Tuesday, September 27, 2011

The Truth hurts

I have no idea why this video is generating such heated discussion when all that was being said was the truth. Its obvious to anyone with an IQ above 50 that
Goldman Sachs and the too big to fails DO RUN the world and governments are only their lackeys. After all that, has happened over the last three years, (and still is with the EURO rescue packages being dreamt up, that merely save FRENCH and German BANKS)  it must be obvious to anyone with a pulse that the entire western world is run by big banks with the Federal Reserve and other central banks playing the godfather to them all.
If people do not get It then they need to and fast.
As for his talk of collapse, again he was entirely correct. It is mathematically impossible for it not to collapse when we have a debt based system that has reached the limit of debt that a functional economy can service.
It is truly amazing that more people do not get it. These figures are made public every day such as the 14 trillion or so owed by the US and just about every other nations debt approaching 100 percent of GDP, how to people imagine that the system can survive with this debt load? Debt is either repaid or defaulted on. Those are the only options. What has been going on since 2008 to somehow stop defaults is just a shell game, moving debt from one place to another and hoping it will go away, well guess what, it can't and it won't.
The debt HAS to be cleared one way or another. The market Will get its pound of flesh, you can be sure of that. Can they delay it? Sure they can try and kick the can further down the road with more bailouts but that just makes the situation worse in the long run as we are seeing now.
IMHO we are on the verge of the big deflationary collapse now, how will it end and how bad will it get? I do not know. I think the best we can hope for is a 1930's type depression. I think that really is the best we can hope for. At the worst it would be like Mad max with a complete breakdown. For those that say
it won't happen and that the governments wouldn't allow it think agaikn. Its due to the actiosn of said governmenst that the system is collapsing. Do not expect an arsonist to save you from a fire. Apart from that there is NOTHING they can do. Thye should have stopped spending money they didn't have and prevented credit bubbles reaching the levels they diod years ago. Once a bubble is burst its too late. My advice, make sure you have small amounts of cash in a lot of different banks. Make sure you have enough cash put aside outside the banks
just in case there are bank holidays. make sure you have enough food to last a month or more. Tins of Tuna, pasta, rice, tinned veg and frozen goods. make sure you have some physical gold and silver somewhere and possibly soem gold and silver coins on your person.
I think the dollar will rally to new highs and stocks will eventually find their bottom BELOW the lows of 2009. After that I think they willk print money and paper currencies will collpase and gold will soar to unimginable highs. I cannot give you a time frame but it will not be 2015 before we see this IMHO. I think the s and P will be below 1000 by year end.

Thursday, September 22, 2011

It seems that we cannot learn our lesson as there is still talk of "saving" Greece

You cannot save a bankrupt entity be it sovereign, individual or a company by giving them more debt. Even a 5 year old can see this but it seems to escape the ECB, IMF , Merkel and all these other clowns. Listen up and listen good.
Greece is like a gangrenous leg. You either cut if off leaving the host ie the rest of europe alive or you let it fester and kill the entire patient. Lose a leg or die thats the choice. It amazes me they talk about contagion IF Greece the gangrenous leg IS cut off but the reality is the opposite. With Gangrene you either remove it or it spreads. Again why is that so hard to understand

Can this be the start of people waking up to the reality that Keynesain economics is a load of voodoo bullshit?

I hope so
I have been saying for years since 2008 that the crash back then was just a  warm up
the policy of trying to bail out bankrupt banks just shifted the debts onto sovereign  nations, so instead of banks going under we would have entire countries going under and everything would crash again only this time there would be nothing anyone can do to mitigate it.
If they had allowed the free market to work 3 years ago and banks that should have gone under, went under, we would have had a severe recession/depression but we would of been recovering now with currencies still in tact.
Now we will enter a great depression with currencies failing as well.
Only the naive and stupid could not have seen this coming, its pure common sense that you cannot solve an insolvency problem with liquidity and more debt.
Thats the keynesian response and whilst total debt levels are low it works but when you reach debt saturation as we have now when both the state and the individual is bankrupt it only creates a bigger mess.
We had the choice to take our medicine 3 years ago. We chose 3 more years of
living off the credit card and this is the result.; It was akin to a herion addict wanting one last hit. Well we had it and this last hit has nearly killed us.
It may indeed kill us . This crash is just getting started IMHO
We will retest the lows of March 2009 at some point and stay there and this is all due to not letting bankrupt companies and individuals go broke as capitalism states they should have in a free market. We bailed out the speculators at the expense of savers and in the process destroyed capitalism. You cannot have capitalism with no capital ,but when you artificially force rates lower there is no incentive to form capital. We blew it and allowed unelected officials at the FED and central banks to blow it for us. I was considered crazy when I questioned the Keynesian response years ago , and said it cannot possibly work.
I was told if we hadn't of saved the banks and payed the bankstas their bonuses the system would collapse. On the contrary its BECAUSE of said bailouts that the system WILL COLLAPSE. This is basic maths that seems to escape most people. Sad but true

SymbolNameLast TradeChangeRelated Info
^ATXATX1,897.00 6:39AM EDTDown 97.00 (4.86%)Components, Chart, More
^BFXBEL-202,020.04 6:58AM EDTDown 95.83 (4.53%)Components, Chart, More
^FCHICAC 402,790.44 6:58AM EDTDown 145.38 (4.95%)Components, Chart, More
^GDAXIDAX5,207.09 6:43AM EDTDown 226.71 (4.17%)Components, Chart, More
^AEXAEX General266.22 6:43AM EDTDown 9.46 (3.43%)Components, Chart, More
^OSEAXOSE All Share396.90 6:43AM EDTDown 15.08 (3.66%)Components, Chart, More
^OMXSPIStockholm General274.29 6:58AM EDTDown 11.33 (3.97%)Components, Chart, More
^SSMISwiss Market5,331.30 6:41AM EDTDown 144.04 (2.63%)Components, Chart, More
^FTSEFTSE 1005,043.64 6:43AM EDTDown 244.77 (4.63%)Components, Chart, More
FPXAA.PRPX Index903.10 6:58AM EDTDown 25.90 (2.79%)Chart, More
ESI500000000.MAIGBM795.55 6:30AM EDTDown 32.43 (3.92%)Components, Chart, More
MICEXINDEXCF.MEMICEX Index1,416.74 6:58AM EDTDown 90.51 (6.00%)Chart, More
GD.ATAthex Composite Share Price Index833.35 6:41AM EDTDown 22.64 (2.64%)Chart, More

Wednesday, September 21, 2011

Excellent post from Illargi over at automatic earth today

This is an excellent blog even if they are dollar bulls and gold bears
who knows maybe they are right though even on that count

September 21 2011: Reckless Abandon

National Photo Co. Smokeboat September 1918
"Fire at Washington docks of Norfolk & Washington Steamboat Co."

Ilargi: I'm not even sure if it's right to claim that it's unique to our societies, but it's certainly something like a token sign. We do a lot of stupid and useless things, but this one is right up there with the cream of the crop of them.

For days now, the entire financial world seems to be holding its breath waiting for Ben Bernanke to issue a statement on what his Federal Reserve aims to do next, a statement to be delivered today, Wednesday, around 2.15 PM EDT.

What makes this so remarkable is that it should be clear to anyone with a pulse and some control of any of their senses left, that Bernanke's upcoming speech is completely inconsequential for more than a very short and fleeting moment in time. The Fed can't save our economies or banks from the upcoming recession slash depression anymore than it can send a rocketship to Andromeda.

The Federal Reserve is impotent when it comes to saving the economy, even if it tries with all its might not to show it. It flaunts its fictional capacity and ability to come up with new and creative well-calculated measures to influence everything from A to Z like once upon a time the emperor flaunted his new clothes. And no matter how badly any and all of its previous measures have failed, the vast majority among us still praises the subtly elegant materials and their dream-provoking shine. We don't want reality, we want to believe.

Oh, but you say, the Fed did succeed at times: didn't QE1 saved the economy?! No, I say, it did nothing of the kind. One might argue that it saved the day, perhaps, but all it really accomplished was to make the crisis more opaque. And granted, that may well be what it was designed for. So in that light, yes, one can argue that the Fed has been highly successful.

But that is not what we are looking for in a central bank. What we are looking for is for it to, indeed, save the economy, in order that, in the case of the Federal Reserve, ordinary Americans can look forward to decent paychecks, and homes they can keep living in, and bright futures for their kids.

Well, neither QE1, nor for that matter any other of the Fed's measures of the past few years, have done anything at all to stop housing prices from plunging, to make sure people get hired again, or to make our children's futures look less bleak. And it has failed to accomplish all of this while spending on and lending to the global financial system some $10-$20 trillion in American "wealth", public funds.

It’s simply not true that with different policy decisions, the day could be saved. The choices lie elsewhere: are we going to use the people's money to "save the financial system", or will we use it to alleviate the misery of the people themselves? To date, the choice Washington, Brussels et al have opted for is abundantly clear: not one choice has been made based on what is best for the people. Instead, the people are told that it’s in their best interest if their money is used to prop up failed and bankrupt institutions. And so far, the people buy this baloney. 
entire article

Sunday, September 11, 2011

A fitting video for the 9/11 anniversary

To all those who believe in the official story given by the media nd the government i have one thing to say
Anyo0ne who believes the official story is a grade AAA moron
from this video remember that the hijackers PASSPPORT WAS FOUND A FEW BLOCKS FROM THE WTC.
So an fire which obliterated three buildings, somehow spared a paper passport, that just so happened to belong to one of the hijackers
Oh please

Thursday, September 8, 2011

An excellent piece by Karl Denninger

Basically sums up what I have said right from the start that the speculators were being wiped out at the expense of the savers.
A recipe for a disaster as its the prudent ones with capital that need to be protected so capitalism can work in the manner its intended and not a government s; sponsored leveraged Crony capitalist system.
As Ludwid von mises said there is no remedy for fixing a collpased bubble other than to let its run its course other wise the currency itself will collapse. We are seeing the result of this now. I disagree with Denninger though
metals will in the end be the only place to preserve wealth, that and food and maybe guns.
This nis serious stuff and the only way out is to let the market work free of manipulation
yes that means people who borrowed too much and the lenders will be wiped out, but so what
thats the way the system is supposed to work, the prudent get to buy the assets of the imprudent and the system starts again from a more sustainable base ands lenders and people who got leveraged too much learn not to do it again

Jobless Claims: Stinks Again (414k)
Gee, where are the jobs?  We know where they're not - in the US.
In the week ending September 3, the advance figure for seasonally adjusted initial claims was 414,000, an increase of 2,000 from the previous week's revised figure of 412,000. The 4-week moving average was 414,750, an increase of 3,750 from the previous week's revised average of 411,000.
That's nice.  You don't need the DOL report to know there are no jobs, you only need to get outside of the damned Washington DC beltway to discover this.
The futures, after tanking some on the Euro rate decision, dropped another half-percent on this release.
The simple fact of the matter is that this is not about tax cuts (for the rich or otherwise) or any such thing.
The problem is that zero interest rates have destroyed capital formation, destroyed reasonable returns for prudent people who have actually saved their entire life and thus collapsed their income, and as a consequence spending from surplus output and new business formation has collapsed, transferring the only remaining factor for consumer spending to Ponzi-style government deficit spending and credit used for consumption and speculation, none of which is capable of producing prosperity.
more here