Monday, January 30, 2012


"I am not here to cheer you up. The situation is about as serious and difficult as I’ve experienced in my career,” Soros tells Newsweek. “We are facing an extremely difficult time, comparable in many ways to the 1930s, the Great Depression. We are facing now a general retrenchment in the developed world, which threatens to put us in a decade of more stagnation, or worse. The best-case scenario is a deflationary environment. The worst-case scenario is a collapse of the financial system.”

"As anger rises, riots on the streets of American cities are inevitable. “Yes, yes, yes,” he says. The response to the unrest could be more damaging than the violence itself. “It will be an excuse for cracking down and using strong-arm tactics to maintain law and order, which, carried to an extreme, could bring about a repressive political system, a society where individual liberty is much more constrained, which would be a break with the tradition of the United States.”

Should you listen to this voice? After all it is George Soros, the subject of many a conspircy theory. So of course take it for what its worth. I happen to believe that he is genuine with this prediction. We are entering an incredibly dangerous period in not only this nation but the entire global  system. A centrally  controlled ponzi that was constructed to benefit a power base designed for control of the world monetary system created a disparate wealth gap that is coming back to haunt them. Tremendous growth and technological developments propelled many nations forward over the past century but the last two decades saw a period of accelerating malinvestment in many developed nations. Instead of the newly created central bank fiat flowing into the hands of the most capable entrepreneurs and flowed into the hands of bloated mega-corporations and mega-banks. These hands were engaged in a systematic rape of the world's economic system. They were the worst form of  parasites....ones that KILLED their host.  As these mega-parasites grew in size and powere they continued to exert increasing control of the governmental levers that were designed to restrict their power and control to the point that THEY  were actually pulling the levers of government....even establishing their own bankers as the presidents of sovereign nations without even an election. 

A nation's government that has lost the confidence of its people will not survive. Arguing for continuation of the current crony capitalism has reached the state of absurdity. To compare this current state of affairs to free market capitalism is laughable. If you want to make that argument then by all means go ahead, but I suggest you go back and study WHY the first settlers that arrived on our shores on the Mayflower came. WHAT the system was that they left and what was being done to them. Refresh your history lesson and then note how history repeats.  WATCH THE VIDEO BELOW EMERGENCY


  1. Always enjoy your commentary on the articles I read. Interesting year ahead. And thanks for the charts.

  2. Jim Sinclair video above is just amazing and it TOTALLY makes sense.......this should create a quite a about a moral hazard!!!!!!!!!

  3. The "breaking news" is above posted video with Jim Sinclair video

    Spain's fourth-largest airline Spanair has collapsed, leaving more than 20,000 passengers stranded across Europe and Africa.
    The Barcelona-based firm stopped operating on Friday and more than 200 flights were abruptly cancelled.
    The Spanish government is taking legal action and said Spanair could be fined 9m euros (£7.6m; $11.9m) over the collapse.In 2010, Spanair reported an operating loss of 115m euros.

    thanks kli for video-germans are not liking this chinese commodity hoarders...

  5. I listened to the interview. Very interesting and I suspect Sinclair will be right. I once read somewhere that the Credit Default Swaps will never be allowed to trigger.

    NKTR's chart looks good. Looks like a bullish cross will occur soon.

    For those of you that may have read my piece about Kodak several weeks ago and its pending bankrupcy (they have declared it), my sister's last day working there is today. Her retirement starts tomorrow,...she's had enough.

  6. I like YCS here added to my position

  7. Good video. Everybody needs to find out that info.

  8. Replies
    1. all of these leveraged etfs degrade......I am playing YCS for a break on the yen baseline just like the EURO did several months ago when it played out in a descending wedge...look at the three year on the yen..hehhehehehe oh well I'll roll the dice.....btw the decay on YCS is manageable NOT like DTO

  9. listen to the ned podcast

  10. good read on Iran-Euro sanctions.

  11. one more must read...take away from what you want..but Richard Koo spells it out well..Kli has been on it too...deflation, money printing is only way out of this deflationary balance sheet recession...

    warning PDF

  12. My concern is that what's bullish for gold and equities should be bullish for oil as well.. If we're to enact policies that send the oil price upwards, what effect will that have on foreign policy options? This Greece situation is old news, anyone paying attention has known for a long time that Greece's budget is a lost cause, aren't the powers tying their own hands if oil is going to rise even without an attack on Iran, or as seems increasingly more likely, Syria? Hard to imagine equities are going to fare well if oil becomes a juggernaut.. Seems to me a market/commodity crash would be beneficial if heading into a war, soften the blow of the oil spike etc. The U.S. banks could have dumped the CDS off on some other suckers a long time ago if they wanted to, couldn't they? I'm not sure I have a point here but something just seems off..