Wednesday, March 28, 2012

The Next QE

Bernanke can decrease the value of the dollar by manipulating the "money" supply (I like to think he controls the "currency" supply, as fiat is not money).  The value of the dollar is figured by this equation:  mv=pq (the amount of money in circulation x the velocity of the money = the price level associated with transactions x an index of the real value of final expenditures).  This is simply explained as a way for Bernanke to raise or lower the value of the dollar.  Let's examine why he would do so.

The main reason to lower the value of the dollar is to increase exports.  When export prices are lowered it increases productivity.  If productivity is increased, then profitability is too.  I will point out that the chief export of the US is debt here, and also that NAFTA and GATA have done away with industry in America.  So Bernanke is exporting debt, and basically, debt alone.

If this sounds crazy, well, this is Keynesian economics.  You can read it in University textbooks written by Bernanke for upper-class economic undergraduates.  You can hear Bernanke discuss it in his speeches.  These are the facts.

America, and the world with it considering America has been the leading economy for decades and decades, is at a tipping point.  I won't list what is wrong economically here to save space, and I already think you know all the talking points (besides, I am sure I will touch on them later in this blog, if I haven't already), but there are many many topics to discuss.  Finance has gone berzerker, and raised the stock indices high.  Bonds remain high, yet the basket of currency that defines these prices has maintained some stability (compared to what the future holds), all while debt and more debt piles high on the backs of the Nation-States, and municipalities across the globe.  A major break in the economy is coming, this much is obvious.

When?  No one can guess.  Yet we can guess as to what solutions will be offered up to appease the Fiat Ponzi.  The question is not only when, but how?  Will the QE be sterilized or unsterilized?  Will Congress be involved?  How much currency will need to be printed by all Central Banks?

These have often been discussed, yet there is one solution that can be offered by Keynesianism that is not often discussed:  the value of fiat can literally be cut in half.  It has been done before, by FDR as his first Presidential mandate.  He did this by revaluing gold compared to the dollar.  It happened over the course of a week.  As history repeats, we can guess this will happen again.

And happen again it has, albeit slowly.  The question now is, will it ever be done suddenly?  It would be shocking at this point, as Obama and his minions have declared a recovery.  Would it be a False Flag?  A war?  The student debt bubble?  What could create such a policy move?  My guess is as good as yours, but it is a possibility, and day by day, it becomes a greater one.  So when will it happen?

One thing I try to make sure I understand is the modus operandi of the minions involved in the Global Cabal.  Bernanke gets a lot of just deserved heat from me, but he is just a minion in the large scheme of things.  In an interview last night, he said he may not continue as Chairman under a different POTUS.  If this is true, he may now kick the economic can until the election to see what happens.  If this is true, then he will only do what he needs to to prop up the system.  He will not want to use the bazooka that would be cutting the value of the dollar in half if it will be painted as poor policy.  So he may sterilize his policy for the rest of his tenure.

One last thought, what if he had a blood pact to cut the value of the dollar, and now he reneges?  Well, it may be off with his head.  Obama is in a similar predicament with his policy, thus why I think we are at a turning point.  This turning point though may not end with policy moves, but with people being moved from their posts.  Bernanke may retire sooner than expected if he does not follow orders from the oilgarchs, and the same is with all of the minions of the New World Order.

Monday, March 26, 2012

Operation Bernanke

Bernanke was on the news flapping his beard today that his laser guided policy tools are still sharp.  He has done his best to confuse the rational consumer until now, and he will continue until the end of the Fiat Ponzi.

His credibility lies in the fact that for hundreds of years people have believed anything out of major Universities.  Education can provide a mind with fuel for fire, but it can also subvert thinking.  Economics, which is taught as a science due to its use of math, is a study that is more a theory, but Bernanke has those who are learned at his disposal and makes the believing suspend their curiosity.  He has done this because America has had it easy for so long.

How could America's economy collapse?  The Fed has done a job for one hundred years, and it hasn't collapsed yet, so how could it?  Well, logical fallacies aside, it is being set up to fail, so that those in power can take the crumbs and make a cake.

So Bernanke will continue QE, as will all CBs, and on the system goes...until it doesn't. 

Friday, March 16, 2012

The Bohemians

As we approach Spring, I can not but think forward to the summer; a time to relax and reap the benefits of a hard labour.  Summer is such because nature lets us have it easy; we can't help but to bask in the limelight.  So it is for all of nature.

Don't think the Illuminati won't recognize this.  In terms of psychology, they are masters at understanding basic behavior.  Yes, there are those of us who bend the trend, but even we fall into a group set, and all are easily manipulated in some way.  The sun, the skin, the bounty - it is a part of the warmth that bestows its generosity come high time.  So it is.

Many moons ago a group of artists, calling themselves Bohemians after the renaissance of Bohemia awhile before, gathered in the redwoods of Northern California.  They were artisans - painters, writers, actors, and all.  They spend every summer from the turn of the 20th century on for a decade in those woods enjoying the great forest.  But somewhere along, they asked for funding for their exploration; they wanted more - cabins, stages, etc.  The funders, monied men from San Fransisco, came and enjoyed themselves.  How could you not; the artists available featured  such people as Jack London.  It was a creme de la creme of finance and art.

Yet this is when the camp was bastardized.  How could it not be?  The monied men began to bring their friends, promising more monie along the way, and some of the artists became their toys.  Some left the camp never to return, one of whom was London.  But in the end, the monied men took over the camp, and the rest is history.

Now these men, who still call themselves Bohemians, bask in the moonlight, worshipping nature in a way only they know.  They pray to owls not in love, but by knowledge of power.  Power in how the planets, and all of nature, move.  So this summer, while they are in their encampment, after Davos and Bilderburg, they will be, as they say, quote, "Safe in Bohemia".  Think about that now, and keep in mind that oil is running up highs in the midst of  the Greatest Depression.

Thursday, March 15, 2012

Hyperinflation: Stage Three

I am going to call it now, at the beginning of the move, even though the move could breakdown, but I will also write what I am looking for to confirm the third and final stage of hyperinflation for the dollar.

One year ago, the Dow was looking at breaking 13k.  13 is an important number for the Illuminati, for whatever stupid reason.  For they believe that 13 is lucky for them, and unlucky for us.  So One year ago, I wrote that when the Dow reaches 13k, it will skip right through it to 14k.  I am now looking for that to happen.

And where we are, at about 13,200, is a very important place on the chart.  This is the turning point; either the Dow continues onward in an inflationary gain, or it turns back and heads to 12k.  It will depend on the strength of the dollar, and all fiat, in real terms.  I believe that due to the massive printing of fiat currencie, the final stage of the hyperinflation of the Fiat Ponzi is underway.

It is interesting to me that lately in Asia oil has been up and the Trinity has seen support.  Asia obviously has their priorities straight.  It will be a day when Asia takes the commodity complex higher.  Not sure when that will happen, I will sit and watch as the US does the wolrd's heavy lifting and ping pongs the complex back and forth.

We will know when the Trinity turns up and doesn't look back.  When that happens, we will know it is on.  At that point all goods will continue their price appreciation.  The Dow and equitie can't be leveraged much higher than where it is without gold, which is used as a reserve on the Central Bank balance sheets to balance the debt, gaining momentum.

How have stocks made there move to here?  Many Central Banks are now holding market securities.  They hold them as an asset.  It makes to balance out the liabilities.  Yet gold, which is a reserve, is a much better holding.  It can be lent and fractionally reserved into many assets.  Securities can be rehypothecated, sure, but this is not as secure an investment as holding a gold reserve.  So the next phase will see gold rise, and equitie with it.

Wednesday, March 14, 2012

Africa's Gold

Geo-politics plays a huge role in finance, and I wanted to think outloud about the Africom takeover of Africa.  Is the whole move to takeover Africa for their gold and other riches?  Is this why the commodity complex is down, because the Fiat System is discounting free minerals and resources from Africa?

There are many factors, but I believe this is one.  Wars are fought for riches, and I think the spoils just went on a literal fire sale.

Turd Gets It; So Do I

I don't read much technical advice.  I don't need to.  In fact, when I do, I start using other people's advice and confuse what I see.  It's not that I don't like to listen to them from time to time, but I don't day to day.  Once a week I will go to Turd's site, KWN, and the like to hear what the tech heads are seeing, but most of the time, I do the work myself.

Awhile back I remember Turd saying gold would go to $1640, which was lower than my target of $1680.  I was right until today, but it did get bottomed out.  The interesting thing is that Turd is now saying he was wrong.  Why?

Because it is a timing issue, and as time goes on the long term average moves up with the ever ascending price, so once it got to the trend line, and it moved from $1680 to $1640, Turd was wrong.  But this is not a big issue if you are buying physical, like me.  It is an issue if you are playing futures.

This is why I like buying physical.  So I hit my target of $1680 and used my dry powder.  I will have more powder soon, and hopefully the price stays low so I can get them more discounted than I counted on.  The great thing is however, physical is for holding ounces, and although we all want the best price, the end result will not matter, as I want as many ounces as I can have by the end of the Fiat Ponzi.

So for the Turditers on this site, Turd was right overall, even if he says he is wrong.  He is right in my book because the price did go to where he wanted, even if not in the time frame he outlined.  And I did get bottomed out, but I always do.  The important part now is stocking up before the next up move, and by the look of the charts, that time is fast approaching.

We will likely trade between $1650  and $1700 for a week or two.  I think around the Spring solstice we will begin to move higher.  I also expect the next up move to take out $1900.  Also, I don't expect to move any lower than here.  Just my opinion, though.

Sunday, March 11, 2012

What Next?

What lies in store for the Fiat Ponzi?  Last week saw an official Greek default, which the media spun as a good thing because it means insurance contracts are still paying off, the second LTRO auction, which is like the Europonzi's TARP, and as Europe careens over the cliff the rest of the globe does no better.  Japan is not only still radiating itself to death, but they are making Zimbabwe look good.  The US is still pulling the same string they have pulled for three years, and China watches as all paper markets crumble before them as they sit on trillions of dollar denominated paper.

So what next?  PMs look to consolidate, gold right under $1730, and silver around $34.  The charts look like an up move could happen any day, and that would take gold to $1900, but I can't put it past the Ponzinators to raise margins or release the SPR or whatever else they would do.  This is a very interesting point in the markets because everyone wants more QE, and by QE I mean unsterilized, but the Fed can't go out and do it unless stocks pull back.  But if stocks pull back then it shows the last three years for what they have been, window dressing.  The Fed is caught between a rock and a printing press.

This is why I think they will continue with OT2, ZIRP, and they may likely continue with FX swaps to Europe; we know Europe needs it.  All the while inflation stays high, but so does deflation.  Housing is getting flattened, and the foreclosure market may open up and see millions of homes put on the market for the first time.  Look for house prices to get cut in half over the next few years.

Really anything can happen this week.  If nothing big happens, then the market will stay flat, as the PPT will want a trigger to move lower, and they will keep a floor under the market.  There is the thought that Europe's LTRO could trigger the final push into an even higher inflated market.  I think we are around 10% now for necessary goods (oil/PMs/food).  With all the fiat sloshing around, we could move to 15% in the coming months, and after that it could move quickly to 20% where it would get out of hand and possibly unmitigatable.  Fiat is the weakest link in the investing world, and when the SHTF, anyone holding fiat denominated assets will lose, but especially if they are sitting on the currency itself.

Sunday, March 4, 2012

Bernanke's Testimony

A couple things struck me by Bernanke's testimony this week.  The first was that he mentioned the "President's Working Group".  I wasn't paying attention when he did, so I am not sure of the context, but he did say the words "President's Working Group".  He didn't go on about it.  The second was the audacity that he had when bringing up the Federal Reserve's gold holdings.

Let's first remember that last year he referred to the Federal Reserve's gold holdings as "Tradition", yet somehow this year he doesn't know if the Federal Reserve holds any gold.  Then he had to be coached as to what they hold (gold certificates) and where they lie on the balance sheet (they are held as reserves).

Think about his capitulation:  Either he is so dumb that he can't remember his balance sheet, or he lied.  Considering he is eloquent enough to have written the texts used across the University system, and he can coherently talk about how Neo-Keynesian economics is implemented, I am quite sure he was lying.  There goes the whole "He is a useful dupe" plausible deniability theory.  He is an evil, lying, bastard.

And that solidifies my feelings for politicians, bankers, and everyone else in the system at the top of the pyramid.  They know what they are doing.

Thursday, March 1, 2012

Big Waves

Precious metals are getting volatile again, and this is a sign for a big up move coming.  Bernanke obviously leased some of his mentioned gold reserves during yesterday's speech, which quelled demand.  Of course in the long run this will decrease supply which will force the price to pop.  During the speech Bernanke acted like he didn't know anything about the gold market.  True or not his actions make waves.

We saw silver break a key price point of $36 with authority.  After it broke silver went straight to $37.  It took Bernanke's jawboning and the Federal Reserve's gold reserves to bring the price down to where it was days before.  So now that we saw what can happen, and knowing the value of precious metals, we can assume there is a big up move on its way.

Silver may test $34, and gold may test $1680, and whatever lies in store PMs will consolidate for a few days, but in the next week or so, there will be a huge move that takes silver to $42 and gold to $1900.  It will be quick and painless and will be over before most people know it happened.