The Thessalonian VIX ~ The Risk Averse Alert

Tuesday, January 22, 2013

The Thessalonian VIX

Destabilizing circumstance recently developing both to the right and left of respective U.S. coasts surely makes only the more desperate a hopelessly insolvent Fed under Capo Confetti's leadership. There's really no other way to explain a collapsing Volatility Index in the face of growing threats of currency war...


$VIX

Oh please, oh please insure your razor thin slice of grossly mis-priced equity at the capital structure's bottom rung, particularly now with trouble off the right coast becoming fairly acute. A financial transaction sales tax rally involving nearly a dozen countries on the European continent? A Glass-Steagall simulation in Germany? Good lord, it's Armageddon!

Having gone this far, now, how much longer before European political circles throw in a bank CEO perp walk exercise for good measure? Then again, such a prospect probably is best saved for a moment when there is more urgent need to coerce Team Fraud into driving long bond rates in Italy and Spain down toward zero. For the time being the Count is succeeding doing "whatever it takes" to prevent any such necessity. An all talk, no action miracle! Too bad Capo Confetti does not quite enjoy the same luxury in his use of rhetoric. Such is life heading an institution directly responsible for the European banking system's insolvency, this being perpetrated during the zero due diligence reign of King Ponzi, Sir Greenspan.

Have no doubt. There are no shortage of monetarist dupes who believe the Fed is serving a useful purpose propping up a criminally reckless banking system in fact far beyond any hope of its financial integrity being restored. It is useful here to note on this account a certain, relevant wisdom of the Christian variety:
"Whenever it is that they are saying: 'Peace and security!' then sudden destruction is to be instantly upon them just as the pang of distress upon a pregnant woman; and they will by no means escape."
1 Thessalonians 5:3

So, here we find at the bottom rung of the capital structure risk priced as near to non-existent as can possibly be. Let's just say back in 1987 underlying fundamental conditions across the globe were far less potentially disruptive than presently is the case and yet the biggest crash in U.S. stock market history occurred that year. In the financial background that year, too, was upward pressure on interest rates and a falling dollar. Both these in fact are not insignificant risks today, particularly with currency market instability on the increase.

Now we might also wonder whether the criminal element propping up the hopelessly insolvent trans-Atlantic banking system is worrying about an ascending trend put on display again this weekend in Algeria. Sovereign resistance to imperial intrigue born of an out-of-control national security state is its name. Could such growing resistance precipitate financial warfare intending to destabilize sovereign states generally? There certainly is no shortage of evidence indicating this broad objective is a functional reality of the highest order, and whose pursuit over recent years, indeed, has been accelerating. No one might be talking about this facet of the contemporary landscape, yet the entrapment of national treasuries in the decades-running march toward a hopelessly insolvent banking system is difficult to ignore in this light. Any counter-reaction asserting sovereign prerogatives represents a threat to bankrupt thugs pushing a nefarious agenda to be sure. Such is how objection to Glass-Steagall among top tier operatives in the imperialist system of globalization should be understood in fact. Having everything to lose were sovereign resistance perceived near a boiling point, we would be wise to expect an attack venturing to cool threatening sovereign imperatives using those tried-and-true means employing outright swindle, such as were vividly brought to bear back in 2008.


Word on the Street
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