Tuesday, May 31, 2011

American Hunger

Americans have failed to sense where the problem with their country lies and now they are angry and hungry.  This is the most dangerous combination of an emotion with a feeling.  Misplaced anger has only the companion of loneliness.  America has coupled itself with the inability to create wealth with a government policy that keeps it poor.  The government bails out and funds corporations instead of the people.  Now the people are broke and so is the government.

The food riots began with the dollar menu rebellion.  When Americans could no longer afford their diet, they went crazy.  People have blamed the food institutions and each for the problem.  Unfortunately the anger is misplaced.  The economic policy along with food being a resource has created higher prices at a time when many can not afford to eat without food stamps.  Now gang violence is spreading.  This violence is in direct relation to the price of food and unemployment.  These two problems were created by the government with job resourcing policy like NAFTA, and economic policy like zero interest rates.

The problem may have been created by the government, but it is now the people's.  The people must own it, or they will die in its wake.  Without the realization, the people will be lead by the dumb and blind government policy that created the mess in the first place.

Acts of Desperation

Today, the economy officially crumbled.  The housing market affirmed its epic failure as a wealth preserver.  The key industrial indexes fell further than anytime since the Lehman bankruptcy.  And most importantly, the single financiers, led by Mobius and Ichan, do not believe that the system was ever fixed.  This after hundreds of trillions of dollars were spent world wide trying to stave off a depression.

Lost in the fray are the key metrics of fiat and resources.  Little changed today, and that eery quiet is the world waiting for the pin to drop.  All eyes are on Bernanke, whose theory is universally accepted by the house schools of economics.  He only has one plan, and since the economy is weak, he will continue with it.

The US has no choice but to monetize the debt.  No other entity will buy it, and without the debt the US will be broke.  There is only way out, even if it is into the arms of a failed policy.  The desperate acts of Neo-Keynesians have to fail before the gig is up, and failure is at hand.

Saturday, May 28, 2011

Swan Lake: Military Industrial Complex

Sucking America dry of its wealth, the Military Industrial Complex has laid waste to the Nations of the globe.  Its inception was created by the financiers of the Federal Reserve Bank, but it has become its own monster.  It has held America hostage with false flag after false flag, and has been the final blow to the American culture.  Men that go to war for the US have the highest homeless rate out of all demographics.  There is also a very high tolerance for the sexual abuse of women.  American society has been financially and morally fleeced by the Military Industrial Complex since the start of the First Great War.

Every State needs an armed force, if it is by paying a militia, or creating a standing army, but today's Military Complex has gone too far.  Trillions of dollars are spent every year on keeping a boot on the throat of the world, and this money is ill spent in numerous ways.  The world hates the US for their forced global control, and the money could be spent on more progressive operations at home.  The Complex is wasting the wealth of the people of the world.

The bloodshed is a travesty that will be looked back on with horror.  There have been countless wars, and America has lost many young to them.  The wars have killed tens of millions of foreigners, and any death in this case is unjustified.  The World Wars were propaganda to start a world order; the wars since have been to solidify control of it.  Now the US military, along with NATO, are marketing war as peace like never before.  All the while humanity loses its ability to understand its nature.

The nature of people is one of love.  Societies formed on the back of at first unspoken but then known rights and rules.  Now these rules have been broken by the Complex, and the time and wealth spent beheading humanity has made the world a broken place.  Soon the world will crumble and shatter, splintered with the broken heart of the broken dream of a better world.  It will happen at the hands of the Complex.

Friday, May 27, 2011

Silver Leads

Products will be more expensive due to monetary expansion and resource exposure.  Gold and platinum production have peaked, and oil is about to.  When silver does, any chance of cheap resources is up.  These four incorporate technology, and assets.  They are the necessity of invention.

Today, silver investment did better than the market.  This has been common for the last years, and before the Fall of '08, but lately due to questions of the market, it has been up in the air.  Now we see silver coming back in line.  Now we can remember what true value is.

Silver is used in technology, and it meets the requisite of monie.  That it is undoubtably cheap is another.  Silver will reign over all investments YoY for the years to come, as it has already during the climb into the new world.

Thursday, May 26, 2011

Corporations want Unemployment

Corporations want America to stay unemployed.  The reason for NAFTA was to shift the high paying jobs overseas to cut labor costs.  Now corporations want to keep unemployment high because they want to keep their margins, and the best way is to cut the fat from their bellies, and that fat is the American workforce.

The best way to keep the game going for the corporations is for people's taxes to pay for food stamps while the lower classes continue to suffer at the hands of domestic policy.  The corporations pay little or no taxes, and so it is the people supporting the people while corporations war against the Republic of America.  It was the corporations, not the people, that were bailed out during the Fall of '08 and the Spring of '09.  Now the corporations are the only thing benefiting.

Corporations will hire foreign workers before Americans.  Corporations will cut pensions to maintain margins.  The US allowed GM to file bankruptcy and then bailed them out because from a corporate standpoint, it was best to stop paying pensions to their former employees.  American unemployment will stay high to the benefit of corporations.

Tuesday, May 24, 2011

Swan Lake: Obama

The Obama situation is a very dangerous one for the State of the world.  His being a megalomaniac is one thing, his being a sociopath is another, and his being pathological is one by itself.  I say he is a megalomaniac because he chastises reporters for asking tough questions.  I say he is a sociopath because he continues to think he can do no wrong while his government runs roughshod over the poor of the world.  I saw he is pathological because any man with a conscious should see that his actions are not only unjust, but evil.  The fact that it looks his papers have been falsified is a trump card; one that can keep people blackmailing him for another term.  Maybe he was born in America, but it appears he will not be able to prove that fact, and if it comes to that, he will change the world with the ultimate Black Swan.

If it happens that Obama can not prove his birth record, and it now appears his latest "form" is not sufficient, then America will either decide to redo all his actions as President, or let him keep his job.  If he keeps his job it will set a precedent that anyone can run the US, and it will usher in a New World Order.  If not, then America's history will be rewritten.  The consequences will be dramatic.

The turmoil will seize finance, stop the military dead in its tracks, and ruin almost all aspects of American life.  The world, already is disarray, will not be able to help except philosophically, and this Black Swan will crash onto the lake of reality in the ultimate whiteness.

There are no solutions to this problem except to ignore it, and ignoring the man Obama is also dangerous.  He cares not for Constitutional authority concerning the war powers act.  He cares not for detaining people at Guitmo.  He cares not for anything but what his puppet masters decide.

This is why he should be impeached on every single charge that lays before him.  War with Libya is unconstitutional.  The Federal Reserve is unconstitutional, and he as well as every President before him should be held accountable.  There are other aspects of his Presidency that are impeachable.  It should be done with the will and might that Americans are known for, for there is no other option.

Monday, May 23, 2011

Gold is King

After the silver/oil pullback the markets could have discounted gold too.  Platinum has been, but gold remains up.  This is because gold is the official asset of leverage on the system.  Silver and platinum may see heavier investment come the next decade, but the trust has already been placed on gold.  Whereas the financial system of old accepted not only gold in bank vaults but silver and gold too, today it is only gold that central banks use to loan out as an income stream.  This is why its price must remain high, for if the loans collapsed, so would finance.

Gold has always been a wise investment, whereas platinum is only gaining momentum.  Silver's production has not peaked like the other two, and that is why a boom in platinum could come at any time, although investment seems to ignore platinum.  All three are direct investments in technology, but it is only gold that sees itself officially as monie.  This is why gold has the ultimate advantage.

Platinum could be cornered in a hurry, as it is a very small market, but the popular investment remains gold.  Silver is very undervalued on a price per ounce basis, but gold still remains the investment de jour.  Even if one of the two other metals catch a bid, it will be bullish for gold.  Gold is and will remain King of the financial universe.

Washing Dow 12k

It is no surprise that the markets have stalled out right before the announcement that quantitative easing will last forever.  This has a real advantage for the market makers, as they are sure of QE3, and they will buy the dips leading up to the continuation of the debt monetization.  This is a great example of how the corporations are using the US government and all governments to take over the global landscape.  As the governments go bankrupt, they still provide liquidity for the banks to fix themselves on top of the corporate structure.  In the end, it is these corporate banks and their corporate entities that will survive debt monetization and currencie devaluation.

The lower the equity the better the buy.  Buying the dips has been the only way to play the market.  Running up to QE3 has provided great opportunity in oil, gold, and silver stocks, as they have pulled back drastically.  They world has watched the game long enough, and soon the banks should become net long of these four asset categories.  What is interesting is that so far this is the area where corporations have lagged, and the only beneficiaries has been those who have bought physical gold and silver (with a few expectations, as some mining and oil corporations have done well).  More than anything it has provided the given industries opportunity to secure mines and fields and clean up their balance sheets.  Not only have individuals seized this opportunity, but central banks have as well.

Once quantitative easing is continued, the next move will happen and those holding the assets will watch as reality catches up with the markets.  Government debt and equity will evaporate into nothingness, leaving anyone relying on it empty handed.  The beneficiaries will be those who can produce, if it is with already owned physical assets, or with the tools to create assets.  The markets will wash this range until then, and then once fiat goes away, all finance will not be recognizable.

Friday, May 20, 2011

Back to Basics

The trend for precious metals and oil are back in form.  Oil showed many bullish signs, the most being its Tuesday/Wednesday move that formed a trench.  To start this move, oil came down from $100 to $97 and flattened, then the trench was made to $95 and back to $97.  That shows us where the bottom level of support is.  Then it stayed flat until an up move and now we are back to $100.  There was a flash crash today, but flash crashes are common and more than anything flash crashes are ways to manipulate either a lower buy price, or to maintain a high price.  Since it is my belief that the President's Working Group is hoping to keep oil at this level for as long as possible.  The flash crash happened because an algorithmic trading black box wanted to scoop up a buy at $95.

Gold had a very strong move up today, and on the back of a capitulating dollar.  Gold first made a strong move when the dollar strengthened, and stayed up when the dollar sold off.  Today was a good day for gold.

Silver and platinum remained sanguine, but are showing that support is a little lower than their current price.  Given that the market fundamentals have not changed, I think that when quantitative easing is continued, the Four Horsemen will solidify their move to the next level.

Thursday, May 19, 2011

"Bla bla Bla"

"Bla bla bla."  This is what economists say, "Bla bla bla."  They say this because they think they know, they think they have answers.  Their flaw is that their are no answers; nothing is set.  This is the flaw of economics, "Bla bla bla."

Plato, who said, "But to know is a divine right", understood, we, in our form, can not ascertain absolute knowledge; it is the process of learning that is the importance.  Assessing flaws and rigorously creating ways is what we do; we need not suffer the consequence of imperfection, for after all, we are not perfect.  Yet this study, the understanding of order, thinks it knows.  "Bla bla bla".

So when Bernanke, or whoever, stands astutely before a podium, realize, he has not the slightest clue as to what life is.  The meaning of life is derived from our own selves, and this is an ever changing feeling.  We are not rational, as much as our rationale.  Once we achieved godhead then yes, our economia will function proper.  Until then, we, mortal, will suffer our consequences.  Until then, we will be, and only be.

Wednesday, May 18, 2011

The Long Trend

The long trend shows commodities, led by the monie commodities, being in an up trend beginning with the tech crash.  Ten years down the road they have had only one severe correction; they could not get out from under the absolute collapse of all markets.  Considering how manipulated that crash was, with the Treasurie out right claiming martial law on the hands of what was thought to be a liquidity crisis, the fall of commodities was rather tepid, as they bottomed in the Fall of '08, where as the rest of the market bottomed the following Spring of '09.

Since then there has been an official recovery of the markets, because equity is up.  It seems that this is the only metric that matters to those that claim recovery, because it is the only one that has been cited.  Unemployment is still horribly high, there has been no growth in any sector besides commodities and equity, and at the same time, prices and inflation have risen dramatically.  This is a recovery that was not.

To put a stake in the recovery myth, when compared to dollar devaluation, equity is even at best.  This leaves commodities as the only gaining asset class.  It has been the commodity bull that has raged on.  This bull has only started, due to the fact that commodities are mostly finite resources.  Food production can increase, but only at the hand of perfect conditions and increases in technology, and neither of these examples are reliable.  The core commodities of technology, the four being gold, silver, platinum, and oil, are extremely finite, and three of the four are past peak production, with silver being the only one that has not.  Since the precious metals are the only assets that define monie by the requisite four definitions, they have the ultimate advantage in finance.  These are the main reasons that what has been termed the commodity bull is far from done running.

Tuesday, May 17, 2011

Equity versus Debt

I bought shares in CIT Group Inc when the stock had crashed to pennies.  My theory was Geithner would bail this entity out like he had the Majors.  He did not, but he did give the bond holders one hundred percent on the dollar of their investment.  I will frame my receipt of bankruptcy soon, as to remind myself of the crazy world finance lives in.

I got to thinking, what will happen if the US defaults?  What is the debt, and what is the equity?  Who will get paid?  We know what the debt is, those are the bonds.  It has been my belief that either the World Bank or the IMF will restructure the central bank debt of the world and collateralize the debt owed to gold.  This will mean that the proportion of debt will be in terms of what gold is worth, and each central bank will pay each other off will whatever gold reserves they have.

In my view, the equity is the dollar, and all fiat.  This is a fresh thought, so maybe the equity is something else, but as far as know, I think that fiat is the equity that has been created by the central banks.  I will think this through further.

I will also take this time to thank all of my readers.  This blog has been my privilege, and I am happy you have enjoyed it.  There are steady hits from all over the globe, and I am glad you all feel welcome to read here; you are, and thank you again!

Daily reversal Coming

Gold and silver have been pushed through their support.  This is happening because some economist thinks it is wise to loan out all of the US' gold.  I would call it America's gold, but the gold was stolen long ago from the people and trusted to a private bank called the Federal Reserve.

If anyone has not seen the video Luke caught of Bernanke hob nobbing with oilgarchs and financiers, I suggest they do so.  Bernanke is a sock puppet; we knew this, because his theories are lame.  He is a lame, and he is on the job.  This job is busted.

The dollar is treading water, and from the DXY it looks bullish on the day.  Precious metals are getting wrecked.  Oil is down.  But when looking at the dollar versus specific fiat currencie, the dollar looks weak.  I think a huge reversal in this short term trend, that has the fiat dollar up and real monie down, is about to end.

On the day, I am looking for a snap back that has the day almost even.  But soon a huge trend reversal will come for the short term, and we will once again be riding the long term trend line.  This will happen when the markets realize that Bernanke and the Federal Reserve will monetize the debt for the rest of the existence of what is left of America; because they have to.

Monday, May 16, 2011

DSK

DSK:   this can be pronounced- disk.  The name Dominique Strauss-Khan literally translates to "the sun god who fights the prince".

First, I do not believe there is a "conspiracy theory"  before the fact to nail DSK.  I think he is a maniacal and power hungry person who seized what he felt was an opportunity to flex his ability.  That being stated, now that he is in trouble, isn't it interesting that he has not even seen bail.  He will probably get off (I hope not) because of his influence and power, but it has sure made for a scandal.

Although he was going to run against Sarkozy, who is one of the most fascist leaders of all, this does not mean he was going to change any system.  He was a chief architect.  He was a main operator.  He did the bidding of the fiat ponzi.  His charge is not anything but theatre.

The world interacts with a definitive coercion; China and the US are allies, whether the news reports it or not; China buys US bonds, and the lower classes of both said States are kept poor.  Europe and Africa are allies; the power hungry of both are kept fed while the lower classes, the real individuals of society, are starved.  The DSK meme, at this point, except for the victem, is merely global theatre.

Economics has gone for a ride and the world with it.  Time is speeding up.  Space is crowded, even at the top.  Change is due, and it is not only us who are calling for it; nature has given signs that planes have met.  There is still something to witness.

This crazy Market

Silver has found support just under $34.  It traded below there for a quick New York minute last week (literally) but it has found support.  It is being dragged on support, but I expect it to move higher shortly.

Gold has support just under $1500.  I really expect gold to make a move north soon with all of the trouble finance is in.  If there is any hope of a "recovery" it lies with higher oil prices.  Oil will not trade for fiat any longer, and gold will take the reigns.  It will happen soon.

The dollar looks dead in the water.  Many trades may be shorting the dollar, and the Euro may look overbought, but the US needs a low dollar to maintain its debt payments, and as the Federal Reserve and US Treasurie run the economy, they will continue with this policy.  

Equities continue to flash crash, or crash altogether, as volatility is really the driving force behind finance.  NYX got dumped today, because the Germans will get what they want.  It joins a long list of high profile stocks that have either missed on the margin, or missed on the rumor.  Considering the fundamentals, the market is lucky there is anything to trade at all.

With the debt ceiling breached, and with a coming announcement that quantitative easing is the only out, the next leg of hyperinflation lays in wait.  There is nothing stopping it, unless gold overnight moves to $12k (and its sisters two along with it).  For if there is anything that can leverage the system further, it is gold.

Debt ceiling Breached

Mark it down; today the US fiat ponzi system went for broke, and upon arrival, the power hungry seized one of its prized possessions:  federal pension funds.  The fiat ponzi has long wanted its hands on pensions, social security, Medicare, Medicaid, and all wealth pools.  This because the system needs the funds to maintain.  Without them, the fiat ponzi will vanish into thin air.

The Federal Reserve has already been monetizing the debt since the inception of Quantitative Easing.  Apparently, this was not enough to keep the ball rolling.  Now it needs to literally steal money from not the debtors, but the investors.  This is truly a shameful day for the economic system.

Finance is now, says the US government, on its last legs.  Social security ran a cool trillion in debt last year, and the politicians have put the rest of earned savings on the chopping block.  This only so the system can continue.

The system has slaughtered the lower class so violently that they are not even aware of their short comings.  The middle class are trying to keep their head above water, and have stopped caring about anyone but themselves.  All the while, the rich suggest the plays that the system should make, and count their coup along the way.

Today was the day that the system officially ended, and almost no one noticed, let alone cared.  There is only a matter of weeks before Bernanke walks into one of his black tie balls and commands the continuation of his Quantitative Easing.  This is the moment that the rest of the Central Bank cartel is waiting for.  The frenzy that will ensue will engulf finance whole.

Sunday, May 15, 2011

A Changeover

There a possibility the IMF will lose creditability, and its Special Drawing Right with it.  We must examine what would happen if this is so, for in today's world, there is nothing outside of the possible.  The system is so far gone that anything could happen at this point.

The SDR is heavily weighted in dollars, but if the SDR fell apart, the fiat currencie that make up the conglomerate SDR may gain respective strength.  The dollar makes up the majority of the SDR, and if it took the bulk of the liquidity it may go for a little ride.  Liquidity does not mean that the DXY would necessarily climb much higher, because the other currencie may see an equal move in their deviated volacity by suppy/price, and one must take into account the velocity.  With volatility being so high, it is very possible that nothing in fiat value changes much.

That is why I think gold will benefit the most from any fear trade against the SDR.  The SDR is backed by gold in the same way that all currencie is; the IMF holds gold reserves and if anything happened to its bonds, it would be forced to liquidate reserves.  Loaning them would mean moving them to assets, and this would put them on leverage.  This is what causes gold to move up in the long run, because of a lack of supply.

Another reason that gold could run up is that silver and oil are trading on their historic pairing, and if silver takes the liquidity, so does oil.  Of course, in the long run all Four Horsemen will eventually move much much higher until gold and silver standards replace fiat as to trade directly for bonds so to even out the world system that has oil selling for nothing.  Yet we have seen how one of the four can move alone, followed by the others.  If the IMF is in trouble, so might the SDR.  If the SDR is in trouble, it will be gold that directly benefits first.

If this happens, if gold moves sky high, and the same is for silver and platinum, the world would not change much.  Some technology would become more expensive, but that is about it.  This is why it will happen.  The world needs balance, and it is these weights that will drop anchor eventually.  If it is because people buy up the physical silver and start their own banks, or if a Central Bank corners the platinum market and fixes their bonds to such, it will happen eventually, because it is the only thing that can.  This is why Forbes, Sarkozy, Zoelick, and others talk so much about gold backing the system; they know it will happen eventually, and the want to front run the trade, so that the people, we the people, stay in their pocket.

When the gold move happens, life will go on as always..."It's called a changeover,  The movie goes on,  and nobody in the audience has any idea."   Oil will be $5, maybe $10 at the pump; the dollar will buy a cheap beer; $100 will be good enough for a long night out on the town; but gold will be worth $7k.  What does this change in the life of the people?  Not much, unless you were heavily invested, like the central banks are.

Saturday, May 14, 2011

Off the Cliff

Bernanke and Geithner may be happy with the way finance looks right now, but whatever their plans are they have to be sweating.  As for now, oil and silver are still below their respective breakout resistance, gold has made no charge ahead, and platinum is still lagging.  Equities are still pinned at highs, even while the algo machines flash crash every one of them.  The dollar although devalued has some value.  Everyone is happy, seemingly.

Yet there is now a cliff only a moment away, and the only thing stopping the economy from going over it is a smallish wall.  This wall is like the American infrastructure:  people talk about it like it is a grand thing, but it has not had repairs or updates for a long time.  The wall will be breached with an increased deficit, or the failure to raise the debt ceiling.  Obviously the bottom of the cliff is an inevitable destination.

Bernanke and the Private Dealers need quantitative easing to continue to monetize the debt, because the cost otherwise would be far too large for the Federal Reserve's balance sheet to handle.   If there is no continuation of quantitative easing then there will be no demand for US Treasuries; not from the indirect bidders and not from the private dealers.  Without this demand the fiat ponzi is finished.

So while everything looks honkey dorey, it is not, and this summer, while the Bohemians are safe in their Grove, the world will wake up to the fact that money does not grow on trees.

Wednesday, May 11, 2011

Loan contracts Due

The Federal Reserve has the largest private gold reserve on the planet.  They use that gold to facilitate loans, meaning, they loan the gold out.  I imagine that some of their biggest loans are coming due.

Gold is the collateral, the only real collateral, that the Federal Reserve has.  They have 14k tonnes of gold they can put on loan.  They loan the gold to other central banks.  This so the other central banks will continue to buy bonds, for they know that the gold is a good hedge if the bonds collapse.

The Federal Reserve prints money and pays off the foreign central banks that buy Treasurie bonds.  They also pay off the Private Dealers who are helping with the fiat ponzi scheme.  The Private Dealers go along with it because the Federal Reserve bails out there faulty loans.  The Private Dealers also short the precious metals in coordination, which not only lowers the price for when the Federal Reserve's loans come due, but offers for a good investment opportunity.

The President's Working Group on Financial Markets could also short precious metals.  The Federal Reserve by proxy has many tools to manipulate the system.  They use them all with coercion, because fights will go on as long as they have to.

Tuesday, May 10, 2011

The Four Horsemen

Last summer, when I realized there would be a continuation of the Federal Reserve's quantitative easing forever, I made a call that the four main asset classes, due to their real and tangible value, would hit a resistance level that once broken would take finance away from the dollar for good.  I called this, for lack of imagination, 'The Next Move'.  The levels for the next move have serpentined in and out like a rumba dancer moving across a stage.  When one hits, another takes a dive.  When two hit, two take a dive.  The Next Move has almost lined up numerous times.  When it does, people will realize what a real asset is, and they will never forget.

The reason all "Four Horsemen" have to line up has to do with affordability and investment opportunity.  When one of the Horsemen stays below the range, monie is allowed to spill into it and not disrupt finance.  This all has to do with liquidity.  Finance is begging for a Horseman to stay in an affordable price range, or else the system will not be able to afford investment.

The levels that were chosen:  Gold at $1440, silver at $36, platinum at $1800, and oil at $105.  To be specific, an investor has a hard time buying gold at $1500 when oil is costing more than $105.  It is not affordable to buy silver at $49 and platinum at $1850, when one is trying to establish a position in other sectors.  This is why once the Next Move is totally breached, it will bankrupt the investor class.  Once the financiers are bankrupt, reality will wake the Horsemen, and they will kill the dollar.

This does all hinge on the fact that the dollar is not a real investment.  It is a one sided trade; all it does is create debt, it does not offer a proper store of wealth.  The Horsemen know this, and once the gate opens they will stampede the dollar into the dirt.

Monday, May 9, 2011

Silver's coming Moves

Silver will remain parabolic on a long term basis.  Stand back and think about what a ten year parabolic move in silver could mean.  If it rises parabolically, the pullbacks, even if they are huge, may not be apparent, because they will happen quickly.  Volatility will hide the short term moves beneath the long term trend.

Silver will average at a 4% clip while it moves back to its nominal high of $50.  It will see moves of 3.5% on back to back days, with then a 3% pullback.  Come the $46 mark there will be a move up to $50, with another large selloff.  This will likely happen two times other than the last, with each sell off being less than the previous.  Once $50 hits, the pullback should move to $42.  Then $50 will be tested again with a pullback to around $46.  The market makers will protect $50 for as long as possible.

The market can only test $50 so many times before it breaks, and once it does, it is on to another level.  Like I just wrote, $50 will likely be tested and sold twice more, as three is the major number when it comes to tested resistance levels.  On a long term, ten year chart, these pullbacks will not be noticeable,  even though volatility will remain high until silver is recognized as monie.  This will either be when a Central Bank moves assets into silver officially, or when a major exchange defaults on physical and tries to paper over delivery.

Sunday, May 8, 2011

The bloody Dollar

"Hey, man, hold my hand; say no to war in Pakistan!"

"Weapons are tools of ill omen.  War is a grave matter; lest men embark upon it without due reflection." - Sun Tzu, the Art of War

The dollar is a war instrument.  It was installed as the reserve currency like the ring of Sauron was made to suit the purpose of total domination.  The dollar was trusted to the US with the purpose to rule over all.  When one rules over all, it is a dangerous matter.

Without the dollar the fuel that drives America's war machine is dry.  The reserves in Alaska can fund domestic travel, but not it and war.  The Bakkan reserves do not have the EROEI to also fund the wars.  The wars depend on foreign oil.

This has the US in a conundrum.  It needs the oil to fund its wars, but it can not get the oil without war.  Unless it had a currencie that was useful to others.  The dollar has no use; it is of no value.

The dollar is a debt instrument and nothing else.  It is not a store of value, and because of this it will soon no longer trade for oil.  So while Americans drive their silly lives away, hoping for change to fuel their pipedreams of owning land instead of borrowing land, of owning time instead of borrowing it, the world slips and trips on the reality that America, by proxy of the fascist government that controls it, is warring, and thus wasting, precious energy away without care for others, and that means it is being done so without care of self, for others are self, for we are all one.  When the world rises to see that its nature was broken at the hands of a few who care more about just desserts, pensions and 401(k)s, nature will take revenge and deservedly so.

The dollar is a blood soaked weapon of war, and nothing else.  Its fate is tied to the very same Americans who acted like they know war.  America is more at war now than ever before.  Its dollar pays for four wars that each rival Vietnam.  Yet where are the protests?  The democrats have turned into the war mongers the Republicans only dreamed of.  War is the state of America now with every single mind and heart accepting this fact.

Whether Americans were tricked into this matters nought, for the fact lies that Americans are men and women who could rise up against the war machine, but choose not to.  America has accepted the wars, and the weapon that is the dollar.  Americans use the dollar day in and day out.  They hold them, and feel the presence of what is the tool of pure evil.  Americans have accepted their fate.

But this could all change.  It could all change with one protest.  With Americans coming out from under their roofs that block them from the overhead aligned planets, and saying no to war; saying no to the fiat ponzi dollar that is the war machines weapon.  The ball is in the Americans court, and justice now lies in the Americans heart.  What is now done will reflect upon each persons soul for eternity.  It is now time to take responsibility for the blood soaked dollar.

Saturday, May 7, 2011

Equities follow Gold

Next week, and maybe the next, may have equities pulling back.  The reason is because the trend for the last two years has had equities following gold and her sister metals.  Precious metals had a gigantic fall last week, and if they have not found support, it will send equity crashing.  If precious metals have found support, then equities should still pull back a little at least until they find support themselves.

With the volatility that is in the market, it is likely that the Dow washes around the middle of the 12k range for the rest of May.  Bernanke's bind is that his bond purchases rely on quantitative easing, and when he announces his plans, if it is a QE Light or Dark, it should spook the dollar into falling off of a cliff.  Until then, the dollar should rise a little more, and the Euro should fall a little too.

The dollar will likely peak up to DXY 76, and if so the Euro will trade at $1.39.  This in the next couple weeks.  Silver and oil will wash their new range which has oil trading from $95 to $102 and silver from $34 to $37.  Gold will stay steady in the range of $1490 to $1510, as it cares not which fiat leads the ponzi, as gold backs all fiat by proxy.  Central Banks use gold as a leverage point to facilitate their loans to one another.  The tell is that when gold pulls back it is because they have moved the metal monie from an asset to a reserve, and sometimes even to a liability.  When this happens, liquidity dries up.  When liquidity dries up, equity pulls back, because the major investors no longer have margin available for risk.

Come Bernanke's next childish remark about finance and economics, which he will make near the end of this round of quantitative easing, the market will capitulate back into its old trend of dumping dollars for real assets.  Until then, this new range will be tested.  The market makers love volatility, as it gives them the chance to buy low and sell high.  It now appears the fiat ponzi will survive May.

Friday, May 6, 2011

May's first Week

Last week was one for the books.  After seeing a continuation of a parabolic blow off for the price of silver, the price came crashing back down.  It may have found support on Friday, but oil was extremely volatile, and because the two are correlated, silver's support has not been proven.  Gold remained strong through out the week, even though it traded slightly lower.  Platinum fell to the middle of a range it has been stuck in for months upon months.

Volatility was the only winner this week, and it is best to always remember that volatility is the main driver for finance today.  Equities saw a slight decline on the back of a rising dollar.  Europe saw rumors swirl again about a splintering of its monetary system.  Certainty was anything but this week.

A pullback in any asset class should always be expected, but silver's was unreal.  The coordination between the exchanges, private money, and government was so inter locked and precise that it really goes to show that more than anything the power hungry only care about continuing the fiat ponzi as long as possible.  China is happy to continue to buy precious metals at low prices, the US is happy to sell expensive bonds with no interest, and the private rich and House banks are happy to run both sides of all trades.  The concerns of the unemployed and hungry matter not.  What matters is keeping the status quo intact as long as possible.

Yet this weeks moves scream of desperation.  Not only was the Bin Laden play such a desperate act, considering that the best intelligence in the world says he was dead long ago, but so was the silver manipulation.  The exchange raises were unprecedented and it allowed major shorts, presumably naked, to take advantage of rising expenses.  But when physical demand exceeds the paper, the fiat ponzi will come crashing down, and the status quo with it.

Thursday, May 5, 2011

Flash Crash Anniversary

Tomorrow is the one year anniversary of the Flash Crash, when the equity markets plummeted quick and hard before popping right back up.  The "Flash Crash" move started with the Dow already down around  500 points.  Then, in a matter of seconds, it lost another fast 500.  The world of finance appeared to be falling apart at the seams, but then something unprecedented happened; the 500 point drop popped right back up from the depths of despair as quick as it had moved down, and the day ended only down 500 (500 is rounded in all cases).  This, the day was named, "the Flash Crash".

Now with the US mafia having everything from terrorism to finance under control, or rather, having control of everything, the anniversary will be used to prove Neo Keynesian economics is working.  Equity will rise dramatically in corporations like WFM, JWN, UNP, ZIP, NKE, GOOG, MSFT, XOM, and other large capital corporations.  After all, the people are at the benefit of the corporations, since their pensions and all important 401(k)s rely on them.

This will have the real assets up too, since the leverage begins and ends with what is real.  Silver will move back to $37, gold to $1500, and platinum to $1800, which is the middle of all three's respected three day ranges.  Oil will peak up to $102.  The dollar will trade flat, because the Euro is also overweight.  In fact, all fiat will trade flat.

Of course, this trend is the long one in line, as equities and the real assets have moved in tandem for two and one half years now.  Corporate debt will continue to relish the fact that the Central Banks must hold up the State Treasuries of the world.  Without the monetization, rates would rise, increasing the debt burden, and this would kill growth.  At the same time, no one will buy bonds unless rates rise, so QE to Infinity and debt monetization will continue, because it must.

While the debt continues to be monetized, the fiscal policy will continue to be a charade, and the spin machine will wash away fears of the debt ceiling and any other problems.  The US has reigned in terror, and it can do no wrong, so of course its economic monetary policy is justified.  The fight for a new world order will go on as long as it has to.

Dollar Fail

China said last week they would cut their dollar reserves by 2/3rds and with them they would buy real assets.  Then out of no where, unless you knew that Obama was a Brzezinski protege and that Brzezinski was Osama's puppet master, the US killed the terrorist blamed responsible for the wars the US had waged for the last decade.  How ironic.  Yet somehow this could still work out in China's, and anyone wishing to rid themselves of dollar denominated assets, favor.  Now the opportunity to buy low presents itself.

The coordination of the fiat ponzi has been so like clockwork that it appears all governments, and thusly the oilgarchs that control them, are in on the take.  At the tipping point the US trots out immense propaganda and China talks big and does nothing.  This is all to be expected, but once again, this is the tipping point.

The major Houses support both sides, and jump on the fix, shorting real assets while the spin machine goes into to overdrive.  The interesting thing will be the next phase.  The next move should be one to finish off the delicate system.

What I had titled 'the next move' came and went and I did not really notice.  I wanted all assets level up.  I was waiting on platinum.  But it was silver and really silver, and oil that stole the show.  Gold went for the ride, but not as expected.  Gold has stayed strong though, which is telling, but it is still silver that is now in charge of dictating the moves of the fiat ponzi, which is the reason for the insane margin hikes by the paper exchanges.  The financiers of the fiat ponzi will extend and pretend until the curtain falls from in front of them, and silver will be the be all and end all that tugs it down.

On the Fix

It is well known that the House of John Pierpont Morgan, by way of a lady named Blythe, shorts gold naked.  It is a well known fact that the Federal Reserve, the world's largest gold bullion holder, leases the gold they stole from the American people in 1933.  It is a well known fact that the LBMA leases gold at prices they choose and for certain amounts they also choose before their market open.  It is a well known fact that the COMEX does not have the bullion to cover their contracts.

This being known, one would have thought that the recent pullback in precious metals would have such entities as Russia, China, and the House of Saud, all whom express great demand for precious metal, jumping over the action.  Yet no demand has lifted price.  This means that all are in the take.

Now we see how the world turns.  When it comes to the oilgarchs, protagonists and antagonist are merely roles better suited for a play.  The Houses of Morgan and Saud are essentially one and the same.  The men Carlos Slim (who is reportedly shorting silver) and Warren Buffet are the same.  They care for nothing but money.

And they play both sides.  They play both sides to buy low, and then they sell high, and they short along the way.  Right now they used the proceeds from the recent gain in silver to short silver.  Because silver trades with oil, its drop crushed the oil price.  Gold trades with the fiat that does best.  Gold has been steady as steady goes for years now.  If the Euro is the go to currencie, it trades with that fiat, if it is the dollar, it trades with that one.  Because oil production is about to peak, and same with silver, the oil/silver trade has the greatest upside, but until the peak of production the two will remain highly volatile.

Along the way the oilgarchs supply the means for the power hungry to keep a hand on the elements of the world.  This hand appears invisible to many, but is actually very obvious.  It will take those that can see it to move it from above the heads and only then will the dawn of a new day appear.  Taking back the wealth supply, and that means owning physical precious metals, is only the first step.  The power hungry intend to back their fiat with precious metal after it fails.  This has always been the intention, for they know, as the patriarch of the Federal Reserve JP Morgan said, that "Gold is money, and nothing else."  It happens to be a direct investment in technology, but it is monie, and as monie rules finance, it rules the world.

The world yearns for freedom.  Freedom comes when we have the ability to make choices without a superior authority dictating so.  Right now monie is controlled.  We must free monie if we wish for freedom.

Wednesday, May 4, 2011

Comparing the Two

With the dying dollar should come higher prices, right?  Well it appears the dollar can lose its absolute value, and oil and silver can trade lower.  They have only tested support, and the trading is volatile, but based on recent metrics a devaluing dollar would move them higher.  How is this happening?  Money is running to the Euro.

One may question the Euro, and I would concede that it is just like all other fiats; it is very worthless.  But, while the world goes about its day, pretending to produce the future, the Euro is best of the lame bunch.  The reasons are because their military is not bogging down their collective balance sheets like the US's.  Also, oil is easier to get into the continent of Europe than America, because pipelines from the Middle East and Russia provide easy transportation, and any oil coming into America from those regions must be shipped.  America does have Alaska, but Japan gets the most of it.  America is basically an island when it comes to the world's goods.

Europe had also prepared itself for an oil shock by having a high price established.  This meant people had prepared themselves to not rely on cars.  The use of trains and buses are the norm, and are used more so than in America.  It is a fact that a high gas tax can prevent a price shock from an oil spike, too, because the nominal price is already high, and the percent increase is made less in comparison.

Other than that, Europe and America are in the same boat.  Both have bankrupt balance sheets, and both pretend their days away.  Come one night, out in the elements and without shelter, both will be shocked by the cold, but Europe is better prepared, and the world of finance has obviously recognized this fact, thus why money has flowed into the Euro over the past nine months.

Tuesday, May 3, 2011

Silver bottoms at $41

The bottom in silver is in at $41.  It has been tested once today already, and will be tested again, but on Friday, silver will move back into the middle of its recent range that is the $40's.  Silver will remain volatile until the Summer solstice, but it will have moved higher in total.  Then after the solstice silver will never look back, and it will take finance along with it.

May sixth will be a day where the markets capitulate to the upside, after testing support throughout this week.  The Trinity will test support until Friday, and then move higher on a dollar that will begin to drop to DXY 72.  Friday will have equity begin a great move higher, one that will end with the Dow Jones at 14k on the summer solstice.  The Dow will basically skip through 13k.  Then once Dow 14k hits, the third stage of hyperinflation will start.  The third stage is the final one.

Friday silver will move back to the mid forties.  By the end of May it will have broken $50.  By the summer solstice it will be at $57.  Then it will move at a pace unseen.  Tens of dollars a day will tick off through the summer until the Fall starts and silver is in the hundreds of dollars, if there is even a dollar by then.

Fast Times at Volatility High

The winds of change became gale force gusts of the storm that started to over take the market during 2005.  Then, the housing market saw its peak, and has continued a steady crash that rivals the greatest bubbles ever.  The next shoe to drop were equities beginning in 2007.  By the Fall of 2008, the world was being hit with a wall of volatility.  The volatility persists to this day, and is picking up speed, despite a VIX that is lower than the Fall of '08.  The VIX is part of the fiat ponzi, and no part of the fiat ponzi contains a proper metric.

Flash crashes are the norm, and sometimes equity does not recover.  Treasuries provide no interest, and are not the safe haven of old due to the ever accumulating debt issuance of all State Treasuries and Central Banks.  The fiat ponzi is where the power hungry have tossed the people's wealth, but due to the fiat having no backing, any safety is but a figment of imagination.  The financiers of the ponzi act like they have no learning curve, and use the same broken policy that begot the problems.  The volatility of finance will stay until these problems are addressed with logic and right rhetoric.  Until then, the world of finance will sink into oblivion with the fiat ponzi.

Every minute that the problems are not address add stress on the already fragile system.  High volatility blasts the shoddy ship of finance into rocks along a coast not suited for docking.  Inside the ship the central planners act like school children without adult supervision.  The pace of destruction is quickening, and the financiers act like there is no problem.  Without method, there is no student and there is no teacher.  Without any relationship there is no school.  Without proper discussion, there is no reality.  This is the fiat ponzi; it is without the real.

Fiat currencie has not benefited from the recent pullback in equities because no one wants to invest in the fiat ponzi.  I believe all Working Groups, and not only the President's but Europe's, Japan's, China's, and the Saud's, are selling equity and moving to Euros.  This trend will not hold, because the European finance system is in shambles and is no better than any other fiat ponzi.  The big move will be when all the Euros are dumped for gold and silver bullion.  This move is not far off.

Platinum is the bell weather.  It is the market that is ignored by even the greatest PM investors.  Platinum is monie as is its Trinity sisters gold and silver.  The next move will have all three skying to the heavens, away from the ridiculous lies of the fiat ponzi.  Platinum will at first lead the group.  The other two will catch up quickly and then may lead to the top.  Any one's guess is as good as mine, but all three will move together in some fashion.

The fiat ponzi is close to being done.  When all Working Groups are done piling into the Euro, and the trade becomes seriously over bought, the current sea of finance will wash the fiat standard away, for moving from one fiat to another is now a joke.  The pound Sterling has lost an edge, the dollar has no chance of recovering, and the Japanese Yen is going to be spend repairing what is left of Japan.  The Chinese Yuan is not any better, as China faces a hungry population that fiat can not feed.  The next move is into the Trinity.

The Trinity can provide anything that is asked of it.  It is monie, and monie can be used to store wealth or facilitate growth.  The world has slowly learned this over the last decade, and with the fiat boat sinking, the ship of the Trinity, ever sturdy, will provide safe passage to fruitful and prosperous lands.  The Trinity will provide a means of exchange for energy, it will create growth when it is loaned, and it is a safe storage of wealth when nothing suits its fancy.  The Trinity is the ultimate safe haven, and the next move will leave finance in a sinking ship as the Trinity will finish its voyage to safe passage once and for all; this with the next move.

Monday, May 2, 2011

What monie Provides

Monie acts as a reserve for prudent times, for the risk is literally kept in pocket.  If one wants risk, it can be made an asset, and thus it is loaned and an income stream flows into pocket.  It can also be a liability.  A good example is when it is trusted to a bank.  This is why monie is the ultimate investment.

An investment is something for someone to rely on.  An investment should provide stability along with an opportunity.  Right now there are not many investments that meet both of these requirements.  Monie is the only one that is reliable.

Remember, monie must meet four definitions:  It must be fungible.  It must be a store of wealth.  It must be a means of exchange.  It must be a unit of account.  The only thing that meets these requirements are precious metals.

Precious metals are the only reliable asset class.  There are other asset classes that can become fair investments in the future, but for right now, physical metal, monie, is the best.  Nothing else can provide the leverage monie can.  All other assets are at the whim of other investments.  Monie is an investment in and of itself.

Sunday, May 1, 2011

Swan Lake: America

Long ago the lands, ideals, rights, and beliefs of America were hijacked by a global cartel that can best be called either the US corporation, the corporation of the US, or simply, the US.  The US took over the government of America by installing corporate entities to run business, politics, and, most notably, the monetary and fiscal policy of the State.  They did this with the dual mandate of creating a life of leisure for the populace, so to make the people completely complacent in defending their rights; all the while the US stole all the wealth that America had ever had, by the demolition of the constitution.  The next and final step was to install the US system globally, and they did so after the second world war by making the dollar, which at first was a domestic fiat debt instrument that would become an international fiat debt instrument, the world reserve currency.

By the second world war the dollar had already parted with its constitutional standard at home because Delano Roosevelt took the gold standard away from the American people, and this after he, the Congress, and the Federal Reserve, had stolen the gold from the people in declaration that it was in the best interest of the people for the US government, and not the people, to hold such wealth.  Then the plan was finished when Nixon did the international standard the same, fixing the collateral for US bonds as the dollar only, thus completing the fiat ponzi.  Since then, the State has been wrecked by every head of State to run American foreign and domestic policy.  Each Congress and President has ignored the needs of the people, and at the same time increased their burden by increasing military spending, which made America not only bankrupt but seem, in the eyes of the rest of the world, to be an antagonist.  So the same entity that destabilized the Constitution, the US, began proxy wars that bankrupted the State, and with the same move, put all of the profits in the hands of the few:  those who run the corporations.  Thus making the people of America look like the antagonists, when it was a group of a few who were controlling the strings of the puppet State while Americans thought they lived lives of luxury.

These corporations were led hand in hand by the Federal Reserve Bank, which is a private corporation controlled by the heads of the US corporation and many proxie corporations in a round table of effort.  This bank subjugated the American State government to a role of a serf, this dealing the State blow after blow with depressions not made by accident.  The House of Morgan created the first assault after the man Morgan had agreed with the man Rockefeller to consolidate the family businesses of the monied interests into proxie corporate entities by making a panicked bank run, thus forcing the consolidation of all monied interests.  America stayed in desperation while the monied interests took over State policy and then Americans was made to go and fight the first world war without choice thanks to the claimed government's folly of accepting the corporate agenda.  Then, because of policy that allowed  insane leverage in the markets, America collapsed into great depression.  This made people follow the beating drums of war once again, because there were no other opportunities domestically for people to create sustainable living.  Then after the second world war the agenda was firmly in place, and it was only a matter of time before the wealth of the State, by the inflating dollar, died, and the hands of the military industrial complex took firm control of all things American.

There may have been brief interludes along the way, but even when the American people won a battle, they ran back to the comforts of a given American Dream, only to be ransacked further.  Vietnam is the best example, for whomever thought that victory was had, forgot that it was merely a battle, and the war to take back the constitution and ideas of rights was still long in the tooth.  Since Vietnam, the oilgarchs and their financiers have made sure that the economy and politics oscillates so that no solid ground was available for anyone to successfully protest the corporate agenda.  The two parties of the Hegelian system were financed by the monied interests, and ran roughshod over the rights of the people.  The people had been relegated to serfs at the hand of the US corporate agenda.

Even though the corruption was more than evident with every passing moment, the people bought into the dreams that were forced into their nature.  Times of robustness made people invest in houses on land which will never be owned by humans, only leased, as the earth is the only entity that can have itself; we merely borrow from it.  People invested in corporations that do not share the same interests as the people, and these corporations walked into the night like vampires after a kill, smugly enjoying their very desperate existence on behalf of a willing population.  The people were tricked and deceived that the US had ever truly accomplished anything for the benefit of the people, and thus, America, because all accomplishments were merely memories past.  America now lies on the field barely breathing, for look at the current state of affairs:  Afghanistan, Pakistan, Iraq, and now Libya are all killing the very people, our brothers and sisters, uncles and aunts, cousins and parents, that we have sworn, based on the universal principal of love, to not only protect, but to never abandon.  America, the land of the free and home of the brave, has been abandoned, and in its a place is an atrocity of an entity that has no stake in the development of humanity, but instead has a desire to end it, so to replace it.  Now America has become a refugee in its own land, with its rights abandoned by the way side of a dusty highway.

Rights are not given, they just are.  People do not need rights written to have them, because the rights existed before the idea.  Just like an idea, we can only realize it.  The rights of Americans exist, but they have been failed to be recognized.

Now with the world noting that the State that ran the economy for the last hundred years is past the point of bankruptcy, the end of the American experience is here.  The double edge sword that was a fruitful land and a right Constitution coupled with extravagance and complacency have left we the people in a predicament that will define the world for decades to come.  While life was good, no measure of sustainability was made.

Now when life swings to the other end of survival, the means to an end has still failed to bee recognized.  This has caused the world to shake, but because Americans have isolated themselves into their cubicles and cars, each face this quake alone.  It looks like loneliness will be the fate of the future.

There is still one last chance though.  If people can realize that nothing but love is deserved, and understand that only we together can achieve sustainability, then people may be able to pull together in our time of need.  If not, the shake will wake people up to a cold world; one that looks the same but is not.  The change will bring with it a realization most people will not be able to understand, but because we are who we have been waiting for, maybe this will be what we needed to become who we were meant to be.  It has always been that humanity learns best from its mistakes as long as the mistake can be rectified, and maybe this mistake will bring with it a knowledge that we will never forget.

We get what we ask for, that much is certain.  Every life is different, and I do not mean to slight the individual, but as a group, we have asked for what we will get.  If that is economic collapse to the fullest, if we wanted to test ourselves, then we will be tested in such a way.  If each person can make a difference, and I believe they can, then maybe we can whisper the secret in each others ears fast enough so that the world can realize the rights of the individual are before our idea of them.  Then we can recognize life for what it is, beautiful yet fragile.  This is our last chance, and we must not hope, but act, because the Whiteness was begot with the corporate takeover of America, and will end with the same, for America epitomizes the world, and so shall the epitome be the final black swan.