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Monday, July 13, 2009

The Financial Matrix

I have been thinking about 'fine print' quite a bit for months now... For instance I'm liable to switch from cable to DISH when the fine print on DISH's offers is not about a thousand words long and so small I have to find a magnifying glass to read it... Of course DISH doesn't have a monopoly on fine print by any stretch. Seems these days almost ALL large corporations have an infinite supply of fine print. Is the fine print to protect us, the consumer? I don't THINK so... It seems to have morphed over the years and decades into a convenient legal way to screw the consumer with the blessings of oversight committees everywhere.

My question is WHY? Why would all these companies (ie; cable to banks, financial companies to cell phone companies, etc) seem to have such a strong desire to destroy their own customer base?! In many cases this behavior not only exists but is accelerating! The worse the economic picture gets the more desperate they are to grab and horde as much cash as they possibly can. To me in an effort to survive the coming economic storm. Look at the 'logic?' of the credit card companies... Their reasoning seems to go something like... "Let's see, our default rate is going through the roof these days so let's raise everyone's interest rate through the roof." Excuse me but... WHAT?!

When did companies in the USA become so dependent upon taking advantage of those among us who don't know any better, who don't get it, who don't understand what is going on, who just need some cash, who run just a little short between pay checks, who buy things they shouldn't because they want to? Were these people, some of whom we all have to admit loving at some point in the family tree, easy marks? Suckers? Prey? For corporations....

I have many questions today, though few answers...

What is the REAL 'plan' for the banks? Not the media and talking heads version of the 'plan' for the banks. What is the Goldman Sachs plan for the banks? What is the Government/Treasury plan for the banks? What is the FED's plan for the banks? What are these entities saying, or even more importantly, doing behind the scenes? Are they actively manipulating our markets as never before? All the rules seem to be in a state of constant flux as far as the Government and Treasury go... The PPT... (The President's/Government's working Group). What exactly is it again that they are 'working' on???

Remember last fall when shorting some financial firms was not allowed? WHAT?! I hope many of you see and read the same things I do about the inflation numbers being intentionally understated, the GDP overstated, the unemployment rate understated. Did you believe the banks earnings last quarter? Don't they STILL have bookoo toxic assets on their books? What, in the end will happen to those assets anyway? Will the Administration and Treasury decide to just 'throw them away', to just announce that they 'don't count', to just state we're going to have a 'do over'? Something similar to what they have done with/for Chrysler and GM?

The FED? Who the hell knows?! Who can say?! The FED answers to NO ONE! Is there a more powerful entity in the universe than the FED? Could it be that when Jesus returns for the epic battle between good and evil it will be He vs the FED?

How can anyone hope to trade this market without knowing what sort of nuclear options these entities are capable of unleashing upon the world to prevent a much needed cleansing correction of the entire economy? They simply CANNOT allow the markets to correct because with the correction we so desperately need all of their finances would be wiped out. Not all of OUR finances, all of THEIR finances. The banks are still insolvent now. I think if the economy were allowed to accomplish what it needs and wants that bankruptcies could be as high as 25% or more. Including many darlings of the Government (ie; the Goldman Sach's of the world). It is NOT the end of the American economy that scares them. It is the end of American Government that bothers them. It is my own personal belief that there is far more corruption in the Government of the USA now than at any time in our short history. That is what I see crumbling under the pressures of freedom and democratic free market forces. It is their lack of access to capital that has them terrified.

But in the end it isn't really about money at all... We have no money. We have a fiat currency. Backed, currently, by not much more than a raised middle finger from uncle Sam. This is no secret to those in Washington. They all know our currency is but worthless pieces of paper. As long as there is 'faith' in it they have been able to shape the world to fit their own needs. But it's not at all about controlling as much fiat currency as possible. It's ONLY about the influence and power the green paper can buy.

We (traders specifically) play the game. The game within the game that 'they' designed 'for' us. They use the game (trading) to fill their coffers. Lets all resolve to play the game with gusto, with intelligence and keen insight. But lets also try to remember that the game may be nothing at all what it seems to be, appears to be. And always forever more there will be 'change'...

Greg

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