Pundit's Perspectives – Mon 16 Jul, 2012

Global Economics End Game


Traders, investors, and those men and women on the street who pay attention to this decades-
long saga ask the question: How does this end and when? If we all knew the perfect answer, we
could trade and invest on that knowledge and earn a gazillion dollars. Reality says that this is
impossible to forecast, but being the opinionated vocal people that we are, we intend to take a
stab at it and try to make sense of a really squirrely international mess that’s literally been an on-
going paper-printing scam for a long, long time.

For one to understand this discussion we have to be clear as to how the main players think in this
drama. How do they react to events that move the news and markets? How do they react to the
social behavior of national and global citizens?

Our Northern Advisor, (who is blessed with the brains of three geniuses) has covered the
topics on those in authority in politics, universities, think-tanks, military, central/global bankers
and corporate chieftains. He has taken the time to train me over and over with examples and
explanations as to how these insidious creatures think and behave.

We are not saying this power group is all crazy but there is a remarkable nutty similarity, a
common thread, within their collective minds. The definition of psychopaths is printed below
from the free encyclopedia, Wikipedia.

“Psychopathy from the Ancient Greek “psyche,” …soul, mind and, “pathos” -suffering, disease,
(a) condition is a personality disorder that has been variously described as characterized by
shallow emotions (in particular reduced fear), stress tolerance, lacking empathy, coldheartedness,
lacking guilt, egocentricity, superficial charm, manipulativeness, irresponsibility, nonplanfulness,
impulsivity, and antisocial behaviors such as a parasitic lifestyle and criminality. There is no
consensus about the symptom criteria and there are ongoing debates regarding issues such as
essential features, causes, and the possibility of treatment.”

In our view there is no treatment for this kind of insanity.

Does this description ring a bell? Does this interpretation define many of those in supreme
authority within the ranks of politics, universities, think-tanks, military, central/global bankers and
corporate chieftains? It’s so obvious; it sticks out like a sore thumb. Of course it is quite unfair
to throw an insanity blanket over the entire group, but when reading this definition, we can start
naming names as fast as we can say them.

Our Northern Advisor told us the national leaders of most countries throughout the world exhibit
some, or many of these negative traits. Why? Because statistically those are the common traits
that get them elected, or appointed to those high positions in the first place.

The criticisms most appropriate for these leaders in my opinion would be: shallow emotions, lack
of empathy, coldhearted, lack of guilt, charmingly manipulative and pathological liars.

Most important of all: they are parasites from day one and have no concern with embarking
upon a lifetime of criminal activities and law-breaking. Normally, these people are crafty and
treacherous enough to persuade others to do their dirty work and thus avoid prosecution. But
full-fledged dictators like the old communist leaders and the current Russian prime minister,
Putin, are right up there with the best of ‘em. That bunch does not even bother to hide their
nefarious events but instead just rule with an iron fist and “disappear” those that get in the way.

Obviously Hitler and a long laundry list of South American, Asian and African leaders, despots,
thugs and criminals would also make this hit parade of not-so-very-nice-people. Pick the top ten
nations in this world as to population, land size, GDP, and size of military and you’ll see a fine and
exemplary collection of those we’re watching in this discussion.

Now that we understand their mentality,
what do they do and how do they do it?

Let’s start with the United States. Our current president and his administration have positioned
themselves precisely to address the One World Order Agenda. The objective is to smash the
American middle class, pushing them lower on the income scale. By forcing this majority
to depend upon our national government for most of their daily needs, these people become
dependent little children enslaved to the system. They are literally locked-in with no escape.

Obviously, the next mandatory event required for the One Worlders is the installation of one
single currency for the entire planet. Their success at this would give the international criminals
total control of all money everywhere with no nation-to-nation adjustments needed. This is a tall
order. While we are heading in that direction, it won’t happen for reasons we’ll elaborate on later.

This idea started with some gusto when criminal central bankers were able to succeed in their
wish of implementing a combined Euro Currency and Euro-land economics-politico money nest.
So far so good, but watch this puppy unravel and turn into a rabid pit bull, courtesy of German
citizens who will not roll over for the criminal bankers. Recall for a moment what happened to
some of those bankers in that category in the 1920’s and 1930s.

Those European central bankers are about to enjoy a major religious experience when the
Germans vote no in the 4th quarter of 2012, or first quarter of 2013. Not only will these scammers
lose out, but they had better become instantly invisible for what comes next. Europe has a long
history of solving these kinds of problems with extreme force. The next time will probably be
quite similar.

However, in the USA’s instance, the dollar must first be smashed to half its value, which it will, but
can yet retain majority control as The World’s Reserve Currency. The dollar has proven to be just
that with a former reserve majority near 85%, which in our current economic climate has dwindled
to about 70-75%. The percentage has lowered primarily from new efforts implemented by China
and some rough boys in the Middle East to rearrange the currency business using a variety of
central banker and international trading tools.

Most larger, majority economic power-houses throughout the world being Asia, Europe and the
United States will have managed to collectively kick their messy little cans into the 4 th quarter of
2012. What happens then could become legendary. These folks think the old paradigm of “print
and spend” using politics as bludgeon can continue. We say it can’t and the pushback will not
make a pretty movie. We next explain the reasons why,

How It Breaks Down

Their old scam can’t and won’t last as the beaten-up Sheeple have had about enough. That
pushback alone won’t solve the larger problem. But, couple that with a collapsed and busted
global bond market and crashing global stock markets? That should finally do the trick.

One of our favorite friends from Zurich told us years ago that it all ends when the Sheeple
are literally no longer given credit. I’m talking the loss of all credit here, not just some.
For instance, real estate has collapsed as the bond market and related derivatives have fallen into
a pile of burning ashes. That fire was created by naughty bankers, mortgage underwriters, and
fund traders doing things never before permitted. The grand finale will be no more, or severely

credit cards. Think about that one for a few minutes and what the implications would be.

When banks were permitted to become wild traders and fund investors using the “bank’s pass
book savings,” it had to end badly and it did. The interesting thing now is they are still doing it
and the authorities who are bought and paid for won’t stop them.

So the ending has to be when it all stops working and skids into the ruins of its own crooked
volition. Those doing this stuff think that it can continue as long as they get free taxpayer money
to re-capitalize their games as our rulers let them do it. So far so good, but the free money is
printed bonds and T-bills. What happens when the confidence in that toxic paper vanishes?

The larger problem is what happens when confidence in the confidence games goes away?
Guess what? It has already started. Chopper Ben, it was reported by a trusted fellow analyst, now
has to buy back 60% of his own toxic trash and “mark it sold.” It’s not sold. It’s back on Benny’s
Money Closet Shelf in “Bond Purgatory” unsold, but marked as sold. If you did this stuff you
would quickly reside in the crossbars hotel for about 20 years.

You tell us at what price the big unsold bond breakdown occurs. Would the unsold number be
75% or 85%? Or, would it take a complete and utter collapse of all major bondholder-buyers
crushing the monster bond-credit markets, which are 70 times larger than stock markets?

Others who held this crap in massive piles of outhouse paper (like China) have been moving it
into hard assets all over the world. China is dumping Benny Paper to get rid of it, to buy and hold
real stuff. They are losing this battle overall, but so far have been quite good at stockpiling gold,
grain, crude oil, copper, iron ore, and military hardware as well as other people’s perhaps better
bonds and currencies.

This drama is one big Dump the Bonds race played like musical chairs to see who is left standing,
holding the largest pile of Eurobonds, or Chopper Ben’s USA bonds. That loser player (or nation)
quickly circles the drain on a prelude of wrong investment notes, as the trash ultimately goes to
zero value.

The last big attempt to steal more from the American taxpayers will be Nancy Pelousy’s super-
crook idea of seizing all American pension plans and converting them to 30-year bonds. This
enables a grand theft of about $800,000,000 of pure cash, moving it into valueless bonds with
our national government taking it all. After 30-years, its intrinsic value will vanish. Hey, after five
years it will vanish, period!

We just learned in June that the State of Michigan, in addition to its 6% state income tax, is
now taxing retirees pension plan payments. One retiree told us he must give the state an
additional $4,000 to $5,000 per year to pay for their overspent messes. Taxes and takings just
keep increasing, and ncreasing, on and on. Consumers, traders and individuals, in an effort
to save what they crooks cannot steal, must convert it into some kind of hard assets for pure

These pension thefts will be primarily instigated using capital controls. This is also the way the
American gold hoard will be taxed. When gold and silver sales must be registered and recorded,
they will be taxed into the ground. This happens at point of purchase but most likely at an
individual sale. However, it if is not sold it can’t be taxed.

Aha! What if that physical metal disappears into the mist and is traded for hard goods and real
stuff? At that point it becomes invisible and is just gone. What if it’s traded off? What if it’s
reported stolen? What if it’s exchanged for other stuff folks need to get through the day?

This is the reason we strongly suggest traders and investors be buyers of these precious metals
and take possession of them. Over time and in historical fact, gold has preserved new beginnings

for families, provided sheer family survival, and ensured that gold holders could in fact eat.
Gold’s value cannot be disputed. There is no counterparty risk. It is not paper, it is the supreme
currency of the world taken in for exchange anywhere, in any nation, in any venue.

The End Game is a Paralyzed Banking and Credit System

While nobody knows for certain how much time we have left, or how long we will have it; by a
predicted smash date, we would suggest the US Dollar is not totally destroyed, but rather cut in
half on a normal fundamental and technical retracement.

This means inflation moving through the daily exchange process is pure terror, taking valuations
of stuff down and away with prices. Would we see hyperinflation? That definition says it’s
inflation running at an annual rate of +50% or more. If the truth be known, we think China is
probably closer to that reality than most would suspect. If this happens in America, it could
create a bank holiday and a follow-on, very hard and serious downward devaluation afterwards.

Being highly experienced in real estate development and related credit, what we have seen
already in Hong Kong and other large Chinese cities tells us this is one dominant facet of China’s
central banker economics that has gone totally out of control. This is especially true with the
hundreds of brand new “see through” high rise buildings that now sit empty.

With all of that easy money floating around for real estate, much of it was snatched by sticky
fingers and spirited away to far flung destinations like Vancouver, Canada for investment in much
safer and secure markets. Some went to Singapore and a lot of it faded into overseas business
subsidiaries. Still more of it sits in foreign banks in numbered accounts, under assumed names.

The usual suspects for hyperinflation are mostly located in South America. However, as we expect
that several countries there will suffer a similar fate, we’ll also see some new faces in Europe and
Asia learning about hyperinflation first hand. This is why the Germans are so adamant about not
being Europe’s paymaster. They have long memories and are very smart. The years of 1921 and
1922 are not forgotten and never will be.

News this week from Spain signals that that nation is now totally out of control with an estimated
capital flight of 50% of liquid assets underway. The economics minister told the world that even
$120 billion of help for their bankers probably covers only 20% of what they need. He said the
mess is way too big to cover. We say Spain is on the road to perdition and it’s coming very fast.
Watch for a descent into riots and maybe civil war.

Greece is already on the verge of civil war and Syria already is on violent hits from its dictator.

In Summary

No one can forecast with any sense of realism when these traumas converge into one giant
volcano, but in our view, it happens right after the American election when Germany’s citizens
vote NO on the referendum designed to give cash and credit to neighboring nations. That will
smash the Euro and Euro-land for sure.

And, in the USA, you tell us when Benny’s Bondo Scam hits the wall. Our forecast would be
further out than most might expect, but Obama can delay/block it by creating a Wag the Dog War
in the Middle East and imposing emergency powers. This is what we expect. It is obvious to smart
observers that Obama is war-shopping as we speak.

Iran would be a good candidate as they have been media-made into the supreme villain. Further,
they have lots of oil reserves to steal. As we write this, the Gulf is loaded with US Navy warships.
Are they on vacation? Don’t believe it. World War III would probably be short in initial combat but

the aftermath could be years of prolonged civil wars that would keep popping up in nations all
over the Middle East and maybe parts of Europe.

In the USA, we think this nation moves toward the old tribal and cultural gatherings of old. More
and more, citizens will form groups, mingle and tend to cluster with their own kind; those being of
similar cultural rules, religions and habits.

Large chunks of the United States in broken big cities and urban areas will become miniature
Beiruts; a region of war-like trauma and perpetual war and violence. If you think the National
Guard, or regular troops can stop it, think again. Big city gangs are ready to rock and they
are better armed than most would realize. While the rural back country sounds like the place
to be safe, we think very small independent towns composed of folks with similar tastes and
backgrounds would work better.

The one stronger suggestion we would make is this: do not engage in violence and gunplay with
weapons. Rather vanish into the mist, become invisible and obey the laws. Do your part by taking
precautions, obeying the law and taking care of friends and family.

In summary, the 3rd quarter of 2012 will be a set-up quarter for those traders and investors moving
into positions that can profit from all this forthcoming excitement arriving in the 4 th quarter.

We strongly suggest that if you are not experienced in managing big, faster moving messes, it
would just be easier to go and buy physical gold and silver and take possession. This way you
eliminate any counter party risk and if you need some cash later on, the metal brokers are more
than happy to buy it back and very quickly, too. This trade is safe and liquid.

Most of our readers of these essays and in our Trader Tracks Newsletter are primarily stock
traders and investors. At this juncture they are wondering and worrying as to when markets will
return to new rallies, pulling-up their beaten down stock positions. The precious metals stocks
(the best of the best) will begin to react almost immediately when gold and silver begin new
rallies. However, most of them usually take 2-4 weeks longer in a precious metals reaction before
any substantial shares movement. This past week in Trader Tracks, our list of recommendations
week-over-week moved from negative to almost all positive.

Follow monthly charts first and discover the best time of year for your favorite markets. Then,
work backwards using weekly charts followed by dailies. For the most part, we have learned that
swing trading (a few days to a few weeks) is easier to manage for us. However, some traders
enjoy the scalping game doing 150 trades each day finishing the session and then going flat
overnight. Find what suits you best and above all control risk first. The balance of your earnings
will often take care of themselves –Traderrog


Roger Wiegand is the writer and editor of Trader Tracks Newsletter for gold, silver and energy traders. Roger provides recommendations for short and longer term traditional stock shares, futures and commodities trading with specifics for individual trades. Listen to Traderrog reports and editorials on the Daily Market Close on the Korelin Economics Report website www.kereport.com. Visit Kitco.com for essays and audio.

Stay tuned for more of Traderrog’s insights and predictions via his exciting new daily audio subscription. Coming soon! Details at www.wavelengthpublishing.com

Roger Wiegand

  1. On July 16, 2012 at 8:39 am,
    shawn says:

    Foreigners buy record amount of Canadian Securities, the month of May saw almost 27 billion $’s in securities a record for Canada and I don’t expect this record will stand for very long. What is it Bob M say’s buy companies that have hard assets or “things as he likes to call them.

    • On July 16, 2012 at 5:19 pm,
      Big Al says:

      Hi Shawn,

      Bob mentioned that on our show about 2 or 3 years ago.

      Big Al

  2. On July 16, 2012 at 11:28 am,

    Hey Rog:
    Au Contraire TR!, Iran has NOT been media made i nto supreme villian, rather they have consistantly earned that right on their own since 1979, but much more so since the “little unwashed creature” has been in the public eye.

    • On July 16, 2012 at 12:28 pm,
      Jed Davis says:

      C’est la vérité beaucoup. (Very much the truth)

  3. On July 16, 2012 at 11:36 am,
    Robert Long says:

    Much of Trader Rog’s predictions echo the Bible! In the overall prediction of future world events, it would seem reasonable from the accuracy of already fulfilled prophecy that Biblical predictions would warrant serious intellectual consideration if not full trust. What we are seeing today could be final fulfillment.

    • On July 16, 2012 at 5:16 pm,
      Big Al says:

      Mr. Long,

      Yes, it certainly could be final fulfillment!


      Big All

  4. On July 16, 2012 at 11:43 am,
    Matt says:

    But even leaving this crisis aside, there is now abundant evidence of widespread, unpunished criminal behavior in the financial sector. Later in this book, I go through the list of what we already know, which is a lot. In addition to the behavior that caused the crisis, major U.S. and European banks have been caught assisting corporate fraud by Enron and others, laundering money for drug cartels and the IRANIAN MILITARY, aiding tax evasion, hiding the assets of corrupt dictators, colluding in order to fix prices, and committing many forms of financial fraud. The evidence is now overwhelming that over the last thirty years, the U.S. financial sector has become a rogue industry.
    From: Predator Nation: Corporate Criminals, Political Corruption, and the Hijacking of America by Charles H. Ferguson

    • On July 16, 2012 at 7:44 pm,
      Clay says:

      Matt: All true. You can listen to Charles Ferguson on Capital Account where he mentions how he is being shut out and ostracized by the Financial banks and government which as Paul Craig Roberts explains is one and the same.


      The interesting thing I got when listening to Paul Roberts was my immediate conclusion. BUY MORE Silver and yet Secretary Roberts never said one thing about gold or silver. Fact is like Roger above ranted about, and I agree with his rant completely, this countries economic system is going to blow.

  5. On July 16, 2012 at 11:46 am,
    Marc says:

    Big Al and all;
    All the best,
    P.S. Everything else is just noise and/or “smoke and mirrors.” This can’t go on much longer. Keep stacking.

    • On July 16, 2012 at 5:15 pm,
      Big Al says:

      Absolutely nonsensical Marc!

      Big Al

  6. On July 16, 2012 at 12:08 pm,
    Tex says:

    Sage council!

  7. On July 16, 2012 at 12:45 pm,
    Tom says:

    OOOPS is right!

    • On October 29, 2012 at 12:02 am,
      Felice says:

      My bright atrucilate daughter (grade 4) began slipping in her mathematics this year, and the homework began to reflect the overcomplicating procedures that now exist as the soup de jour in elementary mathematics. I addressed the issue with her Private Catholic School, and they suggested the need for Teacher’s Assistants in the classroom. I suggested, as math is my strength, a return to appropriate mathematics education. As stated above, the Maclean’s Article is very timely. Mathematics and also Grammar, are not properly taught in the school systems, and frankly, as a parent educated on four continents, I am appalled with the education that is presently fed to our children. How did this process come to be? How can this be rectified, and when will this be resolved? These are the three questions, that I want answers to. .preferably before my daughter’s self esteem is reduced any further I am deeply troubled, I would like consistent updates pertaining to the progress this organization makes with the Ministry of Education.Reply from Sandra Roberts:I too feel this way. I have sent my concerns directly to the Minister of Education for our province. Perhaps that may be a good starting point for all of us. We need to deluge their inboxes and write to them for this much needed change. Canada is falling behind other countries in our scholastic skills. We need to demand our politicians legislate this revision to our school curriculum immediately, regardless of what province we are from.Message from Tara Houle, BC:I have already emailed 2 letters to our Minister of Education here in BC about the dismal math teachings in our schools. I would like to see if anyone is interested in connecting here in BC to see if we can bring awareness of this problem to other parents/politicians/educators in this province.Message from WISE Math: If you are in BC and are interested in connecting with Tara Houle, please email

  8. On July 16, 2012 at 3:36 pm,
    Silverbug Dave says:

    Nice statement from James Turk on KWN:

    (Personally I don’t think price will explode yet but you never know. I fancy a downleg first)
    Turk says:

    The latest important news is that Moody’s just downgraded Italy’s debt again. … And total Italian government debt is now approaching EUR 2 trillion.
    Think about that for a moment, Eric. This debt mountain is only 2 notches above junk. Consider all the banks, central banks, pension plans and other institutional investors that own this debt. … What are they going to do if this debt is eventually downgraded again to junk?
    The European banks own a lot of Italian government debt. The ECB also owns a lot too.”

    • On July 16, 2012 at 5:13 pm,
      Big Al says:

      Yeh, A BIG OOPS!

      Big Al

  9. On July 16, 2012 at 3:48 pm,
    Silverbug Dave says:

    Another interesting thought, possibly.Do you think it is significant that gold is hovering within 2% of the round number value of 1000 GBP in the old reserve currency of British pounds? Some of the old ruling class and British Empire moguls may be watching this number. In this correction, gold has hardly dipped below 1000 so far. 1000 +/- 2% jas been a floor, so far. That’s uncanny. A gold Sovereign is worth £235.40 (0.2354 oz) at £1000 GBP / Troy ounce gold. that means an old 1 pound coin is worth £235 and the pound has been debased by a factor of 235 so far and is now < 0.5% of it's value, so thanks to central bankers and politicians it's down 99.5% so far!

  10. On July 16, 2012 at 6:12 pm,
    MissiveDuTexas says:


    If you see drones fly over your property, don`t worry. They`re just on their way to your neighbor, commonly known as “traderrog”, to let him know his prose was noticed.

    • On July 16, 2012 at 6:45 pm,
      Big Al says:

      I think that he is ready for them!

      Big Al

  11. On July 16, 2012 at 7:51 pm,
    Clay says:

    I keep waiting and watching to see which State in this Union decides enough is enough and takes action. Wyoming perhaps, but in truth I don’t know.

    What would happen if Romnibama decreed that every Americans assets where to be confiscated and then redistributed unequally to everyone else? Would everyone comply?

    • On July 17, 2012 at 9:44 am,
      cfs2000 says:

      If pelosi decides IRAs must be invested in government securities, I will believe in civil disobedience. The secret is how many citizens can the governement arrest/destroy. There is a limit.

      • On July 17, 2012 at 6:21 pm,
        Big Al says:

        Evening cfs,

        Purely and simply, I do not agree with the philosophy of investing IRA funds in govt securities only.

        Quite frankly, I would be surprised if it ever came to that.

        Big Al

  12. On July 16, 2012 at 7:55 pm,
    mary says:

    “Germany’s citizens vote NO on the referendum designed to give cash and credit to neighboring nations. That will smash the Euro and Euro-land for sure.”
    Trader Rog:
    I have to disagree with you on your presumption how Germany will vote.
    As Jim Sinclare as stated why would Germany light a match to a portion their export market? (all be it, the majority of that is in recession)

  13. On July 17, 2012 at 9:46 am,
    cfs2000 says:

    The problem for Germany is that there is no limit. After Greece come Spain, Portugal, Italy all requiring more bail-out than Germany is capable of delivering.

    • On July 17, 2012 at 1:14 pm,
      impeachemall says:

      The problem for Europe is that German politicians haven’t prepared their people for the start of reparations for WW2, whereas the glorious nations of Greece, France and Italy are getting impatient and think the eurozone bailout mechanisms are a clever way to get money now, rather than never because of the economic power shifting to East Asia.

      • On July 17, 2012 at 6:30 pm,
        Big Al says:

        Evening impeachemall,

        You, my friend, make a very good point!

        Big Al

    • On July 17, 2012 at 6:22 pm,
      Big Al says:

      Evening again CFS,

      It is difficult for me to understand numbers that are as large as what you are saying.

      It just strikes me that there is no way short of major re-organization to work the European situation out.

      Maybe I am just stupid,

      Big Al

  14. On July 17, 2012 at 6:48 pm,
    Stephan B. Feibish says:

    “seizing all American pension plans and converting them to 30-year bonds. This enables a grand theft of about $800,000,000 of pure cash”

    $800,000,000 That all we got. That’s $800,000,000 divided by 313,924,000 people – or $2.55 a person. As my young relative used to say. Uh Oh!

    (1 yr. member of the trader Rog fan club.)

    • On July 17, 2012 at 6:54 pm,
      Big Al says:

      Evening Stephan,

      As I said earlier, I personally do not believe that pensions will be seized or required to be put into govt financial instruments.

      Big Al

      • On July 18, 2012 at 12:34 pm,
        Stephan B. Feibish says:

        I was just saying what Al Korelin already knows. That whatever the number; Americans haven’t been able to save enough for retirement. Which is a double whammy since Social Security & Medicare are largely unfunded and America’s aging. More old people, less young. More people taking money out of the system, then putting money into the system.

        More people selling real estate, then buying real estate.
        Which makes your condo sale; at the start of the baby boomers retiring, somewhat prescient.

    • On July 18, 2012 at 7:55 am,
      Stephan B. Feibish says:

      over 65 population 2010
      38 million
      800,000,000/39,000,000=$20.50 per senior
      Uh Oh!!!

  15. On July 19, 2012 at 9:37 am,
    roger wiegand says:

    Keep in mind a small portion of Americans have the money in those retirement plans and some them contain millions of dollars per person. Also it was either Brazil or Argentina that did exactly this in 2000 seizing all retirements and coverting them to the national currrency. it all went bad. We interviewed an IR person in Vancouver who’s parents went through it. do not say it can’t happen here. Nancy Pelousy wants it and is busy in that direction – roger