Thursday, May 20, 2010

Global Economic Armageddon?

Bloodbath sums it actually quite nicely -
The correction, soon to be crash, is here: the market had a bigger relative open to close move today than it did on May 6. We closed at the day's lows on massive volume, despite definitive central bank intervention, regardless whether it was the SNB, the ECB, or the Fed. The central planners have lost control of the market, and all thanks to the inevitable collapse of hyper capitalist Keynesianism coming out of the formerly most communist country in the world. A day of ironies. And it's not over. Futures are already down another 4 handles. The correction is coming, and it will be a bloodbath. The Fed can not push rates lower. It will print. It is inevitable. It is our destiny.
The Real Effect
Time is running out and the animal spirits are beginning to succumb to the rock solid laws of supply and demand. Keynesians, you can't outrun, outprint, or outspend the market laws and sooner or later they're going to catch up with you and scalp you.

I can see the history books now - "Experts disagree over whether Obama spent too much or not enough to stimulate the economy." It's the DEBT dingbats! If you ignore the debt, like the dread pirate Roberts it will come for your soul.

Anybody notice the plethora of wars starting - Mexico, Afghanistan, Iraq, Pakistan, Korea, Israel, Lebanon, Syria Gaza, Iran. It's like they planned this. Let me see...World War I, World War II, eureka!

Tomorrow should be a very revealing day, my guess is that it will be the reckoning day.

European Wave Gathers Intensity

The economic tidal wave is building strength -
How bad is it? Up Issues on the NYSE is at 3%. Only 2 other days since 1950 were worse, 9/26/55 and 10/19/87.$

It’s not just American markets feeling the pressure today
  • France’s CAC 40, down around 2.7%
  • Germany’s DAX, down around 2.9%
  • UK’s FTSE, down around 2.5%
  • Spain’s IBEX, down around 2.5%
  • Italy’s MIB, down around 2.5%
  • Portugal’s PSI, down around 2.8%
The Real Effect
What we are witnessing is going to be talked about in the history books for millenia. There is a fundamental change in the way the middle-class and below of the world view the world. An "enlightenment" if you will. Here is the crux of the problem though. The globalists understood that the sheep would wake up, in fact they anticipated and planned for it by naming it the IMF riot. The relevant question is, who can outflank who here? Will the people get to the globalists before they are able to pull the trigger on the full police state?

Look for capital to fly from asset to asset, looking for a safe harbor, yet there is very few left to be found. As I write, Japan is getting savaged. So they look to gold to save the day, yet the ETF's are fraudulent as well, which ends up skyrocketing the cost of gold. Ladies and gentlemen, the fireworks haven't even started yet.

Tuesday, May 18, 2010

How to Prevent Citizens from Seeing Their Congress Critter? Claim His Office is Private Property

Moment of Truth - Rand Paul for US Senate

Kurt Nimmo chimes in on Rand Paul's apparent shoo-in for the Kentucky Senatorial seat -
The Public Policy Polling survey conducted May 15-16 shows Mr. Paul leading Mr. Grayson by 52 percent to 34 percent with three other candidates splitting 7 percent and 7 percent undecided.
Grayson, who is the neocon favorite and Kentucky’s chief elections official, said Paul is overconfident and could be disappointed when votes are counted Tuesday evening, according to the Associated Press on May 17. Grayson is confident he will win even with Paul’s substantial lead.

In March, reported on the possibility of vote rigging in Kentucky. The Paul campaign complained about Grayson’s conflict of interest as the state’s top election official but the Kentucky Executive Branch Ethics Commission did not consider it important.
 The Real Effect

Several points that need to be considered -
  1. Rand is 18 points ahead. The day before. This is a no-contest.
  2. It is too late for a "game changing" revelation.
  3. Grayson is in charge of the election.
  4. For all those who say that Ron Paul was not viable. Shame on you! No, double shame on you!
If Paul ends up losing, something is seriously rotten in Denmark. A lot of the future will depend on contests like this. If he wins, Paul will have a serious bully pulpit to do some hardcore thrashing of Keynesian ideology and galvanize the Tea Party movement towards bigger and better things.

    Thursday, May 13, 2010

    States Going Belly Up Part 8 - The Panic Seeps In

    Fallout intensifies for The Dutch, Greece, Thailand, and most importantly the U.K.,

    Perhaps what is even more compelling is what is happening closer to home. From New Hampshire -
    The state’s budget deficit gap has widened to a projected $290 million and thus far state House of Representatives budget writers failed to come up with enough proposed revisions to erase the entire deficit.

    Numbers released Tuesday by the Departments of Revenue and Administrative Services predict a $200 million shortfall in revenue this biennium. The governor had estimated revenue would come in about $130 million short. But when adding other factors, such as the loss of money from the Joint Underwriting Association’s medical malpractice fund, the total budget shortfall that the state is facing could be close to $290 million.
     Nebraska -
    At least one state senator believes a special budget-cutting session looks more likely, with Nebraska tax revenues falling $56 million behind projections for the year to date.But other state officials saw a few glimmers of hope in a report released Monday on April tax revenues.
     Kentucky -
    The Office of State Budget Director reported Monday that revenue to the state General Fund was 5.4 percent below the level for April 2009.The General Fund took in $782million last month, compared with $826.7million the previous year.
    And the grand daddy, California -
    The state's expected revenue from personal income taxes fell about $3 billion short of expectations in April, prompting concern about further state cuts as the governor prepares to submit a revised budget to the Legislature.
     The Real Effect
    Not only are the States broke, so are the ones that actually pay the bills, the taxpayers. Hence lower revenue. Who wants to bet that this is only going to get worse?

    Look for States to get desperate as the lines get drawn in the sand. With increased pressure on the States to balance their budgets (Oh the horror!) and the plebs being instructed to make double the bricks with less straw, the US starts to resemble the situations over in Europe more and more.

    The first move which is already more-or-less occurring is for States to cut "essential" services in an attempt to cajole the populace into being generous. But the serfs have had enough and won't tolerate much more cutting. So the game of chess continues with States enforcing ever increasing "voluntary" fees. Of course, should the serf not pay said voluntary fee, there is always a nice cell waiting for him.

    Knowing their back is up against a wall, look for States to start to moan to the Feds about a State emergency fund similar to Europe's. Except, this ploy won't work either. After all someone has to pay the piper and the globalists seem to feel it's you.

    But this is exactly what the IMF and globalists want to stoke the riotous fires at home.

    Wednesday, May 12, 2010

    Carnage...Rumors Fly

    According to Zero Hedge - has sparked rumors that Germany will leave the Eurozone and reintroduce German Marks, sending gold to a new record of $1,244 and silver to a multi-year high of $19.64.

    In a literal translation Gysi did not say that Germany will reintroduce the Mark but made a curiosity-inspiring statement, saying that there may be some very important news that will be announced on Friday.

    He wrote he will publish a picture of the new Marks on Thursday morning. He also said the currency change would happen this weekend with German chancellor Angela Merkel scheduled to give a speech to the nation on Friday evening.  
    As we see the rapid destruction of the next fiat currency - all of them have failed in the past 3 centuries - rocketing precious metals prices prove once more there is no other safe haven when the going gets really tough.
    At home we have an Air Force Base being locked down an errant satellite, gold exploding to all time highs, California melting down, 40 million on food stamps,and rumors of North Koreans targeting the Deepwater Horizon with torpedoes.
    With all of this hot on the heels of the stock vaporization on Thursday, it is definitely an interesting time to be alive.

    The Real Effect
    Keep your eyes open folks and get to the bottom of every story. These are the times in which the world's "rules" are rewritten by the victors of the upcoming war. And if you think the insanity stops there, well, you better rethink your position.

    A Nightmare on Wall Street

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    Peter Schiff – Bailout American Style

    Tuesday, May 11, 2010

    Spend a Trillion, Nothing Changes

    Karl Denninger quickly and accurately describes the problem -
    The "currency speculators" - cough - BANKS that were shorting the hell out of the Euro.

    Let's see if I can figure out what's happened here.
    1. Banks shorted the Euro, (correctly) surmising that Greece, Portugal, Spain and others can't possibly cover their debts.

    2. The ECB freaks out as the Euro heads toward PAR and calls "emergency meetings" (forgetting, I might add, that the Euro traded under PAR not that long ago.)

    3. The ECB and Eurozone decides to "defend" the Euro with €1t in "defensive measures", including buying bonds of bankrupt sovereigns (gee, that's nice - monetization by another name.) Since the ECB and EuroZone cognescenti is of course connected to the large banks in Europe (including France, where Sarkozy is located) these banks know to back off on Friday (notice the nice little uptick?) to lock in their bonuses from these insanely-profitable trades against their own currency.

    4. The very same banks, including the ones in Sarkozy's back yard, see the very nice spike and short the Euro even harder, (correctly) surmising that they have successfully stuck the gun up the nose of the ECB!
    Rinse and repeat until you have all the money.
    The Real Effect
    Whaaat? Throwing a trillion at the bankers didn't fix it? Who would have guessed?

    Gold and silver are breaking out above their highs, the Euro is still falling and the elite have 1 trillion more. Isn't this THE definition of insanity?

    Look for massive volatility as the "market" convinces the "government" that they need MORE money. Meanwhile, all the money that is being thrown at "the problem" isn't actually doing or going towards what our "elected" representatives tell us it is. The correct term for all of this is FRAUD.

    What the banks are selling their customers is fraud, what the representatives are doing with the criminal cases is fraud, the reasons for taking your money are fraudulent, and when everything is predicated upon fraud is it any wonder their is no confidence in the system?

    Look for the situation to continue.... What? It's going on already!?!

    Thursday, May 06, 2010

    Market Seizure, Europe Enters the Storm

    The financial storm hits with full force -
    Greece’s fiscal crisis took a new turn to violence Wednesday when three people died in a firebomb attack amid a paralyzing national strike, while governments from Spain to the U.S. took steps to prevent the widening financial damage from hitting their own economies.

    US markets are getting killed and overseas they're getting slaughtered. Wait, the market just took a headshot with the Dow down 8%! Gold is over 1200.

    To make matters worse, the 'contagion' has already spread beyond Greece. Primarily the UK is the recipient at this moment as reports indicate it's budget deficit will hit 12% of it's GDP.

    The Real Effect
    Looks like 2008 all over again. Told you so.

    I believe that we will witness a somewhat separated/isolated stage in Europe for a little while. (A month?) This will place the EU debt crisis ahead of the US debt crisis. I believe the meltdown will be fast, vicious and 'unforseen'.

    Vox has a great article up on Capital Controls in the EU which may help to illuminate some of this position a bit more.

    Like a cat this market has nine lives, the question is, which one are we on?

    Wednesday, May 05, 2010

    Times Square Bomber Thoughts

    McCain proves he's a hack when discussing the bomber -
    "Don't give this guy his Miranda rights until we find out what it's all about," McCain added during an appearance on the Imus show, which is broadcast by the Fox Business Network.

    McCain's remarks echo Republican complaints in the aftermath of the attempted bombing of a flight en route from Amsterdam to Detroit on Christmas Day, when Umar Farouk Abdulmutallab, the suspect in that case, was immediately Mirandized and given full criminal rights.

    Republicans say that suspects like Abdulmutallab and potentially Shahzad should be classified as an "enemy combatant," which gives authorities more leeway in seeking intelligence through interrogation and other methods.
     So which is torture? Interrogation or "other methods".
    McCain said Shahzad's apprehension "gives you a little encouragement about the improvements we've made since 9/11."
    Improvements? What would those be McCain? As if that's not enough, there's this story out of New York -
    New York officials say they could stop attacks like the attempted Times Square car bomb by expanding a controversial surveillance system so sensitive that it will pick up even suspicious behavior.

    But Saturday's failed terrorist bomb in the Times Square tourist hot spot has provided the authorities with a new argument for expanding a sometimes controversial security blanket of cameras, sensors and analytical software.

    The system "will greatly enhance our ability and the ability of the police to detect suspicious activity in real time, and disrupt possible attacks," Mayor Michael Bloomberg said Monday.
     The Real Effect

    Has anyone else here noticed that there is a direct correlation between the nature of the police's response to an attack and the relation of the timing of the attack?

    For instance, if the police are talking about future attacks, their "tools" are insufficient and they cannot be held responsible for anything because they are ill prepared.

    Yet if they receive these tools and an attack does occur, they are not responsible because there is a bigger, "better" system out there somewhere that  could have stopped the attack, but woe is them, if they only had it. Sadly it reminds me of our educational system and the whole stinking problem.

    Throwing money alone at problems never fixes a thing and many times it makes the situation worse. This cycle is by no means even started yet as all sorts of idiots from all across the world will "declare war" on policy (just as dumb as the war on terror) and use idiotic tactics to make a non-salient point.

    Did I mention that this covers government as well as "civilians"?

    Keiser Report meets Schiff Report

    Tuesday, May 04, 2010

    Depression Reminders

    The Market Ticker takes us for a stroll down memory lane, circa 1931 -
    "Financial storm definitely passed." - Bernard Baruch, cablegram to Winston Churchill, November 15, 1929
    "I see nothing in the present situation that is either menacing or warrants pessimism... I have every confidence that there will be a revival of activity in the spring, and that during this coming year the country will make steady progress." - Andrew W. Mellon, U.S. Secretary of the Treasury December 31, 1929
    "I am convinced that through these measures we have reestablished confidence." - Herbert Hoover, December 1929
    "[1930 will be] a splendid employment year." - U.S. Dept. of Labor, New Year's Forecast, December 1929
    "For the immediate future, at least, the outlook (stocks) is bright." - Irving Fisher, Ph.D. in Economics, in early 1930
    "...there are indications that the severest phase of the recession is over..." - Harvard Economic Society (HES) Jan 18, 1930
    "There is nothing in the situation to be disturbed about." - Secretary of the Treasury Andrew Mellon, Feb 1930
    "The spring of 1930 marks the end of a period of grave concern...American business is steadily coming back to a normal level of prosperity." - Julius Barnes, head of Hoover's National Business Survey Conference, Mar 16, 1930
    "... the outlook continues favorable..." - HES Mar 29, 1930
    "... the outlook is favorable..." - HES Apr 19, 1930
    "While the crash only took place six months ago, I am convinced we have now passed through the worst -- and with continued unity of effort we shall rapidly recover. There has been no significant bank or industrial failure. That danger, too, is safely behind us." - Herbert Hoover, President of the United States, May 1, 1930
    " May or June the spring recovery forecast in our letters of last December and November should clearly be apparent..." - HES May 17, 1930
    "Gentleman, you have come sixty days too late. The depression is over." - Herbert Hoover, responding to a delegation requesting a public works program to help speed the recovery, June 1930
    "... irregular and conflicting movements of business should soon give way to a sustained recovery..." - HES June 28, 1930
    "... the present depression has about spent its force..." - HES, Aug 30, 1930
    "We are now near the end of the declining phase of the depression." - HES Nov 15, 1930
    Then there was this little "event" in 1931.