Cyprus - Stranded Cash

When integrity died, Wall Street thugs went looking for vulnerable capital pools. They quickly surmised that stogy seniors had large nest eggs stashed away in pension savings and paid up residential real estate.  For the good of the country this stranded capital needed to be put to work.  Governments obliged by legalizing reverse mortgages and promoting casinos in every community in order to pleasantly empty the pockets of unsuspecting oldies.

When this action slowed, government collaborators reduced interest rates to nil and invited seniors to glom up fraudulent worthless subprime mortgage paper.  It worked. Seniors clamored for enhanced yields and got totally ripped off.  When U.S. Treasury Secretary Tim Geithner was asked why the Feds facilitated the robbery of seniors he said it was because that was where the money was.

But Wall Street didn’t stop at robbing seniors.  Whole countries and giant corporations have gone under as a result of the failure of integrity across our entire planet.  General Motors once dominated the industrial world.  It went under.  Greece and Spain and Ireland and Italy and more have died at the hands of the Wall Street robber barons.

And now our politicians have a new problem.  The Wall Street thieves stuffed their winnings into safe haven banks all over the world.  Not a penny of the stolen horde has gone toward building much needed roads or business enterprises or anything else.  The voters are restless and the loot is still stranded, but now it’s tightly held by a few hundred Wall Street trillionaires.

Last week the governing body of the EU went after cash in the safe haven banks on the Island of Cyprus.  Cyprus is trying desperately to distance itself from this EU raid, but the rat is out of the bag and there is no turning back.  It will be much harder to extract money from the mega-thieves than from naïve seniors.  Russia’s Putin for one, is meaner than a junk yard dog, and the EU should remember that he supplies most of the natural gas for Europe.

The attempted EU cash grab in Cyprus is like a declaration of war.  I expect to see the transfer of trillions of dollars to the U.S. from scummy banks all over the world.  But Wall Street bankers set this travesty in motion in the first place.  They were offshore in part because they could not trust their own financial institutions.  We are headed for extreme violence involving the greediest souls to have emerged in the post-Christian era.

The good news?  The Parliament of Cyprus voted against the EU rip-off.  The bad news?  Cyprus banks have been shut down for three days and there is no sign that they will re-open before the middle of next week.  So much for government insured bank accounts.  If Cyprus is bankrupt by then, perhaps the cupboard will come up empty.

The Rape Of The Junior Golds

Shares in Canadian junior gold mining companies continue to languish.  I predicted this in a blog published on October 16, 2012.  Not that I’m happy about it.  All hard assets are systematically raped and stolen in our new tribal world without integrity.

Mega-wealthy subprime thieves have unlimited capital with which to gain control of our junior companies.  Once in control they flush us out by driving share prices hopelessly lower through unlimited share dilution.  Many promising juniors have gone from five million share capitalization to five hundred million shares outstanding and there is no end in sight.  We cannot recover from this onslaught by the greedy.

And there is more bad news:  If gold is actually produced by a junior, the mega thieves sell themselves revenue royalties that skim the cream from real earnings and force “per ounce” gold production costs to soar.  This in turn cuts the recoverable ore reserves and slams the discounted present value of gold still in the ground.  The share price takes another hit as present value figures tank under the weight of royalty payments.

Sorry folks.  Only the mega-wealthy win and they want all of your hard assets; your house, cottage, farm and anything else they can steal from you.  This is a sewer and all honest people are caught in the vortex.

Fukushima Comes To Life

I had said that it was only a matter of time before Fukushima plant workers tragically failed in their clean-up efforts after the huge nuclear disaster in March of 2011.

My prediction may soon come to pass.  Today there is a report that a power blackout has shut down cooling water pumps in spent fuel storage bays at three of the four crippled reactors.  If this latest affirmation of rampant ongoing negligence is not corrected within hours, prospects for a new mega-disaster will have greatly increased.

http://www.mcnallyrobinson.com/9780981100012/grant-sirola/repeat-performance?blnBKM=1

Republicans Don't Get It

Naïve Republicans claim that Detroit will soon go under.  They don’t realize that President Obama personally rescued Detroit. Republicans point fingers just because the city is now in ruins.  They don’t realize that millions of welfare checks mean millions of votes for President Obama.

It was the same story in New Jersey after Hurricane Sandy.  Republicans saw wreckage and Democrats saw welfare votes.

And tribal brilliance dictates that when Democrats need more welfare money they simply print it.  Stupid Republicans just don’t get it.

If you are a Democrat you probably won’t understand my sarcasm – I am a Republican.

Canada Supreme Court Slams Bible

Today, Canada’s Supreme Court decided that the Torah, the Bible and the Koran contain hate speech with reference to homosexuals. (My take on their decision.)  That should not surprise you.  The Court had earlier legislated in favor of gay marriage.

On another front, Canada’s Supreme Court disemboweled the foundations of our entire financial system by ranking equity ahead of debt in a decision that crushed Bell Canada bond holders and reverberated through fixed income markets worldwide.

Perhaps I’m wrong, but I believe that our courts should help to interpret legislation made by elected representatives.  Freedom is on a short fuse when nine appointed judges take it upon themselves to create legislation that should come from the voters.

Bernanke's Call

QE Yes – markets soar

QE No –  markets tank

What is Bernanke’s Quantitative Easing?  QE is a Bernanke euphemism for “printing money”.  When Bernanke needs to boost the economy he starts up the U.S. Treasury Department printing presses.  Don’t you wish you could pay your bills by printing money?

Only weeks ago Bernanke said NO to more Quantitative Easing.  He hinted that the whole QE program was probably over.  Markets tumbled head over heels.

Then he said YES to QE.  Markets immediately slammed upward into all time high resistance.



Markets are doing summersaults. It would be funny if it wasn’t so tragic.