By John Galt

September 29, 2009

As I was driving over to one of the other craters in the Florida real estate landscape, the East Coast, I was able to listen to the Glenn Beck show and reflect upon the news he was almost aghast to read and reveal as he chattered in his usual manner. The story that was emblazoned upon the front page of Drudge when I was awake some sixteen hours ago about the honor student being brutally murdered in Chicago by thugs, the story of the next group of school children singing praise to Obama, and the story of the mock prayer to Obama gave me a chilling feeling.  This feeling was one that our nation had taken a significant turn, one that we may not recover from.

With that being established, I will now answer the emails from the past week. I have not abandoned this blog yet, although I have considered it or moving it exclusively to the message boards I have posted on for years. The week was spent listening, reflecting, praying and hoping that the path our nation has chosen is reversible, that the groups who claim that political change will reverse the course is still possible. Alas, I must respectfully disagree with my friends in pursuit of freedom. This is not an entry about the movements, the politicians,  or our future. The week was used to reflect on the past, to determine where the future may lead for myself and our nation in my opinion. I do not wish to bore my readers with the personal concerns, this is the time to reflect on the nation and the danger we are now in.

The American people have had it pretty good for the past twenty-five years. We restored our nation’s honor. We defeated the Soviet Union under the leadership of a true patriot, Ronald Reagan.  America absorbed major body blows in 1987, 1990-91, 1997 and 2001 via economic conflagrations which would have destroyed a weaker nation yet we did not learn from those experiences and in fact magnified the mistakes by layering greater and greater leverage on to an economy in desperate need of a reset. The moral errors of the period have also been ignored. We honor criminals like O.J. Simpson with 24/7 car chases, glorifying rioters in thugs in Los Angeles, and paying homage to criminals by begging for leniency or pardoning them for their horrific actions. The worst aspects of our path over this period is a duplication of almost maddening proportions as America elected to expand on the vulgarities of Caligula by normalizing the obscene and denigrating the norm. All the while we witnessed and heaped scorn on the “traditionalist” religious points of view and origins of our nation. We wished to modify the religious texts of our history instead of honoring them while changing our history to accommodate the perversions of our modern era. If we did not like the end result we deleted the information on our heroes or made their negative character traits the primary exhibits of their accomplishments, denying the proper honor for the sacrifices so many have made.

There are some who will proclaim my opinion as that of a rabid Obama hater. The ignorant who have not read my entire body of work nor elected to actually read the details and ponder every word usually attack without thinking. This is beyond Obama. This is something that started as not so  innocent experiment to guarantee greed and avarice and has since turned into a vile attempt to corrupt a nation via financial and moral bankruptcy to enslave its citizens for decades to come. What we have witnessed with the praise and preaching to our President and attack of an innocent child in Chicago is the culmination of what we swore we would never become and never feared as it could never happen here.

It has happened.

We have fallen.

Pray for forgiveness.

by John Galt

September 22, 2009

“So honey, how did  your radio show and day go today?” the lovely Mrs. Willis asked as she always does as the family sits down for dinner. To the surprise of her husband though, the deeply concerned look on her face gave away the motives behind the question. “Ah sweetheart, are you really that worried about all of the public reaction to what I have been saying? I mean heck, I’m down to 450 stations or so and we still have the right to free speech” Tom replied with his usual comforting tone, despite his eyes giving away his deep concerns also. “Yes Tom, I am worried. Today my cell phone rang more than four times with an unknown caller in the display and every time I answered it, someone hung up on me. I know this number is private so I am getting very worried” Ann replied, her eyes slightly red from crying earlier. “Don’t worry baby, I will have Frank pick up a new phone for you tomorrow morning with a new number and you will be fine.  It’s just that the talk radio format is going through some changes and the nutcases are everywhere now.

Let’s just relax and enjoy another Monday evening together. After dinner, there’s a great Monday Night Football game between Chicago and A…..” and just as Tom Willis, famous talk show host under another name was finishing that sentence, the lights went out in his house and the emergency lights clicked on. Suddenly while Tom was getting up, windows shattered in the dining room and tear gas filled the room. “Ann, grab Toby, I’ll get Cindy, back door, NOW!” he screamed as the choking fumes filled the room. Without hesitation they reached the back door and Tom put his daughter down to grab his pistol in the drawer at the vanity by the door. As he stepped outside  he stumbled over his dead bodyguards and dropped his pistol. Before he could finish the word “Why” two rounds  hit him square in the forehead killing him. The last thing he ever saw being his dead bodyguards, wife and children in his own back yard.

THE NEWSPAPER HEADLINES THE NEXT MORNING:

NATIONALLY SYNDICATED TALK SHOW HOST AND WIFE ARRESTED FOR RUNNING CHILD PROSTITUTION RING; NO BAIL

As the National Anthem finished playing and both teams started jumping up and down ready to start the game, the fans in Chicago were ready for this key game early in the season when suddenly the Public Address Announcer blared out:

“The National Police have determined that it is unsafe for anyone to assemble at any public events. All sporting events, motion picture showings, plays or assemblies are canceled until the terror threat has subsided. We apologize for this inconvenience and hope to resume the NFL season at a later date and time when it is safer for the public.”

Frank, sitting up in the nose bleed section with the hard core fans was in a state of shock. The players were escorted off of the field by almost two hundred officers and the fans started to get restless, booing and throwing popcorn and beer at stadium officials and workers. What disturbed Frank more was the sudden appearance of hundreds if not thousands of heavily armed State and National Police in the stands. “Bill, let’s head on out of here, I don’t like the looks of this” Frank yelled in his ear and Bill chugging his beer shook his head as they started the long trek to the exits. As they approached the gate to get out, the line for some reason was absurdly long.  “Now what?” Frank yelled at Bill and he replied “Maybe they think the ragheads like the Bears!” he screamed back in the din of shouting and upset fans.  As he got closer to the line, he saw a guy running suddenly to get past the guards and as whoever the nut was he found out how Tasers work and they hit him at least seven times. “I wonder why that moron ran?” Bill asked and Frank just shrugged his shoulders.

When they got to the front of the line there were six NP’s (National Police) standing around a table with two unarmed State Policemen. They took both of us at the same time and started the survey:

Name, age, eye color, home address, name of spouse, names of children, etc.

Then they asked each of them for the driver’s license to validate what they could. After that the State Police said please put your right thumb and right index finger on the ink pad and press them here.  At that point Fred paused and asked “Why do you need my fingerprints? I do have rights here still don’t I?” The apparent lead NP, hand on the pistol on his hip replied “Yes, you do have rights but tonight they are suspended until all of the suspects are rounded up.”  Fred complied as did Bill, both angrier by the minute when the final question was asked by the State Policeman “How many firearms do you own?” Fred look puzzled and replied “Uh, three sir. Why?” At that point one of the NP’s moved towards him and said please come with me sir.” Fred was now terrified as he walked away and Bill was being wrestled  to the ground and beaten after taking a swing at one of the guards. “What the hell did I answer wrong?” he wondered to himself as the plastic seal handcuffs numbed his fingers.

THE NEWSPAPER HEADLINES THE NEXT MORNING:

3,896 ARRESTED FOR FIGHTING POLICE, DRUNK AND DISORDERLY CONDUCT AT CANCELED BEARS GAME

One state away at a Cabela’s Sporting Goods store in Indiana, the alarm was blaring away as the National Police began the process of securing and hauling all of the ammunition and firearms out of the store into several National Guard vehicles. The manager for the store arrived in a horrified state of shock, watching this, then keying the code in to silence all of the various alarms. “Sir, what is happening here?” he asked a Captain with the Guard who replied “Ask the Regional Major over there sir, we are here to secure only.” The RM’s were the regional officers assigned to several counties in each state with oversight of the activities of the National Police for that region and they tended to behave with a heavy hand. The RM looked over at the store manager and before one word was uttered shoved a piece of paper titled “Declaration of Emergency Conditions and Nationalization Act of November 2010″ then said to him in an authoritative tone “Read it, prepare to sign it and I will swear you in after we inventory the weapons and ammunition.”

The store manager lost it at that point, sat down on the curb with the single sheet of paper and started bawling like a baby.

THE NEWSPAPER HEADLINE THE NEXT MORNING:

TERRORIST WEAPON STOCKPILES SEIZED NATIONWIDE

For those that follow my “Prepetorial” series, you would recognize that obviously the above sections are total fictional. The scary thing is that we may soon be approaching a time where once again, truth is stranger than fiction. If one were to propose such a scenario in 1999, I might have called that insane and crazy by any stretch of the imagination. The horrifying prospect though is that once the reigns of power are seized completely, there is nothing to stop a strong centralized government that wishes to impose a single, swift stroke that usurps the Constitution and engages in some of the outrageous examples exhibited above.

So why the title of “Silence is Golden” for a Prepetorial like this?

Think about your neighbors, your friends, your cohorts and coworkers. Do you ever remember hearing them discuss the news events of regulatory agencies in Washington, DC or your own state capitol? Do you ever notice that the mainstream media deliberately obscures news from around the world and nationally for events that are important but too violent or against their goals and objectives? Do you ever notice that everything you read, see or hear now is being filtered IF you only depend on the mainstream media and newspapers for information?

The video “The Story of Stuff” being circulated around our schools and churches (over 7000 according to Glenn Beck) is a shocking display of the audacity of the new Marxist movement ruling our nation now. The subject matter is of no shock to anyone who stays aware. Who seeks out what is left of the alternative media. Who thinks for themselves. The scary part is that now, more than ever, your children, our neighbors, our friends are being indoctrinated into a subculture of “we must do what is good for everyone or the nation will perish” instead of the ideas of our Founding Fathers, of a strong family, personal initiative and enforcing and protecting our God given freedoms. The path we are on now all ties together and the shift in America’s path is no longer guaranteed to be one of the ideals most of us grew up with.

Thus why silence is golden to the powerful. They wish to dictate the news, the flow of opinion and the rights to protect yourself from their ideas, their minions, their foot soldiers. The day and time will come where they seize power in a Krystalnacht type of exercise based on a trumped up event or allowing a real “man made disaster” as they call it to occur. I no longer think that it is a time to say if but when. The new structure of our government at every level is no longer there to protect and serve the people, but to protect and serve an idealism, a religion of man not God, and to resurrect a failed system with a new name and goal to preserve centralized control from now on.

At some point in time, which all of the readers here will realize, the time will come to go dark. We are not there yet. But to prepare for that eventuality will be the most difficult decision of your life. You must get right with God, understand the dangers involved and be prepared to suspend friendships and trust within your inner circle if they are willing to work with the new authorities “for your own good” as the saying goes. You will be alone at first. You will be hunted. You will be viewed as the walking dead. You will be given no quarter.

Accept those facts, prepare and you may live. But if you fail or are one of the unfortunate in the coming years, remember this old adage:

It is better to die on your feet than to live on your knees.

By John Galt

September 21, 2009

This one chart that I watched on Friday night told me the story and I think you will see a dollar bounce back up over the next 5-7 trading days:

The gap will be filled on that chart as there is a high dollar bet on this bounce and the gap on the USD Index will also be filled:

That should bring the index back up to the 78.00 to 78.25 level test the 50 day moving average as now the upper level resistance and then roll over again and attempt to test the lows of 2008. A failure to fill this gap now would be a disaster for the dollar in the short term and could case an even faster breakdown in the dollar despite central bank intervention.

Gold should also retrace some of its gains as it is overbought at this point in time:

As you can see in this one year chart above, gold based on the GLD ETF could easily drop down and test the rising 50 DMA then after that resume its move upwards to the next area in the breakout above $1050 ($104 on the ETF roughly).  This will be a turbulent week for commodities, equities and the bond markets as indicated by the money flows continuing to pile billions into the 1 and 3 month Treasuries.

by John Galt

September 16, 2009

As usual the CPI report was heralded for the headline numbers and how the “core” rate is what really mattered. Well, I’ve always been the contrarian so let us take a look at the things you use and need to survive instead of the core price so we can get some idea how the inflation is impacting real people and not the Core-A-Nistas whoever and whatever they are as I wouldn’t want to eat dinner at their homes.

Each graph is from data extracted from the CPI-U Table 1 data and is a comparison of rate of change year over year. While you pour over this, I think I shall search for some desert to consume before the prices go up again.

Thankfully food prices have moderated considerably but keep in mind that with the lower commodity prices, the stress on the domestic family farms has increased and you will see this roll over and start to increase dramatically next year.

The appearance of a stabilizing in some areas with regards to housing prices has allowed the cost of shelter to plateau and this rate of change should remain constant for a while until the monetary expansion hits Main Street in full or the government elects to support landlords via government subsidies.

Even though natural gas has had the largest impact on this, the utilities are seeking massive price increases nationwide to compensate for the sagging commercial sector. As the threat of cap and trade moves into the marketplace in 2011 (because I think it passes) this will become a constantly expanding expense in the future with prices increasing monthly.

There’s what happens when you have an economic contraction of this severity. This is the good news we needed to survive this but the minute we see a war break out in the Middle East watch out for a severe change in prices.

The lesson from above? To save money, flush once per day and don’t drink that much water.

The only thing you need to know is that learning how to sew might save you a buck or two.

Or join a nudist colony.

Thank goodness for Teacher’s unions. And bureaucrats. And college professors. You get so much with this constant year over year price increase:  Indoctrinated liberal mind numbed idiots that you have to pay for to learn how to love Marx then spend as much money in therapy to de-program them.

Don’t get sick. Support Obama’s health initiatives. Voila! Zero inflation for Medical Care!

If you believe that one, I have a website to sell you for BILLIONS OF DOLLARS also.

That’s it for this month. Watch what happens in the months ahead because there is a message creeping through the noise and that is if any of the dormant indicators actually start to rocket up in price, the “headline” number and core rates will skyrocket rapidly. Of course via hedonic pricing and implicit seasonal adjustments (Translation: The Evil Monk who is White House Chief of Staff hates the number) inflation will always remain under control.

So excuse me while I leave you tonight and enjoy my 3.72 oz. Pepsi that I paid a 2003 12 oz. price.

by John Galt

September 16, 2009

The Port of Long Beach Monthly TEU report is out and as a follow up to my report on how the retailers and wholesalers are NOT preparing for a big Christmas season and this report indicates that those empty ships in Singapore may have company with the container fleets of Taiwan soon also. The monthly TEU report continues to indicate that retail sales in the coming months during the peak of the Christmas season are anticipated to be horrid as we have not increased our imports.  July and August are the key months for stocking retail distribution centers and the continued decline for the year as a whole and the month of August (down 11.7%) should be a red flag for anyone who still believes the fiction of this statistical recovery. While economists might celebrate the growth being created via Keynesian spending from the government, retailers know the consumer is dead and that this is going to be a frugal holiday season.

by John Galt

September 15, 2009

Glenn Beck asked us all to be watchmen. Ok, I think I’ve been doing my part but our paths crossed when he asked us to look into ACORN. I looked at the financial side of things, but now I’m a wee bit spooked. Two financiers, two suicides, too unusual.

Here are the stories:

Rockefeller & Co CEO dies in apparent suicide

BOSTON, Sept 15 (Reuters) – James McDonald, a prominent
adviser to wealthy families as chief executive of investment
management group Rockefeller & Co, died in an apparent suicide,
on Sunday, local authorities said on Tuesday.

Then add this:

http://www.inquisitr.com/36737/financier-finn-casperson-dead-in-apparent-suicide/

Category: News Author : Kim LaCapria Posted: September 9, 2009

Financier Finn Casperson dead in apparent suicide

Ex-CEO of Beneficial Corp. Finn H.W. Casperson was found dead in an apparent suicide behind an office building in Westerly, Rhode Island.

Casperson, 67, was discovered dead of what appeared to be a self-inflicted gunshot wound on September 7th, after police were asked to “check on” him. Casperson came from a wealthy family and moved with powerful people, and he was known for his political influence, fundraising and philanthropy.

**************************************

Now add this:

If you are behind on your loan, a housing counselor may be able to intervene on your behalf with your lender in order to come to a resolution that will ultimately bring your loan current. Our HELP program has established relationships with 43 major lenders in the U.S. in order to better serve our clients in getting their loans out of foreclosure. Last year, we assisted over 4800 families in working out repayment plans, forbearance plans, loan modifications, refinances and partial claims, which allowed these families to keep the equity that they built in their homes!!!
ACORN Housing’s mortgage delinquency counselors are here and ready to review your situation to find out if you would be suitable for a resolution. Contact our toll free HELP line today at 888-409-3557 or download our intake form and fax it to 312-235-4995.
Last year we saved over 9,800 families!!!

These lenders include:
ABN Amro/LaSalle Bank
American Home Mortgage
Americas Servicing Company (ASC)
Ameriquest
Bank of America
Beneficial Finance
Carrington Mortgage Services
Centex
Chase
CitiFinancial
CitiMortgage
Countrywide…..etc.

from this web page:   http://www.acornhousing.org/TEXT/fap8.php

Then from CapitalResearch.org’s story:

ACORN: Who Funds The Weather Underground’s Little Brother

From November of 2008 on page 11 of the PDF:

Donations to ACORN Project Vote:

Rockefeller Family Fund $4,047,500

I’m not saying there are ANY ties, but you have to start asking questions.

by John Galt

September 14, 2009

This week is one that I shall warn of briefly. We are entering into a week of massive instability on a geopolitical and economic basis. The Middle East is rumbling, the Russians are dropping hints they are about to re-engage again in a major way, and the region of Kashmir had another flare up this past week. Add in the regional banks finally getting the pressure they deserve since the realization that the earnings being declared are bogus, a stretched rally that has moved on 30-40% less volume than the downward move that started last summer, and an administration that looks like it is willing to start a trade war with our central banker in Beijing. September 18th is the key date so stay tuned boys and girls, we could be in for one wild ride.

by John Galt

September 10, 2009

Glenn,  God Bless ya Buddy!

I mean that my friend via radio and television. You have done many great things and this current story first broken on the mainstream by your radio show and the fine folks at Breitbart via www.biggovernment.com ( Link to story here ) has exposed the fine people at ACORN to be just what they are: Poverty Pimps. It is a good thing they are “helping” with the census because I would hate for underage illegal prostitutes from El Salvador to not be counted and insured they get all the benefits and numerous voting rights for Democrats that they deserve.

As I listened to the program today and then watched the television show, read the link above from Breitbart and thought about all of the news surrounding this and the silence from the state media organs, it hit me that the big story was not that this has happened; hell I think most Americans are desensitized by this now and expect this type of behavior from any organization affiliated with either political party or receiving government aid be it ACORN or Citigroup. The big difference is that all the whores are in the board room at Citi and not seeking shelter in a Federally funded home loan in Baltimore. In fact the big story is not the risk to the lives of those involved in this story but folks, I agree with Glenn: PRAY HARD for all of them as when the dollars get this large, the rules are not exactly the same.  The big point thus far is not even the silence from the mainstream media and the various liberal elite proxies acting to promote any activities that further Marxist causes, the Constitution be damned.

The big point is simple:

We have a banking crisis because of what you saw on this video and the activities of the subjects in this story.

The undercover reporters exposed what happened in bank offices, mortgage lenders of every size, and “community assistance” offices nationwide for years now. The price we are paying is just now being realized and the death of companies like Wachovia, Washington Mutual, Indymac, Bank United, Bear Stearns, and Lehman (etc..) can all be related to the story you have heard and watched from Mr. Beck and the crisis expanded upon from that.

So what “that” am I referring to?

The largest credit crisis in American, perhaps capitalist history. It can all be traced back to a series of blunders starting with the New Deal of FDR, expanding in the greed and avarice of the 1999 Gramm-Leach-Bliley Act consummated in an orgy of mercantile swine money-flu with the signature of President William Jefferson Clinton, and culminating with the “Ownership Society” nonsense of President George W. Bush. The failure of all of these Presidents, whether by design or a National Education Association mental impairment, is that government can not create capital without consequences nor expand the perceived right to own a home without defrauding the taxpayer at some point in the process. Alas, here we are with an imitation 19 year old hooker sitting in front of the very pigs that have helped to expand the government trough on behalf of the Republicans and Democrats in a sick, perverted and grossly misguided attempt to prove that capitalism can not survive without the power of the people or influence of the elitists who know better.

The stories started to circulate with the expansion of the housing boom in 2005 where illegal aliens were obtaining financing for home mortgages (See: Illegal Aliens and the Mortgage Mess by Michelle Malkin, NY Post 9/24/08 & Mortgages for Illegal Immigrants Business Week July 30, 2007), credit was extended to anyone with a credit score above 12, and home equity loans were handed out like, well, government grants to community organizers. The problem is that once subprime, or substandard mortgages, were issued to normally unqualified applicants, banksters realized that thanks to securitization of those loans they could dump the problem on willing investors (aka “dupes”) overseas who were convinced that because a rating agency or mega-bankster said “our AAA is as good as the government” then loaning money borrowed at 1% from the Fed at 5% to Speedy Gonzalez or the local 7-11 bag boy making $6.37 per hour was a win-win situation.

Then of course February of 2007 hit and I won’t rehash that again because God forbid we recite history, facts or anything else that might upset WALNUT, CASHEW, ACORN, or some other agency that comes out of the wood work to call me racist because I do not agree home ownership is a “right” (where in the Constitution again?). After the collapse accelerated and all these banksters started to fail, the very same people who created the mess elected to find a perfectly logical solution to the issue by attacking it head on:

Dump it on the taxpayer and go back to the very same ‘Community Organizers’ that determined these people deserved and were qualified for a mortgage to fix the mess.

Thus we see organizations like ACORN and many others, plus subsidiaries and “debt negotiation” companies (owned by the very same banksters who started this mess) creating programs and attempting to help the same people who should never have received a loan in the first place,  to renegotiate a 50 year refinancing agreement that they can fail on next year after the election and thus force more taxpayers to fund more programs to insure they don’t lose a home, car, credit card or pet turtle named Wally they bought with credit they were not qualified for.

Ugh.

Thus once everyone realizes the futility in telling people they have to have kids to pay for their parents financing agreements hits home and the parents realize that Socialism really cures it all, the banksters get to keep their profits, the community organizers get to enforce pograms and the taxpayers are told to shut up and support the ‘less fortunate’ because it is their duty to help the state and keep the peace within our new happy hyperinflationary society.

So Glenn, with all do respect, all your ACORN story did was open up an old wound.

If anyone in their right mind thinks the actors who were in the video are not symptoms of a larger problem, well, bleat on and enjoy your cud. The reality is that ACORN and numerous other groups receiving taxpayer funding plus banksters given incentives to do so loaned out hundreds of billions of dollars that will never be paid back. Then the same banksters leveraged that up in the grand world derivatives casino knowing that by making it so large, so complex and so deadly all the parties involved knew they would pocket the gains and dump the risk and ultimate losses on the American people.

The lesson of this is simple:

Get government out of our capitalist system or face the consequences when the hybrid system collapses.

Too bad the lesson is missed on those in power and the problems will be endured by the people for over a decade or more.

by John Galt

9-9-9

First an apology brought to you by well, the head banana.

Yes, that’s right, the head banana imbibed and paid the price for it yesterday on 4 1/2 hours sleep but it was worth it as the U finally looks like the dreaded Curse of Coker might finally be lifting and I was in too much of a daze to write the Obamarket update much less be creative beyond going “oh crap my head hurts” and smiling at the same time. That being said, I still like FSU and respect them and thank them for adding to the legend of the series by providing one heck of a game.

Yesterday we heard the mainstream media and everyone else go ape over gold crossing the $1000 mark again. Well, let’s look at that chart first before discussing what happened today and why the media, in my opinion, is once again getting this all wrong.

Remember this chart from September 2nd?

Well, let us see what happened yesterday and today:

We sold off today, held the 96.50 level and did so filling a gap and on declining volume; hence support held and we should see another run past $1000 any day now and $100 on the GLD ETF. Is this a big deal? Only psychologically; the real target price with accelerating volume is a close above the $1040-$1050 range and that will support the theory that the next bull leg is intact and roaring north. Once we close on a weekly basis above those levels the mania should take hold but why are we seeing and hearing more stories about gold and why it is suddenly surging in price? The media tosses around terms like “future inflation” or “hedge against risk” etc., but there is a much more logical explanation and all you have to do is look beyond the volume numbers and media mayhem and read the news the rest of the world covers and the average American sheeple ignores.

In the Arabian peninsula you have a massive war against a long dormant rebel movement in Yemen which has a history back to the 1960′s suddenly becoming very ‘hot’ as the Iranians and Al-Queda have been working to supply and overthrow the regime there. There is a long history of tribal rivalry in that region of the Arabian peninsula which at one time engulfed parts of Saudi Arabia (modern day) and the Sultanate of Oman. The instability in Yemen threatens to create further discontent within the southern regions of Saudi Arabia and that threatens the oil markets which of course with instability and hence some investors in that region of the world are looking at a safe haven and this time is is NOT the US Dollar. Add in that little matter of Iran having enough material to assemble some nukes and I think we can officially label the entire region as “unstable” and worth paying attention to.

Add in the G20 meeting which coincided on September 2nd with the sudden move in gold( hmmmm, someone has inside information perhaps?) and the dollar just absolutely getting trashed with a close below the 78 mark and then some by today and you have to wonder if a concerted effort is under way to perform a surgical international “devaluation” of Mr. Buck while the American people are busy watching “Dancing With the Stars” and the Obama Healthcare Two Step.  Information overload will cause many to overlook this but in the same breath the long term impact will not be noticed until the end of this year so party on America, your savings are being eviscerated and the masses do not seem to care.

Thus it is my opinion that geopolitical instability along with perceived instability within the United States is what is driving the price higher and thus the technical factors that seem to be long overdue have little to do with this move. Once the move is met with the technical trip wires above the $1050 mark, there will be a mad rush into precious metals by institutions of all size and the little guy will be left out in the cold, once again. In the mean time, do not get excited about what is happening. It will increase in price, it is a matter of when, not if.

Today’s date with Destiny can be summed up in one chart:

The dollar is in serious trouble and once the 76 level is shattered on a weekly close, there is nothing but air to 70 and after that maybe 62, maybe 57 ish as we enter into an unknown era and arena for our currency. The bottom line is that a 10-15% devaluation won’t hurt the President and might stimulate the export economy rapidly. Of course we who have been warning know the long term implications of such an act and that is why something happened at the G20 that we do not know about but triggered the move in the US Dollar and gold with violent rapidity.

With all of this good news, people are asking “just how are stocks even possibly up and why?”

Zero Hedge had an excellent post at his blog about the SPY Volume 40% Below Average and that should give everyone a clue. With lower volume it does not take much to move markets. And since a dozen high beta stocks played with our wonderful computer arbitrage driven systems can be used to move the markets. Remember the charts I’ve posted before?

Note the date, 9/1.

Again, please note the date, 8/31.

Now for today’s most active from the WSJ Market Data Page:

So let’s look at all three charts. Fannie and Freddie are zombies, 100% government controlled companies where the equity value is really ZERO but it is a trader’s instrument sort of like that drunk little old lady you see at 4 a.m. at the Roulette wheel at the MGM Mirage then realize she’s just betting on the pretty colors to try to win. Citigroup and Bank of America are partially owned government entities which are only around because we the taxpayers are forced by gunpoint to pay our taxes to insure that these companies survive because after all, they are “too big to fail” and we can’t have those CEO’s flying coach now can we?

GE is only around because somehow, after giving an entire group of  television networks to the administration to use for propaganda and to help pump the stock market, they got that bank designation although I swear my refrigerator has yet to offer me that ATM moment that my microwave does when I punch my PIN into the timer (of course the popcorn is incinerated as a result).  Thus from the Wall Street Journal pages above, you can see the majority of the volume is somehow affiliated with companies that just happen to be owned/used/whored as a result of taxpayer donations and mysteriously traded often like the damned companies are worth anything. In reality you have to ask (cue the X-Files theme) is if this is the case for the past 4 months, is it possible that the Federal Reserve working with the United States Hedge Fund (aka Treasury) elected to pump up the equities to insure that capital requirements are met for the big banks and thus giving the perception that a miracle has happened to insure a safe, sand steady recovery that will endure until Bo’s dog loses his virginity?

Who knows. Only a historian will know decades from now when the truth is discovered and shared with the world. In the mean time, today has come and gone and nothing has happened other than a speech from our fearless leader and my stomach turning rapidly at the thought of having to listen to politicians talk about “health care” for one more month while the dollar is shredded like a Bernard Madoff file folder.  Get ready for a wild remaining September folks as this will not end well for America the way things are being set up and your voice will be heard then ignored as usual. The time to act is now and that act is self-preservation in every way.

by John Galt

September 7, 2009

On this Labor Day a flash news update from the Glenn Beck Department of Labor hit the news wires and this is what I could call good news. As we sit now the Czar Unemployment Rate (CUR) is sitting at 3.13%.  Hopefully it will reach 100% soon.