CARRY TRADE OVER??? update OIL SPILL!!!!

Is the yen carry trade over??? I doubt it. If you had any major concerns that a collapse in this liquidity game was going to unwind then the G7 intervention should show you the True Power has no intention of letting this go down without a fight. Make no mistake the culprit in this was the dollar. Ben’s commitment to maintain the global liquidity flow has…is…and WILL be maintained. If you wish to apply rational metrics to calculate the the limits of this policy then I suggest you move your decimal points further to the right. If you are mathematically inclined then you may find that Ben has exceeded already three key quantitative limits on debt structure. Without boring you with these algorithms, it suffices to say that he is well aware of this. What it implies to the investor is that it is a tell. It means that there is now no point of return. Ben is “all in”. But then we knew that. Maybe some of us held out hope that somehow the grand Keneysian experiment would somehow work and that the “turnaround” in CONfidence that has been discussed would get the velocity of money component moving again. Well it has moved but only imperceptibly.

What is moving as predicted is the costs of essentials as liquidity flows into these as a “side benefit” of the carry trade liquidity. Borrowing money in Yen and now increasingly in Dollars at virtually Zero looks for return in fixed income. But the currency must remain stable. The carry trade is becoming an increasingly dangerous game to play as fluctuations in the carry currencies becomes terror inducing if you get caught on the wrong side of the currency move. Some of these players are leveraged massively and moves like Friday in the dollar/yen create turmoil just as the move prior to Friday created fear. So for Ben to keep this high wire act going indefinitely with dollar as a central component of stability and value is an illusion that is becoming more and more difficult.

OK now finally to the point……This IS THE PROBLEM….the value behind the dollar is an illusion. THAT is why the PTB MUST contain gold and silver prices. I did not say they will. But I am saying that the headline prices of gold and silver reflect on the dollar’s value and that is ALL about CONFIDENCE. They have always known this and will continue to monitor the HEADLINES…..which are the STOCK MARKET PRICES and GOLD and SILVER and OIL. Just look on your CNBS screens daily.

Once again the limits of the PONZI are not the prices of silver and gold or the stock market……..its the prices of ESSENTIALS….as essentials impact the consumer then all of the CNBS/Ponzi metrics of “CORE INFLATION” beome absurd as they are already. People will begin laughing when the “numbers” are announced. Commentators like Santelli already know everything I am writing about.

The current middle east turmoil has everything to do with the above and this contagion will continue to spread into other areas as this unwinds…..hold your PMs and if you think they are in a bubble……well then I will end with…..”you ain’t seen nuttin yet”.

Speaking of moral ambiguity……sometimes the bad guy is the good guy and the shades of gray get very gray….

but my favorite western morality figure…

update I ooooooooooooooooooNOOOOOOOOOOOOOO…if true WE ARE FOCHED

http://www.businessinsider.com/matterhorn-seastar-oil-spill-2011-3

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