Fed-Inspired Funny Money #StockMarket Bubble set to Continue Upwards?

The next 3-5 business days should either confirm or dispel notions that the US stock bull market still has a long way to run.  Based on the net money creation in the US, Japan, and the Eurozone, plus the highest net long position of large market #speculators since the 2009 doji that marked the market bottom then, my bet is that 2013 is going to be a very good year for stock #investors.

Of course, all that money (2 trillion and counting) printed out of thin air by our self-proclaimed financial "geniuses" at the #FederalReserve HAS to go SOMEWHERE!  As the Fed races to devalue the US Dollar, the cost of real stuff (like stocks, and gas, and food, and energy) just keeps going up, up, UP!  It's Econ 101.

The stock market might prove to be the best ride this year, but, overall, I'm still betting on the value of precious metals (the REAL money), especially silver, and other commodities, like food, considering we are on the verge of a global food shortage catastrophe that is likely to evoke civil unrest and outright warfare over access to water and food...

We'll have to wait and see how it all pans out, I guess.  Good luck placing your bets.

Economic Winds and Investment Whirlpools

Dr. Copper, the prognosticator of our #economic future has broken decidedly to the downside, boding ill for stock #markets everywhere.  Right?

Copper is known for its historic ability to predict stock and commodity prices in advance, due to its use in the construction industry.  If economies are growing, #contruction must take place, and copper prices must go up.  But even with #China's blatant stockpiling of commodities over the past several years, copper prices have dropped below their trendline and suggest stock and commodity prices should fall as global economies fall further into recession.

Yet US markets are at all-time (though nominal) highs.  What does this suggest?

The US Federal Reserve ( #Fed ) is pumping out funny money dollars faster than any entity in history, other than the current Japanese central bank.  Curiously, the #Japanese #yen somehow manages to stay alive with extremely low interests rates.  Why? Because the vast majority of Japanese #bonds are owned by Japanese citizens.  (But, don't fool yourself, the yen is about to begin a MASSIVE slide downwards as the Japanese enter the #CurrencyWars with the pedal to the metal!  The US Fed will be COMPELLED to boost dollar-printing to keep up with the devaluation of the yen.)

The US finds itself in a similar, but different, position of grace compare to Japan.  The US #dollar remains the currency for international settlements of debt.  #Oil is denominated is #USD.  Furthermore, there is no European Central Bank ( #ECB ) to demand that the US federal government live within its means.  If the US were a #Eurozone member, we would be asked to leave, just as #Cyprus is about to be asked to do.

Actually, the US debt-to-GDP (gross domestic product - the total of all economic expenditures in the US economy) is far worse than Cyprus' and most of the other notorious Eurozone members (Greece, Spain, Portugal, Italy, France, etc.).  But here's the thing: the US can print USD as fast as it needs to.  Just like Dr. Gono did in Zimbabwe.  (Go Google your history.)

Allan #Greenspan said so, and "Helicopter" Ben #Bernanke confirmed the US Federal Reserve Bank is fully prepared to print USD in infinite quantities to pay off our debts!  Viola!  Problem solved!  Haha! Those stupid Chinese that loaned us all the moolah are SCREWED!  How funny, right?

Well, things work out the way they deserve to work out.  China might take a beating eventually (they've sold nearly half their Treasury holdings in the past 6 years or so).  Others may get hurt, too.  But the simple fact is: the USD is doomed to decline inevitably in value, possibly going to a value of ZERO.  That is correct.  THE CONTINUING DECLINE IN THE VALUE OF THE US DOLLAR IS INEVITABLE OVER THE LONG TERM AND THE RESULT WILL BE EVER-INCREASING INFLATION FOR US CONSUMERS.

The (in my opinion, unconstitutional) Federal Reserve has morphed itself into the arbiter and overseer of all financial activity in the US (and nearly, the world).  It's patently stupid plan is to print funny money until all our government's reckless spending is paid for and all our debts are gone, and is a fool's errand.  There is NO POSSIBILITY that this scheme will end well for American consumers or holders of US Treasuries - in the long run.  (I suspect "Hellicopter" Ben will step down after this term and leave the wreckage to his successor.  Otherwise, he's liable to be lynched!)

Imagine you took all your investment blocks and threw them into the bathtub.  Then you turned on the Federal Reserve money-printing hot water spigot.  For a while, all the blocks would start to float up as the unlimited supply of money flooded the system.  This is where we are today.  But, eventually, some of the blocks would start to spring leaks.  The Chinese and other countries would start to sell US Treasury bills back to the Fed who has to keep buying them up with ever MORE funny money.  And, eventually, the bad mortgages the Fed has been buying for the past several years will come due, and will have to be marked to market (meaning the Fed will have to take MASSIVE losses - and print even more funny money to "absorb" them), and the unjustifiably-inflated stock market will have to reconcile itself with some outrageous inflation figures, as will the modestly reviving housing market - ALL Fed-induced monetary "bubbles" geting ready to burst...  One by one, or worse, SUDDENLY ALL AT ONCE, the financial blocks sink to the bottom of the tub...  What shall we do?  How do we prepare?

What should you do?  Go buy up the gold and silver and platinum and copper and all the stuff you can find to prepare for the inevitable hyper-inflation?  Sure.  That's seriously probably the smartest thing you could do, short of moving to Chile, New Zealand, or maybe Canada...

Just realize that the federal government ALREADY has on the books Executive Orders that say when THEY need something (like money to pay their outrageous, unspeakable debts), they can come and confiscate ANYTHING you own to pay them.  And if you don't like that, they will kill you.  On the spot.  I'm not joking or exaggerating one bit.

There are now over 100 federal government agencies with the authority to use lethal force within the US against you.  Even HHS has been buying ammunition to arm a deadly force to take from you what you earned, or force you to do what they decide you should do, or KILL you if you resist.

Am I joking?  No.  Am I exaggerating?  No.  I am not.  Learn your history.  Read the laws in force in America today.  Grow up and face your responsibility.  If you have a backbone, you MAY actually be entitled to the title "American".  The day of economic reckoning IS coming to America.  Do your best to be prepared.  Do something and keep on doing things to prepare.  Each small incremental step we take to prepare, gives real Americans that much more hope that what our Founding Fathers intended may survive in this world of Satanic, sick, and perverted "progressivism" that seems to be consuming our once-great nation.

#BankHolidays Coming soon to a country you live in...

#Cypriots tried to stage a "run on the #banks" ( #BankRun ) today, but the government shut them down before the depositors could get their #money out.  It was all about meeting the #Eurozone's austerity requirements.

Go here for the latest updates: https://www.google.com/search?q=cyprus+BANK+RUN&hl=en&biw=1280&bih=600&source=univ&tbm=nws&tbo=u&sa=X&ei=hPRHUfXiA47A4AP4jID4Bw&ved=0CDAQqAI

Here's the deal: Cyprus is like the Cayman Islands of #Europe.  They have 8 TIMES as much cash in Cyprus banks as the entire #GDP (gross domestic product, or annual productive capacity) of the country.  But sadly, the country has been living large (like most of the rest of southern Europe - the "Siesta Countries" as some call them) and not charging enough in tax for the promised benefits they have been paying out, and pretend to be able to pay out in the future.  In other words, they've been accumulating DEBT.

Well, surprise, surprise!  Cyprus is WAY broke, and the plan they came up with to solve the problem (they want to stay in the Eurozone for some reason) was to CONFISCATE between 6 and 13 percent of the money in Cyprus bank accounts (the exact percentage is changing hour by hour).  Guess what happened.  Everybody in Cyprus was totally THRILLED with the idea!  Not.  (Imagine how you'd feel if you actually had a savings account, or a checking account, and the government decided tomorrow to take 10% of your money - just like that!  Poof!)

And guess what else?  The mighty #USA (United States of America) is in WORSE financial shape than Cyprus!  And so are several other Eurozone members.  Watch out for the same sort of action in #Portugal, #Spain, #Italy, and maybe #Ireland, #France, and a few others.  They're all in a similarly dire straight and there's no other way out for countries that can't simply print more funny money as the #US currently does.  The dupes in the Eurozone have to rely on money "approved" by #Belgium!  What a joke!

An even bigger, though less funny, joke is that Allan #Greenspan (the former #Fed, or Federal Reserve, chairman before "Helicopter" Ben #Bernanke) actually SAID the Us can never go broke because it has... (get this)... PRINTING PRESSES!  Which proves the rule that bankers, and especially CENTRAL bankers are super-geniuses like Dr. Gono of Zimbabwe (go see how well he managed the Zimbabwe dollar).

The #Socialist societies of Western Europe are finally having to pay the piper for borrowing and spending their children's and grandchildren's earnings!  Hahahaha!  What sweet poetic justice!

Sadly, there is no such enforcement mechanism in the #UnitedStates!  The US can theoretically print money ad infinitum to pay any bill to any sucker willing to lend Uncle Sam credit.  Like the Chinese.  LOL!

But, it's not really funny.  I only laugh because it is so obviously tragically inevitable that the result will be an ever-weakening dollar (ever-higher prices for stuff we need).  It is SO obvious that 99.9% of elected politicians couldn't see or understand it if you held their feet up off the ground and drove them over it like you were pushing a lawn mower.  (99.9% of politicians are politicians BECAUSE they are morons and incapable of doing anything productive.  The .1% are simply gluttons for punishment, I guess.)

The same fate will befall ALL countries that try to spend more than they have.  And the US is (except possibly for Japan) the worst culprit of all.

Where will it all end?

The #USD (US dollar) will continue to fall in value relative to real stuff like food and gasoline and rent, and the other countries in the Eurozone and Japan and all the ones that embraced socialistic spending programs based on a wish and a promise will continue to see inevitably rising prices (#INFLATION) for everything (DESPITE the lies about the "official" inflation numbers published by the government).

What can you do?  Seriously?  Do you HAVE to ask?  If you don't know in your heart and soul already, let me make it ABSOLUTELY CLEAR: You turn all your dollars or ecus or yen or yuan or whatever you carry in your pocket into things with INTRINSIC VALUE AS FAST AS POSSIBLE - YOU BUY GOLD AND SILVER AND PLATINUM AND BULLETS AND GUNS AND LAND AND FOOD AND TOOLS AND ANYTHING BESIDES GOVERNMENT-BACKED FINANCIAL INSTRUMENTS.

And, you get it into your head once and for all that government is NOT the solution for ANYTHING.  You rely upon yourself and you work with your family and friends to build a community or a business and you keep the overbearing government limited to the smallest possible size and reach.  Or, in other words, you EMBRACE THE AMERICA OF THE FOUNDING FATHERS. 

Ever Hear the Phrase "Taxation Without Representation"?

This phrase formed the crux of the justification for the United States of America to form a union and fight for independence from Great Britain.  Our states (or colonies, if you prefer the British view), were being compelled to pay taxes (tribute!) to the British realm and yet had no representatives in Parliament.  So, eventually, we had the Boston Tea Party and the American Revolutionary War soon began.

What is it when a government spends money today that it doesn't have, and passes the bill on to a future generation of citizens who are either too young to vote, or are not even born yet?  Is this not TAXATION WITHOUT REPRESENTATION?

This generation of big spenders and vote buyers (The going price today is $500,000 to get to talk with Il Presidente Obama once per quarter) that live like emperors while so many millions of Americans suffer in poverty and are under-employed, or have completely given up, have sold our children and grandchildren into poverty and slavery.  40% of Americans are on Food Stamps!

Americans coming of age today already face a personal tax debt of over $325,000.00 each!  And we're not done spending yet!  With the official debt at $17 TRILLION, plus the promised benefits for Social Security and Medicare owed to the Baby Boomers who enter the retirement rolls at a rate of 10,000 per day, the total current obligation of debt being passed to our children is well over $100 TRILLION dollars, AND GROWING!

Barack Obama this week said our debt was not a problem.  Not a problem.  This is hubris and arrogance to a near-infinite degree.  They said marie Antoinette said, "Let them eat cake!".  That is NOTHING compared to this emperor-wannabe suggesting our massive debt is "not a problem".  This man is either a total moron, or a lying hateful jackass.  Bet on the latter description.

Far less hurt and insult resulted in the American Revolution.  Where is the American Spirit today?  Americans need to rise up and DEMAND this government LIVE WITHIN ITS MEANS, and stop handing out billion-dollar favors to their friends and supporters.  Do what is right, people.  Depose the emperor and the lying court jesters that laugh as they sell us into abject slavery.

President Obama is an Economic Moron - Or INTENDS To Destroy America

Sent to me: President #Obama has a serious case of #debt crisis denial.

In an exclusive interview with George #Stephanopoulos, President Obama said, "We don't have an immediate crisis in terms of debt...In fact, for the next 10 years, it's gonna be in a sustainable place."  (Notice how often this dumbass uses the phrase "in fact..."!)
How is a $16.7 trillion debt, which continues to grow, sustainable?!
President Obama and his #Democrats just don't get it. How can they fix our debt crisis if they don't even recognize it is a problem?
Just this week, House #Republicans offered a credible plan to prevent a debt crisis and get our economy moving again. We need your support to make it a reality.
Contribute $15 or whatever you can today to fight for real solutions to our fiscal challenges.
President Obama is bankrupting our nation. And we're not going to let that happen.
---
My response...
--- Yes, he does.  The #liberal mind has no basis of right or wrong, no logical foundation from which to form a #philosophy, much less an economic model.  These (literally) morons believe you can continue to print funny money to pay for unlimited "benefits" for all who vote for them.  They are wrong.  They ignore history.  there are dozens of examples to prove them wrong, but they insist THEY ARE SMARTER THAN ALL THE OTHER IDIOTS WHO TRIED TO MAKE FUNNY MONEY HAVE REAL VALUE.  Their followers are the true cannon fodder in the next economic revolution.  Too bad for them.  Too bad they are so willingly ignorant.  They, and many of us, too, will die in wretched poverty because voting for free money turned #democracy into #tyranny in #America.

Obama's "Re-Made" America - A Vision You Don't Want to See...

This is just a short note tonight.  I'm still recovering from a serious back injury.  Tonight's topic is the insidious actions by the sitting #president or #POTUS to enable a new sort of #Nazi-like "brown shirts" and pay for the infrastructure necessary to incarcerate large swaths of the American population.  Balderdash, you say?  Watch the short video below.  Write down the numbers of the Executive Orders ( #ExecutiveOrder ) and look them up.  Then, you decide on whether your president is a tyrant or not.  This POTUS wants to rule the world.  We are just stepping stones on his path...

http://www.westernjournalism.com/obamas-civilian-national-security-force-by-executive-order/

GOP Dinosaurs Are Dragging the Party Into the Tar Pits

Senators John McCain and Lindsey Graham ridiculed Rand Paul's genuine old-school fillibuster today.  Their comments are beneath contempt and will not be repeated here.  What needs to be said, however, is that these two anachronisms are a pair of too-long-lingering political dinosaurs from the Grand Old Party's ancient history who are too absorbed with their BIG GOVERNMENT vision of solutions for America, and their Good Ol' Boy club of the elite and powerful  gatekeepers of the status quo.  McCain in particular exposed himself as a hypocrite when he ridiculed Rand Paul, as McCain implied that OF COURSE the lame excuse by Eric Holder that the White House didn't "intend" or "expect" to have to use drones to kill US citizens on US soil was sufficient to guarantee the White House would never kill Americans in America without due process. 

Mr. McCain, you of all people should have an understanding of how tyranny takes over democracies and turns suddenly into a repressive regime.  Yet, you derided and degraded your colleague, Rand Paul, for simply insisting on the written clarification that the White House cannot arbitrarily assasinate American citizens on US territory.  You, Mr. McCain, would have left the question unanswered and the opportunity open for the White House to kill us arbitrarily.  You would allow yourself to pretend the most anti-American president in history would stick to the law, when he's already violated the consitution in several situations already.

Mr. McCain and Mr. Graham, I feel it's time for the two of you (and all your old-school, big government, power-addicts) to step down.  You two are way-out-of-date political dinosaurs from the #KarlRovian era, a time when money and favor bought more an more big, ridiculous government.  You, sirs, are THE PROBLEM in the GOP.

I voted for you, Mr. McCain, because I considered you the lesser of evils.  But that is long past.  You and Mr. Graham are no longer representative of the conservative agenda.  You guys are sell-outs.  Hypocrites.  You cherish your power and money more than your duty to your constituents and to your country.  You, Mr. McCain are a TRAITOR to your country.  After all the hardship you suffered, Mr. McCain, you have turned against the ideals of the Founding Fathers and have succumbed to the money and power of position.  You, sir, are a disgrace.

Please, both of you, step down and let genuine patriotic servants take your place.  You are the cause of failure in the Republican Party and we don't want you around any more.  I'm sorry, but you've sold yourself out to Big Government and that's NOT what conservatism is about today.  Please retire at the next opportunity.  Thank you.

#JohnMcCain #LindseyGraham #GOP #Leadership #Law #Constitution #Drones #Assassination

The PolitEcon blog begins today.