Sunday, April 7, 2013

THE NEW MIDDLE CLASS

Contrary to the herd mentality, upward mobility is dead in its tracks, and the real movement of the middle class is now in reverse. Hopeful reversal of the 4 year job collapse was given a death knell with Friday's Jobs report. This was not a one-off. In spite of constant manipulation and "adjustments" the managed recovery suffered a devastating body blow when the CNBS pundits announced the weak numbers. Gold responded with a move up signalling that the Fed's nonsense of "ending QE" was nothing more than jawboning. If you expect the dramatic collapse to occur tomorrow as the world implodes you may be surprised to find out that collapse may take longer than a weekend to occur.  

Up until now the developed nations have managed to play ball with one another and Central banks have managed the Supercycle debt collapse remarkably well at least from a headline perspective. NOT allowing the deflationary cleansing of malinvestment and the natural movement of assets into strong hands but perpetuating the malinvestment will only accentuate the crisis when it becomes full scale. 

Many pundits have tried to pick what type of scenario will force the  debt issue over the cliff....ranging from Eurozone collapse to Japan's  Bond binge. What the Central Bank up until now did NOT want to see was Gold sending a signal to the investment community that the global printing frenzy was destroying currencies. Holding gold in its place bought them an enormous amount of time but unfortunately as stated previously there has been NO repair made to the malinvestments that have created the structural impairments stifling real economic recovery. 

The productive element of any healthy country is its middle class. The engineers, the small business owners, the welders, the architects, the scientists, the carpenters, the doctors, software developers..... you get the picture.... This is the class that's going to be crushed as we head into the final deflationary washout and the following development of cost push inflation. Make no mistake this is what you are facing. There will be no nirvana as promised by the paper magicians. There is only a price to pay. You were given as clear a signal as they will give you on Friday....you had better listen. Their path was laid out in Cyprus and as their own operatives have said publicly THAT is the template they will follow....gl


52 comments:

  1. None other than Mr. Jim Cramer was on Meet the Press this morning, saying the Pres. Has Got To Do Something! He said energy will create jobs and (I added) it can be taxed! Voila!

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    1. Cramer is a pure actor.......all about free market capitalism until the market starts to turn down then the Gov or the Fed HAS TO DO SOMETHING!....NOW!

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  2. Mr Cramer the gov did do something it spent billions on failed green energy, billions on a war we should have not been envolved in. Billions on bailing out banks. If the gov would have let it all fail and mind our own business we would been in the beginnings of a boom by now. I stop watching Cramer 5 years ago afger his rant. He is an entertainer nothing more.

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  3. This comment has been removed by the author.

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  4. Exactly, just forgot to post "sarcasm"...GS has done quite enough.

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  5. I mentioned in comments Friday that the Fed would now begin a new barrage of "jawboning" to hold the game in check.......and sure enough on CNBS Asia tonight they said there were 10 Speaking engagements for Fed govenors scheduled next week......presto...here they come with the obfuscation/disinfo

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  6. http://www.zerohedge.com/news/2013-04-07/kyle-bass-japanese-retirees-will-lose-half-their-life-savings

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  7. the cliff is getting crowded

    http://globaleconomicanalysis.blogspot.com/2013/04/canada-unexpectedly-sheds-54500-jobs-in.html

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  8. http://seekingalpha.com/article/1321471-2-gold-stocks-and-a-potash-company-with-recent-intensive-insider-buying?source=yahoo

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  9. Alexco Resource Corp. engages in mining, exploring, and developing mineral properties in Canada. It explores for silver, lead, gold, and zinc ores. The company principally owns a 100% interest in Bellekeno property, including 70 surveyed quartz mining leases and 14 unsurveyed quartz mining claims located in Keno Hill Mining District, central Yukon. It also owns a 100% interests in Lucky Queen property comprising 51 surveyed quartz mining leases and 6 unsurveyed quartz mining claims located in the Mayo Mining District, Yukon Territory; a 100% interests in Onek property consisting of 32 surveyed quartz mining leases and 5 unsurveyed quartz mining claims located in Mayo Mining District, Yukon Territory; and a 100% interests in Elsa Tailings property that includes 8 surveyed quartz mining leases located in the town of Elsa, Yukon. In addition, the company provides consulting and project management services in respect of environmental permitting and compliance, and site remediation and reclamation in Canada and the United States. Alexco Resource Corp. was incorporated in 2004 and is headquartered in Vancouver, Canada

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  10. Here's an article inline with the heading of this current post:

    http://www.latimes.com/business/la-fi-harsh-work-20130407,0,7162845.story

    I think this is the new reality, as the poor get poorer, the middle class continues to get squeezed and disappear, and the 1% get richer.

    And of course, the markets will continue to make new highs, completely disconnected from the reality of main street. It will all come crashing down eventually, we just don't know when. I can't see it happening in 2013, and I agree with Doctrader that any sell-off this month is a buying opportunity.

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  11. "Cramer is a pure actor.......all about free market capitalism until the market starts to turn down then the Gov or the Fed HAS TO DO SOMETHING!....NOW!"

    Yep Kudlow too.

    Cramer kneels to Bernanke..please keep me wealthy.

    Remember when Cramer used to say we are in late stage capitalism?

    Cramer, A complete sell out.

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    1. Cramer is a Trotskyite neocon........they are parasites of free markets and were what our founding fathers had hoped to defend our country from falling into ....its authoritarian/corporatism

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  12. I nearly spit out my coffee this morning when I read this on Yahoo Finance:

    "U.S. Treasury Secretary Lectures Europe About Austerity"

    Maybe he should worry a little more about the $17,000,000,000,000 hole we've got in America before he lecturing others on how to further destroy their economies.

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  13. Now it's Sinclair "Fed & the West are becoming friends of gold" V. Soros "gold is no haven even tho the CBs continue to buy". Maybe they keep gold down for another yr. or so.

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    1. There are "Two" central banks....The Western central banks and the "Rest"....China Russia and developing nations central banks that are buying to protect themselves from the monetization of the Western Central banks.....its a race against time and it will blow up....the west has a limit on how long they can move their bullion to the east

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  14. http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/4/8_Embry_-_This_Is_Heading_Toward_A_Catastrophic_Ending.html

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  15. I understand that the PTB needs to keep a lid on the price of PMs as part of its strategy to maintain confidence in fiat, specifically the US$ as the reserve currency. My question is how could they continue to let their PMs be sold off to the East?? The PTB are smart...they must understand the potential importance of bullion following a financial/system collapse. If they do in fact realize this, then why do they continue giving up bullion? What is their thought process? Do they still believe they can save the system and the US$...or are we wrong about the end game?

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    1. The real PTB are selling bullion belonging to a variety of sources besides their own.....they are positioning themselves also for the engineered implosion......holding the price where it is now is NOT just the Western bankers but the Eastern side is assisting this endeavor as they accumulate bullion....imagine a great balancing act as all central banks participate in it......There are MANY items of value besides gold that positioning involves. CONTROL comes at a COST..... ie...they will continue the manipulation with the Western currencies up to a point...that point will be reached and then the fireworks will begin. I do not see that point reached yet....there are many factors limiting that "point" ...including social unrest/cost of essentials/etc.... BOTTOM LINE....concern yourself with what YOU can control...accumulate gold silver items of value payoff debt and strengthen yourself emotionally and physically

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    2. look at it as a war with all sides using conventional weapons.....they have nukes but will not use them instead they just keep ratcheting up the conventional response until one day....one pushes the button......it will happen in this game too

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    3. You really wonder about the "end game"....hehehehe

      http://www.zerohedge.com/news/2013-04-08/next-domino-australia-doubles-tax-retirement-savings#comment-3423095

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    4. It is not just Australia - looks like the housing bubble in Canada is ready to pop.

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  16. http://blogdogcicle.blogspot.com/2013/04/30000-greeks-lose-electricity-per-month.html

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  17. Thanks Kli...always appreciate your feedback!

    You're right, each person should focus on what they can control, I'm just always curious about what these guys are thinking. This is one complex game and one risky high-wire act they're trying to pull off.

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    1. These are psychopaths and trying to think like them is NOT healthy nor can you..... Look at their history and you can glean some clues....whatever is coming....you can be assured they will engineer it and take advantage of the chaos.....unless nature intercedes.....then you don't want to see the consequences.

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    2. kli: You make is sound like nothing has changed since the time when us humans were living in caves.

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    3. Human behavior is very predictable AND BASIC.......These people are PhDs and HIGHLY intelligent....they have spent centuries in bloodlines studying the science of behavior and mathematics.......Power is the ultimate CONtrol and has always been their game......Our country is cannon fodder for them.....its time to change empires as the debt supercycle dictates. I have NO illusions of the goal....just the pathway to it.

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    4. KLI: So governments are just a well orchestrated show regardless of system? Are all leaders puppets for the highest bloodlines? Has anyone ever written a book about this?

      This is so conspiratorial that I'm having a hard time wrapping my head around it.

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    5. there are a number of books dealing with this and in some detail....if you put them all together you can develop a fairly accurate portrayal....compartmentalization is key to this large of a pyramid of power

      Give me control of a nation's money and I care not who makes her laws.

      Mayer Amschel Rothschild

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  18. March U.S. Non-Farm Payrolls +88,000 (payroll survey, median expectation was 175,000)
    March U.S. Civilian Employment -206,000 (household survey)
    March Canadian Employment -54,500 (worst print in 4 years)
    March German Unemployment +13,000 (surprise increase)
    Companies issuing negative earnings preannouncements for Q1 2013: 78%

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  19. Inlet, sounds like the markets should be making new highs based on those numbers you cite.

    Buy, buy, buy!

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  20. Me thinks YEN shorts are going to wake up to a loss....

    Back to the bunker.

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    1. total crock of shit....just "jawboning" to extend the printing game.....just like we do.....they'll DESTROY the Yen

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  21. Jay, start with The Creature from Jekyll Island.

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  22. Jay,

    There is a ton of this out there, the following link is a good summation as well as Sis's recommendation.....

    http://rense.com/general79/tril.htm

    What I found to be useful a few years back as I was trying to make sense of all of this was to be COMPLETELY open minded! You need to rid yourself of all personal biases re: Norm Chomsky Left/Right paradim ect and see what has been in front of all of us that we choose to ignore. I read and still read all I can stand no matter who the author and look for the nuggets of truth..... Since I have always enjoyed keeping up on current events it was interesting to go back and apply the truth to history and it gives you a entirely new perspective. However depending on how you view the world if you really go full bore in trying to understand your not going to like what you find!

    It ain't nutthing you thought it was......

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  23. Jay,

    Here's another blog to get you going.....


    http://www.theforbiddenknowledge.com/hardtruth/wake_up_america.html

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  24. ANV +13% just when I was about the throw in the towel. As we've said so many times, they're good.

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    1. look at them chop up the shorts.....no confirmation though this is the bottom.....just chopping the trade

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  25. Is this real or just part of the volatility?

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  26. HL having a good day. Now I just need it to continue for a month or so ....... heheheheeh. Nice move with some volume behind it. Good luck guys.

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  27. All: Thanks a lot for the reading tips. I've got some homework to do.

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  28. Here is the book description of "The Creature from Jekyll Island"

    Traces the history of the Federal Reserve, revealing how the American government has used the Reserve as a way to deceive taxpayers and control the global economy and explaining how the Reserve influences the flow of money between citizens, businesses, banks, and the government.

    It's a popular book at the Seattle Public Library:

    Total Copies: 6
    Available: 0
    Holds: 8

    I'll have to get in line.

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  29. Take a look at SVLC--Silvercrest Mines. Low cost/oz, multiple properties, $45MM in cash, just released excellent drill results. Research analysts give a much higher share price target.

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  30. Jay,
    Watch "The Money Masters" by B. Still. Its three hours long but it opens your eyes to the "game" and how it has been played through the centuries! It was one of the most eye-opening moments of my life. I was 28!

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    1. Hey Rudy,

      Thanks for the tip.

      I found the entire movie on Youtube....


      http://www.youtube.com/watch?v=HfpO-WBz_mw


      I know what I'll be doing tonight.

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  31. Here's a good one that Kli posted a few years back: http://www.iamthewitness.com/DarylBradfordSmith_Bankers.htm A History of the Money Changers from 48 B.C. It's a timeline of their control & destruction.

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    1. It goes all the way back to Caesar?

      Wow.

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    2. Sister/KLI: Your link is a very long fascinating read. They never taught this stuff in History class. I'm still only about half way through it because I'm at work.

      Central bankers have orchestrated most of our wars?

      How can we fix this cluster$#@&?

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    3. start educating yourself and others

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  32. http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/4/9_Richard_Russell_-_The_Fed,_Hard_Times,_A_Crash_%26_Collectibles.html

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