Shenandoah

Blundering into History

September 18, 2007 on 8:51 pm | In Old Posts |

Well gang, he “did it” and validated what many of us suspected. This is no longer a nation of the people, by the people and for the people. It’s by the banksters, for the banksters and to sell your soul to the banksters. Ignoring the massive orgasm occurring on Bubbleivision as I write this, start dissecting what happened in the markets today. I went to the so called superstocks that Bubblevision loves, the financials, and started looking at numbers. Hmmm. Not so hot. Oh, yes, they were up. But did I see record volume numbers? Not really and nothing to get excited about. So I said, hmmm, what about the homebuilders?Nah, nothing exciting there other than HOV getting a reprieve from the executioner. So why is this so exciting, so stimulating, so historic?

The dollar was just taken out and shot. The USD Index futures are at 79.09 as I write this. Gold is at a 27 year high. The Loonie is practically at par. And the problems are just about to begin. The foreigners can not be pleased that their bond holdings were trashed, that their short term investments and dollars in their vaults (virtual that is) were just trashed. And it showed with the 30 year bond yield closing today at; yup, 4.75%, same as the new Fed target. The 10 year yield stalled out around 4.50%. Where will we be heading? First and foremost, as I’ve written in the past, welcome to “Weimarica” as we just flail along with rising prices and stagnant assets. It will take about a year for the foreigners to liquidate what assets they elect to into our markets. The real inflation numbers should soon start to exceed 2% on the real measurements of CPI-U and not the garbage we get as the “core” or most important numbers.  There is no way this will hold and the consequences of this inflationary move is unbelievable. Gold is not lying. With prices well over $725 now, there is a new floor for which it can now climb way up and past $800 and in all likelihood the foreigners will sell their bonds and start buying gold in huge blocks. I figure the old highs are about to be blown up before the year is out now and if Israel or the US elects to take out Iran, $1000 will be cheap for the yellow metal. The XAU appears to be quietly confirming the move. As we progress forward, that might be an index to watch as 180 is in view.
In 60 days, look for the full impact of this decision today at your grocery store and Wally World, just in time for Christmas. I figure now the ChiComs will take an economic action against us to get back at us for this move. The Arabs are not going to just “take” this lying down either. I look for the GCC to create their oil and gold backed currency before the year end now. The events that this blunder started will take months to unfold, but remember; one terrorist act or one act of war and all bets are off.

May we live in interesting times, indeed.