The Unexpected Blowup

[Guest]

no need to worry 'bout all that debt 'N' stuff

 

just git it on along with the flow

 

fact I've got me a bullish hankerin'

 

can't beat 'em, so join 'em

 

no sense cryin' 'N' watchin' Halliburton triple again without us

 

it's time to shake off the pine needles and come on outta the bear bunker!

 

get yo share!

 

dong or wrong!

 

Dow 30,000!

 

[DrStool]

Dow 300,000!!!

[DrStool]

:lol:

[Guest]

Big Earl

 

One-decision.

[capitall]

from a letter from a subscriber to Richard Russell at Dow Theory Letters:

 

"bankers earn by lending at interest and from the influence such lending gives them for other business opportunities and profits=power= profits=power, ad infinitum.

 

a central bank can create deposits, i.e. money out of air--and it's owners will earn interest on all it lends--the more it lends the more it earns.

 

it uses some of that 'created' money to 'buy' the lawmakers of our country so that they will use their legislative power to borrow from that PRIVATELY OWNED central bank "for" the American public--for wars, social programs, space etc--so much that the principal can never be repaid and interest payments will continue forever--that is then indentured slavery--50% a year in taxes, our children to be sent to war without choice when it's profitable --if slavery has another meaning I'd like to hear it.

 

what would you do or feel if you discovered that '70%' of the taxes you pay are for JUST the interest on debts that I HAD THE LEGAL RIGHT to put on YOUR credit card, without asking you-- and that the money was borrowed from my brother-in laws bank--and that this had been going on your whole life---and that your children and even grandchildren would need to work all of their lives to just pay my brother in law--and that in order to have a house and cars and schooling they would have to go privately in debt to my brother in laws associates, the private banks.

 

Henry Ford said that if the American public ever came to understand their banking, financial system there would be a revolution overnight--what do you think he meant by that?

<{POST_SNAPBACK}>

 

I don't get that at all. Over my head. I don't think the Fed gives a crap how much income it is making. After all, it has the "printing press."

 

Is it the Fed's fault that our society is addicted to debt?

 

No.

 

Is it true that 70% of our tax dollars go to pay interest on the debt?

 

Anyway, it sounds like a bunch of paranoid gobbledygook to me.

 

Not that the Fed or any other central bank is doing such a great job...

<{POST_SNAPBACK}>

 

Well, I don't know if it is all accurate. But the Fed does have an awful lot of power over people-- especially considering it is a private entity and people wrongly assume it is a part of the US government. I am not totally clear what the Fed's best interests are, or what they would make their highest profit or gain their highest amount of power from doing. But something tells me that its interests are not identical to those of the average American taxpayer, and thus at the very least there is a conflict of interest here.

[capitall]

from a letter from a subscriber to Richard Russell at Dow Theory Letters:

 

"bankers earn by lending at interest and from the influence such lending gives them for other business opportunities and profits=power= profits=power, ad infinitum.

 

a central bank can create deposits, i.e. money out of air--and it's owners will earn interest on all it lends--the more it lends the more it earns.

 

it uses some of that 'created' money to 'buy' the lawmakers of our country so that they will use their legislative power to borrow from that PRIVATELY OWNED central bank "for" the American public--for wars, social programs, space etc--so much that the principal can never be repaid and interest payments will continue forever--that is then indentured slavery--50% a year in taxes, our children to be sent to war without choice when it's profitable --if slavery has another meaning I'd like to hear it.

 

what would you do or feel if you discovered that '70%' of the taxes you pay are for JUST the interest on debts that I HAD THE LEGAL RIGHT to put on YOUR credit card, without asking you-- and that the money was borrowed from my brother-in laws bank--and that this had been going on your whole life---and that your children and even grandchildren would need to work all of their lives to just pay my brother in law--and that in order to have a house and cars and schooling they would have to go privately in debt to my brother in laws associates, the private banks.

 

Henry Ford said that if the American public ever came to understand their banking, financial system there would be a revolution overnight--what do you think he meant by that?

<{POST_SNAPBACK}>

 

I don't get that at all. Over my head. I don't think the Fed gives a crap how much income it is making. After all, it has the "printing press."

 

Is it the Fed's fault that our society is addicted to debt?

 

No.

 

Is it true that 70% of our tax dollars go to pay interest on the debt?

 

Anyway, it sounds like a bunch of paranoid gobbledygook to me.

 

Not that the Fed or any other central bank is doing such a great job...

<{POST_SNAPBACK}>

 

Doc, the fact that someone with your superior knowledge of the financial sphere does not completely and clearly understand this situation is frightening to me. How then can there be hope for the rest of us? If the Fed can print its way out of everything, then why would deficits matter? Why would we have to pay any taxes at all? Why not just print up the money to pay gov expenses? I don't know if we go to war to defend the currency, and the printing press rights that create it, but if we do, that would be a totally unforgivable problem with the Fed.

[psyche doctor]

I think we would all be better off if the fed were abolished. It is a devious institution, down right criminal. However, I would agree with Doc, that we ( the masses) are very stupid. I mean, like pavlov's dog, when rates are lowered we go en mass to refi our homes, borrowing of all sorts without any thought of the future. This kind of hysteria also helps drive inflation through what is really artificial demand, expansion of the money supply out of thin air, nothing. Can you imagine what it would be like if 90% of the populace purchased everything with savings instead of credit cards, If they didn't take the equity out of their homes for stupid thiings like vacations or google. I think we really are our own worst enemy. The Fed creates conditions for a bubble then we perpetuate it. Look at this housing fiasco. Why would I buy a dilapidated out house in California for a cool milllion, when I know it is worth nothing. I think we have more control over the value of things then we realize but are like sheep led from one disaster to the other. We have to learn how to protect our wealth and not let it be reallocated to

the sinister forces behind the scenes. Cut the damn strings, we vote every time we make a purhcasing decision or an investment decision.

[Guest]

Why would I buy a dilapidated out house in California for a cool milllion, when I know it is worth nothing. 

so you could sell it to someone else in a few months for 1.2 Million

 

that's the game that's been going on

 

you're right, many of these termite-infested outhouses are worth nothing, really -- they're a tax and maintenance liability that's all

 

so when the game ends, Templeton's 90% drop could very well happen

 

but nobody involved in the game will acknowledge that, they're too scared of being wiped out

 

and most of them will be wiped out

 

the rest will be stuck paying taxes on shitboxes nobody wants

[Peek Paper]

what sort of stuff does Radioshack sell?

 

God help the frivilous stores.

 

 

?

<{POST_SNAPBACK}>

 

Defective electronics and pimply salesclerks. I guess people are starting to catch on.

<{POST_SNAPBACK}>

 

I've wondered for 20+ years exactly what keeps them going.

<{POST_SNAPBACK}>

one of my two fondest memories of childhood is looking through the Radio Shack mail-order catalogue of the mid-60's and picking out circuit boards, relay switches, quantity solder, a few resistors/capacitors and multicolored flashlight bulbs for various nerdy 5th grade basement projects (I think I patented the first gerbil psycho maze; started out as a walkie-talkie...).

 

the other was checking out the lingerie section of the Sears Catalogue for cleavage shots...

 

in the past 40 years,society has, well...changed.

 

The Shack hasn't. RIP.

[Guest]

China to Quickly Invade Russia and Grab Siberian Oil Fields?

 

...Questions obviously remain as to how China would actually proceed militarily against Russia. However, there are some points to consider about Russia. First, the Russian state is economically weak, and they are unable to adequately fund their military forces. Likewise, the caliber of those forces is in serious question, as events in Chechnya have made abundantly clear. Any significant military action would sap much needed funding from the Russian economy, something the state simply cannot afford. The distance that would have to be traveled, by both troops and the supplies necessary to keep them at fighting levels, is daunting -- Russia having by far the largest landmass of any nation on the planet, and Siberia being a rather inhospitable territory....

 

The Chinese central bank holds foreign currency reserves that have reached $819 Billion, a foreign currency reserve second only to Japan and expected to exceed that nation's reserves this year. China has invested about three-quarters of this reserve in U.S. Treasury bills and other dollar-dominated assets. China's purchase of Treasury bills, in additions to similar purchasing by Japan and other nations (predominantly OPEC members) is responsible for much of the value of the U.S. dollar, and China uses the purchases to keep its own currency -- the yuan -- undervalued, thus maintaining a balance of trade that vastly favors cheap Chinese manufacturing goods. This also has the effect of holding U.S. interest rates at low levels, besides keeping the dollar at a high value worldwide. Chinese currency reserves are growing at an average rate of $15 Billion each month....

 

....South African Petroleum Company has agreed to allow Cnooc Limited, China's state energy company, to purchase a 45-percent stake in a Nigerian offshore oil field that has proven reserves in excess of 620 million barrels and almost 4 trillion cubic feet of natural gas. The field is expected to provide in excess of 150,000 barrels of oil per day by the year 2008, 45-percent of which would translate into a 20-percent increase in total production for Cnooc. The deal cost China $2.27 Billion. China, through China National Petroleum Corporation, is already the largest member of a partnership extracting oil in Sudan, and has built a major amount of the oil infrastructure in that nation....

 

...China has been spending vast sums of money in recent years for oil and natural gas all over the world, and these purchases have sometimes been called significant overpayments. Venezuela, Angola, Indonesia, Australia, Kazakhstan, and Iran have all signed lucrative oil and natural gas deals with China in the last couple of years, and when the Nigeria deal is factored in the price for these seven deals could total nearly $100 Billion. Additionally, China is engaged in a struggle with Japan over a pipeline from Siberia, to bring oil from rich Russian oil fields in that region.

 

...To sum up, China is using short-term tactics to disguise their true oil consumption and keep prices from rising too quickly; to build a bundle of reserve currency in U.S. dollars to keep their exports cheap and their currency undervalued; to develop multiple oil deals with nations outside of the Middle East; to secure an infrastructure deal in Siberia; and to swell their global trade surplus to amass as much hard currency as possible to finance their oil deals, manufacturing industry, and military. For the long-term, China seeks to shift their currency reserves from dollars to euros; to have a hand in convincing Iran to adopt an embargo against the West and send most of its oil into China; to cause a quick, mass devaluation of the dollar and instigate a pull-out of foreign investment in Treasury bills, to precipitate an economic crisis in the U.S. and Japan; to see OPEC drop the petro-dollar in favor of the euro, so that Europe's strong currency leads to a transfer of the Chinese export market from the U.S. to Europe; to draw North Korea closer to China politically, economically, and militarily, to advance the plan for North Korea to possibly invade South Korea and/or lend it's nuclear arsenal as leverage against Russia and the U.S.; to weaken the position of the U.S. in the Middle East and Central Eurasia in general, to head off any attempt by the U.S. to interfere in China's attempt to invade Russia and to also stymie any U.S. attempt to deal with Iran militarily; and finally, to succeed in securing the Siberian territory from Russia through armed conflict, thus taking possession of the oil and natural gas in that region...

[summoner]

MMOY ...that you from clearstation?....I used to post over there 200-2002 as orthodoc.....rememeber you had some great PM charts when they first started rolling.....DROOY 50cents, BGO 50 cents....the good ol days

[Peek Paper]

So, basically the correction of this Secondary non-confirmation allows the rally separating Phase I from Phase II of the bear market to continue a while longer. In the meantime, there are indications that a shorter-term correction could be in the cards.

 

Tim Wood today

[Black Prince]

In the early 60's I always liked Popular Mechanic over at my piano teachers Peek.

I was comparing QEE from wyndy's reco to GLD and I think that from now on if gold does advances much more from these price levels that QEE will have the same leverage as a call option on gold but with the beni that you will not be butt wiped out at OPEX

[Black Prince]

After a few tokes this makes much more sense but it is worth reading.

http://www.economicfractalist.com/

[lineup32]

China to Quickly Invade Russia and Grab Siberian Oil Fields?

 

...Questions obviously remain as to how China would actually proceed militarily against Russia. However, there are some points to consider about Russia. First, the Russian state is economically weak, and they are unable to adequately fund their military forces. Likewise, the caliber of those forces is in serious question, as events in Chechnya have made abundantly clear. Any significant military action would sap much needed funding from the Russian economy, something the state simply cannot afford. The distance that would have to be traveled, by both troops and the supplies necessary to keep them at fighting levels, is daunting -- Russia having by far the largest landmass of any nation on the planet, and Siberia being a rather inhospitable territory....

 

The Chinese central bank holds foreign currency reserves that have reached $819 Billion, a foreign currency reserve second only to Japan and expected to exceed that nation's reserves this year. China has invested about three-quarters of this reserve in U.S. Treasury bills and other dollar-dominated assets. China's purchase of Treasury bills, in additions to similar purchasing by Japan and other nations (predominantly OPEC members) is responsible for much of the value of the U.S. dollar, and China uses the purchases to keep its own currency -- the yuan -- undervalued, thus maintaining a balance of trade that vastly favors cheap Chinese manufacturing goods. This also has the effect of holding U.S. interest rates at low levels, besides keeping the dollar at a high value worldwide. Chinese currency reserves are growing at an average rate of $15 Billion each month....

 

....South African Petroleum Company has agreed to allow Cnooc Limited, China's state energy company, to purchase a 45-percent stake in a Nigerian offshore oil field that has proven reserves in excess of 620 million barrels and almost 4 trillion cubic feet of natural gas. The field is expected to provide in excess of 150,000 barrels of oil per day by the year 2008, 45-percent of which would translate into a 20-percent increase in total production for Cnooc. The deal cost China $2.27 Billion. China, through China National Petroleum Corporation, is already the largest member of a partnership extracting oil in Sudan, and has built a major amount of the oil infrastructure in that nation....

 

...China has been spending vast sums of money in recent years for oil and natural gas all over the world, and these purchases have sometimes been called significant overpayments. Venezuela, Angola, Indonesia, Australia, Kazakhstan, and Iran have all signed lucrative oil and natural gas deals with China in the last couple of years, and when the Nigeria deal is factored in the price for these seven deals could total nearly $100 Billion. Additionally, China is engaged in a struggle with Japan over a pipeline from Siberia, to bring oil from rich Russian oil fields in that region.

 

...To sum up, China is using short-term tactics to disguise their true oil consumption and keep prices from rising too quickly; to build a bundle of reserve currency in U.S. dollars to keep their exports cheap and their currency undervalued; to develop multiple oil deals with nations outside of the Middle East; to secure an infrastructure deal in Siberia; and to swell their global trade surplus to amass as much hard currency as possible to finance their oil deals, manufacturing industry, and military. For the long-term, China seeks to shift their currency reserves from dollars to euros; to have a hand in convincing Iran to adopt an embargo against the West and send most of its oil into China; to cause a quick, mass devaluation of the dollar and instigate a pull-out of foreign investment in Treasury bills, to precipitate an economic crisis in the U.S. and Japan; to see OPEC drop the petro-dollar in favor of the euro, so that Europe's strong currency leads to a transfer of the Chinese export market from the U.S. to Europe; to draw North Korea closer to China politically, economically, and militarily, to advance the plan for North Korea to possibly invade South Korea and/or lend it's nuclear arsenal as leverage against Russia and the U.S.; to weaken the position of the U.S. in the Middle East and Central Eurasia in general, to head off any attempt by the U.S. to interfere in China's attempt to invade Russia and to also stymie any U.S. attempt to deal with Iran militarily; and finally, to succeed in securing the Siberian territory from Russia through armed conflict, thus taking possession of the oil and natural gas in that region...

<{POST_SNAPBACK}>

 

Maybe CNN will carry it live!