What is not surreal these days? I report on varying topics nightly that are mind blowing in the sense that they can't be happening but do every day. I'm not talking about bungee cords busting or Beyonce's baby. I'm talking about things like insolvent banks running the worlds governments. Out of control governments printing and spending money like there is no problem with that. The Fed and Treasury in cahoots with Wall St. and the government to rig the equity markets to give the illusion all is well. The US government (or any for that matter) intentionally distorting economic data to give the impression that we're recovering from the recession. The US becoming a massive police state where breaking wind will be a fineable offence and they will have the detection equipment on every street corner and your DNA to prove you did it. Heck that is only in the US and I'm not going into global events.
Welcome to a centrally planned state where you no longer have any control. What is really freaking me out is that we'll most likely have Mitt as the next president. What is surreal? The fact that Obummer is even being considered as a candidate who has raised more money than anyone else (think about that for a minute) when Americans, 2-1, Fear Obama's Reelection. The fact that Mitt is a carbon copy of Obummer scares me the most. They all are carbon copies of each other (except Ron Paul which is why he's so scary - Oooooo). Plug-n-Play presidents that will do whatever the establishment wants when they hit the oval office is all this group of candidates are (Note: nothing related to the presidency here gets capitalized anymore). Nothing but lipstick on a new pig.
We are so, so, so screwed -
STB has addressed the need for one last massive stimulus. My plan was they would crash the markets in order for "them" to make the next stimulus vote very accommodating. This would lift the markets out of despair and into the elections relieving fear and make Obummer look totally awesome as a president. At this point it looks like they could not give a flip about appearances and may approve the stimulus regardless of appearances or what the American public thinks.
You see we have a massive spending problem. You know the one we tried to address last year with the August debt ceiling vote that was such a soap opera it got nothing accomplished. That created the super congress that in November accomplished nothing again. Well, they did accomplish one thing, they raised the debt ceiling and did not cut spending (with any significance). Do you realize we have spent almost EVERY penny of the last debt ceiling increase ALREADY!
Did you hear Obama To Ask For Debt Ceiling Increase In "Matter Of Days" | ZeroHedge. "But such is life. Here is the kicker though: the US has preapproval for $1.2 trillion in debt issuance, as per the August 2011 agreement. So far so good. The problem is that since then the US has issued $900 billion in debt in five short months! In other words, somehow the remaining buffer of just $300 billion, or a final debt ceiling of $15.5 trillion, is supposed to last the US until after the presidential election," Folks, WE ARE SCREWED! Dig this, "And even if the $1.2 trillion count begins from the new request, it still means the new debt ceiling will be breached some time in August/September, as we expected last year when we did the calculation assuming a $180 billion gross issuance per month ($900 billion in 5 months)."
The late night votes out of the medias watching eyes to lift the spending limits have to stop. The spending has to stop period. We have a struggling economy kept on life support by the Fed printing dollars to feed the addiction to entitlements and control the vote of the growing number of citizens receiving them. Hell, we're (the US taxpayer) bailing out the whole world while driving down the road to debt serfdom. No wonder the banks control the government cause they own everything lock, stock and barrel cause it was given to them on a silver platter.
Don't believe me? Denninger penned a post the you all need to read and will easily understand - It's Not Going To Work in [Market-Ticker]. Karl notes (and pay attention to the size of the numbers while remembering when a billion was a big deal in 2008), "The Federal Government has been adding more than $1.2 trillion in new debt per year in an attempt to prevent recognition of the ponzi-style debt babble that it, our Federal Reserve and our commercial banks all conspired to blow in the economy. The same Ponzi Scheme, run by a private enterprise (e.g. Madoff) will and does result in long prison sentences."
He continues, "It is not going to work folks; the $1.2 trillion that our government is taking on is one sixth of what would be necessary on average for the next five years, and for the five following that we'd need to double it again, to more than $15 trillion annually."
So, when does the madness stop and what will be the consequences of our government's inability to shut down the banks that control its every move? Well total disaster is one answer. If you are thinking anything other than some form of default you are still a brainwashed MSM believing idiot. Folks, financial doomsday is coming. We've gone too far down the rabbit hole of debt and there is no magic potion that will bring us back to reality.
What do you think they are banging the Iran war drums so loudly for? It will be to distract you from the financial collapse that has come or is coming. The war will accomplish the ability to default globally on debts owed to enemies (from both sides). If you think this is not in the works you need to think again. Add to that, Obummer wants a war cause that virtually guarantees his reelection. Oh, and for that police state issue I cover every night, well, I hope you are putting the pieces together.
On the blog I believe I have done a fine job remaining patient and keeping my temper with the recent ramp job that is upon us. Why not? We've been experiencing these moves for years now. QE (stimulus) induced runs that have no fundamental reasoning behind them. They are very frustrating especially (see the first paragraph) when you know everything underlying the move is false. A fraudulent lifting of the markets by a centrally planned group can not levitate forever.
The "event" that will rip control from those in power that I have been calling for since the beginning of the blog will come. It will crash one day. The only question is which crash will be "the" crash. I still contend that the markets can experience "the" crash at any moment or at best they will keep it alive till the first quarter of 2013 at best. Folks, I have only explained our debt situation above. I have not covered any other of a number of crisis here, in the EU, the total disruption of the MENA, Iran, China and that are being experienced in many other parts of the globe. The world is unraveling in front of your eyes. I just hope you see it coming.
We as traders and citizens will have to deal with the minutiae till the crash arrives. I hope your portfolio is prepared for something that looks like this. Oh, and that you own physical gold and silver. Monthly SPX - If it should get to 1370 (I don't think it will but you can never discount this manipulated market) the sell signals (negative divergences) will be screaming and you never bet against a monthly chart.
GL and GB!