Wednesday, November 18, 2009

Just How Scared Should You Be?

It is a legitimate question. A floor above $1000 is being set in gold. The dollar has been crushed. The national debt is unmanageable (no matter how many generations you go out). The treasury is out of money and everyone (esp FNM and FRE) need more. Real unemployment is at 17%. We produce nothing as a nation (thanks NAFTA!). The markets are a fraud. California (the world's 7th largest economy) is bankrupt for goodness sake and 43 other sates face serious budget deficits. Do you think Buffett bought a railroad because transportation is going to be cheap? (and oil is going up up up again)

The insiders are dumping their positions in this pump and dump. GS is making money as fast as it can in the last big grab. Quadrillions in unregulated derivatives contracts that no one can audit or credibly account for. Massively underfunded pensions. The banks are hoarding money and not lending like ... well something bad is coming. Maybe the CRE implosion? (NOTE: that is the short list of a plethora pf problems that exist that I cherry picked. Please feel free to point out your concerns in the comments section.)

Everything they had to throw at the problem has been a waste. Show me any meaningful job creation that are not government related? Any benefits from government motors? Any benefits from TARP or any other stimulus program? Sure the markets are up only cause of accounting fraud, POMO and a dollar that is being crushed (this is the pump and dump). How long can the dollar carry trade last? They are out of bullets. They have stimulated nothing other than a giant fucking deficit. IMO there is NOTHING they can do to hold off the inpending implosion of this country (well. let's be fair, the whole global economy). You have to realize this now. You must realize this now. Enjoy this Christmas season, cause it may be the last worth remembering for quite some time.

IMO all this talk about raising interest rates is a red flag. Raising rates won't help a thing, not one thing. Bottom line is if there is nothing left to tax (credit is gone, unemployment is rampant, consumer spending is dead, small businesses are getting crushed - CIT bankruptcy?). Where the hell is all the money going to come from to pay for this tremendous deficit (hell, just the interest on the deficit - OK, let's be fair, the COMPOUNDING interest on the deficit)? Do you think China and the rest of the world will continue to fund the Ponzi scheme we have been living in since the 70's? Hell, no. They stopped purchasing "the world's safest currency" months ago and POMO and the FED have been monetizing the efforts of the reflation trade since (oops - someone ran out of money). That is a real winner of a strategy. Sounds like a strategy of last resort that did not work out too well.

Do you think the MSM is in on the act? Is there a possibility that what is reported is what they want you to hear and the truth is hidden in plain sight? Is there a possibility as a nation (world) we have become so conditioned that we can't see the forest for the trees? Why did Lou Dobbs leave CNN? Ratigan? Do you think GE or Rupert Murdoch want their relations with the government, the lender of last resort that owns everything now, damaged? You listen (or listened) to CNBS daily to the lies. How many interviews have you just LOL'd at the interviewee or the announcers talk about total bullshit. Those fuckers are SELLING investments. If you do not participate, they make no money. If your assets are not at work on a long term investment strategy that is diversified to ride out the highs and lows THEY MAKE NO MONEY. Cash will be king (ha, that is a funny statement these days) sooner than later, and I seriously hope you have stops set and an exit strategy. (This should sound funny coming from someone that knows quite a bit about this business being a former ML advisor - the truth hurts and those of you that have an "advisor" should be leery - remember, he/she make no money if you are in cash).

Let me briefly touch on the new administration that "promised" transparency and the right to read the passage of each and every bill before it is passed has failed to show up. the total lack of regulation and any sort of real punishment for wrongdoers. The gangsta like protectionism of big business interests over our best interests. The reinforced police forces that are hiring like mad right now. Hell, I'll even go as far (now) to believe in the FEMA detention camps that are all over the country.

I am not sure of how this all ends, but I am positive they have a plan in place or are developing one as they delay the inevitable. They know the end is near. If not, they are in total denial. Possibly the end of America as we know it (if you can not wrap your arms around that statement you need to read more) if something drastic does not occur. Can you honestly imagine anything other than a pure socialist state where everything is owned and run by the government is just around the corner? How is it that all democracies in history have ended? Is some sort of socialist government in our near future? Is our democracy on the doorstep of doom? I think so. This does not mean we have lost the battle, because I do not believe the people have not begun to fight back yet.

Best case scenario - I hope all the people go ape shit in some form of coordinated attack to take over the government at every level. That would be the first great step. Root out the lobbyists, special interest groups and corrupt politicians and do our best to replace them. Then the Constitution gets put back together. Then the Fed is dissolved. Make the FDA do their job. Fix FINRA and the SEC. Cap and Tax is dumped. Realistically address the HC issue. A majority of the major corporations go bankrupt that we support with tax dollars. Break up the TBTF's. Then we all starve for about 5 years as this nation gets rebuilt. The whole political system needs to be dismantled and restructured with us in mind not them (kind of like it was originally intentioned).

Do you read or hear discussions about a New World Order or global currencies or a global government? This shit is REAL! I am not saying they are happening. I am saying that there are valid discussions about such actions and the rhetoric is picking up in intensity. Could you ever imagine such discussions in your lifetime? Do I think we'll ever give up our sovereignty? Nope, but this current administration is as dangerous a one that has ever been in place and the mess that was left for them to clean up has created "a good crisis that should not go to waste" (thanks Rahm). While at it shall we bring up the discussions of state cessation? Those are real as well.

I do not write these posts for fame of money. I write them to hopefully educate and raise awareness of some VERY SERIOUS issues that exist and to get you motivated (or at least aware) to be ready to act. Am I an alarmist or am I exaggerating anything here. I don't think so. I like to think of myself as a realist that looks at things in a way where you have to logically entertain all the possible outcomes. Am I at the point of buying a Vespa, gold, silver, ammo, seeds, generators and hoarding food? Nope. Should I be? Maybe. I'm really worried and believe you should be to. The Ponzi scheme that was America is coming to an end, and the global engine will die thus sending the world into a tailspin. Have a parachute ready please and ask yourself, just how scared should you be?