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Illegal Market Modification-Intervention A Regular Occurrence
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"If you think markets are free and unfettered I've got a creaky, massive bridge for sale in Michigan illustrating an accurate measure of our current dependability in liberty, freedom and free enterprise. To summarize-there isn’t any."- Traderrog
We've been reading a stuffy old book published in 1931 entitled “The Economics of Inflation-A Study of Currency depreciation in Post War Germany." We strongly recommend a good rest and lots of coffee to pay attention while plowing through this tome. However, the more you read it and think about comparative events from that era with today’s market action, we guarantee you won’t fall asleep but will find new exposure to terrifying naked fear. Similarities are astounding to say the least.
Events of that volatile time are rewinding before our very eyes. The bottom line in this book tells us the worst of the worst events post-World War I and probably even during the first World War itself were caused by deliberate, treacherous acts of an industrial-banking cabal to create war, inflation, and depression, which they later found to be the origin of “Great Private Fortunes Amassed During The Inflation.” In other words, these dudes instigated havoc and hell for their own Sheeple just to steal millions and billions from them. And the bad news from this event was that it worked.
One analyst has long told us to invest for the longer term in the American defense industries as the industrial-military-complex shall engage us in war indefinitely. This essayist has proven spot on as we noticed this morning a major Air Force supplier just reported an excellent quarter with a higher dividend proposed. The business of war is very big business. Now, it has been reported a larger portion of the war stuff used in Iraq has been broken, busted, blown-up, or run-down. Seems we have to begin the super expensive rebuilding process of war material all over again.
Another essayist wondered out loud why we have American military forces in 160 countries. I didn’t even know there were that many in the world. But I clearly understand “War Forever” makes a few people very rich-just ask the Rothchild’s. We’ve seen old stories that this historic bank was the chief source of funds in several wars sometimes loaning millions for both opponents. Some people will do anything to make money. Incidentally, just a few years ago they stopped being part of the London pool setting daily gold prices. They resigned that position. Why do you suppose that is? We think you cannot be a gold price setter and perhaps be allied with those clamping down gold prices when you really prefer to be a gold buyer? Make sense?
In our Trader Tracks Newsletter this week we reported upon two April 2008 stock market manipulations to prop the S&P’s when it appeared the ‘Sell in May and Go Away” cycle was about to sell stocks with vigor. Along with shares propping, of course, they sold-off gold just when gold futures were peaking and turning down for a normal cyclic correction. If you are going to hurt gold you kick it when it’s most vulnerable. Another reporter told us the same eight bullion banks shorting gold are engaged in nefariously buying S&P’s. Free Markets? If you think so, come buy a piece of Michigan. Better hurry before it falls down from neglect, disrepair and budgetary childishness.
Author, Costantino Bresciani-Turroni, writer of this very interesting and complex book tells us, “In post-war Germany the spirit of speculation spread in all classes of society as a result of the inflation. For the inflation made all values unstable, and obliged many of the working classes and those with small incomes to seek profits on the Bourse in order to supplement their incomes which were continually being reduced by monetary depreciation.” Does this sound quite familiar?
The author went on to tell us, “To understand the phenomenon of the rapid accumulations of large fortunes, it is necessary to take account of these two circumstances: on the one hand, for a number of reasons some individuals secured enormous liquid money capital;(today’s hedge funds?) on the other, exceptionally favorable circumstances occurred (manufactured deliberately?) owing to the depreciation of prices; for the employment of those sums of money.”
"In short, it was a planned set-up from day one to instigate war and inflation using the tools of government spending to screw-up the money supply and socially agitate the Sheeple." - Traderrog
Relative to purchasing foreign goods, it is important to understand the role of gold bullion after World War I, we are told, “It is obvious that the desire to support the (stock) exchange by selling foreign securities, or selling gold abroad (U.S. government paper and our central bank gold-this era), while the internal monetary inflation exercised a continual pressure on it, was a mistaken policy. In the last phase of depreciation of the German mark, the purchasing power, AT ANY GIVEN MOMENT, in terms of gold or domestic goods was also uncertain (1923).”
“Consequently, those who possessed metallic money (gold or silver) could then live cheaply in Paris just as after the World War (I) the possessors of foreign exchange could live cheaply in Vienna or Berlin. A speculator who had spent 1,000 paper francs (i.e. 4 gold francs and 16 sous)on a dinner declared that formerly he never spent less than 12 francs on his dinner. Even in that episode shrewd business men had converted their paper money into metallic money (gold and silver just) in time.”
There it is. History repeats and now we enter the more inflative phase of today, where prices move steadily toward uncontrollability. This is the time when real pain begins as household budgets implode and hard decisions are made to eat, pay rent or lose utilities. Early stages are those where discretionary expenditures are eliminated. It’s easier to forego vacations, entertainment, fancy restaurants and other supposed luxuries. Today is April, 2008. Today copies April, 1922 in Germany.
In the next painful phase, selective medical and dental procedures are delayed indefinitely. Credit cards instead of cash are used for daily necessities lik food, gasoline and even utility payments. Payments formerly-regularly paid in full become partial payments. Credit card charges pile higher and monthly payments of interest on them increase radically. Near the end, the interest portion of the payments greatly exceeds the borrowed amounts. Dancing lessons and summer camp are eliminated. No more lawn service, or visits to the fancy beauty parlor. Private schools turn into public education at great risk to kids. Auto repairs are delayed. Second and third family cars are sold off or repossessed. Finally, as in the case of millions of former homeowners who were foreclosed, the family castle is gone as single twenty-somethings return home to live with retired mom and dad; often times with babies.
The third phase is the worst and we will leave that discussion for another day. We forecast that this last and final phase arrives in fall of 2009 and the first quarter of 2010. This one is the uglier of nightmares. Lots of events both natural and instigated by further treachery can derail cycles and schedules but the final outcome is always the same; first we get unmitigated, government-induced economic disaster followed by global war.
Since we already have two wars in process within Afghanistan and Iraq, the last and worst phase might be the spreading of Middle Eastern conflict to include millions of Arabs from several countries against Israel. Contemplation of this scenario is horrible. Pakistan has the nuke-tipped missiles ready to fly. Guess who lives in that neighborhood in the mountains? Who is in charge within that Pakistan government? Nobody!
Meanwhile, in the United States the Sheeple are dramatically engaged with total seriousness to determine, which useless idiots we can elect to lead us into further mayhem. Our economy is disregarded. After all Congress still has all of their perks including limos, housing, fat pensions, huge free staffing and of course taxpayer-paid lawyers when they make mistakes and get caught.
To scoop up newer sucker voters they just keep promising things these fools will believe. A chicken in every pot, back-up financing for the mansion you bought and cannot pay for, and of course subsidized faulty education, free medical and dental-cradle to grave, and finally social security for at least a little while until government credit ceases to exist. Why, just this week, we heard noises the U.S. Government could potentially lose their AAA credit rating based upon certain negative events.
And of course those engaged in the master planning of this debacle, get richer, fatter and more bold in their choices to produce more for themselves at the expense of you, innocent children and all of those killed and maimed in war.
What goes around comes around. I remember from history about some rich, French chick with a crown of gold on her head suddenly losing that pretty head when she said, “Let them eat cake.”
Dollar, Gold, Silver And Their Shares Soon Diverge From New York Indexes
"Traders are patiently waiting for our favorite precious and metals shares trade. They will rally swiftly against a falling dollar and most importantly, falling mainstream shares in the New York stock index markets. This is a very gradual event influenced by several factors. The roadblocks for our desired divergence, or separation could become reality after the fall U.S. Elections. With Europe, Asia and the U.S. all in a spreading global recession, our metal trading should ignore selling larger share markets. This is the line in the sand for Phase III. This should be the time when the herd, the Sheeple, finally catch on and abandon the “others” and focus on precious metals. On that day, we’ll see blistering rallies in all precious metals and their corresponding shares." - Traderrog
In our newsletter, Trader Tracks, we provide weekly guidance and extra e-mail alerts to report our best new trades and offer suggestions for trade management.
Whatever you do, make a concerted effort to stay with the trend and hang onto your core holdings of preferred shares, cash, and coins. Physical gold should never be sold or, traded but rather accumulated steadily on a monthly savings plan and squirreled away. Big traders are always ready to buy on the dips and normally never sell their gold and silver. You would be amazed how quickly your physical gold and silver will accumulate using this strategy. - Traderrog
Roger Wiegand
Editor Trader Tracks Newsletter
& The Rog Blog at webeatthestreet.com
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Roger Wiegand is Editor of Trader Tracks Newsletter for gold, silver and energy traders. Roger provides recommendations for short and longer term traditional stock shares and futures- commodities trading with specifics for individual trades. See www.webeatthestreet.com for more information.
Contact Claudio Bassi, at Trader Tracks New York City publishing offices for a modestly priced trial subscription 718-457-1426 Monday through Friday, 9:30am to 5pm or, e-mail Claudio at cbassi@miningstocks.com
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