Thursday, August 20, 2009


The war within our economic system rages with players engaged in a death struggle with our monetization......I cannot overemphasize how the following article defines the insane path we are on....I believe this is the issue that is responsible for the bizarre movements of the stock market ,gold , oil, commodities, all revolves around this is a piece.....

The foreign purchase declines from peak levels two years ago have fallen off a cliff, much like that of Acapulco. The image of a brave diver is also quite vivid, as risk is determined by the shifting water (liquidity) level. The United States credit markets are losing their legitimate liquidity and increasingly are turning to the desperate reckless alternative, namely the dreaded MONETIZATION. Mortgages in the United States must maintain funding from the USFed and USGovt by direct purchase, no longer a market action. There are mainly sellers. The corporations in the US must maintain funding from a more desperate means. See the Samurai Bonds offered in Japanese Yen denomination, the ones growing in popularity. My view is that a good slice of USGovt Treasury Bonds will be denominated in foreign currency routinely within one year, if the US$ system survives in its current form that long. The conclusion is clear from the messages, both graphic and statistical, that THE US$-BASED BONDS OF ALL TYPES WILL RELY ON DIRECT MONETIZATION VERY SOON OR IMMEDIATELY


  1. your cock is running out of juice!

  2. Keep up your good work!

  3. burgerboy......i am 56yo of course it is......ehehhe...but what is your dysfunction other than degenerative brain syndrome...

  4. Kliguy,

    Many blogs and their followers think 1030-1040 will be the top, and then P3 will begin in mid-September. I feel skeptical. On the one hand, there are so many severe problems that a crash and years-long decline could happen any day. But on the other hand, U.S. and world markets and economies continue to receive unprecendented levels of intervention to prop them up. Are we to believe that this 5-month super-strong rally is going to suddenly collapse simply because Elliott Wave Theory says the wave count and the duration of the rally dictate that it's time for P3 to begin? Seems too simplistic.

    So, all things considered, when do you personally think a severe decline begins, from what height, to what depth, over what duration.

    I value your opinion because you respect EWT, but you also seem to be more independent of it.

  5. I am skeptical also......without a black swan I feel the top of P2 may be a 50 fib or 62 fib which would place us as high as 1225 about...roughly a 100% move off the bottom which as my pal joe has pointed out DID have precedence in the 74 will we do that again....WTFKs but we may get a manufactured quicky P3 but I just don't feel it..why would they with the steps they have taken so far...Joe is a math nut and has crunched every number he can and uses his own algos and variables ...(Kress disciple)..and he keeps coming up with end of out.....could se a big fake out move down suck in massive shorts and slaughter them like lemmings.....anyway I won't be joining that party....I will look to buy some auy gg ssri at that USD I will continue to warn you on the blog.....I think the call of P2 in september will be VERY dangerous...but I do expect a guess we could actually go to a P2 top in DEC... but none of it will affect my play......hehe ..i luv it...also tbt here looks good...but it also may get better

  6. PS to add to above ...JOE also believes P3 could be less severe than expected....his timeline for real shit hitting the fan is Kress 2012-2014 timeline......

  7. KLI: Dano has a great posting about the end of P2. He's shooting for 1051.

    It seems like everyone and their mother is screaming for a pullback mid-late September.

    I think P3 is going to be huge and not sure I agree with your target of 1225 for P2. The Chinese are agitated right now. The dollar is on thin ice. Heck, the American economy is on thin ice. 1225 seems extreme to me.

    I'm not a math wizard, and am still learning Elliott Waves, but I am one hell of a trader and just don't see how 1225 can be reached.

    My game plan for now is ride Citi to 6, bail mid Sept then go with FAZ for a while until we have some direction.

  8. Hello Kli..

    I appreciate your work.

    I am having some trouble with the concept of: dollar weak, market strong, dollar crash and P3.

    the dynamic between between the usd and the spx needs to shift.

    how would this happen?



  9. kli,

    Thanks for your detailed reply! I'll look further into your trades, Joe, Kress, and your blog to improve my sense of September and the fall (pun intended).

    First Anonymous above.

  10. USD dynamic IS complex but there are simple relationships that will exist....TO A here is the key ......if the short side on the dollar can get squeezed by GS as the market gets its needed sell off then you pick up miners it wont matter if its P3 or one big p2 head fake...USD may make 84 or more....but here is the key .....if P2 cranks for the max or for whatever reason the dollar begins to REALLY lose control and USD hits say71 or so.......LOOK OUT BELOW for the market....imo the market wherever it is may start breaking the relationship and moving down as the dollar breaks apart........commodities may be getting stronger though oil gas ...essentials.....severe stagflation....but overall market may begin to get in silver miners will be going to overdrive........jeeeze watta mess prices exploding......not gonna be pretty.......all while the economy and jobs weaken..I will post tomorrow on WHY the relationship between the printing press the fed GS and the market make this EW call a tough one

  11. What "great work" is everyone referring too Kliguy? You have been wrong much more than right and lots of people, upon taking your advice over the year, have lost their fortunes. Not your fault I know, just an effect of having a blog and followers. To think you have been pushing SRS for so long...have you seen it lately?

  12. Have you read my blog in months....hehe...."anon"......SRS was a DISASTER....and was dumped months ago......havent talked about it for months see archives.....but then you knew this market is contrived and i hope you are profiting "anon"

  13. Also in KLI's defense, he did call for 999 SPX and then revised it to 1225. In fact there was a while there when he was doing the Daily Numbers that he was hitting the SPX within a dollar or 2.

    Some of the other ETFs and gold stocks he has pushed have done well.

    Like the commentary in the upper left says, "Always do your own due diligence"

    Here is a success story from a regular blog reader: Two weeks ago, I bought Citi stock at $4.14 it promptly tanked to $3.58 the day after I bought it. KLI was still claiming a SPX of 1100 or maybe even 1225. He said it with such conviction too. He also swore up and down that P2 was still going strong. I gritted my teeth and stayed in. As of this posting, the SPX is back on the rise and Citi is at $4.77