Thursday, June 21, 2012

CONFIDENCE


We have lost CONfidence. Not just here but throughout the entire Developed world. This takes years to establish, nurture, keep.....but only a 2008 to lose. We are in a malaise that only nature is going to cure. Like most chronic conditions there will be years of pain before nature will repair the toxins that ravaged this system. And like most chronic conditions death may be the final benefit for those stricken. Bleak you say? Okay then answer this ....if you are a heroin addict and have lived the life of addiction, engaging in the heroin high and accompanying  malaise without feeling any pain but only euphoria then of course you do not ask the hard question of whether you should stop or not or whether you are doing something that is unethical or illegal or may ultimately kill you are create some unspeakable harm in your life. Did you ask yourself how you can work at your job until the age of 55 and retire with a salary even higher than you were making when you were 50? Did you ask how you could fight wars on multiple fronts with a Tax decrease? Did you ask how you could afford to build a military industrial complex the likes of which the World has never seen and Occupy 125 countries with 800 military bases? Or for that matter WHY??? For what reason could we possibly have? Did you ask how we spend 17% of our GDP on a medical system all of the rest of the world spends about 8% of their GDP. Now we have nurse practitioners and physician assistants providing primary medical care in offices and ERs and hospitals with patients never even seeing doctors. Its over. CONfidence is gone.....and it is not coming back.....not this decade at least. There is a day of reckoning coming soon... that I believe. Its unraveling first in Europe as planned and it will come here. Just look at the Dimon circus in front of Congress this week.  If that doesn't send chills up your spine how bad we've fallen then nothing does.

 I ran across a well written essay and just pulled this account from Spain last week. Here is just an excerpt.
However -- and although Spain is not Greece -- there is something different in this economic crisis that disturbs me: the deterioration of confidence in the democratic institutions that represent the powers of the State (Legislative, Executive, and Judicial).
We have horrific examples: the political parties finance themselves illegally -and with total impunity -- via generalized corruption in the real estate and banking sector; the conservative government has lost what little credibility it had as it is doing exactly the opposite of what it promised before the elections of November, 2011; judges are hyper politicized and partisan and rank the lowest in social esteem.
Grotesque and ridiculous situations take place: Carlos Divar, the president of the Supreme Court, has lost all prestige after his 22 trips, accompanied by an unknown "public official," (whom he appointed) to deluxe coastal hotels in Malaga and Cadiz (long weekends of Friday to Tuesday with poolside lunches and dinners dubbed "Carribbean weekends" by the press), all paid for by Spanish taxpayers. -Jose Martinez
Turkish air command preparing for Syria


52 comments:

  1. I only have 1 question KLI. When will Ben do QE3.

    I know you've said the printing is going on even now. But when will Ben make it official?

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  2. only when Ben gets the biggest bang for his buck......or if he is forced to by unforseen events. He may never call it QE......what interests me more is when is the next MAJOR intervention that is globally coordinated with China and Europe....before even that is announced watch the action in miners...they will be reacting before it comes.....but once it comes it will be like nitro fuel for miners

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  3. seasonally september and october should be the trigger

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  4. do not misinterpret me.....i would love to know the timing of the trade.....including the high and THE low........of course i do not and throw out bearish potentials too.......just look at the silver possibility above......i only know that they have to print and print even bigger.....or this thing collapses and I MEAN COLLAPSES BIG TIME

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  5. http://news.goldseek.com/GoldSeek/1340284260.php

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  6. Kli,

    The essay you posted could very easily been written about us, same chit going on here......

    I was surprised about the Bank downgrades yesterday, what's up with that? Did Moody's all of a sudden find Religion or is it giving Ben cover for a Big Print?

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    Replies
    1. Moody's move was all ordered and coordinated to come during the takedown

      Delete
  7. Terrific post Kli!
    Our political processes have become paralyzed, so nothing of any good gets done. People themselves have become so divided, that they can't agree upon anything. So, nature will show up some day to clean things up. It is sad that we see the problems, yet can't fix anything.

    My opinion is that at some point, there will be a coordinated action to pump the markets. Just when we think the central banks have nothing left, they will manage to pull something off. I suspect their power remains impressive. Since much of the trading is done by computers, they must have some way of forcing these markets higher eventually.

    Kli, do you think actual bullion is moving from West to East? I would think the West will try to hold onto the actual metal, even though the East may want it delivered.

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  8. Bullion is moving yes.........BUT the world has NO real clue how much bullion is controlled by family and its descendants that controlled the trade for centuries.....ask yourself ...why are central bankers buying gold now if it is such a ridiculous investment? yes gold is moving east but the real power still controls it......they do not like giving any of it away at these prices but they are in a bit of timing spot here

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    1. They are not giving away the privately held family gold. The stuff that is leaving East is the publicly held central bank and investor bullion, which also slowly disappeared into private vaults over the decades. Got Tungsten?

      On a bright note they will get to repeat history through an upcoming Ghenghis Khan, Conquistador or Fuhrer. Power will then just transfer at the top while the bottom suffers.

      The market action is just baiting right now, just need a few more excuses to implemented the next round of creative printing through December.

      Delete
  9. Augh ARNA plummeting at the open, did not time to put on my straddle :(

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    Replies
    1. Damn this is fun to watch, spreads going CRAZY. Some of these calls and puts are swinging 50% within a minute.

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    2. Got a few contracts at $13 for the price of the $14's last yesterday. Puts premium is way up now though so haven't bought that leg of the straddle yet. Hope we get a pop so I can.

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    3. what a classic bear raid..doesn't just happen in commodities...it makes me think that its going to fly next monday...heck if you got in at 9.25 this morning, you already made some nice change...

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    4. Yep I didn't time it perfectly, could've gotten by calls for about 30% cheaper if i'd timed it better but oh well. If i get a double outta this I'll be happy :)

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  10. I also want to repeat that I believe the miners will and already have begun a process of decoupling from the overall market....not everyday of course but when you go back in 8 months and look at the chart it will be apparent...we will see

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  11. http://kingworldnews.com/kingworldnews/Broadcast/Entries/2012/6/22_James_Turk_files/James%20Turk%206%3A22%3A2012.mp3

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  12. http://www.zerohedge.com/news/photos-fixed-greece

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  13. Hope everyone read Matt Taibii's article you posted...everything is rotten to the core, that's the problem. This is nothing new, it's just so in-your-face now. They don't even care that we know. Only Jeffrey Lacker (Richmond) dissented on the Twist extension, saying it doesn't help growth and will cause inflation. Ben Traynor now saying silver could hit $18!!!

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    Replies
    1. Sister, I read it in full. I have a feeling that this trial is just the tip of the iceberg. Note that Taibbi said many of the spectators were other lawyers from around the country. Apparently this scam was widespread.

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  14. I am waiting on silver. Building cash. I agree with sister above that the price will fall further.

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  15. Just be aware that "averaging in" on physical at least will prevent you from standing without any metal buy if you wake up and Ben's gone "all in" on you. Not trying to be a "bottom picker"......just saying at these levels averaging down does make sense

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    Replies
    1. BTW I am holding a hoard of fiat for the next levels

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  16. As silver made a new closing low and a for sure closing low 5th wave miners did not make new lows. A lot of support at $26 dollar area for silver....

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  17. Moody's downgrades a bunch of banks..... and the banks rally like hell the next day.....

    This is madness!

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  18. More charts -

    http://content.screencast.com/users/springheel_jack/folders/1206/media/4543a201-8d5a-45be-92c7-e54f4a6da1a5/120622%20Silver%20Daily%20Main%20Chart.png

    http://content.screencast.com/users/springheel_jack/folders/1206/media/af75558a-f673-4f48-89a6-3149a2c98440/120622%20GDX%20Daily%20Patterns.png

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  19. Cheap silver insurance are AGQ puts.

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  20. Played the "market" like a fiddle. I guarantee the moves do not reflect decisions of concious participants. Moodys was certainly knonw to quite a few in advance.

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  21. well every breakout pattern....flag triangle etc...invalidated.....hehehhehe....shake your azzes out that is the game.

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    Replies
    1. my point is that trading these is a crapshoot and I will stick with my hold and letum kill each other off......when they resume the uptrend I'll still be sitting

      Delete
  22. http://www.zerohedge.com/news/syria-shoots-down-nato-member-turkeys-military-f-4-jet

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    Replies
    1. Interesting that this happens right as Russia sends helicopters to Assad. Putin must be really pissed about oil dropping so rapidly.

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    2. maybe but you have to look at this from the point of view of a false flag and who gains the most from conflict....don't get too narrow on this chess game....its conflict that drives debt

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  23. Hubz--how far out are you agq puts? I cannot pull up your charts, do I need to join screencast in order to access them?

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    Replies
    1. I'm looking at August $30 puts but haven't bought yet. A couple dollar down move in silver should get AGQ there. Hoping I can get a double on my arna calls and get slv insurance for free :) Hmmm no you shouldn't have to join anything the links seem to be working for me :(

      Delete
  24. My respond won't work.
    I last bought some silver in the 27's.
    I going to try a risk waiting until the 25's.
    Agree with averaging in.

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  25. good place to buy......also SSRI 50 fib retrace of bottom move to 13.11 which was first resistance....so all still following rules of engagement.....may just be creating its new channel

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  26. It will be very interesting to see if the Commercial shorts are covering with this move.....that is my guess

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  27. kli,

    No trades for me...waiting for natty to come in and miners to go up...Have developed a thick skin against volitility. PM will go higher. The more that I see that PM is suppresed when everything else is hyped tells me I am in the right spot. Should shop for some physical today.

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    Replies
    1. agree sean...also i just traded out PSLV for AUMN......i like the AUMN pullback

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    2. I like the AUMN play. I was going to buy them earlier too.

      I still remember when they made the "Golden Minerals Announces Sale of Platosa Royalty for $2.4 Million and Engages Canaccord Genuity for the Sale of the Zacatecas Land PackageMarketwire(Thu, May 31)" announcement... it shot up like a rocket past $5

      The recent beat down seems too severe. If you bought this AM, you made a good profit your first day.

      Delete
  28. I'm up 12% on that ANTH trade yesterday...holding over weekend for news...

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    Replies
    1. uh oh...1.2 million shares traded a/h...might have some sushi and sapporo to celebrate even if I lose...cheers to all..enjoy the weekend...get out in nature..just boars out there, no pigmen usually..

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    2. Sushi and Sapporo, great meal. Enjoy! Hopefully ARNA will buy us quite a few of these next week ;)

      Delete
  29. Just about time to short LNKD again.... inch it up a little higher.

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  30. What do you know... Miners green ;) Hahaha what a fkn game.

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  31. Scalped some LNKD puts for a quick 4.5% while I was out getting lunch. It was a small position but still a great way to start the weekend. :)

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  32. New Greek finance minister hospitalized after fainting...

    ATHENS -- Incoming Greek finance minister Vassilis Rapanos was admitted to the hospital Friday, the government said, with unconfirmed reports saying the 65-year-old senior banker had fainted.



    Poor fellow took one look at the Greek books and fainted. I probably would have done the same.

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    Replies
    1. yeah.....poor guy saw his sweet pension vaporized........germans and greeks are going to be enemies big time when this plays out

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  33. http://www.zerohedge.com/news/guest-post-military-rolls-tanks-st-louis-streetsbut-why

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  34. GPL a different view.

    http://www.freestockcharts.com?emailChartID=0144d949-19c9-4503-b6fa-29d2e9575a48

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  35. Not sure why GPL is continually hammered...well I do actually...Maybe an aquisition target. Also GPL is highlighted on Motley fool and other sites so it is a target. Short interest not that high..

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