Wednesday, May 29, 2013

Open Letter to the Volcker Alliance

Recently there was an article on Bloomberg regarding the Volcker Alliance. Here's a short piece and then my immediate email to them.

“Trust in American government has been declining for decades and similar attitudes are evident in other democracies,” he said. “Trust rests on confidence, and too often government, at all levels, in the eyes of its citizens, has been unable to respond effectively to the challenges of the day.”

Those challenges, he said, include the recent controversies involving the Internal Revenue Service and the Justice Department, which “underscore the relevance that government’s execution of its policies has on the lives of its citizens.”


My email:



"To whom it may concern:

I’m writing you in response to an article recently posted on Bloomberg regarding the Volcker Alliance’s efforts to investigate the lack of trust in our government and other democracies around the world.

I’m going to give you one big hint to start this all off. Mr. Volcker states in that article: “Trust in American government has been declining for decades and similar attitudes are evident in other democracies,”

If you all can actually look into this without bias or intellectual hubris and arrogance or making your determinations beforehand you will find a couple of things that are making people ABSOLUTLEY FURIOUS throughout the world.

1)      Fractional reserve banking.
2)      An impossible tax code run by the IR-SS. What’s coming next are uniforms and salutes to the supreme leader.
3)      Crony capitalism. Fraud on an epic scale. Martha Stewart goes to jail for insider trading and now Jeff Skilling is going to be let out of jail early? HSBC is a criminal organization that is running money for drug lords and Eric Holder says we can’t even arrest a teller!!! Get a clue! Eric Holder will be absolved from his recent perjury charges as well. Watch. That’s the trust people have in this current “system”. Lying, fraud, cheating, embezzlement, racketeering, coercion, collusion price fixing, etc., all go unpunished while citizens of the world witness this and you are going to turn this into an academic endeavor many, many years too late. I’m sure I’ll be dead before I see reform. Either that or collapse.

Here’s another lead for you, a quote from Senator Dick Durbin: “And the banks… they frankly own the place”. That inspires confidence. And we all know it’s true. Corporations can give unlimited amounts of money as an individual but cannot be prosecuted thus? Outrageous!

The real problem is that the “intellectuals” and political leaders of the world still have feudalistic thinking and believe that the common man doesn’t understand how the system works and all of their efforts are top down and we just have to sit around and wait for what’s coming. And we believe that what’s coming will serve the current status quo first. But in all your research don’t forget to look into things like the French Revolution when the common man was left out of the equation.

But perhaps your fact finding mission isn’t geared towards your stated purpose. Perhaps you are simply looking for ways that the world’s governments can manage the populace of the world given the current infrastructure and institutions….more of the same with a different veneer.

If that’s the case, I say good luck to you. You will fail.

Sincerely,

One very frustrated person"

Tuesday, May 21, 2013

Strong Suggestions for the Next Six Months

Look at these two pieces of data and add it to the rest of your data depository:

From ZeroHedge



In general when equity prices are rising and credit spreads are tightening, the ratio of gold-to-silver prices falls as 'fear' ebbs away and confidence in a real economy returns as exemplified by the rise of risk assets. Twice before we have seen the anti-correlation of stocks and gold/silver flip to a highly correlated regime, and as Bloomberg's Chart of the Day notes, each time it suggested "stocks were due to snap". It seems a concerted push above and a 50x ratio (for gold-to-silver) tends to exhibit notably risk-off behavior. Currently, the S&P 500 and Gold-to-Silver ratio have been highly correlated since this last rally began in stocks and as HSBC's Charles Morris notes, this suggests a 'snap' in risk assets within six months.


 And this from King World News regarding Soros calls on the GDX:

So he’s risking his money in a relatively short period of time.  The disclosure in the filing does not give you the duration of the call option, but it should logically be listed as a warrant if it was more than a year.  And having structured these kinds of products back in my days on Wall Street, and sold them to clients, typically options of this type have anywhere from a 30 day to a six month duration.

Dow or Gold? Two Charts

For those Dow cheerleaders out there. The Dow can only go up so long.....