tag:blogger.com,1999:blog-10006934758112085582024-03-12T18:37:20.311-07:00Same As It Ever WasAll things are relevant when considering today's world. All topics will be discussed.Mr Lennon Hendrixhttp://www.blogger.com/profile/07859347238367669491noreply@blogger.comBlogger460125tag:blogger.com,1999:blog-1000693475811208558.post-72985265151078256902013-04-01T22:17:00.001-07:002013-04-01T22:17:09.435-07:00DerivativesWe know the Fed is purchasing toxic debt from the Major Banking Houses but we don't know what these banking houses are doing with the cash. Not exactly, anyway. They are probably doing lots of creative things with it, such as bathing in it, spending it on hookers and blow, and building paper houses. Financially they are creating operational desks outside of their main paramet6ers so to trade without the scary eyes of the Frank-Dodd and Volcker rules watching them - Goldman Sachs announced an LLC today that does just that. Now what exactly are they investing in?<br />
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Everything and everything. They have OTC investments and derivative investments in dark pools. They are buying CDSs and leveraging banking deposits. They are toying with everything imaginable, all with cash they recieced from the Federal Reserve Bank, a private for profit bank that is under charter from the UST to "maintain the stability of the financial markets". The markets have the appearance of being stable, so say the MSM, but is that the case?<br />
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The way the markets are being held up is by massive positions on both sides of the shorts and longs. Imagine the Great Wall of China, but instead of its actual size, imagine it being wider than it is long. That is what the money changers have done - they have put a massive amount of cash on both the longs and shorts to hold a price in place.<br />
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This is not only excessive but dangerous, and the slightest imbalance could bring any one option down. It is likely that it could be the dollar, since that is the largest market. Or it could be the UST market, as it is the biggest bond market. It could even be a small market such as silver, since not only does silver correlate directly with oil and thus the dollar but the amount of silver traded everyday equals the total mining done in a whole year.<br />
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So the markets are highly unstable and only kept a float by massive amounts of cash long and short. The game will end when an investment, like silver, shows that it can not be papered over. I think silver is the best case to do this because there is such strong demand industrially and for personal invesment for the phyiscial bullion. Other front runners include oil. When one of these investments shows the paper price does not equal the real price based on supply/demand, the house of paper will fall and leave the whole system looking like a naked emporer.Mr Lennon Hendrixhttp://www.blogger.com/profile/07859347238367669491noreply@blogger.com5tag:blogger.com,1999:blog-1000693475811208558.post-5395413128819253752013-03-18T18:31:00.003-07:002013-03-18T18:45:29.835-07:00Bank Runs ComethThis week will be looked back by history as one that stood still; while the establishment licked its chops at stealing savings deposits outright - without the guise of a trading error such as MF Global/JPM - Americans lauded it would never happen here. Anyone in their right mind has now begun to pull ALL of their savings from their bank and diversified at least half of their savings into precious metal. Of course, Americans are not in their right minds, and presumably neither are most Europeans.<br />
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One question that comes to mind is: What were the Global Bankers thinking trying to blatantly steal around $8B from depositors in Cyprus? In the aggregate this is chump change and I would have a hard time believing that this would go unnoticed by even a small percentage of the Western populations. That is why I think more than trying to rattle Russian Oilgarchs, or steal a small amount of money, this move was put forth so people would do exactly what is rational - this was done to cause bank runs.<br />
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The bet is that people in Greece, Spain, Italy, and other States on the brink of absolute economic disaster will run their cash out of the banks and cause bank failures across the continent. The reason is the establishment wants to blame those people and institute a cashless society so that bank runs can not happen. Then, when enough fiat has been takne out to leave the bank loans unfunded, the value of the fiat will go "poof" and everyone will need the government/banks to create a new system. This one will be cashless, so the people, who will be painted as "foolish" for crashing the banking system, will not crash the system again.<br />
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The only solution is for people to exchange the fiat for real money - precious metal - so that when the banks collapse and the currency loses value there will be enough people who can trade without the banks dictating the credit system.<br />
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I think it will be slow to start, but by the end of the Spring there will be enough whispers about bank failures and depositor "taxes" that a great amount of cash will be held outside of banks. Once again, the reaction by the establishment will be a cashless society; John Pierpont Morgan created the Federal Reserve to solve the problem of a bank run in the 20th Century and now a cashless society will solve today's bank run. This has been the plan all along, and now we have seen how it will be implemented and who will be blamed.<br /> Mr Lennon Hendrixhttp://www.blogger.com/profile/07859347238367669491noreply@blogger.com1tag:blogger.com,1999:blog-1000693475811208558.post-3395967461010108212013-03-07T18:51:00.000-08:002013-03-07T19:07:32.174-08:00Are We Wrong?It is an important question for us to ask: Are we currently wrong about the direction of the economy and finance? We must ask ourselves this question so we can learn if we, those who have chastised the fiat ponzi of finance and the psuedo-science of economics, can figure out if we are right and if so how right we are.<br />
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Let's start off the the precious metals sector: This is a sector of investment that has been relegated to such catigorizations as - for doom and gloomers and a fear trade, speculation (whatever the hell that means but probably as a reference from the media about day traders), and other such things like "stupid", for it just sits there and has no growth potential like a company, and it does not pay a dividend.<br />
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These are of course the tactics of the banking owned and operated media to give the exact opposite take on the metals themselves. First, they are productive, as precious metals are the underlying fundamental technology behind all technology. There is no computer without PM used as a conductor, there are no solar panels without silver, there are no catalytic converters without platinum; there are no bombs for the military - even thought we could do without that, the US run world economy couldn't.<br />
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Second, the fact that it does not grow as a company means it also does not shrink like one - not having counter party risk may be the most important reason for owning PM; not having dividends paid out is fine when you are not worried about your investment going under.<br />
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Is it the fear trade? Why not the smart trade? Why don't people think it is smart to own what was used for thousands of years as money?<br />
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Who cares what the traders do in the pits? Most of what they do is upon command from the very banks that have crashed the economy over and over and over and over and over again.<br />
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Stocks are at all time nominal highs priced by the dollar, King of all Fiat. Bonds are priced at all time highs, pegged by all Central Banks buying them en masse. Does this mean anything to me? The wealth created by the rise of nomianly priced equity has been equal to the inflation of the denominated currency. Bonds are artificially high, and if there is one word that comes to mind when something is priced high it is "bubble" - and bonds make up the greater of finance when compared to equity: If bonds collapse all hell breaks lose. People will want to go to cash but inflation will steal a consistent return from their pocket. People may want to go to stock but pick a stock, I dare you; tell me which company will do well in such an environment.<br />
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That leaves us with commodities, but how will you invest in them? The futures market? How do we know that futures are trading accurately? Trust the CME? Sure, that sounds smart. If we ever wanted to take delivery we would lug around a barrel of oil? Ten thousand barrels of oil? Sounds crazy. Trading futures is especially mad if the dollar and other fiat continues to break down, because those currencies are how you will take payment.<br />
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I have been saying for years equity would rise. I wrote an article years ago how we would skip through DJ 13k (I was way ahead of course) but I stuck by it. Now I am wondering how much higher we can go; specifically, can equity go higher without a significant breakout in gold? Without a significant breakdown in FX? Without a significant breakdown in bonds? Or all of the above.<br />
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We are at an inflection point, and how interesting that my last call at LH's Market Watch on PM was for gold and silver to break out in April and May (read the last article). Get ready boys and girls....the mountain is about to turn into a volcano. Mr Lennon Hendrixhttp://www.blogger.com/profile/07859347238367669491noreply@blogger.com0tag:blogger.com,1999:blog-1000693475811208558.post-7373057976779474032013-02-18T15:34:00.002-08:002013-02-18T16:15:28.837-08:00What If?I know one of the questions everyone has is, 'What if the central planners had never stepped in with easy monetary policy? What if we had never had any of the QE programs by the Fed and Treasury?' I want to try to address these questions and also give me guess at to what prices would have looked like.<br />
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The first thing we hear is that if these programs had never been created and implemented then the 'recession' would have been much worse, but considering that it has been a depression (given real UE and real GDP numbers), is it true?<br />
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We need to start a long time ago however. So long ago that we really can't guess what the price action would be now. If we start with the fact that the bank runs in the beginning of the 20th Century were manifested by John Pierpont Morgan, that the First World War was created by European Aristocrats, and the Great Depression was instituted by Wall Street, then we can see where this is all headed. We can't accurately find P* (price) becuase it has been so distorted over the years.<br />
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Yet let's continue the historics so we can see how much manipulation has occurred. After the Great Depression FDR devalued the dollar in terms of gold (I am also going to stay away from social programs), then WWII started - another war that was created by the financial system. Then the Military Industrial Complex got in full swing and has had war after war since, costing tax payers trillions of dollars for slightly better technology at the expense of a lot of bloodshed.<br />
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The 70's saw the MIC lose a big war with the Fall of Saigon, and before that the US was already going bankrupt and had to pull back the gold standard from the international market. Then we get into the coked up Wall Street of the 80's and all of the shady deals that happened then, ending with the collapse in '87. The 90's had the LTCM scandal, NAFTA (which shifted industry across the ocean), the end of Glass-Steagall, and the dot-com bubble (and many small wars). Then we get false pretenses for wars after 9/11, a housing bubble, and another stock market collapse. So really, more lies and scandal by the Fed and UST were just the norm come '08.<br />
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It will be impossible to discover accurate P* (price) given all of their previous losses. Price discovery uses standards and metrics that monetary policy has blasted into sand over the century. If we had not had all of that lying and cheating then maybe an ounce of gold would be worth what it was in 1912 and we would still be purchasing dinner with our metal change. But the fact is our currency's purchasing power has been inflated away and we now spend $100/month on internet. We spend $5 for a beer. We spend $5 for a gallon of gas.<br />
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So what if there had been a collapse of finance in '08 - however orchestrated by ineptitude and malfeasance - and proper measures had been made? First let's assume control right at the top of the market: I am not sure but I would assume that the banksters shorted the markets on the way down, even the PPT and other government working groups (they are concerned with only making money anyway). So if we had it proper, we would have let the big banks go out, and other banks that were not in trouble could have bought their holdings on the cheap. It is possible that community groups could have bought mortgages cheaply and people who had never been entraupanuers who had savings became the new banking industry.<br />
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Yes prices would have fallen, but we see now that there is a 1:1 ratio on goods to services. So houses would have been cheaper, but oil would have been too. Therefore the pensions would have been lower but we would be buying the same amount of goods. The only reason higher prices are wanted is because corporations wanted their stock prices higher. The average person on the street would have been better off.<br />
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Unemployment is a hard one to figure out. A lot of work had already been outsourced. Maybe there would have been a return to community though. Maybe those corporations that needed high equity prices would have gone under and local companies would have hired those out of work. Basically all we did was keep the crappy system together at the benefit of the rich. DJ 5000, oil at $50/b, gold at $1k, it doesn't sound bad to me.Mr Lennon Hendrixhttp://www.blogger.com/profile/07859347238367669491noreply@blogger.com2tag:blogger.com,1999:blog-1000693475811208558.post-10785382913996110032013-02-14T14:59:00.001-08:002013-02-14T16:05:04.710-08:00Recent Technicals and Future PrognosticationsI was asked how I feel about platinum right now and I decided to write a post on the technical behavior of precious metals, and touch on platinum too.<br />
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To start, gold and silver have been money for thousands of years, yet platinum has not always been seen that way. Platinum was shaved off of silver like natural gas was flared from oil wells. It has only been recently that platinum has been used in bullion coins.<br />
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I've always been very bullish on platinum because it is in such short supply. The interesting thing about platinum is that it is not talked about as a monetary investment in broad terms. So if there ever is a turn in investment and people move cash towards platinum it could be wildly bullish.<br />
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I looked at some short term charts today: gold looks under bought, silver looks like it is in the middle of its recent range, and platinum looks over bought. My coin dealer says silver and gold should follow platinum higher.<br />
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I think, looking at just the charts, silver could consolidate until May (although trading is becoming very volatile, signaling a coming breakout), gold looks like it should break out in April. Platinum looks like it has already broken out. I like to think of the complex as trading together but they don't move in tandem. Look at how silver broke out in the spring of '11 and gold followed in the end of the summer. Platinum spiked before the Fall of '08 much more than the others.<br />
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Looking ahead I will put it this way - I think silver will trade 15:1 vs gold, I think that platinum will likely have a greater premium in the future due to its small supply, and I see gold moving to about $10k to $20k once rates top out. I see rates having to get to 15% to kill the inflation that is and will be in the market. This is a long term outlook mind you.<br />
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I think that the next leg for precious metals will rise a little faster than the second leg up. I think gold will get between $4k to $5k during that time. I think the Central Banks can print to buy bonds for about another year or so. There will be a turning point where there is massive inflation in the system. When it is undeniable rates will have to rise.<br />
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Then once rates rise I think gold will go parabolic. This is when we see $10k to $20k. I also think that the DJ will be 1:1 with gold during that time, and I think fiat currency will be burned into ash. Then the system will have to be revalued, backed with gold, or all governments fail and people get to create a new political system. I am hoping for the latter, thus why I will wish that all the good people of this blog buy silver and tell their friends this cause.<br />
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Of course there is also the kicker - when oil production plateaus it will spike price and kill the fiat currencies. The EIA says it will happen in 2015, but they are as accurate at predicting oil production as the BLS is at predicting unemployment. So I think it will be before then. When this happens it will be perfect cover to raise rates. The last thing the oilgarchy wants is anyone knowing that oil is finite and that we have no current technology to replace it EROEI wise.Mr Lennon Hendrixhttp://www.blogger.com/profile/07859347238367669491noreply@blogger.com3tag:blogger.com,1999:blog-1000693475811208558.post-34643916313363819772013-02-13T12:05:00.001-08:002013-02-13T12:20:30.332-08:00No Good NewsMost media outlets and all the political puppets have ignored a negative 4th quarter GDP print and also the fact that jobless claims have stayed near the long running highs. 2012 GDP came in at a paltry 1.5%. This is at the most hinting at recession.<br />
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Yet when did the recession end? When the Fed began pumping trillions of dollars into the finance sector? The news cycle is blatently ignoring flashing lights.<br />
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So the economy has spun out of control once again, stocks are at highs once again, and everything is fine. Sound familiar? It should. When things are at their worst everything is spun.<br />
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I imagine February should see things brew up and a collapse of sorts should come in March. I don't know if bonds will begin to sell off in earnest, causing rates to rise while stocks....fall? Maybe stocks rise nominally to inflation since the Fed will continue their large purchase operations.<br />
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I do know one thing - precious metals are about to begin their third leg up. The move should begin in between March and May. From the charts it looks like silver could trade flat until May but gold looks like it should ramp up before then. I don't know where the top will be but I do know the next plateau will be at $3k. We will get there and then maybe something will be done about the Fiat Ponzi the Fed is running. Maybe not. Maybe at that point the establishment tries something else stupid. Who knows.<br />
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**Please note, this post was written a couple weeks ago but went to "Drafts" instead of on the board**Mr Lennon Hendrixhttp://www.blogger.com/profile/07859347238367669491noreply@blogger.com1tag:blogger.com,1999:blog-1000693475811208558.post-28721845523403147292013-02-13T11:45:00.001-08:002013-02-13T12:05:17.279-08:00How? Buy Silver!How is it that stocks can rise to all time highs and gold and silver trade flat? How can miners continue to fall? The banksters are tricky, but they are not clever. The only way that this can be done is by supressing the paper price of bullion while leveraging equity. This will not end well for a financial system that has been broken for decades.<br />
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It may be that the only thing that can stop the Fiat Ponzi dead in its tracks is a spike in oil prices due to falling production. It is possible that a squeeze on silver production can happen, but that depends on how much bullion the banks are willing to let go. As far as I can tell the bullion bank coffers are emptying at an alarming rate. Maybe COMEX does default.<br />
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As far as gold I think that all Nation-States are in on the malarkey. The bullion is passing West to East so the East will keep playing the game. The West will be depleted and America and Europe will finally be conquered by the establishment, an establishment consisting of British Royals, European Royals, and other blue blood factions on the Eastern Seaboard. They have plans to remain above the water. How they plan on doing that I haven't a clue.<br />
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Other than waiting for peak oil production to hit (which is like waiting for paint to dry) our other option is to take enough silver off of the market so that there is an investment/industrial squeeze. I know that everyone that reads here understands this and likely discusses it with friends. It is important to keep doing so. Remember that each person is different and they should be treated so.<br />
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There are many tools to use when trying to get someone to invest in silver: Do they wish to make money? Silver looks to have great upside due to industrial use in technology and investment demand. Do they want to end the Fed? Taking back the silver supply will destroy the dollar because the dollar and silver trade inversely. Supply/Demand dictate higher prices, and money will be made, and if enough people do this we will take back our freedom from the totalitarian establishment.Mr Lennon Hendrixhttp://www.blogger.com/profile/07859347238367669491noreply@blogger.com0tag:blogger.com,1999:blog-1000693475811208558.post-78615461922590731412013-01-19T19:06:00.000-08:002013-01-19T19:29:53.809-08:00Silver ShortagesThere are reports of silver shortages this week. The first and most important is that the US Mint will not be shipping Eagles next week, this after record buying in 2012 and 2011. The US Mint should be the most powerful mint in the world and for them to cut shipments, even for a week, is a harbinger of things to come.<br />
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The next report is that industrial silver is seeing a shortage. This was the goal of the "Buy Silver" movement and if we achieve our goal then we could see a crisis occur in the Fiat Ponzi that will be unprecedented.<br />
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In some order we don't know i) shorts will get stopped out, exacerbating the up move and rendering the derivative part of the suppression scheme useless ii) the COMEX, which has been defaulting on delivery for years, will default even more so, sending paper to buyers who seek physical iii) the dollar will falter as the reserve currency, rendering the MIC complex marooned and the debt worthless iv) industrial supplies will have problems until miners unshelf some reserves.<br />
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Yet at what price will miners, who have already seen production plateau, release reserves?<br />
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We need to look at the last big more for silver, the move from $20 to $50, to know what the next big move holds. While price is rising miners will hold their breath hoping to sell the top. So if we start the move here, at $30, we should see a top of $75 looking just right for those hoping to take profit in silver.<br />
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Putting a time frame on this move is difficult, but once again history will be our guide. It took silver about 6 months to move from $20 to $50. This next big move should fall in a similar line.<br />
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Prognosticating is all fun and games, but remember that silver will be rising in part due to weakening fiat. This means will and other commodities will be rising. This will be a very exciting but also frightening time. Having silver will help one preserve one's wealth, but in the coming months there will be other things more important to get in order.<br />
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For topically relevant reading from this blogroll see -<br />
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"The Looming Shortages", October 24th, 2012:<br />
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http://lhmarketwatch.blogspot.com/2012/10/the-looming-shortages.htmlMr Lennon Hendrixhttp://www.blogger.com/profile/07859347238367669491noreply@blogger.com2tag:blogger.com,1999:blog-1000693475811208558.post-84223676284779284792013-01-12T11:06:00.002-08:002013-01-12T13:32:22.900-08:00Currency DevaluationThe Yen is down, Japanese stocks are up. The dollar is down, US stocks are up. But in the case of the dollar Vs US stocks over the last two days the dollar did not give up its gains to the stocks. The dollar was down (via the DXY) 2% over the last two days and stocks managed a paltry move. It is dangerous when currency is falling and nothing else earns any payment.<br />
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Precious metals saw a nice gain on Thursday but came back to earth Friday. Bonds haven't had a big move in weeks. Oil sloshed around while the currencies devalued but had front run it anyway. So in the last few days the world saw its currency devalue with nothing evening out the loss. This is the most dangerous thing that can happen.<br />
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Yet this is what I have been expecting. Many of us have. We don't buy silver and gold to become rich, we own it to maintain our purchasing power. In the long run I believe that is what will happen, and that is why PMs will likely make a nice big move coming up, probably leading up to the debt ceiling debate.<br />
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But the currency devaluation of late should make everyone panic. It is sad that it is not. People using dollars to store their wealth lost 2% of their purchasing power in 2 days. We don't need to pity them, for they shouldn't have much faith in the dollar anyway, but the fact is people are scared to invest in stocks and I don't blame them. They don't know the alternative though - wealth should be stored in things with intrinsic value, namely gold and silver.Mr Lennon Hendrixhttp://www.blogger.com/profile/07859347238367669491noreply@blogger.com0tag:blogger.com,1999:blog-1000693475811208558.post-23413314187619958182013-01-05T11:45:00.001-08:002013-01-05T15:04:53.188-08:00Physical Buying will PrevailNo matter what spin or manipulation the financiers, mediamen, and economists give, in the end there will be no way to stop a sharp price rise in physical bullion. It has taken awhile and it could take longer and it may take until there is litterally a shortage of bullion for purchase. That is the long term scenario though, as it is also possible that one of the Central Banks runs out of ammo, switches to back their currency with gold, and the shorts get squeezed out epically.<br />
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It is a David vs Goliath battle. On one side are the people that buy physical bullion. These people are rarely even millionaires which makes the buying small in comparison to what the paper pushers (banks, HFs) can do. On the other side is anyone buying miners, ETFs, and other paper vihecles, people shorting the vehicles (JPM or individual day traders), and also people who believe paper is money.<br />
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The last group is important to dissect because if people stopped using dollars to buy milk and cookies and we used silver we would crash the system in a day, but this would mean a paradigm change and the status quo is not ready for that and will likely clutch their milk bottles until a new system has formed. People who own the paper metals and short the metals and other vehicles are just chasing paper and do not realize their is a better system. This is why it is likely that the only way the system will change is if enough people take enough bullion off the market and create an actual physical squeeze.<br />
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There is also a chance that the Central Banks go careening over an edge of monetary policy that no one knew was there, but since all Central Banks are cordinating with each other it is likely that they will not lose their nerve and will keep printing. If one Bank did jump from the dollar to gold the system would change on a dime but I don't think that will happen. That is why it is important for us to continue to spread the word and do our part and buy silver.<br />
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It may seem like a tall task to take on - the fight for our ability to use real money - but it is ours to keep. We have the wind at our back considering we our taking a finite resource from a group that prints their resource - the dollar - out of thin air. But it seems daunting when it takes years and years of high unemployment and other troubling economic news to wade through. We keep fighting though, as it is not only our nature, it is our destiny.Mr Lennon Hendrixhttp://www.blogger.com/profile/07859347238367669491noreply@blogger.com0tag:blogger.com,1999:blog-1000693475811208558.post-56176646261613518472012-12-31T09:11:00.001-08:002012-12-31T09:11:04.189-08:00Monetarians Vs FiscalitesBen Bernanke coined the term "Fiscal Cliff". That is public knowledge now. But how did he in charge of monetary policy have the fore sight to label the greatest debacle since the last debt ceiling increase before anybody else could? Because he wanted a smoke screen for his horrible monetary policy.<br />
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He instituted QE4Ever right before this debate so that no one would discuss the continued propping of the monetary system. Then he sat back like a bandit with the King's Ransom and let Congress throw banana peels at each other like a barrel of caged monkeys.<br />
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Either way it is cut both groups (the Monetarians and the Fiscalites - those in charge of such policies) are using fallacious terms to engineer debate, but the more dangerous one is the current monetary policy. The fiscal policy can be justified but the monetary policy is built on absolute lies.<br />
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Should we increase revenue? Cut spending? I wouldn't say I know what to do, but I do know the current monetary policy will wreck the economy. The Fed heads know this and that is why their think tank coined the term a year ago. Now that all eyes are on the Fiscal Cliff they can sit back in their counting houses and flip their monies.Mr Lennon Hendrixhttp://www.blogger.com/profile/07859347238367669491noreply@blogger.com1tag:blogger.com,1999:blog-1000693475811208558.post-51130530504230123412012-12-20T17:44:00.000-08:002012-12-21T11:43:47.575-08:00End of the Year ActionRecent market action is a harbinger for wicked things to come. The selloff in precious metals comes on the heel of higher rates and that on the back of QE4Ever. You wouldn't think this makes sense but as Bernanke follows the Art of War he wants to do the exact opposite of what everyone expects. Iniatially anyway.<br />
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The fact that the Fed will now monetize $85 billion bonds per month will wreck the same havoc as all the other programs before it, but we are reaching end stages and so this time it will be much more evident. But so it is not evident right away the Working Groups behind the scenes will hold up the levy until the MSM circles onto another dying carcass. For if the public was made awware that Bernanke's monetary experiment would end the financial system as we know it there would be panic, and the last thing the experiment wants is panic.<br />
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So on light trading precious metals may continue to fall. The worst is likely over but who knows. The debt debacle will continue until late January at which point either the system continues on the highly leveraged and inflationary path it is on or it all comes crashing down.<br />
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Any way this is cut bullion will be the safest road. Now is as good as any time to buy, for in the months to come, the prices will get higher.Mr Lennon Hendrixhttp://www.blogger.com/profile/07859347238367669491noreply@blogger.com0tag:blogger.com,1999:blog-1000693475811208558.post-25820676926243722282012-11-28T15:31:00.000-08:002012-11-28T15:31:20.248-08:00The Never Ending InflationInflation compounds on itself like a bad story. The opening is bad, the plot points are lackluster, it drivels along, and then at the end the whole story is in shambles. This is exactly how inflation will read on the pages of history.<br />
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The Federal Reserve was a bad idea. It was ill conceived to believe that a private cartel of bankers could every have the States best interest at hand. It was ill conceived to think that having a domestic fiat note would work and it was moronic to use fiat as an international standard that replaced money. This because not only would inflation wreck havoc on the cost of assets but because there would be a turning point when fiat goes up in smoke.<br />
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It could be that the point is looming near, or maybe it will be a year before fiat goes up in smoke. Either way, having a standard backed by nothing other than the promise to pay means there will be an end, and like a bad movie, people will want their money back.Mr Lennon Hendrixhttp://www.blogger.com/profile/07859347238367669491noreply@blogger.com1tag:blogger.com,1999:blog-1000693475811208558.post-12347295292923601212012-11-14T12:11:00.003-08:002012-11-14T12:11:49.841-08:00The Great WashFInance has been a clusterfuck for a long time now. Every year an investment that was a great idea is suddenly the worst and vice versa. We had the dotcom bubble, then everyone decided to flip houses, and huge sums of money were lost. Now Americans are scared to make any investment. They are scared of inflation but don't want to buy stocks because of yearly budget crisis. They are scared of taxes and so after dividend paying stocks being the go to investment of the last year they are being sold but municipal bonds are in a bubble so don't buy those. Bonds are in a bubble so don't buy those either. Dollars aren't earning any interest at the bank so don't put your money there. Basically there is nothing for people to invest in anymore.<br />
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At least that is what the MSM would have you believe. The pundits and media have scared people because the system was created out of lies and sold to the highest bidders and the cat has been let out of the bag. But the one thing that is a good investment falls on deaf ears because of conditioning rhetoric.<br />
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Precious metals are discussed frequently on this blog so I will assume the reader understands the benefits. Instead I will use the rhetoric the MSM does. They don't pay interest, they just sit there and aren't productive, and they are volatile. Of course these are only some of the reasons to buy. Buy at an affordable price or make monthly purchases, there is no counter party risk, and what is interest other than a syphoning of funds.<br />
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The Central Bank policies and MSM have destroyed investments in a great wash of the last several decades and now Americans run around scared as cats losing their wealth behind every bush. The great wash will continue and soon the cats will either be broke or finally stop listening to the bells and whistles and make a good investment into real money.Mr Lennon Hendrixhttp://www.blogger.com/profile/07859347238367669491noreply@blogger.com1tag:blogger.com,1999:blog-1000693475811208558.post-63286297854156987872012-10-24T16:37:00.001-07:002012-10-24T16:44:23.090-07:00The Looming ShortagesOne of the only things I have walked away from the study of economics with is the law of supply and demand. It may not be as cut and dry as the books teach, but the over all theory works to find an equalibrium concerning price.<br />
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This summer we have seen some very important goods fall prey to shortages of supply. The first was corn and other food staples. Because of this many farmers slaughtered their animals because feed was high priced. So soon we will see shortages of meat.<br />
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Another supply concern is that of precious metals. Platinum miners went on strike in South Africa and were followed by gold and silver miners. This will create a supply crunch down the road.<br />
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As for precious metals, investment demand has been quelled by paper products. This will not help industrial demand. If there is ever industrial shortages the price will rise. This is one reason rising investment demand may help create price appreciation - it could squeeze industrial demand.<br />
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Food products are not so easily created. People can eat less meat if the price rises too high, but since everyone eats the inflation will be obvious to the status quo. Precious metals can rise and not everyone cares. Many people think gold is a barbarious relic; they don't understand that it is being used to shore up Central Bank balance sheets across the world. They don't understand that in every cell phone there is fifty cents worth of silver. They don't understand there is platinum in every catalytic converter. They don't understand that gold is in every computer's mother board.<br />
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With rising costs due to monetary policy, with rising costs due to peak resources, a major supply crunch will throw a wrench into the system. I expect the above two examples (meat and metals) to do just that next year.Mr Lennon Hendrixhttp://www.blogger.com/profile/07859347238367669491noreply@blogger.com1tag:blogger.com,1999:blog-1000693475811208558.post-35207344473357643202012-10-21T19:28:00.000-07:002012-10-22T11:59:27.343-07:00Precious Metals, Asian Trading, and the ElectionWhile precious metals have moved lower over the last couple of weeks, the dollar has not budged. Since last summer there has been a disconnect in the long trend, the long trend which had the dollar move inversely to all assets. First the dollar strengthened, stocks fell, but gold moved up - this was the case last August. Then the dollar stayed flat while gold fell and stocks moved up. Now we are in another round of capitulation where the dollar stays flat while assets move lower. The message to take away from this is that another major move is at hand. Capitulation of a trend always results with such.<br />
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What will the next move bring? Nothing is certain so let's analyize what has happened in the past to best understand the future.<br />
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One of the greatest moves of capitulation, and something still fresh in my memory, was the huge drop in silver in the Spring of '11. Let us not forget when the move happened - it happened in overnight trading. Asia was the live market when it happened. This means one of two things: Either China and other Asian States took it down, or JPM and Co. have great access to those markets. This means that we should not trust Asia to support the Precious Metal market. They are supporting the Status Quo just as much as any of them.<br />
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Now let's move to the current happenings - the election. One of two things are happening here: Either the Blue Team and the Red Team have agreed on terms for oil, gold, and stocks, or there is no more either/or and there is now a Purple Team who have an exact idea of what will happen. Although oil and gold is high, it could have gone higher by now if the Fed had juiced the flow of funds. This would have had stocks higher and pensions and IRAs/401ks with them. I think that people closing in on retirement are blind to what rising gold implies (the death of fiat instruments) and higher stocks would have trumped higher oil prices. I think that higher asset prices would have been in Obama's favor for this reason. The fact that they didn't move higher and that corporations are reporting poor earnings shows that the CEO class is pro GOP. Yet economics (Neo-Keynesian theory) have set the table for the Democrat party.<br />
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If Romney wins he says he will label China a currency manipulator from Day One. This has heavy implications because the world will know how weak Romney is from the get go. If he doesn't give China this label he is a Flip-Flopper of epic proportions, but if he does then he is willing to sacrifice the dollar for the favor of the Corporate Class. I say this because if China strengthens the Yuan it will take the dollar down by 20% over night, and will then force a run on the dollar that would equal another 20%. This would see stocks rise, albeit equal to the dollar's drop in nominal terms, but basically if you are like most people and don't have your life savings in stock you will be broke. Wages will not rise proportionally either. Hard assets will also rise, and who can buy gold for $3k? Not many people.<br />
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The fate of the dollar has an enevitable one, but with Obama it will happen more slowly. I am not saying one choice is better than the other, but I want to make this observation so we know what will happen when the election happens. I think that until the election the game will be on pause. Sometime after the election, maybe in November, maybe December, but by January, the fate of America and the dollar with it will come to pass. The Fall of the dollar will last for a few months, upon which time it will die and a New World of old will emerge. Mr Lennon Hendrixhttp://www.blogger.com/profile/07859347238367669491noreply@blogger.com0tag:blogger.com,1999:blog-1000693475811208558.post-384684815536816102012-10-10T18:19:00.000-07:002012-10-10T18:19:05.212-07:00The 9thWe are now about to witness the first pitch of the top of the ninth. The Fed will issue its MBS buying for the month tomorrow (the eighth business day of the month) and serve up half a trillion dollars out of thin air. These dollars will be used to front USTs to the PDs and fractionally reserve assetsso to keep the system leveraged. What we have seen since the QEX announcement has been a rearrangement of chairs on the Titanic - it's all going down man.<br />
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It starts tomorrow and the top half will last until about January 20th. During this time the system will be releveraged by about 10:1 from where it is now. After that and until about March 30th the system will be releveraged again 10:1. The leverage from where we are now will be 100:1.<br />
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I think that everyone who reads this blog already knows what is about to happen (all FX is about to get thrown in the furnace of the Central Banks). I think by January 20th anyone paying an ounce of attention will notice that the fiat system is slipping into oblivion (they will notice because of higher gold prices). I think by March 30th everyone will notice (due to significantly higher gas prices).<br />
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I am looking at the DXY retesting 81.5 next week and then moving sharpley lower after the Fed not only buys more MBS but loans against them and expands their balance sheet. I think this will cause gold to move higher. It will take silver with it. Oil will move too as it is a part of the complex but it will lag if only by inches. Mr Lennon Hendrixhttp://www.blogger.com/profile/07859347238367669491noreply@blogger.com6tag:blogger.com,1999:blog-1000693475811208558.post-3250173654130732752012-09-25T14:22:00.001-07:002012-09-25T14:56:41.330-07:00QEXWe have a new said program. Not only did we know it was coming we knew it was never ending. I had long dubbed this one "QEX" because it is the tenth round of easing since the Fall of '08 but little did I know the X would stand for infinity.<br />
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I read the white paper that details the program from the NYFRB and I found it to be vague. I did take some tid bits from it however.<br />
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The majority of the buying will be on the eighth business day of the month, but MBS buying will continue until the end of the month. The $40B monthly program is also only targetting that stated amount. They will buy more all the way until the end of the month if needed.<br />
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The unsaid part is even more scary. Since the Fed is like any other bank they will be able to fractionally reserve their assets and rehypothicate them at will. This means the new program will total over half a trillion dollars per month of unsterilized dollars. Combine this with the OT2 program which is sterilized and we get another half trillion dollar program. This means that the Fed balance sheet will expand to at least $1T per month. Yes, that's right - per month.<br />
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By my best guess the new program will begin on October 10th. I expect it to blow asset prices out of the water from the get go, so the window to buy precious metals and get your house in order is closing.<br />
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I will also add my bugout bags were completed a couple weeks ago when I bought a ceramic water filter hand pump. I have food, PM, friends and family and a way to get water. I think that this financial and economic system will last only months from here. Please make sure you have everything you need now.<br />
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I will point out that after the dust settles the world will be better off without the current financial system. It will be harder for Americans, because oil will not be as easily procured due to the loss of a world reserve currency, but I think it will make us appreciate life that much more. People will have to make their own clothes, garden, etc, but I think that work is good and it will bring us closer to the earth. I think that we will keep the power plants on, even if they run at a lower capacity. I do not see us going head first into a Mad Max scenario. But I do think there could be weeks if not months of confusion which is why it is important to have that amount of food and water and barter and money.Mr Lennon Hendrixhttp://www.blogger.com/profile/07859347238367669491noreply@blogger.com1tag:blogger.com,1999:blog-1000693475811208558.post-60090048039846132542012-09-12T16:28:00.002-07:002012-09-12T16:28:31.829-07:00QE WhateverAre the markets expecting another round of quantitative easing? Or are they just experiencing the massive devaluation of the fiat currencies of the world? Either way prices have risen dramatically in the last couple months. Oil is up and precious metals have made a move we have been expecting for a couple months. <br />
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Tomorrow Bernanke will open his mouth. No one knows what he will say. He has been leaning towards announcing further easing of monetary policy but who knows if tomorrow will be the day it is announced. We should note that policy is currently easy as POMO operations and Operation Twist 2 continue. This is keeping their low interest policy in line. This is important so the UST can continue to pay the interest on the debt. When rates rise then the UST is bankrupt and the Fiat Ponzi, on the back of the dollar, ends.<br />
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I wrote awhile ago that precious metals would begin to move up in July. They did. Now they are back in the middle of the long term range. This is a great time for them to consolidate. 1740 has held for a few days now and is poised for another move higher. I think we will see $1900 in the next month. Silver is also in the middle of its range and I think we will see $40 by the end of the month.<br />
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The future will see both metals double after that. The whole financial and economic structure is completely unstable. Fiat currencie has over saturated finance. The bond market is subject to collapse due to artificial demand from the Fed. These two sectors are killing each other: the Fed prints dollars to buy bonds but the bonds lose value due to the ever inflating dollar. This is creating a dissenence not ever seen before in finance.<br />
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Whatever happens tomorrow will not matter in the long run. In the end gold and silver is money and the Fiat Ponzi will fail.Mr Lennon Hendrixhttp://www.blogger.com/profile/07859347238367669491noreply@blogger.com0tag:blogger.com,1999:blog-1000693475811208558.post-58987166436848575652012-09-01T08:15:00.003-07:002012-09-01T08:26:07.651-07:00Bank Policy ToolsAnyone surprised when the Fed does not announce "QE3" and stocks don't sell off is a fool. This is, and has always been, a centrally planned market. The Fall of '08 was planned, as the PWG likely shorted stocks on their way down. The rise of prices was planned, as is dictate by Neo-Keynesian economics (to lower the value of currencie to "support" prices) to get out of a recession/depression. And now there is no going back. If stocks fall, if there is another crash in equity, then it will be shown that the Fed failed, that the governments of the world failed. Maybe this is what the policy makers want. Maybe they want their New World to feature no governments and no Central Banks, but I think we are still a couple years out from that if that is the end.<br />
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Until then the policy makers can do whatever they want to meet demands. The Fed is still printing money. They never have stopped since their inception. The UST issues debt and the Fed prints dollars. They can continue to purchase bonds without QE. They can loan dollars by fractionally reserving them and they do not need to tell anyone. These policy tools will keep the status quo in line for awhile.<br />
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The only thing the Fed can not do is print gold, and because they use it as a reserve on their balance sheet (they base loans off of gold) that means that they will use it to balance out their liabilities. This means gold will have to go up.<br />
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So now we see the dollar's value must go down (to increase exports and "support" asset prices) and to do so gold will rise. The Fed does not need to issue another QE for now as they continue POMO and OT2. They will also loan gold out which at first will quell demand and add supply, but in the long run they will be loaning gold out at 100 to 1 and when they reign in the loans gold will spike huge. These policy tools will only last so long, but they will mitigate the economic problems the Fed sees for a few more months.Mr Lennon Hendrixhttp://www.blogger.com/profile/07859347238367669491noreply@blogger.com4tag:blogger.com,1999:blog-1000693475811208558.post-1311804337414016512012-08-16T21:44:00.001-07:002012-08-17T07:32:19.005-07:00Rising RatesRates will rise. This is a given. Rates could fall further in the near future (the long bond, if not already negative, could be negative in real terms even by the Fed's guage if rates continue down), but Bernanke says they will rise sometime in 2014 (how about that for telegraphing?). So what happens when rates rise?<br />
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First let's address who owns the debt. Central banks own most of it, and then investors own the rest. The investors are everyone from millionaires to 401k holders. They have been passed the debt from institutions, who also own some debt for their own purposes (JPM's prop desk, for example). So this debt has traveled the financial world to encompus many owners.<br />
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Where finance is concerned there are two distinct scenarios which can engulf the landscape and they are inflation and deflation. So far we have seen inflation in such hard assets as gold and oil. Deflation has been unrelenting concerning housing and wage increases. Debt finds an interesting place between the two because in this environment (and we could debate if we are currently in an inflationary or deflationary one) rates have fallen while the bond prices have increased. This should be signaling deflation, but prices of goods continue to rise, confusing the issue. <br />
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When rates rise the value of bonds will drop. This will crush the bond trade. Sure, many people hold bonds until their maturity, but bond traders don't. These traders will be passing hot potatoes as they fall in value, and the value will be dropping quickly. For every 1% that the rate of the ten year goes up, the value will drop 14%. This is a huge loss for bond holders.<br />
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That is what will happen to the bonds, but what will happen to the holders? Pensions and 401ks will drop in value and people will lose the value of their savings. For the Central Banks their balance sheets will be blown out. These banks are holding these bonds and will need a counter balance for the banks to stay at par. So an asset will rise in the bonds place. What will it be?<br />
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The banks could fractionally reserve their assets. This means they would loan them. They could loan dollars and other currencie, or they could rehypothecate gold, and other reserves. Any of these options would be highly inflationary.<br />
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Finally, if rates rise investment will run from bonds which will force the Central Banks and their proxie holders to buy more and this will force them to compound loans to make up for the losses. We can conclude that when rates rise we will enter a very inflationary environment until rates rise to a point higher than the inflation rate. Bernanke says it will wait until 2014 to start the rise in rates. How far they will have to rise to cap inflation from getting out of hand has not been discussed. Let's see if deflation is strong enough to keep the inflation damn from breaking until then.Mr Lennon Hendrixhttp://www.blogger.com/profile/07859347238367669491noreply@blogger.com0tag:blogger.com,1999:blog-1000693475811208558.post-38876338822599141022012-08-13T23:13:00.002-07:002012-08-13T23:22:43.721-07:00The FurnaceThere is a basement in hell which keeps the status quo going. It is comprised of dorito eating demons who are in charge of such various things as maintaining as many eyeballs on televisions sets as possible, shoveling as much fiat currency in hell's main furnace as possible, and there is a special room for the Artist (Formally Known as Prince) to write as many pop songs as possible. It is by making sure the masses ignore the "monie" printing that the demons fulfill their objectives of continuing the paradigm of hell across the land.<br />
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State of mind is as important as IQ, and so the culture washes the brains of the masses with garbage repeatedly. This is the ultimate distraction. All the while it has created "sciences", equally justifiable to the brainless masses, to exhibet the "truths". These truths consist of such filth as the "rational consumer theory" and "fiat monie principle". So while all eyes are on pop culture, the demons use their lies to set up the biggest con known to history.<br />
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Lies create lies, for he who gets away with a lie will live to tell another. There is no stopping the system of lies now, for the lies have come this far, and there has always been a timetable for an end of the Fiat Ponzi (devised near the furnace in hell by JP Morgan and JD Rockefeller). When was it originally thought to end? 2012? 2020? We have numbers now to determine such a time, and considering every resource from iron to oil appears to have peaked we can conclude that it will be a short order until prices of real goods sky rocket. This while people are told they will act rationally in good times, and do the same in bad. This while the masses base the wealth aggregate on how much debt is accumulated. This while people turn their brains to mush for an average of eight hours per day.<br />
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So while the world turns the demons shovel fiat currencie into the furnace in hell to power the system, and we are told this is what will keep the earth turning, not knowing that it is not earth that is propped up by the demons efforts, but hell itself.Mr Lennon Hendrixhttp://www.blogger.com/profile/07859347238367669491noreply@blogger.com0tag:blogger.com,1999:blog-1000693475811208558.post-83573593946821924692012-08-01T13:14:00.002-07:002012-08-01T13:27:40.354-07:00The InsidersThe FOMC minutes came and went and surprise surprise, they read with no new measures. The committee sees the recovery on track, albeit it taking hold slowly. They have the tools ready if needed. But now is not the time. So was it surprising when, with 3 minutes to go in yesterday's trading, a contract of ES futures sold for $4.2B? Was it surprising that Bill Gross said "stocks were dead". Was it surprising that algos went haywire with selling this morning? Not when insider trading is the norm, and anyone on the inside uses their connections to the Fed to trade according to plan.<br />
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I have long said the Fed's dual mandate is actually i) to confuse the "rational" consumer and ii) to maintain the status quo. Sure, I also say that the system is based on a metric, the dollar, with no value, and that it will ultimately collapse in the face of truth, facts, and reality, but that does not mean that the status quo can be maintained for awhile longer. Remember, the system can stay irrational longer than you can stay solvent.<br />
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One of the main reasons that is the case is because if you have a financial adviser then that person is likely not on the inside, or if you are a do-it-yourselfer, you are not on the inside. Even the inside boys struggle. Sure they can make a glove save and trade ahead of the Fed, but that won't mean great returns when there really is no investment in the "lost decade" (this is what financiers are calling it) that is making people well off (except for PMs). So Buffet and Gross, with their stocks and bonds, yield 3% annually and their clients maintain a semblence of their lifestyle.<br />
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Years from now it will be seen that inflation persisted, and that the real rate of return on must investments was negative, maybe flat at best. It will be realized that holding fiat in a bank lost 5-7% yearly. It will be known that the trends of higher prices continued even though every financial blogger hung on the Fed's words and thought deflation was underway. The reason for this is that even though QE 3 hasn't happened, ZIRP stays, the UST issues unreal debt loads, and the Fed continues to clear through POMO while they flip USTs from PDs T+1. This is all inflationary, and more than anything, not issuing QE 3, by allowing the rumor before the news, is holding back a tidal wave of inflationary pressure.<br />
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Like the tides of the oceans, the Fed let's finance wash in and out of QE expectations. I think if the Fed just came out and said no QE ever again it would be more inflationary than waiting for QE 3. The reason is, if people did not think the Fed would ease, they would chase yield, and assets would be leveraged. Instead financiers sit on their hands and then when nothing happens, well, it is expected soon. This holding pattern keeps the status quo in line by keeping expectations fixated on QE like a deer in the headlights and it freezes the inflation that is constantly building in the system because of the debt that is doing the same.<br />
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The Insiders know this and they also know when to make a trade and how to make a trade. They trade the rumor and then trade the news, and thus wash enough of a return to keep the system from falling apart. By working with the Fed they maintain their system of power. This system won't last indefinately, but it will go on as long as it has to.Mr Lennon Hendrixhttp://www.blogger.com/profile/07859347238367669491noreply@blogger.com0tag:blogger.com,1999:blog-1000693475811208558.post-87063395505498973752012-07-30T17:01:00.001-07:002012-07-30T21:12:25.006-07:00The Philosophy of EconomicsParadigms usually change before people realize they have. Those who can see a trend are usually thought of as gurus for this reason. They are the people warning of a bad winter. They are the ones who know what will happen next, and how to prepare.<br />
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When it comes to economics, nothing has changed for decades. Economics has become a science taught at Universities that use textbooks of the policy makers. People pay a lot of money to learn what is thought of as an infallable study. Finance has used this study to base business on. The concepts have been discussed at length here, such as fiat currency, the rational consumer, and others. SOme of these theories are accurate enough to use in simplistic terms, such as supply demand, but any thoery is just that: a thought, an idea. There really is nothing concrete about economics.<br />
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I like to think of economics as a study of philosophy. Something that has a lot of merit, worth, and use, but is not and can never be nailed down. It can be proven given certain paradigms, but when the paradigm changes, the study should change with it. With philosophy, we have grown from not needing to use god as giving the laws to understanding the philosophy of science. It isn't that god may or may not exist, but with science we can deduce certain rationale. We can do this by the philosophy of logic as well.<br />
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Yet with all of the great ideas of recent study in philosophy, the likelyhood that these ideas will too change is great. As a culture we are always learning, and thus we must not constrain ourselves inside old paradigms.<br />
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Neo-Keynesian economics constrains us. And it the dialectic should not put up the Austrian School as an absolute, or else we are caught in the Hegelian dialectic (another philosophy proven to have holes). But what we need to do is understand that times have changed, and we need to use new theories, or old ones we are not currently using, to make sure a paradigm shift does not catch us off guard.<br />
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My worry is that this is happening now. The economy, and finance with it, has changed drastically in the last 40 years. Wee have moved off a gold standard to creating an insurmountable debt that will never be paid in full, and the answer is too continue down this path like it is the only way. We must stand back so as to see the forest through the trees because the forest may be much larger and complex than we thought.<br />
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Or maybe the forest is a simple forest. One where we could create orchards and use the rivers and lakes to create a utopia. WHo knws? But we should not focus on absolutes, for the forest, as nature, will continue to change, and we should change with it and not against it.Mr Lennon Hendrixhttp://www.blogger.com/profile/07859347238367669491noreply@blogger.com0tag:blogger.com,1999:blog-1000693475811208558.post-51645535972281371512012-07-24T07:50:00.002-07:002012-07-24T08:36:55.454-07:00Dr Bernanke and Mr ChairmanThe crux of the economy lies on the fundamental theories of economics: the rational consumer theory that declares all consumers rational and that the consumer will save money during good times and spend during bad, the debt/fiat money theory that the metric of the dollar is sound, and other such theories. Finance uses these theories to run money, so it is important for economics to use theories that are susceptible to the financiers wishes. It was of course bankers, and not economists, who created the Federal Reserve system when a group met at Jekyll Island. Basically the "science" of economics is a bastard child of finance, and has no more to do with science than baseball.<br />
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When Dr Ben Bernanke, a highly esteemed professor of economics, became the Fed Chairman, he did so knowing full well he was about to become the world's most powerful banker. About 7 years later he relishes in the role. He understands the banking system like Dimon and Blankfein do, and as an economist second. He wants to bail out the banks. He wants to keep the racket going. He wants to make money.<br />
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Whatever good intentions exist in the "science" of economics are done away with once bankers and corporate financiers get ahold of the metrics. What policy has helped unemployment? There hasn't been one. The only policies used have kept the Fed's proxy banks afloat so to keep the status quo in line.<br />
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Many PhDs in economics are useful patsies. There are math problems that can show demand and price constraints, and "look we can do this and that" and then they go home for coffee and collect their paychecks. Bernanke may have been like this before he was Fed Chair, but once he tasted the power of the bank, he accepted his role and now funnels trillions of dollars to the banks and wipes his hands clean of any other work. Call it economics, call it finance, but more than anything, it is a control system that keep the finance class high on the hog at the expense of everyone else.<br />
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His mandates are much different than what is told. The first is to confuse the "rational" consumer. Remember, the market will stay irrational longer than you can stay solvent. Look at the gold miners. How can they be going down still while the bullion has been rising? It is not rational. How can stocks be up? Bernanke is using the dollar to buy into stocks. An economist would have lowered the value of the dollar to increase exports. Bernanke the banker is spending his dollars buying corporate stock.<br />
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As scary as economics is, considering it is used as a science but is more of a philosophy, the banking system is worse. The banking system uses economics to get what it wants, and it wants total control of the monetary system. Bernanke has switched from being Dr Bernanke to Mr Chairman, and as a banker, the world's most powerful, he will bring in the system of total banking control.Mr Lennon Hendrixhttp://www.blogger.com/profile/07859347238367669491noreply@blogger.com0