HOW THE FED STOLE CAPITALISM

                                  Your Government At Work

The world breathlessly awaits the new round of money printing & currency debasement easing from Weimar Ben today. Like kids tucked in their beds awaiting Christmas morning, thoughts of sugarplums dance collectively in the hearts of most market participants.

It doesn’t matter anymore to the collective crowd that the entire system of finance as we have known it has ceased to exist; all we are left with is the “up or down thumb signal from the emperor”. One guy, who has a track record that couldn’t land him a job as a greeter at Walmart, is going to decide what the economy needs and just how much it needs it. Markets used to decide such matters.

Remember, this is the guy who said back in 2008 that everything was fine regarding the housing market. Somewhere, Stalin is smiling.

What we are left with now is crony capitalism and the prop desks at JPM and Vampire Squid with more money to ramp stocks higher to make you feel good. In the real world, a place most Fed members rarely if ever inhabit, the situation is far, far worse.

My sense is that all that is happening now is a gigantic CYA exercise, so that when SHTF months from now, everyone can point the finger at someone else and say it wasn’t my fault.

I’m writing and posting this before the “magical” moment the world finds out what “The Bernank” has up his sleeve. In a very real sense, in the long run I don’t think it will matter much. The Fed wants interest rates as low as it can get them, thinking this is just what the economy needs. These people are stuck in the 1950’s.

What the economy needs is for Government, at every level, to get the hell out of the way and let people do what they want; this paradigm just isn’t programmed into the elites running things. No, I absolutely need for you to tell me what to do.

So, we wait for the skinny bald guy to tell us which way the wind is blowing and how he is going to make everything OK. Please, I can't stomach the Q & A session with the fawning financial press after the rate decision. Listening to guys like Steve Liesman makes me want to puke. I don’t know about you, but as for me, every time these guys lips move they are lying.

Only sure thing I know is that the math doesn’t lie. We are one day closer to that moment when the entire system collapses from its own weight. Debt doesn’t grow an economy; productivity grows an economy.

In the government dictionary, productivity is defined as money that someone makes that we can confiscate and then pass around to our political pals, who then donate back to us so we can favor those who “see the light”.

Welcome to the Ponzification of Amerika.

Have a good day everyone.

-vegas

GUESS WHAT? EUROPE IS DEAD BROKE

                                            Gold Did What?

Can there ever be a trading day without issues?

First, I have the privilege of the dealer community trying to hold me up. No, they didn’t actually have a gun in my face, although it felt like it, but quoting me $1 spreads for trading gold all night into the U.S. session had me seeing red.

The problem finally was resolved without violence, but who knows, the day is young.

Meanwhile….

Oh yea, is there any doubt Europe is totally broke? That $20 break in gold, at the European close, was the result of Eurozone banks selling gold to meet margin calls and raise cash. Question is, is it their gold to sell or is it borrowed?

Of course, when it was over, gold went straight up to hit a new high by a few pennies and take out the buy stops from all those that piled into the selling by piggybacking the banks. You don’t get many V-shaped bottoms in gold off the 5M charts, but today was the exception.

Again, I’m sure a lot of traders got hurt by this action; just what the cartel wants and encourages. Gold goes nowhere and everywhere within 35 – 45 minutes, and when the dust settles, everybody looks around and says, “Wa happened?”

And, according to plan, if you got caught in this mess you got nowhere to go now as the market, after hitting a new high, goes to sleep again right on cue into the close. 3…2…1… zzzzzzzzzzzzzzzz…. and drifts lower.

Thank you Central Planners; I’m sure Stalin would be proud.

Meanwhile….

                                   Chalky Soetero Pimps Oil

And just when you think nothing can get more bizarre on the news front, here comes Chalky announcing he wants $50 million to police the oil market; you know because evil speculators always are responsible for higher prices.

It has nothing to do with your screwed up policies or anything like that.

Here’s an idea Chalky; put your worthless secret service detail on the job. Now that they are back from rigorous government protection duties in Cartagena, Colombia and have some free time, they can put their many talents to work and find out just how many evil speculators are responsible for high gas prices.

However, hookers here in Amerika might be a little more than the $47 variety they employed [and of course didn’t pay] down in Cartagena. So, you guys better hurry up because that $50 mill won’t last long here, and we really need to get to the bottom of this. How stupid is the Amerikan public?

I need some quiet time.

Have a good day everyone.

-vegas