In this installment I want to touch on something you can see coming a mile away. Something no one will welcome to their door. Something discussed on the 01/01/2016 Guerrilla Radio Show. Something that after last week’s worst, first week of the year, stock market performance in US history, I can see an unwelcome guest pulling up in everyone’s driveway very soon to stem the "red tide". Who is that attempting to breach your humble home’s routine day? Why it is Mr. Dodd & Mr. Frank stopping by to say hello. The truth to most of the readers here, is that there is very little to challenge their deep thinking minds. This “King Dollar Collapse” event is getting very “long in the tooth”, and losing it’s luster. Steadfast mental attitudes in one’s preparations must be adhered to, because once the western standard of living is at critical mass levels of collapse, littered with “I told you so” opportunities, the doors to valuable life adjustments will be slammed shut! An event whose timing will sneak up on us all, even those that know it is coming, of that you can be sure!
I was having trouble reaching an idea to pull from the Wolf Gray's mental cobwebs, that was truly RM worthy. You guys are just getting too damned smart! But, that changed when I heard an interview by Paul Sandhu with Dr. Jim Willie. Not a change that indicated that you aren't smart anymore, but a change that helped me piece together some rational business thoughts from a single line in this 2 hour interview. To be honest the interview started out with nothing really new, or let’s say new to the astute gang at RM, except for one statement that smacked me in the face. The words Dodd or Frank weren’t mentioned, but a statement was made in the interview that reminded me of just how close we are to dealing with uninvited guests to our US paper bound world. Hello D & F!
I think the “Money Junkies” are about to need a giant FIX! But, first a review of the news headlines, that will lead into the title's subject matter, along with a few news briefs that show how Team RM is ahead of the curve much of the time.
News that Reiterates the Real Evidence Trail:
The following headline from ZeroHedge is great, and typical of the western msm.
Yep that pretty well sums it up, it’s China or Russia or India or Canada or anybody other than the USA that is the cause of the market’s mayhem. Cinch up those red white & blue undies folks msm style.
Sticking with the same theme, check out the line in this link from CNN Money:
From the above link the line below the first subtitle, “DOW dives 400 points” is AMAZING!…………Simply amazing in it's brainwashed message.......
“American factories are hurting from the global economic slowdown triggered by China.”
The next interview, probably seen by most RMer’s by now, with former FED president Richard Fisher on CNBC is still worth a review. Why?
“Why” is right, and “Why Now” is even more note worthy. Extremely curious, as to it’s timing, and motive. But, you didn’t see interviews like this, during an upward trending market supported by great manufacturing productivity. Curious…curious…curious! Me thinks something bad cometh.
You know it is good to be an observer many times, and not a participant. Note the next item already forecasted by Team Roguemoney from ZeroHedge……
The really bad part as regards the news in the above link, is the real ugliness has yet to knock on the door of most of the unsuspecting western citizenry. Again, just more evidence on a trail covered in fiat debt poop that is becoming more & more difficult to step around.
I think we could write a book on the subject highlighted in this next ZeroHedge link…..
Yep ZeroHedge has it right “The Baltic Fried” index. Note further on down I am going to highlight another reference to this index via “The Guerrilla’s” twitter page!
In the next "Economic Collapse blog" link, it occurs to me that the media should consult with the astute crowd at RM first before going to the presses…….
The above is a great article by Michael Snyder, but it indicates to me that one shouldn't tie their collapse predictions to specific dates like, a DOW collapse before the year's end in 2015! It happened a few days late (first week of 2016 somewhat saving the Nostradamus’es among us), but the month ain't over yet, we may have an absurd rally of sorts. Please note though, that will be in spite of incredibly disastrous news in the real economy, not the BLS bullshit economy!
Disinformation at it’s finest, check out the link below….
In the next link, I smell the droppings of a burgeoning fascist economy, reaching full “crap mode”
Makes sense I suppose counting two jobs for one person when said individual needs two jobs to pay the bills. In fact I heard Goober Pyle say the other day, "If that 2 for 1 scenario happens often enough, I suppose we could reach a negative unemployment rate, right?" Boy that would be cool, especially if it could happen at the same time we eventually hit negative interest rates. I smell some fascism again.
In the "no surprises to see here" category, check out this energy headline from Wolf Street (not affiliated with yours truly)…..
Note the oil & gas sector defaults....Why could it be.....That the in vogue thing to do in 2016 might just be......"FILE BANKRUPTCY". All the rest of us need to do is….follow the moronic leaders.
These rear view mirror driving skills demonstrated by the investment pros like RBS, in this next link, have absolutely no business saying anything about anything in the business world. Why? Because they aren’t telling us anything that a person with a slight amount of awareness doesn’t already know. But, it still passes for great financial evidence or advise.
Thanks RBS I don’t think any of us would have ever figured it out without your help! But, I will give you credit for sounding cool with the “Kool Aid” comment (referring to QE & ZIRP of course). That is what we want though, right? To pay Wall street financial wizards for brilliant skills, like this other standard line we keep hearing these days….. “Well the US dollar is strong, because we are the best of a bad lot.” Yeah that says a lot, way to go brainiac. USA…USA…USA…USA
In this next article Charles Hugh Smith gives, at least from my view, a fantastic description of the business playing field, when real price discovery is realized…..
I couldn’t explain it any better than he did that’s for sure. Honest price discovery will help keep money velocity from being driven to a complete stop. Absolutely “spot-on!” This fits in with where this installment is headed in a second.
This highlights that an honest exchange of products with real supply & demand will facilitate productive trade, and therefore by default provide an increase in money velocity to the baseline just prior to the trade! Pumping the money velocity with phony demand, via debt inspired bubbles, will fail in the face of a desire for real price discovery. Bingo! I wish I had thought to have said it that way, well done indeed.
In a round about way that leads me to an article by Dr. Paul Craig Roberts. I know I criticized him a while back, for categorizing the military improperly, but he is still a smart guy, and I think this is a great summary regarding the rule of law in the, now USSA, formerly USA.
If the rule of law is non existent based on sound moral principles, and then you add that, "money makes the world go round". Well then??????? I would guesstimate it is clearly time for some substantive changes.
Next up as promised, and as per “The Guerrilla’s” twitter account, check out this highly interesting overhead map view of the Atlantic.......
Talk about a view of what a slowing money velocity looks like on a grander scale, this is it, a picture perfect example.
Eyes Wide Open & Stay Awake Folks:
How much lower will the market go, before the Dodd Frank worshiping criminals step in to save the day for ya? Maybe we could see a fantastic switch to bond funds in the most mandatory of ways. Jacob Lew style! The money junkies in charge are going to need a fix, and long before they lose everything in your retirement accounts. That is right long before they lose everything, not you lose everything! WG you are not making sense. Yes I am, because they view it as their fiat money stash, and since they make the rules on qualified accounts they can change the rules, Dodd Frank style. Here is a little theoretical evidence.
As a lead into the primary installment subject matter, I found a line in this interview by Paul Sandhu with Dr. Jim Willie that slapped me upside the head. “Wake up WG!” The whole interview is good, but to some degree it is old news, just like I am as well, but Dr. Willie does a good job of laying out more profound evidence of the fiat failure to come, plus a line that helped me piece a lot of things together.
Starting at the 58:01 mark and just past the 59:00 mark is a revelation that screams,”Watch out folks the Dodd Frank roadblocks might be just around the corner." What was said hit me between the eyes with a message of, “the money junkies ain’t going to let go of their access to a quick easy “fix” just yet”. brought to the fore in the interview segment around the 59:00 mark, which pointed out the elites would let the equity market drop, and try to protect the bond market instead. Well well well! I buy that theory except for one thing, the PPPTB (paper pushing powers that be) ain’t going to watch their stock funds (ours, but again they view it as theirs) whither away to nothing.
First some more in your face money velocity road block evidence, in the form of the December 16th rate hike. A rate hike that is now in conflict with the 3 month US Treasury Bill. What conflict you might ask? It is now below the new FED “window dressing rate”. Thus the bankster quick movement of ZIRP to other short term positive gain instruments just hit the money velocity wall as well. The short term, easy money, holding pool just got speed trapped, baby! Now even the bankster money velocity is being hindered.
With “The Guerrilla’s” tweeted map in mind (see above), which reminds one of the “Baltic Dry Index” speed bumps, and now add to that the Wolf Gray’s money velocity speed trap at the retirement account level via Dodd Frank, I now see little reason to be surprised by a roll out of Dodd Frank provisions from sea to shining sea. Why do I seem convinced of that? I think it is a clear business chess counter move to save the PPPTB retirement accounts, retirement accounts that we rent from them.
I can’t say this loudly enough, “They didn’t draft the ‘Dodd Frank Wall Street reform and Consumer Protection Act’, because they were bored, and didn’t have anything else to do!” There was a method to their madness, and a time for it’s potential implementation. The implementation time appears to be at hand!
And, I can’t say this loud enough either, “Liquidate, and protect yourself now!” In the interest of full disclosure, “That is what I did several years ago", but you have to quickly decide for yourself, as time is running short to effectively complete the task. Put simply these guys ain’t your financial friends. Jacob Lew is an officer of the Treasury Department, which along with the FED they are basically the rubber stamp crew for the ESF (Treasury is one in the same actually, see my ESF installment for greater detail, 06/30/2015), and those guys based on history don’t play around. So before you lose everything, which also means they lose more than they want from your accounts, accounts which you actually lease from them, expect these words, “Hi we’re from the government & we’re here to help!” Can I get a big “Yeah Right” Amen?
Close out the lease on what is your money, not theirs! Tax penalties be damned, they will be minor when compared to the Dodd Frank alternative road block penalties, and confiscations!
I am now more convinced than ever that these folks in positions of power view your money as their money. Put simply, if it weren’t for them, you wouldn’t ever had the opportunity to have accumulated those assets. I hate to say it, but I have dealt with business clients who have a similar view as regards their employee's paycheck monies. It is all lumped under the, "They wouldn’t have it if it weren’t for me", arrogant block headed attitude. Folks as far as the PPPTB are concerned, it ain’t yours, it’s theirs! They will have no problem implementing a Dodd Frank roadblock, AGAIN they didn’t draft the bill for nothing.
If the velocity of money hits total stall speed, then eventually the regular “Joes” through on the ground sufferings, will have no problem dealing with retirement penalties & taxes, in order to get to their own retirement stashes. If they can! All in an attempt to create their own survival need's based money velocity. Therefore this money velocity problem will also be the banksters problems, tied up in the accounts you conveniently lease from them. In their “big picture” attempts to collapse things, now the money velocity is cratering, and as a result I can picture them trying satisfying their faltering “money junkie tendencies”. Based on the evidence trail outlined above, along with common business sense, I think it indicates they will take what they feel is theirs, and the establishment of Dodd Frank permits them that very legal right! Acting ahead of this calamity, aimed at your money, is just another form of getting out of the way of the coming chaos! A saying made famous on RM via the wise one, our friend "W"! "Get out of the way for the time being"
Now is not the time to be lulled asleep or distracted by less meaningful events in Oregon or any other area of the country or even the world. Though each of these events appear to have a deeper meaning, still to be uncovered, I think they are distractions from the ever growing restrictions to your ability to buy important “needs” items in advance of chaotic events. This is all an attempt to make them appear more God like when they appear on the other side of the chaos to save the day. They will not appear too "God-like", if you have already taken care of your own needs. This is exactly what happened prior to the 1910 Jekyll Island meeting of elites to establish the Federal Reserve (completed in 1913). People had started to avoid banks, and were bartering among themselves in honest trade, something that terrified the banksters. They must have been screaming, "We can't have that shit." I say, "let's give it to them again!"
Side Note on Timing: The amount of time it takes for the world’s reserve currency to come to a point where the media cries “Uncle”, and says it is officially over, can be a long drawn out process. It sure has been thus far. In fact, for comparison, do big boats sink instantaneously? Not normally, it is a process. Does a business go under instantaneously? No it is a process. The process is well well well on the way to a King Dollar collapse, and for those that are aware, you are about to have a ring side seat to the final knock out maneuverings. What specific maneuverings?........
A Dodd Frank legal implementation, that is required, to save the country via a mandatory percentage of your fund holdings in US bonds. And ’btw’, to my knowledge it has already been test driven in some branches of the Federal government, courtesy of Jacob Lew.
Now is not the time to be lulled asleep. Not while leased retirement accounts by the masses, will most likely be sent to save the US government, under a lock and key to which you will not have the combination. And yes they are leased until you take possession, after all, the heavy taxes are your early lease cancellation fees. If your monthly statements a.k.a. the PPPTB’s monthly statements start nose diving, and you aren’t already in the motions of getting your money out, you will only be a disappointed spectator to the performance of your own portfolio.
The Guerrilla has always preached to try and provide solutions, and I concur, so with that in mind:
BREAK THE LEASE A.S.A.P. …! After all they did, when they set up Dodd Frank, and crushed an implied restriction free lease to your own money! To hell with them!
Problems are always turning, many suspiciously in full view. In fact in such full view, it begs the question, WHY? What else is turning, that also needs to be in view? Be vigilant, the simple turning, while business is dying yet purported to be thriving, indicates to me we are about to be side swiped, by a Mack truck with Dodd in the drivers seat and Frank riding shotgun.
Heck Forrest Gump could decipher the coming road blocks to our financial freedoms. Real tangible goods, whether plain ole’ stinky arsed shrimp harvested by Gump, or silver being used in the factories, are what contribute to lasting money velocities. Throw in a little price discovery, and you have a real economy. Or……you can use fiat, and the money velocity will eventually quit turning. We are about there, don’t be distracted or lulled asleep! I will let Forrest do the acting with musical help from “The Byrds”…..
ps…Speaking of a disaster of humongous proportions for the banksters, and the oil industry as well (both are somewhat overlapping), check out this headline from this morning……..
Insure yourself with your own stash of hard assets via a personalized DHAP (diversified hard asset portfolio), after all even many of the rich guys are losing their fiat arses, via bets on resources that are now the leading acts in the world’s economic decline! This will be EPIC when all is said and done! Heck if your eyes are open, it already is!
Credits to the thoughts of: Opie, Team RM, Michael Snyder, Charles Hugh Smith, Wolf Street, ZeroHedge, Jim Willie, and Forrest Gump & The Byrds