Thank You For Riding. Next Stops…

Silver is through $27 an ounce.  This should make you tremble in fear.

Silver is the most remarkable of metals, who’s exact properties I don’t care to get into here.  It’s also one of the most heavily manipulated, always downward.  These developments bode ill.  Know only that it is used extensively in the Tech space, and its new, shiny, higher price will be felt by the likes of you.

Really, that silver (and now gold, as I type this) can rally in the midst of a dollar bounce should shriek out the market’s final judgment on the actions of the Fed last week.

Meanwhile, APC earnings have been revised downward by analysts, who feel that $.22 per share is now more likely than the anticipated $.24.  As such, APC is off by about 5% right now.  I’d be tempted to jump in and buy the sales, if I didn’t already own such a daunting amount from such lower prices.

I’ll pass, but some of you might be interested.

Before you jump in, however, I suggest you read some of the latest reports on natural gas, some of which seem to feel that demand is about to fall through again.  Still, with oil where it is, APC is sitting pretty.  And the sooner APC can utilize its Gulf rigs (it may have started already, but I think the lawsuits of Force Majeure are still in court) the better.

I need to secure some issues with a new passport.  I’ll drop by again in a couple of hours.

That is the number of years I would have to wait in order to digest all of the margin I have presently employed.  That’s provided lackluster results and the corporations I own trending sideways; just able to make ends meet and continue paying the dividends they are presently offering.  While not necessarily the most significant piece of information, it’s still important to keep the boundaries of a trade in mind.

Today, I increased my exposure to NRP, doubling the position.  The opportunity was open to me after I completely cut my hedges of FAZ and VXX.  After running the numbers, it became apparent that I could borrow more without receiving a negative impact.

In fact, by purchasing more of NRP specifically, with dividends so significantly higher than my interest rate, I actually pay down what debt I have at a faster rate.  Of course, since I increased the notional value of my borrowing agreement, it will take me significantly longer to pay off, but the added efficiency of interest payments is important:

Firstly, I like the prospects of NRP, especially after the recent election.  There will be no regulation impacting its performance any time soon.

Second, that is the most mediocre outcome to be expected.  With added performance of NRP (and the rest of my portfolio) I’ll pay it off much sooner.

Really, this trade just gives me twice the exposure for no added cost.  And that’s on a position I still like, long term and short.

For whatever reason, my sentiment against the market has been waylaid.  That’s not because I like the market any more; the average citizen is still in a large deal of trouble, so inevitably the nature of affairs will be affected.  But, for the meantime, it makes no sense fighting the institutions when they’re willing to bet the house (and yours) that the market will go up.

Alright, so it goes up.  I can be patient.

Silver to $30 an ounce.

The surge in commodities hasn’t stopped the media moguls from running about declaring that the markets are cheering the Fed decision.  Morons!  The markets aren’t lauding Bernanke’s maneuver, they’re recoiling as fast as they can.  It just so happens that fleeing the dollar bids up the entire global operation.

Bernanke is a lunatic, but who am I to object?  Really, if he’s doing this because he thinks it’ll save the economy, help loosen resources for the poor, or usher in a new world order, what the fuck do I care?

My house is full of silver, I’m a bundle of debt (intentionally so, I started my major borrowing after the recession started), and I’ll be on top regardless.

It’s you on the bottom who should be frightened.  Do you understand what having the U.S. currency break means for you and your pathetic families?

It means no more cheap consumer goods cluttering up our shelves for one.  It means an end to U.S. military dominance for another.

I dare to guess, some of you idiot progressives love these ideas, what with your cliché hatred of big box stores and American superiority.

What you ignore, to your peril, is that both of those are pretty good problems to have.

Cheap foreign labor catering for dollars has let us eat our fill on nothing but our own reliability; soon, food may actually cut into peoples budgets, as opposed to the ultra cheap, bottom line item that it is now.

And for all the complaining coming out of the extreme liberal academia, our military prowess has managed to keep the most intolerant, ruthless people on the planet from seeing out their darkest desires.  It’s not a vice when you’re the good guy, remember?

Yes, it seems, many of our own citizens are hell bent on second class statesmanship.  Very well, you’ll soon learn why Athens should have never formed the gold alliance with its sister city-states.

Of course, Cain Hammond Thaler shall be fine, for my tower is quite unassailable by idiot union card holders.  Trust that I’ll have joined the successor empire by the time you feel remorse.  I’ll see you chaps from the delivering side of an egregious spear thrust!

P.S. I sold out of VXX for an absurd loss.  I’ll hold FAZ.  Student debt is still a big issue, and a currency crisis will cause creditors to take it out the teeth.  Worst case, FAZ only casually drifts downwards as banks make meager profits from underperforming fixed security contracts.

It would seem that upon reassessing the condition of the markets with the advent of new leadership, participants are concluding that the currency will be preserved going forward.  The result is a large collection of skittish precious metal holders are liquidating, causing a most horrendous bleed out in the space.

Silver is getting absolutely hammered.  I’m surprised, truthfully.  When I think of silver, I tend to think of a commodity held by only the steadfast and dedicated.  Gold is the public swimming pool with little kids peeing in it…

Apparently that assessment was wrong.  Not that it changes my planning any.  I was up more than 50% net on my silver holdings, so you’ll understand if I’m not fleeing in dread.

To the tune of the rest, if the dollar is believed to be in a new constant state, it will quickly spread to the rest of the markets.  I’m not positive what will occur, but remember that the dollar fluctuations have been correlating nicely with the broader indices. 

A constant currency offers the unique prospect of a decoupling of the market sectors.  A return to sanity, perhaps?

Really, I’m getting ahead of myself with that conclusion.  There’s no immediate reason to think the Fed will ensue a policy of currency preservation/reinforcement.  But the thought seems to have entered peoples minds, judging by the outcome.

I will reiterate; I don’t like the thought of purchasing equity here, and think the market has more below it than above.

However, to be fair, I was dead wrong for the last couple months, in the sense that I was hedged and missed out on the broad gains I could have enjoyed.  Take it with a grain of salt, if you wish, until I start nailing trades again.

Now it was a long night, in the 9^th floor, and my tower curtains will be drawn early.  I’m going to make a Panini and catch some shut eye.

As my piercing gaze catches this fat, aging man on MSNBC desperately grasp at straws as to why Harry Reid winning re-election is a more significant development than a nation turning on the face of a dime, practically over night;

Or this Rachel Maddow, who reminds me strikingly of a certain Bolshevik Latvian actress who helped organize the Revolution, shout about how the Tea Party being inefficient at getting people elected somehow translates to a Democratic victory, as opposed to a merciful Republican draw;

Or Bill Richardson, harping about how Latino’s just love Democrats, despite the overbearing reality that the Latino culture’s social values make them conservative’s natural allies and the effect of the presence of Rubio (Richardson just said he’s disappearing from politics soon, if that says anything);

I am largely struck by two thoughts:

1. Liberals are completely flustered by this development and will be spending the immediate future in disorganization.
2. Nothing is changing.

The only strikingly honest comment that has come all night was from…surprise…Chris Matthews, when he said in frank assessment of the situation, that Obama talks far too much.  Indeed, Democrats do have a communication problem, but it isn’t their inability to frame the issues.  The more they talk about their ideological agenda, especially Obama, the less people will listen.  They are in power only for as long as they govern moderately.

It must be painful, not being able to do anything you actually want to.

I say the second thought because, frankly, even with a majority in the House, the prospects of moving legislation through the Senate and past a veto is absolutely bleak.  And, even if they did, I suspect they wouldn’t want to.

Change in this country will not come through willful attempts, but will rather be a product of the panic of uncompromising necessity.

Thankfully, I thrive in such an environment.

As to developments in the marketplace: it should now be blatantly obvious to everyone that healthcare reform will not be repealed, which means the stress on business shall forceably remain.  I suspect the markets were banking on Republicans revoking half the previous two years.  Ha!  Good luck with that, fools.  As to this election, I see no reason for the markets to believe that anything will be changing fundamentally, unless the president suddenly becomes a bleeding heart, businessman.

I’ll wait up for that announcement tonight, as the president flees to Asia so he can pretend he didn’t just totally fuck his allies.  Apparently, his presence doesn’t count for much after all…

Now enough about politics!  Watching these imbeciles suffer has been amusing, and I certainly enjoyed it; in a half drunken state, I’d add.  But really, you can only spend so much time relishing in the pain of vermin before degrading yourself into one.

Tomorrow, it is time to return to the great work at hand, which transcends anything these fools could possibly fathom.

I see some of you geeks are upset with my term of office here on iBankCoin. I am here to tell you: you have seen nothing yet. Forgive my leave of absence, as I was rather busy assaulting the low-level tribes here in Peru. At one of the family copper mines, some of the workers attempted to organize and rise up, complaining about work conditions and wages. As a consequence, I spear headed a division of battle hardened mercenaries to destroy their village. That will learn them. So, excuse me if I didn’t have the time to entertain you dorks, as I was a little busy killing and maiming hundreds of people.

As for my message: it remains the same. Stop buying stocks/bonds/gold ETF’s. If you have to snatch the gold chain off an old lady, do so, as it might save you from future starvation. There are immense crop shortages around the world. And, at the same time, the biggest nations in the world are devaluing their currencies. This will inevitably lead to the deterioration of American society, which will leave it open to a series of debilitating  attacks.

Condensed message: get rid of your paper money and possess gold, the 24 karat variety.