Just Astonishing
I guess politicians today are not familiar with Euclid. It is just beyond belief but did you know that if x = y and y = z then guess what? It is just astonishing, but OMG x = z: Go figure! That is just totally amazing. It doesn’t take a pocket calculator or a whole new agency to prove that.
Yes, a single currency requires single debt or you can isolate any country and still trade its debt as a derivative of the old currency you thought you eliminated. We are not at Nobel prize winning stuff here. It seems people understand this who are outside of government including priests. Is there some sort of handicap requirement?
If you want to save Europe, you have to now do structural reform. We are getting closer to the point of no return. You are going to create civil war North against the South. This is society at stake – we are far beyond personal elections. It is now time for a STATESMAN to step up to the plate. Enough is Enough!
The Call to Leave the EU is rising even from Church Leaders
Things have gotten so bad in Cyprus that yesterday the most revered person on the Island, Archbishop Chrysostomos II, accused the Troika of the Cyprus’ impending economic collapse and has called for the country to leave the European Union. As the Archbishop said…and rather succinctly so…
There will be no European Union in the future. Cyprus should exit before the union collapses. His shall not be a lonely voice in the wilderness. In fact, we look for others very swiftly to follow and for this sentiment to grow swiftly. These politicians are threatening to screw the entire world because they refuse to reform and admit this is the WORST attempt to create a currency in the history of civilization. IT CANNOT WORK!!!!!
There will be no European Union in the future. Cyprus should exit before the union collapses. His shall not be a lonely voice in the wilderness. In fact, we look for others very swiftly to follow and for this sentiment to grow swiftly. These politicians are threatening to screw the entire world because they refuse to reform and admit this is the WORST attempt to create a currency in the history of civilization. IT CANNOT WORK!!!!!
Silver – Beware of 2640
A reader wrote:
Yes. I am a “silverbug”. I never attacked you since I am a very open minded silverbug not a fanatic. But now the charts and the prices are showing your theory that in the economy, all the big money goes to the dollar first.
So what should be the primary advice for timing the shifts between asset classes? thats the hardest part for all the ordinary people like me
So we hoard US dollars now then wait “deflation” ends and when Bernanke promise more stimulus I should go all in precious metals again?
But the EU zone has a pending crash. I should wait to see them fall.
But the Federal Reserve is monetizing deficits, and so other developed countries.
What is the best asset class then. Can we park money in one place or just trade the markets. what is your best recommendation for 2013?
Here the crazy socialist government has placed a 20% credit card prepay income tax for online purchases to stop dollar nominated transactions via internet
:
http://www.buenosairesherald.com/article/126689/argentine-credit-card-holders-buying-abroad-now-charged-with-20-tax
:
http://www.buenosairesherald.com/article/126689/argentine-credit-card-holders-buying-abroad-now-charged-with-20-tax
Thanks for any insights you may provide to a faithful reader.
I do not deal in theory or I “think”. We are all human and nobody is perfect despite the hype. The unfolding of events is always a sequence never all at once. It takes patience but you can confirm it is developing because it is all connected. Princeton Economics was simply the largest international advisory firm that probably ever existed. When I testified before Congress it was because we at that time had more than the equivalent of 50% of the US National Debt under contract. Now you can spin that claiming I manipulated the world, or you can realize that we solved problems and crises and in so doing, we saw behind the curtain how capital REALLY moves. If there was some giant conspiracy, then why call us if they were always in charge? There are always conflicts globally and at times within the same company as branches fight with each other. Citibank was having a international gathering in Asia. I was signed up to speak. They paid all expenses. But it was the Asian and European branches that wanted me there. New York objected saying they did not want to air their dirty laundry in front of an outsider. I was paid not to go. So these wild theories that paint even banks as unified operations are just not true.
I have been educated by the clients. They taught me to look at everything through everyone’s eyes. My dear friend Milton Friedman, who thought out of the box and was not a academic who followed the crowd, came to see me speak I believe at a COMPUTRAC seminar in Chicago. He convinced me that I had a front row seat that no one else ever accomplished, and that was for a purpose. So there are people who still want to make it personal and try to reduce me to their level of just opinion. Sorry – I go by the numbers dispassionately.
The Fed’s monetization is nothing. That is one side of the coin. With the global crisis, the demand for dollars keeps rising and this is why there has been no inflation because we had a massive deflation by the deleveraging of assets. The nonsense spread on this issue alone shows the hype. It is like adding income of $1 million but not expenses $1.2 million and then claiming you are you made a million dollars.
The numbers are the numbers. Trying to forecast markets based upon hype and opinion is like trying to practice medicine by bleeding the patient. The global economy has moved far beyond that nonsense. It is like the people who constantly call for the Dow to Crash in 1929 style. They fail to comprehend what really took place back then. They also make the same mistake and only look at stocks domestically, not government debt, and are clueless about international capital flows.
In silver, we have TWO Weekly Bearish Reversals at 2641 and 2654. If they give way, silver will drop first to $23 zone and if that gives way, look for $17. Keep in mind that everything is HIGHLYvolatile. Shaking the tree and getting the diehards out, will create a fresh base from which to rally. The longer they hold in there, the longer the decline like Japan.
The metals are still pointing higher but that is 2017. The Goldbugs blame me because they cannot admit error. This is not a religion. It is a market. The object is to survive, not donate you money to the banks who trade this stuff based upon the technicals.
We will try to have a metals update out ASAP. For now, the dollar is king. Europe is committing suicide and the politicians will not reverse their course because it is all about them, not actually saving the country. Until there are one term only politicians rather than lifetime careers, there is no hope for the future.
Will Europe Break Apart?
There is no doubt rising separatist movements in virtually every country. However, the politicians are threatening members who think about leaving. So the ship is sinking and some faint distant hope may still glimmer in the distance that the people will make their voice heard in Europe and bring about change. At least the governments there are not buying bullets and tanks. The people could still rise and force change to save Europe. But the people have been skeptical all along about a single currency. When the European Commission came to us, this was the problem. They did not believe they could sell a single debt so they were starting with a single currency. They just never got around the debt problem.
Politically, there is no talk of leaving the Euro at the national levels in member states. The politicians are holding their ground even in Cyprus – yet only blind hope in their corner results in inaction. The US State Department is warning there may be a revolution in Greece. It may come to that for the politicians will not break with this failed idea of the Euro. There can be no single Currency without a single debt. It is as simple as that. So keeping the Euro together without MAJOR reform now is unlikely long-term.
The Euro is dead as a “investment” currency. It is dead because serious capital is starting to flee and that is in part feeding into the rise in dollar assets being the currency and shares (decline for gold). The markets are never wrong. They cannot be. Instead of blaming people and creating grand conspiracies, just follow the trends. Without a national single European debt, the Euro cannot become a world reserve currency. How does one park money in Europe? The decision must still be on a nation by nation basis. That defeats the idea of a single currency. This is indistinguishable from state debts within the USA. They are not qualified for reserve status. This is not OPINION. It is simple capital flows. It is why ministers are coming out claiming Cyprus is not the role model because they see the capital flows.