My Backdated Wrap On Ill Fated Crap ~ The Risk Averse Alert

Thursday, December 19, 2013

My Backdated Wrap On Ill Fated Crap

My desire to comment on these fleeting moments of bird brains mindlessly pecking at the largest collection of trash on the planet trading on global stock exchanges is exhausted. I would sooner report on sea gulls circling a municipal garbage dump than continue mocking a deception whose objective ventures destruction of so many significant accomplishments of the past several centuries. Chief among these is the constitutional republic of the United States of America. It probably goes without saying the so-called "best and brightest" never would acknowledge this objective that today's rickety financial state imposes on a fate likely to be marked by unprecedented panic.

In terms the self-benighted should understand, there simply is much too much mispriced risk running straight up to the top of the capital structure. Lowly equities are nothing more than a sucker's game: a trap whose springing realistically could have the same effect on investors as baited mechanical devices have on rodents: from living to dead in an instant. This risk, indeed, pervades the entire capital structure. The inherent danger this presents is both fundamentally and technically apparent. One must be blind, or criminal, not to recognize it.

Every dire warning written here remains intact. The trans-Atlantic banking system along with central banks lording over it remain hopelessly insolvent. These are being levitated by the dying breath of the greatest Ponzi scheme the world has ever seen. Nothing has changed. Supposed financial de-leveraging and economic recovery are figments of twisted imaginations encouraging collective suicide. This extended moment sustaining profoundly mispriced finance in suspended animation is nothing but a fantastic charade. Same fraud, different day.

Likewise, there remains no middle ground providing escape from certain calamity destined to reach far and wide across the globe. A banking system whose capacity to paper over a mountain of illegitimate financial claims using still greater quantities of the same is the stuff of legend positively portending an historic deluge of tears. Granted, Ponzi finance added since 2008 finds no small portion presumed "trustworthy." No doubt, this quality about securities issued by lenders of last resort always has been proven. Yet this whole house of cards is doomed because, since 2008 nothing has been done to increase the productive powers of labor, its capacity to amass tangible wealth sustaining its productivity, which is the ultimate backstop underpinning finance, and on which a modern banking system's solvency critically depends.

Surely, we have seen the AAA-rated trash trick before! The U.S. Treasury is by no means immune to a behemoth, fraud-rife banking system's due diligence disease. The only thing that has changed following 2008's financial crisis is the extent to which the very top of the capital structure has been infected. There's simply no escaping the fundamental fact that, today's banking system is ultimately being sustained by a Ponzi scheme.

We are long past the point where unprecedented indebtedness, parabolically increasing over decades, might reasonably be regarded a "blessing." A stubbornly unchanged paradigm enslaving the creative capacities of humanity to the illegitimate claims of demons controlling the levers of finance positively guarantees still deeper systemic crises. Of little concern, really, is when the next leg hits because then it just might be too late for anyone to reach the exits without being stampeded. This risk is very real, my friend.

Concern over the legitimacy of finance underpinning the U.S. and trans-Atlantic banking systems is of supreme importance as we look ahead to the coming crisis of confidence certain to explode at some not-too-distant moment. There is but one sane course forward offering to re-establish economic stability, while shrouding today's illegitimate finance beneath structures possessing unquestioned viability. Only a robust, all-pervasive deployment of a Hamiltonian credit system financing the build out of a physical economic platform worthy the 21st century will put the U.S. and trans-Atlantic banking systems on solid footing. No measure of sacrifice, no reactionary dismantling of social progress made over the past two centuries, will substitute for full implementation of the practical means by which the cause underlying the American Revolution was, is and ever will be defended: through the use of credit financing physical capacity certain to raise the productive powers of labor. That nothing of this sort followed the financial crisis of 2008, while only the most vulgar social degradations instead were promoted, positively screams the viability of today's banking system rests upon the shakiest of confidence games. Remember this, foremost, when the so-called captains of finance yet again imply their power to subvert human progress is made legitimate as they spew their bunk claiming "no one saw crisis coming."

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© 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.

Nothing is set in stone. Nor is the stock market's path of least resistance always known. More often than not, there are no stock index option positions recommended.


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