WE'VE OVERCOME THEM update I

Nature threw us a real fastball right at the head and we hit it out of the park. The PIIGS are starting to heat up again and begging for us to put them back on the barbque rack…..and we are still able to party on. Oil..grains…industrial metals …..precious metals all grinding higher and the music plays on. The real effects of monetary policy are definiely being seen. But the real question is can it create the greatest illusion of all …CONFIDENCE….or CONfidence. Yes..this is the ultimate target of the Maestro’s symphony. Can Trillions of fiat pushed through the primary dealer’s reserves through various programs including treasury repurchases and MBS exchanges manage to create an entire new round of liquidity driven animal juices flowing again??? IN AN OCEAN OF ABSOLUTE FOCHIN MALINVESTMENT??? ARE YOU KIDDIN ME???

Pardon my outburst…but no. This will not quite be adequate. You cannot pour trillions in jobs into other countries over the past twenty years and expect that your country is going to rebound without massive restructuring of its investment goals. We are a country whose economic GDP is bases on consumerism. I probably need to repeat that one more time for effect …CONSUMERISM. That means our GDP depends on what we buy ….70% of it is consumer driven….THAT MEANS WE ARE A PARASITIC economy. That means we have shifted into decline.

Now for the punchline/lines…..WE are borrowing 32c for every dollar we spend. THE ONLY reason we can get away with this is that the world’s fiat is crashing all around us and people are finding fewer and fewer places to buy bonds and hide out with their money. This cannot last much longer. This will unwind and when it does the 4Trillion dollar a day carry trade will collapse. THIS is why they are fighting the headline price of gold and silver and will continue to do so. I do not join the crowd that believes that JPM/Fed will completely lose control of the Silver Comex and the entire ponzi will be exposed…..at least in the near term. I do believe they will make this one of the greatest trading opportunies with hard pullbacks to be bought and runups sold…..all the while holding some level of a core.

Speculative plays in the biotechs remain and we follow in the comments.

Energy plays remain solid in SGY NBR ATPG HNR WPRT HERO……gotta have it.

update I…..

http://www.nakedcapitalism.com/2011/03/the-sandbagging-of-elizabeth-warren-and-49-state-attorneys-general.html

Read more at Great Depression 2