The news is coming fast and furious, and the desire to analyze is understandable, but questionable at these late stages of the game. In the last week, whether it be here at “rogue money.net”, or any top media site, attempting to provide honest news coverage is daunting to say the least, especially with the international scope of geopolitical and economic changes coming in such rapid fire fashion. As has been mentioned before it is best not to get lost in the minutia, but stay focused on the coming train wreck that is part of the big picture. The recent article from Ken Schortgen Jr. was in my view an absolutely brilliant description of the macro changes surrounding the Chinese yuan devaluation. And put my mind in hyperdrive, regarding the quick way the macro world is now transferring to the micro environment that we all experience. More on that in a minute.
Also it has occurred to me that some punishment will be, and should be handed out to the sheeple, and the the PPPTB (paper pushing powers that be). I was stuck on some 5th grade logic over the weekend. Logic I had to ‘smoke over’ with one of my favorite Wolf Pack Think Tankers, and we both agree a 5th grader would understand the necessary measures to correct our problems. So why can’t we figure it out? The answer later, but it is a bit controversial. First only a few news releases, hopefully some that weren’t already in the limelight, but ones that pointed to the ideas Ken’s recent article planted in my head.
News Minutia You can Use:
First let me say that the news right here on RM with the latest from “The Economic SilverBack”, Ken Schortgen Jr., and “The Russian Analyst” are more than enough to keep you awake at night, but I will delve briefly to the outer alternative news reaches.
First you can deny this is important, that is “can deny, not can’t”….check this out:
Getting serious, this next article cements the thought that you should get your final silver inventory in order now, or the proverbial, “or else”, will be applicable
I can confirm the above articles subject matter via my own retail metal’s sources, and they say the inventory for sale is low, and premiums of 8 dollars over on silver eagles aren’t unusual. Get it while you can, something is overheating on the front burning, that is for sure.
Below is more proof from Steve St. Angelo at “srsrocco.com”, detailing how the true global supply of silver is actually going to disappear (it is worth noting that this article came out several days prior to the previous article’s release) .
The above two articles tell you, get into, and hold on to physical silver. RMer’s probably know this, but if you are still trying to reach your inventory goals, your time is ticking to an uncontrollable close.
Hey check out the next one. Wonder if they consulted with Robert Rubin former Citi Wizard for this enlightenment, or did they find some “scrolls” with messages tied to some gold covered tungsten bars assayed by the Citi genius?
Check out the telling charts in the next article, and the title that says it all “Are Automakers About To Hit the Panic Button?” Here is the brief “To Sum Up…..” segment at the end from “ZeroHedge”
The only way automakers are making sales is by lowering credit standards to truly mind-numbing levels.... that cannot last. China's economic collapse has crushed forecasts for the automakers. Inventories are already at record highs. And July saw a massive surge in producton. What comes next is simple... a production slump - just ask The Atlanta Fed.
The next one is rather ominous, but nowhere to be found in the msm (mainstream media):
The above article from ZeroHedge brings to mind the saying, “move along nothing to see here”, well at least not if you try to find this news in the msm.
Tying the automaker message into this next article, begs the question, “What are the CNBC bobble heads singing on TV right now?” Oh I know it’s “we’re in the money, we’re in the money…..”, check this out:
The above link shows that it ain't so happy in the retail sector, and especially the demand, in the all important ”NEEDS” items...This auto 'bs', and furniture subprime 'bs' is the last struggling breathes of a dying economy. An economy filled by morons who are totally asleep at the wheel while texting their way to a phony nirvana. A nirvana that will come to a brutal form of punishment, to shortly be reviewed by the mind of my fictitious 5th grader. Don't expect anything from the msm, until it is too late, otherwise get used to choruses of "were in the money".
As discussed frequently here on “roguemoney.net” the bond market is many times more significant than the equity markets, and this next link serves as verification:
The above doesn't bode well for equities, and note the 2008 comparison to the equity market complacency. Best to be off the market playing field for this one, and enjoying the view with a hand full of hard assets, or more! And, this quote from Bank of America in the above article shows the 2008 similarities (note the chart in the article as well):
In BofA's own words: "this spread currently translates into 10.26 bps of credit spread per point of equity vol, the level reached on March 6, 2008 – ten days before Bear Stearns was forced to sell itself to JP Morgan for $2/sh. Recall that – unlike the credit market – the equity market well into 2008 was very complacent about the subprime crisis that led to a full blown financial crisis."
Amidst the graphs this conclusion from Bank of America: In other words: unprecedented equity complacency matched by a state of near bond market panic
The Wolf Gray sense of smell says, on the surface this is very significant, because it is negative news coming from a “PPPTB’er”, which means: “Big changes are coming, especially to those that aren’t prepared!”
The title of the next article from ZeroHedge is instructive to the macro changes that are comparable in some ways, to the writings of Ken Schortgen Jr. In which Ken illustrates how small economic changes are now having more impact on the western financial systems, than the eastern economic doctors are prescribing (but they might be enjoying the western results).
The Crisis Is Spreading: China, Australia, Brazil, Canada, Sweden...
The final lines of the above article speaks volumes:
China, Australia, Brazil, Canada, Sweden - it is beyond us how anyone can declare the crisis isn’t spreading. Be prepared – there are going to be lots of opportunities to both make and lose money. But first, you have to recognize what is happening.
This is the perfect time to lead into…….
Big Picture Focus:
First from the wise Ken Schortgen Jr.:
The significance of this is… suddenly, the West is no longer controlling global monetary policy but is instead reacting to the actions taken by China, who seems to have wrenched that control from the impotent Western central banks.
Followed by this blockbuster paragraph & one more line:
Since China announced an update to their gold reserves, they have been prodding the U.S. and Europe with small pin pricks to see what reactions it would have on the fragile Western economies and monetary systems. In fact, if China had really wanted to do some serious damage to the global economy they could have instituted more drastic corrections such as announce much higher gold reserves, increase their dumping of dollars, lowered their interest rates (which are still at or above 5%), and or as an extreme measure, completely un-peg their currency from the dollar. The problem for the U.S. is that they have already played most of their cards, and are left resorting to military responses in retaliation of economic threats.
That is a mouthful or a “pen full”, but it is a brilliant angle that I have not seen detailed, as it would apply to the macro environment, via any other “expert”. I agree with Ken, and just wish I had thought of it by myself. A strong opponent with a well thought out game plan is never veered off course due to small moves, like those from the pawns on the front lines. Only a weak, or already weakened adversary will stumble over minor moves or obstacles. Ken’s article made me realize the possibility that something else is totally out of the standard "fiat economic kilter".
Based on the news releases in the alternative media the micro world is falling prey to the developments in the macro world at warp speed. In fact, if one has their news radar on high alert you would note that local real retail sales numbers are collapsing ahead of major moves like the Chinese “treasury bond” dumps to the tune of 500 billion + dollars. Or better yet the sales are slumping at the local retail level with inventories building almost simultaneously, and all coincidentally with the release of macro bigger brother's negative news, like the Baltic dry index or the CCFI (China Containerized Freight Index) running aground.
Typically there can be months or even a couple years before macro changes can be seen affecting the pocket books in the micro world. RMer’s probably already have the answer to this one, I am just little slow sometimes………..
In short the PPPTB have been hiding the negative macro world statistics with an assist from overly optimistic news media. All to keep the masses who are most immediately effected in the micro world from going ballistic on the anger scale, and becoming their own macro event. Now that would be news no one could hide! The Wolf Gray’s sense of smell says, they will only quit trying to hide the macro economic disasters, after the Sixpack’s can’t explain their declining standards of living effectively. At that point, the msm's hiding of the obvious macro disasters, allows them to say just one more time, “Hey no one saw this one coming!”
It would appear at times that the micro world is literally preceding correspondingly similar events in the macro world. It ain’t, after all I have never heard this business axiom “don’t fight the Sixpacks” in the economic realm, instead it is, “don’t fight the fed” or “don’t fight the trend”. Though the macro world may pick up trends from the micro world, it is the macro that controls major life changing events. In auto racing terms the current environment has the micro world in a super tight draft behind the macro world. Much tighter than normal, and in a draft that can’t be safely maintained.
I would submit with this super tight “news draft”, that once everyone gets it via those in your face micro signals, they will all be sorely disappointed at their ineffectiveness in being able to prepare accordingly. The products needed, will literally not be on the shelf. As an example, note the aforementioned referenced links in this installment, highlighting the supply problems in silver, verified by my own on the ground intelligence confirmations.
It is time to probe the minds of the astute RM gang. Are their any markets that are upside down in the relationship of the micro to the macro environment? I like to call it “satisfaction of the dirty here & now vs. the sweet by & by”. My first thoughts run headlong into metals price backwardation, especially in all the monetary metals. This is an example of true market manipulation, and true market price destruction that will eventually (sooner than later) reach it’s rightful price for all physical owners. This is no different than the media’s long time suppression of the macro world’s deteriorating economic numbers.
The nature of business systems seldom change, but the status of those systems may be lied about over & over to the unwitting masses. The macro has to lead comparable developments in the micro world by some measure of time, and that is what the China’s, the Russia’s, the BRICS’s, and the Texas’s have understood, “that measure of time”. And, it sure looks like it, “that time”, is running out. Ken’s article on small obstacles upsetting huge apple carts, tripped my macro vs. micro time meter.
Looks like the alarms and wake up calls are just around the corner, but there will not be any time for breakfast for those that aren’t prepared in advance. They seem to be too busy satisfying the “Dirty Here & Now!”
Minutia in the Global News & It’s Effects:
From all the recent news worthy items outlined by Ken Schortgen Jr., “The Economic SilverBack”, and “The Russian Analyst”, especially at this late stage of the game, there is only one thing you can do……PREPARE YOURSELF NOW AS YOU CAN”T CONTROL THE MINUTIA. It is good to stay informed as regards the players, and their global minutia game plans, but the only useful solutions available to those that are stuck amongst sheeple, revolve around “Getting Prepared Now!” The train wreck is happening right now, it just hasn’t reached the USSA passenger cars in a tangible way.
5th grader Style Punishment Coming, & Possibly Needed?
Many times one has to ponder the question of why the heck are things out of control? Myself and one of my “Wolf Pack Think Tank” comrades are of the opinion there ain’t enough pain involved to stop the offenders. Major bankster crimes hit the news outlets, and who pays? Probably not them even after being found guilty of a crime, and having a pittance of a fine levied. And, the end result…….No changes whatsoever in the bankster game plans! If instead of fines, the declared penalty was a few years with a 27 year old, 6’8” 280 pound, over testosterone’d roommate named Bubba, the problems may stop. No pain, equals no gain for honest society.
Here is the hypothetical conversation I contrived with my think tank friend involving a 5th grader (in this case let’s say son). The back drop is "the misbehaving of the banksters", and I then tell junior, “They will not quit being bad, so what should we do junior? Junior’s question, “Do you take away their lunch money or give them a spanking with a thick belt?” Answer, “We just take away their lunch money!” Junior’s enlightened reply, “Pop didn’t you tell me sticks and stones may break my bones, but words will never hurt me!” The conversation can end here, as you can see where this one is going, and the 5th grader is right, there ain’t enough pain involved to correct these criminals.
Broad Installment Overview:
Each of the above subtitles could be summarized as “man has lost his economic and moral equilibrium". The west has been so full of themselves, that planning for “the sweet by & by” has become meaningless. It would appear they feel, they are chosen, and thus just plain “Lucky”! So they feel entitled, and therefore they might as well enjoy “the dirty here & now” at the EXPENSE of “the sweet by & by”. The unavoidable problem, is each soul on earth will soon be put in “Time Out” by Economic Mother Nature. Only those wise enough to prepare for “the sweet by & by” with time tested, tangible, hard assets will come out ahead on the other side of the mayhem. It would appear that those in the west are content to follow along the story lines of “Lucky Man” by Emerson Lake & Palmer…........be sure to honestly ask yourself; "Are you too comfortable & content?"
The following song was supposedly written by Greg Lake when he was 12 years old. I guess in the UK it takes a 6th grader, not a 5th grader, to come to the most obvious of conclusions!
He had white horses and ladies by the score All dressed in satin and waiting by the door Ooh, what a lucky man he was Ooh, what a lucky man he was White lace and feathers, they made up his bed A gold covered mattress on which he was laid Ooh, what a lucky man he was Ooh, what a lucky man he was He went to fight wars for his country and his king Of his honor and his glory, the people would sing Ooh, what a lucky man he was Ooh, what a lucky man he was A bullet had found him, his blood ran as he cried No money could save him, so he laid down and died Ooh, what a lucky man he was Ooh, what a lucky man he was(ELP)
Nope, "No FIAT money could save him, so he laid down and he died"
Credits to the thoughts of: Opie, Ken Schortgen Jr., The Economic SilverBack, The Russian Analyst, Steve St. Angelo, and ELP