The Financial Mess
These are some tweets from TRADEAWAVE over the past couple of days. It is time to pay attention, think and prepare for what very few people expect.
Smart money shifted out of currencies into presious metals… now moving out of metals into agricultural space. Food is the next currency.
The big thing overlooked from the MF Global collapse is that our farmers got wiped out and cannot fund next year’s crops.
In the very near future, FOOD=MONEY and MONEY=FOOD. Start buying FOOD with your FIAT money.
You are starting to worry me. You should be worried. People need to start waking up and getting ready. September-October of next year is when the $hit hits the fan but you should see trouble as we approach next fall.
Are we still going to make multi-year highs first? New highs will confirm a particular pattern for us but new high or not, March 2009 will only be tested. Hyper-inflation leg will kick in and markets will make all time highs in the next 5 years. But do NOT ride this leg with dollars.
We are getting information that the collapse will occur next fall of 2012. Ron Paul: Both Parties OWNED by Same Elite.
Getting a few questions about our last tweet concerning a collapse next fall. This is not necessarily a stock market collapse as it is a dollar collapse. So it requires you to think differently. It will not be a mirror of the ’08-’09 collapse but a collapse never the less.
Getting more questions about how to play the dollar collapse: We are advocating to not have any money in the system by mid-summer. Any money sitting in a bank, brokerage, retirement etc. account is subject to 100% lose regardless if you are on the right side of a trade.
Taking PHYSICAL possession of precious metals and food storage is your best bet. We are not sure how this will play out of course but we believe it is best to be more conservative in a dollar collapse environment. A currency collapse on this scale, dollar is the world standard, has never happened before.
Just because something is unprecedented in modern history does not mean it will not happen. Government spending in excess of tax revenue is not sustainable and eventually the system will fail. We cannot grow ourselves out of this mess since there is little growth. Also growth in revenue never exceeds the growth in expenditures anyway.
Read The Market Ticker to stay abreast.
Skip Danger also has some observations about what may happen in the financial markets.
Update posted by CL: Welcome Captain Capitalism readers. Also check out 7man’s post at Patriactionary on the financial situation (and check out the blog too!): What will become of us?
CL
7man
Ammo will be currency long before food is.
There are real problems with the US’s fiscal position. Inflation is a real threat. Hyperinflation is a real possibility. But predictions like this: “September-October of next year is when the $hit hits the fan…”, “We are getting information that the collapse will occur next fall of 2012.” are complete and utter garbage. Such specificity is simply not possible.
This is a case of a stopped clock being right twice a day. The tweeter is a loon, but the basic message (be wary of holding dollars, and keep an eye on the banks) is sound.
Tradeawave watches Price, Pattern and Time. The Pattern is based on Elliott Wave, the Price is based on Fibonacci levels and the Time is based on Fibonacci relationships with previous price swings.
These things are fractal so there are certain relationships that exist at all scales and there are probabilities (not certainties) that particular things will happen at particular times based on the preceding pattern.
So call it what you will, but it is entirely possible that the “powers that be” will kick the can down the road for another few months before the can hits the wall.
Let’s just say that I view “technical analysis” as a complete scam and leave it at that.
If you are seeing this year’s stock market debacle as a precursor to something much worse next year then calling a dollar collapse doesn’t really make sense, the dollar will greatly benefit from any such thing, as it is right now. A dollar collapse logically entails that the euro will soar to great heights, doesn’t seem likely does it?
@patung
A dollar collapse logically entails that the euro will soar to great heights, doesn’t seem likely does it?
No that is not logical. It is not necessarily the dollar vs. the euro. Both could collapse in value since both are fiat currencies.
Ordinarily that is what happens, if not then you’re talking about a sort of armageddon type thing, which, well, it can happen, anything can, but….. it’s just that the current trends don’t bear out what you’re talking about, the dollar index is likely going to make a weekly close above 80 for the first time in a year, and the CRB is in a very clear daily/weekly/monthly downtrend, which means food prices are in a downtrend. As are the metals of course.