Tuesday, May 3, 2011

Fast Times at Volatility High

The winds of change became gale force gusts of the storm that started to over take the market during 2005.  Then, the housing market saw its peak, and has continued a steady crash that rivals the greatest bubbles ever.  The next shoe to drop were equities beginning in 2007.  By the Fall of 2008, the world was being hit with a wall of volatility.  The volatility persists to this day, and is picking up speed, despite a VIX that is lower than the Fall of '08.  The VIX is part of the fiat ponzi, and no part of the fiat ponzi contains a proper metric.

Flash crashes are the norm, and sometimes equity does not recover.  Treasuries provide no interest, and are not the safe haven of old due to the ever accumulating debt issuance of all State Treasuries and Central Banks.  The fiat ponzi is where the power hungry have tossed the people's wealth, but due to the fiat having no backing, any safety is but a figment of imagination.  The financiers of the ponzi act like they have no learning curve, and use the same broken policy that begot the problems.  The volatility of finance will stay until these problems are addressed with logic and right rhetoric.  Until then, the world of finance will sink into oblivion with the fiat ponzi.

Every minute that the problems are not address add stress on the already fragile system.  High volatility blasts the shoddy ship of finance into rocks along a coast not suited for docking.  Inside the ship the central planners act like school children without adult supervision.  The pace of destruction is quickening, and the financiers act like there is no problem.  Without method, there is no student and there is no teacher.  Without any relationship there is no school.  Without proper discussion, there is no reality.  This is the fiat ponzi; it is without the real.

Fiat currencie has not benefited from the recent pullback in equities because no one wants to invest in the fiat ponzi.  I believe all Working Groups, and not only the President's but Europe's, Japan's, China's, and the Saud's, are selling equity and moving to Euros.  This trend will not hold, because the European finance system is in shambles and is no better than any other fiat ponzi.  The big move will be when all the Euros are dumped for gold and silver bullion.  This move is not far off.

Platinum is the bell weather.  It is the market that is ignored by even the greatest PM investors.  Platinum is monie as is its Trinity sisters gold and silver.  The next move will have all three skying to the heavens, away from the ridiculous lies of the fiat ponzi.  Platinum will at first lead the group.  The other two will catch up quickly and then may lead to the top.  Any one's guess is as good as mine, but all three will move together in some fashion.

The fiat ponzi is close to being done.  When all Working Groups are done piling into the Euro, and the trade becomes seriously over bought, the current sea of finance will wash the fiat standard away, for moving from one fiat to another is now a joke.  The pound Sterling has lost an edge, the dollar has no chance of recovering, and the Japanese Yen is going to be spend repairing what is left of Japan.  The Chinese Yuan is not any better, as China faces a hungry population that fiat can not feed.  The next move is into the Trinity.

The Trinity can provide anything that is asked of it.  It is monie, and monie can be used to store wealth or facilitate growth.  The world has slowly learned this over the last decade, and with the fiat boat sinking, the ship of the Trinity, ever sturdy, will provide safe passage to fruitful and prosperous lands.  The Trinity will provide a means of exchange for energy, it will create growth when it is loaned, and it is a safe storage of wealth when nothing suits its fancy.  The Trinity is the ultimate safe haven, and the next move will leave finance in a sinking ship as the Trinity will finish its voyage to safe passage once and for all; this with the next move.

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