This is what I meant by lack of retail investors in the stock market. The stock market is now traded mainly by hedge funds, and large banks being funneled money by the federal government. How else do you explain an increase in prices with a decrease in volume? It can happen, but it doesn't justify the move. It is the most dangerous place to trust your money over the long term. But then again with the Fed program QE to infinity, the stock market may never come down. It may actually accelerate. But then again so did the stock market in Weimar Germany in its early days of hyperinflation.
Just something to think about.
If they were ever to stop the QE program(which they can't) stocks would fall over a cliff and make the crash of 2008 look like a picnic. The only thing holding this thing together now is speculative money. Which changes its mind all the time. The last place I would choose to be.
http://www.zerohedge.com/article/nyse-common-stock-volume-plunges-sub-2001-levels
Tuesday, February 15, 2011
Friday, February 11, 2011
A REAL look at the U.S. Government's CPI number
Generally speaking, we are the richest nation in the world, which means that goods and food(particularly) are generally cheaper for us to consume. Our number 1 export is inflation/excessive printed cash. And it has been now proven that the largest part of our GDP is in our government's spending. It is the only reason why the GDP number is growing! Now all that cash that is exported, will ultimately find a home to roost and it has found a particularly dangerous one. Commodities in general, but particularly food. So prices have been rising sharply along with the now inflated Dow Jones(but that's another story) since the start of Ben Bernanke's Quantitative Easing 2.
This is exactly why loose monetary policy is extremely dangerous. Particularly excessive money printing and low interest rates. With no gold standard or anything else to back our currency with our money is losing significant value on a daily basis. This is why the gold standard was placed in the constitution. They knew that backing the currency with Gold and Silver would force the government's hand in spending, and ultimately in its ability to grow. Obviously the farther we have gotten away from this policy, the worse off we have become.
So now we take a look at the CPI number which I will let the article below do most of the explaining. But basically it states that the percentage of food price increases that we include in the CPI are so low that they are basically irrelevant. Particularly compared to other nations. India has a weighting on one end of the spectrum of 50%! We are on the completely other end with it as low as 7.8%! No wonder the CPI never rises. As you have real estate that is over weighted, and have falling prices. Food prices are steeply rising everywhere in the world but it not even on our government's radar! This is the idea that the world will be going up in flames, with the american people starving yet the government still saying inflation is still low. All depends on what the number is based on, now isn't it?
And the government is in collusion with the big banks to keep real estate prices slowly falling, but still not yet falling at a fast enough rate so we can actually find a bottom and move on. They actually changed the accounting standards so that the large banks don't actually have to mark-to-market any of their assets, and have actually maintained pre-recession values on their balance sheet. For if they did have real accounting standards, these large banks would immdeiately fail again and TARP 2 would be issued. The large banks such as;Morgan Stanley, HSBC, JP Morgan Chase cannot be allowed to fail. They are the only ones doing business with the federal government! It's all one gigantic crap shoot just waiting to implode. But you will see more of this, this year as 2011 will be the worst year for foreclosures. As the banks begin to pick up steam on handing out default notices to millions of Americans that have been living in their houses rent free for a year or more. All the while the banks have been covering up the latest and largest fraud in mortgages that America has ever seen. Yet Not One Person Has Gone To Jail. Hmmm guess we support corruption now, and turn our head the other way. But if you and I steal a candy bar we go to jail. But apparently stealing from people is A OK. Guess it just depends on who you know ;)
Article on the CPI is here.
http://www.zerohedge.com/article/tale-two-inflations-here-why-us-cpi-indicator-flawed-and-why-bernanke-will-maintain-zirp-rev
This is exactly why loose monetary policy is extremely dangerous. Particularly excessive money printing and low interest rates. With no gold standard or anything else to back our currency with our money is losing significant value on a daily basis. This is why the gold standard was placed in the constitution. They knew that backing the currency with Gold and Silver would force the government's hand in spending, and ultimately in its ability to grow. Obviously the farther we have gotten away from this policy, the worse off we have become.
So now we take a look at the CPI number which I will let the article below do most of the explaining. But basically it states that the percentage of food price increases that we include in the CPI are so low that they are basically irrelevant. Particularly compared to other nations. India has a weighting on one end of the spectrum of 50%! We are on the completely other end with it as low as 7.8%! No wonder the CPI never rises. As you have real estate that is over weighted, and have falling prices. Food prices are steeply rising everywhere in the world but it not even on our government's radar! This is the idea that the world will be going up in flames, with the american people starving yet the government still saying inflation is still low. All depends on what the number is based on, now isn't it?
And the government is in collusion with the big banks to keep real estate prices slowly falling, but still not yet falling at a fast enough rate so we can actually find a bottom and move on. They actually changed the accounting standards so that the large banks don't actually have to mark-to-market any of their assets, and have actually maintained pre-recession values on their balance sheet. For if they did have real accounting standards, these large banks would immdeiately fail again and TARP 2 would be issued. The large banks such as;Morgan Stanley, HSBC, JP Morgan Chase cannot be allowed to fail. They are the only ones doing business with the federal government! It's all one gigantic crap shoot just waiting to implode. But you will see more of this, this year as 2011 will be the worst year for foreclosures. As the banks begin to pick up steam on handing out default notices to millions of Americans that have been living in their houses rent free for a year or more. All the while the banks have been covering up the latest and largest fraud in mortgages that America has ever seen. Yet Not One Person Has Gone To Jail. Hmmm guess we support corruption now, and turn our head the other way. But if you and I steal a candy bar we go to jail. But apparently stealing from people is A OK. Guess it just depends on who you know ;)
Article on the CPI is here.
http://www.zerohedge.com/article/tale-two-inflations-here-why-us-cpi-indicator-flawed-and-why-bernanke-will-maintain-zirp-rev
Thursday, February 3, 2011
A peak over the horizon.
Global riots, rising food costs and gasoline prices read the headlines. Yet the dow jones continues to rally like it's 2007 and nothing could go wrong. Listen. There is a lot more behind all this than most people think nor care to know. The deeper you get, the more you realize that this is all interconnected. Then you see the light and can get started on preparing.
Truth is, this is all going to get A LOT worse. And you have two options. Either go on like everyone else like a zombie and pretend everything is fine until this finally affects you. Or you can get informed, get involved and PREPARE. Those that do will be greatly rewarded. Those that don't will more than likely regret it, more than anything they have in their entire life. This is the single most important factor people should be discussing right now. Yet no one talks about it. It's the American way. If it doesn't affect me, then who gives a flying turkey. Well that's not how I roll. It is my God given right and duty to help as many people as I possibly can. I may sound a little ahead of myself and off the wall. But I can see the category 10 hurricane that is about to swallow the entire United States, and leave us ruined and in poverty. We are no longer the great nation we used to be, and soon the rest of the world will show us just exactly what that means to the average every day american. And it wont be pretty. The sooner you accept this idea, the easier the transition will be.
My best advice right now is to learn. Turn off the TV and spend some time investigating what is really happening. I know it's hard to hear and see. Do it anyway. You will want to stop digging. Don't. Don't give up hope, although there is a lot of change coming to America, it is time we stand together and work together. It's the only way we will make it through the dark times ahead. Time to prepare is running out.
Truth is, this is all going to get A LOT worse. And you have two options. Either go on like everyone else like a zombie and pretend everything is fine until this finally affects you. Or you can get informed, get involved and PREPARE. Those that do will be greatly rewarded. Those that don't will more than likely regret it, more than anything they have in their entire life. This is the single most important factor people should be discussing right now. Yet no one talks about it. It's the American way. If it doesn't affect me, then who gives a flying turkey. Well that's not how I roll. It is my God given right and duty to help as many people as I possibly can. I may sound a little ahead of myself and off the wall. But I can see the category 10 hurricane that is about to swallow the entire United States, and leave us ruined and in poverty. We are no longer the great nation we used to be, and soon the rest of the world will show us just exactly what that means to the average every day american. And it wont be pretty. The sooner you accept this idea, the easier the transition will be.
My best advice right now is to learn. Turn off the TV and spend some time investigating what is really happening. I know it's hard to hear and see. Do it anyway. You will want to stop digging. Don't. Don't give up hope, although there is a lot of change coming to America, it is time we stand together and work together. It's the only way we will make it through the dark times ahead. Time to prepare is running out.
US Mint Sells Absolute Record 6.4 Million Ounces Of Silver In January
Via zerohedge: http://www.zerohedge.com/article/us-mint-sells-absolute-record-64-million-ounces-silver-january-50-more-previous-highest-mont
US Mint Sells Absolute Record 6.4 Million Ounces Of Silver In January, 50% More Than Previous Highest Month
As the topic of US Mint silver sales is not new to our readers, after we first brought attention to the record January sales by the Mint, we will not dwell much on it, suffice to say that the final January tally is in. And at 6,472,000 ounces, this is nearly 50% higher than any prior month in the Mint's 26 years of published sales history. This has occurred, despite supposed profit taking in the paper silver market in January. And just today, another 50k, were sold. It seems that physical buyers continue to enjoy the dip in paper silver that is providing them with an attractive entry point.
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