Repudiate the Debt
Daily Rant Archive  3/2/11, 3/3/11, 3/5/11, 3/7/11, 3/8/2011, 3/10/11, 3/12/11, 3/15/11, 3/17/11, 3/18/11,3/19/11, 3/20/2011, 3/24/11, 3/25/11, 3/27/11, 3/30/11, 4/9/11, 4/11/11, 4/14/11, 4/25/11, 4/27/11, 4/29/11, 5/3/11		Top  Links    Reverse Engineering  Automatic Earth  Zero Hedge  Economic Undertow  Of Two Minds
Rant Lite Today’s rant first examines the crash in the Silver Market and concludes with and examination of Mortgage obligations of the retail borrower.				Quote of the Day Luk 21:10Then He said to them, “Nation will rise against nation, and kingdom against kingdom. Luk 21:11“And there will be great earthquakes in various places, and famines and pestilences; and there will be fearful sights and great signs from heaven.

The action in the Commodities Markets over the last week has been simply SPECTACULAR, particularly with respect to Silver which in the course of about 3 days went from a high of  $48 or so down to $35 as I write this article.  It might rebound overnight or it might continue to crash, I don’t know which way it will go.  My Crystal Ball is a little Cloudy here.  However, at least for now, you are looking at around a 27% correction in 3 days.  If you were on the right side of this shorting silver and were levered up a bit, you might have made more money than a typical J6P can make in his whole life even at a high Union Wage of say$30/hour in just 3 days. In fact you probably made more money than his Union Pension is worth also.  All you had to know was when the PRESSURE would be put on the market by raising the margin requirements and liquidate before that occurred.  SOMEBODIES made a shit load of money over the last 3 days playing this game, and that money doesn’t come from nowhere.  It’s an asset transfer OUT of the Pensions of J6P and into the pockets of the people running the Casino.

Well versed traders in metals like Jesse the Epicure saw the instability, so he was short term bearish in some of his positions, but he is still of course a long term metals bull.  So he probably dumped some paper silver, took some profits and is holding a pile of silver ingots in the basement safe which have lost nominal value.    On the balance sheet, he is probably about even.  Of course Jesse is playing with quite a bit of both paper and possessible metal, but that is not the case for most of the retail investors in the metals.  Anyone who has a lot of possessible silver in the basement safe and isn’t trading it on the paper (digital) market just took an enormous hit to the balance sheet.

I don’t invest in metals, though as I have mentioned I have a few bags of Gold Dust I panned up over the last few years buried in Super Secret Locations on the Last Great Frontier. LOL.  In fact I don’t invest in ANYTHING anymore, I stay mostly in CASH because it is so liquid and you can divest yourself of it quickly for hard goods.  Of course I also now have a bunch of paper left to me by my Grandad the Bootlegger along with some cool Picasso Wall Decorations which are a bit harder for me to deal with, but I kind of ignore that on a philosophical level because I never really expected to have more money than GOD.  More than God, but less than Soros.  LOL.

Inheritance problems aside, I want to look at the problems faced by the retail investor in metals right now.  You have a double-edged sword to deal with here. What your metal will fetch on the market isn’t really dependent on what all the retail investors will pay for it, but rather what the TBTF Banks will pay for it.  This because credit to the TBTF Banks has been issued in such large amounts at ZIRP that they hold much more cash than retail investors do.  They can use that credit to Bubble up the metals market, suck in as many people as they can into investing in it, then DUMP their holdings at the top of the Bubble, and anyone who bought in on the way up loses his shirt.  Long as you bought in when silver was at say $20, you are still OK, but there is no guarantee they won’t continue dumping enough to create a panic and drive it still lower than that.  Then Silver Shorts like Trinity College of Cambridge University Economics Graduate Anglo Illuminati BITCH Blythe Masters will make a KILLING.  She’ll exit all her short positions when the market tanks completely and laugh all through dinner at Lutece, quaffing $5000 bottles of 500 year old Pinot Noir from the Wine Cellar of the Medicis, then go home and don her Marquesa de Sade Dominatrix outfit for a night of fun torturing and castrating some Boy Toy from Hoboken, NJ.

The other edge of the sword is the problem you have with Buy & Hold.  Real Gold Bugs are CONVINCED that long term the metals will hold their value, and so will rebound against the Failing Fiat, so as long as you do not have to liquidate and are not levered up facing margin calls, you can just sit on the pile and wait for it to appreciate in value again.  Problem here is, if you understand the nature of commerce you should realize that once the Fiat crashes, the lack of trade will render the metals you hold relatively worthless also.  There just won’t be much around available to BUY with those metals.  The metals only will retain value as long as the commercial markets function, and they are already showing signs of being terminally broken.

The CBs led by Helicopter Ben have made SOOOOO much credit available to the TBTF Banks that they can push any market at all around, including the metals.  The retail investors do not have enough of either the metals themselves or their current cash equivalents to make a whole lot of difference in the aggregate market.  The only way Blythe will get nailed in her short position is if JPMC cannot engineer enough of a crash to make good on those bets, and I cannot see why they would let that happen.  Long as they have access to ZIRP credit they can push the market around by betting short say in Oil and causing a crash there, forcing margin calls in silver against anyone holding a long position in Oil.  All big positions in any market are levered positions, and all Hedge funds hold multiple positions through many markets.  You can cascade margin calls any time you engineer a big enough crash in any of the major markets.

Anyhow, because there is such an astonishing amount of Credit available right now to the TBTF Banks and so little available to the retail investor, you just are like a 30’ Sailboat in a Cat 5 Hurricane with 50’ waves rolling over your little boat.  You get blown hither and thither, you get knocked down, eventually you are gonna Roll Over or Pitchpole and head for Davey Jones Locker.

I observe the endless printing of CREDIT by Helicopter Ben with all the rest of you, but what is NOT occurring with this printing spree so far is the issuance of unlimited credit to J6P.  The availability of credit to the TBTF Banks is fueling speculation in the aggregate markets forming some very large Bubbles  which make it possible to “win” money on both the upside and downside of the Volatility game if you are well enough connected to know precisely when the HAMMER will come down on a particular market (as it did in the Silver Market this week).  However, since the end consumer does not actually HAVE the money to pay the inflated prices fueled by the speculation with ZIRP credit, if you do not divest before the bubble pops, you lose the money but end up with a liability, your debt obligation.  The liabilities keep going onto Da Fed balance sheet for the TBTF, so the game continues, but of course J6P cannot dump HIS Liabilities onto Da Fed nor can he service the debt dumped on Da Fed by the TBTF, so Da Fed will blow up here eventually.  When it does blow, all the Fiat currencies will likely hyperinflate, but all the asset values will deflate.  Those asset values include the PMs.

Its how the real assets are valued against each other that is the question once the monetary system blows up this way.  Long as you want to play the game here, what you really have to do is arbitrage not the value of Fiat currency against Gold or Silver (which is what Gold Bugs are doing by betting on the Metals), but rather the value of Oil against Food. You can’t do this in any practical means unless you are a VERY big player, and even if you do its going to be manipulated at the political level. Just like Gold can be Confiscated, Food or Oil could be subject politically to Rationing, which will render void any bets made on the relative values.  You cannot protect “Wealth” in any way in such an environment.

I am in the unfortunate position now of having way more “money” than I would like through accident of birth.  I could go ahead and liquidate some mining stocks, probably precipitate a Flash Crash by doing so and then I suppose buy half the Yukon Territory in the asset transfer, but WTF would I do with it?  LOL.  I don’t want to OWN all that land, I can’t protect it.  I “own” a decent part of a Bolivian silver mine, but WTF knows what the Bolivians are gonna do with it?  I don’t want to own that either, but on paper I do. Its ridiculous beyond belief that a bunch of paper that sat in a Safe Deposit Box for near 50 years says I own something a bunch of Bolivians have been slaving in for that time.  How fucking stupid is that anyhow?

While protecting your assets in the face of the CRIMINAL manipulation of the markets by the TBTF Banksters is about impossible, what you CAN do is offload your liabilities, and you don’t even have to do anything CRIMINAL to do it.  This brings us round to the Mortgage issue discussed over in yesterday’s Squatter thread.  There is nothing criminal about stopping payment on your mortgage, the Bank is then free to foreclose on you.  If the Bank chooses not to do this, you are then free to keep living in the McMansion.  The fact is probably in 90% of the cases the Bank doesn’t even have the legal standing to foreclose anyhow because the chain of Title is broken by the MERS fiasco.  They fucked up on the legal end trying to play this game, not you.

All this Bizness about having a “Moral Obligation” to pay these bills is ridiculous.  The whole fucking Monetary system has been run Immorally by the Banksters for their OWN self aggrandizement here, their actions have caused the economy to tank and your McMansion to lose its artificially inflated value created by the Bubble THEY blew in the Housing market, so THEY should take the hit for this, not you.  I wasn’t stupid enough to buy one of these White Elephants, but if the Banksters used your ignorance to dupe you into buying one, you can now flip the tables on them and use their CRIMINAL disregard of the law to shove the liability right back at ‘em.

Stuck goes and pulls a Hank “the SKANK” Paulson here, threatening that if all the J6Ps do this, it will be the TEOTWAWKI and 7M People will STARVE because the Credit system will go Belly Up as a result.  Newz Flash, 7M People are likely to starve anyhow, however until J6P works up his courage here and crashes this system, no Banksters will be scrounging for scraps in the Dumpsters next to your emaciated children, they’ll be doing just fine collecting your mortgage payment eating Filet Mignon Flambe at Lutece.  Crash the monetary system, the Banksters will be starving in just as great numbers, besides getting their heads lopped off in Retribution for setting up this crash.  Which outcome would YOU rather see?  Lots of J6Ps starving while the Banksters are eating Truffles at Lutece; or lots of J6Ps starving while Bankster Heads roll like Bowling Balls down Main Street?  Sign me up for Door #2, Monte.

To be quite clear here, one way or another this Monetary system is going DOWN.  There is absolutely NOTHING that can be done to stop this now.  The main question is WHO takes the most PAIN here, and who gets CONTROL of your Goobermint?  Do YOU get control, or do you fold to the Illuminati and keep coughing up money into THEIR Monetary system to make THEM whole while YOU starve?

There is no way right now to make a Frontal Assault on the Illuminati.  They have the POWER, because their monetary system still works to pay the Soldiers and the Riot Police.  You DO have the POWER to crash their monetary system though, simply by REPUDIATING the Debt.  They did not HAVE the money to loan in the first place, they created it out of THIN AIR.  En Masse, if everyone repudiates their debt, the Illuminati are rendered impotent.  A few small countries have started to show this kind of COURAGE.  The Icelanders have, and now the True Finns are looking ready to walk down this road also.  Perhaps the Greeks will work up the courage also to leave the EU default on all the money they borrowed and STICK IT to Deutche Bank.

Here in the FSofA, even if our CONgress Critters will not listen to the Will of the People, you J6P do have the POWER to repudiate your own debt, and it is LEGAL to do that.  If the Banksters want to foreclose, let ‘em do that, but they won’t for the most part because that will force them to Mark to Market what amounts to virtually WORTHLESS WHITE ELEPHANTS in the McMansion Market.  You want to take down the TBTF Banks? THIS is how you do it.  You VOTE NO with your CHECKBOOK.  This is the ONLY vote the Banksters will understand, nothing you do at the Ballot Box will make a difference. MONEY is the ONLY thing a Bankster cares about, NOTHING else matters, not political parties, not abortion, not gay marriage, NADA.  We are playing VERY high stakes Poker here, and the Banksters are BLUFFING you.  They are using the “moral obligation” card to get you to fold your cards and walk into perpetual Servitude for yourself, your children and your grandchildren.  It is up to YOU to protect them now, and it is your COURAGE in this Poker Game that will determine the outcome.  Don’t fold your cards. You HAVE the POWER, if you have the GUTS to exercise it.  CALL THE BLUFF. It won’t be pretty, Lord only Knows it will not.  In the words of Lone Waite from the Outlaw Josey Wales, “Get Ready Little Lady, HELL is Coming to Breakfast.”.  It is your ONLY choice now though, the only way Eternal Justice can be served.  Lock and Load., get ready for HELL ON EARTH, because it’s Coming Soon to a Theatre Near You.

REPUDIATE THE DEBT. NOW.

RE