Sunday, March 11, 2012

PLAYIN' IN THE BIG CASINO

Look at it this way....If you are still in this game then you are addicted. This is the most dangerous casino ever invented and staying at the game can become very hazardous to your bank account. For that matter your bank account can be very hazardous to your economic health. So perhaps the casino provides an equal hazard to the cash alternative. Of course that's the game for the PTB. If they can't get you out of your fear then they have to get you out of your cash. Velocity of money is a necessity for the PTB to get the real economy growing......at least in their minds. Of course if you have read this blog over the past three years then you know that structural unemployment collapses cannot be fixed by monetary policy alone. So why do it? For one thing the Fed really doesn't have any other real alternatives. They can only print money and suppress interest rates in an effort to force people into risk assets. Simply stated the debt of the governments MUST be monetized or a liquidity collapse occurs....therefore mathematics dictate continued and unabated Quantitative Easing. Without QE we have an absolute collapse. Fear and confidence remain firmly entrenched and expect the battle to continue with a continued massive printing. It will not stop and it cannot stop. Its the ultimate catch 22. Play the game but you  are much better off in the physical metals. 



28 comments:

  1. Ok, I'm an addict. Heard a former head of a WS derivatives desk speak on Thurs. Asked with end of Operation Twist will qe continue. He answered emphatically yes, tremendous pressure to continue. His opening remark was there will be no reform until lobbyists go. GL w/that! He was in 9/11 (Building 1) and it changed his life, he left WS, started a boutique inv. banking bus. raising money for not-for-profits. Very dynamic guy, sooo smart & so fast-talking it was hard to keep up. Enough oil in OK, TX and AK to last us at least 200 yrs. The problem is refineries shutting down. Only equity rec. was F. Said to keep cash in local banks. I was very surprised at how much we agreed upon. If it weren't for you, kli I wouldn't have had a clue what he was talking about! You da best.

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  2. Exactly. Diversify across cash, stocks, PMs, food, guns & ammo, and you'll be far better off than most in any situation.

    I wouldn't touch a long bond with a 10-foot pole though.

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  3. thnx gang.....just remember though this could be an overnite event with an initial dollar devaluation event of 25% or greater..I don't expect this for at least a year but those type of events will continue to occur.....so as Santa says expect the unexpected and HOLD ON

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  4. CNBC having a constant pump on gold now.....may be getting ready to bring it up near term for the 2000 plus touch.....you know what happens next.....hehhehehhee....wash rinse repeat

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  5. http://www.reuters.com/article/2012/03/12/silveerstandard-idUSL4E8EC4DN20120312?feedType=RSS&feedName=marketsNews&rpc=43

    this will be a monster stock

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  6. Forgot to mention, he said the gov't. own $3 Trillion in equities. And, you can't win ag. the bots (he called them machines for his audience). Gotta chart for ssri? Looking for a bottom. Thx.

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  7. http://www.reuters.com/article/2012/03/10/pennsylvania-harrisburg-idUSL2E8E9DMS20120310

    and chart coming up for ssri sista

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  8. Phil Davis pointed out today that the Feds are selling 35B in 3 year notes today, 21B in 10 year notes tomorrow, and 13B in 30 year notes on Wed. So maybe they are trying to scare people into bond purchases.

    He also wrote: "Buying equities in a Federally funded Bot-propped rally is no different than participating in an obvious Ponzi scheme."

    Looks like the PM's are getting beaten up so far today. More scare tactics??

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  9. good commentary doc.........and yes just cleaning out the PM trade .....mopping up newbie longs trying to load.....

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  10. One more thing, USA cannot compete with factory wages as follows: China--$49/mo., India--$29/mo., Thailand--$18/mo. ::). He said they are installing nets around the 10-story factories in China due to the number of suicide attempts. This is really sad. I try and try to buy American. But mostly, it's food.

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  11. The price for SVM has been hanging around 7 dollars since about 10:30 this morning. Accumulating at this price??

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  12. What time is the Euro finance ministers' meeting? Anything is possible, it's opex week. Gotten so I rarely trade opex week except to buy low.

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  13. its all accumulation.....just a matter of "when" they let them go....right now its a parasitic cycle of fattening up on a beaten down sector

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  14. this is a process that is a game of attrition......don't "attrit"

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  15. http://www.zerohedge.com/news/ecb-masking-accelerating-deposit-flight-italy-and-spain

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  16. KLI: We need to end the Fed and either go back to the gold standard or come up with a new system.

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  17. End the Fed R U Kidding.......

    http://www.zerohedge.com/news/fed-take-propaganda-schoolroom-will-teach-k-8-12-students-about-constitutionality-fed

    Jezzz, you gotta go back to school!!


    If the your stock takes a dip, then you must not "attrit", hehehehe or something like that…..

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  18. you will never end the fed....it owns you...it owns virtually every nation now and most of the military including ours....they will crush ANY serious attempt to corral the money changers...Ben is only a functionary for the true power behind the fed......you are monitored constantly now so don't waste your energy.....after the blood spills from the protesters this summer then the detention camps start being filled....and the gold standard was always manipulated........owning physical gold will have value and you must be able to possess it......

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  19. Shut out the propaganda and clean up and fix anything that is broken while the money spends. Avoiding getting caught up in any action that will get you taken out during the purges of undesirables.

    Have avoided any paper trades since January. This is a slow frog boil in the paper arena.

    You cannot really end the fed; however the true power behind the fed can change through enlightenment or regicide.

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  20. "This is a slow frog boil"

    Ain't that the truth!!

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  21. From Red's point above:
    "Purge of the undesirables"

    You have to realize that one thing we do share in common with the "Power Elite" is this planet. Earth is the only planet we have. Is our planet in trouble with its ability to support human life?? I don't know,... we all have to ponder that on our own. Last Halloween, the "7 Billionth Human" was apparently born. Certainly, our planet has its limits and maybe the "Power Elite" realize this.

    As for the markets, this is OPEX week. The Keystone Speculator points out that the beginning of OPEX week is usually good. Also, the Retail Sales Numbers were apparently OK today. So, I think we could be up today and maybe tomorrow, but a crash has to occur eventually. Maybe Thursday/Friday or early next week??

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  22. Doc,

    They got the population plan too.....

    http://educate-yourself.org/nwo/nwopopcontrol.shtml

    They rule the World...

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  23. "shocking" beatdown on FOMC announcement...ehhehehehee......miners remain relatively strong.....

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  24. Just an amazing day.
    They are just forcing any new shorts to cover.
    Keystone posted that if the S&P got past 1380, it could go to 1420.
    I heard the banks pasted their Stress Tests, as if they were really going to announce that they failed.

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  25. yes doc agree with the 1400 overshoot

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