Archive for April 2009
By Bill Bonner, The Daily Reckoning
San Diego, California, Posted April 6, 2009
“People in this country don’t realize how bad things can be,” said Richard Russell on Saturday night. “I lived through the Great Depression. I remember people standing in bread lines. It was hard to get a job, any job, back then. But now, you see the restaurants are still full. People are still spending money. They may be worried and they may be beginning to save, but there’s no sense of urgency. And there’s a rally on Wall Street. You know, every bear market produces a rally. You can expect the market to retrace its steps by one- to two-thirds.
“And every bear market has a surprise. I think the surprise is that this is going to be a lot worse than people expect.”
Richard Russell is 84. He’s been writing his investment newsletter, Dow Theory Letters, for 50 years. This weekend a group of his admirers, including your editor, came together to say thanks. There are a lot of people with opinions on the economy and the stock market. You can hardly turn on your computer without getting dozens of them. But there are not many opinions with the depth of experience and knowledge behind them as those of Richard Russell. He’s been studying “the language of the markets” for more than half a century. Though no one ever fully masters the language of the market, Richard can at least carry on a conversation with it.
By Darryl Robert Schoon
28 April 2009 www.drschoon.com
ALTHOUGH PRESIDENT OBAMA has not yet challenged Wall Street, other powerful interest groups see the President as a threat; and, the unexpected reappearance of swine flu may, in fact, be the result of a failed attempt to eliminate Obama and his mandate of change.
On April 25th, Bloomberg reported: Mexico’s Calderon Declares Emergency Amid Swine Flu Outbreak: The first case was seen in Mexico on April 13. The outbreak coincided with the President Barack Obama’s trip to Mexico City on April 16. Obama was received at Mexico’s anthropology museum in Mexico City by Felipe Solis, a distinguished archeologist who died the following day from symptoms similar to flu, Reforma newspaper reported.
To understand the possibility that the reappearance of swine flu in Mexico may have resulted from a botched attempt to assassinate President Obama, it is first necessary to understand the origins of swine flu and its curious connection to the US Army.
By Ambrose Evans-Pritchard
Posted 26 April 2009
THE WORLD IS RUNNING OUT of capital and some economies will wither. We cannot take it for granted that the global bond markets will prove deep enough to fund the $6 trillion or so needed for the Obama fiscal package, US-European bank bail-outs, and ballooning deficits almost everywhere.
Unless this capital is forthcoming, a clutch of countries will prove unable to roll over their debts at a bearable cost. Those that cannot print money to tide them through, either because they no longer have a national currency (Ireland, Club Med), or because they borrowed abroad (East Europe), run the biggest risk of default. Traders already whisper that some governments are buying their own debt through proxies at bond auctions to keep up illusions – not to be confused with transparent buying by central banks under quantitative easing. This cannot continue for long.
Commerzbank said every European bond auction is turning into an “event risk”. Britain too finds itself some way down the AAA pecking order as it tries to sell £220bn of Gilts this year to irascible investors, astonished by 5% deficits into the middle of the next decade.
US hedge fund Hayman Advisers is betting on the biggest wave of state bankruptcies and restructurings since 1934. The worst profiles are almost all in Europe – the epicentre of leverage, and denial. As the IMF said last week, Europe’s banks have written down 17pc of their losses – American banks have swallowed half.
Posted 20 January 2003
Are you asleep or awake? What about people you interact with daily? Most will answer that they are awake, and that those around them are awake as well. It’s a simple question with an easily determined answer, or so it seems.
Not all is as it seems. Rather than two states of being, there are at least four. The mind and body can be asleep or awake independently of each other.
With mind and body awake, one is truly awake. With mind and body asleep, one is dreaming. With mind awake and body asleep, one is lucid-dreaming.With mind asleep and body awake, one is sleepwalking. Gradations exist between these four states, ranging from hypnotism and trance to daydreaming and dim consciousness.
The common understanding of what it means to be “awake” disguises the truth. In truth, most who call themselves awake are actually not awake at all. They are either hypnotized, dimly conscious, sleepwalking, daydreaming, or in a state of trance. What all these states have in common is that the conscious core of the individual is absent or passive, blowing like a leaf in the winds of environmental stimuli.
By Lorimer Wilson, 17 Apr 2009
MANY AMERICANS, and indeed many people the world over, have lived in a Ponzi bubble economy for more than a decade. The American economy, for one, became a house of cards of leverage over leverage by households, financial firms and corporations that has now gone bust.
A Ponzi bubble? Yes, after Charles Ponzi, a Bostonian with an eye for get-rich quick schemes who, back in 1918, identified an arbitrage situation which he promoted as being able to generate sizeable returns for those who invested with him. He delivered on his promise by making his close friends and a small circle of investors very rich, very quickly, and, as word spread among the wealthier citizens of Boston, they began lining up to invest. Regretfully, when anything looks too good to be true, it probably is and it was. As a result of his infamy his name has been immortalized to describe any fraudulent investment scheme where the money from later investors is used to pay the early investors and so on right up until the moment the whole thing collapses on itself. Sound familiar? Yes, 90 years later the 50 billion dollar Madoff pyramid collapsed – a Ponzi scheme if ever there was one! Now may well be the time to lay the Ponzi name to rest and replace it with the infamous word ‘Madoff.’ Time will tell.
But Ponzi and Madoff were not the only ‘investors’ who were conning those around them. We must not forget the tens of millions of Americans who were participating in ‘The Great American Ponzi Scheme’ or, as some would more accurately characterize it, deploying their own ‘greater fool theory” that there was really nothing to worry about because there always would be a ‘greater fool’ than them out there somewhere who would still lend them money, buy their over-priced house, over-valued stocks, etc. to keep their financial house of cards from collapsing. Below is my edited, paraphrased and enhanced version of how Nouriel Roubini once described it:
From New Civilisation Network, posted January 14th 2004
“I will carry my gods within me, swallow my divinity whole. The responsibily that clarity unveils… as I become the face of my soul.”
Psychic pollution spread by the popular media in the form of newspapers, television and advertising is toxic and detrimental to our divinity. We are sensitive instruments and our vibrationary level/frequency is affected by our observations. Like a tuning fork we tend to vibrationally attune to the object/subject of our observations. “News” is everything that you could possibly think of and is “happening” somewhere on this planet.
The news that is reported is bits of usually negative stuff that we are implicitly told is newsworthy. We then observe, reinforce and strengthen by our observation and attention whatever the “news” happens to be. We are not usually told of all of the wonderful things that are happening every single second all over this planet too. It is our decision where our attention is focused, but there is a powerful and subtle pressure to pull our focus in certain directions. It makes a difference where our attention is focused, it makes a difference how we “vibrate”.
We hold the key to changing and helping to birth a new consciousness… the control panel lies within. Eliminate or reduce your exposure to TV (a powerful and addictive drug), to the “news”, to newspapers, to advertising, and take a few steps outside of “the consensual reality” and then look again. When you are within it you are attuned to it. Step outside and realise a new world lies within each of us but we must detach from the “programming” as that keeps us only able to access certain levels of consciousness. Mass reality has a ceiling… get above that and there is a vastly different view.
[Apologies to the original author: some editing was applied.]