Making Enemies ~ The Risk Averse Alert

Tuesday, November 15, 2011

Making Enemies

Shark on shark everywhere grows more vicious. Taking down the third largest bond market in the world, while circling toward the euro-zone's core. What ever happened to Spain? Ultimately too tightly coupled with the Bank of England? But another shark attack in waiting. Every Treasury and central bank in the trans-Atlantic stands at grave risk today.

That it's radical restructuring time is plain, but in a manner risking war? Insane.

Certain is extinction of central banking in its present form — this facilitating a wildcat securities orgy, one day AAA, the next worthless. Destroy sovereign treasuries, and you kill central bank backstops. It's that simple. So, how in hijacking treasuries does an "all is better now" game of make believe fly when further support for collapsing leverage will require but greater increments of brutality?

Physical reality in a shark pool rather suggests pretend time is near expiring. Crackdown today on dissent, too, warns the same. A big part of the game, no doubt, is "maintaining appearances." Such, though, are how wars these days are made. It is no coincidence that, everywhere you look is some interest or another under attack. You can't have wars without making enemies.

What kind of man rationalizes circumstance moving in this direction? Well, were he President of the United States, he'd be fit for the 25th amendment it seems. Knowing what's possible peaceably? What sane man wouldn't agree?


Moving on to reality in the land of make believe, the market's extended levitation following its stumble at this month's start rather looks to continue. Although last week's peak is in the cross hairs, so too will be levitation's end once it is exceeded.

Fast Money
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