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The Financial System is Completely Corrupt and Broken. Buy this ETF!
Originally posted at: www.capitalistexploits.at
Some anecdotal evidence first... I recently corresponded with a friend in Europe who consults to a number of hedge funds managing predominantly European and British money. He mentioned that across the board his clients are increasingly concerned about equities and are seeking to hold more cash. I asked him if there was a fear of being “Cyprus'd”.
"No" was his answer. Stunning as that sounds to me...the vast majority of people, my friend's wealthy clients included, which I might add would be termed “smart money”, simply think “it wont happen here”. Are you shitting me? The banks are mostly insolvent, the governments are bankrupt and the Banksters have already shown their cards in Cyprus! They've GIVEN us the playbook! What will it take for people to wake up?
I asked what his clients were holding in terms of cash. "Euro mostly, USD and of course Yen" was his reply. I wrote a long time ago about the triplets Ugly, Uglier, and Ugliest mentioning how those with large sums of capital to allocate have little choice when seeking liquid markets within which to do so. What I never considered then was the vaporizing of bank accounts regardless of the currency being held. This will forever be referred to as being "Cyprus'd".
Holding currency in the banking system itself increasingly looks like a bass-ackward idea, and makes a mockery of the term “safe deposit”. Our friend Simon Black of Sovereignman wrote an excellent article on the state of western banks here which you should read.
One of our readers (thanks Riana) sent me the clip below of Jeffrey Sachs, a Columbia University professor, providing a very candid view of the financial system in the US.
I strongly urge you to watch this clip! It is in my opinion a MUST VIEW. The short version is, “Massive, massive illegality” condoned by the legal system, government and big business. If you thought you were safe investing in the US stock market you have been taken for a ride. I think the American people VASTLY underestimate the extent of fraud, theft, and subjugation that is taking place under their very noses, and worse yet, feel powerless to stop it!
There is a reason Mark and I invest in private equity in markets which, humorously enough, are considered by the mass media as "too risky".
I think it's indicative of a problem when, half-jokingly, the vernacular increasingly being used in the popular media includes: being "Corzined" and "Cyprus'd". The former meaning having your money stolen from or via the equities market, and the latter being theft directly via the banking system.
What options does that leave us? Ah, the bond market...aye carumba, don't get me started.
Sorry folks, but when Mark and I, together with our exclusive CPAN subscribers, invest in private companies in places like Mongolia, Myanmar, Nepal, or Cambodia we have a LOT more control and understanding of what we're getting into. Risky? Look, it makes investing in the US and European financial systems look positively like Russian roulette in comparison!
Most stock markets, the US included - venerable, decaying, fecal matter that they are - are now rallying on the energy created by Bernanke's credit and paper printing. The true value of all that paper will be revealed when it's simply used for composting at some point. Please don't ask me WHEN that will be, as this train has stayed on the tracks longer than most, including myself, have thought possible...
Funny money - crazy printing - is what is vaulting stock markets globally. They are running on fumes folks. The current financial system will ONLY run out of fumes when the masses can finally differentiate between liquidity and solvency, and at that point the currency and bond markets get toasted!
Remember, a rising equity market doesn't always mean increasing economic prosperity. Look at Argentina. Its equity market is the best-performing in the world as of late. For those that don't know why, in a nutshell the crazy b%&$h that runs the place is single handedly turning it into a banana republic. The currency has been devalued by market forces to such an extent that the "blue" (underground) market rate for USD is more than 2x the "official" government rate. The rise in the equities market, as spectacular as it has been, has not even kept up with inflation, which the Argentine government says is still in single digits, but is running at double digits monthly now!
These clowns (I'll throw ALL global "central planners" in there) are clinically insane.
From Japan, to Europe and across the Atlantic back in the States, to what Mark now regrettably refers to as “prison”, economic push-up bras are in vogue. Why is Mark referring to the States as "prison"? Lemme see... the recent IRS fiasco, Benghazi scandal, Bloomberg scandal, gun control, militarization of the police force, 300+ national surveillance drones, the world's largest data collection center...the list goes on, and on, and on. For those that still insist that "if you don't like it leave", Mark asked me to remind our readers that he already has.
Make no mistake, push-up bras are still push-up bras, and when the lights go dim and the bra, with much anticipation, comes off, the "truth" will reveal itself. Market conditions will be seen for what they are.
Right now market participants are confusing liquidity with solvency, and the solvency issue is becoming increasingly stretched. When reality starts hitting home, and the inevitable market correction comes, the push-up bra will come back with a new and improved version (QE whatever... where are we at now? I lost count somewhere...). We'll be getting the mother of all QE, much like Kuroda is trying right now in Japan. It's also a lot like Rudolf Havenstein, the president of the Reichsbank in Weimar Germany once managed.
We'll be told that the entire world will choke and die unless these corrupt, unbelievably wealthy "masters of the universe" keep the game going. Herr Von Bernankenstein will man the keyboard with his two chubby fingers on CTRL and P. The only question is how much abuse can a currency take before it implodes? Again, we don't know!
This really is a Viagra economy. The "old man" is limp, much like what was hidden under the previously mentioned push-up bra. Anyone with any sense knows it, and will keep accumulating gold and "real" assets. It is one of the most obvious trades I can think of for now. Short term, the chart looks like it wants to go to $1,300 or even $1,200, but in the long run those tiny corrections are irrelevant.
We clearly need a hedge, and therefore Capitalist Exploits is proud to announce the launch of an ETF that will provide it!
The composition of the ETF is as follows:
- 25% precious metals
- 25% guns and ammunition
- 25% a sustainable place in the sun, far from the madness, with a massive veggie garden, fresh spring water, cows where my milk is assured not to have aspartame in it. (Oh yes, the FDA is now thinking about including artificial sweeteners in the definition of "milk"... you can't make this shit up!)
- 25% antibiotics, medication and bio-hazard suits
Ticker symbol: SHTF
The fund managers reserve the right to include tin foil hats in the portfolio as required.
Why now you ask? How about this...
No further commentary necessary.
- Chris
"We have a system which is out of control, that's politically out of control, regulatorily out of control, out of legal bounds, out of responsibility, and we've invented a system where you get to take home billions of dollars in personal compensation, your shareholders pay hundreds of millions of dollars in fines, you shelter your money in the Cayman islands in agreement with the IRS and nobody seems to control it at all." - Dr. Jeffrey Sachs
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More Corruption Exposed
Oil and Gas PRICES RIGGED FOR OVER A DECADE:
Consumers worldwide have been screwed by RIGGED Oil and Gas Prices, in a price fixing case that is just starting to be exposed. In Britain a raid on Shell and BP Headquarters just happened.
I would look at the Big Oil Companies but also the Koch Brothers and major firms Goldman and other connected Hedge Funds.
This looks like another "Libor" type scandal that has implications in the $TRILLIONS , over the period from 2001 to today. Platts, that tracks prices and influences the going rate, has been "loaded" with false-pricing data for years and used to perpetuate the scam against consumers.
I had read somewhere a while back that a 1 cent increase in gasoline price = $ 50 Billion in increased revenue a year to the manipulators.
http://www.telegraph.co.uk/
No problem.
They pay $50 Dollars to Free Parking or miss a turn before they get to roll again.
It's Monopoly with unlimited 'Get out of jail' cards for certain players.
Quack Quack!!!
Wall street is back and "Risk has been eliminated", Golden Slacks had an investing summit back near the 2007 peak anouncing (among other things ) the elimination of risk.
http://www.youtube.com/watch?v=pBkDo92wJ8E
"Wall Street is Back"
They are 4 years late. The low was in March 2009. Wall street was back, back then. This is a cover story that is contrarian.
Business Week's cover story, "why Wer'e GAGA over Housing" came near the top of the housing bubble. In fact, home builder stocks peaked the next month.
NOTE:
The LAST action we need right now is an armed march on Washington, led by Koresh.
It is as COUNTER-PRODUCTIVE as it gets.
I don't care if Alex Jones supports it or not, it is over the top, looking for trouble, provocative.
I could be wrong but I think it's better to stay below the surface.
I have a fund that I buy but it's not an ETF - it's PHYSICAL.
As for the 'don't like it can leave' theory..........fuck that. If you don't like it you can stay here and try to make a difference. Granted at this point in time it's like going up against the DeathStar.
My country, right or wrong.
When right, to be kept right.
When wrong, to be made right.
Don't recall who said that, but well worth repeating.
Red 5 standing by......
Astroturfing is a growing 'cottage industry'...
another deadbeat depositor demanding the taxpayers, not yet born, be Paulsoned when his unsecured loans to banks fail. I miss the good old days when we were blaming the poorest among us for routing the captains of financial wizardry.
is that you Santelli?
Holding currency in the banking system itself increasingly looks like a bass-ackward idea, and makes a mockery of the term “safe deposit”.
Exactly. Which is why 25% of your ETF should be Bitcoin!
Jeffrey Sachs must have recently changed his tune. Somebody needs to find Scottish hedge fund manager Hugh Hendry tearing Sachs and Stiglitz a new AH over Greece and S Europe from a YV interview a few years ago. It is on YouTube. Two lying university professors getting paid mega bucks by the IMF or some other agency to be grifters in "helping" Greece or the EU.
Sachs was cautioning Hugh to be more respectful. Hugh thought he was a clown. LOL! Stiglitz was saying a few years ago (2010?) that Greece was stabilized and Hugh laughed and was saying Greece "is s a cheat's charter." It was priceless and time has shown that Hugh was 100% correct.
"A bubble is inflated one breath at a time by suckers blowing in unison."
I appreciate the truthfulness, but is the best we can do is a have Sachs/Keynesian/pot calling the kettle/system black?
actually, TLDR.
however, the SHTF ticker / ETF joke was posted in the comments by several ZH members about a weeks ago.
way to steel somebody elses joke, then tell it back to them.
Holy shit this dude ripped off my SHTF joke.
Lame!!
fonzannoon
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It's funny to me that a diversified portfolio these days is.
25% Phyz PM's
25% bullets/guns
25% cash
25% food/water
I can't wait for Blackrock to issue the etf so I don't have to buy any of them
"fonzannoon
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Ticker symbol SHTF
*"This etf has everything the doomer/gloomer is looking for but does not have the time or inclination to purchase on their own. Imagine a portfolio of every essential commodity one would need in an end game scenario without having to get your fat ass off the couch to actually prepare!".
*terms of delivery may vary
Maybe you should write an article. No, seriously. I've read enough of your posts to know you have half a brain in your skull and plenty of insight/topics you could talk about. I'd read it. Bet a lot of other people here would, too.
Thanks nodebt. I appreciate that. I could say the same for you and a lot of others on here as well.
TLDR? Teldar Paper?
Blue Horseshoe loves Anacott Steel.
Very enjoyable and, what I consider, very accurate view of the financial world.
thanks for the imagery and the breakdown of your ETF.
You should consider creating a 2X or 3X version of the ETF
RTTB,
Of course the SHTF ETF was merely a joke, but what isn't funny is the very real need to stock up on all of its components! I'll let you figure out the creative ways to leverage this ;-)
Capex
I don't mind you passing off my material. Just throw some credit out there.
Fonzannoon,
Props to you! We read soooooo much stuff on ZH that although we didn't intentionally "borrow" your joke, we very well could have subliminally stored it and regurgitated. We'll give credit where it's due! Sorry! You were the original and right on with the general idea, of course.
Write some posts, you have good insights!
Capex
It's all good. Thanks for the reply and the kind words.
Hey Fonz. Chris here. Just saw this.
I wrote the post. A mate and I were chatting on skype and he proposed the ETF breakdown. I had no idea where he got the idea from but clearly it came from you. My sincere apologies. I would have actually granted my friend the title to the ETF but of course had no idea it wasn't his idea either. Once again apologies. Seems a few readers took it literally...lol.
a bubble is always the biggest right before it bursts.
It always inflates the fastest right before it bursts, too. At least financial ones always seem to.
Absolutely awesome post.
The world is being led (and bought) by sociopaths and psychopaths. And don't ever tell anyone about your personal SHTF portfolio... remember... the operative letters here are SHHHH!
In Soviet Union, criminals rob bank and run away.
In Soviet America, criminals run banks, rob everybody and get away with it.
Jackoff Smirnof
Here's one guy in the Soviet Union that is not running anywhere.
Cloak, dagger and a blond wig? FSB says CIA agent nabbed in Moscow (VIDEO, PHOTOS)http://rt.com/news/fsb-detain-cia-agent-253/
Hey! arent you the .gov disinfo agent?
LOOK FELLAS, I GOT HIM OVER HERE!
Fuck you Bernanke!
fuck you and your wall street, rotschilds.
No need to take risk buying anything in a rigged failing market and pay fees when I have everything listed in the etf already
Amen.
Weapons, reloading, and gunsmithing knowledge - check
Seed, dirt, in ground and growing - check
Food stored - check (Thank you Mormons)
Water, water purification methods, water collection methods - check
Ability to create fire - check
Silver - check
Shhhh, everything but Opsec.
Fantastic article.
Normally I can't stand Sachs - typical 'lefty' misunderstanding of free-market libertarianism - but on the subject of corruption he really, REALLY nails it here.
Funny how someone so orally articulate can not seem to understand the straightforward solution to the inherent instability of fractional reserve banking - do away with national currencies and allow the issuers (banks) to float relative to each other so the market can decide the true 'value' of the liquidity they're providing relative to whatever store of value their currencies are leveraged off. I sometimes wonder if guys like Sachs and Niall Ferguson are indicators of Rothschild and other banking families' concerns that the casino is getting out of hand. Yes, they want the corruption wound down, but only enough to keep the system going, not enough to destroy the conditions that allow the banks' position as neo-feudal monetary rentiers.
As for
These clowns (I'll throw ALL global "central planners" in there) are clinically insane.
they're not insane at all. They're just desperately trying to keep the wheels on the bus until someone else is wearing the driver's uniform.
Yeah I'm no fan of Sachs bass ackward keynesian ideas but I give him credit where credit is due and on the topic of corruption he nails it. It's surprising that an educated man cannot join the dots between the corruption and a keynesian system whereby money and value are arbitrarily dished out. At the outset such a system may not be corrupt per se but it provides an incredibly fertile breeding ground for cronyism.