During the recent government budget theater, the dems and many of the republicans tried to vilify Texas Senator Ted Cruz for taking such a hard line stance. Senator Cruz did not have a big list of demands. In fact, he had only one demand: de-fund Obamacare in order to stop the train wreck from getting any bigger.
Of course the administration dug in its heels because socialism and in particular socialized medicine are cornerstones of their power base. Of course the limp-wristed main stream GOP candidates mainly just went along for the ride. They are more interested in not making waves than they are in helping America. They have basically given up on America. They just want to do nothing, get paid a lot, and then go off into the sunset on a yacht paid for with their lifetime retirement that we the people foolishly let them vote for themselves.
Both sides of this actually attacked Ted Cruz in this matter. Senator Cruz could see that Obamacare was a scam and that Barrack Obama was not actually talented enough to make it work and so he tried as hard as he could to call attention to it and to get the people behind him in defunding it, an effective repeal of this new taxation scam and societal control mechanism. Senator Cruz did not know at the time that the roll out would be such a incompetent disaster. But he did recognize a con and a shifty con man when he saw one so he played the role of Senatorial whistle blower.
In response, the administration blamed him for the shutdown (even though he was there in person helping veterans move Barrycades away from the memorials) and the worthless RINO GOPs told him to "calm down" and "tone it down". For my part, I think the animosity and volume level he was using was quite appropriate given the gravity of the situation and the long term effects it will have on our country if allowed to move forward.
Today, Steve Forbes is discussing what a train wreck the Obamacare roll out has been:
"It's incompetence from top to bottom... It starts with the top, with the president, and then everyone in the chain of command, including [Health and Human Services] Secretary [Kathleen] Sebelius... Everyone knew there were going to be problems. And then something as complex as this, you have to bird-dog it every step of the way."
Well duh. You have an academic lawyer demanding that the entire medical system of the country be funneled through his crappy little website and what else would any thinking person expect? The sad thing is that the web site is the easy part of any enterprise. It's the user interface to the real engine which is where the real complexity exists. The engine has to account for all of the eventualities, have the issue mitigation plans built in. It has to make sure that people are getting the best information the first time. The Obamacare website isn't anywhere close to that and it never will be because what Obama really wants is for the government to be the single payer. He wants to turn government into a massive insurance company with nearly untraceable cash flows so that he and his cronies can control people, concentrate power, impoverish the middle class further in order to usher us all into economic slavery. I predict that they will fix the technical problems with the web site in just a few months. That should not be mistaken with having fixed Obamacare. The program is a scam and the only way to fix it is to repeal it with prejudice.
Obama and his counterparts in the GOP have been given marching orders by the banking elite to transform America into an untenable, government controlled $hithole by taking advantage of the crash of the Keynesian business cycle and using it as an opportunity to concentrate power for the banking elite that they actually work for. It is just the next step in the ongoing economic coup which Ike warned us about in his exit speech regarding the military industrial complex and which Alan Greenspan warned us about in his late 1960s essay on the link between gold and personal freedom. Please remember these key words from that speech which occurred loooong before anyone thought of the US as a socialist country:
"The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves."
Greenspan was clearly talking about the US here. He clearly knew that the plans of the banking elite were to create a welfare state as a mechanism of control over the people. Since then the socialistic theme of the US has increased at an exponential rate. The socialization of US healthcare under Obamacare is a 3rd wave upward in the march of socialism. Ted Cruz knows this and this is what he is really fighting. You should be fighting it too. We all should be fighting it tooth and nail if we know what's good for us.
To be fair, Obama did not cause the current economic conditions. Neither did Bush. What caused it goes much further back. In short, the root cause is a dishonest money supply consisting of fiat currency and fractional reserve lending which not only allowed but encouraged everyone to go into debt in order to have something NOW without fully realizing that they were not getting something for free. Instead, they were simply eating their futures. Having done that, there is less to eat when tomorrow comes. Well, tomorrow has come. The result is reduced consumption (AKA poverty). This corrupt system of currency is guaranteed to fail. It exists under the name of capitalism but it is not capitalism. It is fake capitalism or, better still, crony capitalism. The end goal of it was always to push the US towards socialism and then fascism. Lenin actually educated us in this matter: "Fascism is capitalism in decline".
How can real capitalism ever decline?? In truth, it cannot. It is a self sustaining and fully sustainable system whereby those who work hard and smart get the fruits of their labor and those who were not given exceptional intelligence at birth can still do quite well simply by working honest and hard. In these people, their gift is their strength and their persistence. These are as important in the survival of our species as anything else and a fair and sustainable economy automatically rewards them for it without need for government intervention. Everyone is happy with what they earn and everyone knows their place in the social pecking order which was in fact determined by their DNA.
With real capitalism, no individual ever becomes a billionaire simply because the engine of becoming one is massive leverage and real capitalism does not allow it. No single person can add so much value to the economy or to the future of the species that he should be so greatly rewarded. Millions yes, billions no. The presence of billionaires tells us right away that real capitalism is not in effect. With real capitalism, the labor of a man is always enough to feed and clothe and to reasonably shelter himself and his family. The presence of government assistance for people who are of sound mind and body tells us right away that real capitalism is not in effect. With real capitalism, the gene pool is enhanced by the mechanism of natural selection. Those with better DNA (whatever that really means to the herd but clearly apart from race or color or religion) are better able to afford larger families. Those with poor DNA (again as voted for by the herd based on the productive output of the individual and by the value that the individual provides to society) cannot afford large families. Real capitalism does not allow economic enslavement of others in society no matter how badly a certain percentage of the population would like to have it (and there will always be some who want it). Real capitalism has a built in governor called the free market feedback mechanism.
Crony capitalism is completely different. By enabling "special people" to be able to print money (or credit) from thin air and at their sole discretion, they are able to effectively set prices for labor. That ability completely ruins any free market pricing discovery that is such an essential part of real capitalism. Without that free market feedback mechanism, the odds are set against the people. As a result, the people begin to lose to the house. We call it the disappearing middle class. It is sneaky and insidious. The vast majority of the people have no idea why it is happening or what to do about it because it can take thousands of hours of detailed study in order to really understand the truth, but they certainly know they are getting screwed in the deal. So when a slick con man in a suit asks them to sign up for a something-for-nothing deal with the Devil, they gladly sign up because they think they have nothing to lose by doing so. Of course, if they really had nothing to take then the Devil would not be interested in them, would he?
Crony capitalism leads to economic booms followed by economic crashes which impoverish the less capable people to the degree that they need government help in order to eat. It creates dependent, obedient slaves. Government rewards these people financially for having large families by taking money from the more capable people via so called transfer programs. Thus, the gene pool is kiltered toward the creation of less capable people. Government wants this because it can easily control a dumbed down populace. I really think George Carlin communicated this very clearly in this video.
While the logic of these words should be obvious, some of the brain washed masses will play the "oh I can't believe you wrote that" card. This is what I am referring to when I say "fake political correctness". Society has been manipulated into not objectively discussing the logic of statements because that would lead to truth and understanding. Instead, we have been pushed into reacting emotionally. This serves to keep the masses uninformed by allowing them to mistakenly equate their emotional, uninformed opinions to fact. This is why we have so many people commenting on popular blogs even though so few people really know what's going on: they think their opinion is worth listening to even though they have not earned the right to be heard. They think that political correctness is more important than deep understanding.
In closing I have to say that Obamacare is not really important. Government opinions on who can get married, whether or not abortion is OK, who is a terrorist and who is a patriot really don't matter. Nothing matters except the honesty of the money supply and its implications to capitalism. Everything else is a symptom. A dishonest money supply leads to corruption, cronyism and eventually collapse. An honest money supply leads to life, liberty and the possibility of happiness for those who pursue it. An honest money supply shrinks the banks from being vampire squids which control everything back into polite accounting houses which control very little and are not paid very much at all. An honest money supply eliminates the need for 98% of the need for welfare and focuses it on those who are mentally or physically incapable of working.
All of the societal ills that are caused by the use of a fraudulent money supply are automatically fixed by the free market when honest money is used. This is why Ron Paul, apart from pretty much everyone else, focuses on ending the Federal Reserve. If we end the fed and replace our money system with something that is backed by a commodity and which does not allow fractional reserve banking, all these other symptoms will simply evaporate in short order.
Saturday, October 26, 2013
Has DRYS finished wave 2 down?? If so, wave 3 could be up on deck.
In the first post on DRYS that I have made since I began this blog, I suggested that it had finally bottomed and was now forming the handle portion of a cup with handle (C+H) formation. I took a look at the chart today and now I wonder greatly if wave 2 isn't complete.
I'm guessing that what just happened in the chart below is that wave 2 was made up of a flag formation. You can see the characteristic 5 rail bumps labeled a-e below and then you can see the throw under on the e wave. The first confirmation happened by suddenly breaking back up into the channel. The next confirmation, should it occur, would be a break out of the upper, down-sloping channel resistance line.
I'm going to assign this one a 70% chance of breaking the top resistance. If that happens the next target becomes the making of a higher high than wave 1 (i.e. > $4.00). If it can do that then I give it a target price of $6 before the end of Jan 2014 and, contingent upon said prerequisites, assign it 85% confidence in making that target/time frame.
By the way, these Greek shippers stock prices are highly correlated to the Dry Bulk Shipping Index which basically indicates how much it costs to ship stuff in the region. After dragging along at cutthroat day rates for a long, long time, the rates are now reacting to something. Oh, I wonder that that could be. Could it be that they no longer believe that Bernanke has any sort of workable QE exit strategy? Nah, probably coincidence. LOL.
In case the above paragraph really didn't make sense, during the dot bomb boom, dry bulk goods shipping rates went through the moon in a huge bubble taking share prices of Greek shippers with them, then they collapsed and all of the Greek shippers like DSX FRO, DRYS, etc. have been dragging the dirt for years now. All of a sudden we are seeing activity in the dry bulk rates. This is important because it has an effect on the cost of things shipped to us from China. On top of that the Yuan is strengthening as China buys more gold each month and then creates currency swap deals with its trading partners to cut the USD out of the deal.
This is not sounding good for the purchasing power of the lower middle class. Now all the government has to do is cut off their EBT cards again for about 3 weeks and the violence will escalate to the point where the government can justify martial law in order to fix the mess that it created in the first place. I'm not predicting this will certainly happen, I'm just saying it would not surprise me. Obama is running out of time to have something drastic happen that will give him justification not to leave office in 2016. I didn't start that rumor but to be honest it is going around. Of course Chris Matthews chuckles about it citing a constitutional roadblock but folks, Obama's working as hard as he can to weaken the Constitution. I also remember a time when people used to laugh at Peter Schiff for calling the coming collapse of the housing bubble back in 2006.
Nothing is impossible. Never take the Constitution for granted.
I'm guessing that what just happened in the chart below is that wave 2 was made up of a flag formation. You can see the characteristic 5 rail bumps labeled a-e below and then you can see the throw under on the e wave. The first confirmation happened by suddenly breaking back up into the channel. The next confirmation, should it occur, would be a break out of the upper, down-sloping channel resistance line.
I'm going to assign this one a 70% chance of breaking the top resistance. If that happens the next target becomes the making of a higher high than wave 1 (i.e. > $4.00). If it can do that then I give it a target price of $6 before the end of Jan 2014 and, contingent upon said prerequisites, assign it 85% confidence in making that target/time frame.
In case the above paragraph really didn't make sense, during the dot bomb boom, dry bulk goods shipping rates went through the moon in a huge bubble taking share prices of Greek shippers with them, then they collapsed and all of the Greek shippers like DSX FRO, DRYS, etc. have been dragging the dirt for years now. All of a sudden we are seeing activity in the dry bulk rates. This is important because it has an effect on the cost of things shipped to us from China. On top of that the Yuan is strengthening as China buys more gold each month and then creates currency swap deals with its trading partners to cut the USD out of the deal.
This is not sounding good for the purchasing power of the lower middle class. Now all the government has to do is cut off their EBT cards again for about 3 weeks and the violence will escalate to the point where the government can justify martial law in order to fix the mess that it created in the first place. I'm not predicting this will certainly happen, I'm just saying it would not surprise me. Obama is running out of time to have something drastic happen that will give him justification not to leave office in 2016. I didn't start that rumor but to be honest it is going around. Of course Chris Matthews chuckles about it citing a constitutional roadblock but folks, Obama's working as hard as he can to weaken the Constitution. I also remember a time when people used to laugh at Peter Schiff for calling the coming collapse of the housing bubble back in 2006.
Nothing is impossible. Never take the Constitution for granted.
Friday, October 25, 2013
Children and idiots are figuring out that they are Obama patsies.
Informed visionaries (AKA "conspiracy theorists") hated Bush 2 but knew that Obama was the same thing, different skin color. We also knew Romney would be the same. The reason we knew (and know) this is that these presidents are selected, not elected. The two party political system of the US is completely corrupt. Instead of talking about things that really matter to a sustainable nation such as freedom, honest money and personal self sufficiency via the tried and true mechanism of living within one's means, these con men push exactly the opposite. Their God is debt. It is the God of slavery.
Bush 2 pushed the concept of a home ownership society knowing it was really home debtorship. Do you really think he had or has any economic understanding? Bush 1 was a clever, manipulating bastard of a scammer. Even if you hated him, you had to respect the fact that he was no dummy. But the best part of Bush 2 landed in the bush during his conception. He's an elitist half wit drunk who thought he was clever as he did the bidding of his masters.
Obama is somewhere in between the Bushes in terms of intelligence. First and foremost he is a damned liar. He makes wild promises that have absolutely zero chance of coming true and he does it with an arrogant, "can't be wrong" attitude. He is a true narcissist. Libertarians recognized Obama as a scum bag and con man from day freaking one. We stood there as the sheeple, who call us names and who think their degrees and honors mean a damned thing in real life, fawned all over him as their new messiah. It was a vomit inducing, gut wrenching spectacle to say the least. The Romney crowd was no different. The real motto of both of these camps was/is "me, me me.". That's all these losers say, think and do. They repeat it so many times that they actually begin to believe their own bull$hit.
But now the veil is wearing thin as you can see by this admission from a typical member of the soft-socialist "government can make a better world if we all just agree that it takes a village" crowd. Watch the video, I dare you. To his credit, this child has partially swallowed his pride concerning his mistakes and is calling on Obama to resign for all of the tyrannical behavior that it has been responsible for. Of course, instead of taking personal responsibility for being a gullible ass whose simplistic beliefs have f-ed the country up for the rest of us, this moron thinks that by stating the obvious at this point that Obama will give two $hits. It is not the con man's fault that he is a con man. A criminal is a criminal. It is in his DNA. Criminals live by the credo "never give a sucker an even break". It is the patsy's fault for falling for it. Obama's entire campaign spiel was so obviously a con that only a foolish, gullible child would ever fall for it.
So while this kid rightfully points out that Obama is a lying scam artist I fear that he really didn't learn any lesson from his experience. I didn't hear him personally apologizing to the American people for supporting Obama and for voting for him. I didn't hear him say "I coulda had Ron Paul but instead I chose the good looking, well spoken con artist. Shame on ME.".
Unfortunately, that's par for the course for the liberal left. Another mainstream liberal socialist a$$ like Hillary will show up in 2016 and these patsies will show that they really didn't learn anything by supporting her and voting for her. She is just another main stream Manchurian candidate. She has no special insight, vision or intelligence. Benghazi simply blew her away. But she has a strong speaking voice and is never at a loss for words and so the sheeple will probably fall back on their short lived memories and support her. If that happens I can tell you in advance that it will end very badly. All she can do is rack up more debt and make more un-keepable promises to the children who follow her. The military industrial complex (unholy conspiratorial alliance of military, corporations, banking system and government) will control her like a puppet and use her as a pied piper to lead the rats into the river just like they have done with every main stream president to varying degrees since Ike finished his presidency.
Folks, the only things that need to be discussed by the next president are how government will address its own corruption, how we will stop printing money and creating debt even if it causes massive short term problems, how we will achieve small, less intrusive government that pulls out of all the foreign entanglements, and how the constitution will be restored in full to the citizens.
NOTHING else matters.
So if you voted for Obama or Romney, wake the flock up. Stop being controlled by the lame stream media. Start listening to those who had the vision and understanding of economics and history and human nature that allowed them to predict what is unfolding right now with such incredible accuracy. Ignore the stupid headlines. The news is free because it is not being done for you but rather to you.
Bush 2 pushed the concept of a home ownership society knowing it was really home debtorship. Do you really think he had or has any economic understanding? Bush 1 was a clever, manipulating bastard of a scammer. Even if you hated him, you had to respect the fact that he was no dummy. But the best part of Bush 2 landed in the bush during his conception. He's an elitist half wit drunk who thought he was clever as he did the bidding of his masters.
Obama is somewhere in between the Bushes in terms of intelligence. First and foremost he is a damned liar. He makes wild promises that have absolutely zero chance of coming true and he does it with an arrogant, "can't be wrong" attitude. He is a true narcissist. Libertarians recognized Obama as a scum bag and con man from day freaking one. We stood there as the sheeple, who call us names and who think their degrees and honors mean a damned thing in real life, fawned all over him as their new messiah. It was a vomit inducing, gut wrenching spectacle to say the least. The Romney crowd was no different. The real motto of both of these camps was/is "me, me me.". That's all these losers say, think and do. They repeat it so many times that they actually begin to believe their own bull$hit.
But now the veil is wearing thin as you can see by this admission from a typical member of the soft-socialist "government can make a better world if we all just agree that it takes a village" crowd. Watch the video, I dare you. To his credit, this child has partially swallowed his pride concerning his mistakes and is calling on Obama to resign for all of the tyrannical behavior that it has been responsible for. Of course, instead of taking personal responsibility for being a gullible ass whose simplistic beliefs have f-ed the country up for the rest of us, this moron thinks that by stating the obvious at this point that Obama will give two $hits. It is not the con man's fault that he is a con man. A criminal is a criminal. It is in his DNA. Criminals live by the credo "never give a sucker an even break". It is the patsy's fault for falling for it. Obama's entire campaign spiel was so obviously a con that only a foolish, gullible child would ever fall for it.
So while this kid rightfully points out that Obama is a lying scam artist I fear that he really didn't learn any lesson from his experience. I didn't hear him personally apologizing to the American people for supporting Obama and for voting for him. I didn't hear him say "I coulda had Ron Paul but instead I chose the good looking, well spoken con artist. Shame on ME.".
Unfortunately, that's par for the course for the liberal left. Another mainstream liberal socialist a$$ like Hillary will show up in 2016 and these patsies will show that they really didn't learn anything by supporting her and voting for her. She is just another main stream Manchurian candidate. She has no special insight, vision or intelligence. Benghazi simply blew her away. But she has a strong speaking voice and is never at a loss for words and so the sheeple will probably fall back on their short lived memories and support her. If that happens I can tell you in advance that it will end very badly. All she can do is rack up more debt and make more un-keepable promises to the children who follow her. The military industrial complex (unholy conspiratorial alliance of military, corporations, banking system and government) will control her like a puppet and use her as a pied piper to lead the rats into the river just like they have done with every main stream president to varying degrees since Ike finished his presidency.
Folks, the only things that need to be discussed by the next president are how government will address its own corruption, how we will stop printing money and creating debt even if it causes massive short term problems, how we will achieve small, less intrusive government that pulls out of all the foreign entanglements, and how the constitution will be restored in full to the citizens.
NOTHING else matters.
- Not abortion, not immigration, not same sex unions.
- All of these are mainly emotional topics.
- None of them will lead us back to health as a nation.
- That is the bottom line.
So if you voted for Obama or Romney, wake the flock up. Stop being controlled by the lame stream media. Start listening to those who had the vision and understanding of economics and history and human nature that allowed them to predict what is unfolding right now with such incredible accuracy. Ignore the stupid headlines. The news is free because it is not being done for you but rather to you.
The Free Market and its Enemies
Greg McCoach wrote a nice short article today over at Wealth Daily entitled, "The Free Market and its Enemies". I think it is worth reading, especially if you have the feeling that something is going on but you cannot really put your finger on what it is. It starts off with a perfectly true quote by the author of Atlas Shrugged"
"Every government interference in the economy consists of giving an unearned benefit, extorted by force, to some men at the expense of others."
— Ayn Rand
The truth of this statement cannot be overemphasized and IMO it must be continuously emphasized because it is so easy to forget. Government presents itself as the controller of everything. Controller of freedom, controller of prosperity and even controller of happiness in many cases. But government has nothing of its own. Everything it has was either taken from the people or borrowed in the name of the people. The only way that government can keep up this appearance is to keep up the illusion. It must keep people in the system that it does indeed control at gunpoint of police services and threat of prison.
Government's goal in all of this is to obtain something for nothing. Instead of working hard and adding value to society and to the economy, huge portions of government, as much as 70% IMO, focus on figuring out how to be an effective parasite on the rest of us. They want to possess our money without doing anything to earn it. Since money is an invention whose goal is to be a proxy for labor, government's goal, in the simplest terms, is to partially enslave the rest of us. This is not hyperbole. It is a technical statement of fact. Theft of our money, that is to say, property earned through labor, is how big government works. You really don't have any say in the taxes collected. If you don't like it they garnish your wages and/or put you in jail. Fail to pay property taxes and they send armed thugs into your home and put you out on the curb. These are facts. It's happening every day all over this once great country.
There is one huge way to protect yourself and it was Alan Greenspan of all people who explained it in clear terms before he sold out to the Federal Reserve and then became the spokesperson for the status quo banking elite. Remember, Greenspan was a friend of Ayn Rand before he turned to the dark side. In this essay, Greenspan tells us how to achieve economic freedom. Let's face it, there is no personal freedom without economic freedom. Poor people are not free. They are beholden. Only those who are not dependent on government for their living are free. This freedom gives the power of self defense and of self determination in a nonviolent mainstream (i.e. no running gun battles every day in downtown Austin TX) society.
This article is no less than riveting to any student of economics. Or at least it would be if students were ever taught this material. Instead, it lurks on the web waiting for something inside each of us to wake up, smell the trouble go looking for answers online. The whole thing is worth reading 3 times but the last two bits are of special note. Here is the first:
"If banks can continue to loan money indefinitely — it was claimed — there need never be any slumps in business. And so the Federal Reserve System was organized in 1913."
So there you have it folks, the true purpose of the Federal Reserve is laid bare by the man would would go on to lead it for many years. Forget the marketing cover story about "price stability" and "low unemployment". The fed really cannot guarantee these things. They simply sound benevolent to the ears of unenlightened sheeple. They are nothing but happy talk which are completely discounted by the facts.
The true purpose of the Federal Reserve was, is and will always be to enable its member banks to continue to loan money indefinitely. This keeps the money elite awash in a constant flow of interest payments. This is cash that they receive for doing nothing more than printing money up from thin air and doing the accounting paperwork to keep track of their monthly gains. Imagine being able to collect rent on real estate that you controlled without ever having had to work in order to purchase it in the first place. The creation of these virtual assets means that you work a real job to provide the income to people who never had anything real in hand in the first place. It is Tom Sawyer getting everyone else to whitewash his fence. It is a con, pure and simple.
The other zinger from Greenspan's essay follows:
"In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. ...The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves.
This is the shabby secret of the welfare statists' tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard."
The term "property rights" is very closely linked to "personal sovereignty" and "freedom". Slaves cannot own property. Only non-slaves can do this. Greenspan says in nearly so many words that the statist's goal is to enslave you. If there is no protector of property rights then there is no protector of freedom. It really is as simple as that. Once the middle class is wiped out and everyone is dependent on government for everything then that's when the real hardcore tyranny will show up. Government which is not controlled by the citizens will control the citizens, usually via terrorist threats of physical force, violence, fines or imprisonment.
Greenspan importantly says "If one grasps this". In other words, he does not assume this to be an easy task for mind washed, propaganda-fed masses. Greenspan is asking you to suspend disbelief in the fact that things that are happening are not random chance. There is an agenda and Obama and the RINOs have risen to become the poster boys for it.
There are only three ways out. The first is for the sheeple to wake up en masse and throw the bums out. This is much harder than it might appear because when you can finance campaigns and promise giveaways using money printed from thin air then you can buy a lot of loyalty from those who would put their personal short term interest above their long term interests to say nothing of the rest of the country. The second is for armed uprising which would be very destructive. I hope it does not come to this but the odds of it are rising with each move by Obama. The herd is very stressed and he doesn't care. He only has a couple years left to really F the country and he is going to do his best to leave his socialism legacy as a stain in the history books of America.
The third is to follow Greenspan's advice: move everything you have into gold and silver to the extent possible. This will collapse the system very rapidly. Without our assets in their banks there is no way anyone will continue to loan the US the vast sums of money need to keep the high levels of corruption going which fuel the drive toward socialism. If everyone would just go to the bank, pull all their cash out at once and buy gold and silver, the game would be over in a matter of less than 6 months. The banks would collapse, the government would collapse and we would get to re-write our future. Failure to do one of these three things will eventually result in far worse a fate. There is no painless path to recovery.
"Every government interference in the economy consists of giving an unearned benefit, extorted by force, to some men at the expense of others."
— Ayn Rand
The truth of this statement cannot be overemphasized and IMO it must be continuously emphasized because it is so easy to forget. Government presents itself as the controller of everything. Controller of freedom, controller of prosperity and even controller of happiness in many cases. But government has nothing of its own. Everything it has was either taken from the people or borrowed in the name of the people. The only way that government can keep up this appearance is to keep up the illusion. It must keep people in the system that it does indeed control at gunpoint of police services and threat of prison.
Government's goal in all of this is to obtain something for nothing. Instead of working hard and adding value to society and to the economy, huge portions of government, as much as 70% IMO, focus on figuring out how to be an effective parasite on the rest of us. They want to possess our money without doing anything to earn it. Since money is an invention whose goal is to be a proxy for labor, government's goal, in the simplest terms, is to partially enslave the rest of us. This is not hyperbole. It is a technical statement of fact. Theft of our money, that is to say, property earned through labor, is how big government works. You really don't have any say in the taxes collected. If you don't like it they garnish your wages and/or put you in jail. Fail to pay property taxes and they send armed thugs into your home and put you out on the curb. These are facts. It's happening every day all over this once great country.
There is one huge way to protect yourself and it was Alan Greenspan of all people who explained it in clear terms before he sold out to the Federal Reserve and then became the spokesperson for the status quo banking elite. Remember, Greenspan was a friend of Ayn Rand before he turned to the dark side. In this essay, Greenspan tells us how to achieve economic freedom. Let's face it, there is no personal freedom without economic freedom. Poor people are not free. They are beholden. Only those who are not dependent on government for their living are free. This freedom gives the power of self defense and of self determination in a nonviolent mainstream (i.e. no running gun battles every day in downtown Austin TX) society.
This article is no less than riveting to any student of economics. Or at least it would be if students were ever taught this material. Instead, it lurks on the web waiting for something inside each of us to wake up, smell the trouble go looking for answers online. The whole thing is worth reading 3 times but the last two bits are of special note. Here is the first:
"If banks can continue to loan money indefinitely — it was claimed — there need never be any slumps in business. And so the Federal Reserve System was organized in 1913."
So there you have it folks, the true purpose of the Federal Reserve is laid bare by the man would would go on to lead it for many years. Forget the marketing cover story about "price stability" and "low unemployment". The fed really cannot guarantee these things. They simply sound benevolent to the ears of unenlightened sheeple. They are nothing but happy talk which are completely discounted by the facts.
The true purpose of the Federal Reserve was, is and will always be to enable its member banks to continue to loan money indefinitely. This keeps the money elite awash in a constant flow of interest payments. This is cash that they receive for doing nothing more than printing money up from thin air and doing the accounting paperwork to keep track of their monthly gains. Imagine being able to collect rent on real estate that you controlled without ever having had to work in order to purchase it in the first place. The creation of these virtual assets means that you work a real job to provide the income to people who never had anything real in hand in the first place. It is Tom Sawyer getting everyone else to whitewash his fence. It is a con, pure and simple.
The other zinger from Greenspan's essay follows:
"In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. ...The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves.
This is the shabby secret of the welfare statists' tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard."
The term "property rights" is very closely linked to "personal sovereignty" and "freedom". Slaves cannot own property. Only non-slaves can do this. Greenspan says in nearly so many words that the statist's goal is to enslave you. If there is no protector of property rights then there is no protector of freedom. It really is as simple as that. Once the middle class is wiped out and everyone is dependent on government for everything then that's when the real hardcore tyranny will show up. Government which is not controlled by the citizens will control the citizens, usually via terrorist threats of physical force, violence, fines or imprisonment.
Greenspan importantly says "If one grasps this". In other words, he does not assume this to be an easy task for mind washed, propaganda-fed masses. Greenspan is asking you to suspend disbelief in the fact that things that are happening are not random chance. There is an agenda and Obama and the RINOs have risen to become the poster boys for it.
There are only three ways out. The first is for the sheeple to wake up en masse and throw the bums out. This is much harder than it might appear because when you can finance campaigns and promise giveaways using money printed from thin air then you can buy a lot of loyalty from those who would put their personal short term interest above their long term interests to say nothing of the rest of the country. The second is for armed uprising which would be very destructive. I hope it does not come to this but the odds of it are rising with each move by Obama. The herd is very stressed and he doesn't care. He only has a couple years left to really F the country and he is going to do his best to leave his socialism legacy as a stain in the history books of America.
The third is to follow Greenspan's advice: move everything you have into gold and silver to the extent possible. This will collapse the system very rapidly. Without our assets in their banks there is no way anyone will continue to loan the US the vast sums of money need to keep the high levels of corruption going which fuel the drive toward socialism. If everyone would just go to the bank, pull all their cash out at once and buy gold and silver, the game would be over in a matter of less than 6 months. The banks would collapse, the government would collapse and we would get to re-write our future. Failure to do one of these three things will eventually result in far worse a fate. There is no painless path to recovery.
Thursday, October 24, 2013
I sense a rotation into beaten down stocks. Watch DRYS.
Several years ago, I was very negative on the shares of the Wall St darling Dry Ships (DRYS). I had watched the shares go exponential and I was telling everyone who would listen that it was a mania, destined for total collapse. Even after people heard that the CEO (George Economou) famously said that American investors were "the dumbest around"suckers, people still piled into the shares hoping to make a momentum buck. And so he just continued fleecing them by making backdoor deals with other companies that he owned where DRYS would have to pay excessive amounts for questionable services. He ran the stock from well over $100 to $1 and change. I'm surprised it didn't BK.
DRYS has stayed in the $1-$3 range for a couple years now, and I haven't looked at it 3 times in as many years. But one thing I always knew was that it was reviled by many many investors not only for being such a Ponzi scheme but also because Economou is an arrogant jerk. I have seen many people go short on it out of emotions and in the hope that it will BK and they will never have to pay caps gains on their winnings. But it did not BK and in fact is slowly finished out an ending diagonal. Here's the recent chart:
I can see the 5 waves that finished it and it looks fully bottomed now. Additionally, it is now forming what I strongly believe to be a cup with handle. A cup with handle is a bullish formation where by a bowl gets formed and then a downward sloping handle is formed to the 38.2 or the 50% fib retracement (happening right now) and then it suddenly reverses and blows skyward in dramatic fashion. Here is a description of the C+H characteristics from Investopedea:
Depth - Ideally, the cup should not be too deep. Also, avoid handles which are too deep since the handles should form in the top half of the cup pattern. Volume - Volume should dry up on the decline and remain lower than average in the base of the bowl. It should then increase when the stock finally starts to make its move back up to test the old high. Retest (of old high) - doesn't have touch or come within a few ticks of old high.
Volume is one of the most important features of a C+H. It's supposed to be low volume on the left side and on the bottom and then pick up on the right wall. The chart above shows a massive volume spike as the price of the stock went from $1.65 to $4.00 in a few months. That's some pretty impressive gains. Now it is pulling back and the volume is decreasing.
So here is what you are really looking at: the 5th wave of the bear market finished and now we are seeing the start of a bull market for this stock. The 1st wave of the new bull has played out and it was a doozie in terms of percentage. Now the 2nd wave is a vee style retracement. Here's a close up of the 1st and 2nd wave action. The 2nd wave looks like an ending diagonal that could finish up in the next few days. You will know it's done when it breaks back up above the top resistance line of the down sloping "handle", especially if the reversal is on increased volume.
If this is the 1st and 2nd waves then of course the 3rd wave is next. 3rd waves are generally the strongest and never the weakest so I expect a massive percentage move upward for the 3rd wave. Note that all of this started to happen right around the time that Bernanke basically admitted he had no tapering exit strategy. This is the market's way of factoring in inflation.
What's really driving the upward volatility on these shares is the short interest. Yahoo says it's only 3% short but I highly doubt that. In some form or fashion, this thing is heavily shorted, perhaps through options, perhaps through derivatives. This kind of positive volume on a $hittsy scam stock like DRYS is not driven by normal buying interest. Something else is causing panic buying and the only thing that I know which can do that is a short squeeze of some form or fashion.
A couple more things of note:
DRYS has stayed in the $1-$3 range for a couple years now, and I haven't looked at it 3 times in as many years. But one thing I always knew was that it was reviled by many many investors not only for being such a Ponzi scheme but also because Economou is an arrogant jerk. I have seen many people go short on it out of emotions and in the hope that it will BK and they will never have to pay caps gains on their winnings. But it did not BK and in fact is slowly finished out an ending diagonal. Here's the recent chart:
I can see the 5 waves that finished it and it looks fully bottomed now. Additionally, it is now forming what I strongly believe to be a cup with handle. A cup with handle is a bullish formation where by a bowl gets formed and then a downward sloping handle is formed to the 38.2 or the 50% fib retracement (happening right now) and then it suddenly reverses and blows skyward in dramatic fashion. Here is a description of the C+H characteristics from Investopedea:
Depth - Ideally, the cup should not be too deep. Also, avoid handles which are too deep since the handles should form in the top half of the cup pattern. Volume - Volume should dry up on the decline and remain lower than average in the base of the bowl. It should then increase when the stock finally starts to make its move back up to test the old high. Retest (of old high) - doesn't have touch or come within a few ticks of old high.
Volume is one of the most important features of a C+H. It's supposed to be low volume on the left side and on the bottom and then pick up on the right wall. The chart above shows a massive volume spike as the price of the stock went from $1.65 to $4.00 in a few months. That's some pretty impressive gains. Now it is pulling back and the volume is decreasing.
So here is what you are really looking at: the 5th wave of the bear market finished and now we are seeing the start of a bull market for this stock. The 1st wave of the new bull has played out and it was a doozie in terms of percentage. Now the 2nd wave is a vee style retracement. Here's a close up of the 1st and 2nd wave action. The 2nd wave looks like an ending diagonal that could finish up in the next few days. You will know it's done when it breaks back up above the top resistance line of the down sloping "handle", especially if the reversal is on increased volume.
If this is the 1st and 2nd waves then of course the 3rd wave is next. 3rd waves are generally the strongest and never the weakest so I expect a massive percentage move upward for the 3rd wave. Note that all of this started to happen right around the time that Bernanke basically admitted he had no tapering exit strategy. This is the market's way of factoring in inflation.
What's really driving the upward volatility on these shares is the short interest. Yahoo says it's only 3% short but I highly doubt that. In some form or fashion, this thing is heavily shorted, perhaps through options, perhaps through derivatives. This kind of positive volume on a $hittsy scam stock like DRYS is not driven by normal buying interest. Something else is causing panic buying and the only thing that I know which can do that is a short squeeze of some form or fashion.
A couple more things of note:
- The target price for C+H breakout is to add the depth of the cup to the breakout point. If that happened today, the 3rd wave would take the chart to $5.50. Another thing to note is that 3rd waves tend to move quickly and with gaps. Thus, the gains will be quick and you can move your money out after the 3rd wave peters because 4th waves go sideways for awhile.
- You might wonder why I would even consider "investing" in a company that I know to be run by a dirt back elitist $hithead of a man who has a demonstrated disrespect for those owning his shares. The answer is simple: this guy is the same as all the rest. He's just more honest about it. The others laugh at you behind closed doors while drinking expensive scotch and smoking Cubans. At least Economou pretty much tells people what he thinks. Besides, buying stocks of ANY KIND that does not pay a sustainable dividend is by definition gambling, not investing. "Investing" is just completely overused by Wall St. so that good conservative people won't catch onto the scam so quickly.
- I find that Elliott Waves jibes very nicely with legacy technical analysis. Things like C+H can easily be explained and predicted using the EW principle. It's just two different ways of remembering that the herd moved in a certain way many times before leading to a rise or fall in share prices.
Wednesday, October 23, 2013
NFLX has likely peaked.
In this last post on NFLX, I rejiggered my EW model slightly under the assumption that I was off the count by 1 rail bump.
Today's chart looks like this updated model is now playing out. Note that the thin green line was the chart model prediction from the last post. This will become obvious if you click on the back link to the prior NFLX post that I provided above.
I hope this chart shows people that the value of a stock could be $1000 or $10 because it's all vapor, blue smoke and mirrors. There is no value in NFLX shares except what a greater fool will pay. This is true because it pays no dividend and likely never will. Unfortunately, most of the stock market operates like this. Thus, an 80-90% Dow or S+P crash is easily possible because 90% of the market cap of the stock markets is unsupported by anything even semi tangible like a dividend.
This is how everyone who foolishly has all of their retirement money in the system is most likely going to get a wake up call that they have been a patsy for the last 40 years. The markets will crash and they will not recover in the boomer's lifetimes simply because there are no greater fools with means to buy their worthless stocks from them. I repeat: trading might be fun but long term ownership of stocks is a scam. Physical gold and silver bullion coins are the only real way of saving anything for the long term that has ever been proven safe and effective. They can never go worthless like stocks can unless we get a Mad Max world in which case I hope you have some food, guns and ammo in your portfolio. Fortunately I only see a 5% chance of that happening. But it's also not zero percent...
Today's chart looks like this updated model is now playing out. Note that the thin green line was the chart model prediction from the last post. This will become obvious if you click on the back link to the prior NFLX post that I provided above.
I hope this chart shows people that the value of a stock could be $1000 or $10 because it's all vapor, blue smoke and mirrors. There is no value in NFLX shares except what a greater fool will pay. This is true because it pays no dividend and likely never will. Unfortunately, most of the stock market operates like this. Thus, an 80-90% Dow or S+P crash is easily possible because 90% of the market cap of the stock markets is unsupported by anything even semi tangible like a dividend.
This is how everyone who foolishly has all of their retirement money in the system is most likely going to get a wake up call that they have been a patsy for the last 40 years. The markets will crash and they will not recover in the boomer's lifetimes simply because there are no greater fools with means to buy their worthless stocks from them. I repeat: trading might be fun but long term ownership of stocks is a scam. Physical gold and silver bullion coins are the only real way of saving anything for the long term that has ever been proven safe and effective. They can never go worthless like stocks can unless we get a Mad Max world in which case I hope you have some food, guns and ammo in your portfolio. Fortunately I only see a 5% chance of that happening. But it's also not zero percent...
GDX Update
Here is a back link to my first post in the GDX series. The model suggests that the GDX ETF has bottomed and is now getting ready to break out. Notice how I purposely drew a double line up. This is my notation for indicating that the move up will likely happen within a range instead of me saying that the move up is currently under way.
Below is the real time chart. Since my last post it has put in another short term inclining double bottom which, if you were to turn it upside down, you would recognize to be a pair of owl ears. This formation is very bullish in the current market cycle. The formation is not historically always such a strong indicator as it has been over the past year. I find that the market tends to rotate it's emphasis on different technical indicators as if to keep most people in the dark, playing by the old rules while those who have the decoder ring (perhaps distributed at Bilderberg meetings) are clued in on what to look for. Yeah, I know, it sounds conspiratorial but most trading is done by computers now and so implementing this would be pretty easy. Just a tweak to the algorithm parameters and double tops are critical whereas head and shoulders are only minor technical indicators. If it sounds outlandish then you might be a sheeple. In fact, if I were a useless elite I would be sure to implement this system in order to fleece the heck out of you.
But I digress. The double bottom below has a high probability, > 80% IMO, of powering a breakout from the down trending top resistance line. When it happens, it will probably occur with gusto. All the factors are in place. Gold miners have just finished prepping for a collapse in gold prices by cutting staff at HQ, shutting down mines that are not high yielding and hedging their gold production again. In other words, they think that government manipulation of gold prices is going to continue to overpower market forces. It is human nature to give up near the bottom, to capitulate. This is why persistence pays - it is a rare commodity among the human species. The smart traders wait until it looks like everyone else has capitulated and then they buy while there is blood in the streets.
A break below the lower support line will negate this bullish view and give cause to revisit the chart to better understand what the herd is doing. I only give 20% chance that that will happen. I think that this last small wave down was a failed E wave of an ending diagonal. GDX @ ~25 is most likely going to look cheap soon. What I really like about this kind of trade is that fairly tight stop loss can be set. Only a couple bucks down, if it should occur, will debunk the model. If the model is discredited, a rethink should occur. We will know soon enough on this one.
Here's a close up of the recent action:
Below is the real time chart. Since my last post it has put in another short term inclining double bottom which, if you were to turn it upside down, you would recognize to be a pair of owl ears. This formation is very bullish in the current market cycle. The formation is not historically always such a strong indicator as it has been over the past year. I find that the market tends to rotate it's emphasis on different technical indicators as if to keep most people in the dark, playing by the old rules while those who have the decoder ring (perhaps distributed at Bilderberg meetings) are clued in on what to look for. Yeah, I know, it sounds conspiratorial but most trading is done by computers now and so implementing this would be pretty easy. Just a tweak to the algorithm parameters and double tops are critical whereas head and shoulders are only minor technical indicators. If it sounds outlandish then you might be a sheeple. In fact, if I were a useless elite I would be sure to implement this system in order to fleece the heck out of you.
But I digress. The double bottom below has a high probability, > 80% IMO, of powering a breakout from the down trending top resistance line. When it happens, it will probably occur with gusto. All the factors are in place. Gold miners have just finished prepping for a collapse in gold prices by cutting staff at HQ, shutting down mines that are not high yielding and hedging their gold production again. In other words, they think that government manipulation of gold prices is going to continue to overpower market forces. It is human nature to give up near the bottom, to capitulate. This is why persistence pays - it is a rare commodity among the human species. The smart traders wait until it looks like everyone else has capitulated and then they buy while there is blood in the streets.
A break below the lower support line will negate this bullish view and give cause to revisit the chart to better understand what the herd is doing. I only give 20% chance that that will happen. I think that this last small wave down was a failed E wave of an ending diagonal. GDX @ ~25 is most likely going to look cheap soon. What I really like about this kind of trade is that fairly tight stop loss can be set. Only a couple bucks down, if it should occur, will debunk the model. If the model is discredited, a rethink should occur. We will know soon enough on this one.
Here's a close up of the recent action:
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