Sheer Lunacy

Since I last posted on this blog there has been nothing but sheer lunacy coming out of D.C.

We now are watching central planners in action. GM (government motors) will come out with the politically correct car, not that any of us will buy it but then who ever said the gov. is efficient.

This debt has to be paid. The only way I ca visualize at this stage is a massive dollar devaluation. Of course that has happened ever since we gave up our banks to the federal reserve.

Now stay with me here...The treasury needs to auction of our debts. But no one is coming to the auction other than the 16 that are mandatory show, but the bids are getting high now. So the reserve is going to buy these bonds. I ask with what money? Why of course made up money they can just print and so the U.S. treasury ends up owing to private bankers backed by my and yours taxes. And you thought Ponzi had a scheme.

We are now a banana republic. We will lose our AAA status and go the way of all fiat currencies.

That leaves us with tangibles. Dont believe it, look at commodities lately.

Global Currency

Here it is...And all the players are lining up.

Those of you on fixed incomes with bonds, annuities etc had better pay attention. The central planners have already figured the only way to pay for this experiment is to devalue all of this debt (which is bonds etc)

It did not help that the auction today was soft. Seems the world is getting tired of our debt.

Here comes the devalue. Better take care.

Where's the bear?

Many folks are wondering just where the ravaging bear is right now. Remember some of the largest gains are in secular bear markets. Taking a look at the chart we can see this secular bear started in 2000. The average secular bear has been 18 years. So you can see this ne is still in the infancy stage. So we wait patiently for the inevitable rally back to a regular descending line to take another position. Now this could be fro a huge rally, of just going nowhere for months.
Hope this helps.

World Currency

We spoke on this subject a few weeks back. Now Russia and China are climbing on board.

What this does is basically do away with debt. So those holding dollar debts are converted into the new world currency. Whatever value they place on it.

This will definitely dissolve debts, but the debtors are going to take it in the shorts. This will make gold the true world currency. Once the dollar is no more the reserve currency, it can drop out of site.

We spoke of this being the only way to dispose of the trillions without bankruptcy. But then bankruptcy is really what you are doing. Kind of like when a company files for bankruptcy, the old shares are done away with wiping out shareholders. Now the bond holders receive the new shares, selling them on the markets to new investors.

This is what will happen should we adopt a world currency (which looks likely)

Fixed income investments are going to get clobbered.