WEDNESDAY AFTERNOON WRAP-UP 2-1-2012
Another day passed, one step closer to the abyss. The global economy continues to crash and burn, but all the financial media discusses is Facebook, a company with little, if any, impact on the economic landscape. Once again, the Fed’s FREE, PRINTED MONEY (which kept the economy standing long enough for Facebook to go public) is going right into the criminal banks’ coffers, with an estimated $100 million IPO fee anticipated for joint book-runners Morgan Stanley, JP Morgan, Goldman Sachs, and Bank of America, the world’s primary “axis of evil.”
Today was yet another PPT-inspired stock love-fest, based on the ridiculous premise that an “imminent” Greek debt deal will somehow be positive for the banking system. Pray tell how the write-off of $300 billion of debt by already teetering banks is good news, particularly when such a “deal” will be seen as a precedent for the rest of the PIIGS – and many others – to ask for the same. Even if the ISDA gets away with not calling a 70%+ write off a default, they will have tarnished the entire concept of Credit Default Swaps, ruining the banks required to write off the $300 billion of debt, and leaving them naked against the imminent write-offs of other PIIGS’ debts.
Of course, when the “imminent” deal was no longer imminent, the Dow didn’t budge at all, yet again exposing the LIE that “the market” was up due to a “pending deal.” As I wrote yesterday, TPTB’s goal is to manipulate markets around “events” so the media can report said events as “positive.” Even the great Zero Hedge falls for this oldest of traps all the time. Of course, they have yet to acknowledge that gold is manipulated, instead tiptoeing around the issue as if it’s taboo.
While the bankers laugh their way to the Hamptons with the free PRINTED MONEY given them to cover their Greek losses, Greek citizens careen toward a hyperinflationary depression. Facebook’s investment bankers are drinking brandy and smoking cigars as we speak, dancing over the very Greek grave they dug by selling Athens the concept of hiding debt via derivatives.
Heck, even on the eve of a potentially catastrophic sovereign default (sorry, not a default, just a “credit event”), the EU is considering looser collateral requirements “under heavy pressure from the banking industry,” per the quote beginning the article!
News-wise, again nothing to crow about. The worthless ADP jobs report was slightly below expectations, as was the ISM Manufacturing Index, which was only “up” because its “Prices Paid” component sharply surged. Yes, we’re at the point where it is considered “positive” when prices rise, particularly when they rise A LOT!
And don’t forget today’s news from General Motors, which yet again reported soaring dealer inventories, fraudulently described as “higher sales.” Oh well, this is what happens when you allow the government to own and operate a company already in a class by itself in the bowels of industry product development and management prowess.
And finally, President Obama spending his day posturing by proposing grandiose MONEY PRINTING schemes with not a chance in hell of passing, much like last week’s symbolic House of Representatives vote against the debt ceiling increase.
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THURSDAY MORNING COMMENTARY 2-2-2012
Many years ago, I learned to stop looking at the gold price from the time the NYSE closes until I wake up the next morning. Not that I haven’t peeked here and there – particularly on SUNDAY NIGHTS to gauge potential chinks in the Cartel’s armor – but for the most part it’s a meaningless exercise, as gold essentially NEVER materially moves during Asian trading hours, with the “trading day,” for all intents and purposes, beginning at EXACTLY 3:00 AM EST, when the Cartel typically shows up for work.
Last night, my second soccer game ended at 12:15 am MST, so it occurred to me while driving home that it was nearly 3:00 AM EST. I said to myself “what the heck?,” and turned on my DROID, guessing the price would be $1,749/ounce, just below the Cartel’s massive line in the sand at $1,750 that it has been protecting with its life since September. And sure enough, it was EXACTLY $1,749, about to yet again pierce $1,750 before being trashed at EXACTLY 3:00 AM EST!
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Some RANT topics represent analogues to the complex world we live in, where the innocence of earlier days has been replaced by fear of 24/7 attacks by 21st century enemies such as “hackers” and “cybercriminals.” Computer “geeks” and think tanks alike believe Cyber terrorism to be a greater threat than military – even nuclear – attacks due to the potential for mass damage to electric grids, water supply, and power plants with the click of a mouse. As such, society has responded as it always does – by erring on the side of conservatism, to a fault.
Gone are the days of leaving personal belongings unwatched for even a few minutes, let alone hours, and god forbid you do so at the airport, where such items are rapidly seized and destroyed. At our summer house in Montauk, Long Island during the 1990s, we not only didn’t lock the doors, but didn’t have a key. Conversely, today I lock up when walking the dog around the block, and never leave my garage open due to the recent spate of “walk by” robberies. Not only do I have a high-tech alarm system, but recently upgraded it due to the FEAR engendered by living in a world seven billion people strong, amidst a nation in deep recession with rising unemployment, inflation, and social discontent.
I’m not sure what to think of the myriad passwords I currently have, which at last count numbered more than 200 due to different “password formats” at various websites, from simple, four number codes (ironically, at the bank) to complex 12-digit groupings of gibberish containing small letters, capital letters, numbers, and characters. Recently, I learned that some people employ hundred-digit codes, incorporating complex mathematical algorithms such as the Fibonacci Sequence to protect valueless laptop files!
In an increasingly litigious world, some websites mandate “password strength” tests to measure the likelihood of being cracked by hackers, while others have securities questions such as your favorite pet, maternal grandmother’s maiden name, or elementary school. Very clever, but simultaneously sad, particularly given how useless the information stored in many accounts tends to be. In fact, a neighbor of mine – a long-time salesman at a popular national retail chain – was recently appointed to the new position of “head of internet security,” a responsibility never dreamt of just a decade ago. The internet has certainly become a way of life, adding convenience, efficiency, and transparency to many of our every day chores and pastimes. However, with it also comes great costs, such as “hacking,” cyber terrorism, and an added layer of societal mistrust – and thus, isolation – as we move deeper into the second, “Greater” Depression.
Recently, governments have “officially” recognized the internet as a terrorist weapon, a fear-mongering tactic utilized to deprive us of personal and financial liberties. The EU already has its own “internet czar,” euphemistically titled “Commissioner for the Digital Agenda,” and shortly the U.S. will have one of its own, charged with administering soon-to-be-enacted laws such as SOPA, PIPA, and ACTA.
Did you know the U.S. government executive branch currently has 42 such “czars” covering 38 sectors – only 33 of which were confirmed by Congress – appointed by the President to meddle in everything from birth control to religion to food, paid for with PRINTED TAXPAYER dollars and beholden to no one except the President?
And doesn’t it scare you that during the past three decades, each President has absconded more constitutional power than the last, with Obama already surpassing George Bush’s “record czar level” in less than half the time in office?
Or that Obama, the “mad communist,“ is not only seeking to manage every aspect of our lives, but recently asked Congress for dictatorial powers to reorganize government at his will, with no input from the public via their constitutionally-elected representatives?
Given that Congress long ago abdicated important matters such as national security, i.e. declarations of WAR, to draft-dodging ne’er do well’s such as George W. Bush and two-bit attorneys like Barrack Obama, it seems a fait accompli that the nation’s “security” is set to take a quantum leap backward, just as REAL THREATS such as an all-out Middle Eastern conflict – with accompanying trade wars – looms on the horizon.
The coup de grace was last month’s passage of the fourth-amendment stealing National Defense Authorization Act – incredibly, by a 93-7 margin in the Senate – ensuring further danger to all Americans from a continually shrinking group of “elites” at the top, led by the President and his puppet masters from the nation’s largest lobbying groups, particularly the banks and military contractors. It is hard to believe the Patriot Act is now the second most dangerous piece of legislation drafted in U.S. history, but it now is – and dramatically so.
As you can see by the progression of this RANT, my real issue is not over-security on the internet, but under-security in areas of true importance, such as the government’s ability to DESTROY our lives with the stroke of a pen, rather than PROTECT us as mandated by the Constitution. Clearly my Ron Paul missive from yesterday has me thinking about big picture issues affecting us all, necessitating the need of replacing sociopathic politicians with men and women of character, intelligence, and noble goals – if such people still exist – and preparing ourselves for the more likely scenario of increased government mismanagement, conflict of interest, and oppression.
PROTECT YOURSELF, and do it NOW!