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Credit gamesmanship is coming to a
screeching halt all over the world. Mr. Bernanke testified yesterday and
offered nothing to prop the markets. In our view those hearings, that venue,
was not the time nor the place to be discussing rate cuts with a passel of
political fools with an agenda. Mr. Bernanke is not politically stupid and we
can assure you he has a strategic plan to save the immediate world as we know
it. His plan will probably work for the shorter view, but his Achilles
Heel, and he knows it, is a massive loss of confidence in the world's
bond markets. Like a broken record, we have been saying this for years as we
watch this pathetic and sad spectacle by central bankers and government
planners to promote and keep their doomed old-timey paradigm in play.
Our forecast says they get away with it
piecing together this mammoth credit mess with chewing gum and bailing wire
one more time. However, by the fall, or sooner if someone out there steps on
a trip wire, or is dive bombed by an unrecognized Black Swan, this crazy
insane game of credit musical chairs comes to an abrupt halt. One of our top
European fund manager friends says it all ends with American consumers when
their plastic spending existence is cut-off. Anyone with half a brain who can
read history books knows what the ending looks like and it is not a pretty
one. We watch daily while shopping as pathetic creatures put tiny purchases
of pop, gum and other junk on plastic in stores. Why? Not because its convenient but because they are broke and their cards
are the last way they can buy anything to get through the day. What happens
when we have an American bank run and ATM's are shut down? What happens if
convenience stores have to operate, at least for a few days on cash only? Our
local gas station had a computer glitch for two days and this happened. It
was cash only for fuel and lots of folks were very upset.
Worse yet, what happens when our current
unannounced inflation rate of 11% turns into 20%? 30% or hyperinflation at
50%? That is when we'll see Marshall Law and government appropriation (call
that theft) of private property to feed the masses and keep a lid on riots.
This is not idle speculation. Watch what is happening in the worst, broken
nations in Europe like Spain, Greece and other places in Southern Europe and
those facing similar troubles in South America. It is not the end of the
world and these messes will eventually end, but who wants to go through this
with your economic hands tied behind your back? Who wants to be at the mercy
of bureaurats who have one goal; and that is take your stuff, your money and hold onto power?
The credit rubber bands were stretched
too far and too thin. Now we are near D-Day, also known as Debt Day when this
pack of fools must face the supreme religeous
experience; that of what shall we do when no one can buy our crummy toxic
bonds? The debt shuffle in Europe is growing exponentially with Spain
pleading on its knees for $40 billion by this weekend. They tried to tell the
immediate world they did not need to borrow and they desperately wanted to
keep the iron hand of the IMF out of their credit life, but they can no
longer hold out. The Big Boy Banks in America, Asia and Europe will not do
business with Spain offering any kind of loans, currency exchange, bonds, or
other marvelous tricky means of inducing a handout for El Toro. The
handwriting is on the wall and it says insolventcy
in foot high letters.
As we reported in Trader Tracks
Newsletter today, Spain's leaders and others in the know have
told us there is not enough money on the face of this earth nor in the
ECB banker's credit paper till to cover the Spanish credit mess. One report
said they need $112 Billion to cover and that was their statement; the truth
is probably more like $300 billion. This not in the least amusing and these dumbos running this central banker circus had better get
busy and very fast, or they will be standing on the corner in tears muttering
to themselves wondering what happend.
Bloomberg analysts this morning were
speculating that we might see a coordinated global bailout effort hit all the
markets at once. We don't think so as this, while seemingly positive in tone,
could have other kinds of market-disrupting implications. Its not nice to fool with Mother Nature, or the
stability of a global credit and trade system wired together with lightening fast computers and village idiots. Further,
how would it be possible to gain approval with so many global players
involved? Germany is readying their plans to dump the Euro and Euroland with a graceful exit taking as little with them
when they go, as far as credit obligations for the broken others. Drudge
News said today Obama could not gain any help from Germany's Mrs. Merkle. Do you really think she cares what he wants, or
thinks? Not a chance.
Rather, we see these banker-people
drib-drabbing on the edges as they have done before offering specious
promises and not much real help in the way of extending credit as they don't
have any left. Further, they have no enthusiasm for lending more under
current conditions. Spain sold a pathetic $2.6 billion in new paper yesterday
at some improbable loan shark rates. But it won't matter anyway as the terms
were certainly just moving credit from one broke pocket to another broke
pocket. Somebody is going to have to step-up RIGHT NOW and help Spain. We say
its the IMF and they will
demand Spain's gold for collateral in return so they can steal it when the
loans fail as they surely will. That gambit should put the lid on this
conflagration for at least another 90 days, or so as they all chortle in
unison that things are fine. Not only are they not fine, but they are indeed
dire. We say the central banker plan is doomed and has been for 25-30 years.
All that's left is to play out the nasty ending.
It is our contention that the 4th
quarter of 2012 and the first quarter of 2013 have the potential to turn into
the worst, imaginable nightmare on Elm Street. Fraudsters in all political
parties are maneuvering to steal the election by hook, or by crook attempting
to scramble and grasp onto global power. Both parties want their hands on the
taxpayers punch bowl because they know this could be their last chance for
implementation of supreme grand theft for many years, or maybe forever. This
is the way psychopaths think and the world's capitols are full of them.
Like the Nasdaq
that was sacrificed on the altar of "Save The Big Markets" in
the year 2000, the little nations and little people of this world will pay
the price first. Ireland, Greece and Iceland were the first in line in Europe
to fall. Next the numbers of credit-dead nations will pile-up like a train
wreck. We liked Iceland's response when they told their creditor Eurobankers to go to hell. Those scammers made a bad
loan, earned some interest and could not be paid back. Too bad for them. They
took the risk and they are supposed adults. The rhyme of Too Big To Fail
will turn into The Hell With You And We Won't Pay because you stripped
us of everything we have left.
Let the central bankers and their scams
write it all off and we can collectively start over. Do you really care if
those banks fail or not? We say let 'em drop and
just follow the rules of law. No more bailouts. Those banksters
sure aren't following the rules now as they continually run to Momma in
Washington pleading for more taxpayer help and bailouts. Toss 'em overboard and let 'em drown.
I say good riddance and we start all over. Problem is the next mess is the
obligatory World War III, which is nothing but a plan to steal Middle Eastern
Oil and make new war-time jobs. This is not our idea of a jobs program, but thats what we get. Please
control risk, use common sense and hunker down for a lengendary
storm. -Traderrog
Roger Wiegand
www.webeatthestreet.com
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