Theft Is Sadly An Option

The DOW and NASDAQ were clobbered again today in higher volume and the markets look to be entering a downtrend at a minimum.  What was the catalyst for such a move?  Take your pick among many market driven and geopolitical events.

Among the market analysts whose opinions I take under advisement is Karl Denninger over at The Market Ticker.  While investors have been fixated on the collapse of gold and silver, this morning, Denniger astutely pointed out a complete break of support by copper.

WAKE UP!

In my capacity as a collateral risk real estate appraisal analyst, I vividly recall most of the vacant homes I appraised were minus the outside A/C unit, as thieves found the copper within most valuable.  In fact, in some cases, all the copper in the improvements was ripped out and stolen.

But the price of copper has collapsed, signaling, as Denninger points out, "because it's a measure of industrial demand -- that is, industrial production on a global basis."

Denninger is correct to point out that Europe, more specifically the EU, is living on borrowed time. First, Greece came to light as essentially bankrupt, and the bailouts began in earnest. They would only provide a temporary respite, with the wheels of collapse spinning a wider web as the days go by.

Additional bailouts have taken place in effort to prevent total insolvency, but they won't work.

Recently in Cyprus, the situation was so bleak that the government resorted to the unthinkable; theft of portions of the monetary holdings of its citizens.  Although a stunning development, the sad truth is that the action will not fix the issue.

What will be the next move of the elitist technocrats, or criminals; and is anybody awake to call the thieves out?

Nigel Farage is, and delivered yet another verbal tongue lashing today at a European Parliament meeting, well worth a listen:



Farage, and Denninger for that matter, has been on this issue for several years, but sadly, few are listening.  Although the bailouts will continue without long term success, eventually, the bubble will burst and the EU will blow up.

Alarmingly, America will not be immune from the destruction, for much of the same market distortion, bailouts, data propaganda, crony capitalism, fraud and deceit we have seen overseas is taking place here.

Don't think these things can't happen here in America?  A Cyprus style theft of deposits has already taken place here in the United States, an action which has completely unpunished, with the malfeasance over at MF Global.  Under CEO Jon Corzine, the former New Jersey Democrat governor and an individual Obama and Biden seek out for financial advice, the company went bankrupt evaporating all the firms cattle rancher deposits along the way.

At a minimum, it should be noted the US economy is in very poor shape, the EU is insolvent and destined for failure, China is an untrustworthy economic enigma and your government is masking the truth in astonishing levels of propaganda, most notably associated with unemployment.

These are not the ingredients of healthy market, and not conditions worthy of your investment, unless you are a very serious professional with rocks in your stomach.  For me, I'll be golfing when the collapse happens unable to get out, a chance I am not prepared to take given all the uncertainty.

Everyone is essentially insolvent and simply playing a shell game.  Bernanke has our printing presses in high speed pursuit in effort to stay ahead of the oncoming bubble burst, creating an a series of positions most difficult to painlessly unwind.

I am not sure where to hide, as a government starving for solvency will leave no stone unturned in their quest to acquire cash. As we have sadly witnessed, theft is now an option.