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Wednesday's newsletter

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This is the fianacial newsletter I get...Its free..so anyone can sign up....I am going to be posting it on Wednesday's and Sundays when it comes out. I have made a ton of money following him for the last 3 years and I appreciate the updates on the political front...and I thinks its important to get out the info you will not hear about on the local news. I hope this does not offend anyone...here you go...................

 

 

Today's Relatively Short Rant:

 

Can you smell the fear? What fear you ask? Well some of our Nations Senators, you know the guys whom the banking industry paid dearly to "own" are beginning to sweat a little. They see Obama's popularity falling, and that bothers them. Should they align themselves with every socialist policy this lunatic is putting forth knowing there's an upwelling of popular dissent? How about Ron Paul and his bill to audit the FED? That makes the elitist bankers very very nervous, and thus they have put pressure on their bought and paid for Senators to block the movement. Can you smell it? That smell is primevil, it's good old cold sweat fear and boy is it overdue.

 

It's long time that the very people we send to Washington start to fret a bit. They have abdicated their responsibility to us, and fell into the popular political maneuver of simply trying to save their own jobs and high lifestyle. I find it literally amazing that they could have the unmitigated gall to stand against what's right for America, and do what's "good" for them. Yet I don't suppose this is going to last for very much longer. American's are without a doubt dumbed down, without a doubt more caught up in Michael Jackson's death than in what happens in Washington. But as more and more people are getting hit square in the pocketbook, well now you've crossed the lexicon. Now your in their back yards and they are slowly awakening.

 

In the many years this letter has gone out we've done our best to describe in detail exactly how this great country has been handed over to the bankers, corporate rulers, and Washington hacks that run this place. For the most part it fell as silent white noise as people were happy being, well, fat dumb and happy. But now that the money is gone, now that inflation is roaring, now that ends aren't meeting and there's no credit to bridge the gap, they're getting skinnier, smarter and madder. So, lets start with Ron Paul.

 

As you all know by now, the FED is unconstitutional. It's blanketly and totally illegal according to our forefathers wishes. But "they" got the FED in back in 1913 and since then they've done a wonderful job of screwing up an awful lot of things. The great depression comes to mind. WWII comes to mind. The Inflation of the 70's, the S&L crisis, the NASDAQ bubble, the housing bubble. Should I go on? I can, but I won't, lets just say that in summary, their charter demands that they uphold the value of the dollar, while not allowing inflation. Since 1913, the value of a dollar has fallen from, well a dollar, to well about 7 cents. They failed. But not only did they fail, they made trillions along the way for themselves and their member banks. Don't forget they are a private outfit.

 

So our buddy Ron Paul who has championed for sound monetary policy for 25 years came up with a bill to allow the first total audit of the Federal Reserve. No one knows how much money they have, no one knows how much money they print and whom they give it to. Since every penny they create ends up being a debt to the American people, Ron believes the American people are owed an Audit. Well so do I and a host of other people. But as you can imagine, this is very bad news for the FED, as they love gorging themselves at the public trough and creating billions for themselves and their buddies out of thin air. So, they have "instructed" their bought and paid for politicians to shoot this down at any cost.

 

This first salvo came from Senator Demint of South Carolina who is on board with Ron Paul's quest.

A little while ago, the Senate voted to pass HR 2918, the Legislative Branch Appropriations Act. This $3 billion bill contains, among many other things, provisions for GAO audits on certain agencies.

 

Seizing on a chance to take quick action to bring Audit the Fed up for a vote, and with the GAO provisions in mind, Senator DeMint attached the full text of S 604, the Senate version of Ron Paul's Audit the Fed bill, to HR 2918 as Senate Amendment 1367 before it was considered for final passage. However, Senate Democrats refused to even allow a vote on the amendment! That's right. The internationalist, Fed-loving elite in the Senate used a parliamentary tactic to shut down DeMint's amendment.

 

After Senator DeMint brought Audit the Fed to the floor, Senator Ben Nelson of Nebraska raised a "point of order" to prevent a vote, claiming that the amendment violated Senate Rule 16 by "legislating" on an appropriations bill. The Senate president agreed, and the amendment was shot down. Senator DeMint did not back down, though, and directly challenged Senate leadership by pointing out the other GAO audits contained in the bill. As Senator DeMint listed them off, the Senate president was forced to agree with Senator DeMint that each one he described, all of which would be left in for final passage, also violated Senate Rule 16.

 

Which tells us at least one thing: the problem wasn't with "legislating" on the bill or violating Senate Rules (which is commonly done). Shooting down the amendment was about preventing a thorough audit of the Federal Reserve for the first time in its history!

 

Now isnt' that interesting? For what good purpose could the uhm, "fine" Senator from Nebraska have against moving this vote forward? Does he not work for us Americans? He's supposed to. Yet for some reason he believes that a private band of bankers should have complete and total anonymity concerning how they lay down our economic policy. Now if that doesn't stink like 5 day fish, nothing does, but in politics its just another day in the park. I'd like you all to take note of this man and his action, because he certainly doesn't deserve to be re elected in the next Senatorial vote. It's scoundrels like that, that make me sick.

 

The FED is the sole reason we have crashes and booms. Their is indeed a "natural" cyle of ups and down in an economy, but it's self regulating. The FED braniacs however feel they are so much smarter than the free market and bend, contort and twist policy to the point where we get these ridiculous booms and subsequent crashes, and this time they went waaay too far. This housing/credit/banking/ economic crash isn't over by a long long shot, and you can lay the blame right on the FED and their henchmen politicians.

 

But all is not lost. Demint's first attempt to get this bill passed will not be the last, and Hopefully some more of these mutant politicians will wake up and smell the coffee. Between healthcare, Cap and trade, and the actions of the FED, you can "feel" an awakening as people are tired of the scams, fraud and games, and want "change", just not the boloney lieing change Obama has promised and delivered. Stay tuned. (ps and call your Senator, and tell him that if he wants his job in the future, he better be willing to Audit the FED and find out where your money's going)

 

Moving along, this week hasn't been kind as far as economic news goes. In just the past three days we've seen that credit card defaults have hit another all time high, the Redbook retail sales numbers came in well below expectations, and we just saw S&P telling us of the record number of dividend cuts by S&P 500 companies over the last 12 months - 1,043 of them. There's some green shoots eh? There's something to make you want to rush out and buy stock huh? Well obviously no, but what's interesting is that we had the same form of bad news all during the tremendous romp higher from March 6 through June 12th. So, what's different now? Simple. The market beats to a totally different tune, it doesn't matter what the actual news is, what matters is what "mode" they're in.

 

If they're in wild bull mode, horrible news is ignored, bad news is okay, good news is celebrated and really good news brings out Cramer and the kazoo. Then, when the market has sucked in enough people and wants to roll over and take their money, good news is ignored and bad news is indeed bad news and they run for the exits. This is what we've experienced so far this week. The only real question is this: How far will they let the market fall?

 

The market will fall until it's satisfied that it's punished and discouraged all the latecomers that piled in at 8800 when Jimmy Puppet Cramer was screaming "buy buy buy" and you have to get in. It will fall until "X" amount of them fold from the pressure and bail out with their loss. It will fall until "X" amount of people are convinced it's going to keep falling and go short. At that point, it will reverse and rush back up, effectively spanking them. That's what it does folks, forget logic, news, reality, earnings etc. 99% of it is all fraudulent and doctored anyway. The real deal is that the market is a money making machine, and it does it buy luring in longs and shorts at different times and then bashing them.

 

I don't know how long this downturn will last, but I'm guessing that it might not be too long. Just last night Jimmy puppet Cramer went from screaming to his Cramericans that they should buy buy buy at 8800 to "this markets got more to go on the downside, and don't get long". When this oracle of misinformation is telling his people to get out of the way, rest assured a reversal is nigh.

 

I'd love to see the DOW dip under 8000 and the S&P to hit say 835/840. That would scare even more people, encourage the actions it's intended to do (shake out longs and draw in shorts) and set up a pretty perfect reversal. I'd certainly consider it a buyable dip, but unfortunately right this second with earnings season upon us tonight, and the market in something of a "no mans land" the best play is often no play and that's what we're doing, sitting on our hands.

 

Unless you just want to play daytrader and pick off quarters here and there, the best line of advice comes from Jessie Livermore the oft quoted "best trader of all time" and Jessie said that when you make your trades, everything should be lined up for your success. That means a rising market, a stock that should rise with it and good timing. Trying to hunt down long side trades while the overall market is in a funk is simply swimming upstream and that's too hard. Salmon do it and then die. Yet going short is almost a call to suicide for more than a few hours at a time as JPM will come in whenever they feel the need, and buy up a zillion futures contracts and spike the market higher. We're going to have our shot to go wholesale short, and I suspect we'll make a fortune on the short side as we did in 2008. But I'm not convinced that they're going to let this market slip away just yet. When the next leg of the rally peters out, I suspect that's going to be the clarion call for us to start buying puts. But for right now, let's see how they handle Earnings season.

 

I say "handle" because lets face it, the numbers are going to be more than bizarre. You're going to see instance after instance of companies reporting that they met or exceeded the estmates but they did it on a 50% drop in revenues. How can that be good? It's not, you can only account your way to glory for so long, and then the piper gets paid. Between proforma, and special one time charges, they have become wizards at making their numbers look much rosier than they really are. So, will Mr. Market say it's good news, or will bad news remain bad news? We'll sure find out soon enough.

 

Stay safe out there, don't overextend yourself. Let the market come to you. If they like the earnings and we start heading higher, lean into it but carefully. But if they don't and we plunge, consider it a buying opportunity when it stops. In other words, I still feel the market has a date with higher recent highs, it's just got to relieve enough people of their recent gains first, then it will go.

 

We'll see you all on Sunday for a much more in depth look at things.

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unpossible according to the unwashed populist dopes in this forum. rolleyes.gif

 

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The FED is the sole reason we have crashes and booms. Their is indeed a "natural" cyle of ups and down in an economy, but it's self regulating. The FED braniacs however feel they are so much smarter than the free market and bend, contort and twist policy to the point where we get these ridiculous booms and subsequent crashes, and this time they went waaay too far. This housing/credit/banking/ economic crash isn't over by a long long shot, and you can lay the blame right on the FED and their henchmen politicians.

 

 

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