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Thursday, December 01, 2011

Is This Why We Were Born?

The reason that sovereign debt cannot fail is because the five largest US banks hold trillions of dollars of credit default swap OTC derivatives guaranteeing this garbage against failure.

If euro debt fails, the Western financial world implodes.

"QE to Infinity" and gold at $4500 is coming as sure as death and taxes.

The process of "de-levering" this humongous, unbelievable, never-been-seen mountain of totally toxic derivatives is what the world must pay for. The draining of the juice from the future of humanity took them over 25 years to create and eventually burst the bubble.
The 1% beneficiaries have already reaped. The 99% will continue to pay for as many decades as it takes, and with the always bought and paid for political entities at their command, this could take for all eternity. Such is the stupidity of the simple-minded multitude that just keeps on multiplying.
The exponential increase of the suffering of the ever-increasing many will ensure the further and further enrichment of the ultra-elite few until they own all of the very air that all living creatures breath.
It was their great great grandfathers that bequeathed to them this god-like power, which neither they nor their offspring can be or should be trusted with.
Now it is either you or them, and I will not put my money on you. However, since I am also affected, money becomes meaningless.
Posted by pardonme at 12/01/2011 05:06:00 PM

Back in 2009...

Surmising the Americans cannot have a recovery and a truly strong dollar at the same time. As recovery gathers pace the only direction for interest rates is up (inflationary). Major currencies have been and still are competing for weakness. Quantitative easing devalues a currency, but this must still continue until jobs become self-generating. The ongoing carry trade will not suddenly decide to control itself, the supporting short-term interest rate differentials need to reduce, but how? World population is increasing by over 217000 per day (GeoHive). It is apparent that the smart money is looking for safety (+ growth) in gold and for investment in essential commodities. Gold is still the safest alternative for preservation of buying power going forward. Even when (if) the recovery commences there will then be inflation. The balance of sentiment of the carry trade operatives is controlling day-to-day market direction. Most of the mountain of money that shifted to bonds is still waiting to return to equities and is increasingly frustrated with negative real growth (less risk averse).

October 2010...

Slowly, slowly the impending future unfolds before us and the unwanted days of further reckoning draw ever closer.
A most unprecedented experiment is being played out, from which some may prosper, but many many more may become truly desperate and multiply the numbers of those that are indigent. The stakes are perilously high.
There is no choice here, QE is not optional - it is the only hope left for manageable peace during the passage.
This bid for reparation for the endless wrongful acts of the past generations of American leadership has absolutely no guarantee and affords only hope for a successful outcome against heavy odds.
This hope is almost analogous to a religious belief of everlasting life except that the beneficiaries are not intended to be restricted to the unquestioning and fearful or otherwise indoctrinated faithful.
Should we pray?