Never More Vulnerable to Chaos ~ The Risk Averse Alert

Friday, July 26, 2013

Never More Vulnerable to Chaos

It's safe to say the U.S. stock market is priced to perfection. It's also safe to say that, in my entire fifty-four years of life the financial and economic backdrop invariably driving the U.S. stock market is the ugliest it has ever been. Thus, is reasonable notion this market is "priced to fantasy" and vulnerable to chaotic volatility.

The one major error of my analysis over the past five years has been under-appreciating both the acuteness of this vulnerability and measures that would be taken to extend a fantasy whose origins, really, date back to August 15, 1971. This, of course, was the date Nixon ended the Bretton Woods system of fixed exchange rates and, much like the repeal of Glass-Steagall in 1999, was predated by circumstance inevitably leading to that day's "climax" whose subsequent consequence gave birth to an "economy" driven by hyperinflationary breakdown, the likes of which Glass-Steagall's repeal now assures the 1923 Weimar experience will become our own in due time, unless we come to our better senses (as it appears some in Congress are).

Now, let's be clear. The market's vulnerability to chaotic volatility is not an unintended consequence of an otherwise noble intention. Rather it is a feature of a framework venturing to destroy the notion of sovereign nation states right up to the United States itself (most emphatically!). This conclusion is not some hair-brained paranoia. There's abundant evidence smack dab in front of the world's face for anyone with eyes to see. Clearly, then, is blindness prerequisite to being one among the frightfully clueless surrounding us today.

We should consider here what little it would take to reverse today's vulnerability. First, stop listening to mentally challenged "authority." Anything those throughout contemporary society in leadership positions say or do playing to blindness simply deserves no attention. The blind leading the blind into a ditch is no threat, really, nor much of a concern, either. Thus, does the mainstream media find itself possessed by a vexing gnat infestation. How many consider their distracting work prima facie relevant to truth's capture! We are among but few who recognize this sad reality. With this, though, comes opportunity to do good.

Critical to subduing today's vulnerability is a will to break the London-New York Axis of Fraud. This in action requires practical policy measures, as well as elevation of every imperative seeking advancement of scientific discovery and innovation, these serving to further substantiate spiritual truths our generation has power to manifest in keeping with mankind's growing awareness evolving over the course of millennia bringing humanity to more intimately fathom the fullness of its "place" possessing dominion over all creation.

Not necessarily wishing to wax philosophical here, change uplifting truth is inescapable and does not require calamity to precipitate its coming into being. Indeed, we might carry this conclusion to a level supposing that, wherever calamity is purposely being fostered, a force alien to truth likely is at work. We would be blind, ourselves, not to recognize mankind's capacity to suppress truth, and we would be cowards not to counter this using every facility at our disposal.

If we agree our world's present vulnerability to chaotic volatility is preordained and intended—the evidence is just overwhelming(!)—then we likewise recognize how blind sophists over the past five years have only acted to further sustain a liquid swindle that, in fact has been ongoing for several decades now. As this arrangement employs a classic, negative feedback loop destined to break confidence in its efficacy with ever greater effect over the course of its evolution—again, the evidence is just overwhelming(!)—we can be virtually certain our outlook anticipating major U.S. stock indexes falling back to levels last seen in the 1987-1994 period possesses overwhelming supporting evidence, the likes of which a preponderance of blind suckers otherwise are inclined to ignore.

Now, here's how this condition—this state of affairs—appears "natural" (i.e. abides the "Laws of Nature"). Any given tree over the course of a season will produce thousands upon thousands of seeds, yet but one of these will be extraordinarily lucky to grow into the likeness of the tree that produced it. Thus, the view we have here regarding our current state places us one among the trees in fact. In other words we are inclined to lead for the sake of truth, that it be both exposed and asserted to form a more lawful arrangement—one driven by an overwhelmingly compassionate intention, which too is a state entirely harmonious with nature itself. That "the harvest is plentiful, but the laborers are few" is not lamentation. Rather it is recognition of opportunity assigned to the chosen few.



We've gone over a number of alternate Elliott wave counts over recent months, of which the one indicated above is in keeping. The point to consider in weighing its credibility is the aforementioned vulnerability to chaotic volatility built in to today's underlying circumstance.

We see the Dow Jones Industrials Average's weekly momentum (see MACD) in May peaked just shy of its best reading of the past forty years (this registering in 1999), and now is slowly fading, negatively diverging coincident with manipulation of a badly broken price discovery mechanism driving the index to a new record high over the past month. Should we not rather suppose the former momentum peak of 1999 will remain intact on account of it occurring at a time when underlying circumstance was considerably less vulnerable? Should we not more so suspect nefarious objectives culminating in an environment cultivating increasing vulnerability would be masked in trappings making today's well-groomed sophists—still garnering respect (especially the Fed)—appear credible, that tomorrow these might be entirely discredited and more easily pushed aside? Should we not, indeed, fear the complete destruction of equities on account of the fact risk much higher up in the capital structure is being willfully compounded, all the while being aggressively mispriced?

These questions answered in the affirmative hasten recollection of recent incidents when increasing, underlying vulnerability was unavoidably exploited. Again and again we see the mask coming off, yet the true face of what's going on remains mysterious to most. Almost overnight some new crisis develops out of the blue (or so it seems anyway) and it's off to the graveyard. Lo and behold, we presently find considerable technical basis for projecting another burial. We are hard pressed, too, to fathom a time when the majority were so decidedly sanguine in spite of persistent problems whose resolution continues to defy authorities in whom much unwarranted faith otherwise is being placed. Thus, we very well could be at a terminal tipping point from which most today simply will not recover, if theirs is fortune even to survive at all.

Detroit's bankruptcy reveals Team Fraud's policy remains driven to fleecing savings in order to increase leverage. The back door leading to this end was sealed shut in 2008, and so confidence required to continue pretending expanding debt burdens can be serviced without compromising accumulated wealth has gone the way of the dinosaur. So, now the front door alone is available to further extort accumulated wealth in an effort to continue pretending the massive mountain of debt accumulated over the past several decades is legitimate. Eventually, though, this entryway, too, will be sealed. Then, the only remaining alternative available to imperialist scam artists will be a furious wealth burial in a hyperinflationary flood silencing sophists who today claim purchasing power is under no threat whatsoever. Between now and then we can look forward to criminal extortion exploiting today's deep-seeded vulnerability precipitating chaotic volatility to the end of bringing garbage at every level of the capital structure to its knees...


Word on the Street
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