Wednesday, January 25, 2012


Today's FOMC statement unleashes the dogs of hell upon the dreaded enemy of all bankers.....deflation. Anyone that believed the world's economies are recovering surely has figured it out now. Just as in 2007 when Ben was asked directly regarding housing and the economy (stating he saw no problems on the horizon), today was another exclamation of just how serious the problem is about to become (not that it is good now). When the Money Printer in Chief tells you that interest rates will be held to zero until late 2014 extending his previous time line by a full year.....then you better wake up and smell the coffee. Hell is coming and it is happening right now. Ben declared war on deflation but more importantly he is telling you Europe is about to explode. Greece will default by 75% soon......This still will not be enough for their solvency.....that is just how bad the situation is. What the banker's realize is the moral hazard they have created with the hundreds of trillions of derivatives is a ticking time bomb of unpredictability in an unwind of a default in not only Greece but Italy or Spain etc debt. They are scared to death and Ben just told you. IT IS THAT BAD! 

The problems with moral hazard is the unpredictability of their repercussions. However today's statement has some moral hazards that are VERY predictable. First of all precious metals have now been given a green light to invest in now. It doesn't mean they are going straight to the promiseland but for the long term holders of a core it means that you can add on weakness now. It is now possible to look forward to new highs this year in PMs and perhaps in the miners. In fact holding onto fiat now has been declared null and void by Ben. He was even quizzed at his own press conference today regarding the impact that his ZIRP policy would have on savers and with only some stuttering and hesitation he stated the impact would be minimal.........SERIOUSLY! ....Do you really expect anyone with half a brain to swallow that Ben?  Imagine trying to make it on CDs of 200K total with 1% return if you are 75 years old living on only SS and your savings. He knows this and that is just how bad things are in the global banking situation. We are unraveling and you and I are playing craps on the deck of the Titanic while they are lowering the lifeboats. I'm still hoping my retirement accounts make it through but I give it less than 50-50....If my timeline is right I "should" make it through this summer. It's a gamble.

I hope most of you have made some arrangements if things get tough. Food and water are simple enough. I won't advocate guns unless you are very familiar with them. My better advice is to concentrate on relationships with family and friends. These unions are more important for your benefit and theirs. Enjoy all of this internet information but realize your time is finite on this mother enjoy it and help others.

I'll publish charts tonight. And don't forget google chrome as your browser if you are having trouble reading the comments or commenting......and please comment.

watch for a couple days of consolidation on many of these then lets see what happens


  1. Kli,

    Thanks for posting the AUQ chart again.

    On the news tonight they mentioned that Geithner will be "out of a job." Apparently, he stated that he already knows that Pres. Obama won't pick him next year. But, he said that even if picked, he would not accept because he wants to pursue "something else."

    You can't help but wonder if it is really Geithner that wants out, and told Obama that already. Then, when the poop hit the fan, he can simply say that he had everything going great when he left.

  2. kli give a look at wres i would like to know what you think

  3. WRES worth a throw on hand but not large and debt not too high......good institutional holding ...floats not too great.....chart looks ok for trade

  4. Market just hit 666 x 2, then took a nosedive...hehehe. Doncha love this big boys? Gettin' so predictable.

  5. NGSX .....biotech with low float....joes buyin...

  6. yeah nancy ....pure occult stuff hehehhehe

  7. 11:19a
    Bernanke to teach class on Fed at GW in March

    Acceptable notepads are:
    Savings book
    dollar bills
    CD certificates...

    Please leave notepads in trash can on the way out...

  8. Doc, Geithner will just go back to China when he's done. He's probably got enough stuffed away in his Swiss bank account to live like a king for 1000 years.

  9. This comment has been removed by the author.



    democrats and republicans, same shit, 2 different piles..

  12. Heheeeeeeee

    "democrats and republicans, same shit, 2 different piles.."

    Amen Brother.......


    Having trouble trusting this run up, other than chiting on savers for another year it's nothing but more of the same with Europe about to blow up when ever they run out of rumors....

    What to do, What to do

  13. Jay,

    I agree about Geithner. He has enough for himself and many future generations of Geithners.

    It just seems like he is ready to abandon ship. If things were so great, why not hang around 4 more years. He is young enough.

  14. this is just a MUST read folks

  15. "trust this run up"??? You NEVER trust anything in this market.....but we know the run is coming and we know they REALLY wanted to push these prices down hard over the last 8 I still trade around the edges of my core....but I am looking to add to my core on weakness and my core was HEAVY going into this latest run....we'll see what happens.....thats for sure

    1. "You NEVER trust anything in this market"

      Well then I don't feel bad for sitting on my hands, just haven't made anything yet this year !!!

  16. you guys remember this...I've been buying on the cheap...but its chinese stock so leery and DD

  17. Geithner wanted to quit last summer, but apparently a good fall guy is hard to come by so Obama won't let him. Timmy will probably be voting republican ;)

  18. Timmy was embarrassing to anyone of any experience in world affairs.....he provided a nice foil for his masters but even they found him ill suited for "secretary of treasury".....he had to go...besides he had served his purpose

  19. exactly morla just saw your post...

  20. This is how Crookamerica works

    Retired Chairman of the Federal Reserve Bank of Philadelphia Charles Pizzi will join the PHH Corp. (PHH: 11.67 -3.39%) board of directors Thursday.

    He replaces James Brinkley, who served on the board since 2005 and will retire in June 2012.

    "(Pizzi) is a highly regarded business leader who brings more than 30 years of experience to the PHH board of directors," said Chairman of the board Jim Egan said.

    The PHH mortgage bank closed $36.3 billion in home loans during the first nine months of 2011, up 19% from the same period the year before.

    But the company is struggling to repay its $423 million in corporate debt, leading to a downgrade from Standard & Poor's. Losses widened during the third quarter to $148 million from $8 million one year earlier

  21. The end of the human race will be that it will eventually die of civilization. - Ralph Waldo Emerson

    Civilization is a limitless multiplication of unnecessary necessities. - Mark Twain

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