2010 Outlook: When Hope Turns to Fear: Part III

By: Ty Andros | Fri, Feb 19, 2010
Print Email

Global Stock Markets and General Economics

"Paper money eventually returns to its intrinsic value ZERO" - Voltaire 1729

The greatest hoax and fraud in history perpetrated by public serpents, crony capitalists and their central bank and bankster masters continues to fall to its demise. Ever since Breton Woods ii changed semi-sound money into iou's and promises to pay, this inevitable moment has loomed large. As Ponzi finance fails, so do all the investments which underpin it. This is the greatest reversion in asset prices, mal-investments, to their real values -- reflecting their ability to produce wealth rather than the constant debasement of the currency in which they are denominated.

Now is not the time to hide or stick your heads in the sand with your investments as your paper currencies and bonds are BURNING. They will fall victim to the central bank printing presses and morally and fiscally BANKRUPT politicians in the social welfare states of the developed world.

Volatility is set to expand once again, both up and down in many markets and VOLATILITY can be opportunity for investors. You must learn how to restore the functions of money, implement investments (absolute return alternative investments) that have the potential to thrive in up and down markets and seek the INDIRECT exchange, as outlined by Von Mises. If you have an interest in this contact me, click here (http://www.traderview.com/portfolio_analysis_analysis.cfm). CASH is no refuge and neither are bonds.

The broad public is still asleep at the wheel, duped by the "politically correct progressive" main street media, central banks, public serpents and the governments in which they have misplaced their trust. They are impoverished by inflation as a policy of government rather than the production of wealth on which their societies rose. The "something for nothings" will eat and destroy the foundations upon which their formally capitalist economies produced rising middle classes, borrow until they can borrow no more and eat their most productive citizens and businesses until they COLLAPSE under the weight of the people who vote for a living rather than work for one.

The initial bounce in markets and economies off the March 2009 lows is mostly OVER and, as you shall see, last month's TECHNICAL action in many markets spells trouble dead ahead. Almost universal bullishness as the year began is under relentless assault and will remain so. The "when hope turns to fear" moment is at hand. Markets will zoom all over the place to PRICE in the collapsing social welfare states and their unpayable liabilities.

Greece is just the next canary in the coal mine and will be repeated over and over again until the Big Daddies at the Bank of England, Federal Reserve, Japanese, European, and Swiss central banks join their Greek brethren. This picture is clearly seen THROUGHOUT the developed world as politicians and their special interest elites have PAPERED over poor economic and financial decisions for DECADES. Now these POOR decisions and STRUCTURAL issues are pushing them to the final economic demise. The game is up; Darwin is at the door; it is now: produce more than you consume and be globally competitive or fall to your demise. Unfortunately, our leaders believe they can repeal the laws of nature and they themselves are GODs, when in fact they are strong-armed dictators.

Look no further than the latest budget proposal from the chief executive of the United States. After expanding government by 50 percent with the 789 billion dollar government expansion bill, misnamed stimulus (to fool the public), it now calls for an expansion of government of 1 percent per year as a percentage of GDP. Government as a percentage of GDP is leaping higher and by 2012 is projected to climb from 20 percent when the progressives took over in 2008, to 25 percent today to 30 percent in 2012. Take a look at this recent chart (www.wsj.com) of federal spending versus household income. It goes back to 1970, just before Breton Woods II initiated the acceleration of government and unsound money (money that could be printed out of thin air or lent into existence.) Next to it I set the chart of household income properly adjusted for inflation from www.shadowstats.com:

This is PRECISELY why incomes and the US economy have evaporated, this is the true picture of what public serpents, banksters, crony capitalists and central banks have done to FLEECE the sheeple they claim to serve. The only one served is them; the broad public and private sectors are ROBBED! Now they are expanding the government budgets by another 50 percent, as they are never satisfied and have no moral underpinnings. This is a picture of creeping socialism and the DEATH of capitalism, also know as producing more for less which creates expanding wealth and rising middle classes.

Debt-to-GDP will be become much higher as economic growth will continue to crumble under their harsh grip. Total federal, state and local taxes now CONSUME 40 percent of GDP and this is climbing vertically as the predators REFUSE to cut spending like every rational business or person in the world is currently doing.

This is a fairy tale of borrowing and spending with no provision for private-sector economic and income growth other than projecting it to grow 3 to 4 percent. In fact, the public serpents plan to lay 2 trillion dollars of new taxes on the private sector in the next 5 years. Small private businesses are the target of these new and economically-devastating new levies. That is no recipe for growth; it is a recipe for economic disaster. It is a perfect implementation of Saul Alinsky's "rules for radicals" and the cloward-piven.com strategy all rolled into one.

"The more corrupt the state, the more it legislates." - Tacitus

The architects of these policies are radical academics and they are CLUELESS as to the source of wealth because they have no experience in producing it. They are all academics where theoretical thought rules. Look at this SHOCKING glimpse at the naiveté of the crew currently RUNNING policy and government. This is a chart outlining the experience of senior policy makers in past presidencies versus the current office:

This about sums up the amount of REAL experience these LEADERS have: NONE. Their ability to solve REAL problems in the real world? NONE. Socialist progressive IDEALOGUES running an economy that must operate in the REAL world. They have never held a real job, never had to meet a payroll, never had to produce more than they consume and they have no ability to create policies which do so.

Norman Matoon Thomas (November 20, 1884 - December 19, 1968) was a leading American socialist, pacifist and six-time presidential candidate for the Socialist Party of America. As the Socialist Party Presidential candidate, he said this in a 1944 speech:

The American people will never knowingly adopt socialism. But, under the name of "liberalism." they will adopt every fragment of the socialist program, until one day America will be a socialist nation, without knowing how it happened." He went on to say: "I no longer need to run as a presidential candidate for the Socialist Party. The Democratic Party has adopted our platform."

Recent surveys indicate as many as 30 percent of the public support socialism; they have to, they no longer believe they can support themselves, this is the front edge of the "something for nothings."

The president is an empty suit when it comes to anything but his MARXIST theories. Mort Zuckerman in a recent article sums up what is transpiring in the executive branch:

"One business leader said to me, "In the Clinton administration, the policy people were at the center, and the political people were on the sideline. In the Obama administration, the political people are at the center, and the policy people are on the sidelines."

This is a recipe for the disaster we now see unfolding as the leaders of the house and senate drive the economy and the financial system over the brink. ON PURPOSE! These criminals are in trouble -- the Health Care Bill was one deception too many. It was actually first and foremost a "TAX and repeal your privacy" bill. Now the tax revenue IS NOT coming in to hide the hideous levels of spending.

The First Amendment be damned, as the communications director at the white house remarked "we don't put much meaning into the 1st amendment" of the CONSTITUTION as they conveniently ignore it." He goes on to say people with cell phones have no reasonable right to an expectation of privacy either. Rights to private property died decades ago, but these new legislative proposals put it further out of reach. Shades of George Orwell, the pigs and the ministry of truth are all on plain display.

Mark my words, these criminals will change or ignore the rules of congress and the constitution and PASS HEALTH CARE and cap and TAX one way or another before the 2010 election. THEY WANT and NEED THE MONEY...

Has anyone told you that president Obam@ recently ceded our sovereignty to INTERPOL, thereby placing this international POLICE organization above all domestic police agencies, or that another executive order is creating a NEW domestic police force at the disposal of the executive branch (see www.lewrockwell.com). Take a look at these two You Tube videos outlining the police state which the United States has become: http://www.kingworldnews.com ...

The constitution means nothing to progressive Marxists who are getting ready to implement their agenda "at the point of a gun," as Mao Tse-tung would say. When the economic collapse occurs they will be READY to go. The real terrorists are inside the beltway in Washington DC and they claim to represent you!

Social contracts are not worth the paper they were written on as Social Security slides into the red a decade earlier than forecast and the trust funds have been STOLEN by corrupt public serpents to buy votes. One by one these promises will be broken and the "something for nothings" will increasingly become more violent as they realize they have been had.

Buy and hold is DEAD for now as shown by the constantly-expanding broad money supply and credit growth numbers. Credit in the United States and Europe is in FREEFALL. Let's take a look at credit creation, or should I say contraction in the United States (courtesy of David Rosenberg and www.gluskinsheff.com):

How about the private sector corporations?

Or all bank credit combined:

WOW, a collapse of over approximately $1 trillion in a $14 trillion economy. This is not a recipe for a vibrant and expanding economy; in fact, it's a recipe for a crashing economy. Notice how the real oscillations in the above charts begin in 1971 when Breton Woods II changed the developed world's reserve-backed currencies to fiat currencies? Those are Wolfe Waves. (see Tedbits Archives from April 2007 when we IDENTIFIED the current debacle of collapsing incomes, aka the Wolfe Wave)

As John Williams of www.shadowstats.com summarizes: "The money supply is contracting because banks are not lending and consumers are not borrowing. Deflation"...The FED is reacting to this by aggressively expanding the monetary base. How aggressive?? How about a 56 percent annual rate since August, 2009. So, the FED is putting physical money and reserves into the system. We do not have inflation yet because the banks are not lending the money out, or lending is shrinking. BUT, here is the important part. The money is in the system. It is future inflation. The FED cannot and will not pull it back."

"Do not be fooled. Just because we do not have inflation yet, it does not mean it is not coming. When it comes it will be fast and epic". John Williams, www.shadowstats.com

The Federal Reserve is fighting this like tigers as their balance sheets approach new highs, while they take down toxic assets and replace them with cash and US treasuries on bank balance sheet (measured by money in circulation and excess reserves on deposit at the Federal Reserve in the adjusted monetary base):

John goes on to say: "Monetary Base Resurgent. The Fed again is pushing the monetary base higher. With slowing growth in M2 (the broadest money measure published by the Fed) and continued credit contraction, the Fed has to know that conditions are not healthy or appropriate for economic expansion. These conditions also are suggestive of ongoing difficulties in the U.S. banking system. Continuing to act as though such were the case, the Fed pushed the St. Louis Fed's Adjusted Monetary Base measure to $2.059 trillion in the two weeks ended January 27th -- its second highest level ever -- 1.0 percent shy of the December 2, 2009 period peak and up at an annualized 56.1 percent rate of growth since the near-term trough in the August 12, 2009 period." Thank you, John.

This is how "Crack-up Booms" are BORN; deflation brings about money printing on a scale which destroys the underlying FIAT currency and credit system. Trillions more credit creation (money in today's world is CREDIT, and make no mistake, credit is not money, especially when it is owed by bankrupt governments) loom directly on the horizon throughout the G7 and developed world as they try and PAPER over the unpayable and SAVE their special-interest and banking masters.

It's interesting to see the Indian and Chinese central banks pulling away the punchbowl, while the developed world economies and central banks cannot. Over leverage is not a problem in the emerging world as it is in the G7. Are there malinvestments and misallocated capital in the emerging world? Absolutely. But the central government could write a check for it and not even blink; $2.7 trillion provides quite a cushion.

Look no further than this You Tube video outlining the rape of the American taxpayer and individual homeowners by the FDIC and the group that last year bought Indy Mac bank out of bankruptcy from the California FDIC (the purchasers were ex-Goldman Sachs.) This will really get your blood boiling as it ILLUSTRATES the depths of corruption both within government and government....er, Goldman Sachs: http://www.thinkbigworksmall.com/mypage/archive/1/32275 (do not miss this video). The G7 governments are run for the benefit of well-connected elites and special interests.

Stocks APPEAR to have turned lower with outside down months in the developed world, in highly significant monthly charts. Tops (with LOTS of distribution days in both areas) in the emerging world occurred over the last six months. Fibonacci retracement and oscillators turning lower from overbought levels. As my friend Dennis Gartman says: "the markets around the world have retraced into the box which is the 50 to 62 percent Fibonacci retracement levels and attention must be paid" (www.thegartmanletter.com, I urge you to subscribe). Let's take a look around the world as see an ugly picture starting with the S&P 500 and the Dax index in Germany:

Trend lines off the March bottoms are BROKEN, Fibonacci 50 percent retracements of the previous move lower, outside down bars, relative strength index turning lower from neutral levels, slow stochastics and MACD giving sell signals from overbought levels. If you are long you are wrong. Now let's look at the FTSE 100 in the UK, and then head to Asia and the Nikkei 225 in Tokyo:

Ditto to the above charts, except the Nikkei rally couldn't even make it to a Fibonacci 38 percent retracement. Are you beginning to see a pattern here? Mirrors, reflections, you name it, it isn't pretty. Next Up Hong Kong and the Bombay Sensex index:

Wherever you turn the picture is the same, the markets have turned or are in the process of turning lower. Now let's look at the CRB index and Dr Copper -- solid barometers of anticipated industrial and economic activity:

This is called a chorus and if they follow through to the downside it signals a synchronized global downturn starting NOW. See the head and shoulders TOP in copper?

Let's take a fundamental look at the S&P 500, from the standpoint of valuations as measured by the St Louis Fed and the technical internals by Bert Dohmen (www.dohmencapital.com, a fabulous publication, check it out). According to the Federal Reserve (not prone to hyperbole) as of January 19, 2010 stocks are at their highest Price Earnings multiples in decades, if not ever, at almost 150. These are also known as nosebleed levels or "outer space." Look at the range going back to 1992. We are so far off the average as to be poised to CRASH. This is an unbelievable picture; notice the P/E peak in 2002, this peak is 5 times higher.

Look closely at this chart, it is FRIGHTENING, and then consider what bubble-vision, the biggest banksters and brokers along with the main stream press are telling you. This picture can be seen ANYWHERE in the world. Anybody buying here better be prepared to BUY and HOLD for 150 years to receive their money back. Just like last week's look at bonds, the risks are 30 to 50 percent and the upside is LIMITED. This picture can be seen AROUND THE WORLD as investors chase stocks and bonds with fire hoses of HOT money. They are looking for shelter from the printing presses or from banks pushing up stocks to unload them on the next set of patsies (see below.) Their research departments put out buy after buy signal telling the public that STOCKS are CHEAP; they are not. Combined with the previous pictures, the downside looks most probable starting sometime soon.

Now let's look at a daily chart by Bert as it exposes the real underpinnings of this rally from the lows last march:

"The SPY is the ETF for the S&P 500. We like to use it because of the volume numbers. Note that this chart of the SPY (daily) clearly shows the big decline in volume over the past 10 months while the index and the ETF continued to move higher. Declining volume in a rising market means that a virtual vacuum of buyers is being created. Eventually, prices have to plunge to a level low enough to attract new buying.

And now we have another confirmation of the bearish chart: this month, volume has been rising as prices declined. That is a typical bearish pattern..... Well, the S&P 500 got to 1150, just 30 points above our most likely target. There is a small chance it may rally and exceed that."

He then shows a weekly chart:

And he further offers this insight: "The chart of the SPY (weekly, in which each bar is one week of trading) below is even more revealing. The important trading channel (2 standard deviations) has been broken to the downside.

"Furthermore, the MACD indicator below has crossed over to the downside for a sell signal. On a long term chart, that's meaningful." -Bert Dohmen, http://www.dohmencapital.com/

Bert's Wellington Letter is always one of my favorite reads. It combines fundamental, technical and geopolitical economic analysis all rolled into one, and his trading signal services are fabulous too, I urge you to subscribe.

Now let's look at an S&P 500 analogue of several of the greatest bear markets in history, past and present (the great depression and the fall of the Nikkei 225 from its bubble peak several decades ago):

Analogues are always interesting and can be quite accurate. If this one is correct, another plunge lies directly ahead. As regular readers know, I am a black helicopter guy, and I believe we live in a time when corruption runs rampant in the United States as elites try to preserve the past at any cost and they will print money and manipulate markets to foster illusions. The cost of creating money is zero now, astronomical later when the money printing is PRICED in. On that note I am posting a You Tube video of Charles Biderman of Trimtabs (Charles is a longtime industry veteran and not a looney, like me). Charles is an observer of money flows of all kinds, and this video outlines how most of the moves in the S&P 500 since March 2009 are happening in the OVERNIGHT sessions. This would be supported by the declining volume outlined by Bert in his analysis above. Here is the comment from www.Zerohedge.com and a link to the video:

"The United States in my opinion is much more corrupt than most people think and I don't really want to get into this rather large and interesting debate at the moment. But Charles Biderman has some very interesting points which fall in line with my thinking about how much of what is happening is really natural and what is completely manipulated in the past 10 months of rising market prices". -Zero Hedge

Must Watch 5 Minute Video: http://www.youtube.com/watch?v=cQyFxBG6dhY

I believe this to be true. Next let's look at a great chart of the timing of the Federal Reserve's exquisitely-timed MASSIVE injections into the markets (courtesy of Toby Hansen at www.heavymetalinvestor.com I urge you to subscribe, it's free) during options expiration week one in which we find ourselves, NOW:

Notice how the injections are beginning to FAIL recently. The government and the plunge protection team, with the complicity and support of the biggest banks in the world, have manipulated stocks higher as the public RUSHED into the bond markets (see the last edition of Tedbits for analysis) taking both to UNBELIEVABLE overvaluations based on earnings or the underlying fundamentals of the bombs.....er, bonds.

Finally we are going to look at what I call the kiss of death. The kiss of death is when a long term trend line is broken, then the market rallies up and try's to rise above the old trend line (kisses it) and FAILS signaling that the death of the trend is CORRECT, here's the monthly chart illustrating the kiss:

They better warm up the presses on the great REFLATION or it is about to undergo a RELAPSE into the great deflation. Between the stock markets and bond markets (see the last edition of Tedbits) the investor balance sheets are about to undergo a radical downsizing. No matter, they will just mark them to make believe, just as they have done to the toxic assets which are worth pennies on the dollar. During these rallies many of the biggest banks and banksters have repackaged their trash and unloaded a portion of their most toxic holdings to their customers. Leaving them to hold the bag on the next leg down!

Recent reports about the Greek debt held by banks throughout the euro zone (add in the rest of the sovereign bonds of Portugal, Italy and Spain and the problem mushrooms like a nuclear blast) point to insolvency if they default. And it appears that Goldman Sachs (http://www.thinkbigworksmall.com/mypage/archive/1/32996) and new FDIC corruption in the housing industry syndicated a lot of debt and helped them HIDE IT using swaps of one sort or another.

In today's Wall Street Journal there is a report that Italian municipalities are CAUGHT in a derivatives mess as well, equal to 1/3rd of Italian GDP. Investment banks SOLD complex derivatives, which the locals DID NOT understand; they previously brought forward revenue and soon BANKRUPTCIES. They are caught in a vise of corrupt investment bank products where the client bears the risk and the rewards go to the banksters. How do they avoid prosecution? The answer is obvious.

Capital flight out of the country and exclusion from short term funding for the domestic banks means the only source of "short term" funds is the European Central Bank. But that does not include the rest of the PIGS (Portugal, Italy, Greece and Spain). If they go so does the Euro and the biggest banks in the euro zone. A recent Glen Beck outlined the 15 biggest creditors of the United States, from lowest to highest -- it is an interesting picture:

15. Russia, $128 billion
14. Depository institutions/banks $154.4 billion
13. Hong Kong, $146.2 billion
12. Brazil, $157.1 billion
11. Insurance companies, $162.2 billion
10. Caribbean Banking centers, $179.8 billion
9. Oil Exporters, $187.7 billion
8. United Kingdom, $277.5 billion
7. Pension funds, $490.2 (includes gov't and private retirement accounts)
6. State and local governments, $528.3 billion
5. Mutual funds, $694.5 billion
4. Japan, $757.3 billion
3. China, (mainland) $789 billion, they own another trillion in various US bonds.
2. Other investors and savings bonds $1.14 trillion
1. Federal Reserve and intra-government holdings $5.17 trillion and rising in EVERY report.

Money printing is alive and well in the land of government.

The bottom line of this is do these people ever expect to be paid? And if so, will they be paid in anything remotely resembling the purchasing power of the cash they deposited? Those assets have NO intrinsic value and pay nothing, once they go to their true value those holders are as bankrupt as the government which issued them. What will happen when they undergo the soft default of the printing press, just go on pretending as they are now?

These people are as bankrupt as the borrowers in Washington; everybody is pretending they hold money, but in fact they hold IOU's of bankrupt governments. Dominoes of bankruptcy as the money has been spent for CONSUMPTION, not self liquidating CAPITAL investments. Thus there is no income to pay the money back...

This list DOES NOT include unfunded liabilities of over $70 trillion. Just who is the boss, Obam@ or Ben Bernanke? Ben is in full control, and if it wasn't him it would be someone else (the Rothschild's and the other illuminati owners -- government....er, Goldman Sachs, JPMORGAN chase, etc.) approved by the Federal Reserve. Ben's trip to capital hill before confirmation was just a formality to make sure the fed stands ready to absorb another $5 trillion of debt with MONEY PRINTED OUT OF THIN AIR. Remember the quote from the founder of the Rothschild's banking empire and putative owner of the Federal Reserve? Let's go back to a quote from the last issue:

"Let me issue and control a nation's money supply, and I care not who makes its laws" -Mayer Amchel Rothschild

He does and they do. End of story. The only caveat: the government gets unlimited credit as long as its citizens pay the interest and principle. Of course they print it out of thin air and consign us to debt slavery. Thank you, Washington DC. Don't you think the Federal Reserve should FORGIVE these debts? Of course, but they won't. These are the MOST evil, predatory people and organizations in the world. Government Sachs is at the top of the list, above the law and in full control of the US government, (and most of the developed world governments). Governments as debt slaves and by extension the public they claim to serve.

DC better hope the Fed shows up to print the money as the Chinese have sent a message to the terrorists in the beltway by reducing their holdings of treasuries by over $34 billion. This is not a subtle message, but you can expect Washington DC to ignore it, as it is part of the plan to collapse the economy.... spend, spend, spend until the creditors pull the plug, then print, print, print until dollar holders pull the plug...

An example of moral hazard slapped me in the face this week. A fellow, who will remain nameless, has $5 million dollars all in the Municipal Bond market, a cesspool of deadbeat borrowers when, if properly measured, owe almost $3 trillion in on- and off-balance sheet obligations. I told him he was insane and asked what he was going to do when the poo poo hits the fan? He said "I don't worry; the federal government will bail them out." I choked. It reminded me of what Dick Fuld of Lehman Brothers said to the Senate committee that he couldn't conceive that he won't be bailed out. I told him that's what holders of GM and Chrysler bonds said. Oh, did I forget to mention he amassed the bulk of his wealth with a golden parachute from AIG! Can you say: Poetic Justice?

I hope he has been good at picking winners and losers in the past. He hasn't heard of Chapter Nine of the bankruptcy code, used during the great depression, its how municipalities DEFAULT. People believe that municipal debt is safe based on assumptions which are no longer true! Make no mistake, some states and municipalities will be bailed out and some won't, it will come down to who is from a red state and who is from a blue state. Who has paid homage to public serpents in DC and who has not? The new JOBs bill is just the next installment on bailing out state and municipal government UNION employees. There is nothing for the private sector except a thin gruel constituting less than 5 percent of the total; the rest is government growth all the time.

In conclusion: Nothing surprises me anymore, outrage is the norm. Just this morning it was disclosed that George Soros more than doubled his LONG position in gold in the 4th quarter of 2009, after having VERY PUBLICLY called gold a BUBBLE while in Davos and in media reports. Do you think he bought the dip he caused? Where are the regulators? The outrage in the progressive press? Or even the report of this BLATANT falsehood?

To put into perspective the enormous sums being thrown about and squandered by the drunks in DC: California's budget deficit is about $20 billion (this is about the 8th or 9th largest economy in the world) which is equal to FIVE DAYS' deficits in DC. Absurd. Ridiculous. The Budget deficit for the first 4 months was running 8 percent of last year's $1.43 trillion after the first 4 months.

Buy and hold is DEAD; volatility is poised to expand and volatility is opportunity. Moves up and down can only be rented and it's a traders world. You need to diversify your portfolios with absolute return alternative investments with the potential to thrive in these market conditions because the financial maelstrom is set to continue. The worst is yet to come as nothing has been solved only pushed off into the future aka "extend and pretend" with MONEY PRINTING, so you also need to learn how to protect the purchasing power of your paper currencies. This is what I do, if you have an interest please contact me (http://www.traderview.com/portfolio_analysis_analysis.cfm)

Markets are poised to MOVE. Can stocks make another rally attempt with poor internals as Bert points out: YES. Other analysts I highly respect are also calling for short term rallies in stocks, but nothing major. Fundamentally, nothing has changed; consumer sentiment, economic measures and employment continue to decline at a slower pace, or bounce along the bottom.

Profits year over year are up, but don't be fooled; it reflects profits in the financial sector from 0 percent interest rates, non financial company profits are barely rising over last years level. The REAL economy is flat on it back, under attack by socialist progressives in the G7 capitals and frozen out of the money printing and stimulus: ON PURPOSE. Only their special interest supporter are benefiting, the stimulus er JOB's bill another deception while they fund and expand government. While the REAL private sector shrinks and pays for it. Blind ideologues and sociopaths running our futures into the ground.

Ground zero for the mortgage markets lie dead ahead as the Federal Reserve withdraws its QE, and the treasury TRYS to substitute Fannie and Freddie (that's why they lifted the caps on the portfolios and extended the losses they can take) as lenders of first and last resort in their stead. The shell game of DISGUISING money printing continues. It's like a good murder mystery, only the victim is the developed worlds' economies.

As a closing treat I am including a link to Nadeem Walayats: "Inflation Mega Trends Report" (http://www.traderview.com/tedbits/InflationMegaTrends-NadeemWalayat.pdf), it is fabulous reading for those who want to know what's going on, do we agree on everything, no, is it great in bringing perspective to consider, YES. Thank you, Nadeem. Just remember, paper is poison. In the next edition of Tedbits: 2010 Outlook part IV, we will be covering commodities and natural resources. Don't miss it.

Thank you for reading Tedbits. If you enjoyed it...

Subscribe, it is free: www.TraderView.com/subscribe/
Send it to a friend: www.TraderView.com/tellafriend/

 


 

Ty Andros

Author: Ty Andros

Theodore "Ty" Andros
info@TraderView.com
www.TraderView.com

7800 Southland Blvd. #110 Orlando, FL 32809
PH: 800.253.7689 // +1.407.855.4433

Tedbits is authored by Theodore "Ty" Andros, and is registered with TraderView, a registered CTA (Commodity Trading Advisor) and TraderVest Clearing LLC a GIB (Guaranteed Introducing Broker). He currently is the principle of TraderView, a managed futures and alternative investment boutique. Mr. Andros began his commodity career in the early 1980's and became a managed futures specialist beginning in 1985. Mr. Andros duties include marketing, sales, and portfolio selection and monitoring, customer relations and all aspects required in building a successful managed futures and alternative investment brokerage service. Mr. Andros attended the University of San Diego, and the University of Miami, majoring in Marketing, Economics and Business Administration. He began his career as a broker in 1983, and has worked his way to the creation of TraderView of which he is the sole owner. Mr. Andros is active in Economic analysis and brings this information and analysis to his clients on a regular basis. Ty prides himself on his personal preparation for the markets as they unfold. Developing a loyal clientele.

For greater insight into the philosophy behind Tedbits, have a look at the Tedbits Overview - To help understand our mission in serving you, the TedBits Overview gives a broad description of what's unfolding globally and what you can expect from Tedbits as a regular reader.

DISCLAIMER AND TERMS OF USE: While TedBits strives to present accurate and useful information, we make no guarantee of accuracy or completeness. All information and opinion expressed herein is subject to change without notice. Opinions and recommendations contained herein should not be construed as investment advice. Under no circumstances does the information in this column represent a recommendation to buy or sell any securities or commodities. Do not assume that any recommendations, insights, charts, theories or philosophies will ensure profitable investment. The information contained herein is for personal use only.

Gold and silver backed means that various commodity options strategies in gold and/or silver may be used. When buying options, you may lose all of the money paid for the option. When selling options, you may lose more than the funds received for selling the option. Strategies using combinations of positions, such as spreads or straddles, may be as risky as taking a simple long or short position. A high degree of leverage is used to buy or sell a sufficient quantity of options and/or underlying futures contracts equal to the value of the entire portfolio. The high degree of leverage can work against you as well as for you and lead to large losses as well as large gains. Absolute-return is not meant to imply that a positive return can or will be achieved. Absolute-return describes investment strategies which are designed to have the potential to succeed in rising, market-neutral and falling market conditions. Gold and silver backed and absolute return investments do not mean the investor will take actual physical possessions of any precious metal. Nor should any promise or guarantee be implied that such investments will perform better than any other investment in any possible future scenario described herein nor that such investments can or will preserve or protect in such possible future scenarios.

TedBits may include information obtained from sources believed to be reliable and accurate as of the date of this publication, but no independent verification has been made to ensure its accuracy or completeness. Many of the statements and views made are the opinions of the author. Opinions expressed are subject to change without notice. This report is not a request to engage in any transaction involving the purchase or sale of futures contracts or options on futures. There is a substantial risk of loss associated with trading futures, foreign exchange and options on futures. This letter is not intended as investment advice, and its use in any respect is entirely the responsibility of the user. Past performance in never a guarantee of future results.

Copyright © 2006-2014 Theodore "Ty" Andros

All Images, XHTML Renderings, and Source Code Copyright © Safehaven.com

SEARCH





TRUE MONEY SUPPLY

Source: The Contrarian Take http://blogs.forbes.com/michaelpollaro/
austrian-money-supply/