It Ain't Over 'Til the Fat Lady Sings
From Matterhorn Asset Management via Jim Sinclair's Mineset comes this strategic overview of US and world financial markets.
Take the time to read it and pass it on to others.
Then act on its necessary implications -- while you still can.
Here's a sample:
Spring is here and optimism is creeping back into the world economy. In this newsletter we will discuss why there will be a long time before the fat lady will sing (for explanation see Wikipedia). In our view we are still in the first act of three in a drama, the outcome of which will dwarf the most tragic of Wagner’s operas.
In our January 2009 Newsletter we forecast that there would be a correction up in the US stockmarket similar to 1930 when the market went up 50% from the low and then declined by a total of 90% and resulted in a depression. None of the fundamentals have changed and we are going to see the most horrendous hyperinflationary depression that the world has experienced for at least 200 years. It will be worse than the 1930’s because the world is now totally interconnected both financially and economically and because there has never been in history a worldwide asset bubble and credit bubble of this magnitude .
“There can be no other criterion, no other standard than gold. Yes, gold which never changes, which can be turned into ingots bars, coins, which has no nationality and which is eternally and universally accepted as the unalterable fiduciary value par exellence”
-- Charles de Gaulle
THE US GOVERNMENT HAS LOST ALL CONTROL
The US Government is not running the country. It is running around like a headless chicken reacting to events and firefighting. It doesn’t have a cohesive or proactive plan how to deal the biggest financial crisis that the world has ever experienced. So it hasn’t taken a single measure that could solve the crisis. The only thing it knows is to print money. The US Government doesn’t understand that running the printing presses ever faster can never be a solution to a problem that was caused by excessive credit and deficit spending.
Wall Street is in control
All reactive decisions taken by the Government are governed by Wall Street who are more in control than the Government. Wall Street understands the problem much better since they are the principal beneficiaries of the current financial crisis. The crisis was created by the loose monetary policy of the US Government. Wall Street took advantage and exacerbated the problem by issuing unlimited amounts of toxic debt and derivatives. Wall Street obviously had the total blessing of Government which benefited greatly from political donations and the perceived prosperity that the credit bubble created. So not only did Wall Street make immoral amounts of money during the credit bubble but they are now the main beneficiaries of the Governments money printing. So far the US Government has lent, invested or committed $ 13 trillion since the crisis started in 2007. The majority of these funds are being used to save the financial system...