As in ready for the next leg down in the Supercycle Deflationary collapse. We've been at this illusionary stage for over five years now and after infusing a minimum of 40 Trillion into the global economy we've reached the edge of the cliff again and starting to slide over. Objective data is such as top line company revenue is contracting and the next wave of U.S. layoffs are beginning and will only add to our "real" unemployment of roughly 14%. If you add in the fact that part time and workers that have just given up then the number goes over 23%.......that my folks is a DEPRESSION! Never mind the printed fiat sugar buzz you've been sucking up like there is no tomorrow......because there is. Its here now and its coming faster than you can imagine. It will "come out of nowhere"...and "no one could have seen it coming".... Except this time we're not going to get an easy fix of trillions to get us back up off the deck. Each new round of QE has been less and less effective as even a "massaged" GDP slips ever so slowly into the abyss. The key indicator of recovery however is Velocity of money and that number is so bad that ex-Fed gov Larry Meyers looked stunned when asked by a Bloomberg interviewer about it and then laughed and pretended he didn't know what it was.......realizing even the reporter was not buying the answer he tried to mitigate its importance as being irrelevant in modern economics. Anyone that understands economics knows the velocity of money is not only relevant, but is key to prosperous, growing economy.
We're entering a very critical juncture in the ponzi. This is the part where the Fed proclaims the economy healed and the road to recovery so strong that the Fed money printing can begin the process of winding down with the "taper". I thought they could do it and I still do......BUT not because the economy is healing, but because I thought they would have enough manipulative statistics to pull off the final CON.......the illusion that the QE has worked so well to this point that they can decrease it AND raise rates with the spread giving the banks the needed profit potential present to unleash lending from the accumulated "reserves".........and "Magic" we have the velocity of money once again rising with confidence.....that my friends is the GAME....the PLAN....and finally in my opinion the CATASTROPHE ......as it all falls flat on its face. I am not even sure they can pull off the illusion of announcing tapering beginning in September but my bets are they will announce it in September........EITHER way, whether they announce it in September or NOT.....we get a serious set back to the market. By the way if the jobs report for August is neutral or better then they will announce tapering.....its the only thing that would prevent them from it. Back to the market, gold and silver....Market starts correcting and gold and silver (physical) remain the place for safety as the desperate play to prevent its rise during the past year backfires as precious physical metal no longer exists for the cover of the naked paper shorters.....game over. gl all the next two months should be doozies.... For those of you that read this blog and are suffering, my heart goes out to you and your family.....to those of you entering this historic time my heart also goes out to you and I hope you can remain strong and lead not only your family but others in your community through this period. We all will change.