<<"Hard to believe that day after day we read the same old tired refrain when the markets are telling you the opposite.
Some other boards bleeting the same tune with candlestick and jujus as their bear weapons.What next?">>
The BIG question is Will(?) and if so(?) When(?) will they pull the plug"??
from westpacific....
siliconinvestor.com
westpacific Member Profile westpacific Member Level Share Monday, October 25, 2010 11:30:26 AM
Re: None Tweet Post # of 54545
Here is your roadmap so do not be fooled; this is so on the money it is mindblowing....position for this and be rewarded big!
The short of a lifetime rests just ahead...adding to your cash hoard to buy the coming lows.
I expect China to crash in leaps and bounds; since there are only longs and no shorts to support that bubble!
West
........
If I had $5 billion, and the political power that goes with spending a tiny sliver of that on political donations and lobbying, then here's what I would do, as an entirely "obvious" Grand Strategy:
1. I would slowly liquidate my common-stock equity and long-bond positions, and maintain my precious-metals positions (preferably ownership of the mines than the bullion) and my preferred stock in global corporations.
Insiders selling 1,169 to 1 (zero hedge)
2. I would engineer a global recession that implodes all the asset bubbles around the world--Chinese real estate, commodities, emerging market equities, etc., as demand collapsed and supply was suddenly revealed as overly abundant. (Please see my oil "head-fake" entries for how this works: Oil: One Last Head-Fake? (May 9, 2008)
This would create a mad dash for dollars and other cash to pay down debt taken on in the "easy money"/ZIRP era (i.e. 2008-2010), and lead to wholesale dumping of all assets which still have value. The higher the value (i.e. gold) the quicker they will be unloaded for cash: for instance, oil and energy-based equities.
3. I would sit on my hoard of cash while the selling created a positive feedback loop and prices plummeted in a downward panic spiral.
4. As net worth vanished in the tens of trillions of dollars/yen/yuan/euros, interest rates would rise dramatically as those desperate for funds compete for dwindling free cash. Revenues of oil exporters and other exporters crash, drying up a once-reliable source of cash.
5. When premium real estate properties and equities are selling for 10%-20% of their pre-crash valuations, I will begin buying. I won't buy long-term bonds until the yields skyrocket; then I will jump in with all four feet.
6. As the long-term shortage of commodities eventually re-asserts itself, then I (and my other Financial Power Elites cohort) will own most of what the world needs to function, including the Central State tax revenues which will increasingly be directed to making interest payments.
7. I will be a strong supporter of food stamps and other low-cost rebellion-reduction programs, and "soft" and "hard" power to enforce my ownership of assets which I purchased.
8. As interest rates rise, the U.S. dollar will strengthen, further increasing my purchasing power.
9. I will oppose inflationary policies as needless reductions in my purchasing power. I don't owe debt, I own debt as an asset.
Bottom line: expect a crash in commodity prices and other asset bubbles, a much stronger dollar and rapidly rising interest rates. I am playing it as it lays, and this is precisely what I expect to unfold between 2010 and 2014.
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