Apr 18, 2011
1. The huge Apollo Rocket sits on the launch pad. A billion people sit glued to their television sets. School classes are cancelled and the kids watch the supreme spectacle. Hundreds of technicians sit inside Houston Control.
2. The countdown begins, "10, 9, 8.." Suddenly, 100 investors break thru security and sprint across the tarmac towards the rocket screaming, "let me on, I want to ride !".
3. The MADNESS of those investors is revealed, as a picture once again speaks a thousand horrific words.
4. When corn, wheat, and soybean blast into the stratosphere, as oil and silver and other items have STARTED doing, you need to be ON BOARD the rocket already. The mindset of the amateur investor is, "what's about to move now, get me on board!"
5. You need to be on board the corn, wheat, uranium, and natural gas rockets long before blast off time, if you want to be there for the ride. For every rocket the amateur successfully catches by sprinting onto the tarmac, there are another 99 that explode after the investor is on board. Sometimes the explosion comes quickly, sometimes it takes years, but odds are very high that most investors will be beaten to a pulp by whatever market rocket they price-chase.
6. Click here now to view the key weekly chart for corn. Goldman Sachs is correct that the market is a short term sell into massive horizontal resistance. Note the two blue circles I put on the chart. You should have been a general seller of trading positions into this overall strength, while gripping your core positions ever-tighter. The banksters work hard to make investors sell not just trading positions, but core positions, without coming out and saying so. They don't want investors to know about the real meaning of the term, "core positions".
7. The bait is to tell investors that "you can get back in cheaper!". The banksters don't want you in the mindset that assets bought at rock bottom prices are WEALTH itself. The higher your purchase price for core positions, the more of a bankster mark you become. Most investors can only take a limited amount of price weakness before they bail, and the banksters know this, and use it as a key tool to keep investors from holding on to core positions.
8. Another bankster trick is diversification. Markets move in huge cycles, so even assets purchased several years apart, in the same or even related sectors, can really be described as bought in one general price zone. It doesn't seem so at the time, but in the bigger picture, it is one big price plop.
9. By telling investors to heavily diversify, what the banksters are doing is removing the ability of the investor to RESPOND TO PRICE in the highest quality ASSETS.
10. Once those "bankster wishes" are executed on by investors, the investors are essentially corks in the price grid sea, totally helpless.
11. The final nail in the investor's financial coffin is to tell the investor that he needs to be 100% invested to do well. Worship of the photocopier, the Gman, and the banksters soon follow, since they are helpless to help themselves on any substantial price weakness from there on in.
12. The questions "WHY is price moving to point A and not to point B, and WHEN will it do so!?!" become an obsession for the investor, and at that point the person has been totally transformed by the devious banksters, from an investor... into a MARK.
13. When a mark looks at the weekly corn chart, they see a "giant double top, sell everything now, Goldman is going short!".
14. What I see is an EPIC consolidation, between $3 and $8, with a minimum target of $13 projected. How low price drops before we astroblast to $13 and probably eventually to $20 or even higher, we can't know, but we can respond, with pre-set pgens to catch the golden ears of corn, as they are dropped into our asset-gathering baskets by failed price chasers and top callers.
15. As most of you know, I've alluded to the possibility of not just high food prices, but starvation. I have carefully built relationships with several large scale farmers so I'm not one of those eating rocks for dinner. Some of you have hobby farms. In natural gas, I've stated that the glut will become a shortage. That takes TIME, not a rush to the rocket launch pad and demanding the rocket take off immediately, when it isn't even built yet.
16. "For most commodities, stocks are relatively low...You have one other weather event in some of these areas and you really take a danger zone and start to push people over the edge." - World Bank President Robert Zoellick, Bloomberg News, April 16.
17. Robert goes on to say that he estimates over 40 million people have been pushed into POVERTY globally in the past 12 months by rising food prices.
18. The "growth and the photocopier have fixed everything with no inflation!" fan club should be hung, drawn and quartered by those 40 million people. Robbie says ANOTHER ten million people will go to poverty status if food prices rise just another 10%.
19. My message to Robbie is, "get your calculator out, and tell me how many people go into not just poverty but STARVATION, if food prices rise not 10% but 300%, 400% or 500%". Try 500 million starving people in China and another 500 million in India on for size. Then try REVOLUTION IN INDIA AND CHINA on for size. Then watch the American photocopier get the BLAME, as it SHOULD.
20. I don't think most Western analysts understand what happens to the 500 million people when they start starving. Dr. Pinocchio's photocopier machine, unknown to him, can't photocopy food. While Elmer Fudd Canadian Investor IDIOT buys US real estate for the "next big boom", what is mostly likely coming to him is 500 million hungry Chinese and another 500 million hungry Indians who blame AMERICA's photocopy machine for their plight.
21. There's not going to be any real estate recovery and in the words of the president of the World Bank, "we are ONE STEP AWAY" from a full blown worldwide food crisis. There will NOT be 1 billion starving Asians while Elmer Fudd Public Investor checks his new real estate to the sky prices on his credit card statement.
22. What there will be is a "sharing of the pain". Fudd gets to join the hungry Asians on the breadline, so nobody starves but billions feel REAL AUSTERITY. Fudd thinks he's had it rough so far? The crisis is JUST STARTING and therefore so is his IMPOVERISHMENT just starting.
23. You saw quantitative easing as a policy to manage the wealth transfer of trillions from the taxpayers to the bankster winners in the credit default swap otc derivatives show. That occurred when the losers couldn't pay the banksters what they owed.
24. In the fast-approaching food crisis, you are likely to see a similar policy to quantitative easing. "Share the pain" will be the Gman's trumpet call. Interest rates will be raised to stop starvation from occuring, but that causes the otc interest rate derivatives (a garbage dump five times bigger than the CDS credit default swap otc derivatives dump that took out Lehman), to go into Hindenburg mode. What happens then? Well, I don't think you want to be on the bond market hindenberg airship, for starters. To be blunt, what is most likely to happen is Fudd swan dives onto the breadline, gold goes to Pluto, and you get richer!
Grid Time! The buy fills in the gold market are pouring in already for me this morning like a golden rainstorm of asset accumulation and profit booking on cash! I'll be covering the rice and wheat charts on the site shortly. Before worrying about your gold stocks' underperformance, think about what it feels like to stand in a breadline. Don't ask why, just ENDURE your way to VICTORY. The crisis is accelerating. Make sure you continue to maintain and BUILD cash, gold, silver, and dry food stocks outside the bank system. I mentioned my friend getting a machine gun. His only mistake, in hindsight, will probably be that he didn't get more than one...
Thankyou
Cheers
S "rat a tat tat" with my pgen t... out