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Guest Post: The Big Squeeze, Part 2: Abused Fundamentals And Fake Markets: How They Play Out

Tyler Durden's picture


Submitted by Charles Hugh Smith from Of Two Minds

I am pleased to present Part 2 (link to Part 1) of a uniquely clear-sighted three-part series by frequent contributor Zeus Y. on the consequences of our corrupt financial-political Status Quo being exploited by a parasitic Financial Elite.

Part II: Abused Fundamentals and Fake Markets: How They Play Out

So we have a lawless system. What does this mean for citizens and investors? In the near term it means that the fundamentals will not apply. Anything that maintains or augments elite wealth and increases elite options will be supported, and anything that consumes or converts common people’s wealth and labor and restricts their choices will be pursued. Anything that reinforces accountability, rational response, or cause and effect will be actively suppressed. Forget reversion to the mean. One only has to observe where the respective value/wealth of each party resides and where it gets channeled to know what the market will do and where policy will go.

When the stock market should crash, it won’t… until some time frame far longer than even the most generous fundamentals would dictate. I said as much to Charles Hugh Smith in an October 17, 2010 email entitled Stealth Monetization Keeping Market Up With Stock Buybacks, and so far I have been right on the money:

I've seen different parts of this puzzle in various articles, but here is why the stock market will remain artificially boosted until the mortgage fraud mess really gets cranked up.  Just like the Fed lends to banks at 0% interest as a way to funnel money back to purchasing low-interest T-bonds, creating an artificial demand (and guaranteed profit), and goosing the market there (and staunching the exodus of foreign money), so too can money be funneled through banks from the Fed to corporations who use it to buy their own stock, effecting the same scenario.  I believe this is happening now, and will likely happen more if there is a QE2.

Corporations will love it, because CEOs know that stock increases, no matter how you get them, mean big bonuses. [T]hey will, if anything attempt to hyper-accelerate low-interest money flow into their books and on to the stock sales block. How long that charade can persist is anyone's guess, but if you can have insolvent, zombie banks making "profits," and handing out, what, $144 billion, just in bonuses...

The more extreme the hubris, the more ridiculous the momentum, and the more spectacular the crash.  These guys think they can defy gravity, and so far they have [been able to] with a lot of help.  When the natural laws of finance kick in is anyone's guess, but I see (the Dow Index) as I originally predicted, to be 11,000 to 12,000 (un)til at least March (2011), a shakeup, and some panicked back door bailout to obscure the fundamentals again until September/October (of 2011).

These guys are too arrogant, too insulated, and too single-minded to do anything other than attempt to force the world into their boxes.  At a certain point it will quit, but that only happens when things get very unmasked.  The mortgage fraud cases are the key, but those will be stonewalled.  These guys are tenacious because they are hanging by a thread of testosterone.  Tick, tock.

Analyses that try to predict near term market moves based on Laffer curves, Elliot Waves, and historical cycles will almost definitely fail. We don’t have a “new era”, but we definitely have unprecedented coordinated global intervention dedicated almost solely to the fortunes of the top 1%. That is the new rule that will govern until there is a serious breakdown. Warren Buffet got this insight after the financial crash in 2008. He knew the government was going to step in to save and subsidize the big banks so he swooped up their stocks, garnering himself a hefty tax break in the process.

In the near term, independent shorters will be routinely and consistently routed through market manipulation and collusion between large corporations and their government policy clerks. JP Morgan allegedly manipulates the silver market for its own profit, but also does so to keep fiat currencies stronger. Feeling they benefit, major world governments will refuse to prosecute and, indeed, actively collude for reasons of “monetary security.” However, if you happen to be JP Morgan, holding massive short positions on silver, and you get challenged by a coordinated democratic effort to “crash JP Morgan, buy silver”, then you simply offload your short positions into unregulated institutions and buy up the copper market.

Here are some of my predictions in line with this rich-get-richer-and-the-rest-of-us-pay near to medium-term trend:

  • The stock market will remain artificially high, between 11,000 and 12,000 with possible dips (7,000 - 9,000) and spikes into the 14,000 - 16,000 range, before running into serious trouble in September/October 2011 (lower probability and acuteness) and/or September/October 2012 (much higher probability and acuteness)
  • Wages will remain flat or decline, unemployment and underemployment will remain high, and the power of labor will erode further as unions continue to throw their younger members under the bus to fund entitlements and benefits of their older members. Worldwide labor will be cheaper, providing a near term boost to corporate profits (counteracted eventually by buyer revolt).
  • Sales numbers will disappoint indefinitely, making stocks of retail stores a very bad buy. Even the Wal-Marts will take a hit. People simply don’t have the money even for cheap luxuries. Dollar stores on the other hand will continue to do very well because the provide soap, paper, spices, etc. for a very cheap price. In economics, it’s called “substitution.” To the middle class and working classes it’s called “survival.” This will not stop the GDP numbers from rising, being recalculated, and being manipulated with debt-fueled government spending.
  • The middle class will continue to stay away from the housing and stock markets in droves through a combination of low income, lack of trust, and just plain angry refusal. This, in addition to baby boomer liquidation for retirement will put serious pressure on the Dow. This will be mitigated somewhat by those same baby boomers accepting that they will be working at least part-time until they die.
  • Middle class purchasing power will continue to be eroded as costs of necessities (food, water, fuel, health care, etc.) rise by several factors above inflation, and durable middle class assets (housing, savings) deflate in value. The material American Dream will become a distant ideal.
  • Scandals and finger pointing will erupt around the management of public pensions as it is discovered that pension managers have colluded with states and corporations to hide losses and true value of assets. CALPERS, the 200 billion dollar California public pension will be ruled effectively bankrupt, due to a combination of extravagant liabilities and collapsed high-return junk assets. Investment rating systems will, as a result, come under renewed scrutiny to no effect.
  • Metal markets will continue to be suppressed, even as countries and wealthy individuals and organizations buy them up as a hedge. Monetizations of debt, currency devaluations, will continue unimpeded. Other commodities, like rice, will experience huge volatility leading to huge price swings and escalating social unrest and resentment as investor parasites try to accentuate these swings for their own profits.
  • There will be serious talk of and moves toward a world currency and global accounting standards to establish a level “playing field” and keep nations from trying to undercut each other’s currency through trade policies and cooking their books. This will be treated with a combination of alarm (by libertarians) and derision (by progressives) as observers will joke that now governments are trying to “be consistent in the way they break the law and steal from their people.”

The Role of Savings

Why is savings so important? In short, savings are the holy grail. On the opportunism side, savings represent hundreds of trillions of dollars of stored wealth, just ripe for the plundering. On the supervisory side, savings are the last reality hedge. Savings provide the annoying anchor for financial sanity and fundamentals, and serve as a barrier to exploitation, outright debt peonage, and monetary tyranny.

I’m defining savings as any stored real, productive value: money in a savings account, paid-down house, gold, land, a business, etc. Savings have utility. Savings can be exchanged or used to purchase material needs and wants or make room for the non-material, experiential elements of the good life—time, leisure, education, travel. In order to make a financial coup complete, savings have to be rounded up and led to the slaughterhouse.

Meaningful, value-backed savings means autonomy and choice, and autonomy/choice represents power, ability resist, to “choose other” than what some financial power wants from you, your money, and your productivity. Restricting consumer choice is absolutely essential to maximizing corporate profit, since low quality and high prices improve profits short-term but deter consumption medium-term for uncaptured market players. Without personal savings that can be maintained, stored, and accessed a person has no leverage in their own finances nor in their ability to “vote” as an economic citizen. One is merely a debt slave.

It appears prevailing powers will go to any length to prostitute themselves against any true price discovery that would reward savers. Reversion to the mean, trading volume, velocity of money, margin, etc. all mean nothing when you can simply pour in an infinite amount of counterfeit currency. Along with this, it becomes almost impossible to assess and determine what is counterfeit because the official numbers, formulas, and information upon which accountability rests have been so distorted and obscured as to make value determination impossible (see calculation trends in employment numbers, inflation base line, etc.). Political pressures and decisions have simply caused a regauging of “undesirable” numbers to make it look like there is no problem.

Profit used to be an engine of savings and investment, the oil of small business, entrepreneurialism, and a growing economy. In the current global situation most profit has turned cancerous. It has simply come to mean parasitic wealth extraction. If I can profit by debasing your savings or forcing my debts on to your books, and you accept it as necessary to keep the system you’ve invested in from collapsing, I can control you and your future opportunities.

In short, I now possess your power as a citizen. This is why Thomas Jefferson was so clear about everyone owning property. One’s own means of support is necessary if a corrupt government emerges. One must be capable of refusing to participate, to exercise civil disobedience, and to be supported in a community significantly immune to upper-level manipulation.

Historical economics are premised on observations of human behavior converted into “natural” laws and forces, given certain conditions. Those conditions are being actively and systematically subverted. We are now seeing human institutions and behavior operating as purely synthetic phenomena. There is no Adam Smith’s “hidden hand,” no collective rational self-interest, but rather devolution to leveraged control and power.

We have the worst of neo-liberal state welfare, mixed with neo-conservative corporate welfare—a state for the corporation, and the corporation for itself. Citizens are being treated simply as productivity and investment batteries, like some twisted adaptation of The Matrix. With no protection from law or market fundamentals canny rational responses can be checkmated.

By Zeus Yiamouyiannis, Ph.D., copyright January, 2011


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Fri, 01/28/2011 - 15:17 | Link to Comment NOTW777
NOTW777's picture

I will "save" with PMs

Fri, 01/28/2011 - 15:36 | Link to Comment william the bastard
william the bastard's picture

purchased with a HELOC.

Fri, 01/28/2011 - 15:38 | Link to Comment NOTW777
NOTW777's picture

LOL interesting but I'll do cash

Fri, 01/28/2011 - 19:34 | Link to Comment Zyroh
Zyroh's picture

did he seriously predict a range from dow 7,000 to dow 16,000 until oct, 2012?


don't go too far out on a ledge there...

Sat, 01/29/2011 - 16:26 | Link to Comment CitizenZeus
CitizenZeus's picture

Reading a little more closely there I (the author of the original article) am predicting spikes in these ranges to be quickly corrected by governmental and market manipulation on the down side and laughable/unsustainable numbers on the upside.  The basic value holding will be around 11 - 12K.  


Point two I would make, regarding metal markets being suppressed and the reasoning behind that even as wealthy individuals and governments are buying them as a hedge, is that this is not your grandfather's hedge.  They are not buying these metals to profit from them but to control the price.  Since they have have hundreds of trillions of dollars of countrfeit derivatives on their books, held up by fiat currency, they need to control the metal markets to keep the fraud afloat.  If you bought all the gold the world has ever produced in its entire history, you're talking only a few trillion dollars.  Notional value of credit defaults swaps at JP Morgan alone was something like 90 trillion dollars at one point.

Notion (def): fanciful idea,  Notional value (def): mark-to-model worthless crap said to be worth many trillions. 

Here is a useful link and excerpt:


"The first credit default swap was introduced in 1995 by JP Morgan. By 2007, their total value has increased to an estimated $45 trillion to $62 trillion. Although since only 0.2% of investment companies default, the cash flow is much lower than this actual amount.

The size of the credit default market dwarfs that of the stock market and the bond market they represent. Therefore, this shows that credit default swaps are being used for speculation and not insuring against actual bonds.

Credit Default Swaps are unregulated and because they get traded so frequently there is uncertainty of who owns them and whether the holders can actually pay in the event of a negative credit event."



Fri, 01/28/2011 - 17:49 | Link to Comment ATG
Fri, 01/28/2011 - 15:18 | Link to Comment Beatscape
Beatscape's picture

Good point about no reversion to mean when things start to unravel.  That happens in a normal environment, we are just now entering chaotic phase.

Fri, 01/28/2011 - 15:58 | Link to Comment william the bastard
william the bastard's picture

But for now we need some bullet trains to nowhere and a glut of solar shingles in Minnesota. Prioritize people-Focus!

Fri, 01/28/2011 - 15:19 | Link to Comment tellsometruth
tellsometruth's picture

hold on, you are saying it is both the left and the rights fault? divide and conquer

Fri, 01/28/2011 - 15:19 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

This is why Thomas Jefferson was so clear about everyone owning property. One’s own means of support is necessary if a corrupt government emerges. One must be capable of refusing to participate, to exercise civil disobedience, and to be supported in a community significantly immune to upper-level manipulation.

Disintermediation, bitchezzzz!!!

Fri, 01/28/2011 - 17:14 | Link to Comment i.knoknot
i.knoknot's picture


i'll know we're on the right track when i don't have to be any part of the community-at-large and can left completely alone (so long as i don't 'injure' others). it'll all be OK when i don't have to pay for anything i don't use, and there's a set of check-boxes on my flat-tax form that let me allocate that 10% tax that i willingly surrender to the causes that i use and support.

disengage. don't play. get out of the way of the machine.

Sat, 01/29/2011 - 01:33 | Link to Comment lynnybee
lynnybee's picture

 " disengage. don't play. get out of the way of the machine. "       .....YES !  ........ that is exactly what I told my sister to do in order to survive, except I said it like this :

       "make yourself as small as you can & if you don't have it, they can't take it. "

Mon, 01/31/2011 - 04:30 | Link to Comment i.knoknot
i.knoknot's picture

bravo, and 'not having it' may be be purely an issue of perception...

Fri, 01/28/2011 - 15:23 | Link to Comment Quixotic_Not
Quixotic_Not's picture

So we have a lawless system.

Actually, we have a system being run under Emergency Powers.

When you understand that, you may or may not be able to predict the future and make prescient investments...

IOW, you have to think like a Banana Republic, and anticipate TBTF and Welfare/Warfare tactics of the Elite.

Fri, 01/28/2011 - 15:42 | Link to Comment Bubbles...bubbl...
Bubbles...bubbles everywhere's picture

Bingo. A lot of people don't quite understand what this means. I hope Tyler would write an article about this.

Fri, 01/28/2011 - 16:01 | Link to Comment Quixotic_Not
Quixotic_Not's picture

I think it's the boogeyman in the closet that no one wants to think about.

When I was part of a patriot group in the 90s, I spoke to thousands of "Americans" about this specific subject, and became aware of the cultural phobia then...

People just can NOT admit that the Constitution has been supplanted by UCC and UCMJ, even when presented with incontrovertible evidence - They'd rather live on pastures of ignorant bliss.

Then you've got the socialist/fascist comrades that are so brainwashed from birth that they'd die for their empire!

Fri, 01/28/2011 - 19:19 | Link to Comment Rainman
Rainman's picture

Emergency powers are put into place only when the government gets everything all fucked up. Under these powers, the government can illegally attempt to unfuck everything without attracting indictments for not only failing to unfuck things, but making it much, much worse. 

Fri, 01/28/2011 - 22:04 | Link to Comment essence
essence's picture

Every year since 9/11 (over 9 years now) the Emergency War Powers Act has been renewed by whatever puppet that's been in the White House. This act gives the bankster-hijacked, now criminal Federal Government extraordinary powers.

Think about the article above and how the author is showing you that there's
method to the apparent maddness of a deteriorating US economy. Essentially he is saying you are being shepherded into serfdom.

While you might think PMs, guns, farmland, etc give you some options, few or none will exist if you are forced into selling them at a discount because the bankster controlled government is ahead of you at every step of the game.

They track your every financial movement and ensure that your savings get sucked out to them. This boasters their balance sheet while simultaneously debilitating your overall position. And yes, this scenario might even engender a scene such as you get randomly stopped and searched by the fatherland gestapo and have PMs or other valuables confiscated with the government taking the position that YOU HAVE TO PROVE you have this 'wealth' rightfully and have paid all attendent taxes,fees,met all regulatons, etc etc  and whatnot. 

They have homeland security and a host of other agencies to act as their goon squad. It won't be just PMs either, real estate, 401Ks, savings, stocks, bonds ...whatever; they have the regulatorly and politicial high ground and let's give them their due... they're smart characters. They can readily get some judge to support them in their unjust actions so as to give this the appearance of legality, plus there's no shortage of "muscle" they can hire, put a badge on and say they have the full support of the U.S. government.

These are the times we live in.
It goes far beyond just a financial crisis.

If my argument doesn't seem plausible now, think back 6 or 12 months from now when things are worse and reconsider.






Fri, 01/28/2011 - 15:25 | Link to Comment gwar5
gwar5's picture

Take the red pill. Buy PMs, land, and think about withdrawing and boycotting the banking system. 



Fri, 01/28/2011 - 15:25 | Link to Comment NOTW777
NOTW777's picture

we have "leaders" with NO moral foundation. they only believe in their own self interests.

where is obama when citizens are facing TANKS?  he was silent when people in Iran were mowed down.

Fri, 01/28/2011 - 15:41 | Link to Comment william the bastard
william the bastard's picture

He was focused on Acorn's ho ring at the time.

Fri, 01/28/2011 - 15:46 | Link to Comment Quixotic_Not
Quixotic_Not's picture

we have <s>"leaders"</s> a CULTURE with NO moral foundation. they only believe in their own self interests.

There, fixed it for you...

Fri, 01/28/2011 - 15:26 | Link to Comment HarryWanger
HarryWanger's picture

He's more likely correct on his upside predictions. Just look at today. If the market can't pull back substantially on all the world problems/chaos today, when will it? 

I think many will buy into the close on this premise knowing Monday will more than likely see significant gains. Not smart to be short over a weekend on news that will be long forgotten on Monday.

Fri, 01/28/2011 - 15:34 | Link to Comment HelluvaEngineer
HelluvaEngineer's picture

Yeah, I'm sure this weekend will be full of good news.  You're an idiot and you had better laugh it up while you still can.

Fri, 01/28/2011 - 15:37 | Link to Comment william the bastard
william the bastard's picture


Fri, 01/28/2011 - 15:56 | Link to Comment barliman
barliman's picture


Harry is here to distract you. His mission is to get people to respond/argue over his posts (and he tends to be very successful at it) rather than discussing the primary posting. Note: I am not speaking to his motivations - just his goal.



Fri, 01/28/2011 - 18:16 | Link to Comment StychoKiller
StychoKiller's picture

Eliza was a much more honest A.I. program!

Fri, 01/28/2011 - 15:37 | Link to Comment OMG
OMG's picture

If TD blocked incoming IP's from Home Land Security /\/\/\/\ this AH would go bye bye!

Fri, 01/28/2011 - 15:50 | Link to Comment firstdivision
firstdivision's picture

The pullback was halted on NDQ by them canceling trades. 

Fri, 01/28/2011 - 16:50 | Link to Comment 10kby2k
10kby2k's picture

Why would people 'flag as junk' an opinion that differs from theirs? By flagging this post, you are promoting a 'herd' mentality and doing a dis-service to this website. The 'flag as junk' is to idenify spam or non-issue related posts.

Those that flagged this post are hypocrites.

Fri, 01/28/2011 - 17:09 | Link to Comment Pool Shark
Pool Shark's picture

Because Harry lost his bet.

"Many" didn't buy into the close; we closed near the LOD's

Fri, 01/28/2011 - 17:56 | Link to Comment barliman
barliman's picture

Harry picked out part of one sentence, out of context, and used it to advance his own topic - completely unrelated to the article to which he is replying.

How do you define a junk posting?

(Full disclosure: I did not click a junk flag on his post.)


Fri, 01/28/2011 - 18:35 | Link to Comment figuringitout
figuringitout's picture

After observing the multiple Harry posts under different monikers for the last six months....I've come to the conclusion that he basically represents the apathetic average US citizen. The flag is quite an appropriate avatar. Most US citizens, have built up psychological barriers against the idea of a possible end to the current American "way of life" (more like hegemony, but that's just a detail).

These barriers act as a coping mechanism to avoid the pain of losing what meger comforts they have as well as accepting that they no longer really control their own destiny. They refuse to accept that there are truly evil people who are taking advantage of their quiet acquiescence. I see this in many of my own family members. 

Of course, folks like Harry will be the first to come knocking down your door stealing what you have so that they can survive when the end finally comes. I say prepare quietly and play the game while it lasts. Thanks to Tyler, the moneyprinter's moves are becoming easier to anticipate.

Fri, 01/28/2011 - 15:28 | Link to Comment centerline
centerline's picture

Banana Republic, here we come.   Oops, already there.

Fri, 01/28/2011 - 15:29 | Link to Comment Henry Chinaski
Henry Chinaski's picture

Analyses that try to predict near term market moves based on Laffer curves, Elliot Waves, and historical cycles will almost definitely fail.

Uncharted territory.

Fri, 01/28/2011 - 15:33 | Link to Comment SparkyvonBellagio
SparkyvonBellagio's picture

Better get the torches, the pitchforks, the neighbors and put the word to the Street!


It's a MOB Baby!  LOL

Fri, 01/28/2011 - 15:34 | Link to Comment Dr. Porkchop
Dr. Porkchop's picture

Holy shit, the dow is down 150+! Who unplugged the robots?

Fri, 01/28/2011 - 18:18 | Link to Comment StychoKiller
StychoKiller's picture

Get back to us when it's down 1000+/day.

Fri, 01/28/2011 - 15:38 | Link to Comment Atch Logan
Atch Logan's picture

Take care of yourself, your family.  Hold tangible assets as much as possible: fiat in an inflationary period (like now) is worthless.

Don't trust the government. Pity the middle classes, who are not catching on to what is happening to them: "thank god we live in America, look what is happening in Egypt!!!"!!

Finally, a great article in here!! Thank you.

Fri, 01/28/2011 - 15:43 | Link to Comment 10kby2k
10kby2k's picture


What scares me for Tyler is that I think almost exactly like him.  2008

was such a satisfying year for my psyche...finally the 'party' was over and

things would make sense again. I get 3 more years of sticking

to my guns, while the markets give me the finger and test the very fiber

of my mettle. ight be more fun not being so enlightened.

Fri, 01/28/2011 - 16:46 | Link to Comment hbjork1
hbjork1's picture

Staying informed, (with reliable info), making your own decisions on the information and testing your answers, preferably with records for future reference, checking and rechecking, IS work.  And it is lonely work.  Who can you talk to? 

Yes, predictable times are much more fun.  I would love to forget financial matters, read my technical journals, and play with numbers, travel a little but I lost enough in "professionally managed" retirement accounts with Moregoon Stunley so that I don't dare, in these times to "let go" of what is, so far, reasonably decent results in what amount to basic industry, precious metal and resource holdings. 

Good Luck to all!


Fri, 01/28/2011 - 15:44 | Link to Comment buzzsaw99
buzzsaw99's picture

Stick save in 15 Minutes!

Fri, 01/28/2011 - 15:47 | Link to Comment firstdivision
firstdivision's picture

<OT> Holy crap, look at the flight to quality...NFLX</OT>

Fri, 01/28/2011 - 15:51 | Link to Comment satansanus
satansanus's picture

did any hooker lovers get the 30% one day gain on my tbtizzer puts at the open besides me? Timestamped in case you think im full of it

Fri, 01/28/2011 - 15:54 | Link to Comment NOTW777
NOTW777's picture

good thing barney and obama passed fin reg to protect us from credit card cos


Fri, 01/28/2011 - 16:09 | Link to Comment 10kby2k
10kby2k's picture

This isn't rocket science........the empire is hanging by a thread and has 3 choices:     

1.  Bring the jobs home. (but americans won't want to do them)

2.  Use the military to force the world to continue to subsidize 'our' lavish lifestyle. (use our technologies and excess capacity to develop more sophisticated weaponry, defense, espionage and sabotage to force the world to remain semi-enslaved)

3. Let it collapse (the elite could flee first)




Fri, 01/28/2011 - 16:12 | Link to Comment awakened
awakened's picture

It is almost a year since Roubini coined the term "the mother of all carry trades." and up til today it still applies.

Fri, 01/28/2011 - 16:33 | Link to Comment Dr. Porkchop
Dr. Porkchop's picture

The worthless cocksuckers in charge of this are losing control and they know it. 2011 should be a very interesting and scary year.

Fri, 01/28/2011 - 16:41 | Link to Comment MiddleMeThis
MiddleMeThis's picture

Anyone interested in buying my house?  I want to sell it before it's devalued to $3.  I'm going to live with the Amish.

Fri, 01/28/2011 - 16:49 | Link to Comment baddress
baddress's picture

This is why taxes on real property are so insiduous and evil. You may have the illusion that you own your house and the land it is on, if your mortgage is paid off free and clear. But just see what happens when you don't pay your property taxes. You don't own anything. You never have. You only rent it from the government.

Fri, 01/28/2011 - 17:24 | Link to Comment i.knoknot
i.knoknot's picture


dam! it's nice to see someone else making this point! bravo.

eventually, when you don't pay those taxes, it comes down to police/guns/eviction. it may take a few layers of abstraction, but the end is not ambigiuous. and we think we actually own our property? ha.

and re: those taxes, i have no problem paying $10 for a gallon of gas if i don't have to pay for the roads i use in any other manner (toll-roads are fine too). if i use the roads, i pay for them (go long horses/feed).

taxes for public schools are fine, but paying for them shouldn't be bound to my right to keep my property.

spread the word, friend. it is actually a simple message:

  why can't i be left the fuck alone? (join now, the Leave Me the f--k Alone (LMtfA) party)



Fri, 01/28/2011 - 20:05 | Link to Comment Rainman
Rainman's picture tru. Except for the Indian reservations, not a square inch of land is not owned directly or leased outright to the people by a variety of governments. And the Indians would be wise to keep lookouts considering they are surrounded by Paleface electeds.

Fri, 01/28/2011 - 17:33 | Link to Comment i.knoknot
i.knoknot's picture

FWIW mr Zeus Y,

thank you. you've nailed it.

and because most folks don't see but 1% of your wisdom, we must help where we can, but help ourselves best we can until we can bend things back.

i fear collapse, but understand that the system in place does not want to be fixed, and it has no choice but to break. eventually. do we fix it on our terms?, or let it happen as it will? i think we have no choice and it will be the second. hold tight.

again, thank you for such an excellent articulation of our situation.


Fri, 01/28/2011 - 17:46 | Link to Comment ATG
ATG's picture

The Big Squeeze became the Big Drop

On the Holy Day of Prayer

contagion and revolution

fire in the air

water and on the ground

Tanks greeted with cheers offering rides

Fri, 01/28/2011 - 17:45 | Link to Comment ATG
ATG's picture

Heebner sold?

F -13%, targeting +19%

MWW -25% may be a buy. targeting +244%


Fri, 01/28/2011 - 18:47 | Link to Comment Djirk
Djirk's picture

Don't worry it will be different this time. Debt fueled wealth will create real wealth...look into my eyes, look into my eyes.

yeah means, avgs are all backward looking....follow the group think and look alive!



Fri, 01/28/2011 - 19:24 | Link to Comment dryam
dryam's picture

I've been heavily invested in PM's for 2 years, but I've started to rethink the PM story.  This has nothing to do with me being nervous about this recent pullback. 

The Fed & government keep saying there's no inflation ad nauseum.  It's reiterated over & over.  The reason they keep saying it anytime they get a chance is because they see faith waning in the USD, and faith is the only thing backing the USD right now.  If the tipping point ever gets reach in this lack of faith amongst the masses it's gameover for the largest debtor country in the history of the world.  They don't have very many tools left to fortify this faith.  Our economy is collapsing at an accelerating rate and without a lot more ongoing money printing the deflationary collapse that Bernanke avoids like kryptonite will take place. 

So, one thing they can do is to crash the PM's.  PM's have been climbing in price for a long time because of all of the money printing & inflation.  PM are not like other commodities.  They are viewed as money/currency by many.  With a collapsing economy everything drops relative to money.  If faith is lost in the USD, PM's will sky rocket because huge amounts of cash will be funnelling into a very finite amount of PM's. Everything else will fall relative to them.  PM's can be both inflationary & *deflationary* hedges.


So, back to my main order to restore some faith in the USD, the PM's need to be crushed.  It's pretty easy to manipulate the gold market when you own more than any other entity.  The sliver market is easily manipulated when there's a blind eye to absolutely ridiculous amounts of naked shorting, and who knows, maybe there are some backdoor arrangements made with China, etc.

This recent takedown makes absolutely no sense fundamentally, and nothing supports it, particularly the supply/demand for physical.  I get the sense we might see the PM's go down from here on out until the SHTF moment.  I'm keeping my PM's because I want my seat on the PM space shuttle the moment those SRB's light up as that tipping moment is reached. 

Sat, 01/29/2011 - 00:04 | Link to Comment Lord Koos
Lord Koos's picture

Since China is buying gold by the ton I don't feel too worried about piggybacking on their play.

Fri, 01/28/2011 - 20:41 | Link to Comment Downtoolong
Downtoolong's picture

Savings serve as a barrier to exploitation, outright debt peonage, and monetary tyranny….. In order to make a financial coup complete, savings have to be rounded up and led to the slaughterhouse.

I’ve got my house and cars paid off, enough land to produce my own food if I need to, and enough tax free savings in my Roth IRA to support my supplemental income needs for 20 years. To the power elite I’m dangerous. Hell, if only I owned a decent small business I would be freaking Clyde Barrow to them.


Sat, 01/29/2011 - 03:43 | Link to Comment Grand Supercycle
Grand Supercycle's picture

The equity rally since Aug 2010 continued for a few months longer than I expected – similar to what happened after I began my warnings in early 2007 but the market decline didn’t start until mid 2007.

Despite market intervention/QE – natural market forces can not be stopped – only delayed.

When the market does reassert control (soon) - the reaction (the overdue correction) may be even more extreme due to that delay.

And some may refer to it as a Black Swan.

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