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"...
