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.

Dangerous People Indeed

Are you familiar with Nigel Farage?

Farage, flying against strong headwinds, has been a very vocal leader in opposition to the European Union as freedoms of the citizenry diminish due to incompetence of central planner and bankers.

Become acquainted with him in the following video of approximately three years ago as he lambastes in stunning fashion the EU Parliament for their incredible arrogance.



Farage absolutely nailed it in his address, calling out the technocrat elites who seek control over the masses and, as Farage appropriately put, are very dangerous people indeed. That was three years ago.

It won't, and has not, worked, as evidenced by the continuous bailouts of bankrupt countries which make up the EU, often referred to as the PIIGS.

Movement along bailout boulevard led to event this past weekend which should send shivers down the spine of not only investors in foreign markets and currencies, but the average citizens right here across the fruited plain.

The government of Cyprus, absolutely bankrupt and seeking contingency operations, attempted to make a move which many thought may be the catalyst to European collapse; the application of an mandatory tax on the countries bank depositors of a minimum of approximately 7%.

In many areas, such as the US government and our mainstream media, you were informed there was nothing of relevance to found by further investigating the tentacles of the story.  Nothing to see here, move along.

However, after the story blew up on social media Saturday, many alternative media outlets flexed their muscle and alerted the world to the evil ripple effect of the proposed action. 

At Market Ticker, the move is labeled "direct confiscation".  Zero Hedge  offered top notch analysis of The Rape of Cyprus. At Monty Pelerin's World, Cyprus and The Risk of Bank Runs is examined.  Over at The Burning Platform, the question is asked if theft of this nature already happening here?

Investors Business Daily notes a new low in arbitrary power grabs, and even leftist columnists are worried.  Kevin Freeman over at Global Economic Warfare has a great piece, noting government surveillance of our financial accounts.

Don't think for a moment if cannot happen here.  In fact, violations in the rule of law took place immediately into the Obama administration when contract law regarding the positions of bondholders was violated in the auto bailouts.  In my mind, they continued with the 3.8% investment tax we found in the Obamacare legislation when we got around to reading it.  One can argue the artificial intervention in interest rate levels is stealing investment returns from those, particularly the elderly, who hold investments in seeking returns in interest.

Then there was the sordid affair of malfeasance and theft over at MF Global, where Jon Corzine, former Democrat Governor of New Jersey and Goldman Sachs president, allegedly used funds in customer accounts to arbitrage on European currencies and lost big, causing MF to go bankrupt.  As of today, the depositors have not been made hole and Corzine is chasing skirts in the Hamptons.

Russia Today caught up with Farage for commentary on Cyprus and where we the EU stands on the boulevard to bankruptcy. Go:



The EU is destined for collapse, and as Farage noted back three years ago, we should all hope the market collapses before the citizens are robbed to pay off, as Freeman put it, the excessive debts of profligate governments.

Once the lynch pin is pulled, these governments, run by elites who lack respect for the rule of law, will stop at nothing to preserve their power.  This includes theft and robbing the citizenry of their freedom and independence, collective action in many a regard.

Time is precious for the United State to avoid similar economic issues given the immoral spending by our government.  However, we elected the wrong guy if fixing these issues was on the agenda. They are not, and truthfully, the actions of this administration point to nudging the masses to assist in crashing the system in the vision of Cloward and Piven.

With cheap money seeking the highest level of return, the stock market is artificially pumped significantly above standard levels of relative strength and at some point soon, the casino of choice will crash to the level where buyers and sellers are in legitimate competition finding an equilibrium point influenced in future movement by speculation.

Should a catastrophic event occur in the capital markets, the action of the confiscation of funds has already been established.  The United States would not be exempt from such action under similar duress.  Gold was confiscated under FDR, and the Obama administration has been investigating how they can gain access to the 401K accounts of the citizens.

In the aftermath of an event, action will be embarked upon by government "for the good of the people", which translate to your loss of freedom and assets for the preservation of power of the progressive elites and ruling class.

Shore up your investments promptly, avoiding Shore Bank, before you wake up one morning and find portions of them confiscated, prompting a global bank run.  That will conclude the greatest heist in history.