Thursday, January 12, 2012

THE BIG PICTURE



What a war. No...not the Iran Faux war. The war between the deflationary forces and Ben's inflationary counter-attack. By now most of you recognize that "the game" depends upon convincing the public that the USD has value and at the same time getting the peeps to increase their spending and therefore increase the VELOCITY of MONEY. The velocity of money requires CONfidence that what you buy or INVEST in will be worth more money down the road and that you have enough CONfidence that the economy will grow and that YOU will have a job a year from now. Businesses are scared and individuals are scared. They believe they are being lied to. They believe that the recovery is NOT going to last and that the very people and system that created this massive meltdown have done NOTHING to substantially fix it. They believe that they were promised a rose garden three years ago and a pile of manure instead was delivered. The same people that gave us this hell are still in charged. Instead of a Perp walk for the miscreants and a system overhaul for all of the malinvestment inflicted on this country we get a new Simon Cowell American Idol look alike. We get the National Defense Authorization Act preparing our new digs for the next decade or two. The land of the free and the home of the brave is suddenly being looked at as a charade by people that ten years ago would never have dreamed of questioning their countries direction or values. Instead they are watching their Secretary of Treasure overseas begging China to join in promoting another war in their OWN BACKYARD. Can you imagine China's response to Timmy behind closed doors today. We should be trying to repair this mess and create jobs instead we are beating the drums of war.

There appears to be a chosen pathway for the bankers out of this morass so do not deviate from YOUR investment strategy. THIS year will be the attempt to print and monetize the debt propping up this teetering finacial system. The best guess is they hold off with the big guns until May or June for greatest election impact and then announce an all out frontal assault to stave off deflationary collapse and default. The dollar will begin a drop at that point with the all out print and you will see the attempt at reinflation of equities etc. This will be very bullish for stock and precious metal....PMs will probably recover a month or two before the print so watch out if you don't have a core. We are in sketchy times so stack your physical and get out of paper that you cannot afford to lose. gl all.

COMMENTS PROBLEMS: I apologize for the comments problems and my IT department is working on it but understand my department is small and cannot fight Google or whomever likes to pull this chit. For those that can click on safety and delete browser then they can log on to site and post comments...stay with the program and comment... we'll figure out a way.... I added word verification that may allow you to comment.....gl also use google chrome as your engine










17 comments:

  1. JPM misses badly on investment banking....trading was terrible..... revenue overally misses.......should be good for market today heheheheh...just watch

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  2. Hard to read your columns when you've got a painting of naked warriors next to it.

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  3. No wonder those horses are smiling.

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  4. Shameless promotion is all......be prepared for the weekend surprise......tuesday may be fugly

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  5. KLI: What's your opinion on the French downgrade today? r we going to see some Euro printing this weekend?

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  6. they are printing everyday jay or we would collapse.....they will keep printing...until they dont///best timeline is printing ends the end of this year...CRASH TIME...just the cycles my friend.....QE announcement is held off for maximum benefit to reelect the prez...prolly earliest is May

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  7. Kli,

    Not sure if you are aware, but Blogger has not been working correctly. There is something from Blogger about an software upgrade which occurred around January 11th.

    I can read your blog, but when I click on comments, your site freezes or I get completely kicked off. I am not sure why it is working now.

    Perhaps Blogger is working on it. Thought you should know--perhaps that is why there are only a few comments today so far.

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  8. hopefully you can read these comments but we have been back up for couple of weeks and daily views are now up to almost 700...the posted monitor is close to that but the detailed stat monitor i have says about 700 with about a daily average of 40 countries...overall countries per week is close to over 80...most views are from usa GB Canada.... those of you that want a greater participation can link this blog to other sites you browse gl

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  9. Imagine the scapegoat they could slaughter if Iran closes the strait.. IMO getting them to do that is the next move.

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  10. Well my point is that an oil disruption could provide great cover for an economic meltdown that is totally Iran's fault and definitely not something we've been cultivating for decades.

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  11. As for "printing", understand that the "money" created during the bubble was FAKE, a great deal of printing is necessary just to tread water and legitimize money supply growth that has already occurred.

    That's not to say which way the scales will eventually tip, just that it's not quite so simple as "money printing = inflation" when we've just exited a time when money could be simply imagined into existence (and still can in some sectors thanks to government backstops).

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  12. Note:

    I got in no problem using Google Chrome.

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  13. http://www.zerohedge.com/contributed/us-government-funded-iranian-terrorist-group-which-%E2%80%9Cfound%E2%80%9D-documents-upon-which-warmonge

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