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Friday, July 22, 2011

One Born Every Minute

Yesterday it was Risk ON! Europe fashioned a multi billion dollar bailout for Greece, so the dow rallied 150 and the safe haven of gold dropped 15.

That was the absurd story being peddled everywhere from Fox to CNBC to even Bloomberg: More printed money fixed Too Much Printed Money.

And suckers everywhere bought it. Except the traders at the 5 largest banks that own over 60 percent of the GDP of this country.

They don't have to buy it. They create it.

They trade in such enormous volume, they have such fantastic control of both the flow of money and the flow of information that they can create any short term move in any market on any day, and supply any reason for it.

And everyone buys it. Because right now the financial markets are Sucker Central.

But if that were so wouldn't they know they'll eventually drive everyone out of the market, and they'll ruin their own cash cow?

Sure, but they're not supermen. Or super smart. They're just as myopic as everyone else. They just happen to control mechanisms of money creation.

You'd do the same in their position. You know you would.

But unless you're in their position, you'll eventually lose all you have to them.

You'll lose everything by trading against the house. The house controls the creation of money, so that they can issue themselves unlimited amounts of money thus diluting all your cash. And they control the markets with unlimited volume and high frequency trading thus confiscating all your gambling (what you call investing) money.

The only thing they can't control is Hard Assets. They can drive up the dollar price by creating more dollars, but they can't devalue them by selling them short. Except temporarily on the pretend (futures) exchanges. But they can't get their hands on the real assets to sell them short.

Unless you build a portfolio of hard assets that is stable enough to wait them out, you'll eventually lose it all. That means bullion - gold, some silver. And High End commodities. Things that have already stood the test of time and retained their value for centuries.

That's it. There's still time. The 5 banks that own 60 percent of everything will keep the game going for years, in all likelihood, During this time they will control the direction of everything - except bullion and high end commodities.

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