Sunday, August 13, 2017

THE BIG CON

In one word its all about CONfidence. According to Chaos theory something as small as the flutter of the wings of a butterfly halfway around the world can cause a typhoon to form on the other side of the globe. Its been all about preventing any hurricane to develop in our financial system and that begins with the most important aspect of a fiat or CONfidence based system. That little piece of debt paper that is used in billions of daily transactions globally, that is backed by just one thing.......CONfidence. CONfidence that the government/private cartel that issued it will actually be there during the immediate future to "stand good" for it to purchase goods and services. In other words, you can CONfidentally "hold" it for a "reasonable" period of time in your possession.


Bitcoin Blows Through $4000 As Asian Demand Soars


Therein lies the rub. Our fiat dollar relies upon this very fragile word. Our entire media has lined up since 2009 stating every five minutes  that we are in a recovery. With painstaking care they have avoided tripping a trigger to the meme of recovery. Its comical to watch a multitude of the same worn out pundits trotted out to extoll the virtues "financial engineering" for corporations as if this was the best thing since white bread instead of what it really is and that is pure fraud. 




We perpetuate CONfidence in every aspect of this massive debt bubble that has been created. Our "all important" monthly NFP jobs report is a complete fraud now. There has been very little improvement in actual full time "good paying" jobs since the collapse in jobs in 2008. We've created a lot of mediocre paying part time jobs and we've rigged the numbers with the "birth/death" adjustments to suit the needed outcome that months. One of the largest employers in my area is a massive outlet mall and I drove through it yesterday and it looked like Armageddon with 60 store closures and more to follow. Very eery to see big brand names like Ralph Lauren shuttered.


Dudley Warns "Market's Rate Hike Expectations Are Unreasonable" Sending Yields, Dec. Odds Higher........LOL


We send out a barrage of Fed speakers touting future "rate hikes" saying the "economy is strengthening"......even though we continue to bleed good paying full time jobs. "What will the Fed do next" dominates Bloomberg and CNBS. Its no longer a "soft peddle" for the next best investment idea. Its all about the Fed and what THEY will do to goose the juice. Its only about the juice.

Ignore the long bond pays 2%. You wanna buy a boatload of these babies don't you. Just load up on these stinkers for the long haul with dollar devaluation a certainty. I like to call it the Trifecta investment. 2% annual return with a sinking bond price and a long term dollar devaluation/inflation. How can anything go wrong? 

Its all good. Keep listening to the music.





Sunday, August 6, 2017

ITS GETTING WONKIER AND WONKIER

How much more bizarre can this get? Elon Musk is bleeding over a billion in cash a month and his stock is through the roof as he now lowers prices on his shitty selling cars. You're bleeding cash losses and you LOWER your selling price? Many of the top manufactures of cars are getting ready to roll out electric cars that will crush Tesla and the malinvestment just rolls along.  Free money and government subsidies will keep this pig on life support until the plug is pulled. Its the same way in all of the FANG type of stocks and it will not change until the free money stops. As this money sloshes within the banking system it MUST FIND A DEBT VEHICLE TO GO INTO. Therein lies the great illusion. 




Here is the dirty little secret and it is CRITICAL to the game. They must find debt vehicles that DO NOT affect inflation. In other words they have to delineate which areas of business/economy and the equities market they let money flow into. That is one reason money flows into ETFs from the banks instead of general market stocks. They also invest in individual equities BUT only in equities like Apple Google etc that have minimal leakage into the overall inflation metrics. They are creating enormous bubbles in joke stocks like NFLX that have almost zero effect on inflation. That is key to their game. Increase debt and asset prices while keeping real growth in the economy slow and keeping inflation looking tame. Its stagflation of course but it appears to be "controlled" stagflation. That keeps the game going and CONfidence in the fiat currencies, while the middle class are slowly bled and the poor class grows larger.  


Trump Escalates War Of Words With N.Korea: "Things Will Happen To Them Like They Never Thought Possible"



Two-Thirds Of Americans Say North Korea Poses "Very Serious" Threat ...LOL


Remember that the stagflation of the 1970s produced a 25.5-times increase in the price of gold and 38-times increase in the price of silver.  Stagflation is gold and silver’s best friend in terms of relative price performance.  It’s just a matter of time before the next leg of the secular bull market in gold and silver begins to take off to the upside in earnest and all that is required is patience. KWN

Meanwhile the the future of  the baby boomer generation bleeds underneath the surface as pension funds are more and more underfunded and exposed to a major reset. No one pays any attention to this "elephant in the room", but they will. Its another "unavoidable" reality.  What will compound this problem will be the collapse in the dollar and the subsequent inflation that will accompany the collapse. You may even have some "bailout" by the government on your pension. Maybe they'll give you fifty cents on the dollar. Your response may be, okay I can get by on that. BUT what do you do if the essentials are now costing you double or triple. You are getting 20 cents on the dollar in reality on your pension. Now that becomes a problem. AND THAT is only if we get stagflation. Hyperinflation would mean your pension is 
worthless.


"We Can Barely Keep Up" - Prepper Panic-Buying Begins As WWIII Fears Grip America



Wells Fargo Says It May Find ‘Significantly’ More Fake Accounts


So don't get distracted by the Fed saying they want to reach inflation of 3% or whatever. They don't. They want EXACTLY what we currently have and that is exactly why they are trying to raise rates currently even though the real economy is putting up slowing growth numbers. They aren't trying to land this big plane on a little aircraft carrier......THEY are trying to keep us ON the aircraft carrier. They could heat this up and hit their target in a heartbeat. They have zero intention of changing the current strategy. Like Dillon Ratigan said...... Its a giant wealth extraction scheme. Of course the BIG problem for them is their debt and that cannot be serviced if interest rates cross the 4% number. All this massive debt starts imploding.

They're developing a tighter and tighter control grid with the passing of every year now. They're readying the digital gulag and preparing for an Artificial Intelligence driven existence that keeps everyone on the gulag. They'll keep the bread and circus going and the constance diversion. They'll play out the Trump circus until they shift to the next RINGMASTER. You're in the circus so I suggest you enjoy yourself while you make serious preparation for its transition. It will change. It will breakdown. They know this is not indefinite. They know they have to change their host. They're a parasite on you and they know you will die one way or another. The TRANSITION is what you have to be preparing for.  It is the moment when you hear the phrase "no one could have seen this coming".  LOL ... well YOU did.









Saturday, July 29, 2017

THE PERFECT STORM

Before any great storm is the "calm".  You're standing on your porch and an eery quiet will envelop your horizon. The gentle, swaying, movement of the trees diminishes along with the din of the birds and the insects anticipating  the approaching danger. Nature provides a "warning" system to give the animal life time to take refuge. The animals have their own radar. Instead of wailing sirens, they use other changes around them such as barometric pressure and smell as an alert. Animals sense this. The "quiet" is not really a "quiet" or a "peace".....instead it is the "warning".


Trump Tweets Dow 22,000 Today: Embraces Big, Fat, Ugly Bubble


Its okay if you don't feel the coming storm. Its okay if you don't listen to the sirens like Dalio, Druckenmiller, Gross, and other prescient voices. After all, how can it really be that bad? You've had many of these voices for years now predicting a collapse. I remember like yesterday posting the Kress Cycle and its warning signs for collapse in 2015. What happened? The "market" indexes just went higher. I love how they tried to "engineer" a 10-20% correction in 2015 and couldn't even allow that painted "normalcy". Their "catch 22" is the "illusion" of a normal functioning market is no longer even possible. The algo designed movement cannot function if the downside begins to move derivative currents into a tsunami.


Peter Schiff On Trump 'Owning The Stock Market Bubble': "The Fed Now Has Their Fall Guy" ....you bet they do!


Its become so "calm" that crypto currencies are now showing up as a large warning cloud on the horizon. Can you imagine just how insane this is? First of all do you think for one minute if crypto currencies were a real threat to the "dollar" that the PTB would allow them to exist. They can flatten these digital air bullshit ponzi puffs in a nanosecond. They're using them to deflect "dollars" from physical gold and silver. What's more amazing to me is that stackers like Weir, V, Hoffman and others are touting this fraud. Even the sharper minds are susceptible to the boyz. Does it make any difference in the long run? Nope....but it does put some brakes on the physical consumption of metals. 


In a less liquid world, the crash in oil prices would have resulted in a bankruptcy bloodbath. In a less liquid world, the bursting of the housing bubble would have led to millions of foreclosed homes clearing at fire sale prices. In a less liquid world, highly leveraged firms would have been rendered insolvent and incapable of covering their interest costs.

In short, a less liquid world would be smaller, for a time. But when the time came to allow nature to take its course, central bankers could not bear the pain, nor muster the discipline, to allow creative destruction to cull the weakest from the herd. Their policies have forced us to pay a dear price to maintain a population of inefficient operators.

I have zero problem using the crypto currencies as a "speculative" tool or as a means of transferring your dollars or wealth. Especially cross border transfers. BUT this is to be done with GREAT CAUTION. Imagine selling your house and taking the 300K and buying Bitcoin a few weeks ago and then travel overseas to convert it to cash to buy gold and discover bitcoin crashed from 2900 down to 2000. Then panicking and converting immediately to close your gold buy fearing further fall. You just  lost a shit pile. This is not even my biggest complaint. My biggest complaint is the talk that its a buy and hold store of wealth. You've got to be kidding me. This is the ultimate NOTHING BURGER! Could Bitcoin be worth 10K next year? Sure.....but it could be worth ZERO too. You might not be allowed through fiat law to even access it without penalty of a ten year prison sentence.

Dow Gains 600 Points In 9 Days; S&P, Bonds, Gold & Dollar Unchanged



War Is Right Around The Corner: Russia Mobilizes Three Motorized Rifle Division “Strike Forces” In Preparation For Rapid Offensive Assault On Ukraine


We're hearing crickets in the summer. The deflated stackers are now selling their silver back to the dealers. The retail PM miner trade is finished. The fear of a global storm is no longer an issue. Trump is elected and the wicked witch is dead. Look out your window. Do you see the storm coming? I don't. I don't hear anything. Its all good.












Sunday, July 23, 2017

MILLENIALS GOBBLE UP TINY HOUSES!

You can't make this up. We have such a great economy now that our 30 year olds are now buying 500 square foot homes. Better yet, many of the 30 year olds are still living with their parents. They have 6 figure college tuition debt. They are postponing marriage. Many, that are marrying, are postponing children indefinitely. 

We have developed such a great recovery and economy that we have 80 thousand dollar pickups with 9 year loans. Can you imagine feeding me a "no inflation" bullshit sandwich with that 80K sticker price? Maybe you wanna take a bite out of that, but I smell something rotten there. 

The Bottom Line
The bottom line is that this massive secular bull market in gold and silver will be one for the history books before it is over, and no government or set of governments or central banks will be able to stop it.  The artificial paper price manipulation (that currently feels like it will never end) will fail just like it did for the London Gold Pool in the late 1960s.  And when it fails, the upside gains in gold and silver will be breathtaking. KWN


We May Have Already Seen The All-In Signal On Gold
It is likely that late 2015-early 2016 was the all-in gold signal. It was then that the Chinese got religion concerning their markets. KWN


I know, I know, don't be such a doomer. It's all good. Its a recovery. Get out there and take out that 9 year car loan. Buy your dream sardine can home. If you don't want to live in the sardine can, then grab up one of those McMansions that have supposedly snapped back to all time highs. Grab yourself another wad of debt with carrying costs that will drag you down for the rest of your life. Can you guess where your county government is going to go to fund their pensions and their salaries? They're gonna go for your property taxes! How else are they gonna pay those teachers their sweet salaries and pensions. Teachers used to be "underpaid". Guess what 9 months of work and a 50K salary ain't bad with a sweet retirement in this destroyed economy.





 You know....GET ENGAGED! Be a part of the Buttfox world. Go for it. The Plantation owner's have your back. You're not just a "debt slave". You're a WINNER? You're living the dream! Don't EVER FORGET, you live in a CONsumer economy. You are part of the GREATEST generation. You make your country great by buying SHIT! Like your tiny house. Like your 80K pickup. Like the great President George W. Bush said. Get out there and SHOP! Buy shit! Your country needs you!

Gold and silver and miners should take a breather this week with options expiry.

Saturday, July 15, 2017

STAGFLATION!

Or you can call the headline "the curve is about to invert".  You really don't care do you? You should. Its the conundrum the Fed has boxed itself into. They keep raising the lower end of the yield curve in an effort to CONtinue the illusion "there is a recovery and we can normalize interest rates again". They keep "hoping/expecting" you to say "wowza, watta great job you did saving us from an economic crisis". Maybe they think you forgot that before and all during the "crisis"....they were telling you there was NO crisis. 

No More "Cash On The Sidelines": Private Client Cash Levels Drop To Record Low


Seriously how can you not admire a great Con. I mean get serious. You blow a "tech bubble" in 2000 with derivative leverage and then blow another housing bubble in 2008 with even bigger derivative leverage and then announce in 2009 that you're gonna fix that bubble crash with even bigger leverage. I mean that makes the original Charles Ponzi blush. This time its different though. This time the leverage scheme has the full support of the Fed right out in the open with Fed presidents appearing virtually daily telling YOU (AKA The Mark) ......That another crash in our lifetime will not happen. I love it. I absolutely love it. 




And as most you know I thought we had a problem with the math. You know.....MATH. Like if ya said we have a big phat insurance company that has actuarial tables that guarantee your life insurance policies and your retirement policies and your health care policies that DEPENDS on a yearly 7% return on their money. MATH! You know.....like how a whole f#ikin state...say like Illinois for instance can have a 50% underfunded state pension fund for all of its state employees with ZERO interest rates and CONtinue to pretend there's a mathematical solution. Maybe 2X2 = 67million.... You can get to parity quickly with that math. 




ALERT: 44-Year Market Veteran Says Retail Panic Selling Now Taking Place In Gold & Silver Markets!



Bitcoin Battered Below $2000, Ether Tumbles As August 1st Scaling Deadline Looms












US Restaurant Industry Stuck In Worst Collapse Since 2009


Who in the HELL is going to buy these massive amounts of new cars and trucks that have been manufactured at 50K a pop. We've given every fool that can fog a mirror a new vehicle and we've reached the end of the greatest fool. So now we're back dooring QE into the car companies so they can discount new trucks to the tune of 15K a truck and STILL no suckers are out there. 

We're trying to further disrupt the Middle East in Yemen, Qatar, Syria, and Iran but we can't even get Oil up a penny with each new war headline. 

Hell.....Erdogan to lead a tank division into Italy and oil would probably drop even further. ITS CALLED STAGFLATION! "THEY" have killed growth. "THEY" have pushed so much debt on the masses, that no one can buy another refrigerator unless they're in the minority that have benefitted from the ponzi.


No More "Cash On The Sidelines": Private Client Cash Levels Drop To Record Low... by Allistair Mcleod......well well how you ask...They'll print money.



World Stocks Hit Record High For 10th Consecutive Day In "No-Vol Nirvana"


So what can they do? They can bullshit us. Oh wait. The proper terminology is "to jawbone us". You know....tell us its so good that we're gonna raise rates. Just one problem. The longer end of the yield curve KEEPS DROPPING.  THERE IS NO YIELD and their will be no yield. NOT until the CONfidence in the dollar breaks. AND if that happens you are going to go to hell really fast. Oh you'll be happy that you were finally proven right. You'll say I told you it was a ponzi. BUT your way of life is going to turn to pure hell. It will be where the VELOCITY of MONEY finally begins. It will initially be Stagflation (now) that worsens. ie. higher inflation with even worse wage growth and jobs. Then it will become higher wages.....that DON'T keep up with inflation. AND then the tail chasing starts. Wages start chasing inflating essentials with shitty job growth and decaying infrastructure. Social malaise worsens and evolves into social angst and breakdown.

Government promises become an increasing crescendo of giveaways and the Fed panics and fires QE salvos into the swarm of beggars. Pretty soon it happens. Its out of CONtrol. No one could have seen it happen. Its Venezuela on steroids. Its socialism. No wait. Its Fascism. Wait....its a hybrid. Its a fascist, socialized, nightmare. Its malinvestment on steroids. And finally the piper will be paid.