RANTING ANDY – Watching this month’s Dow melt-up this month, and subsequently, the media spin suggesting the surge is “evidence” of economic and banking system “improvement”, you’d think the world has changed for the better. Greece is healed, California is healed, and the dollar regenerated for another 40-year reign of bliss.
Apparently, curing GLOBAL FINANCIAL COLLAPSES has become EASIER over the past three years, as in 2008 it required fraudulent accounting changes and $20 TRILLION of fresh money-printing, while in 2011, despite DRAMATICALLY WORSE corporate, municipal, and sovereign debt issues, and DRAMATICALLY WORSE global economic conditions, apparently all TPTB needed to do was HINT they MAY print more money. And voila, “all’s well”.
No matter that, for every hint of POTENTIAL ECB money printing, a negative one suggesting the opposite immediately emerges.
No matter that the fate of the global financial system rests on the resolution of the Greek debt crisis, yet while stock markets surge on such expectations, the Greek government is in chaos, in fact right now amidst a NINE-DAY STRIKE! Yes, I’m sure this strike will improve the likelihood of another $100+ billion bailout…
No matter that, contrary to the action of the stock market, the cacophony of bad news is now multiplying geometrically, to the point that when I don’t write a RANT for two days the queue of “horrible headlines” becomes dauntingly elongated, to the point where it starts to look like a 1980s line for Michael Jackson tickets, or better yet a 1970s line for GASOLINE (coming soon to the 2010s, by the way…).
No matter that the U.S. real estate market, which MUST recover for America to have any chance of economic growth, continues to plummet into oblivion. The link below discusses how PrimeX has been cliff-diving in recent weeks, an index focusing on alt-A mortgages. PrimeX measures the most senior tranches of what are supposed to be higher quality mortgages than subprime, but clearly that market is betting the real estate contagion will spread to the so-called “healthier parts of the body.”
Yes, the real estate boogeyman has returned, as we are now entering the most dangerous period for mortgage rate resets since mid-2008 – and you remember what happened then, don’t you?
Per the chart below, the 2008 resets focused on the subprime sector, while today the so-called “healthier” Alt-A loans are in the cross hairs, as well as Option ARMS.
This is why “Operation Twist” is so vital to U.S. government policy, but “OT” alone will not be enough to offset the pain caused by higher rate resets in an environment where real estate prices continue to fall and unemployment to surge.
Not matter that civil unrest WORLDWIDE is accelerating, at a rate even I am taken aback by. The “Arab Spring” is morphing into the “Global Spring”, and the chances of this tide ebbing are no better than the chances of a Greek debt rating upgrade!
Not only has such unrest returned to the MENA region…
…but it has EXPLODED in the U.S….
…and not just in New York City, by the way…
…spreading to Italy…
…and even Fort Lauderdale, Florida…
…essentially, AROUND THE GLOBE…
No matter that, despite the aforementioned stock market surge the past two weeks, credit downgrades of sovereign nations and MAJOR money center banks have not only have continued, but appear to be ACCELERATING as rating agencies realize the survival of their business model depends on getting AHEAD of the “financial collapse curve”, as opposed to their contrary actions in 2008-09.
No matter that global governments are falling or amidst political infighting threatening to tear the fabrics of their respective societies apart.
No matter that foreigners are SELLING U.S. Treasuries at a record pace.
No, none of this endless stream of information pointing to global economic, political, and social COLLAPSE matters when the DOW JONES INDUSTRIAL AVERAGE is propped by the PPT and U.S. TREASURY BONDS by “Operation Twist”, while PAPER gold and silver are held in check by the Cartel. Remember, as long as the below market action can be generated by PAPER manipulations, TPTB will be able to buy a bit more time…
…time to allow of the system by its MASTERS, the EVIL BANKERS of New York and London…
…time to hold G-20 meetings (such as the one this weekend in Paris) without having to say or do anything…
…and time to instill more FEAR in the public with misinformation, propaganda, and outright LIES…
By the way, let’s PRAY the commentary in the below link is not true, lest we will shortly see the commencement of World War III.
In sum total, more time to STEAL, at YOUR personal expense, and that of future generations.
The below link describes EXACTLY how TPTB have been manipulating the stock market. It’s no surprise the recent PM market collapse started EXACTLY the same day, September 4th, that the stock market support initiative described commenced.
But alas, where is the GOOD NEWS, even a handful of elusive tidbits describing “improvement”, “progress”, or even just HOPE for the system? I am DESPERATELY seeking it out, but cannot find it, in any way, shape, or form.
Washington, Wall Street, and the press desperately try to MANUFACTURE such “good news”, replete with coordinated press blitzes and PPT support operations. However, no matter what they try, such efforts immediately dissipate into oblivion.
For example, the media tried to play up Friday’s “better than expected” retail sales report (+1.1% vs. consensus +0.8%) as evidence of an “improving economy.” However, even a modicum of research uncovers the fact that essentially ALL of September’s retail sales growth was due to counterproductive sales schemes and price inflation.
Moreover, it’s IMPOSSIBLE to conclude retail sales are poised to soar when, simultaneously, it is reported that consumer sentiment has fallen to a 31-year low!
Readers, do not be fooled by the action in ANY manipulated market, including the Dow, Treasury bonds, the dollar index, or the PAPER gold and silver markets. As noted in the above story titled “charting-nine-days-short-squeezes-and-vapor-volume”, the Dow is now no more than a government policy tool. Likewise, U.S. Treasury bonds are the focal point of the Fed’s “Operation Twist”, yet another government policy tool, while currencies worldwide are being OVERTLY manipulated daily for political ends.
Funny how, with all the ongoing government market intervention, the concept of gold manipulation is considered “conspiratorial.” Oh well, I guess we should just ignore quotes from top government officials on the topic:
“Joint intervention in gold sales to prevent a steep rise in the price of gold was not undertaken. That was a mistake.”
– 1973 – Paul Volcker, Chairman of Federal Reserve
“Central banks stand ready to lease gold in increasing quantities should the price rise.”
– 1998 – Alan Greenspan, Chairman of Federal Reserve
“We looked into the abyss if the gold price rose further. A further rise would have taken down one or several trading houses, which might have taken down all the rest in their wake. Therefore at any price, at any cost, the central banks had to quell the gold price, manage it. It was very difficult to get the gold price under control but we have now succeeded. The U.S. Fed was very active in getting the gold price down. So was the U.K.”
– 2000 – Eddie George, Governor of the Bank of England and director of the BIS
“The primary goals for the BIS and central bank co-operation were to “influence asset prices, especially gold and foreign exchange…”
– 2005 – William White, Bank of International Settlements
“How long can the US government protect the dollar’s value by leasing its gold to bullion dealers who sell it, thereby holding down the gold price?”
– 2009 – Paul Craig Roberts, Assistant Secretary of the Treasury in the Reagan administration
In the words of Richard Russell, ALL THAT MATTERS IS THE PRIMARY TREND, which CANNOT be averted by manipulation, spin, or lies.
The GLOBAL CREDIT COLLAPSE will continue for years to come, yielding losses on essentially all investments classes, in MOST cases in NOMINAL terms and ALL cases in REAL terms. Only GOLD, SILVER, LIFE NECESSITIES, AND ITEMS OF REAL VALUE will retain their value in this environment, subtlely in calm financial market environments as we have seen this month, and more visibly when the forces of reality take control, as we saw this summer.
The time to PROTECT YOURSELF is dwindling, before the greatest asset transfer of all time asserts itself, rendering hundreds of millions of people bankrupt, and only a handful in control of their own destinies.