Sunday, May 19, 2013

PRELUDE TO WAR

Unprecedented turmoil and destabilization today in dozens of countries and regions around the world should make anyone with vision shudder. But then of course it is not unprecedented in recent history and it appears to only be part of a larger pattern of global tyranny that is playing out. Couple this "unprecedented" disintegration of institutions and countries with what seems to be a paradox of affluence in many other countries leaves many cursory onlookers scratching their heads. Its hard to reconcile in a country like the U.S. with 107 million working age people NOT working but Porsche sales rising YOY. OR that over 60 million "affluent" Americans on food stamps and growing next to the big box crowded Friday night Red Lobsters. Of course lying beneath these so-called signs of affluence are many contradictions that are being ignored because THEY want you to ignore them. 

A couple that managed to slug through the 2007-2008 collapse with significant debt and an underwater mortgage is now starting to take on even more debt as they purchase a new car for commuting to replace their ten year old Chevy with 160,000 miles. Their mortgage may be less but their debt is growing. Their savings instead of growing remains the same as it was in 2007....virtually zero. Just enough to make it to the next months as long as they BOTH retain their jobs. Of course they are part of the Friday night crowd at Red Lobster. Why not? Its been their behavior for almost twenty years of their marriage. They aren't on food stamps. They didn't lose their jobs like millions did during the last 5 years. So they have not changed their behavior one iota. 

They watch 22 minutes of news every night at 5:30 during their evening meal and it portrays a "recovery"...and all is well with the stock market making all time new highs. So of course as Dr. Bernanke said many times in 2007....there is nothing to be alarmed about. CONfidence. Its what's for dinner tonight. I hope you digest your meal well.

Now while you are eating I want you to digest a sprinkling of CONdiments. They're ONE TRILLION this year that we are sprinkling on your CONfidence meal. The reason you need the CONdiments is the CONfidence meal has a 1.5 QUADRILLION hole its falling into and swallowing it faster than you can slurp the CONdiments. Those CONdiments are an illusion....but they "sure do taste good".....DON'T they!!





71 comments:

  1. Silver appears to be under attack, $21 and change as of this post. I wonder if there's firm floor in the $18-20 range. This attack on the metals is starting to resemble what they've been doing to the miners. Awfully tempted to pull the trigger on a monster box purchase, but afraid of more downside. It's really a confusing time as a saver and investor. The equity markets are unreal, cash in a savings account is rotting away earning 0.01%, and the PMs are having their own problems. What other tangible assets can one put some cash into? I remember reading somewhere Rolex watches hold their value very well. Would that be a good option to drop some FRNs into?

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    Replies
    1. automotive parts, lathes, good american machines used by machinists...cigarettes...

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    2. Why Afraid Bud IF you believe that silver is being "taken down" and that ultimately it will serve as a "safe haven" or store of value etc....???? Probably splitting hairs but at these levels the "fear" has pretty well been exterminated.....hehhehehehe

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    3. also bud.....you still seem somewhat confused between "physical" and "paper".....IF you don't have physical then you have nothing.

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    4. Bud's not confused a sweet Rolex is made from that chitty yellow metal....... heheeee

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  2. I'm perfectly aware that if you don't hold it, you don't own it. My dilemma at the moment is to come up with a good list of hard assets that I can exchange with my dollars. I don't want to put all eggs in one basket and only own physical bullion. Alcohol sounds good, ammo and firearms also. I know art is a good option, but I know nothing about it. Automotive parts sounds very intriguing, and I'll definitely look into it, since I know a lot about cars.

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    1. millions of Americans are slowly but surely coming to the same conclusion "$h!t this monopoly stuff is a lead anchor", you are now competing with others who came to that conclusion years ago. No reasonable farm land, good luck on the ammo 2 million rounds left one store before noon on Saturday and that included limited quotas per customer, firearms are expensive and limited value without ammo (prices have dropped hard since December on the sexy guns), alcohol requires lots of cool space, toilet paper lots of dry space, dog food has a shelf life, solar panels require knowledge on use and permits if you intend to put them up and subject them to theft. Maybe you want a bug out cabin up in the Rockies, most of the good ones are taken and remaining ones are 6 figures and up or will cost you 1-2 years to properly prep it. Foreigners are already converting their rapidly worthless electronic fiat into physical and demanding immediately delivery. There will be very little left when the American Idol crowd wants some.

      Do you have enough "hard assets" and a "plan" to survive for 21 days after the utilities fail. Bad storm like Hurricane Sandy or minor disaster or major riot. Investments are meaningless if you can't survive 3 weeks when the music stops.
      Water, Security, Food, Transport, Shelter

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  3. Funny you should bring up auto parts......hehhehhehehe........oh my how ironic life is.......

    Stick with easily exchangeable essential items..use your brain....eggs is certainly one...hehehehehe....Be careful with auto parts...its my family business and they will not be "easily" interchangeable....you would have to access to a large inventory UNLESS you know WHICH PARTICULAR parts would be in GREAT demand....

    Think non GMO seed banks (purchase on the net) think food storage think ammo think toilet paper,razors,water and water storage and water purification....think solar panels and batteries ...think generators of all sizes

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  4. I have a couple friends that bought as many Electronic Control Modules as possible from Dealers going out of business in 2008-10

    they made some really good money

    http://www.ynetnews.com/articles/0,7340,L-4381218,00.html
    An Israeli official told The New York Times that Israel, which has launched three recent attacks on Syria, was considering further strikes and warned President Bashar Assad that his government would face "crippling consequences" if he hit back at Israel.

    The Sunday Times said the deployment of the Syrian-made Tishreen missiles, each of which can carry a half-ton payload, marks a significant escalation of tension "in a region in which the United States and Russia appear to be preparing for a Cold War-style stand-off."

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  5. Great! Peter Cooper (Arabian Money) now reporting that Soros sold his GLD and bought GDX and GDXJ call options. Double hehehehe. Son ofa bum knows how to play the game. Thanks for all you do Kli. Speaking of survival, I don't think I could survive without your blog.

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    Replies
    1. hehehe.....My blog may survive but can my miner portfolio???.....Yup Nancy...follow the money...

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  6. At least he's begging

    http://www.zerohedge.com/news/2013-05-20/india-finance-minister-begs-citizens-stop-buying-gold

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  7. Maybe MSM needs to promote that the new "in thing to do" is to watch several TV shows at the same time. This way, several TV sets will need to be installed in every room of the house. This should help curb physical Gold sales.

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  8. Thanks for the post on Hong Kong Mercantile Exchange closing up shop Sister...does anyone have comments on this? This seems to be a major event in the evolution of the coming collapse I think, no?

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  9. Great idea Doc. Sammy, in the ST, that is the reason they brought the metals (including platinum & palladium) down overnight. Now look at 'em...all +2% and silver +3%...I would love it if Kli would comment on WHY they went bankrupt? No commods for delivery, but who was trying to take delievery?

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  10. Headline on Yahoo finance today:

    Time for Gold Bulls to Abandon Hope?

    Seems like CNBC and Yahoo are trashing gold multiple times daily now. They want us to think that it's not a viable alternative currency to the dollar.

    Meanwhile, Budfox continues to get rich off his equity investments:

    Dow
    15,388.50
    34.10
    +0.22%



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  11. Yeah sister, the sharp rebound from this morning in PMs is surreal!

    Btw Blackstone IPO'ing real estate portfolio, GE Capital dumping Canadian properties...along with a few other smaller deals I've read about. So much for betting on the real estate recovery eh!?

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  12. Damn I need GS to keep it down for awhile longer :)

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  13. hope for the miners again or just another GS nuke attack waiting around the corner? today was kind of suprising to me, all I heard last night on Bloomberg was gold was shit

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  14. "Only the hand knows".......I don't need to comment on the move IF you watch the video above that was posted during the flash crash last night....Brother John told you EXACTLY what the move was...just stop running .....very likely April 1320 was the bottom but I posted last month they can still take it just below that for maximum damage to weak longs. Hong Kong was MF'd to prevent bullion delivery....I knew there would be a public default about this juncture on COMEX unless they confiscated another exchange......they did....

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    Replies
    1. lesson for HKMX is DONT swim with sharks when you're the smallest. As soon as there is blood in the water, you're dead.

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  15. These are the kind of stats that should truly scare all of you....They're hard to cover up even though they've tried.....these are the kinds of events that will ripple through the economy for months...and there are a lot of high paid manufacturing jobs that DO go out to big boxes with their 110K incomes and disposable spending that ARE going into the toilet instead.

    http://www.zerohedge.com/news/2013-05-20/caterpillar-north-america-sales-collapse-suggests-us-economy-back-2010-levels

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  16. Yeah, I suspect with the Japanese devaluing the Yen that competition in the heavy equipment business just got a lot tougher (as I recall Japan has some world class heavy equipment manufacturers)....

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  17. Trapped shorts .......MUX now up 15%

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  18. Just ran into Jim Rickards near time square, really nice guy, shook his man, told him I like his work. He was waiting for his car, I just happen to leave work early. Nice move in the metals, added to mux this morning. Thanks Joe! Go all.

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  19. Rudy - "shook his man" - what are you telling us? Hehehe

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    Replies
    1. I was typing on my phone when I wrote that, that is too funny! I need to proofread my posts!

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  20. Thsnks for the Comex/Hong Kong Merc comment...I was gone for over a week so don't remember your posting that. Rip 'em up, tear 'em up.

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  21. No crowds right now at the Oklahoma City Red Lobster

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  22. Don't know why anyone would trade in a Chevy w/ 160k and no payment, mines got 100k and great shape and purrs like a kitten! Plan on getting another 160k out of it! No new payments for me.......

    Kli & Reds lists are where to invest any spare fiat......

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  23. I have some family members working on the auto parts issue ....more later but for now they are having issues with acquiring older model pre-1980 points. I like that. They're small and light and the same GM points for V8 fit MANY models for MANY years. ie one or two numbers could be invested in and they could be monster appreciation...they are small and many would fit in a box.

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  24. Terrible news out of OK, puts things in perspective. Prayers for the families who lost their children in this tragedy. Looks as bad as Joplin, maybe worse.

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    Replies
    1. Was watching that last night.... The folks around here still complaining about Sandy and looking for coin from the government to make them whole need to pay attention, at least they are around to complain. I can't fathom the amount of damage and loss of life that occurred within a span of 20 minutes.... 51 people gone in an instant, just the thought of that is chilling and yet it is a reality for all those families, there's no prepping for that, enjoy what you got because you never know what nature has in store for us!

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  25. Here's a stock idea for everyone. I already own this and might add. Comments welcome.

    FTR is a high dividend paying telecom. stock that is also heavily shorted. Pull up a daily 6 month chart and you will see that an inverse H&S pattern is present and the stock is presently at the upper rail of its down-trending channel. There is a gap just above where is is trading. I believe a pattern of higher highs & lower lows is being set up. FTR has declared its dividend with the Ex-date coming up soon on 6/5. So, the dividend may attract some buying interest. The stock pulled back yesterday.
    I think it may pull back a bit but find support. Inlet's cycles have the market trending higher through May & maybe early June. So, I think FTR could try to cover that gap, and thus force the shorts to cover. Maybe a short squeeze. If it doesn't work out, at least you get the dividend.

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  26. http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/5/21_Clients_Denied_Gold_At_Major_Banks_As_Shortage_Intensifies.html

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  27. I love this stuff. Not that I need any confirmation but it does reinforce my beliefs that I am on the right side of this "trade" or more aptly put "survival strategy."

    http://finance.yahoo.com/blogs/breakout/gold-etfs-liquidating-ton-112206437.html?vp=1

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  28. choosing between a V bottom from the April low and a chop shop, grind out the remaining weak longs and the newbie weak longs trying to catch a ride to stardom......looks like its NOT the V bottom but the latter.....probably when you look at the monthly in a few years it will look like a V bottom....hehehehehe

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  29. Interesting story on Yahoo this morning:

    Gold ETFs Are Liquidating by the Ton

    Breakout Videos SPRD Gold Shares has disposed of over 300 tons of gold so far this year, something Tom Lydon, the editor of ETF Trends, says is "amazing" and "incredible."

    http://finance.yahoo.com/blogs/breakout/gold-etfs-liquidating-ton-112206437.html?vp=1


    Question: Why are they liquidating?

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  30. Nature brings the best laid plans to waste in a matter of minutes. Horrifying day yesterday here in Oklahoma. Luckily it was to the southeast of me but still had friends that lived in Moore involved with it. Luckily they are all okay and I'm very thankful for that. In the end it's family and friends that matter, I know I lose sight of that sometimes. Posessions come and can EASILY go.

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    Replies
    1. Very true words Hubz. Glad you and yours are safe and sound.

      Friends and family will always be more important than a big day in the Wall Street Casino.

      Events like yesterday's remind us how precious life really is.


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  31. Don't forget Fed minutes released within the hr. and BB gives testimony on Capitol Hill tomorrow. No way the PMs climb until after that. Now GS saying markets will climb into 2015! Oh, yeah.

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  32. Angela Jolie has lit a fire in Genetic stocks..
    VRML, ROSG, GENE...watch for more moves tomorrow...scalp or scale...

    Also keep your trigger close on DMND, if they refinance debt, epic short squeeze in the making...rumors are floating they are...

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  33. Hmmm. KWN reporting that the Gold Miners Bullish Index is 0%...

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  34. If they pass this immigration bill, I think I'm going to go flip out...These disgusting people in Govt. are going to throw the poor, middle class and wage growth out the window for illegals...

    Call me disgusted..

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    Replies
    1. this bill has "bipartisan" support and benefits the corpratocracy with lower wages.... attention keeps being diverted on the "right" by saying it will bring in more votes for the dems......but the reason people like McGain and others support it is its destruction of the middle class for the elite. The elite want all of us to be in the "debt slave" class......opening borders floods us with cheap labor and burdens the remaining producing class with even higher taxes to support their health care costs......its diabolical

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  35. Disgusted,

    Its just part another part of the puzzle on destroying America from the inside out... Round here they've been running "Conservative" radio ads featuring Rubio & Ryan supporting this garbage and they are lying thru their teeth! Kli said it best this only serves to put another nail in the coffin of the middle class and benefit the Corporate Elite.

    Sickening:

    http://dailycaller.com/2013/05/21/yes-we-can-chant-breaks-out-as-senate-panel-passes-immigration-bill/

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  36. I would expect the market to have some "air" taken out of it today with Ben's comments....

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  37. VERY dovish comments from Ben...metals jumping (for now)

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  38. Oops! Short covering on the PMs. I am truly shocked.;)

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    Replies
    1. don't celebrate quite yet....now they're runnin' the stops on the longs that just jumped in...hehehehe.....chop shop is still the name of the game

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  39. These guys can just jawbone the market anyway they want.
    Looks like gold has tested resistance at 1400 a couple times now. It finally punched thru, but now falling back.
    I'm still wondering if gold falls back to test 1320 or so. It seems to me that the West has no choice but to keep bashing gold, and they still have the power to do so.

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    Replies
    1. http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/5/22_Fed_Lies_%26_Propaganda_Wont_Stop_Gold_%26_Silver_Rise.html

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  40. Looks like we are getting a blowoff top. Gold already negative, other markets will follow.

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  41. watching oil, almost seems like it may be the next target to get hammered.

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  42. APMEX running premium sale on 1oz Gold Maple Leafs 39.99 any quantity.... That's a good price!

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  43. When I woke up, Gold was around 1400.

    I got to work and it's suddenly:

    Gold
    1,373.50
    -4.10
    -0.30%

    As KLI said, chop shop day.

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  44. Looks like the 10 year wants to break above 2%, but they will coming in and buy it back down. Looks like the market is starting to roll over.

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  45. nice hear that the fed will be winding down QE in the near future

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  46. Fed Weighed Slowing its Pace of Bond Purchases

    Result:

    Gold
    1,359.30
    -18.30
    -1.33%

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  47. If the markets start to roll over, BTFD.

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  48. They almost never let it fall on the Fri. b/4 a holiday fwiw. Interesting that gdx & gdxj are UP...Mr. S knows something...also slw holding up.

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  49. You guys really think the FED will be transparent? They got you watching the right hand, but what are they doing with the left hand?

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  50. I wonder what KLI thinks of the FED comments?

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    Replies
    1. jawboning.....Ben has NO choice but to print

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  51. Agree with Kli, it's been clear for sometime now that there's no choice but to print. If all this noise gets us the long awaited dip, I can put some of my cash to further use.

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