Friday, March 27, 2015
The Crash and a Universe of Messiahs
Except for Larry Kudlow and his ilk, there are precious few who do not recognize that there is something seriously amiss right now in the global economy. It is clear to most everyone that indefinite financial repression in the form of Zero Interest Rate Policies and Endless Easing means easy cash for Banks and Coroporations closest to the Banks, and suffering for everyone else, is nearing the breaking point.
There is no exit Strategy. There is no Growth. Just more and more debt created by Governments, donated to Banks, and sold for profit to everyone else.
So: WHAT TO DO TO WEATHER THE COMING STORM?
Enter an army of Messiahs all hoping to cash in on your bewilderment.
Most popular right now is Martin Armstrong who has some very clever and interesting things to say. He is dispensing this advice right now partially for free like all Messiahs, A) To encourage you to pay for his Special Secret Advice, B) Because he is unable to trade on it himself and make any money for himself.
He will tell you it's out of the goodness of his heart, like all Messiahs. The truth is when he did trade he lost billions, lied to investors, was convicted of securities fraud, then went to jail, not to ":Protect his Source Code" But to protect his store of GOLD that he refused to turn over in compensation to his victims.
That doesn't mean, like many MESSIAHS, that he doesn't have some very interesting observations about our current plight. He does. Read them, and take whatever truth out of them you can.
Because anything that increases your understanding of our current plight is a good thing.
Read all the Messiahs. Peter Schiff and Eric Sprott and Marc Faber will tell you to buy gold. They of course are selling gold. It doesn't mean that they don't also have interesting things to say. They do.
Jim Rogers will tell you to load up on commodities. He sells commodities. He also has interesting things to say. That doesn't mean he doesn't believe in commodities. He probably does, because he got into them because he realized how to profit from them. He's also enormously bright. So there's going to be truth in what he says. Some truth. Some self interest.
You always have to sort out which is which.
In all, just recognize nobody's giving any information away, unless they feel it benefits them personally. This, in part, is why our system is about to collapse.
The real traders like Soros and Kyle Bass will never tell you what they're doing, until they've already cleaned up from it. You can try to find out what they are doing though, and try to figure out why. But they're not dispensing advice, because they know how to trade.
All I'm saying is read it all and spend a lot of time making up your own mind. Because unless you have the conviction of understanding a trade you came to on your own, you'll never have the conviction to sustain it when it goes against you, or the understand when to get out of it. if conditions change.
Only those who think for themselves will be saved. Those who believe in a Messiah will get hosed.