Saturday, April 30, 2011

The Fiat Ponzi

The fiat ponzi is such because there is no underlying collateral backing the monetary system which would then back the financial system.  The underlying asset, which is gold, is not up for subjugation, for it has not been used as trade for bonds since Nixon relegated only dollars to pay for debt.  The fiat ponzi started with Delano Roosevelt, who negotiated that Americans need not rely on constitutionally backed monie.  In order for the US monetary and financial system to be appropriately called a ponzi, the underlying asset would be up for grabs.  It is not, because no one even knows if there is gold to be had.

The gold vaults of Ft. Knox and the New York Federal Reserve were last audited under Eisenhower.  There is a great possibility that there is no gold in the vaults, and that means there is no underlying asset that supports the US monetary and financial systems.  Once again, there must be an underlying asset for a ponzi to be such.  That is why the current system is better named a fiat ponzi.

Friday, April 29, 2011


Well looky there!  Platinum decided to break out, and gold went for the ride.  Silver has made such a run in the recent weeks that it has already gotten ahead of its sisters.  The Trinity has begun the next move. 

It was a little disjointed, with silver breaking out big, and gold following in tow.  Platinum being the least popular, was not asked to dance until now.  Watch her shake her groove thing.  Platinum is monie, just like her sisters. 

My targets, which I expect to hit by the summer solstice, are as follows:  Gold to $1850, platinum to $2200, and silver to $57.  This is what I have called the next move.

Thursday, April 28, 2011

DXY 66

The dollar has hit every stop on its way to its low, giving forex investors enough hope for an upside to hold out on a rally.  The rhetoric is that the Euro should be as weak as the dollar, but the Euro is not the reserve currencie, and in this climate, it will be the overweight reserve that falls hardest.  The current and on going economic collapse may drag all fiat into the depths of oblivion, but this only means the dollar will take the brunt of it.  The world relies on dollars, so if the world has failed, so has the dollar.

Economics is, like the people that promote it, a lie and lying, or misinformed and stupid.  Either way it is does not matter though, because the end result from a lie and or being misinformed is that reality unveils the truth.  The truth is that fiat is a ponzi.  This ponzi is chomping at the bit.

The decent will remain steady for a minute longer, as the deck chairs are rearrange to better suit the players, but in the end, the ship is going to the bottom of the ice cold ocean.  It will not be only the dollar that fails, but the dollar provides the greatest consequence.  The world relies on dollars, and when the dollar gets washed out, so will finance.  The IMF and World bank will step in with a solution to the problem.  There solution will use gold to back any currencie idea they have.

The world will become restless when the DXY breaks 70, which will happen around May 6th.  There may be a pullback in May, but by the summer solstice the dollar will be near its absolute breaking point, DXY 66.  It will be at DXY 66 that the levy breaks, and States begin to dump the dollar effortlessly.  They have already said what they will by; goods with real value- precious metals, oil, and corporate debt and equity.  This way they have something for the dollars.

Will contracts be broken?  Will the President's Working Group actually own corporations outright?  Well, China and other communist States already own their corporations, so I do not think that the Federal Reserve and its proxie banks owning corporations by proxie is out of the question.  Remember, the dollar was set up to fail, as to usher in a brave new world where corporations officially rule over governments.  It will be fascism unveiled, and it will likely be revealed to all this summer.

Wednesday, April 27, 2011

Swan Lake: Europe

Europe has had a long history of succumbing to futile lords after achieving great strides in wealth creation, if that be philosophically or financially.  Its Whiteness is one of blinding light, where memories of past broken trusts were forgotten in favor of  promised future gains.  Europe is the epitome of why not to trust private banks.  A society can accumulate wealth, and reinvest for the future, but if the proxie government is in charge of the funds, and usury is being used to compound growth, then the result will be failure, because along the way the system will pick the pocket of the first investor.  Banking is nothing but a ponzi scheme.  Loans can facilitate growth, but when those in charge are most concerned with making profits for themselves, there will be nothing left for the initial investors.

The governments of Europe have consolidated many interests into one objective- a united front.  Yet this united front has many characteristics, and agreement is few and far between for the group of States.  The various lands have different assets, and therefore different opinions.  The last thing Europe should have been concerned with was uniting these vastly differently lands economically.

A promise to pay is an IOU, and this is what the finance system of Europe owes the people.  The money invested in the banking system was spent, thus why the bailouts were needed.  Since Europe bailed the banks out, the people own the large share of the bankrupt banks.  If saving the banking system was the goal, the goal was short lived, as the system was filled with holes.  Europe has spent its future on saving a boat that will inevitably sink.

The world of finance has been treading water with the appearance of growth thanks to steady inflation since the inception of the dollar.  Along the way, various banking industries under the guise of States have developed like fiat currencie.  These currencies accumulated wealth and spent it out on goods that have no long term value.  Their value has steadily eroded as inflation took its immanent toll on the fiat.  The Euro is a prime example because like the dollar, it holds no value, and any movement spent on maintaining its stability is one of waste.  Europe has been and is wasting its future trying to hold up a system based on the fiat ponzi lie.

As of now, value of various currencie is judged by comparing one fiat to another.  This is a logical fallacy, as they are all worthless.  The comparison keeps the world of finance turning, but once the truth is unveiled, and that is fiat is only a debt instrument and not a store of wealth, then the ponzi will get crushed once and for all.  Europe is all in on the game, and this bet will turn European finance on its head.

Monday, April 25, 2011

The Black Box

Everyone has one.  What, you don't?  You don't have a Black Box?  You don't have a machine run by algorithms to pull naked sell bids to hit the price you want?  You don't have the ability to manipulate the buy side with ghost orders to create demand?  How do you trade then?  You must have some gift, or an inside source.  Think I am joking?  Everyone has a Black Box.  Everyone.

You know Goldman Sachs has one, if not many, and the same goes for all other Major trading firms.  But did you think that the President's Working Group on Financial Markets has one?  Oh, but they must!  How else could they stabilize the markets?  To stabolize, or rather, run the markets, they have to have the finest!  And if the US PWG (President's Working Group) has one, then surely the Japanese PWG has one.  And if Japan does, then China does.  And if China does, Russia does.  And if Russia does, Europe must!  And if they all have them, then the House of Saud has to, too.  You still do not have one?  Too bad for you!

Africa probably has one made in the 90's they bought on the black market; come to think of it, that is probably reason number three for the escalating war with Libya (behind  1. oil and  2. gold reserves).  Brasil probably bought their's used from Russia a decade ago, so everyone has one.

Seven tenths of all trading is done with Algorithmic Black Boxes.  The Black Box uses Algorithms programed by the smartest Neo Keynesian bachelor of science math majors alive to drive prices through tops and bottoms as to buy low and sell high.  These machines, the Black Boxes, use these programs to  manipulate supply and demand.  They are the essence of market manipulation, and since manipulation is in vogue, everyone does it.

The PWG runs, or rather stabilizes the markets, and where they leave off, GS, JPM, Japan, Europe, and China take over.  So if they are going to trial the PWG's moves, how else could they trade?  Everyone has a Black Box.  Everyone.

Trinity's big Pullback

Platinum hit the top of its range and pulled back.  No surprise there.  It took silver and gold with it.  No surprise there.  The Trinity's pullback was quick, and moved back into the middle of the daily range, which means it was painless for all PM investors, as well as for Black Boxes, Major, Chinese, and otherwise.  Once again, no surprise there.

The Trinity began to break out last week with platinum moving to resistance last night.  This was a move that was on deck for weeks, as platinum had not tested resistance for what seemed like forever, considering that silver had the most epic breakout and gold broke a psychological level of $1500.  This is a definite signal, and I think that the bell was just rung to start the Next Move.  Of course, just as any other move, it starts with a final pullback.  I think the Next Move is at hand.

I think in the next few days we will see platinum begin a move to $2200 and it will bring gold to $1650.  Silver is on something else, and I am not going to put a number next to it, other than that $250 per ounce is not out of the question before the year is over.  For the near term, I will put it this way; if Jim Rogers is going to liquidate his silver position, which I assume to be heavily weighted with paper contracts, at $150 per ounce, then soon Jim Rogers will sell his silver.  Soon....

Swan Lake: China

China should have never begun to participate in the finance system the way it did for the last forty years.  They may have made great strides to compete with the "First World" States, but the harder they come, the harder they fall, and considering the expectations that China will be the new global leader will cut them down to size.  China runs off of the same paradigm as everyone else:  Slave wages for the poor, a police state system, and a fiat ponzi of epic proportions.  They owe all of their wealth to the dollar, and the dollar being nothing means they have no wealth.

China's finance ministers have played the game with precision, but when anyone plays a game without rules, they will get burned.  China went along with the Fall of '08 because it created the opportunity to buy precious metals on the cheap.  It also gave them time to lesson their dollar reserves on a real basis, as the dollar has lost a lot of its value over the last few years.  Real estate in China is falling at an epic pace, and China really has no other viable investment other than their corporations that mine and drill oil all over the world.  Their military is on the up, but if war was ever to solve any problems, then only doom is the saving grace of humanity, and what a bleak picture that will be.

China has tried to pull out quite and slowly of the fiat ponzi.  There will be a point where they will try to run, but their gold reserves per capita is still very low, and this will be the key to backing their currency, the Yuan.  They could make a play at silver, but any big move to precious metal will crush their dollar holdings, and if they are to blame for ending the dollar, the world will look at them as the antagonist.

China, like all other States, is in a lose/lose situation financially.  They have no means to their ends, and they have hit the proverbial wall of finance.  Their partnership with the "Free" World is over, but not officially.  Whatever their next move will be could end their and the worlds fiat ponzi game.

China has also used an amazing amount of posturing without any dramatic follow through; considering the art of war, this would mean China is very weak.  Minimal rate rises and threats of selling dollars,  among other things, have brought no change in policy.  This shows China's weak hand.

In the mean time, they will have to quell riots, food and wage riots, and try to maintain a social structure that is pathetic at best.  The people of China have suffered as long as any, and they are rebelling like Africa, but because China has the web and press sanctioned, it is hard to report.  This does not matter, as the house of cards has crumbled, and the Empire lies naked.  China decided long ago t participate in the Emperor's ball, and they too dance naked.

Sunday, April 24, 2011

Swan Lake: Middle East

Like Africa, the Middle East has been a point of turmoil for decades, led by a lone Jewish State amongst a brethren of Muslim ones.  This turmoil may have been ongoing without the mentioned Jewish State, as the different sects of Islam do not always get along, but it brought brimstone and fire to a region that was nothing close to stable.  The lack of stability comes from the dominance that the "First World" had over it for decades.  The time of trying for foreign dominance is hardly over.

When oil was discovered in the Middle East, the Anglo-American Empire were quick to act and lock down the fields.  This lasted to in between the World Wars when it was established that the Middle East would be controlled by proxie.  Trillions of dollars have been given by the Anglo-American Empire to keep a thumb on the land.  This is still ongoing.

If it was Iraq, or Egypt, money poured in to the respected Nation States so too keep the oil trading for dollars, and to keep a foreign reliance at hand.  Weapons were traded, secrets were given, and all throughout money was made by the elites of the area, along with the elites of the Anglo-American Empire.

This was true for Israel as well, a State that was started after World War Two had ended to presumably relocate people to a place where they would be free from turmoil.  This of course was far from what would happen, as it has destabilized the region many times over.  It was the Anglo-American establishment led by such elites as the Rotheschildes that hatched and funded this plan.  If they thought it would create peace, well, we would have to ask them, but as a guess judged by their character, the answer is no.

Israel was directly funded by the Anglo-American Empire, while the other countries were given diplomatic aid.  Israel was given nuclear war heads, while the other countries were given lessor missiles.  This was done to undermined the Islamic States, but to also keep the fight on.  Economically, the region fared poorly, and now, like other "Third World" States, the lower classes are at the whim of rising food prices.  This has created the utmost of instability.

The region remained an enigma during the course of the last century, but now it descends into chaos, just as any land does when oil production lessons.  Last year the world swing producer, the House of Saud, lowered its output for the first time ever.  The are using saltwater to pump out the crude, which is neither light nor sweet.  The low hanging fruit has been picked.  Judging by history, when a State lowers its oil output, like the USSR did in '89, its economy goes to shambles.  Since this State was a leader for not only that area, but for the world, for better or worse, the worse is to be expected.  The oil revenue must be made up, and with demand stable if not rising, higher prices are on their way.

This Black Swan will be the crux of all others, as oil is the lifeblood of the economy.  All States are reliant on Middle East oil, and like it or not, they are at the whim of the Middle East.  The others States may make threats, and may implement action, but it is for nought, as the oil will never be seized by the Anglo-American Empire by way of war.  It will also not be seized by the fiat ponzi, which will crumble in the wake of peak oil.  This Black Swan is the trump card.

Saturday, April 23, 2011

Swan Lake: Africa

Although not a true Black Swan, as many knew higher food prices were coming due to 1) speculation on a weaker dollar, ii) a weaker dollar itself as the falling worth of the said dollar increases input costs, iii) crop failures, and  iv) peak oil, the African Black Swan has surprised many, because most people (and this is the criteria I will be using to define a Black Swan because, as an example, some people, though very few, knew that major earthquakes were coming) were not aware that higher food prices would soon descend on the world.

Food prices have great volatility due to crop failures and the like, which is why neo-Keynesian economics does not include them with core inflation.  The price may go up one year on oranges if a large crop freezes over, but it is not every year that nature ruins a particular crop, and the weather never kills all foods.  So then the reigning economic theory has a fair enough assessment to not weight core inflation heavily with food prices, but it would be best to have a weight, even small, for food in the core inflation index, as food is a good and does experience inflation.

Crop failure has played a role in rising food costs, but not much more than any other year.  Wheat had a bad year, oranges too, but plenty of crops came in line.  The biggest worry to crop failure is honey bees not pollinating, and this is last on the list for even the hippie agenda.  When the ever decreasing population of honey bees is addressed, and that would mean taking down cell phone towers, then control over the natural element will be controlled to the best of our abilities.

As for speculation, well, it is in the nature of finance to speculate, and the finance world would have to be rebuilt from the bottom on up to create less tension there.  There is an unfair advantage for the wealthy, as it takes money to speculate, but this will always be.  In order to implement fair market practice, the rules of finance would have to be rewritten, and more importantly, the philosophy of economics would have to be justified by the adherence to nature, and what would constitute that the  doctrine conclude that what is in the best interest for the individual is in the best interest of the community.  Theoretically if everyone had a fair share of natural resources, like the nomadic tribes of old, then maybe we would only take what we need (yes there has always been war, but as an example, Native American tribes would go generations without spilling blood, and then many times in stead of a tribal war, only two men would fight, mano vs. mano, to settle the dispute).  People would first need to shed ego and whatnot, and even then, there would be speculators.  The best we can do is to try and uplift the local communities and remember that all is fair in love, and war exists in spite of love.

The dollar reaching point critical was inevitable as it is the basis for the fiat ponzi.  Gold, which was and by proxie is the underlying asset, is not up for grabs in physical, but only by loan.  This means the dollar is not a store of wealth, and therefore is at the whim of inflation.  Now past the point of critical maximum, the dollar has been pronounced dead on its arrival at the end of neo-Keynesian economics.  The fallacy that one can spend this fiat currencie to achieve success was to prop the King Dollar up for all to see, but then those who noticed saw it dead.  This is not the future; this happened.  Now the dollar will be buried.  Heretics may expect it to rise.  They will starve while they wait.

The dead dollar increased input costs because it took more dollars to purchase a given good.  The world turned until the good was food.  Food, the basis of humanity, is not up for negotiation.  Now the world will fight over the crumbs.  This and oil production has peaked.  The House of Saud's production peaked last year, and they being the swing producer are no longer able to offer a supply buffer.  Now the world descends into the backside of oil production.

The African Black Swan is a combination of all these things.  Africa had waited patiently on its just deserts for decades.  It put up with the establishments and the crushing poverty that was relegated to it, but drought and disease.  The tipping point was when food prices increased past critical.  I could elaborate on the establishment and the role of the dictator, but dictators rule over all lands, if it is the futile overlords of Japan, the figure head overlords of the Anglo-American Empires, or the absolute dictators of the Middle East and Africa.

Like the rest of the world, the dictation is trying to manipulate the people into accepting the old paradigm while thinking that it has changed for the better.  The oilgarchs recognize the revolution, and are trying to continue the old way.  Yet the world is very awake, the people have been lied to long enough to know magic exists within our hearts, and change comes from within.  Change is not a given, change is not to be accepted, but change is to be created.  Now like a true Whiteness, the birds descend on the lake of reality, adding even more swans to the fray of an ever crowded lake.  These swans call for real change, and with real change, an advantage of prosperity that has been discussed in theory, but has yet to be proven.  The change is at hand.  We the people are demanding it.

Friday, April 22, 2011

Swan Lake: Japan

The Whiteness descended onto Japan in true Black Swan fashion.  Only nature knew what lay in waiting for the poor island of Nippon.  An island steeped in ritual and history, it was to be utterly destroyed in a few blinks of an eye.  Now, it lays in ruins.

Unfortunately because of society the loss has only begun.  Still to see are damages left upon a people who have already dealt with nuclear waste of horror beyond imagination.  This time the carnage will be slow, and may come as a surprise, because the news has been veiled by the self proclaimed superiors, so to keep honor; how backwards is this considering the past principles would have made the culture act within seven breathes.  Now, complacency has eliminated past rites.  Now the end of the culture is at hand.

Industry is done.  Humanity is finished.  The survivors will flee, and with them memories dear.  The land will last forever, but only in a tear.

As the corporations act to cap their losses, both financial and relation wise, the people stew in the toxic heap of their home.  The face saved will only be for the corporations, and it will only be so to keep up with the New World, as they do not want to get behind the ever charging mythos that a flat world is in the benefit for the people.

When the time comes to act, the rest of the world will be rotting in the lie of the fiat ponzi.  No one will be able to help the Japanese situate themselves into any comfort.  Japan will be on their own.  They may sell US treasuries, they may spend their dollar holdings, they may print Yen like never before.  All of these percieved solutions will quicken the death spiral of the fiat ponzi.  There is nothing that will save Japan from the Whiteness.

Thursday, April 21, 2011

Pullbacks quick, Painless

Silver has been pulling back, but they are so quick only algo machines and day traders who drink coffee twenty four hours a day can catch them.  There may be a pullback that lasts a day or two, but the run in silver has so much momentum that a price target of $50, which is currently very mainstream, is laughable.  Watch silver get into the thousands over the course of the next year or so.  Watch, I dare you.

The best way to buy silver is to accumulate it not when one thinks the price is right, but when one can.  Free up cash and level buy it, and this means if one has not yet invested, do it now.  Exchanging real monie for paper monie should not leave a doubt in one's mind as to if a yield will be had.  It is what truth derives itself from.  Necessity is the mother of invention, and investing in silver fills necessity to the brim.

Time will tell as to what nominal and very fictitious price action silver will have.  After all, what is a dollar, if not nothing.  Paper fiat IOUs are worthless.  Light one on fire, and see how great a store of value it is.

Wednesday, April 20, 2011

The Black Swans

I have termed the fact that there is a wedge of black swans a whiteness because this is the term for the wedge when it lands on water.  The term for a group of swans most likely does not orient towards what color they are, and I see no reason for it to change when the color of the bird changes.  Maybe I am wrong, and it should be a blackness.  Yet it matters not for the term itself is at play, but what is important is that there is such a happening.

The whiteness has many birds, and they are descending upon the earth and into sight.  They are too numerous to name at the moment, and a good exercise for you the reader would be to try and pen as many as you can think of.  This exercise is important because it will keep the significance of the event at the fore.

What is at my fore at the moment is the fact that, first, not many people understand that the fiat ponzi is destined to collapse.  The other side is just as important, and that is real monie serves the benefit of the collapse of the said fiat poinzi.  These twin swans will land on the lake of reality and splash down to a surprised populace.  The event will trigger the outlier to be established in the moment when all other reality fails.  Entertainment and trivialities will be watered down, and a new paradigm will emerge.

The whiteness will be blinding, and many will not be able to muster the attention span to think the process through.  Many will whine, and cry, and also lose their minds.  But many will understand, and it will be an awakening of epic proportions.  After all, like a black swan, nature has a way of making us recognize what we at first failed to see.If the eyes are the window to the soul, once the whiteness lands, the soul will be free.

Trinity breaking Out

The Trinity is on the verge of a bullish move, as platinum looks to follow in gold and silver's footsteps.  Platinum is still in the middle of its range, and has been there for awhile.  A commenter here asked if this was due to industrial demand being slow, and on the industrial supply crunch happening after the Japanese earthquake and tsunami.  This was a rather insightful observation, and may have been the reason platinum lagged.  However, due to its role played in the Trinity, it will go higher, as it, just like its sister's two, is real monie.

Tuesday, April 19, 2011

From the Vault

Today's action was like a threat announced as a promise, to be vindicated when the time is right.  Justice will be served on the policy that forgot to mention, knowingly or not, that by the definition of monie only three can be so.  Gold, silver, platinum all fit each definition perfectly,no other asset does.  Does this mean other assets are left bare, to wither with the fiat ponzi?  Absolutely not, as all assets have there time and place.

It is not that paper IOUs are not an efficient means of exchange; that is not the problem.  The problem is the debt is backed with no collateral except for a promise to pay.  With bankrupt nations as the commonality in the world, their promises matter nought.  What matters is the collateral that can be collected.

The reason that it is a fiat ponzi is because the ponzi has no grounding.  Gold does anchor the economic system, because it is the loan of first recourse by the central banks, but there is nothing redeemable about it.  The loan is facilitated for cash, and then exchanged for cash.  The cash is used as a medium of exchange, nothing else.

The further along the road this adventure lasts, the higher the price for the loans.  The loans need to yield a certain percentage, and this percentage is what matters, not the dollars in denomination.  The yield will stay the same, but the price will go up.  It is as simple as that.  All to keep the fiat ponzi supported, from the bank vault on up.

Corporations want Authority

My term steady inflation may be a little underwhelming, but when hyperinflation is used, people think I am an extremist.  I can not make this point clear enough:  the whole reason for this entire meltup/meltdown, inflation/deflation, and everything is so that the corporations inherit the economic landscape.  That was established long long ago.

The oilgarchs did not like being responsible for their wrong doings, so they built the government around corporations, or rather, firms.  They did this by implementing the 14th amendment.  People were free before then, and since the civil rights movement, we should now understand that every person is created equal.  It is then up to society to help those that need it; the elderly, the disabled, the disheveled, the poor, they all deserve a chance to live.  The 14th amendment, and rather, no written word can decree the truth.  The truth just is; the truth is absolute.

So, corporate equity will continue to rise until governments collapse and corporate debt becomes the new safe play for wealth preservation.  The dollar will lose its status as a reserve currency, there will be no fiat that will fill its role, and as all central banks hold gold reserves, they will inform the public that it will be used as the main asset, although it is the chief asset already, as it is the first loan of recourse, which is why gold sits in the house vaults of the banks now.

The paradigm has been constructed to meet this demand.  People need Nikes to wear to walk the concrete jungle, people need JP Morgan to construct their finances, people need General Electric to build power plants, people need Disney to be entertained, people need Union Pacific to transport goods, people need cars to get to work, people need Exxon to get them their energy.  People rely on government for goods.  Government is only relied upon to keep the fiat ponzi moving along.

What is money as defined by the reigning economic paradigm?  Could the IMF or World Bank not facilitate these loans?  Could a State or County or City bank not facilitate these loans?  All a bank needs to do so is gold, everything else is making the loans and using the leverage.

Once the federal governments fail, once the bonds do not trade, then the corporations bonds will be a premium.  Then they will be able to fund themselves.  Then people will most likely understand what happened.  As to if they want corporations running finance above any other proxie  is yet to be seen.  Maybe States, Counties, and Cities will take real monie into their own hands, which some have, and facilitate their own means of wealth.  Time will tell.

Monday, April 18, 2011

Quantitative Easing Forever

With rates about to rise, due to the fact that demand is lackluster for Treasurie bonds, the Fed and its genius leader Ben Bernanke will have to continue along the road of quantitative easing.  The Fed, which was forced into a corner long ago by a failed economic, monetary, and fiscal policy, is the lender, and buyer, of last resort.  The world over has stated they are not comfortable propping up the US regime, and so the Fed will be forced to continue to do so.

Now that the US is on debt watch negative, the world has called the bluff of the Federal Reserve's monetary and fiscal policy.  Monetarily, the Fed is wasting its dollars.  Fiscally, the US is a joke.  The recent budget did nothing to implement a way to end the ridiculous spending that has characterized the policy.  The government has cut the programs that help the poor, elderly, and disabled, and this does nothing to dent the problems.  The act of spending hundreds of billions of dollars a month and lending them to banks to facilitate the military industrial complex is the crux of the problem, and the US has shown it will never end this way of doing business.  The banks need low rates for this to continue, and the Treasurie and Fed need bonds to sell at a premium to facilitate the program of military expenditures.

If rates rose, the interest on the debt would crush the US taxpayer.  Higher rates will end the Keynesian system.  So the Fed must print, by entering digits into the monetary base, and lend the said digits out.  What will be done with the tens of trillions of dollars lent over the course of the last several years is not up to them, and nor do they care.  They are merely in place to perpetuate, or as they say, provide stability, to the financial system.

The indirect bidders on the Treasurie bonds will continue to lesson support, the private dealers will continue to take their place and flip the bonds back to the direct bidders, which happens to be the Federal Reserve, and the Fed will use POMO to monetize the bonds and bills.  It is the only way for the system to go on.

In the meantime, the Federal Reserve, which has loaned (ie leveraged) its gold assets to the absolute maximum, will let the precious metal appreciate, as so their loans are still yielding profit for the leases.  This way, maybe, the world will not exit treasuries all at once.  Maybe, they will only do so slowly, as they have for years now.

The system is now in overdrive, and the slightest butterfly could flap its wings and bring the whole system to an epic washout.  However, the Federal Reserve, by proxie or mandate, will try and do everything in its power to continue the system.  The lenders like to see budget cuts.  The lenders like to continue with their gold leases.  Yet the other Nation States of the world have problems of their own, and they only have to use the same solutions.  Soon one State will step away from the madness, and a chain reaction will begin that will end the Keynesian policy that dictates economics.

The inevitable Downgrade

Trends are still in line.  The debt watch is now on downgrade and this only makes the economic system's reliance on gold as the loan of first recourse that much more significant.  Silver's worth is derived from the same ability as gold's; it is a real asset.  The US Fed/Treasurie was forced long ago to leverage these assets, and now in order for the system to stay in line, they must let them appreciate.

The dollar had a bounce today, but with its proprietor in the cross hairs, it looks to be the first in line to take the brunt of the force that will happen when the downgrade does occur.  Everything is at the forefront now.  The end game has been established.  The rating will be downgraded.

The AAA rating is in place because the US houses the reserve currencie.  Logic dictates this, for if the world reserve currencie was downgraded, the world goes with it.  There will be one of two outcomes 1)  the debt is downgraded and the dollar gives up its status in nominal terms, or 2) the US concedes the status and a new currencie is issued to replace it.  Both will put finance into a new paradigm.  Both have the same result.  The capitulation of the Keynesian policy is at hand, and with it, the dollar.

Sunday, April 17, 2011

Trinity trending Higher

The Trinity is trending higher tonight in Asia, as that side of the world wonders how they ever got suckered into investing in the fiat ponzi.  Platinum has a lot of room to run, resistance is all the way at $1850.  Silver and gold will not pull back until that number is tested.  Until then, the sky is the limit for silver and gold.

Silver could run into the hundreds before any other asset class notices.  It is the lightening rod for inflation, as the world of finance severely undervalues it.  The input costs may stress certain sectors, but technology is supposed to be the savior of economics, as it itself reduces costs.  So the margin will be raised and the world will be saved!  People will pay more for medical equipment, computers, and the like, because life now operates directly from technology, and all thanks to the little metal that could.

The Trinity is not only an inflation hedge, and the best one at that, it is a direct investment into technology.  All technology needs precious metals to conduct themselves.  Without the Trinity, technology is nothing.  The Trinity will play finance like its fiddle for the rest of time, there is no doubt about this.

As silver has only begun to blow up parabolically, the move on the percent can stay steady and the nominal fiat value will increase drastically.  The move from $40 to $43 meant that the fee to purchase a US minted silver Eagle bullion coin was turned from a cost to even.  The same percent increase is going to mop the floor with these margins the higher the spot price goes.  This is why silver will once again be the best investment of the year, and as  I see the trend starting with the Fall of '08, the next two decades.

Saturday, April 16, 2011

Corporations Rising

I have been writing that the whole reason for all of what is happening in finance is for the corporations to take complete control of the economic paradigm.  After abandoning real economic philosophy sometime when the merchants of Venice began to have bullion banks, corporations of sorts began to spring up and create pseudo economic philosophies.  Just as any philosophies, never has there been one with complete understanding.  This is the first rule of philosophy; the truth is there, and one may come close to finding it, but the nature of being human means we will never find the absolute.  The matter lies in how well one walks through the fire.

Adam Smith forgot to use nature as a restraint, and then Keynes embellished on this by writing that spending  can facilitate growth because nature is unlimited.  The combination of these two philosophies has desecrated the economic landscape.  The nature of physics may be unlimited, but there is no way we are going to capture the unlimitedness before we find that we too are unlimited.  Corporate boardrooms and political playdates will not benefit this search, and really the only way is to search deep inside oneself.  Before we find true economics, we must find ourselves.

Hyperinflation, if you will entertain the thought, will not benefit the governments.  It will show their policies to be flawed.  Just as the political sphere pits one side against another, in a Hegel dialectic, so does economics.  Austrian is the only counterpart, and though it may be more accurate than the idiotic Keynesian theory, it is not absolute.  Once again, no philosophy is.  Philosophy is ever changing, as we are, because we are still learning and will never stop.

My theory that corporations were purposely trying to destroy government took a turn for the worse, in respect that I was sure I was right and disappointed by it, when I watch Paul Krugman deliver his Nobel acceptance speech.  In it, he concluded that firms are to lead the new world, rather than governments.  I am not going to dissect it to much, as I should not waste my time, but I will say, everyone should study one's opponent, and Krugman laid his plans bare.  Firms will rise over governments.

Ideologically they have made this possible.  People are upset with the US government, but forget that Nike still uses slave labor.  People have watched Bernanke butcher the lower and middle class, but still they buy Apple products, made by slave labor.  Democrats and Republicans alike agree there is something wrong with America, but rarely mention that General Electric is a beast of burden.  GE pays no taxes, but Jeff Immelt is in charge of White House corporate policy.  The Daley is Chief of Staff, straight from the House of Morgan.  The list of corporate sponsorship goes on and on and back to before the turn of the 20th century.  The plans were laid long ago, and they are about to wrap.

More harmful than any one plan was the control of fiscal and monetary policy.  The gold and silver standard was abandoned, led by the banking Houses of Rockefeller and Morgan, and run roughshod by every President not assassinated during the course of the Federal Reserve Bank's legacy.  Men like Don Regan and Hank Paulson have decreed corporations the beneficiary to tax payers, instead of tax payers benefiting themselves for their hard work.  This and the rest of the world has gone along with this Americanization of government, making really no place safe from the fascist control of governments.

So as for the end game, the dollar will fall, as it was meant to, and corporations, having capabilities such as lending arms, means of services, and equipment, will benefit, as the governments are bankrupt, in part because the corporations have been bailed out from the sea of rising fascism.  The world will ask to be saved, and with the last resort being global banks instead of Federal Banks, the move into a one world currencie will be made.  Then, the corporations which still have their assets and balanced books will rise, and Paul Krugman will say he told everyone so.

Friday, April 15, 2011

Silver trumps SLW

The most interesting equity move lately has not been Google losing their shirt, nor has it been Zipcar making the post peak production of oil look like a joyride, nor Goldman's capitulation on commodities.  It is the fact that SLW has given up that huge margin of equity that it had above the price of physical silver.  This does not surprise me, as the shell game of the President's Working Group on Financial Markets is very close to being up.

The Fed is running out of leverage.  They have turned trillions of dollars over to buy toxic assets, they have marginalized their whole gold bullion portfolio and leveraged it all the way up.  They are losing money this and that way on MBS.  The only thing they had going for them is that they knew to buy the dip in the Spring of '09.  They bought SLW then, and they have been selling those shares lately.  Soon they will be out of that equity position.

What will the PPT (the abbreviation for the "Group") do when their equity position on SLW and various gold miners is up?  Who knows, but crashing the market will do more than make them look like fools.  It will scare the other Central Banks of the world out of dollars.  Each bank has equity positions, most notably the BOJ's Shirakawa who owns ETFs.  The world over is ready for any bluff that the PPT try for.

So here the game sits, the board almost done, with the debt ceiling on pace to be razed in a matter of weeks if not days; the gig is up.  No more opportunities for the PPT, and the Fed itself, other than to let its gold vault do the dirty work.  The loans that they have spun can only stay solvent if gold appreciates.  Price target set at way over $1850, but $1850 is now in sight.

There is one other thing that can happen.  Silver could be sequestered and used as an asset alongside gold.  This would likely set in motion a new currency.  The IMF and World Bank would become involved.  This will crush the Neo Keynesian end game, rates could rise, killing the dollar for good.  Who knows what would happen with equity positions in corporations, but with the admittance by finance that there is no sound reserve currencie, precious metals and oil will surely benefit, because they do have real value.  They are real assets.  Oil is the lifeblood of the economy, and precious metal is real monie.

Thursday, April 14, 2011

Number of Life

42 has been a sacred number since the days of yore.  Now silver has broken this with great authority.  Silver is bucking all trends, which I have expected.  Silver is worth its weight in gold, although gold has the slightest of advantages.  These advantages will mean gold will still be worth more than silver, but silver's upside is really unimaginable.

I wrote that silver could move to $250 per ounce before anyone really noticed.  I think at that point gold would be around $3,333, and only then would the gawkers gawk.  People fail to think about silver when considering the characteristics of gold, for whatever reason.  Their loss.

Resistance seems to be a mile away, as silver's climb is as steady as steady goes.  Resistance is always impossible to call, where support is easy to chart.  This matters not, as selling silver is a foolish thought.  Buy at support, and wait for the next level.  This is my advice.

Overview: Main Thesis

By the Constitution, precious metal is monie.  By definition, fiat currencie is not monie, because the debt instrument is backed by a bond with no sound backing, which makes it an IOU.  This means that "a storage of wealth" it is not.  Fiat currency is not money.

The above ground supply of silver bullion is equal to the above ground supply of gold bullion.  The gold and silver bullion would fit nicely into four Olympic sized swimming pools.  Platinum is an even smaller market.

One percent of Americans own physical precious metal.  The world population has a percentage far less than that.  The realization that precious metal is the definition of money should raise this group, and that will increase the demand significantly.

As of now, most of that above ground supply sits in Central Bank vaults.  The banks rely on it as collateral to make loans.  They have other instruments, but nothing works better to make a loan than gold.  The other instruments are MBS, bonds, and the like.  These are mere IOUs in the face of physical assets, like precious metal.

Gold and silver are in every piece of technology there is.  Cars, computers, phones, medical equipment, etc.  Therefore investing in precious metal is a direct investment in technology.

The supply of precious metal is low, and slowing.  Gold production peaked in 2001.  Platinum peaked last year, and with silver demand increasing significantly, it will not be long before the sister metals Trinity are all on the backside of production.  Oil production peaked last year, and the price pf oil and precious metal has a direct correlation, because oil is the lifeblood of the economy, and this real asset only trades in unison with the price of money.

Wednesday, April 13, 2011

It's all Circular

Treasurie issues debt, and the Private Dealers and Indirect Bidders buy it.  Then the indirect curse the day they got involved in the dollar meltdown, while Private dealers flip the bonds to the Direct bidder, which happens to be the Fed.  The Fed then monetizes the bonds via the POMO.  That is today's way of creating a budget in America.

The world must have been ready for this when equity crashed in the Fall of '08.  The dollar was hoarded one last time, and since then commodities have been bought and held in hope that they would soften the inflation being unleashed by the dollar.

There is also the deflation side, which has housing all over the world crashing to epic levels.  A city in China that would be one of the largest in America saw home prices drop 25% last month.  This is a good example that all markets are eroding, except precious metals, and that of the lifeblood of the economy, oil.

Peak oil is rearing its head in front of the global meltdown by showing the House of Saudi Arabia has no spare capacity, even though they say they do.  They say a lot of things.  Since the dollar is in a Catch 22, so are all markets.  If anyone is trying to keep the dollar afloat, they would need to change Neo Keynesian policy, and the time for that was decades ago.

Back to square one, the precious metal market is oh so very small, yet oh so very real.  The only way to store actual wealth is with monie, and monie by definition is precious metal.  While the dollar and the economy spin down the proverbial toilet, precious metals stay high and dry.  They are the anchor that keeps one's wealth safe.

Tuesday, April 12, 2011

Dollar fire Sale

In the face of a looming government shutdown the dollar continues to sell off.  Is it that the Central Banks of the world do not trust the US government to make the necessary cuts, or is inflation so big that the dollar is at the peril of a market that is over liquid?  Either way, things look bad for the greenback.

The assets backing the dollar are those that the Fed owns and operates.  These are the "gold" reserves it houses, MBS it owns, and all that the President's Working Group on Financial Markets has in its lock box.  These are the reasons that the dollar is failing.  Them and the fact that Congress will never slow its spending.

The US government is in a catch-22.  If they cut spending it will derail what they call a recovery.  If they stop the bond monetization, then the interest on the debt will collapse the government.  They have no good answers.

They only thing to do would be to move to a precious metal standard, to bring back sound monie.  This is not in the cards, so the result will be bad or worse.  The rest of the world looks on, but they already have their ducks lined up.  They will continue to spend their dollars accordingly, and the pace will pick up now that the US has bluffed its way to the top of the debt ceiling.

Precious metals have now tested support, and they may skim at this level tomorrow.  Gold is about at the bottom of its support, and silver is close.  Platinum is at the bottom of its range.  Finding gold's support is simple; its old resistance is its new support.  Old resistance was $1440, so that number could be tested.  It will not be long until we find out what the next resistance level for gold is.  It could be as high as $1500.

Technicals still Intact

The fundamentals of precious metals have them very undervalued.  Until the world recognizes them for what they are, and that is monie, the fundamentals will remain bullish.  Until then, the technical movement of PMs will remain to be sold off.  It is the nature of the beast.

Fiat acts as a medium of exchange, and until it does not, people will not wake up from their slumber.  With their eyes veiled, people will continue to parade around as if in a dream.  Until then, precious metals will continue to be manipulated in panic like action.

Sunday, April 10, 2011

Charting April Silver

In whatever a normal environment would be, silver would test support at $39 this week.  The thing is, finance is going haywire.  Gross is shorting US debt, inflation is raging like a bull on parade, and, as usual, the US government is making a lot of noise, but acting not.  Add to this world wars, a false economic paradigm (discussed yesterday), and "First World" cultures that overall are asleep at the proverbial wheel, and it could very well be that the end of the neo Keynesian experiment is nigh.

If that be the case, then silver could continue its meteoric rise.  Yet I can not ignore the charts, and nor can I ignore the persistence of the oilgarchs and financiers to keep kicking the can down the road.  The X-factors are,  i) will the rest of the world help roll the fiat ponzi with the POMO (permanent open market operations) that has been monetizing the US debt and  ii) will the bankster financiers do the same.

The kickers are  i) does the world banks think that they have enough gold to finance their respective currencie after the dollar is replaced in the basket of the SDR  (special drawing rights) like Apple in the NASDAQ basket and  ii) do the bankster financiers think the corporations have the strength, after all these bailouts, to take the financial system by the throat.

If not, silver will test support.  If so, the new world will welcome all countries onto an even playing field best called the second world.  Many entities have prepared for this second world already.  They have done so by the mentioned above.

Saturday, April 9, 2011

Economists, Financiers, and Oilgarchs...Oh My!

What is missing from the philosophy of economics is the fundamental understanding that 1) all resources are finite and 2)  labour is a willing good.  Once these are used as a metric for input costs, neo Keynesian rhetoric falls to the way side.  Neo Keynesianism relies on free labour and thinks of all resources as abundant.  Nothing is further from the truth.

Labour was known as a right by the order of the constitution, and was enforced with the civil rights movement.  This is the reason that Africa is uniting.  This is the reason why China has raised wages; people are taking a stance on an issue that is simple:  labour is one's own, and no one else's.

If resources were absolutely abundant, there would be no concept of property, monie or otherwise.  This would be a literal heaven, and everyone would share and take without removing comfort.  To be specific, there is a set amount of gold, as it only comes from stars.  There is a limited amount of oil, as it takes millions of years for it to accumulate.  Silver only grows on veins of other metals, and platinum too.  There is an ever changing amount of fresh water, but due to population growth, even that has become without excess.   The things that finance revolves around, the goods and capitol, amount to what finances the world.  The world is a set state of affairs.

Without doubt, there is one exception, and that is our ingenuity.  We have proven over and over again to be able to construct new ways of living within these means.  We do this by utilizing what we have.  We create machines, then we use oil for machines, then we use the oil instead of the machines (solar voltaic).  This proves that we are unlimited, but,  as of yet, we have failed to recognize the implications.  Hopefully we have only scratched the surface, but we are running out of time.

If economists would realize all of this, a new world would emerge, and maybe then people would find the ideas that would move us forward in the story of this earth and create new ways that can utilize our resources in a more efficient way.  Until then, the old world will weigh down economics, and the world around it.  If only the oilgarchs could become humbled, and tell the financiers so, then maybe the philosophy of economics would be freed from the chains of Neo Keynesian Smithsonian economics.  Until then, the few that recognize the paradigm for what it is will continue to be the only ones who benefit.

Hard to Read

Precious metals are hard to read right now.  One reason is that silver broke out long ago, gold is scratching the surface, and platinum is getting pushed around like the nice kid on the playground.  The Trinity has broken trend.  The interesting thing is when the trend comes back in line.  Then the move will be as quick as lightening.

The gathering storm is going to flood the world.  The current seas will rise, and wash with them the false idols of fiat.  Those who have the Trinity in tow will be able to anchor their ships once the clouds pass.  The days and nights will be long, and it will be important to store essentials.

While the clouds circle people will continue to watch the natural beauty that will be a devastation of common ego.  Once the clouds rain, and the lightening strikes, very few will be prepared.  There is only one way to prepare financially.

The price may go up, and it may go down, and all will try and wait on the dip, but there really is no reason to.  Might as well trade fiat for sound monie now.  Soon price will be known for what it is.  An algorithm.

Friday, April 8, 2011

The Corporate Fed

What is America if not a shell for corporations?  We wear Nikes, we drive beamers, we are our shoes, we are our cars.  And this is somewhat literal.  People are extensions of their belongings, or at least, they think they are.  And this is why Bernanke has owns more corporate equity than anyone.  Because he owns our souls.

Maybe we will walk away.  Maybe we will establish our monie as sound.  But the likely hood of America giving up the corporate tit is not likely.  The tit will be shoved in our faces like a solution to our problems.  And if there is something America loves, it is tits.

Just imagine when the dollar collapses and America needs high speed rail installed on the L.A. freeways.  Obama will say his friend Immelt can help.  People will still need to pound the pavement, and Phil Knight can help them.  And this has been the plan from the beginning.

The Federal Reserve was set up to fail so corporations could benefit.  How obvious is it considering that Morgan and Rockefeller invented the whole thing.  Now that inflation has eaten away at the purchasing power of the currencie, the system, is ripe for the end game.

And this is why Bernanke has bought all the equity.  So that when the dollar fails, he still owns something of value.  Well, he has all that gold now too, doesn't he.

Thursday, April 7, 2011

Silver is Popular?

When did silver become the go to investment?  Same with gold, when did gold take over the headlines in such an epic way?  I have been caring less and less about all the hoopala, and now all of a sudden I check into the mainstream headlines and it is 'Gold, gold, gold!'

I remember when I came to the conclusion that I should write about how silver will be the best investment of the next decade.  I had been reading Zerohdege (The first rule....yeah yeah) for about six months when I read The Wizard of Oz with the interpretation that it was about monetary policy and decided that to buy silver was the only investment worth making (up to a point, of course, as diversification and a balanced portfolio is necessary).  I thought this because silver was not only going to become recognized as monie very soon, whether or not fiat was put back on such a standard, but because it would not be confiscated.  It would be ridiculous for the government to confiscate it.

Along the way, I realized that the government would not be able to confiscate gold, because they were inept, so I recognized gold as a safe haven too, even though silver has a better upside.  It was only a few months after I had been writing that I called the move that I should be famous for-that JP Morgan was shorting silver and we need to blow them up.

I distinctly remember the conversation buried in piles of ruble on the Zerohedge site which was between myself and MsCreant.  We agreed that silver could end JP Morgan's and thus the Fed's raping of the financial system.  This was mid summer, I think.

So now Alex Jones yells into my ear that Keiser came up with the battle cry, and Keiser yells back.  Although I will say I heard Keiser say Zerohedge started the idea once.  Why he doesn't say it more, I am not sure.  We are wearing masks, why not get the Zerohedge party started in earnest?  I am down.

The Trinity Persists

There was no major pullback today, with the Trinity staying even on the day.  Oil did make up ground.  With the shutdown of the US government nigh, there is not much time for gold investors.  Of course, there may be a bearish move with the shutdown, who knows.  Finance has become surreal, with all the wars, rumors of wars, false economic data, lies, cheats, and scandals surrounding the Beltway and Walled Street.  All I know is that at the end of it, the only safe investment is real monie in one's hand.

Once reality sets in, there will be no stopping precious metals.  JP Morgan's shorts, and the President's Working Group on Financial market will not be able to cover the physical demand.  The pause we have seen at the start of the next move may persist for a short time, but eventually the house will come crumbling down.  Evidence in that it has started is the fact that the dollar is not rallying on a government shutdown.  If spending is cut in entirety, you would think the dollar would be a safe haven, as government would no longer be wasting the precious fiat.  Yet it flops around like a fish out of water.

Max Keiser has the next move starting when the price of silver is more than the JP Morgan stock price.  It is an interesting theory, but I am not sure how accurate that metric is.  I will say he is having fun with the term I coined, and more power to him.  The more people that join this Silver Liberation Army, the better for humanity.  Join the fight, and buy silver!

Wednesday, April 6, 2011


Silver has made an exciting move, and now that gold has poked out of resistance, you would think the next level has begun.  Yet platinum was traded off three consecutive times today, and thus fell down below $1800.  This is why the levy did not break today, because platinum is still being manipulated like a passive lover.  The time is nigh, and with a government shutdown looming, it is almost certain to happen.

Look for the trinity to test a support level, maybe somewhere around $37 for silver and $1440 for gold during the next two trading days, while platinum stays subdued under $1800.  Then when noise of either a raised debt ceiling or government shutdown comes to fruition, the levy should break.  The levels are pretty much set.  The next move looks to happen next week.

Then it will only be a matter of time when those who do not understand the power of holding the trinity begin to ask the important questions.  The properties of precious metals are bar none, and thus why they act as real monie.  It is in the back of everyones heads now, and when the price action crushes the fiat ponzi, those in the know will benefit.  Reality will creep up out of the shadow and shine for all to see.

Sunday, April 3, 2011

What's Gonna Happen?

I have no idea, but there is one kicker.  First we have been at the level for a month now.  Gold, platinum, silver, and oil have all been where the break will happen for awhile.  Yet who is to say when the move happens. 

Anyway, here is the kicker.  Silver could fly, and the other three could stay where they are.  I think this is a very real possibility.  Americans rely on oil to live, but if silver doubled, doubled and doubled, yes medical equipment and technology would become move expensive, but as PhD economists have told me, "So?"  Oil and food have to maintain a relatively low price, or else Bernanke is done.  Gold could move up, and Bernanke and the Fed would look foolish.  Platinum has a chance of breaking out, but $5000 platinum would look weird next to $1650 gold.  Silver on the other hand.....

What is silver was $250, and oil was $200?  What if silver was $250, and gold was $2000?  There would not be economic collapse from this, and the inflation that is running rampant would find a place to hide.

This is why I think silver is the best pick for a breakout.  All four horseman could roll higher together, but silver will lead the charge.  It has already started, as I called for $36 silver to happen "soon" over a year ago, but it will keep moving.  Will it leave the others in the dust?  Maybe.