Hows this for interesting : US court close to deciding Obama is not an American citizen

You know, there are conspiracies, and then there are conspiracies. I would like to see how TPTB handle this one : A court in Georgia seems to be pretty close to deciding that Barack Obama is NOT a “natural born citizen” of the United States, and as such he has no right to the Presidents Office.  A very large mess can be made by refusing to put him on the nallot in Georgia for the 2012 elections.

How would you keep such a thing quiet, I wonder? Obviously, the current response from TPTB is silence and nothing else, but we should remember that this is all being done in an official Georgia court room! From a few days ago, I found the below newspaper clippings.

Washington Post

Miami Herald

So far, no one outside the “birther” community seems to have picked up on the fact that due to both Mr. Obama and his attorney not showing up, the Georgia court is damn close to ruling that he is in fact not the President of the United States. For a nice roll-up of the entire court proceedings, go here.

I am going to assume that this one is going to disappear down the memory hole pretty soon. The question is, how much of Georgia do they have to take down with it?

Dr Boli’s Fitness Tips

For your daily cheer-me-upper, go here.

Social co-operation in the market economy

Ben Bernanke : We are never raising interest rates

I stay away from the markets for five hours, and what do I find? The new policy from the Federal Reserve is ZIRP-4-EVER. If they keep pushing the date they will raise rates 2 years ahead each time they have to speak on the economy, this means one of two things :

• They are lying
• Hyperinflation

I suspect both. Nevermind that though, my portfolio is happy as this is just what its suited for. Some charts for you to ponder :

This is not the currency debasement you are looking for

I can also proudly announce that I did NOT short the now levitating fruit vendor, because I decided to wait after they reported. Good call, the shorting of apples will have to wait untils this renewed stock-boom is over.

Also, remember 4 days ago when I left a cryptic message telling you to follow a link and wait for another post? Well, check that link again. I suspected it at the time, but now think we have confirmation : A textbook pump-n-dump operation. I have learned to spot these, the pattern is pretty darn similar. If you see a HUUUGE  ”Doji” candlestick (explanation) on giant volume after many days of violent upwards action, this means that someone took the opportunity to dump a giant amount of shares into the willing hands of the last idiots. For every transaction there is a buyer and a seller. When that many shares trade hands, and the price goes first UP UP UP and then DOWN DOWN DOWN during the same day, it means whoever wanted to benefit from the pump-n-dump has likely done the dumping. Theoretically this could have been an uninitiated speculative frenzy. T-h-e-o-r-e-t-i-c-a-l-l-y, meaning highly unlikely.

The Big III

Long-time readers are no doubt familiar with my call for catastrophe in Britain, Japan and the US. Possibly, China should be added to that list, but lets stick with the original three for now.

Japan is showing a trade deficit for the first time since 1980.  Feel free to short the yen at this point, as it is going to become a one-way bet.

Britain has the biggest debt load of, well, anyone. And is relying on its financial sector. And has a government larger than 50% of GDP. And is inflating the living crap out of its currency. And haven’t even begun with real austerity measures.

The US is looking better. But IT IS NOT. You see, while you were sleeping, Crazy Bennie cranked out a few more zillion dollars, and the US government spent a roughly equal amount on crap. The coming “boom” will not be any boom for the dying middle-class, it will only be price inflation. Sure, GDP will probably rocket. And, with a lag, prices will finally do what anyone who knows history has said they will do. Rise. Relentlessly.

And thanks to the ridiculous foreign policy of the US, there is a war starting on the dollar.  A war that will be won by all other currencies, but most significantly gold.

The crappiest century, #20

The 20th century really was a crappy century. Enormously crappy. There are a few high points (like the tearing down of the Berlin Wall), but overall, the State and its minions did their best to end civilization.

HT@MontyPelerin

Rand Paul fights the power

Lead by example.  If just a few more people who had the publics eye (where are all the famous people? oh right, they get a free pass….) refused the pat-downs, you would have a total pat-down riot, as everyone realized that if they all just refused, the TSA would be thrown in the dumpster faster than you can say “defunded”.

As promised, a trading page

I just created a page for my trading activities this year. Since I cheated and have already entered a couple of trades, those will be retrospective. My plan is to try and publish all trades I make at the end of the day, and explain why I have done them.

The page is here. The next activity will “probably” be entering a short position in Apple (I babbled about it a bit 6 months ago), sometime the coming week. Explanation will come if I enter the trade. The main technical reason to short Apple and not just a stock index (like the Nasdaq) is that it’s stopped outperforming, which I think is a sign of weakness. The “hedge fund hotel” may have lost some of its glamour, and unless they keep racking up blockbuster products, they may be going down. The expectations at this price level are enormous. We’ll see.

Apple VS Nasdaq

Oh, and remember my silver dreaming recently?

Silver dreaming

We were off to a good start this Friday. I’ll wait a few weeks to see if we are going to see real power in this market, and then I might enter a trade. Three things are fundamental drivers :

1. Demand for physical coins and bullion remain record-breaking strong
2. Eric Sprott announced an add-on offering to his PSLV fund
3. The “commercials” (JPM&Co) have gone from an enormous short position, to a smallish short position, and are soon net long. Assuming they had an incentive to smack the silver price down before, the opposite may soon be the case.

Thats a nice start

Monthly scaremongering

Yes, it’s that time again. Let’s take a peek at things in Argentina again, just to get a feeling for what the endpoint of monetary debasement is. For various reasons, I believe that Northern Europe will manage to stay out of the worst-case scenarios (though never say never), but that’s probably because I’m biased. In reality, it can happen anywhere as long as the political system gets corrupted enough.

So, go read another story about how you stay safe in Argentina.

Market funnies

I’m going to tell you something funny, but not now.

Follow this link, and wait for another post.