Wednesday, July 13, 2011

WALKING THE FINE LINE


What does Ben have to do to maintain a Ponzi scheme? Everyday he has to check to see which country just blew up due to his imported stagflation in food and essential prices. Especially food. In many countries half of the family income goes to food. There is no room to spare if the price of a a staple like rice shoots up 50%. Instantaneously they are unable to support their family with the necessary calories. They aren't provided with food stamps in many of these countries. Without a currency the vendors will simply not deliver. Pressures on the government to provide basic sustinence without having a printing press will become unmanageable. A feedback cycle of political unrest with public disatisfaction will acccelerate. Ben knows this is his limiting factor with his monetization and he knows that his game is playing out into the late innings now.

Look at gold and silver today. They are blinking yellow for the game. The interesting numbers are on oil. Notice that the input costs of oil are devastating for all aspects of the costs of essentials. So as much as the ponzimasters hate gold and silver exposing their flanks....oil gives them the actual knife to the throat. If they can tip toe through the oil spike and levitate the market (CONfidence) then they can fulfill keeping the game alive this year until bonus season is achieved. Many posters on message boards gleefully proclaim they want to see the market collapse to virtually zero. You had better hope this entire game does not crash. Reality will be a much more sober experience than you can imagine. Most of you are not prepared for the reality this would impose. gl



37 comments:

  1. Kli,

    thanks...but your miner calls are much more easier on the heart :)

    GENE is something to watch tomorrow...the stock has not traded in 2 days because of halt...tomm. opens back up...up or down it should have lots of volume...

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  2. miners should have some more run here.....but as always.....take profit when given

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  3. general bernanke talking about easing...goosing the market

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  4. Ben looks like he has pooo in his pantss

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  5. There is an article today at Phil's Stock World that may be of interest. It is written by Michael Synder of Economic Collapse. The title: "40 Facts That Prove The Working Class Is Being Systematically Wiped Out". He believes jobs/economy will continue to worsen.
    The material may be redundant to regular readers, but if you wish to read, just go to "Phil's Stock World"--it is the second article listed.

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  6. Yes Doc......there is a sacrifice that must occur for the imbalance to be maintained. Most in america have been indoctrinated by the Corporate controlled media and pols to believe they are participating in "free markets"......hehehhehehhee

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  7. Doc,

    Global arbitrage by corporations..sink the middle class...making them serfs...just lost a good friend who was great worker, multi-talented...living in his camper, unemployed, depressed, beat up, something caught fire, it was his home so he went in to put it out and dead at 48....today there is no place for someone to rebuild a new life....

    the pigmen are evil, greed sleeps with the devil...

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  8. Yes chuck......seeing more of this everyday.....when it really gets rolling we will all begin to feel it......THEN and only then will action be taken to clean the mess up.....too late for many already

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  9. "general bernanke talking about easing...goosing the market "

    It hasnt even been a month since QE2 ended. simply amazing, haha

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  10. Kli,

    very impressive move from EGO, nice call from you to hold a core. props again. i will say, nice call on how gold would react even with the slightest whisper of QE3. honestly, i didnt expect such early talk about QE3.

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  11. I remember when I was a kid, my father used to travel to Brazil quite often. I asked him "What's it like there dad?" He said "There is a very small upper class and a huge lower class with nothing in between."

    I never thought I'd see the same thing happen to America. Put Ben on trial for treason.

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  12. Glad I didn't puke up my pslv two weeks ago, let half go for a nice profit today but regretting puking up ego at the same time...... This is one member that's not looking toward for the complete melt down! Hell they're stealing copper gutters and leaders, air-conditioning compressors ect. for scrap can't imagine what will go on once the poop hits the fan!

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  13. I'm fine with letting the market float. Kicking the bucket down the road will just make it worse for your kids Tom.

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  14. Jay,

    I think that is part of the problem. People don't yet realize that it CAN happen in America.
    I have been reading about and watching the gradual destruction of the world for awhile now, and I still sit here is a numb state of disbelief.
    Here is America, we are all perched on an island, and the sand is slowly being washed away. When will enough of us wake up & do something.

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  15. Chuck,
    AEN just hit the 50 and is on the move...nice chart read on OPXA

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  16. Jay,

    I think you misunderstood me I do realize the no matter what we are screwed never mind my kids...... if the whole gig goes to hell all at once very few people are prepared for what is in store. If the JIT structure breaks down which it will holy smokers you will need a shotgun just to go to the local grocery store if there is any thing left to buy assuming you can get to your cash........ A slow glide to our ultimate destination would be my preference rather then falling off the cliff, I suppose either way we are on our way.........

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  17. rurrroh......they just hit Mumbai....big blasts...not good ....that area could go nuclear with Pakistan and India.

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  18. CHUCK,
    Did you move your portfolio into the BIO sector....Hmmmmm interesting...

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  19. Hey Kli,

    I closed all my positions in the miners and PSLV. Made enough profit to buy the high security safe I will be using to store my physical silver. gold, guns, and ammo. I'm done with the casino and am going to settle into accumulating physical now and making the house more efficient, and enjoying life as we know it now. No one ever went broke taking a profit ;). Thanks for your tips on which miners to choose and when to get in. It has taken me a long time to learn to fight the fear and the greed that can take over and destroy your chances of actually making any money in this market. I am ready to relax for a while. Good luck to the rest of you. Just remember, life is short, and life as we know it now, well probably even shorter.

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  20. "rurrroh......they just hit Mumbai....big blasts...not good ....that area could go nuclear with Pakistan and India. "

    Kli,

    was looking at DTO again, any thoughts on oil? news like the crap above makes the trade very difficult in the sense more unstability in that sandbox could make oil rise. any thoughts?

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  21. Wilks.....great trade and good choices....please remain on the comments.....Playing this game is not worth it for most.....your comments about your observations and your area would be greatly appreciated......gl

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  22. DTO IS very dangerous because of this type of dislocation. My guess is they go after margins on commods soon.....but don't buy DTO unless oil crosses 101.....

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  23. Will do Kli. Thanks again brother.

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  24. Kli,

    thanks, as always , i appreciate your insights on the mkt.

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  25. congraats to all that played this swing....if you have taken profit here i can't blame you....i gotz a smalllll core now ....and will trade it out.....mostly cash and some euo few others.

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  26. Still holding my miners, cef, phys and pslv am I crazy? Moody's just put U.S. AAA rating on review, oh my.

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  27. $HUI should pop 576 tomorrow then pull back for a breather and a retest of the RS50......ie don't be surprised to catch some pullback in your miners .......610 is within reach and then a new high sometime in the next two weeks.....other than a trade I won't be holding any large ammounts here overnight. I accumulated my core at the bottom of the channel and I've distributed my shares for the momo traders......i sleep better. Still in PSLV and PHYS too. NO ANV NO SLW no AG.....waaaa.....let um run.....buy and trade on pullbacks

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  28. I didn't really grab any of the miners for this run. I was expecting a market decline after the 4th that we didn't get. I had a small SLV short that I quickly stopped out of. Sold my a few miners for a profit last week. This market confuses me. I keep thinking that the market shouldn't be up and miners would go down with the market. I shorted the SP500 last week and closed it out today for a gain.
    Kli was right when he wrote that "they didn't want us in this trade" as I am pretty much not in it. To bad this move couldn't have been 4 weeks ago. shrug....

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  29. The moodys rating call is so funny coming from the chumps that rated MBS at AAA that you couldn't use for toilet paper in Mexico...

    Brian, I'm heavily into beaten up bios...looking for anything that is 60-75% down and then taking a deeper look at fundamentals and volume...

    Even took a stab at Arna...better here than at 8....

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  30. Oh, guys I thought I was responsible for the big runup in silver since I sold 1/2 exk...just in case you missed it, this is fabulous: http://www.youtube.com/watch?v=2NJnL10vZ1Y&feature=player_embedded GB Ron Paul..."if gold isn't money, why do the Central Banks hold it" hehehe...

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  31. Stay around Wilks, good to see ya. Large hail storm hit yesterday locally in less than 30 minutes, significant 100 years damage. Hail was a foot deep in some spots. Basements flooded and windows broken. Only reason I mentioned this is to also stress tests you situation with Mother Nature's Wrath.

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  32. Now Obama threatens Social Security even though there's still a whole trust fund yet to deplete without affecting "total debt". Anyone hoping he wasn't "just another politician" is in for a disappointment, his SS comments were outright fearmongering.

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  33. Morla, i hope ypu realize that there is NO social security trust fund. The coffers are empty and all that's in there are promises to fill it up at some point --- but to fill it, they need to raise mone with the public (i.e. Sell gov debt) ON TOP of all the debt issuance that's already going on. Again, there is no social security trust fund and the word 'fund' is entirely misleading.

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  34. Where the validity of Obama's threat is concerned, there is a trust fund. They can continue sending out SS checks without disturbing the debt limit, by simply transferring the IOUs from "Intragovernmental holdings" to the national debt. Basically, depletion of the trust fund doesn't count as new debt because we already owe it to ourselves.

    SS has serious problems in the intermediate and long terms, but other than the cost of putting the checks in the mail SS is easily funded for at least a few years.

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  35. Morla - you are saying If I transfer debt from Credit Card A to Credit Card B I have created $s to pay my bills? I am a simple country boy, but that doesn't compute to me.

    If they send out SS checks then that is a disbursement of $s out and it doesn't matter which Credit Card they put it on and the total Credit Card debt goes up.

    Fact is though that payroll taxes for FICA should cover a large part on any SS disbursement. So I say let Barry not send out SS, military, etc checks. A little fear is a good thing for people. They need to evaluate their finances and ability to survive without those government payments anyway. It will help prepare them for the future challenges. It is time to call Barry's bluff and send him to bed without supper.

    If they do that (not send out SS checks) then they need to do it with former Federal worker pensions, pay for the President, congress and all Federal workers. Let's share the pain. If these people in Washington don't get paid it may focus their minds.

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