Saturday, January 28, 2012



No mirages, no chimeras, no hallucinations. This is the here and now most dangerous situation you face. As Napoleon is attributed to have uttered: (para) “The most dangerous time is AFTER the War has been won.” Now do we not feel elated that the FED has stated its avowed intent to hold the Zero Interest Rate Policy ( ZIRP )? Are we not feed up the the “GREECE Exhaustion Syndrome” - Athens is not in flames, and the rioters are home, and quiet. OK, we are safe. OR Are we ?

I would suggest, that as Napoleon observed, the greatest danger looks to be when we think we are clear of impediments and obstacles, is the most dangerous time. What are the dangers ? Bears ? Lions ? Tigers ? No, ladies and gentlemen, even more dangerous than the Financial Black Plague of the early 21st Century, are the JACKALS. Yes the Jackals. Owners of the Derivatives. How about a preview of the Ultimate Derivative Disaster of 2011?
To show you this I only need refer you to any customer of MF GLOBAL, to show you what even a pinprick of this weapon can do. Weapons of Mass Financial Destruction. Why ?
How ? Stealthily, when the US Congress changed the bankruptcy laws, there included a change allowing the Creditor to go directly to the Collateral of the debtor held in their custody regardless of the chain of title, somewhat the reverse of the “Slice & Dice” Mortgage Stew created in MERS. So now, my funds, segregated or otherwise held in the custody of a derivative issuing entity, can be directly seized as collateral – let me repeat “ DIRECTLY SEIZED AS COLLATERAL”. That means they got it, you don't, and you got NO RECOURSE !

Does that nail it down for you ? Whatever NOT in your physical possession can be seized as collateral if the entity you have it upon deposit with, has issued a derivative of that nature. You lose. Maybe you will take legal action. Maybe you won't. It will be a long time before its resolved. I doubt waiting will help much, as you will want, and may need that money NOW.

Do NOT depend upon verbal assurances unless you get hostages, and then only ones that will be reclaimed. Find organizations that do NOT endanger your assets, or keep them in places that do not run this risk.

I have a list of a “Bakers Dozen” of really hot, Hi-Energy Relative Strength stocks I could give you. What good would it do, to double your money in this next mean-time only to have it disappear in a MF GLOBAL like fiasco ?

Sure if you subscribe we can rock 'n roll throughout all the ups and downs, but will you watch your money go up in “smoke”? Best be safe in some physical item, if you can't find a way to keep your “entrusted” money safe, then don't entrust it to anyone but yourself.

Radical idea, heh? Trust yourself and no one else until proved otherwise? I think its a good idea.