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Flights Of Fancy Into Phantasmagoria
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Watching the president speak last evening struck a chord. The immediate description would be best expressed as Phantasmagoria; “A sequence of haphazardly associative imagery, as seen in dreams, or fever.�
The abomination of Obamanation will prolong economic pain; stretching out damage into many years of fiscal malaise driving wealth from critically needed investments into business friendly foreign lands. Those with the bucks are moving away. The handwriting is on the wall. Economically destructive Californian trends demonstrate where this once proud nation goes next. We are sinking into a dumbed-down cesspool of despair; into a land of drooling liberals, tossing cash with abandon.
This Phantasy or Fantasy, is something apparently seen or heard, or sensed, but having no physical reality. It is also described as a ghost specter. Our first clear example would be the presidents’ statement of determination to cut U.S debts in half by 2012. How is that supposed to work when during his first 35 days in office he spent in minutes something worse than one year’s national debt? Is he really serious? Do these power hungry people suspect Sheeple actually believe this stuff?
Mr. David Walker, a former administration official has been speaking and screaming and warning about these massive un-payable debts. He was a thorn in the side of government politicians and bank manipulators so his strident tone was rejected. He either quit or was fired. You can’t tell the truth or you are either deemed a publicity leper or fired or both.
Promises of fiscal discipline were basically being taken out and shot. Earlier this week we heard about purging waste from big government and then this dude passed the largest pile of pork since the origination of spam. Somebody told us there were 9,000 earmarks in the stimulus bill. Earmarks are a code word for installing a wild new array of gimme-gimme’s euphemistically referred to as “Investments.�
The latest dollar body count says we are overspending in the current budget by $500 Billion; also know as ½ Trillion. Reversal of tax relief on the largest income earners and others will not only decimate hopes of new investment but permanently run-off the owners of that money. This is why the tax and spend crowd will speed up their game throwing a TARP to smother growth over the republic.
We watched for years discussions about “Climate Change� and the related climate trading carbon scam. Administration talk of going green isn’t about cash. It’s about defrauding consumers using the air pollution syndrome. These agenda driven shysters envision a bunch of weirdos in funny shoes and hair marching around erasing something they call they’re ‘carbon footprint.� For you normal people this is the amount of energy you allegedly use (waste) cruising through your daily existence. We’re supposed to eat gruel heated from windmills and batteries, take sustenance and energy from the sun while rejecting the other 99% of normal energy produced world-wide. Meanwhile, we are all dancing and clapping hands singing Kumbai. They have sanatoriums for these maladies.
We got news this week the carbon scam trading was headed into “cap and trade� la la land heaven as traders prefer real stuff not this unlimited indulgence in smoke and mirrors idealism. Basically, those normal businesses unable to comply with extreme pollution rules are buying unused “pollution credits� to comply with bureaucratic mayhem and avoid fines and jail time. Bottom line: the owners of pollution origination pay bribes to politicians so they can keep on pullutin’.
They got over using mice on treadmills to propel cars but now encourage farmers to waste (grow corn) expensively converted into ethanol. Those new electric cars are really neat. They cost $95,000 and give a true range of 40 miles before you must plug into the decrepit grid for more expensive juice delivered by coal. Figure that one out. Worse yet, the batteries cost as much as a used second car and remain unreliable. We had electric cars in the early 1900’s and it was decided then this is really stupid. The Baker Electric car was one of those and probably ran better than our newest junk.
Ethanol plants are going bankrupt and the government mandated (demanded) that more be manufactured. Never mind that it takes an ocean of fresh water to grow that corn. Also, forget the stuff screws-up fuel pump accessories and induces a noticeable power drag on your sports car.
Do not misunderstand us. We are all for clean air and energy. We would just prefer the government stick to defense and treasury stuff which they seemingly cannot manage at all either.
So now that the new stimulus plan has removed new investment cash, spent trillions on green stuff and has driven food prices much higher, what’s next on this list of broken dreams?
We had a great conference in Phoenix last week end with many spirited discussions on nationalization of banks and the Big Three automotive bailout mess.
Obmanation tells us of a promised “retooled and re-imaginedâ€? U.S. auto industry. We view it as a morass of debt being restructured by Larry Summers, Timmy Geitner and the new tough guy negotiator, Ron Bloom, hired to beat-up car managers, unions and the bond holders.Â
Auto players on both sides of the fence know the American auto industry is a collection of Zombies. Reality says the so-called negotiations to rescue car-land are being arranged for a ‘must–do’ immediately structured bankruptcy. We wrote of these forthcoming failures in 2003 having been raised in the midst of auto profligacy. You can’t pay for all the neat stuff like radical pensions, health care, off-the-planet pay plans and keep borrowing from bond land to pay for it. The debt vultures are roosting nearby and licking their chops. Chrysler died but has yet to be buried. GM is next in Chapter 11 dumping pensions and health care on taxpayers. They will move headquarters overseas. Ford has enough cash for now but soon shall follow GM dumping overhead and moving to cheaper pastures.
Big banks have the best game in town. The own the Federal Reserve, control the IMF and U.S. Treasury while rigging the stock market. Best of all, inflation has paid them well since 1913 when the Federal Reserve was born (stillborn would have been better). TARP l and Tarp ll are now history and taxpayer gazillions haven’t even made a derivative dent. Nobody knows or can measure the damage but we would hazard a guess that only 10% of derivatives have been marked to market. Watch the excitement when more of this sewage comes spilling out. The stink will be legendary.
This shell game finally ends when (1) foreign investors buying and currently owning our fiscal toilet paper say no more and, (2) the U.S. Dollar is regularly repudiated by more foreign nations and, (3) social problems arrive from lack of money come to the fore and, European central banks can no longer cope with theirs (and our mutual disasters).
The U.S. Justice Department has engaged in a urination match with the Swiss over allegedly unpaid U.S. tax revenue in USB Swiss bank accounts. While we agree all should pay their taxes this untowardly event caused the Swiss government to withdraw its representative from the hearings according to the Wall Street Journal. Since this esteemed paper has reported the Swiss are the fourth largest foreign investor in the United States do you suppose we should be hiking a leg on their money tree?
The largest “investment boondoggle yet to come lays just over the money pit horizon. That Doozie is national health care. If you think Social Security and Medicare were expensive wait until you see this one. The pols are pecking around the edges to pry open this door mandating all health care records be on computers (theirs). The excuse is to provide better doctor info while helping patients. The reality is your personal records will be out in the wind for the all the world to see. Nice.
At our conference this weekend a reader-firefighter told us of broken U.S. vets back from wars in Vietnam and the Middleast living in Phoenix parks and sleeping on benches. Meanwhile, we were told of immigrants from the Middleast with packs of kids receiving nice apartments, welfare, food, special health care, and education in local public schools. They cannot speak English and adults are near the grades 1-3 in their personal education. They live across from the park and can see these maligned vets out of their windows. This example obviously applies to a narrow few but worsens the viewpoint that U.S.veterans are maligned and left behind. We are acquainted with many highly educated and experienced Middle Eastern folks who obey the law, pay their bills and help to strenthen the American experience. This costs our government millions as the men and women who fought for our country get no help at all. How does this make you feel as a patriotic American?
Residential mortgages, lenders and homeowners continue their mutual spiral into housing purgatory. Since consumers are 70% of U.S. buying power and they are effectively destroyed, there is no growth engine from their absent retail buying. Instead consumers are now saving money out of pure naked fear. They are not eating out nor are they buying houses or cars as this monster market moving group remains frozen in time. The pittance Obamanation is throwing their way is not even a picked, clean, bare bone. The TARP l and TARP ll are about buying more votes with pork projects, creating more destructive useless federal employment while taking care of banker cronies. Stimulus indeed!
Our U.S. Dollar rallied briefly as domestic and foreign debt holders’ pay-off obligations recycling our money. We see a large bearish double top in the dollar and expect gradual but steady selling. Consumers quit the spending and began saving. This is curtains for retail in several categories and is a paradigm shift in our view not just a shorter term aberration. This is a permanent retail disaster.
Gold and the S&P’s are trading opposite each other as they cross paths in the trading night. Gold continues its relentless march higher as buyers seek a secure and safe haven for deposits while stocks are shed and denied as a basket of losers. Stocks should rally briefly but in the longer term be sellers. Only precious metals shares are valuable along with some beaten down energy shares.
Consumers Fall Off The Planet.
Bank Shares Disappear Down The Bowl.
So What Do We Do As Traders?
We carefully pick our cyclic spots based upon some forecasting and pricing. We decide to trade in only 1-3 markets and devise a trading plan to cope with the possibilities. This is not easy as several decisions must be correct for these trades to work properly. Share traders should be very picky and go with only a handful of the best of the best. Further, they will have to enter-exit at a minimum of twice per year and perhaps even more often depending upon what Mr. Market gives us.
Do not give up now-even if your capital is badly depleted. Start small and work  your way back as the best of the best trades might surprise on the upside.
In Trader Tracks, we provide weekly guidance and extra e-mail alerts to report our best new trades and offer suggestions for trade management. Visit our website at webeatthestreet.com for more information on our spectacular futures and commodities trading record.
Whatever you do, make a concerted effort to stay with our trend and hang onto your core holdings of favorite shares, cash, and coins. Physical gold should never be sold or, traded but rather accumulated steadily on a monthly savings plan.
Recent news says you cannot find any coins or, others. We see delays and back-orders but some dealers have goods in hand right now. Go shopping. Should you have difficulty buying physical metals, we suggest placing an order and being patient. Big traders are always ready to buy 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.
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, futures and commodities trading with specifics for individual trades. See webeatthestreet.com for more information
Contact Claudio Bassi, at Trader Tracks New York City publishing offices for a free 30-day trial subscription 718-457-1426 Monday through Friday, 9:00am to 5pm or, e-mail Claudio at cbassi@miningstocks.com
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