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Europe
Stops Spending And Moves Toward Saving.
Most
of the world has stopped spending. The USA continues to accelerate with
futile pump priming. Result: As the American dollar weakens on over-printing,
what does this do to those installing new and severe austerity reforms in
Europe and other nations? This is not going to end well at all. Could QE2 smash
the system in 2011? Maybe.
Our
pathetic Washington administration including most members of congress and the
White House have badly failed the American people. The international
spillover from their mistakes now threatens to implode the entire
world’s economic system of currencies and trade. The US Dollar is going
weaker while inflation ramps up.
We are
not saying other countries or the GOP have clean hands either, but the root
of this mess emanates from the American Capitol and New York global banks.
The IMF, World Bank, United Nations, most central bankers and their One-Worlder buddies
are playing the same tune in concert. Now that currency and trade disruptions
popped-up, we envision a race to the bottom a la Smoot-Hawley Tariffs, price
controls and higher taxes.
Our
top advisor has named most of these people psychopaths for their
permanently disabled minds. They have a serious personality disorder,
“Especially one
manifested in aggressively antisocial behavior.” He
suggests these people are particularly drawn to positions of power as they
exhibit as the dictionary says, “Any
severe mental disorder, with or without organic damage, characterized by a
deterioration of normal functioning, and intellectual and social functioning by
a complete withdrawal from reality.”
For
New Results And A Better Outcome We Suggest They Stop Digging.
 Here
we see a derelict steam shovel in Alaska; major components visible include
boiler, water tank, winch, main engine, boom, dipper stick, crowd engine,
wheels and bucket.
This
resembles the derelict, congressional political machine. Worn out, busted and
broke, these politcal gangsters need a trip to dad’s woodshed or the
psychiatrist’s couch. Their American
Charter is supposed to be Defend
the Nation and Operate The US Treasury. All the rest is just
noise and waste. They have failed on all counts and its getting much
worse. Are you sleeping well these days trusting America to Nutcases?
Expect
More Expensive Social Programs With No Way To Pay For Them.
FDR’s
Social Programs Birthed USA’s Decades’ Long Welfare Wasting
Messes. While we
disagree with most of FDR’s 1930’s policies, the WPA and PWA
employed hundreds of thousands of jobless men who worked, did not
steal to live, and sent money home to feedfamilies. If FDR did one good thing
in his administration, this was probably it.
Public
Works Administration (PWA) project plaque, using the name Federal Emergency
Administration of Public Works, on a city hall in Minnesota.
“The
Public Works Administration (PWA) was a New Deal agency in the United States headed by Secretary of
the Interior, Harold L. Ickes. It was created
by the National Industrial
Recovery Act in June, 1933 in response to the Great
Depression. It concentrated on the construction of
large-scale public works such as dams and
bridges, with the goal of providing employment, stabilizing purchasing power, and
contributing to a revival of American industry. Most of the spending came in
two waves in 1933-35, and again in 1938. The PWA was closed in 1939.”
“The
PWA spent over $6 billion, and, its defenders claim, helped to push industry
back toward pre-Depression levels. It lowered unemployment and created an
infrastructure that generated local pride in the 1930s that remains vital
seven decades later. It was much less controversial than its rival agency the
Works Progress Administration
(WPA), which focused on hiring the unemployed.” -Wikopedia
Latest
Developments Expose Acceleration Toward A Monster Crash.
We got
the word this week the President is withdrawing from managing America as he
is clueless to do anything positive within the framework of his congressional
mandate of Health Care, Cap Trade, TARP, and let’s pretend job
creation. Most of his time is spent, we are told, watching football on ESPN,
playing golf, and re-appointing advisors through the White House Revolving Door.
The WSJ today, said, “Democratic Funding Fades.”
His
latest response is to go politicking with Joe
“The
Sheriff” Biden. What a lovely pair those two make. Both are
screaming at their political enemies, flaying at the world for their own
disastrous failures, while blaming others for their personal ineptness.
Meanwhile, our beloved nation dangles in the wind with no leadership.
The
political trash has left Washington with no budget in place to go off and
chase votes. The fiscal health of America lies in smoking wreckage as these
village idiots are busy trying to elect each other for “All fine things they have
accomplished.”
They
are basically ignoring the War
on Terror just as it get worse,
and provide little or no support to our troops.
They
are leaving the Mexican-USA border wide open to illegal immigrants as Hugo
Chavez imports criminals from Syria. Ol’ Hugo is running one transport
a week into Mexico from Syria via Caracas and providing them guns.
Their
lackeys, minions and destructive partners in political crime have mostly
jumped ship. Those boys and girls know a Titanic
Political Machine when they see one. Further, methinks they would
rather not be in the gun sights of the next Attorney General’s office.
Expect more vermin to go over the side before the SS Obama sinks for good.
With some good luck and the GOP winning the House, we’ll get two years
of blissful gridlock. No damage done if they are unable to pass any more
socialistic rules and money grabs.
The
Presidents new economic team is at odds with our beloved leader trying to
persuade him to do the right things, to no avail. Watch for more Obama
administration newbies to dive over the side and run for cover. Frick and Frack, our
dynamic economic duo team of Timmy and Benny are busy printing counterfeit
currency and bonds (counterfeit to the extent there is no real asset
backing). Frick is busy antagonizing the Chinese to raise their
currency’s value and ruin their economy; while pleading with them to
buy more toxic USA paper. If that isn’t psycho what is? Is the new
QE2 $500B or $1 Trillion? No matter we know the ugly ending.
Mrs.
Merkle in Germany is putting that nation on an austerity diet plan and this
does not fit with BO’s social give-away schemes so Frick is wailing
about that one too. Most of Europe cannot believe what is coming out of
Washington and are taking serious steps to back-away from USA power and its
interests. Notice moves in Japan to protect them selves economically and
arrange for their defense against North Korea and other regional thugs.
What
do the world’s leaders think of all this? They now view the USA as
moving toward the third world. Further, it provides our worst enemies and of
course some friends, with an astounding chance to enhance the crisis and take
full advantage as Mr. Rham Emanuel (now departed) offers. We can just see Mr.
Putin licking his chops and laughing at the “Kid” in the White
House who’s pretending to be a world leader.
Meanwhile,
in the Middle East, Iran continues to make nuclear bombs, Israel is tossed
under the bus, Iraq returns to its old ways and Afghanistan-Pakistan goes
rogue and scary. BO, of course not being interested in conflict and unable to
grasp foreign policy fundamentals, runs to a game he knows best; “Community Disorganization.”
There
is a major process disconnect as foreign nations speed ahead to (A) Defend
their nations against foreign intervention from trade or violence; (B)
Off-load as much American paper as possible for the inevitable day of
reckoning when USA bonds dive down the bowl; (C) Gather-up hard goods and
assets to defeat major losses incurred in stock and bond markets, and from
other kinds of credit obligations and exchanges.
The
first major rule is do not be in a position where others can come after you
for debts or call in old favors when the barnyard matter hits the fiscal
oscillator. People are free with zero debts and when able to
function without government.
Banks
and corporations are stockpiling cash by selling stock and bonds. They are
not hiring employees but instead giving them the pink slip. Cash is king in a
depression and it’s survival of the fittest. Many might pass away
unable to grasp reality.
Banks
are not lending out the TARP money as they were told to do. They took the
billions and converted them into US Treasury Bonds to earn a small net gain,
obviate risk and to hell with their depositors. This takes them down when
the bond market fails, as its most of their bank capitalization. Paybacks and
insolvency can be lethal.
Fannie
and Freddie have an open check book to scoop-up all the toxic mortgages from
any kind of lender. This mandate lasts three years and then they file
bankruptcy. Presto! Bad loans are gone and lots of homeowners are free and
clear. In our view, there are several more shoes to fall in the real estate
debacle; some are felonies.
BO
stopped the offshore drilling after the large Gulf Spill. This immediately
killed 40,000 USA high paying jobs. Further, the Captains on those big drill
rigs were ordered out of the Gulf. They are moving to the Middle East, South
America, and Asia where they enjoy higher day rig rates and no flack from
flacks like BO. Now the energy reserves of America are further reduced as new
wells-fields are not drilled. Energy inflation is not funny.
Media
stars and analysts are busy promoting “The
All is Well” theme for shares, credit, Europe, energy and a
variety of other important topics. We know media is “In the Tank” for
Washington, New York banks and traders. They must be or, the negative news
would overwhelm.
One
key point as to when you can trade or think the
opposite is when an important public figure, congressman or woman, or
person leading some lofty commission comes out in a special video, or
statement, specifically reporting on something; when the topic is not in
the news or really needs to be discussed at all.
One
example would be Warren Buffet’s recent written-read report of several
minutes touting the stock market. Mr. Buffet does not ordinarily do this so
the remarks would be suspect at best. We think this report, for example,
means exactly the opposite. His company, Berkshire-Hathaway has many billions
at stake. Further, during the Lehman event they incurred huge multi-billion
losses. We suggest Warren made the unusual presentation to calm the stock
market Sheeple. From our view, we are now more concerned than ever. This is
way out of character for Mr. Buffet.
Shakespeare
once proclaimed, “Thou
protesteth too much” or something to that effect. This is a
strong signal to go opposite his statements and the trade. Chopper Ben is
really good at this stuff. Timmy the G is not very good at all. You can
see Tim drop his head and talk to the floor when he fibs, which is often. In
China, Timmy is viewed as a naïve child to be manipulated. You often see
Chinese foreign leaders smiling when Timmy is around. Does the Chinese
Central Party give a rip what our leaders ask them to do?
Our
favorite gold and silver shares index is the GDX. Note the breakout
over 55.
While
traders and observers are expecting the precious metals shares to split from
mainstream market trading action, we think it’s too soon to expect
this. Rather, this type of trading move is quite gradual leading
up to a larger breakaway when the general stock markets sink into a collapse.
Watch
for and expect a nearby softer correction in shares and most other markets
for the balance of October. After the voting and the next FOMC meeting on
November 3, (nice choice of date?) look for a stock market rally in most all
shares including those in gold and silver.
The
next fall rally in gold and silver should commence after November 3 and show
some tiny moves up just before that date. From the signals we see, this rally
could be absolutely outstanding. Try your best to own physical gold and
silver and trade the shares of the related companies. The next larger-faster
phase of commodities trading can continue for another 7 years based upon
previous history.
Now, more
than ever, it is important to take the immediate necessary precautions to
protect yourself and your families and friends. Traders and investors should
be buying precious metals and select
shares right now. In our newsletter we have a great list of
trading and investing ideas for you. Meanwhile, you can never go wrong buying
physical precious metals and holding them for security. We’ve had a
constant run of nearly ten years in gold rising 15% per year so this remains
a good trade. In the last twelve months, gold rallied over 34% and is going
ever faster.
It’s
not going to stop any time soon. In fact, we predict those annual percentages
will rise even more and this offers a chance, arriving only once in 25 years
on the historical cycles.
Roger Wiegand
www.webeatthestreet.com
Roger
Wiegand is Editor of Trader
Tracks Newsletter and of
the Rog Blog at www.webeatthestreet.com.
Roger provides recommendations for short and longer term trading using
stocks, futures and commodities with specifics.
Contact Claudio Bassi, at Trader
Track’s New York City publishing offices for a trial subscription. Call 718-457-1426 Monday
through Friday,
9:30am to 5pm or, e-mail cbassi@miningstocks.com
Recommendations
made in “Trader Tracks” are exclusively those of Roger Wiegand
and the publication is also exclusively the editorial content provided by
Roger Wiegand. TAYLOR HARD MONEY ADVISORS, INC. (THMA) LOCATED AT 33-42
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be construed as advice to meet the needs of any particular reader or
subscriber. Opinions expressed in Trader Tracks are statements of judgment
expressed at the date and time they were written, and as such, are subject to
change without notice. Roger Wiegand is not a CFA nor an investment advisor,
but a private individual who studies the markets extensively and offers
summary opinions. Before any type of investment is made, you should always
seek advice from your attorney, CPA, registered broker, or financial advisor.
There is considerable risk in market speculation and investing. There are no
guarantees regarding performance and past performance provides no guarantee
of future performance. Your trading accounts are always subject to the
potential for severe or total losses. This service will involve SPECIAL
EMAIL ALERT TRADING RECOMMENDATIONS PROVIDED AT ANY TIME Roger Wiegand
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AS SUCH, THIS SERVICE WILL BE CONSIDERED A PREMIUM SERVICE. The
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constitutes an offer to buy or sell the securities mentioned herein. Trading
futures contracts may not be suitable for all investors. You may lose a
substantial amount of money in a very short period of time. The amount you
may lose is potentially unlimited and can exceed the amount you originally
deposit with your broker. This is because trading futures is highly
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position in assets having a much greater value. If you are uncomfortable with
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