Sunday, December 23, 2012


Gravity....aint it a bitch!
Assuming that gravity still is nature's law then one can also assume that defying gravity is a delusion of some very powerful Central Bankers. The collision of reality and the current fiscal pathway of monetization will ultimately create an economic and social explosion of epic proportions. Until then we will maintain an illusory flight path that never has to come down and land. Perpetual motion finally realized in an "economic sense" that is. Just as the counterintuitive trade in gold since Ben announced QE 3 and 4. Make NO mistake this death defying high wire act is just act. As discussed previously there is a problem that is brewing below all of the smoke and mirrors. Simply put, once you start to fall gravity takes over and the descent accelerates according to nature's law. Ben knows this very well. Never in the history of economics has the world faced a global collapse of this nature. Even the Great Depression did not have the structural, monetary/debt issues the world faces today. Of course many of you are looking at the current situation thinking that just maybe the Central Bankers could pull it off. In some ways, I do too, but its unfortunately not going to happen. CONfidence is ebbing everyday and many of the current machinations are intended to keep th CONfidence meter from pushing the game over the "cliff". After all in economics a fiat/paper system that is literally backed by nothing tangible has ONLY CONfidence holding it up against nature's gravity.

I believe that we are very near an inflection point and it will generate a surprise event that catches many investors by surprise. Levitating the equity market to help retain CONfidence has started to fail badly. Even the CNBS pundits seem perplexed as earnings continue to decline and the market seems to rally against all fundamentals. Gloom continues in the PM and PM equity market which gives me some hope the beatdown is nearing an end but it has little effect on my strategy of just holding here.

Of course we can descend further in the PM prices since paper is still controlled by the markets.....but they don't control the bullion and therein lies their achilles heal. Soon the holiday season will be over and money will be rolling out of last years winners and into the next big sector. Just day we will wake up on a Monday and everything will change in this all



  2. The West continues to hold onto the notion if you control the debt and the printing presses you control the collaterized assets, like land and commodities. The East realizes this Achilles Heel, so they allow the West to print more and more and disgourge themselves of PM while they accumulate and restrict export of rare earths.

    Possessions is 9/10, so which would a sovereign want a hoard of hard assets in their borders or a hoard of IOUs. The end game has always been debt repudiation, it's just a matter of of when and how. All the Western debt is essentially worthless just a matter of when the music stops and the system resets.

    Physical silver will explode since it is critical in virtually every facet of modern electronics, clean water and medical.

    1. Most peeps are not in this trade Red. Just because we talk about it many of us assume that physical is held by 5%(16million) or 10% (30million) etc...Americans.......but it is NOT.....its held by less than 2% of Americans. Silver is indeed the achilles heal of the game.....

  3. hey all.....go with me on this..thinking

    PS.....happy the dinner on
    X-mass I had 4 people I find I have 18 people to show up That I have to pay for....a is first class in Houston TX the place that it is at.

    most of the people are on fixed income..

    this is a treat for then.....what the hell..

    all for one and one for all...LOL

    the Japan thing is a worry

    if the yen goes down then the PPI goes up......prices paid goes up

    they can not pass the cost along..

    this is a squeeze on profits

    the only place is labor...high unemployment

    catch 22

    1. atta boy Paladin.....just remember when the music stops and the room gets quiet and dark you'll look at days like this and the warmth and light will start to lead you forward

  4. Merry Chriatmas all from me.

    Merry Cliffmess from Obama and congress.

  5. Cooking tonight for 35 tomorrow busy, busy, busy hehehehe..... What the hell if ya ain't got family what do you really have anyway!! Gonna be a hoot!

    Wishing you all a very Merry Christmas and a song to keep in your heart all year long :)

  6. Merry X-mas.....working all day tomorrow and heading To the coast the day after Xmas hope to post soon

  7. Merry Christmas everyone.
    It is a white Christmas up here and supposed to stay cold all week.

    35 guests Tom? That a bunch. Just 11 coming to my house. Spiral ham, scalloped potatoes (made by yours truly), corn, and numerous of other items on the menu.

  8. Merry Christmas everyone. Thank you Kli and all you guys.