Loading ...I know how many of you are looking forward to the FOOTBALL season.
Well….here’s a little recap of last year…………
Coincidence? Just wondering.
*******************************************************
Alabama beat Arkansas
and Arkansas fired their coach
Alabama beat Tennessee
and Tennessee fired their coach
Alabama beat Auburn
and Auburn fired their coach
Then Alabama beat Notre Dame
and the Pope resigned………………
BOY!! I wish the White House had a team !!
The disconnect between what is going on in this market against what is going on in Main Street, is growing exponentially larger with the passing of each week. You will have the equity perma bulls crying up one reason after another to justify this aberration but the simple fact is that this is what PAPER ASSET INFLATION looks like. In a deliberately created, ZERO INTEREST RATE ENVIRONMENT, investors looking to obtain a return on investment are forced to put capital into stocks. As stated yesterday, the only RISK is the RISK OF NOT BEING IN THE STOCK MARKET.
I cannot state it any more forcefully than that.
Just for the purpose of illustration, I put together a chart of the S&P 500 detailing in graphic form the extent of the growing bubble. The index is shown on the bottom chart. In that chart is a dark blue line which is the 100 Week Moving Average.
In the upper window is the DIFFERENCE between the weekly closing price of the S&P 500 and that same 100 week moving average. There is nothing particularly exotic about this indicator – it is merely a way to measure OVERBOUGHT or OVERSOLD readings.
I think you will find this rather startling. Go back to the year 2000, the year in which the huge speculative bubble in equities popped and which was the catalyst for the now decades+ intervention by the Federal Reserve to create one bubble after another in attempting to deal with the fallout from the enormous bursting that occurred that year. You remember, first we had the equity bubble, then the real estate bubble, then the commodity markets bubble, then the bond bubble and now once again we have the equity bubble, courtesy of these master meddlers known as Central Bankers.
I drew in a horizontal line showing the peak in this indicator which first came in 2000. As you can see, it extends all the way to the current period. At no time prior to this year, did this indicator reach the peak that occurred in the year 2000. Yes, it came close, particularly in early 2011 after QE1 and QE2 had been implemented and run their course, but it failed to reach that prior peak.
Cast your attention upon this week – since QE3 and QE4, a combined $85 BILLION of fresh money creation each and every month by the Fed, the indicator has not only MATCHED the 2000 peak, it has EXCEEDED IT! In other words, this is now an historic bubble even when measured against what many correctly believed then and still do now, was a bubble of epic proportions all the way back in 2000.
Quite frankly, I already believed the current stock market rally was an historical mania. After seeing this graph, nothing can dissuade me from that view. How high this thing can go is anyone’s guess because they will always be fools saying, “this time it is different”. When this bubble explodes however, and it most certainly will, heaven help us all, as there will not be a single soul to buy it on the way down.
one of that systems useless and anachronistic relics – a SENATE, not an elected one but one appointed by the elected Prime Minister. Several politicians over the decades have wondered out loud how we could get rid of our useless, but expensive, Senate. But nothing ever happened to bury this relic. Now, in the link below, Rex Murphy has sliced through it all, with the idea that prime Minister Harper does indeed have a plan to make Canadians so fed up with the Senate that they will demand its elimination.
Duffy is a despicable character, but if he is part of a plan to make the Canadian Senate look despicable and unworthy of further taxpayer support, then maybe I could develop some respect for Harper’s and Duffy’s intentions with respect to the Senate. Maybe Mr. Murphy is onto something here, but I will believe it only when I see the Senate eliminated. There seems a sliver of a chance that Harper as Prime Minister could encourage a swipe at the Senate, but I doubt that future Prime Minister Carney or future Prime Minister Trudeau could be persuaded to axe this dinosaur. Equiz.
fullcomment.nationalpost.com/2013/05/18/rex-murphy-the-hidden-agenda-revealed/
The Market Ticker ®
Commentary on The Capital Markets
Posted 2013-05-18 11:24
by Karl Denninger
in Editorial
The Most-Corrupt Administration Ever?
Let’s see how I do with the list.
Fast And Furious (guns for drug lords, resulting in murder of Americans and Mexicans)
Robosigning (over 100,000 perjured affidavits filed in court cases)
IRS Tea Party and other group and individual abuse in direct violation of the law (politically-based harassment and now apparently-perjured testimony before Congress)
Money Laundering for terrorists and drug lords (by multiple large banks)
Intentional and unlawful destruction of property rights (GM bondholders screwed for political cronies in the UAW)
Intentional and unlawful destruction of your saved wealth (QE, QE2, QE3, QEinfinity, $1 trillion+ deficits, etc; Treasury and Federal Reserve actions)
Benghazi (apparent illegal arming of terrorists, then an attempt to reverse that leading to the attack on our CIA outpost and what appears to be intentional indifference and orders to stand down during the attack that had to come from the White House despite ability to respond; this amounts to conspiracy with the terrorists to kill Chris Stevens and the others who died.)
Swindles by the billions in countless schemes during the 2000s related to securitizations and other hinky deals (where despite black letter legal requirements for actual endorsement and delivery of documents banks simply did not comply and now argue there should be no penalty for not having done so, and that these defects are “mere procedural errors” despite intent to not comply.) The result is that our land title system no longer has any resemblance of integrity.
Intentional destruction of anything approaching a “free market” for health care going back 30+ years and now compounded through active conspiracy by Obama and all of the political parties to grant, protect and enforce through government monopolies and cost-shifting resulting in cost escalations of 500-1,000% or even more against market prices and now, with Obamacare, abuse of the IRS tax power to force another 100% or more increase in those expenses down your throat for the express purpose of enrichment of those in the medical industry.
I’m sure I’ve missed a bunch, but this is a good start.
What do all these (and more) have in common?
Your refusal, as Americans, to stand and demand that The Rule of Law be restored and honored and that those who refuse to do so be impeached (if in government) and stand trial for their abuses.
I keep hearing people ask when I, or someone else, will “lead” on this issue.
Why do you ask where the leader is?
Do you want a Hitler? You’re going to get one if you keep that **** up.
We the people do not need “leaders” to resolve this.
We all need to personally grow a pair of balls to replace that vacuum between our legs (or nestled in our pelvis where our ovaries are supposed to be.)
We need to get off our fat asses and stop demanding that someone else take care of what is our job as citizens of this nation.
You do not have the right to health care.
You do not have the right to a job.
You do not have the right to go to college.
You do not have the right to a house.
You do not have the right to food.
You do have the right to effort to generate some form of economic activity by your own hand and mind for yourself and those who you have as dependents through your own actions, such as your children (who exist because of your actions — your exercise of the power to create life.) You may then expend the fruits of that economic activity as you see fit because such is your property; you earned it through an honest exchange with another.
You do have the right to life, liberty and the pursuit (but not guarantee of attainment) of happiness. This means that all of the above — every single one of those abuses that have been served upon you — are unlawful.
But those three rights only exist so long as you will stand and defend them. A person is a victim only until he or she gives consent.
Put a different way: The only difference between sex and******is consent.
As soon as you consent to the frauds and abuses heaped upon you they cease to be frauds and abuses and become part of a sick sado-masochistic ritual you have willingly taken upon yourself.
They remain so until you stand and demand that it stop, backing that demand with whatever defensive force is necessary to stop what has now become******rather than sex.
It is for that reason that I am an absolutist on where the Second Amendment’s boundaries lie. It is impossible as a matter of logic for me or anyone else to depend on someone else to stop a criminal who intends to take my life or that of those in my care, irrespective of how we would otherwise design such a social system. By definition the first person able and often the only person able to stop such an assault is the victim that the perpetrator intends to assault or kill. It matters not whether the assailant is an individual thug, a pair of thugs, an organized gang or a government agency.
The bottom line is the same; your right to life only exists so long as you are willing and able to defend it.
The same bottom line exists for liberty and the offense against it that is delineated in most of the above list; you have such a right only so long as you are willing to defend it. The minute you cede that right you have consented to what you are experiencing and you lose the right to bitch about it until and unless you stand and take back that which God gave you.
This is basic logic and as soon as you cede basic logic you inevitably lose every other point of argument. In this case when you lose those arguments you risk losing your life and/or liberty; you are literally risking death or enslavement.
Since 2007 I have written on these matters in the economic realm and laid forth arithmetic proving that what has been done is not an accident but rather is a swindle. It is not a new swindle either; it is in fact one of the oldest in the history books, rivaling only prostitution in age. Arithmetic is not subject to debate; you can choose to overlook it but you cannot change it.
Those of you who seek leaders are fools; each of you should lead for yourself and confine that leadership to yourself and your life along with those dependent upon you through acts of your own free choice, enjoying or suffering the consequences of those choices.
Your right to lead in that regard ends as soon as you demand that someone else pay for whatever it is that you want to acquire or suffer as a consequence of your actions and inactions, whether it be food, shelter, education, health care or anything else.
The first principle behind The Declaration is that we are a nation governed by laws, not men, with each such law that is valid and enforceable being able to be tied back all the way to The Declaration through The Constitution.
The Declaration sets forth the reason why although rights are absolute societies organize governments — it is for the purpose of providing a framework of laws to enforce those rights and punish violators. Absent that you have only the law of the jungle, where the individual with the biggest teeth, claws and body mass wins while everything else is food.
That is what you have in the absence of the rule of law, and that is what we have collectively and individually allowed to occur in this country. All of the above has occurred because we have regressed to The Law of the Jungle from The Rule of Law.
We either stop it or we will be consumed by it.
Remember the movie Antz? If the public ever wakes up to the fact that there are more of us than they are of them, they aint got a chance.
ok maybe 2 days? 
wj
then i would call for a complete total default of all debt and let the banksters suck wind then hang them along with all the goober lapdogs! re-establish the constitution and real money g&s and call it a day. enough is enough. end of rant. 
wj
Lew asks Congress for debt increase, says it’s ‘not open to debate’
By Peter Schroeder – 05/17/13 01:30 PM ET
Treasury Secretary Jack Lew on Friday urged congressional leaders to raise the debt limit and insisted that the White House is not going to negotiate over the increase because lawmakers have “no choice.”
“We will not negotiate over the debt limit,” Lew wrote. “The creditworthiness of the United States is non-negotiable. The question of whether the country must pay obligations it has already incurred is not open to debate.”
LOL – that sure is a nice quote that she can trot out, HOWEVER, what happened to all that equal justice with the Bankers and robo signing, Mers, bundling, foreclosure and on and on. No bankers have gone to jail, no government officials who were in charge have gone to jail - no banks have been closed because of all they did to cause and continue the problems of the last five years anyway. It definitely IS different laws and penalties depending on who you are and whether they can RUN OVER YOU or not.)
McCaskill Calls For Firing Of All Involved In IRS Targeting Scandal
“I’m mad. It is un-American, it is wrong, and we have to make sure that this gets fixed,” Missouri’s senior senator said. “There’s a reason Lady Justice wears a blindfold in America. That is because in America, we don’t apply the law based on who you are, who you know, or what you believe. We apply the law equally.”
stlouis.cbslocal.com/2013/05/17/mccaskill-calls-for-firing-of-all-involved-in-irs-targeting-scandal/
currently lots of devergencies in RSI – MACD – ADX for GDX, HUI, GLD, Silver and such. Will it mean anything? Just have to wait and see in the fullness of time! 
From: Jim McMannis
POG down 7 days in a row.
*******************************
From: da_chief™–[WOLANCHUK]
POG appears to have finished a 2nd wave pullback to its 78.6 retrace…..gold should blast off anytime now
***************************
more correctly over the years than Prechter and most other ones–I found this exchange on his blog–I wonder what he was referring to by the 78.6 retrace? could it be the retest of of low of the big $200 drop of a few weeks ago? He knows about but completely dismisses all the talk about manipulation–he just follows his e-wave count.
Very interesting Bonner Post
thanks
linked under Editorials
I strongly recommend that you go to KWN and browse the articles and audio interviews.
Blog/Articles: kingworldnews.com/kingworldnews/KWN_DailyWeb/KWN_DailyWeb.html
Audio: www.kingworldnews.com/kingworldnews/Broadcast/Broadcast.html
Today whistleblower Andrew Maguire told King World News that massive global physical demand reveals that gold is in fact in a full-fledged bull market. Maguire, who recently appeared in the extraordinary CBC production titled, “The Secret World of Gold,” also spoke with KWN about what’s happening with GLD, bullion banks and the LBMA. Here is what Maguire had to say in part I of an extraordinary series of interviews to be released today.
Maguire: “Let’s take a minute now and take the blinkers off of this so-called ‘bear market’ in gold. You cannot have a bear market when even the officially reported demand is surging to its highest levels in 18 months.
On top of this official data we also know that wholesale demand is exponentially larger. We see this by monitoring the less transparent daily wholesale market, and those outflows are not even recorded in this data….
“You can’t call it a ‘bear market’ when we see consistent $30 premiums in Shanghai, India, and the Middle-Eastern markets. You can’t call it a bear market when we see extended and increasing delivery bottlenecks and backlogs at the refiners.
You can’t call it a bear market when bullion banks are actively defaulting on an increasing number of clients who have the audacity to ask for the delivery of their bullion from these LBMA bullion bank vaults. If we were in a bear market they would be trying to rid themselves of this bullion.
We have a fractional reserve LBMA bullion bank system, and they were being drained of immediately deliverable, allocated supply. Bear in mind that this was happening before the April 12th paper market smash. So in March, when we spoke, we saw the beginning of the official intervention in the paper gold market. I remember speaking to you at the time about how we were threatening to trip extremely large, margined naked short stops above the $1,620 level.
But then Cyprus reared its head and tipped the entire balance, scaring both dollar and euro gold holders into racing to get their (physical) gold out of the paper market, to actually take physical delivery. Think about it, Eric, there was already large central bank and sovereign interest in the $1,600s. And the rearward looking official data that we see now reflects hundreds of tons entering Asian markets at those prices ($1,600s). Now that the paper markets have distorted supply/demand fundamentals (even further) by adding hundreds of tons of synthetic gold supply. They have ended up accelerating this outflow of bullion.
This migration of bullion (from West to East) is, in reality, far in excess of the (roughly) 310 tons that was redeemed out of GLD. And on that subject, not all of what was redeemed out of GLD was long capitulation, which is not what you are hearing from the mainstream media. Within these redemptions there were actually funds that I have met with which have redeemed shares to take actual delivery. And if they were doing it, there were others who were doing it. It barely costs more to vault (your own) gold, than it does to hold the ETF.
This is long-term money that is not fooled by the paper markets. The picture is not as it seems. So this ‘bear market’ is 100% in the virtual market. Yet this underlying physical market has diverged into a full-fledged ‘bull market’ as evidence by hard, official data showing the strongest physical demand in 18 months.”
From King World News. Lots of other great interviews: kingworldnews.com
What TARP Boss Neil Barofsky Told Me Yesterday Should Shock You
by Bill Bonner
Bill Bonner’s Diary
Recently by Bill Bonner: Why My ‘Crash Alert’ Flag Is Flying High
The financial news is getting boring. The Dow goes only one way – up. But gold fell below $1,400 per ounce yesterday.
Rather than trying to figure it out, yesterday evening we drove down to Zombietown. A friend in Washington had promised to introduce us to Neil Barofsky, inspector general of the TARP program.
You remember TARP? It was the feds’ $700 billion program to rescue the US economy from a correction. Neil Barofsky was in charge of it. So we decided to go down and ask him how it turned out…
Meanwhile, in yesterday’s International Herald Tribune was a small note: “Economists agree that spending cuts and tax increases have slowed the US recovery.”
Readers will recognize this as the usual claptrap.
Government spending does not bring a genuine “recovery.”
C’mon… how many times do we have to explain? You take $5 worth of resources and give them to an armed 19-year-old in Afghanistan. He shoots a round or two into a mountainside… poof… the $5 is gone. Or you have an ATF official. He’s idling his motor as he stakes out a house believed to be used by a cigarette smuggler. In a few minutes, or even seconds, the $5 has vanished. Or give the money to a disabled person; he buys a MoonPie and a Coke. Economists may record the spending as part of GDP… But how are you better off?
You’re $5 poorer, not $5 richer.
But GDP growth is something economists feel they can control. So they go to work on it like a sex maniac strangling a prostitute. Nothing good comes of it. But at least they get results.
And here comes Paul Krugman with more garroting wire! The New York Times Magazine:
Keynesian economics rests fundamentally on the proposition that macroeconomics isn’t a morality play – that depressions are essentially a technical malfunction. As the Great Depression deepened, Keynes famously declared that “we have magneto trouble” – i.e., the economy’s troubles were like those of a car with a small but critical problem in its electrical system, and the job of the economist is to figure out how to repair that technical problem.
Back to Neil Barofsky…
Rewarding Mistakes
So… where did the $700 billion go? Did that fix the magneto trouble?
“I wondered the same thing,” he said (from memory). “It was amazing to me that no one knew. We gave it to the banks. But no one knew what they did with it. I proposed to Tim Geithner that we find out. He was outraged. He cursed me out, using the F-word. He said it would bring the whole banking system down, if I asked.
“I went ahead and sent out a letter. I didn’t really have the authority or the staff to insist. But all of the big banks wrote back. And most of them gave me dodgy responses or gave me the brush-off.
“What did they do with the money? They were supposed to increase lending to help bring about a recovery. None of them did that. Instead, they used it to repay each other’s loans. In other words, they used it to reduce the amount of credit available… not increase it. And they bought US agency bonds… just as you’d expect. And they paid out their bonuses.
“In other words, they looked out for themselves… just as you’d expect. I didn’t know this information was going to bring down the banking system…
“The whole thing was so perverse, I can barely believe it. In a normal financial system, if a bank made a bad bet, it would pay a penalty. Counterparties might lend more money to it, but they’d want higher rates of interest to protect themselves.
“But here, in the bubble years, all the big banks made some of the worst bets in history… and what happened? The government stepped in… and lent them money… at lower rates of interest. They were rewarded for their mistakes. The good banks – that didn’t have the backing of the government – actually paid higher rates of interest to borrow money than the bad banks.
“Another thing I wanted to know was exactly how much money was really at risk. We gave away $700 billion. But we also guaranteed loans… and gave lines of credit… and stood behind various financial transactions. I asked how much was at stake… how much was at risk. No one seemed to know. So we added it up. We found a total of $23 trillion. That’s ‘trillion’ with a capital ‘T.’
“Again, I’m not saying that we would ever have to pay out that much. Some of this was guarantees on top of guarantees and cross-guarantees… very murky… very difficult to disentangle. But I thought it was worth knowing how much we had at risk. And again, the banks didn’t want to tell. And the people in the Treasury department didn’t want to know.
“The more questions I asked, the more I found myself isolated… and at odds with the Treasury Department, as well as the banks. I was having shouting matches in the Treasury. The banks hated me. And then the undersecretary of the Treasury called me into his office.
“He explained that if I eased up on the banks, I could have a very nice career after the TARP appointment expired. If I didn’t play ball with them, I would find it hard to find a job.
“That’s how it works. You go along and you get along. If you don’t go along with the scams and the technical mumbo jumbo… you’re out.”
That’s how a zombie economy works, dear reader. The zombies throttle the girls. You look the other way. Or else…
May 17, 2013
Bill Bonner is a New York Times bestselling author and founder of Agora, one of the largest independent financial publishers in the world. If you would like to read more of Bill’s essays, sign-up for his free daily e-letter at Bill Bonner’s Diary of a Rogue Economist.
That’s Bopo middle row second from the left
EXCELLENT IDEA! 5:00 ALL THE TIME !
Geez, that is what my father used to tell us kids when we asked for something that would not happen. “Ok next tuesday” He also used to say…”Lets not and say we did”
The clock on the wall of our great backyard is permanently set for 5:00….took the batteries out.
and that is the truth……..
Narry a noontime passes that we don’t quote Jimmy as we stare at the clock.
…anyone see my shaker of salt?
What does it matter…it’s a freaking Tuesday, any Tues will do and whose counting? Take My Wife…please. But, never on Sunday…as we are preparing for Tuesday.
No, No , No Intermediate Downturn started Oct 4th. So, we head into an absolutely, incredible, 8 month crash. Not even 2008 can equal that! At least then we had bounces that could register as multi month highs on the weekly charts. The last multi month high was last Aug/Sept 2012. Amazing! The only cycle stil il working is the short term cycle. Hasn’t failed yet. However, when it bottoms in the first week of June, it still doesn’t guarantee a new Inter Mediate Up Cycle. All that it does promise is that the worse is over for the next 4 weeks.
i wish all a good weekend and maybe just maybe bopo’s tuesday call will be “IT”! as in “IT’S IT” or is this “IT” or this is “IT” or “IT is IT”. to da moon alice! or [press here > grTRUCKwj
