JeffreyNV

Bespoke's Commodity Snapshot (10/23/08)

Time for a bit of ETF dollar cost averaging while we're "weighting" for the bottom, particularly in the Ag and Energy sectors. It might be a stretch for some here, but the Ag ETF play looks like the place to overweight. Cheers!

Coming Soon: The $600 Trillion Derivatives Emergency Meeting

While I rarely comment, this thread appears to have missed the notion of diversification among asset classes. In that derivatives, (as well as currencies, stocks, bonds and other related financial instruments) are essentially paper assets representing the "theoretical value", (or sum of tangible and intangible assets, and occasionally, the future earnings of such assets), we should all pause to consider that concentrated exposure to "paper assets" can be hazardous to the future wealth of its owners. Further, I would submit that the time is ripe for seeking out alternate asset classes. Specifically, asset classes representing "physical wealth", (as opposed to "paper wealth") as a hedge against future erosion of paper assets. Deflationary forces notwithstanding, the commodities sector at large looks increasingly attractive, and more specifically the energy and agricultural complex as well. Bottom line: the law of unintended consequences weighs heavily when it comes to the current bias for the mass creation (or dilution) of currencies and other related paper asset classes. Historically speaking, one can only draw very very very negative conclusions. Thus, the above thoughts on alternate asset classes.

Witnessing the Biggest Transfer of Wealth in History

While I by no means intended to illustrate a conspiracy theory, the facts are this:

1. The Federal Reserve Officials are NOT elected officials, and yet they have been given de facto control over the national debt by way of adding $5 trillion to the National Debt without so much as a wimper from the legislative, executive or judicial branches of government.

2. The Federal reserve is NOT owned by government. It is owned by stockholder "Members", who include member banks such as J.P Morgan. By definition, the Federal Reserve Board fiduciary duty is to its members (stockholders). Events of late clearly support this fact.

3. In relative proportion, the recent assignment of liabilities to the our National Debt, and contemporaneous assignment of assets to J.P. Morgan in connection with the Bear Sterns restructuring, bears witness to a huge transfer of wealth without any regulatory oversight whatsoever.

4. Finally, all of the foregoing facts are undeniable, including the facts surrounding the untimely death of John Kennedy. Murder requires no conspiracy. Big money does whatever it chooses to whomever it chooses. To think otherwise, would be naive (take note ~ punk ash).

5. Finally, having met with Jim Rogers personally a few years ago, I tend to share his views on the dollar and the fact that the United States will continue in a state of decline for the foreseeable future.

The purpose of writing is to share an alternate view of popular opinion. The herd can be a dangerous place to be when crossing a river infested with hungry crocs. A little independent thinking can be a good thing.

Best Wishes to All, Jeffrey

Witnessing the Biggest Transfer of Wealth in History

Ben Bernanke should resign, and the Fed should be abolished. This would be one path to boost the falling dollar and speed up the recovery of the U.S. economy. I do agree that it appears that the Federal Reserve is actively involved in restructuring the ownership of distressed assets to it's member banks, while laying the associated liabilities at the feet of the American taxpayers. It's amazing that Bernancke & Co., all being un-elected officials, could even remotely be empowered to shift nearly $5 trillion in liabilities to the National Debt of Government of the United States. The Fed's activities of late are clearly not that of a Central banker, but more that of a modern day con man.

Who owns the Federal Reserve?

For the "Party Line", see:

www.federalreserve.gov...

and i quote...

"..... the Reserve Banks issue shares of stock to member banks. However, owning Reserve Bank stock is quite different from owning stock in a private company. The Reserve Banks are not operated for profit, and ownership of a certain amount of stock is, by law, a condition of membership in the System. The stock may not be sold, traded, or pledged as security for a loan; dividends are, by law, 6 percent per year...."

Now consider this and ponder:

J.P. Morgan is a "member" (stockholder) of the Federal Reserve.

Interesting that J.P. Morgan became the owner of Bear Sterns assets courtesy of the B.S. (no pun intended) bailout?

Now consider Fanny, Freddie, Lehman et al., watch and be amazed as the Fed magic act continues. Presidential or Congressional oversight? None.

As a point of fact, since Woodrow Wilson's term and the subsequent formation of the Federal Reserve, one U.S. President actively considered dismantling the Fed. His name was John F. Kennedy. Eleven days after crafting a memorandum for eliminating the Federal Reserve, the Kennedy assassination was perpetrated. A coincidence? Draw your conclusions accordingly.