You Can't Quit Now

Too late Ben. You went down this road as predicted three years ago and now you are in the NO TURN LANE with the Semi bearing down on you. Maybe this works for awhile but the ultimate collision of the immoveable object approaches with every passing day. Can you change the equation of E=MC2? Can you make 2+2=5? These are forces that are law. These are laws of nature. Your wife runs up 200K on ten credit cards on you family income of 50K/yr. You have a problem. Presto….problem solved you find another credit card for 20K and you are good to go. You’re still driving the 5 Series BMW and still living in the 400K full mortgaged house now worth 250K (provided you can even get an offer). You’ve kicked the can for another few months and all is good. Unfortunately you will only be in debt an additional 20K in a few months and you will be trying to find another credit card. Its fairly simple. You keep buying those scratch cards everyday for two months hoping to hit that jackpot. Unfortunately this is analagous to what is happening with our current world financial system. Burdened by debt that can never be paid back without a catastrophic default of most of the developed world, plunging us into the abyss of deflation and ruinous GDP collapse. It’s simple math its the law of nature and it will be obeyed. It will not be denied, but it will be fought, and it will be stretched to the maximum by the Bernank. HE is the operative for the true power that is navigating this treacherous predicament.

This has been decades in development. Can we escape without some catastrophic conflagration that reduces continents to rubble? Of course we can. Unfortunately the risk of such a Supercycle event does rise astronomically with extreme imbalances. That is one of the tight ropes that the Bernank is trying to walk. The corporate/banker elite are trying to maintain power and control over entire continents while the land the deflationary 747 on an aircraft carrier without a complete crash. Every trick in the book is being implemented including trying to cheat at math. That is why transparency is being tossed out the window. The irony of it all is that trust is essential to healing this crisis. I have mentioned the restoration of CONfidence to make the system work again. CONfidence in our leaders and institutions to do the “right thing” for the good and benefit of the MOST people. Unfortunately the first casualty of the course they embarked on was the TRUTH. Once the informed segment of the masses saw this the grift was in jeopardy as word was spread through different mediums that never existed during the last Great Depression.

Its been an interesting journey to date and my guess is we are still in the very early stages of the ultimate end game. We probably haven’t even seen the phoenix that will hopefully rise out of the ashes. Its the ashes part that I worry about but time will tell whether they are figurative ashes or not.

Greek default will be disastrous for the bankers make no mistake and it will be fought to the end. The $XEU touched 144 we could start seeing some interesting Euro moves over the next few weeks. Wait till they realize the implications of a structured default in SPAIN or ITALY ….oooooboy. RISK TRADE ON!……hehehee yeh right. QE on that is for sure…….but when….that is the question. I still like the miners this year. And I still think we are going to get a chance to play another pump of equities. Let’s see what Ben can do. gl

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