RANTING ANDY – I was travelling in Mexico the past three days, my apologies for the lack of commentary. And I’m just trying to recover, in front of a potentially wild week, so my comments this afternoon will be brief. Of course, don’t confuse brevity with lack of spirit, which I assure you is as strong as ever.
My primary thought relates to PERCEPTION, a favorite topic recently, as I think of the exponentially growing efforts of the PPT, Cartel, ESF, ECB, SNB, Fed, and other MALIGNANT financial and government entities. Cumulatively, their SOLE GOAL is to keep the masses quiet, compliant, and believing their lies about recovery, transparency, and hope, while ALL their actions speak otherwise. “MOPE”, “BEHAVIORAL FINANCE”, or whatever you want to call it, Washington/Wall Street wants you to TRUST they are in CONTROL of the economy, the markets, and the Western world’s fate.
Unfortunately, they are NOT, and each passing day reinforces my belief….no…KNOWLEDGE…that TPTB will decisively lose this life-and-death game of financial chicken. The markets know it (watching those bank stocks?), the gold world knows it (soaring PHYSICAL premiums), and even the people are starting to understand (Google “Occupy Wall Street”).
The Western banking system will NOT survive this onslaught, as it did in 2008-09, and it will NOT be revived by QE3 America, QE3 Europe, or QE3 Global (all of which are ongoing COVERTLY anyway).
Printing money will NOT save the world, and frankly I doubt it will even cause a meaningful stock rally, although anything can happen when such an announcement is made, coupled, of course, with MASSIVE PPT buying. Honestly, my belief, realizing it is just speculation, is AT LEAST 50% OF ALL U.S. STOCK MARKET VOLUME IS GOVERNMENT-RELATED, at least 80% of which emanates from HFT trading. Some GOVERNMENT COMPUTER PROGRAMS support PPT stocks like the Dow components, and some suppress “unfavorable” sectors such as Precious Metals, but rest assured the government is the largest participant in today’s stock market, and by the way, take a guess which firm DOMINATES HFT trading?
I’ll give you a hint – its first name starts with a “G”, and its second with an “S”.
We are constantly besieged with propaganda regarding the “economic recovery” which never occurred, and never will, and even more so regarding the imminent rescue of the banking system by a combination of ‘black knights’ (such as Warren Buffett) and coordinated efforts by the supreme financial wizards of the universe, who in actuality are a bunch of goose-stepping morons. With just an eighth of a brain, one can see how obvious it is that the G-20, IMF, ECB, Fed, and all the other high-and-mighty government organizations, are both BROKE and STUPID. They have no direction, no plan, no leaders, and no cohesion. They are CONSTANTLY having meetings, at higher and higher levels each week, yet NOTHING gets accomplished except MONEY PRINTING and promises of still MORE MONEY PRINTING.
Yes, they will continue to print, but no it won’t matter (remember the $500 BILLION joint credit line offered to the world’s banks two weeks ago?). And once again, I do not believe even HYPERINFLATIONARY MONETARY POLICY can save 80%+ of stocks, as….flash bulletin…INFLATION KILLS nearly all businesses. Yes, resource companies should rise in such an environment, and several other selected sectors as well. However, BANKS will be destroyed (i.e. BANK-RUPTED), as well as the great majority of public and private businesses. Moreover, DERIVATIVES will only make these collapses that much more spectacular, and just wait until the focus shifts from the BANKS to the CURRENCIES underlying their assets.
What will be the flashpoint that starts it all?
One never knows, but the odds continue to grow that it will be GREECE, and this weekend’s news that it has NOT achieved the austerity targets of the last bailout all but guarantees a new one will not occur (and if it does, the market would KNOW up front it will miserably FAIL).
And how about this LATE-BREAKING NEWS, that Dexia, the largest bank in Belgium and, as of two years ago, the 16th largest in Europe, finally appears on the brink of collapse? Yes, this poster child of profligacy could be bankrupted or, more likely, nationalized by the time you read this, with its 35,000 employees and eight million client accounts, many of them, of course, in FRANCE.
No matter what SPIN is put out that such catastrophes can be “contained”, DO NOT BELIEVE IT! Frankly, my readers know better, and it’s only a matter of time before the rest of the world does, too. The daisy chain of DERIVATIVES and INTERTWINED DEBTS cannot be unraveled, so the last resort of Central Banks and politicians WILL be to PRINT TRILLIONS, if not QUADRILLIONS, of “currency units” to try and buy more time.
Perhaps they’ll buy a few weeks, or even a few months, but that will be it. The gold price will already have doubled by the time the can hits the proverbial brick wall, and then the REAL FIREWORKS of a currency collapse will commence, most likely starting with the Euro.
Think long and hard about where your portfolio, and priorities stand, as once the final game of musical chairs starts, I assure you MOST will not find a seat.