A Slave to Debt is the Master of Chaos ~ The Risk Averse Alert

Thursday, April 07, 2011

A Slave to Debt is the Master of Chaos

With plenty of technical evidence supporting a view that, completion of the market's advance off late-June 2010 bottom could be at hand, the only question now is whether agencies supporting the vain cause of maintaining appearances of the financial system's solvency are about to be overwhelmed to the point of becoming impotent.


There's no doubt a great restructuring looms. Agencies claiming victory in an effort to prevent an economic depression simply have no credibility absent massive investment in physical economy raising efficiencies in matters promoting production and commerce, such as alone offer any hope that current liabilities might be honored with scarcely any threat of default.

Along with failing to meet a huge investment deficit, no significant restructuring of current debts has been pursued. Instead, bald faced thievery is the preferred means for propping up a grossly imbalanced trans-Atlantic (and by default, global) economy, this being exercised by those who have made a career of promoting fantasies and scams, be they private sector sharks of the leveraged Ponzi scheme ilk, or their pet, public sector jellyfish. Everywhere, thievery. Jobs, fuel, food, housing, freedom: thievery everywhere. Discontent only grows. Those who carry on as though money games ought be propped up no matter the cost are no doubt in for a rude awakening. More certain than a tax bill is exploding rage like nothing ever before.

Plainly, everyone's gaze is fixed on the exits. The rush to bid up oil and impose a backdoor tax — this that desperately needed capital backing [unsustainable] leverage might secure another day of life in fantasy insisting light at the end of the tunnel is near — rather exposes our proximity to the end of illusion that, chaos can be averted with but a wall of money. Truth is chaos forever is assured by circumstance making mankind a slave to debt, rather than its master. No shortage of history reveals this truth time and again. This time will be no different.

Maybe in store over weeks ahead is continued restraint forestalling collapse. After all, this has been the principal impetus behind the market's advance off late-June 2010 bottom. There is nothing from a technical perspective suggesting restraint's continuation is unlikely (which by no means is to suppose demand enough to meet limited supply will materialize; rather only that levitation might persist).

Still, further displays of growing technical weakness are sure to register in a manner fitting those same displays thus far. There isn't much time remaining to press fantasy until chaos comes home to roost in many major cities across the globe.

Fast Money
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