Sunday, May 20, 2018

ITS ALL GONNA BE FINE

Have you noticed it? You know? Its all gonna be fine now. Its all been fixed. We're gonna arrest all the bad guys soon. We're gonna have everybody that extracted your wealth, my wealth, and my children's wealth arrested. We're gonna restore the rule of law. 

We're gonna get out of the Middle East. We're gonna leave Korea....Europe....Eastern Europe.....South America. We're gonna stop our torturing....our regime change policy. We're gonna stop Central Banks from running our governments. We're gonna stop the revolving door between our government and our Corporations.


Trump Calls Off Historic Meeting With North Korea's Kim...lol does that mean the Nobel Peace Prize is off the table?


Soon we're gonna announce nuclear disarmament and get rid of bioweapons and chemical weapons (first of course we're gonna get rid of everyone else's but that's another story lol). Martin Armstrong is so confident that he doesn't really worry anymore and predicts the bond market is going to collapse but don't worry the stock market is going to the moon. Not only is he sure of the dollar's future strength but he now doesn't even tout gold. When hucksters like Armstrong are given airtime again then I start to worry lol. 

Yup.....its all good. Pensions are saved. The dollar is strong forever. Anon tells ya you've got all you need to know what's coming. How can it go wrong now? Its all good. See.....I'm not a doomer....its all good and so are YOU. My miner portfolio is up about 30% or so this year and I'm just thrilled shitless. Gold's holding steady. Silver is basing (maybe..lol).  Now......on a serious note.....ya gotta laugh at this shit show. Its so damn absurd to listen to the CNBS's and Bloomies that I have to mute it to keep from tossing my cookies. 


So I'll stay in the casino while the lights stay on and sing Kumbaya while Rome burns right in front of me. It ain't hopeless but at the same time none of this is gonna end without one hell of a battle. You wanna have it fixed easy?  Don't count on it. Time to end this tonight....gotta go catch a driverless Uber outside my door.

Sunday, May 13, 2018

YOUR PLAN WORKED

In 2009 the new Treasury Secretary, Timothy Geitner announced on after a "behind closed door" meeting of the Fed and Treasury that a final decision on "the plan" for emerging from the "Great Recession" has been made. Listening on Bloomberg Sirius at the time, I thought his voice was almost giddy compared to previous administration pronouncements. When I heard his cryptic summary of their decision, I knew they were insane. At least I believed they  were going  to buy us a little time at the risk of making the eventual blowup even worse. 

I was wrong. So what did he say. "The plan" was to blow another bubble. Paraphrasing of course, but Geitner happily announced that "they" had decided to use multiple tools to "reinflate" the financial markets and economy. There were NO specifics given by Geitner in the brief statement, but it was evident by his ebullient announcement, the bankers had their desired plan. I remembered thinking as I drove down the rode .... YOU GOTTA BE KIDDIN' ME....YOU SOBS ARE JUST GONNA BLOW ANOTHER BUBBLE?? THATS YOUR FOCHIN' PLAN? Ironically it was shortly after this time that Dylan Ratigan became increasingly militant with our financial disaster and even managed to get himself fired for his famous "we're being extracted" rant on MSNBC.


Happy Mothers Day America: 12 Million Millennials Still Live With Their Moms


I was naive. I knew they were capable of levitating the markets, but didn't fully appreciate just how willing they were to create the largest pile of "malinvestment" in the history of mankind. They were willing to pour trillions of freshly minted FRN's into companies that had zero chance of ever making enough profit to pay off their debt or to justify one penny of their stock share price. The power of borrowing money at zero interest can build a tremendous amount of stock share price. It can let money bleeders like TESLA and UBER and NETFLIX just keep gobbling up cash to fill their cash hemorrhages. Meanwhile, companies that have an actual balance sheet to adhere to, are being put out of business by these behemoth money laundering operations.

Silver’s Long Consolidation Looks Like a Launching Pad



Its become obvious their plan had NO economic law precedent behind it but instead was (as they said) an "experiment".  So WHAT were they "reinflating"?  LOL.....they were bankers....therefore they were going to REINFLATE THE BANKS!
To do so they needed to put Trillions into the Banks through every means necessary so they invented products like QE. LOL...QE is simple. They printed fiat money to buy the bad debt products on the bank's balance sheets.....essentially making the Fed the "Bad Bank", while breathing life into the Zombie banks. During the next nine years any insolvent or bankrupt entity (like hedge funds or pensions) that started to bleed publicly would be quickly "disappeared" with a paper fix. "Financial markets" applauded each intervention by the Central Planners. But after eight years, cracks started to appear.

It became obvious to veteran market participants like Dalio, Druckenmiller, et al. that the usual "cycle" was not being "deployed" by their puppet masters. That was unsettling and soon the voices of reason began sounding an alarm. They recognized they could not game the system because the system was mathematically destroyed and the Central Planners were not willing to let Nature clean out their Malinvestments. The "system" they had gambled err invested in for years had finally been destroyed by they immorality and greed exceeding the carrying capacity of the host the parasites had fed on. Without a "rule of law" we had killed off the goose that laid the golden eggs.  


We had lied, cheated, betrayed, tortured, slaughtered, murdered innocents by the millions to maintain the illusion. Do you believe in God? Do you believe in a "higher power"?  Do you believe in justice? Do you believe in the Laws of Nature? Karma? Good vs Evil? .......LOL maybe you just believe the boyz CONtrol everything.  I hope they like this latest "bubble". I'm sure they won't pop it. tick tock





Sunday, May 6, 2018

OVER THE CLIFF TIME?

Is it over the cliff time for general equities? I think its getting close, but there are still a few more suckers to get into the killing field before the boyz are finished. We're going to see over the next few weeks, maybe even to the fall, a levitation of the general markets. You may think this is a buy signal, but you better keep an eye on the breadth, NOT the overall headline indices. In my opinion it is going to be ugly under the surface for many equity holders in terms of their portfolio WHILE the CNBS headlines show a rosy picture in the indices and their headlines while the boyz pass off their shares to the rubes.


Fund Manager: A Quiet Bull Market Move Has Begun In The Gold & Silver Mining Stocks.....Iol...agree



Fed Chair Powell To Emerging Markets: You Are On Your Own....lol...you'll be joining the party soon.....



FBI Refuses To Pursue Personal Strzok-Page Texts; Grassley Goes Nuclear


The distribution process during this cycle is one helluva process and requires a little more time to resolve. Gold and silver will be an area of incredible benefit but again in my opinion the paper markets of the miner shares will be the rotational beneficiary of the ponzi. 


Musk Buys $9.85 Million in Tesla Stock After Taunting Shorts...lol who da hell even cares about that joke of a buy


I see little CONclusive evidence that they're ready to turn loose of the accumulation phase in miners yet but a hint that we are nearing a "boing" are the increasing  green days for many miners with the paper metal prices "dead red". For me that is a strong indication of seller exhaustion and the nearing end of accumulation. Again that could CONtinue for a few more weeks. Watch of course for the big price spikes in miners on double volume. 
















Monday, April 30, 2018

BELLY OF THE BEAST


Nice to be home after spending a week in a place that rhymes with Poopertino. I had an unexpected invitation to tour the belly of the beast and managed to gain some browny points with the Mrs. and visit one of the most concentrated areas of wealth and intellect in the World. I would love to go into detail but will only mention, the people, the ambiance, the weather, and the food were great. I will also add that in spite of the lovely experience, my outlook about our near term future unfortunately, has not changed one iota. 
If we don't burn ourselves to the ground in the next few years then I have hopes that our coming exponential boom in technology will give us hope. But once again, we've got to get through the neocon shitstorm....and maybe we can.


The (Supposedly Booming) US Economy Just Saw The Govt Borrow Half A Trillion Bucks In Three Months


Back to the boring beatdown called the miners and metals. We CONtinue to play our CONsolidation game. Most of you have no CONfidence in the miner shares or for that matter precious metals. Hopefully you are enjoying the pretend time you've been given at your children's expense, and hopefully you have made a positive impact on the earth and the life here that you enjoy. I still own my mining shares and have no plans to change my attitude or positions. Not gonna be too active trading them, but will always work on my peripheral positions if an obvious imbalance or opportunity presents. 


'It didn't produce anything:' Warren Buffett uses $10,000 to demonstrate why buying gold is much worse than buying stocks


Hope you all maintain a positive outlook and I hope you are able to compartmentalize the insanity and say "its all good" while you smile at the daily antics of our "leaders" and the propaganda that follows. gl












Saturday, April 21, 2018

YOU DANCED WITH THE DEVIL

What happened in late 2008 when all the late night meetings were going on to determine the course of a world mired in debt and facing the realities of their 30 year spending binge? They decided that facing these realities and taking the malinvestments out of the system was not going to be the best policy. Instead they embarked on a fairly complex set of decisions to "reinflate" a broken debt-laden economy with MORE debt. Simply put they were going to look into every crack and crevice to add money and therefore DEBT into a deflated bubble economy. They were going to blow a new bubble to keep us from facing a system collapse.

Imagine telling the state and municipal pensioners they are not going to receive even half of what their pensions are promised to be. It wasn't going to happen. Instead they made the deal with the devil. The deal was to kick the "reset" down the road at least for "one more cycle". In the meantime maybe a fix could be found. For now they needed to find a home for Trillions of newly minted Federal reserve notes.




They knew the big banks needed to be propped up and their liabilities served as an easy sponge for the majority of the debt. The Federal Reserve actually directly bought a lot of the toxic debt from the banks and put it on their balance sheet. Much of the printed notes sopped up bonds from every sector of the economy and drove down interest rates to levels unheard of. Junk bonds carried rates of 3 and 4 %. It made no sense, except in an insane world, but they needed more debt. Their appetite was insatiable. They needed to get the real economy going, but with Trillions sloshing in the publicly traded stock market, malinvestments were going to explode. 


Canadians Just Set A New Record For Borrowing Against Their Homes....lol that should end well



Tesla Is Being Sued Yet Again, For Allegedly Not Paying Contract Workers


Explode they did.  Money is fungible. It will move. When you increase the liquidity, guess what happens? The liquid flows. It flows into holes EVERYWHERE. The more you pour in. The more it moves. They needed bigger holes. They needed more holes. So they dug and they dug. They made Netflix holes. They made Amazon holes bigger. They made Tesla holes. They made Uber holes. They didn't care what was in making the hole as long as it was going to get bigger. THEY WANTED BIGGER AND BIGGER DEBT HOLES. So what if the business model could NEVER be profitable? So what if it destroyed competing companies with sound profitable business models?  They could call it "disruptive". 


Mike Adams’ Stark Warning: The Civil War Begins When Hillary Clinton Gets Indicted



Useful Idiots? New Yorker Magazine Fails Litmus Test For Media Impartiality On Syrian War....LOL...NO SHIT


They just kept pouring the liquid fuel into the holes hoping that somehow they could create a spark to get the free market system engine going. They knew there was a limit and therefore a major risk. You pour enough liquid fuel into enough holes and eventually there's going to be a spark. The danger is the spark doesn't get the engine just running but ignites an explosion. For instance, you now have companies like Tesla with billions of dollars in debt that are sucking up losses in the billions EVERY year with no hope of profit. And you're going to take away the punch bowl? You're going to "normalize" interest rates? Hell, virtually every mortgage holder out there is holding on by their finger nails at 3% mortgages. Just imagine what happens to the home market at even a historically low rate of 6% much less 8 or 9%. 

So here's what is our future (provided we don't get an external "missile").....we get low inflation this year and the Fed keeps on track with rate hikes and liquidity withdrawal. The "market" isn't going to like it. Another possibility is inflation begins to heat up to the level they have to INCREASE rate hike projections. This is the scenario I predicted last year. The market REALLY doesn't like this one. Its going to sell hard at some point and the Fed will have to back track, and then CONfidence is shaken. 

The smart money knows all of this. The smart money will move ahead of all of these scenarios and into sectors of the market that will benefit from these Fed moves. The fuel is there already. A lot of it will burn but a lot of it is going to flow out of the Fed created fuel bombs and into other "containers".  Those containers are already starting to fill. They're the resource and energy sectors. 

The sad part of all of this is the damage done to good, solid profitable companies and small businesses by this idiotic attempt to play with free markets by the Fed. They didn't get the "free money". They were extracted. Many were taken out and shot. We have lost a lot of strong hands over the last ten years for the likes of Elon Musk and Jeff Bezos. We're screwed, but over time nature will reassert itself and in a couple of generations we can overcome this insanity. Maybe we learned something.  There will be a reset at some point and there will be strong hands. I hope they're benevolent hands and I hope they're "just" hands. We could use some justice. gl