Bankrupt Pigs Cannot Escape the Slaughterhouse ~ The Risk Averse Alert

Wednesday, April 10, 2013

Bankrupt Pigs Cannot Escape the Slaughterhouse

How many times over the past few years have we seen it? Rather decidedly does the market's technical state appear entirely tenuous and Team Fraud victory is snatched from the jaws of defeat. Here again this week we are seeing yet another escape from Alcatraz.

Still, the market's technical state remains perfectly precarious. Little wonder really. Every agency in lender of last resort land is hellbent on destroying the global banking system. No one bothers asking if present actions were so useful and effective, then why were these measures never permanent fixtures of regulatory policy?

The world's third largest economy (Japan) is embarking on a hyperinflationary policy that even defies the Goebbels "big lie" machine regulating the depths of stupidity cursing its mainstream audience. The Japanese banking system is about to be destroyed and this truth is impossible to hide. Team Fraud, being masters of fantasy, might cheer on Japan's Wiemar envy all it likes for its short-term, stopgap effect forestalling the global banking system's collapse. Trouble is, though, it's not 1930. The geo-political dynamic being radically different today more or less takes off the table such theft by physical force as now alone stands able to further forestall the global banking system's collapse. China is not likely to be mowed over in payment for Japan's reckless policy like it was back in that former day. Furthermore, a bankrupt United States simply is unlikely to alter this reality.

Then there's the trans-Atlantic. Here, everyone is awakening to a glaring truth that, the best way to rob a bank is own one. We are learning the so-called "bail-in" policy imposed on Cyprus is universal. Indeed, there's no escaping it so long as the kings of denial insist on sustaining their mountainous derivatives dung pile. "Genius" is the last word I would choose to characterize the likely effect of this policy intention. We can be sure the "beggar my neighbor" pony parading in Japan will fail to produce from Asia capital flight enough to forever forestall some major, major bank runs throughout the trans-Atlantic.

Enter the Shadow Greek Prime Minister: truly a dead man walking. The minute China pours into North Korea, his funeral begins. Likewise, Attilos cannot gut federal outlays fast enough to prop up his hopelessly insolvent benefactors. Following on a growing incapacity to export such directed chaos as is necessary to maintain the illusion of political supremacy, this that victims of imperialist swindle be ever increasingly coerced into swallowing a most bitter medicine prescribed by insane, London-trained witch doctors standing behind every last Ivy League incompetent masquerading as qualified American "leadership," the emperor with no clothes practically is begging military defeat. Obama is a laughingstock not even qualified to be president of my bowling league!

It's not like most everyone who is anyone hasn't yet figured this out. They're all too aware in fact...

NASDAQ is at a 12 year high, eh? Pity the dung pile there, too, only is getting bigger! Were it otherwise, then so-called tech "bargains" increasingly would be setting new 52-weeks highs. Quite the opposite is occurring, however. Why? Because the hopelessly insolvent banking system left by King Ponzi, Greenspan, has relegated NASDAQ to become the world's most attractively lit garbage pit.

Trapped weak hands with no choice but hold tightly their NASDAQ-listed trash are fast approaching the moment when they can hold tightly no longer. The fast sinking global banking system in its present "damned if they do, damned if they don't" state will see to it that, a flood of distressed sales of wildly overpriced financial claims at the bottom rung of the capital structure simply becomes inescapable fate. Heck, this impetus already is hitting with increasing intensity much higher up in the global capital structure among financial claims at least possessing direct taxpayer backing. Now the government bonds of the world's third largest economy are about to join the party, while the same issued by the world's second (Germany) and first (U.S.) largest economies invariably are moved only closer to the slaughterhouse's door. Where does this leave equities? Please. Fake it all the kings of denial like, there is going to be hell to pay and I am still betting the bill comes due in 2013...

Word on the Street
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