I don't have a single dollar in the Stock Market.
Like most Americans, I live a simple life; day-to-day, paycheck-to-paycheck, Beer-to-Beer.
But before the news becomes news, you have to watch what the financial guys are saying. These guys closely observe the global condition and squeeze their pennies.
One of the sites I have been reading regularly is "Zerohedge", and I have found them to be reliable in predicting trends.
With that said, there is a lot going on. As if the Japan earthquake and nuclear disaster aren't enough, North Africa and the Middle East are on the radar.
First, let's look at this chart of "money" being injected into the system by The Federal Reserve:
This was submitted to Zerohedge by Phoenix Capital Research, and here is part of their analysis:
"Why You Should Be Freaked Out By The Stock Market"
"This is a chart of the US monetary base. In simple terms, it charts how much money the Fed has pumped into the system (at least that it admits). So it’s a kind of visual of the Fed hitting the PANIC button: when the monetary base explodes higher, the Fed is FREAKING out.
You'll note that during the Financial Crisis the Fed didn't do much until the autumn of 2008 when it pumped nearly $1 trillion into the system. Think about that, the Fed didn’t go nuts pumping money until the stuff REALLY hit the fan.
(snip)
"No, this is the Fed FREAKING OUT about the financial system again. And it's a freak out on par with 2008.
So if you think that all is well "behind the scenes" you're in for a rude surprise. Something BIG is going down and it's NOT good.
And rest assured, by the time the mainstream media announces what it is, it will already be in full swing."
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Now, match that article up with this report. It was carried on Zerohedge again, but the source is "Stratfor", a private intelligence analyst that monitors global military affairs:
(snip)
"Wonder why the administration made such a stink of reducing the US airborne presence around Libya, and handing it off to France, Italy, Canada and Turkey? Here's the answer: the CVN65 Enterprise which last week was within striking distance of Libya, has quietly left the Red Sea and is now virtually swimming in the wake of CVN 70 Vinson in the Strait of Hormuz. Because obviously whatever is about to happen in the Persian Gulf will need not one but two aircraft carrier formations."
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So what is going on?
From my casual reading of the news, I suggest Saudi Arabia is the wild card right now.
The Saudis have lost their friends in the Bush family. They are frantically sending their troops into Bahrain and other countries trying to prop up fragile dictatorships that mirror their own.
I believe that the Obama administration, nursing the damaged economy that was systematically destroyed in the past administration, will do what is necessary to keep the price of oil at around $100 a barrel.
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So what do we do?
Pay down your debt as quickly as possible. Grow gardens and keep non-perishable food on hand for hard times. Work cooperatively with neighbors.
Quoting Kipling; "The strength of the pack is the wolf - but the strength of the wolf is the pack"...
4 comments:
To whatever extent the recovery of the past 2 years has been a scam, designed to support the stock market, those who choose to "invest" solely in a savings account are not opting-out effectively. It's not so easy. On the contrary, they are probably setting themselves up as the bagholders.
The monetary stuff is the result of Quantitative Easing 2, typically abbreviated as QE2, and highlighted as such in the wikipedia article linked above.
I think the timing of QE2 had a lot more to do with waiting until after the election than anything that's on the front page now. I see it as successful in preventing stuff from getting worse.
The stuff about Saudi Arabia is pretty much spot on, though. Given the number of Wahabi adherents in SA, political unrest there could get a lot uglier than in Egypt, for example.
Toldain;
The author in the article (link provided) says if it was QE2 it would have occured earlier and in consistant infusions (which the chart does reflect).
He claims this spike is more like the infusion after the 2008 crash.
I'll review again.
Here's the QE2 quote from the author:
"Indeed, the Fed has pumped nearly $500 billion into the system since the start of 2011. Don't even try to tell me this is QE 2. If it was then the monetary base should have spiked in late 2010, NOT in 2011."
http://www.zerohedge.com/article/graham-summers%E2%80%99-free-weekly-market-forecast-fed-terrified-edition
Don't know what to think...
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