Sunday, May 20, 2012

TO THE MATTRESS!

Everywhere an investor looks now there is dissonance. Europe is in a state of disarray and the Fed is frantically, digitally printing to keep the entire system from imploding. Cognitive dissonance is a weapon that can be very valuable to the casino owners and is used like a sledge hammer on the retail investor and many hedge funds. Many retail investors view all hedge funds equally but they are far from it. Just because you are a hedge fund operator doesn't mean your marbles aren't just as easy to take as the retail investor's. Right now the table is being run in anticipation of the Grand supercycle washout coming. This is a dramatic deflationary event that the Ponzi is trying to manage. The real question is HOW they manage it. Can they realistically deleverage an enormous world debt burden without the entire system imploding? I suppose you will find out very soon because that is exactly what they are trying to do and will have to accomplish.

The dissonance being felt by investors is exactly the problem for the CONfidence game. Investors and retail peeps know that to escape the ravages of deflation we must develop a level of velocity of money and this can only be accomplished by CONfidence and they are losing the game rapidly as evidenced by the bank runs starting up in the Eurozone. This is key! Bank runs are form of voting by the peeps AND by all investors. This is NOT possible to stifle once it begins. In fact, the more intervention and attempts to allay the dissonance in the peeps only tends to fan the flames of panic by calling more attention to the problem. Its the ultimate Catch 22 for bankers. It will be the new battle cry for this stage of the Grand Supercycle...."TO THE MATTRESS".

There will be more and new battle cries coming in the next stages but we are in the Mattress Stage now. Watch how it develops and watch what the effect on PMs is. gl

33 comments:

  1. I'm doing a cash-in refi and going to put the $400 a month I save straight into the mattress.

    Well, the mattress plus a little more gold and silver from time to time.

    Thank you Zimbabwe Ben! Old people are eating Alpo so homeowners with equity can have a little more monthly mattress cash!

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  2. In certain circles of the Italian populace “going to the mattresses” has another meaning and it appears that some of the common folk are doing just that………

    http://www.zerohedge.com/news/guest-post-italy-and-great-tax-revolt

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  3. It's interesting how people of the past use to negotiate and do business.
    click here

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  4. from ZH..... When it comes to clear, concise, comprehensive forecasts of the future, nothing beats Art Cashin... even when his crystal ball is admitted a little cloudy.

    From UBS Financial Services

    A Cloudy Crystal Ball - Since this is the last “Comments” until after Memorial Day, a blurry look ahead may be in order. The battle for Greece (and Spain) will be fought daily at the ATMs of their banks. A full-blown bank run would be an instant crisis. Egyptian elections (Wednesday & Thursday) may move markets. Markets heavily oversold and susceptible to a large, maybe massive, short squeeze. A central bank move in Europe, China or the U.S. could catch shorts flat-footed. That having been said, we have not yet seen capitulation, just thick dark gloom.
    And to think how many "pundits" out there believe that being paid by the world is indicative of wit or intelligence. All hail the pithyness of the Chairman of the fermentation committee.

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    1. duly noted.....long weekend ahead.......perfect time

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  5. OSIR confirming breakout on volume

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  6. gold and silver down but most miners r up. don't get it

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  7. Seems like someone was right on OSIR after all.....

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    1. It was Honestcreditguy who touted OSIR but he is taking a break from this jungle. He apologized for giving such a "bad" pick in OSIR but to be honest (no pun), his emphasis influenced me to pick up some longish dated out of the money options. So far, so good, so come back HCG. You've redeeemed yourself! LOL

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    2. I second that silver.......chuck was a brilliant and savvy technician......

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  8. money flow into miners continues. Remember as the bottom forms the shorts will have to cover so expect some significant volatility with another sharp correction to come for the shorts to exit. Before that comes we MAY get a nice move up here. Bottom needs to form.

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  9. http://www.zerohedge.com/news/chinese-buyers-defaulting-commodity-shipments-prices-plunge

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  10. As I said before, InTheMoneyStocks & Zachs Investments both calling for approx. 1320 low coming in spot, not sure what their call for silver, but imo would put it around $20-21 for spot silver.

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    1. That would mean that Ben takes his foot off the pedal for a long enough time to see the equities markets crash. I don't see it happening in an election year.

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  11. Made my first purchase of physical silver today. Bought from gainesville coin (thanks Kli). Small order, $500, it's a start.

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    1. Congratulations. Hope it's the first of many.

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  12. Very interesting post on the miners. Thanks for the update.
    http://humblestudent777.blogspot.com/ - by the way for those interested this is my friends site. He is very adept trader with original analysis that keeps students of the market plugged into potential moves. Highly recommend.

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  13. hey all..

    I am buying SSRI at 10.50 or so..

    this is not a day or swing trade....it is a buy and hold

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    Replies
    1. sooner or later paladin .....not too bad ...ssri is really moving

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  14. HUI gaining some ground. looks like it will close over 400. hopefully it can get over that 420 level

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  15. How come Gainesville Coins is charging $1,657.59 per ounce when the market price is $1,589.70 ??

    I understand that they have to make a profit to stay in business. But this mark-up seems to be way too high in my opinion.

    Does anyone know of a place where I can buy gold at close to the current market price?

    Thanks.

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    1. Jay shop around google on line coin dealers.....most charge similar or higher premiums......

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    2. Agreed, the prices you see on gainesville are the same prices you will find any where. Ebay, coin dealers, Apmex, whereever! The price of the physical is more than the paper price.

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    3. OOPS. I was looking at the "credit card price"

      The Bank Wire price is only $1,610.87 that's far more reasonable.

      They have a minimum $2000 limit for "bank wires" so maybe I'll just buy 2 ounces. Don't laugh. It's a start.

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  16. also jay check the different coins....usually buffalo gold coins has the least premiums and dont buy uncirculated

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  17. jay what was the 1 oz you were buying,,,

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    1. Palidan: I was looking to buy a couple of these:

      http://www.gainesvillecoins.com/products/160237/2012-1-oz-gold-bar-lunar-year-of-the-dragon.aspx

      It seems like thats the cheapest "per ounce" price on the website.

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    2. always buy the cheapest in bullion coins

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  18. gold up one buck most of my miners up 6% or better hmmmmm can you say decoupling

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  19. Silver down & pslv up a bit finally the premium is back. Had my first really good day in a while. I'm with you SilverIsKing, I cannot imagine they take the PMs down that far, but strange things are happening and I'm just reporting their targets. Will update if they change.

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  20. On vacation this week so not closely watching the action. Miners did well though today for sure. A retest may or may not happen, very hard to say. But looks like the worst may be over for now... Congrats on your physical purchase Jay, that's the smartest way to play this.

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