The Ominous Smell of Approaching Disaster ~ The Risk Averse Alert

Tuesday, July 03, 2012

The Ominous Smell of Approaching Disaster

How does one rightly get excited about fraudsters caught red-handed rigging at the height of 2008's financial collapse (and since) imperial Britain's core interest rate called LIBOR, particularly now, with shamed Barclays contingent making the likes of Tina and Bernice more clearly appear the whores they truly are? This is what these two have been busy "saving" these past few years! For this the gutting of so-called entitlements, as well as national defense, this that the Queen's cling-on, Windy, might babble on about "fiscal responsibility," is part in supporting. Of course, there have been (and continue to be) many other frauds whose destructive effect on investor confidence is no less problematic, this vexingly so to supposedly well-educated folks who actually think resurrecting Adam Smith's Leveraged Ponzi Scheme in fact is possible. Yet the intersection of these with Washington D.C. represent the sort of misdeeds that should matter most to anyone wishing to call themselves an American.

So, why the excitement over tainted sugar used to bake a giant fraud cake that is the trans-Atlantic financial system and, most emphatically, why expose this corruption now? Could it be Team Fraud is but further preparing to destroy the U.S. Treasury in a hyperinflationary blowout crushing core debt securities anchoring today's massive Derivatives Black Hole? Was this possibly a concession to Germany for likewise inviting the same at last week's meeting of European marionettes? Whatever the case — these possibilities probably are all off base — with the election season in the U.S. about to go into full swing, and with 2008 a guide post in how to swindle the greatest nation on earth (this at least in principle), the fall of Barclays' leadership (with others soon to follow) has the ominous smell of a Bear Stearns and Lehman Brothers setup to a fast approaching financial tremor.


Highlighted above are the NYSE Bullish Percent Index's readings coinciding with recent instances when the NYSE Composite Index was both decidedly advancing and printing at about today's level (7900-ish). The bearish divergence developing at present is the more noteworthy at a moment finding confidence-destroying fraud not only still on the radar, but likely closing in fast for the kill. Further technical similarity to last July, as is revealed above, offers fair warning.

(Adding to this similarity to July 2011 is the relative position of the NYSE Composite's 50-day moving average to its 200-day moving average here at the assumed completion of a 2nd wave of five waves down from this year's peak. I failed to note this last Friday. With the 50-day nearing its "death cross" of the 200-day, I might also add this probably was the worst year possible to be holding the summer Olympics in London. Violent chaos suiting imperial objectives — among which includes burying the United States — could be a credible risk that is something more than an outside possibility here at the precipice of the trans-Atlantic banking system's collapse.)

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