PainfullyAware

Global Markets in Review: Risky Assets Back in Favor

“Some people are addicted to seeing catastrophe in the future,” said the late Peter Bernstein, author of Against the Gods, The Remarkable Story of Risk.

There Is Always Bias Based Upon Individual Filter.

A Dose Of "State":

1) Mark To Market Repealed (Interesting Correlation With "New Bull Market")

2) PPIP about to ramp up to "Cleanse" bank balance sheets of "Toxic Assets" backed by 50% Cost (set by buyer => some of which were involved in creation) + Administration Costs funded by the "Tax Payer". Goldman was not allowed to participate => because of all the other "Chicanery" that surrounds them at this moment. (Very Similar To "Shifting The Basis")

3) Federal Reserve Giving Money To "Anyone Big Enough To Qualify".

4) Tax Revenues Plummeting And Government Adding "New Outlays". Servicing The "Debt" Is Becoming Suspect.

5) Federal Reserve "Propping Up" US Treasury Auctions To "Maintain Appearances" That Auctions Are Not Weak. China Reducing Its Holdings With Caution.

There Are "Effectively Two Economies" Operating At The Moment Within The US (and abroad to a certain extent).

A) The "Paper Economy" in which the "Propaganda War" Rages => Stocks (Helped By PPT, Mark To Myth, PPIP), News "Green Shoots" - Less Bad Is Good, Health Care Reform To Take Eyes Off "Nefarious Action" (PPIP), "Listen To What We Say, Do Not Pay Attention To What We Do", "Forced" Indicators Positive.

B) The "Real Economy", in which none of the "Good News" Seems To Corroborate. Jobs difficult to impossible to find, reduction of wages, hours, or both. Unemployment, Foreclosure, Hunger, and Homeless tales from friends and family.

There Is A "Hierarchy" To Society (not by caste but by ability and effort). The upper echelon is supposed to be the "Steward" of the lower ranks; Investing so that the "Many" will have "Purpose And Paycheck". When This Cannon Is Lost => Dire Things Follow.

All "Remedies" Currently Enacted Serve To Keep Stewards Who Disregard This Principle, Through Arrogance Or Ignorance, In Place.

How To Make Money Off Of This Situation (In The Hopes That You May Protect Your "Interests"):

Ride The Wave => Things Will Continue To "Progress To The Positive" Until "Actual Default" Becomes Too Great To Pretend. Government Will Not Stop Spending on "Bread and Circuses" (We Have Passed The Point Of No Return). The "Self Reliance" And "Distraction" Industries Will Continue To Boom: Movie, Guns, Ammo, Freeze Dried Food, Liquor, Video Games, Bargain Stores, "Dollar Menu" Outlets.

The Foundation Of A "Building" Is Where The Greatest "Stress" Is Realized - The 1ST Floor Supports ALL THE REST.

Just because you may not be on the "1ST Floor" does not mean that when the "Building Collapses" you will be "Unharmed".

Safety Is A Function Of Awareness.

What If the EU Fractures, China Stagnates, or the U.S. Economy Worsens?

"The great risk to the US is that fewer people will have reverence or even a correct understanding for the living Constitution, which is what makes the US the exceptional nation it is." - This statement should be passed tense.

Most of the people in this nation have not even read the "Founding Documents" other than a cursory glance in middle school nor do they understand the environment from which they were forged.

We began to ignore the Constitution when the 16 Amendment was passed usurping the Congressional Mandate of Control of the nations money and stealing the "Fruits Of Labor" from the peoples income. With this amendment the power was removed from the people and transfered to the few. The effects have taken a long time to manifest; we are now in full bloom.

The Leaders and the Military take the "Oath" to "Defend the Constitution against all enemies Foreign and Domestic". Apparently, most consider this just something they must say; the ceremony of empty words.

We will see where this all ends up. Nothing like a bit of uncomfortability to pique interest in current events. Anyone advocating a return toward the guiding principles of the Constitution and the spirit of its formation is an ally.

America Was Not Intended To Be An Empire By Force, But Rather By Friend.