Wednesday, June 24, 2009

Ooh Its a Holiday - A Bank Holiday


Prepare yourselves! Have cash and food and ammo on hand better to be safe than sorry. With the gangsters at the Fed printing money around the clock and the resident being bought and paid for by the bankers this scenario is not unlikely.

Listen to this...

In its current issue, HSL reports rumors that "Some U.S. embassies worldwide are being advised to purchase massive amounts of local currencies; enough to last them a year. Some embassies are being sent enormous amounts of U.S. cash to purchase currencies from those governments, quietly. But not pound sterling. Inside the State Dept., there is a sense of sadness and foreboding that 'something' is about to happen ... within 180 days, but could be 120-150 days."

Yes, yes, it's paranoid. But paranoids have enemies -- and the Crash of 2008 really did happen.

HSL's suspicion: "Another FDR-style 'bank holiday' of indefinite length, perhaps soon, to let the insiders sort out the bank mess, which (despite their rosy propaganda campaign) is getting more out of their control every day. Insiders want to impose new bank rules. Widespread nationalization could result, already underway. It could also lead to a formal U.S. dollar devaluation, as FDR did by revaluing gold (and then confiscating it)."

HSL is still sticking with its 20-year "V" formation forecast, but emphasizes that within the current 10-year downtrend phase there will be rallies that will "last 1-2 years." It attributes its current success to "successfully trading almost daily, especially in commodity stocks (coal/potash/energy/ fertilizer/gold). Take profits constantly and rebuy on mini pullbacks. Prefer non-U.S. dollar companies; many such companies are listed in U.S. & Canada or Australia."

HSL says: "The world is staggering today between stagflation and net deflation right now; it varies widely around globe. Net deflation is a maybe 35% risk, due to toxics and/or deepening depression. Bit more likely, we'll slowly creep up to a dangerous 4.5% inflation on average, medium-term. But the wild card is the currency risk, which has a 50% (?) chance of boiling over and causing literally overnight (i.e. 24 hours) mega inflation in the asset markets."


Anonymous said...

Only problem with the inflation scenario is that if no one has any money - there is no inflation. Think about it, Even with high interest rates, if it doesn't translate into money in people's pockets to spend, you don't have inflation. You might have some bizarre form of stagflation - but that it, unless the gov't mails people 10 thousand bucks a piece there is no inflation. Most likely a deflation event - no one has money (regardless of interest rates).

Anonymous said...

@ anonymous

You are wrong...

All of the banks are sitting on huge amounts of 'reserves' given to them (via the bailout and etc) - once they begin lending again, this will be the rush of inflation...

AS the consumer believes the dollar is becoming steadily worthless (and hey, truth be told it is!) - the velocity of money will speed up.

Again, this falls in line with the concept that as soon as the Feds begin raising interest rates again, banks will begin lending which will ignite the real aspect of inflation...

Not to forget mentioning once the speculators begin shorting the dollar, this can only end in stagflation.

Our markets are rigged, we are being taken for a ride.