Sunday, June 16, 2013

HEALTHY RECOVERY

For many of us the "recovery" as it is called on many mainstream media outlets defies logic, yet in many areas of this country there are indeed full restaurants and shopping centers.......or is there? The answer is more complicated than yes or no.  Our country transitioned decades ago from a producing/manufacturing based economy to a banking/consumer based economy. This economy was based on the creation of LIQUIDITY. In other words counterfeiting fiat dollars that would slosh to the far corners of the world because of the petrodollar/reserve currency. This is where it gets diabolical...... Imagine if you had reached a point in time where you indeed recognized that you didn't have to "work". That you didn't have to "produce" your crop. That you could just stay home and print your "money" and buy your crops and your "previously manufactured" goods from another source that would "accept" your newly printed money. 

Of course we could go into the reasons why they would accept this "money" such as your massive military and its accompanying technological prowess that was derived from years of concentrated research by the country's greatest minds. Meanwhile we continued the promise of our population unending pensions, retirement healthcare coverage, Social Security, Medicaid for the poor, unending police, fire, ambulance service with THEIR early comfortable retirements, Military retirement benefits for two decades of service for enlisted men that approach six figures (counting health care), colonels and generals making WAY over 100K in total benefits. Promises, promises, made by politicians and accepted without questioning but with the wink and a nod by the recipients that this "system" needed to protected by them in spite of all of its warts and in spite of the mathematical facts that showed it was nothing but a ponzi now. The corruption this produced has now permeated into every level of society including the peeps themselves. 

Was it always a ponzi as many like to say? I would say perhaps but mathematically it was "possible" at one time to provide limited services and pensions but that was not what transpired with the WASH, RINSE, REPEAT game that is our Central Banker's game. Preying on human nature is an age old ploy and fear and greed are as predictable as night and day for the Masters of the Universe. They view humans as bugs and have no respect for their lives. They do not view themselves as human nor do they view themselves for what they have become......psychopaths. They are the "grand planners"...."the World's Power Elite". After centuries of consolidating power and the paranoia that accompanies it only one term accurately describes them......psychopaths. Recognizing this reality probably does not afford one any great advantage, but it does allow you to see the end game more clearly.

Everything that is occurring now is accelerating linearly. That means the "time is running out". There is a day of reckoning approaching and its NOT five or seven years down the road. Yes, the restaurants are full in some areas that have benefited from the endless fiat printing and yes the constant Media cacophony that everything is better and "recovering" soothes the frazzled psyche, but the opposite is underway. No one would love to be more wrong than I. I have benefited from the extension of printed money personally as much as anyone and wish it would continue indefinitely. The printed/digital fiat is now draining the developing world of its lifeblood and that's very destabilizing. The "East" knows the end game and is very patient. Don't expect to get a warning when they pull the plug. That will be when the real fireworks begin.... gl









63 comments:

  1. kil....

    MISH (Mike Shedlock) Last week I bought a basket of miners with a significant amount of money.
    Read more at

    http://globaleconomicanalysis.blogspot.com/2013/06/mish-buys-basket-of-miners.html


    what do you think about his picks

    paladin

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  2. I agree with his assessment "As you can see, most of the investment is with major mining companies that pay substantial dividends. PEs are trailing, not optimistic or unrealistic forward estimates. Price per book value is low in most cases."

    MY TAKE is limited downside risk from here....AND also not as much volatility to the upside. doubles certainly possible maybe even triples in some BUT most of these are NOT going to perform with 1000 or 10,000% moves like some of the juniors will...but they won't go to zero like some of the juniors

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    Replies
    1. If the casino stays intact you may expect to have this trade turn as the hedge money moves into precious metals for protection/fear trade in the hard down deflationary phase of the grand supercycle. Just because the boyz have beaten this trade down doesn't mean they won't profit on the upside when they rip the heart out of all the chumps they crushed on the downside.....that's the game......it was a crowded trade and now its not......still may have some leaves to shake trying to jump back on...

      Delete
    2. Also at this juncture of the game these major producers are DEFINITELY the safer play....any miner with debt is a potential wipeout by the masters of the universe

      Delete
  3. Excellent commentary as always. Mike Swanson is a trader I watch & like: http://www.wallstreetwindow.com/ A friend subscribes and sends me his monthly letter; right now he is scaling into EGO, KGC, and HL. He also will buy GDX in 1-5 wks. Will keep you posted. Personally I try not to trade opex week. GL everyone.

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  4. Oops forgot M. Swanson scaling into PAAS as well.

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  5. US GDP has been slowly ramping up, only to fall back and then try once more to bring us back to the '90s. Stocks markets are volatile but seemingly moving higher in most of the developed world, except for Japan, where the current 20% drop comes hard on the heels of one of their frequent "end of the bear market forever" rallies of almost 90% – how many of those have we seen over the last 24 years? Europe is mostly in recession or Muddling Through with very slow growth. I continue to read from those who know China intimately that there is a real crisis brewing there. And over the last four weeks I have highlighted how desperate the situation is in Japan.

    The main obsession in the US seems to be whether and when the Fed may stop its current round of massive QE. Every hint of "tapering" spurs volatility in the markets. If you are a forex (foreign exchange) trader, you are left breathless at the recent moves, sometimes a whole order of magnitude (10 times) larger than average. Get used to it: currency wars are likely to be a feature of the landscape for the rest of this decade. (My friend Mohamed El-Erian, CEO of PIMCO, corrected me on stage recently, telling me the polite term du jour is "currency tensions." And compared to what I think is coming, we really are just in the tension phase. Later we will get to skirmishes and then full-fledged currency combat.) from Mauldin friday

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  6. Who says our congressmen can't be bipartisan???
    http://www.thedailybeast.com/articles/2013/06/14/the-sickening-snowden-backlash.html

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  7. First, Happy Fathers Day.....

    Second it is sickening how the DC establishment is circling the wagons but to be expected, however the stupitity of the peeps is mind boggling......

    Great post!

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  8. Get back into beaten-down mining stocks: J.P. Morgan

    are you kidding me...the light is shining at end of tunnel?

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  9. In line with your post its starting....

    http://market-ticker.org/akcs-www?post=221870

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  10. Real time live chat interview with Snowden and Guardian, get some while it last.

    http://www.guardian.co.uk/world/2013/jun/17/edward-snowden-nsa-files-whistleblower

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  11. Dow
    15,224.36
    +154.18
    +1.02%

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  12. Learned something new. Now why would I want to trade against this?

    "..NSA provides Congress with a special immunity to its surveillance."

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  13. SNOWDEN: The Truth Is Coming, And The Government Can't Stop It By Murdering Me


    http://www.businessinsider.com/edward-snowden-nsa-murder-jail-asylum-obama-leaker-guardian-glenn-greenwald-2013-6#ixzz2WUtZX0C5

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    Replies
    1. they'll kill him anyway....just for fun

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  14. Well maybe Congress but not so much for Elliot Spitzer hehehehe...

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  15. I think this is one of KLI's longs:

    Golden Minerals Company (AUMN)

    1.84 Up 0.27(17.20%) 3:29PM EDT - Nasdaq Real Time Price

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  16. Tom, thanks for posting the Denninger blog...yes Dow up 3%/yr. since '07 which hasn't even kept pace with inflation. One would think the Unions would be raising heck as well as about the Immigration "reform" bill which is just another gift to the corporations, ensuring cheap and benefitless labor. But so far the clowns in charge are WINNING, lol.

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  17. http://www.infowars.com/multiplying-scandals-to-hide-the-one-scandal-that-could-sink-obama/ Off the above topic/subject link...I am about as prepped I can be at this point.(food, water, filters, PMs, medical supplies, homeopathic supplies, etc... I have closed out all but 2 bank accts. One still holds household "bill"/day to day money. One other left to finish draining.(safe deposit boxes are now empty) I expect we are getting close to a "lock us down" type red flag event and Marshall law.(Based on all that I am reading, trying to put 2 and 2 together) Also I have been watching the 10yr for about 6 months...close and stay over 2.3%..watch out for major market reverse. IMHO based on all of my reads. DOW and S&P both unchanged at this hour..seems rather odd to me. Do we have 6 months, a year, 18 months before the entire global financial markets implode, I have no idea...but I don't like taking chances. GL all....still lurking. :)

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    Replies
    1. yup and I guess they couldn't "massage" this one either

      http://www.zerohedge.com/news/2013-06-18/european-car-sales-drop-20-year-low-germany-clobbered

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  18. gold down but miner accumulation...good

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  19. Fed meeting is starting...

    Gold
    1,364.00
    -19.00
    -1.37%


    Golden Minerals Company (AUMN)
    2.0150 Up 0.1550(8.33%) 12:31PM EDT - Nasdaq Real Time Price

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  20. All of a sudden they're letting us know that the surveillance program stopped attacks...as many as 200,000 protesters in Brazil: http://www.zerohedge.com/news/2013-06-18/200000-take-brazils-streets-largest-protest-two-decades Here in N.C., protesters outside the state capital Every Mon. So far, about 400 showing up but hopefully the numbers will grow.

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  21. Just wondering Kli....how the heck did you know 5 years ago S would HTF? Seriously, very few were suggesting the problems the world would have.

    Will be buying miners tomorrow either way. Hoping for a beat down...

    Good luck and good health to all.

    Back to the bunker...

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    Replies
    1. Just connecting the dots and oh there were so many dots to connect. Filtering chaos is what I do professionally and allows me some advantages looking at complex issues such as this centennial supercycle event. It does not provide me anymore advantage than someone like Red that uses a superior intellect to look at the manipulation with an ethical/moral perspective that provides clarity beyond my limits. Joe came into the picture as the dots were being connected and added a fourth dimension that made me realize just how controlled the entire ponzi was. His predictions on the miners and various other ways "they" would react to the Supercycle were uncanny....in fact I'll go further....they demonstrated an inside knowledge. Virtually everyone on the inside is compartmentalized so there are limits to their knowledge of the structure and plan. I won't claim that I know how this will play out at this point and anyone that does is suspect (of course). Surfs gonna be up tomorrow and it looks like its going to be good weather for at least a few more months, but like I've said.....this is one trade they don't want you in and however they play it, it will not be an easy one.......until you look back on it....then it will make perfect sense.....gl sheeps to you and yours and I hope your wife is well.

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  22. My Dear Extended Family,

    The international bankster plan now is delay and dissuade, so hurry up and do the needed NOW!

    1. Many people are finding that withdrawing large sums from the banking system that used to be done on the same day by bank wire now takes two weeks or more.


    2. Any new account you wish to open anywhere in the world, you must open in person.

    There is a real reason why this is happening, but I prefer to discuss it in our private meetings and not in public writing. I know exactly what is happening and you have to GOTS, now!

    Regarding banks most likely to be bailed in, they are those that took bail-out money.

    Here is the list. Do the necessary please and do it now. For your sake, not mine!

    My Dear Extended Family,

    The international bankster plan now is delay and dissuade, so hurry up and do the needed NOW!

    1. Many people are finding that withdrawing large sums from the banking system that used to be done on the same day by bank wire now takes two weeks or more.

    2. Any new account you wish to open anywhere in the world, you must open in person.

    There is a real reason why this is happening, but I prefer to discuss it in our private meetings and not in public writing. I know exactly what is happening and you have to GOTS, now!

    Regarding banks most likely to be bailed in, they are those that took bail-out money.

    Here is the list. Do the necessary please and do it now. For your sake, not mine!

    http://projects.propublica.org/bailout/list

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  23. Kli, I still have trouble believing you, Red and Joe were nice enough to even talk to me! "Joe" definitely knows something about the way things work.

    ReplyDelete
    Replies
    1. Nancy, you've always been a valued contributor....many thanks

      Delete
  24. http://usnews.nbcnews.com/_news/2013/06/18/19027717-journalist-michael-hastings-dies-at-33?lite

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    Replies
    1. Possibly had his 15,000 mile break job done in Boston......

      Delete
  25. Bernanke will give indications tomorrow that QE tapering can and will begin as the economy slowly recovers. He will be purposely vague regarding its exact date but the term "near" should be present. Yellen is the next chairperson for the Fed and many believe he will try and make the initial interest rate moves BEFORE she takes over rather than dump the entire steaming pile of shit on her.....I wouldn't bet on it. I think the "move" is going to be much bigger than a lot of people think and could very likely be initiated by a force OUTSIDE of the Central Bank cartel. Everyone assumes the CBs will control the the agenda. My take is they would like to see a force that is considered "outside" of their sphere to be the device that blows the reflation/monetization. For example it could be War, massive terrorist/falseflag event, massive nature event, etc...... so that the public is caught off guard and the resulting collapse has an "external" cause that is not associated with the banking cartel. Market is still overbot and more air needs to be let out in the very near term.....

    ReplyDelete
    Replies
    1. But KLI, You swore up-and-down that Ben Would never stop printing.

      Delete
    2. Ben CANNOT STOP PRINTING....."Tapering" is the key word.....these are carefully parsed words the Fed uses that make a huge difference in markets. "Tapering" will be USED to either shock the markets and kick off a reactionary new round of even higher QE OR and this is where it gets diabolical.....they can EASILY announce tapering and drive the markets higher through algos to create an illusion that tapering and an "exit" from monetization is possible....this will NOT be mathematically sustainable and Yellen will be forced eventually to announce an "Abenomic" monetization expansion. These are all mathematical certainties. BEN CAN NEVER STOP PRINTING....he can however for short periods of time "taper" or decrease slightly his monthly QE. Bonds are the key NOT the market ...Bond prices MUST be maintained to sustain the cheap interests on BOTH ends....short AND LONG.....

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  26. Couple comments:

    Remember, Nenner stated a couple weeks ago that the cycle low for Gold would be in the "middle of June" and gave a target of 1285. I looked upon the "middle of June" being from 6/10 thru 6/21, so, just 3 days left. There was a commentator on the Financial Sense Radio Show this past weekend that felt that Ben will say something today that will send Gold lower. Thus, possible buying opportunity these next 3 days or so.

    For those of us that still hold SVM, there is a dividend payment coming up (need to be a holder of record by 6/28). SVM has a 3.4% yield. I might add to my position, especially if Ben tanks the miners.

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  27. http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/6/19_Banks_Poised_For_Gold_%26_Silver_Turn_As_Central_Planners_Panic.html

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  28. whatever Bernank says will be countered within 24 hours by other Fed govenors...to tamp down whichever direction the market moves towards.....I still think that taking air out of the market is the direction for the next couple of months.....as far as gold and silver go....they remain the enemy of the Fed but their secular bull market will eventually dominate.....more interesting are the miners. remain oversold and could stay oversold even longer but money is accumulating so we will see

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  29. Absolutely nothing is real: http://news.yahoo.com/blogs/lookout/twa-flight-800-crash-investigation-ntsb-141624708.html At least there are a few brave souls willing to risk it all...I guess we'll never know who fired the missile. Just like we'll never know who killed j*k/r*k. As Steve Saville points out, the Fed exists only to "remove financial obstacles from the growth of the government and the banking industry."

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  30. If the FED tapered there would be zero GDP.

    If the FED tapered the GOV-MENT would fail due to the inability to monetize THEIR deficit spending.

    Likely, it will take years to get all of the toxic MBS out of the bank vaults. All the coupons need to be paid on all the toxic bonds that reside all over the world. Dpending on the maturity I guess it could take 20-30 more years of ghost bond coupons that need to be paid.

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  31. ot: Kli, Me wife is in very bad shape. The LUPUS and complications are living hell. SHe swings between MRSA pneumonia/sepsis and pneumocistitis. The new problem is collapsing vertebrae. I think the MRSA is in the spine not yet confirmed or treatable. t-11, t12, l-1, l-2 are gone. The pain is out of this world. The is in the hospital at this time. being treated for MRSA outbreak in the lungs and perhaps sepsis. The l2 collaspe happened in the hospital. I am not sure what hapens next. MRSA is going a rough death for a lot of folks.

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    Replies
    1. Sheeps: That sounds pretty rough. I can't imagine what collapsing vertebrae feels like. Wishing her the best.

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  32. The brutal part of all this is being fully cognizant of what is happening...Mentally she almost all there. Living hell. The pain/screams of pain is chilling. There are these spasams...I am usually with her everday to make sure her needs are met. Today I am staying home as I trust her nurse.

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    Replies
    1. There is NOT a good reason for her to suffer like this....Undertreating pain is unacceptable and I would demand a pain consultation from your doctor....referral to hospice or a pain center may be necessary....NO ONE NEEDS to endure that pain level today....THERE ARE PLENTY OF CHOICES

      Delete
    2. Sheeps: Have you seen a pain specialist? There are doctors that specialize in pain. There must be something that can be done?

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  33. Ben is giving his speech right now. He's going to keep buying $85 billion a month... Yet DOW is plunging. What gives?

    Dow
    15,224.54
    -93.69
    -0.61%

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    Replies
    1. In just a couple minutes:
      Dow
      15,172.24
      -145.99
      -0.95%

      Delete
    2. psssssssssssssssssssssssst

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    3. here's the essence of his speech Blabla bla bla...blablabla...bla.....bla and blaa bla......and don't invest in gold....hehehehe.............

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    4. Gold too....

      Gold
      1,350.70
      -16.00
      -1.17%

      Delete
  34. Miner stocks got trounced during/after Bernanke's speech.

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    Replies
    1. yup...and now the proverbial rock and a hard place gets even nearer......WHERE TO GO??? They are getting closer and closer to Armageddon

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  35. http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/6/19_Fed_To_Dump_Its_Balance_Sheet_Onto_Unsuspecting_Public.html

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    Replies
    1. "A recent estimate of the total retirement assets just in the U.S. tallied close to $17 trillion. Packaging up those securities and distributing back into the system would go a long way toward a major reduction in the Fed’s balance sheet and make room for the continuing monetization of the budgets deficits which are sure to accelerate as the onslaught of unfunded liabilities hits the public and private sectors."

      The Raping of the Peep's continues......

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  36. ot: HKli..Morphene, Dilauded, intravenous with a patient demand button...Antivan, Occicodene, Flexoril. Blood sats and R/rate monitored so as not to OD. Tis more under control but the pain breaks through all of that. She needs an MRI to check for a spinal injury..but she cannot be moved without the pain. The are afraid at this point to put her under to do the MRI. If it is a MRSA infection in the spine this can only get worse... with spinal cord involvement...I'd rather her come home to die than hospice...She may pull out of this one more time but there not much left in her. I am pretty spun.

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  37. hospice IS done in the home sheeps

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    Replies
    1. morphine, dilaudid, oxycontin can all be increased in dosages as needed......AND THERE are others.....don't let them underdose if she's in extremis......You're my hero for staying

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  38. Oh, sheeps. I had no idea and am sending prayers your way.

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  39. Sheeps,

    My father died at home with adequate pain medications and my office manager's father recently died at home with Hospice care. So, there is help out there when needed.

    My thoughts and prayers are with you too.

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  40. Thanks all. Has been a tough road.

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    Replies
    1. Sheeps,

      My thoughts and prayers are flowing your way too!

      Delete