Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Ravencoin RVN About to EXPLODE to NEW HIGHS! Last Chance to Buy Before it goes to the MOON! - 21st Oct 21
Stock Market Animal Spirits Returning - 21st Oct 21
Inflation Advances, and So Does Gold — Except That It Doesn’t - 21st Oct 21
Why A.I. Is About To Trigger The Next Great Medical Breakthrough - 21st Oct 21
Gold Price Slowly Going Nowhere - 20th Oct 21
Shocking Numbers Show Government Crowding Out Real Economy - 20th Oct 21
Crude Oil Is in the Fast Lane, But Where Is It Going? - 20th Oct 21
3 Tech Stocks That Could Change The World - 20th Oct 21
Best AI Tech Stocks ETF and Investment Trusts - 19th Oct 21
Gold Mining Stocks: Will Investors Dump the Laggards? - 19th Oct 21
The Most Exciting Medical Breakthrough Of The Decade? - 19th Oct 21
Prices Rising as New Dangers Point to Hard Assets - 19th Oct 21
It’s not just Copper; GYX indicated cyclical the whole time - 19th Oct 21
Chinese Tech Stocks CCP Paranoia, VIES - Variable Interest Entities - 19th Oct 21
Inflation Peaked Again, Right? - 19th Oct 21
Gold Stocks Bouncing Hard - 19th Oct 21
Stock Market New Intermediate Bottom Forming? - 19th Oct 21
Beware, Gold Bulls — That’s the Beginning of the End - 18th Oct 21
Gold Price Flag Suggests A Big Rally May Start Soon - 18th Oct 21
Inflation Or Deflation – End Result Is Still Depression - 18th Oct 21
A.I. Breakthrough Could Disrupt the $11 Trillion Medical Sector - 18th Oct 21
US Economy and Stock Market Addicted to Deficit Spending - 17th Oct 21
The Gold Price And Inflation - 17th Oct 21
Went Long the Crude Oil? Beware of the Headwinds Ahead… - 17th Oct 21
Watch These Next-gen Cloud Computing Stocks - 17th Oct 21
Overclockers UK Custom Built PC 1 YEAR Use Review Verdict - Does it Still Work? - 16th Oct 21
Altonville Mine Tours Maze at Alton Towers Scarefest 2021 - 16th Oct 21
How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
The Only way to Crush Inflation (not stocks) - 14th Oct 21
Why "Losses Are the Norm" in the Stock Market - 14th Oct 21
Sub Species Castle Maze at Alton Towers Scarefest 2021 - 14th Oct 21
Which Wallet is Best for Storing NFTs? - 14th Oct 21
Ailing UK Pound Has Global Effects - 14th Oct 21
How to Get 6 Years Life Out of Your Overclocked PC System, Optimum GPU, CPU and MB Performance - 13th Oct 21
The Demand Shock of 2022 - 12th Oct 21
4 Reasons Why NFTs Could Be The Future - 12th Oct 21
Crimex Silver: Murder Most Foul - 12th Oct 21
Bitcoin Rockets In Preparation For Liftoff To $100,000 - 12th Oct 21
INTEL Tech Stock to the MOON! INTC 2000 vs 2021 Market Bubble WARNING - 11th Oct 21
AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
Stock Market Wall of Worry Meets NFPs - 11th Oct 21
Stock Market Intermediate Correction Continues - 11th Oct 21
China / US Stock Markets Divergence - 10th Oct 21
Can US Save Taiwan From China? Taiwan Strait Naval Battle - PLA vs 7th Fleet War Game Simulation - 10th Oct 21
Gold Price Outlook: The Inflation Chasm Between Europe and the US - 10th Oct 21
US Real Estate ETFs React To Rising Housing Market Mortgage Interest Rates - 10th Oct 21
US China War over Taiwan Simulation 2021, Invasion Forecast - Who Will Win? - 9th Oct 21
When Will the Fed Taper? - 9th Oct 21
Dancing with Ghouls and Ghosts at Alton Towers Scarefest 2021 - 9th Oct 21
Stock Market FOMO Going into Crash Season - 8th Oct 21
Scan Computers - Custom Build PC 6 Months Later, Reliability, Issues, Quality of Tech Support Review - 8th Oct 21
Gold and Silver: Your Financial Main Battle Tanks - 8th Oct 21
How to handle the “Twin Crises” Evergrande and Debt Ceiling Threatening Stocks - 8th Oct 21
Why a Peak in US Home Prices May Be Approaching - 8th Oct 21
Alton Towers Scarefest is BACK! Post Pandemic Frights Begin, What it's Like to Enter Scarefest 2021 - 8th Oct 21
AJ Bell vs II Interactive Investor - Which Platform is Best for Buying US FAANG Stocks UK Investing - 7th Oct 21
Gold: Evergrande Investors' Savior - 7th Oct 21
Here's What Really Sets Interest Rates (Not Central Banks) - 7th Oct 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

America has Become an Asterisk, Which means it Only Exists Conditionally

Stock-Markets / Financial Markets 2010 Oct 23, 2010 - 06:01 AM GMT

By: Barry_M_Ferguson

Stock-Markets

Best Financial Markets Analysis ArticleThe conditions are explained by asterisks. For instance, big banks earn a lot of money as long as minor details like expenses, losses, and derivative valuations are ignored. The governments car company, GM, will soon release an 'electric' car that gets 280 miles per gallon equivalent. However, it is not really 'electric' as it has a small gasoline motor and at highway speed, the motor kicks in. In truth, it will return mileage equivalent to a Toyota Prius. Only, the US taxpayer will have to chip in about $7k per car sold to even make it seem competitive. It is ‘electric’ with an asterisk.


What about the stock casino? Well, as long as the Fed is hard at work every day manipulating the indices higher with POMO or TOMO or PPT activity, the casino appears to the dopes of the world to be a 'market'. Without the Fed, it's a yard sale and everything must go! For the week ending 10/22/2010, Monday was a POMO day. Tuesday was not. Wednesday was. Thursday was not. Friday was. You can now guess the up days. Up days for the indices should now be viewed like Barry Bonds’ home run record - they should have an asterisk beside them. Check the charts. Charts don't lie. Governments do.

The US government was overthrown in the coup of '07 by the Federal Reserve. I’m not new to this party. You can verify this with other articles from my blog at www.bmfinvest.blogspot.com. The Fed is now cementing its power of control with the tool of debt. It's not like they are acting in a clandestine manner. It's all in black and white. The Fed's own balance sheet lists a sum of just over a couple of trillion dollars for total assets. A trillion of those assets are MBS (Mortgage Backed Securities) paper  that they are using to steal $2 trillion in Treasuries from intellectual Treasury caretakers like Bernie Frank, Nancy the nitwit Pelosi, and the rest of the feckless Congress.

That MBS paper has an asterisk beside it. The corresponding footnote says that the trillion-plus MBS paper is all backed and guaranteed by Fannie and Freddie. I can't imagine a reader of this blog not knowing this but Fannie and Freddie is you and me - the taxpayers. The Fed has no risk in the bad mortgage paper. None. You can read my article entitled 'The Fed's Furtive Filching' but the outcome is sealed. The banks had bad mortgage paper in 2008. They lost all of their money in derivatives trading based on the bad mortgage paper. They were, and still are, bankrupt. Yes, I know. They all report good profits.

Go read the asterisks. So the Fed engineered the greatest theft in history. They got Congress to sign over a few trillion in Treasury notes so the Fed could issue the banks a dollar for dollar exchange of Fed cash for bad mortgage paper. At that point, the Fed had bad paper, the banks had Treasury notes, and the taxpayer had more debt. The Fed is now buying Treasuries from banks to complete the heist so they can replace the bad paper with good Treasury notes. Very soon, the Fed will have converted a trillion in bad mortgage paper into a trillion in Treasury notes, the banks will have converted a trillion in bad paper into Federal Reserve Notes, and the taxpayer will have converted stupidity into an extra trillion in debt. Watch the asterisks. They are important. And some people still don’t think the Fed is a ‘for profit private bank’. Who else paid out 6% in dividends to shareholders and increased their balance sheet by a few trillion this year?

Here is another one. On Tuesday of this week, the Federal Department of Pathological Lying said housing starts increased .3%. Not that anyone pays government data any attention anymore but I do get a kick out of the footnoted asterisk. It basically says, 

'The government cautions that its monthly housing data are volatile and subject to large sampling and other statistical errors. In most months, the government can’t be sure whether starts increased or decreased. In September, for instance, the standard error for starts was plus or minus 10.3%. Large revisions are common.'

In other words, housing starts could have been up 10% or down 10% or anything in between. Who knows? Anyway, the market needed a positive number so it got one. Well, it came with an asterisk!

Meanwhile, every country continues to fight currency appreciation versus the terminally cancerous US dollar. China raised interest rates slightly to try and dampen economic growth thus lessening the yuan appreciation. Brazil imposed higher foreign taxes to bond purchasers outside of Brazil as did Thailand and other sovereign nations in a effort to dampen their respective currencies appreciation versus the US dollar. It seems that there is a flight from US dollars as the current US administration continues to scare the bejeepers out of the rest of the world with a continued maniacal economic policy of borrowing, lying, and surrendering to the central bank. Even the US debt comes with an asterisk. The debt is not very large compared to GDP unless of course you have the audacity to also count off-balance sheet expenses and unfunded obligations into the tens-of-trillions.

Let me leave you with a chart of the SPX for this past week. The chart is the last five days showing 10-minute bar intraday trading. As you can clearly see, the POMO days were positive. In case you are interested, next week looks promising with POMO days on Tuesday and Thursday. Also, the Treasury will be issuing over $100 billion in new debt so that should drive the greenback down. Combined with POMO intervention and manipulation, the dissolving dollar is likely to push the indices higher. Just don’t forget to watch your asterisks. These are the riskiest indices in history. Why? They are all based on an asterisk. Yippee!

SPX - 10/18//10 - 10/22/10 intraday 10-min bars.
Chart courtesy StockCharts.com

Barry M. Ferguson, RFC
President, BMF Investments, Inc.
Primary Tel: 704.563.2960
Other Tel: 866.264.4980
Industry: Investment Advisory
barry@bmfinvest.com
www.bmfinvest.com
www.bmfinvest.blogspot.com

Barry M. Ferguson, RFC is President and founder of BMF Investments, Inc. - a fee-based Investment Advisor in Charlotte, NC. He manages several different portfolios that are designed to be market driven and actively managed. Barry shares his unique perspective through his irreverent and very popular newsletter, Barry’s Bulls, authored the book, Navigating the Mind Fields of Investing Money, lectures on investing, and contributes investment articles to various professional publications. He is a member of the International Association of Registered Financial Consultants, the International Speakers Network, and was presented with the prestigious Cato Award for Distinguished Journalism in the Field of Financial Services in 2009.

© 2010 Copyright © 2010 Copyright BMF Investments, Inc. - All Rights Reserved
Disclaimer: The views discussed in this article are solely the opinion of the writer and have been presented for educational purposes. They are not meant to serve as individual investment advice and should not be taken as such. This is not a solicitation to buy or sell anything. Readers should consult their registered financial representative to determine the suitability of any investment strategies undertaken or implemented.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in