The Risk Averse Alert

Civil liberties breaches will not soon fade from view unless the smokescreen these produce—distracting from a nation's economic decimation—is cleared with profound physical recovery whose financing employs new, sovereign currencies, these being loosely pegged to today's, as well as well-regulated. This is backdoor Glass-Steagall. First create sovereign national banks capitalized with new currencies. Keep the old. No need to trash anything. We would be simply recreating the "implicit guarantee" private finance once enjoyed with the U.S. federal government's imprimatur. And we're giving it teeth in new wealth creating possibilities upgrading the global physical economy to a 21st century, state-of-the-art standard. By necessity, a Glass-Steagall reform need regulate the firewall between the old currency and new.

As the build out of the physical economy will require material, new revenue streams of commerce necessarily stimulated will fortify much needed capital with "currency"—purchasing power—and so make a sovereign's "implicit guarantee" rock solid. Sovereign wealth's increase promoting greater physical command over abundant resources, applying at the cutting edge of our present mastery energy at densities and economic efficiencies never before achieved is a necessary feat and alone could make an "implicit guarantee" iron clad. Thus would an implicit guarantee lend "value" to all existing claims, old and new.

Policy driven to increase the national wealth through operations of a new sovereign currency offers the financial system a means to orderly transform today's business with a view forward to worthy opportunities of the highest order: those most bountifully blessing both mankind, as well as the bottom line. That's the irony of any resistance to this. We see imperialism naked.

So, it's arm the terrorists in Syria, eh? Sequester-licious. No. Wrong move. We want proof of chemical weapons use! And who will fall if this "proof" proves false? Surely, this piece of Venetian mafia exposes the depth of this system's bankruptcy. Accelerating is imperative to gain control over physical assets via war. Who really owns Washington once again confirmed.

Looking on the bright side, while SAMs in the hands of a Venetian Foreign Legion puts a gun to the head of the commercial airline industry, mag-lev ground transportation channeled in a vacuum can reach speeds exceeding jet aircraft by upward of 40%, so you see the possibilities of creating new revenue streams on a physical platform worthy the 21st century, including the likelihood the jet engine will become obsolete by a technology putting air flight back in the speed lead, as well as make today's SAMs impotent and obsolete.

So, I believe civil rights are secured in policy promoting a broad, increasing prosperity—notably energy intensive—while certain the supreme law of the United States empowers its people, through its Congress, to issue credit fostering this end in fact. The outstanding history of this sovereign power, unleashed during the nation's most critical hours, will not likely be overturned permanently. Bottom line, the American System of Political Economy is the only face-saving way out for those today wearing Venetian stripes (whether they know it or not). All things remaining as they are, there simply is no middle ground. This viewpoint hasn't changed. Not coincidentally, volatility has been game for nearly twenty years now. Likewise has this been abundantly necessary, and profitable to a shrinking few. Out of necessity must this game turn increasingly violent we might, indeed, rather reasonably conclude.



One technical matter worth noting again is the S&P 500's presently elevated momentum (see MACD). This, judging by a fair chunk of history, more or less suggests good luck pushing the market higher. So, we're rather anticipating a negative turn than an imminent melt up (although a 5th wave higher, possibly forthcoming some weeks from now, might give a "melt up" a run for the hot money). Remaining to be seen is whether momentum's currently positive state in fact assures the period immediately ahead will see the S&P 500 topping while its weekly momentum fades, this in a manner like 1999-2000. What per Elliott wave considerations might make this time different? We might add to this question elevated weekly MACD—will this time see the market rocket higher?—yet already, a short- and intermediate-term  relative strength fade suggests there could be little time remaining, so better look out below.

Another immediate problem is persistent chatter of the Fed tapering its QE. We might consider the possibility this is telegraphing an intention to pull the bailout plug and precipitate a new banking system crisis, which, like the growing tendency to expand war, would be venturing to violently marshal control over physical and financial assets, waging chaos on the cheap while gaining a corrupt political class' backing. Act II, we might suppose, will showcase "bail-ins" in a big way. Certainly, larger wars will be more easily started subsequently. Grand.

The above Elliott wave count might prove too optimistic per near-term possibilities, then. Technically speaking, there is a reasonable possibility wave B off March '09 bottom peaked in May, leaving the market, near-term, poised to unravel. The line of support drawn above connecting the S&P 500's 2010 and 2011 bottoms could prove telltale even over coming weeks and months. We might call it the "no exit" line and find, should Confetti be ordered to taper, its proven support evaporating even quicker than book value of many a too big to fail fee junkie. To be sure, the sooner these feast on an American System harvest the better for all concerned. All sane anyway.



© The Risk Averse Alert — Advocating a patient, disciplined approach to stock market investing. Overriding objective is limiting financial risk. Minimizing investment capital loss is a priority.

Analysis centers on the stock market's path of least resistance. Long-term, this drives a simple strategy for safely investing a 401(k) for maximum profit. Intermediate-term, investing with stock index tracking-ETFs (both their long and short varieties) is advanced. Short-term, stock index options occasionally offer extraordinary profit opportunities when the stock market is moving along its projected path.

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