like Oil, Gold, Houses, Gas etc.....PLEASE NOTICE FOOD PRICES ARE NOT FALLING BECAUSE THE FOOD SHORTAGE IS UNDER WAY. Remember the debt money is the only money if there is less debt then their is less money in circulation which means that all assets denominated in fiat money must reprice downward to account for the reduction of circulating paper. Nothing happens by accident and the sooner people try to understand the way that pretty piece of spray painted paper in their pocket works the less we will all have to suffer from mass ignorance. SNAP OUT OF IT!!!!
At that point the pinnacle index of the US economy was the Nasdaq, like the Nikkei of Japans crash in 1989 or the 1930's Dow it was the best measure of the biggest sectors that were driving the US economy and Japanese economy at those times respectively. All were reduced into their lowest 30% percentiles of their lifetime ranges all meandered around in their lower 40% percentiles of their historic ranges up to that period in their first decade after their respective crashes or there a bouts.
What we experience in 2003 to now was nothing more than a credit dislocation cause by the financing of the WAR in IRAQ and a rapid expansion of the money credit system by the FED in order to finance WAR (big business for the FED--business 101 means we are probably due for another war shortly). The FED increased the money supply and it debased the dollar. We had all commoditized assets run up in price 2 to 3 fold or actually they held value as the dollar decreased due to excess supply of fiat dollars.
If you notice the FED hid the M3 money supply number in 2006 the year after George Bush closed the Bankruptcy loop hole and the FED changed the minimum credit card payments for the first time since 1981 (interesting year if you really think). By doing this they hid the massive contraction in the money supply which collapsed the markets globally and reduce commodity prices like Oil, Gold, Houses, Gas etc.....PLEASE NOTICE FOOD PRICES ARE NOT FALLING BECAUSE THE FOOD SHORTAGE IS UNDER WAY. Remember the debt money is the only money if there is less debt then their is less money in circulation which means that all assets denominated in fiat money must reprice downward to account for the reduction of circulating paper. Nothing happens by accident and the sooner people try to understand the way that pretty piece of spray painted paper in their pocket works the less we will all have to suffer from mass ignorance. SNAP OUT OF IT!!!!
The Depression
Yes its round two and you are already in it so stop waiting on the TV to confirm that.
I watch the media say we have not proven the 2 quarters of negative growth need to confirm a recession for all of 2007 and most of 2008 and when they finally did the whole planet had already crashed to the tune of 40-70% in their respective financial markets. Trust me the people on TV are smart. And when is the last time a millionaire told you what he was doing for free? Think... do you really think the TV is dying to tell you what to do to really not get in trouble. If it was it would be blasting the things I put on here from the mid 2000's as I have and face the amount of ridicule I have had to take doing it to try and help people not get wiped out....
Sadly it has to smash everyone in the face for them to care or notice or pinch em in the wallet and make them suffer with their families to say whats going on. Now that I have your attention. You are already in the depression and with it facing a new World War and a Food Crisis. The powers that be are going to rebalanced this worlds assets with its population make no mistake you are very much managed like a heard of cattle. People are going to starve don't be one of them the powers that be do not have your best interest at heart stop lying to yourselves okay its time to grow up and face facts.
I watch the media say we have not proven the 2 quarters of negative growth need to confirm a recession for all of 2007 and most of 2008 and when they finally did the whole planet had already crashed to the tune of 40-70% in their respective financial markets. Trust me the people on TV are smart. And when is the last time a millionaire told you what he was doing for free? Think... do you really think the TV is dying to tell you what to do to really not get in trouble. If it was it would be blasting the things I put on here from the mid 2000's as I have and face the amount of ridicule I have had to take doing it to try and help people not get wiped out....
Sadly it has to smash everyone in the face for them to care or notice or pinch em in the wallet and make them suffer with their families to say whats going on. Now that I have your attention. You are already in the depression and with it facing a new World War and a Food Crisis. The powers that be are going to rebalanced this worlds assets with its population make no mistake you are very much managed like a heard of cattle. People are going to starve don't be one of them the powers that be do not have your best interest at heart stop lying to yourselves okay its time to grow up and face facts.
FED CUTS RATES TO ZERO!!
Ok now its pretty funny how this one plays in the media. Has anyone yet ask as I have from this blog began. If the FED is cutting rates to save the day right....would anyone like to ask them where the rates are coming from (5.25%), and who was the genius that put them up there with 17 rate hikes and annihilated the housing market by forcing adjustments on LIBOR Mortgage Arms, which where 80% of origination from 2003-2006, up and triggering the default wave on the American people and the world?
**Please note the 95% correlation of FED Rates to LIBOR (a measure of risk in bank to bank lending)***
For what ever reason I have come to accepts that at least 85% of any population remain in a fantasy world for most their lives okay fine but for the remaining percentage that doesn't have their heads up their asses ask yourself this. Who just became GODS of the US financial system by bringing it to its knees. I hope that is blunt enough to get the message across. Please wake up my god what has to happen in all American's faces for you to get that this Private bank is raping the people.
**Please note the 95% correlation of FED Rates to LIBOR (a measure of risk in bank to bank lending)***
For what ever reason I have come to accepts that at least 85% of any population remain in a fantasy world for most their lives okay fine but for the remaining percentage that doesn't have their heads up their asses ask yourself this. Who just became GODS of the US financial system by bringing it to its knees. I hope that is blunt enough to get the message across. Please wake up my god what has to happen in all American's faces for you to get that this Private bank is raping the people.
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