"Kip's VRA financial newsletter is a MUST read for every saavy investor in this country. Disregard it at your own peril. His mantra is my mantra: Buy Gold and China. Sell short on pretty much everything else. Kip Herriage's newsletter is my financial Bible."

--Wayne Allyn Root
2008 Libertarian Vice Presidential candidate
Author, "The Conscience of a Libertarian"

Twitter: @kherriage

Twitter: @kherriage

Karl Bessey

Mary Dee

Mike Budny 
Tuesday
Apr082014

VRA Letter Update - Timing the Markets Perfectly

After massive losses, I wrote that a stock market rally was in the cards and we got that today with a minor move higher in the Dow and S&P 500, and a much better recovery in the badly beaten up Nasdaq and Russell 2000....home to 99% of internet/biotech stocks that have been hit with 20-30% losses over the last 2-4 weeks. 

In a perfect world we would have had a sharp move lower at the open today, and the VRA would have recommended the purchase of 1-2 investments that were timed perfectly for short term gains of 30-50% plus. And, while it's a near term positive that the markets halted their recent destruction, the kind of trading that we saw today is NOT indicative of a final bottom being in place. Instead, it's much more likely that we will see at least one more round of focused selling that takes the market lower...at least that's the trend that I have witnessed throughout my 30 years of observing the markets. Bottom line; buying either stocks or call options on stocks/indices right now is almost certainly going to be a mistake...at least from everything that the VRA System sees happening as of now.

Remember my warnings from a month ago? I wrote (consistently) that we should closely watch the market leaders...momentum stocks like Google, Tesla, Netflix, Facebook, Amazon, etc....and that if these current day leaders began to display significant weakness that it would be a major warning sign for the overall market. This is exactly what played out....now our focus turns to the future, and again, we will watch these same leaders to get a sense of when the perfect buying opportunity presents itself once again.

In less than 2 months we have locked in gains of 175%, and the last thing we want to do is give back our profits. With this in mind, I would rather wait and be as certain as possible that a true bottom is in place before acting. Ideally, we will see a retest of recent lows...a retest that holds...and this will serve as a springboard for the next big move higher. I could be wrong...but just don't think we are there yet...and the VRA Trading System is confirming everything I've written here.

Finally, we saw another 7% move higher in our mining ETF today. As I've been expecting, the miners bounced almost exactly off of their longer term support levels...with gold and silver doing the same. Continue to buy each of these....we will see gains of several hundred percent before we sell...gains that could reach 1000% plus.

KEEP AN EYE ON GLOBAL RISKS

We are seeing a new flare up in Ukraine, with Russian protestors raising the risks of further conflict. This may not end with just Crimea...if things spread to cities like Kiev, the international community may not feel that they have any choice but to become involved militarily. Remember, Putin's poll numbers have never been higher than they are now...the taking of Crimea was a major positive for him in the eyes of the vast majority of Russians. Now, we have Obama making empty threats and warning Russia to back down. Let's hope this doesn't escalate further...for lots of reasons. Financially speaking, it could turn into a big negative for stock markets...something to keep an eye on for sure.

In addition, the sources that I trust the most when it comes to China are warning that their credit/debt/housing bubble has now burst, and that the 3 year decline in stock prices is just the beginning of what will become massive losses over the next 1-2 years. If this happens, there is little to no chance that the US markets will be immune to serious economic decline....and Europe will be hit even harder.

Maybe these risks are what’s really behind the big drop in our market leading momentum stocks. Either way, we will know soon enough. Just another reason to be patient and to protect our gains.

Until next time, thanks for reading.

Kip

Friday
Mar212014

VRA Market and Positions Update - Total Returns of 193% in Past Month

The stock market is behaving almost exactly as our technical indicators and VRA Trading System has predicted. Each of the three major indices (Dow Jones, S&P 500, Nasdaq) closed sharply higher again today, and barring another geopolitical surprise from Russia (or elsewhere) the markets should now be able to focus on the domestic US economy...one that continues to improve, albeit slowly.

The following was from last weeks VRA...just prior to the markets big move higher:

“Could this be the beginning of a big leg down in the overall markets? Yes…anything is possible…and long term, the economies structural problems WILL send the markets far lower….but the internals that I see now are telling us that this is a buying opportunity, and we will use this pullback to add to our positions.”

Nothing that I saw in the stock market concerned me, outside of Russia-Ukraine, and thankfully for the world, this situation has not escalated further. There's something about Putin and the way this has been handled to date that tells me we haven't heard the last from him on Ukraine...his appetite may be a bit larger, but I don't see the level of risk that many are talking about. As investors, we need to watch this closely, but playing the Hitler card when comparing Putin's moves in Crimea and Ukraine to Hitler's early moves leading up to WWII seemed more than a little paranoid to me. This is why I looked past this risk and recommended that we aggressively buy our recommended leveraged indexes and call options on the pullback.

Yesterday we had the great (dis)pleasure of hearing from new FED Chair Janet Yellen,  and while nothing that she said was a surprise, it was “how” she said it that sent the markets into a tizzy. Once the words, “higher interest rates in 6 months” left her mouth, the Dow Jones collapsed by 200 points in minutes and the party was on. As I wrote immediately after her press conference, Yellen’s verbal typo was actually a perfect buying opportunity:

“Based on what we see so far, once the market completes its shake-out we will see a continuation of the move higher in equities. The VIX is actually down on the day (telling us there is little to fear), while financial stocks are positive and the NASDAQ is seeing a strong bounce back (particularly in up/down volume, which is even on the day).

We will let the trend be our friend here...this market is still headed higher. The magnet to 1900 on the S&P 500 looks to be strong.”

And, that's exactly what took place...

We are now approaching the end of the first quarter, and portfolio managers will most likely be strong buyers of stocks in advance of the quarter ending and the coming earnings reports, which I expect to be quite positive on balance. The tech leaders that we have been watching as leading directional indicators (Apple, Amazon, Google and Facebook, etc) have bounced back in a big way, and we are now seeing this leadership extend to the financials as well. This broadening in the markets is another bullish sign, and when combined with the technicals that the VRA System keys off of, we should see a solid move higher in the markets as we move into April.

VRA TRADING SYSTEM 

Over the last month, the VRA Options System has produced profits of 108% in VIX Puts, 25% profits in SPY calls, and we currently have a 60% profit in our Mining Index calls, for a total gain of 193%. ..and we are just getting started. The VRA system is designed to uncover significant trading opportunities at important turning points in both the overall market and in individual stocks. In addition, as market volatility swings from overbought to oversold, the VRA system will position us to capitalize on the emotions of the market using the VIX (volatility index)....where the vast majority of investors continue to "buy high and sell low"... or just the opposite of what an investor should do...based on the mistakes of following their emotions...their fear or their greed. 

Options trading is not for everyone, and that's why the VRA will continue to uncover undervalued stocks that can give us 50-100% gains...and much more...each and every year. Currently, our Stock of the Century is waiting on major news. When this news hits we can expect a significant move higher...followed by years of exciting and rewarding news on drilling reports and additional activity out of their other major global concessions.

In addition, we will continue to see massive gains in our precious metals positions, and our leveraged positions in gold and silver ETF's. I've been bullish on gold and silver since 2003 and before this bull market is over, investors will be shocked by how high precious metals go. I continue to look for the best opportunity to add a new small cap mining stock to the VRA Core Portfolio. Our current gains will be dwarfed by our future gains...that much I am certain of.

Regardless of your risk/reward parameters, the VRA has an investing style for you, provided that you understand one important point; nothing about the VRA investing model is safe or conservative. It was designed at launch in 2003 to give subscribers the opportunity to make 50-100% plus per year by discovering aggressive stocks and options that have the potential to provide us with these kinds of market beating returns. 

Those interested in taking advantage of the VRA should act now, as two new recommendations are perfectly timed to capitalize on this market. Simply go to: vraletter.com and when signing up use promo code: verticalpromo

The deeply discounted price of $495 is a full 88% off of the standard membership rate, and will only be available for a short while.

The rest of 2014 is shaping up to be an incredibly rewarding year for VRA Subscribers. The FED has fully telegraphed their future moves, the charts are acting almost exactly as the VRA system has forecast, and our combination of options trading for short term gains plus growth stocks for market beating longer term gains has us positioned perfectly for additional 100% plus return opportunities.

Until next time,

Kip

For Educational Use Only

The information on this website solely reflects an analysis of or opinion about market trends or conditions by the writer. Under no circumstances should any content or materials on this website be used, interpreted as or deemed to be a recommendation to any investor or category of investors to purchase, sell or hold any security, or an offer or a solicitation of an offer to buy, sell, or issue any interest, securities or instruments of any issuer. Offers can be made only where lawful under applicable law and in compliance with all securities and other laws. Any investment decisions must in all cases be made by the reader or by his or her investment adviser. The writer will not respond to requests for investment advice. Nothing contained on this website is intended as a solicitation for business of any kind or for investment in the writer's business. VRA and its authors may, from time to time, hold positions in securities mentioned in this publication, and may buy or sell shares in the future.

The views expressed on this website are solely those of the writers whose articles works appear on this site and do not necessarily reflect the views of VRA, or of any other person or entity except where expressly indicated.

Wednesday
Feb262014

Janet Yellen is Ben Bernanke on Steroids, with a Lobotomy

Now that Helicopter Ben is gone, in order to figure out exactly how this new FED will continue to manipulate the financial markets, we need to know more about new FED Chair Janet Yellen.

First, her background is as an Ivy league left wing liberal, and for many reading this, you may already know everything that you need to know.

Second, she’s a Keynesian economist, which means that she believes in big government and its ability to grow an economy, rather than the primary beliefs of Austrian economists, which credits the individual, and their abilities, with this power. Another primary distinction between the two schools of thought, and this is a major difference, is that Austrian economists define inflation by the amount of new currency printed into circulation. Keynesian economists define inflation as the increase in the price of goods.

If you’ve followed my work for any amount of time at all, you know my views on the definition and cause of inflation, and it’s quite different from the FED’s and Keynesian economists. As the FED’s 100 year history of failure has clearly proven, the FED’s massive increase in money supply over the last century has caused the US Dollar to fall by 97%...which has forced the population to continue paying more and more for the consumables they MUST purchase each month, as they have skyrocketed in price.

Those that argue these facts look like… well…the absolute morons that they are. How can I make such a bold statement with confidence? After all, in addition to Yellen, the FED has more than 1000 highly paid economists on their payroll, and calling this many so-called experts “morons” could make me the biggest moron of all.

Here’s how I can make my statements about the real definition of inflation with a VERY high level of confidence…a little thing called “the facts”. Right now….today…we have all-time high prices for electricity, beef, and home rentals. Last time I checked, we all use and must pay for electricity…most of us eat beef…and due to continued economic stress, more Americans than ever are renting instead of owning the home they live in. So, while the FED may not include these most important “real world” inflationary statistics in their CPI calculations (it’s a very small component piece now…they changed the way they calculate the CPI over two decades ago), for those of us that are forced to pay for these things, we know all too well that inflation is much closer to 10% than it is to their official CPI of just 2%. So….this is how I can call the FED’s government mouthpieces morons and do it with a straight face.

Back to Bernanke for a moment. Remember his horrible track record with our most recent FED induced financial collapse? If not, please go back and read any of my ten to twenty VRA updates, where I pointed out some of his most infamous quotes and predictions. Or, simply do a quick Google search for them.                                     

Or…how about this. I’ll give you this classic Bernanke video from the VRA way back machine: (Spoiler alert: Bernanke in 2007 – “The slowdown in real estate should have no serious impact on economic growth or on full employment).

http://www.youtube.com/watch?v=HQ79Pt2GNJo

Back to Yellen. Yellen’s team of government lackeys have done their best to paint her as a much better predictor of the future, going so far as to claim that she (unlike Bernanke) actually saw the mounting crisis in 2007 and spoke often of what was coming. Really?? Let’s see what Janet said about her own Nostradamus-like abilities, while she was the Chair of the San Francisco FED.

In 2010, Yellen told the Financial Crisis Inquiry Commission that she “had not explored the San Francisco Fed’s ability to act unilaterally, taking the view that it had to do what Washington said”.

“For my own part,” Yellen said, “I did not see and did not appreciate what the risks were with securitization, the credit ratings agencies, the shadow banking system, the S.I.V.’s …I didn’t see any of that coming until it happened.”

Her interviewers were stunned.

Yellen didn’t see or appreciate the risks with securitization?? You know…those CDO’s, CMO’s and CDS’s that played some of the single largest roles in bankrupting Wall Street and the entire banking industry, and almost the entire planet??

Yellen didn’t see or appreciate the risks with the credit ratings agencies?? The same credit ratings agencies that the entire world knew were PAID to rate the very same financial co’s that they provided ratings for??

The quote is beyond stunning; Yellen “didn’t see any of that coming until it happened”. It would seem impossible to believe if she hadn’t actually spoken these words into existence HERSELF.

And now, THIS is the person that we are entrusting the world’s financial future to?

Forgive me if I’m overly dubious about her abilities. I’m sure she’s a very nice lady, but when push comes to shove, we already know exactly what Yellen’s next move will be. She will PRINT, PRINT, PRINT trillions upon trillions in fiat currency into existence…just like Bernanke before her….and, Greenspan before him…ad nauseam.

The good news…and yes, there is some very good news for those of us that are able to keep an open mind and think as contrarians..is that we can construct our own playbook to profit immensely from increased levels of inflation. This is one of the keys to success for the VRA, and it has been for more than a decade. This mindset enabled us to buy gold and silver back in 2003 at prices 500% lower than today. It also enabled us to lock in 170% gains in options trading over a 3 week period in February, and it is positioning us for more than 1000% gains in as many as 5-7 grand slams that I’ve already identified.

Regardless of what our feckless leaders do, we will be positioned to not only survive, but to thrive!

Until Next Time,

Kip Herriage

 

 

Wednesday
Jan082014

2014 - INFLATION HEADED OUR WAY - TIME FOR 1000% PROFITS

Important update from the Wall Street source that I refer to as "top secret", along with important recommendations for all VRA Subscribers.

As you will see below, top secret is looking for a year filled with massive spikes in inflation...and as any informed consumer knows, it has already started.

As I've been reporting, we should absolutely forget what the governments numbers tell us about inflation. They are bold face lies, and regardless of the reporting from the likes of CNBC (a government mouthpiece), the facts make this reality all too clear. 2013 brought us all time highs in the prices of electricity, beef and home rent rates, along with a slew of additional price hikes in the things that we MUST purchase on a daily basis.

From toll booths, to local municipal services, to the airlines price gauging us on luggage (including all of the new fees for carry on luggage) these "hidden" price hikes that we are forced to pay are robbing us ...the common man.

The governments official inflation statistics will not include the harsh realities that we are forced to deal with in the "real economy", but that's ok...and here's why. This gives us an opportunity to buy inflation hedges NOW and get in while the prices are extremely low...and that's exactly what we are going to do. Once the general public begins getting in, we will already have gains of anywhere from several hundred percent to over one thousand percent. And, we are going to do it (in part) by using options.

Before you read the update that follows, I strongly recommend that all VRA Subscribers open an options account with your brokerage firm. It's a simple process, and one that you should be able to do online, without ever having to complete via the old fashioned way (paper application using the US mail). When opening your options account, the only features you will really need are the ability to buy and sell "call options" and "put options". I will not be recommending straddles or any of the various hedges that some options traders employ. We simply won’t need those.

As an example, if you had purchased “put options” on the VRA short sell recommendations in 2011 to 2012, you would have booked gains of 4000-5000%, instead of the 50-80% gains from simply shorting shares. In fact, many VRA Subscribers used put options, as they were not able to short stocks (in many cases the shares could not be borrowed by their brokerage firm).

The great thing about using options (puts and calls) in this fashion is that your exposure is limited (you can only lose what you invest), and you can get involved for very small dollar amounts. I know of several VRA Subscribers that utilize options, particularly with high priced stocks, and while not for everyone…the risks are greater than buying/shorting common stock…they are particularly useful in special situations. This is exactly the case with the inflation investments that I will be recommending in 2014 and beyond…and I expect inflation to increase dramatically over the next 3 years.

If you have questions about the use of options investing, make sure and take advantage of the education that your brokerage firm provides, online. As you know, I cannot provide individual investment advice, but with the kind of options trading that I will be recommending, it should be simple to use.

As a sneak peek at the kind of options trades we will employ, you already know my favorite interest rate hedge against inflation…TMV (3 x short ETF – long term government bonds). I am studying the call options on TMV as they will provide the opportunity to make several thousand percent gains, assuming that we see the kind of spikes in interest rates that I expect.

I am also expecting a MAJOR move higher in gold and silver (especially from these prices), and the possibilities for multiple thousand percent gains here are endless…from 2014 to at least 2017.

So…get your options accounts opened. I will be pulling the trigger on at least one new recommendation…likely later this month.

In addition, my recent discussion of Bitcoin has sparked quite a bit of interest. A $1000 investment in bitcoins in 2009 would be worth more than $900,000 today, and the industry experts that I follow expect the price to rise from its current $900 today to as much as $100k to $1 million in the next 5-10 years. I am working on a new report now…one that includes the 2-3 most lucrative ways to play the bitcoin mania.

Finally, for those of you that could not attend last nights Vertical Legacy launch hangout, it was a huge success. If you’ve ever had a serious interest in Affiliate Marketing, or learning how to market anything and everything online, check out the video replay at:

http://verticallegacy.com/buildyourlegacy

You can also visit the home page at verticallegacy.com

My prediction is that over the next 2-3 years, Vertical Legacy will become a leading international brand name in the affiliate marketing space…an industry that is still just in its infancy.

Here is top secrets inflation warning….this guy is the best I know when it comes to the issue of money supply and currency inflation. Lots of money to be made here!

Until next time,

Kip

 

SPIKING PRICE INFLATION

!

Michael Aronstein, a hedge fund manager, with $18 billion under
 management, is preparing for a major spike in price inflation. He 
notes that shrimp, beef, chicken – and US lumber are among the areas
 where price spikes are already developing.

 Price strength is now spreading beyond these areas. Cotton futures 
rose sharply in early trading this morning after China, the world’s 
largest producer of the fiber, said it would reduce planting acreage 
by nearly 9% in 2014.

 Arabica beans for delivery in March climbed as high as $1.2260 a pound 
this morning. This now puts coffee into bull-market territory (defined
 as a 20% rise from a recent low).

 Except for outliers like Aronstein the financial community is not
 prepared for a spike in commodities.

 The recent commitment of traders reports showed that hedge funds and 
other speculators continue to remain bearish on the commodity complex.
 In fact, hedge funds have held minimal exposure towards commodity
 prices, never reaching above 400,000 net longs. Current cumulative net
 longs stand just above 185,000 contracts (custom COT aggregate). GET 
THIS,  amazingly, current exposure is about 10% of what it stood at in
 2011 near a major peak, when net long contract level was above 1.36
million. This is a perfect example of how investors have given up on
 the commodity complex, as we enter a third year of under-performance. 

Here's my view on price inflation: It is starting to percolate below
 the surface. This should be no surprise given the spectacular increases 
in money supply in recent years.  Further, the demand to hold cash is
 dwindling, as we move away from the panic period of late 2008. Falling
 demand to hold cash means more bidding for commodities. Given how 
unenthusiastic the investment world is about commodities right now, 
when the major spike up occurs, it will be fast and furious, as many
 will try to pile in.. Continue to trade commodities from the long
side--and continue to short the Treasury bond market, as rising prices
 will put added upward pressure on interest rates.

 

MAJOR INFLATION IS COMING…THANK YOU FED!

Thursday
Sep262013

Wall Street Was Shocked by the Fed’s Decision – The VRA Predicted It

Last Wednesday, the Federal Reserve…that criminal cabal of international bankers and global purveyor of monetary/financial/personal wealth destruction…shocked the so-called experts of Wall Street by continuing their shell game of Quantitative Easing (QE). The FED is moving forward with their unprecedented level of fiat money printing, rather than announcing a “tapering” of their $85 billion/month government debt purchase program. 9 out of 10 economists and stock market experts had predicted that the FED would reduce these purchases by $10-20 billion a month, which would have seen the FED buying ONLY  $70 billion/month in various sovereign debt vehicles. As usual, this overwhelming majority of guru’s was wrong. Dead wrong.

Instead, and as I have predicted and written for more than a year, QE is here to stay…PERIOD. And if we ever see an actual reduction in the FED’s QE, that reduction will be incredibly short-lived…and once renewed, will only ramp-up on steroids…bringing an eventual collapse in the US dollar and a brutal period of stagflation/hyperinflation with it. 

Will the US survive? Will the world survive? And most importantly, will WE survive as individuals when the next wave of dominos begin to fall??

The quick answer is “of course” we will survive…but the brutal reality is that “survival” will come in the form of widely different realities…and whether a country, a company, a state, a municipality or an individual, the world has never seen the kind of storm that’s headed our way. After more than 28 years of following economics and markets I wish for a much different outcome. Unfortunately, this is how I see things playing out. It’s also how every top economic/market expert that I know and trust sees things as well.

To date, the FED has purchased more than $2 trillion of OUR OWN debt (the biggest two-card monte game going), in the hopes of buying enough of our own debt to keep interest rates below what they would have otherwise been in an un-manipulated, free market economy. You know…the same free market economy that was responsible for the US becoming the world’s largest and most powerful economy known to man.

Here’s a most important reality that you will never hear discussed in the MSM; there is no longer any distinction between the US government and the FED. Historically, Central Banks maintained at least some degree of independence from their government, and acted based on their own views about the economy, money supply and interest rates. This is no longer the case. Instead, Obama and Bernanke act hand in hand on everything financial, and they will do anything and everything to pump up the markets and enrich their fellow elites and banking buddies…including printing trillions upon trillions in fiat currency, and issue trillions upon trillions in government debt…in complete disregard of the long term consequences.

Unintended Consequences and Black Swans

Make no mistake about it, the unintended consequences of taking our already bankrupt governments further and further into debt will soon devolve into global financial devastation. Led by Bernanke, the US is pushing the rest of the world into an all-out currency war…caused by today’s obscene level of money printing…and in the near future, governments around the world will battle each other for the funding required to keep their Ponzi schemes intact. There WILL be a black swan event, and much like the Lehman Brothers bankruptcy of September 2008, this future blow-up will also catch the lemmings completely off guard.

What will be the next major Black Swan event? My money continues to be on a financial panic created within the derivatives markets. The size of this STILL 98% unregulated market is gargantuan, with conservative estimates in the $1 quadrillion plus range, along with $10-15 trillion in actual cash at risk globally. In 2003 Warren Buffet came up with the quote that best sums it up; “derivatives are weapons of mass financial destruction”, and all it will take is the overnight collapse of a large financial institution somewhere on the planet…maybe Japan or China…that originated from a large and un-hedged derivatives position in government debt or the currencies markets. Something big enough and politically untenable that the local central bank cannot bail it out or paper it over…at least not without the help of the rest of the worlds central banks.   

Or, maybe the next Black Swan will come in the form of a “mistake”. A mistake in someone’s military (honest or false flag)…one that could easily erupt into WWIII, especially with the existing tensions in the Middle East today. Or an economic mistake, like launching an untested and unproven health care system onto the world’s largest economy. At time of passing, Obamacare was to cost around $900 billion, yet according to the CBO, the costs will have already grown to more than $2 trillion by just the end of 2014. Health care costs make up a full 1/3 of US expenditures, and if the concerns expressed by many turn out to be correct, not only will health care costs skyrocket by an even greater degree than they already are, but the losses in employment nationally could quickly push us “officially” back into negative GDP. 

The mistake that I fear most is of the intellectual variety. There is not a single leading figure in this country today that voices their concerns about the extraordinary actions of our central bank…at least not with Ron Paul out of office. Our leaders have supported and allowed Bernanke’s FED and Central Banks globally to act without ANY level of oversight whatsoever…common sense dictates where this lack of restraint will wind up. The history books will not be kind to the leaders, elected and otherwise, of our time.

The reality is this; with the known economic and geopolitical risks that already surround us, the next surprise could come from any number of places, and it will most likely come from one that is of the unknown variety. This is, after all, the very definition of a black swan event.

The smartest moves that we can make today to avoid these risks are the ones that I write about on a regular basis. Resist the urge to plow money back into the stock market. Instead of trusting that the banks of today will remain open with all of your money tomorrow, diversify into real money…gold and silver. The 12 year bull market in precious metals has been incredible, but in a world of funny money backed by nothing, which will bring skyrocketing interest rates as currency wars pick up speed globally, we will soon see that we are only in the early innings of where gold and silver prices will eventually be priced at.

Start your own business, and control your destiny…financial and emotional. And most importantly, continue to search for the truth about the realities we have learned from history books. Bankrupt governments do not survive…regardless of the amount of money they can print into existence, or the amount of tax increases they can force on their citizenry. Instead, they print, print print…until the party is over and the punch bowl is empty…until no one else will even accept their paper money.

Watch Their Actions...NOT Their Words

Regardless of the promises and assurances we hear from the Bernanke’s and pseudo intellectuals of our day, deep down they know that the one thing they can never do is “come clean”…they cannot tell people the truth. This is why we watch their actions rather than their words. This is why the talk of reducing QE is just that…talk. Trust me when I tell you that there is one reason and one reason only that the FED decided against “tapering” QE. Bernanke and Obama’s minions know that QE is here to stay because the credit card bills wont stop coming, and there’s no other way to keep the shell game from imploding. That’s why there will soon come a day when the stock markets of the world drop by 10% plus on the same day that the FED announces an increase in QE. This, my friends, is when you will absolutely know that the medicine has ceased to work…and that the patient is near death.

Today, “don’t fight the tape and don’t fight the FED” continues to win the day…but when the next phase of economic turmoil kicks in, those that trust the old paradigm will be incredibly unprepared for the future we are being left with. The only question in my mind is timing…and that’s the only question.

Until next time,

Kip