PONZI...MEET GODZILLA update II update EVACUATION

Global Ponzi masters are wrestling with a monster they didn’t expect. Nature as we have stated before has no time table and appears to be putting the Ponzi on notice who is really in charge. This is a reminder that the boom/bust cycles created by the Powers to Be can never truly allow for nature. As some of you already know my predictions of 2012 were just that…predictions. There are other elements out there that I always said could supercede my prognostications and we could very well be there.

As Red mentioned in some comments this is NOT an isolated Japanese problem. We live in a communal economic world. Most of you may already know this but we shifted decades ago to a “new and better” …”just in time” method of inventory control to lessen the inventory driven recessions that we experienced in the 20th century. This now poses an interesting dilemna in a global economy. IF and its still an IF…but if any component in this process becomes unavailable in the manufacturing proces then the manufacturing process must stop. Right now as I type there is the possibility that in Japan…a key manufacturer of MANY components of our Car manufacturing AND airplane industy could have major shutdowns of factories surrounding the radiation leak area. Shutdowns of these plants could be crippling to our just in time manufacturers here in the US.

Of course the human tragedy of this disaster is not even measurable. Its snowing in many areas of Japan as they scramble to obtain food and gasoline now in many areas of Japan. These are the most stoic people I have ever witnessed. I am truly amazed. They are facing human tragedy to the degree that humanity has rarely witnessed and they are doing so without even a complaint. Just amazing.

Right now there are calculations being made on the damage but no one can even possibly get a handle on this damage yet. It is incalculable at this point. Right now we have one thing that is certain in the economic world …FEAR and Panic…never underestimate their power on the human psyche.

Equities should take a pounding today duh…. What will be more interesting is to see how the world liquidity game responds. This is a massive deflatiionary event and you will see the Fed respond with MASSIVE PRINTING. No doubt there will be a short term effort to beat down precious metals. DONT BELIEVE it…. this is to be expected. Ultimately the fear trade goes to gold and not to mention Ben is going to print an insane ammount of money to keep the carry trade going.

Lastly lets hope and pray that the human toll this disaster is not overlooked and that we all try to make our own contributions. Prepare your own house too. Cash food shelter water…..gl be aware this could spiral into a seizing up of world liquidity.

update I….fed announcement was VERY POSITIVE for MORE POMO as far as the eye can see….

update II……evacuation reported of spike in radiation and these fifty just pulled…

http://www.nytimes.com/2011/03/16/world/asia/16workers.html?_r=1

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