Posts Tagged ‘FED’
Well, as is quite common the past few weeks, the market goes up and down but in the end (based on a weekly basis) it changes very little, this week is no different. It is true that it is the summer and usually summers are not known for large market movements, one way or another. But it is also true that the market does not seem to have a reason to go up substantially and a good reason to go down to reflect reality.
The US economy is growing (if one can believe the official reporting) at an anemic rate. Unemployment is high and unlike the past, many of these jobs will not be coming back since the US shipped most of its manufacturing (the place for a large number of jobs) overseas. With no jobs, consumption is being reduced to essentials. The private, for profit Cartel (Fed) is speaking tough about what they can do, but all they can do is buy more US Treasury notes and bonds (for which they get paid interest of course from the American tax payer) and then CREATE OUT OF THIN AIR dollars by lending them to government, banks and Wall Street of course. So the moment the OUT OF THIN AIR created dollars are put into the system via the loans, they become REAL! So what is really the risk for the Cartel? NOTHING! They created the loans out of NOTHING! ALL the risk is now in the hands of the borrower(s)! WHAT A SCAM! In other words, the CARTEL “actions” are nothing more than indebting deeper and deeper the American people, via their “Elected Representatives’” (either party) and Government (either party) by increasing the debt(s) and deficit(s).
Ok, here is the $64,000 question, especially to all the noise makers, hot air big mouth geniuses out there; how are you planning to pay for all this, assuming of course that you will keep this Cartel’s scam in place?
Anyway, with this kind of picture, the way I see it, the much higher risk and probability is for the market to go DOWN!, and hence why I suggested Friday to buy the put on the DIA, the Dow Jones Industrial Average ETF. By the way, the market being cut by 30 – 50% in the next 1 – 6 months will not surprise me. Naturally, if I am wrong (which is always a good possibility), the cost of the insurance (the DIA put) will be simply that: A cost for protection, which is why we kept it relatively cheap. However, if I am right, the put will go up substantially in value; we have over a year for this put to protect us, even if only partially.
As I mentioned during the last couple of weeks, other publications are finally waking up to this scam between Washington, the Cartel and its minions and Wall Street (once again, I realize that it is all Obama’s fault, but where were they before Obama when all this mess developed and eventually exploded?).
Here is a link to an article in the Wall Street Journal.
And this is a title to an “infomercial” (to sell the best stock since sliced bread) that really caught my attention:
“The Rise of Financial Terrorism”
Yes, they mean Washington (either party), Wall Street, the Cartel and their minions.
I am really glad that more and more of it is being exposed. Maybe, just maybe, we will see some movement from the American people electing and demanding Washington representatives that actually represent the voters’ interests, not the “Financial Terrorists” and get rid of them if they do not. By the way, are you noticing how the word “Terrorism” or its offshoots are becoming such a wide spread and generic used “TRIGGER” word(s)? I believe that it is the Chinese who have a saying that “It is easier to label (the trigger word) someone (or finger them) than actually debate the issue(s) or facts” (or something like that). I’ll let you think of the many other examples of trigger words (labeling) out there.
FINALLY other “gurus” are starting to wake up to the truth about the Cartel (FED) and what their real goals are. This is despite the fact that Dr. Ron Paul, a congressman, who has for years talked about the Cartels’ true nature. Here is the link to his official site: http://paul.house.gov/ and his UNOFFICIAL site: http://www.ronpaul.com/.
One “guru” even called and compared the Cartel to rats. Once again, where were the gurus when the US economy was systematically destroyed in the prior years to the major recession and stock market crash?