Friday, August 3, 2018

How can you win when someone else is losing for you?

These are dangerous times for the markets.  They are all leveraged to the hilt and the next time they implode the government is not going to be able to step in and pay off the losses like they did, globally, last time.  The people of the world are simply tired of being patsies to the scam of privatizing gains and socializing losses (PGASL).  The herd simply is not going to pay the debt of wild gamblers going forward.  The financial markets are still allowing highly leveraged gambling as if they were backstopped by government, but now the cracks are showing in the PGASL scam.

In any gambling bet, someone has to pay and the only ones who might possibly pay are those with the ability to pay even if they did nothing wrong in order to be targeted for payment.  I learned this lesson a long time ago during my first divorce where the judge told me I had to pay for her Palm Beach lawyer (may he burn in Hell) even though she was getting all the benefit and even though she was the recognized cause of the divorce (adulteress/infidelity).  He simply told me I would be paying for everything because I had a good high tech job and thus I had the ability to pay.  Talk about your moral hazard rising.

Well that has been the template for decades now during the rise of liberalism and it is still raging both on Main St and on Wall St. even if the trend is now changing.

On Main St, if you are a man and you get a divorce (or she divorces you even) in the states of NJ or FL and others you will be facing LIFETIME alimony.  Yes, lifetime.  As  in bonded slavery for life.  And if you don't pay, men with guns will come and take your property and then put you in jail.  And if you resist hard enough they will kill you where you stand.  Don't roll your eyes; these are the plain facts.  You have to be INSANE to get married in any of these states OR to move there after marrying in another state like TX where alimony is actually reasonable.  And yes, there are cases where the woman was the bread winner and the man gets the alimony.  But as an engineer I don't like to waste my time talking about the 0.01% case just for the sake of political correctness.  That is where liberal fools spend the vast majority of their time, acting like the small minority case is the biggest issue deserving our time.

On Wall St., well, we saw what happened in 2009.  All world government banded together in order to bail out their leveraged gambler banking buddies.  They printed up tons of new cash to pay the bill and to make the debt Ponzi appear solvent.  So in response to seeing that, everyone has leveraged up yet again (AKA moral hazard) in the belief that government has no choice but to save the system; the gamblers think they are too big to be allowed to fail.  I laugh at this notion because if the herd doesn't agree then it's not going to happen. The first time around the herd was threatened with global disaster, martial law and civil war and it had people very fearful.  But as they saw this bad behavior rewarded, fear grew into anger.

It is no accident that peak globalism happened in the aftermath of the 2008 collapse and the 2009 bail out of the corrupt system.  People who had confidence that leaders were doing the right thing lost confidence.  Critical mass of confidence was lost and so we saw things like Brexit, Trump getting elected and the like.  So anyone who still thinks that the people are going to bail out the next Wall St collapse is crazy.  If someone threatens the herd now with martial law and civil war, a good 20% of the population will say "Hooray!!  Anarchy!!".  The fear is gone and the next time this crap is pulled by government there will be a shooting battle.  People will die and it will be of historic importance. You can read it in the comments of many articles, Youtube vids, etc.  People are PISSED.  They are seething.  Their current prosperity and future prospects SUCK.  And they look around at those who are still doing well and they are not happy.  Many of these people would just commit suicide but they are waiting for the shit to hit the fan so they can suicide someone else before they die.

The con men running this con game are aware of what the herd thinks.  Highly aware.  And they know they have to care even though they come off devil-may-care about it.  A cowboy is always monitoring the herd watching for signs of a stampede.  And they have been taking some action.  General Electric, for example, has been all but dismantled and will, as I predicted long ago, either BK or be broken up completely at some point.   Other steps have been taken as well and perhaps the most important one is the so called bail in.

In a bail in, participants of the system are self insured against losses which are incurred by any individual member that the system itself cannot cover.  This of course is a total scam and only 1% of the people out there understand what is going on.

What would you say if you went into a casino which did not post any visible rules but which had a rule book somewhere.  You are playing the slots and actually winning this time.  Sure, you normally lose but this time you are winning big and you are elated about it.   You have a big pile of money coming to you when you cash out.  But then you hear a big uproar on the other side of the casino.  Some big leveraged gambler placed a highly leveraged, 20:1, $140 million dollar bet on a "sure thing" spin of the roulette wheel.  Now, this gambler didn't actually have the money to place this bet!  He asked the casino for a marker in order to place it.  The casino generally would not accept such a bet because it would be too large for them to cover but, hey, business has been down and so they found it difficult to turn down such a big opportunity.  So they go out and get external credit to fund the bet.

Well the gambler loses his bet and with a loud "FUCK"! he gets up from the table and just starts heading for the front door.  The casino calls security to stop him.  They easily catch up to him and take him to the back office where payment is demanded on the lost bet.  But the gambler is broke (something that should have been obvious to the casino and would have been had they not needed the money).  He literally has nothing to take.  And there is no debtor's prison so there is no option but to let him walk free.

But someone must pay off the failed bet with the external credit source (they want their 15% fee!!) and the casino doesn't have the money (which also should be obvious since they had to borrow it in the first place) and so they begin looking around for someone with the ability to pay.

The only ones left to take anything from are the other gamblers, including you.  You have unrealized gains.  That means you have won money in the casino but have not yet left the building with your winnings.  And in the fine print of their corrupt little rule book the casino has a clause that says they can take your unrealized winnings to pay for bad bets if the casino can't cover it.  Oh, you didn't know about that??  Sorry!! Ignorance is no excuse!

So on your way out you bring your markers to the window and they give you some money but it's 18% shy.  You start to get pissed and you ask them why they are holding back the remainder.  They explain to you in their little bureaucratic voices that a bet went bad, the casino can't cover it and you are among those with the ability to pay.  So that's all you are getting, take it and be happy we did not take it all, fuck you very much and have a nice day.

You start to lose your fucking mind, yelling at the lady behind the window and so she presses that red button.  Two casino employees the size of Volkswagens and who carry themselves in a way that exposes their clear military background cruise up to either side of you.  Flanking you are also two on-duty cops, who are paid by the public but who work full time in the casino and are thus shadow employees thereof.  All four men are large in stature, armed with guns and have a license to hurt and/or kill you if you do not follow policy.

If that sounds jokishly crazy, the joke is on you for not understanding what a total scam the system is because this just happened in the Bitcoin futures market.  You can read about it here but the bottom line is that the market maker could not cover the loss of a large bet which they should never have allowed and so they stole 18% of the unrealized profits of the other participants.

Now, let's apply this to your bank account.  Whether you realize it or not, your bank deposits are legally considered to be a loan to the banking system.  If you don't believe that, do some research because it is true.  So you are participating in the banking system by willingly loaning them money and in exchange you get essentially free banking services; these "free" services are how they are remunerating you for the loan of your money. Now, the banks are leveraged gamblers by definition.  They have a certain amount of deposits which are their monetary base and then on top of those deposits they are allowed to create new money out of thin air called credit, and the ratio of base money to credit starts at 10:1 and just goes up from there.

So now you know that you are in the casino with all of your hard earned money thinking you are doing the right thing.  Sooner or later the debt Ponzi is going to collapse and when it does the system is going to look for those with the ability to pay.  It's called a bail in and it already happened to others like Cyprus.  Eventually it will happen to all the big banks because they got big by leveraging up so when the Ponzi collapses they will be the hardest to crash.  But this time, instead of stealing from everyone using money printing and QE, those who have deposits with the failing institutions will be targeted and labeled as "as those with the ability to pay".

It's coming folks.  And when it arrives there will be no time to react.  Think about this now while there is still time to do so.

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