We Need More of This

Full of win here. Simply full of win.

‘We had nothing to pursue him with,’ said Newport Chief Deputy Philip Brooks, who went outside to see seven of his fleet’s 11 vehicles destroyed.

Denninger’s take on this is really good. He drives the ultimate point home – and no, it’s not about the ‘war on (some) drugs’…

Government — and laws — exist only with the consent of the governed.  This man withdrew his consent.  Yes, he will be punished for that act, and he should be — destruction of property (unless it’s your own) is a crime.  Nonetheless the fact remains that at some point the cost of telling people what to do with their own bodies simply overwhelms the nanny state’s ability to cover it through taxation, if the people decide that the line has been drawn in the wrong place.

We need more of this – and on this level.

Can Kicking

From Denninger, “It didn’t work (again)”.

This:

There’s a not-so-silent bank run in Greece.  This will spread.

Indeed it will. Will it spread here? Probably not this time. However, dear readers, you do realize that it is only a matter of time until something, some event of this magnitude impacts your local (see local) AO.

If you look back on many of my posts over the last two years, you will see the occasional flag raised in this manner. Again, we are talking probability and causality, not a known quantity. I talk about these things as a warning and predictors of future events. Watching the way things trend is valuable, even at the local level.

Heads up. This week will be incredibly bumpy…

Something to consider

Before I go get fondled by the TSA today, I though I would throw this one from Denninger out there.

Rest assured this will not happen. The once great republic is on a different trajectory, though it does warm your heart a bit to see something work the way it should.

It’s not about fixing the system. It’s about maintaining control and getting more. Fixing the economy doesn’t fulfill that need or want.

Think about that.

On Dangerous Environments

Staying with ZH for a bit longer:

This is an extremely dangerous environment: one in which the primary prop for the markets (central bank intervention) is becoming both less effective and politically toxic. Indeed, it’s clear at this point that the EU isbeyond intervention since neither the ECB, IMF, nor the ESM have the firepower to hold things together.

Dangerous indeed. Pair this with Denninger’s statements the other day and you have the blueprint for the coming weeks & months.

Apocalypse? Nope. Radical change in your day to day? Probably.

The powers that be, conspiratorial or not, typically solve big stuff like this with all out war & devastation on a grand scale.

Economics: Ponzi Schemes & You

A few things before we get started:

  1. Lack of regular (and good) posting bothers me too. I’ve taken on a second day gig because it’s an opportunity that cannot be ignored. I guess I will sleep when I’m dead.
  2. Regular day gig is still in transition.
  3. Family outranks all of this.

So, I wanted to talk about this Zerohedge post from yesterday afternoon.

Here’s the summary:

Foreign, central banks are directly investing into US stocks with their reserves.

Now, under the Fed’s mandate, this in itself is not only unethical, but illegal based upon the explicit wording in it’s own charter. Not that it matters as the Fed has gone so far past it’s mandate at this point, that actually adhering to the rules set would be laughable. BTW, never throw out a complicated conspiracy when you can just chalk it up to shocking levels of incompetence.

Denninger covers it here as well.

Extend. Pretend.

There is no evidence that this trend will cease. Based on previous history, it is only a matter of time before this comes to an end. I stand behind the statement that at some point they will run out of places to blow these bubbles.

From the Zerohedge piece:

In other words, while the Fed’s charter forbids it from buying US equities outright, it certainly can promise that it will bail out such bosom friends as the Bank of Israel, the Swiss National Bank, and soon everyone else, if and when their investment in Apple should sour.

Luckily, this means that the exponential phase in risk is approaching as everyone will now scramble to frontrun central bank purchases no longer in bonds, but in stocks outright, leading to epic surges in everything risk related, then collapse and force the Fed to print tens of trillions to bail everyone out all over again, rinse repeat, until this chart becomes asymptotic. We say luckily, because it means that the long overdue systemic reset is finally approaching.

Do you see the trend/ What did the Dow close at yesterday? 12,900?

Harkening back to a discussion I had in 2005 with John Dvorak, I believe we have one hell of a ramp up, but when you start to approach 20,000, it’s time to run for the hills.

BTW, on another note, expect a run on ammo and guns sooner rather than later – meaning prior to the election. I’m starting to see incremental price increases based upon demand alone. My favorite vendors are running low on bulk, but doing ok on the premium stuff. If you are inclined to spend some cash on ammo stocks, I would advise that now is a good time.

I still think we have a long way to go. However, the darkness approaches, and at a steady pace. Keep your wits about you. Watch your six & keep your powder dry.

 

Agreed – Fair Warning from Denninger

I completely agree with Karl.

It is not often that one gets this sort of rotational warning in such a clear form, but you’re getting it now.  The same thing is true in the DOW, with IBM being the power mover there.

Beware folks.  Be very, very careful.

Though, my opinion is that we will see a run up to uncharted territory before the fall if crude doesn’t skyrocket over the summer. When you see the DJIA in the 19,000 to 22,000 range, it is literally time to head for the hills. The end result of that one will be five times what 2000 & 2008 were.

Denninger Sends

Second half kaboom!

Could the be the catalyst we are looking for. Maybe not though. Brinkmanship on a global level is the order of the day. Might just be another fizzle, though Karl has been on target lately.

*Original content has been lacking. Apologies. Day gig is still in an interesting transition. I have another survival post in the works. Hopefully sometime this week.