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.

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Just Make it Up On Volume

Shipping rates go negative via Zerohedge.

Fuel costs go higher, markets are saturated, and credit is stagnant.

Here is an awesome (though very long & detailed) article talking about what we, as in America, still manufacture.

What I want to talk about are the things we don’t make here. Simple things like ball bearings, integrated circuits, electric motors, batteries, and auto parts (excluding of course fuel injectors). Not to mention, plasticware, disposable consumer goods, and chemical components to everyday items like shampoo and toothpaste.

How long to tool up and get that back? Can your wallet survive that production ramp up? Will there be another manufacturing base with cheap labor to fill the hole left by the allusion of China’s growing middle class? Africa you say? Uh, huh. I have land for sale if that’s your answer.

The king’s (see bankers) continuous search for cheaper labor might have finally hit a roadblock kids. This might be the last hurrah for that schtick.

In about 4 months

Read the writing on the wall campers.

“It was broadly agreed that flooring interest rates at zero, or capping issuance proceeds at par, was prohibiting proper market function. The Committee unanimously recommended that the Treasury Department allow for negative yield auction results as soon as logistically practical.

That’s right! You heard it correctly, bonds with a negative yield.

And once we get the green light on negative yields at auction, next up will be the push for the Fed to impose negative rates on all standing securities, which means that coming soon savers will be literally paying to hold cash. And that will be the final straw.

“Dogs & cats living together! Mass hysteria!”

Cash as a hold out is no longer an option, but ammo might be. So might be long term, food, seeds, boots, and medical supplies.

The country obviously doesn’t get this in slightest. This is real, hardcore, depression like conditions. Being penalized for saving cash. Now that’s pretty evil dude. Having the ability to downgrade rates on assets already sold is anathema to the very core of a market based economy.

This is the battlespace with which you will be forced to operate in kids.

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.

As we watch the Other Hand

You know, the same kind of stuff happened with the first Gulf War, only then we were dependent on the big three American propaganda agencies to tell us how swell it would be.

Three (see three) carrier battle groups to the Persian Gulf.

Rapid petro shock would doom the EU at this point. They will either come together as a unified entity, or fail and dissolve into what they were prior to the formation of the union. Either way, those are favorable conditions for mass conflict. History always has a tendency to come back and smack you in the mouth just when you think, “Oh hey, we got the right people this time. There won’t be genocidal war. Humanity has grown up now. See!”.

Uh huh. I buy that.

Debt to GDP

I wonder if this will turn out well?

Triple digit debt to GDP. Say ot one more time so it sinks in.

Comments at the link above are priceless as usual:

“Deficit when Obama took office 10.6 trillion
He’s on path for a 50%+ Increase in one term!”

Good times.

So, how does this impact your preps and the new & improved polygonal battlespace?

Think about it, and once more…with feeling:

Triple digit debt to GDP.

Collapse: War as the other hand moves

Go read this bit by Kerodin.

Here is the Silicon Greybeard post referenced in the bottom.

China is a myth. At it’s core, this statement rings true:

I have held for a long time that the rise of China is a Zero Sum game, slightly modified: Every dollar they earn is a direct result of American policies.  The day America chooses to gut the Chinese, it is a simple matter of closing the ports to her imports.

A little pain here…and an E.L.E. in China (Extinction Level Event).

Better believe it Suzi. You can wax poetically all you want about the new Chinese century, and how wealth is shifting east, and I will still echo the concept above. America holds all the cards here, sovereign debt or not.

With regard to war in Europe though. It has been made abundantly clear that the people on the EU have no intention of shrugging off their banking masters’ chains. Berlusconi & Greek Papa-whatever’s resignations are clear signs that the ruling class is still very much calling the shots and running the show.