THE DOT - if this turns orange or red be alert

Tuesday, July 1, 2008

titanic heads for the iceberg

About two years ago, a friend and I were discussing the scenarios, which are happening right now, whereby this is just the warming up period. As history repeats itself, we will see a huge crash in the coming years that will wipe out most of the banks and institutional money. The magnitude will be pretty much that of the Nikkei from 37000 to 8000 or 1929. Only this time, due to globalization, the effect will be more severe in its economic consequences. The disaster will be derived from the $45 to $340 tril. derivative market. You might argue that every loosing trade has a winner on the other end, but they might turn out to be loosing as well, since their counterpart risk will reach a point of no return, so they never will be able to gather their winnings.

Just let that scenario, which seemed to be unthinkable develop its consequences - total collapse - no central bank would have any control or chance to stop this. Citibank is close to such a situation. The toxic part of their balance sheet could trigger that event or any exogenic shock to the system like an attack on Iran.

Let's put that into the perspective of the new world order, which is not only part of conspiracy theories, but also the real longings of some power groups on this planet. One of which are the Bilderberger, who are in the end just a deliberate disinformation trick but with a lot of truth in it. The New World Order, whose symbols are hidden in the US Dollar bills (what the heck has a pyramid to do with America?) Why does the Old Testament say theirs is a chosen group of people (the Jewish) who are above the others? Why is Obama, on his first visit, dropping by at Israel? Most central banks were founded and controlled by the Rothschild's and very likely still are. What really happened on 9/11 (I doubt this mastermind Arab theory)? 9/11 was the best excuse to switch off the last democratic barriers in order to control the people again under the guise of their own security. Watch movies like "Vendetta", "Conspiracy Theory", "Matrix" or even "Star Wars" and you find a lot of possibilities of what is going on. The interesting thing is we get a lot of hints from Hollywood these days in shows like "24" or "Prison Break" - the dark force tries to take over and they had quite some progress (pretty good preparation so far). One part of the New World Order is to destroy the old one - a financial collapse is a mandatory step. The second is to create the utmost distrust of people in the democratic process (a well done goal, which we have almost reached) and finally offer the remedy. Hitler tried that but from a very narrow angle and did not succeed, but in the end he was only a puppet played by stronger forces (he had strong support from US sources, since the French had, at the end of WWI, more gold than the US). But that's history. Let's concentrate on the present time. The positive sticker of the New World Order is to create a central control of money flows. Have you recognized that suddenly the famous Swiss banking principle is systematically destroyed? Suddenly secret services in Europe have access to the list of all the accounts and names of BIL and UBS. That's a strange "coincidence" and the idea is to create a global taxation system controlled by a global money authority. In the end, that is all you need. Which puppet gets to be President in which country is a random event comparatively. Whatever party they come from, they all seem to work for the same 'boss' - no one stands out with his attitude. People cheered up to the first female German Chancellor (Angela Merkel), she is a total non-event. A monkey could have achieved the same things by pushing on a random basis on black and white keys. They put up weak kings demoracy leaders) to undermine the braveness of a democracy by selling its people with the same recipe they use to sell soap. The evil thing is that they can do so because people are lazy and comfortable, just looking for their own way to benefit from the situation. That makes people easy to manipulate with their greed and fear. The media is under the control of the 'dark forces' and in these TV series like "24" and "Prison Break", they get a benchmark moral education (brain washing) which has lowered moral barriers over the decades close to zero. At the same time, we are experiencing a boom in superhero movies. The world is longing for a superhero who can save the world from the evil forces. Everybody needs to pull out his superhero within when it might work out

Coming back to the ongoing events, the financial system is broke and held alive by the central banks to buy time. The crash is inevitable, only the timing might differ a bit. Right now, we are in a silent crash. Imagine the best performing is still America with -20%, although, in strong currency terms, that's even worse but the media comments that it is a mediocre pull back and the Bush administration is in deep denial. They are so freaking unbelievably persistent in repeating the same lies and false statistics. We have negative interest rates in all major economic areas in the world (US, Europe, Japan and China), even with the fake inflation numbers. This, by all means, is major wealth destruction. There seems to be no place to hide other than in hard commodities (gold, diamonds, etc.). It's pretty frustrating to think it through and that you cannot rely on this brainwashed salesforce of brokers or insurance salespeople. They are after your money, not working for you. It depends very much on your personal situation and in hard times you've got to think and act for yourself not on institutions. Nevertheless, hard decisions are mandatory since a big iceberg looms ahead and no superheroes in sight other than the one we see sometimes in a mirror.

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I am a professional independent trader