OJO Zafado

What's Behind the Market's Rise?

Bear fund has it right. The problem in terms of defining what has value is truely a threat to the US currency itself. "Shut off the printing press..." Well that is the way to look at it, but does not fully state the severity of what is going on. Last week the FED incresed it's TAF from $50 to $75 billion and the TRCA with the ECB and SNB from $75 to $100 billion. There are no printing materials or costs. It is only a few key strokes and a pressing of the "enter" button. People are closing their money market accounts and moving to brokerage accounts so they can put the $2500 min balance into GLD, SLV,DBP,or PMY. Those along with something like a FNM-PrP that has inflation protection and pays 6.3% tax advantaged. The ETF has become a great danger to the currency as they allow anyone to have something of value instead of linen fiat currency. A 1979 10 Pound Sterling note is now worthless as they were replaced by new currency and are no longer honored. Same for any Guilder or Lire. In 1979 you could have gotten about 10 gallons of gasoline for the value that was in that ten pound note. Today if you have a one ounce silver coin minted in 1979 irreguardless whether Mexican, Canadian, US or other nation it would buy 4 gallons of gas. You might have to shop it around a little but would get +$16 in your pocket. In 1979 that ten pound note would buy 3-4 of those one ounce silver coins. If you had the silver coins....and not a worthless piece of paper. The War on terror has been extended to the war on drugs on the American people. Now we see the gov't trying to manipulate the energy futures market. +$5 gasoline now seems a certainty, as does $5-$6 heating oil. Now we see the Gov't trying to head off the hundreds perhaps thousands of deaths that are now likely to occur as young children and the elderly die next winter of hypothermia. The nation of drunken sailors has finally put their own ilk into the control of our gov't and financial institutions. I am continuing to lighten up in partial positions my energy stocks and funds.. I am letting the rest run. RJI,DBA,MOO,GLD,GDX,IE... SNG,BTE etc are all working for me. I think the fundamebntals SU@K! We are heading for a retest of the March lows as we head into the "Summer Doldrums" market. The effects of +$4 gasoline, road diesel, and heating oil is starting to really scare the mob. They sleep unaware of a clarion call from the US Treasury. The Treasury this week reported the March TIC. It was more bad news for the US dollar and lower interest rates in the real market. With a couple exceptions last year when it also went negative the TIC has consistently been about PLUS $60 billion a month. There was a $100 billion in reversal in the TIC as last months $65 Billion surplus was replaced by a $46 billion Negative flow of cash out of the US. If this persists for several straight months it will put some major pressure on US Treasury prices. You can get out in front with a PST or DXKSX. These are the times that try men's souls. Fortunes will be made and lost! Forget invading IRAN. How about aiming a few cruise missiles at the TATA Motors factory kicking out those "NANOs"!