Even a modest bear market will go a long way towards destroying the deep state. Deep State operatives are buying outright to control the trend of the market. What is their alternative?
The choice is to invest more outright or have ones wealth completely devastated by natural market forces. The Deep State has absolutely nothing to loose by using their own resources to support the value they already have. The only alternative is to absorb a guaranteed loss and run the risk of ceasing to exist. Continue reading →
There are three socialist armies currently vying for power. These are:
1.Non-Democratic Socialists Non-democratic socialism is my term. You won’t find it anywhere else. I use it because fascism is seldom used to describe an economic system even though that is what it is. Like the other two, non-democratic socialism is a system of economics by force. Continue reading →
First understand these things. Quantitative easing is a political agenda not an economic remedy. Economic forecasts coming out of the Federal Reserve have been wrong 100% of the time. Greek debt exceeds the assets of the Greek banking system. Friends of the Fed trade risk free as a reward to assisting the Federal Reserve in the execution of its political agenda.
When there is an issue overhanging the market, central banks buy with both hands for the purpose of providing confidence to investors who still believe the financial markets are largely pristine. The worst time to short stocks, therefore is on a day or days when a global financial problem is in the process of running its course. As long as Greek insolvency is in the news, do not expect the market to drop.
Prior to the resolution of something like Greek insolvency, negativity is encouraged up until a particular day. This is to draw in shorts so that their stops can be run, driving prices suddenly higher. Short positions serve as demand for stocks on a day when bad news comes out.
After a strong opening, the averages are held in a consolidation pattern giving the impression that demand will soon give way to supply. All during the consolidation short sellers take positions waiting for the inevitable decline. Instead they get their stops run again and the market moves higher with a nice white candle.
Strangely, bears still haven’t adapted. They still use traditional technical analysis which only works in a market that is largely free from manipulation. This will change but it hasn’t changed yet. Usually the only cure for stupidity is suffering. Apparently bears have not suffered enough.
When will the market crash? Quantitative easing provides profits to those with the political power to control government. That is what Fascism is and it will eventually destroy even those who are reaping its early but temporary benefits. Misery starts at the bottom rung of the ladder and then starts moving up until the ladder just collapses. That could happen any day but on any given day, chances are that it won’t.
Never short. Just take positions in bear etfs on the S&P, Nasdaq and the Russell 2000. For now do not trade on margin and only use one third of your capital for etf positions. Odds still favor the Fed’s political initiative. Having cash is a priority. The best time to buy a bear etf is on a completely sponsored day such as what occurred on Monday. The market is being manipulated and this initiative will not be discontinued. It will end when it stops working. Then the market will crash.
Sweet Suzie’s Kool Aid, a timely tune by Curbside Jimmy
Government in the U.S. explained according to the Pollyanna middle school model, is a democracy. Government for the people, by the people is how our system of government was defined.
The belief system of every American rests on a pile of euphemisms so as to make existence palatable. On an intellectual level people profess all of the attributes that make them wonderful and in control. On a deeper instinctive level people ascribe supernatural powers to government.
Government is seen as having the means to create jobs and cause economic growth. It can’t, but people are haplessly prone to expect it to.
Government does what government has done for over 50,000 years. It uses ordinary people as tools for helping leaders accomplish their own personal goals. Since Americans feel euphemistically special within themselves and worship leaders instead of guide them, that task is easy.
This mentality goes a long way towards creating the crisis period the United States is now entering. Government initiatives such as deficit spending and QE’s, fail at their intended objective of causing growth while automatically allocating resources in the least efficient way. This guarantees an eventual depression.
Popular expectations may be that with crisis people will wake up and do things right. Don’t anticipate that happening. When threatened, animals move to the center of the herd for protection. Human beings define themselves as being autonomous and independent. They profess courage and repeat patriotic mantras but it is all noise. When the crisis intensifies, citizens will demand more government, and not less. They will be overwhelmed by their herd instinct and try to barter freedom for comfort. Of course Americans deny being herd animals, but they are. Expect herd behavior and you will never be wrong.
By popular definition a president, senator, or representative is a public spirited person, drawn to public service out of goodness and a sense of duty. By popular definition a constituent is an independent minded individual trying to do what is right in a democratic society.
Both definitions are wrong in terms of what actually happens in the United State’s political and economic spheres. Leaders emerge out of a small group of born predator elitists who view the world in the terms of their own interests, and feign public service. The predator elitists become national leaders. They are personable and charismatic. They have an unquenchable thirst for power and use any position they acquire to further their personal ambitions. To do this, they have to convince voters that they are devoid of self interests. Every predator elitist does not go into public life. Some go into business and figure out how to use government to rig the market they operate in.
Constituents are in fact not independent minded. All but a few make group decisions and interact with government as if government were a parent. This is all while professing to be just the opposite of what they are. Constituents want to be taken care of. They see they treat their elected leaders as caretakers. Professed conservatives look to government to rig economics and business in their favor. Liberals look to government to create social justice and to provide for them economically,
This is not a new situation. This is the order which has existed for all of recorded history. It is a natural human tendency for the general population to make themselves available to be exploited. It is also natural for leaders to take the population up on their offer and exploit them endlessly.
Sometimes predator elitists overdo it. The quest for power causes those in charge to milk the population for more than it is worth. A revolution takes place. New leaders take over and the process starts all over again.
In the United States today, we are in the early stages or a breakdown in the economical and political orders.
When income distribution becomes lopsided such as it is in the United States today, a depression is highly likely. A lopsided income distribution is a classic sign of instability and precedes most serious economic downturns. Morality is not directly a part of the picture. The problem is mathematical in nature. High end spending is more discretionary than low end spending and is reduced rapidly at the first sign of an economic downturn.
When will the depression end? Very simply, when reasoning on economic matters begins correcting. If no change in reasoning occurs, the economy and the political system will fall apart. There is a very real chance that will happen.
When will the depression end? Very simply, when reasoning on economic matters begins correcting. This could take years. If no change in reasoning occurs, the economy and the political system will fall apart. There is a very real chance that will happen.
Lonestar Card Lonestar Card is a song I wrote and recorded as Curbside Jimmy a number of years back with the Curbside Jug Band. If you listen very carefully to the bass, you will discover that it is a Jug. The jug was played by the late Gator Ron Ramey, who was the probably best jug player who ever lived. The the jug is prominent at the very end of the song. Lonestar Card celebrates the welfare system in Texas of which so many Texans are very proud.
With the stock market collapsing more today, this is a great day for me with respect to my investments. As I have written previously, I have been aggressively taking out short positions for over a year in anticipating a severe economic depression. I am absolutely sure all financial assets are going to plummet. While my investing approach may seem extreme, I feel completely safe with it. I am already ahead almost 50% for the year.
So, where do I get my confidence? I know for a fact that human beings do not just behave like herd animals. Human beings actually are herd animals. From birth we are all trained to be members of herds and sub herds. All through school, children are encouraged to establish all sorts of arbitrary loyalties. By the time kids are grown, individual thought is all but extinguished. None of this is done consciously. It is all instinctive behavior. Humans both deny acting on instinct and are unaware they are doing so. Only a handful of others and I have enough awareness to see that society is governed by herd dynamics and not individuals reasoning individually. Am I happy knowing that I am a herd animal? No, but I am not going to let that stand in the way of my making a profit.
Other analysts believe policy decisions are made using reason and intellect. I correctly study human behavior in terms if herd dynamics. For example, I know when the Federal Reserve makes a decision; it is always based on compulsions that are dictated by herd instinct. Lonestar Card Lonestar Card is a song I wrote and recorded as Curbside Jimmy a number of years back with the Curbside Jug Band. If you listen very carefully to the bass, you will discover that it is a Jug. The jug was played by the late Gator Ron Ramey, who was the probably best jug player who ever lived. The the jug is prominent at the very end of the song. Lonestar Card celebrates the welfare system in Texas of which so many Texans are very proud.
My forecasts are not infallible but they are highly dependable. Forecasts made by mainstream economists are more likely to be completely backwards with respect to what actually happens. Usually the higher the I.Q of forecaster; the more inaccurate will be the projection. In economics, raw intelligence dazzles students and impresses politicians and constituents. For making forecasts and coming up with economic policies, high raw intelligence is more of a detrirment than an asset.
My I.Q. is only high enough to allow me to do basic things that a minor league academic needs to do. An economist like Federal Reserve Chairman Ben Bernanke surely has an I.Q. somewhere in the high genius area. Yet, I am consistently right and he is consistently wrong. What accounts for the difference in results?
For a human being my level of awareness is extremely high and for explaining economic issues and making forecasts this gives me an unfair advantage over my much smarter counterparts. Awareness is a gift nature seems to gives to various creatures and this enables them to figure out what the truly brilliant among the earth’s inhabitants are going to do next.
Do you have a dog? Dogs have a much higher level of awareness than their masters. Your dog has what seems like an uncanny knowledge of what you are about to do next. The dog studies your every movement. Children are highly adept at gaming their parent’s moods and behaviors. Kids reason, “Dad is in a good mood, I’ll ask for some money.” Children lose their awareness when they get older. Awareness is a survival tool. Really smart people don’t need it so they either lose it or don’t have it.
Academic economists make poor forecasts because they do not consider any criteria that make a difference. In their minds one number causes another but numbers cause nothing at all. Human behavior is what causes numbers to change, so a good forecast is focused on human behavior and changes in incentives.
Keynesian theory is based on the notion that one number causes another. All fiscal and monetary theory is quite complex and out of reach for ordinary people. It is also completely useless for anything other than tracking what is going on with numbers.
When fiscal and monetary theories are used to formulate government policy any decision is a political decision and constitutes central economic planning. Resources are inevitabily allocated inefficiently. When government guides economic activity over a long period of time the result is an economic depression. Over time resources become so inefficiently allocated that the economy can no longer grow.
This is all one needs to know in order to conclude the world economy is about to collapse. The magnitude of the calamity will be much greater than can easily be fathomed at this point. All of the major economies around the globe have been severely handicapped by central economic planning. Economies cannot perform well enough to generate enough tax revenue to cover their debts. Every country in the world is facing a crisis at the same time.
For the most part the unsuspecting public has an unshakable faith in experts and government solutions. The writing is on the wall here. No asset class is safe to invest in. I am even reluctant to keep money in the bank. The time period we are entering is going to be nothing but every man for himself. The best I can come up with is is to compile a portfolio of short positions in stocks. This is the opposite of holding assets. I will benefit when assets lose value. So far, I am up 35% for the year.
The K.C. Moan A fine traditional tune from the depression era.
Let me remind you today that you are not free. You have no representation in congress. Laws are constantly being passed over your objections. Laws are constantly being passed without the consent of the governed.
You think you can remove members of congress by voting against them. That will work as long as you don’t try to remove most of them all at once and assuming there is not a big crisis going on at the time.
Suppose election 2012 is held during an unimaginable financial crisis and I believe it will be.
You will vote perhaps 80% of your representatives out of office but they won’t leave. But the constitution protects against such things, you say. It is a common practice to disregard the constitution during a time of crisis.
Student Loan Moan
I can’t stand it. I mean when college students can’t get jobs because their degrees have no market value. Watch this video. You’ll love it.
Even a modest bear market will go a long way towards destroying the deep state. Deep State operatives are buying outright to control the trend of the market. What is their alternative?
There are three socialist armies currently vying for power. These are:
