Thursday, November 15, 2012

DESPAIR

Images of despair and fear are rising faster than General Petraeus at a biography interview. Europe can no longer contain the economic damage with just bandaid monetary rumors and maneuvers. Its open wounds are beginning to ooze pus.....copious amounts of pus. The entire sordid mess called the Eurozone is starting to hemorrhage rapidly as it appears to be breaking apart at an ever accelerating rate. If the current demonstrations across Europe don't set off alarm bells with the pols and the cartel then you can begin heading to your bugout shelters soon. Hopefully another monetizing technique will be employed to slow the disintegration down but time is getting shorter and shorter. Middle East tensions provide some diversion for the peeps but unless we get all out war nothing short of an all out ECB printing frenzy will slow the fires of desparation burning across Europe. Maybe things aren't as bad in Germany, France, Brussels and other northern "states" but they are VERY aware of what has transpired in Spain, Italy, Greece, and Portugal and they know the contagion is coming to them soon. Its analogous to a leper at a nudist colony. You may want your fellow nudist to believe that you don't have the disease but it just not that easy to hide it anymore.The fear is growing and the numbers now on the streets are exploding. They know.
Rome yesterday
  We are well past the crossroads now. Printing will need to be expanded soon or a death spiral will rapidly develop. If the death spiral begins then the central planners will need to create a massive diversion. What that might be I'll leave up to you. If no diversion then blood on the streets will be the next step. That would be my first choice if I were in their place. It might succeed but it essentially will result in some type of marshal law across the Eurozone first. Once violence escalates in the streets then the police will respond with brutal force and impose internet/social media restrictions AND curfews. You can call it end days but it may serve to stabilize the collapse at least temporarily. Time is precious now so make sure to enjoy it everyday.

Paper beatdown is necessary now before the real fear begins and paper is exposed so spend your time accumulating.gl all


18 comments:

  1. Love your first sentence...thanks for the French taking no cash for PM purchases details...keep hoping against hope this doesn't happen here but things are falling in line rather rapidly. Babe Paula is a resident here (for 3 yrs.) so you can imagine the conversation. If I hear anything of substance (hehe), will post.

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  2. KLI: Will the central planners retain power after all the chaos or will we have a new breed of central planners?

    As ugly as this is...it sure is fascinating to watch.

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    1. They will retain power even if it means destroying half the world's population....and they can do that. They have been in power for centuries. They are NOT politician

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  3. Hello again.

    Whats your take on metal prices today? Is it wash, rinse, repeat? Looks like they take it down most mornings...And it rises back intaday. Do you think they will try to crash silver and gold prices to shake out timid holders prior to the ultimate collpase?

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    1. controlled accumulation/consolidation from the run up during the summer achieving an overbot status in miners....metal prices remain their biggest problem as the actual metal is being taken out of the CBs not to be returned...ie they will be ramping prices again soon......just a matter of when not if......they have control of the paper miner market now especially with the margin calls coming in on leveraged players.....gl

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    2. when it comes to physical its NOT where the price is today or tomorrow....it comes down to what happens when this house of cards collapses and the panic realization that all paper is at risk and backed by nothing not even the "rule of law"......that is the price that matters

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  4. What amazes me is how smart people that I respect are as blind as bats of whats happening around them. I'm in the medical device industry and watching alot of MDs walking around like zombies now that the election is over and they realize that they are fixing to get hammered on reimbursements, (as well as we are) but don't see the bigger picture of how the entire system is about to implode. Most people that I deal with have listened to me for the past 4 years asking "how can this situation resolve itself"? It's one big ponzi scheme, with no rule of law to prosecute when it collapses. It's a simple math problem.

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    1. Steve very true ....within many professions they are convinced they are voting for their OWN interests by the PTB....while refusing to speak to the broader issues that will implode the entire system. Most are just now starting to "consider" other possibilities but it is far too late to reverse the momentum. All of us bear some responsibility and unless you are able to look within yourself then you will have a hard time getting through to the other side. MDs are targets of the insurance industry and the hospital industry and they let that happen as they looked at themselves as individuals as they were divided and conquered by the above industries. Now access to health care is being taken from patients and transferred to nurse practitioners and physician assistants. Lawyers are another story but some similarities

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  5. Steve,

    I have tried warning my colleagues for years.
    But finally one of them said the other day, "You know, it doesn't seem to matter whether you have a Repub. or Dem. President". So, some are waking up.

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    1. Doc,

      Over the past 4 years, a couple of my good customers are some of the ones that got tired of hearing me talk about how it didn't matter who was in power, Rep or Dem. The fate of this debacle was unsolvable because of all of the unfunded liabilities. I also point out that healthcare has become one big bubble that's fixing to pop (along with everything else). Think about how much economic activity medicine has been and is responsible for...BIG MONEY for a lot of people, including my industry. Even without a collapse, this reeling in of healthcare expendatures is going to crush the local communities of every larger community in the USA.

      I dont know how old you are, but think about the financial explosion of medical professions that accelerated after medicare was enacted back in the mid 60's medicare and private insurance back then and all the way through the late 80's, was so generous that most people just didnt care about cost. Then DRGs and HMO's came into play in the 80's to try and curb things, but that didnt help, because the hospitals and insurance industry couldn't get the MDs to play along. I'm not picking on anyone in particular, but everyone in the medical profession and society has in some way contributed to this situation. But, who's to say it wasn't planned all along. The Cloward-Piven stratagy was advocating bankrupting/collapsing the entire system back in the same time frame when medicare was enacted...

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    2. Like anything else GREED killed the Golden Goose! As you pointed out the System until the late 80's, whatever your profession was, provider/supplier if you participated was like shooting fish in a barrel. The reimbursements and profit margins were obscene. The consumers of services were just as complicit, so long as it was free.... Never mind the out right fraud and abuse, defensive medicine ect... The system should have never removed the middleman from the equation "The Patient". The squeeze on all started in the late 90's, got out in 2000 was a small independent DME/Rehab supplier and glad I did... Have no idea what things look like now but I'm sure it ain't pretty and now we got what we got and it certainly is going to suck. Suppose no matter what The Piper always has to get paid.....

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    3. Medicare represented a big bucket of opportunity to wealth for a lot of different people within any given community in America. It was and still is like miners mining for gold. Go get a pick and make a hole in the medicare bucket, attach a bag and shake the bucket till the coins stop coming out. When Medicare patched that hole by changing the rules, you'd then you go to the other side of the bucket and make a new hole and start shaking that side. But the problem is too many people shook the bucket dry and the only thing left now is to pretend that the buckets still full by robbing from future generations. People talk about class and racial warfare. I wouldn't be surprised to see a revolution by the young against the old down the road. My son, who is 28 gave me the book Boomsday. Told me I needed to watch my back. haha.

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    4. Didn't do much Medicare work to much BS, was a Non-Participating Provider. We were very careful vetting our referral sources didn't was to get caught up in any Med Mill scams!!! Yeah we could have made more $$$ by my Participating but my partner and I liked to sleep at night! Bulk of revenue came from Comp cases fed to us by Case Managers even though the margins were less the work was consistent and more importantly by the time we received the case the medical necessity issues were settled! Plus it was far better for the cash flow!!!

      The Medicare system was stupid as it really was set up on an Honor System once you got your applications and licenses in line. There were MANY Vendors that followed the rules and even doing the right thing, if the referral source was not honorable they would get screwed on payment for non-medical necessity issues. However as with every thing in life there was Vendors that didn't and if you were cut from that mold you could pull tons of $$$$ from the system with out being caught! Maybe they made money but always looking over your shoulder in my opinion is no way to live life. It was only the real greedy ones that got caught and the funny thing about that is once they had you on the list they would let you run for about a year or two to really run up the bill and make for a better perp walk! In the mid 90's Medicare finally insisted on vendors having and inspecting your physical plant, prior to that they would send payment's to P.O. Boxes..... Duhhhhhh!!

      Anyway pulled this off the Market-Ticker since were on the subject of the Medical System going broke.... There are some things we can do to help ourselves.....

      http://www.market-ticker.org/akcs-www?post=213991

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  6. Steve

    It takes a long time to unwind a life time of beliefs and many won' t and for those that choose to seek the truth will have a difficult time confronting it. Cause it sucks!

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  7. interesting some outside reversals in many miners.....bullish engulfing candles.....lets hear from sheeps and chuck

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    1. I bought some miners and beat up bios...still might be one 20 pt handle down draft on spx...thinking Monday-Tues. will be the days if any....Tarp sale of 7-8 billion might cause some drainage monday and wednesday....but 37 billion less MBS on banks sheets this week so what will they do with it....

      Bought some DCTH at 1.09....damn that thing has collapsed....Liking ARNA, OSIR for next bull run...

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  8. http://www.reuters.com/article/2012/11/15/cme-margins-idUSL3E8MF6LY20121115

    looks like the comex is in trouble......one trader does not make an exchange

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  9. just have to post this SVM chart to show how they suckered in leveraged longs into the handle and broke their backs

    http://stockcharts.com/h-sc/ui?s=SVM&p=D&yr=0&mn=6&dy=0&id=p28150947436&a=242549376&listNum=1

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