Sunday, August 20, 2017

THE BULL IS ABOUT TO GORE

Funny how depressed all of the traders are in the metal's trade. You would think the massive move in the miners off the 2015 bottom would have left the holders of these shares in a better mood, but sentiment has been destroyed. Maybe worse than the 2015 December bottom, and I thought that would be impossible to worsen. If you had bought and held in December of 2015, you would still be up a double or triple maybe more, depending on which miners you held. 


Mnuchin Visits Fort Knox, Says "Gold Is Safe"


Of course the better course of action would have been to sell after you had a 7,8 or 10 bagger last year. Of course most of us didn't take that course of action. What's more problematic is that many retail jumped on the miner trade after it was obvious it was well into its new bull market and have been crushed by the pull back. That is how a key sector bull market works. It does not want anyone on the trade that doesn't "belong" on the trade. They have NO intention of letting the dogs get a bone on this sector. It will be a cold day in hell before the give you a CRUMB off of this table. 




I'll stick with my pathetic strategy of staying long in this sector and will take everything the boyz throw at it, but I'll take my chances compared to owning the ponzi pump stocks like Uber, Netflix, and Amazon. I also think the digital currencies will have a future but right now I smell a lot of pain for this tulip trade so beware.

Just remember how quietly and how powerful the initial miner move was in 2016. It wasn't until well into the move, that you really started hearing noise on the miners. Stay tuned. If you have to play paper, you're early in this bull move, so enjoy.

Sunday, August 13, 2017

THE BIG CON

In one word its all about CONfidence. According to Chaos theory something as small as the flutter of the wings of a butterfly halfway around the world can cause a typhoon to form on the other side of the globe. Its been all about preventing any hurricane to develop in our financial system and that begins with the most important aspect of a fiat or CONfidence based system. That little piece of debt paper that is used in billions of daily transactions globally, that is backed by just one thing.......CONfidence. CONfidence that the government/private cartel that issued it will actually be there during the immediate future to "stand good" for it to purchase goods and services. In other words, you can CONfidentally "hold" it for a "reasonable" period of time in your possession.


Bitcoin Cash Soars 70% Overnight Amid Bitcoin Uncertainty & China Crackdown



Gartman: "This May Be One Of The Most Important Days In The Future Of Equity Markets"....LOL






Wasserman Schultz IT Staffer Indicted By Grand Jury On 4 Counts

Bitcoin Blows Through $4000 As Asian Demand Soars


Therein lies the rub. Our fiat dollar relies upon this very fragile word. Our entire media has lined up since 2009 stating every five minutes  that we are in a recovery. With painstaking care they have avoided tripping a trigger to the meme of recovery. Its comical to watch a multitude of the same worn out pundits trotted out to extoll the virtues "financial engineering" for corporations as if this was the best thing since white bread instead of what it really is and that is pure fraud. 




We perpetuate CONfidence in every aspect of this massive debt bubble that has been created. Our "all important" monthly NFP jobs report is a complete fraud now. There has been very little improvement in actual full time "good paying" jobs since the collapse in jobs in 2008. We've created a lot of mediocre paying part time jobs and we've rigged the numbers with the "birth/death" adjustments to suit the needed outcome that months. One of the largest employers in my area is a massive outlet mall and I drove through it yesterday and it looked like Armageddon with 60 store closures and more to follow. Very eery to see big brand names like Ralph Lauren shuttered.


Dudley Warns "Market's Rate Hike Expectations Are Unreasonable" Sending Yields, Dec. Odds Higher........LOL


We send out a barrage of Fed speakers touting future "rate hikes" saying the "economy is strengthening"......even though we continue to bleed good paying full time jobs. "What will the Fed do next" dominates Bloomberg and CNBS. Its no longer a "soft peddle" for the next best investment idea. Its all about the Fed and what THEY will do to goose the juice. Its only about the juice.


Gut Check: Take Tums to Work as Gold Just Broke $1300 with HEAVY VOLUME


Ignore the long bond pays 2%. You wanna buy a boatload of these babies don't you. Just load up on these stinkers for the long haul with dollar devaluation a certainty. I like to call it the Trifecta investment. 2% annual return with a sinking bond price and a long term dollar devaluation/inflation. How can anything go wrong? 

Its all good. Keep listening to the music.





Sunday, August 6, 2017

ITS GETTING WONKIER AND WONKIER

How much more bizarre can this get? Elon Musk is bleeding over a billion in cash a month and his stock is through the roof as he now lowers prices on his shitty selling cars. You're bleeding cash losses and you LOWER your selling price? Many of the top manufactures of cars are getting ready to roll out electric cars that will crush Tesla and the malinvestment just rolls along.  Free money and government subsidies will keep this pig on life support until the plug is pulled. Its the same way in all of the FANG type of stocks and it will not change until the free money stops. As this money sloshes within the banking system it MUST FIND A DEBT VEHICLE TO GO INTO. Therein lies the great illusion. 




Here is the dirty little secret and it is CRITICAL to the game. They must find debt vehicles that DO NOT affect inflation. In other words they have to delineate which areas of business/economy and the equities market they let money flow into. That is one reason money flows into ETFs from the banks instead of general market stocks. They also invest in individual equities BUT only in equities like Apple Google etc that have minimal leakage into the overall inflation metrics. They are creating enormous bubbles in joke stocks like NFLX that have almost zero effect on inflation. That is key to their game. Increase debt and asset prices while keeping real growth in the economy slow and keeping inflation looking tame. Its stagflation of course but it appears to be "controlled" stagflation. That keeps the game going and CONfidence in the fiat currencies, while the middle class are slowly bled and the poor class grows larger.  


Trump Escalates War Of Words With N.Korea: "Things Will Happen To Them Like They Never Thought Possible"



Two-Thirds Of Americans Say North Korea Poses "Very Serious" Threat ...LOL


Remember that the stagflation of the 1970s produced a 25.5-times increase in the price of gold and 38-times increase in the price of silver.  Stagflation is gold and silver’s best friend in terms of relative price performance.  It’s just a matter of time before the next leg of the secular bull market in gold and silver begins to take off to the upside in earnest and all that is required is patience. KWN

Meanwhile the the future of  the baby boomer generation bleeds underneath the surface as pension funds are more and more underfunded and exposed to a major reset. No one pays any attention to this "elephant in the room", but they will. Its another "unavoidable" reality.  What will compound this problem will be the collapse in the dollar and the subsequent inflation that will accompany the collapse. You may even have some "bailout" by the government on your pension. Maybe they'll give you fifty cents on the dollar. Your response may be, okay I can get by on that. BUT what do you do if the essentials are now costing you double or triple. You are getting 20 cents on the dollar in reality on your pension. Now that becomes a problem. AND THAT is only if we get stagflation. Hyperinflation would mean your pension is 
worthless.


"We Can Barely Keep Up" - Prepper Panic-Buying Begins As WWIII Fears Grip America



Wells Fargo Says It May Find ‘Significantly’ More Fake Accounts


So don't get distracted by the Fed saying they want to reach inflation of 3% or whatever. They don't. They want EXACTLY what we currently have and that is exactly why they are trying to raise rates currently even though the real economy is putting up slowing growth numbers. They aren't trying to land this big plane on a little aircraft carrier......THEY are trying to keep us ON the aircraft carrier. They could heat this up and hit their target in a heartbeat. They have zero intention of changing the current strategy. Like Dillon Ratigan said...... Its a giant wealth extraction scheme. Of course the BIG problem for them is their debt and that cannot be serviced if interest rates cross the 4% number. All this massive debt starts imploding.

They're developing a tighter and tighter control grid with the passing of every year now. They're readying the digital gulag and preparing for an Artificial Intelligence driven existence that keeps everyone on the gulag. They'll keep the bread and circus going and the constance diversion. They'll play out the Trump circus until they shift to the next RINGMASTER. You're in the circus so I suggest you enjoy yourself while you make serious preparation for its transition. It will change. It will breakdown. They know this is not indefinite. They know they have to change their host. They're a parasite on you and they know you will die one way or another. The TRANSITION is what you have to be preparing for.  It is the moment when you hear the phrase "no one could have seen this coming".  LOL ... well YOU did.