Wednesday morning, and fresh off
another PPT “Hail Mary” rally yesterday to support the key ROUND
NUMBER 12,000. Yet again, European markets (and Dow Futures) were down
all night, until magically the Dow started rising just before the NYSE
Yesterday, the ONLY news I saw was
further fanning of the Italian economic conflagration…
BTPs break ABOVE 7% again, Italian DOWNGRADE rumors
…yet the Dow decline was stopped
cold, for the SIXTH TIME in the LAST EIGHT DAYS, at EXACTLY 12,000 (12,001 to
Moreover, one of America’s oldest
companies, in one of its most important industries, AMERICAN AIRLINES, is in
its death throes. American is the world’s fourth largest airline,
employing 73,000 people, and when it goes under (or is acquired out of
bankruptcy), airline fares across the nation will rise sharply due to limited
But don’t worry, as long as the
PPT is on the case, the Dow can indefinitely rise against all fundamentals
Equity and credit DISCONNECTED AGAIN
Back to today, a carbon copy of
yesterday, only worse!
I walked into the gym at 7 am EST to
see Dow Futures down 70 points, to just above 12,000, only to rally THREE
SEPARATE TIMES from that level. As always, the news ACROSS THE BOARD
was terrible, signifying, if anything, accelerating declines in GLOBAL economic
First in Japan, where 22 years of
recession appears likely to become 30+ years. Not only is their economy
mired in unending decline and nuclear winter, but despite the highest
debt/GDP ratio on earth, the Yen is the world’s STRONGEST CURRENCY.
The $50 billion intervention of just two weeks ago has already failed, with
the Yen/Dollar again approaching its ALL-TIME HIGH.
Bank of Japan LOWERS economic outlook
The BOJ has lost close to $600 billion
of freshly printed money THIS YEAR ALONE trying to weaken the Yen, but it
continues to rise due to its favorable trade balance with the dying United
States. Consequently, its largest companies are losing market share,
and thus considering….if you can believe this…moving operations
to CHINA to become more competitive. Such actions will further increase
Japanese unemployment, yielding reduced consumer spending in the
world’s third largest economy, and further strengthening of
China’s grip on global manufacturing.
I wonder if the Prime Minister of Japan
will call China currency manipulators…
Meanwhile, the Bank of England is
preparing for additional, OVERT Quantitative Easing, just ONE MONTH after
announcing its last round. England has some of the highest inflation
rates in the Western world (I know, I was just there), yet its government has
the GALL to claim inflation is non-existent! What on earth could all
those people have been rioting about?
BOE leaves door open for MORE QE
Heck, if the U.S. can report ZERO
inflation with gasoline prices just $0.25 or so from their multi-year
U.S. October Consumer Price Index Report (Text)
…and ready to EXPLODE higher, I
guess anyone can.
Crude oil passes
$100 – ZeroHedge
We know the 1% inflation rate utilizing
today’s mutilated CPI is 10x lower than what it would be using the
pre-2000s version, and what a coincidence, the CPI calculation was changed
just as the dollar index peaked!
However, when the government’s
goal is to create public PERCEPTION that QE3 is DESPERATELY NEEDED, the
CPI-fudging mechanism goes into hyperdrive…
SUPPOSED deflation blows door for QE3 wide open
Over in Europe, the ECB again
repurchased Italian bonds this morning, pushing yields below 7% until the
shocking revelation that Unicredit, BY FAR Italy’s largest bank, is
And whattya know, Italian bond yields
are back up above 7% (comical, isn’t it?)
Unicredit FAILURE CONCERNS, ITALIAN, SPANISH YIELDS RISE
2010 Largest European banks by assets
Of course, it doesn’t take a
rocket scientist to realize Unicredit is a goner, given that it, as well as
the second and third largest banks in Italy, are ALL penny stocks!
Thrown in an expanding LIBOR funding
crisis, headed rapidly toward the late 2008 crisis levels…
Houston: We Have A Funding Crisis (And A Broken Libor Primer)
… and one wonders how well this
year’s 104 remaining European bond and bill auctions will go,
particularly those conducted during the thinly-traded holiday season.
Can you say ECB HYPERINFLATION?
Europe’s 104 remaining 2011 bond and bill AUCTIONS
Here in the United States of
Corruption, I see the Post Office is running out of money, YET AGAIN. I
have no beef with postal workers, but let’s face it, mail service is as
obsolete as the Pony Express and Buggy Whip. Nearly all my bills and
personal correspondences are sent ONLINE, and anything important is mailed by
COURIER SERVICE, such as UPS and Fed-Ex. I’d estimate 97% of my
mail gets thrown out as SPAM, three-quarters of which are credit card
applications and advertising circulars, ALL of which are available ONLINE.
If the USPS was a rational business, it
would be shuttered except for courier service, or at the most limited to
once-a-week delivery. However, not in the United States of Bureaucracy
and Welfare, as the post office’s 671,000 employees cannot be laid off,
lest food riots would commence immediately. Think about it,
readers; the U.S. population is roughly 300 million people, of which
roughly 57% are employed at rates above the minimum wage, or 170 million
people. Thus, the Post Office represents approximately 0.5% of the
labor force, or one in every 200 working Americans. Quite a luxury for
a bankrupt nation, as post office work ranks as one of the highest paying
vocations, compared to skill set complexity, in the world.
U.S. Postal Service LOSES $5.1 Billion, may DEFAULT
Meanwhile, the U.S. debt will probably
have passed $15.0 TRILLION by the time you read this, and just a WEEK from
today the bickering “SuperCommittee” is charged with coming up
with $1.5 Trillion of budget cuts, so that the debt ceiling can be raised to
$16.4 TRILLION by year-end. Don’t be surprised to see YET ANOTHER
debt ceiling debacle next week, just in time for Thanksgiving.
US Debt Clock
But don’t worry, as long as the
Cartel can hit gold by $20/oz. at EXACTLY the opening of the PAPER COMEX
market, “all’s well.” And I kid you not, for the past
hour the PPT has been holding the Dow within 10 points of 12,000, YET AGAIN!
Finally, my topic of the day, the
“Occupy Wall Street” movement, which seems to be misunderstood by
so many. Yesterday afternoon, I drove into downtown Denver to observe
“Occupy Denver,” operating simultaneously with “OWS”
for many weeks now. I had no interest in participating, as my stand against
oppressive fascism is taken in these missives, but I did want to see how
others were taking their stands.
Unfortunately, the turnout was low due
to weekend violence that caused multiple arrests, but irrespective a small
group was present. I would not rank this group as either intimidating
or effective, but nevertheless they remained. The only telling evidence
of genuine public disapproval of “the system” was a group of
people standing with “anti-Fed” signs by the Street to a
cacophony of approving car horns. Otherwise, a major disappointment.
As I watched for roughly a half-hour, I
thought of the PROPAGANDA seeking to sell short (pardon the pun) the OWS
movement, as if has no meaning. Sure, there are numerous homeless and
hangers-on seeking a party, or a meal, but nonetheless the movement
continues, not just in high-profile cities like New York, but 900 lesser
cities throughout the world. OWS is unlikely to ACHIEVE anything, but
it REPRESENTS something important, the ANGER of the 99% of people who arelosing,
while the 1%, whom largely caused the world’s
problems, are winning.
They are ANGRY at filth like John
Corzine, the only man to have completed the “triple crown of
slime,” i.e. State Governor, U.S. Senator, and CEO of Goldman
Sachs. In ALL THREE POSITIONS, Corzine was responsible for profiteering
at the expense of the masses, even sinking so low as to use Chris
Christie’s weight as a talking point in the 2009 NJ
gubernatorial race, and had the GALL to gregariously speak at a high-end
banking dinner the evening before MF Global collapsed.
Corzine’s LOST WEEKEND
Once again, a video tells a thousand
words, and it is hard to beat this one from Jon Stewart when describing how
low a human being John Corzine is, if that description is even
applicable. I didn’t think it possible that the award for most
vile Goldman CEO of all time would NOT go to Lloyd Blankfein or Hank Paulson,
but I present to you John Corzine…
Congratulations New Jersey, you know
have one of the poorest states in America!
Debt in America – MOST and LEAST indebted states
Not just those attending OWS rallies,
but “the 99%” in general, are ANGRY at criminal organizations
like JP Morgan, blindly STEALING from:
JP Morgan sued for
silver manipulation – Go! Animate
MF Global Clients Accuse J.P. Morgan of Overreach
Jefferson County – SCREWED by JP MORGAN – files for
and sovereign nations…
Wall St. Helped to MASK DEBT Fueling Europe’s Crisis
…while CONTINUING to create new,
SATANIC ways of DESTROYING capital…
JP MORGAN to offer mortgage-backed securities BACKED BY DEFAULTED LOANS
They are ANGRY at rising unemployment
rates and Wall Street bonuses; inflation; lobbyists; the legality of insider
trading for Congressman; and a thousand other inequities that were always
PRESENT, but not until now FELT.
Global competition, easy monetary
policy, government graft, and corporate corruption has destroyed the fabric
of America, resulting in a hollow, indebted shell with surging inflation,
unemployment, and unrest. “The 1%” have commandeered what’s
left of the nation’s resources, and as a result “the 99%”
The next stage of ANGER will be far
less benign than OWS, expanding at a rate equal to growth in the
aforementioned ills. And when it occurs, if you have not PROTECTED
YOURSELF, it will become A LOT more difficult, if not impossible.
On a lighter note, how apropos that
Triumph the Insult Comic Dog attended OWS last week!
Triumph The Insult
Comic @ Occupy Wall Street