Insolvent Albatrosses Yell Default in Crowded Pigsty ~ The Risk Averse Alert

Wednesday, October 02, 2013

Insolvent Albatrosses Yell Default in Crowded Pigsty

Nothing like well choreographed exposure of the fact behemoths among financial firms largely live by way of outright extortion. Today's meeting of the Financial Services Forum with the president at the White House provided a venue for this cartel of bailout junkies to lobby their hopeless cause with dire warnings of a U.S. Treasury default. Never mind the fact default is a legal impossibility. Yet being so good at playing dumb, we ought ponder this reckless group's intention here.

Surely, their expressed "fear" of a Treasury default was not so much directed at a domestic audience. The "structural reform" card has been overplayed, and not even snow cone sucking Eskimos will accept the financial guidance of the most reckless criminals ever to run a banking system into the ground.

The question is whether foreign recyclers of excess dollar balances into U.S. Treasuries and agency securities more likely were the target? Well, the trouble with yelling "default" in a crowded pigsty is no different than yelling "fire" in a crowded movie theater. You risk precipitating a stampede for the exits. Indeed, the very act should be illegal, much as it is to yell "fire" in a movie theater.

Now, how could insolvent albatrosses squawking about risk of a U.S. Treasury default be useful? Think bail-in. Maybe the groundwork is being laid. We have to wonder whether controlled disintegration of the banking system in fact is the objective here.

That this risk to Wall Street is elevated the president today acknowledged. To what extent this is serving backstabbing Venetians whose unregulated, offshore derivatives dung pile lured the U.S. banking system into its present state of insolvency is a matter deserving some thought, as well.

The nation's insolvent albatrosses no doubt are aware of the consequences of shouldering the burden of bailout alone, now that the BoE has turned its back on the QE enterprise. The U.S. dollar now stands at greater risk of cratering a la the German mark in 1923. Whether all members of the the Financial Services Forum appreciate this risk (unlikely), they all sure would be happy if the BoE got back on board QE. It's hard to imagine, though, how yelling "default" in a crowded pigsty serves this end, however. There's something else being ventured.

One thing the president didn't say today, though, he would have been better making his highest priority. Namely, there is an increased risk the U.S. comes under attack from disgruntled fundamentalist cannibals left twisting in the wind in Syria. DNI Clapper has laid the foundation whereupon a false flag could be reasonably anticipated here. One could imagine how rightful rage any large scale act of terror will precipitate is now more likely to be misdirected. How could insolvent albatrosses yelling "default" in a crowded pigsty be blamed? Yet blamed someone in their food chain rightly need be, as money talks the Venetian game, as has been successfully proven over many centuries.

If the president doesn't declare the national security state an essential agency in this time of declared national emergency still in existence following 9/11, then no measure of blame anyone could rightly assign to Tea Party fanatics for an act of terror occurring while the federal government is shut down will deflect from the president's dereliction of duties. It's bad enough the feckless republican party is too cowardly to disassociate from the fascist subversion being run through the Tea Party. What grave compromise to the entire political system could await a deep state false flag ought not be tempted. As much as the national security state is an abomination on account of the fact its very existence facilitates subversive moles, the mere appearance of its being compromised need be recognized a potentially fatal mistake. The White House need recognize this, and stat.

Word on the Street
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