Monday, March 24, 2014

The world is headed into chaos mode.

Smart people are getting out of the financial markets in any way that they can right now.  Maybe the stock markets will sucker rally until May.  Maybe not.  Today's wild action in the $COMP show how fast things can move once the herd is on the hoof.  There are just too many signs of stress and they are coming from all parts.  The herd is near the breaking point.  Some examples from Google News headlines:
  • Russia thrown out of G8 until they back off on Crimea.  That will never happen.  Russia thinks the repatriation of Crimea is a natural act and so apparently do the people of Crimea.  Only the west, well know for blowing up its own buildings in order to justify the invasion of other countries, is characterizing it as an invasion.
  • 5 former Madoff employees on trial.  If you recall, Madoff said nothing at his trial.  He decided to take the fall for the other organized criminals, which probably number in the hundreds and include big name Wall St figures (my opinion).  Something tells me these new trials will see the canaries begin to sing.  This is the nature of an organized crime collapse.  The jig is up and these guys know it and so they will begin to roll over on everyone.  Nobody is saying it but me.  Watch and see.  I have expected this to happen for a long time and the timing of it is not an accident.
  • Egyptian monkey court sentences 529 Morsi supporters to death.  This is nothing short of a state sponsored execution of the opposition.  You think this will be the end of it??  It will be the START of it.  Talk about lighting the fuze to a powder keg...  Again, there is a reason this is happening now.  The mood of the herd has changed and it is heading south in a big way.
  • Judge Joe Brown gets slapped with 5 counts of contempt of court and receives 5 days in jail for massive outburst in real court.  In other words, the mood collapse is happening at all levels.  Expect more and more people to spit in the face of the corrupt system and to disrespect (and much, much worse) the corrupt players in it.  Sad to say, my models expect the murder rate of police officers, esp in cities, to skyrocket.  Politicians might even be targeted for execution.  I expect more ambush type events and more distrust of the people by the cops because they know how over the top their jackbooted police state tactics have gotten.  This is a very good time not to be a cop because the herd is going to get revenge for all of the wrongs done and the herd will not be asking "are you a good cop or bad cop".  The herd will see a cop in a vulnerable position and then trample him under hoof.   I don't hope to see it happen but I sense the the herd will feel justified in doing it.  To be honest, the cops have bitten off more than they can chew and they are too stupid to see it.  They think by armoring up with humvees and MRAPs and full battle gear that they will be able to be "the master" of the herd.  Oh, so misguided and ignorant of history is anyone who believes this will work.
  • Morgan Stanley says China (all of it) is near a "Minsky Moment" where their economy which is "largely" a debt Ponzi is near collapse.
No matter where you look you see growing unrest.  Each time a herd member senses it, he also retransmits it.  The bad sentiment seems to happen quickly but in reality it has been there for some time now, just repressed by fake political correctness.  A tsunami of unrest is about to hit and it will certainly show up in financial markets.  The con men are losing control.  It had to happen at some point because no con ever ran forever.   You can fool all of the people some of the time and some of the people all of the time but during the collapse phase of a massive scam you suddenly can't fool anyone ever.  The easy money has run out for the global debt Ponzi.  The weakest, most leveraged entities are now already defaulting.  Check out the recent collapse in Hong Kong property values as leveraged gamblers rush to sell their real estate in order to cover their margin calls.

Smart people will consider taking their money out of banks.  Yes, even in the US.  Being the last to go does not mean we will not go.  Our pyramid cannot stand when all of the shoulders we are standing on collapse below us.  Domino defaults will badly affect the US banking system.  Please realize that your deposits are legally considered loans to the banks - loans made for the purpose of them turning around and "investing" (leveraged gambling in a fractional reserve system).  Investments can and do lose money.  Banks are leveraged up the wazoo and several of the big ones (Bankrupt of America, Citicoup, etc.) will collapse before this scam is done playing out.   The FDIC is bankrupt and other Americans will decline to bail you out.  For the privilege of taking all this risk you get, what, free checking???  My God there is a sucker born every day!

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