Weekend Open Thread...

Morning Update/ Market Thread 7/22 - Kabuki Theatre Edition

Good Morning,

Equity futures are falling this morning after yesterday’s money pumping glory rally. The dollar is up slightly, bonds are up, oil is down, gold is pushing up strongly above $1,600 again, silver is rising, but food commodities are falling.

There are no meaningful economic releases today.

The market remains unreal and nothing but fluff. Yesterday it was another Greek “bailout,” coupled with more rumor-mongering political kabuki regarding the debt ceiling. The Greek “bailout” is nothing but money from yet another “special fund” used to lengthen the time the Greeks are enslaved, but to artificially do it at a far lower interest rate than any free market would ever allow.

And so I ask, WHERE DOES THE MONEY FOR THAT COME FROM? Did it exist already? If it did exist already then it is taking money from something and someone else… but that’s simply not the case. This is just another cover-up scheme to create the appearance that money printing is not occurring to cover DEFAULTED debt. The Greeks are in default, but then again so are we – this scheme is the exact same scheme the “Fed” is running on Americans. And just look at how you pay for it in the depreciation of your money - $1,600+ gold, and you pay for it every single time you fill up your tank or take a bite to eat. Famine in Africa is nothing compared to the nasty conditions created all over the world by out-of-control narcissistic central bankers.

As far as our debt ceiling kabuki… the rumor of $3 trillion “saved” over a decade means that our deficits will still be growing exponentially. The math is impossible and everyone will find that despite all the talk of “deficit reduction,” that real reduction is going to be absolutely unachievable. Impossible is just that – none of the proposals will so much as dent the impossible math. The only thing they can possibly accomplish is to fool you for another year… maybe… if you don’t have two neurons communicating with one another that is… which collectively we seem not to have.

Whatever, all that is completely on ignore from me because I know how this game eventually ends. I am committed to working outside of the central banker system, that means I refuse to participate in their unfree, manipulated at warp-speed, “markets.” No thanks.

Instead I am putting my money to work building a real business. A business that does not depend upon financial engineering, banks, and one that will create jobs here in America while being on the leading edge responsible with efficient use of resources. There are a lot of people with money out there looking for real places to put their capital to work. Matching that money up directly with real business is the only way around the central banking paradigm, besides owning precious metals. My sense is that there is more and more of this direct financing occurring. If you look, you will find opportunity in this regard – just make sure that you perform your due diligence.

Morning Update/ Market Thread 7/21

Good Morning,

Equity futures are higher again this morning with the dollar sinking, bonds falling, oil rising, gold is higher, silver is flat, and most food commodities are lower.

Of note this morning is that the dollar has broken down from that small daily triangle I’ve been showing:



If it stays below that triangle, then it looks like it is ready to make a trip to the bottom of the larger descending wedge. That would put it near the all-time lows, it is open air beneath that as can be seen on this monthly chart:



We’ll see, if the dollar descends then oil will definitely rise along with everything else and that will eventually choke the economy, and thus it is somewhat self-limiting. Due to the self-limiting feature of the dollar being tied to commodities, then it takes a concerted effort to destroy the dollar, exactly what we’ve been experiencing. While the theatre of the absurd continues in D.C., the impossible math will still exist regardless of any “deal” that’s made (on behalf of the central bankers).

This morning Jobless Claims came in higher than expected again, at 418,000. That is up from last week’s 405k, which, of course, was revised higher. Not even close to job creation, here’s Econodope:

Highlights
Layoffs remain stubbornly high though longer term trends may be improving if only slightly. Initial jobless claims rose 10,000 in the July 16 week to a 418,000 level that's slightly higher than expected (prior week revised 3,000 higher to 408,000). The July 16 week is the survey week for the household employment section of the monthly employment report and a comparison with the prior survey week of June 18 shows an improvement but a small one at 9,000. A comparison of four-week averages during the same two weeks shows a smaller 5,000 improvement, to 421,250 vs 426,250.

Other data include a 50,000 decline in continuing claims for the July 9 week to 3.698 million with the four-week average down 4,000 to 3.721 million. The unemployment rate for insured workers is down one tenth to 2.9 percent.

There are no special factors skewing today's report with claims tied to the government shutdown in Minnesota adding up to no more than 1,750. The job market is still very tough though trends in this report hint at slight improvement from June's extremely disappointing employment report.

This is like listening to a multi-year broken record. The mainstream simply cannot admit that debt saturation has occurred and that attempting to force more debt into a saturated system results in higher unemployment. It’s mind numbing that we’re still caught in the central banker’s web of deceit.

Also mind numbing is how the situation at Fukushima is being handled. No real attempt at containment still, meanwhile radiation continues to pour into our environment where it winds up circling the globe. Here’s Arnie Gunderson with an update on the condition of the plant and also what is happening with what is now being called “black rain.”

Ex Japanese Nuclear Regulator Blames Radioactive Animal Feed on "Black Rain"

Stocks are looking and acting like they want to break out higher – from my perspective that is more tragic than if they follow a wave of deflation now. The markets are not free, they are not real, and they have never been more risk filled for the average investor. Again, my take is that we are all better off if you ignore the markets and find something real and productive to directly invest your money in. This is a throwback to the way business used to be financed, and it is the future if we don’t want to be ruled by central bankers who tell us nothing but lies.

Morning Update/ Market Thread 7/20

Good Morning,

I’m on the road with a business trip until Wednesday evening. I’ll attempt to get a post up if I have time, if not, please use this as your daily market thread…

Morning Update/ Market Thread 7/19

Good Morning,

I’m on the road with a business trip until Wednesday evening. I’ll attempt to get a post up if I have time, if not, please use this as your daily market thread…

Morning Update/ Market Thread 7/18 - Clowns to the Left, Jokers to the Right Edition…

Good Morning,

Equity futures are lower prior to the open with the dollar higher, bonds flat, oil down slightly, gold hurdling $1,600 an ounce to another all-time high, silver gapping higher, while food commodities wither in the scorching heat of impossible math.

Treasury International Capital Data (TIC) was released for May, Econoday reports the Net Long Term Securities Transactions (line 19) to be positive at $23.6 billion. In fact, however, the total Net Inflows for May were $-67.5 Billion (line 30 which nets out the total). Anyway you want to slice it none of it has an auditable trail and is therefore suspect at best – outright fraud is more likely. Here’s Econoday:

Highlights
Held down by increasing US investment overseas, net inflow of long-term securities slowed to $23.6 billion in May for the weakest reading of the year. US resident outflow totaled $21.0 billion, up from $14.2 billion in April and compared with $30.6 billion in March. Low US yields are likely pushing investment overseas and limiting investment at home.

Foreign buying of US long-term securities totaled an in-trend $44.6 billion in May and was centered in Treasuries along with a respectable total for equities. Foreigners sold government agency bonds during the month though they were moderate buyers of US corporate bonds. Foreign purchases were roughly split evenly between private investors and official institutions.

A look at foreign holdings of Treasuries shows incremental gains for China, to $1.16 trillion, and Japan, to $912.4 trillion, with a slightly more than incremental gain for UK accounts to $346.5 billion. OPEC, the fourth largest holder of Treasuries, shows a more than $8 billion gain to $229.8 billion. Russia, the ninth largest holder, fell more than $10 billion to $115.2 billion.

Here’s the entire TIC report:
TIC Data for May 2011

The Housing Market Index (can you say “Depression?”) is released at 10 Eastern this morning. Data the rest of the week is fairly light, with Housing Starts, Existing Home Sales, Philly “Fed,” and “Leading” Indicators.

The debt saturated condition continues to rattle Europe, of course, where there is huge underlying stress in the credit markets. The gap between this reality and equities has never been wider with the sick mainstream media publishing articles stating that the European debt crisis won’t affect our banks! Sick. In my mind that is a far more damaging and worse crime that tapping someone’s cell phone. But now we have arrests for that activity… surprising, I guess Mr. Murdock must be out of the central banker’s favor, and thus he shifted from the “club” side of the law, to the law that applies to everyone else.

Speaking of central banker mischief, note how all of the big banks report billions upon billions of profits and claim to have improving credit conditions that allow them to release “reserves” that magically turn into Ferraris for them? Well how does that square with MGIC’s report where they report losses amongst higher claims and more people falling behind on their payments? Gee, claims only rose 44% in the last quarter, as values plunged! Just a reminder that MGIC is the largest monoline insurer of mortgages. Again, just exposing more lies and more fraud from the central criminals.

The debt ceiling debate is really exposing the political clowns for what they are – central banking lackeys and manipulators of public opinion. Their scare you tactics have actually made the governors ban together to demand (dammit) that a “deal” be reached on the debt limit ceiling before economic catastrophe strikes! Laugh out loud at those clowns.

They don’t realize that economic catastrophe struck a long time ago and that they are a big part of the problem by not changing the way special interests (especially the central banks) are allowed to create their own money and use it to influence politics. This has led to impossible math that became impossible long ago.

This morning Weiss Ratings (not taken seriously by the mainstream, yet more accurate) downgraded America's debt rating to "C-minus — approximately equivalent to a BBB- rating by S&P, or one notch above speculative grade (junk)."

Guess I’m… Stuck in the Middle with You!