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.

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.