The Grand Finale Pt. III: Janet Does Davos (latest update p. 195)

And so America's Retail Apocalypse comes back into focus...

Thread: DOOM..............Walgreens to close 76 unprofitable stores, 14 in the West

Hope No One Thought The E.U. Was Cured...

Thread: Italy may soon have to pull out of euro

This doesn't seem to be a good sign...

[link to finance.yahoo.com]

[link to www.godlikeproductions.com]

Thread: Economist Caution: Prepare For 'Massive Wealth Destruction'!!!

They're warming up in the Fourth Ring...

Last Edited by Saddletramp on 03/26/2014 11:34 PM

Posted this thread 19 days ago, before the Fed continued to taper at the March FOMC...

Thread: Welcome To The Liquidity Crisis: If You Still Have Money In Equities, Run, Don't Walk, To Get It Out NOW!!!

It's on like donkey kong...

Citigroup Fails Fed’s Stress Test as BofA Gets Dividend Boost

"Citigroup Inc.’s capital plan was among five that failed Federal Reserve stress tests, while Bank of America Corp. won approval for its first dividend increase since the financial crisis... Citigroup, as well as U.S. units of Royal Bank of Scotland Group Plc, HSBC Holdings Plc and Banco Santander SA, failed because of concerns about the quality of their processes."

"The Fed made no mention of the bank’s discovery of a $400 million loan fraud last month at its Mexico unit, which had stirred speculation that regulators might fault Citigroup’s controls. Corbat has vowed that the people involved will be held accountable."

[link to www.bloomberg.com]

Thread: New Doomsday Poll: 99.9% Risk Of A Carsh, Black Swan Crisis Warning Now Through Mid-April

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Last Edited by (**)(**) on 03/27/2014 10:52 PM

Saddletramp -

I've read all your threads and 11/10 for tying it all together! Kudos.

Now I have a question for you. How confident are you after the potential 50% decrease in the DOW and the bailout turned bailin in Europe, that they will reset the world economy at this point? You seem to be saying at the bottom of this crash, that's it game over. Now I agree a deflationary crash is coming, but where you believe it ends, that's where I believe they'll print like it's going out of fashion. Surely desperate times require desperate measures... My view is inline with Martin Armstrong's ECM and I think we have 18 months left before we get the real collapse, this one is just a precursor to more money printing IMO.

I agree with everything you've said, it's just I picture the end slightly differently. What do you think?


IMAGE ( [link to www.forex-goodies.com] )


Last Edited by (**)(**) on 03/27/2014 10:50 PM

I agree that the deflation will become hyperinflation before it's over, and yes they may try to throw cash at it in the end, but borrowing around the world is tapped out, and even if they didn't print interest rates will cause hyperinflation before it is all said done.

How long TPTB let the chaos go on will be determined by how long it takes to get people used to the idea of a currency reset.

Regarding how confident I am in the currency reset projection I've made, probably 75% right now. There are still some players that could muck up the works, but this plan has been in place since 2010, and probably discussed even long before that. If you read BIS white papers, they strongly hint at this type of plan, and the main reason I believe this is, if I was a Keynesian it's what I would do...

Thanks for the reply. Understood.

So if everything is going to be reset on a country by country basis against held assets, what is a likely scenario for someone who holds those assets? i.e. If I'm heavily invested in gold and silver and Sterling is reset so it effectively halves, could that mean my gold and silver double or will it do better? It's extremely difficult to appreciate what the free market value of physical gold and silver should be at the moment, let alone after a reset. Based on current expectations, how high do you think gold and silver could go in today's money and do you think those potential profits will be hived off in retrospective taxes?

Just curious what your opinions are...

FYI - In the UK gold/silver Britannias and gold Sovereign coins are capital gains tax free as they're classed as legal tender.

Last Edited by (**)(**) on 03/27/2014 11:35 PM

I hesitate to call a market top for Gold, but understand this, for China to effectively back their currency with current gold reserves and rare earth reserves they could only back about 25% of the current monetary base of China if Gold were $50,000 per ounce.. Haven't looked into monetary base of England but I wouldn't be surprised if they weren't in the same boat. So I think gold will have to move substantially higher I order for this plan to work.

Understand, I'm using current currency values in these calculations, so if they cut the monetary base by 50% or so that would theoretically double the buying power of the currency...

It's hard to fathom such lofty figures as it's so far away from current market values, but your theory fits with everything I've seen. It's also inline with Jim Sinclair's recent announcement, who despite constant ridicule has been proven right, time and time again.

I appreciate you say you're not a chart person, but try and understand what this chart is saying. I appreciate 2 data points don't form a trend, but that lower `potential` trend line matches my expectations.

[link to www.evernote.com (secure)]

Saddletramp -

I've been thinking about these threads of yours, I think you should compile them in to an article and submit it to Zerohedge, your views need a wider audience.

They've been all over the internet...

I gave a free copyright as long as they credited back to me.

HEADS UP

Just an FYI, the Volcker Rule is going into effect on April 1, 2014. This rule will force banks to stop trading in commodities and certain derivatives for their own benefit and from their own investment or risk management accounts.

In 2008 when Basel 2.5 was issued it also went into effect on April 1, 2008. Bear Stearns had already folded and merged with J.P. Morgan in March of 2008 and many thought Basel 2.5 was in response (though it had been in the pipeline for awhile). Basel 2.5 changed the risk based capital value of Mortgage Backed Securities depending on rating. This rule basically cut some bank balance sheets in half in relation to risk based capital.

Now, within 2Q (Sept 2008), or six months, after Basel 2.5 the whole financial crisis was in full bore.

Will it take 6 months for Volcker and Basel III to have a similar effect?!?!?

Just FYI and a clue perhaps...

On a personal note I think it may happen faster this time because of the nature of Commodity & derivative trading. He who sells first sells best in a declining market, but we shall see...

Last Edited by Saddletramp on 03/28/2014 11:23 AM

By interest rates causing hyperinflation do you mean that because of the debt in the system the Fed would not be able to get out in front of inflation and jack rates high enough and fast enough to crush it like Volcker did in 79-80, instead increasing the cost of money and commodity prices in the whole system until it spins out of control into a bond market collapse?

I mean the inflation is going to take place through high interest rates in the credit markets rather than through traditional commodity or wage inflation.

The jack-jaw smack-down of the century is just about here..........

[link to www.godlikeproductions.com]

Thread: Bombshell '60 Minutes' Report - Stock Market Rigged - May Shake Wall Street To It's Core!

60 Minutes, only 5 years behind the curve as usual...

In Less Than Two Days, Japan Will Walk Headfirst Into An Economic Buzzsaw...

[link to finance.yahoo.com]

Watch Japan...

Not like this wasnt known with all central banks:

China Officials Fibbed To Depositors To Stop Bank Run
[link to www.forbes.com]