EYE-BALL Guru on – It is all just so PREDICTABLE …

December 1, 2011
It is all just so PREDICTABLE …
News this morning that the major Central Banks intervened overnight to pump liquidity into the markets – was as predictable and transparent as the protection Rupert Murdoch receives from ‘friends in high places’.

What did it achieve?  The markets sighed relief and decided to go on a buying spree … is that what is needed ?

It was like giving the BANKS another free ‘get out of jail’ card.  Banks are still holding the World to ransom – the ‘we are to big to fail’ catch-cry has long passed its use by date.

The decisions Leaders are faced with are too great – worse than deciding to go to war.  How do they try to save our known way of life when it is obvious to everybody who understands that to do so will only quicken the demise.  This is a crisis that began 40 years ago – it was only seen as a crisis 3 odd years ago – yet the erosion began when the ‘gold standard’ was abolished and printing paper money to manage economies became the order of the day.   It is all now about trying to hold back the collateral damage from the guaranteed dam-burst.

Those closest to the fire – the operatives within the financial markets and the systems they track, the creditable economist’s, and the Bank CEO’s who know their balance sheet meltdown is already passed the point of no return – are all awaiting the ‘knock’ – the outcome is already determined and the wait now is how do Leaders deliver us the message that the World is on a path to an irreversible financial meltdown in which they will all have to pay a price.

News yesterday had Moody’s downgrade the credit rating of 15 of the Worlds largest Banks – this was set to create another round of weakness and would have been a reason the Central Banks triggered their intervention.

Imagine that the Central Banks have their fingers poked into dike holes and are the only thing holding back a flooding dam-burst.  There are more holes appearing and the number of fingers to plug the holes is exhausted – all that is left is the use of new printed and soon to become worthless money to paste over those ever-increasing dam leaks.

When the flood comes … and it will come – to get a clearer picture just cast you mind back to the images from the Japanese Tsunami earlier this year and how man was helpless to prevent what mother nature delivered.  This is the scenario the World is facing and the headless chook’s running around the corridors within the bunkers of Central Banks and Government Leaders are running out of preventive options.

Now think of the other side of the equation – the mindless investor trying to find an avenue to protect the capital value of their wealth.  Where do you put your money to protect it from disappearing and devaluing?

The response to the Central Banks intervention was like a rescue task force appearing on a far off hill line – the people cheered and believed they were saved – next week the news will be that the rescue plan failed as the reality that not all would be saved dawned … panic ensured and it became a Wal-Mart sale mallee for survival.

The joy at the DOW Jones jumping almost 500 points overnight – some 4+% and other major indices doing likewise – is the relief rally and will last through the weekend.  In the light of day all that has happened is that the debt burden imposed on taxpayers grew last night. The rescue plan will fail – economics will prevail – the weight of debt and its interest cost burden carried by Governments has crippled their ability to spend in order to create growth.  For Politicians to sugar coat the future is as criminal an act as the Weapons of Mass destruction lie.

Two million UK public servants – (mainly Teachers) went on strike yesterday to protest the UK austerity measures imposed on them – i.e. raising the retirement age and altering the pension scheme that lessens benefits paid.  The protesters claim those responsible for the GFC crisis and the reasons for the austerity measures have not paid the price for their freed or mistakes – yet the protesters claim they equality of ‘belt tightening’ is not there.

The Media are out there delivering ice-cream and lollies about the rally in equity markets – but those who understand are selling – don’t be the ‘bellhop’ – there is no avoidance to what is coming.

In Australia – Politicians have been awarded a quantum pay increases in lieu of giving up their ‘Overseas Study Tours’ and ‘Gold Card Airline travel’ perks.  You tell me that their hog-snouts are not fully extended into the offal trough where the proceeds of greed and self-serving opportunities are fed into.

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  1. david the pragmatist
    December 1, 2011 at 4:01 pm

    A very helpful comment? sorry what was the point again.
    I dont disagree with your rhetoric but did you not call the market as a massive sell on Friday night and I suggested that they will probably buy this in anticipation of central bank action?
    I just dont understand your reaction and the way you knee jerk.

    We will have more money printing to avoid the bank freeze and ultimately a massive outbreak in inflation. The timing for the meltdown is maybe more predictable than when you suggested it 20 years ago ( dont worry you will get it right someday). BUT your ability to pick it and the actions you may suggest are hardly helpful in the process.
    I suggest you go back to telling blonde jokes and leave the “doomesdaying” to someone with more insight than you currently possess.
    In the interim I am not sure how long your funeral parlours are, but the bank is asking for interest payments, as there is not enough dead bodies to service them. What will you do, introduce mandatory suicide and compulsory euthansia to save the world. Good plan?

    I know get Cowboy to help, he’s very bright! Doh!

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