For European people that have any kind of money at all, the gun has been cocked and it is now being held to their head. We see the truth of it in this recent link provided by reader Augustine in which Portugal confiscated $2bn of bonds from the bondholders of Banif bank. What I found important here were two things:
1) The government is done bailing out banks. Bankers got away with that the first time around but but now, and I mean globally, there is no political will to dump these dead banks onto the backs of the taxpayer. By the way, politicians have no "will". All they have are polls. If they take the pulse of the people and believe they can get away with thus or such without being thrown out of office (or worse), then they do the self serving thing. But if they determine that being a scum bag will incur a high chance of being dragged into the street and killed then, and only then, do they do the right thing. A government which is not afraid of its people is a sign of unhealthy political control. A healthy government has no will of its own, it simply reflects the will of the people and the people are done with bailing out corrupt banksters.
2) This move had to be done in a hurry in order to beat the new bail in laws which arrive in 2016. These new laws essentially enforce the truth of what I have been saying all along - that depositors are going to be held accountable for the losses of their banks. They will be treated as investors and their accounts will in fact be seized in order to repay the bail out loans that occurred earlier. The article states, "When BES was bailed out, senior bondholders and depositors were
protected while junior debtholders and anyone stuck with the equity
were, well, screwed. As was the case with Banif, if Portugal had waited
until the new year dawned, uninsured depositors would have been at risk
in any attempt to shore up Novo’s books ahead of a plan to restart the
auction process."
I guarantee you that in 2016 we will see many depositors in Europe's banks get bailed in. Why? Because the debts must be paid by someone and those who pay will be those with the ability to pay. The article talks about risk in uninsured deposits but do you think that Directive 94/19/EC of the European Parliament (i.e. the European equivalent to US FDIC) can cover all the losses? Really? That is just not possible because it would mean that enough money had been set aside to make all depositors under the limits whole. What is far more likely is that such monies have been INVESTED in so called safe investments OR they have been used to buy insurance policies that will pay off the legal amounts if collapse occurs. Like the FDIC, the European depositors have no real guarantees, they have paper promises of them. Good luck with that. Banks pay no interest and so there are few good reason to keep your money in them and many good reasons to find other secure ways to store your cash where there is not some criminal standing between you and your money.
Government promises mean nothing. The governments of the world have been captured by the Mammon Money system and are thus corrupted by it. Governments are bankrupt and so where do you think they will get money from in order to pay promises made to you? Not from me, that's for sure. Not without a battle.
Thursday, December 31, 2015
Wednesday, December 30, 2015
Mish: "Greece was a side show"
Over the past 18 months I have seen Mish slowly but assuredly grow more and more negative in his economic views. The data is piling up and the conclusion is that global levels of debt are unsustainable. In other words, we are in the end days of a global debt Ponzi, just as I have been writing for years now. Mish is now looking at the slow motion collapse of Italian banks, which he (and I) believe is inevitable, and has now issued the same warning to Italians as he did in the past for Cypridiots and Greeks,"Get your money out of Italian banks now!". Sooner or later, the people of the world are going to be reminded the hard way that bank deposits OF ANY KIND are legally viewed as an investment in the banks.
I feel sorry for the victims of this scam like the quoted Italian man in the article who said, “They stole it all, I’m living on the edge”. Too bad he didn't read my blog because I have been telling everyone in the world no matter where they live that the Ponzi collapse will come as a chain reaction with the marginal players getting hit the worst and the first.
The idea that a bank account is "savings" is a fabrication just as having retirement "savings" in the 401k-driven stock market are savings. It APPEARED to be true for a long time and so people forgot the underlying economic truths and listened to the good-sounding bullshit instead. People will be learning the very hard way over the next 10-20 years that:
- No paper asset is savings. Paper is not an asset. It is a CLAIM TICKET on an asset.
- All stock accounts, bank accounts, bonds and other paper investments are GAMBLING. They are the pursuit of something for nothing. I'm not saying this is a bad thing but I am saying that few people see the blunt truth of it. I only have a small portion of my net worth in the stock market folks and I believe that my physical metals holding are a hedge against a market collapse that could BK my broker and evaporate my account. In that case gold and silver physical metal will rise rapidly in value because they are real and all paper will become untrusted in a broad market collapse.
- Putting paper money in your home safe is much safer than handing it to someone else and asking them not to screw you over but at the end of the day the fake paper currency will lose its value as well. Paper money is not savings either.
Gold metal in hand is savings.
Silver metal in hand is savings.
Modern weapons and bullets are savings.
Nonperishable food is savings.
A paid off house is good capital.
All of these things will sustain your life and your lifestyle when the fake, liberal world made up of Wimpy Promises implodes of its own corrupt weight. That's what makes them real savings.
Today Mish is warning of Italian banks but soon enough it will be Spanish banks and then French banks and yes folks then it will be German banks. A loooong time before anyone was talking like this, I was warning that in the end days of the global debt Ponzi it would be discovered that French and German banks were in fact no less of PIIGS than Greeks.
I strongly urge all new readers to take a few minutes and read this 2011 post of mine for clear understanding. What I wrote there is economic truth, pure and simple, completely devoid of the typical mainstream sophistry and bullshit whose only possible purpose is to obfuscate the facts.
Even today many brainwashed people will argue these concepts with me from an emotional perspective which is akin to "CNBC and the governments of the world say that exports drive economies so you, Captain, are an idiot". Those who I get this kind of feedback from can never debate the logic that I present. That is not how herd think works! Herd think assigns leadership to a few individuals and then blindly follows what those few say, repeating what they say without considering the logic of it. Herd logic is always that some infallible higher authority has said it and thus it must be true. As I have postulated before, I think this is a form of information compression at the societal level which is why it is so difficult to get those who operate under it to think clearly - they have essentially delegated their thinking to some herd icon on the matter so that they can spend their time playing fantasy football and doing other equally unproductive things.
Like any Ponzi collapse, the debt Ponzi collapse will be exponential in nature. It starts slow with spider cracks but at some point the structural integrity just gives way. Remember folks, the global economy is a debt Ponzi, no Ponzi ever ran forever, and no, it won't be different this time.
I feel sorry for the victims of this scam like the quoted Italian man in the article who said, “They stole it all, I’m living on the edge”. Too bad he didn't read my blog because I have been telling everyone in the world no matter where they live that the Ponzi collapse will come as a chain reaction with the marginal players getting hit the worst and the first.
The idea that a bank account is "savings" is a fabrication just as having retirement "savings" in the 401k-driven stock market are savings. It APPEARED to be true for a long time and so people forgot the underlying economic truths and listened to the good-sounding bullshit instead. People will be learning the very hard way over the next 10-20 years that:
- No paper asset is savings. Paper is not an asset. It is a CLAIM TICKET on an asset.
- All stock accounts, bank accounts, bonds and other paper investments are GAMBLING. They are the pursuit of something for nothing. I'm not saying this is a bad thing but I am saying that few people see the blunt truth of it. I only have a small portion of my net worth in the stock market folks and I believe that my physical metals holding are a hedge against a market collapse that could BK my broker and evaporate my account. In that case gold and silver physical metal will rise rapidly in value because they are real and all paper will become untrusted in a broad market collapse.
- Putting paper money in your home safe is much safer than handing it to someone else and asking them not to screw you over but at the end of the day the fake paper currency will lose its value as well. Paper money is not savings either.
Gold metal in hand is savings.
Silver metal in hand is savings.
Modern weapons and bullets are savings.
Nonperishable food is savings.
A paid off house is good capital.
All of these things will sustain your life and your lifestyle when the fake, liberal world made up of Wimpy Promises implodes of its own corrupt weight. That's what makes them real savings.
Today Mish is warning of Italian banks but soon enough it will be Spanish banks and then French banks and yes folks then it will be German banks. A loooong time before anyone was talking like this, I was warning that in the end days of the global debt Ponzi it would be discovered that French and German banks were in fact no less of PIIGS than Greeks.
I strongly urge all new readers to take a few minutes and read this 2011 post of mine for clear understanding. What I wrote there is economic truth, pure and simple, completely devoid of the typical mainstream sophistry and bullshit whose only possible purpose is to obfuscate the facts.
Even today many brainwashed people will argue these concepts with me from an emotional perspective which is akin to "CNBC and the governments of the world say that exports drive economies so you, Captain, are an idiot". Those who I get this kind of feedback from can never debate the logic that I present. That is not how herd think works! Herd think assigns leadership to a few individuals and then blindly follows what those few say, repeating what they say without considering the logic of it. Herd logic is always that some infallible higher authority has said it and thus it must be true. As I have postulated before, I think this is a form of information compression at the societal level which is why it is so difficult to get those who operate under it to think clearly - they have essentially delegated their thinking to some herd icon on the matter so that they can spend their time playing fantasy football and doing other equally unproductive things.
Like any Ponzi collapse, the debt Ponzi collapse will be exponential in nature. It starts slow with spider cracks but at some point the structural integrity just gives way. Remember folks, the global economy is a debt Ponzi, no Ponzi ever ran forever, and no, it won't be different this time.
Government criminals never do anything until they fear the people.
It didn't take long after I wrote that, "...Ralm does not want to step down just because a couple of useless eaters
died and so he is going to have to do something in order to prevent the
people from stepping him down" for Mr. ChiTown con man to suddenly care about putting TASERs in the hands of cops. You can read about it here.
The Chicago police have killed many people without so much as batting an eye and so the thinking person has to wonder why change is suddenly happening. It's not like Chicago just has millions in cash sitting around waiting to put to good use. The city is as bankrupt as they come. So this expense is clearly not something Emanuel would rather take on. But after showing that he doesn't give a $hit about the people of the city one time too many the people suddenly started threatening his job. And so the useless elitist liberal Ralm Emanuel finally moved his ass to do something about the ongoing issue of police murdering the citizens.
This is a clear sign that liberalism is on the run IMO. You will likely begin reading more and more conservative quotes around the web such as the following:
Alan Moore — 'People shouldn't be afraid of their government. Governments should be afraid of their people.'
These old truths have been all but forgotten but they are going to make a big comeback in the coming years. Many people actually began to believe that government had gotten so big that it could not be controlled. BALDERDASH! That is like watching a worthless stock like Amazon run to jokishly high valuations and believing that it is somehow normal or sustainable. It's herd-think to believe in these things. The people have all the power in society. The great con is to make they believe otherwise.
The Chicago police have killed many people without so much as batting an eye and so the thinking person has to wonder why change is suddenly happening. It's not like Chicago just has millions in cash sitting around waiting to put to good use. The city is as bankrupt as they come. So this expense is clearly not something Emanuel would rather take on. But after showing that he doesn't give a $hit about the people of the city one time too many the people suddenly started threatening his job. And so the useless elitist liberal Ralm Emanuel finally moved his ass to do something about the ongoing issue of police murdering the citizens.
This is a clear sign that liberalism is on the run IMO. You will likely begin reading more and more conservative quotes around the web such as the following:
Alan Moore — 'People shouldn't be afraid of their government. Governments should be afraid of their people.'
These old truths have been all but forgotten but they are going to make a big comeback in the coming years. Many people actually began to believe that government had gotten so big that it could not be controlled. BALDERDASH! That is like watching a worthless stock like Amazon run to jokishly high valuations and believing that it is somehow normal or sustainable. It's herd-think to believe in these things. The people have all the power in society. The great con is to make they believe otherwise.
[GLD] update
The model from the backlink is below and the portion circled in blue suggested that wave D of a HT would likely unfold.
It's not clear to me from the current snapshot below if all of D has completed so I will look for an AM sell off to buy something golden into in anticipation of a mid day reversal. A move lower than red B busts this model and says that black 4 is already in and black 5 is unfolding.
Folks this is an exciting time IMO. There have been no M+M rallies since 2011 such as the one that is likely going to unfold when black 5 finally terminates.
BE READY.
Be patient.
The bear is long in the tooth. Stalk it down. Bear markets never last forever and sentiment against gold has never been so extreme. All that will change in an eyeblink, probably sometime in January and for some new "fundamental" reason the CNBC pulls out of its ass.
It's not clear to me from the current snapshot below if all of D has completed so I will look for an AM sell off to buy something golden into in anticipation of a mid day reversal. A move lower than red B busts this model and says that black 4 is already in and black 5 is unfolding.
Folks this is an exciting time IMO. There have been no M+M rallies since 2011 such as the one that is likely going to unfold when black 5 finally terminates.
BE READY.
Be patient.
The bear is long in the tooth. Stalk it down. Bear markets never last forever and sentiment against gold has never been so extreme. All that will change in an eyeblink, probably sometime in January and for some new "fundamental" reason the CNBC pulls out of its ass.
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