Bombs… er, Bonds and Banks are ALL Rotten to their Core.
This is the epicenter of the unfolding financial crisis
and inflationary/deflationary depression. The developed world is BANKRUPT and
the policies of INSOLVENCY are entrenched in its leaders and citizens in such
a way as to make the final destination of financial system destruction
UNAVOIDABLE. The “something for nothings” in the
developed world are firmly in control of the electoral process and their
constituencies continue to grow as the global financial crisis crushes their
incomes and future prospects.
Taxes are headed far higher, thus transferring capital from the
private economies (where jobs and incomes are created and where production
exceeds consumption) to the public sector which has no idea what cost-benefit
analysis is and consumes much more than it produces.
Author’s note on another subject: There is no sugar coating this;
virtually every chart I look at (outside down bars on weekly and monthly
charts) is set to CRASH -- stocks, many bonds, commodities, crude oil, grains
and many industrial metals. They
look like the 1st wave down in an impulse wave into the next down
wave of the unfolding depression, they better turn on the money printing
(re-flation trade) or it will be curtains sooner rather than later.
This unfolding maelstrom and crisis is nothing but
an opportunity for absolute-return managers with the potential to make money
in rising or falling markets and learning how to restore the functions of
money. This is what I do and if
you wish to learn more and get a free subscription to Tedbits
Today, money is a mystery to the common man who has
never been taught what it is or what functions it must perform to preserve
its wealth through time and space.
To teach him would send the existing central bankers, public serpents,
banksters, crony capitalists and elites to their demise at the hands of the
public they have betrayed.
The only currencies/money currently in circulation
are Gold and Silver. The rest of
the world’s currencies (US, Canadian and Aussie Dollars, British
Pounds, Japanese Yen, Euro, Swiss Franc, etc.) are credit masquerading as money. CREDIT IS NOT MONEY. It is only a medium exchange and a
system of wealth confiscation.
Money in the G20 has no intrinsic value; it is only a promise to pay
or an IOU. So, its value is
determined by the issuer’s ability to pay.
“Holding dollars today represents
risk without reward.” -- Joseph Stiglitz, Nobel Prize
AT THIS POINT NOT ONE ECONOMY IN THE DEVELOPED WORLD
IS GROWING AFTER PROPERLY ADJUSTING FOR INFLATION, BUT THEIR DEBTS AND
OBLIGATIONS ARE CLIMBING AT 10-20%.
This is the definition of insolvency and bankruptcy. Ultimately their printed money will go
to its intrinsic value……
“Currencies don’t float; they
just SINK at different rates” --
An illustration of this is provided to us from Mike
Hewitt at www.dollardaze.org:
The value will ALWAYS fall equal to the rate of
currency debasement, deficit spending and to the issuer’s ability to
pay. In the advanced
economies, the ability to pay is crashing by the day as their economies do
not produce more than they consume and they NO LONGER have the ability to do
so without critical restructuring.
Furthermore, it would require the undoing of the tax regulations and
mandates which have ROBBED these economies of their ability to create wealth,
of incentives to produce and to service their promises to pay. This is something the powers that be
will fight at any cost, otherwise they would have to support themselves.
As www.the-privateer.com says in this month’s edition “a global
economy based upon credit creation cannot survive unless it continually
expands to maintain the ability to service existing debt.” The idea that the quantitative easing
can be removed is false; debt issuance is at record highs as well the
requirement of rolling existing debt; debt is extremely deflationary and for
the G7 and the advanced economies they must INFLATE or DIE.
“The current crisis is not only the
bust that follows the housing boom; it’s basically the end of a 60-year
period of continuing credit expansion based on the dollar as the reserve
– George Soros,
Investor and Author
The developed world is in debt spirals where
debasement is ASSURED because it is the only means of repaying the unpayable
and inextinguishable debts and obligations which have amassed since Bretton
woods II. Inflate them away one
way or another. Take
a look at money and credit creation
through Sept 2009 (remember, this is not money but IOU’s, also known as
promises to pay):
WOW, just look at that. That is one hell of a pile of
IOU’s, just like a plane that tries to fly straight up, money and
credit creation are now going VERTICAL, when it stalls the only thing that will
hold it up is printing new money to replace that which disappears off the
lender’s balance sheets.
government has a technology, called a printing press, which allows it to
produce as many U.S. dollars as it wishes at essentially no cost.”
- Benjamin S. Bernanke Chairman,
That will work for a while until the public wakes
up, and we will be looking at hyperinflation and the Crack-up Boom, just like
Zimbabwe, Argentina and soon Venezuela.
let’s take a look at the amount of debt which needs to be created in
the world over the next several years to support the global
government’s EXISTING commitments:
Incomes are COLLAPSING and the unfolding depression
has been MASKED by accounting shenanigans. Forth quarter, year-over-year US treasury,
state and municipal receipts are off approximately 10.9%, but the debts and
new obligations are growing at almost double the rate of the collapse in
receipts and they are mushrooming like a nuclear blast. All this as politicians and their
special interests mandate benefits, bailouts and business to themselves
through new legislation (health care, cap and trade green technology, bank
bailouts, AIG, Fannie Mae and Freddie Mac, mushrooming support for Government
Motors, and the 19 banks now known as too-big-to-fail, which actually means:
government-sponsored enterprises, etc.) and send the bill to the public they
claim to serve. Every day the
debts and obligations grow and the existing currencies in circulation take on
an equal amount of lost purchasing power.
Remember the quote from Von Mises from the last
There is no means of avoiding the final collapse of
a boom brought about by credit expansion. The alternative is only
whether the crisis should come sooner as a result of a voluntary abandonment
of further credit expansion, or later as a final and total catastrophe of the
currency system involved. -- Ludwig von Mises
We may not know the ups and downs that the
economies, markets and societies may travel before arriving at that destination,
but we do know the final STOP:
Systemic meltdowns as the insolvencies overwhelm the ability to
pay. In the United States
the destruction is deliberate as the big government PROGRESSIVES on both
sides of the aisle work hard to create the final collapse of the economy
which will allow them to bury the free republic which was handed to us by the
To understand what is being implemented you need
only to study the playbooks of the Cloward-piven strategy (www.Cloward-piven.com or) or the teachings of Saul Alinsky. Look no further than the CZARS, (www.traderview.com/tedbits/Czars.pdf) who have been put into place by the powers that be
on Capitol Hill. PROGRESSIVES are
relentlessly expanding those on welfare or who are dependent on government
for business, thus creating the biggest constituency for ACTION after the
CRASH of the economy. Congress
has REFUSED to supervise them in contradiction to their oaths to UPHOLD the
constitution. Do web research on
this, it is frightening and true.
They are in place to assume power when the collapse
that the progressives, the President and Congress are crafting becomes
REALITY. What do you think the
value of the dollar will be when the economy collapses and the ability to pay
PLUMMETS? Every time the beltway
and European governments attack the private sectors (populous rhetoric, new
taxes, mandates and new regulations) the further away becomes recovery in the
The new taxes from all levels of government are set
to skyrocket; these economic nitwits don’t understand that taxes grow
with income generation, not the destruction of it. They REFUSE to cut spending hoping for
the GOOD OLD DAYS of unlimited consumer confidence and a credit bubble. Extend and pretend and it will end
badly, as pretend is something a child does, adults don’t have the
luxury of doing so. Just ask Hugo
Chavez how well that tactic works.
The G7 and developed world are nothing more than collapsing WELFARE
STATES and banana republics, and what we are waiting for is the RECOGNITION
“Fiscally, we are in uncharted
territory.” “No one
can know the precise level of net debt…at which the United States will
lose its reputation…but a few more years like this one and we will find
out.” -Warren Buffet, 2009
The Global experiment with
increasingly UNSOUND money began in 1913 with the creation of the Federal
Reserve, and was then inflamed with Bretton Woods I, and ultimately degraded
at Bretton Woods II when all pretense of reserve-backed money was
SEVERED. At that point, the
pendulum of wealth creation through real things like production,
manufacturing and adding value (thereby creating RISING profits and wages)
began to swing in the other direction, where wealth was, and still is,
created by inflating paper (asset-backed economies).
This de-industrialization combined with the
introduction of UNSOUND money short circuited the virtuous rise of the middle
classes and wealth creation in the developed world, also known as the
G7. In its place, wealth creation
became the province of INFLATION and credit creation (printing money in one
form or another).
For the G7 middle classes it has been a downhill
slide ever since, as it now takes TWO incomes to support a family, whereas it
took one to do so at that time.
The destruction of the family and civil society also began as REAL
INCOMES began their collapse under MISSTATED inflation numbers and fiat
currency and credit creation. To
illustrate the decline, take a look at this chart of incomes that have been
properly adjusted for REAL purchasing power from John Williams of www.shadowstats.com:
Notice how REAL earnings peaked during Bretton woods
II. Remember the quote from the
“By a continuous process of
inflation, governments can confiscate, secretly and unobserved, an important
part of the wealth of their citizens.
The process engages all of the hidden forces of economic law on the
side of destruction, and does it in a manner that not one man in a million
can diagnose.” -
John Maynard Keynes, 1920
The demise of the middle class began at that
time. The policies of government
switched from capitalism, wealth creation, sound money, savings and private
property to equal opportunity and the growth of the middle classes.
The progressive majorities in congress (republicans
and democrats who hold these beliefs) reordered the United States economy and
legislative agendas with the policies of socialism, unsound money, redistribution
of wealth through money printing and deficit spending (which is the same thing as currency and credit/borrowing as BOTH are
IOU’s), in addition to increasing regulations and taxes, crony
capitalism and centrally-planned economies. At the hands of that era,
thanks to the banksters, crony capitalists, public serpents and central
banks, came the misallocation of capital from where it produced the most
wealth to those who were the BEST CONNECTED and paid the most RENTS to those
Most blue-collar, middle-class people owned their
own homes, had savings accounts and rising wages, paid for most purchases and
education with cash, only borrowed for mortgages or big ticket items such as
cars and had very little debt.
The federal debt in 1971 ($436 billion) was 3% of what it is
Now they incur that much NEW debt in 4 MONTHS and
hand the BILL to future generations.
As of this writing, each man, woman and child’s share of the US
debt is $347,000 dollars. My son
was born in May 2009, at birth he had this amount of debt handed to him by
WASHINGTON DC when they issued him his social security card, or should I say
social insecurity card. On
January 28th the progressives in congress passed a debt ceiling
extension of $1.9 trillion dollars, a new $45,000 dollars of debt per person
incurred between now and the next election. Obscene, corrupt and immoral.
Now these debts and promises of future benefits have
grown to grotesque size and scope and are inculcated throughout the developed
world. The private sectors
and the blue-collar middle classes are DEBT, TAX and REGULATORY SLAVES to the
banksters, crony capitalists, public serpents and government.
Captive victims are what I call them; of course I am
one of them. Very few own their
home free and clear and 25% are underwater, their savings accounts are preyed
upon by the money and credit creators preying on the purchasing power of the
currency while it sits in the bank (how do you get ahead when banks pay 2%
and inflation is compounding at almost triple that), and financing education
has become a lifelong drag on the earnings it is supposed to raise. The public has been impoverished and
is desperate for CHANGE back to the policies which allow everyone to have
RISING standards of living now and for future generations, but they
won’t find them in the capitols of the DEVELOPED/ADVANCED
There are taxes on virtually EVERY activity in which
humans engage. Their prospects
for entrepreneurism and an expanding economy have been trampled by
regulations, fees, permits, and mandates which basically prohibit their
challenging the crony capitalists (in fact the regulators prey on the small
entrepreneur and almost never challenge the entrenched crony capitalist) and
their government partners. They
pay usurious rates of interest of up to 40% on consumer credit (this was
illegal for centuries) and when currency debasement is included they should
be considered “confiscatory” tax rates. If they want to buy almost any big
ticket item, the only way to do so is to enter the clutches of the banking
and lending communities. The
ability to get ahead and the notion of private property are GONE!!! Stolen from them by the people in whom
they have placed their trust!
The developed world has been turned on its head and
consumed by the policies of creating middles classes and accumulating wealth. As
Keynes put it, they are “debauching” society and the virtues of
saving, thrift, ingenuity, entrepreneurism, self restraint and the work
ethic. The rewards for these
behaviors have diminished YEAR after YEAR till we find ourselves where we are
today: Punished for these activities with the rewards CONSUMED by the
“something for nothing” people whose wages and savings are stolen
by the banksters, elites and public serpents who exploit them.
In 1971 the economic policies of the G7 switched
from creating wealth and producing more than you
consume, generating the wealth and savings needed to fund capital investment
and jobs to meet the future needs of a growing populous (the Austrian recipe
for wealth creation) to consuming more than you produce and borrowing from
the future to fund today’s consumption. This and misallocation of capital to
growth of government, as well as political determination of who is successful
by PUBLIC SERPENT mandates and regulation, which insulated the crony
capitalist from having to compete.
In order to thrive, you must pay RENTS to the political classes rather
than compete in the market place of consumers.
It is interesting to note that the emerging world
has embraced Capitalism to save their socialist governments, and in the
developed world Capitalists are embracing Socialism to save themselves. Socialism is misery spread widely as
crony capitalists increasingly rely on government support and mandates to be
successful; while Capitalism is providing more for less for consumers and, in
a rational world, GROWS. Which
approach do you think will yield the greatest results?
As to what the dollar will do versus foreign
currencies? Commercials, also
known as the banks and who are rarely on the wrong side of extreme markets,
are as heavily short the dollar as anytime in the last 5 years, as
illustrated by Postcards from Capetown:
Notice the last time the banks were this short
halfway through 2008. The dollar
continued to rally for almost 6 months, and in 2005 they nailed the top,
which tells us a rally can occur for up to 6 months, or turn very soon. If the crash occurs sooner rather than
later, the world will run into the dollar as they are conditioned to do so
like “Pavlov’s dogs.”
My bet is that the progressives in congress and the European capitols
push the economies over the ledge INTENTIONALLY!
largest banks are INSOLVENT and they are
operating in a world of regulatory forbearance and accounting fictions. The 5 biggest banks in the United
States control over 2/3rd of the nation’s deposits and have written
OVER THE COUNTER DERIVATIVES with nominal values of OVER 200 TRILLION DOLLARS
(16 times the size of the US economy and 3 times the size of the WORLD
economy); they are making markets in naked credit default swaps, interest
rate swaps, toxic CDO’s (collateralized debt obligations) and
securitized debt of all types.
The 19 banks deemed too big to fail are now MUCH,
MUCH more insolvent than when they were
RESCUED by the US Government, ditto for the largest banks in the UK,
Switzerland and the Euro Zone.
They are now guaranteed by the public who assumes the risk, and the
profits flow to the elites who have been rescued. If the public ever gets the idea they
are not guaranteed by government they would fail in short order. As the Bank of England governor,
Mervyn King, says too big to fail is impossible to regulate to safety, and he
Their liabilities are endless and their assets and
capital are a function of impossibly opaque and indecipherable
accounting. The biggest banks in
the world must ROLL over nearly $7 Trillion of debt in the next 2 years, and
without the government guarantees which allowed them to issue debt during the
crisis, their costs of borrowing is set to soar.
To understand why they are still standing you must
understand two concepts which apply to every central bank in the world, which
I will bring to you as quotes.
One from the founder of the Rothschild’s dynasty:
"Let me issue and control a nation's
money supply, and I care not who makes its laws."
-- Mayer Amschel Rothschild, Founder of Rothschild Banking Dynasty
The other is from Gary North:
Federal Reserve System is not about making money at the expense of the
government. It is about using a government-granted monopoly over money to
regulate the economy to the benefit of a handful of large banks. This has
always been its primary function.
banking system is a cartel. The Federal Reserve System is the cartel's
protector and enforcer”.
One more thing they have agreed to for their
monopoly on a nation’s money is that the governments and public
serpents that protect them will have as much funding as they require. It does not matter which nation you chose,
the system is the same.
"The crash has laid bare many
unpleasant truths about the United States. One of the most alarming, says a
former chief economist of the International Monetary Fund, is that the
finance industry has effectively captured our government-a state of affairs
that more typically describes emerging markets, and is at the center of many
emerging-market crises. If the IMF's staff could speak freely about the U.S.,
it would tell us what it tells all countries in this situation: recovery will
fail unless we break the financial oligarchy that is blocking essential
reform. And if we are to prevent a true depression, we're running out of
-- "The Quiet
Coup" by Simon Johnson, former Chief
Economist of the IMF (www.theatlantic.com/doc/print/200905/imf-advice)
I urge you to read the above-referenced article,
“the quiet coup,” it sheds light on the current state of
affairs. Most of these big
institutions are owned in one form or another by what are called the
Illuminati, or multi-generational elites such as the Rockefeller’s,
Kennedy’s, Rothschild’s, Warburg’s, House of Morgan, etc.
which have created a multiplicity of holding structures to hide their
dealings and holdings from the public. They control the money and they control
the lawmakers, PERIOD.
During periods of asset deflation, such as we are in
currently, they consolidate parts of the banking systems which they do not
control. Look no further than
JPMorgan Chase’s sweet- heart deals to take over Bear Stearns and
Washington Mutual for pennies on the dollar with the Federal Reserve taking
the risk on the liability side of the transaction by guaranteeing them from
further losses. This is what was
done during the GREAT DEPRESSION and it is repeating NOW. Thomas Jefferson said in 1802:
“I believe that banking
institutions are more dangerous to our liberties than standing armies.
If the American people ever allow private banks to control the issue of their
currency, first by inflation, then by deflation, the banks and corporations
that will grow up around the banks will deprive the people of all property
until their children wake-up homeless on the continent their fathers
And of course we are staring this right in the FACE.
Take a look at the DETERIORATING FINANCIAL conditions of the nation’s
banks as the crisis has unfolded creating the opportunity for further
consolidation of the United States banking system (2nd quarter
2006 through 3rd quarter 2009), courtesy of www.institutionalriskanalytics.com:
Wow, in June 2006 most of the nation’s banks
where the picture of HEALTH, and now just 3 short years later almost half
have fallen to grades of C, D or F.
This is illustrated in any developed/advanced economy in the
WORLD. Thousands of banks and
their ASSETS are poised to fail, teetering on bankruptcy and poised to be
absorbed by the elite’s financial systems’ holding companies for
PENNIES on the dollar, and those same institutions are the OWNERS of the
Federal Reserve. Institutional
risk management rates JPMorgan Chase as an F; how is it that they can absorb
these bankrupt brethren? The
answer is clear.
This is being repeated throughout Europe as weak
banking institutions are passed to the cartels sponsored by the respective
governments. Even though the
cartels are MORE insolvent than those they absorb, they will never fail; this
is set to continue as they are “too big to fail” which is a code
word for controlled by untouchable elites who control the governments in the
countries in which they OPERATE.
Up to 40% of the banks in the developed world are
insolvent and bankrupt. Trillions
of Dollars, Yen, Euros, Pounds and Swiss Francs will have to be printed in
the next few years to underpin and unwind these financial behemoths that are
not politically connected!
The bomb.…er, bond markets are
where the final blast will occur when the developed countries’ currency
and credit-creation systems FAIL and when people holding IOU’s
masquerading as money WAKE UP.
They will not SURVIVE the decade, but my estimate for ultimate failure
is 2012 to 2015. Hopelessly
OVERPRICED IOU’s, the bonds themselves are denominated in hopelessly
OVERPRICED IOU’s of the developed world’s (welfare states)
currencies: US Dollars, UK
Pounds, Euros, Swiss Francs, etc.
Let’s take a look at the mounds of bonds that
reside in the United States the need to be serviced out of current INCOME:
WOW, this pile of PAPER has increased 130% since
2000, but the incomes to service it properly have not increased at all. This picture is echoed throughout the
developed world. A recent Forbes
article (thank you Dennis Gartman for this info www.thegartmanletter.com) put the debt-to-GDP ratios (each nation’s sovereign and
bank’s debt combined) of the developed world at: Iceland 1,200%, UK 1,000%, Ireland 850%, Switzerland 750%,
Belgium 550%, France 475%, Netherlands 450%, Austria 425%, US 400%, Denmark
400%, Germany 400%, Sweden350%, Italy 300%, Greece 300%. These are the pictures of
insolvency; is it any wonder the Euro is weak? The Pound? Switzerland? This does not include other
categories of debt we see in the chart above, nor does it include unfunded
liabilities such as public pension benefits which can be several hundred
percent to the above figures; for example, it is $75 billion in the US or
another 500% to the total and it is the same everywhere.
“The problem with socialism is that
sooner or later you run out of other people’s money.”
-- Margaret Thatcher
It does not matter which class of bonds you look at:
Sovereigns, State, Municipal, Investment- grade Corporate, or Junk
bonds. All are hopelessly
overpriced and are clear illustrations of how much money in the world is
chasing too few opportunities for yield in a LOW GROWTH world. Many of the issuers operate in
technical bankruptcy but enjoy the ability to roll their obligations due to
politically-correct credit ratings and regulatory mandates.
International hot fire hoses of money desperate for
returns in a developed world where growth has ceased. Buying has become indiscriminate and
the public DOES NOT understand the risks; they are and have been piling in
and they are in imminent danger!
The parasites of BIG GOVERNMENT -- progressive
public servants, crony capitalists and banksters have short circuited wealth
creation and capitalism, and have substituted socialist corporatism. There will be very little increased
economic activity to service the debts, and massive defaults loom to those
that cannot be rescued by public serpents or print the money. The PARASITES have and are continuing
to KILL the private sectors and DESTROY the conditions and incentives for the
private sectors to produce. Go
back to Cloward-piven and Saul Alinsky to see what our public serpents are
implementing. So, wealth creation
is now dead and substituted in its place is FIAT CURRENCY and credit
creation. IN PLAIN WORDS: THEFT.
Let’s take a look at monthly charts of
sovereign bonds first, it is a picture of multi-decade bull markets and
massive TOPS created over the last several years:
You can see a massive head-and-shoulders top (not
active yet) with a breakdown of the most recent trend line off the June 2007
low. The longer-term trend
channel is still intact. The
Federal Reserve and its children at the primary treasury dealers can read
charts as well, the latest rally is probably engineered by them and it will
be interesting to see if they can get through resistance at the trend line
and stay above it.
Now let’s peek at Investment-grade and Junk
bonds with illustrations from David Rosenberg and www.gluskinscheff.com :
Wow, yields back to levels BEFORE the world economy
fell off a cliff; do you really think their ability to service their debts is
anywhere near that level, and for that matter, 50 cents of every dollar the
federal government now spends is borrowed. This is a picture of trillions and
trillions of dollars, yen, pounds, euros, Swiss francs etc., desperately
seeking yield in a developed world economy which IS NOT GROWING.
Overpaying for yield of any kind, a 2-year note pays
less than 9/10th of 1 percent, that is 9 dollars a year for the
privilege of lending them $1,000 dollars, a 6-month note yields about 75
cents on $1,000, for 5 years approximately $23.40 cents on $1,000 and the
10-year $36 a year on $1,000.
Everything else, muni’s, corporate and junk bonds are similarly
mispriced and the downside is quite large; are you going to risk 20-30% if
rates rise to make these meager amounts?
Risk $300 dollars to make $20-$75 depending on the bond you buy…
the risk reward is upside down.
Interest rates on all maturities stand at record
lows and sovereign debt is basically an interest-free loan to bankrupt G7
governments, who only roll existing obligations and borrow new money; they
never retire their debt. A ponzi
scheme of unheard of proportions, and in comparison, the Madoff affair was a
rounding error. Recently, bond
king Bill Gross of Pimco WITHDREW from the UK gilt market remarking that they
are sitting on NITRO Glycerin.
Forth quarter GDP in the UK came in at up 1/10th of one
percent, and the bank of England bought virtually all of last year’s
budget deficit; what do you think the odds are of rolling the old debt and
funding new deficits in the private sector in 2010?
I can’t emphasize enough how purely toxic the
Municipal bond market is.
Hundreds of billions of dollars of deficits loom on the horizon, and
the unfunded liabilities are maybe a trillion dollars or more. For example, Illinois has almost $90
billion of unpaid bills and unfunded pension liabilities. NO ABILITY TO PAY. This is only one state and it is a
story nationwide. NEW TAXES and
FEES loom as they will bury their economies even deeper.
Year over year 4th quarter 2008-2009 US
treasury receipts at all levels of government have declined 10.9% or more,
yet today it was reported that GDP rose 5.7%; how can that be? During the great depression there were
a number of quarterly periods where the economy grew. Unfortunately now, as then, it grew
because government deficit spending was counted as GDP. Government spending is NOT growth; it
is misallocation of precious capital to unproductive uses, aka government
expansion, and support of crony capitalist bailouts.
I will go no further, the point is made, caveat
emptor, play with paper and you could get burned as it is a house on
fire. Bonds are bombs,
banks are broke and currencies are toilet paper. Remember, never in 1,000’s of
years of history have fiat currency and credit financial systems endured,
they have ALWAYS fallen under hands of the men that control them. Looking at the current crew does not
lend confidence that this time history will be proved wrong.
PAPER IS POISON, PAPER IS POISON!
Keep this in mind.
This is not a liquidity crisis; it is a solvency crisis, both moral
and fiscal. Bankruptcy looms and
that means people do not honor their promises. Or they will do as Adam Smith outlined
in the Wealth of Nations -- they will use the soft default of the printing
press as they have for hundreds of years. The “something for
nothings” will drive us to this, locusts that will eat everything until
there is nothing left (see Tedbits
Archives for December 23rd, 2009).
Public serpents, crony capitalists, central and big
banks are DOOMED, their demise is on the horizon. The idea that paper
currencies printed limitlessly by governments can gain value against the true
currencies of gold and silver except for short periods is absurd. When central banks and the hedge funds
known as BIG banks try to kill the canary in the coal mine consider buying
The worm has turned, there are trillions of dollars,
yen, Euros, Swiss Francs and UK pounds which are promises to pay by bankrupt
borrowers, while gold and silver are timeless money and no one’s
liability. Exchange an empty
promise for a reliable one. The
indirect exchange can be seen in many BUBBLICIOUS markets, as investors try
and flee paper assets which contain no value and provide little return for
the risks involved. Huge bubbles
in paper assets and real ones are quite easily seen.
This unfolding maelstrom and unfolding crisis is
nothing but an opportunity, absolute-return managers with the potential to
make money in rising or falling markets and learning how to restore the
functions of money can add an important diversification. This is what I do; if you wish to
learn more and get a free subscription to Tedbits,
click here: www.traderview.com/portfolio_analysis_analysis.cfm
The Fed is trying to shrink its balance sheet and
withdraw, it will FAIL. To do so
will collapse the economy. The
reconfirmation of Bernanke was made ONLY after the explicit agreement to
print the money, on that you can rely.
The partners in crime known as the Federal Reserve and US Government:
Evil twins. It’s also an
election year. Spend, borrow, tax
and print, then do it again. The
Fed has trillions of dollars of toxic assets yet to absorb on the way to
hyperinflation and the Crack-up Boom.
hope turns to fear” moment may be at hand. YOU CANNOT IGNORE the message that was
sent in many markets in January. OUTSIDE
down bars, key reversals, Cambridge hooks, call them what you will but it is
a powerful chorus of FIREs burning, in the economy and in the markets. As Dennis Gartman says,
“attention must be paid”.
Many Grains, some industrial metals such as Dr Copper with a doctorate
of economics. Stock indexes, you
name it and it is UGLY, put on your stops if you are long…. I will pick up this story in the next
edition of Tedbits, don’t miss it!
The election of Scott Brown to Senator from Ted
Kennedy’s seat in Massachusetts is sweet irony that his seat stops
socialized healthcare, god does work in strange ways. This cry from Main Street following
the Virginia and New Jersey Governor’s defeats and the Massachusetts
Senate upset are falling on DEAF ears in the beltway. The site of the UNIONS carving out $60
billion of tax breaks for themselves and government workers before the health
care bill was DELAYED was such naked corruption as to beggar belief, but I
guess that describes the whole effort.
The st@te of the union address signals BIG trouble
-- we saw a BLIND ideologue and Hitler-like populous POISON, blaming his
opponents, calling out the Supreme Court and refusing to hear the message of
NO MORE BIG CORRUPT government.
The obscenity of government running up NEW debts of
$45,000 PER PERSON by next November, an inconceivable number to people who
earn less than that. Did you get
$45,000 dollars worth of government?
I know I didn’t.
Don’t you think the press should report that in language and
terms we all understand? No
wonder no one reads the main stream press. Somebody will pay;
unfortunately it is you and me. I
shudder for my family, your family and our children’s futures; it is
insane. Criminals are destroying
our futures. Their
special-interest supporters are accomplices to high crimes and misdemeanors
and sociopaths all.
Theodore “Ty” Andros
Please remember that subscribers
generally receive Tedbits two to three days before it is posted on the web. Subscribers
will also start receiving guest essays from leading economic pundits, and a
blog looms soon. So if you want it early and the added features SUBSCRIBE NOW
Thank you for reading Tedbits if you
enjoyed it send it to a friend and subscribe its free at www.TraderView.com don't miss the next edition of Tedbits.
If you enjoyed this edition of Tedbits
then subscribe - it's free, and we ask you to send it to a friend and visit our archives for additional insights from previous
editions, lively thoughts, and our guest commentaries. Tedbits is a weekly
Click here and I will prepare a complimentary,
no-obligation, custom-tailored set of portfolio recommendations designed to
specifically meet your investment needs. Thank you.
is authored by Theodore "Ty" Andros, and is registered with
TraderView, a registered CTA (Commodity Trading Advisor) and Global Asset Advisors
(Introducing Broker). TraderView is a managed futures and alternative
investment boutique. Mr. Andros began his commodity career in the early
1980's and became a managed futures and forex specialist beginning in 1985.
Mr. Andros duties include marketing, sales, and portfolio selection and
monitoring, customer relations and all aspects required in building a
successful managed futures and alternative investment brokerage service. Mr.
Andros attended the University of San Diego, and the University of Miami,
majoring in Marketing, Economics and Business Administration. He began his
career as a broker in 1983, and has worked his way to the creation of
TraderView. Mr. Andros is active in Economic analysis and brings this
information and analysis to his clients on a regular basis, creating
investment portfolios designed to capture these unfolding opportunities as
the emerge. Ty prides himself on his personal preparation for the markets as
they unfold and his ability to take this information and build innovative
professionally managed portfolios. Developing a loyal clientele.
This report may
include information obtained from sources believed to be reliable and
accurate as of the date of this publication, but no independent verification
has been made to ensure its accuracy or completeness. Opinions expressed are
subject to change without notice. This report is not a request to engage in
any transaction involving the purchase or sale of futures contracts or
options on futures. There is a substantial risk of loss associated with
trading futures and options on futures.