Don’t allow your wealth to be STOLEN from YOU!!!!
Consumers are 70% of the USA buying economy and bonds are 70 times the size of stock markets. Both reside on the doorstep of fiscal hell. What happens next?
Our beloved Federal Reserve Chairman is probably not sleeping too well these days. Benny (Chopper Ben) Bernanke and Treasury Secretary Hank Paulson managed a Houdini escape from Credit Crises Round One by papering over a host of financial disasters with New York’s Big Boy Banks. Problem is the resolution has only begun and they know it. The tip of this iceberg was managed but 90% of it still lurks beneath credit waters in back rooms all over Manhattan. Our fiscal generals are in it up to their necks, desperately, frantically working to contain the uncontainable. They are toast and they know it. It’s only a matter of time as Lehman Brothers, as well as others, could be the next Bear Stearns.
Political Stupidity Reigns Supreme
Congress, our political purveyors of idiocy in Washington, escalates ill-conceived storms of fallacious reasoning blaming everyone but themselves. They’ve been attacking big oil when their own gang prevents most energy drilling around our nation giving us a chance to alleviate shortages. They prevent construction of new refineries forcing gasoline distributors to purchase nearly 40% of America’s gasoline from foreigners fully refined. They’ve paid rich American farmers not to grow and now our food system is in one hell of a fix. They mandated 1`/3rd of the corn crop be used for ethanol and now food prices go ballistic. Next, they plan to attack commodities traders who for over 100 years have provided a workable, fair trading system of price discovery helping all of those markets enjoy balance and order. It just goes on and on.
The bankers and mortgage industry used Alan Greenspan’s Prop The Markets free derivative money to make deals wrecking our financial system. Specious lending has spread to most primary loan sectors of autos, credit cards, home improvement, vacations, and education. Involved parties in these sectors and markets were swept-up in this remarkable, greedy stupidity. It’s spreading all over Asia and Europe as well as some South American countries as New York sold them garbage paper rated AAA.
Consumers are failing on all fronts and they were the engine pulling America. Bond markets after years of declining momentum since 1987 are knocking on the doors of destruction. Benny and Hank and their buddies are sitting on the cusp of Out of Control. Rate cutting bullets have vanished so the next step is this…Mr. Market takes over and forces interest rates higher ignoring our fiscal managers. The bond traders are always 90-120 days ahead of everyone else. Bonds are the supreme predictor of markets and they tell us Big Ugly lies ahead.
The Federal Reserve, United States Treasury, and the central bankers of the world cannot reconstruct our Humpty-Dumpty of monetary reason and order. It’s too late. Humpty is smashed and no one can pick-up the pieces. Next comes the Mother of all write-downs. Those reported lost billions will turn into trillions then, become uncountable. This is a stunning replica; a combination of all historical manias rolled into one times ten. The 1930’s was play school compared to coming events. We shall soon witness the largest fiscal wreckage in history. Call THE SUPERIOR GOLD GROUP today at 888-969-6465 and get your portfolio insurance started today Building Wealth you can touch with PEOPLE you can Trust. They will send you a guide for strategic building of precious metals in your portfolio now.
What’s the bottom line? First, we get stagflation (today’s experience), then hyperinflation induced by dollar printing-dilution; next a global system meltdown crash, followed by a depression and then World War III. Not a pretty picture but the world has been through this scenario before and survived. Let’s pray we can endure it all this time. No lessons were learned here by allegedly the finest minds in the world. Instead we got idiot savants and mentally challenged political pygmies not up to the task to be doing what’s right. God help us.
Analysts were recently chortling the dollar is in recovery. We say the dollar sinks to 46.60 within the next 2-3 years. When 70.00 support is broken, really big trouble begins.
There are no signs of recovery in this chart as far as we can see. The dollar continues to fail, falling below one support after another. Large over-printing and dollar dilution guarantees thedollar sinks into oblivion after hyperinflation. This is the only course available to delay notdeny the inevitable outcome. Chopper Ben’s latest speech on his strong dollar was jawboning pure and simple as the herd is getting restless and beginning to catch-onto fictional stats and reports from the Departments of Labor and Commerce. The lying cannot continue forever.
As Long bonds compress in a tighter trading channel forming a new continuation triangle, they prepare to drop lower and skid to our forecast of 80.00 on this index. This is a monumental trade for shorting the bonds and buying companion long trades in gold and silver positions.
The first crack in the long bond armor appeared last week when yields reversed in a modest rise as the bond prices fell through 115.00. A mild recovery followed back to 115.00 where price attempted to cling and hang-on. Its not working and one of the very large trades of the year, shorting bonds, is underway. Price peaked in 1986 and fell down after the 1987 stock market crash. Then the bonds traveled up for over 20 years as the momentum, (lower box) continued to sink lower in a massive divergence. This caught a lot of people by surprise, (the momentum) as it was so very gradual. This market (credit) is going to take down the stock market and destroy our political manipulators’ careers as well as the global system.The 1930’s was play school compared to coming events. We shall soon witness the largest fiscal wreckage in history. Call THE SUPERIOR GOLD GROUP today at 888-969-6465 and get your portfolio insurance started today Building Wealth you can touch with PEOPLE you can Trust. They will send you a guide for strategic building of precious metals in your portfolio now.
Spring Selling Cycle Delayed But Arrived
Watch for new rallies in most all commodities markets in late August. We should see channelized mini-rallies in gold and silver this summer. The bloom is off the rose and the off-schedule, nasty “Sell-in-May-And-Go-Away” arrived. We forecast a mild haircut in most stock shares including precious metals. The only action to prevent the selling is our stunningly time-worthy Plunge Protection Team who has failed twice in April to prop the shares. Will they win during the next June-July push-‘em-up event? Soon we’ll know. In our newsletter, Trader Tracks, we provide weekly guidance and extra e-mail alerts to report our best new trades and offer suggestions for trade management.
Whatever you do, make a concerted effort to stay with the trend and hang onto your core holdings of preferred shares, cash, and coins. Physical gold should never be sold or, traded but rather accumulated steadily on a monthly savings plan and squirreled away. Big traders are always ready to buy on the dips and normally never sell their gold and silver. You would be amazed how quickly your physical gold and silver will accumulate using this strategy. -Traderrog
Roger Wiegand
Editor Trader Tracks Newsletter
& The Rog Blog at webeatthestreet.com
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