The Plot Thickens...Part IV

As the Saga continues, a theme seems to emerge. Oh what the heck, I'll run with it. This theme is using classic parlor games as cliched metaphor to describe the plot twists in an unfolding story of international intrigue. An epic tale about a regular guy in seeking amusement, sets out to try his skill in an obscure, nearly forgotten, yet historically significant part of the world. Naively wandering, by chance, into an extraordinary situation from which he can not turn back. Suddenly, he must find inner strength and formulate strategy to succeed against formidable odds....Finding time among the needs of three kids, executing moves between diaper changes and after school activities.

Could someone please explain to me exactly what the hell is going on? When did all the rules change? We are not merely living in strange times, we've slipped into whole other dimension where everything is skewed by 18o degrees, then thrown into a blender set for frappe. World economies are either on the brink of recession or hip deep in one, but due to an astonishing level of denial, nobody seems willing to admit it. The private central bank (a.k.a. Federal Reserve) is printing paper money (or electronically creating it) by the billions in order to stave off the inevitable implosion. The bail out of financial institutions traditionally thought of as pillars, these days looking more like...dominoes, ( ha!) is now being ceremoniously passed on to the common tax payer, and played off as a stroke of genius. The mortgage industry is in total collapse, as Freddie and Fannie are the latest pieces to tumble.

How many more banks will fold is any one's guess. How much can the fiat currencies of the world be diluted, before it starts looking like 1930's Germany?

(hint: It's already looking like it, when you consider the consolidation of power in the executive branch)

The "cold war" is making a big comeback, but the temperature this time may be several degrees warmer. As tensions between the US and Russia take front and center, strategic positions are assumed, game faces are shown. Meanwhile the unfinished stalemates in Iraq, Afghanistan and possibly Iran get pushed out of sight and out of mind. (A Chess reference would fit appropriately here, but I've already used that one on my last post)

We're in the final stretch of a presidential election, yet despite all the dire issues at hand, the corporate controlled media seems to be preoccupied with the non-issue of lipstick wearing pigs. I've been concerned about the unravelling of our society for some time, but I'm now convinced we're on a slippery surface and rapidly sliding toward an abyss, or maybe we're teetering on the edge, I'm not sure which.

In order to protect my family's future, and pocket what was left of my cash. I've taken a cue from the big players, and put my savings into Panama land as a safe bet against the declining securities market. I figured it was calculated risk and was going to take some balls. I didn't plan to buy land with huge gold deposits under the surface. However, when the prospect presented itself, I figured it could be the ultimate hedge against the swirling economic shit storm gathering on the horizon.

Traditionally, times of uncertainty like impending hyper-inflation, bank failures, world wars and general societal collapse tend to raise the price of gold. The fundamental measure of wealth since the dawn of civilization, gold traditionally attracts buyers looking for security. For a brief period gold was acting accordingly. By all logic and reason, gold should be somewhere in the upper atmosphere on it's way toward the outer solar system right about now. However, we do not live in a world of logic and reason any longer. Now considered expendable, logic and reason were thrown under the bus a while ago, to make room for more "fiat". We now live in world of pigs and lipstick (a.k.a. total denial). I was determined to hold on to some resemblance of the world I formerly knew. What savings I hadn't invested in Panama real estate, I invested in precious metals...with leverage. I was certain, bad economic forecasts would buoy the metals, and I'd emerge from the pending wreckage intact.

Even as the metals dropped from their all time

peak six months ago, I was certain new trajectories would be hitting their targets at any moment. Boy, did I miss the mark. I am now facing my second margin call in a month, and the sharp, piercing pain inflicted on my investment portfolio is really smarting. It has been a hard lesson in illogical economics, and really burst my ego. I'm still trying to figure out how a traditional store of wealth, such as precious metals drops like a rock, at a moment, by historical standards, it should be performing.

These guys at the Federal Reserve and the other central banks around the world must benefit from suppressed commodities prices, which stifle the flow of money toward tangible wealth, such as gold. Therefore, propping up their paper fiat currencies, otherwise left to a free market would likely collapse.

Hmmm...How do they do it? It's as if this is just a big game to the central bankers. They create the money through making loans, then collect interest on the loans. Since more money is owed to the bank than has been put into circulation, the money owed to the bank can never be paid off. This scheme works for a while, but eventually an ever increasing money supply, without a basis on real assets, becomes diluted in value. They know this, so they use their position as creators of currency to buy up all the tangible assets, such as factories, toll roads, water rights, natural resources, governments, etc. etc. Meanwhile everyone else is chasing their little pieces of paper that continues to lose value. Eventually, the central banks have the entire globe bouncing around at dizzying speed, banging up and down with bright lights and distracting noise, flipping all over the place, until no one really knows the score, and we hit Tilt. It's as if the game is completely rigged.

Continue to Conclusion