Sunday, October 20, 2013

TO THE POWER GO THE SPOILS

And the power is at the very top. Benefit further down the pyramid will come into question as the 120 year Supercycle plays out. The maintenance of the game requires sacrifice and its strength depends upon its base. Sacrifice will always occur at its base, but the weakness of the system is ALSO at its base. For the power to grow, the base must expand and we are at that point now, that is known as the proverbial "rock and a hard place". We've sacrificed and squeezed the base for the survival of the power and in turn the system. We've created an expansion of the biggest bank's reserves, while draining the "reserves" of the base. Instead of deleveraging the base, we've piled more debt on many different levels of the base in a desperate effort to break out of essentially flatline velocity of money. 

I had an opportunity to visit with several bankers recently and realized just how rings within rings is effectively used to control the system. What impressed me was just how compartmentalized their information is. These weren't bankers from small firms, but from the very top of the pyramid. They weren't going to leak any secrets, but they did reveal some very interesting attitudes. Several were very angry at the Republicans for the recent shutdown. I was fascinated they actually believed the Republicans were responsible for initiating the shutdown. They were also fearful the Fed may begin withdrawing QE sooner than late. When I brought up the possibility of the Ten Year hitting breaking over 3% and forcing Yellen cough up 120 Billion/ month to keep the rates controlled they were caught off guard and seemed to have not considered that as a possibility at all. Mind you now...... they represented some very prominent firms. I did find it interesting that one of them talked about a mutual friend of theirs (once again at a prominent firm) that was going very far off the elite path with a doomsday scenario and was taking steps by preparing for it with guns, gold, and grub. They did not know I was in the same camp. These were all Yale, Harvard, and Wharton boyz......and going into the three Gs is indeed eyebrow raising in their circles. But it illustrates once again rings within rings within rings. 

Back to our trade. No indication with certainty anything has changed, but every day that goes by is a further depletion of physical silver and gold from the West. More sand leaks out of the West's hourglass and the day of reckoning. gl




24 comments:

  1. Hello everyone.

    I was away this weekend at a Medical Conference and they had a motivational speaker there. He gave a great presentation. Here is something he said that made me think of everyone here.

    "Nature may give you time,...but nature can never be cheated,...and nature can never be bargained with."

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  2. http://stockcharts.com/h-sc/ui?s=BRD&p=D&yr=1&mn=7&dy=0&id=p24740725475&a=319833991&listNum=1

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  3. Amazes me how much those guys love GOV...in spite of the fact that it can't even build a website with 3 yrs. and $500 Million. Procurement in D.C. is thoroughly broken. I go to NY too; talk about living in a bubble! Between D.C. and NY, it seems the brilliant ones are clueless. ;). One would think at least SOME of the effects of '07-'08 woulda sunk in. I guess they'll be going to the concierge practices that are currently charging $20,000/person up there. I have personal knowledge of this.

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    1. most likely Sister they built the front end consumer piece before the backend management piece including database/security/UI. 500 million is way to much money to spend on this....criminal in fact....could have been done for so much less.

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    2. sister ...many are clueless but there may be another factor at work......and that is you do not want to talk about these subjects......ESPECIALLY in these firms....so they would talk "peripherally" about it.......never directly

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  4. http://www.tfmetalsreport.com/blog/5171/run-bank

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  5. Pts. well taken...no followthru on gold again, when is opex for metals this month?

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  6. Please watch the Karen Hudas vid above I just posted....

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  7. http://21stcenturywire.com/2013/10/03/whistleblower-karen-hudes-how-the-global-elite-rule-the-world/

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  8. RIC is so oversold right now that I'm tempted to throw some gambling money into it. But I'm considering a trip to Reno next month. I'd probably have more fun spending it there.

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  9. http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/10/21_The_Financial_System_Was_Within_Hours_Of_Absolute_Collapse.html

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  10. Kli, the NY bankers HAVE to know this stuff. I wish there were a secure way for me to talk to you. Karen Hudes fantastic; God bless the few people who are willing to stand up and tell the truth! How can we verify that 49 of 50 state legislatures have petitioned for a Constitutional Convention? Unfortunately, most of the people I know are too "busy" to try to understand even one iota of all of this. I'm with Greg: they all (with very few exceptions) think I'm nuts so I don't talk about it. I sure hope I lve long enough to see her positive scenario.

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    1. Morning sista....back in an will catch up ......and sure they know more than they can tell BUT maybe not as much as we give them credit for.....remember the compartmentalization necessary to keep the pyramid working

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  11. Just finished watching both vid's Karen Hudes was extremely enlightening and some what hopeful, hope has been in short supply as of late.... John Williams on the other hand is accurate in his explanation, has facts and history on his side, just makes you want to dig a hole and bury yourself!

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  12. I watched the Karen Hudes video too. She has lots of energy.

    Just to note that SVM has been rising. If it keeps doing so, then this low will be higher than the previous low. A pattern of higher lows and then perhaps higher highs could be occurring.

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    1. http://stockcharts.com/h-sc/ui?s=SVM&p=W&yr=2&mn=11&dy=0&id=p84709160325&a=242549376&listNum=1

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  13. Check out the first graph I think John Williams is closer to right than most think......

    http://www.zerohedge.com/news/2013-10-22/if-you-believe-recovery-do-not-look-chart

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  14. Silver should touch 24.50 before a hard beatdown.......gold should take out 1360 intra day before hard beatdown.....hehehe......that is if THEY still gotz it.....i say they do

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  15. Epic beatdown on NFLX this morning:

    Open 387.84
    High 389.16
    Low 333.85

    Netflix, Inc. (NFLX)
    -NasdaqGS

    338.41 Down 16.58(4.67%) 12:11PM EDT - Nasdaq Real Time Price

    I was watching this thing pop 15% AH yesterday... then got to work this morning and had to rub my eyes.
    What a mauling of the longs.

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    1. hehehehe.......yup......lambs brought to slaughter

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  16. Amusing options action on NFLX today...

    Calls in the red:

    http://i.imgur.com/y0846IY.jpg

    Puts in the red:

    http://i.imgur.com/A8K5MUx.jpg

    I'm well aware expiration is Friday...I'm also well aware that the hedgies loaded up before earnings yesterday....
    But still... it's extremely rare to see a put option that skyrocketed to "in the money" down 25% in day!

    This game is so rigged... I have no idea why I play anymore.

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  17. "The real purpose of the stock market is to take your money"

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    1. I thought the purpose was to maximize the # of fools in the world!!!!

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