Faux Markets Fryday- Market Rallied On Inflation and Faux EU Band Aid Bailout, Savvy Investors Not Fooled; Monopoly Game is Almost Over; TBTF Banks Rotate Money From Left to Right; Dr. Deficit Makes a Joke While More Americans Suffer; SA Nations Mock the U.S. for Monetary Policy; IEA Halts SPR Release, Catch on to Scam; Fukushima, Still Leaking Radiation; Much More
Wrong.
The "economy" continues to be flooded with fiat money and that ends up "trickling down" (you remember, the "trickle down Obamanomics" that is making you feel so rich these days) to you in the form of inflation. We won't beat a dead horse, but just go shopping for basics and fill up your car and let us know if this inflation is "transitory." Right, Dr. Deficit?
The Game.
Remember when you were a child (or last year) and you and your friends got together to play the classic board game, Monopoly? Do you remember that almost always, the guy who was the "banker" in charge of your money, won the game. No matter how many times he landed on your hotel properties (which you somehow mortgaged to him at the end to pay your bills) he always won? Well, how could this be? Proximity to the coffers had nothing to do with it. Riiight.
In an ironic (and depressing) sense, that is what our world has become. The game is called "Monopoly" for obvious reasons, and it's designed so that one person will always eventually win. The game can go on for a long, long time but ultimately, one person wins and then the game is over.
The real monopoly game is now almost over. We already know who "won" so why play any more? Because you love your iPad, silly!
If you needed more proof that the end of this game is almost over, just look at the price of gold (and silver). The higher they go, the closer the end of this Monopoly game is. And those banks which borrowed TARP funds and then paid them back, all of a sudden have been found to simply take money from their left pocket and put it in their right pocket by borrowing directly from the Fed. First good article in a long time to come from Yahoo finance. With all of the drama about debt ceiling this and Greek contagion that, could they (the U.S. and EU) be working to coordinate a strategic default, at the same time?
Today, we see an excellent article from Bloomberg's Anna Jackson that spells it out in simple terms. The latest data suggests most consumers are increasing their credit card purchases just to get by as inflation hits them harder and harder. And how does Dr. Deficit reply to this? He says, "The anticipated pickups in economic activity and job creation, together with the expected easing of price pressures, should bolster real household income, confidence, and spending." Really? You can't make this stuff up.
You know the U.S. economic policy is screwed royally when it's getting harsh words from South American nations who are experts in defaulting and a poor gov't structures. My oh my. How the tables have turned.
Which is why gold and silver still shine. Since the global economy runs on oil quite literally, it goes without saying that the higher the price of oil, the higher the cost of nearly everything else and in turn the slower the general economy. Very simply economics 101 here. With that said, we're looking at $100 oil once again (after the totally failed
On that thought, we'll leave you with some depressing news from Fukushima. First we learn that power to the cooling pumps at reactor 3 were shutdown and TEPCO assures us that no "major" radiation increases were found. Well, that all depends on your definition of "major." We know that could mean a whole Chernobyl was released and it still would be
We find it interesting that TIME.com is running an article on the cover ups of Fukushima. Although Fukushima is "out of sight, out of mind" for the majority of MSM, it doesn't mean that some individuals are not paying attention to this ongoing epic catastrophe. Since March 11th, the situation has escalated. So much so that more and more radioactive materials are being discovered in Philly, PA sewage water. Of course, officials claim that sudden and sharp rise in radiation is from "cancer patient's urine." Riiiight. Just like radiation is healthy for you.
Finally, we want to thank all of our readers for your support. We have finally reached 100 posts and 140k page views in just over 4 months time and we hope to be around for another 100k posts. Then again, the banksters control "The Bank" and they own Boardwalk, Park Place, all of the Rail Roads, Pennsylvania Avenue, the utilities and even somehow they managed to take over the Community Chests. Time to get a beer and call it a night.
Update:
The huge bomb that rocked Oslo today should be bullish for the economy.
It all makes sense now that Business Insider has confirmed what we suspected. 1 in 66 Americans are psychotic. And that works out to be roughly 5 million very sick Americans. We know of at least one who holds the top position at the U.S. Federal Reserve and a PhD. The other 4,999,999 all are on the same payroll. It makes sense. Now, who wants the the "Iron" or the "Thimble"?
Morning Update/ Market Thread 7/22 - Kabuki Theatre Edition
Good Morning,
Equity futures are falling this morning after yesterday’s money pumping glory rally. The dollar is up slightly, bonds are up, oil is down, gold is pushing up strongly above $1,600 again, silver is rising, but food commodities are falling.
There are no meaningful economic releases today.
The market remains unreal and nothing but fluff. Yesterday it was another Greek “bailout,” coupled with more rumor-mongering political kabuki regarding the debt ceiling. The Greek “bailout” is nothing but money from yet another “special fund” used to lengthen the time the Greeks are enslaved, but to artificially do it at a far lower interest rate than any free market would ever allow.
And so I ask, WHERE DOES THE MONEY FOR THAT COME FROM? Did it exist already? If it did exist already then it is taking money from something and someone else… but that’s simply not the case. This is just another cover-up scheme to create the appearance that money printing is not occurring to cover DEFAULTED debt. The Greeks are in default, but then again so are we – this scheme is the exact same scheme the “Fed” is running on Americans. And just look at how you pay for it in the depreciation of your money - $1,600+ gold, and you pay for it every single time you fill up your tank or take a bite to eat. Famine in Africa is nothing compared to the nasty conditions created all over the world by out-of-control narcissistic central bankers.
As far as our debt ceiling kabuki… the rumor of $3 trillion “saved” over a decade means that our deficits will still be growing exponentially. The math is impossible and everyone will find that despite all the talk of “deficit reduction,” that real reduction is going to be absolutely unachievable. Impossible is just that – none of the proposals will so much as dent the impossible math. The only thing they can possibly accomplish is to fool you for another year… maybe… if you don’t have two neurons communicating with one another that is… which collectively we seem not to have.
Whatever, all that is completely on ignore from me because I know how this game eventually ends. I am committed to working outside of the central banker system, that means I refuse to participate in their unfree, manipulated at warp-speed, “markets.” No thanks.
Instead I am putting my money to work building a real business. A business that does not depend upon financial engineering, banks, and one that will create jobs here in America while being on the leading edge responsible with efficient use of resources. There are a lot of people with money out there looking for real places to put their capital to work. Matching that money up directly with real business is the only way around the central banking paradigm, besides owning precious metals. My sense is that there is more and more of this direct financing occurring. If you look, you will find opportunity in this regard – just make sure that you perform your due diligence.
Equity futures are falling this morning after yesterday’s money pumping glory rally. The dollar is up slightly, bonds are up, oil is down, gold is pushing up strongly above $1,600 again, silver is rising, but food commodities are falling.
There are no meaningful economic releases today.
The market remains unreal and nothing but fluff. Yesterday it was another Greek “bailout,” coupled with more rumor-mongering political kabuki regarding the debt ceiling. The Greek “bailout” is nothing but money from yet another “special fund” used to lengthen the time the Greeks are enslaved, but to artificially do it at a far lower interest rate than any free market would ever allow.
And so I ask, WHERE DOES THE MONEY FOR THAT COME FROM? Did it exist already? If it did exist already then it is taking money from something and someone else… but that’s simply not the case. This is just another cover-up scheme to create the appearance that money printing is not occurring to cover DEFAULTED debt. The Greeks are in default, but then again so are we – this scheme is the exact same scheme the “Fed” is running on Americans. And just look at how you pay for it in the depreciation of your money - $1,600+ gold, and you pay for it every single time you fill up your tank or take a bite to eat. Famine in Africa is nothing compared to the nasty conditions created all over the world by out-of-control narcissistic central bankers.
As far as our debt ceiling kabuki… the rumor of $3 trillion “saved” over a decade means that our deficits will still be growing exponentially. The math is impossible and everyone will find that despite all the talk of “deficit reduction,” that real reduction is going to be absolutely unachievable. Impossible is just that – none of the proposals will so much as dent the impossible math. The only thing they can possibly accomplish is to fool you for another year… maybe… if you don’t have two neurons communicating with one another that is… which collectively we seem not to have.
Whatever, all that is completely on ignore from me because I know how this game eventually ends. I am committed to working outside of the central banker system, that means I refuse to participate in their unfree, manipulated at warp-speed, “markets.” No thanks.
Instead I am putting my money to work building a real business. A business that does not depend upon financial engineering, banks, and one that will create jobs here in America while being on the leading edge responsible with efficient use of resources. There are a lot of people with money out there looking for real places to put their capital to work. Matching that money up directly with real business is the only way around the central banking paradigm, besides owning precious metals. My sense is that there is more and more of this direct financing occurring. If you look, you will find opportunity in this regard – just make sure that you perform your due diligence.
Smoke and Mirrors Thursday- EU Enters 11th Hour, All Global Financial Problems Solved, Markets Rally; Initial Claims Get Swept Under Rug as They "Unexpectedly" Rise Again; Entire Memphis School District Shut Down Indefinitely; Tons of Bullish Economic News, Such as Store Closings and Mass Layoffs; Gold and Silver Still Shine; Mega Mansion Gives Marker; Much More
Updates
Update 1: You asked for it. Here it is. What does total U.S. unfunded liabilities look like in fresh clean $100 Bills you ask? Sit down and enjoy. No problem a digital dollar created out of thin air can't fix. Again, smoke and mirrors.
Main Article
As the EU enters the 11th hour and a crisis meeting is held, alreadyKoolAid infused hope is bubbling forth that somehow, in a single brush stroke of European genius, all of Greece's problems (and by extension, all of the world's financial problems) are solved. In an instant. Poof!
The biggest news to come out of this latest "Marshall Plan" is an expansion of the EFSF which will allow Greece to borrow for 15 years at 3.5% , which oddly enough happens to be 30 basis points less than current 15yr French bonds at 3.8%. Huh? Say what? Exactly.
Most of these latest 11th hour heroics are once again based onhopium assumptions that Greece will miraculously produce outrageous 3.5% GDP growth in a years time (for those keeping track, not only did the most recent 1H data show that Greece totally bombed and experienced a huge economic contraction, they missed all revised marks set forth as part of the bailout requirements as well). Now we learn officially that Greece will be allowed to default. Act surprised. When all else fails, close your eyes. This won't hurt one bit.
On this news, "the markets" once again rally as the dollar tanks. Sure, P/E ratios of 1200x are never enough - might as well run them up to 1400x on another dose ofhyperinflation hope filled expectations, because we all know how good Wall Street's finest are at making estimations. Speaking of which, the SPR oil release which did nothing for you or I made JPMorgue about $20 million richer in just a few days time - on the tax payers dime, both ways. $100pb oil is very bull...ish for the economy. Right on.
No, scratch that - fundamentals don't matter one single iota so long as Apple sells a trillion iPads to children selling their kidneys and their virginity. After all, Apple stock is a leading indicator of good times to come.
For that reason, the news out today that Initial Claims rose again "unexpectedly" by 10k to 418k means nothing. Neither does that fact that this makes it the 16th consecutive week of Initial Claims above the 400k mark - a very important marker. What's that? You went to 6 years of college, paid $140k in tuition and you still can't find a job? We heard McDonald's is hiring hamburger flippers. Oh, wait. Sorry, those positions are already filledwith woodpulp.
Of course, today's Initial Claims data quickly and quietly gets swept under the rug so as not to shake your confidence in thisdepression recovery - just like yesterday's astoundingly horrific Housing data where "the markets" rallied on that news as well. Pay no attention to the fact that housing just fell off a cliff. We're once again at a loss for words over this total insanity. Any wonder why retail investors have left the building? The expression that that markets "can stay irrational longer than you can stay solvent" don't apply here. There are no free markets. Period.
Then again, this great illusion which continues to be sold to the public as an economic recovery, is setting the world up for a Mega Black Swan. And that will occur when everyone least expects it. And yes, we've moved higher on the GEES scale because of it.
So while Wall Street celebrates the Xanax hope drug induced rallyand coming hyperinflation, we will continue to pay close attention at the real fundamental, structural changes that are taking place under everyone's noses. Consider:
-We wonder if the entire Memphis School District is celebrating the Dow(n) Jones rally today, as school has officially been indefinitely postponed over money (or lack of). One group of citizens will be celebrating however - the over 100k students who will not be going to school as planned on August 8th. Skool is officially out!
-Last year, over 1 million homes were repossessed by TBTF&TCTS banks and this year is not expected to be any different but new delays may push that out into 2012 and beyond as Bloomberg reports, is casting a real major storm cloud over housing for the foreseeable future.
-Worried about the debt ceiling drama? Don't be. The debt ceiling will be raised as we said it would and the U.S. will never be allowed to technically default thanks to the invention of the printing press. However, as Ron Paul so aptly said, "When a country is indebted to the degree that we’re indebted, the country always defaults. We will default because the debt is unsustainable [...] if we don’t understand this, this default will not be because we don’t send out the checks. We will send out the checks. It will be defaulted on because people will get their money back, or they will get their Social Security checks and it won’t buy anything." Well said. The entire basis for this blog is just that - inflation is required in order to keep the global ponzi economy going and TPTB in power. Everyone else is just another slave.
- Cracker Barrel Old Country Store Inc.said it will layoff 60 workers. The move will save them $10 million. Ready for this? They cited "higher commodity costs and the effect of a 'challenging economy' on consumer spending habits" as the reasons for the cuts. I know a few people who will have a field day with this one.
Update 1: You asked for it. Here it is. What does total U.S. unfunded liabilities look like in fresh clean $100 Bills you ask? Sit down and enjoy. No problem a digital dollar created out of thin air can't fix. Again, smoke and mirrors.
Main Article
As the EU enters the 11th hour and a crisis meeting is held, already
The biggest news to come out of this latest "Marshall Plan" is an expansion of the EFSF which will allow Greece to borrow for 15 years at 3.5% , which oddly enough happens to be 30 basis points less than current 15yr French bonds at 3.8%. Huh? Say what? Exactly.
Most of these latest 11th hour heroics are once again based on
On this news, "the markets" once again rally as the dollar tanks. Sure, P/E ratios of 1200x are never enough - might as well run them up to 1400x on another dose of
No, scratch that - fundamentals don't matter one single iota so long as Apple sells a trillion iPads to children selling their kidneys and their virginity. After all, Apple stock is a leading indicator of good times to come.
For that reason, the news out today that Initial Claims rose again "unexpectedly" by 10k to 418k means nothing. Neither does that fact that this makes it the 16th consecutive week of Initial Claims above the 400k mark - a very important marker. What's that? You went to 6 years of college, paid $140k in tuition and you still can't find a job? We heard McDonald's is hiring hamburger flippers. Oh, wait. Sorry, those positions are already filled
Of course, today's Initial Claims data quickly and quietly gets swept under the rug so as not to shake your confidence in this
Then again, this great illusion which continues to be sold to the public as an economic recovery, is setting the world up for a Mega Black Swan. And that will occur when everyone least expects it. And yes, we've moved higher on the GEES scale because of it.
So while Wall Street celebrates the Xanax hope drug induced rally
-We wonder if the entire Memphis School District is celebrating the Dow(n) Jones rally today, as school has officially been indefinitely postponed over money (or lack of). One group of citizens will be celebrating however - the over 100k students who will not be going to school as planned on August 8th. Skool is officially out!
-Last year, over 1 million homes were repossessed by TBTF&TCTS banks and this year is not expected to be any different but new delays may push that out into 2012 and beyond as Bloomberg reports, is casting a real major storm cloud over housing for the foreseeable future.
-Worried about the debt ceiling drama? Don't be. The debt ceiling will be raised as we said it would and the U.S. will never be allowed to technically default thanks to the invention of the printing press. However, as Ron Paul so aptly said, "When a country is indebted to the degree that we’re indebted, the country always defaults. We will default because the debt is unsustainable [...] if we don’t understand this, this default will not be because we don’t send out the checks. We will send out the checks. It will be defaulted on because people will get their money back, or they will get their Social Security checks and it won’t buy anything." Well said. The entire basis for this blog is just that - inflation is required in order to keep the global ponzi economy going and TPTB in power. Everyone else is just another slave.
-How else can a public company keep its stock price so insiders can sellout high while the economy continues to plummet? Cut everything. All full time jobs become part time jobs with no benefits. Short term savings can be achieved by closing many stores in rapid succession, even if they are profitable long term. Now that Borders Books Stores is officially closing all 400 remaining stores (well, with a BK filing a few months ago, who could have seen that coming? Not Wall Street's finest.) and cutting the last of the 11k jobs they support, this should be worth a few hundred points on the Dow(n) Jones today.
- Nothing is more bullish for the economy than store closings. In addition to Borders, just today we'll add 220 Gap stores, 58 nationwide Perkins restaurants, and about 3,700 U.S. Post Office locations. Stay tuned, tomorrow we'll have a few more biggies.
- Besides the bullish store closings, Lockheed Martin is announcing 6,500 "voluntary" job layoffs which just came on the heels of a 2,700 involuntary job layoff.
- CA Tech just reported record profits, but they'll still have to cut 500 jobs if the CEO and the other filth the other execs are to keep bonuses this year.
- Cracker Barrel Old Country Store Inc.said it will layoff 60 workers. The move will save them $10 million. Ready for this? They cited "higher commodity costs and the effect of a 'challenging economy' on consumer spending habits" as the reasons for the cuts. I know a few people who will have a field day with this one.
- And on and on. We could list another dozen or so news articles just from today's tickers, but for the sake of time, we suggest you put your rose colored glasses on and enjoy "the market" rally today on this wonderfully bull...ish news. But before you do, remember that Gentworth Financial is down 20% today on "more mortgage woes and a poor outlook." Shhh, don't let this make a headline.
Our heads are still spinning from yesterday's rally. For what it's worth, the best way to win this rigged game, is not to play at all. Gold and silver are things they don't want you to own. So think about that.
Finally, if you're living on the west coast you're probably being radiated & radiated & radiated by Fukushima yesterday a 70,000 square foot mansion made the news and it reminded us of the time just before the French revolution in 1778 when the elite were building larger and larger palaces all over the country, while the people starved on food stamps and they suffered from a lack of jobs, lack of food and clean water, high taxes, inflation, etc. Sound familiar? We're not sure if that article about the mansion was written as propaganda to get people to get up out of their chairs and go buy a house, or to feel good because that mansion is supposed to be a signal of economic prosperity, but we will say in the terms of a temporal marker, it's obvious what is coming. Rally on, Mr. Market! 36k on the Dow(n) Jones can't come soon enough.
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