Kindly old Conway here, once again posting my personal view of the world at large, complete with jaded and colorful commentary, guaranteed to piss off nearly everyone, and perhaps entertain a few.
I pass my time trading the bourses, and like to invest in oil, gold, silver, copper, uranium, and of course, sludge. In other words, REAL, tangible items that everyone wants for whatever reason, perhaps excepting for sludge, which, it must be admitted, has limited market value to most people. Looking at gold for a moment, why is it considered valuable? Who the fuck knows, but Karl Marx wrote that gold was the universal symbol of value in his book “Das Capital”. I guess I’ll have to take his word for it, and as long as everyone else on this tiny ball of rock thinks gold is valuable, I’ll consider it valuable too.
Anyway, the DJIA swerved, broke a ball joint, went out of control and hit a pole yesterday, closing down 165 fucking points, when panicked investors trading on emotions discovered that those sneaky, evil slant-eyed chinks upped their interest rates by a quarter of a point. “How dare they!” everyone shouted in unison, not stopping for a moment to think that the chinks do have a right to protect their interests. That small event led to a knee-jerk reaction in the FOREX market, with the dollar gaining like a running greased pig against the Euro. That in turn caused gold, silver, copper and oil to go over like a lead balloon, which in turn battered every fucking sort of equity that had anything to do with the above listed commodities. The precipitous drop in the Dow had the effect of sadistically adding salt to an open wound, causing BEXP to fall nearly a buck and SLW to fall two bucks. ANV lost a buck and a half. A pile of others fell on their asses too, copper producer SCCO lost well over a buck, various ETFs fell and small caps like EXK, UXG, KOG, TGB and HL all went into the shitter for the duration. I read yesterday that calls on Hecla Mining were way up on Monday; if anyone was stupid enough to hold calls on them today they got royally fucked, in spades.
Not to worry, the American dollar has been taking a gigantic shit for the past few months, which is a good thing for anyone who holds practically any position in the hard commodity market – or any fucking commodity for that matter, from sugar to sludge. With what’s looming next month, courtesy of our friends at the Federal Reserve, I venture the dollar’s newfound strength will be a rather short lived affair, and commodities will again embark on their collective quest for the moon and beyond. That is, with the odd exception of last Friday, when the dollar gained 100 or so pips against the Euro, moving like a bat out of hell, right after head sheenie Benjamin Bernanke stated that the Fed would begin a second attempt at “quantitative easement”. Usually, his obtuse and cryptic mutterings tank the Dow, and drive the dollar ever deeper into the ground; this time it didn’t. It’s supposed to work the other way around in a normal universe you see, the Fed gets involved in the market, the dollar tanks, and hard commodities rise like a bat out of hell. Go figure, the market does whatever it wants to sometimes, fundamentals, technicals, crystal balls and tea leaves notwithstanding.
So, what coming events will cause the dollar to fall further? Take your pick, unless the rest of the world decides to hurl their fiat currencies into the sea or the batshit crazy ragheads start World War Three in the name of a non-existent thing called Allah, the dollar is doomed. It’s this simple folks: The United States of America is very close to fucking BANKRUPTCY, and after that, inevitable default on our obligations, you know, like paying interest with worthless money on worthless US Treasury bills and such. When that occurs, any dollars held in your hand might as well be toilet paper, though they will not be very effective for wiping your ass. I wouldn’t put anything like dollars next to my ancient prolapsed asshole anyway, as I prefer to use pages torn from old phone books.
Why is the dollar in trouble, the reader may wonder? The blunt answer: Stupid, no, insane fiscal blunders by the Federal Reserve are exacerbating the decline of our currency. Sure, government deficits and trade deficits are a large part of the debacle too, but good old fractional reserve banking will cause the dollar to founder completely; it’s as if those stooge like nitwits at the Fed are drilling holes in the bottom of a fucking ship to let the water out!
I repeat: The dollar will sink, and commodities of all types will go through the fucking roof. Quantitative easing 2.0 is nothing but a fancy euphemism used to describe the odious task of “printing more money”, which is then used by the Fed to provide banks with liquidity, and to prop up the market by buying selected equities of whatever type. In other words, quantitative easing is literally legalized counterfeiting, with head counterfeiter Bernanke using the Fed’s endless amounts of paper funny money to keep insolvent banks open, and to purchase “valuable” derivatives like CDOs, CDSs, CMOs, ABCs, PDQs, and fucking XYZs, along with other worthless garbage like FMCC and FNMA, and maybe even goofy shit like MTLQQ or CCTYQ, all of which make fucking junk bonds seem like shares of Apple, Exxon or Google by comparison. After all, our good friend Ben Bernanke and his moronic cronies at the Federal Reserve only have to PRINT the money and PRESTO – they instantly have the capital required for any transaction, no matter how expensive or foolish! The best part is that no actual work, other than loading ink, paper and pushing the “ON” button to run the printing presses, has to be done.
Oh well, back to reality; those silly maneuvers will do nothing to solve the looming problem of US bankruptcy; at best it will only stave off the inevitable for a short time, eventually resulting in an inglorious depression that will make October 1929 look like campfire circle jerk. Once the shit hits the fan, the boys at the good old Fed will simply rev up the presses to redline and pour even more fiat currency into the economy, with the greenback finally becoming just about as valuable as a dollar from Zimbabwe. In case readers do not know, just 1 debased, copper plated zinc US cent will buy you $126,177,901.87 Zimbabwean dollars at the time of this post. Christ, the dimwitted eight balls running Zimbabwe make the krauts of Weimar Germany look like rank amateurs – in 1923 it was cheaper to burn paper German currency (the mark) than it was to purchase fucking firewood!
Unfortunately, the above scenario is inevitable, default and utter chaos, especially since the Federal and even the State governments apparently don’t give a shit if the US economy is destroyed, in fact, they are too damn stupid to realize the destruction they are causing. George Santayana once wrote that those who cannot remember the past are condemned to repeat it, and I submit that he was absolutely correct in that observation.
Moving on, the latest Presidential idiot and his dog-faced paramour blundered their way into Ohio, evidently to propagandize their dour, demoralized Democrat troops. Obama, his malignantly narcissistic ego bigger than fucking Paul Bunyan’s blue ox Babe, condescendingly advised his awed, empty-eyed worshippers to “embrace change”, between repetitive bleats of “yes we can” from his audience of lemming like, dimwitted automatons. This megalomaniacal, fan eared eight ball sounds like a broken record – after stating that voters were “scared”, and “not thinking clearly”, he harangued them to do their very best to thwart the GOP (I suppose by voting twice if they can), so he can continue with his draconian task of destroying what is left of the economy. Really, who in the fuck does this aloof nigger half-breed think he is, Sigmund Freud or something?
Judging from his record and the evidence, I’d say the electorate is thinking very clearly indeed, and they see this inept jig for who and what he is, a Manchurian candidate so far to the left that he makes FDR look like a goddamn Nazi. This interloping shithead has had two years to show his true colors to the people, proving conclusively that he is no moderate by any measure of the word. Obama and his hairy knuckled goons have done nothing but make the economic situation worse; along with promoting a reckless, socialistic agenda that the people no longer want and probably never did anyway. Not that the Republicans can do anything better mind you, as they are as clueless as the Democrats are, just look at the dolt George Bush; it would take a goddamned, motherfucking miracle to save this dying nation from what is destroying it, as noted in the preceding post. Believe me, the RMS Titanic had a better chance against the iceberg, and anyone with an IQ over 75 knows what happened to it.